Index

The Fedrigoni Group
Sustainability Report

Annual Financial
ReportAnnualReport2022

IndexFedrigoni today
Founded in 1888

€2.211 Billion Adjusted Turnover
2022* (+37% vs. 2021)€340 Million Pro Forma Adjusted

EBITDA 2022* (+54% vs. 2021)

5,000 people in 28 countries
slitting, and distribution centers

25,000 products
Distributing in 132 countries*Data refer to pro forma adjusted data includedin the Consolidated Annual Report of Fiber Bidco S.p.A.,
including 12 months contribution of Tageos,
Guarro Casas, Zuber Rieder, Unifol and exclude
Banknotes business.

Distinctive and premium
product offering
Deliver the best premium andsustainable solutions. Continue toinnovate and create opportunities
both in existing and new markets.

Superior customer intimacy
and experience
Build unique relationships
with customers and end-users.
Understand and respond to theirneeds and provide an outstanding yet
personalised service and experience.

Operational excellenceContinually improve our industryleading operations, supply chain,and sourcing. Maintain agility,
efficiency, and flexibility in our
production as we scale.

Performance culture and people
growth accelerator
Lead the industry by caring forour people. Attract, engage, develop,
recognise, and boost opportunities
for everyone to collectively makea difference.

Recognised industry consolidator
Acquire and integrate companies
to expand globally, add capabilities
and technologies, and enteradjacent/new markets.

ESG informs everything we do
Deliver growth sustainably. Lead thetransformation of our industry, byleveraging diverse talents, managing
our business ethically, innovating with
cutting-edge, environmentally friendly
solutions, and constantly reducing ourfootprint on carbon, waste, and water.

Our Mission:
what we do
To be the partner of choice of brands,
creatives, converters, and printersby providing sustainable premium
products and superior customer
experiences.

Our Vision:
what we aim at
We strive to become the global leader
in sustainable and innovative labels,
self-adhesives, and specialty
papers for premium packaging
and creative solutions.

Our Culture
Discover Extraordinary Every Day

Annual Financial
ReportHighlights

Elevating creativity. Make materials asource of creative possibilities
for brands everywhere.

Sustainability Report

68 between production sites,

Our Strategy:
how we get there
The Fedrigoni Group

Fedrigoni is synonymouswith excellence in theworld of specialty papers
for luxury packaging,graphics, high-end
publishing, fine arts,
premium labels, andself-adhesive materials.
We guarantee the same
quality and service level
everywhere, thanks to ouroffices and warehouses
all over the world.

Our Purpose:
why we exist

IndexOur sustainability journey
Making Progress

Environment

Social & Governance

Environment

Product Development

323 kt CO₂ emissions-37% of Injury Frequency Rate

-30% absolute scope 1 and 2

100% of products designed for

25% of women in

90% of suppliers by spend,

45% suppliers by spend,(from 21.1 to 13.3)

covering purchased goodand services and capital goods,
with science-based targets

managerial positions

89% recovered waste

Performance Conversations

31% people involved in

Product Development Transparency andaccording to ESG criteria

100% purchase of FSC COC
and CW certified pulp

covering purchased goods
and services and capital goods,
will have science-based targets
by 2027

100% of waste sent for recovery
and not sent to landfill-10% of freshwater withdrawal

Social & Governanceoptimal end-of-life recycling andrecovery, with LCA on demand(and based on FSC pulp only,
where applicable)

95% of supplier spendingbase qualified also according
to ESG criteria

Transparency andEndorsement
Adhesion to United Nations Global
Compact (UNGC)-85% of work-related injury rate

Inclusion of ESG goals in the variable
compensation evaluation

35% of women in

Platinum Sustainability Rating
by Ecovadis(from 21 to 3)

managerial positions

Sustainability Report

87% suppliers also assessed

Endorsement

GHG emissions

The Fedrigoni GroupIn Fedrigoni Group, sustainability means making progress
every day. Our mission is to elevate the brands andcreativity of designers, converters, and printers.
Our commitment is to do it in a sustainable way, sharing
progress transparently and promoting circularityand partnership with the entire ecosystem.

Our 2030 ESG targets

2022 results

100% of people involved inHighlights

Annual Financial
ReportPerformance Conversations

We ended the year with the arrival of a new private equity fund,
BC Partner, which joined Bain Capital on Fedrigoni's growth pathfor the next 5 years. The entire leadership team also reinvested in
the company. Over the past 4 years, Fedrigoni has undertaken acomprehensive, successful transformation in terms of productportfolio, geographic footprint, go-to-market, operating model,
culture, and governance. This has been possible thanks to our
fantastic partnership with Bain Capital. We are thrilled andhonored to continue this ambitious journey with an additional,
significant investor.
Looking to the nearer future, we know that the quarters ahead
will be tough, and the slowdown in volumes in the first quarterhas proven this. Demand continues to be extremely volatile dueto the destocking of our customers and the macroeconomic
environment. On the other hand, energy and raw material costs
are finally coming down, the end markets we serve (luxury, wine &spirits, pharmaceuticals, etc.) are performing well, and Fedrigoni
continues to gain market share in all sectors, so we remain
optimistic that the economic situation will gradually recover inthe coming months. The direction is clear: our long-term strategy
will guide us as we pursue our growth path to become the global
leader in sustainable and innovative labels, self-adhesives andspecialty papers for luxury packaging and creative solutions, witha focus on accelerating our expansion in the U.S. and Asia, andcontinuing consolidation in Europe, as well as providing sustainable
packaging solutions and RFID to an outstanding set of global
luxury and consumer brands.
The excellent 2022 results were achieved thanks to our 5,000
people, who passionately and professionally brought our many
strategic initiatives to life. I’d also like to thank our strategic
suppliers who are at our side in the never-ending drive to innovate
our products and processes. Ultimately, none of this would havebeen possible without the trust that our 30,000 customers placein us. You are the utmost priority for us, and we will continue
to improve every day to better meet your needs and be anincreasingly solid partner of choice in your growth trajectory.

Index
The Fedrigoni Group
Sustainability Report

Marco Nespolo
CEO Fedrigoni Group*Data refer to pro forma adjusted data included in the Consolidated Annual Report of Fiber Bidco S.p.A., including 12 months contribution of Tageos, Guarro Casas,
Zuber Rieder, Unifol and exclude Banknotes business4

Annual Financial
ReportDear Stakeholder,2022 was another year of profitable and responsible growth forFedrigoni. Our agile business model, focus on innovation, constanttransformation, and engagement of our people around the world
have enabled us to strengthen our position as the world’s numberone manufacturing company in wine labels and specialty papers
for luxury packaging. Beyond financial results and value creation,
our purpose – to elevate creativity and make materials a source ofendless possibility for brands everywhere – is the reason we exist.
We made progress in all areas of our strategic plan, as can beseen in our remarkable results*: an adjusted turnover of €2.211
Billion (+37% vs. 2021) and Pro Forma Adjusted EBITDA of €340
million (+54% on 2021). Despite the unstable geopolitical context
and supply chain disruption, we have been relentless in ourtransformation journey, making leaps forward on each of our fivepillars. First, we accelerated our product innovation process tocreate an increasingly distinctive and premium offering, while
supporting our customers in tackling their ecological transition
with plastic-to-paper solutions, self-adhesives made withincreasingly recyclable materials, and circular solutions that allow
the re-use of waste as raw materials in new value chains. Second,
we further improved the customer intimacy and experience alongeach touchpoint of our customer journey, by boosting our digitaltransformation process and accelerating skills in our sales team.
Third, we invested in improving our supply chain and sourcing,increasing our production capacity and enhancing the agility andadaptability of our operations, which are key factors in a fastchanging market. Fourth, we pushed ahead with our acquisitions
plan aimed at geographic expansion with 6 deals completed in
2022 in the United States, Turkey, Spain, and France. And fifth, we
took huge step towards creating an inclusive and safe learning
environment, where everyone can grow and make a difference,
because we lead the industry by caring for our people. In thisregard, I’m particularly proud of our new people promise that weare launching this year, which was developed by listening to ouremployees: at Fedrigoni, we Discover Extraordinary Every Day.
Commitment to sustainability underpins the group’s entire
strategy, and our materiality matrix helps us keep track of ourpriorities in the reduction of CO₂ emissions, water consumption,
waste management, sustainable product innovation, reductionof injuries in the workplace, inclusive work environment, andcollaboration with the communities around us. Our approach,which we label Making Progress, is transparent, fact-based andshared by the entire leadership team.

Highlights
2022
Fedrigoni today

Sustainability
Report4 CEO’s letter

14 Methodological note

Our Purpose: why we exist

7 Our Group

14 Our purpose

Our Mission: what we do

8 Corporate Bodies

14 Our products

Our Vision: what we aim at

9 2022 Group Turnover56
18 2030 ESG targets

9 Leading position56

Our Strategy: how we
get there

20 2022 Scenario
10 Where we are
20 The main initiatives

Our sustainability journey

Self-Adhesives
11 PaperMaking Progress

12 The Group Structure

21 Our business27 Our certifications

implemented in 2022

2022 results
Our 2030 ESG targets

28 Governance
29 Sustainability Governance:

40
41

64 Social
67 Human rights
67 Safety
69 People experience
70
71
74
76
77

and life at Fedrigoni
People growthand distinctive skills
Inclusion, Diversity
and Equity (IDE)
Performance Culture& Open Dialogue
Social dialogue
and industrial relations
Fedrigoni and the community

89
90
90
91

Fedrigoni paper mills in
relation to protected areasor areas of natural interest
U.N. Global Compact
reference table
Scope and impactsof material topics
SASB
GRI: content index

98 Management discussion

and analysis
99
99
99
100
102
103
108
109
109
109
109
109
110
110

Introduction
The Acquisition
Pro Forma Results
Key Financial Information
Financial Statements
Discussion of our Resultsof Operations
Indebtedness
Other Disclosures
Accounting Standards
Disclaimers
Pro Forma Results
Non-IFRS Measures
Forward-Looking Statements
Notice111 Independent Auditor'sReport95 Auditor’s Report on the

Sustainability Report

113 Consolidated Financials
114 Consolidated Statementof Financial Position
114 Consolidated Income Statement
115 Consolidated Statementof Comprehensive Income
116 Consolidated Statementof Cash Flows
117 Consolidated Statementof Changes in Equity
118 Notes to the Consolidated
Financial Statements

5

Annual Financial
Report

30
33
34
34
36
38
39
40

our widespread model
Materiality Matrix and SDGs
Code of Ethics
Internal Audit
Enterprise Risk Management
TCFD disclosure
Cyber Security
Our stakeholders
Value generated
and distributed
Tax management
Sustainable procurement

57
60
62

and energy transition
towards carbon neutrality
Other atmosphericemissions
Biodiversity andno deforestation
Waste and circular economy
Life Cycle Assessment
End-of-life of our products

78 Annex
80 ESG Targets
80 Engagement
81 Learning
82 Performance
83 Workforce breakdowns
85 Turnover
85 Internal mobility
86 Tax management
88 Table of the location of

Sustainability Report

3

44 Environment
46 Raw materials
49 Water
51 Energy
51 Carbon dioxide emissions

17 Making Progress concept& Business Profile
Our Culture

AnnualFinancial
ReportThe Fedrigoni Group2Fedrigoni
Group

Index

Annual Report 2022

IndexThe Fedrigoni Group

FedrigoniGroup
Annual Report
Report 2022
2022
AnnualSustainability Report

Annual Financial
Report6

HIGHLIGHTSFEDRIGONI GROUP— CEO’s letter— Our Group— 2022 Group Turnover & Business Profile— Leading position— Where we are
Self-Adhesives
Paper— The Group Structure

SUSTAINABILITY REPORTANNUAL FINANCIAL REPORT

Globally, 2022 was a very tumultuous year with war
scenarios on Europe's doorstep and skyrocketinggas and raw material prices. Despite the uncertain
global context, Fedrigoni guaranteed the fullcontinuity of its business and reconfirmed itself as
a leading player in the production and sale of paper
for luxury packaging, printing, graphics, art, andpremium self-adhesive materials. The two business
units, Paper (LPCS) and Self-Adhesive/Labels,
work together to provide our customers with thebest products and the most extensive experienceavailable on the market. The integration of specialty
papers and self-adhesive materials enables constantinnovation between different industries andmaterials, allowing us to offer advanced, customized
solutions to our customers.

Thanks to constant teamwork, in 2022, we achieved
all our strategic goals in terms of new acquisitions,
optimisation of our operations, improvement of
supply chain management, people attraction anddevelopment, and innovation of products for optimal
end-of-life recycling and recovery. Following our"Making Progress" approach, we accelerated ouractions to achieve our commitment to becoming an
increasingly sustainable business. "Making Progress"
is a profound concept that involves awareness andmeasurability, two crucial aspects when it comesto impacting business, people, and nature. Thistransformation process involves the entire ecosystem- brands, printers, converters, graphic designers,
and suppliers - and encourages the creation ofpartnerships with players who, like us, feel a senseof responsibility to make a difference.

Sustainability Report* Data refer pro forma adjusted data included in the Consolidated Annual Report of Fiber Bidco S.p.A., including 12 months contribution of Tageos,
Guarro Casas, Zuber Rieder, Unifol and exclude Banknotes business.

7

Annual Financial
ReportFedrigoni is synonymous with excellence in the worldof specialty papers for luxury packaging, graphics,
high-end publishing, fine arts, premium labels,
and self-adhesive materials.
Beyond financial results and value creation, thereason why we exist is ELEVATING CREATIVITY.
We want to make materials a source of creative
possibilities for brands everywhere.
Behind us more than 130 years of rich heritageand passion for paper. Alongside us, are over 5,000
leading experts, specialists, and dedicated people
from all over the world. Ahead of us, is a strong
ambition to amaze the world by transforming ourindustry, achieving new levels of innovation, elevating
creativity, and building a sustainable future while
growing rapidly.
Our story of growth started in 1888, and has
been further accelerated thanks to significant
acquisitions, with 12 deals finalised in the last four
years. In 2022, the Group finalised six acquisitions
that strengthened our presence in both the selfadhesives market - through the addition of Divipa
and Unifol, and the paper market - with the industrial
partnership with Mohawk, and the acquisitions ofGuarro Casas and Zuber Rieder. Furthermore, theacquisition of Tageos enabled Fedrigoni to venture
into the smart labels and RFID technologies segment.
Our Group closed 2022* with an adjusted turnoverof €2.211 billion and Pro Forma Adjusted EBITDAof €340 million.
Today we are the global leader in wine labels andspecialty papers for luxury packaging, the second
player in fine art and drawing, and the third player inthe world of self-adhesive materials. We count over
5,000 people worldwide, own 68 production plants
and slitting centers, produce more than 25,000
products - in addition to 10,000 papers produced
exclusively for major fashion and luxury brands and distribute in 132 countries.

The Fedrigoni Group— Corporate Bodies

Our Group

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUP

Corporate Bodies

Index

Annual Report 2022

Board of Directors
Reference is made to the board of directors of Fiber JVCo S.p.A, holding company of Fedrigoni S.p.A.

— CEO’s letter— Our GroupThe Fedrigoni Group— Corporate Bodies— 2022 Group Turnover & Business Profile— Leading position— Where we are
Self-Adhesives
Paper— The Group Structure

SUSTAINABILITY REPORTANNUAL FINANCIAL REPORT

Marco Nespolo

Giacomo Massetti

Stefano Ferraresi

Chair of the Board & Partner
at Bain Capital

Chief Executive Officer& Board Member

Board Member & Managing
Director at Bain Capital

Board Member & Partner
at BC Partners

Piero Leporelli

Maurizio Mussi

Falco Sebastian Pichler

Board Member & Principal
at BC Partners

Board Member & Partner
at Bain Capital

Board Member & Managing
Director at BC Partners

External Auditors of Fedrigoni S.p.A.

Andrea Vagliè

Francesco Facchini

Antonio Ferragù

Deloitte & Touche S.P.A

ChairmanStanding Auditor

Standing Auditor

Independent Auditor

Massimiliano Altomare

Federico Ragazzini

Supply Auditor

Supply Auditor

8

Annual Financial
ReportBoard of Statutory Auditors of Fiber JVCo S.p.A

Sustainability Report

Ivano Sessa

Annual Report 2022
Paper (LPCS)*HIGHLIGHTSFEDRIGONI GROUP— CEO’s letter— Our Group

Product offering targeted primarily to attractive end markets.

