El.En. Group
Sustainability Report 2022
Consolidated non financial statement 2022
pursuant to Italian Legislative Decree n. 254 of 2016

Consolidated Non-Financial Statement 2022

INDEX
LETTER TO OUR STAKEHOLDERS

8

HIGHLIGHTS 2022

12

1. SUSTAINABILITY

15

OUR STRATEGY FOR A SUSTAINABLE FUTURE
1.1 Sustainability for the El.En Group.

16

1.2 Our stakeholders

17

1.3 Materiality analysis

24

1.4 The sustainability plan30

2. THE GROUPA HISTORY OF CONCRETE AND SHARED VALUES

46

2.1 Our global presence54

2.2 Our history56

2.3 Our markets

60

2.4 income tax

62

2.5 The economic value generated and distributed to ourstakeholders

64

3. THE ORGANIZATIONAL SET-UP66

RESPONSIBLE BUSINESS MANAGEMENT
3.1 The Corporate Governance Model

68

3.2 Ethics, integrity and compliance74

3.3 Internal controls system and risk management78

4. THE MANUFACTURING PROCESSFROM THE ORIGINAL IDEA TO THE FINISHED PRODUCT

88

4.1 Research and Development as an instrument for innovation

90

4.2 Quality and safety of our products

99

4.3 Regulatory activity

104

4.4 The supply chain

107

4.5 Our customers

1125Consolidated Non-Financial Statement 2022

INDEX
5. OUR BUSINESS

118

THE LASER AS A SUSTAINABLE INSTRUMENT
5.1 Uses and benefits of lasers in the medical sector

120

5.2 Uses and benefits of lasers in the industrial sector

123

5.3 Use of lasers in the conservation of the world's artistic
heritage

125

5.4 Our support to the community

126

6. THE PEOPLE

134

PASSION AND TALENT TO GROW TOGETHER
6.1 Training and skills development

142

6.2 Health and safety in the workplace145

6.3 The welfare of the people

148

7. ENVIRONMENTAL RESPONSIBILITYCOMMITMENT AND RESPECT FOR OUR PLANET

152

7.1 Energy consumption

154

7.2 Self-produced energy

155

7.3 Waste

157

7.4 Emissions

160

7.5 Water consumption

162

APPENDIX

164

8. European Taxonomy

166

9. About our report

170

10. Performance indicators

174

11. GRI Content Index

184

AUDITOR'S REPORT

189

6

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

LETTER TO STAKEHOLDERS
Dear stakeholders,
In a historically and economically very difficult period, in which general economic
conditions, inflationary pressures and rising interest rates give rise to fears of an economic
slowdown, we would like to express our great satisfaction with the Group's excellent resultsin 2022, its best ever. We are presenting here our Sustainability Report to give everyone theopportunity to assess our commitment, goals and actions taken during the year, which
testify to the solidity of our technical, financial and operational structures. These structures
allow us to resolutely withstand adverse conditions without sacrificing future growthpotential, and enable us to maintain our development plans thanks to the solidity of ourbusiness model, which is oriented towards sustainable medium- to long-term growth.
During the past year, demand remained solid in most markets, especially in the medical
sector, with a robust order book throughout the period. In China, the hoped-for recovery of
the local economy, which underpins the 2022 growth forecast for the laser cutting industry,has been hampered by continuing anti-Covid restrictions, Chinese isolation and the effectsof the economic slowdown, from which our major business unit has suffered. In addition,
supply chain difficulties for the procurement of numerous categories of components forall subsidiaries continued this year, subjecting us to an extraordinary commitment in termsof human resources to identify alternative solutions, with the R&D departments involved inboth sourcing and redesigning. For some components, the situation has not yet normalised
and our procurement functions often have to resort to emergency procedures to procurecomponents that traditional supply chains cannot make available.
The Group once again demonstrated that it has the organisational and technical means
to meet customer needs and to innovate its products. We are confident in the capacityand potential of our organisation and our people, and we are certain that we will continue
to benefit in the future from the positive developments expected in the markets in which we
operate: we have created the prerequisites for progressive, sustainable and far-reaching
growth, and we have the right organisation and the necessary technology to meet thedemands of the market and to seize the opportunities that arise.
The core of our strategy remains our constant commitment to research and development,
which is the very essence of our Group: a commitment both from a technical point of view,
aimed at launching new products, and from a documental and clinical point of view, inorder to obtain the necessary certifications to sell our medical systems worldwide. We
have been working constantly, on the one hand on clinical trials with medical centres
and hospitals and on the other hand with facilities dedicated to the so-called Regulatory,
a rather complex but indispensable process to launch our innovative systems on themarket. The difficult context has not affected our ability to innovate and the attractivenessof our product range, which we have continued to expand, thus confirming the Group's
solid competitive positioning and its great ability to differentiate itself in the markets withtechnical and application innovations. The launch of new products is one of the strengthsof our strategy.

8

The record levels of production and turnover have been achieved thanks to the significant
investments in infrastructure made by the Group in recent years, which we havecontinued in 2022 with the expansion of several operating sites: the Quanta System site
in Samarate, work at the Calenzano site and the Lasit site in Torre Annunziata, while at the
Chinese subsidiary in Wuhan a new plant is being built in anticipation of positive market
development. The interventions were also carried out ensuring high energy efficiency anddesigned to raise the quality of working life. We are convinced that working in a custombuilt environment fosters a greater spirit of belonging, which is why we have decided
to devote ample space to people's wellbeing, to accompany the training and career
path with an investment that leads to the creation of an energetic and fulfilling working
environment that stimulates teamwork.
In the plant of the parent company El.En., the logistics area was reorganised to optimise
space and facilitate the flow of goods, and three new vertical warehouses were installed,interconnected to the company's management system and MES: these interventions arepart of the planning started in 2020 of the plant with a view to Industry 4.0, which aims toinclude “smart” technologies within the production processes to advance the evolution of
the “Smart Factory”. In addition, the fleet of radio frequency terminals within the company
was replaced with new Wi-Fi terminals in 2022, pursuing the primary goal of facilitating theflow, integration and exchange of information in real time on an IT level, as well as reducing
the use of paper. In the course of 2023, we have planned further Industry 4.0 investments
for electrical safety test stations, with new, faster and better measuring instruments, which
will bring benefits in terms of time reduction and compatibility between instruments on
the production lines. Increasingly, the technological mix of robotics, sensors and network
interconnections will change the management of the company and production models,
and the factory will lose its concept of immobility and physicality thanks to the sharingof data even remotely, exploiting the opportunities of big data and the Internet of things.
We want this transformation to be a tangible reality for the El.En. Group and to continue inthe coming years within all production facilities, in which we will continue to invest for the
future development of the Group.
This year we continued to create employment, increasing the number of people working
with us around the world by 11 per cent: an important growth not only in terms of numbers,
but also sending out a clear signal of solidity and security. During the year, we did not stopin terms of training either: we increased the number of hours of technical and educational
training, to promote the personal and professional growth of all employees, and continued
to promote the dissemination and consolidation of the Group's ethics and values in all
subsidiaries.
As envisaged in the Sustainability Plan, during this financial year the installation of three
additional photovoltaic plants was completed: one at the Calenzano production site, one

9Consolidated Non-Financial Statement 2022

at the subsidiary Quanta System, and one at the subsidiary Giovanni Galli, and the fourth
plant at the Calenzano site is nearing completion: they are all scheduled to be activated in
2023. The Group's goal in the coming years will be to install further photovoltaic systems atother locations, in order to self-produce an increasing amount of electricity from renewablesources and to contribute more and more to its own energy needs, while decreasing its
CO2 emissions into the atmosphere.
Our commitment to doing business has also continued to be expressed through initiatives
in favour of the community: every day we work to make a positive impact in people's lives
and, with some targeted projects, we donate our skills and tools to non-profit organisations,foundations or cutting-edge scientific laboratories, at the service of patient health as wellas in the preservation and restoration of cultural heritage. The Group's companies arealso very attached to the territories in which they operate and, as always, are committed
to participating in solidarity initiatives and supporting cultural, social and educational
initiatives with sponsorships, participation in associations and the promotion of alternating
school-work projects, internships and apprenticeship.
During the year, the Group intensified its sustainability activities, which are also includedin the performance indicators for Management compensation. The 2018-2022 Multi-Year
Sustainability Plan has been successfully completed, and during 2023 the El.En. Group willapprove the new Five-Year Plan, which will identify specific and measurable sustainability
activities and goals, in particular on: combating climate change, circular economy,
promoting a responsible supply chain, valuing people and contributing to the community.

I am proud to say that despite the complex scenario in which we find ourselves operating,the results we have achieved once again confirm our ability to continue along the pathof sustainable development, combining economic growth and financial solidity with theprinciples of social and environmental sustainability, to represent a model of excellence.
The President
Gabriele Clementi

10Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

HIGHLIGHTS 2022

HIGHLIGHTS 2022

SUSTAINABILITY

THE SUPPLY CHAIN

18

1
Sustainability Plan
2018-2022 concluded
successfully

Targets approved by
the Board of Directors

43
Activities to be undertaken
in order to reach thetargetsreported

529
Million Euros
Purchase value

THE GROUP

9

THE COMMUNITY

13

Countries where theoperations of theGroup are locatedProduction sites

8
Research anddevelopment centers

722
Million Euros the economic
value generated anddistributed from El.En. GroupTHE ORGANIZZATION OF THE COMPANY

547
The number of people
who were trained on the
Ethics Code in 2022

6

43%
The percentage ofwomen in the Boardof Directors

Number of meetings theCommittee for Controls and Risks,
related party-transactions andsustainabilityheld in 2022

Active patents
and 55 pending

182
People involved in researchand development activities

12

98%
Local managers, i.e. managers
that were born in the country inwhich the El.En. Group operates

2
laser systems donated

THE PEOPLE

11%
Increase instaff in 2022

THE PRODUCTION PROCESS

287

A checklist for evaluating suppliers wich
includes ESG subjects has been
implemented in each subsidiaries

More than

39.500hours of training
conducted in 2022

25%
Under 30

L'AMBIENTE

69
People involved in Quality control
and Regulatory activities

6%6
photovoltaic plant of which
2 active, 3 installed and1 waiting for final installation,that will work during 2023

Self-produced electrical energy
produced with respect to theenergy needs of 2022

13

13%
Electrical energy
purchased fromrenewable sources

SUSTAINABILITYOUR STRATEGY FOR A
SUSTAINABLE FUTURE

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

1.2 OUR STAKEHOLDERS

1. SUSTAINABILITY
1.1 SUSTAINABILITY FOR THE EL.EN. GROUP
Being sustainable means creating value over time and being readyto accept and successfully face the challenges of tomorrow. We havealways believed that ethics, valuing human resources, protecting theenvironment, investing in research and development and the high qualityof our products, as well as safeguarding the interests and creating value
for all our stakeholders, are the only way to be an innovative, sustainable
and successful company.
The principles of sustainability for the El.En. Group arepolicies and goals and the supervision of the related

not an abstract concept, but have always been thePlan; in 2021, this body changed its name to Control

pillars underpinning the development and growthand Risk, Related Party Transactions and Sustainability

that has characterised the Group over the years andCommittee. Also in 2021, the desire to operate in aare proof that value is created through responsible

more responsible and integrated manner led to the

management that respects economic, social anddecision to entrust the Executive Director in charge

environmental balances.

of the internal control system with the definition of the

The Group embarked on this path in a structured

strategic sustainability guidelines, the Sustainability

The process of listening to one's stakeholders is a priority in order tounderstand the extent to which their interests and expectations are being
met and to identify issues on which to increase one's efforts, with a viewto continually improving the impact of the company's activities on theenvironment and society.

Human
Resources
Universities andresearch centers

Agents anddistributors

Clients andconsumers

OUR
STAKEHOLDERS

Istitutions
and regulatory
bodiesPlan and the review of the Consolidated Non-manner a few years ago, but in a short time it has

Financial Statement, in order to even more strongly

gained awareness and managed to define theguarantee an adequate oversight and monitoring

activities to be carried out in a timely manner: thisSuppliers

Shareholders
and investorsof processes. From the outset, there is a Sustainability

is because the issues addressed and the aspects

Manager who plays a coordinating role in the entire

reported on were already part of its cultural baggage

process of defining preliminary activities, preparing

and the drafting of this document is proof that in

Local Communities

the Sustainability Report and carrying out related

addition to economic results,the Group's performance

proposes

We have implemented a process of mapping and(For further details, see paragraph 4.4 - The Supply

the Group-wide sustainability strategy by sharing

identifying our stakeholders, which has enabledchain, of this document).

it with the Executive Director in charge of Internal

the identification of the Group's stakeholders, bothinternal and external, summarised in the chart above.

The process of listening to customers and distributors

Control and then with the Top Management andsets the Sustainability Plan, defining its goals andAlso during this financial year, in order to collectsurveyscoordinating all activities to fulfil the commitments,

and assess the expectations and issues of greatest

indicators, administering

identifying areas and projects for improvement atinterest to stakeholders, we carried out specificto the surveys carried out rather than through theGroup level and monitoring the progress of existing

stakeholder engagement activities by submitting

analysis of deficiencies. The measurement of the

projects.The function supports the function managers

questionnaires to a selected sample of internalcustomer experience is done through feedback

identified in each subsidiary in the compilation of

stakeholders (employees of some Group companies)

obtained during dialogues with customers in which

the data collection forms, verifies the consistency ofand external stakeholders (main suppliers of some

opinions, comments, expressions of interest in a

the information and prepares the draft Sustainability

subsidiaries). In 2022, we started an initial ESG

product or service, or in interactions with both internal

Report by drawing up the outlines to be published,monitoring of the supply chain: the project, carriedand external sales representatives are collected. As

In 2018, the Board of Directors of the parent company

writing and/or updating the texts of this document

out by the parent company El.En. and some ofof this financial year, the Parent company and some

El.En. S.p.A. entrusted the Control and Risk Committee

and coordinating and managing relations with theits main subsidiaries, involved new suppliers andsubsidiaries have included questions on sustainability

with the review of the company's sustainability

external auditors.

suppliers of critical components by administering

issues in the Customer Satisfaction process, thea questionnaire to assess their social commitment,

results of which will be analysed in 2023. (For further

environmental protection and enhancement, gooddetails, see paragraph 4.5 - Our Customers, of thiscorporate governance and respect for human rights

document).

activities. The

has always been excellent on environmental, socialand governance issues
This financial year confirmed the Group's commitment
to ESG issues: the concrete goals we had set ourselvesin the Sustainability Plan were achieved and the Fiveyear plan was completed1.
During this past year, we continued our initiatives toincrease awareness of the impact and importance ofsustainability issues, both through the dissemination
to key stakeholders of the documents drawn up andthrough the disclosure of the Plan's goals and theactions to be taken to achieve them.

Sustainability

Manager

All goals have been completed with the exception of one point within GOAL 6 “Promoting a sustainable procurement culture and policies”,
which envisaged the drafting of a Group-wide “Supplier Code of Conduct”; this action will be repeated in the next Sustainability Plan. The
reasons for the non-achievement were mainly due to the procurement difficulties that kept the purchase departments of all subsidiaries, themain owners involved in this action, very busy.

116

took place mainly through Customer Satisfaction

17

bymonitoring

appropriatecompany

questionnaires

relating

Consolidated Non-Financial Statement 2022

In order to intensify the process of listening tothrough the publication on the company website ofregulated information, with the publication of press
releases and documents, through the Shareholders'Meeting, in direct contact between the Company
and investors through the organisation of events,
roadshows, meetings (one-to-one or collective)
and conference calls with institutional investors,
shareholders and financial analysts rather than
through presentations of the main performance
drivers and the main messages conveyed to themarket and the financial community (for more details
see "Policy of dialogue with shareholders of El.En.S.p.A.
at https://elengroup.com/uploads/pdfshareholder/
POLITICA-DI-DIALOGO-DI-EL.EN.-.S.P.A..pdf).

employees and to collect anonymous suggestions,
opinions and evaluations on the corporate climate,some Group subsidiaries carried out surveys onpart or all of the company population. During thecoming year, this activity will also be offered toother subsidiaries. El.En. has also completed thedevelopment phase of a platform for the creation
and administration of questionnaires, in order tofurther increase the process of listening to employees
also with regard to sustainability issues (For further
details see Chapter 6 - People, of this document).
During the year, numerous initiatives were carried out
to increase the process of listening to communities

Establishing and maintaining partnerships with
universities and research centres is crucial tomaintaining a constant dialogue with these bodies,both nationally and internationally. All Group
companies consider these exchanges to be crucial
both in research and development and for their own
success in the talent search and selection process.

and local authorities, both through participation in
events promoted by these institutions where we spoke
about our current projects and the main sustainability
initiatives carried out in the area, and by responding
positively to requests for discussion and collaboration
to develop concrete sustainability activities together
with the territory. The dialogue with local communities

shareholders and investors, obtained sustainability

Maintaining these channels is essential to increase
opportunities to get to know people and to promote
the development of technical and scientific skills in
the areas where companies and societies operate,
including through curricular and extracurricular
university internships. (For further discussion see
paragraph 4.1 Research and Development as a toolfor Innovation and paragraph 5.4 - Our contribution
to the community, of this document).

ratings2 from leading independent agencies. The

Below are our main channels of communication andpolicy of dialogue with shareholders is ensured

dialogue with the Group's stakeholders:is also expressed through the numerous school-towork projects promoted and through participationin career day events (For further discussion see
paragraph 5.4 - Our contribution to the community,of this document).
Again this year, we received important nationalsustainability

awardsand, attherequestConsolidated Non-Financial Statement 2022

of2
In 2022, the El.En. Group maintained its BBB score for the MSCI ESG rating (improving performance in both the Governance and Social
sections), a score of 23.8 for the Sustainalytics ESG Risk rating Report (an improvement on the 2021 score of 28.8), placing it in the medium risk
range, and 58/100 for the Gaia Research 2022 campaign (Gaia revised its calculation methodology, restating the results obtained in previous
years. The result for the year is a marked improvement on the previous year's score).

18

19

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

Human Resources

Local Communities

Topic

Topic

Growth and training

Health and safety in the workplace

Human rights and working conditions

Quality of work

Diversity, equal opportunity and non-discrimination

Identity and values

Indirect social impact

Respect of the territory

Ethics, integrity and compliance

Support of employment

Legality

Industrial relations

Main dialogue instruments
Internet portal

Main dialogue instruments
Company website

Training and refresher courses

Communications from top management

Company mailing list

Collective bargaining

Questionnaires materiality analisys

Support of social initiatives

Local meetings and events

Press releases

Collaboration and support of the artistic and cultural heritage in sites of public interest
National and regional research projects

Universities and Research Centers
Topic
Research, development and innovation

Suppliers

Trasparency

Main dialogue instruments
Financial reports

Scientific publications

Experimentation and research projects

Tenders and competition
Communications from top management

Topic
Trasparency

Ethic responsibility

Continuity of business relations

Human rights and working conditions
Negotiating conditions

Development of partnerships

Qualification and evaluation

Main dialogue instruments

Clients (B2B)

Company website

Participation in initiatives and events

Technical qualification meetings

Topic
Product quality and safety

Periodical auditing

Negotiating relations

Questionnaires materiality analisys

Anticipation and acknowledgement of the expectations of the clients

Trust and satisfaction of the clients

Main dialogue instruments
Company website

Evaluation of client satisfaction

Management of complaints

After-sales service

Shareholders and investors

Advertising

Topic
Corporate GovernanceConsumers (B2C)

Trasparency

Economic and financial performance

Ethics, integrity and compliance

Main dialogue instruments

Topic
Trust and satisfaction of the consumers

Product quality and safety

Company web site

Financial reports

Dissemination of regulatory information

Shareholders' meetings
Investor conference

Press releases

Main dialogue instruments
Company website

Management of complaints

After-sales service

Advertising

Institutions and regulatory bodies

Agents and Distributors

Topic

Topic

Corporate GovernanceTrasparency

Economic and financial performance

Legality

Trasparency

Indirect social impact

Continuity of relations

Negotiating conditions

Human rights and working conditions
Development of partnerships

Main dialogue instruments

Main dialogue instruments
Company website

Ethics, integrity and compliance

Disclosures required

Dissemination of regulatory information
20

Financial reports
Investor conference

Shareholders meetings
Press releases

Company web site

Participation in initiatives and events

Negotiating conditions

Training and refresher courses

21

Consolidated Non-Financial Statement 2022

Our companies interact and communicate also with the various associations of which they are members
related to the sector to which they belong or the territory in which the companies of the Group operate. The
chart below shows these associations:

Consolidated Non-Financial Statement 2022

Companies
Penta Laser Equipment Wenzhou Co. Ltd;
Penta-Chutian Laser (Wuhan) Co. Ltd

Companies
El.En. S.p.A.; Deka Mela S.r.l.; Ot-las S.r.l.;
Esthelogue S.r.l.; ASA S.r.l.; Cutlite Penta S.r.l..
El.En. S.p.A.; Deka Mela S.r.l.;
Esthelogue S.r.l.; Pharmonia S.r.l..

Associations
Confindustria

IBC - Associazione Beni di Consumo

El.En.; Deka Mela

Confcommercio

Quanta System S.p.A.

CONFAPI

Cutlite Penta S.r.l.

ESU-EDA

Cutlite Penta S.r.l.

IADD - International Association of diecutting and diemaking

El.En. S.p.A.

Comitato elettronico italiano

El.En. S.p.A.

ISTA - International Safe Trans

El.En. S.p.A.

CEF – Consorzio Energia Firenze

El.En. S.p.A.

Assorestauro

El.En. S.p.A.

AIIA - Associazione italiana internal auditors

El.En. S.p.A.

ACSI - associazione per la cultura e lo sviluppo industriale

Ot-lasACIMIT

Esthelogue

Associations
Laser Industry Association

Penta Laser Equipment Wenzhou Co. Ltd

Laser Processing Committee of the Chinese Optical Society

Penta Laser Equipment Wenzhou Co. Ltd

Laser processing commitee of Zhejiang Machinery Industry Union

Penta Laser Equipment Wenzhou Co. Ltd

Wenzhou association of high-tech enterprises

Penta Laser Equipment Wenzhou Co. Ltd

Zhejiang association of high-tech enterprises

Penta Laser Equipment Wenzhou Co. Ltd

China Machine Tool Industry Association

Penta Laser Equipment Wenzhou Co. Ltd

Wenzhou packaging union

Penta Laser Equipment Wenzhou Co. Ltd

Intelligent manufacturing Branch of China Machinery Industry Union

Penta Laser Technology (Shangdong) Co. Ltd

National association of high-tech enterprices

With Us

Japan Esthetic Management Association

With Us

Japan Esthetic Industrial Association

With Us

Beauty Equipment Safety Promotion Association

With Us

Japan Home-Health Apparatus Industrial Association

FAPIB – Associazione Nazionale Produttori e Fornitori
di Tecnologie per la Bellezza e il Benessere

ASA

American Society of Laser

ASA

Consorzio Veneto Tech 4 life

ASA

CUOA – Centro Universitario di Organizzazione Aziendale

ASA

Confindustria Dispositivi Medici

Asclepion

German Chamber of Commerce and Industry

Asclepion

Optonet e V.

Cutlite do Brasil

ACIB - Industrial and Commercial Association of Blumenau

Cutlite do Brasil

ABIMAQ (National Association of Machine Industries)

22

23

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

1.3 MATERIALITY ANALYSIS
The material issues assessment process was carried

the impact generated by the company in ESG terms.

out for the first time in 2017 through an analysis

For impact assessment, we decided to adopt theperformed internally by top management, which
identified

therelevant

economic,socialsame methodology and criteria used by the Groupandfor risk rating assessment as part of the risk analysis

environmental aspects for the El.En. Group and its

process, which is based on specific RCM (risk control

stakeholders; the assessment was reviewed andmatrix), in line with international best practices suchapproved annually. In 2022, taking into account theas the COSO framework and Confindustria guidelines;

guidelines of the latest GRI international standards• We then associated each impact with its material

publications, the materiality process was revised

theme and thanks to the scoring it was possible tothrough an analysis of the impacts generated by the

GOVERNANCE

Material
theme
livel I

Ethics, integrity
andcomplianceImpact generated

Type ofactual/potential
impactType ofpositive(+)
negative(-)impact

The sub-optimal handling of disputes
and potential corruption events maylead to a lack of socio-economic
development in the communities inwhich the Group operates.

Potential

Negative

Type ofactual/potential
impactType ofpositive(+)
negative(-)impact

ActualThe Group's water consumption, which issolely related to the use of sanitary facilities
in buildings, may contribute only a smallpart to the reduction of the quantity ofavailable water resources.

Severity/
magnitudeof impact

Probabilityof impactoccurring

Impactmateriality
level

4

2

8

Severity/
magnitudeof impact

Probabilityof impactoccurring

Impactmateriality
level

Negative

4

5

20

ActualNegative

1

5

5

Failure to implement initiatives to mitigate
damage due to extreme weather
events could, if they occur, lead to thecurtailment or interruption of some of theGroup's and/or some strategic business
partners' activities due to infrastructuredamage. Such a reduction or interruption,
if protracted, could also have a negative
impact on employees, suppliers andcustomers.

Potential

Negative

4416Group activities and end-of-life products
generate waste that, if not properly
disposed of, can generate pollution.

ActualNegative2

5

10

Reference
SDG

define a relevance threshold for each theme: the resultorganisation and conducted in several stages:

obtained shows an alignment between the priority• Initially, we carried out an analysis of the context inthemes defined through the impact assessment andwhich the Group operates in order to identify boththose identified in previous years.

the actual and potential as well as the positive and

ENVIRONMENTAL RESPONSIBILITY

The analysis carried out by the El.En. Group thus

negative impacts generated by the organisation's
activities and its business relations on the economy,
the environment and people (including humanconfirmed the significant themes that had alreadybeen identified and divided into six macro-areas:
environmental responsibility, economic responsibility,

rights), along the entire value chain;

Material
theme
livel I

Impact generatedsocial responsibility, responsibility towards human• We then proceeded to assess the significance

Reference
SDG

resources, product responsibility and governance. Asof impacts according to two variables: severity orin previous years, the materiality analysis was broughtmagnitude of the impact generated and likelihood

The El.En. Group's activities cause energy
consumption and therefore contributeto CO2 emissions into the atmosphere.
If energy-saving and emission reduction
initiatives are not developed, the Group's
activities could increasingly contribute to
the effects of climate change on our planet.

to the attention and approval of the Audit, Risk andof the impact occurring. We assigned each variablea score from 1 to 5 (where 1 means minimum severity

Sustainability Committee.

and low probability that the impact will occur and 5

The result of the analysis, which we report below, willmeans maximum severity and very high probability

support the identification and definition of goals to beor certainty that the event will occur or has alreadyincluded in the Strategic Plan and the Sustainability

occurred). The product of the two variables yielded

Plan 2023 - 2027:

Environmental
performance24

25

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

HUMAN RESOURCE REPONSIBILITY

SOCIAL RESPONSIBILITY

Material theme
livel I

Impact generated

Type ofactual/potential
impact

Health andsafety ofworkers

Increased accident rate due to the lackof dissemination of health and safety
culture within the Group's companies
and failure to use the required PPE.

ActualThe Group's business activities involvethe creation of jobs along the entire
value chain, generating a positive
impact for the communities in which
it operates and contributing to theireconomic and social development.

ActualThe El.En. Group guarantees its
employees personal and professional
growth at all levels through continuous
training to respond to the technologicalprogress of the systems produced andthe evolution of the Group's business.

ActualEmployee
growth andtraining

The nature of El.En. Group's business
requires the presence in the companyof highly specialised professionals who
are always up-to-date on the latest
regulations. Failure to develop theskills of employees may have negative
consequences for the business, thehealth and safety of workers and thequality of its products. Furthermore,a lack of training and professional
development of workers could reduce
retention and the ability to attract new
talent.

Diversity', equal
opportunityand nondiscrimination

The geographical location of someGroup companies and the skills required
to perform certain types of work meanthat the company strives to create
an inclusive environment that values
employee diversity. Staff recruitment
and management procedures may
disadvantage certain categories ofpeople, generating a negative impact interms of inclusion and equal opportunities.

Type ofpositive(+)
negative(-)impact

Negative

Positive

Positive

Potential

Negative

ActualNegative

26

Reference
SDG

Severity/
magnitudeof impact

Probabilityof impactoccurring

Impactmateriality
level

5

5

25

4

5

5

4

5

5

3

5

Material theme
livel I

Impact generated

Type ofactual/potential
impactHuman rights
and working
conditions

The Group's activities involve a large
number of suppliers and operations
globally. Poor supply chain supervision
may lead to a lack of protection of thehuman rights of the workers concerned
along the value chain.

Potential

Contribution to the social and economic
development of the community throughthe management of relations with public
institutions, sponsorship of social andcultural events and through the donationof equipment and know-how.

20

25

15

20

Commitment tothe community
and territory

Type ofpositive(+)
negative(-)impact

Severity/
magnitudeof impact

Probabilityof impactoccurring

Impactmateriality
level

Negative

4

2

8

ActualPositive

4

5

20

Contribution to the social and economic
development of the community throughcollaborationwithscientificanduniversity research centres and withschools and technical institutes in thearea where Group companies operate.

ActualPositive

4

5

20

Indirect social impacts: in the medical
sector, our daily commitment toresearch and development of new or
improved applications of our medical
and aesthetic lasers provides themarket with tools and solutions that
improve people's state of well-being andpatients' quality of life, reducing both
physical and aesthetic health problems
and the relevant psychological ones.
In the surgery sector, our minimallyinvasive technology systems minimise
pain, side effects, surgical procedurerisks and hospitalisation days. In theaesthetics sector, our systems meet thegrowing desire of people to improvetheir appearance, while also reducing
pathological or painful imperfections.

ActualPositive

5

5

25

27

Reference
SDG

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

SOCIAL RESPONSIBILITY

Material theme
livel I

Commitment tothe community
and territory

Impact generated

in the industrial sector, work performed
with our laser systems is highly significant
in terms of reducing environmental
impact due to a series of features thatallow minimising waste, not generating
fumes containing chemical additives
and eliminating the use of glues, inks orsolvents within the production processes.
Machining performed with our cutting
systems instantly vaporise the materialon which they act, making clean cutsin the material without producing swarf
or other processing waste, while themarking systems allow for perforations or
selective removal of thickness, reducing
waste. We are proud to have contributedin this market to developing and finetuning more environmentally friendly
processes, aware that the entire industry
must become even more sustainable.

In the field of conservation for the
restoration of works of art, lasers enableeffective conservation processes that
respect artistic artefacts and reduce
the use of chemicals.

PRODUCT RESPONSIBILITY
Type ofpositive(+)
negative(-)impact

Type ofactual/potential
impactActualPositive

ActualPositive

Reference
SDG

Severity/
magnitudeof impact

55Probabilityof impactoccurring55Impactmateriality
level

Material theme
livel I

Impact generated

Type ofactual/potential
impactResearch,development
and innovation

Contribution to the scientific developmentof the community through constantresearch and development to placeinnovative, efficient and circular economyfriendly products on the market.

ActualCustomersatisfaction

Unclearandnon-transparent
communication on product information
providedtocustomers, including
sustainability information, may negatively
affect customer satisfaction and thequality of the service provided, leading
to a reduction in market share andconsequently in turnover

25

25

Type ofpositive(+)
negative(-)impact

Severity/
magnitudeof impact

Probabilityof impactoccurring

Impactmateriality
level

Positive5525Potential

Negative32

6

Decreased quality and safety of
products and services provided to themarket may generate negative impacts
on people and the environment

Potential

Negative

5

3

15

Lack of digitisation and process
innovation may result in negative
impacts on product traceability, quality
and safety

Potential

Negative

4420

Impact generated

Type ofactual/potential
impactType ofpositive(+)
negative(-)impact

Severity/
magnitudeof impact

Probabilityof impactoccurring

Impactmateriality
level

Increased environmental impacts
due to the failure of the supply
chain to adopt environmental
management policies and increasedsocial impacts due to the failure tomonitor the supply chain.

Potential

Negative

43

12Social and economic developmentof the territories in which Group
companies operate thanks to the
support of suppliers promoting
sustainable development principles,
preferably local or regional.

Potential

Positive

4

2

8

Reference
SDG

Product quality
and security

ECONOMIC RESPONSIBILITY

Material theme
livel I

Procurement
practices28

29

Reference
SDG

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

1.4 THE SUSTAINABILITY PLAN
The Sustainability Plan represents the Group's strategic vision on ESG
issues and is an indispensable tool for setting its goals and the actions
and projects to be implemented to achieve them.
as we have done in the past, the SDGs that we willcontribute to achieving through the Plan's goals.

The Sustainability Plan for the five-year period 20182022, with the explication of the policies aimed
at generating and distributing resources to all
stakeholders,

represents

theGroup's

The Sustainability Manager has already identified, incooperation with the heads of the subsidiaries, theareas for improvement and related projects to be
implemented; in the second half of 2023, the function
will formulate a proposal for the Sustainability Plan
(planning phase) containing specific goals andactions to be implemented. Thanks to the training,
involvement and networking activities carried out
in all Group companies over the past few years, thegoals of the Plan will be evaluated and shared withall subsidiaries.

strategic

vision in the medium to long term and the meansof communicating the goals and the actions to betaken to achieve them.
By combining the Sustainability Plan with thecompany's mission, the El.En. Group is able tomanage the response to the challenges posed by
the market, proposing sustainable and long-lastingdevelopment.
The five-year Sustainability Plan, in relation to the

The Sustainability Manager will submit the Plan to
the Control, Risk and Sustainability Committee, which
will examine its contents and feasibility and checkits consistency with the Group's strategy, and it willthen be presented to the Board of Directors, which is
responsible for its formal approval.

11 material issues identified and represented in
the materiality matrix published last year, set 18
sustainability goals and 43 concrete actions to betaken to achieve them.
Each of the goals was linked to a specific macroarea (Governance, Economic Responsibility, ProductResponsibility,

Responsibility

towards

An update on the progress of the Sustainability Plan
will take place at least every six months, in order tokeep the Board up-to-date on the status of project
implementation and achievements and to giveit the opportunity to set new goals with a view toimprovement, in the knowledge that sustainability is
not an end point but a process of continuous growth.

Human

Resources, Social Responsibility, Product Responsibility
and Environmental Responsibility) and the relatedmaterial issues of the area.
As of 31 December 2022, the existing Sustainability
Plan was fully completed3 and a new Sustainability
Plan will be proposed in 2023, which will be valid for

The Group's ongoing commitment is also reflected in
its improved ESG ratings from leading independentagencies. Sustainable and responsible development
can only be expressed through governancededicated to the supervision and managementof sustainability issues, through the growth andinvolvement of employees, through improving theworking environment, supporting technologicalinnovation, maintaining high levels of customer
satisfaction, dialoguing with and supporting local
communities and contributing to the reductionof environmental impacts. Below are the goals
contained in the plan and the results achieved inthese first five years:

the five-year period 2023-2027 and will include newgoals concerning the fight against climate change,
the circular economy, the promotion of a responsible
supply chain, valuing people and contributing
to the community, confirming the El.En. Group's
commitment to promoting sustainable development
and how environmental and social responsibility are
increasingly an integral part of its business model.
Also in the process of defining the future Sustainability
Plan, we will take into account the 17 Sustainable
Development Goals (SDGs), goals promoted by theUnited Nations and published in the 2030 Agenda
for Sustainable Development, and we will identify,

GOVERNANCE
1) Implementation of sustainability corporate governanceActions taken inprevious years• Entrusted the Executive Director in charge •of the internal control system with thedefinition of the strategic sustainability
guidelines, the Plan and the review of theconsolidated non-financial statement.
• Entrusted the Control and Risk Committeewith the review of the company's •sustainability policies and goals andthe supervision of the Sustainability Planand supplemented the Committee Rules
and Regulations with these functions
and changed the name to “Control
and Risk, Related Party Transactions andSustainability Committee”.

Results 2022

Maintainingall
initiatives
toensure the medium- to long-termsustainability of the company's
business for the benefit ofstakeholders and in compliancewith regulations.
Development of a new analysis
and reporting process to verify theapplicability of the Taxonomy toGroup activities.

