1.09
2025 ANNUAL FINANCIAL
REPORT
TABLE OF CONTENTS
Letter from the Chief Executive Officer to stakeholders
01 REPORT ON OPERATIONS
02 The Group's economic performance
04 Statement of financial position and cash flows
05 Total financial debt
06 Economic and financial indicators
06 Risk Factors
10 Research and Development, Corporate governance, Personal data protection
11 Essential intangible assets, Derivative financial instruments, Atypical or unusual
transactions, Management and coordination, Intra-group transactions and related-
party transactions
11 Business outlook
12 Business and financial situation of Sabaf S.p.A.
14 Reconciliation between parent company and consolidated shareholders’ equity and
net profit for the period
14 Proposal for allocation of 2025 profit
15 Consolidated Sustainability Statement 2025
15 ESRS 2 General Information
55 E - Information on environmental aspects
99 S - Information on social aspects
116 G - Information on governance aspects
132 Certification of Sustainability Statement pursuant to Article 81-ter, paragraph
1, of Consob Regulation No. 11971 of 14 May 1999 and subsequent
amendments and additions
133 Annexes to the Report on Operations
136 SABAF GROUP CONSOLIDATED FINANCIAL STATEMENTS at 31 December 2025
137 Group structure and corporate bodies
138 Consolidated statement of financial position
139 Consolidated income statement
140 Consolidated statement of comprehensive income
141 Statement of changes in consolidated shareholders’ equity
142 Consolidated statement of cash flows
143 Explanatory Notes
198 Certification of the Consolidated Financial Statements, in accordance with Article
154 bis of Legislative Decree 58/98
199 SABAF S.p.A. SEPARATE FINANCIAL STATEMENTS at 31 December 2025
200 Corporate bodies
201 Statement of financial position
202 Income statement
203 Comprehensive income statement
204 Statement of changes in shareholders' equity
205 Statement of Cash Flows
206 Explanatory Notes
259 Certification of Separate financial statements pursuant to Article 154-bis of
Legislative Decree 58/98
Letter from the Chief Executive Officer to stakeholders
Dear shareholders and stakeholders,
The letter accompanying the report on the last financial year must necessarily begin with
the dramatic and unexpected event that occurred at the start of the new year: the passing,
on Wednesday 18 February, of Pietro Iotti, who had served as Chief Executive Officer of
Sabaf since 12 September 2017.
Over the past few years, Pietro has been the driving force behind Sabaf’s evolution,
steering the company towards a strategy of diversifying its product range and expanding
its global industrial footprint, which has redefined its market positioning: from a
manufacturer of gas cooking components to a global player in smart appliances.
A strategy pursued both organically and through acquisitions, which has boosted the
Group’s competitiveness and expanded its scale, taking its revenue from €150 million in
2017 to nearly €280 million in 2025.
We will remember Pietro not only for being a brilliant manager with a clear strategic vision,
but also because he embodied a work ethic and a sense of responsibility that permeated
the organisation at every level. It is no coincidence that in 2025, for the seventh
consecutive year, Sabaf was awarded the Best Managed Companies Award, presented
annually by Deloitte Private to companies that have distinguished themselves through the
excellent quality of their management.
The Board of Directors has entrusted me with the task of continuing the course of action
Sabaf has pursued in recent years, having worked alongside Mr Iotti as Chief Financial
Officer (a role I have held since 2012) and shared our ideas and strategic vision. I have
accepted this role, which I am honoured to take on, fully aware of the responsibility it
entails and with a sense of belonging that has grown over almost thirty years of working
for the company.
My appointment as Chief Executive Officer was accompanied by the introduction of a
General Manager into the company’s governance structure, a role assigned to Mr Andrea
Bonfadelli, who until now had served as Technical Director of the gas division and Supply
Chain Director. Andrea also has extensive experience at Sabaf (he joined in 2007) and has
contributed to the implementation of the business plan, focusing in particular on the
integration of the new business units.
Together with the other managers in the Group, we form a team that has been tried and
tested over many years of working together; we know the organisation and the business
inside out, and we share not only the strategic vision but also the values that guide the way
we operate. We are therefore confident that we can continue on this positive path, drawing
strength from the spirit of unity that characterises everyone at the Sabaf Group.
In 2025, the household appliances market was characterised by stable demand, though
levels remained low (-10% compared with pre-Covid years). The decisions we have made
in recent years have enabled us to hold our own in the face of increasingly demanding
requirements from major players towards their suppliers: high production capacity close
to our own facilities, a wide product range and customisation options, innovation and
financial stability.
Revenue continued to grow in North America (+8%), driven by the Mexican plant reaching
full capacity and sales from the US company Mansfield Engineered Components (MEC),
acquired in 2023, which made Sabaf the leading manufacturer of hinges for household
appliances in the Western world and enabled the development of significant synergies.
Sales also performed well in South America (+6.6%) and Europe (+3%).
An analysis of sales by business segment continues to show positive results for hinges and
components for gas cooking (the world’s primary cooking technology), driven not only by
the Group’s long-standing production sites (Italy, Turkey and Brazil) and the
aforementioned Mexican plant, but also by the recently opened facility in India.
In 2025, efforts to diversify the product range continued. In particular, we aim to expand
the use of the Electronics Division’s products beyond household appliances and to explore
business segments with greater growth potential.
Profitability benefited from the significant measures taken to promote automation, energy
efficiency and process optimisation across all the Group’s factories.
In 2025, work continued to meet the targets set out in the Business Plan for safety, training
and reduction of CO2 emissions.
The climate change mitigation plan has been approved; it sets out a target to reduce Scope
1 and Scope 2 greenhouse gas emissions by 58.8% by 2034 compared to 2024, in line with
the Paris Agreement’s objective of limiting global warming to 1.5°C. This target will be
pursued through a combination of measures, including improving the energy efficiency of
production processes, the self-generation of energy from photovoltaic sources and the
gradual procurement of energy from renewable sources. Meanwhile, in 2025, a 2.5 MW
photovoltaic plant was completed at the Ospitaletto site, which will increase the
proportion of self-generated energy to over 10% of total consumption.
The year 2026 began with global political tensions, the duration and economic and
financial impact of which are difficult to predict. We are confident, in any case, that we
have what it takes to navigate any scenario: a diversified product range, an international
production network, commercial flexibility and financial stability, combined with the
expertise and professionalism of our people, form the foundation on which we will
continue to generate sustainable value.
Gianluca Beschi
Chief Executive Officer
Sabaf Group | 2025 Report on Operations
1
SABAF GROUP
REPORT ON OPERATIONS
Sabaf Group | 2025 Report on Operations
2
The Group's economic performance
This paragraph presents and comments on the normalised financial results for the Group,
i.e. which have been adjusted for the effects of the application of IAS 29 - hyperinflation
accounting standard - with reference to the financial statements of the subsidiary Sabaf
Turkey. This representation allows a better understanding of the Group's performance and
a more accurate comparison with previous periods.
2025
2024
2025-2024
change
% change
Sales revenue
278,201
285,091
(6,890)
-2.4%
Hyperinflation – Turkey
1,035
(8,126)
Normalised revenue
279,236
276,965
2,271
+0.8%
EBITDA
40,780
43,704
(2,924)
-6.7%
EBTIDA %
14.7
15.3
Hyperinflation – Turkey
570
(3,306)
Normalised EBITDA
41,350
40,398
952
+2.4%
Normalised EBITDA %
14.8
14.6
EBIT
16,163
17,739
(1,576)
-8.9%
EBIT %
5.8
6.2
Hyperinflation – Turkey
4,986
3,465
Normalised EBIT
21,149
21,204
(55)
-0.3%
Normalised EBIT %
7.6
7.7
Group net result
5,180
6,928
(1,748)
-25.2%
Net result %
1.9
2.4
Hyperinflation – Turkey
7,696
9,022
Normalised result of the Group
12,876
15,950
(3,074)
-19.3%
Normalised result %
4.6
5.8
The Sabaf Group ended the 2025 financial year with normalised sales revenue of €279.2
million, up 0.8% from the €277 million in 2024 (+2.2% at constant exchange rates).
Sales growth was driven by the excellent results in North America (revenue of EUR 64.9
million, +8%; +12.3% at constant exchange rates), achieved thanks to the fast ramp-up of
the Mexican production site and the synergies developed in the US with Mansfield
Engineered Components (MEC), a hinge manufacturer acquired in 2023.
Normalised EBITDA amounted to EUR 41.4 million (14.8% of turnover), up 2.4% from
EUR 40.4 million in 2024 (14.6% of turnover), due in part to the measures taken for
automation, energy efficiency and process optimisation.
Normalised EBIT amounted to EUR 21.1 million (7.6% of turnover), in line with the EUR
21.2 million in 2024 (7.7% of turnover). Normalised net profit was €12.9 million (4.6% of
sales) compared to €16 million (5.8% of sales) in 2024.
Sabaf Group | 2025 Report on Operations
3
The subdivision of normalised sales revenues by product line is shown in the table below:
Normalised revenue
2025
%
2024
%
% change
Gas parts
165,695
59.3%
164,081
59.2%
+1.0%
Hinges
90,164
32.3%
86,627
31.3%
+4.1%
Electronic components
22,954
8.2%
25,783
9.3%
-11.0%
Induction
423
0.2%
474
0.2%
-10.8%
Total
279,236
100%
276,965
100%
+0.8%
The geographical breakdown of normalised revenues is shown below:
Normalised revenue
2025
%
2024
%
% change
Europe (excluding
Turkey)
81,384
29.1%
79,036
28.5%
+3.0%
Turkey
66,615
23.9%
70,459
25.4%
-5.5%
North America
64,876
23.2%
60,088
21.7%
+8.0%
South America
37,998
13.6%
35,654
12.9%
+6.6%
Africa and Middle East
11,469
4.1%
15,190
5.5%
-24.5%
Asia and Oceania
16,894
6.1%
16,538
6.0%
+2.2%
Total
279,236
100%
276,965
100%
+0.8%
The impact of normalised labour cost on revenues is 15%, unchanged compared to the
previous year.
The net profit for 2025 includes non-operating costs referring to the increase in the value
of the financial liability related to the put option granted to the minority shareholders of
Mansfield Engineered Components (MEC). In particular,following the significant
improvement in the subsidiary’s performance, as at 31 December 2025, an adjustment was
made to the value of the option, the price for which is correlated to the MEC’s results in
the two years preceding the financial year, with financial expenses of €5 million and foreign
exchange gains of €1.5 million.
In 2025, the Group recognised income taxes of €1.3 million (in 2024, taxes were recognised
under this item, amounting to €3.4 million).
Sabaf Group | 2025 Report on Operations
4
Statement of financial position and cash flows
The Group’s statement of financial position, reclassified based on financial criteria, is
illustrated below
1
:
(
€
/000)
31/12/25
31/12/24
Non-current assets
166,791
177,663
Current assets
2
139,649
142,200
Current liabilities
3
(62,849)
(63,953)
Working capital
4
76,800
78,247
Provisions for risks and charges, post-employment
benefit, deferred taxes, other non-current payables
(8,593)
(8,285)
Net invested capital
234,998
247,625
Short-term net financial position
(1,498)
(11,026)
Medium/long-term net financial position
(73,712)
(62,855)
Net financial debt
(75,210)
(73,881)
Shareholders’ equity
159,788
173,744
Cash flows for the financial year are summarised in the table below:
(
€
/000)
2025
2024
Opening liquidity
30,641
36,353
Operating cash flow
35,088
27,033
Cash flow from investments
(17,955)
(14,706)
Free cash flow
17,133
12,327
Cash flow from financing activities
(9,047)
(16,773)
Foreign exchange differences
(4,191)
(1,266)
Cash flow for the period
3,895
(5,712)
Closing liquidity
34,536
30,641
1
Net financial debt and liquidity shown in the tables below are defined in compliance with the net financial
position detailed in Note 24 of the consolidated financial statements, as required by CONSOB memorandum
of 28 July 2006.
2
Sum of Inventories, Trade receivables, Tax receivables and Other current receivables
3
Sum of Trade payables, Tax payables and Other liabilities
4
Difference between current assets and current liabilities
Sabaf Group | 2025 Report on Operations
5
In 2025, the Group generated operating cash flow of €35.1 million (€27 million in 2024).
At 31 December 2025, the impact of the net working capital on revenue was 27.6%
compared to 27.4% at 31 December 2024.
In 2025, net investments by the Group amounted to €18 million (€14.7 million in 2024).
The main investments were aimed at:
• product innovation, including the development of components for induction
cooking;
• industrialising new products;
• optimising the efficiency and automation of production processes.
In 2025, the positive free cash flow
5
generated by the Sabaf Group was €17.1 million (€12.3
million in 2024).
During the financial year, dividends were paid out for €7.9 million.
Total financial debt
At 31 December 2025, net financial debt was €75.2 million (€73.9 million at 31 December
2024). The change in net financial debt is summarised in the table below:
Net financial debt at 31 December 2024
(73,881)
Free cash flow
17,133
Financial assets
(160)
MEC put option valuation
(3,513)
Buy-back of shares
(1,880)
Distribution of dividends
(7,949)
Financial liabilities IFRS 16
(731)
Change in fair value of derivative financial instruments
(38)
Foreign exchange differences and other changes
(4,191)
Net financial debt at 31 December 2025
(75,210)
Shareholders’ equity totalled €159.8 million at 31 December 2025; the ratio between the
net financial debt and the shareholders’ equity was 0.47 and was unchanged compared to
2024 (0.43).
The net financial debt as of 31 December 2025 includes €15 million for the financial liability
related to the accounting of the put option granted to the minority shareholders of MEC
and operating leases were recognised for a value of €5 million in accordance with IFRS 16.
5
Free cash flow is the difference between Cash Flows from operations and Net investments.
Sabaf Group | 2025 Report on Operations
6
Economic and financial indicators
2025
2024
Change in turnover
-2.4%
+19.8%
ROCE (return on capital employed)
6.88%
7.16%
Net debt/EBITDA
1.84
1.69
Net debt/equity ratio
47.07%
42.5%
Market capitalisation (31/12)/equity ratio
1.10
1.10
Risk Factors
As part of its periodic risk assessment process, the Group identified and assessed the
following main risks:
Risks of external context
Risks deriving from the external context in which Sabaf operates, which could have a
negative impact on the economic and financial sustainability of the business in the
medium/long-term. The most significant risks in this category are related to general
economic conditions, trend in demand and product competition.
Strategic risks
Strategic risks that could negatively impact Sabaf's medium-term performance, including,
for example, risks related to low profitability of certain product lines, the risks arising from
the mismatch between market needs and product innovation.
Operational risks
Risks of suffering losses due to inadequate or malfunctioning processes, human resources
and information systems. This category includes financial risks (e.g. losses deriving from
the volatility of the price of raw materials and from fluctuations in exchange rates), risks
related to production processes (e.g. product liability, saturation level of production
capacity), organisational risks (e.g. loss of key staff and expertise and/or the difficulty of
replacing them) and Information Technology risks.
Legal and compliance risks
Risks related to Sabaf's contractual liabilities and compliance with the regulations
applicable to the Group, including: Legislative Decree 231/2001, Law 262/2005, HSE
regulations, regulations applicable to listed companies, tax regulations, labour regulations,
international trade regulations and intellectual property regulations.
ESG risks
Relevant risks related to environmental, social and governance issues are set out in the
Consolidated Sustainability Statement within this Report, to which we refer.
The main risks are described in detail below as well as the relevant risk management
actions that are currently being implemented.
Sabaf Group | 2025 Report on Operations
7
Performance of the sector
The Group’s financial position, results and cash flows are affected by several factors related
to the performance of the sector, including:
▪ the general macro-economic performance: the household appliance market is
affected by macro-economic factors such as gross domestic product, consumer and
business confidence, interest rate trend, the cost of raw materials, the
unemployment rate and the ease of access to credit;
▪ the concentration of the end markets: as a result of mergers and acquisitions,
customers have acquired bargaining power;
▪ the stagnation of demand in mature markets (i.e. Europe) and the growing
importance of markets in emerging Countries, characterised by different sales
conditions and a more unstable macro-economic environment;
▪ increasing competition and competition from alternative products to gas cooking.
To cope with this situation, the Group aims to retain and reinforce its leadership position
wherever possible through:
▪ the maintenance of high quality and safety standards, which make it possible to
differentiate the product through the use of resources and implementation of
production processes that are not easily sustainable by competitors;
▪ development of new products characterised by superior performance compared
with market standards, and tailored to the needs of the customer;
▪ strengthening of business relations with the main players in the sector;
▪ diversification of commercial investments in growing and emerging markets with
local commercial and productive investments;
▪ entry into new segments / business sectors.
Risks related to international geopolitical situation
The current complex geopolitical situation, characterised by high levels of international
tension, is causing significant economic uncertainty, with many factors subject to high
volatility. This situation is affecting market confidence, with the prospect of a prolonged
period of weak macroeconomic conditions. In particular, the evolution of ongoing conflicts
and tensions in the Middle East could lead to increasing instability and new geopolitical
complexities. The Group and its main customers have limited exposure in the areas
currently affected, and management continuously monitors the potential impacts that the
conflict may have on the Group’s operations, with particular reference to energy costs and
the supply chain, also considering the Group’s proven historical ability to pass on changes
in material costs to selling prices.
Tariff barriers
The Group's manufacturing footprint, with plants in all major markets, significantly
mitigates potential impacts from the introduction of trade tariffs or export restrictions by
national or supranational bodies. Any tariff or customs barriers could affect international
economic growth.
Instability of Emerging countries in which the Group operates
The Group is exposed to risks related to (political, economic, tax, regulatory) instability in
some emerging countries where it produces or sells. Any embargoes or major political or
economic instability, or changes in the regulatory and/or local law systems, or new tariffs
Sabaf Group | 2025 Report on Operations
8
or taxes imposed could negatively affect a portion of Group turnover and the related
profitability.
Sabaf has taken the following measures to mitigate the above risk factors:
▪ diversifying investments at international level, setting different strategic priorities
that, in addition to business opportunities, also consider the different associated
risk profiles;
▪ monitoring of the economic and social performance of the target countries, also
through a local network of agents and collaborators;
▪ timely assessment of (potential) impacts of any business interruption on the
markets of Emerging countries;
▪ adoption of contractual sales conditions that protect the Group (e.g. insuring
business loans or advance payments).
The presence of Sabaf in Turkey, the country that represents the main production hub of
household appliances at European level, is of particular importance: over the years, local
industry attracted heavy foreign investments and favoured the growth of important
manufacturers. In this context, Sabaf built a factory in Turkey in 2012 for the production
of gas components. In 2018, the Group acquired 100% of Okida Elektronik, a leader in
Turkey in the design, manufacture and sale of electronic control boards for household
appliances. In 2021, Sabaf opened a new plant in Turkey to increase production capacity
for electronic components and, in 2022, the production of hinges for dishwashers for
customers with production sites in Turkey also started. In 2025, Turkey represented
24% of the Group's production and of its total sales. The Turkish domestic market is
estimated to represent around 5% of the final destination of Sabaf components, with the
remainder being exported household appliances. In consideration of the strategic
importance of this Country, the management assessed, in addition to the risks connected
with the macroeconomic situation, the risks that could arise from any
difficulties/impossibilities of operating in Turkey and envisaged actions to mitigate this
risk.
Financial risks
The Sabaf Group is exposed to a series of financial risks, due to:
▪ Commodity price volatility: a significant portion of the Group’s purchase costs
is represented by aluminium, steel and brass, the prices of which can be exposed
to high volatility. Based on market conditions and contractual agreements, the
Group may not be able to pass on changes in raw material prices to customers in a
timely and/or complete manner, with consequent effects on margins.
▪ Increase in energy costs: some of the Group's production processes, such as the
die-casting of aluminium parts and the enamelling of burner covers, use gas as an
energy source. Other production facilities absorb significant electricity
consumption. The Group's profitability might be impacted if it is unable to pass on
to customers any significant increases in energy costs in a timely and/or complete
manner. In order to mitigate this risk, the Group can enter into fixed-price
electricity supply contracts and is constantly evaluating possible actions to contain
energy consumption, including by improving the efficiency of the most energy-
intensive plants.
Sabaf Group | 2025 Report on Operations
9
▪ Exchange rate fluctuation: the Group carries out transactions primarily in euro;
however, transactions also take place in other currencies, such as the U.S. dollar,
the Brazilian real, the Turkish lira, the Chinese renminbi, the Indian rupee. In In
particular, since 30.6% of the consolidated turnover is in US dollars, the possible
depreciation against the euro, the Turkish lira and the Brazilian real could lead to a
loss in competitiveness on the markets in which sales are made in that currency
(mainly North and South America). Moreover, the net value of assets and liabilities
in foreign subsidiaries constitutes an investment in foreign currency, which
generates a translation difference on consolidation of the Group, with an impact on
the comprehensive income statement and the financial position. The sales prices
of the Turkish subsidiary are exclusively denominated in euro or US dollars; those
of the Brazilian subsidiary are denominated in Brazilian real for domestic sales and
in US dollars for exports.
▪ Trade receivable: the high concentration of turnover on a small number of
customers generates a concentration of the respective trade receivables, with a
resulting increase in the negative impact on economic and financial results in the
event of payment delays or insolvency.
For more information on financial risks and the related management methods, see Note
37 of the consolidated financial statements as regards disclosure for the purposes of IFRS
7.
Sabaf Group | 2025 Report on Operations
10
Research and Development
The most important research and development projects carried out in 2025 were as
follows:
Gas parts
▪ design of a new range of burners for the Indian market
▪ feasibility study for the development of new taps
▪ development of solutions to increase the flexibility of the gas component
manufacturing process
▪ design of a new furnace burner and brass flame distributor
▪ design of customised components for individual customers and markets
Hinges
▪ development of new sliding hinges for dishwashers
▪ development of new internal cam hinges
▪ development of a modular hinge design for a dishwasher platform
▪ integration of a system into a standard product to extend the balancing range
▪ development of a motorised hinge for oven doors
Electronic components
▪ development of a new electronic control platform for IOT vacuum cleaners
▪ development of a TFT oven control system for the European and American
markets
▪ industrialisation of the first product for the irrigation/gardening market
Induction
▪ development of new assisted cooking features
▪ development of an interface with knobs
▪ certification of product platforms offering many combinations with the aim of
providing a modular and customisable range based on each customer's specific
requirements
The improvement in production processes continued throughout the Group, also in order
to minimise set-up times and make production more flexible. The Group also develops
and manufactures its own machinery, equipment and moulds.
Development costs to the tune of €1,011,000 were capitalised, as all the conditions set by
international accounting standards were met. In other cases, they were charged to the
income statement.
Corporate Governance
For a complete description of the corporate governance system of the Sabaf Group, see
the report on corporate governance and on the ownership structure, available in the
Investor Relations section of the company website.
Personal data protection
Sabaf S.p.A. has an Organisational Model for the management and protection of personal
data consistent with the provisions of European Regulation 2016/679 (General Data
Sabaf Group | 2025 Report on Operations
11
Protection Regulation - GDPR). Specific projects are implemented or are being
implemented for all Group companies for which the GDPR is applicable.
Derivative financial instruments
For the comments on this item, please see Note 37 of the consolidated financial
statements.
Essential intangible assets
Information on key intangible assets is provided in the Consolidated Sustainability
Statement under the section ‘Valuation of intangible assets and intellectual capital’
Atypical or unusual transactions
Sabaf Group companies did not execute any unusual or atypical transactions in 2025.
Management and coordination
Sabaf S.p.A. is not subject to management and coordination by other companies.
Sabaf S.p.A. exercises management and coordination activities over its Italian subsidiaries,
Faringosi Hinges s.r.l., A.R.C. s.r.l., C.M.I. s.r.l., C.G.D. S.r.l. and P.G.A. s.r.l..
Intra-group transactions and related-party transactions
The relationships between the Group companies, including those with the parent
company, are regulated under market conditions, as well as the relationships with related
parties, defined in accordance with the accounting standard IAS 24. The details of intra-
group transactions and other related-party transactions are given in Note 38 of the
consolidated financial statements and in Note 38 of the separate financial statements of
Sabaf S.p.A.
Business outlook
In the household appliance market, demand has been tending towards stability for the past
two years and has not yet returned to pre-Covid levels. The strength of the Group’s
competitive positioning, the investments of recent years, also aimed at geographic
diversification, and the development of a wide range of new products offer Sabaf ample
room for further growth in 2026. Although the effects of the Middle East conflict are not
fully predictable at the moment, the Group faces the current scenario with its usual
dynamism, ready to manage ongoing developments and identify new opportunities.
Sabaf Group | 2025 Report on Operations
12
Business and financial situation of Sabaf S.p.A.
(
€
/000)
2025
2024
Change
% change
Sales revenue
105,263
106,228
(965)
-0.9%
EBITDA
7,322
9,219
(1,897)
-20.6%
EBIT
(891)
1,786
(2,677)
-149.9%
Pre-tax profit (EBT)
9,558
1,175
8,383
+713.4%
Net profit
10,653
1,328
9,325
+702.2%
The 2025 financial year ended with a turnover of €105.3 million, a decrease of 0.9%
compared with 2024.
In 2025, Sabaf S.p.A. recognised dividend income in the amount of €17.3 million from
Italian subsidiaries and write-downs of equity investments of €3.1 million.
The reclassification based on financial criteria is illustrated below:
(
€
/000)
31/12/25
31/12/24
Non-current assets
6
180,271
184,308
Non-current financial assets
4,700
7,971
Current assets
7
61,969
60,926
Current liabilities
8
(33,427)
(34,382)
Working capital
9
28,542
26,544
Provisions for risks and charges, Post-employment benefits,
deferred taxes
(2,018)
(2,185)
Net invested capital
211,495
216,638
Short-term net financial position
(12,403)
(32,120)
Medium/long-term net financial position
(70,439)
(58,117)
Total financial debt
10
(82,842)
(90,237)
Shareholders’ equity
128,653
126,401
6
Excluding Financial assets
7
Sum of Inventories, Trade receivables, Tax receivables and Other current receivables
8
Sum of Trade payables, Tax payables and Other liabilities
9
Difference between current assets and current liabilities
10
Determined in accordance with Consob Communication of 28 July 2006 (Note 23 of the separate financial
statements)
Sabaf Group | 2025 Report on Operations
13
Cash flows for the financial year are summarised in the table below:
(
€
/000)
2025
2024
Opening liquidity
2,039
13,899
Operating cash flow
4,227
4,448
Cash flow from investments (net of divestments)
(7,545)
(14,561)
Free cash flow
(3,318)
(10,113)
Cash flow from financing activities
12,190
(1,747)
Cash flow for the period
8,872
(11,860)
Closing liquidity
10,911
2,039
At 31 December 2025, working capital stood at €28.5 million compared with €26.5 million
at the end of the previous year: its percentage impact on turnover stood at 27.1% from
24.9% at the end of 2024.
The net financial debt was €82.8 million, compared with €90.2 million at 31 December
2024.
At the end of the year, shareholders' equity amounted to €128.7 million, compared with
€126.4 million in 2024. The ratio between the net financial debt and the shareholders’
equity was 7.1%; it was 71% at the end of 2024.
Sabaf Group | 2025 Report on Operations
14
Reconciliation between parent company and consolidated shareholders’ equity
and net profit for the period
Pursuant to the CONSOB memorandum of 28 July 2006, a reconciliation statement of the
result of the 2025 financial year and Group shareholders' equity at 31 December 2025 with
the same values of the parent company Sabaf S.p.A. is given below:
31/12/2025
31/12/2024
Description
Profit for
the year
Shareholde
rs’ equity
Profit for
the year
Shareholde
rs’ equity
Profit and shareholders’ equity of parent
company Sabaf S.p.A.
10,653
128,653
1,328
126,401
Equity and consolidated company results
21,605
127,670
16,422
134,492
Derecognition of the carrying value of
consolidated equity investments
2,925
(109,395)
3,070
(109,351)
Monetary revaluation - hyperinflation (IAS 29)
(7,696)
33,096
(9,022)
36,794
Put options on minorities
(3,513)
(14,982)
252
(11,469)
Intercompany eliminations
(17,022)
(5,085)
(4,271)
(3,068)
Other adjustments
(113)
(169)
114
(55)
Minority interests
(1,659)
(7,886)
(965)
(7,940)
Profit and shareholders’ equity
attributable to the Group
5,180
151,902
6,928
165,804
Proposal for allocation of 2025 profit
As we thank our employees, the Board of Statutory Auditors, the Independent Auditors
and the supervisory authorities for their invaluable cooperation, we would kindly ask the
shareholders to approve the financial statements for the year ended 31 December 2025
with a profit for the year of €10,652,567.
The Board of Directors proposes to distribute an ordinary dividend of € 0.58 per share to
the shareholders, with the exclusion of the treasury shares on the ex-date, by distributing
the profits for the year. The dividend is scheduled for payment on 27 May 2026 (ex-date
25 May, record date 26 May 2026).
Sabaf Group | 2025 Report on Operations
15
Sabaf Group
Consolidated Sustainability Statement 2025
ESRS 2 General Disclosures
[ESRS 2 BP-1] General basis for preparation of the Consolidated Sustainability
Statement
The Sabaf Group’s 2025 Consolidated Sustainability Statement (hereinafter also referred
to as the “Statement” or “Sustainability Statement”) has been prepared in accordance with
Legislative Decree No. 125 of 6 September 2024, the
European Sustainability Reporting
Standards
(ESRS) and the transitional simplification measures introduced by the so-called
‘quick fix’
of the Omnibus package adopted by the European Commission on 11 July 2025.
The Report includes data from the parent company Sabaf S.p.A. ('Sabaf' or the 'Company')
and all subsidiaries (the 'Sabaf Group' or the 'Group') included in Sabaf's consolidated
financial statements. The reporting period, from 1 January to 31 December, is also the
same as the consolidated financial statements. The list of companies included in the
consolidated financial statements and confirmation of the countries in which they have
their registered offices, can be found in Note 45 to the consolidated financial statements.
This Sustainability Statement covers the upstream and downstream value chain of the
Group, which was considered in the materiality assessment to identify material impacts,
risks and opportunities. Information on policies, actions and objectives related to the
upstream and downstream value chain are presented in the appropriate sections.
The Sabaf Group has not withheld information on intellectual property, know-how or
innovation results.
The Sabaf Group has not availed itself of the option to omit information due to impending
developments or issues in the course of negotiations provided for in Article 29 bis (3) of
Directive 2013/34/EU.
For the purpose of reporting prospective information in accordance with the ESRS,
directors are required to prepare this information on the basis of assumptions, described
in the Consolidated Sustainability Statement, regarding events that may occur in the future
and possible future actions by the Group. Due to the uncertainty associated with the
realisation of any future event, both in terms of the occurrence of the event and the extent
and timing of its occurrence, deviations between actual values and prospective
information could be significant.
This Sustainability Statement was approved by the Board of Directors on 24 March 2026
and subjected to a limited review by the auditing firm EY S.p.A.
Sabaf Group | 2025 Report on Operations
16
[ESRS 2 BP-2] Disclosure in relation to specific circumstances
The short, medium and long term time horizons used in this Sustainability Statement are
defined in line with the provisions set out in ESRS 1. The assessment of Impacts, Risks and
Opportunities (IRO) took into account the time horizon of the 2024-2026 Business Plan,
which was considered adequate for obtaining assessments applicable to the Sabaf Group's
strategic decisions. Short, medium and long term time horizons are defined respectively
as one year or less, two to three years and more than three years. These time horizons are
defined on the basis of the timing dictated by the Group's strategic considerations and
decisions.
Almost all of the quantitative data reported was acquired directly from the Group's
information systems. Where data have been obtained from different sources, estimated or
obtained indirectly, through processing by the actors in the value chain, this is explicitly
indicated alongside individual metrics.
In preparing the Sustainability Statement, the management used assumptions, judgements
and estimates that influence the amounts reported, especially in relation to Scope 3
emissions. The estimates and assumptions are based on historical experience and various
other sources and factors and are considered reasonable under the circumstances. These
estimates and the underlying assumptions are reviewed on an ongoing basis to improve
their accuracy. Actions to improve the accuracy of emissions calculations include
collecting primary data sources from suppliers, where possible, and reducing the use of
assumptions or estimates when more reliable data sources become available. For more
information on the estimates and assumptions applied, please refer to the information
contained in the following sections of this Sustainability Statement.
Where there are changes or errors in the preparation and presentation of sustainability
information compared with the previous reporting period, these changes are highlighted
in the relevant section.
In order to prepare this Sustainability Statement, the Group used the option of phase-in
provisions.
[ESRS 2 GOV-1] The role of the administrative, management and supervisory
bodies
The Board of Directors is the central body of Sabaf's Corporate Governance system and
directs the Group in the pursuit of sustainable success, understood as the creation of long-
term value for the benefit of the shareholders, while respecting the interests of other
stakeholders. In the pursuit of sustainable success, the board of directors is responsible for
ensuring compliance with the values, rules of conduct and the commitments stated in
Sabaf's code of ethics (the Charter of Values).
The Board of Directors defines the strategic guidelines of the Company and the Group
consistent with the pursuit of the goal of sustainable success. Accordingly, the Board of
Directors periodically:
Sabaf Group | 2025 Report on Operations
17
▪ analyses basic industry and market trends and the evolution of the competitive
scenario;
▪ examines business opportunities and risks, including through SWOT analyses;
▪ analyses sustainable development topics, including those related to climate change
and energy transition.
Moreover, the Board of Directors examines and approves the Group's three-year Business
Plan, which is drawn up in accordance with the strategic guidelines, and periodically
monitors its implementation. In particular, the 2024-2026 Business Plan was reviewed and
approved at the meeting of 19 March 2024. At the same time, the Board of Directors
started a process to draw up a Sustainability Plan to complement the Business Plan.
The analysis of key economic and financial indicators is the responsibility of the Board of
Directors, which compares, on a quarterly basis, actual results against planned results, on
the basis of the annual budget approved by the Board at the end of the previous year.
The composition of Sabaf’s administrative, management and supervisory bodies is set out
below.
The Board of Directors of Sabaf S.p.A., having convened an emergency meeting on 18
February 2026 following the sudden death of the Chief Executive Officer, Pietro Iotti, has
temporarily delegated the responsibilities and powers for the management of the company
to Director Gianluca Beschi, CFO of Sabaf. In accordance with the provisions of Article 13
of the Articles of Association, the Board of Directors, having verified that the requirements
of good repute were met and that there were no grounds for ineligibility or incompatibility
under applicable legislation, and following a favourable opinion from the Board of
Statutory Auditors, also appointed by co-optation Christian Prinoth, the first candidate
among those not elected from the list submitted by Quaestio Capital SGR S.p.A., as a non-
executive and non-independent director. (from which the name Pietro Iotti had been
taken) at the Annual General Meeting on 8 May 2024. Christian Prinoth, who does not
hold any interest in the share capital in Sabaf S.p.A., will remain in office until the date of
the next Shareholders' Meeting of the Company.
On the date of approval of this document, the Board of Directors is composed of 9
members, 1 of whom are executive board members (the CEO and CFO Gianluca Beschi)
and 8 are non-executive board members (the Chairman Claudio Bulgarelli, Cinzia Saleri
Alessandro Potestà, Laura Ciambellotti, Francesca Michela Maurelli, Federica Menichetti,
Daniela Toscani and Christian Richard Prinoth), 4 of whom are independent (Laura
Ciambellotti, Francesca Michela Maurelli, Federica Menichetti and Daniela Toscani), i.e.
44%. The Board is predominantly composed of women (5 members, constituting 56% of
the total), while 4 are men (44% of the total). The ratio of female to male board members
is 125%.
There are no employee representatives on the Board of Directors.
The Board of Statutory Auditors of Sabaf S.p.A., appointed by the shareholders' meeting
on 8 May 2024 and in office for 3 financial years, is composed of 3 members (Alessandra
Tronconi, acting as Chairman, Maria Alessandra Zunino de Pignier and Mauro Giorgio
Vivenzi, standing auditors). The Board of Auditors is predominantly composed of women
(67%) and the ratio of female to male members is 200%.
On 8 May 2024, with the renewal of the corporate bodies, the Board of Directors
established the Sustainability Committee from within its ranks, composed of director
Sabaf Group | 2025 Report on Operations
18
Gianluca Beschi (CEO and CFO, and Sustainability Reporting Officer) and Francesca
Michela Maurelli, an independent non-executive director with relevant experience, as at
the date of approval of this document. The ratio of female to male Committee members
stands at 100%.
By resolution of 8 May 2024, the Board of Directors set up an internal Control and Risk
Committee composed of three non-executive directors, all of whom are independent
(Federica Menichetti, acting as Chairman, Laura Ciambellotti and Daniela Toscani). The
Audit and Risk Committee is 100% composed of female members.
The current Remuneration and Nomination Committee was established within the Board
by resolution of 8 May 2024. It consists of five non-executive members (Daniela Toscani,
acting as Chairman, Alessandro Potestà, Cinzia Saleri, Laura Ciambellotti and Francesca
Michela Maurelli). The Remuneration and Nomination Committee is predominantly
composed of women (4 members, or 80% of the total) and the average ratio of female to
male members is 400%.
With a view to renewing the 2024 corporate bodies, following a suggestion by the
Remuneration and Nomination Committee, the outgoing Board of Directors approved the
"
Indication of the Board of Directors on the quantitative and qualitative composition of the
Board of Directors considered optimal for the three-year period from 2024 to 2026".
The
document outlines the qualitative requirements deemed necessary for the proper
performance of its duties, including in terms of educational background and professional
experience (including sustainability skills), age and seniority in office, availability of time
and accumulation of assignments, as well as soft skills. The current composition of the
Board is fully consistent with this indication.
The main qualifications of the directors in office are listed below:
▪ Claudio Bulgarelli, Chairman, has a long experience as an entrepreneur in the
hydraulics sector; he currently holds important positions in other industrial
companies;
▪ Gianluca Beschi, in Sabaf since 1997, has held the position of CFO since 2012. He
is also the Investor Relations Officer and, following the departure of Pietro Iotti,
took up the post of Chief Executive Officer on 18 February 2026;
▪ Alessandro Potestà was a manager in a leading industrial holding company. Is
currently the Chief Executive Officer at Quaestio Capital Management SGR S.p.A.;
▪ Cinzia Saleri, Chairman of the Board of Directors of Cinzia Saleri S.a.p.A. and
already director of Sabaf S.p.A. in the period from 2012 to 2018;
▪ Laura Ciambellotti, founding partner of Studio C&C, which provides financial
advisory services, has held senior positions in the investment banking sector;
▪ Francesca Michela Maurelli, freelancer at Studio Gatti, provides consultancy to
companies on strategic, governance, organisational and financial matters. Is a
statutory auditor and non-executive director in listed and unlisted companies and
financial institutions;
▪ Federica Menichetti, lawyer, partner of Vega Law, is a member of administration
and supervisory bodies for listed companies;
▪ Daniela Toscani held positions of responsibility at Borsa Italiana S.p.A., London
Stock Exchange Group and Mittel S.p.A.;
▪ Christian Richard Prinoth is Chief Investment Officer at Quaestio Capital
Management SGR S.p.A.
Sabaf Group | 2025 Report on Operations
19
The complete CVs of all the directors are available for examination on the Company’s
website www.sabafgroup.com, under the section “Investors - Corporate Governance”.
The main qualifications of the statutory auditors in office are listed below:
▪ Alessandra Tronconi, Chairman, chartered accountant, has acquired experience in
auditing bodies in multinational companies and industrial groups in the following
areas: Corporate governance, compliance, tax law, ESG, M&A, capital markets;
▪ Mauro Vivenzi, chartered accountant, has acquired experience in the auditing
bodies of corporations and local authorities, in the industrial and utilities sectors;
▪ Alessandra Zunino de Pignier, chartered accountant, has experience in the banking
and financial sectors and as a member of administration and supervisory bodies for
listed companies.
The complete CVs of all the statutory auditors are available for examination on the
Company’s website www.sabafgroup.com, under the section “Investors - Corporate
Governance”.
[ESRS 2 GOV-2] Information provided to and sustainability matters addressed
by the undertaking’s administrative, management and supervisory bodies
In 2024, with the renewal of the corporate bodies, the Board of Directors set up a board
committee, the Sustainability Committee, which provides investigation, proposal and
consultation functions to the Board of Directors for sustainability assessments and
decisions. In particular, the Committee is assigned the following tasks:
▪ supporting the Board of Directors in the analysis of material topics for the Company
and the Group, promoting a policy that integrates sustainability into business
processes in order to ensure the creation of sustainable value over time for
shareholders and all other stakeholders;
▪ drawing up objectives, strategies and plans, including multi-year plans in the area
of sustainability, to be submitted to the Board of Directors and monitoring of their
implementation;
▪ overseeing the evolution of sustainability issues and the regulatory reference
framework, also in the light of relevant international guidelines and principles, and
identify any adaptation measures that may be appropriate and/or necessary;
▪ assessing the environmental, economic and social impacts of business activities;
▪ verifying the general approach of the Sustainability Statement and the development
of its contents as well as the completeness and transparency of the information
provided, reporting the outcome of its assessments to the Audit and Risk
Committee;
▪ promoting the dissemination of the culture of sustainability among all stakeholders;
The Sustainability Committee reports to the Board of Directors on its activities at least
every six months. A dedicated committee is more effective in ensuring that sustainability
is properly integrated into and implemented across the company’s operations.
Sabaf Group | 2025 Report on Operations
20
Further information on the role and involvement of the administrative, management and
supervisory bodies in sustainability matters is provided in the section
[ESRS 2 IRO-1]
Description of the process to identify and assess material impacts, risks and opportunities
.
Details of the IROs are provided in section
[ESRS 2 SBM-3] Material impacts, risks and
opportunities and their interaction with strategy and business model.
[ESRS 2 GOV-3] Integration of sustainability-related performance in incentive
schemes
On 8 May 2024, the Shareholders' Meeting approved a Long-Term Incentive Plan (LTIP)
for the period 2024-2026 for executive directors (CEO and CFO), executives with strategic
responsibilities and managers identified by the CEO from among those who report directly
to the CEO or who in turn report to the aforementioned managers.
The LTIP governs the requirements for the disbursement of a bonus to beneficiaries upon
the achievement, in whole or in part, of predetermined, measurable financial and
sustainability performance targets linked to the creation of shareholder value over a
medium-term horizon. These targets are based on the Business Plan and approved by the
Board of Directors.
The LTIP provides for the allocation of financial instruments, consisting of shares of the
Company, up to a maximum of 270,000 (two hundred and seventy thousand) share rights.
The Incentive Plan is linked to the achievement of targets for three three-year performance
indicators (KPIs), namely (i) the three-year cumulative adjusted EBITDA; (ii) the average
adjusted ROI over the three-year period; and (iii) sustainability targets. The first two KPIs
are based on the 2024-2026 Business Plan, while the third is based on three separate
targets relating to human resources training, occupational safety and the environment.
The weighting of the individual indicators in terms of the total allocation is 45% for the
three-year cumulative Adjusted EBITDA, 35% for the average Adjusted ROI over the
three-year period and 20% for sustainability indicators (of which 5% for performance KPIs
of human resources training aimed at the social sustainability of the Group's business and
the enhancement of internal skills, 5% for the workplace safety indicator aimed at the
social sustainability of the Group's business and the protection of employees’ health, and
10% refers to the environmental indicator aimed at environmental sustainability with a
view to reducing CO2 emissions). With regard to ESG objectives, the Board of Directors
determined the following objectives:
▪ 60 hours of average training per capita for Group employees in the three-year
period 2024-2026;
▪ severity index x (frequency index x 0.5) less than 175 as an average value over the
three-year period 2024-2026;
▪ reduction by 2026 of 1,500 tonnes of CO
2eq
(Scope 1 and Scope 2) at the Ospitaletto
site.
Assuming 100% achievement of the planned targets, the long-term variable component
linked to sustainability indicators has an impact of 6.8% on the CEO's total remuneration,
Sabaf Group | 2025 Report on Operations
21
5.8% on the CFO's global remuneration and 5.4% on the total remuneration of other
executives with strategic responsibilities.
The Chief Executive Officer and the Chief Financial Officer are also assigned targets linked
to sustainability KPIs as part of the annual MBO plan, which is approved by the Board of
Directors following the recommendation of the Remuneration and Nomination
Committee. With regard to 2025, the Chief Executive Officer has been tasked with
approving the energy transition plan and completing the budgeted investments aimed at
reducing emissions (the photovoltaic system and the foundry wastewater treatment plant),
whilst the Chief Financial Officer has been tasked with drawing up the energy transition
plan and submitting it to the Board of Directors for approval. The short-term variable
component linked to sustainability indicators accounts for approximately 3% of the
remuneration of the Chief Executive Officer and the Chief Financial Officer.
[ESRS 2 GOV-4] Statement on due diligence
There follows a mapping of the information provided in this Sustainability Statement with
regard to the due diligence process, in accordance with the European Sustainability
Reporting Standards (ESRS), and in particular GOV-4. The information provided in relation
to due diligence is based on the results of the double materiality assessment, as described
in section
[ESRS 2 IRO-1] Description of the processes to identify and assess material
impacts, risks and opportunities
CORE ELEMENTS OF DUE DILIGENCE
PARAGRAPHS IN SUSTAINABILITY
REPORTING
a) Integrate due diligence into the company’s
governance, strategy and model
▪ [ESRS 2 GOV-2] Information provided to and
sustainability matters addressed by the
undertaking’s administrative, management
and supervisory bodies
▪ [ESRS 2 GOV-3] Integration of sustainability-
related performance in incentive schemes
▪ [ESRS 2 SBM-3] Material impacts, risks and
opportunities and their interaction with
strategy and business model
▪ [E1-1] Transition plan for climate change
mitigation
▪ [E1-2] Policies related to climate change
mitigation and adaptation
▪ [E2-1] Policies related to pollution
▪ [E3-1] Policies related to water
▪ [E5-1] Policies related to resource use and
circular economy
▪ [S1-1] Policies related to own workforce
▪ [S2-1] Policies related to value chain workers
▪ [S3-1] Policies related to affected communities
▪ [S4-1] Policies related to consumers and end-
users
▪ [G1-1] Business conduct policies and
corporate culture
Sabaf Group | 2025 Report on Operations
22
b) Engaging with affected stakeholders in all key
steps of the due diligence
▪ [ESRS 2 GOV-2] Information provided to and
sustainability matters addressed by the
undertaking’s administrative, management
and supervisory bodies
▪ [ESRS 2 SBM-2] Interests and views of
stakeholders
▪ [ESRS 2 IRO-1] Description of the process to
identify and assess material impacts, risks and
opportunities
▪ [E1-2] Policies related to climate change
mitigation and adaptation
▪ [E2-1] Policies related to pollution
▪ [E3-1] Policies related to water
▪ [E5-1] Policies related to resource use and
circular economy
▪ [S1-1] Policies related to own workforce
▪ [S1-2] Processes for engaging with own
workforce and workers' representatives about
impacts
▪ [S2-1] Policies related to value chain workers
▪ [S2-2] Processes for engaging with value chain
workers about impacts
▪ [S3-1] Policies related to affected communities
▪ [S3-2] Processes for engaging with affected
communities about impacts
▪ [S4-1] Policies related to consumers and end-
users
▪ [S4-2] Processes for engaging with consumers
and end-users about impacts
▪ [G1-1] Business conduct policies and
corporate culture
c) Identify and assess negative impacts
▪ [ESRS 2 SBM-3] Material impacts, risks and
opportunities and their interaction with
strategy and business model
▪ [ESRS 2 IRO-1] Description of the process to
identify and assess material impacts, risks and
opportunities
▪ [E1 IRO-1] Description of the processes to
identify and assess material climate-related
impacts, risks and opportunities
▪ [E2 IRO-1] Description of the processes to
identify and assess material pollution-related
impacts, risks and opportunities
▪ [E3 IRO-1] Description of processes to identify
and assess material water-related impacts,
risks and opportunities
▪ [E5 IRO-1] Description of processes to identify
and assess material resource use and circular
economy-related impacts, risks and
opportunities
▪ [G1 IRO-1] Description of the processes to
identify and assess material impacts, risks and
opportunities related to business conduct
d) Intervene to address negative impacts
▪ [E1-3] Actions and resources in relation to
climate change policies
▪ [E2-2] Actions and resources related to
pollution
Sabaf Group | 2025 Report on Operations
23
▪ [E3-2] Actions and resources related to water
▪ [E5-2] Actions and resources related to
resource use and the circular economy
▪ [S1-3] Processes to remediate negative
impacts and channels for own workforce to
raise concerns
▪ [S1-4] Taking action on material impacts on
own workforce, and approaches to managing
material risks and pursuing material
opportunities related to own workforce, and
effectiveness of those actions
▪ [S2-3] Processes to remediate negative
impacts and channels for value chain workers
to raise concerns
▪ [S2-4] Taking action on material impacts on
value chain workers, and approaches to
managing material risks and pursuing material
opportunities related to value chain workers,
and effectiveness of those actions
▪ [S4-3] Processes to remediate negative
impacts and channels for consumers and end-
users to raise concerns
▪ [S4-4] Taking action on material impacts on
consumers and end-users, and approaches to
managing material risks and pursuing material
opportunities related to consumers and end-
users, and effectiveness of those actions
▪ [G1-3] Prevention and detection of corruption
or bribery
e) Track the effectiveness of interventions and
communicate
▪ [E1-4] Targets related to climate change
mitigation and adaptation
▪ [E1-5] Energy consumption and mix
▪ [E1-6] Gross Scopes 1, 2, 3 and Total GHG
emissions
▪ [E2-3] Targets related to pollution
▪ [E2-4] Pollution of air, water and soil
▪ [E2-5] Substances of concern and substances
of very high concern
▪ [E3-3] Targets related to water
▪ [E3-4] Water consumption
▪ [E5-3] Targets related to resource use and
circular economy
▪ [E5-4] Resource inflows
▪ [E5-5] Resource outflows
▪ [S1-5] Targets related to managing material
negative impacts, advancing positive impacts,
and managing material risks and opportunities
▪ [S1-6] Characteristics of employees
▪ [S1-7] Characteristics of non-employees in
own workforce
▪ [S1-8] Collective bargaining coverage and
social dialogue
▪ [S1-9] Diversity metrics
▪ [S1-10] Adequate wages
▪ [S1-13] Training and skills development
metrics
▪ [S1-14] Health and safety metrics
Sabaf Group | 2025 Report on Operations
24
▪ [S1-15] Work-life balance metrics
▪ [S1-16] Remuneration metrics (pay gap and
total remuneration)
▪ [S1-17] Incidents, complaints and severe
human rights impacts
▪ [S2-5] Targets related to managing material
negative impacts, advancing positive impacts,
and managing material risks and opportunities
▪ [S3-5] Targets related to managing material
negative impacts, advancing positive impacts,
and managing material risks and opportunities
▪ [S4-5] Targets related to managing material
negative impacts, advancing positive impacts,
and managing material risks and opportunities
▪ [G1 MDR-T] Tracking the effectiveness of
business conduct-related policies and actions
▪ [G1-4] Incidents of corruption or bribery
▪ [G1-6] Payment Practices
[ESRS 2 GOV-5] Risk management and internal controls over the Consolidated
Sustainability Statement
The management of risks and internal controls relating to sustainability reporting is
governed by the Procedure for Consolidated Sustainability Reporting. This procedure,
which was already revised in the previous financial year to bring the process into line with
the entry into force of the CSRD, has been further revised to incorporate the updates to
the process and internal controls introduced from 2025 onwards, including through the
implementation of dedicated software. The document, approved by the Board of Directors
on 3 March 2026, identifies the roles and responsibilities, the stages of the reporting
process, as well as the reference documents and regulations for the statement. The
Procedure sets forth provisions for conducting the double materiality assessment, defining
the contents of the sustainability statement, and controlling data and information
collection processes.
