sustainability and social responsibility 2014€¦ · the sincere and great participation in the...

Sustainability and Social Responsibility Report

2014

7th Edition

MADE IN FLORIM

Sustainability and Social Responsibility Report

2014

7th Edition

Prepared by

Florim Ceramiche spa

SupervisoryFinancialOffice

OfficeofCommunication–editorialcoordination

Wethankallstaffmemberswhohavecontributed.

FioranoModenese(MO)-ITALY,May2015

Sustainability Report 2014 5

TABLE OF CONTENTS

Letter to our stakeholders.................................................7 Environmental Responsibility........................................ 23

Our Sustainability Report...................................................8 -certifications.................................................................. 24

-environmentalmanagementsystem...................... 25

-energymanagementsystem.................................... 26

MADE IN FLORIM

Our history............................................................................. 10 Social Responsibility......................................................... 29

Our locations........................................................................ 11 -employees..................................................................... 29

Our brands............................................................................ 11 -territory........................................................................... 32

Our contribution to the project..................................... 11

Our 2014................................................................................. 12 Quality System..................................................................... 35

-Quality,environment,

safetyandenergypolicies....................................... 36

PART ONE – GOVERNANCE

Ethics Code........................................................................... 15 PART THREE – OUR COMMITMENTS

Corporate structure........................................................... 16 The promises we kept...................................................... 38

Stakeholders........................................................................ 17 Objectives we want to reach......................................... 39

PART FOUR – FLORIM USA

PART TWO – REPORTING Profile and Economic Responsibility......................... 40

In Brief..................................................................................... 18 Environmental Responsibility........................................ 41

Economic Responsibility................................................. 19 Social Responsibility......................................................... 43

-commentsonbusinessdata.................................... 19 Quality System..................................................................... 45

-valueadded................................................................... 20 Other activities.................................................................... 45

GRI International Sustainability Indicators.............. 46

Sustainability Report 20146

Historical photo of the Floor Gres plant (Fioriano Modenese - MO)


Letter to our stakeholders

IampleasedtopresenttheseventheditionoftheFlorimSustainabilityReport,bynowanessentialpartofthecompany’scommunication.

Ireiterateonceagainthatpromotingone’sbusinesswithcommitment,professionalismandpassionleadstoachievingimportantgoals,evenifthemacro-economyandpoliticsarestillasourceofuncertaintyforourcountryin2014.

Thegreatparticipationofassociatesonall levelsand theirability to interpret theFlorimmissionallowedustocompleteprojectsthatareambitiousintermsofcomplexityandful-filmenttimes,suchas:renovatingtheMordanoplant,whichbecameabenchmarkfortheproductionofbigslabsandlaunchingthenewFioranologisticscenter,whichsupplementsthetraditionalserviceareawiththebrandnewverticalwarehouse.

Inaddition,theAmericanplantrenovationprojecthasprogressed,andisexpectedtobecompletedin2015.

ThesincereandgreatparticipationintheFlorimGalleryevents,duringtheCersaie,wherewehostedsomeofthemostnotedItaliansfromaroundtheworld(PieroFerrari,MassimoBottura,PhilippeDaverio),wasaconfirmationoftheappreciationforourworkandthein-centivetocreatenewinitiatives.

Iwould like tosincerely thankeveryonewho,withperseveranceandhumility,unfailinglycontributestothe improvementofourcompany in itsvariousareastoattainprestigiousgoals,whichcanbereadingreaterdetailinthisdocument.

Wehopeyouallenjoyreadingthisreport

ClaudioLuccheseChairmanofFlorimCeramiches.p.a


Our Sustainability Report

What it is

The Sustainability Report is a periodic and voluntary reporting document which summarizes theCompany’sresultsandactivities,containingnotonlyfinancialandaccountingdatabutalsointegratingenvironmentalandsocialaspectswithinaframeworkofoverallsustainability.Thistypeofinitiativearisesfromtheneedtoengageindialoguewithdifferenttargetofpeople,definedasstakeholders,interestedtoknowaboutthecompanyactivitiesthatdirectlyorindirectlyaffectthem.Bywritinganddistributingthistool,Florimcancommunicatewithitsstakeholdersinatransparentway, explain the results we have achieved and share our future goals by focusing on listening,cooperatingandconstantimproving.

How it was drafted

WehavereachedtheSeventheditionoftheFlorimSustainabilityReport,whichiscreatedannuallytopromotecorporatesocialresponsibilitybothinternallyandexternallytothecompany.The contents of this edition, as in the past,were determined by using the themed sections andindicators suggested by the Global Reporting Initiative (GRI), the most influential internationalguidelinesforreportingenvironmental,economicandsocialsustainability,andtheGruppoBilancioSociale(GBS)(GroupforSocialReporting)inthepartconcerningValue-Addedcalculations.ThereportingindicatorsthatwereusedclassifythisreportasfulfillingapplicationlevelC,basedontheGRIdefinitions(self-declaration).ThisreportincludesallthecompaniesintheFlorimgroup,includingthenewlyformedMaker,andusestheconsolidatedfinancialstatementstoaggregatefiguresforthewholegroup.ThedatalistedinthesecondpartisdedicatedtoourItalianofficeswhilethefourthpartconsistsofaSustainabilityReportsummaryforFlorimUSA.Thereportingprocesswasco-ordinatedbyFlorim’sCommunicationsDepartmentandsupervisedbytheFinancedepartment,withthevaluablecollaborationofvariouscolleagues,inparticular,theManagementControlstaff,HumanResourcesandAdministrationDepartments.TheGRIindicatorscontemplatedinthevariouspagesoftheReportarelistedonpage46herein.

Diffusion

The2013SustainabilityReport,alsopublishedinEnglish,waswidelydistributed.BelowarethemainmethodsFlorimhasused:

- providingacopytoallemployeesoftheItalianandAmericancompanies,enclosedwiththeirpaystubs

- inclusionofthePDFfilesonthecompany’sIntranetsiteandtheflorim.itwebsite

- distribution to companies which are members of theAssociation “Aziende Modenesi per la RSI” (Modenacompaniesforsocialresponsibility)

- sending it to local institutionsandtherelevant tradeunionrepresentatives

- sending it to the local and industrypressduring fairs andsitevisits

- distributiontokeyclientsanddesigners

- sending it to the main domestic agencies/authorities/associationsinvolvedinissuesrelatedtosustainabilityandtheenvironment.


Casa dolce casa - Wooden tile line


MADE IN FLORIM

Over50yearsofhistory

1300employeesworldwide

24millionsqmproducedeachyear

330millionEurosinsales

However,beingacompanyisnotjustaquestionofnumbers.Passion,innovationandcorporatesocialresponsibility are nowwhatmake us stand out because of thewaywe do business: the MADE IN FLORIM style.

Our history

1962 GiovanniLucchesepioneeredtheproductionofextruded clinker tilesinItaly.Floor Gres wasbornintheheartoftheproductioncenterinSassuolo

1967 FloorGreswasthefirstItalianmanufacturertoproducesingle-fired white body tiles

1976 TheSwimming Pool Division wasestablishedatFloorGres

1981 Oneofthefirstcompaniesworldwide,FloorGresstartedtoproduceporcelain tiles

1984 Claudio Lucchese,sonofthefounder,tookovermanagementofFloorGresaftertheprematuredeathofhisfather

1990 FloorGresacquiredthecompanyCerim Ceramiche

1992 Florim wastheresultofthemergerbetweenFloorGresandCerim

1994 FlorimacquiredRex Ceramiche Artistiche

1995 TheProject Division,wascreated,forerunnerofthecurrentFlorim Solutions

2000 Florim USAwas founded, the result of theproductionandcommercial structure thatwouldquicklygrowontheUSmarket

2005 FlorimacquiredCasa dolce casa

2006 TheCasamood brand was founded

2011 AlogisticshubopenedinBrazil

2012 Florimturns50 andlaunches slim/4+

2013 ThenewmultifunctionalareaofFlorim GalleryisinauguratedandtheareaofFlorim Logisticsisabouttobecompleted.TheFondazione Ing. Giovanni Lucchese isestablished

2014 MaKer s.r.l.-followingaradicalrenovation,theMordanoplantisenhancedwiththemostrecentproductiontechnologies,includingalineisdedicatedtobigslabs.


Our locationsThemapshowsthegroup’sheadquarters,exhibitionspaces,manufacturingfacilitiesandlogisticcenters.ProductsmadeundertheFlorimbrandsaresoldtotopcustomersandimportersallovertheworld.

Our brands

Floor Gres is the branddedicated to architectural design. The FloorGres product range canrespondtothefullbreadthofdesign,technicalandeco-compatibilityrequirementsofcontemporaryarchitecture.

Rexisthebrandthatepitomizeseleganceandbeautyanddrawsitsinspirationfromnaturalandpreciousmaterials(leather,horn,wood,marbleandstone);coordinatedpreciousmaterialswhosesurfacesinteracttogenerateanewlanguageofliving.

Cerim is the brand that focuses primarily on color and decoration. Surfaces designed byconsideringtheenvironmentinitsentiretytomakethemostoftheareasofthehomeandproposeyounganddynamicsolutionsthatcanadapttomeetthemostdiverseaestheticrequirements.

Casa dolce casa and Casamood thefirstbrand isaimedathigh-end residentialarchitectureandofferswarm interiors inspiredbyharmoniouscolors andnatural surfaces.Casamood is aprojectbasedoncoordinatedcolorsandfloorswhichcoordinateporcelaingreswithothertypesofmaterials.Theambiencesofthesearchitecturaldesignsblendwiththeinternaldecortocreatenewkindsofrelationships.

Slim/4+ isFlorim’slatestarrival.Thisisabranddedicatedtotheproductionandmarketingofarevolutionary layeredmaterial.With thepossibilityofbeing installedasafloatingfloor,slim/4+introduces an innovative system into the ceramics sector, combining strength, lightness andinterchangeabilityinoneslimthickness.

Florim USA is the brand of the American subsidiary: its products in porcelain stoneware forresidentialandcommercialproperties,manufacturedinthefactoryinClarksville(Tennessee),aredesignedtoprovideforthetasteofabroadmarketsegment.

Our contribution to the projectAswellassellingaproduct,Florimoffersauniqueleveloftechnicalsupportthroughoutthevariousdesignphases.Fromthefeasibilitystudytothefinalinstallation,FlorimSolutionsworkssidebysidewiththedesigner,providingskillsandexperiencewheneveraestheticsandthefunctionalityoftheporcelaintilesassumeafundamentalroleintheproject.