Other creative applications
Premium coated and uncoated wood-free paper forgraphics, school and office usage

PRODUCT

END MARKET

MARKET POSITION

Self-Adhesives

Wine and spirits, premium beers, food,cosmetics, pharma, chemicals

Speciality
graphic paper

Luxury packaging, digital printing,fine stationary— Where we are
Self-Adhesives
Paper— The Group Structure

SUSTAINABILITY REPORT

Self-Adhesives/Labels

°

3

°

GlobalLatAm
Self-Adhesives Self-Adhesives

GlobalLuxury packaging

1°

EuropeFine Paper

1

°

LatAm
Fine Paper

2°

Drawing/Art

Range of self-adhesive products for the productionof labels for a wide range of consumer and industrial
end markets

1

°

3

GlobalWine— 2022 Group Turnover & Business Profile— Leading position

1°

The Fedrigoni Group— Corporate Bodies

Luxury packaging
Specialty graphic paper for luxury packaging

Index

Leading position in attractive
premium niche markets

Students, Artists, Hobbyists

GlobalDrawing & Art
Source: market positions taken from a leading paper industry consulting firm report.

ANNUAL FINANCIAL REPORT

30%

48%

Pro Forma
Adjusted Sales Revenues* by business

Pro Forma
Adjusted EBITDA* by segment
47%

8%

53%

59%

20%

€2.2b

€2.2b

22%

Sustainability Report

Pro Forma
Adjusted Sales Revenues* by geography€340m

Europeexcept Italy

Rest ofthe World

Italy

SelfAdhesives* Luxury Packaging and Creative Solutions*Pro forma adjs. Include 12 months contribution of Tageos, Guarro Casas, Unifol and exclude Banknotes business

LuxuryPackaging

Creative
Solution

Premiumfillers

Self-Adhesives

Paper

FY 2022 Adjusted Sales Revenues *: €2.210 m
FY 2022 Pro-Forma Adjusted EBITDA*: €340m (15% margin)

9

Annual Financial
Report13%

Where we are

1P roduction site
1 Slitting center
1 Office

Self-Adhesives/Labels

HIGHLIGHTSFEDRIGONI GROUP— CEO’s letter— Our Group—ILLINOIS

1 Distributor

TEXAS

1 Slitting center
1 Distributor

2022 Group Turnover & Business Profile— Leading position— Where we are
Self-Adhesives
Paper— The Group Structure

SUSTAINABILITY REPORTPOLAND

1 Slitting center

NORTH CAROLINA
2 Production site
1 Slitting center
1 Office

DOMINICAN REPUBLIC

3P
 roduction sites
3 Slitting centers
2 Offices

TURKEY
ITALY

4 Production sites
3 Slitting centers
3 Offices
1 R&D Lab

2 Production sites
1 Slitting center
1 Offices

CHINA

2 Production site
2 Slitting center
2 Offices

HONG KONG

1 Office

1 Slitting center
2 Offices

COSTA RICA

1 Slitting center
1 Office

ANNUAL FINANCIAL REPORT

1 Production site
1 R&D Lab
1 OfficeSPAIN

MEXICO

1 Production site
2 Slitting centers
1 Offices

1 Slitting center
1 Office

FRANCE

1 Distributor
1 Office

CALIFORNIA
1 Slitting center
1 Distributor

OHIO

1 Office

The Fedrigoni Group— Corporate Bodies

GEORGIAGERMANY

UK

Index

Annual Report 2022

1 Slitting center
1 Office

1 Slitting center
1 Office

Sustainability Report

ECUADORCOLOMBIA

PERU

1 Slitting center
1 Office

BRASIL1 Production site
2 Slitting centers
2 Offices

CHILE

1 Production site
1 Slitting center
1 Office

Production
Sites

23

Slitting
Centers

4
Distributors

24
Offices

2
R&D Lab10

Annual Financial
Report16

UK

2 Offices
1 Boutiques
1 Warehouse
1 Distributor

Where we are

HIGHLIGHTSILLINOISFEDRIGONI GROUP— Our Group—

1 Office
1 Distributor

CALIFORNIA
1 Distributor

1 Manufacturing Partnership

GERMANY
4 Offices
2 Warehouses
2 Boutiques
1 Distributor

CONNECTICUT
1 Distributor

TEXAS

CZECH
REPUBLICNEW YORK— Leading position

1 Manufacturing Partnership
1 Office— Where we are
Paper

OHIO

1 Distributor

2022 Group Turnover & Business Profile

Self-Adhesives

2 Offices
1 Warehouse
1 Distributor

MEXICO

1 Office

2 Offices
1 Production site
1 Warehouse
1 R&D Lab
1 Distributor

SPAIN

3 Offices
1 Production site
2 Warehouses
1 Distributor

PORTUGALThe Fedrigoni Group— Corporate Bodies

FRANCEBENELUX

Paper (LPCS)*— CEO’s letter

1 Office

Index

Annual Report 2022

AUSTRIA

1 Office

DUBAI
1 Office

GEORGIA1 Distributor

1 Office— The Group Structure

SUSTAINABILITY REPORTITALYANNUAL FINANCIAL REPORT

3 Offices
4 Warehouses
1M anufacturing Partnership
1 Distributor

Sustainability Report

9 Production sites
6 Offices
3 Warehouses
6 Boutiques
2 Distributors
1 R&D LabCHINA

HONG KONG
1 Office
1 Warehouse
1 Distributor

BRAZILPHILIPPINES

1 Office

1 Office

INDONESIA
2 Offices
2 Warehouses
1 Distributor

BANGLADESH

11

Production
Sites

19

9

Warehouses

Boutiques

36
Offices162

Distributors

R&D Lab3

Manufacturing
Partnership*Luxury Packaging and Creative Solutions

11

Annual Financial
Report2 Offices
2 Warehouses
1 Distributor

Fiber JVco S.p.A.
100%

Annual Report 2022

Index

Fiber Midco S.p.A.
100%

Fiber Bidco S.p.A.

HIGHLIGHTS

99.99839%

FEDRIGONI GROUP— CEO’s letter— Our Group— 2022 Group Turnover & Business Profile— Leading position

Villartales S.L.

The Fedrigoni Group— Corporate Bodies

Distribuidora Vizcaina
de Papeles S.L.

— Where we are
Self-Adhesives
Paper— The Group Structure

SUSTAINABILITY REPORTANNUAL FINANCIAL REPORT

5

40.5%

59.5%
89.9998%

Ritrama UK Ltd
6 99.99921%

Guarro Casas S.A.

Bes Reklam Ürünleri
Sanayi ve Ticaret
Anonim Sirketi

10%97.96%

Giano Real
Estate Srl
4 99.98%

99.997%

éclose Srl

1

Eonys SAS
99.6%

7

2
100%

99.9%
99.6%

50.1%

3

Tageos SAS
Papeterie
Zuber
RiederSAS

Tageos Inc.
Tageos Ltd

Ritrama Caribe S.r.l.

Tageos RFID Technology(Guangzhou) Co. Ltd88%

1 - 0.003% owned by Ritrama S.p.A
2 - 0.4% owned by Ritrama S.p.A.
3 - 0.4% owned by Ritrama S.p.A.
4 - 0.02% owned by Ritrama S.p.A
5 - 0.0002% owned by Ritrama S.p.A.
6 - 0.00079% owned by Arconvert SAU
7 - 0.1% owned by Arconvert SAU

Paper/(LPCS)*

Self-Adhesives/Labels

Other

12

Annual Financial
ReportTageos GmbH

*Luxury Packaging and Creative Solutions

Sustainability Report

Consorzio Canale
Camuzzoni Scarl

IndexAnnual Report
Report 2022
2022
AnnualHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORTThe Fedrigoni Group
Sustainability Report

ANNUAL FINANCIAL REPORT

13

Annual Financial
ReportSustainability
ReportHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment— Annex— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

Scope limitations and restatement of previously
published data are indicated in the text.
In 2022 we closed the following acquisitions: Guarro
Casas (October 2022) and Zuber Rieder (December2022) in Paper division and Divipa (February 2022),
Tageos (April 2022) and Unifol (October 2022) in
Self-Adhesives Materials division. In 2023, the newacquisitions will be included in the Group ESG datacollection process.
People data is processed in the new Group HR
database (implemented in 2021). In our internal
definitions, Leaders are employees who are part of
the Group’s Executive Committee and/or Leadership
Team, Managers are all employees in a leadership role
managing a team, White collars are employees in an
office position who do not manage people (individual
contributors) and Blue collars are employees in a
production position who do not manage people(individual contributors).
The data reported in the Environment chapter ispresented with reference to each business unit
(Paper and Self-Adhesives) because of the specificenvironmental impacts of our two production
activities. Qualitative information and quantitative
data relating to environmental aspects are referred toGroup production sites (exclusion of only commercial
activities and slitting centers for the Self-Adhesive
Business Unit, having much lower impacts than
production sites).

The reporting frequency will be annual.
For further information, please contact:
Isabella Bussi
Head of Group Sustainability
isabella.bussi@fedrigoni.com

Our products
Founded way back in 1717 by Giuseppe Fedrigoni
with a small plot of land on the outskirts of Rovereto(Italy), today our plants and sales networks cover 28
countries, and our distribution reaches 132 countries
worldwide. We are a leading player in the production
and sale of paper for packaging, printing, graphics
and art, as well as premium self-adhesive materials.
The two core elements of our Group, the Paper(LPCS)* Business Unit and the Self-Adhesive/Labels
Business Unit, offer our customers the best products
and the most extensive experience on the market.
The integration of specialty papers and self-adhesivematerials means consistent innovation among
different industries and materials, to offer advanced
and tailored solutions to our customers.
*Luxury Packaging and Creative Solutions

14

Annual Financial
Report

The Report is available under the Sustainability
section of www.fedrigoni.com

Fedrigoni recently defined its Purpose: Elevating
Creativity - make materials a source of creative
possibilities for brands everywhere, and ESG informs
everything we do. We deliver growth, we lead thetransformation of our industry, by leveraging talents
managing our business ethically, and innovation with
cutting-edge, environmentally friendly solutions andconstantly reducing our footprint on carbon waste
and water. Fedrigoni prides itself as a responsible
producer of high-quality special papers andself-adhesive materials. We aim to be the best
supplier for the best customers. We want to create
long-lasting products that meet the creativity
and technical requirements of each customer.
Sustainability is a living matter to us.
It is the ability to progress daily, measurably andtransparently, raising the bar in our industry andsupply chain.

Sustainability Report— Social

Fedrigoni has reported in accordance with Global
Reporting Initiative (GRI) Standards for the period
from 1 January 2022 to 31 December 2022. The
Sustainability Report of Fedrigoni S.p.A. and its
subsidiaries (hereinafter “Fedrigoni Group” or “Group”)
describes the business model, sustainability strategy,
identified risks and opportunities, Policies, Targets
and environmental, social and governance (ESG)
performance. The Report is based on the principles
of stakeholder inclusiveness and completeness andpresents the context of sustainability.
The topics and indicators subject to reporting wereidentified through the materiality analysis which,in 2022, was updated taking into consideration the“Double Materiality” framework.
Since 2021, the Sustainability Report has been
subject to a limited assurance engagement (according
to criteria of ISAE 3000 Revised) by Deloitte &Touche S.p.A. according to the procedures indicatedin the Independent Auditors’ Report included in thisdocument. The list of indicators is available in the GRI
Content Index, at the end of this document. Fedrigoni
has started the process to align to all requirementsof the new Corporate Sustainability Reporting
Directive (CSRD).
The data and information provided in this document
refer to all companies in the Fedrigoni Group includedin the Consolidated Financial Statements of Fedrigoni
S.p.A., with the exception of the companies acquired
during the year, and are related to the period from
1 January 2022 to 31 December 2022. In particularfinancial information refers to the information includedin the Consolidated Financial Statements ofFedrigoni S.p.A..
With regards to qualitative information andquantitative data relating to social and environmental
aspects, the scope of reporting includes thecompanies fully consolidated in the Consolidated
Financial Statements of Fedrigoni S.p.A..

Our purpose

The Fedrigoni Group— Methodological note

Methodological Note

Index

Annual Report 2022

FEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment— Annex— Auditor’s Report on the Sustainability Report

Sustainability Report— Social

The Self-Adhesives/
Labels Business Unit is
the world leader for winelabels and the third largest
global player for selfadhesive materials for food,
pharmaceutical, automotive,
chemical and cosmetics
industries and beyond.

The Fedrigoni Group— Methodological note

Ourbusiness units

HIGHLIGHTSThe Paper (LPCS)* Business
Unit is the World leader
in luxury packaging andthe European leader in
specialty papers with arange of products from
specialty graphic papers
for packaging and printing
to art and design papers, tonatural and coated papers.

Index

Annual Report 2022

ANNUAL FINANCIAL REPORT

15

Annual Financial
Report*Luxury Packaging and Creative Solutions

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022

Our customers

Paper has always been special to Fedrigoni: it isproduced in Italy with 9 plants in Verona, Arco, Varone,
Scurelle, Castelraimondo, Cordenons, Pioraco,
Rocchetta, and Fabriano. Moreover, Zuber Rieder
and Guarro Casas have recently joined the Group.
Over time we have mastered techniques andprocedures to offer our customers and partners
the best quality and most innovative products everyday. There are around 3000 products available, highquality papers in all grammages and colours. Ourcommitment is to help our customers figure out thebest solution for their creative project and, whennecessary, develop it together.

The Fedrigoni Self-Adhesives/Labels business unit,
involved in the design and production of self-adhesivematerials, was created from the merger of some of
the leading companies in the sector, such as Ritrama,
Arconvert, Acucote and Manter. With 16 production
plants (Italy, France, Spain, UK, Brazil, Chile, Mexico,USA, China) and 27 slitting and distribution centres(Italy, Spain, UK, Poland, China, USA, Dominican
Republic, Brazil, Chile, Peru, Costa Rica, Guatemala,Colombia, Ecuador and Mexico), we serve markets
ranging from food labels to pharmaceuticals andvisual communication. We provide our customers
with support in choosing the right type of paper ormaterials for their self-adhesive projects, including
wine and spirits labels, gourmet food and premium
cosmetics labels, designer labels, and special
projects. This is a booming sector, where skills andcreativity, communications, and technology converge.

Fedrigoni means excellence for brands, printers,
designers and converters and every day focuseson accelerating innovation, delivering the highest
quality of its products and developing solutions withincreasingly advanced sustainability features.

— Our business— Governance— Environment— Social— Annex— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT• Luxury Packaging Paper• Printing & Publishing Paper• Technical Paper• Tailor-Made Paper
Fabriano, the long-standing paper manufacturer, ispart of this business unit and still works according to
the three historical processes: hand-made papers,
mould-made papers, and Fourdrinier-made papers.
We are the only company in the world that still
produces paper in all these three ways. Our master
papermakers are trained for five years to learn the artof papermaking. A mastery that furthers a timelesscraft; an all-Italian production hallmarked by innovation.

Sustainability Report

Self-adhesive materials

The Fedrigoni Group— Methodological note

Specialty papers

Index

Annual Report 2022

• Self-adhesive labels• Visual communication.

16

Annual Financial
Report• Art and drawing• Stationery• OfficeHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment— Annex— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

Among other progress, in 2022 we received two
important recognitions by ESG ratings:• Rating of 88/100 (Platinum level) by Ecovadis, arating recognised by our customers. The score isbased on policies, actions and results achievedin four key areas: Environment, Labor and Human
Rights, Ethics and Sustainable Procurement.
This recognition places Fedrigoni in the top 1% ofcompanies with the best sustainability performancein the world.
• Rating of 59/100 by Standard & Poor (top 12% of thePaper & Forest Products sector, average score of27) a rating of interest especially for investors; in thiscase the rating evaluates the level of integration of
ESG factors in policies and practices to mitigate
risks and discover opportunities.

Committing to sustainability entails, for acompany, having clear and measurable targets
going forward over time. This means having
monitoring tools and being audited by thirdparty entities which strictly certify its progressfrom the standpoint of environmental, social andgovernance performance.
Like EcoVadis, the international rating agency
behind the first platform in the world for companies
to monitor the sustainability performance of their
suppliers, across 150 industries and 110 countries.
By doing so, companies are prompted to improvetheir environmental and social best practices byleveraging the influence of global logistics chains.
In June 2022, our Group was awarded the highest
achievement, Platinum, ranking in the top 1% of theworld’s best companies in the same industry for
ESG performance. An achievement acknowledging
the remarkable results that the path we are on
is yielding: a clear roadmap, a structured andproactive approach to sustainability, tangible
and measurable policies and actions. Extensive
reporting and all company managers fostered
toward achieving the 2030 targets. This outcome
is not an ending but a starting point: our pathis still long, we are going to keep making headway
every day to improve.