Specifically, in 2025, Sabaf began developing a reference framework for sustainability
reporting supported by IT tools. The initiative aims to enhance the quality, traceability and
reliability of data and information, ensuring a consistent and uniform approach to internal
and regulatory requirements.
A key element of the process is the implementation of dedicated software, designed to
complement the tools previously used, which enables the management of the entire data
lifecycle – from collection to validation – through structured and traceable workflows. This
enables all the data and information to be included in the Consolidated Sustainability
Statement to be collected in a structured and standardised manner.
The process involves data owners and data validators, at both individual company and
Group level. Data Owners are responsible for collecting, documenting and transmitting
data relating to their area of responsibility; Data Validators are tasked with verifying the
accuracy, completeness and consistency of the data collected, requesting further
information where necessary and reopening the workflow in the event of anomalies.
Sabaf Group | 2025 Report on Operations
25
The collection and validation of qualitative and quantitative information are based on a
multi-level control framework. On the one hand, the system incorporates preliminary
automated checks, such as checks for logical consistency and the completeness of
mandatory fields, which serve as a first line of defence for data quality; on the other hand,
the process includes checks carried out by the Data Validators of the individual companies,
which constitute the first level of data and information control.
The ESG Reporting Team, led by the Reporting Officer, is responsible for coordinating the
entire reporting process through appropriate periodic information flows to and from the
Data Owners and Validators, and for monitoring the progress of activities. The ESG
Reporting Team carries out internal checks to ensure the consistency and accuracy of the
data collected; where necessary, it requests additional supporting documentation and
reopens the data collection process to investigate any inconsistencies. Once consolidated,
the data is sent to the Group Data Validators, who verify the consistency of the data and
information and who, together with the ESG Reporting Team, constitute the second line
of control provided for in the Procedure.
Once the verification and approval processes have been completed, the process is
considered closed and the consolidated information and data can be included in the
Consolidated Sustainability Statement.
The Sustainability Committee is responsible for checking the overall structure of the
Sustainability Statement, its contents and the completeness and transparency of the
respective information. Any critical issues are reported to the Risk and Control Committee,
which will assess:
▪ the correct use of the ESRS, after liaising with the Sustainability Reporting Officer,
the Board of Statutory Auditors and the auditing firm;
▪ the suitability of the sustainability and financial information to correctly represent
the company's business model, strategies, the impact of its activities and the
performance levels that have been reached;
▪ the contents of periodic non-financial information relevant to the internal control
and risk management system;
In the event of non-compliance with the above-mentioned points, the Audit and Risk
Committee informs the ESG Reporting Team, which is responsible for resolving these in
the collection of data and information and in the preparation of the statement.
As required by Legislative Decree No. 125 of 6 September 2024, the Board of Directors
and the Reporting Officer certify, by means of an appropriate report, that the Sustainability
Statement included in the Report on Operations has been prepared in compliance with
Legislative Decree No. 125 of 6 September 2024, the reporting standards contained in the
delegated acts issued by the European Commission (ESRS), pursuant to Article 29-ter of
Directive 2013/34/EU, and the specifications adopted pursuant to Article 8(4) of
Regulation (EU) 2020/852 of the European Parliament and of the Council.
During the year, there were no significant risks associated with the reporting process. Any
significant aspects identified during the monitoring and control of the reporting process
are promptly reported to the Board of Directors.
The Internal Audit Function is responsible for verifying the effective application of the
Procedure.
Sabaf Group | 2025 Report on Operations
26
[ESRS 2 SBM-1] Strategy, business model and value chain
Strategic pillars of the Sabaf Group's Business Model
In line with its shared values and mission, Sabaf believes that there is a successful industrial
and cultural model to be consolidated both through organic growth and growth through
acquisitions. The Group considers its business model - which is oriented towards long-
term sustainability and characterised by a high level of verticalisation of production and
production facilities close to the main markets - to be adequate to face future challenges
and new scenarios.
The distinctive features of the Sabaf Group's business model are described below.
Innovation
Innovation represents one of the essential elements of Sabaf's industrial model and one of
its main strategic levers. Thanks to continuous innovation, the Group has managed to
achieve excellent results, identifying technological and production solutions that are
among the most advanced and effective currently available and establishing a virtuous
circle of continuous improvement of processes and products, until acquiring technological
competence with characteristics that are difficult to match for competitors. The know-how
acquired over the years in the development and internal production of machinery, tools
and moulds, which is integrated with synergy with the know-how in the development and
production of our products, represents the main critical success factor of the Group. With
the acquisition of Okida and the more recent acquisition of P.G.A., the Sabaf Group has
also acquired a strong electronic know-how that, together with the traditional and strong
mechanical skills, has further expanded business opportunities.
The investments in innovation allowed the Group to become a world leader in a highly
specialised sector. The production sites in Italy and abroad are designed to guarantee
production according to the highest levels of technology available today and represent a
cutting-edge model both for environmental protection and safety of the employees.
Eco-efficiency
Sabaf's product innovation strategy gives priority to the search for improved
environmental performance. Attention to environmental issues is reflected both in
innovative production processes that have a lower energy impact in the manufacture of
products, and for what concerns gas parts, in the design of eco-efficient products during
their daily use. The innovation efforts in this area are focused on the development of
burners that reduce fuel consumption (natural gas or GPL) and emissions (carbon dioxide
and carbon monoxide, in particular) in users. In accordance with energy transition policies,
the Group has been allocating significant resources to the development of electromagnetic
induction cooking components since 2021. Sabaf is also involved in experimental projects
and feasibility studies for the use of hydrogen as an alternative fuel to natural gas and GPL
for domestic and professional cooking appliances
Sabaf Group | 2025 Report on Operations
27
Safety
Safety has always been one of the essential elements of Sabaf's business project. Safety for
Sabaf is not just a matter of complying with existing standards but a management
philosophy oriented towards the continuous improvement of its performance, in order to
guarantee the end user an increasingly safe product. In addition to investing in research
and development of new products, the Group has chosen to play an active role in
disseminating a safety culture: Sabaf has long been promoting the introduction of
regulations worldwide - in the various institutional venues - that make it compulsory to
adopt products with thermoelectric safety devices. Sabaf also promoted the ban on the use
of zamak (zinc and aluminium alloy) for the production of gas valves for cooking, in
consideration of the intrinsic danger. To date, the use of zamak is still permitted in Brazil,
Mexico and other South American countries, limiting business opportunities in the gas
valves segment for Sabaf.
Success on international markets and partnerships with multinational groups
Sabaf pursues its growth through its success in international markets by trying to replicate
its industrial model in emerging countries with due consideration of local culture. In line
with its reference values and mission, the Group operates in emerging countries in full
respect of human rights and the environment and in compliance with the United Nations
Code of Conduct for Transnational Corporations. This choice is driven by the awareness
that only by operating in a socially responsible way it is possible to ensure long-term
development of industrial experience in emerging markets.
The Group also intends to further strengthen its collaboration with customers and its
position as main supplier of a complete range of products in the cooking components
market, also thanks to its ability to adapt production processes to specific customer needs
and provide an increasingly wide range of products. In relations with large household
appliance groups, the reliability of partners along the supply chain is more than ever an
essential requirement. The presence of production facilities in all strategic geographical
areas, the ability to react immediately to sudden changes in macroeconomic scenarios and
financial solidity put the Sabaf Group in a favourable position compared to smaller, less
structured competitors.
Widening the range of components and development through acquisitions
The continuous expansion of the range aims to increase customer loyalty through the
widest satisfaction of market requirements. The possibility of offering a complete range of
components is an additional distinguishing feature for Sabaf compared to its competitors.
In order to sustain a dynamic growth path, the Group is extending its product range to
other components for household appliances, including through growth by acquisitions. For
example, the acquisition of A.R.C. S.r.l. in 2016, a company which operates in the
professional cooking sector, of Okida in 2018 and P.G.A. in 2022, which are active in the
design and production of electronic components for household appliances, the C.M.I.
Group in 2019 and MEC in 2023, which design and produce hinges for ovens and
dishwashers. The entry into the induction cooking components sector is another
strategically important project for which Sabaf put together a dedicated development team
and which also draws on the expertise of Okida and P.G.A.
Sabaf Group | 2025 Report on Operations
28
Enhancement of intangible assets and of its intellectual capital
Sabaf carefully monitors and increases the value of its intangible assets: the high technical
and professional competence of the people who work there, the image synonymous with
quality and reliability, the reputation of a company attentive to social and environmental
issues and the requirements of its stakeholders. The promotion of the idea of work and
relations with stakeholders as a passion for a project based on common values in which
everyone can recognise themselves symmetrically represents not only a moral
commitment, but the real guarantee of enhancement of intangible assets.
Products and markets
With 15 production sites globally and more than 1,600 employees, the Sabaf Group is one
of the world's leading manufacturers of components for household gas cooking appliances,
with a market share of about 40% in Europe and over 10% worldwide.
The total of more than 1,600 employees is distributed across the different geographical
areas as follows:
Number of employees
Geographical area
2025
2024
Europe (excluding Turkey)
751
724
Turkey
463
498
North America
254
218
South America
120
108
Asia and Oceania
29
22
Total
1,617
1,570
In recent years, through a policy of organic investments and through acquisitions, the
Group expanded its product range and is now active in the following segments of the
household appliance market:
▪ gas parts;
▪ hinges;
▪ electronic components;
▪ components for induction cooking.
Sabaf Group | 2025 Report on Operations
29
The product range
Gas parts
Hinges
Electronic
components
Induction
Valves: they regulate the
flow of gas to the covered
(of the oven or grill) or
uncovered burners.
Burners: by mixing the gas
with air and burning the
gases used, they produce
one or more flame rings.
Accessories: include spark
plugs, microswitches,
injectors and other
components to complete
the range.
They allow movement
and balancing when
opening and closing the
oven door, washing
machine door or
dishwasher door.
Electronic control
boards, timers and
display and power units
for ovens, refrigerators,
freezers, hoods and
other products.
Complete kits including
all components for hob
operation.
The Sabaf Group's customers are manufacturers of household appliances. The range also
includes products for the professional sector. Most of the active commercial transactions
are characterised by long-standing relations that developed over the years.
Customer relations and sales are managed directly by the Sales teams or with the support
of multi-firm agents. In a business-to-business model, the Sabaf Group has no direct
dealings with end users.
The Group's strategic suppliers are represented by:
▪ suppliers of raw materials, such as steel alloys and non-ferrous metals (mainly
aluminium and brass); these are generally international large groups;
▪ suppliers of electronic components;
▪ suppliers of other components that are assembled into products manufactured by
the Group;
▪ suppliers of machinery and equipment, with whom the Group has strong long-term
relationships;
The Sabaf Group is aware of the strategic relevance of existing relationships so it monitors
information and data on its customers and suppliers, as well as key players in the value
chain. The tools it uses to do this include: direct relations, with a constant dialogue and
regular interaction, as well as stakeholder engagement activities, such as customer
satisfaction analysis.
Revenue by product family
2025
2024
(
€
/000)
%
(
€
/000)
%
Gas parts
165,052
59.3%
169,403
59.4%
Hinges
90,002
32.3%
87,364
30.6%
Electronic components
22,724
8.2%
27,850
9.8%
Induction
423
0.2%
474
0.2%
Total
278,201
100%
285,091
100%
Sabaf Group | 2025 Report on Operations
30
Revenue by geographical area
2025
2024
(
€
/000)
%
(
€
/000)
%
Europe (excluding Turkey)
81,417
29.3%
80,246
28.1%
Turkey
65,084
23.4%
76,103
26.7%
North America
65,136
23.4%
60,889
21.4%
South America
38,164
13.7%
35,895
12.6%
Africa and Middle East
11,458
4.1%
15,188
5.3%
Asia and Oceania
16,942
6.1%
16,770
5.9%
Total
278,201
100%
285,091
100%
[ESRS 2 SBM-2] Interests and views of stakeholders
Sabaf is committed to constantly strengthening the social value of its business activities
through careful management of relationships with stakeholders, whom it considers to be
of the utmost importance in guiding the Group’s strategic decisions. Sabaf has established
an open and transparent dialogue with stakeholders and promotes discussions to identify
their legitimate expectations, increase mutual trust, manage risks and identify new
opportunities.
The Sabaf Group provides engagement activities for all key stakeholders, such as its own
workforce and their representatives, suppliers, customers, lenders and investors, financial
analysts, schools and universities. Involvement initiatives have been established and are
carried out periodically (generally every two or three years): surveys on employee
satisfaction and corporate climate, meetings with employees and trade unions, meetings
with suppliers and customers, periodic meetings with lenders, discussions and
dialogues
with financial analysts, proxy advisors
,
current and potential investors as well as relations
with schools and universities.
These activities generate feedback that the Group considers when defining lines of action,
including with a view to continuous improvement. Specifically, results of surveys on
employee satisfaction and corporate climate influence decisions and the strategic
approach to human capital management, through the receipt and analysis of feedback
from the workforce on the working environment, employee well-being, training, skills
assessment, communication and information. Respect for workers' rights is ensured
Sabaf Group | 2025 Report on Operations
31
through the establishment of a responsible and constructive dialogue with trade unions, in
which principles of fairness and transparency are pursued.
Sabaf is aware that the interests and views of workers in the value chain can be significantly
impacted by the company. For this reason, the Group has a Sustainable Procurement
Policy, the concrete implementation and monitoring of which is aimed at preventing and
mitigating negative impacts and ensuring respect for human rights. Information on the
Sustainable Sourcing Policy can be found in section
[S2-1] Policies related to value chain
workers
.
Similarly, although there is no direct involvement with end users, their interests,
particularly in terms of product safety, are protected through quality management systems.
The Company has always considered the establishment and maintenance of transparent
and continuous communication with all the shareholders and the market to be of the
utmost importance. In this perspective, the Board of Directors has adopted a Policy for the
Management of Dialogue with shareholders.
The involvement of stakeholders is also one of the key stages of the double materiality
assessment, during which the Group's stakeholders (employees, customers, suppliers,
investors and financial analysts, environmental and community representatives) are called
upon to assess the impacts related to sustainability matters. The sample used for each
stakeholder category in the double materiality analysis carried out for the 2024 financial
year is set out below.
Stakeholder category
Sample involved
Employees
▪ Sabaf S.p.A. employee representatives.
▪ OHS Officer of Sabaf S.p.A.
▪ 6 employees of Sabaf S.p.A.
▪ 4 employees of Sabaf Turkey
▪ 4 employees of Sabaf Brazil
Customers
▪ 5 Sabaf Group customers
Suppliers
▪ 4 Sabaf Group suppliers
Investors
▪ 3 institutional investors
Financial analysts
▪ 3 financial analysts
Banks
▪ 3 banks
Environmental representatives
▪ Certification Body of the Environmental Management System
Community representatives
▪ Representative of the Municipality of Ospitaletto
▪ Member of the Confindustria Brescia Safety Observatory
The results of the assessment are presented to the Sustainability Committee, the Risk and
Control Committee and the Board of Directors, whose meetings are always attended by
the Board of Auditors.
To date, the results of engagement activities have not revealed the need for significant
changes to the Group's corporate strategy and/or business model.
[ESRS 2 SBM-3] Material impacts, risks and opportunities and their interaction
with strategy and business model
For the purpose of preparing this document, during 2025, the Sabaf Group updated the
double materiality assessment which allowed for the identification of material impacts,
risks and opportunities (IROs) for the Group and its value chain and associated ESRS
topics. An ESRS topic is considered material if it emerged as relevant following the
Sabaf Group | 2025 Report on Operations
32
assessment of the inside-out (impact materiality) and/or outside-in (financial materiality)
perspective. The result of the analysis that was conducted provides an overview of the
sustainability matters the Group prioritises in its business strategy, as well as the strategic
matters covered by material policies, objectives and metrics for driving and improving its
sustainable growth.
The update to the 2025 double materiality analysis has confirmed the priorities already
identified by the Group in previous financial years. The assessment did not lead to
significant changes in the Group's business model, but it has influenced the adjustment of
the corporate strategy with respect to sustainability matters identified as material. In this
regard, please refer to the SBM-3 sections within the following topical chapters - where
disclosure is required by the standards.
The sustainability matters associated with the topical ESRS identified by ESRS-1, RA 16
and the material impacts, risks and opportunities for the Group and its value chain are
shown in the tables below. Compared with the previous reporting period, the description
of certain impacts has been made more specific. Furthermore, a new opportunity has
emerged in relation to the circular economy (“the adoption of internal circular models and
processes to improve resource efficiency, thereby reducing associated costs”). On the
other hand, the following were no longer considered significant: a risk related to the
circular economy (“risk linked to the volatility of raw material prices and dependence on
non-renewable raw materials, in the company’s own operations and throughout the value
chain”); and a risk and an opportunity related to the company’s own workforce (“risk
associated with the lack of specific technical skills relevant to Sabaf’s business on the
labour market” and “implementation and adoption of strategies aimed at increasing the
attraction and retention of talent, including through the provision of stable employment
contracts and satisfactory working conditions, which improve work performance and also
have a positive impact on financial results”).
Sabaf Group | 2025 Report on Operations
33
Environmental topics
Impact materiality
Financial
materiality
Value chain
Topical
ESRS
Topic
Sub-topic
IRO Description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunit
y
Upstream
Own
operations
Downstream
ESRS E1
Climate
change
Climate
change
mitigation
Contribution to climate change by producing
GHG emissions during business operations.
Contribution to climate change through the
production of GHG emissions along the
upstream value chain.
Generation of GHG emissions during the
product’s use phase.
Development of products that produce GHG
emissions during their use.
Risks associated with adjusting CO
2
emissions along the supply chain to meet
market requirements and related reporting
and monitoring.
Opportunities for the development of
alternative technologies that could result in
lower emissions in the use phase of the
product, such as induction.
Development of gas firing to replace
biomass in emerging countries.
Reputational benefits related to the
introduction of decarbonisation and energy
efficiency strategies.
Climate
change
adaptation
Risks arising from the impact of emerging
climate change regulations and the inability
to adapt to market standards (e.g. effective
decarbonisation strategies, CBAM, RoHS).
Risks related to the transposition of new
sustainability regulations (e.g. Carbon Free,
RoHS, CBAM).
Sabaf Group | 2025 Report on Operations
34
Energy
Investment in self-generation of energy from
renewable sources, with consequent benefits
of energy independence and reduced
operating costs.
Impact materiality
Financial materiality
Value chain
Topical ESRS
Topic
Sub-topic
IRO Description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS E2
Pollution
Air pollution
Emission of pollutants into the atmosphere
during operations.
Emission of pollutants into the atmosphere in
the upstream operations.
Water
pollution
Emission of pollutants into water during
operations.
Emission of pollutants into water in the
upstream operations.
Soil pollution
Emission of pollutants into the soil during
operations.
Emission of pollutants into the soil in the
upstream operations.
Substances of
concern
Emission of substances of concern into the
atmosphere, water and soil during operations.
Emission of substances of concern into the
atmosphere, water and soil in upstream
operations.
Substances of
very high
concern
Emissions of substances of very high concern
into the atmosphere, water and soil during the
course of its activities.
Sabaf Group | 2025 Report on Operations
35
Emission of substances of very high concern
into the atmosphere, water and soil in the
upstream operations.
Impact materiality
Financial materiality
Value chain
Topical ESRS
Topic
Sub-topic
IRO Description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS E3
Water and
marine
resources
Water
Water withdrawal and consumption in water-
stressed areas during business operations.
Water withdrawal and consumption in water-
stressed areas along the upstream value chain.
Impact materiality
Financial materiality
Value chain
Topical ESRS
Topic
Sub-topic
IRO Description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS E5
Circular
economy
Resource
inflows,
including use
of resources
Reduction of waste and the sourcing of virgin
raw materials through recovery, recycling
and/or reuse of waste materials in business
operations and along the upstream value
chain.
Resource
outflows
related to
products and
services
Reduction of waste and the sourcing of virgin
raw materials through recovery, recycling
and/or reuse of waste materials in business
operations and along the upstream value
chain.
The adoption of internal circular models and
processes to improve resource efficiency,
thereby reducing associated costs.
Waste
Generation of waste during the performance of
business operations and along the value chain.
Sabaf Group | 2025 Report on Operations
36
Social Topics
Impact materiality
Financial materiality
Value chain
Topical
ESRS
Topic
Sub-topic
IRO Description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS S1
Own
workforce
Working
conditions
Adequate remuneration through the
application of local national contracts,
supplemented by any better bargaining
agreements.
Dissemination of a corporate culture that
promotes the well-being of employees
and enables work-life balance.
Occurrence of incidents and work-related
ill health
Risks related to security
incidents/accidents.
Dissemination of a corporate culture
based on safety that positively influences
corporate reputation.
Equal
treatment
and
opportunities
for all
Any incidents of discrimination based on
gender, sexual, religious and/or political
orientation, ethnic origin or social and
personal conditions.
Potential incidents of discrimination
related to gender pay equality.
Improvement of employees’ personal and
professional skills by adopting training
plans and initiatives.
Risks associated with the loss of key
resources and related skills.
Utilisation of specialised skills for possible
entry into sectors/markets other than
household appliances, as well as the
Sabaf Group | 2025 Report on Operations
37
search for new professionals to foster the
spread of new and broader skills from
which new business opportunities may
arise.
Impact materiality
Financial materiality
Value chain
Topical
ESRS
Topic
Sub-topic
IRO Description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS S2
Workers in
the value
chain
Working
conditions
Possible impact on the working conditions
of workers in the upstream value chain,
including respect for human rights, health
and safety, and adequate remuneration,
due to the absence of monitoring
provisions.
Reputational and compliance risk related
to the occurrence of contractor accidents.
Impact materiality
Financial materiality
Value chain
Topical
ESRS
Topic
Sub-topic
IRO Description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS S3
Affected
communiti
es
Economic,
social and
cultural rights
of
communities
Creation of jobs and distribute economic
value in the affected areas that have a
positive impact on local communities.
Collaboration with local universities,
institutions and associations, contributing to
the growth of local communities.
Sabaf Group | 2025 Report on Operations
38
Impact materiality
Financial materiality
Value chain
Topical
ESRS
Topic
Sub-topic
IRO Description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS S4
Consumers
and end
users
Personal
safety of
consumers
and/or end
users
Risks associated with non-compliance
with product quality and safety standards.
Governance topics
Impact materiality
Financial materiality
Value chain
Topical
ESRS
Topic
Sub-topic
IRO Description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstrea
m
ESRS
G1
Business
Conduct
Corporate
culture
Partnerships based on principles of
collaboration and transparency that
contribute to market enrichment and
facilitate the achievement of sustainability
goals.
Management
of
relationships
with
suppliers,
including
payment
practices
Potential delays in payments to suppliers
compared to contractually agreed terms.
Corruption or
bribery
Dissemination of corporate policies that
promote and disseminate an ethical and
responsible corporate culture.
Sabaf Group | 2025 Report on Operations
39
The description of the above IROs shows where these occur in the Group's business model,
in its operations and in the upstream and downstream value chain. The reasonably
expected time horizon for the impacts, as well as the time horizon used to conduct the
assessments, is the medium term (Business Plan 2024-2026). Regarding the "Contribution
to climate change through the production of GHG emissions during the course of business
operations/value chain" the time horizon considered is the long term.
The Sabaf Group has identified impacts, risks and/or opportunities associated with the
sustainability matters reported in ESRS 1 - RA 16, while it has not identified entity-specific
IROs
. The following chapters describe the actions implemented by the Group to mitigate
and/or prevent negative impacts and risks and to pursue the positive impacts and
opportunities that have been identified. For each thematic area, the material impacts are
also described, with details of how these affect people and the environment, whether they
derive from the Group's strategy and business model, and whether they are caused by the
Group's own activities or its business relations.
In addition, the chapters detail the Group's resilient approach, with evidence of the
measures taken to prevent, mitigate and respond to the potential effects of risks and
negative impacts. To date, the Sabaf Group has recorded financial effects from material
opportunities relating to climate change. The company's commitment to the development
of induction cooking and the increase in the share of self-produced energy resulted in
capital expenditure (induction and photovoltaics) and revenue (induction) during the
reporting period. Detailed information on the opportunities mentioned above can be found
in section
[E1 IRO-1] Description of the processes to identify and assess material climate-
related impacts, risks and opportunities
.
[ESRS 2 IRO-1] Description of the process to identify and assess material
impacts, risks and opportunities
During 2025, the Sabaf Group updated its Materiality Analysis in accordance with the
requirements of the CSRD and the ESRS, with a view to preparing its 2025 Consolidated
Sustainability Statement.
The Impact Materiality, established in the previous financial year, has been confirmed
following the annual review and monitoring of key regulatory and industry trends. This
analysis did not reveal any significant changes in the Group’s operating environment, value
chain or activities.
Financial Materiality, which forms part of the Enterprise Risk Management (ERM) process,
was updated during the annual risk assessment.
The update resulted in the identification of a list of key impacts, risks and opportunities for
2025, which was submitted to the Sustainability Committee for review and approved by
the Board of Directors at its meeting on 3 March 2026.
Details of the Impact and Financial Materiality analyses performed are given in the
following paragraphs.
Impact Materiality Analysis
The Impact Materiality Analysis was conducted according to the following steps.
Sabaf Group | 2025 Report on Operations
40
1.
Understanding the context of the organisation
In order to identify the Sabaf Group's impacts, risks and opportunities associated
with sustainability matters, the context analysis involved:
▪ an assessment of the Sabaf Group's own operations, including by
conducting interviews with corporate functions, which allowed the mapping of
Group processes and the identification of circumstances deemed particularly
critical for the occurrence of negative impacts;
▪ an in-depth mapping of Sabaf's value chain, which considered both an
analysis of the Group's internal sourcing data and an analysis of international
rating platforms and agencies (S&P, MSCI, ENCORE) that identify priority
impacts for each sector. During this phase, particular attention was paid to areas
where the Company believed it was most likely that impacts, risks and
opportunities might arise, based on the nature of the activities, business
relationships, geographical areas and other contextual factors;
▪ a technical assessment of the Environmental Analysis conducted for
the production plant of Sabaf S.p.A., whose industrial operations and
related environmental impacts are considered representative of the Group's
main manufacturing plants as the processes and technologies adopted are
comparable. This assessment led to the inclusion in the impact analysis of the
topics of water and pollution, that had previously been deemed to be non-
material by stakeholders. The assessment took place with the technical support
of the HSE manager;
▪ the Sabaf Group's dependencies in terms of raw materials and procurement,
natural resources, human capital, the regulatory and institutional environment.
2.
Definition of impacts
Starting from the material topics identified in the previous reporting periods, and
the results of the analysis of the company’s internal and external context, which
considered the sectoral scope of reference, a long list was compiled of current or
potential positive and negative impacts, which are potentially material to the Sabaf
Group. These are understood to be the actual or potential effects on the
environment and people, including effects on human rights, as a result of the
Group’s activities or business relations. The impacts, each associated with a
sustainability topic or sub-topic identified by ESRS 1 - RA 16, were defined by
taking into consideration the sector of origin, the business operations and activities
along the value chain that impact or may impact people and the environment, and
the outcome of interviews with business functions.
3.
Assessment of impacts
As part of stakeholder engagement, the impacts identified were subject to the
assessment by internal and external stakeholders. Specifically, at this stage, senior
managers, employees, customers, suppliers, investors, lenders and expert financial
analysts, environmental and community representatives are selected on the basis
of their qualifications and relevance as stakeholders and asked to provide an
Sabaf Group | 2025 Report on Operations
41
assessment of each impact related to the topics for which they are responsible. The
assessment was carried out by observing the preliminary guidelines of the ESRS
Standards, i.e., by considering two main criteria:
i. likelihood, i.e., the frequency with which an impact may happen;
ii. severity, i.e, the seriousness of an impact should it happen. The
assessment of the severity also considered:
▪ the scale, i.e., how serious the impact is;
▪ the scope, i.e., how widespread the impact is;
▪ the irremediable character of the impact, i.e., how hard it is to
mitigate or compensate the resulting harm for negative impacts.
For each impact, stakeholders were invited to express, via a specific survey
accompanied by specific guidelines, a score from 1 to 5 relating to the above criteria
(likelihood and severity). The guidelines specified how to make an assessment of
likelihood and severity, including the three criteria mentioned above (scale, scope
and irremediable character). This assessment was conducted at an aggregate level,
as disaggregation was not deemed necessary for a proper understanding of the
material impacts. In understanding the context and defining the impacts, no
significant differences emerged in the business operations of the various Group
companies.
The assessment was conducted according to the gross principle, i.e. without
considering the mitigation measures that are in place, and took into account the
time horizon of the 2024-2026 Business Plan, a period considered adequate to
obtain assessments that are applicable to the Sabaf Group's strategic decisions.
4.
Drawing up the short list of material impacts and topics
The score obtained for each impact was analysed in order to obtain, starting from
the assessments of individual stakeholders, a score associated with each impact.
The topics were then sorted by score and finally included in the Short List of the
Sabaf Group's impacts and associated topics. In particular, impacts were
considered material when the average score from the assessment of stakeholders
was greater than 13 (the minimum limit of 13 was established as the average
between the maximum score, which was 25, and the minimum score, which was
1).
Financial Materiality Analysis
The Financial Materiality analysis was carried out with the following steps:
1.
Integration of the corporate risk model with potentially material risks and
opportunities related to sustainability matters
The corporate risk model used in the ERM (Enterprise Risk Management) process
was integrated with the risks and opportunities related to sustainability matters
identified by the ESRS (ref.
ESRS 1, RA. 16 - Sustainability matters to be included
Sabaf Group | 2025 Report on Operations
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in the materiality assessment
). In the identification of risks and opportunities,
consideration was given to:
▪ the context analysis conducted for identifying impacts, including all the
points detailed above;
▪ the impacts associated with sustainability matters found to be material for
the Group, in order to explore the interdependence between impact and
financial materiality;
▪ any topics previously raised during interviews with corporate functions for
the purpose of identifying impacts related to sustainability matters;
▪ the assessment of business operations and the value chain that had been
carried out during the Impact Materiality analysis;
▪ the time horizon of the 2024-2026 Business Plan, which was considered
adequate for obtaining assessments applicable to the Sabaf Group's strategic
decisions;
▪ the review of the risk assessment carried out in the previous year, to capture
the environmental, social and governance topics already identified as
significant in the company's risk model;
▪ the examination of the SWOT analysis conducted by the Sabaf Group for
the preparation of the 2024-2026 Business Plan.
2.
Assessment of risks and opportunities associated with sustainability
matters through the Enterprise Risk Assessment (ERM) process
Risks and opportunities were assessed during the annual risk assessment process,
in which the heads of business functions are required to make an assessment
following individual interviews. Risks and opportunities related to sustainability
matters were assessed according to the principle of inherence, prior to the adoption
of mitigation actions, using the same criteria and assessment scale already
established for the risk assessment process, i.e:
▪ the assessment of the likelihood on a scale of 1 to 4;
▪ the assessment of the impact on a scale of 1 to 4.
The assessment was conducted at the Group level, as disaggregation was not
deemed necessary for a proper understanding of risks and opportunities. In
understanding the context and defining the impacts, no significant differences
emerged in the business operations of the various Group companies.
3.
Identification of material risks and opportunities based on the
assessments obtained
For the identification of material risks and opportunities associated with
sustainability matters, the materiality threshold was based on an inherent risk rating
of 8 or higher - this threshold was identified on the basis of the assessments received
and the methodology adopted in the risk assessment process. Some risks that
received a sub-threshold assessment at the interview were subsequently integrated
into the material risks. This review was conducted by a team supervised by the
Sabaf Group | 2025 Report on Operations
43
CFO, in his capacity as Reporting Officer, with the involvement of the HSE manager
and in cooperation with the consulting firm.
On an annual basis, the ESG Reporting Team, supported by senior management, checks
whether internal or external events could affect the materiality assessment. In the absence
of substantial changes that could generate new IROs or change the materiality of existing
ones, the Sustainability Statement of subsequent years considers the results of the most
recent Double Materiality Assessment.
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[ESRS 2 IRO-2] Disclosure Requirements of ESRS covered by the Consolidated
Sustainability Statement
The
[ESRS 2 IRO-1] Description of the process to identify and assess material impacts,
risks and opportunities
section describes the process by which the Sabaf Group determines
the disclosures to be made in relation to impacts, risks and opportunities assessed as
material.
Below are the disclosure requirements the Group has fulfilled in preparing the
Sustainability Statement.
Disclosure requirement and related
datapoint
Page number
Notes
ESRS 2 General Disclosures
ESRS 2 BP-1 General basis for
preparation of the Consolidated
Sustainability Statement
15
ESRS 2 BP-2 Disclosure in relation to
specific circumstances
16
ESRS 2 GOV-1 The role of
administrative, management and
supervisory bodies
16-19
ESRS 2 GOV-2 Information provided to
and sustainability matters addressed by
the undertaking’s administrative,
management and supervisory bodies
19-20
ESRS 2 GOV-3 Integration of
sustainability-related performance in
incentive schemes
20-21
ESRS 2 GOV-4 Statement on due
diligence
21-24
ESRS 2 GOV-5 Risk management and
internal controls over the Consolidated
Sustainability Statement
24-25
ESRS 2 SBM-1 Strategy, business model
and value chain
26-30
ESRS 2 SBM-2 Interests and views of
stakeholders
30-31
ESRS 2 SBM-3 Material impacts, risks
and opportunities and their interaction
with strategy and business model
31-39
ESRS 2 IRO-1 Description of the process
to identify and assess material impacts,
risks and opportunities
39-43
ESRS 2 IRO-2 Disclosure Requirements
of ESRS covered by the Consolidated
Sustainability Statement
44-54
ESRS E1 Climate change
ESRS 2 GOV-3 E1 Integration of
sustainability-related performance in
incentive schemes
65
ESRS E1-1 Transition plan for climate
change mitigation
65-68
ESRS 2 SBM-3 E1 Material impacts, risks
and opportunities and their interaction
with strategy and business model
68-70
ESRS 2 IRO-1 E1Description of the
processes to identify and assess material
climate-related impacts, risks and
opportunities
70-73
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Disclosure requirement and related
datapoint
Page number
Notes
ESRS E1-2 Policies related to climate
change mitigation and adaptation
73-75
ESRS E1-3 Actions and resources in
relation to climate change policies
75-77
ESRS E1-4 Targets related to climate
change mitigation and adaptation
77-78
ESRS E1-5 Energy consumption and mix
78-79
ESRS E1-6 Gross Scopes 1, 2, 3 and Total
GHG emissions
79-83
ESRS E1-7 GHG removals and GHG
mitigation projects financed through
carbon credits
Non-material for the Sabaf Group
ESRS E1-8 Internal carbon pricing
Non-material for the Sabaf Group
ESRS E1-9 Anticipated financial effects
from material physical and transition
risks and potential climate-related
opportunities
The Sabaf Group used the option of
phase-in provisions
ESRS E2 Pollution
ESRS 2 IRO-1 E2 Description of the
processes to identify and assess material
pollution-related impacts, risks and
opportunities
84-85
ESRS E2-1 Policies related to pollution
85-86
ESRS E2-2 Actions and resources related
to pollution
86-87
ESRS E2-3 Targets related to pollution
87
ESRS E2-4 Pollution of air, water and soil
87
ESRS E2-5 Substances of concern and
substances of very high concern
88
ESRS E2-6 Anticipated financial effects
from material pollution-related, risks and
opportunities
The Sabaf Group used the option of
phase-in provisions
ESRS E3 Water
ESRS 2 IRO-1 E3 Description of
processes to identify and assess material
water-related impacts, risks and
opportunities
89
ESRS E3-1 Policies related to water
89-90
ESRS E3-2 Actions and resources related
to water
90-91
ESRS E3-3 Targets related to water
91
ESRS E3-4 Water consumption
91-92
ESRS E3-5 Anticipated financial effects
from material water and marine
resources-related impacts, risks and
opportunities
The Sabaf Group used the option of
phase-in provisions
ESRS E4 Biodiversity and ecosystems
ESRS E4-1 Transition plan and
consideration of biodiversity and
ecosystems in strategy and business
model
Non-material for the Sabaf Group
ESRS 2 SBM-3 E4 Material impacts, risks
and opportunities and their interaction
with strategy and business model
ESRS 2 IRO-1 E4 Description of
processes to identify and assess material
biodiversity and ecosystem-related
impacts, risks, dependencies and
opportunities
ESRS E4-2 Policies related to biodiversity
and ecosystems
ESRS E4-3 Actions and resources related
to biodiversity and ecosystems
Sabaf Group | 2025 Report on Operations
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Disclosure requirement and related
datapoint
Page number
Notes
ESRS E4-4 Targets related to biodiversity
and ecosystems
ESRS E4-5 Impact metrics related to
biodiversity and ecosystems change
ESRS E4-6 Anticipated financial effects
from biodiversity and ecosystem-related
risks and opportunities
ESRS E5 Resource use and circular economy
ESRS 2 IRO-1 E5 Description of
processes to identify and assess material
resource use and circular economy-
related impacts, risks and opportunities
93
ESRS E5-1 Policies related to resource
use and circular economy
93-94
ESRS E5-2 Actions and resources related
to resource use and the circular economy
94-95
ESRS E5-3 Targets related to resource
use and circular economy
95
ESRS E5-4 Resource inflows
96-97
ESRS E5-5 Resource outflows
97-98
ESRS E5-6 Anticipated financial effects
from resource use and circular economy-
related impacts, risks and opportunities
The Sabaf Group used the option of
phase-in provisions
ESRS S1 Own workforce
ESRS 2 SBM-2 S1 Interests and views of
stakeholders
30-31
ESRS 2 SBM-3 S1 Material impacts, risks
and opportunities and their interaction
with strategy and business model
99-100
ESRS S1-1 Policies related to own
workforce
100-103
ESRS S1-2 Processes for engaging with
own workforce and workers'
representatives about impacts
103
ESRS S1-3 Processes to remediate
negative impacts and channels for own
workforce to raise concerns
104
ESRS S1-4 Taking action on material
impacts on own workforce, and
approaches to managing material risks
and pursuing material opportunities
related to own workforce, and
effectiveness of those actions
104-106
ESRS S1-5 Targets related to managing
material negative impacts, advancing
positive impacts, and managing material
risks and opportunities
106
ESRS S1-6 Characteristics of employees
107-109
ESRS S1-7 Characteristics of non-
employees in own workforce
110
ESRS S1-8 Collective bargaining
coverage and social dialogue
110
ESRS S1-9 Diversity metrics
110-111
ESRS S1-10 Adequate wages
111
ESRS S1-11 Social protection
The Sabaf Group used the option of
phase-in provisions
ESRS S1-12 Persons with disabilities
Non-material for the Sabaf Group
ESRS S1-13 Training and skills
development metrics
112
ESRS S1-14 Health and safety metrics
113
ESRS S1-15 Work-life balance metrics
114
ESRS S1-16 Remuneration metrics (pay
gap and total remuneration)
114
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Disclosure requirement and related
datapoint
Page number
Notes
ESRS S1-17 Incidents, complaints and
severe human rights impacts
115
ESRS S2 Workers in the value chain
ESRS 2 SBM-2 S2 Interests and views of
stakeholders
116
ESRS 2 SBM-3 S2 Material impacts, risks
and opportunities and their interaction
with strategy and business model
116
ESRS S2-1 Policies related to value chain
workers
116-117
ESRS S2-2 - Processes for engaging with
value chain workers about impacts
118
ESRS S2-3 Processes to remediate
negative impacts and channels for value
chain workers to raise concerns
118
ESRS S2-4 Taking action on material
impacts on value chain workers, and
approaches to managing material risks
and pursuing material opportunities
related to value chain workers, and
effectiveness of those actions
118-119
ESRS S2-5 Targets related to managing
material negative impacts, advancing
positive impacts, and managing material
risks and opportunities
119
ESRS S3 Affected communities
ESRS 2 SBM-2 S3 Interests and views of
stakeholders
30-31
ESRS 2 SBM-3 S3 Material impacts, risks
and opportunities and their interaction
with strategy and business model
120
ESRS 2 S3-1 Policies related to affected
communities
120-121
ESRS S3-2 Processes for engaging with
affected communities about impacts
121
ESRS S3-3 Processes to remediate
negative impacts and channels for own
workers to raise concerns
Non-material for the Sabaf Group
ESRS S3-4 Taking action on material
impacts on affected communities, and
approaches to managing material risks
and pursuing material opportunities
related to affected communities, and
effectiveness of those actions
121-122
ESRS S3-5 Targets related to managing
material negative impacts, advancing
positive impacts, and managing material
risks and opportunities
122
ESRS S4 Consumers and end-users
ESRS 2 SBM-2 S4 Interests and views of
stakeholders
30-31
ESRS 2 SBM-3 S4 Material impacts, risks
and opportunities and their interaction
with strategy and business model
123
ESRS S4-1 Policies related to consumers
and end-users
123-124
ESRS S4-2Processes for engaging with
consumers and end-users about impacts
124
ESRS S4-3 Processes to remediate
negative impacts and channels for
consumers and end-users to raise
concerns
124
ESRS S4-4 Taking action on material
impacts on consumers and end-users,
and approaches to managing material
124-125
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Disclosure requirement and related
datapoint
Page number
Notes
risks and pursuing material opportunities
related to consumers and end- users, and
effectiveness of those actions
ESRS S4-5 Targets related to managing
material negative impacts, advancing
positive impacts, and managing material
risks and opportunities
125
ESRS G1 Business conduct
ESRS 2 GOV-1 G1 The role of the
administrative, management and
supervisory bodies
126
ESRS 2 IRO-1 G1 Description of the
process to identify and assess material
impacts, risks and opportunities
126
ESRS G1-1 Business conduct policies and
corporate culture
127-129
ESRS G1-2 Management of relationships
with suppliers
129
ESRS G1-3 Prevention and detection of
corruption or bribery
129-130
ESRS G1-4 Incidents of corruption or
bribery
131
ESRS G1-5 Political influence and
lobbying activities
Non-material for the Sabaf Group
ESRS G1-6 Payment practices
131
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Below are the information elements from other EU legislation listed in Appendix B of ESRS
2.
Disclosure requirement and related
datapoint
Obligations from other EU
legislation
11;12;13;14
Page number
ESRS 2 - General disclosures
ESRS 2 GOV-1 Board's gender diversity
paragraph 21(d)
SFDR: Annex I, Table 1, Indicator No. 13
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816
(5), Annex II
17
ESRS 2 GOV-1 Percentage of board
members who are independent,
paragraph 21(e)
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816,
Annex II
17
ESRS 2 GOV-4 Statement on due
diligence, paragraph 30
SFDR: Annex I, Table 3, Indicator No. 10
21-24
ESRS 2 SBM-1 Involvement in activities
related to fossil fuel activities, paragraph
40(d)(i)
SFDR: Annex I, Table 1, Indicator No. 4
Pillar 3: Article 449a of Regulation (EU)
No. 575/2013; Commission
Implementing Regulation (EU)
2022/2453 (6), Table 1 - Qualitative
Information on Environmental Risk and
Table 2 - Qualitative Information on
Social Risk.
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816,
Annex II
26-30
ESRS 2 SBM-1 Involvement in activities
related to chemical production,
paragraph 40(d)(ii)
SFDR: Annex I, Table 2, Indicator No. 9
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816,
Annex II
26-30
ESRS 2 SBM-1 Involvement in activities
related to controversial weapons,
paragraph 40(d)(iii)
SFDR: Annex I, Table 1, Indicator No. 14
Benchmark Regulation: Article 12(1) of
Delegated Regulation (EU) 2020/1818 (7)
and Annex II of Delegated Regulation
(EU) 2020/1816
26-30
11
SFDR: Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on
sustainability related disclosures in the financial services sector (Sustainable Finance Disclosures Regulation) (OJ L 317,
9.12.2019, p. 1).
12
Pillar 3: Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential
requirements for credit institutions and amending Regulation (EU) No 648/2012 (Capital Requirements Regulation) (OJ
L 176, 27.6.2013, p. 1).
13
Benchmark Regulation: Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on
indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment
funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016,
p. 1).
14
EU Climate Regulation: Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021
establishing the framework for achieving climate neutrality and amending Regulation (EC) No 401/2009 and Regulation
(EU) 2018/1999 ("European Climate Law") (OJ L 243, 9.7.2021, p. 1).
Sabaf Group | 2025 Report on Operations
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Disclosure requirement and related
datapoint
Obligations from other EU
legislation
11;12;13;14
Page number
ESRS 2 SBM-1 Involvement in activities
related to cultivation and production of
tobacco, paragraph 40(d)(iv)
Benchmark Regulation: Article 12(1) of
Delegated Regulation (EU) 2020/1818
and Annex II of Delegated Regulation
(EU) 2020/1816
26-30
ESRS E1 Climate change
ESRS E1-1 Transition plan to reach
climate neutrality by 2050, paragraph 14
EU climate law: Article 2(1) of
Regulation (EU) 2021/1119
65-68
ESRS E1-1 Undertakings excluded
from Paris-aligned Benchmarks,
paragraph 16(g)
Pillar 3: Article 449a of Regulation (EU)
No 575/2013; Commission Implementing
Regulation (EU) 2022/2453, Model 1:
Banking portfolio - Indicators of potential
transition risk related to climate change:
Credit quality of exposures by sector,
issuance and residual maturity
Benchmark Regulation: Article 12(1)(d)
to (g) and (2) of Delegated Regulation
(EU) 2020/1818
67
ESRS E1-4 GHG emission reduction
targets, paragraph 34
SFDR: Annex I, Table 2, Indicator No. 4
Pillar 3: Article 449a of Regulation (EU)
No 575/2013; Commission Implementing
Regulation (EU) 2022/2453, Model 3:
Banking portfolio - Indicators of potential
climate change-related transition risk:
alignment metrics
Benchmark Regulation: Article 6 of
Delegated Regulation (EU) 2020/1818
77-78
ESRS E1-5 Energy consumption from
fossil sources disaggregated by sources
(only high climate impact sectors),
paragraph 38
SFDR: Annex I, Table 1, Indicator No. 5
and Annex I, Table 2, Indicator No. 5
78-79
ESRS E1-5 Energy consumption and mix,
paragraph 37
SFDR: Annex I, Table 1, Indicator No. 5
78-79
ESRS E1-5 Energy intensity associated
with activities in high climate impact
sectors, paragraphs 40 to 43
SFDR: Annex I, Table 1, Indicator No. 6
79
ESRS E1-6 Gross Scopes 1, 2, 3 and total
GHG emissions, paragraph 44
SFDR: Annex I, Table 1, Indicators 1 and
2
Pillar 3: Article 449a of Regulation (EU)
No 575/2013; Commission Implementing
Regulation (EU) 2022/2453, Model 1:
Banking portfolio - Indicators of potential
transition risk related to climate change:
Credit quality of exposures by sector,
issuance and residual maturity
Benchmark Regulation: Articles 5(1), 6
and 8(1) of Delegated Regulation (EU)
2020/1818
79-83
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Disclosure requirement and related
datapoint
Obligations from other EU
legislation
11;12;13;14
Page number
ESRS E1-6 Gross GHG emissions
intensity, paragraphs 53 to 55
SFDR: Annex I, Table 1, Indicator No. 3
Pillar 3: Article 449a of Regulation (EU)
No 575/2013; Commission Implementing
Regulation (EU) 2022/2453, Model 3:
Banking portfolio - Indicators of potential
climate change-related transition risk:
alignment metrics
Benchmark Regulation: Article 8(1) of
Delegated Regulation (EU) 2020/1818
79-83
ESRS E1-7 GHG removals and carbon
credits, paragraph 56
EU climate law: Article 2(1) of
Regulation (EU) 2021/1119
Non-material for the Sabaf Group
ESRS E1-9 Exposure of the benchmark
portfolio to climate-related physical risks,
paragraph 66
Benchmark Regulation: Annex II of
Delegated Regulation (EU) 2020/1818
and Annex II of Delegated Regulation
(EU) 2020/1816
The Sabaf Group used the option of
phase-in provisions
ESRS E1-9 Disaggregation of monetary
amounts by acute and chronic physical
risk, paragraph 66(a)
ESRS E1-9 Location of significant assets
at material physical risk, paragraph 66(c)
Pillar 3: Article 449a of Regulation (EU)
No 575/2013; points 46 and 47 of
Commission Implementing Regulation
(EU) 2022/2453; Model 5: Banking
portfolio - Indicators of potential physical
risk related to climate change: exposures
subject to physical risk
ESRS E1-9 Breakdown of the carrying
value of its real estate assets by energy-
efficiency classes, paragraph 67(c)
Pillar 3: Article 449a of Regulation (EU)
No 575/2013; point 34 of the
Implementing Regulation
(EU) 2022/2453 of the Commission;
Model 2: Banking portfolio - Indicators of
potential climate change-related
transition risk: loans secured by real
estate - Energy efficiency of collateral
ESRS E1-9 Degree of exposure of the
portfolio to climate- related
opportunities, paragraph 69
Pillar 3: Annex II of Delegated
Regulation 2020/1818
ESRS E2 Pollution
ESRS E2-4 Amount of each pollutant
listed in Annex II of E-PRTR (European
Pollutant Release and Transfer Register)
emitted to air, water and land, paragraph
28
SFDR: Annex I, Table 1, indicator No 8;
Annex I, Table 2, indicator No 2; Annex
1, Table 2, indicator No 1; Annex I, Table
2, indicator No 3
87
ESRS E3 Water and marine resources
ESRS E3-1 Water and marine resources,
paragraph 9
SFDR: Annex I, Table 2, Indicator No. 7
89-90
ESRS E3-1 Dedicated policy, paragraph
13
SFDR: Annex I, Table 2, Indicator No. 8
89-90
ESRS E3-1 Sustainable oceans and seas,
paragraph 14
SFDR: Annex I, Table 2, Indicator No. 12
Non-material for the Sabaf Group
ESRS E3-4 Total water recycled and
reused, paragraph 28(c)
SFDR: Annex I, Table 2, Indicator No.