FLORIMHeadquarterandproductionplantFiorano Modenese, MO (ITALY)

MAKERProductionplantMordano, BO (ITALY)

FLORIMRUSFlagshipStoreMoscow (Russia)

FLORIMFlagshipStoreMilan (ITALY)

FLORIMSOLUTIONSLogisticsCenterAtlanta, GA (USA)

FLORIMBRASILLogisticsCenterParanà (BRAZIL)

FLORIMUSASiteandproductionplantClarksville, TN (USA)


Our 2014Themaingoals,initiativesandawardswhichcharacterizedFlorimin2014aredescribedinthissection.Moredetailsareavailableinthepagesdedicatedtotheaccounting.

Goals reached

Duringtheyear,thesubsidiaryMakers.r.l.startedacompleterenovationprojectoftheplant,investingmore than 25 million Euros for the production of big slabs and traditional ceramics, thus allowingworkcontinuity formore than280employees.Continuous investments ingreen economy led to thecompletionofanewandmoreefficientecological centerinFioranoModenese,theinstallationof449LEDlightingfixturesinsidetheMordanoplantandthepartialremovalofthecement-asbestos roofingfromtheproductionfacilities.

ThepurchaseofthenewlocationfortheMilanshowroomatForoBuonaparte14wasfinalized,andtheFlagship StorewasmovedthereinlateMarch2015.

As planned, the show room inside the International Departures area of theMalpensa airport wasinauguratedin2014whereFlorimproductsarehighlightedviaaninteractivemega-screen.Thethird edition of the Master in Florim Programdesignedfortherecentyounggraduateswaslaunchedduringtheyear.Withmorethan800hoursspentbothinlessonsandtraininginallthecompany’sareas,theMaster’s program 3.0resultedintheemploymentofalltheparticipantsattheendofthe26weeksofinstruction.

Attheendof2014,Florim Logistics,thenewmulti-brandcomputerizedconsignmentcenter,startedthepreparationandshipmentofthematerialfromtheserviceareaandverticalwarehouse.InOctober,anewFlagship storewasfinallylaunchedintheheartofMoscowwiththeintentofdirectlycontrollingstrategicmarkets.

TheHealth&Training CenterwasinauguratedattheheadquarteratviaCanaletto24,auniqueinitiativeinEurope,representingthestrongrelationshipamongthecompanyandtheterritoryandthepublicandprivatesector.InadditiontothecoursesorganizedbytheSassuoloHospitalformedicalandparamedicalpersonnel, the center hosted several “Health meetings” promoted by the company designed foremployeesandthecitizens.

New initiatives

Florim isa foundingpartnerof theautonomousand inclusiveassociation“Aziende Modenesi per la RSI”[ModenaCompaniesforSocialResponsibility],foundedtoextendthecultureofsocialresponsibilityandfindstimulifordealingwithotherentitiesofdifferentsizesandsectors.

New awards

The constant corporate effort towards an enhanced sustainability of industrial processes led to theattainmentofthe“Green Economy Award”ofLegambienteEmiliaRomagnaforterritorialprotection.

ThenewMagnumOversizeslabs,describedbelow,allowedforthecompanytoobtaintheprestigiousADI Ceramics Design Award.

New products

ThebigsizesofMagnum Oversizeceramicslabswithdimensionsof160x320cmwith justa6mmthickness,werethemainattractionsofCersaieandrepresenttheGroup’sbigstepforwardinarchitecturalmaterials.Theprojectcrossesintoseveralbrandsandrepresentsthesynthesisofresearchinthefieldsofinnovation,functionalityandaesthetics,aimingtomeetthemostmoderndesignrequirements.


FOCUS – One year of Florim Gallery

ManyeventshaveenlivenedFlorimGalleryin2014.TheFioranoModeneseshowroom,launchedinSeptember2013,hashostedabout10,000peoplethroughevents,galasoirees,conferences,workshops,customerreceptionandopenactivities.

Corporate Social Responsibility

AsfarasCSRisconcerned,Florimhashosted:

yy ComeniusProject–theEuropeanprojectinthefieldofeducation,hostedbyFlorimtodiscussgreeneconomy

yy TheXXVIILucchesePrize–annualEng.GiovanniLuccheseprizeassignmentceremonyyy GoodEnergyAward–GoodEnergyAwardObservatoryNationalCongressyy Healthmeetings–Health-promotionmeetings.

Events

Amongthemanyeventsheld in theGalleryandorientedtoceramicprofessionals,employees,territoryandotherinitiatives,wewouldliketonote:

yy WorldSoccerChampionship in theGallery–showing the Italian team’sgamesduring the2014worldchampionshipforemployees,familiesandfriends

yy CersaieNights–threesoireesenlivenedbythreeexclusiveguestsaccompaniedanunusual,“MadeinFlorim”editionofCersaie2014

yy ModenaVolleyballPresentation–presentationoftheModenaVolleyballmen’steam,whichparticipatesintheSuperLegaUnipolSAIchampionship

yy Synergia Consulting Group Event – soiree organized by Synergia Consulting Group,ProfessionalAlliance

yy XVII Regional Cardiology Congress - Regional Cardiology Congress organized under thesponsorshipoftheSassuoloHospitalandtheEmiliaRomagnaNationalHealthService

yy FlorimDesignExperience–workshopdedicatedtoarchitectsanddesigners,incollaborationwithPoli.DesignofMilan

yy Florim100%ChristmasParty–ChristmaspartyforallFlorimemployees.

Watch the Cersaie Nights video

Photosoftheeventsonpages22and49


Magnum Oversize slabs in the new Florim Flagship Store in Milan (Foro Buonaparte 14)


PART ONE – GOVERNANCE

Ethics CodeInorder toencourage information transparencyand increaseawarenessof social responsibility inallmembersofthecompany,theBoardofDirectorsofFlorimapprovedtheEthicsCodeandtheOrganization,ManagementandControlModelonMay18,2011, incompliancewithLeg.Decree231/2001. InMay2012, the organizational model was reviewed and updated with the introduction of regulations forenvironmentalviolations.Thecontentapprovalandsharingprocessledtoanewmissionandthedraftingofnewsharedvalues,whicharelistedbelow.

Our missionOur company aims toproduce ceramic tiles andmaterials formultiple uses andproposes themostappropriatesolutionsforfurnishingsandarchitecture.Allofthisoccursinaregimeofeco-sustainability,attempting to satisfy the needs of customers and to create value for shareholders, employees andthe territory, in theunderstandingof the importanceofobserving theprinciplesand rulesofconductexpressedintheEthicsCode.

Our visionTobeatthecuttingedgeoftechnicalandaestheticinnovationinceramics,bystudyingthematerialsandproductionmethodsthatwillenableustobealwaysapointofreferenceforcustomers,designersandcompetitors.

Our valuesHonesty and respect: ensure that all internal and externalrelationshipsarebasedonhonestyandrespectfortherulesanddignityoftheindividual.Corporate social responsibility:promotecorporatesustaina-bility,establishingmeasuresandactionstosupporttheenvi-ronment,communityandterritory.Individual responsibility:understandingthevalueandeffectofone’sactions.Quality and innovation: pursue excellence by improvingproducts, processes and skills, to promote corporatesuccess.Clarity:opencommunicationsanddialogue,inordertobuildhonest and lasting relationships, inside and outside thecompany,withoutmisunderstandingsorulteriormotives.Courage:moral strength thathelpsuscopewithchanges,difficulties, and challenges and the ability to seize everyopportunity.Sense of belonging: the feelingofprideofbeingpartof ateammadeupofthecompany,associates,customersandsuppliers.

Supervisory BoardTheSupervisoryBoardwassetuptoensuretheimplementationofandcompliancewiththeabovementionedprinciples;thisboardmustrecordanynon-compliancesandbenotifiedofanyirregularitiesorviolationsof theEthicsCodeand theOrganizationalModel.All employees,shareholdersandstakeholderscancontactthesupervisoryboard,eventoclarifyanydoubtsregardingtheinterpretationandapplicationofthecorporateEthicsCode.Theproceduresandcommunicationchannelsusedtoreachthemembersofthesupervisoryboardhavebeenpublishedontheintranetandourcorporatewebsite.


EDILFLOORs.u.r.l.Sharecapital€98,126.81

FLORIMUSA,inc.SharecapitalUSD51,865,541

FLORIMSOLUTION,inc.SharecapitalUSD845,943

FLORIMCERAMICHEs.p.aasociounicoSharecapital€50,000,000

50,3822%

100%

100%

FABBRICAdelleMATERIEs.r.l.Sharecapital€10,000

FINTWINs.p.aSharecapital€540,800

ISABELLAs.r.l.Sharecapital€100,000

10%

FIHOLDING,inc.SharecapitalUSD50,000

100%

FLORIMFAREASTPTEltd.Sharecapital$10,000

FondazioneIng.G.LuccheseEquity€60,000

FLORIMBRASILDISTRIBUIÇÃODECERÃMICASltda

SharecapitalR$461,000,00

FINFLOORs.p.aSharecapital€10,500,000

MAKERMANIFATTURECERAMICHEs.r.l.

Sharecapital€18,000,000

1%

66,666%

96,67%

100%

99%

100%

100%

100%

FLORIMRUSRubliShareCapital100,000

1% 99%

Corporate structure

The share capital of Florim Ceramiche s.p.a., fully subscribed and paid-up, has been increased to50,000,000Eurosrepresenting50,000,000ordinaryshareswithanorminalvalueof1Euroeach.ThesharesarefullyownedbyfinancialholdingcompanyFinFloors.p.a.,basedinFioranoModenese,whichisinturnindirectlyownedbytheLucchesefamilythroughFin-Twins.p.a.

TheBoardofDirectorsofFlorimiscomposedoftheelevenmemberslistedbelow:

CLAUDIO LUCCHESE President & CEOCARLO LUCCHESE Vice PresidentMARIADELE LUCCHESE DirectorANNA LUCCHESE DirectorDONATO BRUNI Executive DirectorERMES GIUSEPPE FERRARI Executive DirectorGIOVANNI GROSSI Executive DirectorOSCAR ISEPPI Executive DirectorDORVAN SAZZI Executive DirectorSTEFANO TORRENTI Executive DirectorARRIGO ZAPPAROLI Executive Director

TheBoardofDirectorshasamandateofoneyearandnewelectionswillcoincidewiththeapprovalofthefinancialstatements.TheBoardofStatutoryAuditorsiscomposedofthreememberswhosetermofofficeisthreeyears-startingfromnominationon8/5/2013untilapprovalofthe2015financialstatements.ThefinancialstatementsofFlorims.p.a.,andtheconsolidatedfinancialstatementsofFinfloors.p.a.,areauditedandcertifiedbyDeloittes.p.a.