Sustainability Report— Social

Let’s talkabout it in thisBit onSustainability

17

Annual Financial
Report

The Making Progress concept leads us in atransformation process engaging the entire
ecosystem - brands, printers, converters, graphic
designers, and suppliers. It encourages a valuable
end-of-life of our products and the creation ofpartnerships with players who, like us, feel the
responsibility to make the difference. The Making
Progress concept is far-reaching, involving awarenessand measurability, two crucial aspects when it comesto impact business, people and nature.
The last 12 months have required great efforts
to accelerate our ESG plan to 2030: reduce CO₂
emissions by 30%, eliminate waste to landfills, 10%
reduction of our freshwater withdrawal, 100% of
products designed for optimal end-of-life recycling andrecovery (and with LCA on demand), 95% of qualified
suppliers also according to ESG criteria and further
reduction (from 67% to 85%) of workplace injuries.
We have set a new target to achieve an employee NPS
in the top 5% compared to the other manufacturing
companies and in the top 10% in the cross-sector
benchmark and we aim to effectively train 100% of
our 5,000 employees on the Code of Ethics, where
we collect the principles that must influence our daily
behaviour. We have worked to attract talent and to
expand our global presence on our acquisition plan.
Since 2021, we have been part of the United Nations
Global Compact (UNGC), the global initiative created
to encourage companies worldwide to implement
sustainable policies and make the results of theiractions public. For information, please refer to our
public Communication on Progress (COP).

The Fedrigoni Group— Methodological note

Making Progressconcept

Index

Annual Report 20221.
Ecovadis Platinum:
Sustainability RatingHIGHLIGHTSFEDRIGONI GROUP

2030 ESG Targets

Index

Annual Report 2022

By 2030 we want to be the reference for sustainability
in our sector, and beyond. Our ESG strategy is focusedon four areas of action:

SUSTAINABILITY REPORT— Our purpose— Our products—

Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment— Annex— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

We want to be the leader in
our industry in reducing ourenvironmental footprint. We
are improving our performance
also thanks to an increasingly
selected supplier baseaccording to sustainableprocurement criteria.

Social andGovernance

Circularity is an increasing
demand from customers.
Our Paper Business Unit isproviding solutions to the global‘Plastics to Paper’ challenge withsolutions that are plastic-like inperformance but with renewable
raw materials and downstream
valuable end-of-life (Paper Snap
and the Materia Viva II paper
collections). The Self-Adhesives
Business Unit is expanding
its range of environmentallyfriendly, self-adhesive solutions,especially in the Wine & Spirits
segment (Core linerlesssolutions® and RIMove e RePlay).

We strive to attract, develop andretain the best talent, adopting
best practices related to safety
culture, diversity, equity andinclusion. We have Group bestpractices in place on antibribery, antitrust, cybersecurity,
privacy and personal
data management.

Transparency
andEndorsement
The more we are all involved,
the more we can accelerate ourprogress. That is why ESG ispart of individual performanceassessments. We also ensuretransparency to stakeholders
by clearly communicating ourtargets and results.

Sustainability Report— Social

Environment

Product
Development

The Fedrigoni Group— Methodological note

Annual Financial
Report18

Environment

Product Development

Transparency and Endorsement-30% of absolute carbon dioxide emissions, Scope 1+2

100% of products designed for optimal end-of-life recycling
and recovery, with LCA on demand (and based on FSC pulp
only, where applicable)

Inclusion of ESG goals in the variable
compensation evaluation

unit of measurement CO₂e kt

FEDRIGONI GROUP

NEW— Our purpose-85% of accident frequency index (from 21 to 3)

2022 Result
2030 Target
2022 Result
2030 Target

2020

UNGC

95

adhesion

EcoVadis sustainability rating
2030

2020

NEW

2022

unit of measurement number

10

21

13

3

BRONZE

unit of measurement %unit of measurement %

100

22

25

35

100% of people involved in performance conversation
unit of measurement %

2022

89

PLATINUM

9

32

100

19

Annual Financial
Report802022

35% of women in managerial positions
2030

100% of waste sent for recovery and not sent to landfill2022 Result
2030 Target

unit of measurement %

0

2030

87

Social and Governance2022

ANNUAL FINANCIAL REPORT

50-10% of freshwater withdrawal
Baseline2022— Auditor’s Report on the Sustainability Report

90

2019

— Annex45!

Sustainability Report— Social

NEW

2030

— Environment

covered andincreased

2030— Governance2022

unit of measurement %2020

unit of measurement %Adhesion to United Nations Global Compact (UNGC)

2020— Our business

95% of supplier spending base qualified also according
to ESG criteria

2020— The main initiatives implemented in 2022

ESG aspects

100

2020

— 2022 Scenario

090% of suppliers by spend, covering purchased good andservices and capital goods, with science-based targets

2030— 2030 ESG Targets

240

!

2030

— Making Progress concept

330 323

Baseline2022— Our products

The Fedrigoni Group— Methodological note

2020

2030

2030

2022

2019

SUSTAINABILITY REPORT

unit of measurement %Baseline
2022

HIGHLIGHTS

Here are our 2030 ESG targets and 2022 results:

Index

Annual Report 2022

FEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment— Annex— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

make them even more challenging.

• People. in addition to raising our female managers
target to 35%, we set the new target of achieving an
employee NPS in the top 5% compared to the othermanufacturing companies and in the top 10% in the
cross-sector benchmark. With this new target we
aim to be best in class in employee satisfaction.
• Accidents. The new target for 2030 is 3 (as injury
frequency index per million hours worked)
instead of 7, as set before. This change isto push us towards the best business performancein the world.
• Water. The target of returning at least 95% of thewater withdrawn was met (97% in 2021). In 2022, we
decided to keep the target of returning at least 95%of the water withdrawn and to record zero casesof water pollution; we then added a new target of
reducing our freshwater withdrawal by 10%.
• Products. After listing the ESG characteristics of
our products, we further looked into what the worldis demanding: more “circular” products. Accordingly,
we set the new goal of having 100% of products
designed for optimal end-of-life recycling andrecovery, with LCA on demand.

2. Global Policies: “Diversity, equity and inclusion
Policy” and “Good practices for respect
at the workplace”.

3. First Human Rights risk mapping at 100% of our
production sites and first ethical audits on our
suppliers covering 18% of the expenditure of
direct materials.

4. New “People and Nature Commitment: makebusiness work for people and nature” to address
the interactions and interdependencies between
our social, economic, and environmental systems.

5. N ew Double Materiality, the evolution ofMateriality Matrix - the map of our ESG impacts with inclusion of the risk assessment component(Enterprise Risk Management).

Sustainability Report— Social

1. In 2022 we redefined some of our EGS targets to

The Fedrigoni Group— Methodological note

In a very tumultuous post-Covid-19 year, with war
scenarios on Europe’s doorstep and skyrocketinggas and raw material shock-prices, climate andbiodiversity are confirmed as the keywords of theecological and energy transition. The targets set
by the 2030 United Nations Agenda can no longer be
postponed and Fedrigoni wants to play an ever moredecisive role, with leadership skills andbusiness results.
At Fedrigoni we are accelerating all our actions toachieve the objectives of our ESG (Environmental,
Social, and Governance) plan by 2030. Among thesignificant milestones:- Accident frequency rate reduction by 37%(since 2020)- Absolute CO₂ emissions reduction by 2.5%
against an increase in volumes of approximately
15% (compared to the base year 2019)- R&D projects acceleration to replace singleuse plastic with paper-based products, (launchof the Materia Viva II paper collections andéclose, the revolutionary solution made withthermoformed cellulose which makes it possible
to create three-dimensional interiors for boxes andcases of perfumes, creams, high quality products
and objects, today made of disposable plastic)
particularly important for our packaging customers
and for customers in the wine world (LinerLess
RIMove and RePlay).

The main initiatives planned
and implemented in 2022

HIGHLIGHTS

2022 Scenario

Index

Annual Report 2022

6. S cience Based Target initiative (SBTi) approved

our new CO₂ Scope 3 reduction target as it had
already done in 2021 for our CO₂ Scope 1+2 target(reference: well below 2°C scenario).

7. Progress for training on Code of Ethics (present in

the Group since 1998 and updated in 2021). 40% of
employees successfully trained.

8. The series of Sustainability Pills which allows us

20Annual Financial
Reportto present most material topics for Fedrigoni
and its stakeholders (recycle content,
recyclability, CO2 emissions offsetting,greenwashing, sustainable printing, FSC®,
alternatives to single-use plastic, wastehierarchy and Planetary Boundaries).

IndexAnnual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORTThe Fedrigoni Group— Methodological note
— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our businessOur certifications— Governance

Sustainability Report— Environment— Social— Annex— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

21

Annual Financial
ReportOurbusinessHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our businessOur certifications— Governance— Social— Annex— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT• quality and performance of our products.
• sustainability of our supply chain.
•s ustainability of our production processes.
It is Fedrigoni’s history that leads and inspires us towork ever harder to be acknowledged as an ‘Industry
Champion’, a value today embodied by outdoing
ourselves in reducing the environmental impact ofour products. We aim to achieve this result throughchallenging industrial choices, geared towards circular
economy and eco-design; using only raw materials
from responsibly managed forests (100% FSC COC
and CW certified, from now on FSC) and making themost of our process waste, also thanks to qualified
suppliers seeking solutions in line with our philosophy.
All this relies on the ever-developing skills of ourpeople and an increasingly inclusive environmentthat values talent. People are the driving factor behind
our transformation.

Sustainability Report— Environment

We rely on tradition to ensure the quality
and technical performance of our speciality papers
and self-adhesive materials, and on our talents todeliver highly aesthetic, innovative content. We
know how to meet the needs of our customers anddesigners in terms of:

The Fedrigoni Group— Methodological note

Index

Annual Report 2022

22

Annual Financial
ReportEvery day we put all our efforts into being the first
choice for so many brands, printers, designers andconverters. We do this through innovation, quality
and providing increasingly sustainable solutions
for our customers.

Index

Annual Report 2022
Our production

HIGHLIGHTSFEDRIGONI GROUP— Making Progress concept— 2030 ESG Targets— 2022 Scenario— Our business— Governance—Social— Annex— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

Pulp
CottonRecycled materials

reused asenergyMix of fermented
fibres/minerals/
re-circulated water
Reused in building
materials
and as humus

PAPERMAKING

STARCHESSLUDGE

Corn
Potato

PAPER MILLPAPERMINERALS
Calcium carbonate
KaolinTalc

1

INCOMING RAW
MATERIALS

80%
Is partof theprocess

14%
Returned clean tothe environment

24

Annual Financial
ReportFresh
and Recycled

3

SHIPPING

WATER

WATER

6%
Stays
in the paper

Sustainability Report— Environment

FIBRE

STEAM

2

— The main initiatives implemented in 2022
Our certifications

Electricity
from:- the Grid
- Hydroelectric (own)- Solar (own)

The Fedrigoni Group— Our products

ENERGY— Our purpose

Transport
andlogistics
paper

NATURAL GAS— Methodological note

recycled several times. Through subsequent draining
and drying actions, a strip of paper is obtained, woundon large reels, which can weigh several tons. After this,the paper can be further processed using machines
for surface treatment, thermal treatment, mechanicaltreatment, coating, embossing or laminating.

PACKAGINGSUSTAINABILITY REPORTThe paper-making process
The paper-making process begins by combining the
raw materials (pulp, fillers and additives) dispersed
in water, which are used in different quantities
depending on the type of paper produced. The mixture
is then conveyed to a flat table where a machine (theheadbox) distributes it evenly over the entire fabric,
forming the structure of the paper. At Fedrigoni,
this process is perfectly in tune with the emphasis
we place on the environment, with 100% of our pulp
being 100% FSC® COC and CW certified, the use ofnatural additives, and over 90% of the water we use
being returned clean to the environment after being

HIGHLIGHTS— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our businessOur certifications— Governance— Social

4

LAMINATIONPROCESSSHIPPING— Annex— Auditor’s Report on the Sustainability Report
FACE

COATING
AND LAMINATIONSLITTING
CENTREMASTER ROLLCUSTOMISED ROLLS OF
PAPER OR SELF-ADHESIVE FILM

Paper or film

ADHESIVES
Hot meltor acrylic

SLITTING
AND PACKING
LINES

LINER

SOLID WASTE

INCOMING
MATERIALS

SOLID WASTE

1

25

Annual Financial
Report3

SILICONEMAINS WATERANNUAL FINANCIAL REPORT

Sustainability Report— Environment

2

The Fedrigoni Group— Our products

PACKAGING MATERIALS— Our purpose

ELECTRICITY— Methodological note

NATURAL GASSUSTAINABILITY REPORTELECTRICITY

FEDRIGONI GROUP

The self-adhesive materials
production process
The self-adhesive materials production process,unlike the process for paper, uses paper reelsand films (plastic and non-plastic) as raw
materials, while the environmental impact interms of water consumption is much lower
than in paper production at around 2%.
There are essentially the following two
processing methods:•S ilicone coating, by applying an extremely
thin layer of silicone or protective plastic film
onto paper media. For over 20 years, all our
production centres have applied a solventlesssilicone treatment that involves the exclusive
use of toxic solvent-free raw materials.
• Adhesivation, through the applicationof adhesive to the silicone-coated support
and then transferring it to the frontal material(the label).

Index

Annual Report 2022

Our certifications

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our businessOur certifications

Re-made in Italy
Certification verifying the recycled
and by-product content in amaterial or product (even multimaterial) is a traceability systemcompliant with the Procurement
Code and CAM (Minimum
Environmental Criteria).
This is implemented at 10% of ourPaper sites.

BRC – Global Standard
for the safety of packaging
in the food sector
Implemented at the Cordenons(Italy) paper mill. In addition, Arcomill (Italy) recently certified
according to ISO 15593, ensuring
the compliance with the applicablelegal requirements for packaging
material intended for food industries.

ISO 9001 - Quality
Management Systems
100% of the Italian Paper sites are
ISO 9001 certified. 100% of the
Self-Adhesives sites have productand process quality management
procedures that are aligned
to ISO 9001 principles, without
external certification.

ISO 14001 - Environmental
Management Systems
100% of the Italian Paper sites
and 65% of the Self-Adhesives
production sites are
ISO 14001 certified.

ISO 45001 - Occupational
Health and Safety
Management Systems
100% of the Italian Paper sites
and 53% of the Self-Adhesives
production sites are
ISO 45001 certified.

ISO 50001 - Energy
Management Systems
20% of the Italian Paper sites are
ISO 50001 certified. 100% of the
Self-Adhesives sites have energy
management procedures that arealigned with ISO 50001 principles,
without external certification.

UNE 166002 Management system
for technological research,development and innovation

ISO 22000 for the quality of
products for food use.

ISCC PLUS - specific certification
for plastic film products.

— Governance

Sustainability Report— Environment— Social— Annex— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

27

Annual Financial
Report

EU Ecolabel - European Union
EcolabelThis label stands for products andservices with high performancestandards and low environmental
impact throughout their life cycle.
We have Ecolabel for 30% of ourPaper sites.

The Fedrigoni Group— Methodological note

FSC® - For the protection andpreservation of forest heritage
The Forest Stewardship Council(FSC®) created an internationallyrecognized forestry certification
system to ensure proper forest
management and traceability offorest products. Fabriano has beena supporter of FSC® Italy since2021: a sign of the ever-increasingcollaboration between them. 100%of our pulp is 100% FSC® COC
and CW certified.