6.2
91-92
ESRS E3-4 Total water consumption in
m
3
per net revenue on own operations,
paragraph 29
SFDR: Annex I, Table 2, Indicator No.
6.1
92
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Disclosure requirement and related
datapoint
Obligations from other EU
legislation
11;12;13;14
Page number
ESRS E4 Biodiversity and ecosystems
ESRS 2 SBM-3 E4 paragraph 16(a)(i)
SFDR: Annex I, Table 1, Indicator No. 7
Non-material for the Sabaf Group
ESRS 2 SBM-3 E4 paragraph 16(b)
SFDR: Annex I, Table 2, Indicator No. 10
ESRS 2 SBM-3 E4 paragraph 16(c)
SFDR: Annex I, Table 2, Indicator No. 14
ESRS E4-2 Sustainable land/agriculture
practices or policies, paragraph 24(b)
SFDR: Annex I, Table 2, Indicator No. 11
ESRS E4-2 Sustainable oceans/seas
practices or policies, paragraph 24(c)
SFDR: Annex I, Table 2, Indicator No. 12
ESRS E4-2 Policies to address
deforestation, paragraph 24(d)
SFDR: Annex I, Table 2, Indicator No. 15
ESRS E5 Resource use and circular economy
ESRS E5-5 Non-recycled waste,
paragraph 37(d)
SFDR: Annex I, Table 2, Indicator No. 13
98
ESRS E5-5 Hazardous waste and
radioactive waste, paragraph 39
SFDR: Annex I, Table 1, Indicator No. 9
98
ESRS S1 Own workforce
ESRS 2 SBM-3 S1 Risk of incidents of
forced labour, paragraph 14(f)
SFDR: Annex I, Table 3, Indicator No. 13
99-100
ESRS 2 SBM-3 S1 Risk of incidents of
child labour, paragraph 14(g)
SFDR: Annex I, Table 3, Indicator No. 12
99-100
ESRS S1-1 Human rights policy
commitments, paragraph 20
SFDR: Annex I, Table 3, Indicator No 9
and Annex I, Table 1, Indicator No 11
100-103
ESRS S1-1 Due diligence policies on
issues addressed by the fundamental
International Labour Organisation
Conventions 1 to 8, paragraph 21
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816,
Annex II
100-103
ESRS S1-1 Processes and measures for
preventing trafficking in human beings,
paragraph 22
SFDR: Annex I, Table 3, Indicator No. 11
100-103
ESRS S1-1 Workplace accident
prevention policy or management
system, paragraph 23
SFDR: Annex I, Table 3, Indicator No. 1
100-103
ESRS S1-3 Grievance/complaints
handling mechanisms, paragraph 32(c)
SFDR: Annex I, Table 3, Indicator No. 5
104
ESRS S1-14 Number of fatalities and
number and rate of work-related
accidents, paragraph 88 (b) and (c)
SFDR: Annex I, Table 3, Indicator No. 2
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816,
Annex II
113
ESRS S1-14 Number of days lost due to
injuries, accidents, fatalities or illness,
paragraph 88 (e)
SFDR: Annex I, Table 3, Indicator No. 3
113
ESRS S1-16 Unadjusted gender pay gap,
paragraph 97(a)
SFDR: Annex I, Table 1, Indicator No. 12
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816,
Annex II
114
ESRS S1-16 Excessive CEO pay ratio,
paragraph 97(b)
SFDR: Annex I, Table 3, Indicator No. 8
114
ESRS S1-17 Incidents of discrimination,
paragraph 103(a)
SFDR: Annex I, Table 3, Indicator No. 7
115
Sabaf Group | 2025 Report on Operations
53
Disclosure requirement and related
datapoint
Obligations from other EU
legislation
11;12;13;14
Page number
ESRS S1-17 Non-respect of UNGPs on
Business and Human Rights and OECD
guidelines, paragraph 104(a)
SFDR: Annex I, Table 1, Indicator No 10
and Annex I, Table 3, Indicator No 14
Benchmark Regulation: Annex II of
Delegated Regulation (EU) 2020/1816
and Article 12(1) of Delegated Regulation
(EU) 2020/1818
115
ESRS S2 Workers in the value chain
ESRS 2 SBM-3 S2 Significant risk of child
labour or forced labour in the value
chain, paragraph 11(b)
SFDR: Annex I, Table 3, Indicators Nos.
12 and 13
116
ESRS S2-1 Human rights policy
commitments, paragraph 17
SFDR: Annex I, Table 3, Indicator No 9
and Annex I, Table 1, Indicator No 11
116-117
ESRS S2-1 Policies related to value chain
workers, paragraph 18
SFDR: Annex I, Table 3, Indicators Nos.
11 and 4
116-117
ESRS S2-1 Non-respect of UNGPs on
Business and Human Rights principles
and OECD guidelines, paragraph 19
SFDR: Annex I, Table 1, Indicator No. 10
Benchmark Regulation: Annex II of
Delegated Regulation (EU) 2020/1816
and Article 12(12)
1, of Delegated Regulation (EU)
2020/1818
116-117
ESRS S2-1 Due diligence policies on
issues addressed by the fundamental
International Labour Organisation
Conventions 1 to 8, paragraph 19
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816,
Annex II
116-117
ESRS S2-4 Human rights issues and
incidents connected to its upstream and
downstream value chain, paragraph 36
SFDR: Annex I, Table 3, Indicator No. 14
118-119
ESRS S3 Affected communities
ESRS S3-1 Human rights policy
commitments, paragraph 16
SFDR: Annex I, Table 3, Indicator No 9
and Annex I, Table 1, Indicator No 11
120-121
ESRS S3-1 Non-respect of UNGPs on
Business and Human Rights, ILO
principles or OECD guidelines, paragraph
17
SFDR: Annex I, Table 1, Indicator No. 10
Benchmark Regulation: Annex II of
Delegated Regulation (EU) 2020/1816
and Article 12(1) of Delegated Regulation
(EU) 2020/1818
120-121
ESRS S3-4 Human Rights issues and
incidents, paragraph 36
SFDR: Annex I, Table 3, Indicator No. 14
121-122
ESRS S4 Consumers and end-users
ESRS S4-1 Policies related to consumers
and end-users, paragraph 16
SFDR: Annex I, Table 3, Indicator No 9
and Annex I, Table 1, Indicator No 11
123-124
ESRS S4-1 Non-respect of UNGPs on
Business and Human Rights and OECD
guidelines, paragraph 17
SFDR: Annex I, Table 1, Indicator No. 10
Benchmark Regulation: Annex II of
Delegated Regulation (EU) 2020/1816
and Article 12(1) of Delegated Regulation
(EU) 2020/1818
123-124
ESRS S4-4 Human Rights issues and
incidents, paragraph 35
SFDR: Annex I, Table 3, Indicator No. 14
124-125
ESRS G1 Business conduct
ESRS G1-1 United Nations Convention
against corruption, paragraph 10(b)
SFDR: Annex I, Table 3, Indicator No. 15
127-129
ESRS G1-1 Protection of whistleblowers,
paragraph 10(d)
SFDR: Annex I, Table 3, Indicator No. 6
127-129
Sabaf Group | 2025 Report on Operations
54
Disclosure requirement and related
datapoint
Obligations from other EU
legislation
11;12;13;14
Page number
ESRS G1-4 Fines for violations of anti-
corruption and anti-bribery laws,
paragraph 24(a)
SFDR: Annex I, Table 3, Indicator No. 17
Benchmark Regulation: Annex II of
Delegated Regulation 2020/1816
131
ESRS G1-4 Standards of anti-corruption
and anti-bribery, paragraph 24(b)
SFDR: Annex I, Table 3, Indicator No. 16
131
Sabaf Group | 2025 Report on Operations
55
E - Information on environmental aspects
Disclosure pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy
Regulation)
Regulation (EU) 2020/852 (“EU Taxonomy”) is part of the European Union's initiatives in
favour of sustainable finance and aims to provide investors and the market with a
framework of sustainability metrics. The EU Taxonomy focuses on the identification of
environmentally sustainable economic activities, defined as those economic activities that
make a substantial contribution to at least one of the EU’s climate and environmental
objectives, while at the same time not significantly harming any of these objectives and
meeting minimum safeguards. In particular, the aim of the EU Taxonomy is to steer
investments towards sustainable solutions, also in order to pursue the provisions of the
European Green Deal, by identifying six environmental and climate objectives:
1. Climate change mitigation;
2. Climate change adaptation;
3. Sustainable use and protection of water and marine resources;
4. Transition to a circular economy;
5. Pollution prevention and control;
6. Protection and restoration of biodiversity and ecosystems.
To achieve these objectives, the European Union has identified specific economic
activities and defined their environmental sustainability criteria, through Delegated
Regulation 2021/2139 (covering the first two objectives) and Delegated Regulation
2023/2486 (covering the remaining four objectives).
According to the Taxonomy Regulation, the Group must publish: (i) the proportion of their
turnover derived from products or services associated with economic activities that qualify
as environmentally sustainable under the Taxonomy and the (ii) the proportion of capital
expenditure and the proportion of operational expenditure related to asses or processes
associated with economic activities that qualify as environmentally sustainable under the
Taxonomy. These indicators must be reported for both "Taxonomy-eligible” economic
activities, i.e., "eligible" activities that could potentially contribute to the achievement of
environmental objectives, and "Taxonomy-aligned" economic activities, i.e., the activities
"aligned" to the Taxonomy, which actually contribute to the achievement of taxonomy
objectives. As described in Delegated Regulation (EU) 2021/2178, an economic activity is
Taxonomy-aligned if it complies with the requirements laid down in Article 3 of Regulation
2020/852, i.e., if it gives a substantial contribution to at least one of the above-mentioned
climate and environmental objectives in accordance with the technical screening criteria
set by the Commission, while at the same time does not significantly harm the remaining
objectives and it meets minimum safeguards.
In 2025, the European Commission launched a simplification process in key areas of
sustainability legislation, including the EU Taxonomy, with the aim of streamlining the
regulatory framework, reducing the reporting burden on businesses and financial
intermediaries, whilst ensuring the transparency and reliability of the environmental
information provided to the market. In this context, Delegated Regulation (EU) 2026/73
was published in the Official Journal of the European Union on 8 January 2026. Among
Sabaf Group | 2025 Report on Operations
56
other measures, the Regulation introduces a materiality threshold for the disclosure of key
performance indicators (KPIs) under the EU Taxonomy and simplifies the reporting
templates.
In accordance with Article 4 of Delegated Regulation (EU) 2026/73, the provisions
contained therein shall apply from 1 January 2026 in respect of the 2025 financial year,
with companies having the option to defer the adoption of the regulatory updates until the
2026 financial year. The Sabaf Group has decided not to defer the adoption of the
amendments; consequently, this policy has been drawn up in accordance with the
Regulation applicable from 1 January 2026.
Eligible activities
In accordance with the Taxonomy Regulation, an analysis of the Group's activities was
conducted to identify those that were eligible and aligned with the six objectives of the
Taxonomy. The eligibility and alignment assessment covered the activities relating to the
six environmental objectives set out in the Delegated Acts on Climate and the
Environment (the Climate Delegated Act and the Environmental Delegated Act).
Based on the consultation of the Delegated Acts, Sabaf identified as potentially eligible
activity “3.5. Manufacture of energy efficiency equipment for buildings”. Indeed, Sabaf
manufactures “key components” of household appliances that fall within the scope of the
above-mentioned activity of the climate change mitigation and adaptation objectives.
However, after further investigations into the relevant technical screening criteria and
based on the decision to adopt a prudential approach, the Group opted not to consider this
activity as “Taxonomy eligible”. The criteria set out in the Delegated Acts allow for
alignment (or eligibility, in the case of the adaptation objective) if the key components are
installed on appliances that fall into the two highest energy efficiency classes, in
accordance with Regulation (EU) 2017/1369 of the European Parliament and of the
Council. However, to date, energy labelling is not applicable for certain categories of
household appliances (such as gas hobs), nor can the Group obtain information on the
energy class of the appliances for which its components are intended.
Sabaf also assessed whether the sale of electronic control boards could be included under
activity “1.2 Manufacture of electrical and electronic equipment" as part of the objective
of transition to a circular economy, but concluded that this activity was not eligible as the
substantial contribution criteria are not applicable.
Based on possible regulatory developments and clarifications to the Regulation, Sabaf
reserves the right to review this analysis in the coming years. The non-identification or
reduced identification of turnover derived from "eligible" economic activities is not an
indicator of an undertaking's environmental performance, as also confirmed by the
Platform on Sustainable Finance, a body established under Article 20 of Regulation (EU)
2020/852 with advisory and support functions in favour of the European Commission on
Taxonomy
15
.
15
In the document Platform considerations on voluntary information as part of Taxonomy-eligibility
reporting presented as an annex to the European Commission's FAQs published in December 2021 it is
stated that "Eligibility is not an indicator of environmental performance; it is an indicator that an activity is
in scope for testing and has the potential to be Taxonomy-aligned".
Sabaf Group | 2025 Report on Operations
57
The Sabaf Group will continue to monitor the evolution of energy labelling and European
taxonomy regulations, as the publication of further regulations that are specific to its
business may allow it to enhance its contribution in the future.
The Group has identified a number of projects that contribute to the energy transition and
towards a circular economy, identifying the activities as outlined in the following sections.
Eligible economic activities for the 2025 financial year are outlined below.
Economic activities
Target
Description
Associated KPI
4.1. Electricity generation
using solar photovoltaic
technology
Climate change mitigation
There is a photovoltaic
plant in operation at the
company C.M.I. s.r.l.
Turnover
7.2. Renovation of existing
buildings
Climate change mitigation
Restructuring activities
conducted at the company
A.R.C. s.r.l. and Sabaf
Turkey
CapEx
3.2 Renovation of existing
buildings
Circular economy
Restructuring activities
conducted at the company
A.R.C. s.r.l. And Sabaf
Turkey
CapEx
7.4. Installation,
maintenance and repair of
charging stations for
electric vehicles in
buildings (and parking
spaces attached to
buildings)
Climate change mitigation
Installation of charging
stations for electric
vehicles at the production
plant of Sabaf S.p.A.
CapEx
7.6. Installation,
maintenance and repair of
renewable energy
technologies
Climate change mitigation
Installation of a
photovoltaic system at the
production plant of Sabaf
S.p.A.
CapEx
2.2. Production of
alternative water
resources for purposes
other than human
consumption
Circular economy
Maintenance of rainwater
and stormwater collection
and treatment facilities at
the Sabaf S.p.A. factory.
OpEx
For the activities listed in the table, Sabaf assessed compliance with the criteria in Article
3 of Regulation (EU) 2020/852 and the associated technical screening criteria in the
Delegated Regulations, concluding that activities 4.1, 7.2, 3.2 and 2.2 are only eligible for
the year 2025, since DNSH criteria are not met for the first activity and for the others the
substantial contribution criteria are not met.
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58
Aligned activities
Below are the aligned economic activities for the 2025 financial year.
Economic activities
Target
Description
Associated KPI
7.4. Installation,
maintenance and repair of
charging stations for
electric vehicles in
buildings (and parking
spaces attached to
buildings)
Climate change mitigation
Installation of charging
stations for electric
vehicles at the production
plant of Sabaf S.p.A.
CapEx
7.6. Installation,
maintenance and repair of
renewable energy
technologies
Climate change mitigation
Installation of a
photovoltaic system at the
production plant of Sabaf
S.p.A.
CapEx
For the above activities, Sabaf assessed compliance with the criteria set out in Article 3 of
Regulation (EU) 2020/852 and the associated substantial contribution criteria set out in
the Delegated Regulations, as well as compliance with the DNSH ('Do No Significant
Harm') criteria and the Minimum Safeguards. The assessment led to these activities being
identified as aligned, as explained in the following paragraphs.
Substantial contribution of aligned activities
The analysis conducted on the Company's specific circumstances concluded that
economic activities 7.4 and 7.6 contribute substantially to climate change mitigation.
Specifically:
▪ Activity 7.4. consists of the installation of recharging stations for electric vehicles,
thus encouraging the use of suitable means of transport for the climate transition.
Electric vehicles emit less GHG compared to internal combustion vehicles, as well
as being more efficient in terms of energy consumption. Furthermore, charging
infrastructure can be supplemented with renewable energy sources, further
reducing emissions associated with transport.
▪ Activity 7.6 relates to the installation of a photovoltaic system at the Sabaf S.p.A.
plant. This system will enable the electricity generation using solar photovoltaic
technology, contributing substantially to the objective of climate change mitigation.
Analysis of DNSH criteria
Economic activities 7.4. and 7.6. can be considered to be aligned with the Taxonomy and
consequently contribute to the mitigation target as long as the DNSH criteria for the
remaining taxonomic targets are met, as stated within the Regulation. The DNSH criteria
associated with these activities specifically only require compliance with the criteria set
out in Appendix A of the Commission's Delegated Regulation (EU) 2021/2139, in order to
ensure the absence of significant impact hindering the climate change adaptation
objective.
The criteria in Appendix A are met by the climate risk analysis that the Sabaf Group
conducted during 2024, as explained in
ESRS E1 Climate Change
of this document.
Sabaf Group | 2025 Report on Operations
59
Specifically, the risks were identified from those listed in the table in Section II of Appendix
A and were subjected to a rigorous assessment in accordance with the procedure outlined
in the Delegated Regulations. For more information on the analysis that was conducted,
please refer to sections
[E1 SBM-3] Material impacts, risks and opportunities and their
interaction with strategy and business model
and
[E1 IRO-1] Description of the process to
identify and assess material climate-related impacts, risks and opportunities
.
Analysis of minimum safeguards
Article 18 of the EU Taxonomy Regulation describes minimum safeguards as procedures
implemented by a company to ensure that its business activities are conducted in
accordance with internationally recognised principles set out in the OECD Guidelines for
multinational enterprises on responsible business conduct and the United Nations Guiding
Principles (UNGPs) on Business and Human Rights. In the analysis, consideration was also
given to the guidelines identified by the Platform on Sustainable Finance in the Final
Report on Minimum Safeguards, published in October 2022. Details of the Sabaf Group's
minimum safeguards are outlined below. Aligned activities are carried out directly by Sabaf
S.p.A., as measures to contribute to the energy transition of the company itself. The Group
therefore
verified compliance with the DNSH and MSS requirements for Sabaf S.p.A. alone,
as required by the Regulation.
▪ Human rights, including workers' rights. The Sabaf Group has formalised its
commitment to the protection and promotion of human rights in its policies and
codes of conduct. Commitments to human rights are set out in the Group Charter
of Values, as well as in the Social Policy. These commitments are also shared with
the Group's value chain through the dissemination and signing by suppliers of the
Sustainable Procurement Policy, which requires respect for human rights and
minimum standards on social responsibility and working conditions. The
aforementioned policies provide for specific enforcement, verification and
monitoring mechanisms, as detailed in sections
[S1-1] Policies related to own
workforce
and
[S2-1] Policies related to value chain workers
of this document.
▪ Taxation. The Sabaf Group, in line with the principles defined in the Charter of
Values, acts according to the values of honesty, moral integrity, transparency and
fairness also in the management of its tax activity. The Group also believes that
the contribution from taxes paid is an important channel through which it can
participate in the economic and social development of the countries in which it
operates. For this reason, the Sabaf Group pays attention to the compliance with
tax regulations and acts responsibly in the jurisdictions in which it is present.
Acting responsibly in terms of tax is also seen as conduct oriented towards the
protection of the company's assets and the creation of value in the medium-long
term. The Administration and Finance Department of Sabaf S.p.A. is responsible
for the management of tax matters, and also exercises a supervisory, guiding and
coordinating function with regard to intercompany relations. Tax risks are
analysed and managed in accordance with the company's overall Enterprise Risk
Management model.
▪ Fair competition. In line with the principles of honesty, moral integrity,
transparency and fairness defined in the Charter of Values, Sabaf’s corporate
Sabaf Group | 2025 Report on Operations
60
values include the promotion of fair competition practices, to the benefit of
competitors, market operators, customers and all stakeholders involved.
▪ Anti-corruption and anti-bribery. Sabaf manages and prevents corruption
through the adoption of formalised procedures and commitments within its Anti-
Corruption Policy. The Policy reiterates the recipients' obligation to comply with
the provisions of the Organisational, Management and Control Models adopted
pursuant to Legislative Decree No. 231/2001, as well as the procedures and
internal rules established by each Group company. The provisions and guidelines
contained in the Policy - which were developed starting from an analysis of at risk
activities - promote the highest ethical standards in all business dealings, in order
to conduct business with loyalty, fairness, transparency, honesty and integrity,
and provide specific rules to prevent, identify and manage corruption risks. More
information on the Anti-Corruption Policy can be found under
[G1-1] Business
conduct policies and corporate culture.
▪ Convictions. The Sabaf Group has not had any final convictions for unfair
competition practices, tax offences, corruption or bribery, nor has it been involved
in human rights or labour rights violations. In addition, there were no questions
from the Business and Human Rights Resource Centre (BHRRC) and no cases
dealt with by the OECD National Contact Point (NCP).
In the FAQs published in June 2023, the European Commission identified a connection
between Minimum Safeguards in the Taxonomy and the Do No Significant Harm (DNSH)
principle of the SFDR (Sustainable Financial Disclosure Regulation). This connection
implies compliance with the Principal Adverse Impact (PAI) indicators regarding social
and employee matters, respect for human rights, anti-corruption and anti-bribery matters.
This introduces the possibility of adding specific indicators to the Minimum Safeguards.
These include: the gender pay gap, for which please refer to section
[S1-16] Remuneration
metrics (pay gap and total remuneration)
; the board gender diversity, for which please
refer to section
[ESRS 2 GOV-1] The role of the administrative, management and
supervisory bodies
; and exposure to controversial weapons (anti-personnel mines, cluster
munitions, chemical and biological weapons), a sector in which Sabaf confirms it has no
involvement.
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61
Template 1 — Proportion of turnover, capital expenditure (CapEx) and operational expenditure (OpEx) from products or services associated
with Taxonomy-eligible or Taxonomy-aligned economic activities – Disclosure covering year 2025 (Summary KPIs)
Financial year
2025
KPI
Total
Proportion
of
Taxonomy-
eligible
activities
Taxonomy-
aligned
activities
Proportion
of
Taxonomy-
aligned
activities
Breakdown by environmental
objectives of Taxonomy-aligned
activities
Proportion
of enabling
activities
Proportion
of
transitional
activities
Not
assessed
activities
considered
non-
material
Taxonomy-
aligned
activities in
previous
financial
year
2024
Proportion
of
Taxonomy-
aligned
activities in
previous
financial
year
2024
Climate change
mitigation
Climate change
adaptation
Water
Circular economy
Pollution
Biodiversity
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
Text
€/000
%
€/000
%
%
%
%
%
%
%
%
%
%
€/000
%
Turnover
288,658
0.0%
0
0.0%
0.03%
0
0.0%
CapEx
19,956
14.3%
2,179
10.9%
10.9%
0.0%
0.0%
0.0%
0.0%
0.0%
10.9%
0.0%
0.00%
263
1.6%
OpEx
8,483
0.0%
0
0.0%
0.01%
0
0.0%
Sabaf Group | 2025 Report on Operations
62
Template 2 — Proportion of capital expenditure (CapEx) from products or services associated with Taxonomy-eligible or Taxonomy-aligned
economic activities – Disclosure covering year 2025 (activity breakdown)
Reported KPI
CapEx
Financial year
2025
Economic activities
Code
Taxonomy-
eligible KPI
(Proportion of
Taxonomy-
eligible CapEx)
Taxonomy-
aligned KPI
(monetary value
of CapEx)
Taxonomy-
aligned KPI
(Proportion of
Taxonomy-
aligned CapEx)
Environmental objective of
Taxonomy -aligned activities
Enabling
activity
Transitional
activity
Proportion of
Taxonomy-
aligned in
Taxonomy-
eligible
Climate change
mitigation
Climate change adaptation
Water
Circular economy
Pollution
Biodiversity
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
Text
%
€/000
%
%
%
%
%
%
%
("E" where
applicable)
("T" where
applicable)
%
Renovation of existing buildings
CCM
7.2/CE
3.2
3.4%
0
0.0%
0%
Installation, maintenance and repair
of charging stations for electric
vehicles in buildings (and parking
spaces attached to buildings)
CCM 7.4
0.1%
17
0.1%
0.1%
E
100%
Installation, maintenance and repair
of renewable energy technologies
CCM 7.6
10.8%
2,162
10.8%
10.8%
E
100%
Sum of alignment per objective
10.9%
Total KPI (CapEx)
14.3%
2,179
10.9%
10.9%
10.9%
0.0%
76%
Sabaf Group | 2025 Report on Operations
63
European Taxonomy: methodological note
Under the Taxonomy, the Group's Taxonomy-aligned and/or Taxonomy-eligible
economic activities must be presented through three key performance indicators (“KPIs”)
in accordance with the specifications set forth in Article 8 of the Taxonomy Regulation:
▪ Turnover;
▪ Capital expenditure (“CapEx”);
▪ Operational expenditure (“OpEx”).
In preparing the consolidated financial statements, the Group applies the International
Financial Reporting Standards (IFRS) adopted by Regulation (EC) No. 1126/2008. The
portion of turnover deemed eligible derives from net revenues obtained from products or
services associated with economic activities eligible for the Taxonomy. Capital
expenditures incurred by the Group attributed to eligible, environmentally sustainable
economic activities include capitalised costs as defined in section 1.1.2. of Annex I to
Delegated Regulation (EU) 2021/2178, while the share of operational expenditure is
calculated as defined in point 1.1.3.2 of Annex I to Delegated Regulation (EU) 2021/2178.
Revenue
The denominator of the KPI, amounting to €288,658 thousand, consists of the Group's
total net turnover as per the 2025 consolidated income statement and in accordance with
IAS 1.82 (a): reference should be made to the consolidated financial statements included
in the Group's annual report for more additional information.
The numerator of the KPI, amounting to €79,000, consists of the eligible revenue in
accordance with the criteria set out in the Taxonomy, specifically relating to activity “4.1.
Electricity generation using solar photovoltaic technology” under the climate change
mitigation objective. As this figure represents less than 10% of the denominator, the
simplifications introduced by Regulation (EU) 2026/73 have been applied.
CapEx
Under the EU Taxonomy, capital expenditure (CapEx) is classified as additions to tangible
and intangible assets and right-of-use assets during the financial year, before
amortisation/depreciation, write-downs and write-backs. It also includes additions to
tangible and intangible assets resulting from company mergers. The denominator, as
defined above, amounts to €19,956,000.
The numerator of the KPI, amounting to €2,856,000, takes into account the proportion of
capital expenditure relating to eligible activities, adjusted where necessary. According to
the EU Taxonomy, CapEx may include:
▪ Capital expenditure related to activities or processes that are associated with
Taxonomy-eligible/aligned economic activities (category as per par. 1.1.2.2. Annex
I Delegated Regulation Art. 8).
▪ Capital expenditure related to a plan to expand Taxonomy-aligned economic
activities or to allow Taxonomy-eligible economic activities to become Taxonomy-
aligned ("CapEx plan") under the conditions set out in the second subparagraph of
point 1.1.2.2. of Annex I Delegated Regulation Art. 8;
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64
▪ Capital expenditure related to the purchase of products from Taxonomy-eligible
economic activities and individual measures enabling the Group's activities to
become low-carbon or to lead to greenhouse gas reductions (Category C as per par.
1.1.2.2. Annex I Delegated Regulation Art. 8).
Please note that the increases attributable to expenses recognised in accordance with IFRS
16 Leases and IAS 40 Investment Property have been taken into account.
Finally, there are no CapExs attributable to IAS 41 Agriculture.
For the CapEx KPI, the 10% threshold set out in Delegated Regulation (EU) 2026/73 has
not been applied, as the ratio of the numerator to the denominator exceeds that value.
OpEx
Under Regulation (EU) 2021/2178, operational expenditure is considered as direct non-
capitalised costs that relate to building renovation measures, research and development,
short-term lease and maintenance and repair. In addition, any other direct expenditures
relating to the day-to-day servicing of assets of property, plant and equipment by the
undertaking or third party to whom activities are outsourced, fall within the same scope.
Non-capitalised costs that represent research that were recognised in the income
statement were also identified. The method used to identify Sabaf Group's operational
expenditure is based on the analysis of all the accounts comprising the management
accounting system, identifying all items pertaining to the above categories. Based on this
analysis, the denominator was determined to be €8,483,000. The numerator, which
amounts to less than a thousand euros, comprises the operating costs for the maintenance
of the rainwater and stormwater collection and treatment facilities at the Sabaf S.p.A. plant.
These expenses relate specifically to activity “2.2 Production of alternative water
resources for purposes other than human consumption” under the objective ‘Transition to
a circular economy’. Since the numerator accounts for less than 10% of the denominator,
the simplifications introduced by Delegated Regulation (EU) 2026/73 have been applied.
Sabaf Group | Consolidated financial statements at 31 December 2025
65
ESRS E1 Climate change
[GOV-3] Integration of sustainability-related performance in incentive schemes
Section
[GOV-3] Integration of sustainability-related performance in incentive schemes
explains in detail how the topic of climate change is incorporated into the remuneration
systems of the members of the administrative, management and supervisory bodies. In
summary, the long-term incentive plan (based on the 2024-2026 Business Plan period)
includes a 10% weighting for the environmental target to reduce Scope 1 and Scope 2 CO
2
emissions.
[E1-1] Transition plan for climate change mitigation
During 2025, the Sabaf Group developed a transition plan for climate change mitigation –
approved by the Board of Directors of Sabaf S.p.A. on 18 December 2025 – aimed at
supporting the gradual reduction of Scope 1 and Scope 2 greenhouse gas emissions and
consistent with the integration of climate objectives into the Group’s strategy.
The plan combines technical and financial aspects, covering both operational investments
and the ongoing costs associated with sourcing energy from certified renewable sources.
This approach allows for a joint assessment of both the feasibility of reducing emissions
and the economic viability of a pathway consistent with the objectives of the Paris
Agreement and with the trajectory for limiting the global temperature rise to 1.5°C. This
strengthens the link between climate strategy, industrial model and financial planning.
The plan covers Scope 1 and Scope 2 emissions, i.e. direct emissions resulting from
operational activities and indirect emissions associated with purchased electricity and
heat. For a detailed breakdown of the Group’s emissions, including Scope 1, 2 and 3
emissions, please refer to section
[E1-6] Gross Scopes 1, 2, 3 and Total GHG emissions
.
Specifically, the plan is based on compiling an inventory of Scope 1 and Scope 2 emissions
and on modelling progressive emissions scenarios that enable the evolution of emissions
over the period 2024–2034 to be represented and the incremental effect of the various
decarbonisation measures under consideration to be assessed.
Specifically, a
‘business-as-usual’
scenario and alternative scenarios have been defined,
incorporating:
▪ operational initiatives already included in the budget, including the
replacement of air compressors, the replacement of the electric evaporator used in
the treatment of foundry waste with a physical-chemical treatment system, the
optimisation of the dosing furnaces in the aluminium die-casting process, a new
photovoltaic power generation system, and the purchase of new ladles;
▪ the phased introduction of Guarantees of Origin (GO) for electricity from
2026 at the Sabaf S.p.A. plant;
▪ extension of the GO scheme to other Italian sites and the purchase of
Renewable Energy Certificates (RECs) for overseas sites in Mexico and Turkey;
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66
▪ the purchase of Guarantees of Origin linked to the production of
biomethane and/or the replacement of natural gas with biomethane at the
Sabaf S.p.A. plant, starting in 2031, until 100% of requirements are met in 2034.
The plan sets out a verifiable timeline, divided into the following stages and subject to
systematic monitoring in line with the modelled trajectories.
The initial phase combines the effectiveness of operational measures with the purchase of
Guarantees of Origin (GO) and Renewable Energy Certificates (RECs), with a gradual
increase in certified volumes up to 2034. The estimated reduction, calculated using a
conservative approach and without taking into account any fluctuations, results in a 38%
decrease in the emissions trajectory compared with the 2024 baseline.
In a subsequent phase (from 2031), a further decarbonisation measure will be introduced,
based on the purchase of green certificates linked to biomethane production. Although this
market is not yet fully developed, this option represents a promising avenue for future
regulatory implementation.
These levers have been incorporated into an emissions model that makes it possible to
assess their incremental impact and how they interact over time. The comparative analysis
shows that the decarbonisation scenario, resulting from the combined application of
operational and energy procurement measures, enables emissions levels consistent with
the SBTi scenario to be achieved by 2034, resulting in an overall reduction in Scope 1 and
Scope 2 emissions of 58.8% compared with 2024, in line with the objective of limiting
global warming to 1.5 °C as set out in the Paris Agreement.
As part of its mitigation measures, Sabaf has carried out an economic and financial
assessment, quantifying both the operating expenses (OpEx) and capital expenditure
(CapEx) required to implement the measures set out in the transition plan. The
combination of OpEx and CapEx makes it possible to support, on the one hand, immediate
measures to procure energy from certified renewable sources (GO/RECs) and, on the
other, structural initiatives to improve efficiency and upgrade technology, whilst ensuring
the emissions-related feasibility and economic sustainability of the path towards meeting
mitigation targets.
Throughout the entire implementation period of the plan, an increase in operating costs
associated with the purchase of Guarantees of Origin (GO) and Renewable Energy
Certificates (RECs) is anticipated. These costs, spread over several years, reflect the need
to source energy from certified renewable sources.
In the absence of reliable long-term price scenarios, the reference unit prices (€/MWh) are
kept constant based on the latest available data. The operating costs associated with
GO/RECs therefore constitute the recurring expenditure required to ensure that energy
demand is aligned with the plan’s decarbonisation targets, and amount to approximately
€310,000 for the entire duration of the plan (2025–2034).
The amount shown does not include the costs associated with the purchase of GO linked
to biomethane. It is, in fact, difficult to arrive at an estimate due to the extreme volatility
of market prices.
Planned investments aimed at achieving a structural reduction in energy consumption and
in direct (Scope 1) and indirect (Scope 2) emissions are subject to technical and economic
analysis and prioritisation. The allocation of resources and the progress of investments will
be monitored annually to ensure transparency, effectiveness and the timely
implementation of any corrective measures. For information on the Taxonomy criteria,
Sabaf Group | 2025 Report on Operations
67
the scope of eligible activities and the alignment metrics, please refer to the
disclosure
section
pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation)
.
Further details on mitigation measures and reduction targets are provided in sections
[E1-
3] Actions and resources in relation to climate change policies
and
[E1-4] Targets related
to climate change mitigation and adaptation
.
The Group’s locked-in emissions were not taken into account when setting the targets.
The transition plan is in fact based on the emissions actually reported under Scope 1 and
2, covering the entire scope, and does not take into account emissions considered to be
locked-in. For further information on the Group’s locked-in emissions, please refer to the
box below entitled
‘Cooking technologies and the climate transition
’.
It should also be noted that the exclusions set out in Article 12 of Regulation (EU)
2020/1818 relating to indices aligned with the Paris Agreement do not apply to the Group.
Focus:
Cooking technologies and climate transition
As outlined in the following sections, the Scope 3 emissions analysis shows that the most
significant share of the Group's carbon footprint is related to the use of the products it
sells (burners, components of gas hobs, which generate emissions in the combustion
phase of cooking food). Currently, these emissions cannot be reduced directly since they
depend on existing infrastructure and consumer choices. This represents a challenge for
the definition of a reduction target for Scope 3 emissions within the climate transition
plan, as the decarbonisation of the Sabaf Group depends not only on product efficiency,
but also on the availability of alternative technologies in the domestic cooking sector.
Therefore, emissions related to the use of the products sold represent locked-in
emissions for the Group.
In this regard, it should be noted that about 30% of the people on our planet, i.e., 2.5
billion people, rely on solid fuels (wood, coal, dried dung, crop residues) for cooking.
This population is mainly concentrated in Sub-Saharan Africa, where the unavailability
of electricity and fossil fuels for cooking affects 82% of the population. Furthermore,
Central Asia, India, China, South-East Asia and Latin America also have significant
percentages. Pollution from traditional fuels has major consequences for the health of
users and households. The other 5.5 billion people cook using fossil fuels (mainly natural
and LPG) or electricity
16
.
There is a widespread perception that the environmental impact of electrical cooking is
lower than that of gas cooking.
Actually, the measurement of environmental impact cannot be separated from the
consideration of the electricity production mix (fossil fuels, renewables, nuclear). An
authoritative study shows that, given the electricity production mix in Italy, the total
CO
2
emissions over the life cycle of an induction hob are 1,590 kg, more than 50% higher
than the total emissions of a gas hob (1,050 kg)
17
. The same study also concludes that,
in the future, the shift from fossil fuels to renewable sources will increase the advantages
of using an electricity-consuming product such as the induction hob over the gas hob.
16
Selin Oğuz, Mapped: The Global Reliance on Harmful Cooking Fuels, 7 December 2023
17
https://www.sciencedirect.com/science/article/abs/pii/S0959652618308011
Journal of Cleaner production - «Comparative life cycle assessment of cooking appliances in Italian
kitchens», 2018
Claudio Favi a, Michele Germani b, Daniele Landi b, Marco Mengarelli c, Marta Rossi b
a Università degli Studi of Parma, b Università Politecnica of the Marche region, c Energy Research Institute,
Nanyang Technological University
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Another in-depth study
18
has recently conducted an impact analysis of different cooking
technologies, according to scientific standards (ReCiPe 2016 and PEF). In a nutshell, the
analysis covered 18 impact categories, which were then reduced to a single point value
(OWDS - Overall Weighted Damage Score). The OWDS was the highest in the case of
coal-fired cooking appliances (118) and the lowest for LPG and natural gas appliances
(5 and 5.2 respectively).
Electric cooking appliances, with an OWDS of 8.6, have 174% of the environmental
impact of gas hobs.
With respect to sustainable development, reducing the environmental impact of cooking
food will necessarily require a two-pronged strategy:
▪ promote access to lower impact energy sources for the population still using solid
fuels;
▪ favour electric cooking only where and when the energy production mix is
characterised by a predominantly green energy component.
In line with the first point, in January 2026 Sabaf signed a partnership agreement with
the Clean Cooking Alliance (CCA), an international organisation established in 2010 that
promotes access to clean cooking solutions in order to bring benefits to health, the
environment, and social and economic development. Through this partnership, Sabaf is
providing resources and expertise to support practical initiatives where it can offer the
greatest added value, such as sharing technical know-how and providing training on
market research and innovations in energy efficiency, thereby contributing to the
common good and the protection of the environment.
The elements described in this section will be the subject of further analysis and future
developments, with a view to progressively aligning the Sabaf Group’s climate strategy
more closely with regulatory requirements and stakeholder expectations.
[E1 SBM-3] Material impacts, risks and opportunities and their interaction with
strategy and business model
The Sabaf Group follows a business development path that aims to reduce the
environmental impact of its own operations and that of its value chain, and gives due
consideration to the risks and opportunities related to climate change. Through the double
materiality assessment, the Group identified negative impacts, such as GHG emissions
generated by its operations, the upstream value chain and product use, as well as positive
impacts, such as the reduction of GHG emissions during the product use phase.
The double materiality assessment identified three transition risks, while no material
physical risks emerged.
The first risk relates to the need to adapt to market expectations regarding sustainability,
e.g. through the implementation of effective decarbonisation strategies. It is becoming
increasingly common for appliance manufacturers to involve their suppliers on
environmental matters, specifically climate change. Companies that develop concrete
18
https://www.itjfs.com/index.php/ijfs/article/view/2170
Italian Journal of Food Science, 2022 - Environmental impact of the main household cooking systems - A
survey, 2022 Alessio Cimini and Mauro Moresi, University of Tuscia
Sabaf Group | 2025 Report on Operations
69
plans to reduce their environmental impact can improve their competitiveness,
consolidate their position in their target markets and, more generally, strengthen
stakeholder relations.
The second risk is the management of CO
2
emissions along the entire production chain,
an increasingly important factor in meeting market demands. Emissions management
facilitates the monitoring of environmental performance and enables comprehensive
communication, in line with customer and investor expectations. Transparent and
accurate reporting makes it possible to concretely demonstrate the company's
commitment to sustainability.
The third risk concerns the adaptation of companies to changing environmental
regulations, such as Carbon Free, RoHS and CBAM regulations. The evolving regulatory
framework requires constant updating and rapid adaptation, both to ensure compliance,
and to seize opportunities for operational efficiency and consolidate market presence.
The assessment of physical risks and transition risks covered the entire consolidated Sabaf
Group.
The scenarios used for the assessment of physical and transition risks are in line with the
projections of the IPCC (Intergovernmental Panel on Climate Change) and the IEA
(International Energy Agency). Scenario projections for the assessment of physical risks
were made with reference to the time horizons of 2030, 2050 and 2080, while projections
for transition risks were assessed in the short term.
The biggest impact in the best-case scenario concerns transition topics, in particular
market and regulatory aspects. This is because stricter regulations, adopted in an
environment where governments and companies act quickly, would result in lower
emissions and the mitigation of temperature increases. Conversely, in a less regulated
scenario, in which measures to mitigate climate change are not actually implemented in
the medium to long term, the physical consequences would be more severe, while the
transition risks would be lower. The overall result of the analysis under all scenarios that
were considered did not identify any assets as being at significant risk.
The resilience analysis, based on the risk assessment that was conducted, showed that, in
the three CPR scenarios (2.6, 4.5 and 8.5) and in the three time horizons considered (2030,
2050, 2080), no site was exposed to material acute or chronic physical risks. In addition,
in order to minimise the financial impact of such risks, the Sabaf Group has already
adopted mitigation measures, including specific insurance programmes, to cover potential
damage to assets and loss of contribution margins due to business interruption. As far as
transitional climate risks are concerned, in particular the risk of changing consumer needs,
the Group has invested in the development of induction cooking components, the
popularity of which is continuously expanding in the European market.
More detailed information on the scenarios used and the results of the risk analysis are
described in
[E1 IRO-1] Description of the processes to identify and assess material
climate-related impacts, risks and opportunities.
Finally, the double materiality assessment looked at the opportunities of green strategies,
including the take-up of gas cooking in emerging countries, the development of alternative
cooking technologies, energy autonomy and reputational benefits.
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70
The Group systematically monitors and intervenes in production processes to reduce
energy use and its carbon footprint. Using secondary materials as an alternative to virgin
raw materials and optimising waste recovery also contributes to decarbonisation.
In order to reduce its environmental impact, the Group has also initiated concrete actions,
which represent the first steps towards a structured pathway for climate change mitigation,
as detailed in section
[E1-3]
Actions and resources in relation to climate change policies
.
With reference to Scope 3 emissions from the use of the products it sells:
▪ the growing presence on international markets, including through the recent start-
up of a factory for the production of gas cooking components in India, may
contribute to the spread of gas cooking appliances in emerging countries;
▪ equally strategic are the Group's investments to enter the sector of components
for induction cooking, the most efficient form of electric cooking, the spread of
which is constantly growing in the European market;
▪ moreover, the Sabaf Group actively participates in a number of experimental
projects aimed at assessing the feasibility of using hydrogen to replace natural gas
(methane) as a power source for gas cooking appliances. Sabaf has designed
burners capable of operating with 100% hydrogen, and subsequent laboratory
tests and prototypes have confirmed the technical feasibility of such products. The
real possibility of using hydrogen on a large scale as a fuel source still has to
overcome major technological challenges, both in terms of production and
distribution. One solution that may be implemented relatively quickly entails the
use of a mixture of natural gas and hydrogen via the existing distribution network.
[E1 IRO-1] Description of the processes to identify and assess material climate-
related impacts, risks and opportunities
Double materiality assessment
Impacts
The double materiality assessment identified the following negative impacts related to
climate change mitigation: GHG emissions during own operations, in the upstream value
chain and during product use. The Sabaf Group is part of an energy-intensive industry,
both for the processing of raw materials in the upstream value chain and for certain
processes carried out in the Group's production facilities (in particular aluminium die-
casting). However, the vast majority of the Sabaf Group's total emissions fall under Scope
3 Category 11, i.e. emissions related to the use of products sold resulting from the
combustion of methane or LPG in burners.
Sabaf has identified a positive impact related to the reduction of greenhouse gas emissions
in the product use phase (downstream value chain): the technology offered by the Group
can enable the transition of cooking technologies - from solid fuels to gas (methane or
LPG) in emerging countries, from gas to induction cooking in countries where gas is
already the most widely used cooking method.
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71
Risks
The double materiality assessment conducted by the Group revealed three main transition
risks, while no material physical risks were identified.
The first risk relates to the inability to adapt to market expectations in terms of
sustainability, which requires transparency and concrete commitments in the transition to
low-carbon emission models. The risk takes into account the failure to implement effective
decarbonisation strategies, with potential repercussions on competitive positioning and
investor and stakeholder relations.
The second risk is the management of CO
2
emissions along the entire production chain.
Failure to align with standards such as ESRS and CSRD can lead to difficulties in meeting
the expectations of customers, investors and other stakeholders, as well as problems in
monitoring environmental performance and communicating it.
The third risk is related to compliance with new environmental regulations, such as Carbon
Free, RoHS and CBAM regulations. Increasingly stringent regulations require rapid
adaptation to avoid penalties, operational restrictions or increased compliance costs.
Timely compliance with these requirements not only reduces the risk of penalties, but can
also be an opportunity to strengthen competitive advantage.
Opportunities
The Sabaf Group has identified the following opportunities related to climate change:
▪ the spread of gas cooking in place of biomasses in emerging countries;
▪ the development of alternative technologies that can result in lower emissions in
the use phase of the product;
▪ benefits from increased energy autonomy and related cost-saving associated with
self-generation of energy from renewable sources;
▪ reputational benefits from the introduction of effective decarbonisation and
energy efficiency strategies.
Analysis of physical and transitional risks
Aside from the double materiality assessment - in order to identify the risks to which it is
most exposed and adopt a proper mitigation strategy - in 2024, the Sabaf Group conducted
an analysis of the (acute and chronic) physical risks that may affect each production site,
and the transition risks, by assessing potential developments under different climate
scenarios and time horizons. The assessment of physical risks and transition risks covered
the entire Group scope of consolidation. Risk materiality was determined on the basis of
EBITDA thresholds; the present value of assets and operating costs were considered when
determining the financial impacts of climate risks. The financial impacts associated with
climate risks were found to be non-material. Physical risks were assessed with respect to
site location and using RCP scenarios provided by the IPCC (Intergovernmental Panel on
Climate Change), while transition risks were assessed qualitatively and, where possible,
quantitatively, according to scenarios provided by the IEA (International Energy Agency).
The scenarios are based on different levels of global temperature increase and the resulting
physical and transitional implications for the planet. To conduct the analysis, three
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72
representative scenarios were identified: best case, intermediate case and worst case.