• Carried out numerous initiatives toensure that the sustainability strategy ismaintained in the medium to long term
for the benefit of stakeholders and incompliance with regulations.
• Set up a plan to analyse the Group's
activities in order to comply with the
new reporting requirements introduced
by EU Regulation 852/2020 - Taxonomy
Regulation.

3
All goals have been completed with the exception of one point within GOAL 6 Promoting a sustainable procurement culture and policies,
which envisaged the drafting of a Group-wide Supplier Code of Conduct”; this action will be repeated in the next Sustainability Plan. The
reasons for the non-achievement were mainly due to the procurement difficulties that kept the purchase departments of all subsidiaries, themain owners involved in this action, very busy

30

31ProgressConsolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

3) Promotion of a culture of sustainability2) Dialogue with stakeholders
Actions taken inprevious years

Results 2022

• A questionnaire on sustainability •issueswasdistributed
andadministered to all employees;• Distributed and administered aquestionnaire on sustainability issues
to a sample of Group suppliers;•• Strengthened dialogue with certain
categories of stakeholders throughparticipation in events, meetings,
surveys and sustainability ratings;• Training on the Group Sustainability
Plan was carried out in most of thesubsidiaries.

••

Attended events promoted by local
institutions to discuss the mainsustainability issues and initiatives in
the area and meetings with local andnational authorities to promote thesharing of sustainability projects;

Actions taken inprevious years

Progress•

Results 2022

• Corporate working groups dedicatedto sustainability issues created;

Conducted training sessions on thegoals of the Sustainability Plan and theactions to be taken to achieve them;• Carried out training on social andenvironmental issues and company
policies;• Organised classroom or web-based
training meetings to raise employees'
awareness of sustainability issues;•

During the year, we worked towards
obtaining sustainability ratings fromleading independent agencies andincreased or equalled the scoresobtained in previous years. Achieved
a BBB score for the MSCI ESG rating, a23.8 score for the Sustainalytics ESG
Risk rating Report and a 58/100 score
for the Gaia Research 2022 campaign
rating;• Carried out campaigns to promotesustainability
issuesthroughthedissemination of news and documents;• Carried out campaigns to promotesustainability issues by disseminating •published documents to our employees,
suppliers and customers;• Drafted a Sustainability Report Summary
to make the main topics more userfriendly and distributed mainly to •employees and customers;

Carried out stakeholder engagement
for new suppliers of many subsidiaries;
Carriedout
newstakeholder
engagements and held meetings withother stakeholder categories.

• Gained important national recognition
and awards on sustainability issues.

•

Developed an extensive section
for sustainability issues at www.
elengroup.com. and implemented
the site review, which will becompleted in the second half of 2023;
Awarded the Conscious ESG identity
20224, label, granted to companies
that have embarked on a serious
path of ESG transformation andevolution of their business;
Received the “Sustainability Leaders2022"5, evento award, an event that
honoured the 150 most sustainable
Italian companies, promoted by
Statista in cooperation with Il Sole 24
Ore, to identify which companies in
Italy stand out for truly sustainabilityoriented choices;
Received the “Sustainability Awards
2022"6 recognising the 100 bestsustainable companies for theirability to deliver sustainable, inclusive
and stable growth, while also creating
added value for the community.

For more informations see the link https://www.esgbusiness.it/esg-identity-company_2022/
For more informations see the link https://lab24.ilsole24ore.com/leader-sostenibilita-2022/
6
For more informations see the link https://sustainabilityaward.it/forbes-pubblica-la-lista/

4

5

32

33

ProgressConsolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

4) Combating active and passive corruption
Actions taken inprevious years• An Anti-Corruption Policy was approved by
all Group companies;•

Used all instruments deemed appropriate toprevent corruption in all spheres of influence;• Delivered the Code of Ethics to all new
employees and training on the Group Codeof Ethics in most subsidiaries.
• Carried out specific training in recent years
entitled “Anti-Corruption, Code of Ethics andHuman Rights”.
• Carried out training on Model 231 in recent
years for employees of companies that haveadopted the Organisational Model.

Results 2022

• Review of the Anti-Corruption
Policy and approval in the Board of
Directors.
• Continuationof
trainingonModel 231 for employees ofcompanies that have adopted theOrganisational Model. This training
reached 217 employees.
• Continuation of anti-corruption
training for Group executives andmanagers, which reached 191
employees.
• Carried out specific initial training
on the Code of Ethics in somesubsidiaries.

Progress

ECONOMIC RESPONSIBILITY

5) Creating sustainable value
Actions taken inprevious years• It implements a business model •geared towards medium- to longterm sustainable growth, combining
economic growth and financial strengthwith the principles of environmental and •social sustainability.
• Drafted and approved by the Audit,
Risk and Sustainability Committee a •DNF reporting procedure identifying
all the steps, people involved anddocumentation required to prepare theNon-Financial Statement in accordancewith GRI accounting principles.

Results 2022

Progress

Continued co-ordination of actions
and achievement of the goals
contained in the Sustainability Plan.
Completed the five-year Sustainability
Plan 2018-2022 to ensure the fulfilment
and expectations of all stakeholders.
Expanded the Business Continuity
analysis
andevaluatedtheachievement of an ISO 22301 company
certification.

• Conducted training on setting up
a Business Impact Analysis andimplementing a Business Continuity
Management System

6) Promoting asustainable procurement culture and practices
Actions taken inprevious years• Defined and disseminated socio- •ethical-environmental standards for
suppliers;• Prepared the acceptance of the Codeof Ethics by suppliers in framework •contracts and/or orders to suppliers ofsome Group companies.

Results 2022

Included the acceptance of theGroup Code of Ethics in frameworkcontracts and/or orders for suppliersof subsidiaries.
IIncreased awareness and training ofGroup suppliers on ESG issues.

• Continued the dissemination of socioethical-environmental standards for
suppliers of the parent company
and some subsidiaries through theadministration of questionnaires and themailing of our sustainability documents.

34

35

ProgressConsolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

7) Initiate checks on suppliers at the selection stage, including on environmental and social
aspects
Actions taken inprevious years• Promotionofgoodsustainability practices amongsuppliers.

Results 2022

9) Increase people's well-being
Actions taken inprevious years

Progress• Increased monitoring of its supply
chain in the companies that initiatedit and implemented it in the remaining
Group companies.

• Inclusion of questions onsocialandenvironmental
issues in the subsidiaries' “newsupplier checklists".

•

In many Group companies, rooms (fitness •areas, cafeterias and relaxation rooms)
dedicated to people's well-being havebeen created to create an increasingly
stimulating
andfulfilling
workingenvironment;•

In all companies, programmes havebeen established to ensure access to thebest health services covering 100% of the •employees;• Initial monitoring of ESG issues
in its supply chain.

HUMAN RESOURCERESPONSIBILITY

Results 2022

The renovation of the second
production plant of the subsidiary
Quanta System (Samarate) has
been completed, which now
accommodates new and larger
workspaces as well as coffee
break and recreation areas for all
employees;
Continuationofimproved
corporate welfare initiatives;•

In many companies, programmes have •been set up to ensure access to welfareplans or conventions;

Delivery of awareness programmes
to disseminate a culture of wellbeing;

•

Some
Group
companies
have •
disseminated a culture of wellness,throughprogrammes
aimed
atencouraging the adoption of a healthy
lifestyle;

Administration of annual internal
climate surveys.

•

The
constructionofthesecondproduction plant of the subsidiary
Penta Laser Technology (Shangdong),
which also houses a recreation area for
employees, was completed;

8) Ensuring health and safety in the workplace
Actions taken inprevious years• Promotion of a workplace health •and safety culture in all Group
companies;•• Explain the activities that eachcompany carries out in the field ofhealth and safety.

Results 2022

Progress

Delivered 7,240 hours of health andsafety training during 2022.
Continued promotion of health andsafety training and information tools
for employees.

36

37

ProgressConsolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

10) Promote training and the enhancement of human capital
Actions taken inprevious years

Results 2022

• Approved a Group Diversity Policy.

• Defined and implemented training
and development programmes forGroup employees.
• Implemented programmes toattract young resources throughpartnerships with universities andresearch centres.
• Implemented a specific Diversity
survey in all Group companies
by monitoring spontaneous
applications, interviews andrecruitment by gender.

• About 39,500 hours of training
provided at Group level.
••

Progress

SOCIAL RESPONSIBILITY

11) Expand positive social impacts through their products
Actions taken inprevious years

Results 2022

Raised awareness and reinforced
People's perception of Diversity and
Human Rights issues through specifictraining on El.En. Group Policies thatreached 899 people.

• Market introduction of tools and •solutions to improve the patient's
quality of life.

The activation of partnerships with
universities and research centres
continued.

• Bringing
tomarketindustrial
processing
technologies
that
reduce environmental impacts andconsumption while improving quality•
and productivity of work.

•38

In the medical sector, research anddevelopment of new laser systems or
the improvement of existing systems
has continued so that a growing
portion of the population can benefit
from innovative technologies that can
improve their well-being.
In the industrial sector, research anddevelopment continued to increase
the flexibility and power of systems andto reduce waste, materials used andreduce or eliminate the use of pollutantsfor certain types of industrial processing.
In the field of conservation, researchand development continued to improve
the performance of systems and toobtain increasingly high-performance
instruments in the preservation andrestoration of works of art.

39

ProgressConsolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

12) Support for non-profit organizations, foundations and scientific laboratories
Actions taken inprevious years

Results 2022

• The El.En. Group supports non- •profit organisations, foundations
andscientificlaboratories,
accompanying them in theuse of new technologies in the •service of patient health.

Support, through cash disbursements,
tonon-profit
organisations
and/orfoundations.

• Community support through •specific donations of medicallaser systems.

Community support through the donationof two laser systems for gynaecology to the
San Marino State Hospital.

14) Strengthening the relationship with the territory
Progress

Support through free use, either for extended
periods of time or for ad hoc projects.

Actions taken inprevious years

Results 2022

• Promotion of initiatives that foster the •growth of local communities, including
through partnerships with associations
and non-profit organisations.

During the year, sponsorships weremade to a number of non-profit
associations in the area in which theGroup operates.

• Promotion of school-to-work projects, •curricularandextra-curricularinternships.

Developmentofschool-to-workprojects, curricularandextracurricular internships.

•

Continued support for initiatives
topromotethesocialandeconomic development of the local
communities in which the Group
operates.

13) Contribute to the preservation of the world's artistic heritage
Actions taken inprevious years• The El.En. Group supports the •preservation of the world's
artistic
heritagethrough
donations of lasers or loans forfree use, as well as disseminatingknow-how through the provision •of training on the use of lasers inpreservation and restoration.

Results 2022

Progress

Support through free use of laser systems
for preservation and restoration, either for
extended periods of time or for ad hoc
projects.
Continued protection of the world's artistic
heritage to preserve the beauty of works ofart intact for future generations

40

41

ProgressConsolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

RESPONSABILITÀ AMBIENTALE

PRODUCT RESPONSIBILITY

15) Guaranteeing the highest quality and product standards and compliance withtechnical regulations
Actions taken inprevious years

Results 2022

• Promoting
continuous
quality
improvement and compliance withtechnical regulations at every stageof the production process.

• Ensured in an efficient and integrated
manner compliance with process
quality requirements, in line with market
expectations.

• Achievement of ISO 14001 for the
implementation of an environmental
management system and ISO 45001
on Health and Safety by the Chinese
subsidiary Penta Laser Shangdong.

• Promotion of sustainable production
and consumption models throughefficient use of resources, integrating
circular models and green solutions
into their processes.

• The
MinistryofEmergency
ManagementofthePeople's
Republic of China granted the Safety
Manufacturing
Standardisation
Certificate to Penta Laser (Shandong)Co., ltd• Maintenance of all
deemedimportantcompanies.

• Investments are made in researchand development in order to develop
products and processes that are
in line with customer needs andrequirements, maximising customer
satisfaction to improve performance,
efficiency and sustainability.

Actions taken inprevious years

Progress• introduced sustainability requirements •in room upgrades, with the installation ofenergy-efficient electrical systems with LED
lighting and motion sensors, the installationof infrared sensors to regulate water use,
and the installation of environmentallyfriendly heating and air conditioning •systems.

certifications
by
Group

16) Investing in innovation, research and development to advance scientific knowledge
Actions taken inprevious years17) Promote energy efficiency policies

Results 2022

• 2,6% of turnover invested in researchand development.

Progress•

An Environmental Policy was approved by
all Group companies.

•

Two photovoltaic plants came on stream.

•

Chinese subsidiary Penta Laser Shangdong
completed the construction of the second
existing production site following the“green building assessment standards”,
installing high-efficiency electrical andheating systems.

•

The Chinese government of Shandong
province and the government of Linyi city
have awarded Penta Laser Shandong as
a company committed to the “conversion
from old to new energy”, a conversion thataims to replace traditional technologies
with innovative technologies that are safer
and more respectful of the environment
and people.

Results 2022

Forallrenovations
and/orconstructions, the Group has installed
energy-efficient electrical systems
and environmentally friendly heating
and air conditioning systems.
Four new photovoltaic plants installed
in 2022, two at the parent company
El.En. S.p.A., one at the subsidiary
Quanta System and one at thesubsidiary Giovanni Galli S.r.l., which
will become operational in 2023.

• 8 active research centres.
• 55 patents pending as at 31 December
2022.
• Continued trend monitoring in orderto act specifically and focused on
customers' areas of interest.

42

43

ProgressConsolidated Non-Financial Statement 2022

18) Reduce environmental impact
Actions taken inprevious years• Carried out awareness campaigns •and promoted environmentallyfriendly
behaviour
among
employees
of
some
Group
•
companies.
• The three Chinese subsidiaries
implemented
separate
waste
collection.
• The companies of the sites in
Calenzano and Prato, Quanta •System, ASA Laser and Cutlite
Do Brasil have initiated a projectthat has led them to review allpurchases of stationery, cleaningand hygiene products in favour ofrecycled materials, and to insert in •all beverage dispensers, certified
paper cups and wooden stirrers,
recyclable in the organic matter.

Results 2022

Seven charging columns for electric cars
are being installed at the subsidiary Quanta
System.
Carried out an in-depth analysis of Climate
Change issues to identify all possible risks
and opportunities for the Group arisingfrom climate change and the mitigation
actions to be taken to reduce these risks or
implement the opportunities.
Constantly verifying that the company's
products and processes comply withapplicable laws and safety regulations andthat environmental protection and energy
saving are pursued.
Carry out awareness-raising campaigns to
spread a culture of rational use of energy
sources among our people.

• All
Italiansubsidiaries
have
adopted supplies of recycled/certified paper folders and certified
printer paper.
• A charging station for electricbicycles and scooters was installedat the Calenzano site, while theGermansubsidiary
Asclepion
installed a column for charging
electric cars.

44

ProgressConsolidated Non-Financial Statement 2022

THE GROUPA STORY OF CONCRETE
AND SHARED VALUES

47

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

2. THE GROUP
The El.En. Group is one of the most important companies in the laser worldin terms of diversification and innovation: the search for technologicalexcellence and production quality are its main characteristics. Group
companies are active in the creation, distribution and sale of advanced,
high-performance, reliable and environmentally friendly products andsolutions.

The strategy of El.En. Group
Investing in research and development to bring new technologically advanced products
to market
Constantly investing in Research and Development for the continuous technologicalinnovation of our products and the improvement of existing ones, broadening their scopeand providing technologically advanced solutions in all fields of application.
Consolidating competitive positions in national and international markets on a daily basis
To consolidate and strengthen competitive positions in the markets on a daily basis, facing
challenges and aiming to acquire leading positions or to be a “leader” in one's businesssector, building lasting relationships, including through strong relationships with one's
supply chain.
Creating value for people
Contributing to our customers' success through products that are able to fully satisfy theexpressed and implied demands of the end customer, placing on the market technologies
that improve people's quality of life, with a constant focus on environmental protection andenergy saving; this is also possible thanks to continuous investment in human resources,
both in terms of knowledge and skills, and in terms of improving the quality of working life.

48

49

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

Our Mission
WE CREATE LIGHT, ENERGY, WAVES…
… WE BRING LASER TECHNOLOGY TO THE SERVICEOF OUR WORLD

We offer innovative products through cutting-edge technology and expertise
We strive every day through intensive R&D to pursue continuous innovation to open up new
applications of lasers or other energy sources, both in the medical and industrial sectors.
The critical success factors of the El.En. Group are the effectiveness of the product range
we offer to meet our customers' application needs and the ability to continuously innovate
to create new ones by expanding our target markets. What characterises us is our ability tothink in a unique way, to innovate by considering the needs of the doctor and the patient in
the medical sector rather than the user of the system in the industrial sector, starting fromany intuition that may arise from the constant and profound observation of problems thathave not yet had a solution.
We improve people's well-being and quality of life
Our daily commitment to research and development of new or improved applications ofour medical and aesthetic lasers provides the market with tools and solutions that improve
people's state of well-being and patients' quality of life, reducing both physical and aesthetic
health problems and the associated psychological ones.Industrial processing performed with
our laser systems is appreciated for its technical and economic effectiveness and efficiency,
as well as for a number of peculiarities that allow us to minimise waste by developing moreenvironmentally friendly processes.
We select, develop and grow the best talent
The ability to innovate and pursue excellence depends on the people and employees
involved in all activities and is the result of the specialisation, skills and passion thatcharacterise all the people working in the Group. Only through the development of
individual skills and a stimulating environment is collective growth and the creation ofshared value achieved.

50

51

Consolidated Non-Financial Statement 2022

THE VALUES OF EL.EN. GROUP
Represent our cultural identity and our principles which are adhered to everyday by all the people who work withus; together with our mission they represent our point of reference for our daily activity.

Consolidated Non-Financial Statement 2022

Certifications
Our products and our quality control system are certified by themost important institutions at a global level; we receive periodically inspections
for the renewal of the certificates that we possess and which are indispensablefor exporting our products abroad

Know-how

Training

All of the companies which belong to our Group have contributed decisively to

In all of our companies the training of the personnel as well as the training

increasing our knowledge of laser technology; this background has been madeavailable to the scientific community for the befit of the cultural heritage of humanity.

of the doctors and of our business partners is the only tool to increaseor disseminate our knowledge and make it available to others.

EthicsResearch and development

We are aware of our responsibility towards society and the environment in which

The researchers of the El.En. Group are constantly involved in national

our company culture and is founded on social and ethical responsibility in theand international research projects and collaborate with research

management of all of our activities.

we live and for this reason we have adopted an Ethics Code which represents

centers and university departments.

Community
Innovation
In its research and development centers the Group works every day to find

We have always been committed to a policy in which our work generates a social
impact and benefits the local community, both through the continuous effort
dedicated to our work as well as the support of social, cultural and educational
initiatives in the areas in which our companies operate.

substantial innovations and to maximize the efficiency and effectiveness of

Futurethose already in existence in order to guarantee a continuous improvementin their performance and contribute to the welfare of the community.

The continual research aimed at technological improvement, the simplicity
of operation and the discovery of new medical applications, the reduction ofwastefulness and of environmental impact obtained with industrial systems, thePeoplesensitivity directed to the conservation of our artistic heritage combined with thesustainability objectives we have set, direct us towards a future in which we will becommitted to generate value to insure a sustainable future for the next generation.

The history of our Group is made up of great women and men who, with theircommitment and their ideas, in the medical sector have brought enormous benefits
to the quality of life of the patients and the work of the doctors and, in the industrial
sector, have contributed to the improvement of the quality and productivity of thework while reducing the environmental impact and the waste of materials.

Multiculturalism
One of the key factors for success is multiculturalism. Our companies are present
in eight different countries on three continents and our business partners
and our technologies are located all over the world.

52

53

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

9

2.1 OUR GLOBAL PRESENCECOUNTRIES IN
THE WORLDThe El.En. S.p.A. company has its headquarters in Italy,
in Calenzano (Florence). As of December 31st 2022
the structure of the Group7 was as follows:

13

MANUFACTURING SITES

8RESEARCH AND
DEVELOPMENTCENTERS23

SUBSIDIARIESCOMPANIESITALYEUROPE

SOUTH AMERICANORTH AMERICA

El.En. S.p.A.

Germany

BrazilNew York

ASA S.r.l.

Asclepion Laser Tech. GmbH

Cutlite Do Brasil Ltda

BRCT Inc.

Cutlite Penta S.r.l.

FranceDeka M.E.L.A. S.r.l.

Deka Sarl

Galli S.r.l.

PolandEsthelogue S.r.l.

Lasit Laser Polska

Pharmonia S.r.l.

Spain

Penta Laser Technology (Shangdong) Co. Ltd

Lasit S.p.A.

Lasit Laser Iberica S.L.

Shenzhen KBF Laser Tech Co., Ltd

Business officiers
ASIA
China
Penta Laser (Wuhan) Co. Ltd
Penta Laser Zhejiang Co., Ltd

Merit Due S.r.l.

Japan

Ot-las S.r.l.

With Us Co. Ltd

Quanta System S.p.A.

Deka Japan

54

Manufacturing sites

The structure refers only to the companies that El.En.
S.p.A. controls directly or indirectly through the majorityof votes of the ordinary shareholders' assembly.
755

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

2.2 OUR HISTORY
Today, the Group can count on an extensive national and international presence created over time throughthe establishment of new companies and the acquisition of control of others. Each is entrusted with a specificbusiness, sometimes targeting a single geographical market, sometimes a particular market sector, sometimes
more extensive activities across technologies, applications and geographical markets. The activity of all of
the companies is coordinated by the Parent company so that the available resources make it possible tobetter serve the target markets, taking advantage of the dynamism and flexibility of the individual business
units without losing the advantages of coordinated management of certain resources. The development of
the El.En. Group has contributed in the past and contributes today to bringing “Made in Italy” to the world withtechnologically advanced and highly innovative solutions and products.

2003
SmartXide DOT Therapy (Deka Mela S.r.l.)dermatological surgery, anti-aging treatments,
removal of pigmented lesions and scars®

Acquisition of Asclepion GmbH2004
Acquisition of Quanta System S.p.A.

80s

2005

Production of CO2 lasers fordermatology, surgery and therapy

MLS (ASA S.r.l.) laserterapia
HIRO (ASA S.r.l.) device for Hilterapia®
for treating edemas, muscular lesions andpost-traumatic pathologies®

Acquisition of ASA S.r.l.
Cynosure Inc. listed on the
Nasdaq1981
2007

Incorporation of El.En. S.n.c

Incorporation of chinese JV
Wuhan Penta Chutian Co. Ltd

90s

Incorporation of Cutlite Do Brasil
Alta Tecnologia Ltda

Development of short impulse Nd:Yaglasers for dentistry and minimallyinvasive
surgery treatments

2008
1990 - 1993

Mediostar XT (Asclepion GmbH)esthetics and hair removal.

Incorporation of Deka MELA S.r.l.,Lasit S.p.A. e Cutlite Penta S.r.l.

Industrial sector El.En. – creation of the familyof BLADE RF CO2 BLADE RF
Litho (Quanta System S.p.A.) surgical,
treatment of kidney stones.

1998

2009

Smartepil (Deka Mela S.r.l.) - first long
impulse Nd:Yag laser for dermatology
and hair removal

Plus RF (Cutlite Penta S.r.l.)with RF El.En. sources for cutting systems

2000
El.En. S.p.A. listed on
the italian stock market

2002

Incorporation of Esthelogue S.r.l.

2010
SmartXide (Deka Mela S.r.l.) laser withradio frequency (RF) sources fordermatological surgery and aesthetics
2

2011

Smartlipo (Deka Mela S.r.l.) laserlipolisi®:
localized removal of adipose deposits withminimally invasive treatment

Mediostar Next (AsclepionGmbH) aesthetics, hair removal

Acquisition of Cynosure Inc.

56

57

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

2012

2020

MonnaLisa Touch® (Deka Mela S.r.l.) for
the treatment of vaginal atrophy

Schwarzy (magnetotherapy)
Red Touch (dermatology)
Again (hair removal)
Dr. Arnold (magnetotherapy)

Cyber (Quanta System S.p.A.)
surgery, Lithotripsy and BHP

2013
Incorporation of second chinese JVPenta Laser Equipment (Wenzhou) Co.
Ltd

2021
The subsidiary Lasit established the 65%-owned
company, Lasit Laser Polska in Poland.

Glide (dermatology)
Chrome Lase Station (dermatology)

2015

2022

Bolt (Penta Chutian e Wenzhou - China)
enhanced system for cutting metal

The subsidiary Lasit established the 65% owned
company, Lasit Laser Iberica in Spain.
The subsidiary Penta Laser Zhejiang acquires
60% of KBF Laser Tech Co

2016
Motus AX con Moveo (Deka Mela S.r.l.)hair removal, removal of pigmented lesions

Discovery Pico (Quanta System S.p.A.)
removal of tattoos and pigmented lesions anddermatological treatments

Juliet® (Asclepion GmbH) for the treatmentof vaginal atrophy

HIRO TT (ASA S.r.l.) painful pathologies of themuscle and skeletal
Fiber Plus (Cutlite Penta S.r.l.) first metal
cutting system with laser sources in fiber

The subsidiaries Deka M.E.L.A. S.r.l. and Quanta
System S.p.A. merge their commercial brandnames into Reinassance® for the Italian market.

2017
Industrial sector
RF 1222 “The Big Boy”

2018
ONDA (Deka Mela S.r.l.) first microwave
system for body-contouring
Coolwaves® technology.

2019
The Chinese subsidiary Penta Laser
Equipment (Wenzhou) Co. Ltd founded
the third Chinese company Penta Laser
Technology (Shangdong) Co. Ltd

With the acquisition of 70% of the Galli S.r.l.
company Quanta System S.p.A.is now equippedwith an internal facility for the production of
precision mechanical components.

58

59

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

2.3 TARGET MARKETSEl.En. S.p.A. leads a complex group of companies

way, exploiting the dynamism and flexibility of theactive in the production, research and development,

individual business units without losing the advantages

distribution and sales of laser systems. The activities

of coordinated management of certain technical,of all the companies are coordinated with the aim

managerial, commercial and financial resources. Weof serving the target markets in the best possible

distinguish two main areas for our activities:

INDUSTRIAL SECTOR

The medical sector of laser systems for medicine andaesthetics, surgery and therapy. The competence andaesthetics:

reliability of our systems have enabled us to be among

The medical division of the El.En. Group designs

the leading companies globally in this field. In over forty

and manufactures lasers and light systems for all

years of activity and research, we have achieved theapplications in the medical field, mainly in the fields of

excellence of our products.

The laser systems industry for manufacturing:

The Group also operates in the cultural heritage

The El.En. Group creates laser systems for cutting andpreservation sector: for years it has been contributing

marking for the industrial sector; these systems areto the preservation of the world's historical andsuitable for many different processes and can be

artistic heritage by proposing cutting-edge, minimallyused on many different materials. Laser sources areinvasive solutions, developed together with leading

also produced with increased performance in terms

national research centres and used on majorof speed and process quality, reliability, and safety.

restoration sites.

MEDICAL SECTOR• CUTTING• AESTHETICS• MARKING• SURGERY• SOURCES• THERAPY• RESTORATION• MEDICALSERVICE• INDUSTRIALSERVICE60

61

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

one considers the global presence and therefore theneed to also deal with the peculiarities that eachregion of the world has in adopting technologies.

Associated with the sale of systems are also the aftersales service activities, indispensable support for the
installation and maintenance of laser systems, for the

Although both sectors use laser technology andshare many strategic components and certain
activities at the production and R&D level, they
address profoundly different markets and theactivities within them are organised in such a way
as to meet radically different needs of the different
types of customers they serve. Furthermore, eachmarket features specific dynamics of the demandand growth expectation linked to different key factors.

management of spare parts, consumables and fortechnical assistance.
Each of the two sectors includes various differentiatedsegments for the specific application of the laser
system, and therefore for the underlying technologies
as well as for the type of user it addresses. Our
business presents a considerable variety of products
and types of customers served, even more so when

2.4 TAXES

El.En.'s business model does not involve operating in

unlawful conduct, even anonymously and including

tax havens and we have no subsidiaries located in

tax matters, using the communication and reporting

countries on the EU Common List of non-cooperative

channel of the Supervisory Body that is set out withinjurisdictions for tax purposes.

the Policy.

Both in the parent company and in each subsidiary, The El.En. Group guarantees the confidentiality
the local directors and the respective CFOs are of sources and information that comes into its
responsible for tax compliance.

possession, without prejudice to legal obligations.

The various companies make use of local consultants

The Group does not tolerate any form of retaliation

and are equipped with tools to keep abreast of tax

against anyone who makes a report in good faith,

news, which may include training and refresher

nor against anyone who has refused to carry out

courses on tax compliance as well as an annual tax

actions contrary to the anti-corruption documents,

compliance risk analysis, from which the necessary

even if there have been negative consequences formeasures are derived. On specific topics, external

the business as a result of such a refusal.

expert opinions are also sought and obtained.

It is also specified that communication channels are

During the annual audit of the financial statements,

already established within the Code of Ethics through

The El.En. Group's geographical location of its offices

delay any information requested by the regulatory

the tax reporting is verified by the auditor certifying

is functional to the performance and development ofbodies in their inspection functions and actively

the financial statements.

its activities and not aimed at obtaining tax benefits7.

cooperates in the course of investigative procedures,

violations. Alternatively, all Collaborators must be

Although the Group does not have a formalised

refusing any form of tax evasion, whether involving its

Within the Anti-Corruption Policy, approved by theable to report, in writing and also anonymously, any

Policy, it attaches great importance to tax issues, tocustomers, subsidiaries or business partners.

their social role and in general to transparency as aCompliance with applicable laws and regulations is

key factor favouring sustainable development, anda priority, in order to combat tax evasion and otherin accordance with its Code of Ethics, it fully andtax offences in the markets and jurisdictions in which

scrupulously complies with the requirements of the

all Group companies operate.

market regulatory Authorities.

The

The Group does not deny, conceal, manipulate orfollowing

table

shows

incometax

which employees and collaborators can report any

Parent Company and each subsidiary and forwarded

breach or suspected breach of the Code of Ethics

for information to each employee, on which specificto the Supervisory Body provided for by Italiantraining was also carried out in 2022 that reached

Legislative Decree 231/2001, which will take the

191 employees, it is specified that any employee

appropriate measures, guaranteeing the necessaryor collaborator who becomes aware of a violation,

confidentiality of the identity of the reporter, without

whether suspected or known, may make a report ofprejudice to legal obligations.

data

aggregated by country:

Country

Numer ofemployees

Revenuefrom thirdparts sales

Revenuefromintercompany
transactions

Profit(Loss)
beforetaxes

Assets netof cashand cashequivalents

Incometax paid

Income
taxes

Italy

947

443.602

99.67070.982355.50322.61218.742

France

11

5.799

14

563

2.099

-

-

Germany

169

61.747

5.329

6.785

45.313

1.476

2.286

Poland

7

1.944

121

-393

384

-

25

Spain

3

24

7

-49

222

-

0

USA

-

-

-

-23

3

-

0

Brasil19

10.498

-

1.512

3.532

92

-246

Japan

55

23.05526-1.60611.165

1.036

-484

China

894

126.91263.1771.217

154.856

235

-370

Total

2.105

673.581168.343

78.988573.07625.45219.953For the entity resident name in each tax jurisdiction and the related activities carried out please refers to the paragraphs 2.1 "Global
Presence" and 2.3 "Reference markets" of this document.

7

62

63

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

2.5 ECONOMIC VALUE GENERATEDAND DISTRIBUTED TO STAKEHOLDERS
The economic value generated and distributed value distributed by the Group is approximately Euro
represents the wealth produced by the El.En. Group 671 million.
which, in various forms, is distributed to the various Most of the latter value, 73.3%, is represented bystakeholders.
“supplier remuneration”; this item consists mainly of
The data on the creation and distribution of added costs for raw materials and services.
value provide, through a reclassification of the This is followed by “personnel remuneration” (13.6%)
profit and loss account, a basic indication of how consisting of salaries, employees' termination benefits
the Group has created wealth for its stakeholders, and social security contributions, “shareholders’highlighting the economic effects produced by remuneration” (3.0%) consisting of minority interests
business management on the main categories of and distributed profits, “Public Administration
stakeholders.
remuneration” (2.8%) consisting of income taxes,
In 2022, the economic value generated by the Group “financial system remuneration” (0.2%) and the value
is more than Euro 722 million while the economic distributed to the community (0.03%).
Chart for determining the economic value generated and distributed
Euros

2022

2021

2020

Economic value generated by the Group722.650.122

620.520.351

428.181.136

Revenue

673.580.821

571.402.153

408.083.292

Charge in inventories

43.384.268

40.680.101

15.907.872

Other revenues and income

6.225.467

5.986.774

5.734.334

Financial charges(461.751)

2.636.505(1.119.626)

Share of profit of associated companies(78.684)(195.348)(424.735)

Other non operating income (charges)

0

10.166-

Economic value distributed by the Group670.865.817

575.812.257

405.068.206

Remuneration of personnel

98.193.547

84.170.079

66.692.366

Staff cost

98.193.547

84.170.079

66.692.366

Remuneration of suppliers

529.540.521

453.526.396

322.044.935

Total purchase412.369.744

358.601.494

255.210.640

Other direct services

61.126.178

47.394.512

32.877.479

Costs operating services and charges

56.044.599

47.530.391

33.956.816*

Value distributed to the community

205.454281.127174.188

Donations205.454281.127174.188

Remuneration of the Public administration

19.952.896

17.299.635

5.382.041

Income taxes

19.952.896

17.299.635

5.382.041

Remuneration of shareholders

21.501.112

19.650.016

10.132.098

3.924.588

3.687.998

2.287.209

17.576.524**

15.962.018

7.844.889

1.472.287

885.005642.577

Net profit of minority interest
Distribution of net Income
Remuneration of financial system

1.472.287

885.005642.577

Economic value retained by the Group

Financial charges

51.784.305

44.708.094

23.112.931

Net income retained to reserves

37.534.471

29.474.369

12.410.257

Depreciation, Amortization and other accrual

14.249.834

15.233.725

10.702.675

64*It should be noted that “costs for services and operating expenses” for 2020 have been shown net of “donations and gifts”, which arepresented separately under “Value distributed to the community”;** The distribution share of the year's earnings corresponds to the allocation of the year's earnings to dividends that the Board of Directors of
El.En. S.p.A. resolved to propose to the Shareholders' Meeting on 15 March 2023.

65

THE ORGANIZZATIONAL
SET-UPRESPONSIBLE BUSINESSMANAGEMENT

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

3. THE ORGANISATIONAL SET-UP
El.En. has structured a solid Corporate Governance Model that plays acentral role in the performance of the Group's activities. The Model is in linewith the recommendations of the Corporate Governance Code issued by
Borsa Italiana and contributes significantly to the creation of sustainablevalue in the medium to long term.

3.1 THE CORPORATE GOVERNANCE MODEL
and a Board of Statutory Auditors to which the control
function is attributed; the chosen Governance systemenvisages the contribution of the following players:

The Governance model chosen by El.En. S.p.A. is the
traditional system, based on a Board of Directors that has
the function of policy-making and strategic supervision

The frequency of meetings is at least quarterly andhave a significant weight in the adoption of board

is intended to ensure that the Board of Directors

resolutions and guarantee effective monitoring ofoperates in an informed and knowledgeable manner.

management; a significant component (three) of

In the course of its meetings, the Board receives

the non-executive directors (four) is independent.The

information from the Delegated Bodies, the General

Chairman of the Board of Directors plays a liaison

Manager and any other executives who are heard;role between the executive and non-executive

it compares the results achieved with those planned

directors and ensures the effective functioning ofat each board meeting devoted to the approval ofboard proceedings. The Chairman is Chief Executive

financial reports for the period and therefore at least

Officer together with the current executive members

every three months. The current Board of Directorsof the Board and is one of the two founding

consists of seven members, four of whom are non-

partners who have been involved in the operational

executive.

management of El.En. and the Group since 1981.

