Interpump Group S.p.a. · MIL:IP
Interpump — ESG Presentation (October 2022)
33 slides from Interpump's sustainability presentation, Oct 5, 2022
Slide 1: 2023-2025 ESG Journey
INTERPUMP GROUP 2023-2025 ESG Journey 5 October 2022
Slide 2: 2023-25 ESG Journey Index
2023-25 ESG JOURNEY INDEX ▪ KEY HIGHLIGHTS ▪ GROUP APPROACH ▪ ACTIONS ▪ CONCLUSION ▪ ANNEX 1
Slide 3: Concreteness: A falling tree makes more noise than a growing forest
2023-25 ESG JOURNEY CONCRETENESS “A falling tree makes more noise than a growing forest” Lao Tzu 2
Slide 4: Key Highlights
2023-25 ESG JOURNEY KEY HIGHLIGHTS 3
Slide 5: Concrete actions for short and medium term
2023-25 ESG JOURNEY CONCRETE ACTIONS FOR SHORT AND MEDIUM TERM ▪ “Consolidation and alignment of Group sustainability activities and processes” consistent with 2022 Group focuses ▪ Concrete achievement of this focus: Group “2023-2025 ESG journey” − The first project at Group level ▪ Concrete and pre
Slide 6: Building foundations and implementing actions
2023-25 ESG JOURNEY BUILDING FOUNDATIONS AND IMPLEMENTING ACTIONS E S G ESG 5
Slide 7: Three priorities for three pillars
2023-25 ESG JOURNEY THREE PRIORITIES FOR THREE PILLARS SUPPORTED GRI 2023-2027 KEY TARGETS and SDG ▪ Definition of Group “Carbon neutrality” strategy 2023 E ▪ Reduction of Group “Carbon intensity” 2025 305-1 and 2 302-1 ▪ Increase of renewed electricity consumption 2025 ▪ Injury rate improvement 202
Slide 8: Group Approach
2023-25 ESG JOURNEY GROUP APPROACH 7
Slide 9: The first project at Group level
GROUP APPROACH THE FIRST PROJECT AT GROUP LEVEL ▪ Four Group key success factors to incorporate and balance • Diversification by product, geography and application sector • Business models heterogeneity • Growth strategy based on both organic and M&A ‒ “Soft integration policy” for acquired companie
Slide 10: Dynamic materiality approach
GROUP APPROACH «DYNAMIC MATERIALITY» APPROACH ▪ 2021 “materiality matrix” was ones of the most important starting points 2021 GROUP MATERIALITY MATRIX ▪ Group adopted a “dynamic materiality” approach to anticipate important changes the recent macro • HUMAN CAPITAL MANAGEMENT INFLUENCE ON STAKEHOLDER
Slide 11: Focus on production activities
GROUP APPROACH FOCUS ON PRODUCTION ACTIVITIES ▪ Manufacturing Group subsidiaries are the journey starting point ▪ Almost 65% of 2021 sales covered (1) • Around 50% of top Group productive sites (2) and around 70% of Group employees • 16 and 9 in the Hydraulic and Water-Jetting division respectively
Slide 12: Leverage on subsidiaries best practices
GROUP APPROACH LEVERAGE ON SUBSIDIARIES BEST PRACTICES ▪ “Pilot projects” represent an important means to face Group journey ▪ They allow to leverage on Group subsidiaries best practices • Overcame in a efficient and effective way Group business models heterogeneity ANALYSIS OF PRACTICES COMPARISON
Slide 13: Concrete steps in a long journey
GROUP APPROACH CONCRETE STEPS IN A LONG JOURNEY ANALYSIS AND MEASUREMENT BUILDING GROUP LEADING TO ESG FOUNDATIONS 2030 AND 2050 DECARBONISATION TARGETS 2022 2023 2024 2025 2027 • E.1 - Carbon neutrality strategy • E.2 - Carbon intensity reduction • S.2 - ISO 45001 extension • E.4 - Circular economy
Slide 14: Actions
2023-25 ESG JOURNEY ACTIONS 13
Slide 15: Environmental: Climate change
ENVIROMENTAL LEADING TO 2030-50 TARGETS E ▪ 3 main streams • Climate change • Product life cycle • Water efficiency ▪ Formalisation of Group “E” strategy and policies is the cornerstone ▪ Approximately € 10m of CAPEX and not material impact on Group G&A in the plan horizon • CAPEX: around 40% alread
Slide 16: Climate change and product life cycle
ENVIROMENTAL LEADING TO 2030-50 TARGETS E ACTION ID DESCRIPTION GRI and SDG KPI TIMING K.P.I. Carbon intensity reduction tCO2eq/€ (1) ▪ Focus on Scope 1 and 2 Base year: 2021 E.2 ▪ Main leverages: photovoltaic plants installation Target: -30% Target year: 2025 and renewable purchase energy agreement
Slide 17: Water efficiency and product eco-design
ENVIROMENTAL LEADING TO 2030-50 TARGETS E ACTION ID DESCRIPTION GRI and SDG KPI TIMING WATER EFFICIENCY Water monitoring system ▪ Phase 1: mapping of the installed water Base year: 2022 E.6 monitoring systems across the Group N.A. Target year: 2025 ▪ Phase 2: implementation of a continuous water 303
Slide 18: E.3 Delivery undergoing
ENVIROMENTAL E.3 ‒ DELIVERY UNDERGOING E ▪ 2021 data 2021-2025E ENERGY CONSUMPTION BREAKDOWN by SOURCE • “Not renewable energy”: 97% • “Renewable energy”: 3% 3% 3% 25% 25% 2021 2025 ▪ 2025 target: 25% of “renewable energy” 75% • “Self production” and moreover “external purchase” 97% 75% will be the