Scenario projections for the assessment of physical risks were made with reference to the
time horizons of 2030, 2050 and 2080, while projections for transition risks were assessed
in the short term. The reference scenarios used for the assessment of physical and
transitional risks are detailed below.
Scenario 1, best case - Net Zero Scenario (NZS): this model implies a strong
commitment by all governments to increase ambition and effort to achieve the Net Zero
goal of limiting temperature increase as required by the Paris Agreement. The IPCC's 2018
Special Report on Global Warming of 1.5°C (SR1.5) pointed out that more ambitious
emission trajectories than RCP2.6 - such as those outlined in the new SSP1-1.9 (Shared
Socioeconomic Pathways) scenarios - are needed to have a high probability of limiting
global warming to 1.5°C. In this context, whilst it is consistent with the Paris Agreement,
the RCP2.6 (Representative Concentration Pathway) scenario is used as a reference in the
physical risk assessment to keep the average temperature increase below 2°C.
Scenario 2, intermediate projection - Announced Pledges Scenario (APS): this
model represents a pathway that takes into account official commitments announced by
governments and international organisations to reduce greenhouse gas emissions. For the
assessment of physical risks, the intermediate projection is equivalent to the RCP 4.5
scenario, which predicts a temperature increase of between 2 and 3°C by 2100 and is
based on a carbon concentration that would generate an average global warming of 4.5
watts per square metre on the earth's surface.
Scenario 3, worst case - Stated Policies Scenario (STEPS): This model represents a
pathway that takes into account policies and measures currently in place or already
established by governments and organisations; it reflects the expected impact of existing
policies on GHG emissions and climate change trends over time without taking into
account future policy changes or new measures that may be adopted in response to
evolving scientific knowledge or socioeconomic conditions. For the physical risk
assessment, the worst case corresponds to the RCP 8.5 scenario, which represents a
'business-as-usual' pathway and refers to a carbon concentration that produces global
warming averaging 8.5 watts per square metre across the planet.
The conclusions of the analyses that were carried out are summarised below.
▪ Acute physical climate risks: Sudden extreme weather events, such as storms,
floods, fires and heat waves, could directly affect business operations and the
supply chain, putting the supply of goods, services and energy at risk. Potential
consequences include production interruptions, damage to infrastructure and
strategic assets, delays in delivery and the risk of incurring contractual penalties,
as well as increased costs for repairs and replacements. Analyses were carried out
according to the three RCP scenarios (2.6, 4.5 and 8.5) over three different time
horizons (2030, 2050, 2080). According to a financial impact metric, the sites at
greatest risk - in the worst-case scenario and the 2030 time horizon - are Sabaf
China and Sabaf India. At a Group level, the risk is non-material.
▪ Chronic physical climate risks: climate change causes chronic weather events,
such as rising temperatures, rising sea levels and water shortages. These events
could cause slowdowns or disruptions in business operations, forcing a review of
strategies, resource allocation and distribution of activities and production across
the Group's various sites. If not properly managed, these changes could
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73
compromise operational efficiency, cause business disruption and damage
strategic assets. Based on the analyses carried out according to the three RCP
scenarios (2.6,4.5 and 8.5) across the three time horizons (2030, 2050, 2080), no
site was found to be at material risk.
▪ Market risk (raw materials): rising raw material and energy commodity prices
could affect expected results from the production and sale of some products,
especially carbon-intensive ones. The impact could be exacerbated by recent
legislation, such as CBAM and EU ETS2.
The assessment for the introduction of the ETS2 system was conducted
qualitatively, while the specific risk analysis for the introduction of CBAM also
involved a quantitative assessment. The scenarios considered, with a 2034 time
horizon, were as follows:
▪ Stated Policies Scenario (STEPS)
▪ Announced Pledges Scenario (APS)
▪ NET ZERO 'NZE' scenario by 2050
The specific emissions considered in this forecast were determined using the
emission factors per tonne of product provided by the European Commission. The
results of the analysis show that the greatest financial impact will result from the
NET ZERO scenario, which will see the most stringent regulatory mechanisms
and an operating environment characterised by rapid regulatory adaptation by
countries and companies. However, this impact is not expected to be material for
the Group in economic terms.
▪ Market risk (consumer needs): should the Sabaf Group be unable to maintain
its innovation capacity, including by reducing the environmental impact of its
products, it could lose some of its competitive advantage. Any inability to adapt
to changes in consumer demand towards potentially more environmentally
friendly and technologically advanced solutions, such as induction cooking, could
result in a loss of market share. The assessment was conducted qualitatively over
a short- to medium-term time horizon.
▪ Reputational risk: an inadequate decarbonisation strategy and insufficient
communication on ESG topics could damage corporate reputation. The
assessment was conducted qualitatively over a short- to medium-term time
horizon.
[E1-2] Policies related to climate change mitigation and adaptation
In line with the principles outlined in its Charter of Values, the Sabaf Group has adopted
an Environmental and Energy Management Policy that promotes the prevention and
mitigation of environmental impacts and risks by defining commitments in the areas of
climate change, pollution, water and the circular economy.
The Environmental and Energy Management Policy is based on the values set out in the
Sabaf Group's Charter of Values, which in turn are inspired by:
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74
▪ the United Nations’ Charter of Rights, the European Union’s Charter of Rights, the
Italian Constitution;
▪ the core labour standards included in the ILO conventions;
▪ the OECD Guidelines for Multinational Enterprises;
▪ the UN Global Compact, which Sabaf participates in.
The Environmental and Energy Management Policy also refers to the Integrated Health
and Safety, Environment and Energy Management System Manual of Sabaf S.p.A., which
complies with ISO 45001, ISO 14001 and ISO 50001 standards, as well as the provisions
of the Organisation, Management and Control Model pursuant to Legislative Decree No.
231/2001 (in the applicable Group Companies).
Specifically, the Sabaf Group is committed to pursuing targets for climate change
mitigation and adaptation, as well as energy efficiency and the use of energy from
renewable sources, through the following actions (as defined in the Group's Environmental
and Energy Management Policy):
▪ rationalising and making efficient use of energy resources;
▪ constantly monitoring the energy consumption of its operations;
▪ defining and measuring performance indicators related to energy performance and
greenhouse gas (GHG) emissions, in own operations and along the value chain, and
monitoring the respective progress;
▪ defining GHG emission reduction targets and identifying respective
decarbonisation levers, in own operations and along the value chain;
▪ pursuing maximum energy efficiency in its products; promoting and implementing
cooking solutions that reduce GHG emissions during the product use phase;
▪ adapting its activities and decision-making processes to maintain full compliance
with current energy management and climate change legislation, and proactively
using its processes as a means of continuous surveillance;
▪ pre-emptively assessing energy consumption and climate change aspects in the
planning and design of investments, industrial operations and raw material
selection;
▪ complying with energy efficiency and climate change adaptation principles when
planning investments related to the construction and maintenance of production
facilities and sites;
▪ assessing and promoting investment in facilities for the self-generation of energy
from renewable sources;
▪ encouraging the purchase of electricity certified as coming from renewable sources.
The commitments outlined in the Environmental and Energy Management Policy aim to
mitigate and/or prevent the negative impacts and material risks, while pursuing the
positive impacts and opportunities associated with the topic of climate change (see section
[E1 SBM-3] Material impacts, risks and opportunities and their interaction with strategy
and business model)
.
The Environmental and Energy Management Policy applies to members of the company's
governing and supervisory bodies, employees and any third parties who collaborate with
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75
or work for and on behalf of the Sabaf Group, regardless of the legal status of the
relationship. The Environmental and Energy Management Policy is made available to
recipients and all stakeholders of the Sabaf Group on the corporate website
www.sabafgroup.com, in the section “Sustainability – Environment”.
The Environmental and Energy Management Policy applies to the entire Sabaf Group, with
no exceptions and/or exclusions in the conduct of business and professional activities by
geographical area, country and/or stakeholder groups involved. In addition, the Sabaf
Group expects the entire value chain to agree with and act in accordance with the
principles outlined in its Environmental and Energy Management Policy.
The Parent Company's Board of Directors is responsible for the approval, implementation
and periodic review of the Group's Environmental and Energy Management Policy. The
Company may arrange for checks through the Internal Audit function to verify the
application of the Policy. Using the applicable channels for individual Group companies,
any Sabaf Group stakeholder may also report cases of alleged non-compliance with the
Policy by sending a written and non-anonymous description of the alleged incident. Where
no channel is provided, stakeholders may use the whistleblowing channel adopted by
Sabaf S.p.A., through the dedicated tool available on the company website.
Sabaf S.p.A. has an Integrated Management System of Health and Safety which is ISO
45001, ISO 14001 and ISO 50001 certified. Sabaf Turkey and C.M.I. S.r.l. have an ISO
14001-certified Environmental Management System. In any case, the ISO 14001, ISO
45001 and ISO 50001 standards are sources of reference and inspiration for the entire
Group.
Finally, the Sabaf Group has adopted a Sustainable Procurement Policy that requires
suppliers to make efficient use of energy resources, and to progressively reduce the use of
energy from fossil fuels. Details on the implementation, monitoring and enforcement of
the Sustainable Procurement Policy can be found in section
[S2-1] Policies related to value
chain workers
.
[E1-3] Actions and resources in relation to climate change policies
In the area of climate change, the Sabaf Group pursues the commitments outlined in its
Environmental and Energy Management Policy through:
▪ the implementation of a carbon management pathway aimed at identifying specific
drivers of decarbonisation and developing reduction targets, according to the main
international initiatives and standards;
▪ energy efficiency activities and investments for the self-generation of energy from
renewable sources;
▪ periodic measurement and monitoring of Scopes 1, 2 and 3 GHG emissions,
conducted annually.
In 2025, the Sabaf Group conducted and/or planned the following actions in order to
pursue its climate change policy commitments.
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76
▪ The installation of a photovoltaic system at the Ospitaletto plant (Sabaf S.p.A.),
which will allow the self-production of an estimated 12% of the site's current
consumption. For this activity, which started in 2024, Sabaf has incurred capital
expenditure (CapEx) of €2,162,000 (€251,000 in 2024). This amount was aligned
within the scope of Regulation (EU) 202/852 (Taxonomy Regulation) for FY 2025
and reported in this Sustainability Statement according to the applicable provisions.
For this project, which was completed in 2025, the Group incurred total capital
expenditure of approximately €2.4 million.
▪ The development of the induction cooking business segment, with the aim of
contributing to the reduction of indirect emissions associated with product use in
the downstream value chain, as well as the pursuit of associated business
opportunities. In 2025, Sabaf invested €832,000 in capital expenditure (CapEx)
(€2.3 million in 2024) and €2.3 million in operating expenses (€0.5 million in 2024).
For 2026, planned capital expenditure will amount to about €345,000, with
operating expenditure (OpEx) of €2.3 million.
▪ The installation, at the Sabaf S.p.A. production plant, of charging stations for
electric vehicles, with associated capital expenditure (CapEx) of about €17,000 for
2025 (€12,000 for 2024). This amount was aligned within the Taxonomy Regulation
and reported in this Sustainability Statement according to the applicable provisions.
For this project, which was completed in 2025, the Group incurred total capital
expenditure of approximately €29,000.
▪ Energy efficiency measures aimed at reducing energy consumption associated with
operational processes. In 2025, Sabaf replaced the electric evaporator used for
treating foundry waste water with a physico-chemical treatment system, which will
significantly reduce the associated energy consumption. In connection with this
activity, the Group incurred capital expenditure (CapEx) of €401,000. Also in 2025,
the internal lining of the ladles was replaced at a capital expenditure cost of
€15,000. Also planned for 2026 is the replacement of a dosing furnace in the die-
casting department with more efficient furnaces. Capital expenditure (CapEx) of
€100,000 is expected to be incurred for this operation to be implemented.
▪ The purchase of Renewable Energy Certificates (RECs) for overseas sites in Brazil
and Turkey will incur operating costs of €2,600 in 2025.
To fund these investments, the Sabaf Group has secured a dedicated loan of €3 million.
During 2025, Sabaf also secured medium- to long-term loans totalling €38 million, which
are subject to compliance with ESG covenants.
The periodic measurement and monitoring of Gross Scopes 1, 2 and 3 emissions are part
of the recurring operating costs. Furthermore, through its participation in the CDP Climate
Change programme, Sabaf is committed to measuring, monitoring and disclosing its
performance in the area of emissions management. As part of its participation in the CDP
2025, Sabaf achieved a B rating in the
Climate Change
section, on a scale ranging from a
minimum of D- to a maximum of A.
Some of the measures described above relate to the following decarbonisation levers
identified in the climate change mitigation transition plan: on-site generation of electricity
from photovoltaic sources, energy efficiency improvements in production processes, and
Sabaf Group | 2025 Report on Operations
77
the purchase of certified renewable electricity. These measures are aimed at progressively
reducing energy consumption and Scope 1 and 2 emissions to a target level of 58.8% over
the 2024–2034 period. For further details, please refer to section
[E1-1] Transition Plan for
climate change mitigation
. At present, Sabaf does not incorporate nature-based solutions
into its decarbonisation initiatives.
[E1-4] Targets related to climate change mitigation and adaptation
In 2025, the Sabaf Group set a new climate target as part of the carbon management and
climate change mitigation programme launched in 2023.
The target is integrated into the Group’s strategy and is implemented through the Climate
Change Mitigation Transition Plan approved by the Board of Directors in December 2025,
which incorporates technical, industrial and economic-financial assessments and sets out
a medium- to long-term emissions trajectory (see section
[E1-1] Transition plan for climate
change mitigation
). This objective also supports the Group’s Environmental and Energy
Management Policy and aims to progressively reduce greenhouse gas emissions, as well
as to effectively manage relevant climate-related impacts, risks and opportunities.
The target set involves an overall absolute reduction in Scope 1 and Scope 2 emissions of
58.8% by 2034 compared with the base year of 2024. 2024 has been identified as the base
year as it is representative of the Group’s current structure and normal operating
conditions following the disruptions caused by the COVID-19 pandemic, and is therefore
indicative of typical levels of activity, energy consumption and emissions. The target was
defined without direct stakeholder involvement. As described in section
[E1-1]
, the Group
has not set any quantitative targets for reducing Scope 3 emissions.
The target covers both Scope 1 and Scope 2 emissions, accounting for 30.5% (Scope 1)
and 69.5% (Scope 2) respectively. The scope of the calculation covers the same Scope 1
and 2 emissions as those included in the Group’s inventory, as described in section
[E1-6]
Gross Scopes 1, 2, 3 and Total GHG emissions
, and is consistent with the organisational
scope, the gases included and the calculation methodologies adopted. The Scope 2
emissions included in the target are monitored and calculated using a market-based
approach. Furthermore, the emissions reduction target is set on a gross basis and does
not include GHG removals, carbon credits or avoided emissions as means of achieving it.
The target was determined by modelling emissions scenarios and systematically
comparing them with the decarbonisation pathways of the Science Based Targets initiative
(SBTi) that are compatible with limiting global warming to 1.5 °C. The methodology
adopted is based on a sector-specific decarbonisation pathway and takes into account,
among other factors, changes in production volumes, energy consumption, technological
development and the regulatory framework. As at the reporting date, the target has not
yet been formally validated by the SBTi.
In particular, the achievement of this objective is supported by an integrated set of
decarbonisation measures, including energy efficiency improvements to production
processes, on-site generation of electricity from photovoltaic sources, the progressive
purchase of certified renewable electricity through GO and RECs, and the gradual
replacement of natural gas with biomethane or the purchase of GO associated with
biomethane at the Sabaf S.p.A. plant from 2031 until complete replacement in 2034.
Sabaf Group | 2025 Report on Operations
78
The effectiveness of climate policies and actions is monitored on an annual basis by
comparing actual emissions with the trajectory set out in the Transition Plan, as well as
through periodic reviews of the progress made on individual decarbonisation measures.
With regard to adaptation to climate change, the Group incorporates relevant
considerations into its environmental and energy management systems, operational risk
assessments and business continuity plans. Additionally, the Group constantly assesses
compliance with current regulations in all the production plants in which it operates,
through the adoption of management systems that provide for periodic checks, internal
audits and audits by independent bodies according to the principles set o0ut in the ISO
14001 standard. Sabaf S.p.A. applies an Integrated Environment and Energy management
system which is ISO 14001 and ISO 50001 certified.
Finally, as described in section
[GOV-3] Integration of sustainability-related performance
in incentive schemes
, the Group has set performance-based targets relating to the impacts
of climate change as part of its Long-Term Incentive Plan (LTIP).
[E1-5] Energy consumption and mix
The following table shows the Group's overall energy consumption.
Energy consumption and mix
2025
2024
1) Fuel consumption from coal and coal products (MWh)
0
0
2) Fuel consumption from crude oil and petroleum products (MWh)
1,307
1,475
3) Fuel consumption from natural gas (MWh)
52,424
53,674
4) Fuel consumption from other non-renewable sources (MWh)
0
0
5) Consumption of purchased or acquired electricity, heat, steam, or cooling from
fossil sources (MWh)
25,232
31,089
6) Total fossil energy consumption (MWh)
(calculated as the sum of lines 1 to 5)
78,963
86,238
Share of fossil sources in total energy consumption (%)
84%
89%
7) Consumption from nuclear sources (MWh)
260
1,272
Share of nuclear sources in total energy consumption (%)
0%
1%
8) Fuel consumption for renewable sources including biomass (also includes
industrial and urban waste of biological origin, biogas, renewable hydrogen, etc.)
(MWh)
6
11
9) Consumption of purchased or acquired electricity, heat, steam and cooling from
renewable sources (MWh)
14,917
9,168
10) Consumption of self-generated non-fuel renewable energy (MWh)
147
126
11) Total energy consumption from renewable sources (MWh)
(calculated as the sum of lines 8 to 10)
15,070
9,305
Share of renewable sources in total energy consumption (%)
16%
10%
Total energy consumption (MWh)
(calculated as the sum of lines 6, 7 and 11)
94,293
96,815
Reported below is the renewable energy self-generated by the photovoltaic system
operating at C.M.I. s.r.l.
Sabaf Group | 2025 Report on Operations
79
Total energy production
2025
2024
Non-renewable energy production (MWh)
0
0
Renewable energy production (MWh)
192
158
Total energy production (MWh)
192
158
Energy intensity based on net revenue
2025
2024
Total energy consumption from activities in high climate impact sectors per net
revenue from activities in high climate impact sectors (MWh/€/000)
0.34
0.34
The Sabaf Group uses Renewable Energy Certificates (RECs), an internationally
recognised tool to certify the purchase and use of renewable energy.
All Group companies operate in the manufacturing sector, which is identified as a high
climate impact sector by the ESRS. Energy intensity was therefore calculated by dividing
"Total energy consumption" by the Group's net revenue of €278,201 thousand for 2025
(€285,091 thousand for 2024).
[E1-6] Gross Scopes 1, 2, 3 and Total GHG emissions
2025
2024
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO
2eq
)
11,097
11,312
Percentage of Scope 1 GHG emissions from regulated emission
trading schemes (%)
0%
0%
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO
2eq
)
10,447
12,074
Gross market-based Scope 2 GHG emissions (tCO
2eq
)
11,316
15,618
Significant Scope 3 GHG emissions
Total gross indirect (Scope 3) GHG emissions (tCO
2eq
)
26,262,873
25,563,260
Percentage of gross indirect Scope 3 emissions
99.9%
99.9%
1. Purchased goods and services (tCO
2eq
)
146,854
183,850
2. Capital goods (tCO
2eq
)
6,093
4,383
3. Fuel and energy-related activities (not included in Scope 1 or 2)
(tCO
2eq
)
3,470
4,133
4. Upstream transportation and distribution (tCO
2eq
)
11,876
11,509
5. Waste generated in operations (tCO
2eq
)
1,397
1,607
6. Business travel (tCO
2eq
)
754
1,170
7. Employee commuting (tCO
2eq
)
2,332
2,015
9. Downstream transportation (tCO
2eq
)
2,396
2,004
11. Use of sold products (tCO
2eq
)
26,087,294
25,352,041
12. End-of-life treatment of sold products (tCO
2eq
)
317
454
13. Downstream leased assets (tCO
2eq
)
90
94
Total GHG emissions
Total GHG emissions (location-based) (tCO
2eq
)
26,284,417
25,586,646
Total GHG emissions (market-based) (tCO
2eq
)
26,285,286
25,590,191
Sabaf Group | 2025 Report on Operations
80
Methodological note
This Methodological Note illustrates the methodology adopted to calculate greenhouse
gas (GHG) emissions by referring, as required by current legislation, to the principles of
the GHG Protocol. Specifically, the Group applied the recommendations of the Standards
& Guidance | GHG Protocol for general reporting and Corporate Value Chain (Scope 3)
Standard | GHG Protocol for Scope 3 emissions.
The data collected refer to the entire year and the reporting scope covers the entire Sabaf
Group.
The Group also calculated the biogenic emissions for Scope 1, Scope 2 and Scope 3 to be
zero.
Sabaf has calculated its total market-based and location-based emission intensity at 0.09
and 0.09 tCO
2eq
/euro respectively for 2025 (0.09 and 0.09 tCO
2eq
/euro for 2024).
Emission intensity was calculated by dividing total emissions, (market-based and location-
based) by the Group's net revenue, which, in 2025, amounted to €278,201 thousand
(€285,091 thousand in 2024).
Scope 1
The calculation of emissions from the Group's activities was carried out following the
guidelines of the GHG Protocol, taking into account the different emission categories
(stationary combustion, mobile combustion and refrigerant gas leakage). Fuel data for each
of these activities were collected with the reference unit of measurement (using activity-
based methodology) and multiplied by the respective emission factors, taken from the
Department for Environment, Food & Rural Affairs (2025 DEFRA for 2025; 2024 DEFRA
for 2024).
Scope 2
The calculation of Scope 2 emissions was carried out following the GHG Protocol
guidelines considering both the location-based and market-based approaches.
For the location-based methodology, which reflects the indirect emissions from purchased
energy based on the composition of the local electricity grid, the emission factors of the
electricity distribution grid of the country where the energy is consumed were applied, as
reported in the 2025 IEA Database (2024 IEA Database for 2024).
The market-based methodology considers the contribution of specific emission factors
related to the contractual forms for purchase adopted by the organisation for its electricity
consumption. An emission factor of 0 was only applied for supplies of electricity from
renewable sources as certified by Guarantees of Origin or Renewable Energy Certificates,
and for the portion of electricity covered by these instruments. In particular, energy from
certified renewable sources was purchased through I-REC, which accounted for 37% of
the total electricity consumption from the grid (22% for 2024). The emission factors used
follow the market-based methodology applying 2024 AIB for the residual mix (2023 AIB
for 2024) and the location-based methodology for countries outside the European Union,
where the residual mix could not be obtained.
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81
Scope 3
Information on GHG Scope 3 emissions is inherently more limited than Scope 1 and 2
information, due to the limited availability and accuracy of both quantitative and
qualitative information, and because of the need to rely on data, information and evidence
provided by third parties.
Unless otherwise specified, reporting of indirect emissions from the value chain refers to
Group-wide data and covers the following GHG Protocol categories:
▪
Category 1 Purchased goods and services:
in accordance with the Greenhouse Gas
Protocol (GHGP), the average-data method was adopted to estimate emissions
from the purchase of goods, using the conversion databases of Ecoinvent 3.12
(Ecoinvent 3.11 for 2024) and, where present, Environmental Product Declarations.
▪
Category 2 Capital goods:
A spend-based methodology was adopted to estimate
emissions from the purchase of capital equipment in the reporting year. Investment
amounts, expressed in monetary terms, were converted into emissions using the
reference EEIO emission factors for the type of purchase, classified on the basis of
NACE codes.
▪
Category 3 Fuel and energy-related activities (not included in Scope 1 or 2):
the
fuel consumption and electricity purchase data, used for the calculation of Scope 1
and Scope 2 emissions, were multiplied by the respective emission factors. These
factors include the impact generated by the production of the energy carrier and
the losses associated with transport and distribution. For fuels, the 2025 DEFRA
database (2024 DEFRA for 2024) was used, while the emission factors from the
2025 IEA database (2024 IEA for 2024) were used for non-renewable electrical
energy.
▪
Category 4 Upstream transportation and distribution:
emissions from transport and
upstream, intra-group and downstream distribution activities borne by the Group
were calculated using the distance-based methodology. The kilometres travelled
were multiplied by the relevant emission factor from the 2025 DEFRA database
(2024 DEFRA for 2024), taking into account the weight transported, the transport
methodology performed and considering both the Tank-to-Wheel (TTW) and Well-
to-Tank (WTT) contribution.
▪
Category 5 Waste generated in operations:
The Average Data Method was used to
calculate emissions, whereby collected data was converted into emissions using
the 2025 DEFRA database (DEFRA 2024 for 2024). The conversion was made
according to the type of waste treatment, distinguishing between recycling,
incineration and landfilling.
▪
Category 6 Business travel:
a distance-based methodology was used to calculate
emissions from staff business travel. The kilometres travelled for each type of
transport vehicle were considered, and the data collected were multiplied by the
relevant emission factors from the 2025 DEFRA database (2024 DEFRA for 2024).
These factors include both the Tank-to-Wheel (TTW) and the Well-to-Tank (WTT)
components. When the distance methodology could not be used, the spend-based
methodology was considered through the EEIO emission factors classified on the
basis of NACE codes.
Sabaf Group | 2025 Report on Operations
82
▪
Category 7 Employee commuting:
emissions from home-to-work commuting were
calculated on the basis of the results of questionnaires administered to employees
in 2021, compared to the number of employees in the year of reference.
▪
Category 9 Downstream transportation:
emissions from transport and downstream
distribution activities not borne by the Group were calculated using the distance-
based methodology. The kilometres travelled were multiplied by the relevant
emission factor from the 2025 DEFRA database (2024 DEFRA for 2024), taking into
account the weight transported, the transport methodology performed and
considering both the Tank-to-Wheel (TTW) and Well-to-Tank (WTT) contribution.
▪
Category 11 Use of sold products:
specific attention was paid to category 11 (Use
of sold products), which required specific investigations in order to assess the
impact of these emissions along the value chain. The Group manufactures
components (intermediate products) for installation in domestic appliances,
including burners for gas cooking appliances. The finished product (the hob or free-
standing cooker) generates emissions during use by the end user by burning natural
gas or LPG to produce the heat needed for cooking. Emissions are calculated based
on a number of factors, including burner design, hob shape, grill shape and height,
pan type, gas type, etc., which are largely beyond the Group's control. As a result
of the investigations carried out
19
, the Group decided to report the emissions
relating to the use of sold products (category 11) based on the use of cooking
appliances on which Sabaf burners are installed. The methodology adopted to
calculate the direct emissions associated with the use phase of Sabaf's products was
based on an analysis covering the estimated useful life of the devices with fuel
consumption and, consequently, emission impact. The energy impact was
calculated by estimating a useful life cycle of 20 years for the products and
considering the average fuel consumption during their use (for each product
macrocategory). This consumption was then multiplied by the corresponding fuel
emission factor derived from the 2025 DEFRA database (2024 DEFRA for 2024).
▪
Category 12 End-of-life treatment of sold products:
to calculate emissions from the
end-of-life treatment of products sold by the Group, the average data method was
adopted. The analysis was based on the 2025 DEFRA database (2024 DEFRA for
2024), assuming an average emission factor considering the three main disposal
methods, weighted according to the percentage of treatment applied to products
sold within and outside the EU.
▪
Category 13 Downstream leased assets:
emissions generated by downstream
leased assets in the value chain were calculated using the CURB tables to estimate
electrical energy consumption and gas for heating. Consumption was then
multiplied by the respective emission factors: for gas, the reference is the 2025
DEFRA (2024 DEFRA for 2024), and the 2025 IEA (2024 IEA for 2024) for
electricity.
19
Corporate Value Chain (Scope 3) Accounting and Reporting Standard
, Supplement to the GHG Protocol
Corporate Accounting and Reporting Standard.
Technical Guidance for Calculating Scope 3 Emissions
, Supplement to the Corporate Value Chain (Scope 3)
Accounting & Reporting Standard.
Sabaf Group | 2025 Report on Operations
83
The analysis excludes the following categories, which are not applicable to the Sabaf
Group:
▪
Category 8 Upstream leased assets:
the Group has no leased assets upstream in the
value chain.
▪
Category 10 Processing of sold products:
Group products do not undergo post-sale
processing.
▪
Category 14 Franchises:
the Group has no franchising activities.
▪
Category 15 Investments:
the Group does not engage in investment activities.
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84
ESRS E2 Pollution
[E2 IRO-1] Description of the processes to identify and assess material pollution-
related impacts, risks and opportunities
As part of the most recent activity of stakeholder engagement, carried out during the
double materiality assessment in 2024, the Technical Office of the Municipality of
Ospitaletto, the HSE Officer of Confindustria Brescia and the certifying body of the
environmental management system, representing the affected communities, were asked
to give an assessment of the pollution-related impacts.
Consideration was also given to the results of the environmental analysis carried out for
the Sabaf S.p.A. plant, part of the ISO:14001 certified environmental management system.
As clarified within
[E2-3] Targets related to pollution
, the Group monitors environmental
impacts in accordance with the relevant regulations of the individual countries in which it
operates. For this reason, and where there are no applicable local regulations, the industrial
operations and related environmental impacts of the Sabaf S.p.A. production plant are
considered representative of the Group's other main production plants, as can be inferred
from the description of the production processes in this section, including in terms of
dimensions and importance for production.
The Group adopts homogeneous technologies to minimise pollution-related impacts in the
various plants in which it operates.
Finally, to identify possible impacts, risks and opportunities in the value chain:
▪ an analysis was conducted of the Group's purchases, with a focus on the main
materials purchased (steel and aluminium);
▪ consideration was given to priority impacts noted by international rating agencies
(S&P and MSCI) for representative sectors of the downstream value chain
("household durables" and "household appliances").
At the end of the process, the Sabaf Group identified negative impacts related to the
emission of pollutants to air, water and soil in its own operations (potential impact) and
along the upstream value chain (actual impact), while no material risks or opportunities
were identified. These negative impacts, whose effects can affect both the environment
and people, are inherent to the Group's business model, as the processing of materials in
the upstream value chain, as well as the company's own production processes, are
potentially responsible for the production of polluting emissions. It is worth emphasising
the potential nature of the negative pollution-related impacts in own operations.
Specifically, three production processes are carried out at Sabaf S.p.A:
▪ The production of the components that make up the burners (nozzle holder sumps
and flame spreaders) involves the casting and subsequent die-casting of the
aluminium alloy, sandblasting of the pieces, a series of mechanical processes with
removal of material, washing of some components, assembly and testing. This
production process results in the emission of negligible amounts of oily mists, as
well as dust and carbon dioxide;
Sabaf Group | 2025 Report on Operations
85
▪ The production of burner covers, where steel is used as raw material, which is
submitted to blanking and minting. The semi-finished covers are then used for
washing, sandblasting, application and firing of enamel, a process that generates
the emission of dust;
▪ The production of valves and thermostats, in which mainly aluminium alloy, brass
bars and moulded bodies and, to a much lesser extent, steel bars are used as raw
materials. The production cycle is divided into the following phases: mechanical
machining with removal of material, washing of semi-finished products and
components obtained in this way, finishing of the coupling surface of bodies and
masks with a diamond tool, assembly and final inspection of the finished product.
This process generates negligible oily mists.
The entire burner production process is carried out at Sabaf Brazil, Sabaf Turkey and Sabaf
Turkey.
In Faringosi Hinges S.r.l., in the companies of the C.M.I. Group, MEC and Sabaf Turkey,
steel is used as the main raw material for the production of hinges, and is subjected to a
series of mechanical processing and assembly.
At A.R.C., professional burners are produced mechanical processing and assembly.
Sabaf India and Sabaf China carry out mechanical processing and burner assembly
operations.
Electronic components (boards, timers, etc.) are assembled in Sabaf Turkey and P.G.A.
[E2-1] Policies related to pollution
The Sabaf Group adopts internal policies and procedures to prevent and mitigate impacts
related to air, water and soil pollution, and promptly manage any emergency situations.
The Group's Environmental and Energy Management Policy outlines the commitments
that Sabaf intends to pursue in relation to pollution, such as:
▪ constant monitoring and ensuring compliance of the company's facilities and
operations with regulatory requirements on pollution;
▪ taking preventive measures to reduce air, water and soil pollution by installing
water filtration and treatment systems and containment and isolation facilities;
▪ ensuring the efficiency of the above systems and facilities through their regular
maintenance;
▪ ensuring the efficient and timely management of emergencies relating to possible
contamination of soil, water and/or air pollution through the adoption of
appropriate procedures and information flows;
▪ ensuring and continuously monitoring the compliance of products and raw
materials with regulatory requirements concerning substances of concern and
substances of very high concern.
The commitments outlined in the Environmental and Energy Management Policy aim to
mitigate and/or prevent negative impacts related to pollution (see section
[ESRS 2 SBM-
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86
3] Material impacts, risks and opportunities and their interaction with strategy and
business model)
.
Group companies have procedures in place to ensure the effective management of
pollution prevention and mitigation, as well as compliance with legal requirements.
For details on the implementation, monitoring and enforcement of the Environmental and
Energy Management Policy, please refer to section
[E1-2] Policies related to climate
change mitigation and adaptation.
The Sabaf Group is also committed to minimising the use of substances of concern and
substances of very high concern through regular monitoring of the compliance of its
products and raw materials with regulatory requirements and the adoption of internal
control systems and procedures.
Sabaf products fully comply with the requirements of Directive 2011/65/EU (RoHS
Directive), which tends to limit the use of hazardous substances in the production of
electrical and electronic equipment, and the requirements of Directive 2000/53/EC (End
of Life Vehicles), i.e. the content of heavy metals (lead, mercury, cadmium, hexavalent
chromium) is below the limits set by the Directive and/or any exemptions.
Within the scope of the REACH Regulation (Regulation no. 1907/2006 of 18 December
2006), Sabaf is a downstream user of substances and preparations. The products supplied
by Sabaf are classified as articles that do not give rise to the intentional emission of
substances during normal use, therefore there is no registration of the substances
contained in them. Through its Sustainable Procurement Policy, Sabaf requires its
suppliers to avoid the use of hazardous substances where technically possible or,
conversely, to manage them in accordance with applicable regulations (see further details
on the implementation, monitoring and enforcement of the Sustainable Procurement
Policy in section
[S2-1] Policies related to value chain workers
).
[E2-2] Actions and resources related to pollution
Since 2003, the Environmental Management System of the Ospitaletto production site has
been certified according to ISO 14001. Sabaf Turkey's production sites have been certified
ISO 14001 compliant since 2022 (gas and hinges division production plants) and since
2023 (electronics division production plant in Manisa). The Italian production site of C.M.I.
s.r.l. has been ISO 14001 certified since 2023. These management systems provide for the
prevention and mitigation of environmental impacts within the company's operations, as
well as the definition of improvement pathways aimed at increasing its environmental
performance. The level of ambition is defined by the principle of continuous improvement
in line with the main international environmental standards, and regularly monitored as
outlined in section
[E2-3] Targets related to pollution.
The management of pollution-related impacts is ensured through the constant monitoring
of emissions of pollutants, substances of concern and substances of very high concern in
accordance with relevant regulations, as detailed below. These monitoring and prevention
activities, together with the implementation of management systems, do not entail
significant operating expenses (OpEx) and/or capital expenditures (CapEx) specifically
Sabaf Group | 2025 Report on Operations
87
earmarked for their implementation and are part of the recurring operating costs of Group
companies.
[E2-3] Targets related to pollution
It should be noted that, at the time the 2024-2026 Business Plan was drafted, Sabaf had
not yet identified the materiality of pollution-related impacts, risks and/or opportunities.
Therefore, the Plan does not include any targets associated with this topic. However, the
Group ensures that monitoring processes are in place to verify the effectiveness of the
commitments outlined in its Policies.
The monitoring of environmental impacts (including the monitoring of pollutant
emissions) is conducted in accordance with the relevant regulations of the individual
countries in which the Sabaf Group operates. In accordance with local regulations, Group
companies regularly check the concentration of pollutants, monitor the timing and expiry
dates of existing authorisations, and verify the conformity of abatement plants and their
periodic maintenance.
In the certified Group companies, monitoring is based on management systems involving
periodic checks, internal audits and audits by independent bodies, according to the
principles laid down in the ISO 14001 standard.
Sabaf also involved the suppliers to ensure they fully comply with the REACH Regulation
and ensure compliance with pre-registration and registration obligations for the substances
or preparations they use. The data collected was used to complete the SCIP (Substances
of Concern In Products) database as per the provisions of the ECHA agency.
[E2-4] Pollution of air, water and soil
Pursuant to Annex II of Regulation (EC) No 166/2006 of the European Parliament and of
the Council (E-PRTR), the Sabaf Group is required to declare the quantities of pollutants
exceeding the applicable threshold value. No pollutant emissions above the threshold
value were recorded during the reporting period and, therefore, as required by paragraph
29 of the ESRS
E2-4 - Pollution of air, water and soi
, the figure is not reported.
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88
[E2-5] Substances of concern and substances of very high concern
2025
2024
Substances
of concern
Substances of
very high
concern
Substances
of concern
Substances of
very high
concern
Total quantities of substances of
concern purchased per hazard
class (t)
52
65
28
33
Danger to human health (hazard
class code H3xx) (t)
52
0
28
0
Danger to human health and the
environment (hazard class code
H3xx & H4xx) (t)
0
65
0
33
Total quantities of substances of
concern leaving production
facilities in the form of part
products broken down by
hazard classes (t)
52
65
28
33
Danger to human health (hazard
class code H3xx) (t)
52
0
28
0
Danger to human health and the
environment (hazard class code
H3xx & H4xx) (t)
0
65
0
33
The quantities of substances of concern (SoC) and substances of very high concern (SVHC)
that were purchased were estimated on the basis of the nature and quantity of the materials
purchased and the certifications received from suppliers indicating their chemical
composition.
20
As required by the Reach and RoHS Directives, consideration was only
given to elements present with a concentration above 0.1%. It is estimated that the output
quantities as part of products are equal to the total purchased quantities.
The hazard classes are those listed in the individual substance sheets on the ECHA
website.
20
The trend in the quantities of substances of concern and substances of very high concern stems from a
more analytical assessment of the materials used, which does not apply to 2024.
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ESRS E3 Water
[E3 IRO-1] Description of processes to identify and assess material water-related
impacts, risks and opportunities
As part of the most recent activity of stakeholder engagement, carried out during the
double materiality assessment in 2024, the Technical Office of the Municipality of
Ospitaletto, the HSE Officer of Confindustria Brescia and the certifying body of the
environmental management system, representing the affected communities, were asked
to give an assessment of the water-related impacts.
Consideration was also given to the results of the environmental analysis carried out for
the Sabaf S.p.A. plant, part of the ISO:14001 certified environmental management system.
The industrial operations and related environmental impacts of the Sabaf S.p.A. plant are
representative of the Group's other main production plants, as can be inferred from the
description of production processes in paragraph
[E2 IRO-1] Description of the processes
to identify and assess material pollution-related impacts, risks and opportunities
.
The Group adopts homogeneous technologies for water management in the various plants
where water is used in production processes.
Documents published by rating agencies and international organisations (S&P, MSCI,
World Resources Institute) were also consulted.
The Group has identified as material the current negative impacts related to water
withdrawal and consumption in water-stressed areas in business operations and along the
upstream value chain. With regard to own operations, this issue emerges in relation to
die-casting and enamelling processes, as well as in the washing of semi-finished products.
Along the upstream value chain, water stress is a significant issue for the steel and
aluminium sectors (the main materials supplied by the Sabaf Group) due to the use of water
for cooling and washing in metalworking processes.
Some of the Group's production sites are located in water-stressed areas according to the
Water Risk Atlas of the World Resources Institutes.
[E3-1] Policies related to water
As part of its commitment to the environment, the Sabaf Group adopts internal policies
and procedures that are designed to prevent and mitigate the impacts of water use.
Through its Environmental and Energy Management Policy, the Sabaf Group is committed
to:
▪ constant monitoring and ensuring compliance of the company's facilities and
operations with regulatory requirements on water resources;
▪ rationalising and making efficient use of water resources through the adoption of
systems for recovering industrial water and collecting rainwater for use in business
operations;
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▪ conducting constant monitoring of areas at water risk in the geographical areas
where the Group operates, while ensuring the dissemination of the principles of
rationalisation and efficiency in the use of water resources;
▪ ensuring that wastewater treatment activities are carried out in accordance with
the principles of transparency and fairness and in compliance with applicable
regulations;
▪ limiting and preventing the discharge of pollutants, favouring re-use systems;
▪ ensuring the efficient and timely management of emergencies by defining
intervention procedures in the event of a fault, anomaly or disruption, including
interventions for restoring normal conditions.
The commitments outlined in the Environmental and Energy Management Policy aim to
mitigate and/or prevent negative impacts related to water (see section
[ESRS 2 SBM-3]
Material impacts, risks and opportunities and their interaction with strategy and business
model)
.
Group companies have procedures in place to ensure the effective management of the
prevention and mitigation of impacts relating to the consumption of water resources, as
well as compliance with legal requirements.
For details on the implementation, monitoring and enforcement of the Environmental and
Energy Management Policy, please refer to section
[E1-2] Policies related to climate
change mitigation and adaptation.
Based on its awareness of the negative impacts related to water resources along its value
chain, the Sabaf Group has integrated this topic into its Sustainable Procurement Policy,
in which suppliers are required to design products and processes that minimise water
consumption. Details on the implementation, monitoring and enforcement of the
Sustainable Procurement Policy can be found in section
[S2-1] Policies related to value
chain workers
.
[E3-2] Actions and resources related to water
The Environmental Management Systems of the production sites in Ospitaletto, Sabaf
Turkey (Manisa plants) and C.M.I. are certified according to ISO 14001. These systems
provide for the prevention and mitigation of environmental impacts within the company's
operations, as well as the definition of improvement pathways aimed at increasing its
environmental performance. The level of ambition is defined by the principle of continuous
improvement in line with the main international environmental standards, and regularly
monitored as outlined in section
[E3-3] Targets related to water.
The Sabaf Group manages the negative impacts associated with water withdrawals in
water-stressed areas through the adoption of water collection, treatment and recovery
systems. All the water used in the production processes by Group companies is destined
for disposal or internal recycling for reuse in company processes, with the exception of the
production plant of the gas division in Turkey. In this plant, after pre-treatment, effluents
are routed to a collection and treatment system in the industrial area. Downstream from
the production processes, water used in die-casting and enamelling processes at the plant
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in Ospitaletto is treated in concentration plants, and thanks to its subsequent recovery and
use, there is a significant reduction in both quantities of water required and waste
produced. Concentration plants are also in operation at the production sites in Brazil and
Turkey. At the Ospitaletto plant, there is also a plant for the collection of rainwater
intended for use in industrial activities.
The Group did not carry out remedial actions.
Treatment and recovery activities, as well as monitoring and prevention activities (as
detailed in
[E3-3] Targets related to water
), contribute to the recurring operating costs of
Group companies.
[E3-3] Targets related to water
At the time of drafting the 2024-2026 Business Plan, the Sabaf Group had not yet identified
the materiality of water and marine resources-related impacts, risks and/or opportunities,
with the resulting absence of measurable targets or guidance for this topic going forwards.
However, the Group is committed to ensuring the responsible and sustainable use of water
resources through constant monitoring of the implementation of the commitments
outlined in its Policies.
The Sabaf Group monitors environmental impacts, including water and marine resources-
related indicators, in accordance with applicable legal requirements at all its plants.
Monitoring is based on management systems that include periodic checks, internal audits
and audits by independent bodies in line with the ISO 14001 standard, whose principles
guide monitoring activities and are a source of inspiration for the entire Group.
On an annual basis, Sabaf records the volumes of water withdrawn from aqueducts, wells
and storm water. Furthermore, through its participation in the CDP Water Security
programme, Sabaf is committed to measuring, monitoring and disclosing its performance
in the area of water resources. As part of its participation in the CDP 2025, Sabaf achieved
a score of B-, on a scale ranging from a minimum of D- to a maximum of A.
[E3-4] Water consumption
2025
2024
Total water consumption (m
3
)
16,480
35,837
of which in areas at water risk, including areas of high-water stress (m
3
)
13,061
33,020
Total water recycled and reused (m
3
)
5,037
5,570
Total water stored (m
3
)
19,061
32,777
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Water consumption was calculated as the difference between withdrawals and discharges.
Withdrawals are derived from direct measurements, while discharges were estimated.
21
Areas at water risk, including those with high water stress, were determined according to
the Aqueduct Water Risk Atlas tool that maps and analyses current and future water risks
in all locations. Aqueduct is a data platform operated by the World Resources Institute
(WRI), a non-profit environmental research organisation.
2025
2024
Water intensity – Total water consumption in own operations
(m
³
per million EUR of net revenue)
59
126
Water intensity was calculated by dividing total water consumption by the Group’s net
revenue of €278.2 million for 2025 (€285.1 million for 2024).
The metrics reported in this paragraph are not validated by external bodies.
21
The trend in water consumption reflects an improvement in the method used to estimate discharge
volumes. Applying the new method to 2024 brings the volume of water consumption up to 11,441 m
3
(of
which 8,238 m³ is in water-stressed areas, including those under high water stress), with a water intensity of
40 m³ per million euros of net revenue.
The 2025 volume of stored water was calculated considering the maximum capacity of the tanks; applying
this criterion to 2024 updates the volume to 19,061 m
3
. The change in stored water prior to this modification
would have been -13,716 m
3
, whereas applying the new criterion results in zero variation.
Measured withdrawals for all Group companies, except C.G.D. s.r.l. and Sabaf India.
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ESRS E5 Resource use and circular economy
[E5 IRO-1] Description of processes to identify and assess material resource use
and circular economy-related impacts, risks and opportunities
As part of the most recent activity of stakeholder engagement, carried out during the
double materiality assessment in 2024, the certifying body of the environmental
management system, representing the affected communities, was asked to give an
assessment of the impacts related to resource use and the circular economy.
Moreover, to identify possible impacts, risks and opportunities in the value chain:
▪ an analysis was conducted of the Group's purchases, with a focus on the main
materials purchased (steel and aluminium);
▪ consideration was given to priority impacts identified by international rating
agencies (S&P and MSCI)").
The Group identified:
▪ a negative impact (on the environment and people) related to the generation of
waste during the performance of business operations and along the value chain;
▪ a positive impact relating to the sourcing of raw materials through recovery,
recycling and/or reuse of waste materials in business operations and along the
upstream value chain;
▪ an opportunity arising from the adoption of internal circular models and processes
designed to improve resource efficiency, thereby reducing the costs associated with
procurement and waste disposal.
[E5-1] Policies related to resource use and circular economy
The principle of eco-efficiency, which is central to the Sabaf Group's business model, is
demonstrated primarily in the optimisation of resource use. To this end, the Environmental
and Energy Management Policy, the Sustainable Procurement Policy and internal
procedures of the individual Group companies set out the commitments aimed at
promoting an increasingly circular business model.
The Environmental and Energy Management Policy sets out the following actions:
▪ continuously monitor and ensure compliance of waste management and disposal
activities with current legislation;
▪ reduce the amount of waste generated during business operations and improve its
quality in terms of hazardousness and recoverability;
▪ minimise the amount of waste destined for disposal through proper separation of
collection streams and, where applicable, by directing suitable industrial waste to
reclamation and recycling operations;
▪ ensure the responsible management and disposal of hazardous waste, in
accordance with regulatory requirements;
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▪ adopt principles optimising the use of resources during business operations;
▪ limit the procurement of virgin raw materials by purchasing, where possible,
recycled secondary raw materials;
▪ adopt principles of sustainable sourcing and use of renewable raw materials used
for packaging;
▪ promote policies of responsible waste management and efficient use of resources
in the value chain.
The commitments defined in the Environmental and Energy Management Policy aim to
mitigate and/or prevent the negative impacts and material risks, while pursuing the
positive impacts and opportunities associated with the topic of the circular economy (see
section
[ESRS 2 SBM-3] Material impacts, risks and opportunities and their interaction
with strategy and business model)
.
Group companies have procedures in place to ensure effective management of the
prevention and mitigation of impacts related to resource use and waste disposal, as well
as compliance with legal requirements.
For details on the implementation, monitoring and enforcement of the Environmental and
Energy Management Policy, please refer to section
[E1-2] Policies related to climate
change mitigation and adaptation.
With the Sustainable Procurement Policy, the Sabaf Group requires suppliers to:
▪ commit to optimising the use of natural resources;
▪ suggest the adoption of alternative products and processes with a reduced
environmental impact along their life cycle such as, for example, secondary raw
materials (i.e. recycled raw materials) based on circular economy principles;
▪ manage the treatment and disposal of waste appropriately and in accordance with
current regulations, minimising the generation of waste for disposal.
Details on the implementation, monitoring and enforcement of the Sustainable
Procurement Policy can be found in section
[S2-1] Policies related to value chain workers
.
[E5-2] Actions and resources related to resource use and the circular economy
The Environmental Management Systems of the production sites in Ospitaletto, Sabaf
Turkey (Manisa plants) and C.M.I. (Italian plant) are certified to ISO 14001. These
management systems provide for the prevention and mitigation of environmental impacts
within the company's operations, as well as the definition of improvement pathways aimed
at increasing its environmental performance. The level of ambition is defined by the
principle of continuous improvement in line with ISO standards for Group companies
whose management systems are certified and regularly monitored, as outlined in
[E5-3]
Targets related to resource use and circular economy.