The directors are all endowed with professionalism

The structure of delegated powers attributed for theand skills appropriate to the tasks entrusted topurpose of its operation does not entail the exclusive

them. The number and competencies of the non-concentration of offices and powers of management

executive directors are such as to ensure that theyof the company in the hands of the Chairman, but

SHAREHOLDERS' ASSEMBLY

Gabriele Clementi
President and Managing
director Executive
Michele Legnaioli
Director
Non executive

Board of Directors
Board ofauditors

Supervising
Body

Executive
Directors

Committee
for Risk,
Controls andSustainability

President

Executive
officier
responsiblefor drawing up
the financial
statements

Shareholders' Meeting: The Shareholders' Meetingis the corporate body where the shareholders takepart in the Company decisions with respect tomatters that the law and the Articles of Association
have designated as their responsibility; theShareholders' Meeting appoints the members of
the Board of Directors and the Board of Statutory
Auditors and approves the Financial Statements.

Committee for
Remuneration

Committee for
Appointments

Auditing
company

Alberto Pecci
Director
Non executive

Barbara Bazzocchi
Managing director
Executive

as of december 31 st 2022

Internal
Audit

Daniela Toccafondi
Director
Non executive

Fabia Romagnoli
Director
Non executiveby the Shareholders' Meeting, it plays a strategic
guiding role and evaluates the adequacy of theimplemented Control System. The composition,role and functioning of the Board of Directors of
El.En. S.p.A. comply with the law and the Corporate
Governance Code for Listed Companies. The Boardof Directors defines the strategies of the Company
and the Group by approving and monitoring theimplementation of a three-year strategic plan, drawn
up taking into account the issues relevant to thegeneration of long-term value and supplemented
with goals, also of a non-economic nature, relating tosustainable success.

Board of Directors8: is the central body of the
Corporate Governance system and performs thefunctions of analysing, sharing and approving theGroup's annual budgets and strategic, industrial
and financial plans and their monitoring. Appointed

COMPOSITION
OF THE BOARD OF
DIRECTORS OF
EL.EN. S.P.A.

Andrea CangioliManaging director
Executive

Non-independent director
Independent director in compliancewith art. 147 ter TUF and art. 3 Self-disciplining CodeDirectors, divided by gender (%)

Directors, divided by age group (%)9

43%
WOMEN

50 - 59MEN

60 - 69
> 70

43%

43%

57%
14%
9

The members of the Board of Directors were appointed by the Shareholders’ Assembly on April 27 th 2021 and remain for the three-year
period 2021-2023.

The division of the Board of Directors into age groups was reported in categories of age 50-59 years, age 60-69 years and age >70 years,
unlike that established by the GRI since it was more representative of the composition of the board.

68

69

8

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

since pursuant to Article 3 Recommendation No. 13

Committee, which acquired its current name last year,that the remuneration of Directors and the Generalpromoting its sustainable success, including, whereof the Corporate Governance Code, the Chairman ofis composed of four non-executive members, three

Manager is defined in such a way as to align theirrelevant, non-financial parameters.

the Board of Directors holds significant managementof whom are independent, while the remaining two

interests with the pursuit of the priority goal of creating

powers, on 14 May 2021 an independent director

committees are composed of three non-executive

value for shareholders in the medium-long term, andVariable

was appointed Lead Independent Director, withmembers, two of whom are independent; the workthat a significant portion of the total remuneration

the task of representing a point of reference andof each committee is coordinated by a Chairman.

of Directors to whom management powers arecoordination of the requests and contributions ofTheir composition, duties and powers are governeddelegated or who perform functions pertaining to

the non-executive directors and in particular of

by specific regulations approved by the Board of

the management of the company is linked to thethe independent ones as well as coordinating the

Directors at the time of their establishment andachievement of specific goals, including those of ameetings of the independent directors only.

subsequently amended on the basis of the changes

non-financial nature, predetermined and measurable.

The Lead Independent Director works with therequired by the Corporate Governance Code.

Chairman of the Board of Directors to ensure that

With reference to sustainability issues and theinformation flows to the directors in a complete anddisclosure of non-financial information pursuant

On the occasion of each approval of the annualdraft financial statements for the previous year, theBoard, upon the proposal of the Committee, having
heard the opinion of the Board of Statutory Auditors,
and having assessed the achievement of the preset goals assigned, assigns to the recipients of thetimely manner, as recommended by the Corporate

to Italian Legislative Decree 254/2016, the Control

Governance Code.

and Risk Committee has been assigned the task

After the expiry of the last Board of Directors' termof assisting the Board of Directors with investigative
functions, of a propositional and advisory nature, inof office, a self-assessment process was carried out

issues connected to the company's business andthe qualitative and quantitative composition of
the new body, the appointment of the new board,
the allocation and delegation of functions, andits dynamics of interaction with all stakeholders,
corporate social responsibility, the examination of
scenarios for the preparation of the strategic plan andfinally the election of committees. From 2021, self-

the Corporate Governance of the Company and theevaluation takes place on a three-yearly basis. At themeeting held on 14 May 2021, the Board assessed,
after obtaining the favourable opinion of the Board

Group. On at least a half-yearly basis, the Control, Risk,

to

both

Directors,

including the Chairman, and the General Manager
is subject to a claw-back clause.
The evaluation for the achievement of performancegoals is carried out: as for the economic-financial
goals on the basis of the annual budget data, as forthe non-financial goals by comparing the assigned
goal with what has actually been achieved. The
verification is carried out by the Committee and thenby the entire Board on the basis of the information flows
received from the corporate functions in charge of thesector being evaluated. With regard to sustainability,
criteria for the measurability of goals in the following

Members

Position

End of term

Carlo Carrera

President

Ass. appr. FS 2024

Paolo CaselliStanding auditor

Ass. appr. FS 2024

Rita PelagottiStanding auditor

Ass. appr. FS 2024

Alessandra Pederzoli

Alternate auditor

Ass. appr. FS 2024

Gino Manfriani

Alternate auditor

Ass. appr. FS 2024

Sustainability and Related Parties Committee holds
meetings with the Sustainability Manager to discussof Statutory Auditors, that the Board in office reflectspaid

Board of auditors

evaluations and decisions related to sustainability

in order to draw up guidelines for shareholders on

remuneration

and be updated on the progress of the Sustainability

the indications provided to the Shareholders at thePlan and the activities carried out by the Group, andtime of the Board's guidelines, the illustrative reportsubsequently reports to the Board of Directors on theand at the Shareholders' Meeting concerning theissues discussed. The Board of Directors is therefore

size and composition of the Board also in terms ofprofessional figures and diversified skills deemed,in their complementarity, useful for its efficient

involved and informed on all activities and in somecases, such as the materiality analysis carried out

the Sustainability Manager, if necessary, conducts
training for the Committee members on sustainability

the Shareholders' Meeting.

issues, which are then reported to the Board of

The Remuneration Policy for executive directors andDirectors.

top management defines a) a balance between the

To strengthen sustainability governance, the Board

fixed component and the variable component thatof Directors already in 2020 entrusted the Executive

is appropriate and consistent with the strategic goals

Director in charge of the internal control system withand risk management policy, providing in any casethe definition of the strategic sustainability guidelines,that the variable component represents a significant

the Sustainability Plan and the review of Non-Financial

portion of the total remuneration b) maximum

Company and the Group.

Reporting. The Board of Directors, in order to ensure

limits on the payment of variable components for

As of 2021, the Remuneration Committee decided

the most comprehensive information and broad

executive directors c) performance goals - to whichto propose to the Board of Directors, which thentransparency on the remuneration due to directors,

the payment of variable components is linked - thatapproved it, a four-year incentive remuneration

impacts and reviewing the effectiveness of processes

Articles of Association; it reflects the requirements

put in place to mitigate them. During the meetings,of the Composition and Diversity Policy adopted
by the Company; the legal obligations concerning
the balance between genders represented andthe presence of independent directors have been
complied with; the appointment of the internal
committees into which it is divided complies with therequirements of the Code in terms of the members'
requisites.
The non-executive directors, three of whom are
independent, are organised into three committees toperform advisory and recommendation functions in
support of the Board: Control, Risk, Related Parties andSustainability Committee, Remuneration Committee

areas were developed by the Committee and thenincentive remuneration plan the variable portion of
remuneration actually accrued according to thedegree of achievement of the goals assigned andwithin the limits of the total amount established byduring 2022, is involved in the process of identifying

functioning; it complies with the provisions of theapproved by the Board: environment, human rights
and corruption, and personnel and human resources.
The achievement of the assigned quantitative goals
is reflected in the evidence published in the annual
DNF, which is subject to review.
The Directors' Remuneration Plan restored the weightsof the financial (70%) and non-financial (30%) goals,
remaining with a view to assigning goals that are
directed towards the sustainable success of thehas appointed an internal Remuneration Committeeare (i) predetermined, measurable and linked inplan for the General Manager consisting also ofand Nomination Committee.

since El.En.'s listing. In formulating its remuneration

significant part to a long-term horizon; (ii) consistentnon-financial goals, which weigh 30% of the total

The Control, Risk, Sustainability and Related Parties

proposals to the Board, the Committee ensureswith the Issuer's strategic goals and aimed atremuneration.

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Consolidated Non-Financial Statement 2022

Also starting in 2021, the incentive remuneration plan

employees who were hired during the year, the total

for Directors and the General Manager provides thatannual remuneration was still taken into account.

30% of the portion of variable remuneration accrued

As of 2021, the Remuneration Committee decided

annually will be paid on a deferred basis at the end

to propose to the Board of Directors, which thenof the term of office, possibly re-evaluated on theapproved it, a four-year incentive remunerationbasis of the performance of the company and theplan for the General Manager consisting also ofGroup.

non-financial goals, which weigh 30% of the total

The evaluation for the achievement of performance

remuneration.

goals is carried out: as for the economic-financial

Also starting in 2021, the incentive remuneration plangoals on the basis of the annual budget data, as forfor Directors and the General Manager provides thatthe non-financial goals by comparing the assigned

30% of the portion of variable remuneration accrued

goal with what has actually been achieved. The

annually will be paid on a deferred basis at the end

verification is carried out by the Committee and thenof the term of office, possibly re-evaluated on theby the entire Board on the basis of the information flows

basis of the performance of the company and thereceived from the corporate functions in charge of theGroup.

sector being evaluated. With regard to sustainability,

Board of Statutory Auditors: appointed by thecriteria for the measurability of goals in the following

Shareholders' Meeting, it monitors compliance withareas were developed by the Committee and thenthe law and the articles of association, complianceapproved by the Board: environment, human rights

with the principles of proper administration, theand corruption, and personnel and human resources.

adequacy of the organisational structure of El.En.S.p.A.

The achievement of the assigned quantitative goals

for the aspects within its competence, the internal

is reflected in the evidence published in the annual

control system and the administrative-accounting

DNF, which is subject to review.

system adopted by El.En. S.p.A. and their actual

The Directors' Remuneration Plan restored the weights

functioning. It also acts as the Internal Control andConsolidated Non-Financial Statement 2022of the financial (70%) and non-financial (30%) goals, Audit Committee, with the duties and responsibilities
remaining with a view to assigning goals that are

set out in Article 19 of Italian Legislative Decree

directed towards the sustainable success of the

39/2010. The Board of Statutory Auditors currently in

Company and the Group.

office consists of three statutory auditors and two

The ratio of the total annual remuneration ofalternate auditors who meet the requirements ofEl.En.'s General Manager to the median annual

integrity, professionalism and independence.

remuneration of all Group employees (excluding

Auditing company: is an external body that is

the General Manager) is 56. During the year, there

entrusted with the statutory audit of accounts andwere no significant average percentage increases

is chosen by the Shareholders' Meeting. The current

in the total annual remuneration of employees orauditing company is EY S.p.A..

those receiving maximum remuneration. For the

The other Italian-registered Group companies follow

calculation, gross annual salaries including salaries,

the traditional model and are therefore administeredbonuses, stock bonuses, etc. were used, and foreign

by a Board of Directors or a Sole Director and, where

currency salaries were converted at the average

necessary, have a controlling body and are subject

annualto auditing.

exchangerate. Furthermore, for

those

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Consolidated Non-Financial Statement 2022

3.2 ETHICS, INTEGRITY AND COMPLIANCE
The El.En. Group is aware of its responsibility towards the Company andthe environment in which it operates, and considers it indispensable that
ethical and transparent conduct be maintained in all respects for theproper management of the Company's activities, both in compliancewith laws and regulations and in consideration of the expectations of all
stakeholders.
For this reason, since 2008 the Parent Company has
adopted its own Code of Ethics10 as a tool to strengthen
and disseminate a corporate culture based on theimportance of ethical-social responsibility in the
conduct of business and corporate activities.

pursuant to Italian Legislative Decree 231/2001(hereinafter also referred to as the “Organisational
Model”), aimed at preventing the commissionof offences in the interest of the company by its
employees and/or collaborators. This model oforganisation, management and control of corporate
activities consists of a series of general principles ofconduct - in the areas identified as sensitive for the
purposes of preventing so-called predicate offences- and a structured system of procedures and control
activities for the prevention of such offences.

The Code of Ethics defines the principles and values
that must be followed at all times in the production
process and must be constantly observed inrelations of collaboration, cooperation and businessdealings: legality, impartiality, honesty, correctness
and transparency, confidentiality, fairness, valuing ofcollaborators and integrity of the individual. It applies
to the Group and to all persons performing activities
for it.
Group companies have transposed and, where
necessary, translated the Code of Ethics into the
local language, undertaking to disseminate it to theiremployees and collaborators through appropriate
means of communication. The Code is always
available, in its updated version, on the website www.
elengroup.com, under the section “Investor Relations/
Governance/Corporate Documents”.
The rules set out in the Code of Ethics are intended
to protect the integrity of the Group and to ensurecompliance with the laws and regulations ofeach country in which it operates; the Group iscommitted to establishing appropriate channels ofcommunication through which reports of violations
or suspected violations of the Code may be made,or for requests for explanations. Violation of theprinciples set out in the Code constitutes breach ofcontractual obligations arising from the employment
and/or collaboration relationship and a source ofdamages.
In contracts signed by the Parent Company with
consultants, distributors, agents and suppliers ofcritical components, explicit reference is made to
the Group's Code of Ethics and the counterparty
declares that it has received a copy and accepts it.
In addition, the parent company and the Italiansubsidiaries Deka M.E.L.A. S.r.l., Quanta System S.p.A.
and ASA S.r.l. have adopted an Organisational Model

10

The areas monitored because they have been
identified as sensitive are: offences relating to healthand safety in the workplace (the company ASA S.r.l.
has identified only this as a sensitive area on whichto prepare a special section in its Organisational
Model); offences against the public administration;
corporate offences; handling stolen goods, money
laundering, and the use of money, goods or utilities
of unlawful origin; in addition, the companies El.En.
S.p.A. and Deka M.E.L.A. S.r.l. have also identified
as sensitive the areas relating to the following
offences: market abuse, transnational offences andenvironmental offences.
With particular reference to ethical behaviour risks,
the El.En. Group pays great attention to the preventionof corruption risks.
In order to further strengthen its system for preventing
corruption and bribery, the Board of Directors of El.En.
S.p.A. updated and re-approved the Anti-Corruption
Policy during this financial year; the updated Policy
was transposed by all subsidiaries, which, if necessary,translated the updated version into the local
language, in order to make it possible to disseminate
the document to all employees.
In this context, the parent company El.En. S.p.A. andits subsidiaries Deka M.E.L.A. S.r.l. and Quanta System
S.p.A. analysed, considered relevant and mapped
this risk, and included it in their Organisational Modelpursuant to Italian Legislative Decree 231/2001.
These companies have carried out an analysis of
the risks of committing offences against the publicof preventing the so-called predicate offences,
identified following an in-depth analysis.

administration (including those of a corrupt nature),from which a high level of risk did not emerge, inview of the existence of procedures to guard againstthem and in consideration of the type of activity
performed.

The El.En. Group believes that knowledge of andadherence to the principles of the Code of Ethics
and Model 231 should also be promoted throughspecific training plans for people working within theorganisation: during the year, the company El.En.
S.p.A., and the subsidiaries Deka Mela, Quanta
System and Asa continued specific training on Model
231 carried out by members of the Supervisory Body,
which reached 217 employees in 2022.

Nevertheless, the most sensitive areas of corporate
activity have been identified and a special part
dedicated to the prevention of this type of offence
has been prepared in the Organisational Model.
The analysis therefore started from the mapping ofactivities and the identification of the risk associatedwith each of them by means of the attribution ofa score (the parameters of which are: historicaloccurrence, existence of company procedures,
impact of sanctions for the type of offence andfrequency of occurrence). It was considered thatthe frequency of the event and the impact of the
sanctions made it appropriate to dedicate a part of
the Organisational Model to all prevention activities
related to this type of offence, even if the historicaloccurrence (no event occurred to date) and theexistence of company procedures mitigated therisk. The Code of Ethics also contains a reference
to precise behavioural duties aimed at avoiding theoccurrence of corrupt phenomena. In the three-year
period 2020-2022, there were no cases of corruption
and/or reports of corruption.

In the companies Quanta System S.p.A., Asa, andthe Chinese subsidiaries, specific training on the
El.En Group's Code of Ethics is carried out for all new
employees which reached 547 in 2022 for a total of
615 hours, while in the other subsidiaries the Codeof Ethics is delivered to each new employee at thetime of recruitment. Activities will continue in order
to disseminate the issues even further within theorganisation.
We point out that already in 2021, in order toformalise the procedures for establishing andmanaging dialogue with shareholders, investors
and other stakeholders, the parent company El.En.
S.p.A. approved the "Policy for the Managementof Dialogue with the General Shareholders of
El.En. S.p.A.", promoting understanding of theCompany's corporate objectives and promoting
communication aimed at aligning the various
interests with a view to pursuing sustainable success.
The document has been approved by the Board of
Directors, subject to the favourable opinion of theControl, Risk, Sustainability and Related Parties
Committee, and may be amended or repealed byresolution of the same body. The updated version
is published on the website www.elengroup.com
under the section “Investor Relations/Governance/

In order to ensure compliance with the principles
contained in the Code of Ethics and the effective
implementation of the system of information flows
and controls of Model 231, the Group companies
that have set it up make use of the Supervisory Body;
appointed by the Board of Directors, the main task of
the Supervisory Body is to monitor and, if necessary,
report to the Board of Directors any irregularities orviolations and to supervise compliance with theprocedures adopted by the Company in the context

For more knowledgment on Ethic Code please read the Code available on the website www.elengroup.com.

74

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Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

In order to guarantee the utmost clarity in relations,contacts with institutional interlocutors take place
exclusively through contact persons who havereceived an explicit mandate from the persons
authorised to do so by the Group companies.

Shareholder Dialogue/Policy Dialogue”.

FOCUS: Respect for human rights
The Group upholds and respects the rights of the individual in accordance with the UN Universal

The

relationswithnationalandinternational

institutions must be conducted respecting thelegislative and administrative regulations and in thespirit of the greatest collaboration.

Declaration of Human Rights and therefore demands the utmost respect for people andFor this purpose, as defined in the Ethics Code , weapplicable labour regulations, not tolerating any discriminatory behaviour or behaviour thatare committed to:threatens people's safety. The Group considers impartiality of treatment to be a fundamental• Establish, without any kind of discrimination, stablevalue in every relationship, both internal and external, and considers the individual, his or herchannels of communication with all institutional

ideologies and rights, to be values to be protected. The behaviour of each employee andinterlocutors

collaborator must comply with the principles and rules expressed in the Code of Ethics andin the laws and contractual regulations governing labour relations. Through the disseminationof its Code of Ethics also among its collaborators and suppliers, the El.En. Group establishes
a supervision aimed at guaranteeing respect for human rights (prohibition of discrimination,atinternational,

community

Interactions with Public Administrations, Community
Institutions, Bodies and International Agencies arealways inspired by the principles of legality, loyalty,
fairness and transparency.
The Group maintains relations based on fullcooperation with all the Authorities that perform
inspection, supervisory, regulatory and guarantee
functions, making available, in a timely manner, any
information requested by them and complying withthe measures issued.

andterritorial level;• Representthe interests and positions of Group
companies in a transparent, rigorous and consistentmanner, avoiding collusive attitudes;

prohibition of forced and child labour, freedom of association), also in areas considered to be
at greater potential risk in relation to these issues (e.g. the supply chain). To further strengthen
sensitivity to these issues, which are considered priorities, all companies have adopted anddisseminated to all employees the HumanRights Policy and the Diversity Policy, alreadyapproved by the parent company El.En. S.p.A.. Specific training on Group Policies was also
carried out during the year, reaching 899 employees. Within the Human Rights Policy and theDiversity Policy, there is a paragraph dedicated to reporting in which it is specified that any
employee or collaborator who becomes aware of a suspected or known violation of the Policyor the relevant laws must immediately report it, even anonymously, using the communication
and reporting channel of the Supervisory Body.

76

77

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

3.3 THE INTERNAL CONTROL AND
RISK MANAGEMENT SYSTEM

have been initiated to improve the company's or socio-cultural events resulting from human actions,perimeter security, and collaborations have been on the national and international scenario, especiallyestablished with governmental bodies in order to as a consequence of the sudden and unexpectedshare information in the field of cyber security and outbreak of the war between Russia and Ukraine: thisthus quickly take corrective actions and increase the event inexorably brings both direct consequences,efficiency of the process. Periodically, El.En provides such as the blocking of laser technology exports totraining for its corporate resources with dedicated Russia at Group level, and indirect ones, such as thecourses aimed at increasing security know-how, but increasing difficulty in finding raw materials and themore training is planned, at least at an early stage, increase in the cost of energy.
to introduce IT ethics and raise awareness of these In particular, an awareness has developed of how
issues. In 2022, during the Management Review of serious the effects of underestimating risks and
the Quality Management System for the companies being unprepared for potentially disastrous events
El.En. S.p.A. and Deka Mela S.r.l., the Management can be for an organisation. Events that at first glancereconfirmed its commitment to risk management may seem extremely unlikely (such as a pandemic),
as a fundamental tool in the management of the global financial crises, environmental catastrophes,organisation and its processes, always guaranteeing earthquakes and floods, cyber attacks, etc., canthe provision of resources and qualified personnel occur without warning.
for verification activities and participating directly in The need therefore arises for managerial methods
the definition and documentation of the policy for and operational tools to mitigate their impact. It
determining the criteria for risk acceptability.
is crucial for the survival of the organisation and
A theme that emerged during the review was that the defence of its value to adopt operational riskof business continuity, i.e. the company's ability to management tools and to constantly reassess
continue its activities in the event of extraordinary their adequacy and effectiveness. In times of crisis,
external events, which can be either natural disasters in addition to the promptness of the operational

In an ever-changing context, where the issues of sustainability of businessactivity, combating climate change, environmental protection andthe adoption of appropriate development policies are of paramountimportance, effective risk management becomes a key factor that every
company is called upon to evaluate more and more carefully. In this regard,
the El.En. Group has defined an Internal Control and Risk Management
System consisting of specific rules and procedures, in order to be able toassess the evolution of external trends and new market challenges, andto be able to seize opportunities as they arise, adequately managing theassociated risks.
company's reality and make them operational.

For the El.En. Group, whose primary goal is thesustainability of the company's business in themedium to long term and the creation of value inrespect of its external stakeholders, the internal control
and risk management system is understood as theset of analysis methods, procedures, organisational
functions and structures, and related activities aimed
at identifying the main corporate risks, the ways inwhich they are managed, and the organisation of
the system for their control.

On the other hand, they monitor compliance with therules and procedures on the basis of the competences
and functions defined and assigned by the Council
to the various bodies at their respective levels.
Since 2018, the parent company El.En. has had a
Disaster Recovery Plan, i.e. the set of processes andtechnologies designed to restore systems, dataand infrastructures necessary for the provision of IT
services in the face of serious emergencies, i.e. threatsthat are not due to intentional aggression (disasters).
For the correct application of the plan, all systems
were classified into critical, vital, delicate and noncritical. As far as El.En.'s systems are concerned, only
machines considered critical, i.e. those to be restored
within a maximum of two days, were included in the
DR plan; the status of the plan is reviewed every
month.

The establishment of an adequate system of controls
is aimed at the effective management of thecompany, the safeguarding of corporate assets, theefficient management of corporate processes, thereliability of the information disseminated by thecompany - both financial and non-financial - as wellas compliance with laws, regulations, the articles ofassociation and internal procedures.
For the purposes of constructing and developing
an adequate risk management system, the Parent
Company has defined its own internal control andrisk management system, first and foremost in
relation to the financial reporting process, based on
the CoSO Framework model, in line with international
best practice.

Annually, a Vulnerability Assessment and Security
Audit is carried out, using a methodology establishedin the international scientific community thatencompasses industry best practices, with the aim ofidentifying any security issues and vulnerabilities in
the infrastructure. For each problem encountered, theimpacts of a possible successful attack, the difficultyof exploiting such an attack, and a hypothesisof remediation actions to resolve or mitigate theproblem are defined. Each detected vulnerability is
associated with a risk, which allows the most criticalsituations to be identified more precisely and serves
as support for the risk management model.

The main features of the internal control and risk
management system are rules and procedures on
the one hand and governance and control bodies
on the other.

The rules consist first of all of a series of generalprinciples, codified in the Code of Ethics; secondly, ofa series of second-level procedures (those pursuant Aware of the ever-increasing importance of cyber
to Italian Legislative Decree 231/01, L. 262/05, L. 81/09, security issues for business continuity, the parent
internal regulations on the handling of confidential company El.En. took a series of actions during 2022
information, transactions with related parties, internal with the aim of both increasing the protection of
dealing, etc.) which make it possible to bring computer data and increasing people's knowledge
the aforementioned general principles into the on these issues. In fact, infrastructural investments

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Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

response to the destabilising event, the ability toeffective internal control and risk management

also adopted an Organisational Model pursuant

and equal opportunities. Within the framework

manage communications to control authorities,

system, defining strategic sustainability guidelines,

to Italian Legislative Decree 231/2001. Duringof the quality management system (ISO 9001)

customers, suppliers, credit institutions, employees,

the Sustainability Plan and the review of the2022, the El.En. Group updated and re-approved

adopted by the main production companies,

shareholders and investors and all other interested

Consolidated Non-Financial Statement.

its Anti-Corruption Policy (first approved in

employee management issues are overseen; theparties is fundamental, and to reduce, as far as •possible, the duration of the interruption of production

The Internal Auditor, appointed by the Board of2019); the additions were implemented by all

Parent company has also carried out a thoroughDirectors, has the task of verifying, both on an

subsidiaries and the Document disseminated tojob of codifying human resources management

processes and service provision, preserving the value

ongoing basis and in relation to specific needs,

all Group employees.

proceduresof the company, its reputation and its assets.

the operation and suitability of the internal

Reputational risks: due to the nature of thefunctions with the identification of the necessary

In this regard, the following standards were purchased

control and risk management system;

sectors in which the Group operates, one of

responsibilities and skills. In all companies, thefrom the Quality department: UNI ISO 31000:2018 •(Risk management - Guidelines), IEC 31010:2019 (Risk

The Executive Officer responsible for drawing

the major risks pertaining to the social spheretraining activity is defined annually by surveying

up the financial statements of the Company

concerns the quality and safety of our products

the curricular needs of the company population

management - Risk assessment techniques) and UNI

and other Company documents is appointed

and the supply chain; in fact, any manufacturing

in addition to the compulsory training that must

EN ISO 22301:2019 (Business continuity managementby the Board of Directors and has, besides thedefects could compromise the reliability andbe provided. The Group has also codified insystems - Requirements).

responsibilities assigned to him jointly by thesafety of the final product. Underestimating

the Code of Ethics its commitment to respect

Last year, a number of employees (Quality, Finance

Executive Administrator in charge of the System

the attention of customers and the communityand protect the dignity, diversity and equalandof Internal Controls and Risk Management, theat large to these issues could lead to a loss ofopportunities of its employees and collaborators.

underwent training on these regulations, in order to

responsibility

monitoring

image and reputation, resulting in a decline in

The Group in 2022 adopted a Diversity Policy

acquire knowledge and expertise on the main risk

the level of adequacy and efficiency of thefinancial performance. The Group has always

and approved some updates within the Humanassessment techniques, the setting up of a Businessadministrative and accounting internal controls

paid the utmost attention to the quality andRights Policy already approved in 2019.

Impact Analysis and the implementation of a businesssystem by conducting a preliminary investigation;

safety of its processes and products: the Group's •Environmental and health and safety regulatory

continuity management system. As ISO 22301 is •the international reference standard for businessThe

main manufacturing companies have adopted

compliance risks: these risks are related, on thea quality management system, obtaining ISO

one hand, to any new environmental regulatory

9001 certification, while all medical device

obligations

manufacturingwith the environmental requirements of the

Sustainability,

Operations

Management)ofSupervisory

observanceofevaluating

Body
the

and

entrustedwith

Organisational

the

Model

continuity management, the Management gave

pursuant to Italian Legislative Decree 231/2001

the Quality department an exploratory mandate tohas the task of monitoring compliance withevaluate a possible company certification according

the procedures set up by the Issuer also in theto this management system. At the moment there are•context of the prevention of corporate offences.

no plans to proceed with a company certification

The Internal Control System ensures the monitoring

according to this model, but the Management doesof risks related to the pursuit of strategic, operational,

not exclude that this decision may be taken later.

reporting and compliance goals, both in the parent

companies

are

ISO

13485

as

and

well

as

profilingpossiblecompany

non-compliancecertified and operate strictly in accordance

regulations and, on the other hand, to the factwith the relevant provisions, as evidenced by thethat the Group does not put in place processes

passing of the numerous periodic inspections,to ensure the health and safety of workers

both scheduled and unannounced, that theyand possible non-compliance with regulatory

undergo each year. In order to ensure maximum

requirements in this area. Within the Code ofsafety, as also set out in the Code of Ethics, theEthics, the Group has codified its commitment toGroup establishes lasting relations with its

environmental and health and safety protection.

The organisational structure of the Internal Control

company and in the subsidiaries that have adopted

and Risk Management System is structured as follows:

this approach.

•

The Board of Directors and the Board of

suppliers inspired by the principles of fairness

The

The following are the main risks identified relating to

Auditors, as already mentioned in the previous

and transparency and carefully monitors theoverseen environmental and health and safety

sustainability issues:

process of selecting suppliers and maintaining

issues within the framework of the Organisational•

paragraphs, are respectively responsible forassessing the adequacy of the internal control
system implemented and acting as the Internal
Control Committee;••

Risks related to ethical behaviour: risks areGroup's

Italiancompanies

have

also

their performance, through training and specific

Model pursuant to Italian Legislative Decree

related to the lack of integrity of the Group's

on-site visits to verify their ability to meet and231/2001. In all Group companies, the issue ofmanagement or employees, who may engage

maintain the required quality standards. Since

health and safety is managed and monitoredin unethical, unauthorised, unlawful or fraudulent

last year, the Group has taken steps with suppliers

through processes that, although not centralised

The Control and Risk, Related Party Transactions

behaviour, with particular reference to the issues

to define and share principles, good social andand coordinated at Group level, ensure thatand Sustainability Committee has the task ofof active or passive corruption, bribery between

environmental practices and ethical behaviour

each subsidiary has procedures related to the

supporting the Board of Directors in evaluating

protection of workers' health and safety, worker

private individuals and human rights. To mitigate

and to promote an even more responsible andand deciding on the Internal Control and Riskthese risks, the Group has adopted a Codesustainable supply chain.

training and the implementation of corrective

Managementof Ethics to strengthen the dissemination of a

Staff-related risks: these risks are related toand improvement actions.

Systemandonsustainability•

issues;corporate culture based on the importance ofthe fact that the Group does not put in place •Risks related to respect for human rights: theThe Executive Director in charge of the Internal

ethical and social responsibility in the conduct

processes

andrisk is related to the failure to respect humanControlisof business and corporate activities; the Parent

enhance human capital, or that there are norights, which could undermine the proper andresponsible for establishing and maintaining an

Company and some Italian subsidiaries haveadequate processes to ensure respect for diversity

responsible management of the business.The risk

and

Risk

Management

System80

toattract, select, motivate

81

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

identified. With regard to transition risks, the Groupa gradual process of decarbonisation or evenconsidered various scenarios to reflect potential

becoming aware that the activities carried

future developments, adopting two scenarios,

out by the Group and by counterparties could

IEA 450 and IEA B2DS, which were found to be

have negative climate impacts would affectthe most suitable for the Group's business andthe Company's reputation and consequently its

the most consistent in the path undertaken to

economic and financial results. With reference

keep the temperature increase within 1.5° C. The

to these risks, we annually communicate our

IEA 450 scenario predicts that by 2030 there willcommitments, goals and targets concerning

be a significant penetration of renewable energy

climate change to all stakeholders in a timely

in the energy sector, an improvement in vehicle

manner in order to maintain a positive reputation.

and process efficiency, and a major substitution

Theof coal by natural gas. This scenario therefore

improvement of existing activities in terms ofdescribes an energy pathway consistent withenvironmental impact, through goals concerning

maintaining global warming at 1.5° C by limiting

the promotion of energy efficiency policies andthe concentration of greenhouse gases in theraising awareness of responsible behaviour.

atmosphere to around 450 parts per million of

In the Sustainability Plan 2023-2027, we williscommitted

tocontinuous

include specific goals to reduce direct impacts

CO2 equivalent. With this in mind, over the next
few years the Group plans to install photovoltaic

through the reduction of CO2 emissions into

systems, gradually replace its vehicle fleet withthe atmosphere and to contribute to the fightnew-generation electric or hybrid models, andagainst climate change through the promotion

further actions to reduce energy consumption.

of circular economy studies and initiatives.

The IEA B2DS scenario was considered to set •

•

Group

With regard to the identification of physical risks,

goals for reducing greenhouse gas emissions,

the Group also selected two different scenarios:

assuming the development of climate policies

RCP 2.6 and RCP 8.5. The RCP 2.6 scenario

and the development of technologies to reduce

envisages zero greenhouse gas emissions by

is particularly related to the Group's operations

Code of Ethics has reaffirmed its commitment tothese emissions. Scenario analyses enabled the2100 through massive regulation and policy

and suppliers operating in countries (e.g. thoseenvironmental protection. The Italian companies

Group to identify risks and opportunities related

intervention: this scenario predicts an increasein the Asian region) where legislation in thisthat have adopted the Organisational Modelto business development. As of today, the mainin temperatures and a decrease in precipitation

area is less stringent than in Italy. The protection

pursuant to Italian Legislative Decree 231/2001

transition risks identified are: (a) risks related toin the first half of the century with a decreasingof human rights is explicitly mentioned in thehave also addressed these issues within the model.

legislative/regulatory changes associated withtrend in the second half.

Group's Code of Ethics, compliance with which

In 2019, the Group adopted an Environmental

the fight against climate change: among theis required of all companies. The Group also

Policy to monitor and reduce the environmental

The RCP 8.5 scenario, on the other hand, predicts

main risk factors to which the Group may be

extends the application of its Code of Ethics to

impact of its activities; this Policy, which wasa gradual increase in emissions by 2100 resulting

subject are the increasing reporting obligations

suppliers in which explicit reference is made to

updated and re-approved during this financialfrom a lack of effort to reduce emissions and thus

the UN Universal Declaration of Human Rights. In

year, was implemented by all subsidiaries andon emissions produced, the possible introductiona failure to curb global warming: in this second

addition, the Group adopted a Human Rights

disseminated to all Group employees. Specificof new environmental standards and regulations,scenario in the second half of the century there

Policy in 2019, which was updated and re-training on this Policy was also carried out during

new reporting obligations on emissions produced,

will be an increasing trend of rising temperaturesapproved in 2022. Specific training on this Policy

the year, reaching 899 employees.

or limitations on atmospheric emissions. (b) Risks

and decreasing precipitation. For both scenarios,

was also carried out during the year, reaching •899 employees.

related to technological evolution where there is a

the Group has identified the main acute physical

Climate change risks: The El.En. Group is aware of

failure to adapt in the innovation and digitisation

risks: progressive changes in climatic conditions

the risks posed by climate change to its businessof products, services and processes in line withand extreme weather events, which could result

Environmental risks: these risks are related toactivities and conducted a major analysis in

the technological evolutions required to containin damage to infrastructure such as industrial

the possibility of causing environmental impacts

2022 to identify the potential economic impacts

climate change phenomena. (c) Risks linked tobuildings or plant and machinery, as well asthat adversely affect the local area in which theof these risks. Climate change risks were divided

the evolution of the market where the demand forpotential disruptions to essential supplies withGroup operates or that inadequate measures areinto transition risks and physical risks, and for eachproducts/services will be increasingly attentive

a consequent reduction in production capacity.

taken to mitigate these impacts. El.En. has always

identified risk, potential negative impacts andto environmental issues and an adaptation ofEach assessment was then translated into

complied with the environmental requirements

related opportunities were defined and possible

the offer will be required. (d) Reputational risks

possible days of business interruption, possibleof current legislation, and within the Group's

mitigation actions to be implemented werelinked to climate change, since not undertaking

shunting of logistical activities resulting in higher

82

83

Consolidated Non-Financial Statement 2022

costs, and possible damage to production sites

The risk of the loss of business continuity due

and company infrastructure, which increases

to the reduction or interruption of production

as the severity of weather events increases. As

processes or service delivery resulting fromchronic physical risks, the progressive increase

climate change prompted Management toin temperature with consequent overloading

develop a progressive risk management systemof power grids or blackouts, which could be

and a Business Impact Analysis. This analysis,

followed by interruptions or decreases in activities,

based on the management model dictated byor increased energy supply costs related to

the ISO 22301 standard, will aim to mitigate risks

higher thermal or electrical consumption, werearising from the occurrence of natural disasters

identified.