Thefollowingkeychangeshavebeenmadetothegroup’scorporatestructurewithrespectto2013:• IncorporationofFlorimRUS• MergerofH2HOMEs.r.l.intoFlorims.p.a.


Stakeholders

Stakeholder, ismeantasall the individualsandgroupsofpeoplewhocan influenceorbe influencedby the activities of the companywith regard to its policies, products andmanufacturing processes.Shareholders,employees,clients,suppliers,institutions,environment,localcommunities,banks,laborunions.

Employees and Labor Unions

Florimhasundertakenthefollowingcommitmentsinitsrelationshipswithitsemployees:- toensureequalopportunity,faircompensation,andprofessionaldevelopment- torecognizeitshumanresourcesbasedontransparent,merit-basedcriteria- tocreatesafeworkspacesandworkprocesses- toensuretransparencyandclarityinthecontractualconditions- toensureopencommunicationandexchangewithinthecompany

Customers

Indealingwithitscustomers,Florimiscommitted:- tobuildarelationshipoftrustthatprovidesstabilitytoitsinteractions- toensurethereliabilityofitsproductsanddevelopcustomerservices- toofferdiversifiedproductswithhighvalueaddedservices- toguaranteeclarityinthecontractsandinthebillingprocess

Designers, architects and interior designers

InordertosatisfytherequirementsofdesignersFlorimiscommittedto:- offersolutionsthatarealwaystechnologicallyandaestheticallyinnovative- establishandfosterrelationshipswithprofessionalpartners- provideconsultancyservicesandtechnicalexpertisefromtheproject’sconceptiontothecompletionofthework

- provide“turnkey”solutions

Community and Institutions

Florim’scommitmentsinitsrelationshipswiththecommunityatlargeandlocalinstitutionsinclude:- guaranteeingdialogue,cooperationandtransparency- restoringvaluetothecommunitiesinvolvedinthegeographicalareaswhereFlorimdoesbusiness- contributingeconomicallytothelocalsportsandsocialinitiativesforchildrenandteens

Environment

Florimhasundertakenthefollowingcommitmentsinitsenvironmentalmanagement:- tocontinuouslyimprovetheenvironmentalperformanceofproductsandprocesses- toresearch,develop,andusethemostsustainabletechnologies

Suppliers

WhenselectingitssuppliersFlorimpayscloseattentiontocompanies’CSRpractices.ForthisreasonFlorimhasaskedsupplierstofillinaquestionnairewhichprovidesascorebywhichthevendorcanthenbeassessed.


PART TWO – REPORTING

In Brief

Economic profileFinfloor consolidated(inthousandsofEuros)

2010 2011 2012 2013 2014

Net revenue 273,822 304,612 315,344 325,853 329,533

Gross margin (EBITDA) 41,835 53,265 59,608 72,986 84,395

Operating profit 20,434 30,213 35,717 50,996 58,508

Gross Cash Flow 40,064 47,170 52,710 68,312 83,274

Net profit 14,790 17,824 26,103 35,732 36,433

Net financial debt (166,640) (149,737) (127,730) (96,500) (54,524)

Closing inventory 130,367 112,966 95,514 84,432 90,283

Net shareholders’ equity 144,181 167,202 186,905 218,847 276,916

Total investments 30,874 39,408 32,572 48,780 41,584

Environmental profile2010 2011 2012 2013 2014

Wasteproducts(t) 26,302 30,705 30,228 21,170 22,300

Recycledthirdpartywaste(t) 2,630 3,805 4,028 4,190 1,721

Totalwaterconsumed(m3)/Finishedproduct(t) 0.80 0.76 0.75 0.75 0.78

Recycledwaterpercentage 100% 100% 100% 100% 100%

Self-generatedenergyascomparedtoneed 22% 56% 67% 68% 62%

Investmentsforenvironmentalmanagement(€‘000)

2,426€ 9,867€ 13,617€ 2,493€ 1,995€

Company profile2010 2011 2012 2013 2014

NumberofemployeesatDecember,31 1,151 1,058 1,037 992 984

Numberoftraininghours 11,309 9,175 14,690 9,124 9,056

Numberofhoursoftrainingonenvironmentandsafetyissues

3,011.5 2,871 7,572 4,514 4,200

Numberofworkplaceaccidents 78 81 63 62 74

Environmental and social figures refer to Florim Italia and MaKer. For the same information in relation to Florim USA, see the designated section


Economic responsibility

Comments on 2014 business data

2014marksthesixthconsecutiveyearofgrowthandimprovementofallthefundamentalindicators.

Againstamodestgrowth inrevenue, thenetprofitrecordedrosefromEuro35.7milliontoEuro36.4millionandEBITDA(orGrossOperatingMargin)fromEuro73milliontoEuro84millionwithaneffectof25.6%onsales.

Thecontinuous improvementobserved in the last six years is a clear confirmation that thedirectiontakenbyFlorimGroupistherightone;themainingredientsofthissuccessareexpeciallytheselectionofinvestmentsconceivedwithparticularregardtocostfactorsandflexibility,theabilitytoofferhigh-qualityceramicmaterials,professionalismandreliabilityatalllevelsandthesearchforexcellence.

Onceagain,thepositiveeconomicdataareflankedwithaconsiderableimprovementinbalancesheet,where,despiteinvestmentsforEuro41.6million,thenetfinancialdebtsdeclinedfromEuro96.5milliontoEuro54.5million.

Investments

The largestpart of the41.6millionEuros invested in2014consistsof the25.1millionEuros for therenovation of Maker s.r.l., the description of which is given in the Focus below. Further importantinitiativesconcernedtheAmericanplantofFlorimUSAwherethesecondstageofinvestments,featuringthe installationofnewpressingandsorting lineswascompleted,andwheremore investments intherawmaterials, kilns and sortingdepartments are undergoing in 2015. The IT systemsdepartment ofthegroup’sheadquarters,atViaCanaletto,wasstrengthenedwiththeinstallationofaveryadvanceddatastoragesystem; furthermore, theworkat theFlorimLogisticscenterwascompletedalongwiththe launch of the integratedmanagement between the verticalwarehouse and service areas for thepreparationandshippingofmaterial.

FOCUS - MaKer

TheinvestmentsmadeinMakerarerepresentedbytheexpansionofafacilitythatheldthebrandnewtechnologyforthecontinuousproductionofupto160x320cmceramicsheets,alongwithamoderndigitaldecorationmachineandanewkiln.Furthermore, investments havebeencarriedout in theproductionof traditional porcelain tilesthroughtheinstallationofaPH10000,newglazinglinesanddigitalmachines,aswellasalatestgenerationkilnandthreesortinglines.InvestmentsinMakerwillcontinuein2015tocompletethepartrelatedtotheprocessingtheslabsandthetraditionalproducts.


Value added

TheeconomicpartoftheReportiscomprisedoftwoscheduleswhichdemonstrate:1.themeasurementofyearlyValueAdded(whichmeasuresthewealthproducedbythecompany)2.itsdistributionamongthemanykeystakeholders.

Measurement of Value Added

This section of theReport aims to offer a snapshot of values of the economic effects produced bycompanybusiness.Therefore, the result isa representationof thewealthproduced,centeredon theformation of Value Added, which is perceived as the ability to create resources to distribute to thestakeholdersinterestedincompanyactivities.Thescheduleshowsthefollowinglevels:

• Gross Value Added (GVA),whichisobtainedfromthedifferencebetweentheproductionandtheintermediatecostsofproduction:- thetotalvalueofproductionisfoundbytotalingthevaluesoftheproceedsobtainedfromthe

ordinaryactivitiesofthecompany- intermediate costsarethecoststhatdonotrepresentremunerationoftheinternalstakeholders,

suchasrawmaterialconsumption,costsdesignatedforservices,andothercharges

• Global Gross Value AddedwhichistheresultofaddingancillaryandextraordinarycomponentstothecharacteristicGrossValueAdded:- ancillary components(accessorychargesandincome)refertowealthmanagementandfinancial

assets- extraordinary components (extraordinary charges and income) arise as a result of occasional

eventsthatareunrelatedtoordinaryactivity,forexample,capitalgainsandlosses,outofperiodgainsandlosses.

Schedule of how the Value Added measurement was reached(ValuesrefersolelytotheconsolidatedfinancialstatementsofItaliancompanies)

In thousands of Euros 2010 2011 2012 2013 2014

Revenue from sales and services 217,334 242,324 243,365 240,570 240,638Other revenue 3,406 4,411 9,682 7,581 11,783Change in inventories of prod. and semi-finished goods (6,494) (11,169) (14,529) (5,542) 704

Total value of production 214,246 235,565 238,519 242,609 253,125

Raw materials costs 54,800 59,579 61,989 58,597 59,935

Change in raw materials inventories 1,021 2,751 1,241 1,513 740Costs of services 65,215 72,267 73,357 72,352 70,512Costs of outsourced services 3,215 3,654 3,285 2,345 2,160Other operating expenses 3,870 4,952 3,478 3,429 2,388

Intermediate costs of production 128,121 143,203 143,350 138,236 135,735

Characteristic Gross Value Added 86,125 92,362 95,169 104,373 117,390

Accessory charges and income 3,718 (27) 302 815 1,330Extraordinary charges and income (1,240) (2,982) 1,364 (197) (1,905)

Extraordinary and accessory components 2,478 (3,009) 1,666 619 (575)

Total Gross Value Added 88,604 89,353 96,835 104,992 116,815


Distribution of the Value Added

Tobeabletoreportonthewealthproduced,ascheduleisusedtoshowitsdistributionamongthosethathavereceivedbenefit:

a.Employees and other associates of the companyWagesandsalaries,social,pensionsandinsurancecosts,TFR(severancepay),leavingindemnitiesandotherimmaterialcosts.

b.CompanyUndistributedprofits,provisions,amortization,depreciationandwritedowns.

c.Capital providers with explicit interest Interestchargesandotherfinancialcostsandchargesarisingfrompayablestoparentandassociatedcompanies,payablestobanksandcreditinstitutions,andpayablesrelatedtoothercommitments.

d.Government Theeconomicbenefitacquiredbythegovernment(intheformofdirecttaxation).

e.Stockholders Thetotalamountofdividendspaid.