Governance

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORTThe Fedrigoni Group— Methodological note
— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance
Sustainability Governance: our widespread model

Sustainability Report

Materiality Matrix and SDGs
Code of Ethics
Internal Audit
Enterprise Risk Management
TCFD disclosure
Cyber Security
Our stakeholders
Value generated and distributed
Tax management
Sustainable procurement— Environment— Social— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

28

Annual Financial
Report— AnnexHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance
Sustainability Governance: our widespread model
Code of Ethics
Internal Audit
Enterprise Risk Management
TCFD disclosure
Cyber Security

Member
Sessa Ivano**
Nespolo Marco
Pichler Falco
Sebastian
Massetti
Giacomo
Leporelli Piero
Ferraresi
StefanoMussi Maurizio

GenderM
M

Age category
30-50
30-50

Executive

M

30-50

X

30 Nov 2022

M

30-50

X

30 Nov 2022

M

30-50

X

30 Nov 2022

M

>50

X

30 Nov 2022

M

30-50

X

30 Nov 2022

Tax management
Sustainable procurement— Environment— Social— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORTMember from30 Nov 2022
30 Nov 2022

The members of the Board of Directors are electedindividually. Each mandate lasts three years and eachmember can be reappointed. In 2022 the Board of
Directors met 2 times with an attendance rate of 100%.
All board members are selected for their skills andexperience, including risk management.
The Board of Directors is the governing body that
ensures the strategic guidance of our Group, including
the sustainability strategy, exercising the powers ofordinary and extraordinary administration of the Groupfor the achievement of corporate purposes.

The company Fedrigoni Holding Ldt. is not consolidated at Group level but
it is the controlling company of Fedrigoni S.p.A.

1

29

Annual Financial
Report— AnnexX

Independent*Board of Directors of Fiber JVCo S.p.A, holding company of Fedrigoni S.p.A. Starting from April 2023, the Group intends to appoint at least one female
independent director.
**Chairman of the Board of Directors.

Our stakeholders
Value generated and distributed

Non Executive
X

Regarding remuneration, the CEO’s compensation iscomposed of a fixed and a variable component. The
variable compensation, being as high as 100% of fixedcompensation, is based on the following metrics:
Group EBITDA, Group Cash, Flow and ESG targets. To
ensure long term performance alignment, the CEO
has been given access to a significant co-investment
program within the company, represented by shares
he/she can purchase at the outset of his/her mandate.
The Audit & Risk Committee coordinates thedevelopment of the Internal Control System, theCompliance Program and promotes integrated
management of company risks at Group level.
Since December 2022, our Chief Executive Officer
has held interim responsibilities as Chief Sustainability
Officer. Reporting directly to the CEO, the Head ofGroup Sustainability is in charge of implementing theESG 2030 Plan.
The “widespread model” of sustainability includes
the Leadership Team and the Sustainability Team.
The former consists of around 50 Group managers,
including the Executive Committee, appointed tosupport the implementation of our ESG strategy
and the growth of our people in every division andsector of the company. The latter, led by the Headof Group Sustainability, is more operational andcross-functional involving the key sustainability
functions: health and safety, environment and energy,
product development, reporting, purchasing, humanresources and communication. The team, meeting
once a month, features 17 people chosen for theirpersonal backgrounds, skills and expertise. Together
they are tasked with fostering the dissemination ofa sustainability culture and supporting the Group inaccelerating progress towards achieving 2030
ESG targets.

Sustainability Report

Materiality Matrix and SDGs

Fedrigoni Group consists of the parent company
Fedrigoni S.p.A. whose registered office is in Verona
and 54 other companies based around the world.
The Fedrigoni governance model is based on the
traditional model consisting of the following corporate
bodies: the Board of Directors and the Board of
Statutory Auditors. Following the entry of the newshareholder BC Partners, the new Board of Directorsof Fedrigoni1 was appointed on November 30th 2022,with Marco Nespolo as Chief Executive Officer andChief Sustainability Officer:

The Fedrigoni Group— Methodological note

Sustainability Governance:
our widespread model

Index

Annual Report 2022

SUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance
Sustainability Governance: our widespread model
Code of Ethics
Internal Audit
Enterprise Risk Management
TCFD disclosure
Cyber Security
Our stakeholders
Value generated and distributed
Tax management

VERY HIGH

Excellence in producteco-design and quality
Health and safety

Governance& business ethics

Biodiversity
Diversity equity& inclusion
People experienceand development

Sustainability Report

Materiality Matrix and SDGs

This matrix confirms our 2030 ESG priorities.
Compared to the previous one, the following
updates have been made: “Water & Biodiversity”
was divided into two distinct topics to better explain
each respective impact. The new topic “Excellencein product eco-design and quality” brings together
previous topics “Waste reduction & recycling”,“Materials, traceability & sustainable procurement”,“creating value” and “Product eco-design & circularity”.
The topic “People experience and development” is theunion of “Working conditions & employee involvement”
and “Training and developing people”.

CO₂ & RenewableenergyThe Fedrigoni Group— Methodological note

In 2021 we updated our materiality analysis - theprocess of identifying the most impactful ESG issues- with external stakeholders (relevant investors andcustomers) and our internal business leaders.
For the first time in 2022, we adopted the conceptof Double Materiality: in addition to measuring impacts
generated by the Group on society and environment
and the relevance for our stakeholders, we added
the possible financial impact caused by risks andopportunities for each topic. For the latter we reliedon the Enterprise Risk Management assessment
to measure the financial risk and opportunityof each topic.

Significance for stakeholders

FEDRIGONI GROUP

Materiality Matrix and SDGs

Water

Community relations
HIGH

HIGHLIGHTS

Index

Annual Report 2022

HIGH

Fedrigoni impacts on society and environment

VERY HIGH

Sustainable procurement— Environment— Social

E

S

G

Impact on Fedrigoni (€)

High

Low

— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

30

Annual Financial
Report— Annex

TopicsHIGHLIGHTSFEDRIGONI GROUP

The Materiality analysis, in combination with the SDG
Action Manager tool by UN Global Compact allowed
us to identify Sustainable Development Goals (SDGs)
on which we want to make the difference:

Index

Annual Report 2022

Material topic

SDGs

CO2 and renewable energy

SUSTAINABILITY REPORT— Our purpose—

Our products

The Fedrigoni Group— Methodological note
Excellence in product eco-design and quality— Making Progress concept— 2030 ESG Targets— 2022 Scenario

Biodiversity— The main initiatives implemented in 2022
— Our business— Governance
Sustainability Governance: our widespread model

Water

Sustainability Report

Materiality Matrix and SDGs
Code of Ethics
Internal Audit
Enterprise Risk Management

Governance and business ethics

TCFD disclosure
Cyber Security
Our stakeholders
Value generated and distributed

Health and safety

Tax management
Sustainable procurement— Environment

Diversity, equity and inclusion— Social— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

People experience and development

Community relations

31

Annual Financial
Report— AnnexHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance
Sustainability Governance: our widespread model
Code of Ethics
Internal Audit
Enterprise Risk Management
TCFD disclosure
Cyber Security
Our stakeholders
Value generated and distributed
Tax management
Sustainable procurement— Environment— Social— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

applicability of laws, measures, and directives relevantto the Group, serving as a filter for the organisationby providing the business with operational guidelines,
specific business support, compliance advice, arisk & compliance newsletter, and support to theinternational sanctions regime.
In line with 2021, during 2022 the Internal Audit,
Risk & Compliance Function planned and carried out
an Ethics & Compliance training and awarenessprogram aimed at all Group employees.
Aiming at raising awareness within the organisation
on issues related to the Code of Ethics and effectively
spreading it, the Internal Audit, Risk & Compliance
Function promoted the creation of a video coursewith the participation of the CEO and other membersof the Top Management. The course, mandatory for all
employees, is available on our intranet.
A large number of training initiatives related tothe principles of behaviour and conduct set forthin the Code of Ethics and the Global Policies werealso carried out. Such workshops were held bothin person at Group premises and plants and via
e-learning and involved white and blue collar. Thirteen
workshops were held in 2022 by the Internal Audit, Risk
& Compliance Function, involving more than a hundred
colleagues trained with live sessions.
The Internal Audit, Risk & Compliance Function
also carries out communication and information
activities related to compliance issues throughperiodic newsletters and ad hoc information for
the Leadership Team or selected groups ofinterested parties.
Furthermore, compliance aspects are linked to
employee compensation and the performanceappraisal system also integrates such aspects.
In 2022, we recorded no breach of the Code of
Ethics. We received two reports from our employees
but after internal investigations no violations
were found.

33

Annual Financial
Report— Annex

The Code of Ethics, adopted in 1998 and updated in
2021, defines the principles of behaviour that inspires
our activities. It applies to all companies of the Group
and, in 2022, we trained 40% of our people, with 80%
of white collars.
The Code of Ethics is the main pillar of ourgovernance and sets out conduct principles withthird parties, Public Administration, customers,
and suppliers, market competition issues, andpotential conflict of interest. The Code of Ethics alsopresents the Fedrigoni Behaviours, namely the rulebook governing our actions and how we approachtransformation in Fedrigoni.
A set of Global Policies was adopted during 2022,
which, by developing the principles of the Codeof Ethics, contributed to the Group Compliance
Program. These Global Policies, inspired by relevant
best practice, provide guidelines in the areas ofanti-corruption, antitrust, international sanctions,whistleblowing, third-party screening, gift andhospitality management.
With reference to the Group Compliance Program,
Fedrigoni, Gruppo Cordenons, Ritrama and Arconvert
updated their Organization, Management, and Control
Models in 2021-2022, according to Italian Legislative
Decree No. 231/2001, which regulate sensitive areas
in relation to corporate liability. These documents
provide control principles and behaviour guidelines
for the prevention of crimes listed in Italian Legislative
Decree No. 231/2001.
Issues in terms of compliance are shared with the
A&R Committee and relevant functions, with reference
to Corporate Liability, GDPR, Antitrust, etc. As regards
compliance, IAR&C manages heterogeneous
activities with varying levels of granularity, involving
colleagues at different levels (from top management
to blue collar), across different geographical areas.
IAR&C also monitors, studies, and analyses theSustainability Report

Materiality Matrix and SDGs

Code of Ethics

The Fedrigoni Group— Methodological note

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance
Sustainability Governance: our widespread model
Code of Ethics
Internal Audit
Enterprise Risk Management
TCFD disclosure
Cyber Security
Our stakeholders
Value generated and distributed
Tax management
Sustainable procurement— Environment— Social— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORTIn March 2022 the Group approved the Enterprise Risk
Management (ERM) Policy, which defines the ERM
Governance Model setting out the responsibilities of
the involved Functions.
The ERM governance model, in line with international
benchmark references, promotes proactive risk
management at Group level, ensuring appropriate risk
management strategies are defined and enforced
to address the main risks and improving the Groupcapabilities to anticipate and/or respond to businesschanges and uncertainties.
According to the ERM Policy, the Internal Audit, Risk
& Compliance Function ensures the identification,
evaluation, management, and monitoring of
the Group’s main risks, in coordination with therisk owners. Moreover, the Internal Audit, Risk &Compliance Function is responsible for defining,
implementing, and updating processes, tools, andmethodologies for enterprise risk management.
The Executive Committee supports the CEO in
ERM system-related decisions, and the Audit &Risk Committee supports the Board in risk control
activities. The Internal Audit, Risk & Compliance
Functions is structurally independent from thebusiness lines, since the Group Compliance Officer &Chief Internal Auditor reports directly to the CEO. The
Group Compliance Officer & Chief Internal Auditor
is also a member of the Audit & Risk Committee,
where he periodically reports on the progress of risk
management, compliance, and internal audit projects
and activities.
ERM activities help to ensure that top management
is aware of the challenges related to achieving goals
and the necessary actions to be implemented tomitigate the resulting risks. Therefore, continuing thepath started in 2021 and in line with the ERM Policy, thesecond exercise of Risk Assessment was conducted
in 2022 to update the Group’s risk profile considering
the goals set in the 2022-26 Strategic Plan.

The Top management was involved in this activity
to identify and evaluate the main risks related toachieving the goals set in the Strategic Plan.
The evolution of the Group’s risk profile reflects
the major changes in the external and businessenvironment: new or accelerated risks have emerged
and previously mapped risks have been confirmed.

New or Accelerated

Macroeconomic& Geopolitical
Instability

Integrations& Organizational
Transformation

People Attraction& Talent Mobility

Main Challenges
Confirmed

Supply Chain
Challenges

HSE& Sustainability
Challenges

IT Management& Cyber
Security

34

Annual Financial
Report— AnnexAccording to the reference standards, the Internal
Audit, Risk & Compliance Function submitted the
Audit Mandate to the Audit & Risk Committee, whichapproved it for the first time in February 2022. This
mandate defines the responsibilities of the function
in ensuring the improvement of the Internal Control
System, periodically verifying its adequacyand effectiveness.
The Audit Mandate describes the responsibilitiesof the Internal Audit, Risk & Compliance
Function, including:•s etting up a periodic follow-up process
to monitor corrective actions identified throughaudit activities;• monitoring the outcomes of Enterprise Risk
Management activities as input for defining
a risk-based Audit Plan;• defining, implementing and maintaining proper
processes, tools and methodologies to address
business risks, supporting their identification,
evaluation, and management.
According to industry standards, the Internal Audit,
Risk & Compliance Function submits the Audit Plan
for approval to the Audit & Risk Committee and to theCEO. The Audit Plan is developed using a methodologythat includes the following objective parameters forselecting processes and legal entities to be audited:• results of the Group Enterprise Risk
Management assessments;• results of previous audit activities;• five risk drivers developed according
to audit best practice.
The results of the audit activities are shared with therelevant functions, as well as with the CEO and the
Audit & Risk Committee.
At the end of each audit cycle, IAR&C shares theAnnual Report on the performed audit with the
Statutory Auditor, External Auditors, and Supervisory
Body of the parent company.

Sustainability Report

Materiality Matrix and SDGs

Enterprise Risk Management

The Fedrigoni Group— Methodological note

Internal Audit

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance

Energy & Raw material shortage& price increase

Health & Safety Issues

The pandemic at first and then the outbreak of theRussia-Ukraine war caused severe shocks along the
supply chain with impacts on raw material and energy
prices. In the next years the context may remain
unstable, causing further uncertainties around prices,
cyclical shortages of various commodities and low
viability of gas and power.

Group operations are exposed to risks of occupational
health and safety. A major incident may cause physicalinjury to employees and a temporary shutdown of one
or more plants.

How tomitigate
the risk

How tomitigate
the risk

Sustainability Governance: our widespread model• Sourcing of new suppliers
and alternative materials• Recovery plans in caseof gas rationing measures• Hedging policies

Code of Ethics
Internal Audit
Enterprise Risk Management
TCFD disclosure
Cyber Security
Our stakeholders
Value generated and distributed
Tax management
Sustainable procurement— Environment— Social

People Attraction& Talent retention

CO₂ emission reduction & energy transition is oneof the most relevant challenges. Expected increasein production volumes in the coming years and thecurrent low availability of green energy on the market
due to delays of EU / Italy in the transition
from gas to green sources may impact the
Carbon Neutrality Pathway.

The pandemic led to structural changes in the work
environment, including shifts to hybrid work, needs for
new skills, changes in the expectations of employees
in terms of work-life balance, social priorities related
to inclusion, diversity and equity especially withrespect to the younger generations. This context,
may negatively affect the attraction and retentionof talents and skilled people and the developmentof talent mobility.

How tomitigate
the risk

How tomitigate
the risk— Annex— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT• Defined roadmap for the
reduction of for scope 1, 2
and 3 emissions• Resource efficiency and adoptionof low carbon technologies
and products• HR Roadmap aimed atenhancing People Experience,
Performance Culture & People
Growth Acceleration, People
Development, IDE initiatives

35

Annual Financial
ReportCarbon Neutrality& Energy Transition

Sustainability Report

Materiality Matrix and SDGs

• HSE policy and procedures andperiodic staff training• Machines equipped with passive
and active protection• Continuous improvementand development of safety
programmes and regularmanagement review

Our financial incentive program for employees
incorporates key risk management metrics to ensurealignment with our overall risk management strategy,
including senior executives and managers.
Risk management training is implemented
throughout the organisation to ensure that all
employees are aware of their relevant risk: forexample, risk management modules are included
in mandatory training related to Health and Safety,
Cybersecurity, Privacy and GDPR, Corporate liability
and ethics. In 2022, 100% of people participated in atleast one training session concerning risks.  
Risk management criteria are part of the HR review
process for employee evaluations.
Our people are the first line of defence against risks,
and we have implemented various mechanisms thatempower employees to report potential incidents
based on their experience and observations.
Our approach is based on striving to innovate andimplement best practices to foster a sound risk
culture within the organisation.