(but also from socio-cultural events, resulting fromTo partially mitigate these risks, the Parent

human actions, on the national and international

Company and its Italian subsidiaries havescene).

taken out an insurance policy that covers

Today, the fight against climate change is no

direct damages from atmospheric events such

longer an option but a must and represents theas hurricanes, storms, wind, hail, floods andbiggest challenge of the century: companies

earthquakes. With regard to the interruption

must therefore consider these aspects as aof production capacity, in order to mitigate

priority when defining strategies and in day-this risk, insurance coverage by the Parent

to-day operations. The Group's commitment

Company is currently being evaluated, in lightto the transition to a low-carbon economyof the progressive emergence of new risks andis linked to emission reduction goals in theunforeseeable events that may affect production

recently concluded Sustainability Plan, which

capacity. In addition, the Group conducts

will be even more challenging in the subsequentroutineSustainability Plan 2023-2027, to support themaintenance

operations

using

the

best prevention and protection strategies, also

Paris Agreement to limit global warming to 1.5°C

with the aim of reducing possible impacts onand contribute to the European Union's goal of

production facilities.

achieving carbon neutrality by 2050.

Consolidated Non-Financial Statement 2022

THE MAIN RISKS INHERENT TO SUSTAINABILITY TOPICS

Risk category

Risks related to
ethical behavior

Risks related
to respect ofhuman rights

Descriptionof riskManagement

Macro area

• Lack of integrityon the part of the
management or of
the personnel• Risk of corruption• Chapter 1: sustainability• Chapter 3: Organizational profile of
the Group• Ethics Code of the Group• Organizational Model according to
D.Lgs. 231/2001 for the companies
that are using it• El.En. S.p.A. adopted an Anti
Corruption Policy

Governance• Lack of respect ofhuman rights• Chapter 3: Organizational profile of
the Group• Ethics Code of the Group• El.En. Group adopted a Human
Rights Policy• Commitment to adopt a specifictraining to human rights• Underestimating
the interest of
the community
for issues related
to quality andsafety as well assustainability
Reputationrisks• Lack of quality
and safety in the
products;• Lack of quality inthe chain of supply.

84

Socialresponsibility• Chapter 4: the manufacturing
process• Chapter 5: Our business• Ethics Code of the Group• Organizational Model D.Lgs.
231/2001 for the companies thathave adopted it• Commitment to take actions
toward suppliers to share principles,
good social and environmental
practices, and ethical behavior• Insertion in the checklist of
suppliers the evaluation of somesustainability issues

85

Product
responsibilty

Consolidated Non-Financial Statement 2022

Risk category

Risks related topersonnel

Descriptionof riskManagement• Chapter 6: the People• Group Ethics Code• Organizational model
Modello D.Lgs. 231/2001 forthe companies that haveadopted it• System for the managementof quality for the companies
with the ISO 9001 certificate• El.En. Group adopted a
Human Rights Policy• Inadequate use ofhuman resources• Lack of training• Lack of respect fordiversity and equal
opportunities

Human
Resources
Responsibility• Chapter 6: the People• Human Right Policy• Lack of procedures toprotect the health andsafety of the workers.
Risks related
to compliancewithenvironmental
and health andsafety laws

Macro area

• Risk of noncompliancewith the newenvironmental obligations
and regulations or ofnonconformity to theenvironmental requisites.

• Chapter 7: The Environment• Group Ethics Code• Organizational model D.Lgs.
231/2001 for the companies
that have adopted it• El.En. Group adopted an
Environmental Policy

Environmentalrisks• Risk of causing
environmental impact
which has negative
repercussions• Risk of using inadequate
measures to reduce theenvironmental impact• Chapter 7: the Environment• Group Ethics Code• Organizational model D.Lgs.
231/2001 for the companies
that have adopted it• El.En. Group adopted an
Environmental Policy

Climate changerisks• Risks related to•changes connected•
to modifications in•
the political, legal,
technological and market
laws/ regulations.
• Physical risks•

86

Chapter 7: Environment
Ethics Code of the Group
Organizational Model incompliance with D.Lgs.
231/2001 for the companies
which have adopted it
Environmental policy

Environmental
responsibility

THE MANUFACTURING
PROCESSFROM THE DEVELOPMENT OF THE IDEA TO THE
REALISATION OF THE FINISHED PRODUCTConsolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

4. THE MANUFACTURING PROCESS

years due to the protectionism policies of the more

medical field are concerned, we mention the Group's

technologically developed countries.

main lines of development.

Intense Research and Development activity was also

In the area of dermatological applications, research

4.1 RESEARCH AND DEVELOPMENT AS A TOOL FORINNOVATION

carried out during 2022 according to the strategy

The critical success factors of the El.En. Group are the adequacy of the
product range we offer and the ability to continuously innovate it to meetmarket needs and to create new ones

applications for the preservation of cultural heritage)

8

ABOUT

287ACTVE PATENTS AND
55 PENDING

The Group's positioning on high-tech products and the

The Group organises its research and development

global competitive environment in which it operates

activities along programmatic lines and with aentail a continuous and significant commitment tomedium- to long-term vision, so that innovative

research and development of new products and new

products in performance and applications can betechnologies. What characterises us is our ability todeveloped promptly and continuously.

think in a unique way, to innovate by considering thesector rather than the user of the system in theindustrial one, starting from any intuition that may
arise from the constant and profound observation ofproblems that do not yet have a solution.
It is the skills we have acquired and the passionof our people that make the real difference; theEl.En. Group and the people who work for it in factwith the aim of obtaining FDA clearance.

31/12/2020

31/12/2021

31/12/2022

11.067

11.63313.392Equipment

362

305

339

Costs for testing and prototypes

3.957

7.113

5.740

Consultancy fees

564

493

461

Other services

119

233

284

Total costs R&D

16.06919.77519.946The El.En. Group is currently among the few in

Also in the field of dermatology, the development

the world who develop, manufacture and marketof the “Viridis” handpiece of the “Luxea” platformproducts based on the widest spectrum of available

was completed, which aims to achieve the highest

technologies,

standards on the market for pulsed light-based

including:solid-statelaser,

semi

conductor laser, active fibre laser, dye laser, CO2vascular applications.
Development of a new system for dermatology

laboratories, as well as through collaboration withcalled “Helix”, which combines the ablative effect ofsolutions from infrared to ultraviolet with different

leading research centres, hospitals and universities,

the traditional CO2 laser with a non-ablative effectlevels of power and emission duration, to fulfil a wideboth nationally and internationally, we do not set

achieved by means of a source emitting at 1570 nm,

range of applications. In addition to laser technology,

ourselves any limits, driven by the desire and passion

was completed in the year 2022. Aimed at the US

El.En. is active in other technologies, again in thefor everything that is or can become new.The researchmarket, it obtained FDA clearance in January 2023,

field of electromagnetic energy forms, including in

carried out is applied for most of the activities, while

and its commercialisation is about to start.

particular radiofrequency, microwaves and high-

it is basic for some specific topics, generally related

intensity electromagnetic fields. Therefore Research

In the hair removal sector, there is constant research

activities

conducted

inand development aimed at improving the high-end

and Development is addressed to numerous and“Again” and “Elite IQ” products. The time structure

different systems, subsystems and accessories.

years of experience, which leads to a marked ability

The

to innovate in its know-how, production technologies,

demonstrated

processes, products and related services. One of its

companies have filed: in just over forty years ofstrengths is precisely the possibility of networking

activity, 287 patents have been filed, while 55 areamong the people working in the Group, who in thiscurrently in the application phase. There has been

way develop contacts and relationships, creating aan intense activity in obtaining patents to protect

bond of reciprocity in which skills and information are

intellectual property of the inventions obtained; thisexchanged and shared.

activity has been increasingly more difficult over the90

devices and technologies used.

including OPO and Raman, capable of providing

researchterm goals.

technological phenomena gained in almost forty

scheduled to start in the first quarter of 2023 in the US

laser, in addition to frequency conversion systems

theto activities regarding innovative medium and long-boast a knowledge of physical, biomedical andthe point of view of applications, performance of the

our

In

needs of the doctor and the patient in the medical

the collagen present in the tissue. A clinical study is

Staff costs and general expenses

IN RESEARCH ANDEUROS INVESTED IN R&D

based on the direct interaction of radiation withand to place innovative products on the market fromThousands of Euros

PEOPLE INVOLVED

20 MILLION

and innovative solution for skin photo-rejuvenation,

both in the medical and industrial sector (including

DEVELOPMENT€

source with red emission, which represents a unique

new laser applications or of other energy sources,

182

RESEARCH CENTERS

continued on the “Red Touch” system, based on a laserof pursuing continual innovation, aimed at opening

El.En. Group'sbyabilitythetonumberinnovate
of

is

also

patents

theof the pulses produced to optimise the efficacy of

The table above shows the expenses incurred by thetreatments while minimising discomfort is the main

Group during the three-year period 2020-2022 forfocus of study, particularly for the treatment of vascularresearch and development activities: the amount oflesions, which is an essential additional application

expenses incurred corresponds to approximately 2.6%

potential of the “Again” family of products.

of the Group's consolidated turnover. The expenses

Work continues on improving the top end of hair

incurred by El.En. S.p.A. amount to 3% of its turnover.

removal products, aimed at making treatments fasterAs far as research and development activities in theby reducing heating and calibration downtime to a91

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

minimum, with the aim of pursuing the excellence of

masses of the body are also intended to be applied

Also in the field of gynaecology, research andmoment and the impact of similar situations that

El.En. products.

in the rehabilitation sector, and have confirmed

development work continues on systems for the

may arise in the future.

The production and sale of the new“Motus AZ”product,significant

treatment of stress incontinence.

characterised by a complete range of treatments

development activities are underway to obtain FDA

using a series of contact-cooled handpieces, isclearance for the treatment of fat with a version of

now fully operational: Moveo HR, dedicated to hair

the PhysiQ product enhanced by the adoption ofremoval; Moveo PL dedicated to the treatment ofinnovative technology.

pigmented lesions; Moveo VL dedicated to thesales

results

during2022.

FurtherIn the area of galvanometric scanning systems,

For surgical applications, research and development

product engineering continues to be optimised inrelated to CO2 laser technology continued: neworder to improve production processes and long-term

accessories and systems were developed, including

dynamic performance. Work is underway to design

the “Multipulse Pro Duo” marketed by the subsidiary

new scanning units that are modular according to

Also in the Body Shaping segment, innovative Artificial

Asclepion, a system that enables a wide range ofmarking requirements with flat-field lenses or dynamic

treatment of vascular lesions; Moveo SR dedicatedIntelligence algorithms have been implemented

surgical procedures thanks to its dual arm-fibre

focusing systems.

to the treatment of Skin Rejuvenation. The proposedon the “LIPO AI” system, which allow significant

functionality.

offer is proving to be a great success, proving theadvantages and improved user-friendliness, ensuring

goodness of the development realised.

The study, development and design of laser systems

on the first 300W units for more extensive restoration

the highest levels of safety and effectiveness of thebased on the new Thulium Fiber laser - Fiber Dust

applications, with use also being extended to the

DEKA has started marketing the new productnow classic laser lipolysis procedure.

technology continues, completing the company's

world of paint stripping or industrial cleaning.

For applications in gynaecology, we report the releaseproduct portfolio on the market for the treatment ofIn the sector of metal cutting machines, new optical,of the new “GLIDE” product family: “Monalisa Glide”

urinary tract stones and benign prostatic hyperplasia.

and “Monalisa duo glide”. The new family represents

Work continues on clinical trials and validation of theof the EVO2 cutting heads allowed laser poweran evolution of the iconic Monalisa Touch, retaining

therapeutic efficacy of physiotherapy equipment as

outputs of up to 40kW to be added to the range. The

the outstanding features of El.En.'s CO2 technology

required by MDR.

machines equipped with a 40kW source, represent“SmartPico”, a laser system mainly dedicated toapplications for the removal of tattoos and thetreatment of benign pigmented lesions, operating inpicoseconds. Intensive research and development,
jointly conducted by El.En. R&D and Quanta System,
is underway to enhance product specifications in allwhile improving control architecture, design, andemission wavelengths.

ergonomics. In addition, the new “Monalisa duo

The range of laser handpieces accompanying theglide” system combines the ablative treatment

Monolith hair removal system was completed bycharacteristic of the CO2 laser with a non-ablative

adding a new handpiece capable of generating athermal treatment using the 1540nm wavelength

powerful 760 nm emission.

delivered by an additional laser source available inIn the area of body shaping, the development of athe system.

new, small handpiece specifically for facial treatment

The development of the revolutionary new “Monalisa

was completed for our innovative “Onda Coolwaves”

Butterfly” accessory capable of automating thesystem. The new handpiece is intended to complete
the range of treatments available with “Onda
Coolwaves”: reduction of localised adiposity, cellulite

a product that is constantly evolving due to the

The development of automatic vessel recognition
forvasculartreatments

bycameradevelopment of cutting processes that are becoming

continues

more and more cutting edge. Outstanding results

and technical and clinical trials are underway.

have been achieved in terms of the ability to cut very

Work continued on perfecting a surgical systemthick carbon and stainless steels. The design andfor urological applications characterised by the

improvement of innovative tube cutting systems andpresence of a morcellator integrated in the system.

combined tube/plane machines continues.

In the industrial field, the Group carries out the

The development of software and the characterisation

following activities:of cutting parameters, also with the relevant support“Monalisa Touch” treatment has been successfullygases, have made it possible to fully exploit theconcluded, released for sales at the end of 2022.

increasingly demanding applications to which theypotentials resulting from the high power outputs used,

are addressed continues steadily at El.En. Work haswith significant increases in performance in terms of

begun on higher power sealed sources for e-vehicle

productivity and quality and the implementation of

applications

conventionalinnovative 2D and 3D bevel cutting systems that result

systems. Refinement of the range of medium-power

in a new application range for fibre laser cutting andCO2 sealed sources continued, in particular of thea distinctive differentiation element on the market.

to be carried out automatically, thanks to a motorised

Research and development activities continue on

drive system for both the linear feed and the rotation

systems for muscle stimulation and reduction of

movement, traditionally performed by hand by the

localised adiposity based on electrical (“PhysiQ”)

operator. With the addition of automation, treatment isand magnetic (“Schwarzy”) excitation. The latter

faster and safer, with results independent of operator

appliances for the stimulation of specific muscularexperience.

92

mechanical, fluid dynamic and sensor developments

The re-engineering of products in the light of the“Monalisa Butterfly” allows the “Monnalisa” procedureand under the chin blemishes.

In the restoration sector, the R&D team is following up

incompetition

with

1.5 kW source, enabling its use in the die-cutting

The constant development and expansion of thesector in cooperation with Cutlite Penta.

range

of American

die-cutting

machines

also

Continued development on sealed sources forcontinues, an area in which the subsidiary Cutlite

stripping applications, again for e-vehicles, requiring

Penta is increasingly strengthening its position as ahigher power and low cost to reaffirm our integrator

world leader by presenting a new line based on thepartner's presence in the industry as opposed toEl.En RF1555 laser, which is gaining market share overmechanical solutions.

competing sources.

In the industrial sector, too, the shortage of certain

The implementation of the new El.En. RF1222 CO2components meant that R&D team resources had tosource continued on the Ot-las marking systems,

be deployed to revise technical solutions to enable

as well as of the new scanning optics specifically

production to minimise the difficulties of the historicaldeveloped to manage medium and peak high93Consolidated Non-Financial Statement 2022

power together with the increasing demand forthe subsidiary Lasit S.p.A. focused on improving the

dynamic performance. To improve the performance

confinement systems of the laser irradiation zone inof the systems produced by automation, specific newterms of greater integrability and ergonomics of theservo systems were designed.

opening and closing devices. Work was carried out tosimplify, reduce the size and standardise the electrical

For the footwear sector, software functions have been

panels and other components in order to optimise

extended to make the use of the systems increasingly

Consolidated Non-Financial Statement 2022

THE TECHNOLOGICAL REVOLUTION OF FIBRE
IN THE INDUSTRIAL SECTORPENTA Research and Development

the engineering of the systems, making them also

responsive to market needs. Similarly, positioning
systems have been optimised in hardware. With
regard to the processing of large slabs, particularly
marble and natural stone, the study and developmentof processing on large dimensions (2×3 metres) withhigh laser power (1200w) continues. Furthermore,

more integrable and compact. Work is in progress

Penta started its business about thirty years ago with CO2 laser source machines, establishing itself

to develop vision systems capable of accessing themainly in the field of cutting non-metallic materials. The turning point came thanks to the technologicalfield of view directly through the focusing optics inrevolution in the sheet metal cutting sector that gave birth to very short wavelength fibre laser sources

order to minimise parallax errors, bulk and camera

thanks to the efforts made by its R&S laboratories, aimed at researching and adopting increasingly

vulnerability.

higher powers (which have risen to levels previously considered unattainable for CO2 sources), in recent
years Cutlite Penta has also made a strong name for itself in the metal cutting market, offering solutions

constant research and streamlining of the processes

with affordable costs and high performance in terms of production efficiency and effectiveness, whichin the leather, textile and footwear industry continues

have enabled them to be used both for very high efficiency and speed production and for productionin order to achieve increases in performance andrequiring higher thicknesses, previously only satisfied by other technologies.

operational flexibility.

Penta's R&D, building on the El.En. Group's decades of experience with CO2 laser sources, has

Work continues to identify and realise customisedtransferred this know-how advanced and transversal in the field of fibre laser technology and has

solutions to be integrated into complete production
processes requiring surface treatments of various

applied it in sheet metal cutting, to develop fast, high-power machines..

materials, as well as those to be integrated into

This technological revolution has created a spread of laser applications that are becoming more andproduction lines using universal robotic systems.

more affordable for everyone and that, besides being effective and technologically advanced, areOn the other hand, the research and development ofalso highly appreciable in terms of sustainability. We know the advantages of using lasers in themetal cutting industry: no polluting materials are added to the machining process, the fumes produced
contain no chemical additives, and waste quantities are reduced thanks to extreme precision and theuse of programmable software; but replacing CO2 lasers with fibre lasers also allows the machine's
productivity to be increased, thus reducing energy consumption during the production process andthus reducing CO2 emissions into the atmosphere, thus helping customers to establish processes thatare much more respectful of ethical and environmental values, aware that the entire industry must
become even more sustainable.

9495

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

CLINICAL RESEARCH & PRACTICEASACAMPUS - EXPERIMENT ON THE
INTERNATIONAL SPACE STATION

of El.En. S.p.A.
The Parent Company El.En. S.p.A. set up a Division called Clinical Research and Practice (CRP) a
few years ago to enhance and streamline the clinical development process (an integral part of thedevelopment of new products, with relevant validation, pre-launch and appropriate physical-clinicaldebugging) and to better develop sales tools, white papers and scientific articles, as well as to capitaliseon lab experiences.

After having participated in the CORM experiment (2017) and the XENOGRISS experiment (2019), theresearchers of the ASAcampus Joint Laboratory - established from the partnership between the ASA
Research Division and the Department of Experimental and Clinical Biomedical Sciences “Mario Serio”
of the University of Florence - are taking part in the “SUTURE in SPACE” experiment, on the International
Space Station (ISS) during the Minerva mission with Italian astronaut Samantha Cristoforetti.

The success of a laser treatment arises from a meeting of ideas, it is nourished by the clinical experienceof professionals who want to innovate their profession every day, by listening to the sales network, bymarketing, by discussions with product specialists, by the ability of research and development to push
the technological envelope. The CRP (Clinical Research & Practice) division was therefore created toconcretely define the place where these ideas meet, before choosing the right ones to be given clinicalforce and accompanying them in the right direction so that they can be successful and scientificallysound. CRP is therefore an incubator, maturing proposals and trying to mediate for the right compromise
between physical well-being and technical feasibility.

The experiment, selected by the European Space Agency in the ESA-ILSRA2014 call and with the support

This division consists of professionals with diverse experience and expertise in bioengineering, surgery,biology and chemistry. It was set up a few years ago as an autonomous department, but is the fruit of
the union of colleagues who have been working assiduously for years in scientific research within thecompany, and also makes use of external collaborations with professionals from numerous branches
and institutional and university bodies.

in the laboratories of the Kennedy Space Center (KSC) at Cape Canaveral, Florida, and transferred to

The Clinical Research & Practice division supports the company by providing clinical data to support
the medical systems, especially the youngest ones, through numerous activities: it promotes clinicaltraining through the drafting of scientific documentation, coordinates the activities of Product Managers
to increase the synergy of products in the various specialities, drafts clinical manuals with protocols to
support the use of the latest systems, and produces Clinical Evaluation documentation for the various
certifying bodies according to the latest regulatory standards to support the obtaining of various medical
certifications.
Preclinical evaluations on biological models and specific investigations, including histologicalinvestigations, are also carried out in the department, along with advice on the scientific state of the art
in order to have a complete picture of the situation in which the product is to be placed.

of the Italian Space Agency (C-ASI N. 2018-14-U.0-Suture in Space), aims to study the healing processof surgical wounds in Space. In future interplanetary space missions, any surgical emergencies, wounds,
burns and traumas will have to be managed on board spacecraft or space bases, because the medical
evacuation times to Earth would be too long. The wound healing process is crucial for the survival of theorganism, so it is necessary to study it under the typical conditions of the space environment.
The hardware and biological samples needed to carry out the experiment were prepared and integrated
the ISS with the SpX-25 (Cargo Dragon 2) launch.
The realisation of the SUTURE experiment in SPACE was possible thanks to seven years of multidisciplinary
research in which many researchers from the departments of: Experimental and Clinical Biomedical
Sciences “Mario Serio” and Experimental and Clinical Medicine, both from the University of Florence,
Life Sciences-University of Siena, Pharmacological and Biomolecular Sciences-University of Milan, Health
Sciences-University of Molise, Biomedicine Pharmacology and Space Medicine-Aarhus University, VU
University Medical Center-University of Amsterdam, Space Biology Group-Lucerne University of Applied
Sciences and Arts. Surgeons from the Breast Unit and the Vascular and Cardiovascular Surgery Units of
the Careggi University Hospital also took part in the project activities.
Studying the wound healing process under microgravity conditions will help to better understandthe mechanisms of tissue repair and regeneration and to identify therapeutic strategies for wound
management both in Space and on Earth. During the studies for the experiment, an ex-vivo biologicaltissue culture technique was developed that allows tissue to survive for several weeks and could havevarious applications in the biomedical field.

9697

Consolidated Non-Financial Statement 2022

QUANTA SYSTEM S.p.A.
Quanta System's core business is almost exclusively dedicated to the medical sector and only to a small
extent to the industrial sector and the art preservation sector.
During 2022, new product development activities continued in both the surgical and dermatology andmedical aesthetics divisions, with the launch of several successful new systems.
In the surgical sector , the company recently brought to market laser systems based on the new Thulium

Consolidated Non-Financial Statement 2022

4.2 THE QUALITY AND SAFETY OF OUR PRODUCTS
The Group is aware that the complexity of its business requires high quality
standards, and therefore the commitment we promote and maintain to
the Quality and Safety of our products is essential to its continued growthand success. We always pay the utmost attention to the design anddevelopment phases of our systems: our value also lies in the study andapplication of increasingly selective, effective and safe methods.

Fiber laser - Fiber Dust technology, which completed the company's product portfolio on the market for
the treatment of urinary tract stones and benign prostatic hyperplasia. In parallel, custom versions of thesame product were created for some major OEM customers. The company is currently engaged in the
power development of this product range, to complement its offerings with ever-increasing technicalspecifications to meet the growing demand for innovative technologies in this sector. The segment
also continues to develop new sources based on non-linear optics and the use of the Tullium laser for
applications in the treatment of urinary tract stones. Quanta System is confirmed as the El.En. Group's
leading company in research and technological innovation in the laser market for urology applications.
In the dermatological sector, the development of two new products has been completed and will belaunched from 2023 onwards: these are the “Youlaser Prime” for dermatological and gynaecologicalsurgery applications and the new “Suprema” platform, which complements and enhances theperformance of the EVO platform in all its configurations.
At the same time, the R&D team mainly devoted itself to advancing studies on the use of picosecond
lasers that will lead to the definition of two new “pico” configurations: one with variable pulses and asecond with emission in the red, for the treatment of surface pigmentations and for photo-rejuvenation
treatments.

We strive every day to provide valuable products toof their activities with the standards of the national

our customers in order to establish a loyalty process

authorities of the countries in which they operate.

based on quality, reliability and safety, ensuring

The various Group companies comply with thethat product requirements are recognised andfollowing standards and regulations, depending on

appreciated and that every measure is taken to

the geographical area and type of business in which

ensure regulatory compliance.

they operate:

100% of our products are tested at three different •stages: functional testing, electrical safety testing•
and final testing for product release.
Some

Group

companies

have

adoptedan“Integrated Management System Manual”, which•

ISO 9001;
ISO 13485 relating to the quality management
system for medical devices;
ISO

14001

relating

totheenvironmental

management system;

meets the requirements of TUSSL no. 81 of 2008, to

describe the goals and policies of the Quality •Management System and how it is applied. The •ISO 45001 for occupational health and safety;
ISO 50001 for access to clean, reliable andmanual defines the general criteria for meeting thesustainable energy;
Europeancontinues, leading to the development of a new application in the field of dermatology: active acne

safety and performance requirements of products •throughout their life cycle as well as the services

treatment. This project led to the CE certification and finalisation of an innovative laser system in terms ofprovided.

by European Regulation (EU) 2017/745 MDR

source type, with emission at a wavelength previously not commercially available. “Accure Laser” is the

The companies El.En. S.p.A., Deka M.E.L.A. S.r.l., Quanta(Medical Device Regulation));first laser platform in the world developed to selectively strike the sebaceous glands, the source of the

System S.p.A., ASA S.r.l. and Asclepion GmbH have •a Quality Policy that guarantees the compliance

National laws of member states of the European
Community and non-European countries such as

Quanta System's collaboration with the Massachusetts General Hospital's Centre for Photo-Medicine

production of sebum and this holds the key for an effective and lasting treatment of acne.

Directive

MDD93/42/EEC

Accure Laser ™ is the result of a large research and development project implemented by Accure
Acne Inc. in collaboration with El.En. and Quanta System and is an extremely innovative product in thedermatological field. Among automatic Artificial Intelligence (AI) elements, we mention the “autotrigger
system” that automatically enables the laser emission only when the cooling target temperature has
been reached, the “ADD” (Automatic Dose Determination) System and the “DEM” system to automaticallycontrol interruption of the emission by directly measuring when the End Point is reached. The product is
protected by a massive “patent portfolio” with over 14 patents.
The clinical development activity also involves, under the responsibility of the associated company Accure

53

Our products and our quality systems
are certified by the most important
institutions at a world level that

EMPLOYEES WORKING INQUALITY CONTROL

are responsible for supervising thesafety and effectiveness, above all,Acne Inc., a number of research centres in America and has intensified during 2022. Having obtainedof medical devices. Our companies

CE marking for the Accure Laser™ system for the treatment of patients with moderate acne vulgaris, theperiodically receive inspections foraffiliate obtained FDA clearance for sale in the US in 2022 and is expected to start commercialisation16

the renewal of the certificates they

EMPLOYEES WORKING IN
REGULATORY ACTIVITY

during 2023.

possess, and which are
indispensable for exporting
our products abroad.

98

99(Medical

Devices Directive) which will soon be replacedConsolidated Non-Financial Statement 2022

the United States of America (21CFR820/803/806),
Japan, China (CCC- Certification for electronic
components and Enterprise standard “CNC laser
cutting machine”) and Brazil.

Consolidated Non-Financial Statement 2022

Canada, Brazil, Japan and Australia) to conduct asingle audit of medical device manufacturers toverify that they meet the requirements of ISO 13485
and the national deviations of the relevant countries.

All Group companies that produce medical devices

The companies El.En. S.p.A., Deka Mela S.r.l., Quanta
System S.p.A., obtained last year the CE certification
Asclepion GmbH and ASA S.r.l.) have been MDSAP according to Annex IX of the new EU Medical(Medical Device Single Audit Program) certified Device Regulation 2017/745MDR. This certification
for several years. This certification allows bodies definitively replaces the previous Directive 93/42/
recognised and accredited by the Regulatory ECC, which will remain valid until 2024, while theAuthorities of the five participating countries (U.S.A., companies Asclepion GmbH and ASA S.r.l. are(El.En. S.p.A., Deka Mela S.r.l., Quanta System S.p.A.,

SocietàCertificazione

ASA S.r.l.

• ISO 9001:2015;• ISO 13485:2016;• European directive 93/42/ECC medical devices;• MDSAP 13485:2016 (february 2020).

El.En S.p.A.
and Deka M.E.L.A. S.r.l.

• ISO 9001:2015;• ISO 13485:2016;• European directive 93/42/ECC medical devices;• Directive UE 2017/745MDR;• MDSAP 13485:2016.

Penta Chutian Laser(Wuhan) Co. Ltd• ISO 9001:2015;

Penta Laser Technology(Shangdong) Co., Ltd• ISO 9001:2015;• ISO 14001;• ISO 45001;

Penta Laser Zhejiang Co., Ltd• ISO 9001:2015;• ISO 14001;• ISO 45001;• ISO 50001;

Quanta System S.p.A.

• ISO 9001:2015;• ISO 13485:2016;• European directive 93/42/ECC medical devices;• Directive UE 2017/745MDR;• MDSAP 13485:2016.

Asclepion Laser Technologies
GmbH• ISO 13485:2016;• European directive 93/42/ECC medical devices• MDSAP 13485:2016.

Cutlite do Brasil• ACIB - Centro Empresarial de Blumenau;• ABIMAQ (National Association of Machine Industries);• INDAC (Instituto Nacional para Desenvolvimento de Acrilico - National
Institution for Development of Acrylic);• Conselho Regional de Engenharia. e Agronomia de sc

Deka Japan Co. Ltd
and With US Co. Ltd

The companies comply with the regulations of the Japanese Ministryof health, labor and welfare. In order to import and sell machinery inJapan, companies musthave a selling permit and the type of product imported must be
approved in advance. The selling permit must be renewed every five
years and the permit for marketing of the machine is renewed for from
one to five years depending on the type of risk it represents.

100

finalising the procedure and certification is expectedWenzhou company has also obtained ISO 50001

to be granted for both during 2023. On the previous

certification. The goal in the coming years will be

page we provide a summary of the certifications in

to extend certification to the remaining Chineseplace for the various companies.

locations.

It should be noted that there are 13 production sites, The Group is committed to achieving, throughof which eight relate to production for the industrial

the motivation and involvement of its people, asector and five to production for the medical sector.

continuous improvement in the quality of its products

54% of the production sites are ISO 9001 certified

and services; this goal is pursued through thewhile 100% of the production sites producing medical

optimisation of company processes, according todevices are ISO 13485 certified. Since environmental

criteria of efficiency and uniform, streamlined andlegislation in China is less stringent than in othereffective working methods.There is also an increasing

countries where the El.En. Group subsidiaries aretendency towards a risk management-oriented

based, the Wenzhou and Shangdong companies

Quality Policy, as a tool for evaluation and decision-

have seen fit to obtain ISO 14001 and ISO 45001

making, in order to pursue continuous improvement

certification (15% of production sites), while thethrough appropriate preventive or corrective actions.

101Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

THE INCOMING INSPECTION IN EL.EN. S.P.A.

All employees have received basic training on theusability, which will happen in real time and thequality and safety of our products.

option for this data to be aggregated for different

The responsible Quality functions, for which a

cost centres and linked to the management systemmanagerial responsibility for product safety has

for the sharing of item, supplier and customer records;

been identified in each subsidiary, carry out daily- non-conformity management: increased speed inenhanced with the introduction of a major measuringsafety risk assessments and promptly investigate

the management of non-conformities detected fromandincidents that occur and implement corrective

both internal production and external supplies, with

Measuring machine equipped with a contact probe.

actions promptly. The personnel in charge of these

the option for the supplier to enter non-conformity

The tool, which is part of the wider Industry 4.0 project,controls receive regular training on the activities

reports and cause analysis results directly throughis interconnected to the company's operating

the supplies to be inspected, the defect coefficientthat must be carried out in line with new regulations,the software remotely;system and enables to control quantities, geometric

was also introduced into the calculation, for the time

recommendations, and best practices at national- management of instrumentation and measuring

tolerances and dimensions of parts.

being manually, which allows for a more effective

and international level, and they receive regularequipment: the improvement will involve the possibility

The introduction of this tool has resulted in a significant

rotation that concentrates inspections on potentiallyinspections by independent bodies on product safetyof setting alarms on approaching deadlines andboost to the department's activities, especially for the

more critical components or suppliers, reducing

and the correctness of the procedures and processes

being able to easily plan instrument calibrations

dimensional inspection of mechanical components:

inspections where no defects or particular problems

put in place, also in response to emergencies tested

so as not to incur any downtimes. It also enables

the Incoming Inspection activity has increased theoccur. This improvement stems from the analyses

regularly to ensure product safety. With a view tocomplete tracking of the allocation of instruments

type of incoming checks, the accuracy, speed andcarried out throughout the year, where we found that

improving and streamlining internal procedures, into departments, making them responsible for their

the Technical Department with the possibility of asafekeeping and proper use;

greater indirect control over its mechanical suppliers- Entry and final release checks and tests: the(through targeted tests on some supplied products),

improvement will concern the timing of thesewhile to the Engineering/Production department

both to dynamic incoming and to the increased

the tool has allowed greater support during thecontrols carried out upstream with better control andinvestigation of deficiencies of a mechanical nature,monitoring equipment.

during the assembly and testing of machines.The newThis activity will have a further development during2022 the parent company El.En launched a projectto digitise non-compliance processes, with the aimof increasing data traceability, digitising electronic
signatures and facilitating document interchange.
The chosen solution is a web-based software witha powerful workflow engine for Quality Assurance &Compliance with Industry Standards: this software
solution offers a comprehensive approach to quality
management by increasing the transparency ofinternal business processes and making supplierquality management much easier. The solution will

checks, the digitisation of documentation, which
will be managed entirely within the software, andthe possibility of implementing dynamic incoming(application of more or less rigid sampling plans,
automatically suggested by the software, based on
the outcome of previous supplies of the same article/
supplier), which is currently manually updated withworkflows that are currently done manually, and willallow time and resources to be invested in improved

department
control

year,
of

the

“Incoming

El.En. S.p.A. had

Inspection” in fact also used in the prototyping phase by R&D so

been

instrument, an Automatic

greatly
Opticalrepeatability of measurements and has provided

measuring machine enabled to carry out 100% of
the measurements and tests for a given mechanicalpart (whereas previously 25 per cent of the tests werecarried out in a partial manner and 10 per cent were
not even measurable). During the first year of use,

as to intercept problems at the design stage.
During 2022, the department's improvement activities
continued with the introduction of the dynamic
incoming procedure: in the six-monthly review ofmore materials left the inbound control as a result ofdynamic incoming than those for which the control
was introduced: this reduction, of around 29%, is due

the coming year: the introduction of the management
software mentioned in the previous paragraph for
quality will allow the installation of a module thatwill enable the application of more rigid or less rigid
sampling plans, automatically suggested by thereal time; vendor rating to optimise actions towards

to significantly reduce incoming defects on materials

software, based on the outcome of previous supplies

suppliers will also be available in real time;and mechanical parts: the measuring instrument isof the same article/supplier.