Schedule of how the Value Added was distributed

In thousands of Euros 2010 % 2011 % 2012 % 2013 % 2014 %

Employeesandotherassociatesofthe

company56,257 64% 54,608 61% 54,607 56% 57,002 54% 56,985 49%

Company 19,834 22% 20,997 24% 29,679 31% 32,160 31% 38,416 33%

Capitalproviderswithexplicitinterest 6,578 7% 6,408 7% 5,612 6% 4,959 5% 5,313 4%

Government 3,940 5% 7,339 8% 6,937 7% 10,871 10% 14,001 12%

Stockholders 1,995 2% 0 0% 0 0% 0 0% 2,100 2%

Total Gross Value Added 88,604 100% 89,353 100% 96,835 100% 104,992 100% 116,815 100%

Inside the new Florim Flagship Store in Milan (Foro Buonaparte 14)


Cersaie 2014 – “Our formula for passion” Event - featuring Piero Ferrari (Florim Gallery)

Cersaie 2014 – “Our formula for passion” event – featuring Massimo Bottura (Florim Gallery)

Cersaie 2014 – “Our formula for passion” event – featuring Philippe Daverio (Florim Gallery)


16,000 square metersofsolarpanelscoveringasurfaceof30,000square

meters

2Prestigiousprocesscertifications:

ISO50001(ENERGY)andISO14001(ENVIRONMENT)

3State-of-the-artkilnsinstalledlastyear

1Laboratoryforthestudyofproductsof

contemporarydesignwithparticularattentiontothegreencontentofmaterials

100%istherecyclingratioofwastewater

62%istheshareofself-generatedelectricityfromthe

totalconsumption

34,155recycledbottlesinthedeviceforboosting

recycling

2cogenerationplants

1marketingandcommunicationdepartmenthandles

digitalizationofpromotionaltools

449isthenumberofLEDlampsinstalledinthe

Mordanoplantin2014

3differenttypesofproductcertification

4,823,883KgofnonemittedCO2sincethesolarpanels

startedworking

CO2

Environmental Responsibility

ForyearsnowFlorimhasfollowedastrategyofcarefullymanagingitsownoperationsandtheirimpactonthelocalenvironment.Thispageaimsatsummarizingthemainoperationscarriedoutandtheresultsobtained.

FOCUS – “Green” numbers


Certifications

Florim’senvironmentandenergycertificationsconsistoftwotypes:

System certifications:

• UNI EN ISO 14001 Florim obtained the prestigious,wholly voluntaryUNI EN ISO 14001 certification, issued by

TÜV.Thiscertificationatteststothecompany’sconformitytoasetofstandardized,internationalprocedures that aim to improve the company’s internal environmentalmanagement system.Florim sought to obtain this recognition in order to reconcile quality with efficiency andproductivity,whilerespectingtheenvironmentandthelocalareawherethecompanyworks.

• UNI EN ISO 50001 Thankstoacarefulenergymanagementpolicyandwiththesupportoftherecentinvestments

intheproductionareaaimedatbetterenergyefficiency,FlorimisthefirstceramicscompanyintheworldtohaveobtainedtheISO50001certificationfortheEnergyManagementSystem.

Product Certification:

• Ecolabel Ecolabel(ECRegulation66/2010) isacertificationwhichisgrantedtothoseproductswhich,throughouttheirlifecycle,complywithecologicalandperformancecriteria set at aEuropean level and regards:miningrawmaterials,selectingsuppliers,manufacturingprocesses,packaging,useanddisposal.Thesecriteriaareperiodicallyrevisedandmademorestringent soas to foster continued improvement in theenvironmentalquality.

• Bureau Veritas – Recycled content ManyceramictileseriesbearingtheFlorimbrandhaveearnedcertificationfromBureauVeritas

forthehighcontentofpre-consumptionrecycledmaterial.Thesearticlesarefullyeco-compatibleand can meet the environmental sustainability requirements imposed by many internationalcertifications.

• Membership LEED (Leadership in Energy and Environmental Design)

In 2014 Florim registered again with the U.S. Green Building Council(USGBC),themostimportantassociationofindustriesinthebuildingsectorunitedforpromotingthereductionofthenegativeimpactofconstructionontheenvironment.Toenablerealmeasurementandaccuratemonitoringofthedegreeofsustainabilityachievedbyaproject,in1999theUSGBCdevelopedcertification fordesigningsustainablebuildingsknownas theLEEDGreenBuildingRatingSystem.

LEEDisoneofthemostrecognizednamesintheinternationalbuildingindustryanditscertificationisusedinmanyinternationalareastoverifyandcertifythesustainabilityofabuildinginitsentirety,fromthedesignphasetoitsdaytodaymanagement(thisisnotproductcertification).Florimmaterials,aspartofthesystemwhichconstitutesthebuilding,canhelpthebuildingandthebuilderobtainLEEDpointsinanumberofareas.Alldataconcerningeachindividualcollectionaremadetransparentandareavailableonthebrand’swebsite.


• GreenguardIn 2014, Florim obtained the prestigious Greenguard certification on all itsproducts.Suchenvironmentalproductcertification,issuedbytheAmericanULEnvironmentauthority,hastheaimofreducingthevolatileorganiccompoundslike ozone and carbonmonoxide emitted by plants andmaterials used forinteriors furniture. UL Environment thus aims at protecting human healththroughanairquality improvementandareductionofpeople’sexposuretochemicalandpollutingsubstances.FlorimhasalsoobtainedtheGREENGUARDGoldCertification,which,thankstoanevenstricteremissionlimit,certifiesthattheuseofagivenproduct isalsoacceptableinlocationssuchasschoolsandhealthcarestructures.

Environmental managementThefollowingnumbersrefertothematerialstoredinthewarehouseasfinishedproductstokeepaconstantandcoherentreferenceintime.2014sawsignificantproductionofmixturesavailableforsale,whichhavenorelevancetothereport’spurposes,eventhoughtheyconstituteanimportantpartofthewaterandenergyconsumption.

Waste management

The waste produced, except for what is recycled within the production cycle (greenware scraps, dustresiduescomingfromfilters,mudcomingfromtreatmentprocessandwaterpurification),canbedividedinto:

- non-dangerous recyclable waste, such as paper and cardboard, fired scraps, plastic, glass andwood

- non-dangerous, disposed-of waste,suchasthatresultingfromcleaningwithmotorsweepers- dangerous recyclable waste, suchasspentoil,batteriesandmonitors.- dangerous, disposed-of waste, suchasspentlime.

Waste 2010 2011 2012 2013 2014

Totalwasteproduced(t) 26,302 30,705 30,228 21,170 22,300

Non-dangerous,recyclablewaste(%) 99.07% 99.04% 98.94% 98.22% 98.5%

Non-dangerous,disposed-ofwaste(%) 0.09% 0.17% 0.18% 0.42% 0.2%

Dangerousrecyclablewaste(%) 0.23% 0.05% 0.04% 0.07% 0.1%

Dangerous,disposed-ofwaste(%) 0.61% 0.74% 0.83% 1.3% 1.2%

Thirdpartywasterecycledwithintheproductionprocess(t)(*) 2,630 3,805 4,028 4,190 1,721

(*)Besidesrecyclingwastederivingfromitsownproductioncycle(notenteredinthetablebecauseitisnotquantifiable),Florimalsorecyclesthirdpartywaste.

Water resources

Environmentalimpactrelatedtowaterdrainageiscompletelyabsent,sincewaterusedintheproductioncycleiscompletelyreused.Allotherdrainagepointsfullycomplywithlegalrequirements.

Water use 2010 2011 2012 2013 2014

Totalwaterconsumed(m3)/Finishedproduct(t) 0.80 0.76 0.75 0.75 0.78

Theaboveindexrepresentstotalquantityofcubicmetersofwaterusedpertonoffinishedproduct.Thewaterused in theproductionprocess inFiorano isdrawnfromprivate,company-ownedwells,whilethewaterfromthepublicsupplyisusedonlyforcivilpurposes.Makerusesanindustriallevelwaterduct.


Packaging and covering

AllthepackagingcontainingFlorimmaterialsareobtainedusingrecycledpaperandpartsofthecoveringusedtoshelterthepalletswhichsupportthefinishedgoodsaremadeofrecycledplastic.

Thankstotherecentinstallationofnewpackaging machinesinalllinesofthesortingdepartmentatViaCanaletto,1,700,000squaremetersofcardboardweresavedin2014,equaling36%oftheconsumptionusingtraditionalpackagingmachines.

Energy managementIntheceramicsindustry,theenergynecessarytooperatetheproductionsystemsisquiteintensiveandhasadirectandindirectimpactonthelocalareaandtheenvironment.Themainindicatorusedtomeasuretheenergyperformanceofthesystemsisthespecifictotalaverageconsumptionofenergy(TEJ)measuredinGJ/tofproductinstock.Asyoucanseefromthetablebelow,thisuseisgivenbythetotalheatconsumption(NGJ)andelectricityused(EEJ).

Inthiscase,pleaserefertowhatwasmentionedintheintroductiontotheenvironmentalmanagementrelatedtotheproductionofmixturesintendedforsale.

Parameter– DefinitionUnit of

measurm.2010 2011 2012 2013 2014

NGJSpecificaverageconsumptionofnaturalgaswithreferencetothetotalamountoffinishedproductsenttothewarehouse.

GJ/t 5.24 5.70 5.57 5.71 5.76

EEJ

Specificaverageconsumptionofelectricitywithreferencetothetotalamountoffinishedproductsenttothewarehouse.

GJ/t 1.11 1.10 1.11 1.08 1.11

TEJ

Specific average consumption of total energy with reference to the total amount of finished product sent to the warehouse

GJ/t 6.35 6.80 6.68 6.79 6.86

% Self generated electricity as compared to need % 22 56 67 68 62

Eco-green, photovoltaic performance indicators of Florim – Florim headquarters (Fiorano Modenese – MO)


With thecompletion of the cogeneration turbines and thesolar plant, thecompanyhasachievedaleveloffacilitiesundoubtedlyuniqueandapointofreferenceforthewholeceramicssector.Thankstoallitsefforts,FlorimhasbeenthefirstceramicscompanytobeawardedtheprestigiousISO 50001 certificationforenergymanagement.The16,000squaremetersolarplantwasrecognizedbyGSE(EnergyManagementServices)amongtheplantswiththemostinnovativefeaturesand,fromitscommissioning(October2011)uptoDecember2014,itproducedthefollowingresults.

kWp kWh produced Kg of CO2 not emitted

2,700.21 9,084,525 4,823,883

Thankstotheinvestmentsmade,thecompanywasabletoself-generating62%ofitstotalelectricityneeds.