Slide 19: E.3 Delivery undergoing
ENVIROMENTAL E.3 ‒ DELIVERY UNDERGOING E 3% 25% 75% 97% V. Fermi factory roof before photovoltaic plants installation V. Fermi factory roof after photovoltaic plants installation IP Italy - Sant’Ilario d’Enza, v. Fermi factory - Electric energy production started last May all self consumed – Exp. ye
Slide 20: Social: Health & safety
SOCIAL EXPANDING THE SILENT GROWING FOREST S ▪ 4 main streams • Health & safety • People development • Responsible supply chain • Diversity & inclusion ▪ “Pilot projects” will be crucial to capitalise on already existing best practices at subsidiaries level • Walvoil for “ESG supply chain evaluation
Slide 21: Responsible people development
SOCIAL EXPANDING THE SILENT GROWING FOREST S ACTION ID DESCRIPTION GRI and SDG KPI TIMING HEALTH & SAFETY K.P.I. % Group turnover ISO 45001 extension Base year: 2021 S.2 ▪ Focus on subsidiaries with manufacturing sites Target year: 2027 Base: 22% Target: 45% K.P.I. Increase of non-compulsory trainin
Slide 22: Responsible supply chain and diversity & inclusion
SOCIAL EXPANDING THE SILENT GROWING FOREST S ACTION ID DESCRIPTION GRI and SDG KPI TIMING RESPONSABLE SUPPLY CHAIN ESG supply chain evaluation model extension ▪ First focus on Italy (100% of manufacturing Base year: 2023 S.6 N.A. subsidiaries) Target year: 2024 ▪ Feasibility study for a worldwide ap
Slide 23: S.2 Delivery undergoing
SOCIAL S.2 ‒ DELIVERY UNDERGOING S Hammelman, Germany – Oelde factory Reggiana Riduttori, Italy – San Polo d’Enza factory 22
Slide 24: S.5 Quality from all points of view
SOCIAL S.5 ‒ QUALITY FROM ALL POINTS OF VIEW S ▪ Quality is the main focus of Group direct suppliers evaluation criteria and methodology ENVIROMENT • Technical performances Emission, energy consumption, water&waste management • Timely delivery • Capability to follow and support Group flexible produc
Slide 25: Governance: ESG cornerstone
GOVERNANCE BUILDING ESG FOUNDATIONS G ▪ 3 main streams • ESG as governance cornerstone • Spread of ESG principles, actions and results inside and outside the Group • Tax compliance consolidation in line with best practices ▪ “G” actions will follow the natural path of Group governance activities • M
Slide 26: ESG principles-actions-results
GOVERNANCE BUILDING ESG FOUNDATIONS G ACTION ID DESCRIPTION GRI and SDG KPI TIMING ESG PRINCIPLES-ACTIONS-RESULTS Base year: 2022 Code of Ethics revision G.2 N.A. Target year: ▪ To reflect ESG principles in Code of Ethics 1H2023 SPREAD Succession plan formalization Base year: 2022 G.3 ▪ Succession p
Slide 27: ESG principles-actions-results spread
GOVERNANCE BUILDING ESG FOUNDATIONS G ACTION ID DESCRIPTION GRI and SDG KPI TIMING ESG PRINCIPLES-ACTIONS- RESULTS SPREAD Base year: 2022 Updating on ESG journey G.6 N.A. Target year: ▪ Periodic updating on actions implementation annual 26
Slide 28: G.4 Tax compliance consolidation
GOVERNANCE G.4 ‒ TAX COMPLIANCE CONSOLIDATION G ▪ Interpump fiscal approach has been consistently based on • “Entity level” focus, in line with a “soft integration” philosophy applied to acquired companies • Harmonisation among different fiscal frameworks connected to Group different presence countr
Slide 29: Concreteness: A falling tree makes more noise than a growing forest
2023-25 ESG JOURNEY CONCRETENESS “A falling tree makes more noise than a growing forest” Lao Tzu ▪ Concrete achievement of one of Group 2022 focus: Group “ESG journey” ▪ Concrete and precise actions: 20 targets to be delivered by 2025 (1) ▪ Concrete resources defined ▪ Concrete correlation with top
Slide 30: Annex
Biv] 2023-25 ESG JOURNEY ANNEX
Slide 31: Disclaimer – Forward looking statements
ANNEX DISCLAIMER – FORWARD LOOKING STATEMENTS This document has been prepared by Interpump Group S.p.A for aforesaid forward-looking statements. This document does not use during meetings with investors and financial analysts and is constitute an offer to sell or a solicitation to buy or subscribe t
Slide 32: Disclaimer − Performance indicators
ANNEX DISCLAIMER − PERFORMANCE INDICATORS The Group uses several alternative measures that are not identified as accounting parameters in the framework of IFRS standards, to allow better evaluation of the trend of economic operations and the Group's financial position. Such indicators are also tools
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