- Statistical data module: the software will enable a

product quality and regulatory compliance.
In una prima fase il software gestirà le seguenti aree:- In a first stage, the software will manage the following

better analysis of the different KPIs investigated andimprove the readability of the data available in realtime.

areas:In a second phase,further modules for the management- customer complaint management: the improvementof internal audit activities and supplier audits will bewill concern reducing the timeframe for handling

added to the software.

complaints and creating a report for the customer
following

last

introduction of the new machinery has allowed us

periodic analysis and reporting, adjustments inimprove efficiency by automating many steps in

Alreadytheinternational

standard

8D-report

containing the summary of the complaint analysis,
actions implemented and the effectiveness checks

This

projectwill

increasetheeffectivenessof

the monitoring process and the analysis of nonconformities as it will optimise the processes related tothe quality of our products. Another important aspect

carried out to ensure actual resolution of the problem

related to sustainability issues is that of digitisation,highlighted.

which will allow the elimination of paper use and- management of corrective and preventive actions:the lesser movement of people to carry out checks,

improvement will involve the traceability of activities

controls or document delivery, making informationand their authorisations and timings, as well as data

circulate better.
102

103

Consolidated Non-Financial Statement 2022

4.3 REGULATORY ACTIVITY
In a competitive environment such as the medical

requests and the needs expressed by all thedevice industry, the expertise of experts working

functional areas of the company, following thein the Regulatory Affairs field is of considerable

documentary process and making itself available

economic significance for the company, especiallyfor any documentary requests and additional

if it pursues internationalisation goals in its businessclarifications by the authorities in charge.

strategy.

Regulatory activity today requires the

While research and development works to turnpresence of several players, possibly with different

the concept into a real product, the Regulatory

technical, scientific and administrative backgrounds
and an excellent command of languages as well asa profound knowledge of European, national andeven non-European regulations.
Within the El.En. Group companies operating in the

In previous years,the Chinese subsidiary of Wenzhou Penta Laser Zhejiang,obtained ISO 14001 certification
for the implementation of an environmental management system, with the aim of demonstrating to have
implemented policies and procedures to safeguard the potential negative impacts of its production on
the environment by defining and certifying its processes.
By 2021, the company had obtained two other highly significant certifications: ISO 45001, the international

appropriate regulatory strategies to ensure thestandard for occupational health and safety, to have a defined and certified structure of health andproduct can be marketed.

safety measures to protect employees and visitors by mitigating or eliminating all harmful factors or

From the earliest stages of product design, Regulatory

factors that pose a danger; and ISO 50001, the international standard that helps ensure access to clean,team how the various design choices may influence

documents compliance of our products with theEnvironmental certificationsof Chinese subsidiaries

Affairs department plays an crucial role, suggesting

Affairs specialists must explain to the development

medical sector, the Regulatory Affairs department

Consolidated Non-Financial Statement 2022

reliable and sustainable energy, proposing corrective actions and strategies required to achieve or even
improve energy efficiency: obtaining this certification enables a more appropriate management of thethe path and timing of certification applications toenergy used for company processes, promoting its conscious and waste-free use.

be submitted to the relevant bodies.

Last year, Linyi's Chinese subsidiary Penta Laser Technology Shangdong also obtained two certifications:and efficacy of the industry's products. Medical

For products distributed in international markets, theISO 14001 for the implementation of an environmental management system and ISO 45001 fordevice companies ensure their products comply with

Regulatory Affairs department must also coordinate

occupational health and safety.The company's efforts to obtain these certifications led it to be recognised

current safety regulations.

with the various local partners to define a global

as a company committed to the “conversion from old to new energy” by the Chinese government and to

For this reason, it is highly strategic to have acertification strategy for the product. To be effective

obtain the certificate of “safety production standardization” by the Ministry of Emergency Management ofspecialised office of Regulatory Affairs experts to keepin this role, they must understand the international

the People's Republic of China, representing a manufacturing industry unit focused on the development

products up-to-date with respect to legal requirements,

regulatory requirements which the device will beof sustainable production processes, replicating the 2020 success of Penta Laser Zhejiang, which in 2020

to obtain and manage product certifications, and to

subject to and ensure the product development

was awarded the title of “Green Factory” by the Chinese Ministry of Industry and Information Technology.

ensure the continuous maintenance of conformity byteam takes these requirements into account during

acting as an intermediary between the authorities'

development, testing and validation of the device.

requirements and needs of the governing bodies
that protect public health, and oversees the safety

104

105

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Consolidated Non-Financial Statement 2022

4.4 THE SUPPLY CHAIN

The new MDR regulation

The Group includes production companies serving
The new Regulation (EU) 2017/745 (MDR) regulates the placing of medical devices on the EU market and has
definitively replaced Directive 93/42 /EEC (MDD), as of 26 May 2021. The main changes introduced by the new
regulation were as follows:•

Expansion of the scope to include products that do not have medical indications (such as lasers and pulsed•

trends, monitor the evolution of current and potential

forMedicalsuppliers, their technical upgrading and industry

companies

supplyqualifiedregulations, including on the marketing of theirthemedicaltheirmarket.

products

toproducts sold to us.

have to fulfil the additional requirements of the Common Specifications that were published last December

doctors, etc.) and also through partners served in

The Group operates in a framework of fair competition

2022 (EU REGULATION 2022_2346);

OEM mode, while industrial companies supply theirwith honesty, legality and fairness, respecting theMore stringent requirements for clinical evaluation, with clinical evidence derived exclusively from the device

market by providing their products mainly to end

legitimate interests of all stakeholders; the Group's

itself or other equivalent devices from the same manufacturer;

users.

Code of Ethics contains the principles and rules that

The specifications of the components of our systems

all those who come into contact with the company

are set by our technical departments and, depending

are expected to respect. In supply contracts andon our stringent requirements, the components

in all purchase orders, the counterparty states that

Additional requirements on Post-Market Surveillance, requiring the issuance of a Periodic Safety Update Report(PSUR) by manufacturers, for each class IIb and IIa11 device;•

the medical and industrial sectors and trading
companies

distributors, directly to end customers (medical clinics,

lights for aesthetic applications of hair removal, photorejuvenation and tattoo removal). These devices will also•

carried out on an ongoing basis to capture market

Appointment by each manufacturer of at least one Person Responsible for Regulatory Compliance (PRRC),
who is ultimately responsible for all conformity aspects of products placed on the market with the requirementsof the Regulation;More stringent requirements on the Technical Documentation accompanying medical

can be produced in-house, manufactured to ourit has received the Code of Ethics and accepts it.

products to be produced and maintained by manufacturers;

specifications by qualified external suppliers or

Violation results in termination of the contract and•New obligations and responsibilities for economic operators involved in the supply chain: manufacturer,

purchased from a catalogue.

possible damages.

importer, distributor, authorised representative;•

New mandatory requirements for the unique identification of disposables (UDI);

The simplest stages of component assembly and•Nuovi requisiti obbligatori per l’identificazione univoca dei dispositive (UDI);•

New single European database EUDAMED for the registration of devices and economic operators;•

New classification rules.

Therefore, as of 26 May 2021, any new medical device may only be placed on the EU market if it complies with therequirements of the new MDR regulation. It should be noted that existing medical devices with a valid EC certificate
according to Directive 93/42/EEC may continue to be marketed until 26 May 2024, provided they do not undergo
any significant changes to their design and indications for use.
The MDR regulation will inevitably lead to an increase in the time-to-market and costs of new certifications. On theprocessing can be carried out either in-houseor externally by relying on third-party companies. •Supplies mainly concern production components •and accessories (technical accessories, critical •components, industrial accessories, etc.).
•
Other purchase categories may include office•products, software and computer products, and•shipping packaging. In the area of services, Group
companies use external suppliers for several services,other hand, it may represent an opportunity in terms of a barrier to entry, as only well-structured companies withincluding IT support, technical maintenance, services

sufficient regulatory resources will be able to maintain the new regulatory environment.

of scientific laboratories and certification bodies,
special waste disposal services, advertising and

The companies El.En. SpA or DEKA M.E.L.A. S.r.l. and Quanta System S.p.A. were already CE-certified at the end of

Suppliers are therefore asked to meet certain
requirements:

marketing, financial services and transport services.

financial stability;
experience in the sector;
reliability;
resources and technical and design skills;
production capacity;
adoption of product quality and safety control
systems, consistent with the Group's requirements.

In the selection process and in its relations with
suppliers, the Group assesses, in accordance withinternal procedures and corporate planning, theeconomic viability with reference to the objectives

2021, while Asclepion GmbH and ASA S.r.l. are currently completing the process and certification is expected for

The provision of services strictly related to researchof solvency and long-term profitability, as well as

both in the course of 2023.

and development by highly qualified entities or

the market presence, technical capabilities andprofessionals is not uncommon.

reliability of the interlocutors.

During 2022 at the consolidated level, the value of

In particular, in the Group's production companies,

11
According to the Directive 93/42 and subsequently the MDR 745/2017 Regulation, medical devices are classified into the following risk
classes: I, IIa, IIb, III in increasing order of the risk associated with the device.

106

purchases amounted to EUR 412 million, while third-

the selection of suppliers follows precise qualification

party processing amounted to EUR 30.2 million. The

and approval procedures to ensure product quality

El.En. Group believes that close cooperation with its

and maximum compliance with delivery schedules.

supply chain is essential to achieve higher quality

The procedures provide for a “Supplier Qualification

standards of the finished product and more generally

Request Form” to assess the general level of theof the entire production process. The ultimate goal

supplier's Quality System, with a view to continuous

is to establish a lasting cooperation relationshipimprovement of the aspects that influence the quality

characterised by transparency and collaboration.

of the product or service we purchase; for supplies ofSuppliers must meet minimum safety, quality andgoods, test orders are also issued, which allow us tofinancial soundness requirements in order to minimise

carry out tests directly on the product.

potential operational disruptions and unexpected

In the event that deliveries concern components

costs. Preventive analyses and evaluations are

made to our specifications by subcontractors, i.e.

107Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

suppliers who are part of the production process

We can therefore say that subcontractors of critical

The El.En. Group's trade payables are represented forsupport investments in the territory they belong tobecause they assemble or test our systems orcomponents are only suppliers belonging to our

56% by local suppliers, i.e. suppliers from the Italianas far as possible. In fact, we believe that sourcing

work on certain semi-finished products, they are

qualified supply chain.

territory, for 5% by European suppliers and for 39%

locally is a strategy to ensure faster supplies, withgiven mandatory training by our qualified in-house

In past years, the companies El.En. S.p.A. and Deka

by non-European suppliers: it should be noted thatless environmental impact, that foster a stable local

personnel. Training for suppliers is planned, carried

Mela S.r.l. had already included in the qualificationin this geographical definition of “local”, suppliers

economy and maintain close community relations.

out throughout the year and recorded in an annual

and approval procedure of suppliers of criticalfrom the same territory as the Group's companies

It should be noted that during the 2020 - 2022 three-components the evaluation of certain aspects

not belonging to the European Community are

year period, there were no events that would suggest

related to sustainability issues (Human Resources

considered non-European suppliers. As of next year,

the presence of suppliers in the Group's supply chain

andthe commitment will be to report local suppliers

that represent environmental risks or significant

at their premises.

Corporate

as suppliers present in the same territory as therisks of child, forced or compulsory labour, or where

Governance Management and respect for Humancompany that requested the goods/service, in order

the right to freedom of association and collective

For products or services of a particular nature,

Rights in terms of refusal to employ child labour andto show how one of the Group's commitments is tosuch as services provided by testing laboratories,

bargaining could be at risk.

refusal to use forced or compulsory labour), so that

register. Training is carried out whenever a new
supplier needs to be qualified, in the case of a new
product or substantial changes to an existing product,and in the case of deficiencies found during auditsthequalification

predominantly

and

based

approval
ontheprocedure

analysisofhealthEnvironmental

andsafetysystemsystemmanagement,

management,issustainability KPIs also contribute to the supplier's

theoverall assessment; as of 2022, Asclepion GmbH also

certifications held by the supplier, since the authority

adopted the same checklist.

of the certifications and of the bodies that have issued

Aware that the monitoring of these issues must bethem constitute a guarantee of reliability. Audits at thecarried out throughout the supply chain, procedures

supplier's premises may also be envisaged: once thewere already in place in many subsidiaries in 2021

analysis is complete, the supplier is either accepted

to start assessing the ESG performance of theiror excluded as insufficient in quality based on the

supply chain. At El.En., through management of

results of all tests carried out.

a tool, the main subcontractors were invited to fillOnce suppliers have been judged qualitatively

in a questionnaire that, by analysing the answers,

suitable, periodic evaluations are planned to ensure

gave each supplier a score regarding their social

the required quality standards are maintained:

commitment,these evaluations take into account aspects suchenhancement, good corporate management, andas supplier flexibility, i.e. the ability to adapt torespect for human rights; in addition, questionnaires

the company's needs, timeliness of response andformanagement of unforeseen events, organisational

companies of the Calenzano and Prato Hub and forstructure and punctuality of deliveries, as well as thethe subsidiaries Lasit, Cutlite Do Brasil, Asclepion, andevaluation of the quality of the goods delivered.There

Deka Sarl with the same intent. The three Chinese

are also annual audits to be carried out at certain

subsidiaries and the companies Quanta System, Asa

suppliers by trained internal auditors, either routine or

and With Us included the same questions in their 'New

due to abnormal situations of non-conformity, such

Supplier Checklists' relating to sustainability issues

as a decline in the quality of products or services.

newenvironmental

suppliers

wereprotection

activated

for

and

all

the

(Human Resources and health and safety system

Although we do not provide for audits at ourmanagement, Environmental system management

subcontractors, in our contracts with our suppliers ofand Corporate Governance management andcritical12 components , i.e., components that have an

Respect for Human Rights in terms of refusal to employ

impact on product quality and/or safety, we requirechild labour and refusal to use forced or compulsory

that procurement for components supplied to us only

labour). New suppliers also assessed against the

take place from our direct suppliers or from suppliers

aforementioned topics during 2022 accounted forindicated by us (and thus in fact qualified by us).

20% of the total new suppliers.

Suppliers of critical components are intended as those who supply a component/assembly that has an impact on Patient and/or
Practitioner safety and presents a high risk index, or who offer services related to product quality that have an impact on Patient and/or
Practitioner safety.

12

108

109

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Consolidated Non-Financial Statement 2022

New layouts for the logistics andproduction area of El.En. S.p.A.
In the course of 2022, the parent company El.En. carried out a project to reorganise
the logistics area in order to optimise the space available and to make the flow ofgoods in and out of the area more linear, thus improving daily operations.
In addition to adding new pallet racks to optimise the space available and facilitate
the flow of goods, the areas for the temporary storage of incoming goods, goods
awaiting storage and outgoing goods were expanded.
Furthermore, three new vertical warehouses were installed, two of which replaced
existing but considered obsolete vertical warehouses, for better storage of small partsand faster picking, safety and reliability of storage operations. These warehouses areinterconnected to the company's management system and to the MES (Manufacturing
Execution System) and are part of the latest redesign of the factory in view of Industry
4.0, which began in 2020, with the aim of incorporating 'smart' technologies within
the production processes to advance the evolution of the 'Smart Factory'.
The fleet of radio frequency terminals within the company was replaced with new WiFi terminals in 2022, pursuing the primary goal of facilitating the flow, integration andexchange of information in real time on an IT level. Thanks to this investment, which ispart of Industry 4.0, the use of paper has been reduced in some processes.
Some production areas were also redesigned throughout the year: the dressing area,
the final step of the production lines where the machine is completed, was fitted withnew benches and the environment was harmonised to improve the working qualityof people so that all tools are within easy reach and employees always maintain acorrect posture and continuous fluidity in the work they have to do. A new clean room
for assembling medical sources and laser handpieces has been put into operation
to improve the reliability and performance of the handpieces, and laminar flow
hoods have been installed for use in the machining of opto-mechanical assemblies,
particularly for the assembly of the optical benches of Nd:YAG and Alexandrite laser
systems; the optical components of these assemblies need to be assembled in asterile environment and with strict cleaning procedures, and the laminar flow hood
is a booth that creates such an environment inside, in which assembly or testing
activities can be carried out with the guarantee that the product is protected fromexternal contaminants such as particulates or particle dust.
Further investments (also part of Industry 4.0) are planned throughout 2023 for theelectrical safety test stations carried out at the end of the production lines, with new,faster and higher-performance measuring instruments (safety testers), which will bringadvantages in terms of time reduction thanks to the automation of tests without theconstant presence of an operator, and in terms of complete compatibility between
all equivalent instruments present on each production line, for better managementof any stoppages due to faults or periodic calibrations.

110

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Consolidated Non-Financial Statement 2022

4.5 OUR CUSTOMERS

at the initiative of the sales departments, that theWithin the companies of the Group, training ismaterial

information

periodically provided on consumer protection andthe set of provisions, rules and safeguards, aimed at

preparedoriginates

from

The El.En. Group's innovative capacity is basedor remotely, where classrooms become “virtual”

produced in collaboration with the Clinical Researchon continuous research and experimentation that,through the use of webinar platforms, with interactive

and Practice department and that the technical data,with the development of cutting-edge systems andcollaboration by all participants.

system specifications and clinical application datatechnologies, allows it to provide customers a wide

The Group's training proposal analyses, interprets

range of top-quality products that stand at the top end

and recounts the development of its products in anof the market in terms of innovation and performanceextremely practical manner using highly professional

excellence. The Group also stands out for its attentive

didactic material, produced directly by experts

and

uses

and researchers, and is completed with tablet

increasingly advanced monitoring and response tools.

applications for some companies or with exclusive

One of the distinctive features of the El.En. Group isaccess to “Club” sections of the websites, dedicatedalso represented by having capillary and structured

only to customers and rich in content. The aim is toentities dedicated to marketing and after-sales

important major tools and exclusive communication,

service to respond in a targeted and comprehensive

work and promotion content, such as presentations,manner to customers in specific channels or

manuals, waiting room materials, etc., which translate

geographical areas. All this enables to maintain ainto high value-added tools and services for users all

focus on customer care with a stable, reliable but

over the world.

scrupulous

after-sales

service, which

also flexible organisation with fast response times.

are congruent with the product's technical dossier.

safeguarding consumer rights and interests. And it isthanks to the attention we devote each day to these

After the final review, formal approval by the following

issues that we are able to establish our presence inis required in order to officially issue and make thethe market, offering our customers opportunities foradvertising documentation available to customers:

professional growth, aware that the future will always

Product Manager (PM) for verification of consistency

come from improving knowledge and skills. In fact,with clinical findings and approved indications foruse or applications, Quality Manager for CE marking
and/or other regulatory issues, and relevant SalesManagement for residual aspects, who has the rightour systems are designed to promote the patient's
well-being but also to allow the practitioner's activity
to evolve. The practitioner can always count on high-to the final go-ahead on the document by signingperformance and safe devices and on training thatthe release form M7201-10.

allows him to make the most of all their potential.

With a view to transparency, maximum attention

The discontinuity caused by Covid-19 in previous years

towards customers and to guarantee the accuracy

has accelerated the digital transformation process ofand correctness of any information provided, all

all companies, which are now called upon to rethinkmaterial for the commercial promotion of products

models and revise their resource management(brochures,flyers,catalogues,website,advertisements

strategies, and some areas such as Customer Service,in specialised magazines, videos, etc.) is subject to an

Marketing and Sales must consequently transform

internal approval process before it is disseminated, asthemselves in this respect, because users' needs

it must highlight aspects related to the performance

are increasingly oriented towards an integrated andof our systems.

intelligent service.

The subsidiary company Deka, collaborates with the most important of aesthetic medicine schools in Italy

A specific internal procedure of ISO 9001 called

The operational philosophy pursued by the El.En. “PO-7.2-01.A12

DEKA training school

Customer-related

processes

andGroup is to be close to its customers, making itself

communications” is in place, which stipulates thatavailable in the ways and times that best suit them,material for the commercial promotion of products

including through innovative tools such as Virtual

must highlight aspects related to the sale of the

Booths, organising webinars and making the most

system, the contents of which must be inspired byof live chats. Major changes in recent years in themarket conditions and the technical and clinicalGroup's business models include the strong pushstate of the art of the product. Sales promotion

and for many years has been involved in the dissemination of information related to scientific, clinicaland technological information related to laser devices for medical purposes that it sells. For the training
sessions they involve doctors and specialist on the product and during the classes university students
and professionals in the sector participate and have the opportunity of discussing the issues, applications,
optimization of the laser systems and possible complementary treatments. Every lesson is prepared andset up to achieve the maximum involvement and the greatest interaction with the participants in order toallow the professional to exploit the maximum potential of the laser device.

to focus even further on remote communicationmaterial (brochures, flyers, catalogue, posters, website,

The doctor who uses the laser is, with his training, the determining element for the diagnosis and execution

channels. Although restrictions were still in place inadvertisements in trade magazines, videos, etc.) is tosome countries in early 2022, conference activitiesof the treatment so that our lasers can contribute to the continuous improvement the quality of life of the

all intents and purposes institutional documentation

resumed at full speed during the year, both in Italy

patient and the well being of people.

of the company, related to the product, to theand abroad.

outside world. This documentation is then subject to

The Group is committed to being at the side of its

configuration checks and approval before it is issued

customers and partners, conducting a large number

and disseminated, and supporting documentationof training sessions, organising meetings attended

is archived and subject to internal audits by theby customers or distributors from all over the world

Quality department, which verifies, in addition to theto witness the various procedures for the use of its

existence of formal approvals, that the authorisation

products by doctors and experts in the field in personof any new commercial documentation is prepared

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Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

QUANTA SYSTEM communication

ASCLEPION ACADEMY

The subsidiary Quanta System is one of the El.En. Group companies that has been mostdedicated to the development of its external and internal communication, in order to tell its
story in a transparent and effective manner, especially in these last few years characterised bya strong change, which has altered the paradigms of everyday life.

The "Asclepion ACADEMY" is an initiative of the subsidiary Asclepion Laser Technologies GmbH
which offers to its clients the opportunity to be constantly update on the latest developments oflasers for medical use. For over twenty years they have organized events with the participationof people from all over the world. The objective of the Academy is to promote the developmentof scientific knowledge and the advantages of laser technology to a growing number of people.
Day after day, Asclepion aims to increase the well being of patients and guarantee the successof medical research and its local partners.

In times of uncertainty, between discontinuity and unstable markets, Quanta System works daily
to consolidate its identity and credibility, bringing concrete content consistent with both the
expectations of its customers and the expectations of its own people, telling its story in an
ethical, simple and authentic manner.
The project, which started during the year and will continue in 2023, aims to bring out thecompany's values and commitment to pursuing the goal of comprehensively improving
people's health and well-being in a sustainable way, putting human connections at the centreof all company activities.
The programme includes:- The construction of a new website, which will be designed for a fast and effective user experience,
including the use of augmented reality and features for a more immersive laser experience;- The narration of the Company Profile, through a series of videos (for web/social/internal
channels) that narrate the company in episodes through the words of the CEO and managers;- The unification of corporate communication, through tools used at corporate level and others
more specific to individual divisions;- Creation of a distinctive infographic, through coordinated signs and posters within the offices
as well as in the various common corporate areas, both internal and external;- Search for original, useful and sustainable products for company gadgets and review of
workwear for employees.

114

Training and safety
In order to sustain its clients in the applications of laser technology, they offer training sessions
that last for several days. Besides the standard treatments, they also discuss special cases andlive demonstrations which give people the opportunity to apply in practice the theoreticalknowledge that they have acquired. The Academy also regularly offers courses on laser safety
which cover the physics aspects, the biological effects and the legal regulations of laser devices
for medical use.
Workshops
Besides the events held at the company , they organize workshops in various other cities inGermany as well as in Austria and Switzerland. The events are conducted with the support of
doctors with multi- year experience who are able to present a wide panorama of cases inmedicine and aesthetics.
Webinar
Using webinar they are able to offer to clients all over the world numerous opportunities fortraining and instruction. During the events it is possible to interact and receive importantsuggestions for the execution of the treatment and also to ask questions and start discussions.
Afterwards, the participants can download the video of the webinar or watch it on the You Tube
channel of the company.

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Consolidated Non-Financial Statement 2022

The Group also ensures that attention is paid to

The El.En Group is actively dedicated to theimproving customer satisfaction through Customer

continuous improvement of flows and processes

Satisfaction

appropriate

in the after-sales stage: of particular importance iscompany indicators, administering questionnaires

the role of Service, crucial in the relationship of truston the surveys carried out rather than through thebetween companies and their customers.

surveysbymonitoring

analysis of deficiencies.

The El.En. Group's distribution network is designed

Customer satisfaction goes hand in hand withto meet the technical support needs of products

the drive for innovation and sustainability and isdirectly in the countries where the end customers are

determined by a combination of factors: from thecharacteristics of the product to the evaluation of
the service received and the relationship with thecompany in terms of quality delivered and perceived.
Customer experience is measured on a daily basis

located, which is why most Distributors are equippedwith a team of trained technicians, supported by theService Departments at headquarters, who maintainsupervision and provide support on interventions. In
order to better follow the needs of technical training

through feedback obtained during dialogues withfor distributors and allow them to keep up to datecustomers in which opinions, comments, expressions

with innovations, the major Group companies haveof interest in a product or service, or in interactions

equipped themselves with specific training rooms

with both internal and external sales representatives

for this purpose. In addition to filming equipment,

are collected.

the rooms were fitted with specific lighting systems

For a more specific survey, customers are provided withto eliminate shadow areas as much as possible andseveral communication channels in which they canreport their feedback: the Customer Satisfaction Survey(CSS), a survey carried out in most Group companies
on an annual basis, the Complaint Management
process, the analysis of service reports and post-market

ensure maximum visibility and brightness even ofminor details.
The parent company El.En. developed a newservice portal a few years ago, which is used forreliability, and other methods of analysis that may

the management and supervision of technicalinclude market research and trend analysis.

interventions, support for the dispatch of spare parts
and the request for repairs, and for the control of

Each form of interaction with customers provides an

distributor equipment. This tool, which ensures anopportunity to create value, as it is only by identifying

improvement in service as it develops synergies

the current and future needs of customers that wewill be able to intercept possible growth opportunities

with distributors, is connected to the company's

and fully understand the adherence of our products

management system and this link allows post-

to market expectations.

market traceability of medical devices, a deeper

An additional tool useful for improving customer
satisfaction is post-market reliability analysis,the purpose

understanding of problems in the field, the downloadof technical manuals, the integration of systemof which is to identify any defect trends and immediately

information and spare part codes as well as real-

proposeresolution.

time monitoring of the progress of service reports.

Verification allows any deviations to be detected in

It also allows real-time monitoring of the status ofa timely manner, provided that individual reports ofpost-market reliability on an aggregate basis orcomplaints, incidents or adverse events are quickly dealt

analytically by product. The web portal also enables

with on a case-by-case basis (for improvements on thisservice management from mobile devices, andaspect, please refer to Section 4.2 The Quality and safety

further system developments are planned duringof our products, of this document).

2023 to make the entire process paperless.

suitablecountermeasures

Consolidated Non-Financial Statement 2022

for

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OUR BUSINESSTHE LASER
AS A SUSTAINABLE TOOL

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

5. OUR BUSINESS
5.1 USES AND BENEFITS OF LASER IN THE MEDICALSECTOR
The use of our medical and aesthetic lasers and the continued commitment
we dedicate to research and development of new or improved applications
generates a series of indirect social impacts which are transformed into
benefits both for the patient and for the local community.

With our laser systems for the medical and aesthetic

cauterizing effect of the laser. The laser treatments

field we have placed at the disposal of the market

make it possible to avoid deep cuts in the skin andinstruments and solutions which improve the welfare

the advantage of this is represented by the fact thatof people and the quality of life of patients by reducing

no scaring of loss of elasticity in the skin occurs; thishealth issues of both a physical and aesthetic nature,

is an important advantage, especially in the more

and the those of a psychological nature associateddelicate parts of the body. In the last few years, it haswith them. The laser is, in fact, a device which, thanks

been demonstrated that laser treatments are the mostto its inherent selectivity treats the pathologies byeffective non-surgical and non-pharmacologicalmaximizing the effectiveness of the interaction andsolution to prevent and to treat vaginal atrophy andminimizing the collateral effects of the treatments.

its consequences: lack of nourishment and hydration

If we consider, for example, the surgical sector, theof the cells of the vaginal mucous in fact comportequipment that has been conceived and developed

dryness, burning and discomfort and negatively

by the Group for minimally invasive surgery has

influence the relations and the self-esteem of thebrought about an improvem nt in the quality of life

patients, both when the symptoms are due to genital

for the patients in terms of a greater recovery ofand urological issues typical of natural menopause

healthy tissue , less risk because of the reduction orthem an insurmountable problem. Thanks to laser

eliminated by controlled abrasion of the skin usedtechnology, these pathologies or imperfections canalong with acid substances. The situation is different

be treated in a manner that is effective, painless,for deep spots where the laser is the only techniquenoninvasive and increasingly economical.

available.

or induced after oncological therapies as well as

The improvements in the welfare of the patients are

The quality of life is influenced also by the aesthetic

elimination of local anesthetics and a reduction in

those due to post-partum ipoestrogenization.

evident also for vascular anomalies like infantile

image that people have of themselves even when no

post-operative recovery time, since the sutures

The elimination of major imperfections like hirsutism,or congenital angiomas: besides being highly

pathological imperfections are present.This fact is theare reduced. The types of operations which canangiomas, acne, rosacea, psoriasis, large scars,

visible, these imperfections can disturb the normal

reason that there are so many request for aesthetic

performed with lasers, in fact, do not require incisionsetc.) using our laser devices has made it possiblefunctioning of a person or cause discomfort; the laser

and medical treatments from a population thator the use of scalpels, and the laser beam can be

for many people, both on a family surrounding andrepresents a valid alternative to the pharmacologicalincreasingly wishes to improve their appearance; indirected remotely using sub-millimetric optical fibers

in society, in childhood as well as adulthood, to findtherapies with respect to which it also has thetoday's society the aesthetic image plays andwhich offer greater facility of use to the medicala harmonious balance of acceptance and dignity

advantage of preserving the integrity of the tissues; inincreasingly important role and if you are not able

fact the laser treatment selectively dries up the blood

to come close to the common standards yourbeing pathologies that are often uncomfortable orcomponent which then slowly deflates until

dissatisfaction with yourself increases.

painful, for many people living with a part of theirit has completely disappeared. Also in the case ofOver

body, especially a highly visible one, that is affectedskin discolorations, besides having an important

growingby apparent imperfections can also have important

preventive action, the use of the laser makes itto thedevelopment of devices to be used forpsychological repercussions. Some lesions create

possible to save the skin from the aggressivenessaestheticmedicine, for skin rejuvenation of the facestrong emotional reactions in the people that are

by vaporizing rather than cutting the tissues andof the acids that are traditionally used and to solve

throughanti-wrinkle

affected and create difficulty for them in personalin this way eliminating only the existing cutaneous

one problem without creating another. In the case of

skindiscolorations (age spots, etc) to improve therelations because they do not feel at ease with theirlesion and saving the tissue surrounding the lesion,

superficial discolorations the laser strikes selectively

skinappearance or obtain facial firming, rather thanown body or suffer from depression because they are

all of which takes place without bleeding due to thewithout destroying the surrounding tissue while,

themodeling of the body or hair removal. In order to

not able to accept the imperfections and consider

with traditional techniques the discoloration wasmeet the different requirements of patients, the El.En.

from other members of the community. Besides

personnel.
Oursystems

offer

enormousadvantages

andimprovements for the welfare of the patients also
in the dermatological surgery sector where, if we
consider, for example, skin surgery applied to mucous,
the laser has revolutionized the traditional approach

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121

the

years

the

financial

and

Group

has

dedicatedmanagerial

resources

treatments

andremovalofConsolidated Non-Financial Statement 2022

Group has created numerous types of lasers

the posture. Besides this new technology, for manyin order to treat effectively is wide variety of issues

years the Group has been using systems for the

related to the rejuvenation of the skin with emissions

removal of localized fat deposits with laser-lipolysis, acharacterized by wave length, duration of impulse

minimally invasive treatment which makes it possible

and different levels of power. With laser treatments

to treat specific areas of the body, even very delicate

the most immediate benefit is the reduction of theones, for which traditional liposuction is not advised.

recovery time for the patient respect to traditional

In the sector of lasers for hair removal, the Group has

aesthetic

developed and engineered systems since the end of

surgery; as far as the general mid-term effectiveness is

1990s and continually improved their performance;

concerned, the laser creates controlled micro-lesions,

our lasers, in fact, are able to remove even the finest

which stimulate the organism to produce new tissue

hairs from every type of skin, even the darkest andand, in this way, the intrinsic potential of the body,tannest and the treatments are very rapid in orderand triggering a natural and gradual rejuvenation.

to meet the requirements of our clientele who

The impact of these treatments from a psychologicalincreasingly has less time available, and the operators

point of view is very positive because people do not

who in this way are able to optimize their performance

perceive the change immediately but day after day

thanks to the productivity of the equipment.

and they gradually get use to their new appearance.

Tattoo removal is a segment in which the GroupIn the sector of body contouring the developments

has recently launched innovative systems and isin recent years have been very important, with thepart of the area of the aesthetic image that one

release on the market first of Onda, the first system inhas of oneself: in today's society tattoos represent a

the world which, by means of the emission of special

language of aggregation. They contain a message, amicrowaves treats cellulitis, adiposity and cutaneous

memory, but for many people they are part of a past

laxity and reduces the layer of subcutaneous fat withthat they wish to cancel: thanks to laser technology,

a non-invasive treatment which can be repeatedthe particles that contain the ink used for the tattoo

soon afterwards, and which creates benefits thatare shattered and removed through the lymphatic

are immediately visible and long-lasting over time,system during the weeks following the treatment

and then, in 2020 with the release on the market ofleaving the tissues unaltered. It should be noted that

Schwarzy, a system for the reduction of fat by meansin the eastern hemisphere the technology that isof an electro- magnetic field which interacts with theused in the West to remove tattoos is considered an

muscular tissue by activating their contraction.

anti-aging treatment because it is effectively used to

Schwarzy acts on different areas of the body andremove the pigmented lesions that characterize theafter a few sessions, localized fat, tones and createsskin of the elderly in oriental countries.

volume in the muscles and also improves the look ofConsolidated Non-Financial Statement 2022

5.2 USES AND BENEFITS OF LASERIN THE INDUSTRIAL SECTOR
The laser systems that we produce for the industrial sector can be adapted
for multiple uses and can be applied to many different types of materials.
The final result that is obtained makes lasers preferable to alternative
solutions because they avoid the need for further processing and perform
cutting, incisions and marking with extreme precision.
Processing executed by a laser is particularly desirable

unique and "speaking" object: the use of a laserfrom a point of view of sustainability because ofwith respect to traditional technologies in this typeseveral factors which make it possible to reduce theof processing makes it possible to avoid the use ofamount of waste by instantly vaporizing the material

glues and to avoid the use of different dies for every

on which they are working and by making clean cuts

different label. The savings on the dies is economical

without producing chips or other processing waste.

especially for the processing of small lots, or for flexible

Our marking systems also make it possible to makeproduction systems, as is increasingly requested by

perforations, grey tones and selective removal of thethe changeability of the demand and the need tothickness of the material, thus reducing waste. The

personalize the products.

use of the laser does not comport contact between

Lasers are used successfully also for prevention of

the parts and therefore avoids the risk of deformationor accidental breaking as well as tool wear which,consequently would produce more waste material.

that is always original, univocal and easily up-dated:
the personalization can be changed continually toMoreover, since the laser is managed digitally bycreate new holograms which make the paper three-software, the movements that are made are precise

dimensional and make reproduction even more

and the cuts are matched perfectly, thus reducing thedifficult.

scrap that is left using traditional cutting technologies.