Polluting emissions

Theindustrialproductionfacilityreleasesgreenhousegasesintotheatmosphere,essentiallymadeupofcarbondioxide(CO2),whosemainsourcescanbesplitinto:

- combustion,fromtheburningoffossilfuels(suchasmethanegas)- processing,causedbymineralscontainedinrawmaterials,fromorganicmaterialcontainedin

theclayusedinmakingthetiles,fromthepresenceoforganicadditivesinthepaste.

In compliancewith Directive 2003/87/EC (ETS - Emission Trading Scheme), in 2013 Florim beganreportingandcertifyingtheCO2emissionquotas.TheDirectiverequiresthateveryyearcompaniescertifytheshareofCO2emittedduringthepreviousyearandthat,bycomparingthisdatawiththequotasallocatedbytheMinistryoftheEnvironment,theypurchaseany“missing”sharefromaspecialCO2market.BelowarethedatacertifiedbyFlorimstartingfromeffectivedateoftheDirective.

CO2 emissions 2013 2014

CO2emissions(t) 102,728t 103,462t

CO2emissions(t)/Finishedproduct(t) 0.33 0.33

Emissions from the production cycle 2013 2014

Particulatematerial 2.23 1.30

Lead 0.00 0.00

Fluoride 0.14 0.18

Florim vehicles

More than45%(in increasecompared to41% in2013)of thevehiclesusedwithin thecompanyareelectricanddonotdirectlyemitgreenhousegases.Allothervehicleshaveacatalyticconverter.Thecompany’scarpoolalsoincludesa“FullHybrid”vehiclewhichcanalsoworkinelectricmodeonly,withzeroCO2emission.


Event dedicated to women – Florim Gallery (Fioriano Modenese - MO)


Employees

TheemployeesarethecoreofFlorimandrepresentthecharacterizingcomponentofit,constitutingitsDNA.In2009,theyearwhenthegreateconomiccrisisbegan,Florimimplementedseveralsolutionsforsupportingofemployees’earnings.Belowisasummaryofsomeoftheactivitiescarriedoutin2014.

- Useof theCassa IntegrazioneGuadagniStraordinaria inderoga (specialsupplementalsalaryfund)andEmployeeSolidaritycontracts

- Anagreementwith theSassuoloHospitalunderwhichFlorimemployeesandtheir respectivefamiliesmay benefit from favorable rates and reducedwaiting times for specialist visits andoutpatientdiagnosis,inthefreelanceprofessionalsystem

- OtherCSRactions:• summercenterfortheemployees’children• agreementswithlocalnurseryschools• 65%discountonthepurchaseofFlorimproductsforemployees’privatehouses.

Composition of the staff(Florim,FinfloorandMaKer)

This table highlights how female employees in Florim are gaining increasingly strategic positions ininternalmanagementpositions,atrendthatthecompanyisdedicatedtoencourageincomingyears.In2014,25peoplewithdisabilities, including18menand7women,wereregisteredinthecompany’sstaff.The distribution between men and women,takingintoconsiderationtheresponsibilitiesdictatedbythetypeofactivity,reflectingtheaverageoftheindustry.Consideringclerksandmiddlemanagement,menearnanaverage10%morethanwomenforjobsofequalresponsibility.Amonglineworkers,thedifferenceis7%.Thereareatotalof31foreignemployeesinthecompanyasof31/12/2014:26inFlorimand5inMaker.

Incentives and bonusesSince1992,as thefirstcompany in theceramics industry,Florimdrewupan internalcontract (whichwasextremelyinnovativeforitstime)thatincludedavariableannualbonusawardedtotheworkersintheindustrialareaandthatwasrelatedtoanumberofeconomicandqualityindicators(EBITDA,firstqualityyield,waste,andproductivity).

NearlyalltheemploymentcontractsofFlorimemployeesarealsoregulatedbycompanyagreements,whichsupplementtheNationalCollectiveBargainingAgreementintheCeramicsindustry.The areasbeingdiscussedwith the employee and labor union representatives concern not only thestrictlyeconomicpart,butalsothecontinuousimprovementstosafetyandthequalityofthework,andthecompetitivenessandproductivityofthecompanysystem(achievedthroughcontinuousprofessionaltrainingoperations).

Latabellasottolinea

Social Responsibility

Position

Executive-level Middlemanagement Administrativeemployee Equivalent Productionline

worker Total

YearGender 2011 2012 2013 2014 2011 2012 2013 2014 2011 2012 2013 2014 2011 2012 2013 2014 2011 2012 2013 2014 2011 2012 2013 2014

Women 0 1 2 3 3 3 3 1 143 144 137 142 18 19 18 16 255 239 226 219 419 406 385 381

Men 22 19 18 21 23 27 21 24 119 125 127 132 63 63 64 68 412 397 376 358 639 631 607 603

Total 22 20 20 24 26 30 24 25 262 269 264 274 81 82 82 84 667 636 602 577 1,058 1,037 992 984

Figures have been calculated using the number of staff employed in December.


TrainingFlorimbelievesthatin-housetrainingplaysakeyroleinthecompany’sdevelopment,acriticalopportunityinthesetimesofeconomicdownturnandthebesttoolfortheprofessionaldevelopmentofitshumanresources.Morethan9,000traininghourswereprovidedin2014to412persons,withanaverageof22hoursoftrainingperemployee.

TheactivatedcoursesincludenewactivitiesaimedatretrainingtheMordanoplantpersonnel.Morethan141employeesweretrainedtousethenewmachinesfortheproductionofbigceramicslabsintroducedwiththeinvestmentsmade(total1,920hours).

FOCUS – Master in Florim 3.0

FlorimMaster’sDegree returnsafter thesuccessof thepreviouseditionsandreaches its thirdedition in2014. Internal instruction is included in theCorporateSocialResponsibilityactivitiespromotedbythecompanyandhastheaimoffacilitatingtheencounterbetweenyoungpeopleand theworldofworkbymeansofawell-structuredorientationactivity.Theeducationalpathfavors theacquisitionofconcepts related tocorporatestructure, territoryand inter-disciplinarytopics.12youngpeopleattendedthelasteditionoftheMaster’sDegree.Almostallofthemgraduatedindifferent Italiansubjectsanddepartments; theyhavebeenselected internallyand integratedin the corporate context: school lessons, training, project works and analysis areas lead theeducationalpath.Theexternalandinternalteachershaveworkedintandemduringthe26weeksscheduledfortheprogramtoteachthedynamicsandtheconnectionsofcorporateprocesses,fromproductconceptiontomarkettrading.TheMaster’sDegreeincludedtrainingandin-depthanalysisinallcorporateareas:fromLabtoProduction,fromMarketingtoSales,continuingtoalltheadministrativefunctions.Inall, thecompanyemployed26youngpeople,equaling80%of theparticipants in the last3editionsofMaster’sDegree.Theinitiative’sprestigeisreinforcedbytheeconomiccontextinwhichitiscarriedout,consideringthatFlorimpaysthestudentsduringthewholeperiod.Theprojectarosefromthecompany’swillingnesstohirenewtalent;itaddressesthedifficultiesofemploymentoftheyounganditrepresentsanexcellentpost-graduateorientationopportunity.TheMaster’sDegreeobtainedthesponsorshipofmanyimportantdepartmentsofItalianUniversities:DICAM–FISTEC–DIEF–ISIA–Schooloffinearts–IISA.Volta.

Safety and health

Florimwas the first Italian ceramic company to have attained theBS OHSAS (Occupational Health &SafetyAssessmentSeries)18001certificationfromTÜV,aninternationalreferenceattestingthepresenceofan internalmanagementsystemorientedtohealthandsafety in theworkplace.This important certificate announces the company’s attention and its constantcommitment to its employees. Every year, in addition to engineering controls andmaintenanceoperationsonmachines in theplant, thecompanyorganizesseveralhours of safety training to raise awareness among employees and supervisors.Specifically,in2014,4,160hourswerededicatedtosafetytraining.Theslight increaseinwork-relatedinjuriesrecordedin2014ismostlyattributabletobehavioralmistakes (distractions)of theemployees.75%of injuries, initially required less than8daysofabsencefromwork.Noinjuriesaredirectlyattributabletothetechnologiesusedinthecompany.

Anewdefibrillator wasaddedinFlorimLogistics,tothepreviousthreethatwerealreadyinstalledinthecompany’s facilities.TheBLSDrefreshercoursesarecontinuouslyheld forFlorimemployeestrained infirst-aidoperations.


Employee welfare

Summer Centers and Nursery SchoolsIn 2014, in order to support the employees’ families, Florim renewed the summer camp project byextendingit,asinpreviousyear,totheworkersatMakeralso.Whenschoolswereclosed for theirsummerbreak thechildrenofFlorimemployees tookpart in twosummercamps (ParishesofSpezzanoandMordano)and theparticipation fees for thechildrenwerepaidforbythecompany.AnewagreementwithanEnglish-speakingsummercenterforchildrenaged3to13wassignedin2014.Since2013thecompanyhasalsoconcludedanumberofdiscountswithlocalnurseryschoolswhichnowofferanumberofspacesforemployees’childrenatareducedfee.

Job sharingInlightofourongoingpromotionofCorporateSocialResponsibility,Florimnowoffersjobsharingforitsemployees,whichallowsahealthierwork-lifebalance.

Dedicated eventsAmongtheseveraleventsorganizedinFlorimGalleryin2014,somewerespeciallydesignedforFlorimemployees.DuringtheWorldSoccerChampionshipinJune,forexample,thegamesplayedbytheItalianteamweredisplayedonthe50-square-meterledwallandthespacewasopentoemployees,familiesandfriendswithacocktailofferedbythecompany.Furthermore,onDecember19th,tookplacethe“100%ChristmasParty”,organizedforFlorimemployeestocelebrateayearofgreateffortsandsatisfactions.

The Spezzano Parish Summer Camp (Fiorano Modenese, MO)

Whatch the video of Florim Christmas Party


TerritoryThischapterwillincludeaseriesofinitiativesthatFlorimaddressestotheterritorywhereitoriginatedandwhereithasbeenworkingformorethan50years.

Fondazione Ing. Giovanni LuccheseThirty years after the untimely death of Giovanni Lucchese – founder of whatwas then FloorGres,currentlyFlorim–andinordertohonorhismemory,hisfamilyestablishedthehomonymousFoundation,whichfundsentitiesandassociationsdedicatedtosupportthepoorestfamiliesinthedistrict’scities.TheFoundationalsocarriesoutmanyinitiatives,suchasthesummercenterfortheemployees’children,theLucchesePrizeandFlorimhealth&trainingcenterdescribedinthefollowingfocus.