The efficient use of resources is the basis for decisions determining product development
and optimisation of production processes. Trimmings and waste from the production
process are identified and collected separately for recycling or disposal. All risers deriving
from aluminium die-casting are intended for direct internal reuse.
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95
Sabaf S.p.A. made an investment of €87,000 (CapEx) during 2025 for the modification of
the storage tanks for the special liquid waste produced by the enamelling department, with
the aim of reducing the annual waste production.
The monitoring and implementation of management systems are part of the recurring
operating costs of Group companies.
In relation to resource inflows, when this is technically possible and economically viable,
he Sabaf Group favours the purchase of secondary raw materials that have been reclaimed
or recycled, as outlined in section
[E5-4] Resource inflows
.
[E5-3] Targets related to resource use and circular economy
The Sabaf Group verifies the effectiveness of its policies and, in particular, the
commitments set out in the Environmental and Energy Management Policy and detailed
in section
[E5-1] Policies related to resource use and circular economy
through the
constant monitoring of resource inflows and outflows, as well as waste streams from
operations. The Sabaf Group also monitors incoming resources through the identification
of circularity-related performance indicators, such as percentages of secondary raw
materials and shares of renewable and non-renewable resources. In addition, on an annual
basis Sabaf monitors the waste generated by its production processes, as well as its
composition and destination, with particular regard to to quantities sent for recovery
and/or reuse.
In general, the Sabaf Group ensures the monitoring of environmental impacts (including
waste-related impacts) by constantly assessing compliance with current regulations in all
the production plants in which it operates, through the adoption of management systems
that provide for periodic checks, internal audits and audits by independent bodies
according to the principles set out in the ISO 14001 standard.
The Sabaf Group has not set any measurable, results-oriented targets in relation to
resource use and the circular economy, nor has it issued guidance for this topic going
forwards.
The metrics reported in the following sections are not validated by external bodies.
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96
[E5-4] Resource inflows
2025
2024
Resource inflows (t)
Used
of which from
recycled
Used
of which from
recycled
Raw Materials
32,300
17,363
39.6%
32,021
17,352
43.0%
Steel
21,097
7,316
16.7%
21,607
7,944
19.7%
Aluminium alloys
10,546
9,425
21.5%
9,877
8,893
22.0%
Brass
643
622
1.4%
527
515
1.3%
Other
14
-
0.0%
10
-
0.0%
Semi-finished goods or purchased
components
8,610
257
0.6%
5,281
333
0.8%
Iron and steel components
7,192
1
0.0%
3,962
2
0.0%
Enamel
333
-
0.0%
353
-
0.0%
Brass components
238
145
0.3%
181
171
0.4%
Electrical and electronic components
210
-
0.0%
208
-
0.0%
Cast iron components
209
111
0.3%
285
157
0.4%
Thermoelectric safety components
143
-
0.0%
146
-
0.0%
Aluminium alloy components
120
-
0.0%
24
3
0.0%
Plastic components
98
-
0.0%
86
-
0.0%
Components in mixed materials
67
-
0.0%
36
-
0.0%
Associated process materials
585
-
0.0%
654
-
0.0%
Lubricants/Oils/Grease
297
-
0.0%
312
-
0.0%
Release agent for foundry
155
-
0.0%
202
-
0.0%
Blasting grit
81
-
0.0%
100
-
0.0%
Solvents/Detergents
43
-
0.0%
32
-
0.0%
Other
9
-
0.0%
8
-
0.0%
Packaging
2,301
949
2.2%
2,425
1,117
2.8%
Wood
1,029
1
0.0%
1,073
15
0.0%
Cardboard
937
666
1.5%
956
749
1.9%
Plastic
335
282
0.7%
396
353
0.9%
Total
43,796
18,569
42.4%
40,381
18,802
46.6%
It should be noted that from the end of 2023, Sabaf S.p.A. introduced the use of organic
oils to replace mineral oils in metalworking lathes (73 tonnes in 2025, representing 24% of
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97
the category “Lubricants/Oils/Grease” and 0.17% of the total; 54 tonnes in 2024,
representing 17% of the category “Lubricants/Oils/Grease” and 0.13% of the total).
The figure for material quantities is obtained directly from the management systems: for
components and raw materials the weight of the material consumed is indicated, while for
packaging and associated process materials the weight of the material purchased is
indicated.
22
The recycled content of individual materials is determined according to the following
approach: the preferred source is a third-party certification or a self-declaration by the
supplier. Where such documents are not available, the Group estimates the recycled
content on the basis of the material's similarity to others for which data is available. The
Group is working to have third-party certificates or self-declarations from as many
suppliers as possible in the future in order to minimise the use of estimated data.
[E5-5] Resource outflows
Products and materials
Expected durability of products
The Sabaf Group produces components (gas components, hinges, electronic components,
induction cooking components) for installation in domestic appliances. To date, there is
no agreed benchmark to determine the durability of a household appliance and thus its
components.
Repairability of products
There is no system for assessing the repairability of components produced by the Sabaf
Group.
Product recyclability
All raw materials used by the Sabaf Group in the production of components are considered
100% recyclable. However, the assessment of the recyclable content rate cannot disregard
multiple factors that significantly influence the actual recyclability of products, such as the
separability of components from the final product, end-of-life management by the user, the
availability of efficient collection systems and effective recycling technologies in the
geographical areas where products are disposed of. The same applies to materials used in
packaging (wood, cardboard and plastic).
22
Certain pressed steel components, which were classified as raw materials in 2024, have been classified in
this report as components under the heading “Iron and steel components".
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Waste
2025
2024
Total amount of waste generated (t)
12,997
12,989
Hazardous waste diverted from disposal (t)
686
459
preparation for reuse (t)
0
0
recycling (t)
0
0
other recovery operations (t)
686
459
Non-hazardous waste diverted from disposal (t)
9,694
9,539
preparation for reuse (t)
0
98
recycling (t)
3,357
3,019
other recovery operations (t)
6,337
6,422
Hazardous waste directed to disposal
2,131
2,514
incineration (t)
0
0
landfill (t)
136
235
other disposal operations (t)
1,995
2,279
Non-hazardous waste directed to disposal (t)
486
477
incineration (t)
0
0
landfill (t)
229
150
other disposal operations (t)
257
327
Non-recycled waste (t)
2,617
2,991
Percentage of non-recycled waste (%)
20%
23%
Hazardous waste (t)
2,817
2,973
Radioactive waste (t)
0
0
The most significant waste streams for the Sabaf Group's production sites are waste from
metal processing (metal waste, emulsions, sludge and dusty waste) and packaging
materials.
80% of the waste produced in 2025 is destined for recovery (77% in 2024).
Data are obtained from direct measurements, such as waste transfer documents.
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S - Information on social aspects
ESRS S1 Own workforce
[S1 SBM-3] Material impacts, risks and opportunities and their interaction with
strategy and business model
As part of its double materiality assessment, the Sabaf Group has identified negative
impacts, positive impacts, risks and opportunities associated with its own workforce, as
outlined in section
[ESRS 2 SBM-3] Material impacts, risks and opportunities and their
interaction with strategy and business model
. All identified impacts derive from the
Group's business model and, at the same time, guide its strategic decisions, in particular
in terms of the the pursuit of positive impacts and the prevention and/or mitigation of
negative ones. The impacts identified consider the entire workforce of the Group, i.e.
employees who have an employment relationship with Group companies and non-
employee workers, such as self-employed workers and temporary workers provided by
third-party companies engaged in recruitment, selection and staffing activities.
Material negative impacts refer to the occurrence of occupational injuries and illnesses in
the course of business operations (actual impact), potential incidents of discrimination
related to gender, sexual, religious and/or political orientation, ethnic origin or social and
personal conditions, as well as potential incidents of discrimination related to gender pay
equality (potential impacts). These negative impacts are not systemic, and are instead
limited to the occurrence of individual events.
Positive impacts include adequate remuneration through the application of local national
contracts supplemented by any better bargaining agreements (actual impact). The Sabaf
Group guarantees the right to a fair wage and offers supplementary agreements that
contribute to the improvement of the economic conditions of its workforce. Another
positive impact relates to the dissemination of a corporate culture that promotes the well-
being of workers and enables a work-life balance (actual impact), through monitoring and
acknowledging feedback within the scope of employee satisfaction surveys and the
analysis of corporate climate, the introduction of flexible working hours, as well as
maintaining a constant dialogue with trade union organisations. Finally, Sabaf has
identified among the positive impacts the improvement of employees' personal and
professional skills through the adoption of training plans and initiatives (actual impact). In
the Sabaf Group, the professional growth of employees is supported by continuous
training. After consulting the relevant managers and taken note of training needs, the
Group's Human Resources Department draws up annual training plans for the scheduling
of professional training courses. The positive impacts described benefit the Group’s entire
workforce.
With regard to financial materiality, the Group has identified an inherent risk related to
security incidents/accidents. The Group also identifies inherent risks associated with the
loss of key personnel for Sabaf’s business. The risks related to the loss of know-how derive
from a business model based on the importance of having the specialised technical
expertise required to implement the Group’s strategies.
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The Group has identified an opportunity related to the utilisation of specialised skills for
potential entry into sectors/markets other than household appliances and the creation of
new professional roles to facilitate the spread of new and broader skills. Another
opportunity identified is related to the dissemination of a safety culture that contributes to
its corporate reputation.
Sabaf has not identified specific groups of workers who might be more vulnerable to risks
and/or benefit from the material opportunities it has identified.
As part of the double materiality assessment, Sabaf did not identify any impacts on its own
workforce that may result from transition plans to reduce negative environmental impacts
and/or implement greener or climate-neutral operations. Finally, Sabaf has not identified
any activities with a significant risk of child, forced or compulsory labour within its
operations.
[S1-1] Policies related to own workforce
The Sabaf Group considers the development of individuals as a founding element of its
business model. From the perspective of sustainable and socially responsible growth, the
Group has developed and adopted a governance system that guarantees and promotes
appropriate working conditions, including adequate remuneration, health and safety at
work, respect for human rights, equality and non-discrimination, professional growth and
the well-being of its workforce.
The Sabaf Group’s Charter of Values sets out the values, rules of conduct and
commitments in relations with stakeholders, including the Sabaf workforce. In relation to
its employees, meaning everyone with a relationship of subordination or collaboration with
the Group, the Charter of Values pursues the development of human capital through
opportunities for professional growth, continuous learning and an inclusive, fair and
discrimination-free working environment. The Charter promotes respect for human rights
and has a significant focus on health and safety at work, through minimising risks and
maintaining a safe working environment for all. The Group is also committed to
maintaining transparency in communication, promoting a dialogue with and involving
employees in decision-making processes, while complying with current labour, safety and
data protection regulations.
The Charter of Values was prepared and published the Charter of Values, prepared in
accordance with the existing national and international regulatory principles, guidelines
and documents with regard to human rights of corporate social responsibility and
corporate governance. Specifically, the Charter refers to:
▪ the United Nations’ Charter of Rights, the European Union’s Charter of Rights, the
Italian Constitution;
▪ the core labour standards included in the ILO conventions;
▪ the OECD Guidelines for Multinational Enterprises;
▪ the UN Global Compact, which Sabaf participates in.
The Parent Company's Board of Directors is responsible for promoting the dissemination
and knowledge of the Charter of Values within the Group, and for approving its review.
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The extent to which the Charter of Values is implemented and adhered to within the Group
is monitored by the parent company’s management and supervisory bodies. Furthermore,
where deemed necessary or in the event of suspected breached of the contents and duties
laid down in the Charter, they may involve the Internal Audit function to conduct relevant
investigations. Using the applicable channels for individual Group companies, any Sabaf
Group stakeholder may also report cases of alleged non-compliance with the Charter by
sending a written and non-anonymous description of the alleged incident. Where no
channel is provided, stakeholders may use the whistleblowing channel adopted by Sabaf
S.p.A., through the dedicated tool available on the company website.
The Sabaf Group has also adopted a Social Policy based on the values and principles of
the Charter of Values, and the main national and international regulations, guidelines and
documents on human rights, corporate social responsibility and corporate governance.
The Parent Company's Board of Directors is responsible for the approval, implementation
and periodic review of the Sabaf Group's Social Policy. Within its workforce - covering
both employees and non-employee workers - through the Policy, Sabaf is committed to
the following objectives:
▪ guaranteeing secure employment, adequate working hours and competitive
remuneration, through the signing of local national contracts supplemented by any
more favourable bargaining agreements in all Group companies and by
implementing remuneration providing workers with economic and professional
satisfaction;
▪ guaranteeing freedom of association and promoting workers' rights to information,
consultation and participation through a dialogue with trade union representatives;
▪ ensuring a healthy and safe working environment, through the adoption of
procedures and management systems to prevent and minimise occupational
accidents and illnesses, and promoting and disseminating a work culture based on
health and safety in all Group companies;
▪ guaranteeing and promoting respect for human rights, as defined in the principles
set out in the United Nations Global Compact, the Code of Conduct of APPLiA
Europe (the European Home Appliances Association) and the "core labour
standards" of the ILO conventions, including the absence of child labour
23
, forced
or compulsory labour and human trafficking in all companies in which the Group
operates;
▪ not tolerating any form of discrimination or harassment on the grounds of racial or
ethnic origin, colour, sex, sexual orientation, gender identity, disability, age,
religion, political opinion, national ancestry or social background, as well as any
other form of discrimination covered by EU law and the national law of the
countries in which the Group operates;
▪ adopting criteria of merit and competence in employment relationships, based also
on the achievement of collective and personal objectives;
23
Unless local legislation establishes a higher age limit, no person younger than the age for completing
compulsory schooling or younger than 15 may be employed.
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▪ promoting and guaranteeing equal pay and the absence of favouritism linked to
gender and any other form of diversity or minority;
▪ promoting participation in training and empowerment initiatives in all areas useful
for the professional growth and development of workers' skills;
▪ promoting initiatives and working conditions aimed at respecting the balance
between personal and working life;
▪ providing communication channels that allow reporting any form of violation of the
above principles, guaranteeing the anonymity of the reporting party and the taking
of the necessary remedial action;
▪ enhancing the contribution of human capital in decision-making processes, through
constant dialogue with employees and by conducting periodic surveys such as the
company climate analysis.
The commitments outlined in the Charter of Values and the Social Policy aim to prevent
and/or mitigate negative impacts and material risks while pursuing positive impacts and
opportunities associated with the topic of own workforce (see section
[S1 SBM-3] Material
impacts, risks and opportunities and their interaction with strategy and business model
).
The Charter of Values and the Social Policy apply to the entire Sabaf Group, with no
exceptions and/or exclusions in the conduct of business and professional activities by
geographical area, country and/or stakeholder groups involved. In addition, the Sabaf
Group expects the entire value chain to agree with and act in accordance with the
applicable principles.
The recipients of the Charter of Values and the Social Policy are members of the
company's governing and supervisory bodies, internal employees/collaborators and any
third parties who collaborate with or work for and on behalf of the Sabaf Group, regardless
of the legal status of the relationship.
The Charter of Values and Social Policy are made available to all stakeholders of the Sabaf
Group on the corporate website (www.sabafgroup.com) in the section “Sustainability”. The
values, rules of conduct and commitments set out in the Charter of Values and Social
Policy are communicated to employees during their recruitment and integrated into the
corporate culture. The implementation of the requirements contained in the Charter of
Values and the Social Policy is periodically audited by the Internal Audit function.
In addition to the health and safety provisions set forth in the Charter of Values and the
Social Policy, Sabaf S.p.A. has adopted and maintains in place an integrated Health and
Safety, Environment and Energy management system certified in accordance with ISO
45001, ISO 14001 and ISO 50001. In addition to Sabaf S.p.A. (certified in 2017), C.G.D.
S.r.l., Faringosi Hinges s.r.l. and C.M.I. s.r.l., adopt a health and safety management system
has been certified according to ISO 45001 since 2020, 2021 and 2022, respectively. The
management systems of the other Group companies are not certified. Nevertheless, the
coordination at central level directs all companies towards a shared approach and
methodology.
Through the implementation of its policies, the Sabaf Group ensures compliance with the
labour laws in the various countries in which it operates, and the conventions of
International Labour Organisation (ILO) on Workers' Rights (freedom of association and
collective bargaining, consultation, right to strike, etc.), while systematically promoting
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103
dialogue between the parties and sharing of company strategies by the personnel. In the
event of a violation of these principles, including those outlined in the Charter of Values
and the Social Policy, the competent functions holding disciplinary power are responsible
for implementing the appropriate disciplinary measures.
Sabaf S.p.A. has personnel management procedures and protocols, which were drafted by
the Group's Human Resources Director and apply to employees and non-employee
workers, that ensure the fulfilment of the commitments set out in the Social Policy and the
Charter of Values relating to non-discrimination, fairness in remuneration, management of
working time and workers' remuneration.
[S1-2] Processes for engaging with own workforce and workers' representatives
about impacts
As already introduced in section
[ESRS 2 SBM-2] Interests and views of stakeholders
, the
Sabaf Group periodically conducts engagement activities with employees and their
representatives to gather perspectives and opinions to guide the business model in its
relationship with stakeholders. These processes also provide a better understanding of the
perspectives of own workers who may be particularly vulnerable (e.g. women, migrants,
people with disabilities). Specifically, the Group’s own workforce is involved through:
▪ surveys analysing corporate climate, which are addressed to workers and
conducted every three years. The implementation and analysis of the results are
delegated to the Group Human Resources Department. The most recent workplace
climate survey was launched at the end of 2024, involving all Sabaf Brazil
employees, and will continue in 2025 with the Italian companies. The results of this
latest survey show that 74% of staff gave positive feedback, confirming a trend of
continuous improvement. Key strengths include workplace safety, a sense of
belonging and pride in one’s company, the feeling of possessing the necessary skills
to perform one’s role, and a high level of satisfaction with one’s day-to-day work.
The analysis also highlights areas where further progress can be made, particularly
in the dissemination and sharing of information and in the clarity and transparency
of the evaluation criteria; these are aspects on which the Group intends to continue
working, drawing on the insights gained from the survey;
▪ the constant dialogue with trade union representatives, which is continuously
managed by the Human Resources Department;
▪ stakeholder engagement activities conducted as part of the double materiality
assessment, in which a sample of the Group's employees (including their
representatives) are involved in assessing the impacts on the Group’s own
workforce and corporate governance. Involvement is initiated by Sabaf S.p.A.
management and coordinated by the Reporting Officer;
▪ the sharing of the sustainability statement with workers and their representatives,
on an annual basis, by the management of Sabaf S.p.A.
In some Group companies, there are also channels for workers to provide input and
suggestions aimed at improving certain aspects of the organisation of the business, which
are systematically analysed by the respective departments.
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[S1-3] Processes to remediate negative impacts and channels for own workforce
to raise concerns
Sabaf identified the occurrence of occupational injuries and illnesses as a major actual
impact on its workforce. The health and safety management systems adopted by individual
Group companies define prevention and remedial actions, including the maintenance of
adequate operating procedures and instructions for carrying out company activities,
regular training updates, and the use of prevention systems.
In order to monitor and remedy the potential occurrence of other negative impacts on its
workforce, in particular those related to incidents of discrimination (as reported in section
[S1 SBM-3] Material impacts, risks and opportunities and their interaction with strategy
and business model
), the Sabaf Group provides various channels to communicate
concerns and/or critical issues. Some Italian companies (Sabaf S.p.A, Faringosi Hinges,
C.M.I. and C.G.D.) adopt a Whistleblowing Reporting Procedure through a dedicated
channel accessible by employees, who receive specific training on the subject. From 2025
onwards, this reporting option has also been extended to Sabaf Brazil. This Procedure
guarantees the confidentiality of the identity of whistleblowers, and persons involved in
and/or mentioned in reports. Further information on the application of the Procedure and
the handling of reports can be found in section
[G1-1] Business conduct policies and
corporate culture
.
It should be noted that a serious accident occurred at C.G.D. s.r.l. in 2024, resulting in the
loss of an employee's left hand. In view of the seriousness of the accident, the Board of
Directors of C.G.D. resolved to update its 231 Model and relevant implementation
protocols (procedures and operating instructions), and resolved that all personnel,
especially plant personnel, must undergo new 231 training cycles and new verification
tests. The Board of Directors of C.G.D. also recommended strengthening further the
internal reporting system by encouraging employees to report any
anomalies/irregularities. The actions taken by C.G.D. are in line with the policies adopted
by the Sabaf Group, which has always retained the utmost focus on full compliance with
health and safety regulations. Following investigations by the relevant authorities, the
company’s senior management has been cleared of any responsibility in connection with
the incident.
[S1-4] Taking action on material impacts on own workforce, and approaches to
managing material risks and pursuing material opportunities related to own
workforce, and effectiveness of those actions
Mitigation and prevention of risks and material negative impacts
In order to mitigate risks, and prevent and/or remedy material negative impacts on its
own workforce, Sabaf adopts a series of internal controls, policies and procedures
involving all relevant stakeholders. Specifically, the Group applies and disseminates
specific provisions relating to working conditions, health and safety, equality and non-
discrimination, as described in section
[S1-1] Policies related to own workforce
. The
safeguards in place, including the health and safety management systems adopted by
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105
Group companies, provide for specific corrective actions to be taken in the event of
violations and/or the occurrence of negative impacts on its workforce. Conduct that could
cause risks to the health and safety of the workforce is punished in accordance with the
provisions in force.
As outlined above, the management of the material impacts and risks associated with its
own workforce is part of the Sabaf Group's recurring operating expenses (OpEx).
Pursuit of opportunities and material positive impacts
Opportunities related to own workforce are pursued through business benefits, employee
incentives and further specific initiatives.
As part of the achievement of the positive impacts associated with remuneration, Sabaf
S.p.A. provides a variable performance bonus for all employees based on quality and
productivity indices, the benefits of which may also be accessed as company welfare.
Similar awards are in place at other Group companies.
A further positive impact relates to the promotion of a corporate culture that supports
employees’ well-being: to this end, flexible working hours designed to improve work-life
balance were rolled out across the Group in 2025.
The constant improvement of the skills of its own workforce - which has been identified
as a material positive impact - is pursued through the Group’s numerous training activities.
During 2025, specific training programmes covered health and safety at work (beyond the
legal requirements), cybersecurity, whistleblowing and the 231 Model.
From 2024, Sabaf S.p.A. began implementing a structured skills assessment system, which
will be fully operational from 2026.
In order to pursue the opportunities associated with the attraction and retention of talent,
in 2025 Sabaf renewed their participation in the second edition of "
Domani Lavoro
” (Work
tomorrow), an employment trade fair in Brescia, where the company had the opportunity
to meet numerous candidates. During the year, initiatives continued to promote
professional growth through opportunities for intra-group experience, including
international experience.
The Sabaf Group has put in place the '
Cresciamo insieme
’ (let’s grow together) training
project, dedicated to the professional development of young talent.
The actions described in this section do not envisage a specific time horizon as they are of
an ongoing nature do not entail significant operating expenses (OpEx) and/or capital
expenditures (CapEx) specifically earmarked for their implementation and are part of the
recurring operating costs of Group companies.
The effectiveness of the above actions is periodically assessed through employee
satisfaction surveys and the corporate climate analysis illustrated in section
[S1-2]
Processes for engaging with own workforce and workers' representatives about impacts
,
as well as through the monitoring of training and health and safety targets and objectives
associated with the LTI plan and illustrated in section
[ESRS 2 GOV-3] Integration of
sustainability-related performance in incentive schemes.
These tools make it possible to
collect feedback on the working environment, employee well-being, training, skills
assessment, and internal communication.
The monitoring of the effectiveness of actions and policies on own workforce is also made
possible through a constant dialogue with workers.
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106
Through the adoption of procedures and management systems, in compliance with
applicable laws, Sabaf regularly monitors trends for occupational injuries and illnesses.
Finally, Sabaf monitors and manages the reports it receives through the whistleblowing
system.
[S1-5] Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
A Long-Term Incentive Plan (LTIP) is in place for the period 2024-2026 for executive
directors (CEO and CFO), executives with strategic responsibilities and managers
identified by the CEO from among those who report directly to the CEO or who in turn
report to the aforementioned managers.
The LTIP governs the requirements for the disbursement of a bonus to beneficiaries upon
the achievement, in whole or in part, of predetermined, measurable financial and
sustainability performance targets linked to the creation of shareholder value over a
medium-term horizon.
The Incentive Plan is linked to the achievement of targets for three-year performance
indicators (KPIs), including sustainability targets. With reference to the Group’s own
workforce, the targets concern human resources training (hours provided per capita) and
occupational safety (accident indicator considering severity and frequency).
The features of the Long-Term Incentive Plan (LTIP) are discussed in more detail in the
section
[ESRS 2 GOV-3] Integration of sustainability-related performance in incentive
schemes
.
The Group has not set any other measurable, results-oriented targets for its own
workforce, or guidance for this topic going forwards.
To date, the level of ambition that Sabaf sets itself corresponds, to compliance with current
regulations and international standards on health and safety, working conditions, adequate
wages, and respect for workers' rights and human rights, which the form the basis for the
principles of conduct and commitments outlined in its policies.
The metrics reported in the following sections were acquired directly from the Group's
information systems and not validated by external bodies.
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107
[S1-6] Characteristics of employees
Number of employees by gender
Number of employees
(head count)
Gender
2025
2024
Male
983
947
Female
634
623
Other
24
0
0
Not disclosed
0
0
Total employees
1,617
1,570
The methodology used to calculate the number of employees is the headcount at the end
of the reporting period (31 December).
Number of employees by country
Number of employees
(head count)
Country
2025
2024
Italy
687
665
Turkey
463
498
USA
181
152
Brazil
120
108
Mexico
73
66
Poland
64
59
India
20
15
China
9
7
Total
1,617
1,570
24
Gender as specified by the employees themselves.
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108
Number of employees by type of contract, broken down by gender
2025
2024
Female
Male
Other
Not disclosed
Total
Female
Male
Other
Not disclosed
Total
Number of employees
(head count)
634
983
0
0
1,617
623
947
0
0
1,570
Number of permanent employees
(head count)
609
973
0
0
1,582
606
933
0
0
1,539
Number of temporary employees
(head count)
25
10
0
0
35
17
14
0
0
31
Number of non-guaranteed hours employees
(head count)
0
0
0
0
0
0
0
0
0
0
Number of full-time employees
(head count)
572
974
0
0
1,546
561
932
0
0
1,493
Number of part-time employees
(head count)
62
9
0
0
71
62
15
0
0
77
Number of employees by type of contract, broken down by country
2025
Italy
Turkey
USA
Brazil
Mexico
Poland
India
China
Total
Number of employees
(head count)
687
463
181
120
73
64
20
9
1,617
Number of permanent employees
(head count)
684
463
181
120
73
36
20
5
1,582
Number of temporary employees
(head count)
3
0
0
0
0
28
0
4
35
Number of non-guaranteed hours employees
(head count)
0
0
0
0
0
0
0
0
0
Number of full-time employees
(head count)
622
463
181
114
73
64
20
9
1,546
Number of part-time employees
(head count)
65
0
0
6
0
0
0
0
71
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109
2024
Italy
Turkey
USA
Brazil
Mexico
Poland
India
China
Total
Number of employees
(head count)
665
498
152
108
66
59
15
7
1,570
Number of permanent employees
(head count)
660
498
152
108
66
33
15
7
1,539
Number of temporary employees
(head count)
5
0
0
0
0
26
0
0
31
Number of non-guaranteed hours employees
(head count)
0
0
0
0
0
0
0
0
0
Number of full-time employees
(head count)
605
498
135
108
66
59
15
7
1,493
Number of part-time employees
(head count)
60
0
17
0
0
0
0
0
77
Total number of employees who left the company during the reporting period and turnover
rate
The following table shows the number of employees terminated voluntarily or
involuntarily.
2025
2024
Number of employees terminated
(head count)
337
518
Number of employees
(head count)
1,617
1,570
Turnover rate
21%
33%
Turnover is calculated as the number of employees who voluntarily or involuntarily left
the Sabaf Group during the year out of the total number of employees as at 31 December.
In Note 28
to the Consolidated Financial Statements, the personnel costs for the year 2025
are detailed.
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110
[S1-7] Characteristics of non-employees in own workforce
2025
2024
Number of non-employee workers
(head count)
121
149
of which self-employed
5
2
of which workers provided by employment
agencies
116
147
The methodology used to calculate the number of non-employee workers is the headcount
as at 31 December.
[S1-8] Collective bargaining coverage and social dialogue
2025
2024
Collective
bargaining
coverage
Social dialogue
Collective
bargaining
coverage
Social dialogue
Coverage rate
Employees - EEA
(for countries with
> 50 employees
representing > 10
% of total
employees)
Workplace
representation
(EEA only) (for
countries with > 50
employees
representing > 10
% of total
employees)
Employees - EEA
(for countries with
> 50 employees
representing > 10
% of total
employees)
Workplace
representation
(EEA only) (for
countries with > 50
employees
representing > 10
% of total
employees)
0-19%
20-39%
40-59%
60-79%
80-100%
Italy
Italy
Italy
Italy
Coverage rate
100%
100%
100%
98%
The Group uses phase-in for this metric and therefore does not report information for
employees outside the European Economic Area.
[S1-9] Diversity metrics
Gender distribution among members of top management
2025
2024
Gender
Number
%
Number
%
Female
3
10%
2
7%
Male
28
90%
28
93%
Other
0
0%
0
0%
Not reported
0
0%
0
0%
Total top management
31
100%
30
100%
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111
All first levels of reporting to the administrative bodies are considered 'top management'.
Age and gender distribution of employees
2025
< 30 years old
30-50 years old
> 50 years old
Total
Number
%
Number
%
Number
%
Number
%
Female
106
7%
393
24%
135
8%
634
39%
Male
180
11%
596
37%
207
13%
983
61%
Other
0
0%
0
0%
0
0%
0
0%
Not reported
0
0%
0
0%
0
0%
0
0%
Total
employees
286
18%
989
61%
342
21%
1,617
100%
2024
< 30 years old
30-51 years old
> 50 years old
Total
Number
%
Number
%
Number
%
Number
%
Female
113
7%
384
25%
126
8%
623
40%
Male
194
12%
562
36%
191
12%
947
60%
Other
0
0%
0
0%
0
0%
0
0%
Not reported
0
0%
0
0%
0
0%
0
0%
Total
employees
307
19%
946
61%
317
20%
1,570
100%
[S1-10] Adequate wages
All Sabaf Group employees receive an adequate salary, in line with the applicable
benchmarks.
Within the European Economic Area (EEA), the definition of an adequate wage refers to
the minimum wage established in accordance with Directive (EU) 2022/2041 of the
European Parliament and of the Council on adequate minimum wages in the European
Union.
Outside the EEA, the benchmark corresponds to the different wage levels established by
existing international, national or sub-national legislation, official regulations or collective
agreements.
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[S1-13] Training and skills development metrics
Periodic review of performance and career development
In 2024, the Sabaf Group started to implement a structured system for the assessment of
performance and competences. Analyses and evaluations are conducted on transversal
competences (communication and listening, flexibility to change, teamwork, continuous
improvement and proactivity, planning and organisation, result orientation), managerial
competences (for managerial roles only: coaching, decision-making skills, delegation,
leadership and team management) and technical competences (specific to each role). At
Sabaf S.p.A., this system will be fully operational from 2026.
The Group made use of phase-in with regard to this metric.
Average number of training hours per employee and gender
2025
Employees
Non-employee workers
Number of
training hours
Average number
of training hours
Number of
training hours
Average number
of training hours
Female
12,613
20
1,560
31
Male
26,868
27
5,957
84
Other
0
0
0
0
Not reported
0
0
0
0
Total
39,481
24
7,517
62
2024
Employees
Non-employee workers
Number of
training hours
Average number
of training hours
Number of
training hours
Average number
of training hours
Female
11,563
19
1,843
29
Male
24,765
26
5,438
64
Other
0
0
0
0
Not reported
0
0
0
0
Total
36,328
23
7,281
49
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113
[S1-14] Health and safety metrics
2025
2024
Employees
Non-
employee
workers
Total
Employees
Non-
employee
workers
Total
Percentage of own
workers covered
by a health and
safety
management
system according
to legal
requirements
and/or recognised
standards or
guidelines
100%
100%
100%
100%
100%
100%
Number of
fatalities as a
result of work-
related injuries and
work-related ill
health
0
0
0
0
0
0
Number of
recordable work-
related accidents
25
42
3
45
26
2
28
Hours worked
2,859,125
245,979
3,105,104
2,798,344
246,438
3,044,782
Rate of recordable
work-related
accidents
15
12
14
9
8
9
Number of cases of
recordable work-
related ill health
2
0
2
0
0
0
Number of days
lost to work-
related injuries and
fatalities from
work-related
accidents, work-
related ill-health
and fatalities from
ill health
26
408
34
442
1,128
76
1,204
25
Recordable injury: work-related injury that causes one of the following consequences:
i. death, days away from work, work restriction or transfer to another job, medical treatment beyond first aid
or loss of consciousness; or
ii. serious injury, even if not resulting in death, days off work, work restriction or transfer to another job,
medical treatment beyond first aid or loss of consciousness.
26
The days lost in 2024 have been recalculated due to two injuries carrying over into 2025. Please note that
days lost due to an occupational illness are counted from the date on which the illness is recognised, and
only if the absence is directly attributable to the diagnosed condition.
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114
[S1-15] Work-life balance metrics
2025
2024
Female
Male
Other
Not
reported
Total
Female
Male
Other
Not
reported
Total
Percentage of
employees entitled to
take family-related
leave
100%
100%
0%
0%
100%
98%
98%
0%
0%
98%
Percentage of entitled
employees who took
family-related leave
18%
13%
0%
0%
15%
12%
10%
0%
0%
11%
[S1-16] Remuneration metrics (pay gap and total remuneration)
2025
2024
Gender pay gap
14%
24%
Annual total remuneration ratio of the highest paid individual to the
median annual total remuneration for all employees (excluding the
highest-paid individual)
25
48
The calculation of the remuneration metrics includes all employees in force as at 31
December (for part-time employees, full-time equivalent pay rates were used and for
employees hired during the year, the amounts were annualised).
The gender pay gap, defined as the difference between the average pay levels paid to
female and male workers, is expressed as a percentage of the average pay level of male
workers.
The remuneration used as a reference for the calculation of the ratio between the total
annual remuneration of the highest paid individual and the total annual median
remuneration of all employees (excluding the highest paid individual) is that of the CEO of
Sabaf S.p.A. and includes the gross fixed component and the gross variable short-term and
long-term components.
The change in the metrics shown in the table compared with 2024 is due to the payment
in 2024 of incentives linked to the 2021–2024 LTI Plan.
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[S1-17] Incidents, complaints and severe human rights impacts
During 2025, there were no incidents of discrimination, complaints and serious human
rights incidents (e.g. forced labour, human trafficking or child labour).
A report was submitted via the whistleblowing channel during 2025. Following a
subsequent investigation, the report was found to be unfounded.
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ESRS S2 Workers in the value chain
[S2 SBM-2] Interests and views of stakeholders
The ways in which the Group takes into account the interests and opinions of employees
in the value chain are set out in section
[ESRS 2 SBM-2] Interests and views of
stakeholders.
[S2 SBM-3] Material impacts, risks and opportunities and their interaction with
strategy and business model
The double materiality assessment identified a potential negative impact associated with
the working conditions of workers in the upstream value chain, including respect for
human rights, health and safety and adequate remuneration. The impact is related to the
nature of upstream sectors, such as steel and aluminium production (from the extraction
of raw materials to their processing), where these topics are considered material.
The double materiality assessment also revealed an inherent risk related to the occurrence
of accidents at Group sites involving contractors, whose health and safety Sabaf could be
responsible for.
The Group's strategic decisions have always been geared towards the prevention of the
risk associated with the social responsibility of suppliers, especially in geographical areas
where the regulations in force do not establish the minimum requirements applied by
Sabaf. In such circumstances, the Group conducts periodic audits in order to verify
compliance with the principles outlined in its Charter of Values and Sustainable
Procurement Policy (for more details on the Charter of Values and Sustainable Sourcing
Policy, please refer to section
[S2-1] Policies related to value chain workers
).
To date, the Sabaf Group has not identified any geographical areas and/or products within
its value chain with a significant risk of child, forced or compulsory labour. This should be
seen as a generalised impact for the entire upstream supply chain and one not related to
specific incidents and/or groups of workers.
[S2-1] Policies related to value chain workers
As stated in its Charter of Values, the Sabaf Group is committed to favouring suppliers who
adopt socially responsible behaviour in the conduct of business. In this view, Sabaf has
introduced a Sustainable Procurement Policy, based on the principles in the Charter of
Values, and inspired by the UN and EU Charter of Rights, the core labour standards of the
ILO conventions, the OECD Guidelines for Multinational Enterprises and the UN Global
Compact.
Specifically, the Sustainable Procurement Policy provides the labour, human rights, and
health and safety requirements that Sabaf Group suppliers are expected to comply with
during the course of their relationship. Sabaf requires suppliers to:
▪ not use child labour and not use any form of forced labour;
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117
▪ oppose all forms of human trafficking and modern slavery;
▪ recognise, respect and fully guarantee the right to work and free association of its
employees in all production facilities and apply forms of collective bargaining
where local regulations so provide;
▪ not tolerate any form of harassment and/or discrimination based on gender,
minority membership, political opinion, religious belief, age, ethnicity, marital
status, family status, disability and any other personal condition and promote the
positive value of diversity;
▪ comply with the applicable working time regulations;
▪ pay wages and benefits in accordance with applicable local regulations and take
into account the cost of meeting the needs of its workers, while promoting their
material well-being;
▪ adopt occupational health and safety management systems inspired by the ISO
45001 standard or otherwise aligned with benchmark best practices;
▪ undertake to disseminate and consolidate a safety culture that promotes
responsible behaviour on the part of workers.
The commitments outlined in the Sustainable Procurement Policy - which are approved,
implemented and periodically reviewed by the Parent Company's Board of Directors - are
intended to prevent and/or mitigate negative impacts and material risks associated with
the topic of workers in the value chain (see section
[S2 SBM-3] Material impacts, risks and
opportunities and their interaction with strategy and business model
).
The Policy is applicable to all suppliers of goods and services to the Sabaf Group, in all
countries in which it operates, without any exclusion in terms of business and professional
activities and/or stakeholder groups involved.
The involvement of the Sabaf Group's suppliers is pursued by sending them the Policy and
having them sign it for acceptance. In addition, Sabaf encourages all suppliers to
disseminate the contents of the Sustainable Procurement Policy through appropriate
training of their employees and suppliers. The Policy is publicly available to all
stakeholders through the corporate website (www.sabafgroup.com) under the section
"Sustainability - Suppliers".
Suppliers have an obligation to promptly report to Sabaf any violations of the policy by
their employees. Suppliers are required to report any behaviour by Sabaf employees that
is contrary to the Policy within the scope of the supply relationship, using the email address
making such reports. The Policy does not provide for anonymous reporting.
Suppliers' compliance with the provisions laid down in relation to human rights, labour
rights and the health and safety of workers is verified through on-site audits by Sabaf
personnel. If a breach of the provisions is discovered, Sabaf shall promptly notify the
supplier in writing and set a reasonable period for the supplier to prepare and implement
appropriate corrective actions. If this does not happen in the relevant timeframe or the
corrective actions do not resolve the breach, Sabaf reserves the right to terminate the
business relationship in accordance with the contractually agreed terms.
In 2025, the Group received no reports of non-compliance.
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[S2-2] Processes for engaging with value chain workers about impacts
The Sabaf Group has not, to date, adopted a formal process for involving workers in the
value chain in the management of actual and potential impacts, nor has it issued guidance
for this topic going forwards. Furthermore, as part of the double materiality assessment,
selected suppliers were involved in the assessment of actual and potential impacts on
workers in the value chain.
[S2-3] Processes to remediate negative impacts and channels for value chain
workers to raise concerns
As detailed in section
[S2-1] Policies related to value chain workers
, the Sustainable
Procurement Policy requires suppliers to promptly report any violations of provisions
related to respect for human and labour rights, working conditions and health and safety.
[S2-4] Taking action on material impacts on value chain workers, and
approaches to managing material risks and pursuing material opportunities
related to value chain workers, and effectiveness of those actions
The prevention and mitigation of material impacts associated with workers in the value
chain, as outlined in
[S2 SBM-3] Material impacts, risks and opportunities and their
interaction with strategy and business model
, is managed through the adoption of
procurement policies and controls to verify their application. Specifically, the Sabaf Group
has introduced a Sustainable Procurement Policy aimed at preventing and mitigating
potential negative impacts on workers in the value chain in terms of human rights, labour
rights, working conditions and health and safety. The commitments defined by the Policy
are outlined in section
[S2-1] Policies related to value chain workers.
Where current legal regulations do not establish minimum requirements applied by Sabaf,
compliance is verified by conducting periodic audits to identify the necessary and suitable
actions following the occurrence of any negative impacts. The audits verify whether a
certified management system has been adopted for social responsibility and occupational
health and safety, whether the working environment is safe and healthy and whether
appropriate measures are in place for accident prevention; they also verify the right to
collective bargaining, the absence of discrimination and the adequacy of working hours. If
a breach is discovered, Sabaf promptly notifies the supplier in writing and sets a reasonable
period for the preparation and implementation by the supplier of appropriate corrective
actions. If this does not happen in the relevant timeframe or the corrective actions do not
resolve the breach, Sabaf reserves the right to terminate the business relationship in
accordance with the contractually agreed terms. Aside from verifying the implementation
of the Sustainable Procurement Policy and the Group's minimum social responsibility
standards, audits allow Sabaf to help remedy any negative impacts on workers in the value
chain.
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Sabaf did not identify any actual negative impacts on value chain workers or human rights
incidents related to its upstream and downstream value chain. Therefore, no specific
remedial actions are reported.
In terms of risks, Sabaf has identified an inherent risk related to the occurrence of
contractor accidents. In addition to applying the health and safety standards of Group
companies, risk mitigation is pursued through the adoption of specific procedures. For
example, where external personnel access Group sites based on contractual obligations,
checks are conducted on technical-professional requirements, training certificates and the
lawfulness of employment relationships.
As outlined above, the management of material impacts and risks associated with value
chain workers is part of the Sabaf Group's recurring operating expenses (OpEx).
[S2-5] Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
The Sabaf Group constantly monitors the effectiveness of its policies and initiatives in the
context of the impacts and risks identified in terms of the social responsibility of its
suppliers and, specifically, respect for human rights and labour rights and working
conditions along the value chain.
To ensure effective management of IROs, the level of supplier compliance with quality,
environmental and social responsibility parameters is determined through a risk
assessment that considers the type of process, the product or service supplied, as well as
the supplier’s geographical location. In cases where applicable local regulations are
deemed insufficient for mitigating potential reputational or compliance risks for the Group,
periodic audits are conducted to ensure compliance with the required minimum standards.
In relation to working conditions, Sabaf is also committed to making suppliers aware of
the principles of the Code of Conduct of APPLiA Europe, the Association of Home
Appliance Manufacturers, which it is a member of. Furthermore, in order to ensure
continuous monitoring of environmental and social impacts along the value chain, Sabaf
favours suppliers with certified quality and environmental management systems.
The Sabaf Group has not set any measurable, results-oriented targets in relation to value
chain management, nor has it issued guidance for this topic going forwards.
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ESRS S3 Affected communities
[S3 SBM-3] Material impacts, risks and opportunities and their interaction with
strategy and business model
From the double materiality assessment, the Sabaf Group identified two material positive
impacts related to affected communities:
- job creation and distribution of economic value in the respective areas;
- collaboration with local universities, institutions and associations, contributing to
the growth of communities.
These impacts refer to local communities living or working near the operational sites, as
the community is an important stakeholder for business development. The opinions,
interests and rights of local communities are taken into account to guide corporate
strategy, and are heard through constant consultation and dialogue with community
representatives, such as public institutions and local associations.
The contribution to the growth of local communities is pursued by building and
maintaining relations with industrial associations, universities and students, by carrying
out charitable initiatives in cooperation with local entities, and by supporting humanitarian
projects in the territories where the Group operates.
As part of the double materiality assessment, Sabaf did not identify any material negative
impacts, risks and/or opportunities associated with affected communities. The Group has
a Social Policy in place involving affected communities. The respective commitments,
scope, verification and monitoring procedures of which are outlined in the following
sections.
[S3-1] Policies related to affected communities
Sabaf is committed to constantly strengthening the social value of its business activities
through careful management of relationships with stakeholders and local communities.
The relationship with communities is governed by the Charter of Values, which outlines
the Group's commitments to society. Sabaf is committed to operating in local communities
in a socially responsible manner, by contributing to the improvement of the quality of life
in the communities in which the Group operates through social, cultural and educational
initiatives, as well as through safe products with a lower environmental impact (especially
in emerging countries, where it is contributing to the promotion of gas cooking as an
alternative to solid fuels such as wood and coal).
With its Social Policy, within the scope of its relationship with society, Sabaf undertakes
to:
- promote respect for human rights in the communities in which Group companies
operate, as defined by the UN Global Compact, the UN Charter of Rights and the
EU Charter of Rights and the OECD Guidelines for Multinational Enterprises;
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- take measures to promote dialogue with affected communities and their
representatives and ensure that communication channels are in place to receive
any complaints and take remedial action;
- contribute to the growth and protection of affected communities through the
establishment of partnerships with universities and local authorities;
- carry out charitable initiatives with a social and humanitarian value.
The above commitments are intended to pursue the positive impacts associated with the
issue of affected communities (see section
[S3 SBM-3] Material impacts, risks and
opportunities and their interaction with strategy and business model)
.
For details on the implementation, monitoring and application of the Charter of Values
and Social Policy, please refer to section
[S1-1] Policies related to own workforce.
[S3-2] Processes for engaging with affected communities about impacts
Based on the findings of the context analysis and the double materiality assessment, to
date, the Sabaf Group does not see the need to adopt a process to involve affected
communities in the management of actual and potential impacts.
It should be noted that, as part of the most recent stakeholder engagement activities
carried out in connection with the 2024 double materiality analysis, a representative of the
local communities was involved in assessing the Sabaf Group’s impacts, with a view to
incorporating the perspectives of the communities concerned.
[S3-4] Taking action on material impacts on affected communities, and
approaches to managing material risks and pursuing material opportunities
related to affected communities, and effectiveness of those actions
The Sabaf Group has always been involved in activities supporting and developing local
communities, charitable initiatives and humanitarian projects, with the aim of achieving
the commitments outlined in its policies.
In 2022, Sabaf joined the project to co-finance for six years the Chair of Associate Professor
of Anaesthesiology in the new School of Specialisation in Medicine and Palliative Care at
the University of Brescia (contribution of €50,000 per year). Sabaf is thus supporting an
important postgraduate training programme in the city of Brescia, which is of great value
to the entire community. The School of Specialisation in Palliative Care opened in
November 2022 and is one of the first such institutions in Italy, . The aim is to promote the
culture of palliative care among young people and expand into the paediatric field,
developing a reference centre in eastern Lombardy. The School of Specialisation in
Palliative Care involves students and specialists from all medical areas and offers a wide
range of care, to both adults and children, and includes pain therapy and home care.
During 2025, Sabaf funded the purchase of a new vehicle for use by the social services
department of the Municipality of Ospitaletto, specifically for the delivery of meals to the
homes of elderly people and those with disabilities. The initiative aims to eliminate waiting
lists for this service and to ensure daily support for the most vulnerable groups.
Also in 2025, Sabaf financed a scholarship for the International Summer School in
Economics, organised by Istituto I.S.E.O (Institute of Economic and Employment Studies)
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- ETS, a non-profit cultural organisation based in Iseo (Brescia) near Sabaf’s headquarters.
The Summer School is for graduate students from all over the world.
The Group's ongoing humanitarian initiatives include:
▪ support for the ANT Foundation, which provides free specialist medical home-care
to cancer patients and cancer prevention activities;
▪ support for the
Associazione Volontari per il Servizio Internazionale
(AVSI), a non-
profit, non-governmental organisation engaged in international development aid
projects. The donations are used to provide long-distance support to twenty
children living in various countries around the world.
Since the Sabaf Group’s double materiality assessment and materiality and risk
assessments conducted in previous years did not reveal any negative impacts and/or
material risks related to the affected communities, no specific actions have been identified
to prevent and/or mitigate these. Moreover, the Group engages in an ongoing dialogue
with affected communities and relevant institutions, through which it can learn of and
monitor any negative impacts and/or risks associated with communities and, where
appropriate, define necessary mitigation actions.
Sabaf operates in compliance with applicable regulations, conducting, where necessary,
specific consultations with local community representatives. Furthermore, the Group acts
in compliance with national and international human rights standards of affected
communities, as set out in its social responsibility policies.
[S3-5] Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
Sabaf constantly monitors the effectiveness of its policies and actions for managing its
impacts, risks and opportunities on local communities, and is focused in particular on the
creation of shared value in the territories in which it operates.
In each of the geographical areas where it operates, the Group maintains an open dialogue
with local authorities to foster responsible development and positive impacts on the
communities it serves. In line with its Charter of Values, Sabaf adopts principles of honesty,
integrity and transparency, while contributing to socio-economic welfare including
through tax compliance and job generation in the local area.
The Sabaf Group has not set measurable, results-oriented targets for the management of
its impacts on local communities, nor has it issued guidance for this topic going forwards.