In the sector of textiles for jeans the laser technology

The reconfiguration of the processes simply using a

has been revolutionary; the laser system for cutting

reprogramming of the software makes it possible toand marking in fact makes it possible to cut andsave on accessory equipment because new diesbleach the fabric at the same time which offers anfor each process are no longer required, nor are

alternative to the traditional technologies whichparts of material that sustain the dies or the cutting

is fast, precise and above all, ecological, because

instrument. Laser processing, moreover, do not add

it does not require the use of chemicals for the

any pollutants and the fumes produced during thebleaching, it does not produce polluting waste

processing do not contain chemical additives; formaterials and, above all, it improves the quality ofmarking laser systems make it possible to avoid thelife of the workers because it replaces the obsolete

use of inks and solvents on fabrics and leathers, withtechnologies with which the fabric was aged using a

all of the problems inherent in the disposal of thesesanding process with silica powders (potentially very

substances.

harmful to human health) or else by subjecting the

Our laser systems are also used for marking bar codes,

fabric to a “stone wash” with the addition of chemical

serial numbers, logos on plastic materials even a
microscopic scale, to cut objects in metacrylate andother acrylates, but also for the processing of somelabels to improve the insertion of RFID devices which

122

counterfeiting because they can mark paper in a way

substances or with “sanding”, an exhausting process
for the worker who had to do it and effective only withthe use of large quantities of abrasive and chemicalmaterials with a high environmental impact because

are activated by radio frequency and are able tothey were harmful and difficult to discard.

read information, which are used, for example, in the

The use of lasers is also very effective for the removal offield of high fashion to recognize a garment where

paint from helicopters and airplanes as well as ships

the label is attached which in this way becomes abecause it makes it possible to reduce the amount123

Consolidated Non-Financial Statement 2022

of maintenance with a significant reduction in thetimes required since it can be conducted on the spot,
but also for the reduction in the use of the chemical
substances used which otherwise would have to bedisposed of, with the consequent reduction of theenvironmental impact.
In the food sector, the use of special lasers in manycases makes it possible to replace labels which show

applications for laser piercing of both rigid andflexible packaging systems which in this way
improve their function of preservation of foods byregulating the exchange of water between the foodand the outside, while taking advantage of thedigital simplicity which permits the modification of
the geometrical characteristics of the holes for the
production of different lots.

which respects the organoleptic qualities of the food.

We are very proud for having contributed on thismarket to the development of processes which are
more respectful of the environment and we believe

In this same sector we are now developing somethat all industries should become more sustainable.

the logo and production lot with a indelible laser markConsolidated Non-Financial Statement 2022

5.3 PRESERVING THE WORLD’S ARTISTIC HERITAGE
The beauty of works of art is our legacy for future generations and wehave a duty to preserve it for them. We are therefore proud to be the firstin the world to present lasers specifically for art restoration operations,using the same technology used in medicine and surgery. Whether weare restoring works of art or medicine, we can say that we respond to thesame principle: caring for people, our masterpieces
One of the flagships of the El.En. Group is the small

wishes to achieve (a high degree of selectivity since

restoration segment; sensitivity to the preservation

the layers to be removed are very dark in colour andof artistic heritage has grown over time within

therefore absorb a high percentage of the laser light)

the Group and has inspired research to provide

and great precision as a well-defined area on which

advanced technologies for the conservation andto carry out the work can be set, without in any way

restoration of some of the world's most important

affecting the surrounding area.

artistic masterpieces. The Group also never ceases toexperiment with new technologies that can provide
increasingly effective conservation processes that
respect artistic artefacts. In fact, lasers provide aneffective, reliable and safe solution to preserve thecultural heritage, which year after year is increasingly
integrated into restoration work in Italy and aroundthe world. Laser technology enables to remove
layers of decay formed over the centuries with a
non-invasive, extremely selective and controllable
procedure, rediscovering and respecting the patina
of time so the public may once again admire art
masterpieces at their best. This technology is also
particularly useful in reducing the use of chemicals
that have to be disposed of, even with special and

The laser has been successfully used on several
monuments and works of art, both Italian andEuropean; some of the most note-worthy sites where
El.En. Group's lasers have been employed include
the Duomo of Milan and the Cathedral of Florence,cleaning the Gates of Paradise and Ghiberti's North
Door of the Baptistery of San Giovanni in Florence, thesculptural group of the Rape of the Sabine Women by
Giambologna in Piazza della Signoria in Florence, thebas-reliefs of SS. Sepulchre in Jerusalem, the cloisterof Oviedo Cathedral, the Leaning Tower and Pisa
Cathedral.
Some of the most significant interventions carried out
during 2022 with our lasers include:

expensive procedures.

•

Spalato Cathedral

The laser solution provides the restorer with a high-•Borromeo Palace- Lake Maggioretech instrument that allows them to work in complete•

Underground Basilica of Porta Maggiore - Romesafety with considerable advantages over commonly•

Cleaning of plaster statues in the Santa Giulia
Museum - Brescia

used mechanical or chemical methods: first of all,minimal invasiveness due to the absence of physical•Basilica of Maxentius Romecontact with the surface on which the work is carried•

Cleaning of Candoglia marble statues from
Milan Cathedralout, allows one to operate even on extremely fragile

124

or highly altered surfaces; a high degree of control•

Porta dei Cornacchini - Florence Cathedralallows one to define the degree of cleaning one•

San Siro Hot Springs - Milan

125Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

5.4 OUR CONTRIBUTION TO THE COMMUNITYAt El.En. we strive each day to ensure our work has a positive impact on
people's health. Our strategy in social work is to provide skills, knowledge
and tools, with the dual aim of facilitating access to care and improving
health care for vulnerable people and those most disadvantaged aroundthe world and to increase scientific knowledge: we work for science and ahealthier world.

A LASER FOR THE CITY OF SIENA
El.En. sponsored the restoration of Tito Sarrocchi's “Monumento ai caduti per l'indipendenza” (Monument
to the Fallen for Independence) in the San Prospero gardens in Siena, providing its Thunder Compact
laser system for the removal of black crusts formed on the monument. In fact, the monument was in avery poor state of preservation and was marked by different forms of decay: this required work according
to the most advanced techniques and using state-of-the-art materials and tools.
The sponsorship took place as part of the “Una donna di nome Italia” (A woman named Italy) projectof the Scuola Edile Senese, selected as part of the “Let's Art” initiative promoted by the Monte dei Paschi

One of the ways we work in the social field is to

In 2022, the El.En. Group donated a dual-wavelength

support non-profit organisations, foundations andlaser system for gynaecological treatments and a

cutting-edge scientific laboratories around the world

medical chair intended mainly for the treatment

with specific donations, accompanying them in theuse of new technologies in the service of patient
health, as well as in the conservation and restorationof cultural heritage.

di Siena bank.

of urinary incontinence and vulvodynia, with a
total value of approximately EUR 124,000. The
willingness of the El.En. Group to make its tools, skills
and knowledge available is reflected in the formal
commitment reported in objective 12 “Support to

GALLI HOUSE FOR UKRAINEOver the years, we have donated our medical systems

non-profit organisations, foundations and scientific

to several hospitals: the State Hospital of the Republiclaboratories” within the Sustainability Plan, where saidof San Marino, the Careggi Hospital and the Meyer

support is to be provided on a yearly basis throughIn 2022, the subsidiary Giovanni Galli S.r.l., following the escalation of violence and the humanitarianChildren's Hospital in Florence, the Moshi Medical

donations or loans for the free use of laser systems

emergency in Ukraine, wished to provide concrete aid and support to respond to the multiple emergencies

for medicine and aesthetics or for the conservationand needs of the population, by granting, as a temporary free loan for residential use only, the property it

Centre in Tanzania, the Pediatric Outpatients Clinics
inSt. Albert's, MaryMount, St. Rupert's and Chitsungo
Mission

Hospitals

in

Zimbabwe,

theMondinoFoundation National Neurological Institute IRCCS,
the Valduce Hospital, the Bambin Gesù Children's
Hospital and the Gemelli Hospital in Rome.

of works of art, with the aim of facilitating accessto treatment and improving health care for thefragile and most disadvantaged people worldwide

families.

or contributing to the conservation of the World Art
Heritage. The achievement of this goal, approved in2018 by the Board of Directors of El.En. S.p.A., is also

And donations of our lasers were also made to thelinked to a percentage of 30% of the salary of the

Vatican for the restoration of marble sculptures, busts,

Board of Directors and the General Manager. The

fountains and statues, as well as to the Uffizi Gallery
and the Archaeological Museum in Florence for the
restoration of paintings and sculptures, and also toother museums, such as the MET in New York and
the Paul Getty Museum in Los Angeles, as well as toassociations such as “Gli Angeli del bello” in Florence
to clean up graffiti in the city.

owned to an association that provides aid to Ukrainian refugees to allow the initial reception of refugeeequipment to be donated is identified on a case-

TWO LASERS FOR SAN MARINO HOSPITAL

by-case basis by assessing the validity of the project
proposed. Monitoring activities are then carried out to

In 2022, the El.En. Group donated an innovative gynaecological instrument, “Dr. Arnold”, to the State

verify the correct use of the systems and accessories

Hospital of the Republic of San Marino, used for the treatment of urinary incontinence and vulvodynia,

and to understand how our skills, knowledge andand a “Duoglide” dual-wavelength laser system, also for the Obstetrics and Gynaecology Department.

equipment have contributed to access to care and

The donation of these two systems enables further expansion of the range of interventions and therapies

improved healthcare for people with disabilities andthose most disadvantaged around the world.

that can be provided within the State Hospital for women's health in general and intimate health inparticular. Pathologies and symptoms such as vulvodynia and urinary incontinence have negative
effects on people's quality of life, however with these innovative systems, significant improvements
can be achieved within a few weeks. We are proud to reiterate and emphasise that the importance oftechnological innovation, combined with adequate professional training, are fundamental requirements
to ensure the best available therapies, bringing benefits to the health of individuals and also to thecommunity as a whole.

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Consolidated Non-Financial Statement 2022

ASA LASER - ENERGY FOR HEALTHAND THE VALUE OF SHARINGThe evolution of ASA's biomedical technologies passes through continuous experimentation: a free,open and ethical activity in which the rigour of science marries the needs of production, helping toconstantly improve devices and increase therapeutic results. All in the name of sharing.
The company's commitment to disseminating scientific knowledge and promoting the culture oflaser therapy and magnetotherapy finds its synthesis in “Energy for Health”, a magazine published by
ASAcampus (Joint Laboratory between ASA's Research Division and the Department of Experimental andClinical Biomedical Sciences of the University of Florence) which presents the results of basic researchand clinical studies carried out in Italy and abroad by internationally renowned researchers, doctors
and specialists. In the more than 10 years since it was first published, “Energy for Health”, distributed
worldwide, provided free of charge during company courses and conferences and on request online,
has become a space for open discussion, a natural meeting point for exchanging experiences andknowledge.
The numerous scientific papers published using ASA technologies (195 to the end of 2021) can beviewed publicly in the “ASA Research Library” section of the company website. A wealth of knowledge,
available to all.

BIG ACADEMYBig Academy is a high-level training programme designed for managers in the energy, mechanics,
optics, electronics and IT sectors, working in small and medium-sized manufacturing companies as wellas in large industrial enterprises. A course whose objective is to transfer the ability to read and interpretthe ever-changing global economic context to tomorrow's managers and company directors. The
training plan is the result of collaboration between university lecturers from the areas of social sciences,economics and management engineering and professionals from large-scale businesses: lectures areco-taught by university lecturers and top company managers, so that more theoretical and scientificparts alternate with real-life experience and a clear overview of how one operates in large international
companies. This year El.En. S.p.A. is also part of the five companies that have participated since 2020,
together with the University of Florence, in creating and defining this training course. This partnership,
which binds companies, the University and the Public Administration, is the distinctive feature of theinitiative, representing its unique, innovative character, with a territorial vocation but with an international
scope and significant prospects for growth over time, and is a further demonstration of our Group’s
renewed commitment to supporting cultural, social and educational initiatives in its territory.

128

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Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

LASERS FOR RESTORATION
The activities carried out with our laser systems in the conservation sector resulted in several interventions
during 2022:“San Marco” – Donatello: The work exhibited alteration phenomena typical of prolonged time spent
outdoors: the deposition of atmospheric particles had made the marble's appearance darker anddarker, and the presence of residual substances, due to the making of a cast, had changed its hue. The
EOS 1000 LQS laser was used by the restorers of the Opificio delle Pietre Dure to rid the sculpture of theresidues of the old “faux bronze” patina still present on the stone surface in a punctual and selective
manner whilst respecting the gilding traces.
"Casa degli Omenoni' – Milan: Palazzo Leoni-Calchi, at no. 3 Via degli Omenoni, is known as the “Casaof the Omenoni” precisely because its façade, one of the most iconic and curious in the city of Milan,features eight imposing statues on the ground floor, the “telamones”, which face the street from the
façade of the building. These majestic male sculptures that adorn and decorate the building are
inspired by the statues of ancient Rome and represent the lineages of defeated barbarians. The ThunderCompact laser was used by the restorer to remove encrustations of various kinds from the surface of the
sculptures.
Frescoes in the “Throne Room” – Palace of the Principality of Monaco: In the Throne Room of the Palace

Moreover, the Group has always been committed •school-to-work projects involving local school

to supporting cultural, social and educational

students and thus allowing them to learn withinof the Principality of Monaco, two different laser systems (EOS QS and EOS 1000 LQS) were used for the

initiatives in favour of the local community with thea work situation, integrating theoretical aspects

restoration of a cycle of Italian frescoes, almost certainly of the Genoese school, which were concealedwith practical ones; in fact, it is important toby a layer of plaster: the lasers enabled the surface removal and subsequent finishing of the cleaning.

approach young people from secondary school

The laser restoration was carried out with a view to an environmentally sustainable operation, as expressly

aim of strengthening the relationship with the territoryin which it operates and with the people directly or

onwards in order to foster their orientation andindirectly affected by the Group's activities. The basic
idea consists in the promotion of a mutual andpositive exchange between the Group and the local

approach to the world of work;•community, which benefits both parties involved in
the projects and activities developed.
All Group companies consider the collaborative
relationshipestablishedwithhighereducation

requested by Prince Albert II.

participation in career day events, open days

"Basilica di San Miniato a Monte" – Florence: El.En. provided the EOS 1000 LQS laser system free of chargeof mutual exchange between companies andfor cleaning the marble of the presbytery area and the mosaic of the apsidal basin of the Basilica ofrecent graduate students seeking their first job.

San Miniato a Monte. Laser ablation has proven to be the most effective method for removing the most

In 2022, with the Tuscany Region – with El.En. we

cohesive dirt from artefact surfaces. The restoration was made possible thanks to the sponsorship of theparticipated in a call for advanced training

non-profit association “Friends of Florence”.

projects through the activation of research"Reggia di Portici" – Naples: The Royal Palace of Portici in Naples, the summer residence of the Bourbon

institutions and universities in the various territories incheques,which they operate as essential to their talent search

Diagnostics and preservation of Daguerreotypes

royal family, was the focus of major restoration work. The Infinito 100W and EOS QS laser systems wereand selection process. Maintaining these channels isand other photographic materials lasting 24

used to bring to light the stucco decorations that adorn the vaults of the rooms and that had been

crucial to increase the opportunities to get to know

months starting in July 2022, partnership with thecovered, a hundred years ago, by paint and lime when these rooms were changed in their use.

operates:
andextra-curricular

Non-Invasive

Pietre Dure and the Museo Galileo. The projectand scientific skills in the territories where the Groupcurricular

DIAGNOSE:

CNR National Institute of Optics, the Opificio dellepeople and to promote the development of technical•project

university

traineeships;“Vienna National Library”: Europe's largest Baroque library holds more than 200,000 historical books

aims to propose innovative solutions to thearranged on richly decorated wooden shelves. The numerous gildings, stucco, marble, stone and metalconservation problems of photographic assets

decorations and all wooden bookcases were restored in 2022. The wooden surfaces were deep-cleaned

also arising from their structural complexity andwith the Infinito 100W laser, which enabled to leave the books in their original position. El.En.'s “Light For

material fragility.

Art” division with its lasers increasingly affirms itself as the international benchmark for conservation andrestoration worldwide for the thorough cleaning of the artistic and cultural heritage.Thanks to continuous

130

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Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

study and optimisation work, in collaboration with national and international research institutes, El.En.
offers the widest range of laser systems dedicated to this specific application. We are now able to meet
every need, allowing restorers to successfully tackle multiple conservation problems.
Parallel to all these activities, there has been a considerable increase in the training of operators in the
sector, not only to provide better and more information on the potential of this technology, but above all
to comply with the new regulations. In this regard the parent company El.En. S.p.A. is the largest private
national reference for the conservation sector.
The Light for Art staff held the “Laser Operator Safety Course” every two months, both online and inperson; several courses on the use of lasers for cleaning cultural heritage were also held at major
national institutions such as SAF ICR (Istituto Centrale per il Restauro) in Rome and Matera, Opificiodelle Pietre Dure in Florence, Soprintendenza Speciale in Rome, Accademia di Belle Arti di Brera and theCentro Regionale per il Restauro in Palermo. A course was also held in Paris at the INP – Institut Nationalde Patrimoine.
In 2022, approximately 220 restorers participated in the courses we promoted.

132

133

PEOPLEPASSION AND TALENTTO GROW TOGETHERConsolidated Non-Financial Statement 2022

6. PEOPLE
El.En. firmly believes that human resources are the company's mostsignificant asset. The ability to innovate and pursue excellence depends
on the people and employees involved in all activities and is the resultof the specialisation, skills and passion that characterise all the people
working in the Group.
For El.En., people come first as it is only through

The Parent Company, in particular, carried out

the growth of individual skills and a stimulating

a thorough job of codifying human resources

environment that facilitates their exchange andmanagement procedures (recruitment, remuneration,

collaboration that the collective growth of the Groupetc.) as well as profiling corporate functions withand the creation of shared value is achieved. This

the identification of the necessary responsibilities

is why the Group promotes the skill growth andand skills. Based on these, ad hoc training plans areenhancement of all employees each day, a true

then drawn up to meet the training needs of eachcompetitive advantage and the basis of the ability toindividual.

innovate and pursue excellence.

compared to 1,902 last year, and together we form a

its commitment to respect and protect the dignity,

growing international Group, called upon to operate

health, safety and privacy of its employees andyear, these

25%

2.105

UNDER 30PEOPLE+203

GROWTH IN NUMBER
OF EMPLOYEES IN 2022

As of 31 December 2022, we count 2,105 people

The El.En. Group has codified in the Code of Ethics

collaborators. Last

Consolidated Non-Financial Statement 2022

concepts

wereexpressed even more vigorously in the Human Rights
Policy, which was adopted by all subsidiaries anddisseminated to all Group employees.

in highly diverse contexts on the global stage. Ours
is a multicultural team: out of 100 people in the El.En.
Group, 45 work in Italy, 42 in China, 8 in Germany
and what remains is distributed among Japan, Brazil,
Poland, Spain and France.

In particular, the Group aims to protect the physicaland moral integrity of workers by informing them of theirrights and of the risks they might incur in performing
their work, and by ensuring working conditions that
respect individual dignity, in accordance with current
local legislation. Attention to human resources is also

The Group's workforce is predominantly young, 61%of employees are in the age group between 30 and
50, 25% of employees are under 30, and 14% are over50.
The ability to attract talented people in terms ofa major issue within the quality management system,

experience and skills is reflected both in the growthwhich most of the Group's production companiesof the workforce, with a positive balance of 203 newhave adopted in accordance with ISO 9001. On thepeople compared to the previous year, and in thebasis of the latter's prescriptions, in fact, the certified

highly professional and qualified team, with 90% ofcompanies were in charge of overseeing issues suchthe company's workforce possessing a medium-highas selection, training, skills development and thelevel of education and more than 52% holding adefinition of function responsibilities.

university degree.

136

137

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

As already stated in the previous chapter in section

is considered; the markedly productive nature of

5.4 “Our contribution to the community”, the Group's

the Group's activities determines, in fact, a higher

companies consider the collaborative relationshipincidence of male workers in the blue-collar category.

established with higher education institutions andWith this in mind, the El.En. Group has started auniversities in the various territories in which theyscreening and monitoring process as of 2021

operate to be essential to their talent search andregarding (i) spontaneous applications received, (ii)selection

channelsinterviews conducted and (iii) actual hires broken

is crucial to increase the opportunities to get todown by department and gender in order to checkknow people and to promote the development of

whether the percentage of female hires is in line

technical and scientific skills in the territories wherewith the percentage of women who have applied

process. Maintaining

these

the companies operate.

45%

190
REST OFEUROPE

947
ITALY

9%

and been interviewed. The data shows that in 2022,

Chinese companies in Wuhan and Wenzhou havespontaneous applications received from womenalready been carrying out an anonymous survey

accounted for approximately 19% of all applicationsof all employees in December for several years, thereceived. These were followed by 1,876 interviews,

results of which are processed and handed over to

374 of which were carried out by women: this figure,management,in order to collect suggestions,opinions

equal to 20% of the total number of interviews carried

and anonymous evaluations on the company climate

out, is in line with the applications received. The

and the motivational level of people and thus obtain

Group finalised 677 recruitments during the year, ofanonymous judgements that may help improve thewhich 137 were women (20% of the total).

ability to retain resources and the internal climate. In
the course of 2022, the parent company El.En. and its
subsidiary Quanta System also carried out a Survey
for a part of the corporate population. A total of 788
employees were involved in this process (Wuhan 147- Wenzhou 393 - Quanta 212 - Elen 36).
During the coming year, this activity will also beoffered to other Group subsidiaries.

The

analyseddata

therefore

confirm

that

968
REST OFWORLD

46%
Distribution of employees by geographic areathepercentage of female interviews and hirings carried out

and by gender as of December 31st 2022

is in line with the spontaneous applications received.

Men

The parent company El.En., with the intention of taking
further steps in the process of promoting genderequality in 2022, approved the “Diversity Policy”
which has been implemented by the subsidiaries
and disseminated to employees; in some cases

The Group recognises the need to value principles

the Policy has already been translated into local

such as the integration of diversity and genderlanguages and approved. At the end of the year,

equality as forms of protection of the individual in thea training programme on El.En. Group Policy was

workplace: these values are promoted in the Codecarried out in order to increase people's awarenessof Ethics, in which all Group companies undertake toof the issues involved, and then an in-depth study was

ensure their employees are treated fairly and valued.

also conducted on Diversity issues, which reached

Women make up 23% of the workforce, a figure

899 Group employees (43% of the entire company

that rises to 32% if only the white-collar category

population).

Italy
2021

43%

44%

77%

Europe

8%

2021

8%

Rest of
World

Women
Italy
2021

46%

48%

23%

2021

49%

48%
Europe14%

Rest of
World

38%
138

139

2021

12%

2021

41%

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

The Group's focus on diversity and inclusion is alsotransfer and termination. Equally important forparticular, in Italy the Contratto Collettivo Nazionale

were persons in the 30-50 age bracket and 27 werereflected in the inclusion of differently-abled resources

creating an inclusive work environment are thedi Lavoro (National Collective Labour Agreement)

persons over 50. 28% of the new hires were at Italianin the companies, in accordance with applicable

initiatives promoted to facilitate work-life balance,

is applied (100% of the employees are covered bycompanies, 8% at European locations and 64% atpractices and laws. As at 31 December 2022, there

starting with the possibility of adhering to part-timecollective bargaining), in Germany the workers'

Asian subsidiaries.

were 42 employees in the company belonging toworking arrangements. The Group is committed tocouncil signs a collective agreement on an annual

During the year we had 474 exits, 370 male exits (78%)

protected categories.

establishing dialogue relationships with its employees

basis (approximately 90% of the employees are

and 104 female exits (22%); of these persons 173 are

A further element in favour of the El.En. Group's

in order to reconcile people's needs with company

covered by collective bargaining, the rest are sales

under 30 years of age, 271 persons are in the 30-50

commitment to develop a multicultural organisation isrequirements. This commitment is also reflectedstaff, who sign their own different contract), in France

age bracket and 30 persons are over 50). Of the total

the prevalence of local managers in all its subsidiaries:

in recruitment: 93% of the Group's employees are

the Collective IDCC Convention no.1982 is applied

number of exits, 15% occurred at Italian companies, 9%of the 165 managers operating in different countries,

hired on a permanent basis if we exclude Chinese

to all employees, in Brazil collective bargaining is

at European subsidiaries and 76% at Asian subsidiaries.

98% were born in the same country, an element thatsubsidiaries, where the labour market is much more

conducted annually, and in China and Japan local

The overall turnover rate is 57%. If we strip out the figure

allows them to be more rooted in the territory.

dynamic and the tendency of people to constantly

legislation is followed. In Japan, management also

from the entries and exits of Chinese subsidiaries, wheremove from one region of the country to another inholds a monthly meeting with its employees toboth entry and exit turnover rates are higher than theorder to obtain a better standard of living means

discuss any relevant issues. At Group level, it should

norm due to the peculiarities of the Chinese labour

there is rapid employee turnover, and where current

be noted that 53% of employees are covered bymarket, where there is a rapid turnover of employees

legislation stipulates that employees are hired on acollective bargaining agreements.

due to the tendency of people to move frequently to thepermanent basis by companies after three three-year

During the year, we had 677 new hires, 540 male hires

regions of the country where the best living conditions

renewals at the same company (i.e. after nine years).

(80 per cent) and 137 female hires (20 per cent); of

are offered, the turnover rate drops to 34% with 259

any discrimination based on nationality, sexualThe percentage drops to 55% if Chinese employees

these, 278 were persons under 30 years of age, 372

hirings and 126 terminations.

orientation, age, political or religious views. The Group,

are included, for whom this form of contract is

supporting and respecting the rights of the individual

provided after three three-year renewals at the samein accordance with the UN Universal Declaration ofcompany.

Human Rights, is committed to avoiding any form

This commitment translates into the management ofof discrimination. This commitment applies to alldifferent categories of contracts: from national and/aspects of the employment relationship, including

or sectoral bargaining, to collective and/or company

recruitment, training, job assignment, promotion,agreements, to individually concluded contracts. In

We are committed to ensuring a constructive anddynamic working environment that supports thediversity of people and talents, is stimulating andoffers opportunities for professional growth. The
Group'shuman

resources

management

aims

at integration and respect for diversity, rejecting

Distribution of employees by category and age as of December 31st 2022

TYPE OFCONTRACTBlue collar
employees

29%

Executives

3%<30 YEARS OLD 33%

30-50 YEARS OLD 41%

30-50 YEARS OLD 55%>50 YEARS OLD 12%

Middlemanagers

white collar
employees>50 YEARS OLD 59%

5%62%<30 YEARS OLD 24%<30 YEARS OLD 2%

30-50 YEARS OLD 65%

30-50 YEARS OLD 67%>50 YEARS OLD 11%>50 YEARS OLD 31%

140

141

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

6.1 TRAINING AND SKILLS DEVELOPMENT

Professional training provided toeach employment category (2022)

Training has always been considered fundamental for the growth of
personnel and the development of the key skills essential for a company’s
success. We promote continuous training with both refresher and subjectspecific courses in order to enhance the knowledge and specialisationof each resource within the company.

2021

1%

Executives

Middlemanagers

3%

5%Blue collar
employees

White collar
employees
2021

64%

39.47119 HOURS

TRAINING HOURS,ABOUTFOR EACH EMPLOYEE

18% INCREASE ON 2021

by Group companies as a whole in 2022 were:activities, this is defined annually by each company•

training on health and safety issues, thus relatingby surveying, in addition to the compulsory training

to learning or keeping up to date with legal and/that must be provided, the curricular needs of theor company rules and regulations on health andcompany population; through a census, the specificsafety in the workplace;

topics that need to be studied in depth are noted,

training on quality system specifications forand in some companies, each employee has thelearning the necessary operating procedures atpossibility of requesting to participate in specificeach stage of the production process;training courses to enrich and personalise their

specialised technical training for enhancing

curriculum.

skills to optimally perform the assigned role;

In order to promote ever greater accountability, thislanguage training related to enhancing theyear the companies continued to provide training andlanguage skills of the resources involved;

information on the El.En. Group's Policies and Codetraining in information systems to acquire skillsof Ethics, developing all the main topics containedis very large with 9,328 hours as it includes all thein the purely information field (e.g. knowledge ofin these documents, and held an important anti-

trainings that do not fall under the above-mentioned

certain software);corruption course for all management figures.
In the Group companies,the Code of Ethics is delivered

hours to training on sustainability issues that reachedprofessional skills of its employees and is structured

80 employees, 240 hours to enhancing language

to ensure a differentiated offer aimed at involving all

training, while 615 hours were the training investment

professional categories at all levels.

for new hires on the Code of Ethics and 126 hours

employee. The main training categories are technicaltraining with 15,928 hours, health and safety training
amounting to 7,240 hours and training on Quality
issues amounting to 3,971 hours.

59%

2021

32%

Although there is no central coordination of training

The training activity aims to stimulate and expand thewith an average of approximately 19 hours per

33%

The main education and training courses promoted•

During 2022, 39,471 hours of training were provided

2021

3%

training on Model 231. The residual category “Other”

trainings. Furthermore, 1,056

hours

of

•
•
•

specific•

training for new employees;

management training were provided during the•on-the-job training, usually carried out for fixed

to all new employees as mandatory documentation,

periods within companies and delivered byand in the companies Asclepion GmbH, Quantaother qualified employees.

System S.p.A. and the Chinese subsidiaries, a focus

financial year, representing 3% of the total training
hours. A total of 2,076 people were involved in at least

We devoted 450 hours to training on the four El.En.

one training session, for a total investment of overGroup Policies that reached 899 employees, 340

380,000 euro.

142

For many professionals, a mentoring activity is also

on the Code of Ethics is included in the training

required to facilitate the trainee's insertion into thefor all new employees: the implementation of thiswork environment in order to accompany,support andactivity for the parent company El.En. S.p.A. and thetrain them through the collaboration of colleagues,

subsidiaries of the Calenzano and Prato Hub has

periodically checking the results achieved.

been completed and will be active from 2023.

143

Consolidated Non-Financial Statement 2022

THE PEOPLE BEHIND COMPANY
SUCCESS CLIMATE ANALYSIS
During 2022, the parent company El.En. S.p.A. carried out an internal climate analysis, a diagnostic andlistening tool that shows how people perceive their working environment.

Consolidated Non-Financial Statement 2022

6.2 HEALTH AND SAFETY IN THE WORKPLACE
We are committed to ensuring a healthy and safe working environment thatcomplies with worker and environmental safety regulations. Our aim is tospread and develop awareness among people of the risks associated with
their work activities and to promote responsible behaviour by all workers,
with targeted programmes aimed at preventing potential personal injury.

These perceptions greatly influence the motivation and performance of employees, which is why El.En.'s
approach was not to administer a questionnaire to receive feedback from people, but to turn this analysis
tool into an improvement process that involved people and made them participate in the change.

7.240

The first stage involved providing a questionnaire for the following areas of interest: (i) environmental

HOURS OF SPECIFIC TRAINING ON HEALTH AND SAFETY ISSUES

quality, safety and sociality, (ii) motivation, (iii) staff supervision and (iv) behavioural culture.
Starting from the questionnaire data, the second stage saw the creation of a number of focus groups(created by dividing the participants according to their department, skills, age and company seniority).
In the third stage, focus groups were asked to propose improvement projects on the company areas

During the year, Group companies maintained, - always act in accordance with applicable national
albeit loosened, certain rules for safe accessibility

and international regulations and standards;

in the workplace, a priority for all companies since- manage the hazards and risks associated with eachIn the fourth and final phase, concrete actions were identified for the development of improvement

the beginning of the Covid 19 pandemic. In sometask and activity; any change to the organisational

projects concerning the implementation of synergetic collaboration between departments, theworkplaces, access procedures remained in force forlayout, at any level, involves updating the relevant

increased implementation of a culture of gratification and motivation, professional development andmost of the year, with anyone showing flu symptoms

documentation;

and/or a body temperature above 37.5°C being- provide competence and awareness of risks relatedbanned from entering.

to work environments and tasks to all personnel

where deficiencies had been highlighted using the problem solving technique.

continuous improvement orientation.
In the course of 2023, the projects proposed by the Focus Groups will be presented to the Management,

Some companies maintained specific access points

through continuous training and information;

which will evaluate the relevant improvement actions.

with hand sanitisation dispensers, a mask supply box- periodically review the safety procedures and workand a body temperature station in the early months

instructions to make changes and improvements;of the year. In Chinese subsidiaries, however, the- adopt rules of good practice in the management

continuation of the pandemic meant that restrictionsof contracts and subcontracts to reduce possible

were maintained throughout the year.

interfering risks;

Routine and special cleaning and sanitising of- search for the best available technology for individual

surfaces and environments has been and is stilland collective protection.

144

being implemented, and the frequency of daily

In all the Group's production companies, the issue

cleaning and sanitising has been increased to ensureof health and safety is managed and monitored

that rooms, workstations and equipment used arethrough processes that, although not centralised

sanitised at the end of the shift or whenever necessary.

and coordinated at Group level, ensure that in

For the use of equipment shared by several operators

each subsidiary there are procedures related to(e.g. work equipment such as lifting gear, forklifts,

the protection of workers' health and safety, worker

coffee machines, etc.), companies have provided

training and the implementation of corrective andfor cleaning procedures with appropriate products

improvement actions.

between uses.

In Italian companies, the subject is regulated by

As also stated in the Code of Ethics, the El.En. Group

Legislative Decree no. 81/2008; foreign production

is fully committed to spreading and consolidating a

subsidiaries equally oversee health and safety underculture of safety, promoting responsible behaviour by

local regulations. The Group's Italian companies

all employees.

have also addressed the issue of Health andTo this end, the Group is committed to:

Safety within the framework of the Organisational

145

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

model pursuant to Legislative Decree 231/2001.

or preventive actions. Most of the subsidiaries havetraining for general risks and training for specific risks

or collective protection devices such as bulkheads,

The guiding principle is that safety policy should

procedures in place for workers' complaints andrelated to certain tasks, first aid training and periodic

containment boxes and turnstiles are provided inhave elected workers' safety representatives.

refresher courses.

a different manner to delimit production areas. In

all the other values that characterise corporate

During the year, the Group's Italian companies hold a

A total of 7,240 hours of Group-wide health and safety

non-manufacturing companies, the issue is also

strategy. Just as organisational systems are used toperiodic meeting in accordance with the provisions

manage economic resources, so too safety must beof Article 35 of Legislative Decree no. 81/08, attended

an essential value, to be constantly achieved andby the Employer, the Company Physician, the RSPP

be elevated to a corporate value, on a par with

implemented, with the help of an organisational(Health and Safety Officer) and the RLS (Workers'

system that identifies the tools, responsibilities andSafety Representatives) representing all workers.

motivations aimed at expressing and translating the

In line with a policy of maximum transparency, acommitment of top management in this respect.

member of the Supervisory Board and all persons

Hence, among other things: the commitment towithin the corporate security organisation chart arecomply with health and safety regulations and thealso invited to attend the periodic meeting of theOrganisational Model with the aim of fostering a

Parent Company.

significant reduction in accidents; recognition that

The following topics were discussed at the meeting:the responsibility for safety management concerns- update on any changes made to the risk assessment

the entire company, from the employer to eachdocument;

employee, according to their duties and skills; the- evaluation of trends in accidents, occupational

commitment to allocate adequate human anddiseases and health surveillance;

financial resources to achieve the objective of a

- the selection criteria, technical characteristics andsignificant reduction in accidents and the objective

effectiveness of personal protective equipment thatof constantly improving working conditions; themay have been added or modified;commitment to ensure that workers are adequately- safety information and training programmes for

informed and trained on the risks connected to

managers, supervisors and workers.

their work. Based on the organisational model, it isDuring each meeting, a new improvement plan isplanned to identify and allocate the responsibilities

also presented, describing all objectives that therelated to health and safety among the company

Prevention and Protection Service aims to achieve fordepartments, to map and self-assess the risk, and to

the following year.

prepare training activities.