The Fedrigoni Group— Methodological note

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance
Sustainability Governance: our widespread model
Code of Ethics
Internal Audit
Enterprise Risk Management
TCFD disclosure
Cyber Security
Our stakeholders
Value generated and distributed
Tax management
Sustainable procurement— Environment— Social— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

Governance
The governance of climate change risks andopportunities is a top priority for our company. Our
CEO is a strong advocate for addressing both therisks and opportunities posed by climate change
and the need for a financially accessible energy
transition, as confirmed by our recent People andNature commitment. Moreover, our CEO has taken
the position of Chief Sustainability Officer. The
Executive Committee is responsible for developing
and executing our ESG strategy through 2030,
which includes our energy transition strategy andour efforts to reduce CO₂ emissions. The Executive
Committee Each quarter has an in-depth section
devoted to addressing ESG issues in greater detail.
To keep us always on track, our CEO and the Headof Group Sustainability hold monthly sustainability
checkpoints, and the entire Leadership Team holds
monthly Transformation Reviews to monitor our
ESG performance. The monthly meetings of ourSustainability Team are also critical to ensuring that
our ESG initiatives are implemented effectively.

Strategy
Our strategy for managing climate change involves
a comprehensive approach to reducing our carbon
footprint. A thorough assessment of our emissions iscarried out over the entire life cycle of our products;
new solutions and innovative technologies to replacefossil fuels at our plants are being extensively
investigated. Our strategy aligns with the targets set
by the Paris Agreement in 2015 and the Sustainable
Development Goals (SDGs).
Our paper production plants are subjected to theEuropean Union Emissions Trading System (EU-ETS).
We set an internal Carbon Price equal to the price of
the ETS allowances to drive energy efficiency and lowcarbon investments. Moreover, we have a dedicatedbudget for emission-reduction related activities.
Our aim is to reduce our reliance on fossil fuels.
Many alternatives and their technological feasibility
are being examined for such a purpose. Together, with
suppliers and other stakeholders, we are studying anddeveloping viable solutions in the short, medium andlong term.

Risk management
Our risk management approach plays a crucial rolein driving our business forward and is integral to thesuccessful realisation of our long-term business plan.
We adopt an integrated approach to risk management,with risk and opportunity assessment being a central
focus of the leadership team’s agenda.
Climate change risks and opportunities areintegrated into the Group Enterprise Risk Management
program (ERM) covering all types/sources of risks
and opportunities. Our risk management includes
physical and transitional risks related to climatechange. We have developed a mapping of physicalrisks associated with climate change at our
production sites through our Climate Change Risk
Assessment. Our commitment to understanding andmanaging the potential impacts of climate change on
our operations is embodied in this initiative. We havemapped our physical risks related to climate change.
Criteria for this analysis include detailed forecasts ofchanges in extreme events such as rainfall intensityand frequency, high temperatures, historical tropical
cyclone activity, coastal flooding, drought and water
stress, and forest fire potential. The analysis focuses
on extreme weather impacts which occur today andother medium-term climate impacts.
% of our production sites exposed to the various
climate risks mapped
Heat waves

59%

Floods41%

Water stress

35%

Fires

18%

Hurricanes and typhoons0%

Sea level rise

0%36

Annual Financial
Report— Annex

This section aims at providing clear and forthright
disclosure regarding climate change issues, according
to the recommendations of the Task Force on Climaterelated Financial Disclosures (TCFD). The subsequentparagraphs summarise how Fedrigoni is addressing
both the risks and opportunities presented by climatechange in the areas of governance, strategy, risk
management, metrics, and targets. Fedrigoni isdedicated to continually enhancing our environmental
governance, strategy, metrics, and goals, in line withbest practices and inspired by TCFD guidelines.

Sustainability Report

Materiality Matrix and SDGs

TCFD disclosure

The Fedrigoni Group— Methodological note

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— GovernanceMetrics and targets
We collect our Scope 1 and Scope 2 emissions
monthly. All metrics (Transformation Reviews andSustainability Checkpoints) are reviewed with top
management every month to monitor the projects
and streams of ongoing actions in the most effective
way. We are improving our Scope 3 emissions
data collection.
We have set Scope 1,2 and 3 targets that have been
approved by the Science-Based Target Initiatives.
Our long-term goal is to achieve Carbon Neutrality by
2050, considering our entire carbon footprint.
ESG objectives are part of all managers’ MBOs (25%weight in 2022).

TCFD

Governance

Strategy

RiskManagement

Materiality Matrix and SDGs

• We have adopted a medium-term strategy by 2030 and a long-term strategy by 2050 to reach
Carbon Neutrality. We set emissions reduction target approved by SBTi.
• Continuous scouting and collaboration with different stakeholders to find feasible technological solutions
to reduce our carbon footprint.
• Transition Risk mapping under the Group Enterprise Risk Management.
• Physical Risk mapping related to climate change (Climate Change Risk Assessment) for our production sites.

Metrics
and targets

Sustainability Report

TCFD disclosure•M onthly meetings (Transformation Review) with the entire Leadership Team to track ESG performance.

• Scope 1, 2 and 3 inventory in our Sustainability Report.

Code of Ethics
Enterprise Risk Management• Our CEO is also the Group Chief Sustainability Officer.
• The Executive Committee is responsible for developing and executing the ESG strategy by 2030,
including the energy transition strategy with our contribution to reducing CO₂ emissions.

•M onthly Sustainability Team meetings to ensure that the ESG initiatives are implemented effectively.

Sustainability Governance: our widespread modelInternal Audit

Fedrigoni’s approach

The Fedrigoni Group— Methodological note

Index

Annual Report 2022

• Fedrigoni commits to reduce absolute Scope1 and 2 GHG emissions 30% by 2030 from a 2019 base year.
Fedrigoni also commits to reduce absolute Scope 3 GHG emissions from fuel and energy related activities
30% within the same time frame. Fedrigoni further commits that 90% of its suppliers by spend, coveringpurchased goods and services, and capital goods, will have science-based targets by 2027.

Cyber Security
Our stakeholders
Value generated and distributed
Tax management
Sustainable procurement— Environment— Social— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

37

Annual Financial
Report— AnnexHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance
Sustainability Governance: our widespread model
Code of Ethics
Internal Audit
Enterprise Risk Management
TCFD disclosure
Cyber Security
Our stakeholders
Value generated and distributed
Tax management
Sustainable procurement— Environment— Social

In order to cope with ever-increasing cyber risks, theactions of our cybersecurity reinforcement program
are reviewed and adapted annually, and focus on fourmain areas of action:•C ulture: multi-channel awareness and training
to all employees; with mandatory cyber courses(i.e.: Phishing, Vishing, CEO Fraud, escalation/
notification process, etc.) and phishing simulations
to all employees with IT equipment. The level ofcyber awareness for each employee (based on
the results of phishing and training) is periodicallysurveyed and evaluated.
Organisation: increasing the supervision of
cybersecurity issues from the point of view of thenumber of dedicated resources and skills required;
there is a specific team (consisting of internal anddedicated external consultants) in addition to external
services dedicated to 24x7 threat monitoring
and response.
Processes: defining and structuring the governanceof activities, processes, and procedures in the cybersphere; Our Information Security Policy shared to all
employees, as well as processes (tested periodically)for vulnerability management (involving Vulnerability
Assessment and Penetration Testing), security
incident management, and digital
identity management.
Technologies: adopting integrated technologicalsecurity solutions (examples: SIEM, Endpoint
Detection and Response, WAF) and improving
the effectiveness of existing ones.

— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

38

Annual Financial
Report— Annex

Cybersecurity is a risk element that companies in all
sectors face. Our focus on this issue has intensified
in recent years, partly in response to the increasing
complexity and frequency with which cyberattacks
are being waged against national and international
companies. Since 2019, we have established acybersecurity strategy with the following aims:•C reating an organisational-wide cybersecurity
awareness through communication campaigns
on the main corporate channels (Workplace, email,monitors at plants).
• I dentifying the main cybersecurity risks
for the business.
•A ssessing the maturity level of the cybersecurity
control system in relation to the internationalframework (NIST).
• I dentifying the areas of intervention and mitigation
actions to reduce the risks of cyberattacks, drawing
up a multi-year cybersecurity transformation plan.
In 2022, we further bolstered our ability as a Groupto respond to cyberattacks and took out an insurance
policy against cyber risks.
At Fedrigoni, the Group IT Security Manager reports
directly to the Group Chief Information Officer (who isa member of the Executive Committee). Cybersecurity
issues are periodically shared with the Boardof Directors.

Sustainability Report

Materiality Matrix and SDGs

Cyber Security

The Fedrigoni Group— Methodological note

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT

Index

Annual Report 2022

Our stakeholders
Below is described how we engage with eachcategory of stakeholders on a regular basis.

Internal

External

The Fedrigoni Group— Methodological note
— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance
Sustainability Governance: our widespread model
Code of Ethics
Internal Audit
Enterprise Risk Management
TCFD disclosure
Cyber Security
Our stakeholders
Value generated and distributed
Tax management
Sustainable procurement— Environment— Social— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

Customers

Financial Community

Suppliers•E mployee satisfaction surveys;•N
 EXT, development program foryoung talents;•S ustainability breakfasts,
informal meetings to promote
the ESG strategy and action plan
towards 2030 (reaching 386
people in 2022);• I nvolvement in the
Sustainability Team;• Two-way communication oncompany social networks;•E nvironmental initiatives during
working hours;• Open showrooms with ourbeautiful products to relax
and enjoy.

• Quarterly disclosure of key
ESG performance;• Involvement in updating themateriality matrix.

• Regular meetings to boost
our customers’ creativity;• Involvement in updating themateriality matrix;• Net Promoter Score Paper
customers of 63 in 2022
(67 in 2021), third-party verified;• Net Promoter Score
Self-Adhesives customersof 51 in 2022 (61 in 2021),
third-party verified;• Fabriano Boutique;• Fedrigoni Top Award, since2005 our biggest celebrationof craftsmanship and creativity.
This is the only award in the world
dedicated to graphic designers,
printers, and brands who
win as members of a single
project team.

• Quarterly disclosure of our key
ESG performance;• Involvement in updating themateriality matrix.

• Workshops with suppliersof energy, materials, andmachinery to find solutions
with lower CO₂ impact.

Institutions andlocal communities• Partnership with InspirinGirls
International, an international
NGO that connects girls withfemale role models fromdifferent backgrounds who
can encourage them to follow
their own inspirations, freefrom stereotypes;• Festival del Disegno(Drawing Festival);• Fedrigoni Fabriano
Foundation’s activities.

39

Annual Financial
Report— Annex

Shareholders and the Board

Sustainability Report

Materiality Matrix and SDGs

Employees

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets

The generated and distributed value is the direct
economic value generated (revenues) and the
distributed economic value (operating costs,
employee salaries and benefits, payments to capitalproviders, payments to the government per country
and community investments). It is, therefore, thewealth that the company generates and redistributes
in various forms to stakeholders. In 2022, we
generated and distributed € 2.3B, distributed among
the different corporate stakeholders as follows:

The Fedrigoni Group contributes through its activities
to the tax revenues of various jurisdictions, thus
promoting the economic and social development ofthese countries, operating in compliance with theprinciples of legitimacy in both form and substancewith regard to fairness, compliance with the rules,transparency, clarity and truthfulness of accounting,production and management records, in accordancewith the literal meaning and underlying rationale of
the regulations in force and the company procedures
designed to ensure their application and control overtime, as well as the provisions of the Code of Ethics.
The Group ensures compliance with the principles
of conduct aimed at guaranteeing (i) the integrity ofthe share capital, (ii) the protection of creditors andthird parties who establish relations with the Group
companies, (iii) the regular performance of the market,(iv) the exercise of the duties of public supervisory
authorities and, in general, (v) the transparency andcorrectness of the activities carried out, both from an
economic and financial point of view.
Fedrigoni pays careful attention to compliancewith current tax regulations in order to adequately
meet the expectations of its stakeholders, including
the government, shareholders, employees, and thecommunities in which the Group operates.
Fedrigoni has adopted a tax strategy that illustrates
all the approaches and objectives adopted by theGroup to manage taxation, also aiming to ensure
uniform tax management in all Group entities by— 2022 Scenario€/1000

2022

2021— The main initiatives implemented in 2022

Economic value generated

2,351,588

1,689,896— Our businessEconomic value distributed

2,196,478

1,582,830— GovernanceValue distributed to suppliers

1,758,867

1,239,874

Sustainability Governance: our widespread model

Value distributed to employees 280.729

249,218

Materiality Matrix and SDGs
Internal Audit

value distributed to providersof capital
Value distributed to
Public Administration

Enterprise Risk Management

Value distributed to Shareholders 0

TCFD disclosure

Value distributed
to the community*
Economic value retainedby the Group

Code of Ethics

Cyber Security
Our stakeholders
Value generated and distributed
Tax management
Sustainable procurement— Environment— Social— Auditor’s Report on the Sustainability Report

68,46427,53724,483
0

1,008

791

155,110

107,066*in 2022, € 100k have been donated for philantropic activities

No contributions were made to lobbies and/or politicalorganisations. Fedrigoni is a member of various tradeassociations including Assocarta and Assolombarda.
In 2022 € 800k were paid for membership fees.

ANNUAL FINANCIAL REPORT

40

Annual Financial
Report— Annex

128,337

issuing globally recognized principles. In addition,
guidelines have been defined to ensure compliancewith tax and fiscal regulations and to ensure theGroup’s capital and reputational integrity over time.
Specifically, the tax strategy pursues thefollowing objectives:• Managing the tax variable while protecting theinterests of all stakeholders;• Always operating in compliance with tax regulations
with regard to both the literal meaning of therules and the underlying rationale, monitoringand overseeing new legislation, including throughregular consultations with tax consultants, as wellas with the relevant institutions at national andinternational level, where necessary;•M aking decisions on tax matters in line withnational and international best practices,
as well as consistent with its strategic objectives
and risk appetite;•P romoting professional due diligence in handlingtax-related activities and processes, as also set out
in the Code of Ethics, and ensuring that the relevant
procedures are appropriate;• Providing appropriate technical training to all
employees involved in handling tax-related
obligations and activities;•E stablishing thorough, accurate information flows
to management bodies and tax authorities;• Encouraging the development of constructive,
professional and transparent relations with theTax Authorities based on the concepts of integrity,
cooperation and mutual trust;

Sustainability Report

Tax management

The Fedrigoni Group— Methodological note

Value generated and distributed

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUP— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario—

The main initiatives implemented in 2022—

Our business— Governance
Sustainability Governance: our widespread model
Code of Ethics
Internal Audit
Enterprise Risk Management
TCFD disclosure
Cyber Security
Our stakeholders
Value generated and distributed
Tax management
Sustainable procurement— Environment— Social—

Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORTSDG where we wantto make the difference

95% of theexpenditurealso qualified
according to
ESG criteria,
starting at
50% (baseyear: 2020)

In 2022 we had 795 suppliers, for a total expenditureof € 1,089B of direct materials.
In terms of expenditure, in 2022 87% of expenditureof direct materials has a sustainability score valid in
the last 24 months (target of 95% in 2030).
The following tables show the expenditure trends
for direct materials by type of supply andgeographical area:
Expenditure by typeof supply*

2022

2021

2020

Chemicals

24%

25%

24%

Pulp

22%

22%

20%

Paper (face and liner)

33%

30%

32%

Film (face and liner)

15%

16%

15%

Packaging

5%

4%

4%

Other

1,7%

2%

6%

Total

100%

100%

100%

*The following scope of consolidation is specified: in the reportingof data for the three-year period, the company GPA Holding Company Inc.
is always excluded. In 2020, the companies Arconvert Brazil and Fedrigoni
Brazil (sold in 2021) are excluded. In 2021, IP Venus and the Bollate plant are
excluded for the Security segment. From 2020, Ritrama is included in thedata reporting scope following its acquisition. The change in the weightof the Pulp category from 2020 to 2021 is attributable to the increase intotal expenditures.

Expenditure by2022
geographical area(plant of consumption)*
Europe
82%

2021

2020

89%

92%

South America

9%

9%

5%

North America

7%

0%

0%

Asia

2%

2%

3%

Total

100%

100%

100%

*The following scope of consolidation is noted: GPA Holding Company Inc.
is always excluded from the reporting of data for the three-year period

41

Annual Financial
Report—Annex

We manage our supply chain based on collaborationand partnership.