FOCUS - Florim health&training center

The CSR principles are enhanced using a reference example that joins industrial culture andhealthcare in anoriginalmanner for thebenefitof thecommunitywhereFlorimandOspedalediSassuolos.p.a.arebased, the latterbeingamixedpublic-privatecompanyrunning thekeyhealthcarefacilityintheSassuolodistrict.Florimhealth&training is thesynthesisof this ideawhichmaterialized throughanexperimentalcenterpromotingresearch,trainingandadvancedmedicalsimulationinthearea.

The centerLocatedintheFlorimheadquarterandinauguratedonApril16,2014,thecenterextendsovera550-square-meterarea,equippedwithamodularconferenceroomthatcanaccommodateupto100peopleandseveralroomswhereseminarsandclassescanbeheld.Theintelligentcoreofthecenterliesinitssophisticateddirection,whereawealthoftechnologyallowscontrollingdummiesin every possible way to reproduce human functions. The advanced simulation instrumentis important to keep healthcare workers’ skills up-to-date, particularly for those dealing withemergencysituations,especiallyinpediatricandneonatalresuscitation.

Health meetingsTheCenter,designedasacommonspaceopentoeveryone,alsoaimsatbecomingareferencepointtoincreasethecultureofpreventioninthepopulationandtheirabilitytoperformfirst-aidmaneuvers.AfterFlorimemployeesweregivenasurveyconcerningeducationalneedsandpreferences,aScientificBoardoftheCenter-composedoftheSassuoloHospitalmedicalpersonnel-wasappointedwhich,inturn,preparedabi-monthlyeducationalplanthatincludesseveraleventscalled“Healthmeetings”.Fromitslaunchanduptotheendof2014,theCenterhosted4meetingsdealingwithdifferenttopicswhichhaveregisteredabout350people:employees,theirfamiliesandpeoplenotworkingforthecompany.

American Heart Association TheAmericanHeartAssociation (AHA) is theoldestandmostauthoritativevoluntaryAmericanorganization(knownonagloballevel)dedicatedtothefightagainstcardiovasculardiseasesandstrokes. In thefirst fewmonthsof2015, theAHA,via theSimaid InternationalTrainingCenter,conferredtoFlorimsalute&formazionethequalificationofanAuthorizedTrainingSiteinbasicandadvancedcardiopulmonaryresuscitationeducationtothehealthandeducationcenter.

Watch the video


Research PartnershipsInadditiontotheinternalinvestmentsinresearchanddevelopment,FlorimhasfocusedonimplementingnewpartnershipsandcollaborationswithSchoolsandUniversitiestopromoteculturalexchangebetweentheeducationandindustrialsectors.

AtModenaandReggioEmiliaUniversity,towhomFlorimsuppliedmaterialsfortheventilatedfaçadeof newTecnopolo, it hasbeen realized “FlorimLaboratory”,whichhasbeenequippedwith thenewFLORIMAGEsensitiveflooringproject:aperceptiveandinteractivesurfacecapableofdetectingpresenceandmovement.TheinnovativeFLORIMAGEsensitiveandfloatingpavementsystemisalsotheheartof“Cubetto0”,theprototypeofanewhomedomoticssolutionthat’scurrentlyundergoingtestingattheItalcementiResearchandInnovationCenter.

FLORIMAGE was also installed in the Salento University Engineering Department and it is shortlyexpectedtobeexpandedandtransferredtotheMUSTmuseuminLecce.Partnershipsdevelopedin2014includeFlorim’sparticipationinsomehigh-school,degreeandpost-degreecoursessuchastheCityPlanninglaboftheMilanPolitecnico,theIUAVinVenice,theUniversityofFlorenceandtheITSinFaenza.Onalocallevel,Florimiscommittedtohostingseveralstudentinternshipworkingfor200-700hoursindifferentcompanyareas.

“Politecnico di Milano”Sincethe2005/2006schoolyearFlorimhasbeentheofficialsponsorofnumerousVocationalTrainingCourses of POLI.Design, the Milan Polytechnic consortium that manages post-graduation masterqualifications.Thesponsorshipconsistsinscholarshipsassignedtostudents.Thequalityofthestudyprogram, thecurriculaandanumberof individual interviewsare thecriteriaused toselect themostqualifiedcandidates.Since2012,thankstoourlong-standingcollaborationwithPOLI.Design,Florimhostedvariousmeetingsfocusingondesign in itsMilanshowroomwhichwerededicatedtoarchitectsanddesignersofeverynationality. Specialized lecturers from POLI.Design and the Politecnico di Milano ran various freeworkshopstitled“FlorimDesign Experience”.TheseworkshopswerededicatedtodevelopmentsintheInteriorDesignsectorandaimedtooffernewviewpointsondesigncultureaswellasnewapproachesforthedevelopmentofprofessionalstandardstodesignersmostreceptiveandattentivetochangesinthemarketandtheroleofdesign.TheHo.Re.CaDesignmeetingsheldattheendofNovember,whichissuedcoursecredits,wereattendedbymorethan180architectsinthegorgeoussettingoftheFlorimGallery.

Lucchese PrizeTheLucchesePrize,atitstwenty-seventhedition,wassetupinthememoryofEng. Giovanni Lucchese,fatherofFlorim’scurrentPresidentandconsistsinsomescholarshipsthatarerecognizedtostudentsfromtheAlessandroVoltaStateTechnicalInstituteinSassuolo,whograduatedwiththebesthighschooldiplomascores.OrganizedthisyearbyFloriminliaisonwithBologna’sSocietàCeramicaItalianaandheldforthefirsttimeintheFlorimGallery,theawardceremonytraditionallyhostsatalkoncurrentaffairsandhaswelcomedalargenumberofkeynotespeakersovertheyearstoaddressanaudiencecomposedofparticularlyattentiveandreceptiveyoungpeople.

“Aziende modenesi per la RSI”OnSeptember30th,2014the“AziendeModenesiperlaRSI”,anautonomous,openand inclusiveassociation joiningthecompaniesof theModenaterritorythatbelieveintheprinciplesandvaluesofCorporatesocialresponsibilityandofwhichFlorimisoneofthefounders,wasestablishedbymeansofanotarydeed.ThemembersofAziendeModenesiperlaRSIhavealreadypreparedaprogramofactivitiesfor2015andonDecember5ththeypresentedthemaingoalsandinitiativesforthefuture,atthe“Theenterpriseanditscore:economy,societyandCSR”conference.

Watch the Lucchese Prize video


2014 Lucchese Prize – Florim Gallery (Fiorano Modenese – MO)


Quality system

Current ISO9001standardsevolvedfromthedefinitionthatdescribesqualityas theability tosatisfyexplicitor implicitneedsviaaproductoraservice.AQualitySystem impliesconstant improvementofcompanyprocesses inorder toobtainproducts thatalwayssatisfy theclient’s requirements.Afterthe2014audit,Florimobtainedtherenewalof itsUNIENISO9001:2008certificationforthedesign,manufactureandsaleofceramictilesinallproductionareas.

OBJECTIVE INDICATOR 2010 2011 2012 2013 2014

Refiningthecontroloftheproductionprocess

Firstgradeyield(%) 91.6 92.1 92.4 94.3 94.2

Qualityindex(%) 86.8 87.3 88.3 90.5 90.3

Scrap(%) 5.3 5.3 4.4 4.1 4.2

Productivity(sq.m./hour) 11.5 13.7 13.6 13.2 12.6

Improvementsinsalesperformanceandcustomersatisfaction

Innovationindex(%) 31.3 31.6 33.0 29.6 36.7

coverage(%) 82.5 82.0 79.5 71.4 81.4

Totalportfoliotoshipinamonth(%) 93.4 92.6 91.1 83.7 88.8

Optimizationofthelineandofthewarehouses

obsoletestock(%) 20.3 19.5 17.2 12.6 16.5

Rotationindex(n) 1.08 1.25 1.29 1.48 1.64

Progressiveclearingofservicerelatedcomplaints,disputesandcontroversies

squaremetersreporteddisputed(%) 1.99 1.56 1.71 1.21 0.80

claimspernumberoflinesoftheorder(%) 1.06 1.24 1.00 1.13 1.08

Progressiveimprovementintheprofessionalismofthepersonnel

Employeesturnover(%) 0.7 1.7 1.5 2.3 0.4

LegendFirst grade yield Total order portfolio to ship in a monthRatio between the square meters of first qualityproductsandthetotalsquaremetersloadedinstock.

Ratio between the square meters ready to ship inthirtydaysandthesquaremetersenteredintheorder.

Quality index Obsolete stockRatio between the square meters of first qualityloadedinstockandtotalsquaremeterspressed.

Ratio between the squaremeters of second gradeanddiscontinuedproductsand total squaremetersinstock.

Scrap Rotation indexRatio between square meters pressed and squaremetersofproductactuallyloadedinstock.

Ratiobetweensquaremeterssoldandsquaremetersinstock.

Productivity Square meters reported disputedRatiobetweenthesquaremetersofproductactuallyloaded in stock and the total hours worked in thefactory.

Ratiobetweenthenumberofsquaremetersreporteddisputedandsquaremeterssold.

Innovation index Claims per number of order linesRatio between the square meters sold to a seriesdesignedinthepastthreeyearsandthetotalsquaremeters sold.With this system, Florimwill see howeffectivethedesignprocessisinrelationtosales.

CoverageRatiobetweenthesquaremetersofproductreadytoshipandsquaremetersenteredintheorder.

Ratiobetweenthenumberofclaimsandthenumberoforderlines.

Employees turnover Percentageratiobetweenthenumberofemployeesleavingthecompanywhowerelaterreplacedandthestaffatthebeginningoftheyear.


Quality, environment, safety and energy policies

System management guidelinesWhenimplementingitsSystem,Florimfulfillsthefollowingcommitments:

• respectforthestatutorylegislativeframeworkandtheapplicableregulations,withspecialattentiondevotedtoproblemsrelatedtosafety,theenvironmentandenergy,andadditionalrequirementsvoluntarilyadoptedandapplicabletotheorganization

• customerorientation,thisbeinganessentialcorporateresource,byidentifyinghis/herneedsandthedegreeofsatisfaction

• orientationtowardtheprotectionofthehealthandsafetyofallthepersonspresentinthecompany’sworkplacesofpertinencetothecompany

• Orientation towards the protection of public health through respect for the environment andcontinuous improvementofenergyperformance in thesocioeconomiccontext inwhichFlorimoperates.Thiscontextconcernstheactivityofproductionandsaleofceramic tiles.Suppliers,dealingwithFlorim,arerequiredtoshareitsapproachtoquality,environment,safetyandenergyuse.