German and Brazilian companies also employ

For the companies located in the Calenzano area, thespecific committees with expertise in health andcentral role of the HSE office in safety management

safety, which meet periodically to assess the progresshas made a more coherent and uniform view ofand management of the issue. In case of the Brazilian

company policy towards this issue available overcompany, workers' health and safety representatives

time.

hold monthly monitoring meetings.

In

all

production

companies, theprocessof

In all production companies, departments andidentifying risks related to workers' health and safety

persons responsible for health and safety areis envisaged: in Italy, this activity is formalised in

identified (e.g. employer, RSPP and supervisors for thethe Risk Assessment Documents (RAD); in Chinese

Italian company; general manager and departmentcompanies, risks related to the workplace aremanager for the Chinese company; employer andformalised and communicated to workers throughsafety manager for the German company).

the “Worker's manual”; similarly, in German and

In all production companies, training and information

Brazilian subsidiaries, risk analyses are formalised inon health and safety is provided both at the time of

dedicated documents that are periodically updated.

recruitment and periodically thereafter. The structure

Risk identification is subject to the subsequentand type of training courses are defined by theidentification and implementation of corrective and/

individual companies, however all provide bothtraining were provided in 2022, an increase overlast year due to the periodicity of legally required
training, but also due to the increase in the numberof employees.
Given the nature of the production activity carried out,
all companies have established safety proceduresand provide for collective and individual protective
equipment

artificial

opticalradiationrisks.

In 2022, 20 occupational injuries were recorded at
Group level, up from 14 in the previous year; the maintypes of injuries were injuries and bruises, mainly of
the limbs. No serious8 accidents occurred during theyear. Following accidents, companies investigate theSpecifically, all production workers have personalcauses of accidents in order to develop possible

protective equipment available and then, prevention

preventive and ameliorative actions.

8

146

for

monitored through the collection and monitoring ofaccident-related data.

Serious accidents are considered those for which more than 180 days of absence are foreseen.

147

Consolidated Non-Financial Statement 2022

6.3 PEOPLE’S WELL-BEING
The well-being of its people is the key factor for a company’s success.
Technical skills are not enough to guarantee a good result, but it isnecessary for the company to offer its employees an environment thatcan stimulate their potential and abilities.

Consolidated Non-Financial Statement 2022

In the Group's companies based in Calenzano

which sports courses are offered, and a large rooftop

and Prato, a free canteen service has always been

terrace with a garden inside. Lastly, the subsidiaryoffered to all employees, and with much effort it has

Asa, in its new company headquarters inaugurated

always been maintained, even during the pandemic,

at the end of last year, also planned to adopt

by dividing the entrance to the canteen into several

innovative space management solutions: the smart

shifts with sanitisation of the stations between one shift

redistribution of functional areas was carried out toand the next, in order to continue to offer a hot meal

improve the quality of work, and open-plan operating

to employees. For a few years now, the Calenzano

rooms were adopted that, thanks to an ad hoc

To support, encourage and implement the well-

not exceeding five days will be paid at 100% evenfacility has also had a company gymnasium. Chinese

study of furnishings and the use of sound-absorbing

being of its people, the El.En. Group considers welfare

after the occurrence of the third event. Employees atcompanies provide each employee on request withpanelling, while guaranteeing privacy and acoustics,

a highly innovative tool compared to traditional

the Calenzano Hub were also given the opportunity

a free flat in the company dormitory or in the vicinity

favour teamwork. Several meeting rooms, job islands,

salary and incentive methods, destined to become

to convert part of the ad personam bonus intoof the factory and offer a free canteen service fora refreshment area and coffee break islands help

an integral part of modern and efficient resource

welfare vouchers. The subsidiary Quanta System
S.p.A. introduced the possibility for each employee tolunch. Furthermore, in the new Chinese plants infacilitate sharing. Fortunately, the slowdown in the

management. Welfare plans were planned by theconvert the entire production bonus into welfare in its

Wenzhou and Shangdong, recreational areas for

global health emergency meant that access toJapanese, Brazilian and Chinese subsidiaries. The

the aforementioned premises by employees wasGroup's Italian companies, in accordance withsecond-level agreement.

employees with sports equipment, reading rooms
and calligraphy courses have been created andalmost entirely restored during the course of the year,

the provisions of the applicable national collective

Italian companies, as per collective bargaining,

made available by the company for anyone who

guaranteeing the health and safety of everyone inbargaining agreement for the sector, pay part of theirsubscribe to health care funds for all employees andwishes to use them.

the company at all times. Companies of the El.En.

salary in flexible benefits. In particular, for companies

their dependants.

The subsidiary Quanta System S.p.A. possesses

Group therefore offer their employees non-statutoryof the Calenzano and Prato hub, through the provision

We are convinced that working in a custom-built

a gymnasium (to be expanded in 2023) for all

benefits in addition to statutory ones.

environment fosters a greater spirit of belonging toemployees and a refreshment area where they may

Every El.En. Group employee, whether part-time or full-the company, a prerequisite for its future. And it is inrest and have meals (a company canteen is planned

time, is covered by health insurance policies (100 perof a specific platform, each worker can choose thewelfare good or service that best suits his or herinterests and needs, such as, for example, home careorder to enhance and cultivate the importance ofor health services, reimbursement of school expenses,

for 2023), while the German subsidiary Asclepioncent) that also cover employees' dependents, while

human relationships, of confrontation and sharing

supplementary welfare, training courses, recreationalGmbH, with a view to creating a more welcoming

90 per cent of employees have access to company

that this welfare development path for the El.En.

goods, goods in kind and collective transport services.

working environment for all employees, built a large

welfare plans, including conventions and/or otherGroup was born: the subsidiaries during extensions

Furthermore, the company agreement provided thecafeteria area, a fitness area with two rooms intypes of benefits13.

or relocations of their premises have decided toopportunity to convert the amount due to employees

dedicate ample space to people's well-being, in

as a performance bonus, up to a maximum of 50%,order to raise the quality of working life within theinto welfare goods, benefits and/or services. With thiscompany and take care of people's well-being atagreement companies also granted better treatment

360°. It is increasingly important to accompany thecompared to the CCNL in force by guaranteeing an

training and career path of each professional figure

additional day of paid leave per event with respectwith an investment that leads to the creation of anto those provided for by the regulations in force and,energetic and fulfilling working environment thatas a better treatment, the first three days of sick leavestimulates teamwork.

13
Not all companies have the same benefits. As already mentioned in the text, the concessions referred to concern welfare plans, freecanteen, gym and free sports courses and various agreements stipulated with local companies.

148

149

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

LASIT S.P.A.
THE NEW PLANT
In recent years, the subsidiary Lasit S.p.A., in order to comply with the need to expand its production
capacity and the space available for its various departments, moved to a larger plant: the project
included the use of some space to be made available as recreational areas for its employees from theoutset. The Covid 19 pandemic slowed down significantly and in some cases even nipped in the bud
projects that had been planned, which will be summarised below. In 2021, a nursery area was set up
to allow all parents working at Lasit to bring their small children to the office, providing them with a freebabysitter and a specially-equipped play area: this way, even for the very youngest of children, parents
are always close by and can feel more relaxed in carrying out their daily activities. Last year, a large
library area, strongly desired by Management was also set up. It holds volumes of different subjects,
based on the interests expressed by the employees themselves. As of the end of 2022, the plan to set
up a company gymnasium has become concrete: the gym is the ideal place where, during lunch
breaks or after working hours, employees can share a playful moment and have fun together, to train
their physical and mental fitness. This way, the company wishes to complement the training and career
path of each professional with an investment that leads to the creation of an energetic and rewarding
working environment that stimulates teamwork; the project will be completed by 2023.
The last area that should be developed over the next year is the canteen area, creating a lunch break
space where all employees will be able to find a hot meal choosing from a variety of options, preparedwith products purchased from local farmers and small local companies.
With these measures, the subsidiary Lasit S.p.A. fully embraces the welfare development project desiredby the parent company El.En.. All of these actions are aimed at improving the quality of working life
within the Group's companies and are part of the broader project launched a few years ago and aimed
at its employees, which has the objective of taking all-round care of people's well-being.

150

151

ENVIRONMENTALRESPONSIBILITYCOMMITMENT AND RESPECT
FOR OUR WORLD

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

7. ENVIRONMENTAL RESPONSIBILITY
For

the

Group, therequirements, resulting in a reduction of approximately

corrective and mitigation actions, in compliance withpast financial years are located at the subsidiaries

200 tonnes of CO2 in the atmosphere per year. The

primary asset that must be safeguarded. To thiscurrent regulations and in the light of best practices on

Asclepion GmbH and Asa S.r.l., which each installedsubsidiary Giovanni Galli S.r.l. installed a photovoltaic

end, activities are planned by seeking a balance

the subject. During 2022, the Board of Directors of El.En.

a photovoltaic system at their plants, of 44 kW andsystem at the company's new headquarters. The

between economic objectives and unavoidable

S.p.A. amended and re-approved the Environmental
Policy, which was first approved in 2019.

33 kW power respectively, to supplement the energy

photovoltaic plant will be in operation from 2023, hasenvironmental needs, respecting and protecting
the rights of future generations and in line withneeds of their company plants.These plants produced

a capacity of 80 kWP and is estimated to contribute

All El.En. Group companies have implemented,

theduring 2022 an amount of electricity equivalent to

70% of the company's entire annual energy needs,

approved

21% of the total purchased by the two companies.

saving around 40 tonnes of CO2 into the atmosphere.

The commitment already reported in the Sustainability

Two photovoltaic systems were also installed inReport of 2021 to complete the installation of three

the Calenzano hub, headquarters of the parent

photovoltaic plants during this financial year wascompany El.En. S.p.A. and other subsidiaries: the firstcompleted in 2022: one plant was installed at theone has 76 kWP, the installation is completely finished

Calenzano production site, one at the subsidiaryand will be in operation as of mid-2023, while for the

Quanta System and one at the subsidiary Giovanni

second system, amounting to 64 kWP, installation

Galli S.r.l., and the fourth plant, also at the Calenzano

work began in 2022 and will continue during 2023.

site, is currently being completed. All facilities will be

At full capacity, these first two plants will contribute

operational starting from early 2023.

to the production of about 10% of the total energy

The subsidiary Quanta System S.p.A., in order todemand, saving about 70 tonnes of CO2 per year

reduce its consumption in recent years, installed a

into the atmosphere. At the Calenzano Hub, planscogeneration plant, which during the year produced

have already been drawn up for the installation ofan amount of electricity equivalent to 57% of thefurther solar panels of approximately 253 kWP, which

company's energy needs (calculated on the amountshould be installed by the end of 2023: this will enableof electricity purchased).

future savings of a further 125 tonnes of CO2 in the

The Group's goal in the coming years will be toatmosphere per year thanks to the production of a

install new photovoltaic systems at other locations

further 18% of the total energy requirement.

in addition to the ones mentioned above, in order to

Additional roofing projects were also presented for

self-produce an increasing amount of electricity fromthe Calenzano hub, which, although technicallyrenewable sources and meet its energy needs in an

feasible, are tied to future building extensions orincreasingly renewable and independent manner.

the reclamation of certain roofs and will therefore

As already described, 2022 was a highly significant

possibly be taken into account in the development

year in terms of investments made by the El.En.

plans for the coming financial years.

Group for the installation of photovoltaic systems.

Other Group subsidiaries have also started feasibility

The subsidiary Quanta System has completed thestudies for the installation of photovoltaic systems, so

installation of a 450 kWp photovoltaic system thatthat the amount of renewable energy self-produced

will be in operation from 2023 and will, when fullyby the Group is set to increase over the next few years.

ofsustainable

represents

The photovoltaic systems already in operation in theaprinciple

environment

7.2 SELF-GENERATED ENERGY BY THE EL.EN. GROUP

development. The

anddisseminated

to

all

employees

Group is therefore committed to monitoring thethe revised Environmental Policy, formalising theirenvironmental impact generated by its activities, ascommitment to monitor and seek to reduce thewell as preventing any potential risks, implementing

environmental impact of their activities.

7.1 ENERGY CONSUMPTION
production processes; natural gas and LPG used asfuel for heating buildings; and gasoline, diesel andbioethanol used as automotive fuel.

The Group is committed to reducing its energy
consumption

through, where

possible, improving

processes and infrastructures and promoting energysaving behaviour and habits, fostering the developmentof environmental awareness among people.
Last year, the parent company El.En., for the Calenzano
site, carried out an energy diagnosis of its production
sites, aimed at providing an adequate knowledge ofthe energy consumption profile and identifying andquantifying energy saving opportunities from a cost/benefit standpoint. On the basis of the data foundduring the inspection and the subsequent analysis
carried out, technicians proposed areas of intervention
to achieve the best results in terms of energy savings:
the installation of photovoltaic systems, the upgradingof the roof of a building in the Calenzano hub, and theinstallation of an energy optimiser in the cabin thatwould allow users with heterogeneous absorption inapplications to reduce energy consumption under
the same conditions of use.
Demonstrating that the goal of reducing energy
consumption and producing renewable energy isa priority for the Group, the first two activities havealready been implemented during 2022, and for thethird point we have already ordered the purchase ofmeters, and will then install software for continuous
detection from our electricity grid. Together with theuse of present and future home automation, we could
better manage our network by avoiding peaks inelectricity consumption during peak demand periods.
The

Group'senergyconsumption

consistsof:electricity used for space heating or cooling and forSpecifically, in 2022, 377,127 m3 of natural gas and5,118 litres of LPG were consumed. On the other
hand, the total consumption of purchased electricity
was 6,795,933 kWh while the total number of litres ofdiesel and petrol consumed was 532,461. Bioethanol
consumption amounted to 16,997 litres. The totalenergy consumption was therefore 57,578 GJ. In
percentage terms, approximately 42% of consumption
is attributable to the use of purchased electricity;
a further 33% is attributable to the use of company
cars, and approximately 24% to the consumption ofnatural gas and LPG for internal heating. Since 2022,
the energy needs of two subsidiaries are partly met
by photovoltaic systems, which were installed in 2019:self-produced energy from the photovoltaic systems
amounted to 92,863 kWh. During the financial year
2022, the Group did not make use of the directpurchase of energy from renewable sources certified
through guarantees of origin, but the subsidiaries
Asclepion GmbH, Quanta System S.p.A. and Lasit
Laser Iberica purchased 100 per cent of theirenergy from suppliers who declared that they in turnpurchased it from renewable sources.
Total energy consumption was up by 16% yearon-year: the increase is mainly to be seen in theincreased volume of business (+18% in consolidated
turnover and +11% in headcount). If we analyse theemissions in 2022 in relation to the production carriedout, overall we have reduced CO2 emissions into theatmosphere per unit of product by 3%.

154

operational, produce the company's entire energy

155

Consolidated Non-Financial Statement 2022

THE TRANSITION OFPENTA LASER SHANDONG

Consolidated Non-Financial Statement 2022

7.3 WASTE
In 2021, the El.En. Group carried out an initial waste reporting exercise, even though this issue is not included
among the material topics because, in a world where natural resources are by nature limited, we want tostrive to manage them as well as possible and promote responsible resource management by promoting

The Chinese provincial government of Shandong and the city government of Linyi awarded thesubsidiary Penta Laser (Shandong) Co. Ltd recognition as a company engaged in the “conversion
from old to new energy” during the construction of the experimental zone in Shandong province. In thesame year, the Ministry of Emergency Management of the People's Republic of China also granted thesustainable production and consumption models. Last year, the reporting had affected all Group companies
except Chinese subsidiaries, as the data collection for monitoring this activity had been difficult to obtain,
and the subsidiaries had committed to report the collection from 2022 onwards: the target was achieved andas of this year, all Group companies have been reporting data on time.
We would like to remind you that all Group companies have been carrying out separate waste collection on

certification of safety systems for manufacturing to Penta Laser (Shandong) Co., Ltd.

their premises as of last year. The three Chinese companies were the last subsidiaries to introduce separate

These awards are primarily intended to reward companies that are leading the way in a conversion

waste collection and, referring to the Group Environmental Policy, which was approved and disseminated tothat aims to replace traditional technologies with innovative, safer and more environment- and people-

all employees, they established additional internal Company Regulations for the management of separate

friendly technologies, such as laser technology.

waste collection, organised training courses for all employees on the correct sorting of waste, and carried out

During the past year, the Chinese company Penta Laser Shangdong has completed expansion of its
existing production site by adding approximately 12,000 square metres including a new production
facility, a workshop and an employee dormitory, which also includes an entertainment centre for after-internal awareness campaigns on the environmental damage caused by incorrectly disposed waste.
Each of the Chinese companies then entered into contracts with external companies for the collection,
handling and disposal of the waste and, in this first phase, requested the cleaning employees to review any
incorrect disposals. These actions were carried out in just a few months and are part of the more ambitious

work use with sports equipment, reading rooms and calligraphy courses. In these new buildings, theproject to transform Chinese companies into “Green factories” where, together with the use of more sustainable

company followed the “green building assessment standards” by installing highly efficient electricalmaterials, the installation of energy-efficient equipment and the introduction of solutions to reduce waste
is also, and above all, accompanied by a system of environmental education for all employees since, as

and heating systems.

stated by the CEO of Penta Laser Wenzhou, “Green manufacturing is an important part of the construction of
ecological civilization and the only way for the transformation and upgrading of enterprises”.
This initial reporting of waste showed that the Group produced 724 tonnes of waste during the year, of which
717 tonnes (99%) was non-hazardous waste: of this, 90% was sent for recycling or other recovery operations

CUTLITE DO BRASIL'SENVIRONMENTAL PROCEDURES
The subsidiary Cutlite do Brasil, after approving and disseminating the El.En. Group's Environmental
Policy to all employees, has introduced internal procedures to reinforce its commitment to energy andwhile 10% was sent for disposal. Hazardous waste accounts for only 1% of the total and consists mostlyof packaging, absorbents or filter materials containing substance residues, spent solvents and discarded
equipment. All companies use external companies for collection and disposal services, but also use municipal
pick-up and collection services, especially for undifferentiated waste, organic waste and paper from offices.
Waste disposed of with state agencies, which accounts for a very marginal share, is not included in the scopeof the reported data.

water saving, raising awareness among employees on the proper use of resources.
In previous years Cutlite do Brasil had already replaced all the lights with LED lamps and equipped

Waste generated

taps with manual presence sensor devices. The procedures recommend that all employees turn off

2022

lights and air conditioning in unoccupied rooms, keep doors and windows closed to avoid wasting air
conditioning, and adjust the thermostat according to the room temperature, always giving preference

HAZARDOUS WASTE

6.584

to the use of natural light during the day. Care should be taken to always switch off monitors, printers,

diverted to disposal

2.346

diverted from disposal

4.238

of the monitor or activate the “Power-saving” or “Energy efficiency” option. Everyone's cooperation is

NON HAZARDOUS WASTE

717.619also required in preventing water wastage and reporting any leaks immediately. The company has

diverted to disposal

71.606diverted from disposal

646.013TOTAL

724.203diverted to disposal

73.952diverted from disposal

650.251

stabilisers, speakers and other accessories when not in use, to disconnect the monitor from thecomputer during periods of absence of more than 15 minutes, and to reduce the brightness/contrast

also implemented a project to reduce plastic by replacing the cups in beverage dispensers withbamboo fibre cups.

156

157

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

QUANTA SYSTEM - GREEN FACTORY

FUTURE DEVELOPMENTS AT THE CALENZANO HUB

At the end of 2022, the subsidiary Quanta System inaugurated the last part of the company's new plant,

2022 saw a continuation of the initiatives promoted by the parent company El.En. to propose a positive

adjacent to the previous one: employee well-being and sustainability were the guidelines followed in theecological impact: in addition to the installation of photovoltaic systems and the planning of future ones,

renovation of this latest area of the company, which was created with the precise intention of putting

which we have already described above, the following projects have already been authorised for thepeople's well-being and health at the centre.

coming years: (a) Relamping of the entire Hub with LEDs for those areas that have not yet been adapted

The new area of around 2,000 m2 offered additional office space for more than seventy employees, twoby the end of 2023 or early 2024; (b) Installation of electric vehicle recharging stations: the first installation

medical rooms for laser treatment demos, a training room and a state-of-the-art auditorium: this room

will be scheduled for 2023, the second in 2024, and for two further installations we are waiting for further

can hold meetings for around one hundred and fifty people and can be divided into two spaces.

work on the plant to be completed before deciding where they will be most effective; (c) Expansion where

In the name of welfare and the spirit of belonging, the renovation included the adoption of innovative

possible of the automatic switching on and off of lights in the entire building and where possible installation

solutions in the management of spaces and in the choice of furnishings, with the utmost functionality toof presence sensors to facilitate energy saving (d) Purchase of a fully electric eight-seater mini-van by 2023

facilitate the fluidity of work; to encourage sharing, several meeting rooms and three “coffee break” areasfor possible passenger/guest transport or shuttle services for our employees; (e) The project to reopenwere also created (one of which was for the exclusive use of the Auditorium), as well as the rebuilding of

the existing drinking fountains for water supply will be fully reactivated from 2023 (the fountains had been

the company gym, already present but no longer able to accommodate all employees who wished toclosed following the Covid 19 health emergency) to promote the reduction of plastic use and reduce bothuse it, which will be completed during 2023 (in the existing building).

waste and its handling. Automatic dryers inside restrooms, which were temporarily closed for the reasonsThroughout the building, winter/summer air conditioning was ensured by the installation of an energy-

mentioned above, will similarly be reactivated to reduce the use of paper.

efficient heat pump system, which allows for a distributed diffusion of air and temperature, avoiding
ventilation. Energy-efficient electrical systems were also installed: high-efficiency LED technology wasused in the lighting design, and presence sensors were installed for automatic lighting wherever possible.

24.465

ELECTRICITY
PURCHASEDAs previously described, a photovoltaic system of 450 kWP was installed on the roof of the new building
to cover the company's entire energy needs when the system will be fully operational (the installation

17.647 nel 2020
21.880 nel 2021

is complete and connection to the electricity grid should take place in early 2023); the installation of asecond photovoltaic system of equal power on the roof of the second building has also been approved,
which should take place as early as 2023. Lastly, seven electric vehicle charging stations have been

PLG

installed and a further three will be installed in the coming months.

125

75 nel 2020
99 nel 2021

BIO-ETHANOLDIESEL FUEL

13.996 nel 2020
14.948 nel 2021

ENERGYCONSUMPTION
OF THE GROUP BY
SOURCE (GJ) 202214

362

NATURALGAS

335 nel 2020
268 nel 2021

15.94813.53310.425 nel 2020
10.164 nel 2021

GASOLINE

2.877

1.161 nel 2020
1.981 nel 2021

The data related to the consumption of electrical energy in the month of December 2022, nless otherwise specified, were acquired fromthe invoice issued by the suppliers of energy services..The consumption of fuel for vehicles for the automobiles belonging to the Italiancompanies located in Calenzano and Prato, were estimated on the basis of the costs by means of the average annual price of gas anddiesel fuel (Euros per liter) shown on the site of the Ministry for Economic Development. For automobiles with mixed use, we considered 70% of
the total consumption. For the calculation of Energy consumption in GJ, we used the conversion factors of the Department for Environmental
Food & Rural Affairs (DEFRA), UK,, fo 2020, 2021 e 2022.
14

158

159

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

7.4 EMISSIONS

Emissions Scope 1 and Scope 2(location-based)by region (ton CO 2eq) 2021

Direct and indirect CO2 emissions associated with

- For the market-based method, average emission

the Group's main consumption can be divided into

factors

two categories:

production for Italy, France and Germany were used,•

as reported in the document Residual Mix Results,•

direct emissions (Scope 1): greenhouse gas

from

the

Europeanelectricity

marketemissions due to direct fuel consumption by

Association of issuing bodies (AIB) 2019, 2020 and

the Group (e.g. natural gas, diesel);

2021, for 2020, 2021 and 2022, respectively. For theindirect emissions (Scope 2): greenhouseremaining countries, the same factors were applied

gas emissions from electricity purchased or

as for the location-based method.

consumed by the Group.

For 2022, considering the location-based calculation

1.600

1.600

1.400

1.400

1160
800

600

600

required by the GRI Sustainability Reporting Standards,

56% is attributable to electricity consumption while200

consumption.

based method” and the “Market-based method”.
The location-based method is based on average

316

117

other hand, is based on the CO2 emissions emitted by

131

0
Scope 1

Scope 1

Scope 2

Scope 2

When calculating indirect emissions using the
Italy

Rest of Europe

Rest of World

Italy

of direct and indirect CO2eq emissions.

energy suppliers from whom the company purchases, The

parentcompany

El.En.

S.p.A.,

andtheby contract, electricity, or on market-related factors.

subsidiaries Quanta System S.p.A. and Deka Mela

Different factors were used for the calculation of

S.r.l. in December 2022 signed a consultancy

Scope 2 emissions, depending on the calculation

contract to obtain ISO 16064 - Organisation Carbon

method and the reference country. Specifically:

Footprint certification, to set up an initial approach to- For the location-based method, average emission

reporting GHG emissions expressed in units of weightfactors relating to domestic power generation for theof carbon dioxide equivalent (CO2eq) released

different countries of operation were used, as reported

into the atmosphere resulting from all direct andin the publication International Comparisons, Ternaindirect activities of the Organisation. The project

2019, 2020 and 2021, for 2020, 2021 and 2022

envisages the three companies obtaining ISO 14064

respectively.

certification by 2023.

15

134

200

116

less in line with the above, i.e. a total of 5,503 tonnes

power generation. The Market-based method, on the

376

400

0

market-based method, CO2eq emissions are more oremission factors for regional, sub-national or national

1156

1.000

800

400

two distinct calculation methods: the “Location-

1422

1.200

1203

1.000

method for Scope 2, total emissions are 4,805 tCO2eq:
44% is mainly attributable to natural gas and fuel

1585

1321
1.200

In particular, for the calculation of CO2 emissions, as
Scope 2 emissions were calculated according to

Emissions Scope 1 and Scope 2(location-based)by region (ton CO2eq) 202216

15
It should be noted that the Scope 2 emissions calculated with the emission factors published by Terna in the International Comparisonsdocument are expressed in tons of CO2 ; in any case, the percentage of methane and nitrous oxide has a negligible effect on the total
emissions of greenhouse gas (CO 2eq ), as can be seen from the specific technical literature.

160

161

Rest of Europe

Rest of World

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

7.5 WATER CONSUMPTIONTheGroup'sandcase, water is mostly used through closed cycles thattakeallow its recovery and avoid its dispersion into theconcrete form in the efficient use of water resources,

environment: water discharges take place into thewith the aim of minimising its consumption and thus

public sewerage system and there are no particularreducing waste, at a time when water represents aparameters or quality standards for discharges to becommodity that is as precious as it is at risk for future

met.

optimisingactions

towards

environmental

respecting

resources

also

generations.

In 2022, the total water withdrawal amounted to

The Group is committed to promoting good water-

53,255m3 and came exclusively from the civil

saving habits, providing practical advice to its

aqueduct pipeline mains. The increase in water

employees and implementing improvement actions

consumption is mainly due to the increased presence(e.g. turning off the tap when not needed, avoidingof several employees in the company due to thethe “running water” phenomenon, etc.).

removal in 2022 of the restrictive measures caused

Water is mainly used for sanitary purposes, canteen

by the Covid-19 pandemic as well as the increase inactivities and production processes. In the latterthe Group's workforce.

162

163

APPENDIXEUROPEAN TAXONOMYABOUT OUR REPORTPERFORMANCE INDICATORGRI CONTENT INDEXConsolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

8. The European Taxonomy

Below is a table summarising the allowable turnover shares related to business activities in 2022 that, as

Category(transitional
activity)

mentioned above, have not been recognised:

Category(enabling
activity)

In 2019, the European Union presented the “European Green Deal” with the significant goal of achieving climate
investments, EU Regulation 852/2020 - Taxonomy Regulation, which defines a specific classification systemclassification codes of economic activities in the European Union (NACE code), came into force in 2021.

Minimum
safeguards
art.18Regulation
852/2020

The Regulation sets out the obligations, contents and criteria for defining an economic activity as
environmentally sustainable. The European taxonomy has defined the following six objectives to identify

Biodiversity
andecosystems(%)

environmentally sustainable economic activities: climate change mitigation, climate change adaptation,
sustainable use and protection of water and marine resources, transition to a circular economy, pollution

Climate change
mitigation (%)

reporting obligation are required to publish not only the "eligibility" value of the share of turnover, CapEx
and OpEx relating to taxonomy-eligible activities, accompanied by the relevant Qualitative disclosures,with reference to the first two objectives, but also the share of "alignment" activities (i.e. those that can be

Biodiversity andecosystems(%)

classified as eco-sustainable economic activities), i.e. those "eligible" activities that substantially contributeto the achievement of one or more of the six environmental objectives, comply with the technical screening

Pollution (%)

criteria, do not cause significant harm to any of the environmental objectives (Do No Significant Harm - DNSH)

The final assessment led us to conclude that our activities, at least to date, are not eligible for the first two

166

167

100%
673.581
Total (A + B)

100%
673.581
Turnover of Taxonomy-non-eligible activities (B)B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

0%-A. TAXONOMY ELIGIBLE ACTIVITIES

Economic activities

TURNOVER - FISCAL YEAR 2022

Code(s)the tables below.

Total (A.1 + A.2)

Absolute
turnovereconomic activities or individual measures that helped reduce the emission profile of our assets, as noted in-

Instead, we measured significant Capex shares related to the purchase of goods or services from tax-eligible

Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities) (A.2)

Proportionof turnoverbusiness-related Turnover shares, nor significant OpEx shares in this year.

A.2 Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)

to climate change mitigation or adaptation listed in the taxonomy regulation: we therefore have no allowable0%

Climate change
mitigation (%)

explicit environmental objectives, as they are not included among the activities that contribute substantially0%which the European Commission has published criteria.

-

The process only covered the climate change mitigation and adaptation targets, as these are the only two for

Turnover of environmentally sustainable activities(Taxonomy-aligned) (A.1)

Group company.

A.1 ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (TAXONOMY-ALIGNED)

an analysis of the applicability of the taxonomy with respect to the eligibility criteria, with reference to each

SUBSTANTIAL CONTRIBUTION CRITERIA

and are carried out in compliance with the minimum social safeguards and governance guarantees.
The El.En. Group, following the recommendations of the Regulation, has already carried out since last year

Water
and
marineresources(%)
Climate change
adaptation (%)

As required by regulations, in this year's Consolidated non-financial Statement, companies covered by the

Circulareconomy(%)

first two objectives set out in the Taxonomy Regulation, climate change adaptation and mitigation.

Water andmarineresources(%)

Regulation). The Climate Delegate Act focused on activities that have a greater capacity to contribute to the

Climate change
adaptation (%)(EU) 2021/2178 of 6 July 2021 regulating a mandatory disclosure regime for companies (Information Notice

DNSH CRITERIA('DOES NOT SIGNIFICANT HARM')

In 2021, the regulatory framework on Taxonomy was supplemented by a series of Delegated Acts: Delegated

Circulareconomy(%)

Pollution (%)

prevention and control, and protection and restoration of biodiversity and ecosystems.
Regulation (EU) 2021/2139 of 4 June 2021 (Climate Delegate Act) and Commission Delegated Regulation

0%

Taxonomyaligned
proportionof turnover,year 2022

aimed at identifying environmentally sustainable economic activities based on the use of the statistical0%

Taxonomyaligned
proportionof turnover,year 2021

neutrality stating from 2050. In order to do so, standardise and identify a framework that favours sustainableCode(s)7.5

7.6

Installation, maintenance and repair of instruments
and devices for measuring, regulation and controllingenergy performance of buildings

Installation, maintenance and repair of renewableenergy technologies

168
1.487

0

1.487

A.2 TAXONOMY-ELIGIBLE BUT NOT ENVIRONMENTALLYSUSTAINABLE ACTIVITIES (NOT TAXONOMY-ALIGNEDACTIVITIES)CapEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities) (A.2)

TOTALE (A.1 + A.2)-

0%

Proportionof OpEx

Climate change
mitigation (%)

100%

100%

100%

Climatechangemitigation
(%)

169

5.545

5.545

Total (A + B)-

OpEx of Taxonomy-non-eligible activities (B)B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Totale (A.1 + A.2)

OpEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities) (A.2)

100%

100%

0%

A.2 TAXONOMY-ELIGIBLE BUT NOT ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (NOT TAXONOMY-ALIGNED ACTIVITIES)OpEx of environmentally sustainable activities(Taxonomy-aligned) (A.1)

A.1 ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (TAXONOMY-ALIGNED)

A. TAXONOMY ELIGIBLE ACTIVITIES

Economic activities

Absolute
OpEx

28.514TOTALE (A + B)

95%

5%

0%

100%

5%

2%

3%

0%

Proportionof CapEx

n/a

n/a

n/a

Water andmarineresources
(%)

n/a

n/a

n/a

Circulareconomy(%)

Water andmarineresources(%)

Circulareconomy(%)

SUBSTANTIAL CONTRIBUTION CRITERIAClimate change
adaptation (%)

n/a

n/a

n/a

Climate change
adaptation (%)

SUBSTANTIAL CONTRIBUTION CRITERIA

Pollution (%)

n/a

n/a

n/a

Pollution (%)

Biodiversity
andecosystems
(%)

n/a

n/a

n/a

Biodiversity
andecosystems(%)

Climate change
mitigation (%)

Y

Y

Y

Climate change
mitigation (%)

Climate change
adaptation (%)

n/a

n/a

n/a

Climate change
adaptation (%)

n/a

n/a

n/a

Circulareconomy
(%)

Water
and
marineresources(%)

Circulareconomy(%)

DNSH CRITERIA('DOES NOT SIGNIFICANT HARM')

n/a

n/a

n/a

Water andmarineresources(%)

DNSH CRITERIA('DOES NOT SIGNIFICANT HARM')

Pollution (%)

n/a

n/a

n/a

Pollution (%)

Biodiversity
andecosystems
(%)

n/a

n/a

n/a

Biodiversity
andecosystems(%)

Minimum
safeguards
art.18Regulation
852/2020

N

N

N

Minimum
safeguards
art.18Regulation
852/2020

0%

Taxonomyaligned
proportion of
OpEx, year
2022

0%

0%

0%

Taxonomyaligned
proportion of
CapEx, year
2022

0%

Taxonomyaligned
proportion of
OpEx, year
2021

0%

0%

0%

Taxonomyaligned
proportion of
CapEx, year
2021

Category(enabling
activity)Y

YY

Category(enabling
activity)

Category(transitional
activity)Y

YY

Category(transitional
activity)

Below is a table summarising the Group's Capex investments during 2022:

OPEX - FISCAL YEAR 2022

27.027CapEx of Taxonomy-non-eligible activities (B)B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

1.487

702

764

20

Absolute
CapEx

CapEx of environmentally sustainable activities(Taxonomy-aligned) (A.1)

Code(s)7.4

Installation, maintenance and repair of charging
stations for electric vehicles in buildings (and parking
spaces attached to buildings)

A.1 ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (TAXONOMY-ALIGNED)

A. TAXONOMY ELIGIBLE ACTIVITIES

Economic activities

CAPEX - FISCAL YEAR 2022

Consolidated Non-Financial Statement 2022
Consolidated Non-Financial Statement 2022

Below is a table summarising the permissible OpEx shares related to business activities during 2022 that, aspreviously mentioned, were not recognised:Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

9. About our Reportan annual basis: this 2022 version was approved byproduction of renewable energy were installed in

the Board of Directors of El.En S.p.A. on 15 March2022 and will be in operation from 2023.

2023. This document has been subjected to a limited

Respect for Human Rights

This document constitutes the consolidated non-all the functions in the areas in which the Group

review in accordance with the International Standard

financial statement (also “NFS” or “Sustainability

operates, which were coordinated centrally by theon Assurance Engagement (ISAE 3000 Revised) by

Report”) of companies belonging to the industrial

work team dedicated to this project.