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ESRS S4 Consumers and end-users
[S4 SBM-3] Material impacts, risks and opportunities and their interaction with
strategy and business model
The Sabaf Group double materiality assessment identified an inherent risk associated with
potential non-compliance with product quality and safety standards. The risk identified is
inherent in the Group's business model, as some components produced by Sabaf and
installed on household appliances have an inherent risk that could arise during the use of
the products, which is also dependent on external factors. By way of example, gas leaks,
inefficient combustion or overheating could result in domestic accidents, for which the
Group could be liable.
The identified risk involves all users of the appliances in which the components supplied
by the Group are installed. Sabaf has not identified any specific groups of consumers
and/or consumers with certain characteristics that are particularly exposed to this risk.
[S4-1] Policies related to consumers and end-users
The health and safety of end users is a priority for the Sabaf Group's business model and
is to be understood not merely as compliance with existing standards, but rather as a
management philosophy oriented towards continuous improvement of performance,
including with the aim of ensuring guaranteeing increasingly safe products for end users.
The Charter of Values sets forth the Sabaf Group's commitments to customers - as
intermediaries in the relationship with end users - to ensure high quality standards for the
products it offers, as well as clear and transparent communication regarding potential risks
associated with the use of its products. Details on the implementation, monitoring and
enforcement of the Charter of Values can be found in section
[S1-1] Policies related to own
workforce
.
The Social Policy further defines the Sabaf Group's commitments to end-user protection,
including:
▪ guaranteeing respect for the human rights of end users within the scope of the
activities in which Group companies operate, as defined by the UN Global
Compact, the UN Charter of Rights and the EU Charter of Rights and the OECD
Guidelines for Multinational Enterprises;
▪ guaranteeing the protection of end users by ensuring compliance with local and
international product safety regulations, by adopting dedicated procedures and
conducting appropriate checks;
▪ effectively and promptly handling customer complaints and implement corrective
actions to resolve these and preventing or limiting their recurrence;
▪ guaranteeing the highest standards of quality and safety of the products offered,
including through the adoption of certified management systems and cooperation
with client companies;
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▪ communicating information about products and services in a clear and transparent
manner, as well as informing corporate customers about potential risks related to
the use of products and their environmental impact;
▪ acknowledging the needs of end users through a dialogue with customer
businesses, while constantly monitor customer satisfaction and any complaints.
The commitments outlined in the Social Policy above are intended to mitigate and/or
prevent the material risks associated with the topic of consumers and end-users (see
section
[S4 SBM-3] Material impacts, risks and opportunities and their interaction with
strategy and business model
).
During the reporting period, no violations of the principles of the UN Global Compact and
the OECD Guidelines for Multinational Enterprises affecting Consumers and/or End-Users
were found in the downstream value chain.
For details on the implementation, monitoring and enforcement of the Social Policy, please
refer to section
[S1-1] Policies related to own workforce.
[S4-2] Processes for engaging with consumers and end-users about impacts
The Sabaf Group has not identified any material positive and/or negative impacts on end
users within the scope of the double materiality assessment, also in consideration of the
fact that historically it has never recorded any incidents against end users involving liability
linked to the defectiveness of Sabaf components. To date it has not therefore adopted a
process to manage actual and potential impacts involving end-users. In a business-to-
business model, the Group’s customers are household appliance manufacturers, therefore
the Sabaf Group has no direct dealings with end users. Constant dialogue with customers
and customer satisfaction surveys are useful tools for identifying and monitoring the needs
of the market, including end users.
[S4-3] Processes to remediate negative impacts and channels for consumers and
end-users to raise concerns
The Sabaf Group has not identified any material positive and/or negative impacts on end
users as part of the double materiality assessment. However, it has no direct relationship
with end-users and, therefore, no channels for end-users to raise concerns.
[S4-4] Taking action on material impacts on consumers and end-users, and
approaches to managing material risks and pursuing material opportunities
related to consumers and end- users, and effectiveness of those actions
The Sabaf Group has not identified any material positive and/or negative impacts on end
users as part of the double materiality assessment. The Group has never recorded any
incidents involving damage to end-users for which liability was established in connection
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with the defectiveness of Sabaf components and, therefore, there has never been any need
for specific actions aimed at remedying actual negative impacts on end-users.
Sabaf has identified an inherent risk related to potential non-compliance with product
quality and safety standards. This risk is managed and mitigated through:
▪ compliance with the stringent safety requirements established by current
legislation;
▪ the high degree of automation in production processes and related testing;
▪ the achievement and maintenance of quality management system certifications
involving rigorous procedures and controls;
▪ the transfer of the risk of damage from civil liability resulting from the
malfunctioning of Sabaf products through insurance policies;
▪ introduction of specific product design prescriptions (especially for components
purchased from third parties) and on testing activities during product acceptance;
▪ staff training and renewal of machinery.
Further information on management and control systems and the procedures applied in
this regard can be found in section
[S4-5] Targets related to managing material negative
impacts, advancing positive impacts, and managing material risks and opportunities.
[S4-5] Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
The Sabaf Group constantly monitors the effectiveness of its policies and actions aimed at
the quality and safety of its products, including by measuring the level of customer
satisfaction.
The planning of Sabaf's Quality Management System is carried out following the risk-based
approach in accordance with the UNI EN ISO 9001:2015 standard, which allows the
identification of the main risk categories and the adoption of appropriate management
strategies for product quality and safety. A.R.C. s.r.l., MEC and Sabaf China do not have a
certified quality management system; however, they do have a strict quality policy and are
systematically audited by major customers.
Moreover, Sabaf guarantees high safety standards through rigorous controls on the
materials that are used, which are compliant with the REACH Regulation and the RoHS
Directive. In general, Sabaf constantly monitors the compliance of its products with the
relevant end-user health and safety regulations. In order to monitor customer satisfaction,
the Group conducts customer satisfaction surveys every two years, through which it
collects feedback on strengths and areas for improvement, in order to identify any critical
issues that could affect final consumers.
With these tools, Sabaf ensures that its products are safe, compliant with applicable
national and international directives and meet consumer needs, while reinforcing its
commitment to quality and transparency.
The 2024-2026 Business Plan does not include formal objectives in the areas of quality,
safety and customer satisfaction; therefore, the Sabaf Group has not set any measurable,
results-oriented objectives with regard to managing the risks identified in this area.
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G - Information on governance aspects
ESRS G1 Business conduct
[GOV-1] The role of administrative, management and supervisory bodies
The role of administrative, management and supervisory bodies is described in
[ESRS 2
GOV-1] The role of the administrative, management and supervisory bodies
. In particular,
in relation to business conduct, in addition to its responsibilities under the regulations, and
as already described in ESRS 2, the Board of Directors is responsible for assessing and
monitoring ethical risks and promoting the dissemination and awareness of the Charter of
Values within the Group.
[G1 IRO-1] Description of the processes to identify and assess material impacts,
risks and opportunities related to business conduct
The double materiality assessment carried out by the Group made it possible to identify
the material impacts with reference to business conduct. The process is described in
[ESRS
2 IRO-1] Description of the process to identify and assess material impacts, risks and
opportunities.
As specified therein, the analysis that was conducted considered the internal
and external context of the company, emphasising, among other things, its operating
sector, the company's operations and the activities impacting the upstream and
downstream value chain.
Sabaf has assessed as material the positive (current) impact that established partnerships
- which are based on principles of collaboration and transparency - help to create, by
enriching the market and facilitating the achievement of sustainability goals. This impact
is connected to the Group's activities and the operations carried out by the upstream and
downstream value chain, and, in general, to all the collaboration and partnership relations
established with Group's stakeholders.
Another (current) material positive impact related to corporate conduct and, more
specifically, to the topic of active and passive bribery, is the dissemination of corporate
policies that promote an ethical and responsible corporate culture (corporate culture
policies are discussed in more detail in section
[G1-1] Business conduct policies and
corporate culture
). In this case, the impact is generated exclusively by the Group's own
operations.
Finally, in analysing the management of relationships with its suppliers, the Group has
identified the (potential) negative impact that could arise from delays in payments to
suppliers beyond agreed dates. The impact identified is therefore upstream in the value
chain.
As part of the double materiality assessment, the Sabaf Group did not identify any risks
and/or opportunities in relation to the conduct of business.
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[G1-1] Business conduct policies and corporate culture
For the Sabaf Group, respect for business ethics and socially responsible behaviour are
among the core elements of its business model. The main policies and procedures through
which the Group disseminates and ensures compliance with its values and ethical conduct
are: the Charter of Values (introduced in the section
[S1-1] Policies related to own
workforce
), the Anti-Corruption Policy, the Whistleblowing Management Procedure and
the Corporate Governance Manual.
Charter of Values
The Charter of Values is the governance tool by which the Sabaf Group pursues its mission
in respect of the value of individuals, from which it derives the principles of conduct
described in the document. The principles must inspire the behaviour and decisions of the
Group's employees in their internal and external relations; furthermore, the Group hopes
that all the stakeholders with whom it has relations also adopt principles of:
▪ Honesty
▪ Integrity
▪ Equality and Impartiality
▪ Transparency and Fairness
▪ Efficiency and Effectiveness
▪ Fair competition
▪ Dialogue
Each Sabaf Group company is required to adopt and disseminate the Charter of Values,
and communicate any reported/confirmed violations thereof via the Whistleblowing
channel.
The Anti-Corruption Policy
The prevention of corrupt practices is among Sabaf’s guiding principles and is committed
to fighting corruption.
The Group has an Anti-corruption Policy in place, the implementation and enforcement of
which is entrusted to the Board of Directors, which consolidates its commitment to
combating illegal conduct. The Policy applies globally to Sabaf S.p.A., the Group's
subsidiaries and all their personnel, including directors, managers, employees and all other
persons acting for and/or on behalf of Sabaf Group companies, in each country where the
Group operates. The Policy reiterates the recipients' obligation to comply with the
provisions of the Organisational, Management and Control Models (adopted by Sabaf
S.p.A., Faringosi Hinges s.r.l., C.M.I. S.r.l. And C.G.D. s.r.l.) pursuant to Legislative Decree
No. 231/2001, as well as the procedures and internal rules established by each Group
company. The following areas have been assessed as potentially exposed to corruption
risks:
▪ Relations with representatives of public institutions;
▪ Trade relations with intermediaries and agents;
▪ Trade relations with customers, suppliers and other third parties;
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▪ Relations with trade unions and political organisations;
▪ Human resource management;
▪ Management of gifts and presents, entertainment expenses, donations and
sponsorships;
▪ Accounting and financial procedures and controls.
The provisions and guidelines contained in the Policy - which were developed by analysing
at risk activities - promote the highest ethical standards in all business dealings, in order
to conduct business with loyalty, fairness, transparency, honesty and integrity, and provide
specific rules to prevent, identify and manage corruption risks.
All Sabaf Group companies must promote and ensure adequate awareness of the
provisions set out in the Anti-Corruption Policy. To this end, Sabaf S.p.A.'s Human
Resources Department is responsible for coordinating the training and awareness
programmes implemented locally by each Group company. It should be noted that the
Policy does not regulate business conduct training. The Anti-Corruption Policy is made
available through publication on the corporate website www.sabafgroup.com in the
section “Sustainability – Anti-corruption”.
Whistleblowing Management Procedure
In accordance with the European legislation on whistleblowing (EU Directive 2019/1937),
implemented in Italy by Legislative Decree 24/2023, Sabaf has set up a platform for the
management of reports of unlawful conduct which has come to its attention in the context
of its work environment and which has been committed in violation of the Charter of
Values, laws or regulations or provisions of the authorities, internal regulations or is, in any
case, likely to cause damage or harm of the Company, even if only in terms of its image.
The platform (https://areariservata.mygovernance.it/#!/WB/sabaf) allows
whistleblowers to choose whether to submit anonymous or identifiable reports, either in
writing or verbally. In any case, the platform guarantees the confidentiality and privacy of
both the whistleblower and the content of the report.
The Whistleblowing Management Procedure, approved by the Board of Directors and
whose implementation is coordinated by Sabaf S.p.A.'s Human Resources Department,
governs the process of receiving, analysing and processing whistleblowing reports sent or
forwarded by Sabaf personnel or third parties. The Procedure, which complies with the
requirements of Model 231, is disclosed both internally, including through training
activities, and externally through publication on the website www.sabafgroup.com under
the section "Investors - Corporate Governance".
In its ongoing commitment to ensure maximum transparency and the proper handling of
reports, Sabaf has set up a suitably trained dedicated independent committee for the
management of the reporting channel, comprising the Head of the Human Resources
Function, the Head of the Internal Audit Function and the Chairman of the Supervisory
Board. Within 7 days of the date of receipt, the Committee informs the whistleblower it
has received the report and may contact him/her to acquire any further information
deemed useful to ensure the report is diligently followed up. The Procedure regulates in
detail the stages of investigation, assessment, filing and reporting to the Administrative
and Control Bodies. The Company guarantees the confidentiality of the identity of
whistleblowers, persons involved and persons mentioned, as well as the content of the
report and the relevant documentation. In particular, the identity of whistleblowers and
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any other information from which their identity can be inferred, either directly or indirectly,
is not disclosed to persons other than those responsible for receiving or following up
reports, without the express consent of the whistleblowers themselves.
Corporate Governance Manual
The Corporate Governance Manual, approved by the Board of Directors of Sabaf S.p.A.,
sets forth suitable principles, rules and operating methods for the Company to implement
the recommendations of the Corporate Governance Code. The Manual includes some
operating guidelines, also approved by the Board of Directors, prepared for the purposes
of duly performing the activities pertaining to Sabaf's management and control bodies.
The Manual is addressed to members of Sabaf's corporate bodies and employees. It is the
responsibility of Sabaf's Board of Directors to keep its content up-to-date and to make
changes or additions of a substantial nature.
The Corporate Governance Manual is published on the corporate website
www.sabafgroup.com under the section "Investors - Corporate Governance".
[G1-2] Management of relationships with suppliers
All Group companies comply with the rules of conduct defined in the Charter of Values
(introduced in section
[S1-1] Policies related to own workforce
) and in the Sustainable
Sourcing Policy (introduced in section
[S2-1] Policies related to value chain workers
), for
the management of relationships with suppliers, by ensuring the adoption of consistent
procedures and practices. The two documents, and the commitments outlined therein,
allow he Group to address the impacts identified in relation to the ethical and transparent
conduct of business.
The social and environmental criteria used by Sabaf to select its suppliers relate to the
following areas: ethics and human rights, health and safety at work, environmental
protection, the management of materials with significant environmental and social
impacts, information security, and training and awareness-raising.
Relations with suppliers are based on long-term collaboration and on fairness in
negotiations, integrity and contractual fairness and the sharing of growth strategies. The
double materiality assessment revealed a potential negative impact related from delays in
payments to suppliers beyond agreed dates. The Charter of Values firmly states the
Group's commitment to pay suppliers on time and in the agreed manner. Very short
payment terms are agreed for artisan and less structured suppliers.
[G1-3] Prevention and detection of corruption or bribery
The Sabaf Group, aware of the negative effects of corrupt practices in business
management, is committed to preventing and combating the occurrence of offences in the
carrying-out of its activities.
The Internal Audit Department, which reports directly to the Board of Directors, may
conduct periodic audits to verify (i) compliance with Group guidelines (ii) that measures
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to prevent corruption risks are adequately designed and function effectively (iii) reports of
non-compliance it receives.
In line with the provisions of the Charter of Values, any Sabaf Group stakeholder may
report a violation of the Anti-Corruption Policy by sending a signed, non-anonymous
report to the Internal Audit Department:
▪ in paper form to Sabaf S.p.A., Via dei Carpini, 1 - Ospitaletto (BS) - for the attention
of the Internal Audit function;
▪ by email to: [email protected].
Any violations of the Anti-Corruption Policy by Sabaf Group recipients will result in the
adoption of appropriate and proportionate disciplinary measures, based also on the
criminal relevance of the related conduct. If necessary, Sabaf will cooperate fully with the
competent authorities.
Violations of the Anti-Corruption policy by third parties will be examined to assess the
need for countermeasures, such as unilateral termination of contracts.
The Anti-Corruption policy is amended and supplemented where necessary to ensure its
full effectiveness and to make potential improvements, based on evolving best practices,
new risk assessment results or recommendations from audits.
The section
[G1-1] Business conduct policies and corporate culture
sets out how the Group
ensures the accessibility of the Anti-Corruption Policy to all stakeholders.
Training activities on the Anti-Corruption Policy are considered essential to ensure the
correct application of the company's provisions. For further details see section
[G1-1]
Business conduct policies and corporate culture.
[G1 MDR-T] Tracking the effectiveness of business conduct-related policies and
actions
The Sabaf Group did not identify any material negative impacts on business conduct,
including anti-corruption, during its double materiality assessment. The Sabaf Group
constantly monitors the effectiveness of its policies and actions in this regard.
In particular, this monitoring takes place mainly through internal verification processes
and periodic audits, which include checking regulatory compliance and the measures in
place to prevent corruption risks. For more details on the prevention of corruption, see
section
[G1-3] Prevention and detection of corruption or bribery
.
Training provided on the Anti-Corruption Policy is aimed at effectively preventing and
countering any incidents of corruption or bribery, and ensuring respect for corporate
values. For further details on the Policy, see section
[G1-1] Business conduct policies and
corporate culture.
The Group has not set measurable, results-oriented targets in relation to business conduct,
as the 2024-2026 Business Plan does not provide for the formalisation of such targets.
Sabaf Group | 2025 Report on Operations
131
[G1-4] Incidents of corruption or bribery
During the reporting period, no incidents of bribery or corruption occurred in the Sabaf
Group, nor did any Group company receive any convictions or fines relating to the
violation of laws on bribery or corruption. No corrective actions were implemented.
[G1-6] Payment practices
In 2025, the Group's average payment terms were 85 days from the date of purchase or
service (88 days in 2024).
The payment terms of the Group's suppliers vary according to the specific business
relationship, negotiation and country. The payment terms are outlined in the following
table:
2025
2024
up to 30 days
37%
32%
31-60 days
20%
24%
61-90 days
28%
32%
91-120 days
11%
12%
more than 120 days
4%
0%
For 2025, the percentages were determined on the basis of an analysis of the payment
terms of all suppliers for Group companies, while for 2024 only the Group companies
adopting the SAP management system (this sample accounts for 80% of total purchases)
were considered. The values are weighted on the basis of the year’s turnover of individual
suppliers.
It is the Group's practice to grant artisan and less structured suppliers reduced payment
terms (normally 30 days).
Suppliers are paid by the agreed deadlines or within a few days of these.
There are no pending complaints or ongoing criminal proceedings for late payments.
Sabaf Group | 2025 Report on Operations
132
Certification of sustainability statement pursuant to Article 81-ter,
paragraph 1, of Consob Regulation No. 11971 of 14 May 1999 and
subsequent amendments and additions
The undersigned Gianluca Beschi, Chief Executive Officer and Financial Reporting Officer
for Sabaf S.p.A., hereby certifies, pursuant to Article 154-bis, paragraph 5-ter, of Legislative
Decree No. 58 of 24 February 1998, that the sustainability statement included in the report
on operations has been drafted:
(a) in accordance with the applicable reporting standards pursuant to Directive
2013/34/EU of the European Parliament and of the Council of 26 June 2013 and
Legislative Decree No. 125 of 6 September 2024;
(b) with the specifications adopted pursuant to Article 8(4) of Regulation (EU)
2020/852 of the European Parliament and of the Council of 18 June 2020.
Ospitaletto, 24 March 2026
CEO and Financial Reporting Officer
Gianluca Beschi
Sabaf Group | 2025 Report on Operations
133
Annexes to the Report on Operations
Sabaf Group | 2025 Report on Operations
134
Reconciliation of the consolidated income statement at 31 December 2025
(
€
/000)
2025
IAS29 effect
Normalised
2025
INCOME STATEMENT COMPONENTS
OPERATING REVENUE AND INCOME
Revenue
278,201
1,035
279,236
Other income
10,457
58
10,515
Total operating revenue and income
288,658
1,093
289,751
OPERATING COSTS
Materials
(130,826)
(46)
(130,872)
Change in inventories
4,237
(180)
4,057
Services
(49,786)
(111)
(49,897)
Personnel costs
(70,518)
(97)
(70,615)
Other operating costs
(2,911)
(89)
(3,000)
Costs for capitalised in-house work
1,926
-
1,926
Total operating costs
(247,878)
(523)
(248,401)
-
OPERATING PROFIT BEFORE DEPRECIATION
AND AMORTISATION, CAPITAL
GAINS/LOSSES, AND IMPARIMENT
LOSSES/REVERSALS OF IMPAIRMENT
LOSSES OF NON-CURRENT ASSETS
40,780
570
41,350
Amortisation/depreciation
(24,703)
4,414
(20,289)
Capital gains on disposals of non-current assets
190
2
192
Impairment losses on non-current assets
(104)
-
(104)
EBIT
16,163
4,986
21,149
Financial income
611
4
615
Financial expenses
(8,577)
-
(8,577)
Net income/(charges) from hyperinflation
(2,631)
2,631
-
Exchange rate gains and losses
2,591
18
2,609
PROFIT BEFORE TAXES
8,157
7,639
15,796
Income taxes
(1,318)
57
(1,261)
PROFIT FOR THE YEAR
6,839
7,696
14,535
of which:
Minority interests
1,659
-
1,659
PROFIT ATTRIBUTABLE TO THE GROUP
5,180
7,696
12,876
Sabaf Group | 2025 Report on Operations
135
Reconciliation of the consolidated income statement at 31 December 2024
(
€
/000)
2024
IAS29 effect
Normalised
2024
INCOME STATEMENT COMPONENTS
OPERATING REVENUE AND INCOME
Revenue
285,091
(8,126)
276,965
Other income
10,934
(195)
10,739
Total operating revenue and income
296,025
(8,321)
287,704
OPERATING COSTS
Materials
(137,010)
3,274
(133,736)
Change in inventories
4,659
(314)
4,345
Services
(50,943)
826
(50,117)
Personnel costs
(70,402)
1,177
(69,225)
Other operating costs
(1,750)
52
(1,698)
Costs for capitalised in-house work
3,125
-
3,125
Total operating costs
(252,321)
5,015
(247,306)
OPERATING PROFIT BEFORE DEPRECIATION
AND AMORTISATION, CAPITAL
GAINS/LOSSES, AND IMPARIMENT
LOSSES/REVERSALS OF IMPAIRMENT
LOSSES OF NON-CURRENT ASSETS
43,704
(3,306)
40,398
Amortisation/depreciation
(22,932)
3,843
(19,089)
Capital gains on disposals of non-current assets
(118)
119
1
Impairment losses on non-current assets
(2,915)
2,809
(106)
EBIT
17,739
3,465
21,204
Financial income
2,480
(103)
2,377
Financial expenses
(4,658)
3
(4,655)
Net income/(charges) from hyperinflation
(4,215)
4,215
-
Exchange rate gains and losses
1,471
(120)
1,351
Profits and losses from equity investments
(8)
-
(8)
PROFIT BEFORE TAXES
12,809
7,460
20,269
Income taxes
(4,916)
1,562
(3,354)
PROFIT FOR THE YEAR
7,893
9,022
16,915
of which:
Minority interests
965
-
965
PROFIT ATTRIBUTABLE TO THE GROUP
6,928
9,022
15,950
Sabaf Group | Consolidated financial statements at 31 December 2025
136
CONSOLIDATED FINANCIAL
STATEMENTS
AT 31 DECEMBER 2025
Via dei Carpini, 1 – OSPITALETTO (BS) Italy
Share capital €12,686,795 fully paid in
www.sabafgroup.com
Sabaf Group | Consolidated financial statements at 31 December 2025
137
GROUP STRUCTURE AND CORPORATE BODIES
Group structure
Parent company
Subsidiaries and equity interest pertaining to the Group
Companies consolidated on a line-by-line basis
Faringosi Hinges S.r.l.
100%
Sabaf do Brasil Ltda. (Sabaf Brazil)
100%
Sabaf Beyaz Esya Parcalari Sanayi Ve Ticaret Limited Sirketi (Sabaf
Turkey)
100%
Sabaf Appliance Components (Kunshan) Co., Ltd. (Sabaf China)
100%
A.R.C. S.r.l.
100%
Sabaf India Private Limited (Sabaf India)
100%
Sabaf Mexico Appliance Components S.A. de c.v. (Sabaf Mexico)
100%
C.M.I. S.r.l.
100%
C.G.D. S.r.l.
100%
P.G.A S.r.l.
100%
Sabaf America Inc. (Sabaf America)
100%
Mansfield Engineered Components LLC (MEC)
51%
Board of Directors
Chairwoman
Claudio Bulgarelli
Chief Executive Officer
Gianluca Beschi
Director
Alessandro Potestà
Director
Christian Richard Prinoth
Director
Cinzia Saleri
Director (*)
Laura Ciambellotti
Director (*)
Francesca Michela Maurelli
Director (*)
Federica Menichetti
Director (*)
Daniela Toscani
(*) independent directors
Board of Statutory Auditors
Chairwoman
Alessandra Tronconi
Statutory Auditor
Maria Alessandra Zunino de Pignier
Statutory Auditor
Mauro Vivenzi
Independent Auditors
EY S.p.A.
Sabaf Group | Consolidated financial statements at 31 December 2025
138
Consolidated statement of financial position
Notes
31/12/2025
31/12/2024
(
€
/000)
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
1
Investment property
2
Intangible assets
3
Equity investments
4
Non-current receivables
5
Deferred tax assets
22
Total non-current assets
CURRENT ASSETS
Inventories
6
Trade receivables
7
Tax receivables
8
Other current receivables
9
Current financial assets
10
Cash and cash equivalents
11
Total current assets
ASSETS HELD FOR SALE
TOTAL ASSETS
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY
Share capital
12
Retained earnings, Other reserves
13
IAS 29 reserve
Profit for the year
Total equity interest of the Group
Minority interests
Total shareholders’ equity
NON-CURRENT LIABILITIES
Loans
14
Post-employment benefits and retirement provisions
16
Provisions for risks and charges
17
Deferred tax liabilities
22
Other non-current payables
18
Total non-current liabilities
CURRENT LIABILITIES
Loans
14
Other financial liabilities
15
Trade payables
19
Tax payables
20
Other payables
21
Total current liabilities
LIABILITIES HELD FOR SALE
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
Sabaf Group | Consolidated financial statements at 31 December 2025
139
Consolidated income statement
Notes
2025
2024
(
€
/000)
INCOME STATEMENT COMPONENTS
OPERATING REVENUE AND INCOME
Revenue
24
Other income
25
Total operating revenue and income
OPERATING COSTS
Materials
26
(130,826 )
(137,010 )
Change in inventories
Services
27
(49,786 )
(50,943 )
Personnel costs
28
(70,518 )
(70,402 )
Other operating costs
29
(2,911 )
(1,750 )
Costs for capitalised in-house work
Total operating costs
(247,878 )
(252,321 )
OPERATING PROFIT BEFORE DEPRECIATION AND
AMORTISATION, CAPITAL GAINS/LOSSES, AND
IMPARIMENT LOSSES/REVERSALS OF
IMPAIRMENT LOSSES OF NON-CURRENT ASSETS
Amortisation/depreciation
1, 2, 3
(24,703 )
(22,932 )
Capital gains on disposals of non-current assets
(118 )
Impairment losses on non-current assets
(104 )
(2,915 )
EBIT
Financial income
30
Financial expenses
31
(8,577 )
(4,658 )
Net income/(charges) from hyperinflation
31
(2,631 )
(4,215 )
Exchange rate gains and losses
32
Profits and losses from equity investments
(8 )
PROFIT BEFORE TAXES
Income taxes
33
(1,318 )
(4,916 )
PROFIT FOR THE YEAR
of which:
Minority interests
PROFIT ATTRIBUTABLE TO THE GROUP
EARNINGS PER SHARE (EPS)
34
Base (€)
Diluted (€)
Sabaf Group | Consolidated financial statements at 31 December 2025
140
Consolidated statement of comprehensive income
2025
2024
(
€
/000)
PROFIT FOR THE YEAR
Total profits/losses that will not be subsequently
reclassified under profit (loss) for the year
Actuarial evaluation of post-employment benefits
Tax effect
(24 )
Total profits/losses that will be subsequently
reclassified under profit (loss) for the year
Forex differences due to translation of financial statements in foreign currencies
(24,125 )
(12,146 )
Hedge accounting for derivative financial instruments
(139 )
TOTAL PROFIT
(17,077 )
(4,391 )
of which:
Net profit for the period attributable to minority interests
Foreign exchange difference from translation of financial statements of minority interests
(984 )
Total profit attributable to minority interests
TOTAL PROFIT ATTRIBUTABLE TO THE GROUP
(17,752 )
(5,925 )
Sabaf Group | Consolidated financial statements at 31 December 2025
141
Statement of changes in consolidated shareholders’ equity
(
€
/000)
Share
capital
Share
premium
reserve
Legal
reserve
Treasury
shares
Translatio
n reserve
IAS 29
reserve
Post-
employme
nt benefit
reserve
Other
reserves
Profit for the
year
Group
shareholde
rs' equity
Minority
interests
Sharehold
ers’ equity
Balance at 31 December 2023
(3,683 )
(80,428 )
(365 )
Allocation of 2023 profit
- carried forward
(175 )
- dividends
(3,848 )
(2,928 )
(6,776 )
(1,887 )
(8,663 )
IFRS 2 measurement Stock Grant
(1,479 )
Treasury share transactions
(211 )
(211 )
(211 )
Hyperinflation (IAS 29)
Other changes
(7 )
(7 )
(7 )
Change in translation reserve
(12,715 )
(12,715 )
(12,146 )
Other components of the total result
(139 )
Total profit at 31 December 2024
(12,715 )
(139 )
(5,925 )
(4,391 )
Balance at 31 December 2024
(2,320 )
(93,143 )
(364 )
Allocation of 2024 profit
- carried forward
(55 )
- dividends
(347 )
(6,873 )
(7,220 )
(729 )
(7,949 )
IFRS 2 measurement Stock Grant
Treasury share transactions
(1,879 )
(1,879 )
(1,879 )
Hyperinflation (IAS 29)
Change in translation reserve
(23,141 )
(23,141 )
(984 )
(24,125 )
Other components of the total result
Total profit at 31 December 2025
(23,141 )
(17,752 )
(17,077 )
Balance at 31 December 2025
(4,199 )
(116,284 )
(287 )
Sabaf Group | Consolidated financial statements at 31 December 2025
142
Consolidated
statement of cash flows
2025
2024
Cash and cash equivalents at beginning of year
Profit for the year
Adjustments for:
- Depreciations and amortisation
- Write-downs of non-current assets
- Realised gains/losses
(190 )
- Valuation of the stock grant plan
- Profits and losses from equity investments
- Monetary revaluation IAS 29
- Net financial income and expenses
(6,055 )
- Income tax
- Non-monetary foreign exchange differences
(1,521 )
Change in post-employment benefits
(117 )
Change in risk provisions
(33 )
Change in trade receivables
(310 )
(9,745 )
Change in inventories
(3,467 )
(3,520 )
Change in trade payables
(1,578 )
(484 )
Change in net working capital
(5,355 )
(13,749 )
Change in other receivables and payables, deferred taxes
Payment of taxes
(2,238 )
(1,960 )
Payment of financial expenses
(3,543 )
(3,813 )
Collection of financial income
Cash flows from operations
Investments in non-current assets
- intangible
(1,647 )
(3,030 )
- tangible
(16,858 )
(12,132 )
- financial
Disposal of non-current assets
Cash flow absorbed by investments
(17,955 )
(14,706 )
Free cash flow
Repayment of loans
(41,882 )
(27,469 )
Raising of loans
Short-term financial assets
(1,153 )
Purchase/sale of treasury shares
(1,879 )
(211 )
Payment of dividends
(7,949 )
(8,663 )
Cash flow absorbed by financing activities
(9,047 )
(16,773 )
Foreign exchange differences
(4,191 )
(1,266 )
Net cash flows for the year
(5,712 )
Cash and cash equivalents at end of year (Note 11)
Sabaf Group | Consolidated financial statements at 31 December 2025
143
Sabaf Group | Consolidated financial statements at 31 December 2025
144
Sabaf Group | Consolidated financial statements at 31 December 2025
145
Sabaf Group | Consolidated financial statements at 31 December 2025
146
Sabaf Group | Consolidated financial statements at 31 December 2025
147
Sabaf Group | Consolidated financial statements at 31 December 2025
148
Sabaf Group | Consolidated financial statements at 31 December 2025
149
Sabaf Group | Consolidated financial statements at 31 December 2025
150
Sabaf Group | Consolidated financial statements at 31 December 2025
151
Sabaf Group | Consolidated financial statements at 31 December 2025
152
Sabaf Group | Consolidated financial statements at 31 December 2025
153
Sabaf Group | Consolidated financial statements at 31 December 2025
154
Sabaf Group | Consolidated financial statements at 31 December 2025
155
Sabaf Group | Consolidated financial statements at 31 December 2025
156
Sabaf Group | Consolidated financial statements at 31 December 2025
157
Sabaf Group | Consolidated financial statements at 31 December 2025
158
Sabaf Group | Consolidated financial statements at 31 December 2025
159
Sabaf Group | Consolidated financial statements at 31 December 2025
160
Sabaf Group | Consolidated financial statements at 31 December 2025
161
Sabaf Group | Consolidated financial statements at 31 December 2025
162
Sabaf Group | Consolidated financial statements at 31 December 2025
163
Comments on significant balance sheet items
Sabaf Group | Consolidated financial statements at 31 December 2025
164
Sabaf Group | Consolidated financial statements at 31 December 2025
165
Sabaf Group | Consolidated financial statements at 31 December 2025
166
Goodwill
Pursuant to IAS 36, goodwill is allocated to different cash-generating units ("CGUs"), which
are identified on the basis of operating segments, according to geographic logics and
corresponding to the businesses being acquired. The CGUs to which goodwill has been
allocated are shown below:
Sabaf Group | Consolidated financial statements at 31 December 2025
167
CGU
31/12/2024
Revaluation
IAS29
Forex
differences
Write-downs
31/12/2025
Professional
burners
1,770
-
-
-
1,770
Electronic
components
18,299
4,113
(4,984)
-
17,428
P.G.A. electronic
components
1,804
-
-
-
1,804
Hinges
4,414
-
-
-
4,414
C.M.I. hinges
3,680
-
-
-
3,680
MEC hinges
843
-
(96)
-
747
Total
30,810
4,113
(5,080)
-
29,843
The Group verifies the ability to recover goodwill (“Impairment test”) at least once a year
or more frequently if there are indications of impairment. Recoverable amount is
determined through value of use, by discounting expected cash flows.
The main assumptions used to determine the value of use of the different CGUs refer a) to
the financial flows deriving from company
business plans
, b) to the discount rate and c)
to the long term growth rate.
Determining cash flows
The management defined a single plan for each CGU with respect to the 2026-2028 period,
which represents the best estimate of the expected trend in operations, based on corporate
strategies and the growth indices of the specific sector and reference markets. In particular,
the forecasts for the first year of the forecast plan (2026) were developed based on the
Group's 2026 budget, approved by the Parent Company's Board of Directors on 18
December 2025; the forecasts for the next two years (2027 and 2028) were determined
analytically while updating the Group's 2026 - 2028 Business Plan. The multi-year plans of
each CGU were submitted for approval to the Boards of Directors of the Group companies
to which each CGU belongs and to the Parent Company's Board of Directors at the same
time as the impairment tests were approved.
Revenues were estimated on the basis of information obtained from customers and on the
basis of management's expectations regarding the trend of the reference market, which
anticipate a moderate recovery from the weak phase that characterised 2025. The
contribution of revenues from new products already developed, weighted by their
probability of success, was also estimated. The plans were prepared under the assumption
of substantially unchanged raw material prices, in view of the proven historical ability of
CGUs to pass on changes in material costs to selling prices. Estimates of revenues and
profitability incorporate elements of caution to reflect geopolitical and macroeconomic
uncertainty. It should be noted that the CGUs to which intangible assets with an indefinite
useful life are allocated are not exposed to significant transitional climatic risks, that energy
costs have an extremely low incidence compared to the industrial cost of products, and
that the related production processes do not directly use fossil fuels (gas) as an energy
source.
The business plans consider only real growth, do not take into account expected inflation
and have been prepared in Euro, i.e. in the currency in which - with the exception of MEC
Sabaf Group | Consolidated financial statements at 31 December 2025
168
- the sales prices and main operating costs of the CGUs are expressed. The business plan
of MEC, which operates in dollars, was prepared under the assumption of a stable
euro/dollar exchange rate. Furthermore, with reference to the "Electronic Components"
CGU, the plan does not take into account the accounting effects of IAS 29 (hyperinflation)
due to their non-monetary nature.
Lastly, cash flows for the 2026-2028 period were augmented by the so-called terminal
value, which expresses the operating flows that the CGU is expected to generate from the
fourth year to infinity and determined based on the perpetual income.
Discount rate
The discount rate used to discount expected future cash flows was determined for each
CGU, and is represented by the weighted average cost of capital (WACC), which reflects
the current market valuation of the time value of money for the period considered and the
specific risks of the Group companies and their reference sectors. The values of the
discount rates used last year are shown below for comparison, and it should be noted that
the updating of the panel of comparables had no significant effect.
Long-term growth rate
In addition to the flows expected for the period 2026-2027, which are explicitly forecasted,
there is also the so-called
Perpetuity, representing the Terminal Value. This was
determined, according to the same logics adopted in the previous year, using a long-term
growth rate (g-rate), specific to each CGU, reflecting the growth potential of the area in
question.
The table below shows the main basic assumptions used in performing the impairment
test.
CGU
Discount rate
(WACC) %
Long-term growth
rate (g-rate)
Cash flow
horizon
Terminal Value
Calculation
Method
2025
2024
2025
2024
Professional burners
8.58%
9.27%
2.00%
2.00%
3 years old
Perpetual
instalment
Electronic components
11.24%
12.90%
2.50%
2.50%
3 years old
Perpetual
instalment
P.G.A. electronic components
8.60%
9.78%
2.50%
2.50%
3 years old
Perpetual
instalment
Hinges
8.90%
9.70%
2.00%
2.00%
3 years old
Perpetual
instalment
C.M.I. hinges
8.87%
9.34%
2.00%
2.00%
3 years old
Perpetual
instalment
MEC hinges
9.02%
9.38%
2.00%
2.00%
3 years old
Perpetual
instalment
The changes in the discount rates, compared to those used when preparing the
consolidated financial statements as at 31 December 2024, are mainly due to the reduction
in the cost of debt and the risk-free rate.
Sabaf Group | Consolidated financial statements at 31 December 2025
169
The impairment tests carried out according to the methods described above and approved
by the Board of Directors on 03 March 2026, with the opinion of the Control and Risk
Committee, did not reveal any impairment losses, as the recoverable value of the CGUs at
31 December 2025 was higher than the corresponding net invested capital (carrying
amount).
The following activities were carried out to complete the analysis:
▪ a sensitivity analysis aimed at verifying the recoverability of goodwill against
changes in the basic assumptions used to determine discounted cash flows. In
particular, the table below shows the WACC, g-rate and EBITDA that would result
in an impairment if all other basic assumptions remained unchanged:
Break-even values in a "steady case" situation
Sensitivity analysis
WACC
g-rate
EBITDA
Professional burners
24.0%
n/a
-60.7%
Electronic components
11.7%
1.96%
-4.8%
P.G.A. electronic components
13.5%
n/a
-37.7%
Hinges
21.5%
n/a
-54.3%
C.M.I. hinges
24.4%
n/a
-54.0%
MEC hinges
18.6%
n/a
-45.5%
with reference to the break-even values of the g-rate, it should be noted that, with
the exception of the investment in P.G.A., even if the g-rate were 0, no impairment
loss would occur;
▪ the verification of the recoverability of goodwill against possible upward and
downward 50 bps changes in WACC and 25 bps changes in the g-rate
;
▪ the verification of the recoverability of goodwill against possible 10% and 20%
downward changes in EBITDA.
With reference to the "Electronic components" CGU, sensitivity analyses show a difference
between recoverable value and net invested capital ranging from +4.1 million to -€5.4
million. With reference to the other CGUs submitted to impairment testing,
none of the
scenarios covered by the sensitivity analysis showed a recoverable value lower than the
carrying value.
Lastly, in examining possible indicators of impairment, the Group also took into
consideration the relationship between stock market capitalisation (€175.7 million) and the
carrying value of the Group's equity at 31 December 2025 (€151.9 million), which shows a
positive difference.
Sabaf Group | Consolidated financial statements at 31 December 2025
170
Sabaf Group | Consolidated financial statements at 31 December 2025
171
Sabaf Group | Consolidated financial statements at 31 December 2025
172
Sabaf Group | Consolidated financial statements at 31 December 2025
173
Sabaf Group | Consolidated financial statements at 31 December 2025
174
Stock grant reserve
Items "Retained earnings, other reserves" of €73,042 thousand includes, at 31 December
2025, the stock grant reserve of €989 thousand, which included the measurement at 31
December 2025 of the fair value of rights assigned to receive shares of the Parent Company
relating to the new 2024 – 2026 Stock Grant Plan, medium- and long-term incentive plan
for directors and employees of the Sabaf Group, please refer to Note 39 for further details.
Cash Flow Hedge reserve
The following table shows the change in the Cash Flow Hedge reserve related to the
application of IFRS 9 on derivative contracts and referring to the recognition in net equity
of the effective part of the derivative contracts signed to hedge the foreign exchange rate
risk for which the Group applies hedge accounting.
Value at 31 December 2024
(65)
Change during the period
132
Value at 31 December 2025
67
Sabaf Group | Consolidated financial statements at 31 December 2025
175
The characteristics of the derivative financial instruments that gave rise to theCash Flow
Hedge reserve and the accounting effects on other items in the financial statements are
broken down in Note 37, in the paragraph Foreign exchange risk management.
Sabaf Group | Consolidated financial statements at 31 December 2025
176
Sabaf Group | Consolidated financial statements at 31 December 2025
177
17. PROVISIONS FOR RISKS AND CHARGES
31/12/2024
Provisions
.
Utilisation
Forex
differences
31/12/2025
Provision for
agents’
indemnities
191
4
(14)
-
181
Product
guarantee fund
31
29
-
-
60
Provision for
legal risks
98
521
(12)
-
607
Total
320
554
(26)
-
848
The provision for agents’ indemnities covers amounts payable to agents if the Group
terminates the agency relationship.
The product guarantee fund covers the risk of returns or charges by customers for products
already sold.
Sabaf Group | Consolidated financial statements at 31 December 2025
178
During the financial year, provisions were made to the legal risks provision in respect of
disputes arising in the ordinary course of business; these reflect the best estimate of the related
contingent liabilities based on the information currently available.
The provisions for risks, which represent the estimate of future payments made based on
historical experience, have not been discounted because the effect is considered negligible.
21. OTHER CURRENT PAYABLES
31/12/2025
31/12/2024
Change
To employees
7,132
6,978
154
To social security institutions
3,572
3,410
162
To agents
283
337
(54)
Advances from customers
639
884
(245)
Other current payables
6,343
5,869
474
Total
17,969
17,478
491
At the beginning of 2026, payables due to employees and social security institutions were
paid in accordance with the scheduled expiry dates.
Sabaf Group | Consolidated financial statements at 31 December 2025
179
22. DEFERRED TAX ASSETS AND LIABILITIES
Sabaf Group | Consolidated financial statements at 31 December 2025
180
Sabaf Group | Consolidated financial statements at 31 December 2025
181
Sabaf Group | Consolidated financial statements at 31 December 2025
182
Sabaf Group | Consolidated financial statements at 31 December 2025
183
Sabaf Group | Consolidated financial statements at 31 December 2025
184
Sabaf Group | Consolidated financial statements at 31 December 2025
185
34. EARNINGS PER SHARE
Basic and diluted EPS are calculated based on the following data:
Profit
(
€
/000)
2025
2024
Profit for the year
5,180
6,928
Number of shares
2025
2024
Weighted average number of ordinary shares for
determining basic earnings per share
12,454,378
12,510,823
Dilutive effect from potential ordinary shares
-
-
Weighted average number of ordinary shares for
determining diluted earnings per share
12,454,378
12,510,823
Sabaf Group | Consolidated financial statements at 31 December 2025
186
Earnings per share
(in
€
)
2025
2024
Basic earnings per share
0.416
0.554
Diluted earnings per share
0.416
0.554
Basic earnings per share are calculated on the average number of outstanding shares
minus the average number of treasury shares, equal to 232,417 in 2025 (175,972 in 2024).
Diluted earnings per share are calculated taking into account any shares approved but not
yet subscribed.
Sabaf Group | Consolidated financial statements at 31 December 2025
187
Sabaf Group | Consolidated financial statements at 31 December 2025
188
Sabaf Group | Consolidated financial statements at 31 December 2025
189
Sabaf Group | Consolidated financial statements at 31 December 2025
190
Sabaf Group | Consolidated financial statements at 31 December 2025
191
39. SHARE-BASED PAYMENTS
2024 – 2026 Stock Grant Plan
A plan for the free allocation of shares, approved by the Shareholders' Meeting of 8 May
2024, is in place. The related Regulations were approved by the Board of Directors on 18
June 2024. The main features of this Plan are summarised below.
Aim
The Plan aims to promote and pursue the involvement of the beneficiaries whose activities
are considered relevant for the implementation of the contents and the achievement of the
objectives set out in the Business Plan, foster loyalty development and motivation of
managers, by increasing their entrepreneurial approach as well as align the interests of
management with those of the Company's shareholders more closely, with a view to
promoting the sustainable success of the Company and the Group, the achievement of
specific levels of growth and development, and the Group’s sustainable objectives.
Sabaf Group | Consolidated financial statements at 31 December 2025
192
Purpose
The purpose of the Plan is the free allocation to the Beneficiaries of a maximum of 270,000
Options, each of which entitles them to receive free of charge, under the terms and
conditions provided for by the Regulations of the relevant Plan, 1 Sabaf S.p.A. share.
The free allocation of Sabaf S.p.A. shares is conditional on the achievement, in whole or
in part, with progressiveness, of the business targets related to the ROI and EBITDA and
the social and environmental targets.
Beneficiaries
The Plan is intended for persons who hold or will hold key positions in the Company
and/or its Subsidiaries, with reference to the implementation of the contents and the
achievement of the objectives of the 2024 - 2026 Business Plan. A total of 263,000 Rights
were allocated to the Beneficiaries already identified.
Deadline
The 2024 - 2026 Plan is due to expire in 2027.
Accounting impacts and Fair Value measurement methods
In connection with this Plan, €595,000 (Note 28) were recognised in personnel costs during
the year, an equity reserve of the same amount (Note 13) was recognised as a balancing
entry.
In line with the date on which the beneficiaries became aware of the assignment of the
rights and terms of the plan, the grant date was set at 1 July 2024.
The main assumptions made at the beginning of the vesting period and the methods for
determining the fair value at the end of the reporting period are illustrated below. The
following economic and financial parameters were taken into account in determining the
fair value per share at the start of the vesting period:
Share price on grant date adjusted for dividends
€16.60
Dividend yield
2.90%
Expected volatility per year
31.30%
Interest rate per year
3.10%
Sabaf Group | Consolidated financial statements at 31 December 2025
193
Based on the exercise right at the different dates established by the Plan Regulations and
on the estimate of the expected probability of achieving the objectives for each reference
period, the unitary fair value at 31 December 2025 was determined as follows:
Rights relating to objectives
measured on ROI
Total value on ROI
-
Fair Value
-
Rights on ROI
35%
Rights relating to objectives
measured on EBITDA
Total value on EBITDA
10.79
Fair Value
4.86
Rights on EBITDA
45%
Rights relating to ESG
objectives measured on
personnel training
Total value on "Personnel
training"
14.02
Fair Value
0.70
Rights on "Personnel
training".
5%
Rights relating to ESG
objectives measured on safety
indicator
Total value on "Safety
indicator”
10.17
Fair Value
0.51
Rights on "Safety indicator”
5%
Rights relating to ESG
objectives measured on
reduction of emissions.
Total value on "Reduction
of emissions”
13.73
Fair Value
1.37
Rights on "Reduction of
emissions”
10%
Fair Value per share
7.44
Sabaf Group | Consolidated financial statements at 31 December 2025
194
42. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
In light of the sudden death, on 18 February 2026, of the company's CEO, Pietro Iotti, the
Company promptly made changes to its governance. By resolution of 18 February 2026,
the Board of Directors assigned ad interim to director and CFO Mr Gianluca Beschi the
powers previously granted to Mr Iotti.
On 24 March 2026, the Board of Directors confirmed Gianluca Beschi as CEO and CFO
and appointed Mr Andrea Bonfadelli, previously Technical Director of the Gas Division
and Group Supply Chain Director, as General Manager of the Company, by attributing
them with the relative delegations and powers.
Sabaf Group | Consolidated financial statements at 31 December 2025
195
Sabaf Group | Consolidated financial statements at 31 December 2025
196
Website: www.sabafgroup.com
Sabaf Group | Consolidated financial statements at 31 December 2025
197
Sabaf Group | Consolidated financial statements at 31 December 2025
198
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2025
199
SABAF S.p.A.