Sustainability Report

Materiality Matrix and SDGs

• Adopting a group transfer pricing policy based on
the principles of normal value and free competition
which is in line with the arm’s length principle
defined by the OECD guidelines, preparing theappropriate transfer pricing documentation inaccordance with the OECD;• Transfer Pricing Guidelines (i.e. Master File, Local
File, and Country-by-Country Report);• Consistently and adequately assigning roles,
responsibilities and powers to staff involvedin processes that have tax implications so as
to ensure proper management of tax risk andminimise the possibility of disputes;•N ot making investments in or through tax havens
or low-tax jurisdictions for the sole purpose ofobtaining undue tax advantages or structuresdesigned for tax avoidance. In the organisationalmodel, the management of regulatory complianceand tax planning activities at local level issupervised and coordinated by the Parent
Company’s Tax Management department. This
department also monitors the development oftax legislation in the various countries the Group
operates in so as to minimise any material impact
in terms of tax risk in accordance with the Group’s
Tax Strategy. Finally, Fedrigoni is committed tomaintaining a cooperative, transparent relationshipwith the tax authorities of the countries where
it does business, ensuring that they have afull understanding of the facts underlying theinterpretation/application of specific tax laws.
The Board of Directors has approved the Group’s
tax strategy, assuming responsibility for ensuringthat it is known and applied, in conjunction withthe specific task of disseminating the culture andvalues underlying it.

The Fedrigoni Group— Methodological note

Sustainable procurement

TargetESG 2030

SUSTAINABILITY REPORT

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance
Sustainability Governance: our widespread model
Code of Ethics
Internal Audit
Enterprise Risk Management
TCFD disclosure
Cyber Security
Our stakeholders
Value generated and distributed
Tax management
Sustainable procurement— Environment

We are planning to amend the document in 2023,
further detailing some key aspects, such as:
implementation of a mechanism of periodic reviewof the performance of our suppliers, presentationof our ESG KPIs and definition of improvement plans,in order to make the document fully in line with thesustainability report.
Furthermore, we are planning to continue thebusiness with commodity managers and with
suppliers of the companies acquired in 2022.
• Revision of the General Purchasing Conditions
containing a direct reference to the Suppliers’ Codeof Conduct and sustainability aspects in the way
the supply is conducted. All orders and purchasing
contracts are governed by the General Terms andConditions. In 2023, business continues with the
suppliers of the companies acquired in the second
half of 2022.

• Implementation of the Ecovadis Platform: the“CSR ratings” enable a third-party assessment of
a supplier’s “ESG merit” in order to jointly define
improvement plans. In terms of expenditures in 2022,
87% had a valid sustainability score in the last 24
months. In 2022 we implemented the second moduleof the Ecovadis Procurement Platform which is called‘IQ’.This module allows us to assess the supplier’s
ESG risk in relation to the country and specificindustry and then define the overall risk, also taking
into account the supplier’s strategic role within ourcompany. These requirements will influence thechoice of products and services to be purchased:
all things being equal, the higher the ESG rating,the more likely Fedrigoni will choose that supplier.
Suppliers rated below a minimum threshold will beclassified as “high risk” and will need to develop andshare an improvement plan.
In 2022, we reached the following target in termsof performance:• Average score of Fedrigoni suppliers 59.5 vsan average 44.9;• 93 suppliers were added to our networkin almost 1 year.

Sustainability Report

Materiality Matrix and SDGs

Sourcing Policy
In 2022, the dissemination activity continued• New Strategic Sourcing Process with actions in
the area of Business Requirements Analysis, Supply
Base Assessment, Sourcing Strategy Development,
Scouting & Benchmarking, Sourcing Execution,
Negotiation & Business Award. ESG aspects suchas volume allocation criteria, strategy evaluation
criteria, and supplier evaluation criteria have been
included in this document.
In 2022, we completed the document, defined anddetailed all the relevant areas related to the process.
We also shared the process with the Procurement
function and with the interested functions.
The following areas have been included:• Onboarding of new suppliers and ESG ratings
valid for new supplier qualification;• RACI matrix;• ESG criterion, as a favourable elementin volume allocation.
In 2023 we will continue with the activitiesof training of the Procurement Team andthe new acquired companies.

The Fedrigoni Group— Methodological note

Supplier code of conduct
All our suppliers are required to adhere to our Suppliercode of conduct.
In 2022, the business continued with the suppliersof the companies acquired in 2021 and, in 2023, theactivity will be extended to the suppliers of companies
acquired in 2022.

Index

Annual Report 2022

— Social— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

42

Annual Financial
Report— AnnexHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022

• Implementation of a quarterly monitoring
system of the ESG indicators for all major
product categories:- Spend covered by suppliers with an ESG
assessment: 87% of direct material spend in 2022.
- Spend with suppliers classified as “high risk”
according to ESG criteria: 6% of direct material
spend in 2022.

Audit on site• We carried out 4 Ethical audits at our suppliers’ site,covering 18% of the expenditure of direct materials..
Within the audit, topics related to ethics and humanrights were also discussed. The average score was
9.9/10 and therefore no critical issues emerged.
In 2023 we aim to cover 25% of the expenditure of
direct materials with this type of audit.

Training & workshops• Roundtables with more suppliers to encourage
their participation in our Sustainability program
telling them about the benefits of the project.

Supplier classification• Fedrigoni Group suppliers are classified into 5
categories: Strategic, Preferred, Non-Recurring,
Commercial Supplier, and Intercompany. This
provides visibility into the type of business
relationship and its subsequent evolution.

— Our business— Governance
Sustainability Governance: our widespread model
Code of Ethics
Internal Audit
Enterprise Risk Management
TCFD disclosure
Cyber Security
Our stakeholders
Value generated and distributed
Tax management
Sustainable procurement— Environment— Social— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT• 5% of MBO linked to the achievement ofsustainability targets specific for the entire
Procurement Team workforce with a Management
by Objective (MBO) mechanism, on top of the GroupESG target.
In 2023 we will continue with new workshops and withthe activation of the Academy EcoVadis for the entire
Procurement Team.

43

Annual Financial
Report— Annex• ESG training of the entire Procurement Team inorder to have buyers aware, trained, and sensitised to
ESG issues and related risks and opportunities• A second classification completes the picture froman expenditure point of view:
CO= Commodity Supply. Easily replaced, numerous
competitors, low value of supply.
DU=Dual Sourced, several suppliers are qualified
for the same supply, a change of supply can takeeffect immediately.
SI=Single Sourced, there are several suppliers in
the market for the same product, however, only one
supplier is approved for that specific product, achange of supply can take between 1 and 6 months.
SO= Sole Sourced, only one supplier is active andqualified, there are no alternatives available, a changeof supply has a timeframe of more than 6 months.
In 2023 we will implement initiatives to monitor therisk management for tier-2 suppliers.
• In 2022 we continued with the implementation ofGreen Sourcing initiatives for purchasing energy
produced from renewable sources to reduce our
Scope 2 emissions.

Sustainability Report

Materiality Matrix and SDGs

• Workshops with the main suppliers of raw materials,
energy (methane gas and electricity), and machineryfor producing paper and self-adhesive materials to
stimulate technically- feasible and economicallyaffordable solutions (62 suppliers involved, 10
product categories, 360 people for a total of 229
hours invested).

The Fedrigoni Group— Methodological note

Index

Annual Report 2022

IndexAnnual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORTThe Fedrigoni Group— Methodological note
— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment

Sustainability Report

Raw materials
Water
EnergyCarbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy
Life Cycle Assessment
End-of-life of our products— Social— Annex

ANNUAL FINANCIAL REPORT

Environment

44

Annual Financial
Report— Auditor’s Report on the Sustainability Report

SUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Environment
Water
EnergyCarbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy
Life Cycle Assessment
End-of-life of our products— Social— Annex

ANNUAL FINANCIAL REPORTThe two main sub-categories are:• Glassine: These are the paper-based
backings used as the backs to makethe self-adhesive label material. It is thenon-functional part that is subsequently
removed and discarded by the end-user.
We have developed end-of-life
glassine recovery solutions at our
printer customers (details in the“Waste” section);• Face papers: These are the paperbased facings used as the “front faces”
to make the self-adhesive label material.
It is the part that is subsequently printed
and used by the end-user. There aredifferent types of face papers suchas coated papers, thermal papers,
and specialty papers which are used
for high value-added labels in the wine
industry (these are purchased from
Fedrigoni Paper).

46

Annual Financial
Report— Auditor’s Report on the Sustainability Report

In 2022 we used 96% COC and 4% CW.
Our pulp comes from Brazil (about 45%)and the rest from Uruguay, Sweden,
Finland, Estonia, Spain, France, Canada,
Chile, Austria and Croatia.

This is the “finished” paper purchasedby the Self-Adhesives Business Unit thatis not currently produced by the Paper
Business Unit.

Sustainability Report

Raw materials• Face films: These are the plastic-based
film faces used as the “front faces” tomake the self-adhesive labels; it is thepart that is later printed and used by theend-customer. They are mainly madeof polypropylene and polyethylene andthere are various types with different
surface finishes (matt, glossy, metallic).
Our product range also offers solutions
with recycled polypropylene.

Paper— Governance• Liner films: These are the plastic-based
liners used as the backs to make theself-adhesive material for labels, whichis the non-functional part that is later
removed and discarded by the end-user.
It is usually either new or recycled PET;The Fedrigoni Group— Methodological note

Used in the Self-Adhesives Business Unit
both as facestock and liner materials.

Films

FEDRIGONI GROUP

The main types, used in different mixes
based on the final features of thepaper, are softwoods such as European
softwoods, hardwoods (eucalyptus
and mixed hardwoods), and BCTMP.
The raw materials also include a small
percentage of cotton used for art paper.
Fedrigoni owns no forests and has nodirect access to pulp but buys fromcontrolled and certified plantations,and our procurement system is only
through qualified, verified suppliers.
For many years, the use of timber fromforests has been subject to regulations
and involves the reforestation of areasused for production. The productionof paper is subject to certification
showing that it comes from sourcesthat are managed sustainably for theentire ecosystem, including animals
and local communities. One of the mostimportant certification systems is FSC®
(Forest Stewardship Council). Since
2014, we set the target of having 100%of our pulp certified by FSC® according
to two different standards:• Chain of Custody (COC) is thecertification that guarantees thetraceability of materials from FSC®
certified forests and is essential for
applying FSC® labels on products.
• Controlled Wood (CW) is a material
classified as Controlled Wood, which
can be mixed with certified wood when
making products labelled as
FSC® Mixed.

Pulp

HIGHLIGHTS

Raw materials

Index

Annual Report 2022

FEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Water
EnergyCarbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy
Life Cycle Assessment
End-of-life of our products— Social— Annex

ANNUAL FINANCIAL REPORT• Dyes and pigments: These are usedboth in the pulp (the main body of thepaper) and on the surface for specialty
paper coatings. They are one of thecharacteristic elements of specialty
papers and are used to give the various
colour and pearlescent effects tothe paper;• Packaging: These are the elements
used to package the papers andself-adhesive material, the main ones
being pallets, boxes, crates and films.
• Cotton: for some special papers we
use cotton. The cotton used is a byproduct of the textile industry (second
cut linters: fibres too short to be used
for textile production, which remain
attached to the seed after ginning).

• Carbonates and kaolins: These areused for coatings. They are one of the
key components to ensure the correct
application of the coating on the paper.
Carbonates come from Italy and Austria
when needed (due to plant downtime).
Kaolins come from Germany and the US.

47

Annual Financial
Report— Auditor’s Report on the Sustainability Report• Vegetable starches: These are usedboth in the pulp and on the surface asbinders to make paper and surface
coatings, mainly obtained from maizeand potatoes;• Security elements: These are theraw materials used to create thesecurity features (both for paperand self-adhesive material), among
the most relevant are pigments, inks
and holograms;

Sustainability Report

Raw materials• Silicones: These are inorganic polymers
that can be from different families(solvent-free, water-based solventsand UV-crosslinked) and, depending on
the latter, undergo the “curing” process(polymerisation). They are used to makethe backing non-stick, thus allowing thelabel to be dispensed;

These are the different minor
categories used by both the Paperand the Self-Adhesives Business Unit,
the main sub-categories are:Other

— Making Progress concept• Adhesives: They represent the
key know-how of the Self-Adhesives
Business Unit. They can belong todifferent families (acrylic, hotmelt,
solvent and UV-crosslinked) and beof different types (permanent, semipermanent, removable and ultraremovable, including wash-off). They
can be bought ‘ready-to-use’ or as
raw materials to be ‘formulated’ at theGroup’s plants according to specificcoating technologies and productquality requirements;

The Fedrigoni Group— Methodological note

These are all the chemicals used by
the Self-Adhesives Business Unit and
the Paper Business Unit. The mainsubcategories are as follows:

Chemicalproducts

HIGHLIGHTS

Index

Annual Report 2022

FEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Water

SDG where we wantto make the difference-10% offreshwater
withdrawal
In parallel,
we still keep
our other twotargets:

100%

95% of water
returnedto theenvironment(baseline
2019)of the Italian Paper sites and 65%of the Self-Adhesives production
sites are certified to ISO 14001,
the standard for environmental
management systems, including
water management.

EnergyCarbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy
Life Cycle Assessment
End-of-life of our products— Social— Annex

ANNUAL FINANCIAL REPORT

Zero casesof waterpollutionof our mills have chemical andphysical water treatment and 75%
also have biological treatment.

100%

Zero casesof water pollution were detected
in 2022 and there were no conflicts
with local communities. In addition,
there have been no water-related
incidents with substantial impacts
in the last four years (over € 10,000).

49

Annual Financial
Report— Auditor’s Report on the Sustainability Report

To achieve our targets, we:-s treamline fibre recovery treatments to maximisewater reuse in the production cycle.
-m onitor consumption and take action
to prevent waste.
-a pply processes such as filtration, sedimentationand flotation to treat water.
-m anage risks related to regulatory changes (water
rates, extraction restrictions, discharge standards
and fees).

Sustainability Report

Raw materials

Paper would not exist without water. More than 90%of the water is returned to the environment after being
recycled several times in the production process andpurified of the organic and inorganic substances it
contains (that are necessary for the process).
A percentage of water remains in the sheet, about
6% of the total weight of the main body, and a smallpart evaporates.
Water consumption in the Self-Adhesives sector is
far less important in terms of impact than in paper
production. Water is mainly used in the washingstages of the cycles.

The Fedrigoni Group— Methodological note

Water

TargetESG 2030

HIGHLIGHTS

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORTThe table below shows the water withdrawal byGroup and Business Units:
2022
Million Litres (ML)

2021

Water
stressareas

Allareas*

5,166.1

Water
stressareas

Allareas*— Our purpose

Paper

—

Our products

Surface water body

1,612.4

1,563.5

6,689.5—

Making Progress concept

Well

2,236.3 10,563.5 2,301.2

8,921.4
03,856.1

15,742.5

3,864.7

15,610.9

Water
stressareas

Allareas*

Water
stressareas

Allareas*

Surface water

3,293.4

14,804.9

3,214.1

14,691.3

Million Litres (ML)— 2022 Scenario

Total Paper—

The main initiatives implemented in 2022

Self-Adhesives—

Our business

Surface water body

0

0

0

0

Groundwater

0

0

0

0

Well

0

0

0

0

Third-party water

0

4,0

0

0

Third-party water

543.2

804.6

28.4

249.7

3,214.1

14,691.3

Total Self-Adhesives

543.2

804.6

28.4

249.7

Total Group
withdrawal

4,399.3 16,547.2 3,893.1 15,860.6

Paper

Total Paper

3,293.4 14,808.9
0

0

0

0

Groundwater

0

0

0

0

Third-party water

543.2

804.6

28.4

249.7

Carbon dioxide emissions and energy

Total Self-Adhesives

543.2

804.6

28.4

249.7

transition towards carbon neutrality

Totale Groupwater discharge

3,836.6

15,613.5

3,242.5

14,941.0

EnergyOther atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy
Life Cycle Assessment
End-of-life of our products— Social*including water stress areas. Source for water stress: WRI, aqueduct

ANNUAL FINANCIAL REPORT

Reference value(BAT n.50)

2021

52.5

1.6

0.15-1.5 kg/ton gross weight

2022

43.2

1.3

*No absorbable organic halides (AOX) are generated or added via
chemical additives and/or raw materials.
**Chemical Oxygen Demand represents the amount of oxygen
required for the complete chemical oxidation of organic and inorganic
compounds in a water sample; the absolute COD figure in 2022 was
670.3 tons.