• definitionofmeasurablegoals

• attainmentof thedefinedquality levelswithminimizationofcosts, tobeachievedbyreducingmanufacturingrejectsandoptimizingtheproductionprocess

• reductionofthenumber,durationandseverityofaccidenteventsinproductionsites

• managementofworkplacehygieneinordertopreventaccidentsandoccupationalillnesses

• optimizationoftheuseofnaturalresources

• optimization of energy efficiency by designing and purchasing energy-efficient products andservices

• continuousimprovementasapermanentcorporategoal

• accountability and involvement of all levels of the organization in order tomake all companyprocessesincreasinglyefficaciousandefficient

• creationofthenecessaryconditionstopromotethemaximumexpressionofideasandproposalsforimprovementinallareasofthecompany

• developmentoftrainingactivitiesforimprovementoftheprofessionalskillspresentinindividualcompanyfunctionsandarrivalatfullawarenessofhoweachsinglecompanyfunctionimpactsontheenvironment,healthandsafety,andenergyefficiency

• measurementandcheckingoftheefficacyofthequality,environment,safetyandenergysystemby means of audits and management reviews and revision of the system if deficiencies orinefficienciesareidentified

• adoptionoforganizational,commercial,designandmanufacturingmethodsthatallowpunctualidentification of market requirements and reduction of time tomarket, plus activities that areconstantly focused on protection of the environment, worker health and safety and energyefficiency.

• FlorimiscommittedtorespectingthesafetyrequirementsoftheinternationallogisticschainbycomplyingwiththeAEOstandardsandtoinformitscommercialpartnersconcerningthistopic.


Shop windows of the new Flagship Florim Store in Milan (Foro Buonaparte 14)


PART THREE – OUR COMMITMENTS

The promises we kept In last year’s Report we committed to reaching the following objectives in 2014:

Objective Result

Economic Responsibility

Launching the vertical warehouse and integrated logistics service area R launched

Activating an investment plan for the Mordano plant R activated

Moving the Milan Flagship Store R moved in April 2015

Open a new location in Moscow with exhibition areas and offices R inaugurated

Creating a Florim presence in Malpensa R created


Implementing the best technologies in order to reduce the environmental effects caused by the Mordano plant

R implemented

Removing eternit from the via Canaletto plant R partially removed

Partially removing the cement-asbestos roofing at the Mordano plant R removed

Moving the city recycling area R moved and inaugurated


Ensure jobs to employees of the Mordano plant thanks to investments in upgrading the production plant

R done

Inaugurate the Florim salute&formazione (health&education) center, a result of the collaboration between Florim and the Hospital of Sassuolo

R inaugurated

Continuing the activities promoted by the Fondazione Ing. Giovanni Lucchese R done

Launching the third edition of the Florim Master’s Degree R finished

Purchase a new defibrillator for the vertical warehouse R purchased


Objectives we want to reach Weaimtoreachthefollowingobjectivesin2015:

Objective

Economic Responsibilityy• InauguratinganewFlagshipStoreinNewYork

y• Continuingwiththeinvestmentplanlaunchedin2014intheMakerplantinMordano

y• InvestinginanewmainentranceinordertofacilitateaccesstothemainFioranoheadquarter

y• Completingthereinforcingoperationsofthebuildingsforanti-seismicupgrades

y• ContinuingwiththeinvestmentsinFlorimUSA

y• AttainingtheAEOcustomscertification


y• Renewingtheenvironmentalandenergycertifications

y PayingmeticulousattentiontotheenvironmentalaspectsoftheMakerrenovation.Inparticular,reducingenergyconsumptionfortheproductionofcompressedairandmaximizingtherecyclingofrainwater

y Starting a project for the implementation of LED lamps in via Canaletto plant

y• RemovalofremainingEternitroofsatViaCanalettoplant

Social Responsibilityy• Continuingwith“healthmeetings”orientedtowardcooperationwiththeSassuoloHospital

y• GivingspacefornewsocialmeetingsattheFlorimGallery

y• LaunchingthefourtheditionoftheMasterinFlorimdegree

y• ActivatingnewagreementsinfavorofFlorimemployeesandtheirfamilies

y• DesigninganewconfigurationfortheMakerlockerroomwiththeaimofbuildingthembytheendoftheyear.


Florim at Coverings 2014 – Overall Best in Show Award

PART FOUR – FLORIM USA

Profile and Economic ResponsibilityFlorimUSAwith headquarter in Clarksville, Tennessee, and its subsidiary Florim Solutions based inAtlanta,havebeenapartoftheFlorimGroupsince2000.

TheplantofFlorimUSAisamongthelargestandmosttechnologicallyadvancedintheUSAandproducesceramicmaterialandgresporcelaintilesforresidentialmarketandprojectsinNorthAmerica.Withthestrategyimplementedinrecentyearsandthesubstantialinvestmentsmade,FlorimUSAaimstobecomeacompanyofexcellencewithoneofthemosttechnologicallyadvancedplantsintheworld.Alsoin2014,about13milliondollarswereinvestedforinstallinganewpresswithrelatedglazinglineandtwosortinglines,andseveraloperationshavebeencompletedinthepurificationsector.Manyotherinvestmentsareenvisagedduring2015,aimedatthecompletionoftherestructuringoftherawmaterialpreparation,kilnsandsortinglinesdepartments.


Environmental ResponsibilityFlorimUSAadvocatestheFlorimEnvironmentalPolicyandiscommittedtothefollowingobjectives:

- decreaseenergyconsumptionduringtheproductionprocess

- improvethewastemanagementprocessemphasizingrecoveryandreuse

- introducenew,moreeco-efficienttechnologies

- implementintegratedmanagementsystems

TheUnitedStatesfactoryhasadoptedanapproachwhichreducestheenvironmentalimpactduringthevariousstagesofthelifecycleofproductsusingthebesttechniquesavailable.

Environmental Initiatives and awardsFlorimUSAhasearnedtheClarksville Montgomery County Green Certification (CMCGC).CMCGCisaprogramdesignedtohelpcompanieslearnandimplementbestpracticesintheareaofenvironmentalstewardshiptosustainthe localcommunity’sresourcesthroughaseriesoffreeworkshopstaughtbyenvironmentalspecialists.The“green”companycertificationwasawardedtoFlorimUSAthankstoanumberofinitiatives.Chiefofamongthemwastheinstallationofarainwatercollectionsystemthatusesotherwisewastedwaterforproductionprocesses.Thecompanyalsoissuedreusablecupstotheiremployees,eliminatingwastedplasticwaterbottles.

Environmental management system and eco-compatible productsFlorimUSA’s products help buildersmeet the requirements for sustainable buildings defined by theUnitedStatesGreenBuildingCouncil(USGBC)throughtheLEEDGreenBuildingRatingSystem.Thisprotocol evaluates andcertifies the environmental sustainability of abuildingas a unit, from itsdesigntoitsdaytodaymanagement.Morespecifically,manyoftheFlorimUSA’sproductlinescontainasignificantpercentageofrecycledmaterial(40%ormore).ThisfeaturecontributestoanincreaseintheLEEDscoreintheprojectswherethesetilesareused.In2014FlorimUSA,alongwithotherNorthAmericantilemanufacturersandtheTileCouncilofNorthAmerica,developedatypeIIIEnvironmentalProductDeclarationcertifiedundertheISO14025standard.ThislifecycleanalysisforceramictilealsoqualifiesFlorimUSA’sproductsforLEEDpointsunderthenewLEEDv4protocol.


Environmental performance indicators – summaryBelowarethemainenvironmentalindicatorsrelatedtotheimpactandperformanceofFlorimUSAduring2014

Material recycling

Pre-consumer

TherecycledmaterialprocessallowsFlorimUSAtominimizeenvironmentalimpactbyreusingupto45%ofmaterialthatwouldotherwisebewastedorendupinlandfills.

• Cardboardrecycling:approximately121tonsofdiscardedcardboardwasrecycled.

• Palletrecycling:17trucksloadsofdiscardedpalletswererecycled.

Post-consumer

Recyclingmaterial“CradletoCradle”isaprocessusedtorecycleallwastematerialcollectedthroughoutMontgomeryCounty.In 2014 FlorimUSA used approximately 178 tons of recycled glass during themanufacturing of itsproducts.Abalerwasinstalledduring2014whichenablesthewarehouseandfactorytorecycleshrinkwrapplasticandplasticcontainers.

Disposal and reuse of water

Waterusedduringtheproductionprocessisrecycledcontinuallytominimizeenvironmentalimpact.Waterdrawnfromthemunicipalwaternetwork:

2010 2011 2012 2013 2014Water comsumed(Gallons) 17,916,000 15,194,000 18,143,000 18,754,000 21,617,500

Energy consumption

2010 2011 2012 2013 2014Gas (cubic feet) 638,436,900 677,725,000 783,909,800 837,199,500 922,260,500

Electricity (KwH) 42,134,400 41,280,624 42,870,584 44,942,151 49,880,784

Emissions

Emissionfiguresareconsistentwith2012and2013stayingwellbelowtheprescribedstandard:

TSP (Total Suspended Particulates) – 95 tons per year

SO2 (Sulphur dioxide) – 106 tons per year

VOC (Volatile Organic Compounds) – 80 tons per year

NOX (Nitrogen oxide) – 97 tons/year



EmployeesTheFlorimUSAworkforceisrepresentedby313activeemployeesattheproductionsiteandtheOutletStore inClarksville, and the logistical hub in Atlanta. Of the 313 active employees, 244 are factoryworkersand69areemployees,21ofwichareItalianNationalsworkingintheUnitedStates.

FlorimUSAoffersanumberofbenefitstofulltimeemployees:• HealthandDentalinsurance• Visioninsurance• Lifeinsuranceforemployeesandoptionallyforfamilies• Supportfortemporaryandpermanentdisabilities• Employeeretirementplan

Equal opportunity

Florim USA provides equal opportunity in all employment practices to all qualified employees andapplicantsregardlesstherace,color,religion,gender,nationalorigin,age,disability,militaryoranyothercategoryprotectedbyfederal,stateorlocallaws.

Health and safety

FlorimUSAhas appointed an internal safety supervisor and established a committee for health andsafety.Thisresultedinthereductionofinjuriestolessthanhalfthenumberfrom2012.ThemoneysavedoninsurancecostswasreinvestedintheFactory’ssafetymeasuresandonadditionalsafetytraining.

Injuties 2010 2011 2012 2013 2014

OccupationalAccidents 51 31 50 41 22

TheEmployeeAssistanceProgram(EAP)alsoofferssupporttoemployeesandtheirfamiliesintheeventofpsychologicaldifficulty,orotherproblemsthatcanhaveanegativeimpactontheirqualityoflife.FlorimUSAfullysupportsthecostsoftheprogram.