SEPARATE FINANCIAL
STATEMENTS
AT 31 DECEMBER 2025
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2025
200
CORPORATE BODIES
Board of Directors
Chairwoman
Claudio Bulgarelli
Chief Executive Officer
Gianluca Beschi
Director
Alessandro Potestà
Director
Christian Richard Prinoth
Director
Cinzia Saleri
Director (*)
Laura Ciambellotti
Director (*)
Francesca Michela Maurelli
Director (*)
Federica Menichetti
Director (*)
Daniela Toscani
(*) Independent directors
Board of Statutory Auditors
Chairwoman
Alessandra Tronconi
Statutory Auditor
Maria Alessandra Zunino de Pignier
Statutory Auditor
Mauro Vivenzi
Independent Auditors
EY S.p.A.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2025
201
Statement of financial position
(in
€
)
NOTES
31/12/2025
31/12/2024
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
1
40,437,982
41,411,044
Investment property
2
408,012
536,584
Intangible assets
3
7,583,103
8,300,878
Equity investments
4
129,504,556
130,922,447
Non-current financial assets
5
3,999,950
7,294,122
- of which from related parties
38
3,999,950
7,294,122
Non-current receivables
6
700,162
676,733
Deferred tax assets
22
2,337,203
3,137,496
Total non-current assets
184,970,968
192,279,305
CURRENT ASSETS
Inventories
7
23,873,967
23,870,264
Trade receivables
8
30,182,959
30,793,497
- of which from related parties
38
15,459,371
12,476,174
Tax receivables
9
3,778,164
4,748,643
- of which from related parties
38
919,768
400,798
Other current receivables
10
4,133,113
1,514,010
- of which from related parties
38
2,596,513
0
Current financial assets
11
256,390
375,526
Cash and cash equivalents
12
10,911,464
2,039,118
Total current assets
73,136,057
63,341,057
TOTAL ASSETS
258,107,025
255,620,362
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY
Share capital
13
12,686,795
12,686,795
Retained earnings, Other reserves
105,313,641
112,386,335
Profit for the year
10,652,567
1,327,683
Total shareholders’ equity
128,653,003
126,400,813
NON-CURRENT LIABILITIES
Loans
15
70,438,642
58,117,675
Post-employment benefits and retirement provisions
17
1,290,114
1,481,739
Provisions for risks and charges
18
281,139
262,604
Deferred tax liabilities
22
447,015
440,753
Total non-current liabilities
72,456,910
60,302,771
CURRENT LIABILITIES
Loans
15
23,484,284
34,525,653
- of which from related parties
38
0
3,000,000
Other financial liabilities
16
86,271
9,600
Trade payables
19
21,165,052
21,626,206
- of which from related parties
38
1,748,282
1,333,329
Tax payables
20
575,389
1,819,400
- of which from related parties
38
9,918
50,674
Other payables
21
11,686,116
10,935,920
Total current liabilities
56,997,112
68,916,778
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
258,107,025
255,620,362
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2025
202
Income statement
NOTES
2025
2024
(in
€
)
INCOME STATEMENT COMPONENTS
OPERATING REVENUE AND INCOME
Revenue
24
105,263,336
106,227,726
- of which from related parties
38
21,982,671
21,466,025
Other income
25
7,627,596
6,890,868
- of which from related parties
38
3,167,085
2,878,829
Total operating revenue and income
112,890,932
113,118,594
OPERATING COSTS
Materials
26
(48,576,571)
(50,960,776)
- of which from related parties
38
(2,772,721)
(2,221,821)
Change in inventories
3,704
2,033,845
Services
27
(25,315,677)
(24,605,982)
- of which to related parties
38
(559,124)
(322,630)
Personnel costs
28
(32,526,643)
(32,175,450)
Other operating costs
29
(965,720)
(799,802)
Costs for capitalised in-house work
1,812,057
2,608,193
Total operating costs
(105,568,850)
(103,899,973)
OPERATING PROFIT BEFORE DEPRECIATION AND
AMORTISATION,
CAPITAL GAINS/LOSSES, WRITE-DOWNS/WRITE-
BACKS
OF NON-CURRENT ASSETS
7,322,082
9,218,621
Amortisation/depreciation
1,2,3
(8,785,485)
(8,117,441)
Capital gains/(losses) on disposals of non-current assets
572,799
685,223
- of which to related parties
38
446,512
643,810
EBIT
(890,604)
1,786,403
Financial income
30
360,332
943,995
- of which to related parties
38
266,194
694,171
Financial expenses
31
(2,642,331)
(3,479,369)
- of which to related parties
(30,240)
(138,299)
Exchange rate gains and losses
32
(1,542,954)
824,669
Profits and losses from equity investments
33
14,273,439
1,098,982
- of which to related parties
14,273,439
1,107,220
PROFIT BEFORE TAXES
9,557,882
1,174,686
Income taxes
34
1,094,686
152,998
PROFIT FOR THE YEAR
10,652,568
1,327,683
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2025
203
Comprehensive income statement
2025
2024
(in €)
PROFIT FOR THE YEAR
10,652,567
1,327,683
Total profits/losses that will not be subsequently
reclassified under profit (loss) for the year
Actuarial evaluation of post-employment benefits
45,739
31,729
Tax effect
(10,977)
(7,615)
34,762
24,114
Total profits/losses that will not be subsequently
reclassified under profit (loss) for the year
Hedge accounting for derivative financial instruments
67,378
0
Total other profits/(losses) net of taxes for the year
102,140
24,114
TOTAL PROFIT
10,754,707
1,351,797
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2025
204
Statement of changes in shareholders' equity
(€/000)
Share
capital
Share
premium
reserve
Legal
reserve
Treasury
shares
Actuarial
valuation of
Post-
employment
benefit reserve
Other
reserves
Profit
for the year
Total
shareholders’
equity
Balance at 31 December 2023
12,687
26,160
2,307
(3,684)
(392)
91,360
3,504
131,942
Allocation of 2023 profit:
To legal reserve
175
(175)
0
Payment of dividends
(3,447)
(3,329)
(6,776)
Purchase/sale of treasury shares
(211)
(211)
Stock grant plan (IFRS 2)
1,573
(1,479)
94
Total profit at
31/12/24
24
1,328
1,352
Balance at 31 December 2024
12,687
26,160
2,482
(2,322)
(368)
86,434
1,328
126,401
Allocation of 2024 profit:
- To legal reserve
55
(55)
0
- Payment of dividends
(5,947)
(1,273)
(7,220)
Purchase/sale of treasury shares
(1,879)
(1,879)
Stock grant plan (IFRS 2)
596
596
Total profit at
31/12/25
35
67
10,653
10775
Balance at 31 December 2025
12,687
26,160
2,482
(4,201)
(333)
81,205
10,653
128,653
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
205
Statement of Cash Flows
(
€
/000)
2025 FY
2024 FY
Cash and cash equivalents at beginning of year
2,039
13,899
Profit for the year
10,653
1,328
Adjustments for:
- Depreciations and amortisation
8,785
8,117
- Realised gains
(573)
(685)
- Profits and losses from equity investments
(14,273)
(1,099)
- Valuation of the stock grant plan
596
94
- Net financial income and expenses
2,282
2,535
- Non-monetary foreign exchange differences
189
(393)
- Income tax
(1,095)
(153)
Change in post-employment benefits
(157)
(68)
Change in risk provisions
19
(35)
Change in trade receivables
611
(2,088)
Change in inventories
(4)
(2,034)
Change in trade payables
(461)
(979)
Change in net working capital
146
(5,101)
Change in other receivables and payables, deferred taxes
2,362
1,957
Payment of financial expenses
(2,642)
(2,907)
Collection of financial income
551
857
Cash flows from operations
6,841
4,448
Investments in non-current assets
- intangible
(1,328)
(6,618)
- tangible
(8,078)
(2,833)
- financial
(1,647)
(8,214)
Disposal of non-current assets
3,507
3,104
Cash flow absorbed by investments
(7,545)
(14,561)
Free cash flow
(3,315)
(10,113)
Repayment of loans
(37,503)
(22,759)
Raising of loans
38,353
14,988
Change in financial assets
3,106
8,833
Purchase/Sale of treasury shares
(1,879)
(211)
Payment of dividends
(7,220)
(6,776)
Collection of dividends
14,719
4,177
Cash flow absorbed by financing activities
9,576
(1,747)
Total cash flows
8,872
(11,860)
Cash and cash equivalents at end of year (Note 12)
10,911
2,039
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
206
EXPLANATORY NOTES
ACCOUNTING STANDARDS
Statement of compliance and basis of presentation
The separate financial statements of Sabaf S.p.A. for the financial year 2025 have been
prepared in compliance with the International Financial Reporting Standards (IFRS) issued
by the International Accounting Standards Board (IASB) and adopted by the European
Union. Reference to IFRS also includes all current International Accounting Standards
(IAS).
The separate financial statements are drawn up in euro, which is the currency in the
economy in which the Company operates. The income statement, the comprehensive
income statement and the statement of financial position schedules are prepared in euro,
while the statement of cash flows, the statement of changes in shareholders’ equity and
the values reported in the explanatory notes are in thousands of euro.
The financial statements have been prepared on a historical cost basis except for some
revaluations of property, plant and equipment undertaken in previous years, and are
considered a going concern. With reference to this assumption, the Company assessed
that it is a going concern (as defined by paragraphs 25 and 26 of IAS 1), also due to the
strong competitive position, high profitability of the Sabaf Group and solidity of the
financial structure.
Sabaf S.p.A., as the Parent Company, also prepared the consolidated financial statements
of the Sabaf Group at 31 December 2025.
Financial statements
The Company adopted the following formats:
• current and non-current assets and current and non-current liabilities are stated
separately in the statement of the financial position;
• an income statement that expresses costs using a classification based on the nature
of each item;
• a comprehensive income statement that expresses revenue and expense items not
recognised in profit for the year as required or permitted by IFRS;
• a statement of cash flows that presents cash flows originating from operating
activity, using the indirect method.
Use of these formats permits the most meaningful representation of the Company’s capital,
business and financial status.
Accounting policies
The accounting standards and policies applied for the preparation of the separate financial
statements at 31 December 2025, unchanged versus the previous year, are shown below:
Property, plant and equipment
These are recognised at purchase or manufacturing cost. The cost includes directly
chargeable ancillary costs. These costs also include revaluations undertaken in the past
based on monetary revaluation rules or pursuant to company mergers.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
207
Depreciation is calculated according to rates deemed appropriate to spread the carrying
value of tangible assets over their useful working life. Estimated useful working life in years,
unchanged compared to previous financial years, is as follows:
Buildings
33
Light constructions
10
General plant
10
Specific plant and machinery
6 – 10
Equipment
4
Furniture
8
Electronic equipment
5
Vehicles and other transport means
5
Ordinary maintenance costs are expensed in the year in which they are incurred; costs
that increase the asset value or useful working life are capitalised and depreciated
according to the residual possibility of utilisation of the assets to which they refer.
Land is not depreciated.
Leased assets
The Company assesses at the time of signing an agreement whether it is, or contains, a
lease, or if the contract gives the right to control the use of an identified asset for a period
of time in exchange for a consideration.
The Company adopts a single recognition and measurement model for all leases according
to which the assets acquired relating to the right of use are shown under assets at purchase
value less depreciation, any impairment losses and adjusted for any re-measurement of
lease liabilities.
Assets are depreciated on a straight-line basis from the starting date of the agreement until
the end of the useful life of the asset or the end of the lease agreement, whichever comes
first. Set against recognition of such assets, the amounts payable to the lessor, are posted
among short- and medium-/long-term payables, by measuring them at the present value
of the lease payments not yet made. Moreover, financial charges pertaining to the period
are charged to the income statement.
Adoption of the accounting standard IFRS 16 “Leases”
The Company applied IFRS 16 from 1 January 2019 by using the amended retrospective
approach.
In adopting IFRS 16, the Company made use of the exemption granted in paragraph 5 a)
in relation to leases with a duration of less than 12 months (known as short-term leases)
and the exemption granted in paragraph 5 b) in relation to lease agreements whose
underlying asset is a low-value asset. For these agreements, lease payments are recognised
in the income statement on a straight-line basis for the duration of the respective
agreements.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
208
When evaluating the lease liabilities, Sabaf S.p.A. discounted the payments due for the
lease using the incremental borrowing rate, the weighted average of which was 3.12% on
31 December 2025 and 2.63% on 31 December 2024.
The lease term is calculated based on the non-cancellable period of the lease, including
the periods covered by the option to extend or to terminate the lease if it is reasonably
certain that those options will be exercised or not exercised, taking account of all relevant
factors that create an economic incentive relating to those decisions.
Assets held for sale
The Company classifies non-current assets as held for sale if their carrying value will be
recovered mainly through a sale transaction, rather than through their continued use.
These non-current assets classified as held for sale are measured at the lower of their
carrying value and their fair value less costs to sell. Selling costs are the additional costs
directly attributable to the sale, excluding financial expenses and taxes.
The condition for classification as held for sale is only met when the sale is highly probable
and the asset is available for immediate sale in its present condition. The actions required
to complete the sale should indicate that significant changes to the sale are unlikely or that
the sale will be cancelled. Management must be committed to the sale, which should be
completed within one year from the date of classification.
Depreciation of property, plant and equipment and amortisation of intangible assets stops
when they are classified as available for sale.
Assets and liabilities classified as held for sale are presented separately in the financial
statements.
Investment property
Investment property is valued at cost, including revaluations undertaken in the past based
on monetary revaluation rules or pursuant to company mergers.
The depreciation is calculated based on the estimated useful life, considered to be 33 years.
If the recoverable amount of the investment property – determined based on the market
value of the properties – is estimated to be lower than its carrying value, the asset’s
carrying value is reduced to the lower recoverable amount, recognising impairment in the
income statement.
When there is no longer any reason for a write-down to be maintained, the carrying value
of the asset (or cash generating unit) is increased to the new value stemming from the
estimate of its recoverable amount – but not beyond the net carrying value that the asset
would have had if it had not been written down for impairment. Reversal of impairment
loss is recognised in the income statement.
Intangible assets
As established by IAS 38, intangible assets acquired or internally produced are recognised
as assets when it is probable that use of the asset will generate future economic benefits
and when asset cost can be measured reliably. If it is considered that these future economic
benefits will not be generated, the development costs are written down in the year in which
this is ascertained.
Such assets are measured at purchase or production cost and - if the assets concerned
have a finite useful life - are amortised on a straight-line basis over their estimated useful
life.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
209
In order to reflect the higher degree of innovation in the induction sector compared to the
other sectors in which the Company operates, as of these half-yearly separate financial
statements the estimated useful life of development costs related to induction cooking
projects has been set at 5 years (previously 10 years).
The useful life of projects other than those for induction cooking for which development
costs are capitalised is estimated to be 10 years.
The SAP management system is amortised over five years.
Equity investments
Equity investments in subsidiaries, associates and joint-ventures are stated in the accounts
at cost. In accordance with IAS 36, the value recognised in the financial statements is
subject to an impairment test if there are indications of possible impairment.
Equity investments in companies other than subsidiaries, associates and joint ventures are
classified as financial assets measured at fair value, which normally corresponds to the
transaction price including directly attributable transaction costs. Subsequent changes in
fair value are recognised in the Income statement (FVPL) or, if the option is exercised in
accordance with the standard, in the Statement of comprehensive income (FVOCI) under
the heading "Instrument reserve at FVOCI".
Impairment
At each end of the reporting period, Sabaf S.p.A. reviews the carrying value of its property,
plant and equipment, intangible assets and equity investments to determine whether there
are signs of impairment of these assets. If there is any such indication, the recoverable
amount of said assets is estimated so as to determine the total of the write-down. If it is
not possible to estimate the recoverable amount individually, the Company estimates the
recoverable amount of the cash generating unit (CGU) to which the asset belongs. In
particular, the recoverable amount of the cash generating units (which generally coincide
with the legal entity to which the capitalised assets refer) is verified by determining the
value of use. The recoverable amount is the higher of the net selling price and value of use.
In measuring the value of use, future cash flows net of taxes, estimated based on past
experience, are discounted to their present value using a pre-tax rate that reflects current
market valuations of the present cost of money and specific asset risk. The main
assumptions used for calculating the value of use concern the discount rate, growth rate,
expected changes in selling prices and cost trends during the period used for the
calculation. The growth rates adopted are based on future market expectations in the
relevant sector. Changes in the sales prices are based on past experience and on the
expected future changes in the market. The Company prepares operating cash flow
forecasts based on the most recent budgets approved by the Boards of Directors of the
investees, draws up four-year forecasts and determines the terminal value (current value
of perpetual income), which expresses the medium- and long-term operating flows in the
specific sector.
Furthermore, the Company checks the recoverable amount of its investees at least once a
year when the separate financial statements are prepared.
If the recoverable amount of an asset (or CGU) is estimated to be lower than its carrying
value, the asset’s carrying value is reduced to the lower recoverable amount, recognising
impairment of value in the income statement.
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When there is no longer any reason for a write-down to be maintained, the carrying value
of the asset (or cash generating unit) is increased to the new value stemming from the
estimate of its recoverable amount – but not beyond the net carrying value that the asset
would have had if it had not been written down for impairment. Reversal of impairment
loss is recognised in the income statement.
Inventories
Inventories are measured at the lower of purchase or production cost – determined using
the weighted average cost method – and the corresponding fair value represented by the
replacement cost for purchased materials and by the presumed realisable value for finished
and semi-processed products – calculated taking into account any manufacturing costs
and direct selling costs yet to be incurred. Inventory cost includes accessory costs and the
portion of direct and indirect manufacturing costs that can reasonably be assigned to
inventory items. Inventories subject to obsolescence and low turnover are written down
in relation to their possibility of use or realisation. Inventory write-downs are derecognised
in subsequent years if the reasons for such write-downs cease to exist.
Trade receivables and other financial assets
Initial recognition
Upon initial recognition, financial assets are classified, as the case may be, on the basis of
subsequent measurement methods, i.e. at amortised cost, at fair value recognised in other
comprehensive income (OCI) and at fair value recognised in the income statement.
The classification of financial assets at initial recognition depends on the characteristics of
the contractual cash flows of the financial assets and on the business model that the
Company uses to manage them.
Trade receivables that do not contain a significant financing component are valued at the
transaction price determined in accordance with IFRS 15. See the “Revenue from
Contracts with Customers” paragraph.
Other financial assets are recognised at fair value plus, in the case of a financial asset not
at fair value recognised in the income statement, transaction costs.
For a financial asset to be classified and measured at amortised cost or at fair value
recognised in OCI, it must generate cash flows that depend solely on the principal and
interest on the amount of principal to be repaid (known as ‘solely payments of principal
and interest (SPPI)’). This measurement is referred to as the SPPI test and is carried out at
the instrument level.
Subsequent measurement
- The measurement of financial liabilities depends on their classification, as
described below.
Financial assets at amortised cost (debt instruments)
This category is the most important for the Company. The Company measures the
financial assets at amortised cost if both of the following requirements are met:
• the financial asset is held as part of a business model whose objective is to hold
financial assets for the purpose of collecting contractual cash flows
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
211
- and
• the contractual terms of the financial asset envisage, at certain dates, cash flows
represented solely by payments of principal and interest on the amount of principal
to be repaid.
Financial assets at amortised cost are subsequently measured using the effective interest
method and are subject to impairment.
Gains and losses are recognised in the income
statement when the asset is derecognised, modified or revalued.
Financial assets at amortised cost of the Company include trade receivables.
Financial assets at fair value through profit or loss
This category includes all assets held for trading, assets designated at initial recognition as
financial assets measured at fair value with changes recognised in the income statement,
or financial assets that must be measured at fair value. Assets held for trading are all those
assets acquired for sale or repurchase in the short term. Derivatives, separated or
otherwise, are classified as financial instruments held for trading, unless they are
designated as effective hedging instruments. Financial assets with cash flows that are not
represented solely by principal and interest payments are classified and measured at fair
value through profit or loss, regardless of the business model. Financial instruments at fair
value with changes recognised in the income statement are recognised in the statement of
financial position at fair value and net changes in fair value are recognised in the income
statement. This category includes derivative instruments.
The Company does not hold financial assets as financial assets at fair value through profit
or loss with reclassification of cumulative gains and losses or financial assets as financial
assets at fair value through profit or loss without reversal of cumulative gains and losses
upon derecognition.
Cancellation
A financial asset (or, if applicable, part of a financial asset or part of a group of similar
financial assets) is firstly written off (e.g. removed from the statement of financial position
of the Company) when:
the rights to receive cash flows from the asset are extinguished, or
the Company transferred to a third party the right to receive financial flows from the
asset or has taken on the contractual obligation to pay them fully and without delay
and (a) transferred substantially all the risks and benefits of the ownership of the
financial asset or (b) did not substantially transfer or retain all the risks and benefits
of the asset, but transferred their control.
If the Company has transferred the rights to receive financial flows from an asset or has
signed an agreement on the basis of which it retains the contractual rights to receive the
cash flows of the financial asset, but assumes a contractual obligation to pay the financial
flows to one or more beneficiaries (pass-through), it considers whether or to what extent
it has retained the risks and benefits concerning the ownership. If it has not substantially
transferred or retained all the risks and benefits or has not lost control over it, the asset
continued to be recognised in the financial statements of the Company to the extent of its
residual involvement in the asset itself. In this case, the company also recognises an
associated liability. The transferred asset and the associated liability are measured in such
a way as to reflect the rights and obligations that pertain to the Company. When the
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
212
residual involvement of the entity is a guarantee in the transferred asset, the involvement
is measured based on the amount of the asset or the maximum amount of the
consideration received that the entity could be obliged to pay, whichever lower.
Provisions for risks and charges
Provisions for risks and charges are provisioned to cover losses and debts, the existence
of which is certain or probable, but whose amount or date of occurrence cannot be
determined at the end of the year. Provisions are stated in the statement of financial
position only when a legal or implicit obligation exists that determines the use of resources
with an impact on profit and loss to meet that obligation and the amount can be reliably
estimated. If the effect is significant, the provisions are calculated by updating future cash
flows estimated at a rate including taxes such as to reflect current market valuations of the
current value of the cash and specific risks associated with the liability.
Post-employment benefit
The post-employment benefit is provisioned to cover the entire liability accruing vis-à-vis
employees in compliance with current legislation and with national and supplementary
company collective labour contracts. This liability is subject to revaluation via application
of indices fixed by current regulations. Up to 31 December 2006, post-employment
benefits were considered defined-benefit plans and accounted for in compliance with IAS
19, using the projected unit-credit method. The regulations of this fund were amended by
Italian Law no. 296 of 27 December 2006 and subsequent Decrees and Regulations issued
during the first months of 2007. In the light of these changes, and, in particular, for
companies with at least 50 employees, post-employment benefits must now be considered
a defined-benefit plan only for the portions accruing before 1 January 2007 (and not yet
paid as at the end of the reporting period). Conversely, portions accruing after that date
are treated as defined-contribution plans.
Actuarial gains or losses are recognised immediately under "Other total profits/(losses)".
Trade payables and other financial liabilities
Initial recognition
All financial liabilities are initially recognised at fair value, in addition to directly
attributable transaction costs in case of mortgages, loans and payables.
The Company's financial liabilities include trade payables and other payables, mortgages
and loans, including current account overdrafts and derivative financial instruments.
Subsequent measurement
- The measurement of financial liabilities depends on their classification, as
described below.
-
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value with changes recognised in the income statement include
liabilities held for trading and financial liabilities initially recognised at fair value, with
changes recognised in the income statement. Liabilities held for trading are those liabilities
acquired in order to discharge or transfer them in the short term. This category also
includes derivative financial instruments subscribed by the Company and not designated
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
213
as hedging instruments in a hedging relationship pursuant to IFRS 9. Embedded
derivatives, separated from the main contract, are classified as financial instruments held
for trading, unless they are designated as effective hedging instruments. Gains or losses on
liabilities held for trading are recognised in the income statement. Financial liabilities are
designated at fair value with changes recognised in the income statement from the date of
initial recognition, only if the criteria of IFRS 9 are met.
Loans and payables
This is the most important category for the Company and includes interest-bearing
payables and loans. After initial statement, loans are valued using the amortised cost
approach, applying the effective interest rate method. Gains and losses are recognised in
the income statement when the liability is discharged, as well as through the amortisation
process. Amortised cost is calculated by recognising the discount or premium on the
acquisition and the fees or costs that are an integral part of the effective interest rate.
Amortisation at the effective interest rate is included in financial expenses in the income
statement.
Cancellation
A financial liability is derecognised when the obligation underlying the liability is
discharged, cancelled or fulfilled. If an existing financial liability is replaced by another
from the same lender, at substantially different conditions, or if the conditions of an
existing liability are substantially changed, this replacement or change is treated as a
derecognition of the original liability accompanied by the recognition of a new liability,
with any differences between the carrying values recognised in the income statement.
Policy for conversion of foreign currency items
Receivables and payables originally expressed in foreign currencies are converted into
euro at the exchange rates in force on the date of the transactions originating them. Forex
differences realised upon collection of receivables and payment of payables in foreign
currency are posted in the income statement. Income and costs relating to foreign-
currency transactions are converted at the rate in force on the transaction date.
At year-end, assets and liabilities expressed in foreign currencies are posted at the spot
exchange rate in force at the end of the reporting period and related foreign exchange
gains and losses are posted in the income statement. If conversion generates a net gain,
this value constitutes a non-distributable reserve until it is effectively realised.
Derivative instruments and hedge accounting
The Company’s business is exposed to financial risks relating to changes in exchange rates,
commodity prices and interest rates. The Company may decide to use derivative financial
instruments to hedge these risks.
Derivatives are initially recognised at cost and are then adjusted to fair value on
subsequent closing dates.
Changes in the fair value of derivatives designated and recognised as effective for hedging
future cash flows relating to the Company’s contractual commitments and planned
transactions are recognised directly in shareholders' equity, while the ineffective portion
is immediately posted in the income statement. If the contractual commitments or planned
transactions materialise in the recognition of assets or liabilities, when such assets or
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214
liabilities are recognised, the gains or losses on the derivative that were directly recognised
in equity are factored back into the initial valuation of the cost of acquisition or carrying
value of the asset or liability. For cash flow hedges that do not lead to recognition of assets
or liabilities, the amounts that were directly recognised in equity are included in the income
statement in the same period when the contractual commitment or planned transaction
hedged impacts profit and loss – for example, when a planned sale actually takes place.
For effective hedges of exposure to changes in fair value, the item hedged is adjusted for
the changes in fair value attributable to the risk hedged and recognised in the income
statement. Gains and losses stemming from the derivative’s valuation are also posted in
the income statement.
Changes in the fair value of derivatives not designated as hedging instruments are
recognised in the income statement in the period when they occur.
Hedge accounting is discontinued when the hedging instrument expires, is sold or is
exercised, or when it no longer qualifies as a hedge. At this time, the cumulative gains or
losses of the hedging instrument recognised in equity are kept in the latter until the planned
transaction actually takes place. If the transaction hedged is not expected to take place,
cumulative gains or losses recognised directly in equity are transferred to the year’s
income statement.
Embedded derivatives included in other financial instruments or contracts are treated as
separate derivatives when their risks and characteristics are not strictly related to those of
their host contracts and the latter are not measured at fair value with posting of related
gains and losses in the income statement.
Revenue recognition
Revenue is recognised net of return sales, discounts, allowances and bonuses, as well as
of the taxes directly associated with sale of goods and rendering of services.
Sales revenue is recognised when the company has transferred the significant risks and
benefits associated with ownership of the goods and the amount of revenue can be reliably
measured.
Revenues of a financial nature are recognised on an accrual basis.
Financial income
Finance income includes interest receivable on funds invested and income from financial
instruments, when not offset as part of hedging transactions. Interest income is recognised
in the income statement at the time of vesting, taking effective output into consideration.
Financial expenses
Financial expenses include interest payable on financial debt calculated using the effective
interest method and bank expenses. All the other financial expenses are recognised as
costs for the year in which they are incurred.
Income taxes for the year
Income taxes include all taxes calculated on the Company’s taxable income. Income taxes
are directly recognised in the income statement, with the exception of those concerning
items directly debited or credited to shareholders’ equity, in which case the tax effect is
recognised directly in shareholders’ equity. Other taxes not relating to income, such as
property taxes, are included among operating expenses. Deferred taxes are provisioned in
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215
accordance with the global liability provisioning method. They are calculated on all
temporary differences that emerge from the taxable base of an asset or liability and its
carrying value. Current and deferred tax assets and liabilities are offset when income taxes
are levied by the same tax authority and when there is a legal right to settle on a net basis.
Deferred tax assets and liabilities are measured using the tax rates that are expected to be
applicable in the years when temporary differences will be realised or settled.
Dividends
Dividends are posted on an accrual basis when the right to receive them materialises, i.e.
when shareholders approve dividend distribution.
Treasury shares
Treasury shares are booked as a reduction of shareholders’ equity. The carrying value of
treasury shares and revenues from any subsequent sales are recognised in the form of
changes in shareholders’ equity.
Equity-settled transactions
Some of the Company employees receive part of the remuneration in the form of share-
based payments, therefore employees provide services in exchange for shares ("equity-
settled transactions"). The cost of equity-settled transactions is determined by the fair
value at the date on which the assignment is made using an appropriate measurement
method, as explained in more detail in Note 45.
This cost, together with the corresponding increase in shareholders' equity, is recognised
under personnel costs (Note 28) over the period in which the conditions relating to the
achievement of objectives and/or the provision of the service are met. The cumulative
costs recognised for such transactions at the end of each reporting period up to the vesting
date are commensurate with the expiry of the vesting period and the best estimate of the
number of equity instruments that will actually vest.
Service or performance conditions are not taken into account when defining the fair value
of the plan at the assignment date. However, the probability of these conditions being met
is taken into account when defining the best estimate of the number of equity instruments
that will vest. Market conditions are reflected in the fair value at the assignment date. Any
other condition related to the plan that does not involve a service obligation is not
considered to be a vesting condition. Non-vesting conditions are reflected in the fair value
of the plan and result in the immediate recognition of the cost of the plan, unless there are
also service or performance conditions.
No cost is recognised for rights that do not vest in that the performance and/or service
conditions are not met. When the rights include a market condition or a non-vesting
condition, these are treated as if they had vested regardless of whether the market
conditions or other non-vesting conditions to which they are subject are met or not, it
being understood that all other performance and/or service conditions must be met.
If the conditions of the plan are changed, the minimum cost to be recognised is the fair
value at the assignment date in the absence of the change in the plan itself, on the
assumption that the original conditions of the plan are met. Moreover, a cost is recognised
for each change that results in an increase in total fair value of the payment plan, or that
is in any case favourable for employees; this cost is measured with reference to the date
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216
of change. When a plan is cancelled, any remaining element of the plan's fair value is
immediately expensed to the income statement.
Use of estimates
Preparation of the separate financial statements in accordance with IFRS requires
management to make estimates and assumptions that affect the carrying values of assets
and liabilities and the disclosures on contingent assets and liabilities at the end of the
reporting period. Actual results might differ from these estimates. Estimates are used to
measure tangible and intangible assets and investments subject to impairment testing, as
described earlier, as well as to measure the ability to recover prepaid tax assets, provisions
for bad debts, for inventory obsolescence, depreciation and amortisation, asset write-
downs, employee benefits, taxes, other provisions. Specifically:
Recoverability of value of tangible and intangible assets and investments
The procedure for determining impairment losses of tangible and intangible assets
described in “Impairment” implies – in estimating the value of use – the use of the Business
Plans of investees, which are based on a series of assumptions relating to future events
and actions of the investees’ management bodies, which may not necessarily come about.
In estimating market value, however, assumptions are made on the expected trend in
trading between third parties based on historical trends, which may not actually be
repeated.
Provisions for bad debts
Receivables are adjusted by the related bad debt provision to take into account their
recoverable amount. To determine the size of the write-downs, management must make
subjective assessments based on the documentation and information available regarding,
among other things, the customer’s solvency, as well as experience and historical payment
trends.
Provisions for inventory obsolescence and inventory write-downs at their expected sale
value
Inventories subject to obsolescence and slow turnover are systematically measured and
written down if their recoverable value is less than their carrying value. Write-downs are
calculated based on management assumptions and estimates, resulting from experience
and historical results.
If the expected sale value is less than the purchase or production cost, inventories of
finished goods are written down to market value, estimated on the basis of current selling
prices.
Employee benefits
The current value of liabilities for employee benefits depends on a series of factors
determined using actuarial techniques based on certain assumptions. Assumptions
concern the discount rate, estimates of future salary increases, and mortality and
resignation rates. Any change in the above-mentioned assumptions might have an effect
on liabilities for pension benefits.
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217
Share-based payments
Estimating the fair value of share-based payments requires the determination of the most
appropriate valuation model, which depends on the terms and conditions under which
these instruments are granted. This also requires the identification of data to feed into the
valuation model, including assumptions about the exercise period of the options, volatility
and dividend yield. The Company uses a binomial model for the initial measurement of
the fair value of share-based payments with employees.
Income taxes
Determining liabilities for Company taxes requires the use of management valuations in
relation to transactions whose tax implications are not certain at the end of the reporting
period. Furthermore, the valuation of deferred taxes is based on income expectations for
future years; the valuation of expected income depends on factors that might change over
time and have a significant effect on the valuation of deferred tax assets.
Other provisions
When estimating the risk of potential liabilities from disputes, the Directors rely on
communications regarding the status of recovery procedures and disputes from the
lawyers who represent the Company in litigation. These estimates are determined taking
into account the gradual development of the disputes, considering existing exemptions.
Climate change
With reference to the potential impact of climate change and energy transition on the
Company's activities, the Management carries out targeted analyses to identify and
manage the main risks and uncertainties to which the Company is exposed, adapting the
corporate strategy accordingly.
To date, climate-related matters have not had a significant impact on the opinions and
estimates used in preparing these Separate Financial Statements.
Estimates and assumptions are regularly reviewed and the effects of each change
immediately reflected in the income statement.
New standards
Amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates: lack
of exchangeability"
On 15 August 2023, the IASB issued amendments to IAS 21 that specify how an entity
should assess whether a currency is exchangeable and how it should determine a spot
exchange rate when exchangeability is lacking. When an entity estimates a spot exchange
rate because a currency is not exchangeable into another currency, it provides information
that enables users of its financial statements to understand how the currency that is not
exchangeable into the other currency affects, or is expected to affect, the entity's financial
result, financial position and cash flows. These amendments did not have an impact on
the Company's separate financial statements.
Standards issued but not yet in force
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218
IFRS 18 'Financial Statement presentation and disclosure'
In April 2024, the IASB issued IFRS 18, which replaces IAS 1 'Presentation of financial
statements'. The main changes introduced by the standard concern:
▪ new requirements for the presentation of the income statement, such as specific
totals/subtotals and the classification of expenses and revenues within four
categories (operating activities, investing activities, financing activities, income
taxes and discontinued operations);
▪ reporting on the basis of the new definition of management-defined performance
measures (MPMs);
▪ new provisions for the aggregation and disaggregation of financial information
based on the identified roles of the Primary Financial Statements (PFS) and notes;
▪ using the subtotal of operating profit as the starting point for the indirect method
of reporting cash flows from operating activities.
IFRS 18 and subsequent amendments to other standards are effective for financial years
beginning on or after 1 January 2027, but early application is permitted subject to
disclosure. IFRS 18 will apply retrospectively. The Company is currently assessing the
impact the changes will have on its financial statements and notes to the financial
statements.
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219
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220
Comments on the main items of the statement of financial position
1. PROPERTY, PLANT AND EQUIPMENT
Property
Plant and
equipment
Other
assets
Assets under
construction
Total
Cost
At 31 December 2023
44,879
178,911
41,307
3,350
268,447
Increases
91
2,808
2,019
2,126
7,044
Disposals
(52)
(6,673)
(470)
-
(7,195)
Reclassification
34
1,755
1,070
(2,878)
(19)
At 31 December 2024
44,952
176,801
43,926
2,598
268,277
Increases
94
3,230
1,563
4,041
8,928
Disposals
-
(4,920)
(507)
-
(5,427)
Reclassification
-
1,253
184
(1,696)
(259)
At 31 December 2025
45,046
176,364
45,166
4,943
271,519
Amortisation/depreciation
depreciations
At 31 December 2023
23,387
163,179
38,240
-
224,806
Depreciations for the year
1,184
4,164
1,585
-
6,933
Derecognition due to disposal
(52)
(4,638)
(183)
-
(4,873)
Reclassification
-
-
-
-
-
At 31 December 2024
24,519
162,705
39,642
-
226,866
Depreciations for the year
1,181
3,772
1,730
-
6,683
Derecognition due to disposal
-
(2,324)
(144)
-
(2,468)
Reclassification
-
-
-
-
0
At 31 December 2025
25,700
164,153
41,228
-
231,081
Net carrying value
At 31 December 2024
20,433
14,096
4,284
2,598
41,411
At 31 December 2025
19,346
12,211
3,938
4,943
40,438
The breakdown of the net carrying value of Property was as follows:
31/12/2025
31/12/2024
Change
Land
5,404
5,404
-
Industrial buildings
13,941
15,029
1,088
Total
19,345
20,433
1,088
Changes in property, plant and equipment resulting from the application of IFRS 16 are
shown below:
Property
Plant and
equipment
Other assets
Total
1 January 2025
83
-
812
895
Increases
-
-
566
566
Decreases
-
-
(133)
(133)
Amortisation/depreciation
(43)
-
282
239
At 31 December 2025
40
-
1,527
1,567
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
221
The main investments during the year were aimed at keeping the production equipment
up to date and fully operational. Furthermore, during 2025:
- a 2.5 MW photovoltaic system was installed on the roofs of the Ospitaletto plants,
representing an investment of €2.2 million.
- the foundry’s wastewater treatment plant has been replaced with a new system
designed to minimise energy consumption and maximise water reuse, representing
an investment of €341,000;
- machinery and equipment were manufactured in-house and subsequently sold to
other Group companies.
Decreases mainly relate to the disposal of machinery to other companies of the Sabaf
Group. Overall, the disposals for the year generated a net capital gain of €447 thousand.
Assets under construction include machinery under construction and advance payments
to suppliers of capital equipment.
At 31 December 2025, the Company found no endogenous or exogenous indicators of
impairment of its property, plant and equipment. As a result, the value of property, plant
and equipment was not submitted to impairment testing.
2. INVESTMENT PROPERTY
Cost
At 31 December 2023
1,771
Increases
-
Disposals
(165)
Reclassifications
-
At 31 December 2024
1,606
Increases
Disposals
(138)
Reclassifications
-
At 31 December 2025
1,468
Accumulated amortisation
At 31 December 2023
1,080
Depreciations for the year
90
Derecognition due to disposal
(101)
At 31 December 2024
1,069
Depreciations for the year
86
Derecognition due to disposal
(95)
At 31 December 2025
1,060
Net carrying value
At 31 December 2024
537
At 31 December 2025
408
Changes in investment property resulting from the application of IFRS 16 are shown
below:
Investment
property
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
222
1 January 2025
40
Increase
-
Decrease
-
Amortisation/depreciation
(40)
At 31 December 2025
-
The item Investment property includes non-operating buildings owned by the Company:
these are mainly properties for residential use, held for rental.
At 31 December 2025, the Company found no endogenous or exogenous indicators of
impairment of its investment property. As a result, the value of investment property was
not submitted to impairment testing.
3. INTANGIBLE ASSETS
Patents,
know-how and
software
Development
costs
Other
intangible
assets
Total
Cost
At 31 December 2023
7,790
11,303
667
19,760
Increases
25
2,780
27
2,832
Decreases
(38)
-
(5)
(43)
Reclassifications
19
-
-
19
At 31 December 2024
7,796
14,083
689
22,568
Increases
313
1,011
4
1,328
Decreases
(2)
(11)
(4)
(17)
Reclassifications
574
(586)
-
(12)
At 31 December 2025
8,681
14,497
689
23,867
Amortisation and
write-downs
At 31 December 2023
7,272
5,355
549
13,176
Amortisation/depreciation
208
881
4
1,093
Decreases
(2)
-
-
(2)
At 31 December 2024
7,478
6,236
553
14,267
Amortisation/depreciation
319
1,690
8
2,017
Decreases
-
-
-
-
At 31 December 2025
7,797
7,926
561
16,284
Net carrying value
At 31 December 2024
318
7,847
136
8,301
At 31 December 2025
884
6,571
128
7,583
Intangible assets have a finite useful life and, as a result, are amortised throughout their
life.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
223
The increase in the item “Patents, know-how and software” mainly comprises the costs of
upgrading the SAP management system to version 4-HANA.
Development costs mainly refer to the development of new products to extend the range
and features, both for gas cooking and induction cooking. Increases in development costs
include projects in progress and therefore not subject to amortisation.
At 31 December 2025, the Company found no endogenous or exogenous indicators of
impairment of its intangible assets. As a result, the value of property, plant and equipment
was not submitted to impairment testing.
4. EQUITY INVESTMENTS
31/12/2025
31/12/2024
Change
In subsidiaries
129,430
130,847
(1,417)
Other equity
investments
75
75
0
Total
129,505
130,922
(1,417)
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
The change in equity investments in subsidiaries is broken down in the table below:
Total historical
cost
31/12/2024
Share capital
increase
Reduction
due to
settlement
Total
historical
cost
31/12/202
5
Provision for
write-downs
31/12/2024
Changes
2025
Provision for
write-downs
31/12/2025
Faringosi Hinges srl
10,329
0
0
10,329
0
0
0
Sabaf do Brasil
13,161
0
0
13,161
0
0
0
Sabaf U.S.
139
0
(139)
0
0
0
0
Sabaf Appliance
Components (China)
8,900
1,000
0
9,900
(8,433)
(111)
(8,544)
Sabaf Mexico
18,979
647
0
19,626
0
0
0
Sabaf Turkey
40,913
0
0
40,913
0
0
0
A.R.C.
6,450
0
0
6,450
0
0
0
C.M.I.
21,044
0
0
21,044
0
0
0
Sabaf India
10,570
0
0
10,570
(3,045)
(2,814)
(5,859)
P.G.A.
8,275
0
0
8,275
0
0
0
Sabaf America
3,565
0
0
3,565
0
0
0
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
Net book
value
31/12/2024
Portion of
shareholders’
equity (calculated
in compliance with
IFRS)
31/12/2024
Difference
between
shareholders’
equity and
carrying
value
31/12/2024
Net book
value
31/12/2025
Portion of
shareholders’ equity
(calculated in
compliance with
IFRS)
31/12/2025
Difference
between
shareholders’
equity and
carrying value
31/12/2025
Faringosi Hinges srl
10,329
8,388
(1,941)
10,329
5,031
(5,298)
Sabaf do Brasil
13,161
18,913
5,752
13,161
16,567
3,406
Sabaf U.S.
139
4
(135)
0
0
0
Sabaf Appliance Components (China)
467
467
0
1,356
1,356
(0)
Sabaf Mexico
18,979
13,771
(5,208)
19,626
14,326
(5,300)
Sabaf Turkey*
40,913
78,507
37,594
40,913
55,303
14,390
A.R.C.
6,450
6,883
433
6,450
5,357
(1,093)
C.M.I.
21,044
22,764
1,720
21,044
19,026
(2,018)
Sabaf India
7,525
7,524
(1)
4,711
4,710
(1)
P.G.A.
8,275
3,948
(4,327)
8,275
4,724
(3,551)
Sabaf America
3,565
5,216
1,651
3,565
4,992
1,427
Total
130,847
166,385
35,538
129,430
131,392
1,962
* values determined in accordance with IAS 29 - Financial Reporting in Hyperinflationary Economies, applied to companies in Turkey as from 1 April 2022
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
226
Sabaf do Brasil
In 2025, Sabaf do Brasil achieved positive results. At 31 December 2025, Shareholders’
equity (converted into euros at the end-of-year exchange rate) is significantly higher than
the carrying amount of the equity investment.
Sabaf Turkey
In 2025, Sabaf Turkey achieved positive results. At 31 December 2025, Shareholders’
equity (converted into euros at the end-of-year exchange rate) is significantly higher than
the carrying amount of the equity investment.
Sabaf Appliance Components (China)
Sabaf Appliance Components (Kunshan) Co., Ltd. has been producing burners for the
Chinese market since 2015. Furthermore, the company has performed the function as
distributor on the Chinese market of Sabaf products manufactured in Italy and Turkey.
During the year, the Company carried out a capital increase of €1 million.
Given the loss in the financial year, the equity investment was written down by €111
thousand to bring the value in line with shareholders' equity.
Sabaf India
Sabaf India started production of gas components for the local market in 2022, where
strong growth is expected in the medium to long term, given that to date only a small
proportion of the population uses gas as a fuel source for cooking food.
The specific characteristics of the local market means there is uncertainty over the
recoverability of the start-up costs and recognised losses, therefore, at 31 December 2025,
the carrying value of the investment was adjusted to the shareholders’ equity using the
year-end exchange rate, with the recording of a write-down of €2,814 thousand.
Sabaf Mexico
In 2024 Sabaf Mexico started production of components for the North American market
in San Luis Potosi (Mexico).
During the 2025 financial year, the Company carried out capital increases totalling
€647,000, primarily to finance the working capital of its subsidiary, which is experiencing
rapid business growth (revenue of €7.6 million, compared with €3.2 million in 2024),
accompanied by a strongly positive gross operating profit.
The difference between the carrying value of the equity investment and shareholders’
equity converted at the year-end exchange rate is mainly due to the start-up costs and can
be recovered in the coming years with the achievement of positive income results, as also
foreseen in the 2026 budget given expectations of a significant growth in revenues and a
related improvement in margins.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
227
Sabaf U.S.
Sabaf U.S. has been wound up and placed into liquidation, resulting in a capital loss of
€135,000.
Sabaf America
The company was established in 2023 as part of the acquisition of 51% of MEC, in which
it directly holds an equity investment.
P.G.A.
During the financial year, P.G.A. achieved highly positive results, representing a marked
improvement on 2024.
As at 31 December 2025, the Company carried out an impairment test – conducted with
the assistance of independent experts – on the carrying amount of its investments in
Faringosi Hinges, A.R.C., C.M.I., P.G.A. and the investment in Sabaf America, consisting
in particular of the values relating to Sabaf S.p.A.’s equity interest and loan to Sabaf
America (of which the 51% stake in MEC represents the sole asset), thereby determining
its recoverable amount. This was verified by calculating the value in use through the
discounting of the expected cash flows of the individual companies and, in the case of
Sabaf America, of MEC.
The main assumptions used to determine the value in use of the various equity investments
are related to a) cash flows from the company's business plans, b) the discount rate and c)
the long-term growth rate.
Determining cash flows
The management has defined a single plan for each investee, with reference to the period
from 2026 to 2028, which represents the best estimate of the business outlook, based on
the company's strategies and the growth indicators of its sector and reference markets. In
particular, the forecasts for the first year of the forecast plan (2026) were developed on the
basis of the 2026 budgets approved by the Boards of Directors of the investees and Sabaf
S.p.A. in December 2025; the forecasts for the next two years (2027 and 2028) were
determined analytically as part of the process of updating the 2026 - 2028 Business Plan.
The multi-year plans of the individual investees were submitted for approval by the
respective Boards of Directors of the Group companies and the Board of Directors of Sabaf
S.p.A. at the same time as the approval of the impairment tests.
Revenues were estimated on the basis of information obtained from customers and on the
basis of management's expectations regarding the trend of the reference market, which
anticipate a moderate recovery from the weak phase that characterised 2025. The
contribution of revenues from new products already developed, weighted by their
probability of success, was also estimated. The plans were prepared on the assumption
that raw material prices will remain broadly unchanged, in consideration of the proven
historical ability of the investees to pass on changes in the cost of materials to sales prices.
Estimates of revenues and profitability incorporate elements of caution reflecting
geopolitical and macroeconomic uncertainty. It should be noted that investees are not
exposed to significant transitional climate risks, that energy costs are extremely low in
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
228
relation to the industrial cost of the products and that the related production processes do
not directly use fossil fuels (gas) as an energy source.
The business plans consider only real growth, do not take into account expected inflation
and have been prepared in Euro, i.e. in the currency in which - with the exception of MEC
- the sales prices and main operating costs of the investees are expressed.
The business
plan of MEC, which operates in dollars, was prepared on the assumption of a stable
euro/dollar exchange rate
.
Finally, cash flows for the period from 2026 to 2028 were augmented by the terminal value,
which expresses the operating flows that each investee is expected to generate from the
fourth year to infinity and determined based on the perpetual income.
Discount rate
As in the previous year, the discount rate used to discount the expected future cash flows
was determined for each investee, and is represented by the weighted average cost of
capital employed (WACC), which reflects the current market valuation of the time value
of money for the period in question and the specific risks of the investees and their sectors.
Compared to the previous year, it was deemed appropriate to update the panel of
comparables in order to better represent the systematic risk of the Group's core businesses,
including in accordance with the evolution of the Group's strategy and scope. The discount
rates used last year are shown below for comparison, and it should be noted that the
updating of the panel of comparables did not have any significant effects.
Long-term growth rate
In addition to the flows expected for the period from 2026 to 2028, which are explicitly
forecast, there is the Perpetuity flow, which is representative of the Terminal Value. This
was determined, according to the same logic adopted in the previous year, using a long-
term growth rate (g-rate), specific to each investee, which reflects the growth potential of
the reference area.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
229
The table below shows the key assumptions used in the impairment test.
Discount rate
(WACC) %
Long-term growth rate
(g-rate)
Cash
flow
horizon
Terminal Value
Calculation
Method
2025
2024
2025
2024
Faringosi Hinges
8.90%
9.70%
2.00%
2.00%
3 years
old
Perpetual
instalment
A.R.C.
8.58%
9.27%
2.00%
2.00%
3 years
old
Perpetual
instalment
C.M.I.
8.87%
9.34%
2.00%
2.00%
3 years
old
Perpetual
instalment
P.G.A.