In 2022 we returned 94.4% of the water withdrawn.
The table below shows the water consumptions
for the Group:
2022

2021

Million Litres (ML)

Water
stress
areas

All
areas

Water
stress
areas

All
areas

Paper consumption

562.6

933.7

650.6

919.6

0

0

0

0

562.6

933.7

650.6

919.6

Self-Adhesives
consumption
Group total water
consumption*including water stress areas

50

Annual Financial
Report—kg/ton gross weight*including water stress areas— Annex
Auditor’s Report on the Sustainability Report

mg/l

Self-Adhesives
Surface water

Water

COD**

Sustainability Report

Raw materials

0

2021

Third-party water— Environment

13.0

2022

The table below shows the average value of the qualityof water discharges* from the Paper Business Unit in
2022. Figures are in line with values indicated by theBest Available Techniques (BAT):— 2030 ESG Targets— Governance

7.3

The index that compares the water withdrawal of
the paper division compared to the tons of paper
produced is 31.5 m3/t (down by 2.2% compared
to 32.2 in 2022).
The table below shows the water discharges
for the Group:

The Fedrigoni Group— Methodological note

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORTEnergyAlong with pulp and water, energy is the key elementin our production processes. The table below shows
the consumption of thermal energy needed for our
production, which is obtained using natural gas in our
cogenerators and electricity, more and more fromrenewable resources:— Our purpose— Our products(GJ)— Making Progress concept

Paper— 2030 ESG Targets— 2022 Scenario

2022

2021

Natural Gas

5,096,496

5,017,677

Electric energy purchased

28,80643,14288%

0%57,191

56,261

Energy sold (from cogenerator)

238,701

219,527

Raw materials

Total Paper

4,943,792

4,897,553

Water

Index energy consumption Paper(GJ/ton paper)

9.9

10.1

Natural Gas

554,385

513,860

Electric energy purchased

210,294

183,09477%

10%

24,47823,19332

47

789,125

720,100

2.2

2.3

5,732,917

5,617,653

4.7%

1.7%

EnergyCarbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy
Life Cycle Assessment
End-of-life of our products— Social— Annex— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

Self-Adhesives

Of which from renewablesources (%)
Electricity self-produced for
consumption (Hydroelectric andsolar)
Energy sold (from cogenerator)
Total Self-Adhesives
Index energy consumption SelfAdhesives (GJ/ton adhesivematerial)
Total Group energy
consumption
Of which from renewablesources (%)

Several energy efficiency initiatives, such as thereplacement of infrared ovens, water turbine
revamping, installation of a thermal energy recovery
system and other projects generated energy savings
quantified in 151,899 GJ, in line with the ENEA (Italian
National Agency for New Technologies, Energy andSustainable Economic Development) methodology
and in accordance with the Italian law decree 102/2014.

The graph below* shows the weight of these three
types of emissions on the total carbon footprintof the Group.

CO₂
Components
Scope 1
Scope 2

Scope 3

Definition
Direct emissions from the use offossil fuels (in our case, natural gas).
Indirect emissions from the useof purchased electricity
Other indirect emissions fromraw materials, fuels, products,
and transportation

80%

18%

20% of Paper Italian sites are ISO 50001 certified,the internationally recognized standard for energy
management. In 100% of Self-Adhesives sites
there are energy saving procedures, without
external certification.

2%*the 2021 figure has been restated following an improvementin the calculation methodology

Scope 1*based on 2019 data.

Scope 2

Scope 351

Annual Financial
Report— Environment— Our business

Carbon dioxide emissions (CO₂) are classified into
3 components (Scope 1, 2 and 3):

Sustainability Report— Governance

Of which from renewable sources(%)
Electricity self-produced for
consumption (hydroelectric andsolar)— The main initiatives implemented in 2022

The Group’s total energy consumption in 2022 was
5,732,917 GJ, up by 2.1% compared to the previous year.
Use of electricity from renewable sources rose to 4.7%of the overall consumption (1.7% in 2022), thanks to twolevels of action:• Electricity purchased through certificates oforigin (GO). In 2022, all European plants purchased
renewable electric energy.
• Electricity self-produced by hydroelectric plants
for internal consumption in Fabriano, Pioraco
Scurelle and Varone and self-produced by aphotovoltaic plant in Verona.

The Fedrigoni Group— Methodological note

Carbon dioxide emissions and energy
transition towards carbon neutrality

Index

Annual Report 2022

FEDRIGONI GROUP

The table below shows the incidence of the individual
categories of Scope 3 emissions:

SUSTAINABILITY REPORTCat 2: Capital goods

2%— Methodological noteCat 3: Fuel- and Energy-Related Activities

4%— Our purpose

Cat 4: Upstream transport

1%— Our products

Cat 5: Waste generated in operations

1%— Making Progress concept

Cat 6: Business travel0%— 2030 ESG Targets

Cat 7: Employee commuting0%— 2022 Scenario

Cat 8: Upstream leased assets0%

Cat 9: Downstream transport

1%

Cat 10: Processing of sold products

14%

Cat 11: Use of sold products0%

Cat 12: EoL of sold products

10%

Cat 13: Downstream leased assets0%

Cat 14: Franchises0%

Cat 15: Investments

0%— The main initiatives implemented in 2022
— Our business— Governance— Environment
Raw materials
Water
EnergyCarbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy
Life Cycle Assessment
End-of-life of our products— Social— Annex

ANNUAL FINANCIAL REPORT

Scope 3(approvedby SBTi):-30%
of emissions
from fueland energy
relatedactivities
by 2030
from a 2019base year

90%
of itssuppliers
by spend,
covering
purchased
goods andservices andcapital goods,
with sciencebased targets
by 2027

53

Annual Financial
Report— Auditor’s Report on the Sustainability Report

Scope 1+2
(approvedby SBTi):-30%
by 2030
from a 2019base year.

Sustainability Report

67%

The Fedrigoni GroupCat 1: Purchased goods and services

SDG where we wantto make the difference

TargetESG 2030

HIGHLIGHTS

Index

Annual Report 2022

IndexAnnual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Methodological note
— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— GovernanceThe below table shows the levers we are exploring toaccelerate energy transition. All levers need strong,
immediate collaboration with suppliers and regulators
to facilitate technical solutions and the necessaryfinancial support.

Exploring initiatives to achieve carbon neutrality
By 2030

Post 2030

Scope 1

• Energy efficiency pushed to its
maximum.
• Access the Italian National
Recovery and Resilience Planfor projects related to energy
transition.

• Alternative sources are graduallyreplacing natural gas in our
cogenerators.

• Electrification projects* poweredby electricity from renewablesources.

Scope 2

• From 2022 on, purchase of
100% electricity from renewablesources.

• Electricity from renewablesources at competitive economic
conditions.

-

Scope 3

• Workshops with suppliers to
discuss available raw materials• Raw materials and machinery withand machinery with a lower
low environmental impact.
environmental impact and equal or
better performance.

Water
Carbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy
Life Cycle Assessment
End-of-life of our products— Social— AnnexTargetESG 2030

EnergySustainability Report

Ongoing— Environment
Raw materials

The Fedrigoni GroupIn 2021, SBTi approved the target of reducing scope
1+2 carbon dioxide (CO₂) emissions by 30% by 2030
(from 330 kt to 240 kt). This objective is linked to the
incentives (MBO) of our managers. Moreover in early
2023, SBTi also approved the Scope 3 reduction
target. Furthermore, we are committed to achievingcarbon neutrality by 2050. This means that Fedrigoni
is aligned with the goal set in Paris in 2015 to limit theincrease in the earth’s temperature to well below 2°C.
The bar graph shows the emissions of 2019,the reference year, and the SBTi target for 2030,
highlighting the contributions of Scope 1 (S1 Paper)and Scope 2 (S2 Paper) of the Paper Division, andof Scope 1 (S1 SA) and Scope 2 (S2 SA) of the SelfAdhesives division:(Kton CO₂)

~330
16
6

26

~240

282

2019 Baseline

2030 Target

S1 Paper

S2 Paper

ANNUAL FINANCIAL REPORT

S2
Self-Adhesives

S1
Self-Adhesives-30% of absolute CO₂,
emissions, Scope 1 + 2,
from ~330 kt to ~240 kt(compared to base year 2019)*Electrification for the paper industry is beginning to offer technological options on the market, but the business case is for a very substantial investment(capex) and additional operating costs (opex) that cannot be tackled without real, timely support for the energy transition. The new technologicalopportunities for energy efficiency and carbon neutrality (green hydrogen and CO₂ capture) are currently difficult for the Italian paper industry to
pursue. However, we are actively monitoring and contributing to the debate on innovation in this area with internal working groups dedicated to keeping
technological, regulatory, and economic developments under review.

54

Annual Financial
Report— Auditor’s Report on the Sustainability ReportFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Water

CO2 emissions (t CO2e)
Paper
Scope 1
Scope 2 market based
Total Paper(scope 1 + scope 2 market based)
Emission ratio Paper(t of CO2 on t of production)
Self-Adhesives
Scope 1
Scope 2 market based
Total Self-Adhesives(scope 1 + scope 2 market based)
Emission ratio Self-Adhesives(t of CO2 on t of production)
Total emissions Group(scope 1 + scope 2
market based)

2022

2021

286,453426

280,300
4,450

286,880

284,750

0.57

0.59

31,1605,000

28,710
11,58036,16040,2900.10

0.13

323,040

325,040*Total Scope 2 location-based emissions in 2022: 20,052 t CO2
e (20,321 t CO2e in 2021)**Scope 1 emission were calculated using emission factors indicated in“Ministero dell’ambiente – tabella parametri standard nazionali 2022”.
Market-based Scope 2 emissions, measured in tons of CO₂eq, were
calculated using the Residual Mix emission factors indicated in “2022European Residual Mixes, V.1.0”, published by AIB. Location-based Scope
2 emissions were calculated using the emission factor indicated in“Confronti internazionali; 2019”, published by Terna.

EnergyCarbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy
Life Cycle Assessment
End-of-life of our products— Social— Annex

ANNUAL FINANCIAL REPORT
Let’s talkabout it in thisBit onSustainability

325,000

323,039

2021

2022

284,000
240,000 tons

2019

2020

-2.2% in CO₂ emissions while
increasing volumes production
by +15% (since 2019).

Scope 2 emissions
16,020
- 66%

5,427

2021

2022

-66% reduction of our Scope 2
emissions in 2022 thanks
to purchase of electricity
from renewable sources.

55

Annual Financial
Report— Auditor’s Report on the Sustainability Report

Absolute CO₂ Scope 1+2 emissions decreased by 2.2%
versus the 2019 baseline (-1.1% in the Paper Business
Unit and -10.1% in the Self-Adhesives Business Unit)
against an increase in volumes of approximately 14.9%
thanks to energy efficiency and purchase of electricity
from renewable sources. Moreover, our CO₂ intensity
decreased by 15.1% from 2019 at Group level (-3.5%in the Paper Business Unit and -36.9% in the SelfAdhesives Business Unit).
From 2021, we also added the metric “CO₂ emissions
intensity to turnover” (calculated as absolute CO₂
emissions/turnover). The rate shows a Groupwide
improvement of 25% compared to 2021 and 46.5%
compared to 2019.

330,000

Sustainability Report

Raw materials- 2.2%The Fedrigoni Group— Methodological note

Absorbing all the CO₂ we are globally releasing,
1.6 billion hectares of land would require to be
replanted, an amount equal to 5 times the sizeof India. Yet there is not enough land to do so; toachieve carbon neutrality by 2050, we must first
reduce CO₂ emissions and, ultimately, offset
incompressible ones (latest report by ScienceBased Target initiative).
Offsetting CO₂ emissions through reforestation
projects is not alone enough to achieve carbon
neutrality and cannot replace measures to reduce
emissions. Offsetting efforts should be planned
while also paying attention to their social purposes,
regeneration of natural assets, and proper
land use.

CO₂ emissions Scope 1 + 2

TargetESG 2030

HIGHLIGHTS

The table below shows the absolute and specific CO2
emissions at Group level and by Paper andSelf-Adhesives division.

Index

Annual Report 2022

2.
CO₂ offsetting,the pathways tocarbon neutrality

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario

Biodiversity and no deforestation

In addition to carbon dioxide (CO₂) emissions, wemonitor other atmospheric emissions, including
nitrogen oxides (NOx), particulate matter (PM) andvolatile organic compounds (VOCs). The quantity andquality of the NOx mixture varies depending on thesubstance being burned and the conditions underwhich combustion takes place. To limit and control
these emissions, it is important that combustion takes
place uniformly, avoiding temperature peaks. The tablebelow shows NOx emissions the paper division over
the two-year period.

SDG where we wantto make the difference— The main initiatives implemented in 2022

Emissions (tons)

2022

2021

— Our business

NOx *

90.2

99.4

— Governance

PM

2.6

4.2

— Environment

VOC

11.0

11.5

Water

*As a result of a process of improving the reporting system,the 2021 figures have been revised from those publishedin the previous Sustainability Report.

EnergyCarbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy
Life Cycle Assessment
End-of-life of our products— Social— Annex

ANNUAL FINANCIAL REPORTNo other significant types of polluting emissions into
the atmosphere are recorded.

100% of the Paper
production sites and 65%of the Self-Adhesives
sites are ISO 14001
certified, the standard
for environmental
management systems,
including atmosphericemissions.
In 2022, we set the new reduction target of 10% of NOxemissions by 2030. In 2022 there were zero cases of
non-compliance with current regulations on emissions
to the atmosphere.

56

Annual Financial
Report— Auditor’s Report on the Sustainability Report

The biodiversity impact assessment highlighted
four main activities likely to cause direct impacts on
biodiversity: land use of production facilities, water
withdrawal, water discharge, and operational activities.
Fedrigoni’s main indirect impacts are concentrated
in its pulp supply chain. For this reason, we purchase
only FSC® Chain of Custody (CoC) or Controlled Wood
(CW) certified pulp. In 2022, Fedrigoni sourced 96%
of its materials from FSC® CoC-certified pulp and 4%
from CW pulp.
That is why we also included a target of nodeforestation or conversion of natural ecosystems in
the part of our fibre supply chain that falls inside andoutside the EU. More details on the website.

Sustainability Report

Raw materials

As in our recent commitment “People & Nature:
Making business work for people and nature”, socialand environmental challenges require prompt
action to mitigate and adapt to climate change, halt
and reverse biodiversity loss, ensure safe, fair, andequitable working conditions for all. We are all in this
together, and Fedrigoni is committed to playing its partas outlined in its Sustainability Strategy 2030.
Together with a third party we did our first
Biodiversity Impact Assessment, whose first step was
to carry out a proximity analysis of our paper mills tocheck their location in relation to protected areas of
biodiversity interest. All of our paper mills are locatedwithin 5 km of an area of biodiversity interest.

The Fedrigoni Group— Methodological note

Other atmospheric emissions

Index

Annual Report 2022

FEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Water
EnergyCarbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy
Life Cycle Assessment
End-of-life of our products— Social— Annex

ANNUAL FINANCIAL REPORTIn true Cinderella style our siliconized wine label liner
has gone from being a waste product to becoming a
new resource. Re-Play is a dream come true. Glassine
paper is recovered and recycled in a closed-loop
recycling system and then used to produce new facematerials for luxury labels. This is a major innovation
for the wine industry. Every brand can now choose
to reuse its waste material in the new Re-Play lineof papers and make labels with a lower
environmental impact.
This innovative range of self-adhesive materials isthe first example of upcycling in the self-adhesiveindustry within a closed-loop recycling system.
Through a program for the recovery of siliconizedglassine paper discarded by printers or end producers(especially in the wine sector) and thanks to an
exclusive partnership with Les Papeteriesde Clairefontaine.