EY S.p.A.. The audit was carried out according to thegroup consisting of El.En. S.p.A. (also the “Parent

The scope of the economic and financial dataprocedures set out in the “Auditor's Report”, included

Company”) and its subsidiaries (also the“El.En.Group”

and information is the same as in the consolidated

in this document. Quantitative indicators that do notor the “Group”). The NFS reports its performance,

financial report. The scope of the social andrefer to any general or topic-specific disclosure of

results and impact, to the extent necessary to ensure

environmental

the GRI Standards, which are reported on the pages

an understanding of the company's activities, on theconsists of the companies consolidated on a line-by-

issues deemed relevant and provided for in Art 3 andline basis within the consolidated financial report.

data

and

information

presented

4 of Legislative Decree no. 254/16 with reference tothe financial year 2022 (1 January to 31 December).

It should be noted that the subsidiary Lasit S.p.A.

As required by Art. 5 of Italian Legislative Decree

established the 60%-owned company LASIT Láser

254/16 this document constitutes a separate report

Ibérica S.L. on 1 October 2022.

from the management report, marked with an

It should also be noted that in the last days of 2022,

appropriate wording in order to relate it to the NFS

the subsidiary Penta Laser Zhejiang 'Penta Laser'

required by the regulations.

acquired 60% control of KBF Laser Tech co. "KBF"

The NFS represents a first element for an increasinglyof Shenzhen, a manufacturer of laser systems fortransparent

andstructured

sustainability

communication, as well as the tool for communicatingtheannualresults

in

terms

of

sustainability

indicated in the Content Index, are not subject tolimited review by EY S.p.A..

The Group oversees this issue through the adoption
and dissemination of its Code of Ethics, which requires
compliance with the UN Universal Declaration of
Human Rights and also requires compliance by its
main suppliers. Specifically, the Parent Company
envisages adherence to the Code of Ethics byconsultants, distributors, agents and suppliers ofcritical components. The parent company and all
subsidiaries have adopted a “Human rights policy”,
fulfilling the commitment made in the Sustainability

The El.En. Group, aware of its social responsibility
towards society and the environment, has embarked
on a path of continuous development in the areaof sustainability, which materialised in 2018 in the
preparation of a first Group Sustainability Planapproved by the Board of Directors of El.En. S.p.A.;

Plan. This Policy has been disseminated to all Group
employees. In 2020, training was carried out forGroup executives and managers on this subject, andin 2021 this topic was repeated as part of training
on the Sustainability Plan for certain categories of
employees In 2022, training on El.E.n Group Policies

batteries for electric vehicles: this company was

the actions aimed at achieving the set targets andwas carried out, which reached 899 employees andexcluded from the NFS's reporting as well as from thethe results achieved are indicated in the chapter

where, of course, Human Rights issues were also

economic data in the balance sheet.

“Sustainability”. It is also reported that:covered. A “Diversity Policy” was adopted in 2022 andperformance achieved by the Group during 2022.

For further details on corporate transactions in 2022,

This NFS has been prepared by adopting the "inplease refer to the Consolidated Financial Report asaccordance with" option, in accordance with theat 31.12.2022.

"GRI Sustainability Reporting Standards" published in

The information and data shown refer to the year

2016 by the "GRI – Global Reporting Initiative" and2022 (1 January 2022 to 31 December 2022). In order

updated subsequently. Furthermore, the guidelines

to allow comparability of the data over time, dataof the EC Guidelines 2017/C215/01 were also taken

for the year 2021 and in some cases the year 2020

into account where appropriate.

have been reported in order to have a comparison

The selection of aspects and indicators to define theover the three-year period. Restatements of previously

content to be reported was carried out taking into

published comparative data are clearly indicated as

account the information considered to be of thesuch. During 2022, no critical issues emerged andhighest priority for the Group and its stakeholders,

therefore no critical issues were reported to the Board

through a materiality analysis process described inof Directors.

approved by the Board of Directors of El.En. S.p.A. andEnvironmental themes
The

Group

pays

attentiontothesubsequently approved by all subsidiaries on their
responsible

Boards, if any, disclosed to all employees.

management of its activities, seeking a balanceFight against active and passive corruption

between economic objectives and unavoidablehas

The subject is governed by the Group's Code of Ethics,

approved an “Environmental Policy”, fulfilling thecompliance with which is required of all affiliatedcommitment made in the Sustainability Plan. This

companies,

Policy, which was updated, re-approved and adopted

Furthermore, the topic is overseen by the parent

by all subsidiaries, was disseminated to all Group

company and its subsidiaries Deka M.E.L.A. S.r.l. andemployees during the year. From 2021 onwards, most

Quanta System S.p.A. within the framework of theof the Group's companies have targeted projects

Organisational Model pursuant to Legislative Decreewith the aim of improving their environmental impact.

231/2001. The parent company and all subsidiaries

performance and to ensure the reliability of the data,

Subsidiaries Penta Laser Wenzhou and Penta Laser

have adopted an “Anti-Corruption Policy”, fulfillingthe use of estimates has been limited as much as

Shangdong have obtained ISO 14001 certification

the commitment made in the Sustainability Plan. This

noted that, in view of the Group's business activities,

possible, and where they exist, they are based onfor environmental management and ISO 45001 for

Policy was amended during the year, re-approved

atmospheric

the best available methodologies and appropriately

occupational health and safety in previous years;

by El.En. and its subsidiaries and disseminated to all

greenhouse gas emissions were not relevant to thereported.

Penta Laser Wenzhou has also obtained ISO 50001,

Group employees. In 2020, training was conductedunderstanding of the company activity.

The frequency of the reporting of non-financial

which guarantees access to clean, reliable andfor Group executives and managers on this issue,

The reporting and drafting of this document involved

information and the publication of the NFS is set on

sustainable energy. Four photovoltaic plants for theand in 2021, training on the Sustainability Plan was

section 1.2 “Materiality analysis” of this document.
With regard to the information provided for in Art
3(2) of Legislative Decree no. 254/16 it should be
pollutantemissions

other

than

In order to provide a fair representation of the Group's

170

environmental

requirements.

The

Group

171

subsidiaries

and

major

suppliers.

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

conducted for certain categories of employees,

production companies, the certified companies

which also contained information on anti-corruption

oversee employee management issues. In particular,

policies. During 2022, training in this area was

the parent company carried out a thorough job ofconducted for the Group's middle and senior

codifying human resources management procedures

managers and those in coordination functions, which

as well as profiling corporate functions with thereached 191 employees.

identification of the necessary responsibilities and skills.
Supply chain issues

Social themes
The Group pays particular attention to the quality

As set out in the Code of Ethics, the Group aims toand safety of its products, and to this end, the Group's

establish relations with suppliers inspired by themain production companies have adopted a quality

principles of fairness and transparency. In light of the

management system, obtaining ISO 900117 and ISO
1348518 certification for the quality management
system for medical devices. The Group also bases
its critical success factors on its ability to innovate,
which is evidenced by its investment in research anddevelopment aimed at creating innovative systems
and applications to meet customer needs and tocreate new ones.

company's renewed and growing interest in supply
chain issues, the Group is committed to taking actions
towards its suppliers to define and share principles,
good social and environmental practices and ethicalbehaviour aimed at promoting a responsible andsustainable supply chain. Specifically, the commitment
is to expand and deepen these aspects in a dedicatedCode of Conduct: the deadline had been set for 2022,
however the years 2020 and 2021, heavily conditionedby the restrictions caused by the Covid 19 pandemic,

Personnel-related topics
The Group has codified in the Code of Ethics its

have pushed this target back to 2023.

commitment to respect and protect the dignity,

The Group has begun to integrate the process ofhealth, safety and privacy of its employees andqualification, selection and evaluation of suppliers incollaborators. In 2022 the Board of Directors of El.En.

Italy and abroad, including environmental and social

S.p.A. approved a “Diversity Policy”, fulfilling thecommitment made in the Sustainability Plan. The
Policy has been disseminated to all Group employees

criteria in the checklist for evaluating a potential new
supplier for some subsidiaries, reaching 20% of new
suppliers by 2022.

and during 2023 the subsidiaries will approve it at

Lastly,their Boards, if any.

process of non-financial information in 2020 within

Furthermore, as part of the quality managementa procedure that defined roles, responsibilities andsystem (ISO 9001) adopted by the Group's main

timelines.

thecompany

formalisedthereporting

17
Company certified ISO 9001: ASA S.r.l., El.En S.p.A., Deka M.E.L.A. S.r.l., Penta Chutian Laser (Wuhan) Co. Ltd, Penta Laser Technology(Shangdong) Co. Ltd, Penta Laser Technology (Shangdong) Co., Ltd. and Quanta System S.p.A.;
18

Company certifiedISO 13485: ASA S.r.l., El.En S.p.A., Deka M.E.L.A. S.r.l., Quanta System S.p.A. and Asclepion Laser Technologies GmbH.

172

173

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

10. PERFORMANCE INDICATORS

Total number of employees divided by employee category and gender
31 december 2022

Data related to human resources
Total number of employees by country, gender and type of contract
31 december 2022

31 december 2021

31 december 2020

31 december 2021

31 december 2020

Men

Women

Total

Men

Women

Total

Men

Women

Total

ITALY

716

231

947

631

201

832

545

183

728

Executives

43

4

47

41

4

45

39

3

42

Middle managers

37

9

46

31

6

37

33

8

41

White collar
employees

297

212

509

276

187

463

235

169

404

Blue collar employees

339

6

345

283

4

287

238

3

241

REST OF EUROPE

125

65

190

122

53

175

112

49

161

Executives

4

-

4

1

-

1

-

-

-

Middle managers

12

2

14

10

5

15

14

4

18

White collar
employees

41

39

80

69

32

101

98

45

143

Men

Women

Total

Men

Women

Total

Men

Women

Total

716

231

947

631

201

832

545

183

728

Permanent contract

659

205

864

565

184

749

516

176

692

Fixed term contract

57

26

83

66

17

83

29

7

36

125

65

190

122

53

175

112

49

161

Permanent contract

122

64

186

117

49

166

112

49

161

Fixed term contract

3

1

4

5

4

9

-

-

-

Blue collar employees

68

24

92

42

16

58

-

-

-

REST OF THE WORLD

787

181

968

716

179

895

586

151

737

REST OF THE WORLD

787

181

968

716

179

895

586

151

737

Permanent contract

66

45

111

54

39

93

52

29

81

Executives

11

2

13

10

2

12

11

4

15

Fixed term contract

721

136

857

662

140

802

534

122

656

Middle managers

34

9

43

36

9

45

33

7

40

559

164

723

464

152

616

395

132

527

ITALY

REST OF EUROPE

TOTAL FOR THE GROUP

1.628

477

2.105

1.469

433

1.902

1.243

383

1.626

White collar
employees

Permanent contract

847

314

1.161

736

272

1.008

680

254

934

Blue collar employees

183

6

189

206

16

222

147

8

155

Fixed term contract

781

163

944

733

161

894

563

129

692

TOTAL FOR THE GROUP

1.628

477

2.105

1.469

433

1.902

1.243

383

1.626

Executives

58

6

64

52

6

58

50

7

57

Middle managers

83

20

103

77

20

97

80

19

99

White collar
employees

897

415

1.312

809

371

1.180

728

346

1.074

Blue collar employees

590

36

626

531

36

567

385

11

396

Total number of employees by country, full time/part time by gender
31 december 2022

31 december 2021

31 december 2020

Men

Women

Total

Men

Women

Total

Men

Women

Total

ITALY

716

231

947

630

202

832

545

183

728

Full time

710

199

909

624

178

802

536

159

695

Part time

6

32

38

6

24

30

9

24

33

REST OF EUROPE

125

65

190

122

53

175

112

49

161

Full time

121

52

173

119

41

160

110

40

Part time

4

13

17

3

12

15

2

REST OF THE WORLD

787

181

968

716

179

895

Full time

779

170

949

712

166

Part time

8

11

19

4

TOTAL FOR THE GROUP

1.628

477

2.105

Full time

1.610

421

Part time

18

56

Total number of employees divided by employee category and gender*
31 december 2022

31 december 2021

31 december 2020

M

M

W

W

Tot

M

M

W

W

Tot

M

M

W

W

Tot

Executives

58

91%

6

9%

64

52

90%

6

10%

58

50

88%

7

12%

57

150

Middlemanagers

83

81%

20

19%

103

77

79%

20

21%

97

80

81%

19

19%

99

9

11

897

68%

415

32%

1.312

809

69%

371

31%

1.180

728

68%

346

32%

1.074

586

151

737

White
collaremployees

878

586

144

730

Blue collar
employees

590

94%

36

6%

626

531

94%

36

6%

567

385

97%

11

3%

396

13

17

-

7

7

Total

1.628

77%

477

23%

2.105

1.469

77%

433

23%

1.902

1.243

76%

383

24%

1.626

1.468

434

1.902

1.243

383

1.626

2.031

1.455

385

1.840

1.232

343

1.575

74

13

49

62

11

40

51

Percentage of employees by employee category and age group
31 december 2020
<30

% <30

30-50

% 30-50

>50

% >50

Tot

7

7%

24
64

42%
65%

33
28

58%
28%

57
99

White collar
employees

259

24%

699

65%

116

11%

1.074

Blue collar
employees

130

33%

224

57%

42

10%

396

Executives
Middle managers*“It should be noted that for the company Asclepion GmbH (which falls under the category “rest of Europe”) in 2021, it was not possible to distinguish the number of employees
falling into the categories of white-collar and blue-collar workers, which is why employees were reported in the white-collar category only. For 2022, this breakdown was achieved
and the figure for 2021 has been updated in the following tables to also ensure comparability with this year's data.

174

175

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

Percentage of employees by employee category and age group*

Avarage hours of training per employee category and gender
31 december 2022

31 december 2021
<30

% <30

30-50

% 30-50

>50

% >50

Tot

Executives

-

-

24

41%

34

59%

58

Middle managers

1

1%

69

71%

27

28%

97

White collar
employees

297

25%

759

64%

127

11%

1.180

Blue collar
employees

180

32%

313

55%

72

13%

Men
n. hours

Averageper capita
men

Women
n. hours

Averageper capita
womenTotal hours

Avaragetotal
per capita

30.678

19

8.793

18

39.471

19

Executives

910

16

91

15

1.000

16

Middlemanagers

1.898

23

224

11

2.121

21

White collar
employees

15.148

17

8.206

20

23.354

18

Blue collar
employees

12.72322274

812.996

21

TOTAL

567

Percentage of employees by employee category and age group
31 december 2022
<30

% <30

30-50

% 30-50

>50

% >50

Tot

Executives

-

-

26

41%

38

59%

64

Middle managers

2

2%

72

67%

33

31%

107

White collar
employees

313

24%

855

65%

146

11%

1.314

Blue collar
employees

205

33%

343

55%

72

12%

620

Employee health and safety indicators

Avarage hours of training per employee category and gender
31 december 2020
Men
n. hours

Averageper capita
men

Women
n. hours

Averageper capita
womenTotal hours

Avaragetotal
per capita

17.964

14

9.147

24

27.111

17

Executives

458

9

116

17

574

10

Middle managers

1.300

16

436

23

1.736

18

White collar
employees

11.868

16

8.474

24

20.341

19

Blue collar
employees

4.339

11

122

11

4.461

11

TOTAL

Women
n. hours

25.163

17

Executives

627

Middlemanagers

Total hours

8.351

19

33.514

18

12

28

5

655

11

877

11

115

6

992

10

White collar
employees

12.297

16

7.954

21

20.912

18

Blue collar
employees

10.69320263

710.95519

Men
n. hours
TOTAL

2021

2020

20

13

19

-

1

-

-

-

-

2022
1.000.000

2021
1.000.000

2020
1.000.000

Hours worked

3.928.775

3.689.473

2.648.841

Health and safety indicators

2022

2021

2020

Rate of work related injuries

5,09

3,52

7,17

-

-

-

-

-

-

2022

2021

2020

1

-

-

-

-

-

-

-

-

Non-employee health and safety indicators
Injuries
Total recordable work-related injuries
Total high-consequence work-related
injuries (excluding fatalities)
Total number of fatalities as a result ofwork-related injuries
number of hours / days
Multiplier

31 dicembre 2021
Averageper capita
women

2022

Total recordable work-related injuries
Total high-consequence work-related
injuries (excluding fatalities)
Total number of fatalities as a result ofwork-related injuries
number of hours / days
Multiplier

Rate of high-consequence work-related
injuries (excluding fatalities)
Rate of number of fatalities as a result ofwork-related injuries

Avarage hours of training per employee category and gender*

Averageper capita
men

Injuries

Avaragetotal
per capita

Hours worked*

2022
1.000.000

2021
1.000.000

2020
1.000.000

217.489*205.210**-

Health and safety indicators

2022

2021

2020

Rate of work related injuries

4,60

-

-

-

-

-

-

-

-

Rate of high-consequence work-related
injuries (excluding fatalities)
Rate of number of fatalities as a result ofwork-related injuries*
From this financial year onwards, the non-employee category also includes staff leasing, temporary work and internship contracts for a total of 103 persons as at 31 December 2022:
the hours worked were reported on time and amounted to 106,787. This category also includes the employees of the various external contracting companies, amounting to 66 persons,whose working hours were estimated on the basis of the hours stipulated in the contracts with these companies.
*
Please note that the breakdown of white and blue-collar workers for the company Asclepion GmbH (which falls under the category "rest of Europe") was not shown correctly in 2021:
for this reason and to ensure comparability with this year's figures, the 2021 figure has been updated in the tables above.

176

**

It should be noted that in 2021, only the hours worked by employees of external contractors were reported, and for this reason, in order to ensure comparability with this year's figures,the 2021 figure was updated by adding the hours worked by contractors in 2021.

177

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

Environmental data

REST OF WORLD

Energy consumption

19

Type of fuel

ITALY
Type of fuel2022
Consumption [UoM]

2021
GJ

Consumption [UoM]

Consumption [UoM]

Consumption [UoM]

2021
GJ

Consumption [UoM]

Natural Gas

m

-

-

m

GJ

Diesell

16.726

601

2020
GJ

2022

3

2020
GJ

Consumption [UoM]

-

-

m

l

14.753

529

3

GJ

-

-

l

12.381443

3Natural Gas

m3

296.552

10.642m3

241.0528.639

m3

251.504

8.878

Gasolinel42.1971.371

l36.6061.193

l24.612

795

Diesell

360.936

12.968l

319.129

11.452l

260.887

9.340

PLG

l

-

-

l

-

-

l

-

-

l

16.997362

l12.591268

l15.758335

kWh1.950.945

7.023

kWh

1.952.201

7.028

kWh

1.421.266

5.117

kWh

-

-

kWh

-

-

kWh

-

-

Gasolinel26.010845

l13.848

451

l

3.827

124

PLG

l

5.118

125

l

4.056

99

l

3.073

75

Renewable fuel(bio-ethanol)

l

-

-

l

-

-

l

-

-

Electricity
purchased

kWh4.515.672

16.256kWh

3.818.907

13.748kWh3.213.503

11.569from renewablesourceskWh567.769

2.044

kWh

-

-

kWh

-

-

kWh

46.855169

kWh42.773154

kWh45.339163

Electricity
self-producedby photovoltaic
plantsElectricity
self-produced andsold to the networkfrom renewablesources
TOTAL

kWh

16.872

61

kWh18.95868

kWh22.050

79

kWh

4.938

18

kWh

3.784

14

kWh

7.056

25

40.943GJ

34.475GJ

GJ

30.069Renewable fuel(bio-ethanol)
Electricity
purchasedfrom renewablesources
Electricity
self-producedby photovoltaic
plantsElectricity
self-produced andsold to the networkfrom renewablesources
TOTAL

2022
Consumption [UoM]

2021
GJ

Consumption [UoM]

Consumption [UoM]

-

kWh

-

-

kWh

-

-

kWh

-

-

kWh

-

-

kWh

-

-

kWh

-

-

kWh

-

-

kWh

-

-

GJ

-

9.357

GJ

-

9.019

GJ

-

6.690

2022
Type of fuelConsumption [UoM]

2021
GJ

Consumption
[UoM]

2020
GJ

Consumption
[UoM]

GJ

Natural Gas

m3

377.127

13.533m3

283.583

10.164m3

295.336

10.425

GJ

Diesell443.891

15.948l416.546

14.948l

390.937

13.9962020
GJ-

ENERGY CONSUMPTION OF THE GROUPREST OF EUROPE
Type of fuelkWhNatural Gas

m3

80.5752.891

m3

42.5311.524

m343.832

1.547

Gasolinel

88.5702.877

l60.7611.981

l35.947

1.161

Diesell

66.2292.379

l82.6642.966

l117.669

4.213

PLG

l

5.118

125

l

4.056

99

l

3.073

75

Gasolinel20.364661

l10.308

336

l

7.508

243

l

16.997362

l12.591268

l15.758

335

PLG

l

-

-

l

-

-

l

-

-

kWh

6.795.933

24.465kWh

6.077.661

21.880kWh4.902.035

17.647

l

-

-

l

-

-

l

-

-

kWh

864.262

3.112

kWh

287.876

1.036

kWh

-

-

kWh

329.316

1.186

kWh

306.553

1.104

kWh

267.266962

kWh296.493

1.068

kWh

287.876

1.036

kWh

-

-

kWh

92.863334

kWh84.127303

kWh95.184343

kWh46.008166

kWh41.354

149

kWh49.845

179

kWh18.31666

kWh20.86175

kWh24.339

88

kWh

6.382

23

kWh

5.687

20

kWh

9.345

34

kWh

1.444

5

kWh

1.903

7

kWh

2.289

8

TOTAL

GJ

-

57.578GJ-

49.567GJ-

43.895

kWh

1.444

5

kWh

1.903

7

kWh

2.289

8

from renewablesources

GJ

3.784

GJ

1.587

GJ

7.289

GJ

6.072

GJ

Renewable fuel(bio-ethanol)
Electricity
purchasedfrom renewablesources
Electricity
self-producedby photovoltaic
plantsElectricity
self-produced andsold to the networkfrom renewablesources
TOTAL

GJ

Renewable fuel(bio-ethanol)
Electricity
purchasedfrom renewablesources
Electricity
self-producedby photovoltaic
plantsElectricity
self-produced andsold to the networkfrom renewablesources

7.136

19
The data related to energy consumption for the month of December 2021, unless otherwise specified, have been taken from the invoices issued by the suppliers of energy services. The
consumption of vehicle fuel for the cars belonging to the Italian companied located in Calenzano and Quanta System,have been estimated on the basis of the cost,by means of the average
price of gas and diesel fuel (Euros per liter) as reported on the site of the Ministry of Economic Development.For the automobiles with mixed use,we considered as 70% of the total consumed.Inorder to calculate the energy consumption in GJ we used the conversion factors of the Department for Environmental Food & Rural Affairs (DEFRA),UK,for the 2020,2021 and 2022 respectively.

178

179

644

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

Emissions

Water consumption

Scope 1 and Scope 2 emissions (location-based method)
GROUP TOTAL
2022

2021

2020

2022

EMISSIONS (ton CO2eq)
Scope 1

Scope 2

TotaleScope 1

Scope 2

TotaleScope 1

Scope 2

Totale

Italy

1.585

1.422

3.008

1.321

1.203

2.524

1.186

1.080

2.226

Rest of Europe

376

132

507

316

116

432

405

117

521

Rest of World

134

1.156

1.291

117

1.160

1.277

85

854

939

Total

2.095

2.710

4.806

1.755

2.479

4.234

1.676

2.051

3.726

Scope 1 and Scope 2 method (market-based method)
2022

2021

2020

EMISSIONS (ton CO2eq)
Scope 1

Scope 2

TotaleScope 1

Scope 2

TotaleScope 1

Scope 2

Totale

Italy

1.585

2.051

3.636

1.321

1.751

3.073

1.186

1.497

2.684

Rest of Europe

376

200

576

316

4

320

405

150

554

Rest of World

134

1.156

1.291

117

1.160

1.277

85

675

760

Total

2.095

3.408

5.503

1.755

2.915

4.670

1.676

2.322

3.998

Source of water

2021

2020

All areas[ML]

Areas withwater stress22[ML]

All areas[ML]

Areas withwater stress22[ML]

All areas[ML]

Areas withwater stress22[ML]

Third-party water21

53

9

44

10

34

8

Surface water

-

-

-

-

-

-

Groundwater

-

-

-

-

-

-

Seawater

-

-

-

-

-

-

Produced water

-

-

-

-

-

-

Others

-

-

-

-

-

-

Total

53

9

44

10

34

8

For the calculation of the Scope 1 2019, 2020 and 2021 emissions we have considered respectively theemission factors of Department for Environmental Food & Rural Affairs (DEFRA) 2020, 2021 e 2022.
For the calculation of Scope 2 emissions we have used different factors based on the calculation methods ofthe different countries. In particular:•

For the location-based method we have used average emission factors related to the generation ofnational energy for the different countries in which we operate as reported in the publication Confronti
Internazionali, Terna 2018 and 2019 respectively for 2020, 2021 e 2022;20•

For the market-based method we used average emission factors derived from the production of electricity
in the EU for Italy, France and Germany, published in the document Residual Mix Results, Association of
issuing bodies (AIB), 2019, 2020 and 2021 respectively for 2020, 2021 and 2022. For the other countries wehave used the same factors used for the location-based method.based."21

It should be noted that all the water withdrawn can be classified as fresh water

It should be noted that the Scope 2 emissions calculated with the emission factors published by Terna in the International Comparisons document are expressedin tons of CO2 ; in any case, the percentage of methane and nitrous oxide has a negligible effect on the total emissions of greenhouse gas (CO2eq), as can be seenfrom the specific technical literature.

It should be noted that the water risk areas are the geographical areas where there is a temporary or prolonged lack of water, usually missing in the ground. The
data was collected on the web site Beta Acqueduct - water risk atlas.

180

181

20

22

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

Chart illustrating the material topics and their boundaries
For every issue which has been identified as material, the chart below shows the relation with the GRI, a brief
description of the relevance of the issue, for the Group, the relative scope (where the impact is felt and the
involvement of the Group):

Topic of D.Lgs.
254/2016

Nr.

Material topic

Description

Ethics, integrity andcompliance

Promotion of good corporate governanceand respect of the standards related to ethics,
integrity and conformity to the law, regulations
and Codes for the self-disciplining of thecategory.

Topic of D.Lgs.
254/2016

GRI

Nr.

7

Material topic

Supply chain
practices205-3

Corruption

1

207-1
207-2
207-3
207-4
8

2 - 27
302-1

Environment

2

Environmental
performance

Commitment of the Group for the reductionof itsenvironmental impact through the monitoring
andefficiency of consumption, the reduction ofgreen
house emissions, and the development ofpolicies and procedures intended to mitigate
the impact.

Research,development andinnovation

303-1
303-2
303-3
305-1
305-2

Social9Commitment to thecommunity and theterritory

306-2
306-3

3

4
HR

5

Human
Rights6

Health and safety ofworkers

Employee growth
and training

Diversity, equal
opportunities andnon-discrimination

Human rights andworking conditions

Respect of the regulations and writtenagreements and promotion of initiatives andpractices aimed at minimizing the risks to thehealth and safety of their people.

Offers of development and training sessions
aimed at improving the knowledge of theirpeople and consolidate their professional
qualifications.
Development of practices and work
conditions thatare adequate to insure equal opportunity
throughthe removal of every form of discriminationand moral
or psychological violence related to gender,age,
ethnicity, religion or sexual orientation.

Respect, promotion of human rights andthe working conditions for conducting theiractivity (prohibition of child or forced labor
and respect of the Ethics and Behavior
Codes).

182

10

11
401-1
404-1

GRI

Responsible management of purchases
along all of
the supply chain of the organization,
evaluationand screening of suppliers on the basis of
their social and environmental performanceand promotion of socially responsible
behavior and practices which stimulate thesupplier to adopt sustainable practices.

204-1

Research activities aimed at continually
improving the quality and innovation of the
product
and guaranteeing, when possible, thesafeguardingof the intellectual property.
Commitment of the Group in the relations
with public
institutions, collaboration andcontributions to the creation of researchand development activities.

308-1

414-1

-

201-1

Indirect social impact related to the useof the products of the Group by means of
donations which benefit the collectivity.

306-1

403-1
403-2
403-3
403-4
403-5
403-6
403-7
403-9

Description

Customersatisfaction

The Group intends to release on the market
products that are innovative and high quality
in order to fully satisfy the expectations of
their clients. The satisfaction of their clients is
one of the main objectives of the Group.

-

Product quality andsafetyIdentification and reduction of potential risks
to thehealth and safety related to products along
the entire
chain of values.

416-2

405-1

406-1

407-1
408-1
409-1

183

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

10. GRI CONTENT INDEXGENERAL INFORMATION
24 - 28; 74-77; 99 - 102;107 - 109; 112 - 113;
138; 142 - 143; 145-147;
154-155; 157; 160-162;

The chart below shows the information of the Group based on GRI Standards with reference to themateriality of El.En.. For all of the information supplied we have given the relative page number in thisdocument.

2-25

Processes to remediate negative impacts

2-26

Mechanisms for seeking advice and raising concerns

GENERAL INFORMATION

2-27

Compliance with laws and regulations

17 - 18; 63; 74 - 76
74 - 75; 109; 185 - 187

Statement ofuse

El.En. Group has reported in accordance with the GRI Standards for the period
January 1 st - December 31 th 2022

2-28

Membership associations

22 - 23

GRI 1 used

GRI 1: Foundation 2021

2-29

Approach to stakeholder engagement

17 - 23

Applicable
GRI Sector
Standard(s)Not applicable

2-30Collective bargaining agreements

140 - 141

GRI Standard

Disclosure

2-1

Organizational details

2-2

Entities included in the organization’s sustainability reporting

Location
54 - 56

SPECIFIC INFORMATION

54 - 55; 170 - 171

GRI Standard

170 - 171;
sustainability@elen.it

2-3

Reporting period, frequency and contact point

2-4

Restatements of information

176 - 177

2-5

External assurance

170 - 171

2-6

Activities, value chain and other business relationships

2-7

Employees

2-8Workers who are not employees

2-9

Governance structure and composition

68 - 72

Economic performance

2-10

Nomination and selection of the highest governance body68 - 70

2-11

Chair of the highest governance body69 - 70

2-12Role of the highest governance body in overseeing themanagement of impacts

68 - 70

2-13

Delegation of responsibility for managing impacts

68 - 70

2-14

Role of the highest governance body in sustainability
reporting70 - 71

Disclosure

Location

Material topics
3-1

Process to determinematerial topics

23

3-2

List of material topics

23 - 28

3-3Management of material
topics28; 182 - 183

201-1

Direct economic value
generated and distributed

64 - 65

3-3Management of material
topics28; 182 - 183

204-1

Proportion of spending on
local suppliers

109

3-3

Management of material
topics25; 182 - 183

205-3

Confirmed incidents ofcorruption and actions
taken

During three years
2020 - 2021 - 2022
no cases of corruption
were reported.

60 - 62; 107 - 109; 112 113; 120 - 125
136 - 141; 174 - 176
177

2-15

Conflicts of interest

2-16

Communication of critical concerns

2-17Collective knowledge of the highest governance body30 - 45; 68 - 70

2-18

Evaluation of the performance of the highest governance body24 - 28; 70 - 71

2-19

Remuneration policies

70 - 72

2-20

Process to determine remuneration

69 - 72

2-21

Annual total compensation ratio

72

2-22

Statement on sustainable development strategy

8 - 10; 16; 30 - 45; 48

2-23

Policy commitments

34; 38; 43; 74-76; 171 - 172

2-24

Embedding policy commitments

Procurement practices

70
69 -70Anti-corruption

30 - 45; 81 - 82

184

185

Omissions

GRI Standard

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

SPECIFIC INFORMATIONSPECIFIC INFORMATION

Disclosure

Location

Tax
Management of material
topics25; 182 - 183

207-1

Approach to tax

62 - 63

207-3
207-4

Tax governance, control, andrisk management
Stakeholder engagement andmanagement of concerns
related to tax

62 - 63

3-3Management of material
topics25; 182 - 183

302-1

Energy consumption within
the organization

154 - 155; 159; 178 - 179

EnergyWater and effluentsManagement of material
topics25; 182 - 183

303-1

Interactions with water as ashared resource

162; 181

303-2

Management of water
discharge-related impacts

162; 181

303-3

Water withdrawal

162; 181

Emissions

305-1
305-2

Management of material
topicsDirect (Scope 1) GHG
emissions
Energy indirect (Scope 2)
GHG emissions

25; 182 - 183

Location

308-1

Management of material topics

28; 182 - 183

New suppliers that were screenedusing environmental criteria

During three years
2020 - 2021 - 2022 nosuppliers in the supply chain
suppliers who present asignificant risk in terms ofenvironmental impact.

Management of material topics

26; 182 - 183

Employment

New employee hires and employee
turnover
Occupational health and safety
401-1

141

3-3

Management of material topics

26; 182 - 183

403-1

Occupational health and safety
management system

145 - 147

403-2

Hazard identification, risk assessment,
and incident investigation

81; 86; 145 - 147

403-3

Occupational health services

145 - 147

403-4

Worker participation, consultation, andcommunication on occupational healthand safety

145 - 147

403-5

Worker training on occupational
health and safety

142 - 143; 145 - 147

403-6

Promotion of worker health148 - 149403-7

Prevention and mitigation ofoccupational health and safety
impacts directly linked by business
relationships

26; 36; 81; 99 - 102;145 - 147

403-9

Work-related injuries

147; 177

160 - 161; 180

Training and education

160 - 161; 180

3-3Management of material topics

26; 182 - 183

404-1

Average hours of training per year per
employee

142 - 143; 145; 176 - 177

Waste
3-3

Management of material
topics25; 182 - 183

306-1

Waste generation andsignificant waste-related
impacts

During three years
2020 - 2021 - 2022
no cases of
non-conformity withenvironmental laws andregulations took place

306-2

Management of significant
waste-related impacts

157

306-3

Waste generated

157

186

3-3

3-3
62 - 633-3Disclosure

62 - 63

Country-by-country reporting

3-3

GRI Standard
Supplier environmental assessment

3-3

207-2

Omissions

Diversity and equal opportunity
3-3Management of material topics

26; 182 - 183

405-1

Diversity of governance bodies andemployees

69 - 70; 136 - 141

3-3Management of material topics

26; 182 - 183

406-1

Incidents of discrimination andcorrective actions taken

During three years
2020 - 2021 - 2022
no cases related
to discriminatory practices
occurredNon-discrimination

187

OmissionsConsolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

SPECIFIC INFORMATIONGRI Standard

Disclosure

Location

Omissions

Freedom of association and collective bargaining
3-3Management of material topics

26; 182 - 183

407-1

Operations and suppliers inwhich the right to freedomof association and collective
bargaining may be at risk

During three years
2020 - 2021 - 2022
no incidents at supply chain
suppliers about forced orcompulsory child labor orwhere the right to freedomof association and collective
bargaining may be at risk.

3-3Management of material topics

27; 182 - 183

408-1

Operations and suppliers at
significant risk for incidents ofchild labor81 - 82; 107 - 109; 171 172

3-3

Management of material topics

27; 182 - 183

409-1

Operations and suppliers at
significant risk for incidents offorced or compulsory labor81 - 82; 107 - 109; 171 172

Management of material topics

29; 182 - 183

New suppliers that werescreened using social criteria

During three years
2020 - 2021 - 2022
no cases of non compliance
took placein relation to health andsafety issues of productsChild labor

Forced or compulsory labor

Supplier social assessment
3-3

414-1

Customer health and safety
3-3Management of material topics

29; 182 - 183

416-2

Incidents of non-complianceconcerning the health and safety
impacts of products and services

81; 99 - 102; 112 - 113;
116

Research, development and innovation
3-3Management of material topics

29; 182 - 183

Management of material topics

29; 182 - 183

Customer Satisfation
3-3

188

189

Consolidated Non-Financial Statement 2022

Consolidated Non-Financial Statement 2022

190

191

El.En. S.p.A.
• Via Baldanzese 17 - 50041 Calenzano - Florence (Italy)• Tel. +39 055 8826807 • Fax +39 055 8832884• www.elengroup.com • sustainability@elen.it