Training

AllFlorimUSAemployeesontheaverageareinvolvedin24hoursoftraining.Thecoursesplannedfor2014involveanumberofareasincluding:

• traininginusethenewtechnologiesappliedonthemachinesinthefactory• forkliftsafetyandproperforkliftdrivingtraining• safetyTrainingtoincludingbutnotlimitedto:

- confinedSpaces- lockout/Tagout- safeLifting

Allnewhiresgothroughspecificper-departmentandgeneralsafetytraining.Florim USA offered its employees a tuition assistance plan whereby the company pays the cost ofpost-highschooleducation.TheeducationandtrainingprogramfortheplantstaffalsoincludesseveralstagesoftraininginFlorimCeramiches.p.ainItaly,wheretheyhavethechancetodeveloptheirskillswiththenewtechnologiesthere installed.Throughout2015,FloirmUSAwill continue toprovidea freee-learningcourseon itswebsiteforarchitects,engineersandcontractors(AEC)toimprovetheirknowledgeofsustainablegresporcelaintiles.


Florim stand at Coverings 2014 – Overall Best in Show award 2014 Employee of the Year Award presented to John Kimbrough

Territory

Through2014,FlorimUSAhascontinuedtoprovideitssupporttoanumberofinitiativesinitslocalarea.

Someofthemaininitiativesinclude:

• ThreescholarshipsawardedtostudentsofChemistry,ITandCommerceatAustinPeayStateUniversity(APSU)inClarksville,inmemoryofGiovanniLucchese

• FlorimUSAstaffparticipationintheMontgomeryCountyGreenCertificationProgramaimedtohelpcompanieslearnandimplementbestpracticesinregardstosafeguardingtheenvironmentandenvironmentalresourcesprotection.

Several donations:

• DonationtoAPSU,onbehalfofemployees,ofgentlyusedbooksforchildrenandyoungpeople

• Donation to Community Cares, the national organization which promotes acceptance andinclusionofpeoplewithDownSyndrome

• Donation to the Aspire Clarksville Foundation, an organization which supports the ongoingimprovementoftheeconomyandsocialconditionsoftheClarksvillecommunity

• DonationtotheAlzheimer’sAssociation,avoluntarynon-profitorganizationwhoseobjectivesaretocure,supportandcarryoutresearchinthefieldofAlzheimer’sdisease.

Community Outreach:

• ParticipationintheUnitedWayDriveinitiative,tosupport localnon-profitorganizationswhichprovideeconomicassistanceandpsychologicalsupporttopersonsindifficulty

• SupportforthecollectionoffoodfortheSalvationArmy

• ContributiontotheAmericanLungAssociation

• ContributiontoCheerforaCure,anorganizationwhichsupportsfamilieswhosemembersareillwithcancer.


Florim USA (Clarksville, Tennessee)

FlorimUSAworksunderaQualitySystemcertifiedtoUNIENISO9001standards.Belowaresomeofthefiguresinbrief:

OBJECTIVE INDICATOR 2010 2011 2012 2013 2014

Refiningthecontroloftheproductionprocess

Firstgradeyield(%) 93.5 94.1 93.2 91.7 94.0

Qualityindex(%) 85.4 86.6 88.3 85.7 89.3

Scrap(%) 8.0 7.0 5.6 6.5 4.8

LegendaFirst grade yieldRatiobetweenthesquaremetersoffirstqualityproductsandthetotalsquaremetersloadedinstock.Quality indexRatiobetweenthesquaremetersoffirstqualityloadedinstockandpressedsquaremeters.Quality indexRatiobetweensquaremeterspressedandsquaremetersofproductactuallyloadedinstock.

Florim USA and trade shows

FlorimUSAstartedsupportingtheNationalTileContractorAssociation’s(NTCA)Five-StarContractorsin2014.

TheNTCAisanonprofittradeassociationdedicatedtotheprofessionalinstallationofceramictileandnaturalstone,widelyrecognizedasthelargestandmostrespectedtilecontractor’sassociationintheworld.

Florim USA and trade shows

FlorimUSAparticipatedinseveralshowsin2014(Coverings,HDexpo,Neocon,ASLA).AtCoverings2014,Florimwasawardedforitsuniqueboothdesign,invitingatmosphereandspectacularnewproductoffering.FlorimUSAalsoexhibiteditsproductsrangeatNEOCONfrom9thto11thJune.TheparticipationofFLORIMUSAhighlights theobjectiveof thecompany to increasebusinessand relationshipswithdesigners.Thefairisinfact,NorthAmerica’slargestdesignexhibitionandconferenceforcommercialinteriors,annuallyattendedbyover40,000architectureanddesignprofessionals.

Quality system

Other activities


Applicationlevelsreport C C+ B B+ A A+

Stand

ardinform

ation

InformationontheG3Profile

OUTP

UT Inclusion of:

1.12.1 - 2.103.1 - 3.8, 3.10 - 3.124.1 - 4.4, 4.14 - 4.15

Externallyverified

balancesheet Inclusion of all criteria

listed for Level C plus:1.23.9, 3.134.5 - 4.13, 4.16 - 4.17

Externallyverified

balancesheet Same requirements as

those for Level B

Externallyverified

balancesheet

InformationontheG3

managementprocedures O

UTP

UT Not required

Information on the management procedure for each indicator category

Information on the management procedure for each indicator category

G3Performance

IndicatorsandSupplementaryFieldAdditions

OUTP

UT Inclusion of at least 10

performance indicators, including at least one indicator for each of the following categories:social, economic and environmental

Inclusion of at least 20 performance indicators, including at least one indicator for each of the following categories: economic, environmental, human rights, work, society, product responsibility.

Inclusion of every G3 Core indicator and every supplementary field indicator considering the materiality criterion, and including the indicator or explaining the reason for its omission.

GRIindicators Page

1.StrategyandAnalysis

1.1Statementfromthemostseniordecision-makeroftheorganization 7

2.OrganizationProfile

2.1Nameoftheorganization

2.2Majorbrands,productsand/orservices

2.3Operationalstructureoftheorganization

2.4Locationoforganization’sheadquarters

2.5NumberandnameofCountrieswheretheorganizationoperates

2.6Natureofownershipandlegalform

2.7Marketsserved

2.8Scaleoftheorganization

2.9Significantchangesregardingsize,structureorownership

2.10Awards/prizesreceivedduringthereportingperiod

4

11

11

11

11

16

11

10,18

10,16

12

3.Reportingparameters

3.1Reportingperiodforinformationprovided

3.2Dateofissueofsustainabilityreport

3.3Reportingcycle

3.4Contactsandusefuladdressesforrequestinginformation

3.5Processfordeterminingthereportcontents

3.6Boundaryofthereport

3.8Informationonjointventures,subsidiaries,leasedfacilities,outsourcedorotheroperations

3.9Datameasurementtechniquesandthebasesofcalculations

3.10Explanationoftheeffectsofanymodificationintheinformationenteredinthepreviousreports

3.11Significantchangesinthegoal,boundaryormeasurementmethodsappliedinthereport

3.12Tableidentifyingthereportcontents

8

4

8

48

8

8

8

8

8

8

46

GRI International Sustainability IndicatorsThe information below illustrates the correspondence between the Florim 2014 annual report (Italian section) and the international GRI guidelines, referring to the section of this document where it is possible to obtain more information on the topic.


GRIindicators Page

4.Governance,commitments,stakeholderinvolvement

4.1Governancestructureoftheorganization

4.2Indicatewhetherthechairofthehighestgovernancebodyisalsoanexecutiveofficer

4.3Fororganizationsthathaveaunitaryboardstructure,statethenumberofmembersthatareindependentand/ornon-executive

4.4Mechanismsforshareholdersandemployeestoproviderecommendationsordirectiontothehighestgovernancebody

4.14Listofstakeholdergroupsengagedbytheorganization

4.15Basisforidentificationandselectionofkeystakeholders

16

16

16

15

17

17

Economicperformanceindicators

EC1Directeconomicvaluegeneratedanddistributed 18-21

Environmentalperformanceindicators

EN2Percentageofmaterialsusedwhichderivefromrecycledmaterials

EN3Directenergyconsumptionbyprimaryenergysource

EN4Indirectenergyconsumptionbyprimarysource

EN5Energysavedduetoconservationandefficiencyimprovements

EN6Initiativestoprovideenergy-efficientorrenewableenergy-basedproductsandservices

EN7Initiativestoreduceindirectenergyconsumptionandthereductionlevelsachieved

EN8Totalwaterwithdrawalbysource

EN10Percentageandvolumeofwaterrecycledandreused

EN16Totaldirectandindirectgreenhousegasemissionsbyweight

EN17Otherindirectgreenhousegasemissions

EN18Initiativestoreducegreenhousegasemissionsandrelevantresults

EN20NOx,SOxandotheremissionsintotheair

EN21Totalwaterdischargebyqualityanddestination

EN22Totalweightofwastebytypeanddisposalmethod

EN23Totalnumberandvolumeofsignificantspills

EN26Initiativestomitigateenvironmentalimpactsofproducts

18,25

18,26

18,27

26

23,33

23,25,26

25

18,25

27

27

23,27

23,27

25

25

25

24,25

Socialperformanceindicators

LA1Totalworkforcebyemploymenttype

LA7Ratesofaccidentsatwork

LA8Education,training,counseling,preventionandrisk-controlprograms

LA10Averagenumberoftraininghoursperyearperemployee

LA13Compositionofthecompany’sgovernancebodiesandworkforcebygender,ageetc.

29

18

30

30

16,29


Your assessment

WekindlyaskforfewminutesofyourtimetogiveusyourassessmentandpossiblesuggestionssoastoimprovethefutureeditionsofourSustainabilityReport.Thisyeartheformscanbefilledindirectlyonline(savingpaperandtime)byfollowingthislink:

http://www.florim.it/en/evaluation-sustainability-report/

Formoreinformationthecommunicationdepartmentavailableat:[email protected]

Florim headquarter (Fiorano Modenese – MO)

Architectural meeting Florim4architecure - (May 2014)

FIFA World Cup for employees and families - (June-July 2014)

Presentation of Modena Volley Team - (October 2014)

XVII Regional Cardiology Congress – (November 2014)

Meeting about health, food and nutrition - (December 2014)

100% Christmas Party - Christmas party for Florim employees - (December 2014)

Florim Ceramiche s.p.aViaCanaletto,24-41042FioranoModenese(MO)Tel.+390536840111www.florim.it/en

sustainability and social responsibility 2014€¦ · the sincere and great participation in the...

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