8.60%
9.78%
2.50%
2.50%
3 years
old
Perpetual
instalment
Sabaf
America/MEC
9.02%
9.38%
2.00%
2.00%
3 years
old
Perpetual
instalment
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
230
The changes in discount rates, compared to those used in the preparation of the separate
financial statements as at 31 December 2024, are mainly due to the reduction in the risk-
free rate.
The impairment tests carried out according to the methods described above and approved
by the Board of Directors on 03 February 2026, with the opinion of the Control and Risk
Committee, did not reveal any impairment losses, as the recoverable value of the CGUs at
31 December 2025 was higher than the corresponding net invested capital (carrying
amount).
The following activities were carried out to complete the analysis:
▪ a sensitivity analysis to test the recoverability of equity investments against
changes in the basic assumptions used to determine the discounted flows. In
particular, the table below shows the WACC, g-rate and EBITDA that would result
in an impairment if all other basic assumptions remained unchanged:
Break-even values in a "steady case" situation
Sensitivity analysis
WACC
g-rate
EBITDA
Faringosi Hinges
18.4%
n/a
-48.7%
A.R.C.
26.7%
n/a
-63.5%
C.M.I.
31.9%
n/a
-59.3%
P.G.A.
14.0%
n/a
-40.0%
Sabaf America/MEC
21.5%
n/a
-50.4%
With reference to the break-even values of the g-rate, please note that, even if the
g-rate were 0, there would be no loss of value.
▪ recoverability check of equity investments against possible increases and decreases
of 50 bps in the WACC and 25 bps in the g-rate;
▪ recoverability check of equity investments against possible decreases of 10% and
20% of EBITDA.
For the other equity investments tested for impairment, none of the scenarios included in
the sensitivity analysis resulted in a recoverable amount below the carrying value.
5. NON-CURRENT FINANCIAL ASSETS
31/12/2025
31/12/2024
Change
Financial receivables from
subsidiaries
4,000
7,294
(3,294)
Total
4,000
7,294
(3,294)
At 31 December 2025, financial receivables from subsidiaries include a residual interest-
bearing loan of USD 4.7 million (€4 million at the end-of-year exchange rate), granted to
the subsidiary Sabaf America as part of the acquisition of the equity investment in MEC,
maturing in July 2033. During 2025 the subsidiary repaid USD 800 thousand.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
231
6. NON-CURRENT RECEIVABLES
31/12/2025
31/12/2024
Change
Receivables from former P.G.A.
shareholders
671
645
26
Guarantees
29
32
(3)
Total
700
677
23
Receivables from former P.G.A. shareholders, already agreed upon between the parties
and discounted, refer to compensation obligations envisaged upon the occurrence of
certain events (liabilities incurred by P.G.A.) regulated by the acquisition agreement.
7. INVENTORIES
31/12/2025
31/12/2024
Change
Raw Materials
11,236
12,327
(1,091)
Semi-processed goods
7,129
6,403
726
Finished products
7,328
6,847
481
Provision for inventory write-
downs
(1,819)
(1,707)
(112)
Total
23,874
23,870
4
The value of final inventories at 31 December 2025 remained substantially unchanged
compared with the previous year.
The provision for write-downs is mainly allocated for hedging the obsolescence risk,
quantified on the basis of specific analyses carried out at the end of the year on slow-
moving and non-moving products, and refers to raw materials for €752 thousand, semi-
finished products for €345 thousand and finished products for €722 thousand. The
following table shows the changes in the Provision for inventory write-downs during the
current financial year:
31/12/2024
1,707
Provisions
126
Utilisation
(14)
31/12/2025
1,819
8. TRADE RECEIVABLES
31/12/2025
31/12/2024
Change
Trade receivables from third
parties
15,574
18,599
(3,025)
Trade receivables from subsidiaries
15,459
12,794
2,665
Bad debt provision
(850)
(600)
(250)
Net total
30,183
30,793
(610)
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
232
At 31 December 2025, trade receivables included balances totalling USD 8,185 thousand,
booked at the EUR/USD exchange rate in effect on 31 December 2025, equal to 1.175.
The amount of trade receivables recognised in the financial statements includes
approximately €5.5 million in insured receivables (€12 million at 31 December 2024).
There were no significant changes in average payment terms agreed with customers.
The following table shows the breakdown of receivables from third parties by maturity
date:
31/12/2025
31/12/2024
Change
Current receivables (not
past due)
11,786
13,800
(2,014)
Outstanding up to 30 days
1,389
2,559
(1,170)
Outstanding from 30 to 60
days
675
597
78
Outstanding from 60 to 90
days
1,067
500
567
Outstanding for more than
90 days
657
1,143
(486)
Total
15,574
18,599
(3,025)
The bad debt provision was adjusted to the better estimate of the credit risk and
expected
losses at the end of the reporting period,
also carried out by analysing each expired item.
Changes during the year were as follows:
31/12/2024
Provisions
Utilisation
31/12/2025
Bad debt provision
600
250
-
850
9. TAX RECEIVABLES
31/12/2025
31/12/2024
Change
For income tax
3,254
4,268
(1,014)
for VAT
525
481
44
Total
3,779
4,749
(970)
The Company has opted for the national tax consolidation scheme pursuant to Articles
117/129 of the Unified Income Tax Law.
At 31 December 2025, income tax receivables included:
▪ the receivable from the subsidiary Faringosi Hinges s.r.l amounting to €236
thousand
▪ the receivable from the subsidiary A.R.C. s.r.l. amounting to €284 thousand
▪ the receivable from the subsidiary CMI s.r.l. amounting to €400 thousand,
relating to the balance of the 2025 income taxes transferred by the subsidiaries to the
consolidating company Sabaf S.p.A., in accordance with the provisions of the tax
regulations relating to the national tax consolidation and the tax consolidation contracts
entered into between the parties.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
233
Income tax receivables also include:
▪ €808 million of receivables for investments in capital equipment referred to Decree
Law 160/2019, Budget Law 178/2020 and Budget Law 234/2021;
▪ €635 thousand tax credit for "Patent Box" for the years 2020 and 2021, following
the prior agreement signed with the Tax Authorities during 2023;
▪ tax advances paid in previous years in the amount of €634 thousand.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
234
10. OTHER CURRENT RECEIVABLES
31/12/2025
31/12/2024
Change
Receivables from subsidiaries for
dividends
2,597
0
2,597
Credits to be received from suppliers
736
919
(183)
Advances to suppliers
318
57
261
Other
482
538
(56)
Total
4,133
1,514
2,619
Receivables from subsidiaries for dividends relate to the portion of dividends authorised
during the financial year but not yet received at the balance sheet date, owed by the
subsidiary Sabaf do Brasil.
Credits to be received from suppliers mainly refer to bonuses paid to the Company for the
attainment of purchasing objectives.
11. CURRENT FINANCIAL ASSETS
31/12/2025
31/12/2024
Change
Interest rate derivatives
256
376
(120)
Total
256
376
(120)
At 31 December 2025, the Company has in place four interest rate swap (IRS) contracts
for amounts and maturities coinciding with four unsecured loans that are being amortised,
whose residual value at 31 December 2025 is €31,732 thousand.
12. CASH AND CASH EQUIVALENTS
The item Cash and cash equivalents, equal to €10,911 thousand at 31 December 2025
(€2,039 thousand at 31 December 2024), refers almost exclusively to bank current account
balances. Please refer to the Statement of Cash Flows for an analysis of changes in liquidity
during the year.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
235
13. SHARE CAPITAL
The share capital consists of 12,686,795 shares with a par value of € 1.00 each. The share
capital paid in and subscribed did not change during the year.
At 31 December 2025, the structure of the share capital is shown in the table below.
No. of shares
% of share
capital
Rights and obligations
Ordinary shares
5,874,278
46.30%
--
Ordinary shares with
increased vote
6,812,517
53.70%
Two voting rights per share
TOTAL
12,686,795
100%
With the exception of the right to increased vote, there are no rights, privileges or
restrictions on the Company. The availability of reserves is indicated in a table at the end
of these Explanatory Notes.
14. TREASURY SHARES AND OTHER RESERVES
Treasury shares
During the financial year, in accordance with the resolutions passed by the Shareholders’
Meeting on 8 May 2024 and 29 April 2025, 130,214 treasury shares were purchased under
share buyback schemes at an average price of €14.43 per share. No treasury shares were
sold in 2025.
At 31 December 2025, Sabaf S.p.A. held 283,520 treasury shares (2.235% of the share
capital), reported in the financial statements as an adjustment to shareholders’ equity at a
weighted average unit value of €14.81 (the closing stock market price of the Share at 31
December 2025 was €13.95). There were 12,403,275 outstanding shares at 31 December
2025.
Stock grant reserve
Items "Retained earnings, other reserves" of €73,042 thousand included, at 31 December
2025, the stock grant reserve of €989 thousand, which included the measurement at 31
December 2025 of the fair value of rights assigned to receive shares of the Company
relating to the new 2024 – 2026 Stock Grant Plan, medium- and long-term incentive plan
for directors and employees of the Sabaf Group, for the details of which reference is made
to Note 45.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
236
Cash Flow Hedge reserve
The following table shows the change in the Cash Flow Hedge reserve related to the
application of IFRS 9 on derivative contracts and referring to the recognition in net equity
of the effective part of the derivative contracts signed to hedge the foreign exchange rate
risk for which the Group applies hedge accounting.
Value at 31 December 2024
0
Change during the period
67
Value at 31 December 2025
67
The characteristics of the derivative financial instruments that gave rise to the cash flow
hedge reserve and the accounting effects on other items in the financial statements are
broken down in Note 37, in the paragraph Foreign exchange risk management
15. LOANS
31/12/2025
31/12/2024
Current
Non-current
Total
Current
Non-current
Total
Bond issue
-
29,790
29,790
-
29,755
29,755
Unsecured loans
20,833
39,773
60,606
18,122
27,418
45,540
Leases
483
876
1,359
482
945
1,427
Short-term bank
loans
2,000
-
2,000
12,702
-
12,702
Short-term loans
from subsidiaries
-
-
-
3,000
-
3,000
Accruals for
financial expenses
168
-
168
219
-
219
Total
23,484
70,439
93,923
34,525
58,118
92,643
In 2021, Sabaf S.p.A. issued a €30 million bond fully subscribed by PRICOA with a maturity
of 10 years, an average life of 8 years and a fixed coupon of 1.85% per year. The loan has
the following covenants, defined with reference to the Group consolidated figures widely
complied with at 31 December 2025 and for which, according to the Group's business plan,
compliance is also expected in subsequent years:
During the financial year, the Company took out new unsecured loans totalling €41.1
million in order to finance the investments made, support the growth strategy set out in
the business plan and extend the average maturity of its debt, thereby optimising the
maturity profile.
Certain outstanding unsecured loans, with a remaining balance as at 31 December 2025
of €49.7 million
,
are subject to covenants, defined with reference to the Consolidated
Financial Statements as at the end of each financial year.
These covenants are complied with at 31 December 2025 and for which, according to the
Group's business plan, compliance is also expected in subsequent years.
All bank loans are denominated in euro.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
237
Short-term loans from subsidiaries were granted at market conditions as part of the
optimisation of the Group's liquidity management.
To manage interest rate risk, some unsecured loans (with a total residual value of €50,205
thousand at 31 December 2025) are either fixed-rate or hedged by IRS. On the other hand,
the residual value of unsecured loans taken out at a variable rate and not covered by the
IRS was €10,400 thousand.
The following table shows the changes in lease liabilities during the year:
Lease liabilities at 1 January 2024
1,519
New agreements signed during 2024
446
Repayments during 2024
(538)
Lease liabilities at 31 December 2024
1,427
New agreements signed during 2025
595
Repayments during 2025
(663)
Lease liabilities at 31 December 2025
1,359
Note 37 provides information on financial risks, pursuant to IFRS 7.
16. OTHER FINANCIAL LIABILITIES
31/12/2025
31/12/2024
Current
Non-current
Current
Non-current
Interest rate derivatives
4
-
-
-
Other
82
-
10
-
Total
86
-
10
-
The item ‘Interest rate derivatives’ includes the fair value of an interest rate swap (IRS)
contract, the amount and maturity of which correspond to those of an unsecured loan, the
residual value of which as at 31 December 2025 is €6.4 million. The Group applies hedge
accounting to this financial instrument, verifying its compliance with the requirements of
IFRS 9.
17. Post-employment benefit
At 31 December 2024
1,482
Financial expenses
48
Payments made
(194)
Tax effect
(46)
At 31 December 2025
1,290
Actuarial gains or losses are recognised immediately in the comprehensive income
statement ("Other comprehensive income") under the item "Actuarial income and losses".
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
238
Post-employment benefits are calculated as follows:
Financial assumptions
31/12/2025
31/12/2024
Discount rate
3.67%
3.28%
Inflation
2.50%
2.50%
Demographic theory
31/12/2025
31/12/2024
Mortality rate
IPS55 ANIA
IPS55 ANIA
Disability rate
INPS 2000
INPS 2000
Staff turnover
6%
5%
Advance payouts
1% per year
1% per year
Retirement age
pursuant to legislation in
force on 31 December 2025
pursuant to legislation in
force on 31 December 2024
The sensitivity analyses carried out to take into account possible changes in actuarial
assumptions did not reveal any significant changes in the liability.
18. PROVISIONS FOR RISKS AND CHARGES
31/12/2024
Provisions
Utilisation
31/12/2025
Provision for agents’
indemnities
185
3
(13)
175
Product guarantee
fund
31
29
-
60
Provision for legal
risks
46
-
-
46
Total
262
32
(13)
281
The provision for agents’ indemnities covers amounts payable to agents if the Company
terminates the agency relationship.
The product guarantee fund covers the risk of returns or charges by customers for products
already sold.
The provisions for risks, which represent the estimate of future payments made based on
historical experience, have not been discounted because the effect is considered negligible.
19. TRADE PAYABLES
31/12/2025
31/12/2024
Change
Total
21,165
21,626
(461)
Average payment terms did not change versus the previous year.
At 31 December 2025, there were no overdue payables of a significant amount and the
Company did not receive any injunctions for overdue payables.
In 2025 Sabaf S.p.A. introduced a Sustainable Procurement Policy as part of its internal
procedures, which integrates environmental considerations into the management of
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
239
purchases, transport and energy supplies, as described in detail in the Sustainability
Statement.
20. TAX PAYABLES
31/12/2025
31/12/2024
Change
To inland revenue for income tax
14
1,117
(1,103)
To subsidiaries for income tax
10
51
(41)
To inland revenue for IRPEF tax
deductions
551
651
(100)
Total
575
1,819
(1,244)
Payables to inland revenue for income tax are related to IRAP for €14,000.
The Company has opted for the national tax consolidation scheme pursuant to Articles
117/129 of the Unified Income Tax Law. At 31 December 2025, payables to subsidiaries
for income taxes refer to tax advances received from the subsidiary CGD s.r.l.
Payables for IRPEF tax deductions, relating to employment and self-employment, were
duly paid at maturity.
21. OTHER CURRENT PAYABLES
31/12/2025
31/12/2024
Change
To employees
4,695
4,489
206
To social security institutions
2,278
2,290
(12)
Advances from customers
211
527
(316)
To agents
113
123
(10)
Other current payables
4,389
3,507
882
Total
11,686
10,936
750
At the beginning of 2026, payables due to employees and social security institutions were
paid in accordance with the scheduled expiry dates.
Other current payables include accrued liabilities and deferred income, of which €2,604
thousand refer to the accrual basis of accounting of tax benefits driving from investments
in capital goods referred to Decree Law 160/2019, Budget Law 178/2020 and Budget Law
234/2021.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
22. DEFERRED TAX ASSETS AND LIABILITIES
31/12/2025
31/12/2024
Change
Deferred tax assets
2,337
3,138
(801)
Deferred tax liabilities
(447)
(441)
(6)
Net position
1,890
2,697
(807)
The table below analyses the nature of the temporary differences that determine the recognition of deferred tax liabilities and assets and their
changes during the year and the previous year.
Amortisation
and leasing
Provisions and
value
adjustments
Fair
value of
derivative
instruments
Goodwill
Tax loss
Actuarial
evaluation of
post-
employment
benefits
Other
temporary
differences
Total
At 31 December 2023
383
813
(206)
709
-
132
283
2,114
Through profit or loss
(23)
36
116
(177)
-
-
29
(19)
In shareholders' equity
-
-
-
-
-
(7)
-
(7)
Reclassification
-
-
609
609
At 31 December 2024
360
849
(90)
532
609
125
312
2,697
Through profit or loss
(20)
51
50
(177)
-
0
(69)
(165)
In shareholders' equity
-
-
(22)
0
-
(11)
0
(33)
Use of tax credits
-
-
0
0
(609)
0
0
(609)
At 31 December 2025
340
900
(62)
355
-
114
243
1,890
Deferred tax assets relating to goodwill refer to the exemption of the carrying amount of the investment in Faringosi Hinges S.r.l. made in
2011 pursuant to Italian Decree Law 98/2011, deductible in ten instalments starting in 2018.
The line item “reclassified from tax receivables” relates to tax on tax losses from the previous financial year that were utilised for tax relief
purposes during 2025.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
241
23. TOTAL FINANCIAL DEBT
As required by the CONSOB memorandum of 28 July 2006, we disclose that the Company’s net
financial debt is as follows:
31/12/2025
31/12/2024
Change
A.
Cash
10,911
2,039
8,872
B.
Cash equivalents
0
0
0
C.
Other current financial assets
256
376
(120)
D.
Liquidity (A+B+C)
11,167
2,415
8,752
E.
Current financial payable
2,737
16,413
(13,676)
F.
Current portion of non-current financial debt
20,833
18,122
2,711
G.
Current financial debt (E+F)
23,570
34,535
(10,965)
H.
Net current financial debt (G-D)
12,403
32,120
(19,717)
I.
Non-current financial payable
40,649
28,363
12,286
J.
Debt instruments
29,790
29,755
35
K.
Trade payables and other non-current payables
0
0
0
L.
Non-current financial debt (I+J+K)
70,439
58,118
12,321
M.
Total financial debt (H+L)
82,842
90,238
(7,396)
The statement of cash flows, which shows the changes in cash and cash equivalents (sum of
letters A. and B. of this statement), describes in detail the cash flows that led to the change in
the net financial debt.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
242
Comments on key income statement items
24. REVENUE
In 2025, sales revenue amounted to €105,263 thousand, 0.9% lower than the €106,288 thousand
in 2024.
Revenue by geographical area
2025
%
2024
%
% change
Europe (excluding Turkey)
32,455
30.8%
32,536
30.6%
-0.2%
Turkey
31,357
29.8%
32,780
30.9%
-4%
North America
7,841
7.4%
6,001
5.6%
30.7%
South America
14,166
13.5%
12,639
11.9%
12.1%
Africa and Middle East
9,034
8.6%
12,276
11.6%
-26.4%
Asia and Oceania
10,410
9.9%
9,996
9.4%
4%
Total
105,263
100%
106,228
100%
-0.9%
Revenue by product family
2025
%
2024
%
% change
Valves and thermostats
44,021
41.8%
44,325
41.73%
-0.7%
Burners
46,753
44.4%
47,887
45.08%
-2.4%
Accessories and other revenues
13,763
13.1%
13,194
12.42%
4.3%
Electronic components
302
0.3%
352
0.33%
-14.2%
Induction
424
0.4%
470
0.44%
-9.8%
Total
105,263
100%
106,228
100%
-0.9%
25. OTHER INCOME
2025
2024
Change
Sale of trimmings
2,272
2,177
95
Services to subsidiaries
2,549
2,163
386
Contingent income
397
287
110
Rental income
60
66
(6)
Use of provisions for risks and charges
13
36
(23)
Other income
2,337
2,162
175
Total
7,628
6,891
737
Services to subsidiaries refer to administrative, commercial and technical services provided
within the scope of the Group.
In 2025, other income mainly includes:
▪ €1,253 thousand in charges of various kinds to customers, including partnerships in
investments for dedicated products €1,161 thousand in 2024);
▪ €690 thousand of benefits granted as tax credits for investments made in 2024 and in
previous years pursuant to Law 160/2019 paragraphs 184 to 196, Law 178/2020 and
234/2021 (€568 thousand in 2024);
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
243
▪ €162,000 in insurance claims (€312,000 in 2024).
26. PURCHASES OF MATERIALS
2025
2024
Change
Commodities and outsourced
components
43,951
46,771
(2,820)
Consumables
4,626
4,190
436
Total
48,577
50,961
(2,384)
During 2025, the effective purchase prices of the main raw materials (aluminium alloys, steel
and brass) were on average higher than in 2024, with a negative impact of 0.8% of sales.
27. COSTS FOR SERVICES
2025
2024
Change
Outsourced processing
6,835
6,931
(96)
Electricity and natural gas
5,109
5,171
(62)
Maintenance
4,003
3,729
274
Advisory services
2,446
1,696
750
Transport and export expenses
1,306
1,596
(290)
Directors’ fees
463
471
(8)
Insurance
675
659
16
Commissions
468
479
(11)
Travel expenses and allowances
615
606
9
Waste disposal
455
471
(16)
Canteen
366
335
31
Temporary agency workers
233
311
(78)
Other costs
2,342
2,151
191
Total
25,316
24,606
710
The main outsourced processing carried out by the Company include hot moulding of brass and
some mechanical processing and assembly.
Other costs included expenses for the registration of patents, waste disposal, cleaning, leasing
third-party assets and other minor charges.
During 2025, the Company’s total energy consumption amounted to 41,366 MWh, a decrease
of 4.5% compared with the 43,315 MWh recorded in 2024.
28. PERSONNEL COSTS
2025
2024
Change
Salaries and wages
20,848
20,773
75
Social Security costs
6,736
6,688
48
Temporary agency workers
2,729
3,055
(326)
Post-employment benefit and
other costs
1,618
1,566
52
Stock grant plan (Note 45)
595
94
501
Total
32,526
32,176
350
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
244
Average of the Company headcount at 31 December 2025 totalled 478 employees (331 blue-
collars, 121 white-collars and supervisors, 14 managers), an increase of 24 compared to 2024
(310 blue-collars, 130 white-collars and supervisors, 14 managers). The number of temporary
staff with temporary work contract was 36 at 31 December 2025 (66 at the end of 2024).
29. OTHER OPERATING COSTS
2025
2024
Change
Non-income related taxes and
duties
289
291
(2)
Losses and write-downs of trade
receivables
251
-
251
Contingent liabilities
237
205
32
Other provisions
31
1
30
Other operating expenses
158
303
(145)
Total
966
800
166
Non-income taxes mainly include IMU, TASI and the tax for the disposal of urban solid waste.
Other provisions refer to the allocations to provisions for risks described in Note 18.
Other operating expenses include donations of €70 thousand, 0.1% of turnover for 2025, for
community support activities,
30. FINANCIAL INCOME
2025
2024
Change
Interests receivable from banks
51
134
(83)
Interests receivable from loans
286
723
(437)
IRS spreads receivable
23
87
(64)
Total
360
944
(584)
31. FINANCIAL EXPENSES
2025
2024
Change
Interest paid to banks
2,368
3,117
(749)
Banking expenses
123
125
(2)
IRS spreads payable
27
-
27
Other financial expense
124
151
(27)
Total
2,642
3,393
(751)
32. EXCHANGE RATE GAINS AND LOSSES
During 2025, the Company recorded net foreign exchange gains of €1,543,000.
During 2024, net foreign exchange gains of €825 thousand were recorded, mainly due to the
appreciation of the US dollar against the euro.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
245
33. PROFITS AND LOSSES FROM EQUITY INVESTMENTS
2025
2024
Change
Dividends received from Faringosi Hinges
s.r.l.
4,544
1,156
3,388
Dividends received from A.R.C. s.r.l.
2,719
755
1,964
Dividends received from C.M.I. s.r.l.
6,366
2,266
4,100
Dividends received from Sabaf do Brasil
3,703
-
3,703
Capital loss on equity investments
(134)
-
(134)
Write-down of equity investments
(2,925)
(3,078)
153
Total
14,273
1,099
13,174
In 2025, the 'Write-down of equity investments' relates to Sabaf India in the amount of €2,814
thousand and Sabaf China in the amount of €111 thousand. See Note 4 for more details.
34. INCOME TAXES
2025
2024
Change
Current taxes
(1,239)
(219)
(1,020)
Deferred tax assets and liabilities
165
19
146
Taxes related to previous financial
years
(21)
47
(68)
Total
(1,095)
(153)
(942)
The tax income related to the tax loss for the 2025 tax year is recognised in current taxes for
2025.
Reconciliation between the tax burden booked in the financial statements and the theoretical
tax burden calculated according to the statutory tax rates currently in force in Italy is shown in
the following table:
2025
2024
Theoretical income tax
2,294
282
Taxes related to previous financial years
24
89
Tax effect of dividends from investee companies
(3,996)
(952)
“Iper and Superammortamento” tax benefit
(178)
(381)
Permanent tax differences
660
755
“Patent box” tax benefit
-
(32)
IRES (current and deferred)
(1,196)
(239)
IRAP (current and deferred)
101
86
Total
(1,095)
(153)
Theoretical taxes were calculated applying the current corporate income tax (IRES) rate, i.e.
24%, to the pre-tax result. IRAP is not taken into account for the purpose of reconciliation
because, as it is a tax with a different assessment basis from pre-tax profit, it would generate
distorting effects.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
246
35. DIVIDENDS
On 29 May 2025, shareholders were paid an ordinary dividend of €0.58 per share (total dividends
of €7,220 thousand) in implementation of the shareholders' resolution of 29 April 2025.
The Directors have recommended payment of a dividend of €0.58 per share this year, subject
to approval of shareholders in the annual Shareholders’ Meeting and therefore not included
under liabilities in these financial statements. The dividend proposed is scheduled for payment
on 27 May 2026 (ex-date 25 May and record date 26 May).
36. SEGMENT REPORTING
Information by business segment for 2025 is provided below
Gas parts
Electronic
components
Components for
induction
cooking
Unallocated
costs
Total
Sales
104,538
302
423
0
105,263
Operating profit
7,758
4
(3,379)
(5,274)
(891)
Unallocated revenues and costs refer to auxiliary or common activities, such as overhead costs,
which cannot be allocated to individual business segments.
37. INFORMATION ON FINANCIAL RISK
Categories of financial instruments
In accordance with IFRS 7, a breakdown of the financial instruments is shown below, among
the categories set forth in IFRS 9.
31/12/2025
31/12/2024
Financial assets
Amortised cost
Cash and cash equivalents
10,911
2,039
Trade receivables and other receivables
34,316
32,308
Non-current loans
3,400
7,295
Fair Value through profit or loss
Derivatives cash flow hedges (on interest rates)
256
376
Financial liabilities
Amortised cost
Loans
94,009
92,653
Other financial liabilities
82
10
Trade payables
21,165
21,626
Hedge accounting
Derivatives to hedge cash flows
4
0
The Company is exposed to financial risks related to its operations, mainly:
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
247
▪ credit risk, with special reference to normal trade relations with customers;
▪ market risk, relating to the volatility of prices of commodities, foreign exchange and
interest rates;
▪ liquidity risk, which can be expressed by the inability to find financial resources necessary
to ensure Company operations.
It is part of Sabaf's policies to hedge exposure to changes in prices and in fluctuations in
exchange and interest rates via derivative financial instruments. Hedging is done using forward
contracts, options or combinations of these instruments. Generally speaking, the maximum
duration covered by such hedging does not exceed 18 months. The Company does not enter
into speculative transactions. When the derivatives used for hedging purposes meet the
necessary requisites, hedge accounting rules are followed.
Credit risk management
Trade receivables involve producers of domestic appliances, multinational groups and smaller
manufacturers in a few or single markets. The Company assesses the creditworthiness of all its
customers at the start of supply and systemically at least on an annual basis. The credit
management procedure includes, among other things:
▪ assigning a specific credit limit to each customer;
▪ checking, on a weekly basis, receivables past due;
▪ sending payment reminders on a monthly basis;
▪ defining a time limit after which deliveries are blocked (impossibility of making deliveries
and confirming new orders).
The Company factors receivables with factoring companies based on without recourse
agreements, thereby transferring the related risk.
A credit insurance policy is in place, which guarantees cover for approximately 35% of trade
receivables.
Credit risk relating to customers operating in emerging economies is generally attenuated by
the expectation of revenue through letters of credit.
Forex risk management
The main exchange rate to which the Company is exposed is the euro/USD in relation to sales
made in dollars (mainly in North America) and, to a lesser extent, to some purchases (mainly
from Asian manufacturers). Sales in US dollars represented 13.6% of total turnover in 2025,
while purchases in dollars represented 4.2% of total turnover.
Sensitivity analysis
With reference to financial assets and liabilities in US dollars at 31 December 2025, a
hypothetical and immediate appreciation of 10% of euro against the dollar would have led to a
loss of €1,255 thousand.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
248
Interest rate risk management
Considering the IRS in place, at the end of 2025 almost 89% of the Company's gross financial
debt was at a fixed rate. At 31 December 2025, IRS totalling €44.5 million were in place, mirrored
in mortgages with the same residual debt, through which the Company transformed the floating
rate of the mortgages into fixed rate. These derivative contracts have been designated as cash
flow hedges and are therefore accounted for using hedge accounting, with the exception of the
IRS contract with Mediobanca, which is accounted for at fair value with the gain or loss
recognised in the income statement. The following table shows the characteristics of the
derivative financial instruments described in the previous paragraph.
Company
Counterparty
Instrumen
t
Maturity
Value
date
Notional
Fair value
hierarchy
Sabaf S.p.A.
Mediobanca
IRS
28/04/27
EUR
6,320,000
2
Intesa Sanpaolo
31/12/29
6,400,000
Credito Emiliano
19/05/30
4,531,928
Intesa Sanpaolo
30/05/30
2,700,000
MPS
30/06/30
4,500,000
Crédit Agricole
30/06/30
20,000,000
Sensitivity analysis
With reference to financial liabilities at variable rate at 31 December 2025, a hypothetical and
immediate increase of 1% of interest rates would have led to a loss of €205 thousand.
Commodity price risk management
A significant portion of the Company’s purchase costs is represented by aluminium, steel and
brass. Based on market conditions and contractual agreements, the Company may not be able
to pass on changes in raw material prices to customers in a timely and/or complete manner,
with consequent effects on margins. The Company also protects itself from the risk of changes
in the price of aluminium, steel and brass with supply contracts signed with suppliers for delivery
up to twelve months in advance or, alternatively, with derivative financial instruments. During
2025, the Company entered into a commodity swap contract relating to aluminium
consumption, which was accounted for under hedge accounting and closed during the financial
year. In 2024, the Group did not use financial derivatives on commodities.
Liquidity risk management
The management of liquidity and financial debt is coordinated at Group level. The Group
operates with a debt ratio considered physiological (net financial debt/shareholders' equity at
31 December 2025 of 64%, net financial debt/EBITDA of 11.3) and has unused short-term lines
of credit. To minimise the risk of liquidity, the Administration and Finance Department:
- maintains a correct balance of net financial debt, financing investments with capital and with
medium to long-term debt;
- verifies systematically that the short-term accrued cash flows (amounts received from
customers and other income) are expected to accommodate the deferred cash flows (short-
term financial debt, payments to suppliers and other outgoings);
- regularly assesses expected financial needs in order to promptly take any corrective
measures.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
249
An analysis by expiry date of financial payables at 31 December 2025 and 31 December 2024 is
shown below:
At 31 December 2025
Carrying
value
Contractual
cash flows
Within 3
months
From 3
months to 1
year
From 1 to 5
years
More than 5
years
Unsecured loans and leases
60,606
63,866
2,577
19,745
41,516
28
Bond issue
29,790
32,220
-
555
25,554
6,111
Finance leases
1,359
1,460
148
375
600
337
Short-term loans
2,254
2,258
258
2,000
-
-
Total financial payables
94,009
99,804
2,983
22,675
67,670
6,476
Trade payables
21,165
21,165
19,479
1,686
-
-
Total
115,174
120,969
22,462
24,361
67,670
6,476
At 31 December 2024
Carrying
value
Contractual
cash flows
Within 3
months
From 3
months to 1
year
From 1 to 5
years
More than 5
years
Unsecured loans and leases
45,540
47,839
2,562
16,770
28,507
-
Bond issue
29,755
32,775
-
555
19,887
12,333
Finance leases
1,427
1,504
131
383
909
81
Short-term loans
15,921
15,921
219
15,702
-
-
Total financial payables
92,643
98,039
2,912
33,410
49,303
12,414
Trade payables
21,626
21,626
19,889
1,737
-
-
Total
114,269
119,665
22,801
35,147
49,303
12,414
The various due dates are based on the period between the end of the reporting period and the
contractual expiry date of the commitments, the values indicated in the table correspond to non-
discounted cash flows. Cash flows include the shares of principal and interest; for floating rate
liabilities, the shares of interest are determined based on the value of the reference parameter
at the end of the reporting period and increased by the spread set forth in each contract.
Hierarchical levels of fair value assessment
The revised IFRS 7 requires that financial instruments reported in the statement of financial
position at fair value be classified based on a hierarchy that reflects the significance of the input
used in determining the fair value. IFRS 7 makes a distinction between the following levels:
• Level 1 – quotations found on an active market for assets or liabilities subject to
assessment;
• Level 2 - input other than prices listed in the previous point, which can be observed
directly (prices) or indirectly (derived from prices) on the market;
• Level 3 – input based on observable market data.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
250
The following table shows the assets and liabilities measured at fair value at 31 December 2025,
by hierarchical level of fair value assessment.
Level 1
Level 2
Level 3
Total
Other financial assets (derivatives on interest rates)
-
256
-
256
Total assets and liabilities at fair value
-
256
-
256
38. RELATIONS BETWEEN GROUP COMPANIES AND WITH RELATED PARTIES
The table below illustrates the impact of all transactions between Sabaf S.p.A. and other related
parties on the balance sheet and income statement items and related parties, with the exception
of the directors' fees, auditors and key management personnel which is stated in the Report on
Remuneration.
Impact of related-party transactions or positions on statement of financial position items
Total
2025
Subsidiarie
s
Other
related
parties
Total
related
parties
Impact
on the total
Non-current financial assets
3,400
3,400
-
3,400
100%
Trade receivables
30,183
15,459
-
15,459
51.22%
Tax receivables
3,778
918
-
918
24.30%
Other current receivables
4,133
2,597
-
-
62.84%
Short-term financial payables
23,484
-
-
-
0.00%
Trade payables
21,165
1,748
-
1,748
8.26%
Tax payables
575
10
-
10
1.74%
Total
2024
Subsidiarie
s
Other
related
parties
Total
related
parties
Impact
on the total
Non-current financial assets
7,294
7,294
-
7,294
100%
Trade receivables
30,793
12,476
-
12,476
40.52%
Tax receivables
4,749
401
-
401
8.44%
Short-term financial payables
34,526
3,000
-
3,000
8.69%
Trade payables
21,626
1,333
-
1,333
6.16%
Tax payables
1,918
51
-
51
2.66%
Impact of related-party transactions on income statement items
Total
2025
Subsidiaries
Other
related
parties
Total related
parties
Impact
on the total
Revenue
105,263
21,983
-
21,983
20.88%
Other income
7,628
3,167
-
3,167
41.52%
Materials
48,577
2,773
-
2,773
5.71%
Services
25,316
559
-
559
2.21%
Capital gains on non-current assets
573
353
-
353
61.61%
Financial income
360
206
-
206
57.22%
Financial expenses
2,642
30
-
30
1.14%
Profits and losses from equity
investments
14,273
14,273
-
14,273
100%
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
251
Total
2024
Subsidiaries
Other
related
parties
Total related
parties
Impact
on the total
Revenue
106,228
21,466
-
21,466
20.21%
Other income
6,891
2,879
-
2,879
41.78%
Materials
50,961
2,222
-
2,222
4.36%
Services
24,606
323
-
323
1.31%
Capital gains on non-current assets
685
644
-
644
94.01%
Financial income
944
694
-
694
73.52%
Financial expenses
3,479
138
-
138
3.97%
Profits and losses from equity
investments
1,099
1,107
-
1,107
100.73%
Relations with subsidiaries mainly consist of:
• trade relations, relating to the purchase and sale of semi-processed goods or finished
products;
• sales of machinery, which generated the capital gains highlighted;
• charging for the provision of intra-group technical, commercial and administrative
services;
• charging for intra-group royalties;
• intra-group loans;
• tax consolidation scheme.
39. SIGNIFICANT NON-RECURRING EVENTS AND TRANSACTIONS
Pursuant to the Consob memorandum of 28 July 2006, the Group declares that no significant
non-recurring events or transactions, as defined by the memorandum, took place in 2025.
40. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
In light of the sudden death, on 18 February 2026, of the company's CEO, Pietro Iotti, the
Company promptly made changes to its governance. The Board of Directors assigned ad interim
to director and CFO Mr Gianluca Beschi the powers previously granted to Mr Iotti.
On 24 March 2026, the Board of Directors confirmed Gianluca Beschi as CEO and CFO and
appointed Mr Andrea Bonfadelli, previously Technical Director of the Gas Division and Group
Supply Chain Director, as General Manager of the Company, by attributing them with the
relative delegations and powers.
41. ATYPICAL AND/OR UNUSUAL TRANSACTIONS
Pursuant to CONSOB memorandum of 28 July 2006, the Company declares that no atypical
and/or unusual transactions as defined by the CONSOB memorandum were carried out during
2024.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
252
42. SECONDARY OFFICES AND LOCAL UNITS
In addition to its head office in Ospitaletto (Brescia), the Company operates a branch in Busto
Arsizio (Varese).
43. COMMITMENTS
Guarantees issued
Sabaf S.p.A. issued sureties to guarantee mortgage loans granted by banks to employees for a
total of €1,787,000.
44. OTHER INFORMATION
The Company has management systems certified to the ISO 14001, ISO 9001, ISO 45001 and
ISO 50001 standards.
45. FEES TO DIRECTORS, STATUTORY AUDITORS AND EXECUTIVES WITH
STRATEGIC RESPONSIBILITIES
Fees to directors, statutory auditors and executives with strategic responsibilities are described
in the Report on Remuneration that will be presented to the shareholders' meeting called to
approve these separate financial statements.
46. SHARE-BASED PAYMENTS
2024 – 2026 Stock Grant Plan
A plan for the free allocation of shares, approved by the Shareholders' Meeting of 8 May 2024,
is in place. The related Regulations were approved by the Board of Directors on 18 June 2024.
The main features of this Plan are summarised below.
Aim
The Plan aims to promote and pursue the involvement of the beneficiaries whose activities are
considered relevant for the implementation of the content and the achievement of the objectives
set out in the Business Plan, foster loyalty development and motivation of managers, by
increasing their entrepreneurial approach as well as align the interests of management with
those of the Company's shareholders more closely, with a view to promoting the sustainable
success of the Company and the Group, achieve specific levels of growth and development, and
the Group’s sustainable objectives.
Purpose
The purpose of the Plan is the free allocation to the Beneficiaries of a maximum of 270,000
Options, each of which entitles them to receive free of charge, under the terms and conditions
provided for by the Regulations of the relevant Plan, 1 Sabaf S.p.A. share.
The free allocation of Sabaf S.p.A. shares is conditional on the achievement, in whole or in part,
with progressiveness, of the business targets related to the ROI and EBITDA and the social and
environmental targets.
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
253
Beneficiaries
The Plan is intended for persons who hold or will hold key positions in the Company and/or its
Subsidiaries, with reference to the implementation of the contents and the achievement of the
objectives of the 2024 - 2026 Business Plan. A total of 263,000 Rights were allocated to the
Beneficiaries already identified.
Deadline
The 2024 - 2026 Plan expires in 2027.
Accounting impacts and
Fair value measurement methods
In connection with this Plan, €595,000 (Note 28) were recognised in personnel costs during the
year, an equity reserve of the same amount (Note 13) was recognised as a balancing entry.
In line with the date on which the beneficiaries became aware of the assignment of the rights
and terms of the plan, the grant date was set at 1 July 2024.
The main assumptions made at the beginning of the vesting period and the methods for
determining the fair value at the end of the reporting period are illustrated below. The following
economic and financial parameters were taken into account in determining the fair value per
share at the start of the vesting period:
Share price on grant date adjusted for dividends
€16.60
Dividend yield
2.90%
Expected volatility per year
31.30%
Interest rate per year
3.10%
Based on the exercise right at the different dates established by the Plan Regulations and on the
estimate of the expected probability of achieving the objectives for each reference period, the
unitary fair value at 31 December 2025 was determined as follows:
Rights relating to objectives
measured on ROI
Total value on ROI
-
Fair Value
-
Rights on ROI
35%
Rights relating to objectives
measured on EBITDA
Total value on EBITDA
10.79
Fair Value
4.86
Rights on EBITDA
45%
Rights relating to ESG objectives
measured on personnel training
Total value on "Personnel
training"
14.02
Fair Value
0.70
Rights on "Personnel
training".
5%
Rights relating to ESG objectives
measured on safety indicator
Total value on "Safety
indicator”
10.17
Fair Value
0.51
Rights on "Safety indicator”
5%
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
254
Rights relating to ESG objectives
measured on reduction of
emissions.
Total value on "Reduction of
emissions”
13.73
Fair Value
1.37
Rights on "Reduction of
emissions”
10%
Fair Value per share
7.44
Summary of public grants pursuant to Article 1, paragraphs 125-129, Italian Law
no. 124/2017
In compliance with the requirements of transparency and publicity envisaged pursuant to Italian
Law no. 124 of 4 August 2017, article 1, paragraphs 125-129, which imposed on companies the
obligation to indicate in the explanatory notes "grants, contributions, and in any case economic
advantages of any kind", the following are the details of the relative amounts, accounted for "on
a cash basis", in addition to what has already been published in the National State Aid Register
- transparency of individual aid.
Statutory References
Contribution value
Disbursing Subject
Transition 5.0 Loan
1,074
Italian State
Super/Iper ammortamento (Super/Hyper
amortisation)
485
Italian State
R&D Tax credit
216
Italian State
Total
1,775
Transition 5.0: grant pursuant to Article 38 of Decree-Law No. 19 of 2 March 2024, converted,
with amendments, into Law No. 56 of 29 April 2024, and the decree of the Minister for Enterprise
and Made in Italy, in agreement with the Minister for the Economy and Finance, dated 24 July
2024.
Iperammortamento
(Hyper amortisation): it allows an over-estimation for tax purposes of
capital equipment to which "Industry 4.0" benefits are applicable, which differs according to the
year of acquisition. The reference regulations are included in the Budget Laws from the year
2017 to the year 2020, 2021 Budget Law, Law 178/2020.
Superammortamento
(Super amortisation): it allows an over-estimation for tax purposes of
130% or 140% of investments in new capital equipment; the reference regulations are contained
in Italian Law no. 205 of 27 December 2017.
Research and development activities: Contribution accessible with reference to Article 1,
paragraphs 198-209 of Law no. 160 of 27 December 2019 and the Implementing Decree of the
Ministry of Economic Development of 26 May 2020 ("Transition 4.0" Decree).
Sabaf Group | Separate Financial Statements Sabaf S.p.A. at 31.12.2025
LIST OF EQUITY INVESTMENTS IN SUBSIDIARIES
27
Company name
Registered offices
Share capital at 31
December 2025
Shareholders
% of
ownership
Shareholders’ equity
at 31 December 2025
2025 profit (loss)
Faringosi Hinges S.r.l.
Ospitaletto (BS)
EUR 90000
Sabaf S.p.A.
100%
EUR 5031496
EUR 1151079
Sabaf do Brasil Ltda
Jundiaì (Brazil)
BRL 53348061
Sabaf S.p.A.
100%
BRL 106631610
BRL 8823268
Sabaf Appliance Components
(Kunshan) Co., Ltd.
Kunshan (China)
CNY 78062950
Sabaf S.p.A.
100%
CNY 11334947
CNY 171938
Sabaf Beyaz Esya Parcalari
Sanayi Ve Ticaret Limited
Sirteki
Manisa (Turkey)
TRY 1306029421
Sabaf S.p.A.
100%
TRY 2727411531
TRY 547,576,570
A.R.C. S.r.l.
Campodarsego (PD)
EUR 45000
Sabaf S.p.A.
100%
EUR 5387838
EUR 1173538
Sabaf Mexico Appliance
Components
San Louis Potosì
(Mexico)
PESOS 141003832
Sabaf S.p.A.
100%
PESOS 304063799
PESOS -5959307
C.M.I s.r.l.
Valsamoggia (BO)
€1,000,000
Sabaf S.p.A.
100%
EUR 19096424
EUR 2539621
C.G.D. S.r.l.
Valsamoggia (BO)
EUR 26000
C.M.I. S.r.l.
100%
EUR 1674110
EUR 145492
Sabaf India Private Limited
Bangalore (India)
INR 311666338
Sabaf S.p.A.
100%
INR 646,832,577*
INR -96,227,467*
P.G.A S.r.l.
Fabriano (AN)
EUR 100000
Sabaf S.p.A.
100%
EUR 4724122
EUR 776186
Sabaf America Inc.
Delaware (USA)
USD 4000000
Sabaf S.p.A.
100%
USD 5865927
USD 446851
Mansfield Engineered
Components LLC(MEC)
Mansfield (USA)
USD 2823248
Sabaf America
51%
USD 18012709
USD 4591164
‘* The values shown for Sabaf India Private Limited refer to 31 March 2025, the local reporting date
OTHER SIGNIFICANT EQUITY INVESTMENTS
None
27
Values taken from the separate financial statements of subsidiaries, prepared in accordance with locally applicable accounting standards
Sabaf Group | 2025 Report on Operations
256
ORIGIN, POSSIBILITY OF UTILISATION AND AVAILABILITY OF RESERVES
Description
Amount
Possibility
of
utilisation
Available
share
Amount subject
to taxation
for the
company in the
case of
distribution
Capital reserves:
Share premium reserve
26,160
A, B, C
26,160
0
Revaluation reserve, Law 413/91
42
A, B, C
42
42
Revaluation reserve, Law 342/00
1,592
A, B, C
1,592
1,592
Retained earnings:
Legal reserve
2,482
B
0
0
Other retained earnings
69,439
A, B, C
68,173
0
Revaluation reserve, Law Decree no.
104/20
4,873
A, B
4,873
4,727
Valuation reserve:
Post-employment benefit actuarial
provision
(331)
0
0
Reserve for stock grant plan
990
0
0
Hedge accounting reserve
67
0
0
Total
105,314
100,840
6,361
Key:
A. for share capital increase
B. to hedge losses
C. for distribution to shareholders
Sabaf Group | 2025 Report on Operations
257
STATEMENT OF REVALUATIONS
OF EQUITY ASSETS AT 31 December 2024
Gross value
Cumulative
depreciation
Net value
Non-current assets
held for sale
Law 342/2000
0
0
0
0
0
0
Plant and
equipment
Law 576/75
177
(177)
0
Law 72/1983
1,923
(1,923)
0
1989 merger
6,140
(6,140)
0
1994 merger
6,820
(6,820)
0
15,060
(15,060)
0
Industrial and
commercial
equipment
Law 72/1983
161
(161)
0
Other assets
Law 72/1983
50
(50)
0
TOTAL
15,271
(15,271)
0
GENERAL INFORMATION
Sabaf S.p.A. is a company organised under the legal system of the Republic of Italy.
Registered and administrative office: Via dei Carpini, 1
25035 Ospitaletto (Brescia)
Contacts: Tel: +39 030 - 6843001
Fax: +39 030 - 6848249
Web site: http://www.sabaf.it
Tax information: REA Brescia 347512
Tax code 03244470179
VAT NUMBER 01786910982
Sabaf Group | 2025 Report on Operations
258
Appendix
Information as required by Article 149-duodecies of the CONSOB
Issuers’ Regulation
The following table, prepared pursuant to Art. 149-duodecies of the CONSOB
Issuers’ Regulation, shows fees relating to 2025 for auditing services and for
services other than auditing provided by the Independent Auditors. No services
were provided by entities belonging to the network.
(€/000)
Party providing
the service
Fees pertaining to the 2025
financial year
Audit
EY S.p.A.
63
Limited Assessment
Sustainability Reporting
EY S.p.A
38
Other audit services
EY S.p.A
33 (1)
Total
134
1. Agreed auditing procedures for interim management statements and review of the Statement of Expenditure on
Research and Development.
Sabaf Group | 2025 Report on Operations
259
Certification of Separate financial statements pursuant to Article 154-bis of
Legislative Decree no. 58/98
Gianluca Beschi, CEO and Financial Reporting Officer of Sabaf S.p.A., has taken into
account the requirements of Article 154-bis, paragraphs 3 and 4, of Legislative Decree 58
of 24 February 1998 and can certify:
• the adequacy, in relation to the business characteristics and
• the actual application
of the administrative and accounting procedures for the formation of the separate
financial statements during the 2025 financial year.
They also certify that:
• the separate financial statements:
- were prepared in accordance with the international accounting policies
recognised in the European Community in accordance with EC
regulation 1606/2002 of the European Parliament and Council of 19 July
2002 and with the measures issued in implementation of Article 9 of
Legislative Decree 38/2005;
- are consistent with accounting books and records;
- provide a true and fair view of the financial position and performance of
the issuer;
• the report on operations contains a reliable analysis of the performance and
results of operations and the situation at the issuer, along with a description of
the key risks and uncertainties to which it is exposed.
Ospitaletto, 24 March 2026
CEO and Financial Reporting
Officer
Gianluca Beschi