SDG where we wantto make the difference

100% waste
recovery andnot to landfill(compared
to baseyear 2019)For additional
information scan
the QR code

57

Annual Financial
Report— Auditor’s Report on the Sustainability Report

Fedrigoni and the circular economy

Sustainability Report

Raw materials

We apply the so-called “waste hierarchy”: first we
implement initiatives to prevent and reduce theproduction of waste, then we favour their recycling
and recovery. In fact, we set the target of zero waste
to disposal in landfills.
At the Paper Business Unit, the main waste is sludge
from process water, which is purified through primarychemical-physical plants and secondary biologicalplants before being returned to the environment. In
addition to this waste, there is also mixed packaging,wood, plastics, production waste containing silicones,
solutions/dispersions/emulsions of substances
derived from machine washing, waste oil, iron, andelectrical equipment. Among these, hazardous
waste represents a very small proportion of our total
production, around 6%.
At the Self-Adhesives Business Unit, waste is themost important environmental aspect. The main waste
is raw materials and semi-finished products (mixed
waste) and the washing-water used to clean coating
heads (both with water and solvents). All waste iscollected, separated and, increasingly, sent for energy
or material recovery.
Whenever a self-adhesive is used, the back of thelabel, the silicone paper called glassine, is usually
discarded. However, it is a high-quality support,
composed of very pure fibres with importantmechanical characteristics. A waste of resources andvalue that prompted Fedrigoni Self-Adhesives to study
solutions, which materialised with the range ofRe-play™ labels (launched during 2022). The siliconed
glassine is, in fact, recovered by the end users andcollected by Fedrigoni itself, thus involving the end
customer in a conscientious process: the material reenters the production phase as part of the adhesive
front, to create new high-quality labels.
A perfect example of upcycling, where material
can have a second life superior to the first one.
A real revolution.

The Fedrigoni Group— Methodological note

Waste and circular economy

TargetESG 2030

HIGHLIGHTS

Index

Annual Report 2022

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUP

The table below shows the production of waste for thetwo business divisions.
2022

2021

2020

Group total waste

68,65060,74955,991— Methodological note

Waste recovered

%

88.9

86.2

78.8

— Our purpose

Hazardous waste

%

6

5

5

— Our products

Paper division— Making Progress concept

Total waste

tons

33,09430,35427,241— 2030 ESG Targets

Total waste/production
kg / tons
ratio

66.2

62.7

65.8

Sludges

tons

17,231

16,327

15,699Sludges percentage

%

52.1

53.8

57.4

tons

35,55630,39528,750— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment

Self-Adhesives
division
Total waste

Total waste/production
kg / tons
ratio

97.1

98.8

104.4

Water

Mixed waste

tons

17,73315,155

14,307

EnergyMixed waste/
production ratio

kg / tons

48.4

49.3

51.9

Liquid washing waste

tons

2,955

2,699

2,474

Liquid washing waste/
production ratio

kg / tons

8.1

8.8

9.0

Carbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy
Life Cycle Assessment
End-of-life of our products

100% of the Paper
production sites
and 65% of the
Self-Adhesives
sites are ISO 14001
certified, the standard
for environmental
management systems,
including atmosphericemissions.

Sustainability Report

Raw materials

What is the difference between disposal andrecycling? Waste management is a cumbersome
activity, its ultimate purpose being to reduce theimpact of human activities on the planet while
limiting the exploitation of natural resources andenhancing the value of waste materials.
In the hierarchy of waste, each word hasa clear meaning and a different, noninterchangeable position that can be represented
as an upturned pyramid where disposal should
be a residual activity.
Fedrigoni turns waste into a new resource: by2030 the goal is to have 100% of waste materials
recovered, without landfilling them.

The Fedrigoni GroupSUSTAINABILITY REPORT

Waste (t)By 2022, we achieved 89% recovery of our waste(86% in 2021) thanks to the following initiatives:•p ackaging reduction;• r ecovery of washing water;•c ircularity of sludge from paper mills into
other industrial sectors (agriculture andbio-building materials);• r ecovery of solvents from washing water;•c ircularity initiatives to offer customers a collection
service for self-adhesive material waste withthird-party support (RePlay);• initial efforts to also find solutions for the matrix(semi finished waste), which is currently an unused
waste in the Self-Adhesives business unit.

Index

3.
The hierarchyof waste— Social— Annex

ANNUAL FINANCIAL REPORTIn 2022, no cases of violations of regulations related
to waste management were recorded in our
production plants.

Let’s talkabout it in thisBit onSustainability

58

Annual Financial
Report— Auditor’s Report on the Sustainability ReportHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Water
EnergyCarbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy

The paper supply chain in Italy is one of thebest examples of circular economy: in 2019,the recycling rate reached 81 % of the amountreleased for consumption, exceeding the 75%
target set for 2025, and in line with the 85% target
set for 2030.
For years at Fedrigoni the production of all
specialty paper families has been made in sucha way as to make them recyclable. Given that
cellulose fiber is the main element composing
each type of paper, recycling is the first and mostsustainable procedure to recover this fiber andproduce new paper, under an outstanding model ofcircular economy.
All Fedrigoni papers are also biodegradable andcompostable; except for the coated papers where
our R&D team is working on.
So what is the difference between recycling,
biodegradation and compostable? Let’s talk about
it in this Bit on Sustainability!

One of the cornerstones of the circular economy is
the recycling of materials to encourage a reductionin the consumption of raw materials.
Paper, unlike other materials such as aluminum,cannot be endlessly recycled. Indeed, repeatedpaper recycling processes alter the mechanicaland chemical properties of the fibers. Whilesome of these fibers are lost in the converting
process, a large proportion of such fibers can berecycled up to 7 times; progressively, however,the performance is reduced, fibers shorten, andeventually weaken. To ensure the highest possible
quality and keep its cycle renewable, recycled
paper needs virgin fibers, i.e., those obtained
directly from trees.
Fedrigoni uses only FSC-certified cellulose
from sustainably managed forests to obtain
this raw material.

Sustainability Report

Raw materials

The Life Cycle Assessment measures theenvironmental footprint associated with a productthroughout its life cycle. At European level,
the strategic importance of adopting the LCA
methodology is clearly expressed in the Green Paper
on Integrated Product Policy and is also suggested in
the European EMAS and Ecolabel Regulations.
Since 2021, we have been developing Impact, a twin
tool (Eco-design Tool) - third-party verified - to calculate(on demand) the energy, water and carbon footprintsof our product families. The tools are aligned withinternationally recognized best practices (ISO 14040
series standards) and with a cradle-to-gate approach(i.e. from the extraction of raw materials until theyleave our plants). Both tools also have the possibility toquantify the end-of-life impact of the finished product.

The Fedrigoni Group— Methodological note

Life Cycle Assessment

5.
How many times canpaper be recycled?
The role of virginfibers for paper
recyclability.

Index

Annual Report 2022

4.
Recycling,
biodegradationand compostability.
How to choose?

Life Cycle Assessment
End-of-life of our products— Social— Annex

ANNUAL FINANCIAL REPORT
Let’s talkabout it in these
Bits on Sustainability
4-560

Annual Financial
Report— Auditor’s Report on the Sustainability ReportHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Water
EnergyCarbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy
Life Cycle Assessment

Measuring the life-cycle environment footprintof a product is quite crucial for companies
committed to circular economy principles. Whenit comes to the carbon footprint of products withrecycled content two definitions usually spring to
mind: pre-consumer waste recycling (PRE-cw);
and post- consumer waste recycling (PCW).
The former are the discarded or unusedmaterial that never reaches the final consumer– for example, in our sector, scraps from paper
production. The latter, on the other hand, are thematerials discarded after use.
This distinction is relevant to the ultimate carbon
footprint of a product, resulting from the very
recycling process the waste undergoes to be used,which in the case of post-consumer waste is amandatory step.
Fedrigoni has always promoted an approach
favoring PRE-cw (as opposed to POST-cw)
recycling within its papers. Why? Not only toprotect papers’ technical performance, but also
because PRE-cw, being reused without undergoing
any treatment aimed at recycling, does not counttowards the carbon footprint of the product.

FSC® is likely to be one of the most widespreadlabels met in our industry when it comes tosustainability, being placed on all products
containing wood or cellulose from properly andresponsibly managed forests according to strict
environmental, social and economic standards.
The acronym stands for Forest StewardshipCouncil, an international nonprofit organization
founded in the 1990s by the efforts of several
environmental associations. The association has
grown a great deal over time and is now among
the most committed to the pursuit of Goal 15.2of the United Nations 2030 Agenda (progress
towards sustainable forest management, halt
deforestation, restore degraded forests andincrease reforestation and afforestation).
Fedrigoni is committed to using only 100%
FSC-labeled pulp.

Plastic packaging alone accounts for 26% of
the total volume of plastic produced and usedworldwide. Although it offers direct and indirect
economic benefits (particularly the level ofmerchandise storage and fuel consumption
for transport due to the reduced weight of the
packaging), its low level of recycling makes it athreat to the oceans and the Planet.
There is a need to develop sustainable
alternatives to disposable plastics.The transition
from plastic to paper provides a way to address
the problem.Why paper in particular? Paperbased products are mainly recyclable and havea lower environmental impact from an end-of-life
perspective.Fedrigoni strongly supports a key rolefor paper in reducing single-use plastic: we are
creating paper solutions to replace plastic ones
while striving to deliver a similar technological
performance.The luxury packaging sector, wheremore circular design must meet the delivery of a
sophisticated and exclusive top-quality aesthetic
and sensory experience, can lead the entire
industry in this green transition.
We work responsibly toward this goal, innovating
creatively from our expertise. We always use 100%
FSC-certified cellulose and keep making progressto prove that paper can evolve and replace plastic
for manifold needs, including packaging.

End-of-life of our products— Social— Annex

Sustainability Report

Raw materials

8.
Why the “plastic
to paper” transition
is a must-have

The Fedrigoni Group— Methodological note

7.
FSC, a landmark
paper brand

Index

Annual Report 2022

6.
Pre- and postconsumer waste:a different impact

ANNUAL FINANCIAL REPORT
Let’s talkabout it in these
Bits on Sustainability
6-7-8

61

Annual Financial
Report— Auditor’s Report on the Sustainability ReportFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Water
EnergyCarbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation
Waste and circular economy
Life Cycle Assessment

SDG where we wantto make the difference

100% of products
designed for optimal
end-of-life recycling
and recovery, with
LCA on demand(baseline 2022)
The previous Group target is built upon two
sub-targets, tailored to our businesses and basedon recognized external certifications:• Paper: 100% of recyclable products witha third-party recyclability certification• Self-Adhesive: 100% of our standard productportfolio available in a solution enabling recyclabilityor reuse of packaging (recyclable, compostable,
wash-off)*

Sustainability Report

Raw materials

At Fedrigoni we list the ESG features of our paper
products, such as using 100% of pulp fromFSC COC and CW certified forests, having a recycledcontent, containing by-products from other production
processes, alternative fiber content (cotton, linen),
Ecolabel certification and plastic-free packaging.
For our Self-Adhesives materials, the following
ESG features were identified: FSC® certified
products, recycled content, less thickness for equal
performance, bio-based films and plastic (certified),
PVC-free films, PFAS-free films and papers, the ability
to remove them from products during the washingprocess, recyclability, and biodegradability.
Being designed for optimal end-of-life recycling
and recovery (and LCA available on demand) is theseemingly simple but common feature of all products
and is key in facilitating the recovery and recycling offinished products.

The Fedrigoni Group— Methodological note

End-of-life of our products

TargetESG 2030

HIGHLIGHTS

Index

Annual Report 2022

* excluding pharma, graphics and technical materials

End-of-life of our products— Social— Annex

ANNUAL FINANCIAL REPORT

62

Annual Financial
Report— Auditor’s Report on the Sustainability ReportClimate change, biodiversity, exploitation inland use. These are three out of nine "planetary
boundaries" we have already breached. Suchlimits were identified in 2009 by the Stockholm
University's resilience and sustainability science
research center.
Planetary boundaries set out no-returnthresholds beyond which life on the planet may
become unsustainable, even impossible forhumans. The underlying research has involved
dozens of scientists since 2009 making the modela benchmark for sustainable development andenvironmental protection, proving how balanceon our planet is based on the mutually connectednature of many inputs.
With its People and Nature Commitment,
Fedrigoni aims at a tangible commitment
towards such issues.

FEDRIGONI GROUPSUSTAINABILITY REPORT— Methodological note
— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Raw materials
Water
EnergyCarbon dioxide emissions and energy
transition towards carbon neutrality
Other atmospheric emissions
Biodiversity and no deforestation

Sustainability Report

Nowadays, the quest for a good green reputation
drives companies to highlight their sustainability
features in communication and marketing,although in many cases this occurs in unclear
and not fully transparent fashion. Thus, specificclaims can be misleading, and it turns out difficult
to disentangle between greenwashing and reliablestatements. Came into being in 1983 by green
activist Jay Westerveld, the word "greenwashing"refers to the idea of "a brushstroke of green paintpassed over" that is, giving a green veneer toactions disguising not so truly righteous features.
So how can the veracity of some claims beverified? There are several signs that can bepicked up: in this Bit on Sustainability we havehighlighted seven of them.
Fedrigoni pays extreme attention totransparently disclosing its products and theiridentity, including their sustainability features.
We only state what can be proven and measured,
progress after progress.

HIGHLIGHTSThe Fedrigoni Group10.
The limits of theplanet: whichhave alreadybeen exceeded

Index

Annual Report 2022

9.
Greenwashing,
how to detect it

Waste and circular economy
Life Cycle Assessment
End-of-life of our products— Social— Annex

ANNUAL FINANCIAL REPORT
Let’s talkabout it in these
Bits on Sustainability
9 - 1063

Annual Financial
Report— Auditor’s Report on the Sustainability ReportSocialIndex

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORTThe Fedrigoni Group— Methodological note
— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment

Sustainability Report— Social
Human rights
SafetyPeople experience and life at Fedrigoni
People growth and distinctive skills
Inclusion, Diversity and Equity (IDE)
Performance Culture & Open Dialogue
Social dialogue and industrial relations
Fedrigoni and the community— Annex— Auditor’s Report on the Sustainability Report64

Annual Financial
Report

ANNUAL FINANCIAL REPORTHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Human rights
SafetyPeople experience and life at Fedrigoni

Great resignation and quiet quitting are two terms
often heard in connection with different work andemployment environments. Both are related to thepost-pandemic, but also to the cultural and social
evolution characterized by people greater pursuitof well-being and values even in their own
work-life balance.
For a company, taking care of its people, creatinga relaxed, engaging, stimulating work environment,
is today not only an ‘ethical’ issue, but the only
strategy for retaining talent. The first preconditionsof employee well-being are therefore alreadycreated in the environment where they work.
In this Bit on Sustainability, we discuss the 6
crucial factors for improving the well-being ofpeople in the company and the initiatives Fedrigoni
is putting in place to this end.

Sustainability Report— Social

At Fedrigoni, we discover extraordinary every day.
To support this ambition, our 2030 ESG goals (Plan)
include a series of areas of interventions which we areworking on with clear and concrete actions:• Human Rights protection and respect• People experience and life at Fedrigoni• People growth and distinctive competencies• Inclusion, diversity and equity• Performance culture and open dialogue• Safety culture• Social dialogue [industrial relations]• Fedrigoni for the community

The Fedrigoni Group— Methodological note

Behind us, more than 130 years of rich heritage andpassion for our Industry.
Alongside us, over 5000 leading experts, specialists
and dedicated people across the globe.We arepresent in 28 countries and operate a commercial
network in 132 countries.
Ahead of us, a strong ambition to amaze the world– by transforming our industry, achieving new levels
of innovation, elevating creativity and building asustainable future while growing rapidly. We want toreinvent the boundaries of what our Industry can doand become the global number one. It’s a thrillingly
big ask. Getting there will take all our passion,
entrepreneurial spirit and expertise.
We think big because we aim high. We work
collaboratively, because together we’re stronger.
We move and change fast, with agility, because wewant to go beyond.
The journey we are on throws up endless
opportunities to learn, develop, transform, reinventand do what has never been done before.

Index

Annual Report 2022

11.
Our commitment topromoting well-being
in the company

People growth and distinctive skills
Inclusion, Diversity and Equity (IDE)
Performance Culture & Open Dialogue
Social dialogue and industrial relations
Fedrigoni and the community— Annex— Auditor’s Report on the Sustainability Report

Let’s talkabout it in thisBit onSustainability

65

Annual Financial
Report

ANNUAL FINANCIAL REPORTFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Human rights
SafetyPeople experience and life at Fedrigoni
People growth and distinctive skills
Inclusion, Diversity and Equity (IDE)
Performance Culture & Open Dialogue
Social dialogue and industrial relations
Fedrigoni and the community— Annex— Auditor’s Report on the Sustainability Report

Our Sustainability Policy promotes leadership as a
powerful factor to rapidly share a safety culture andto support team members to work safely and returnhome healthy.

SDG where we wantto make the difference

From 2021, each Operational committee and allmonthly update meetings with top management startwith a safety review.
Our Sustainability Decalogue, developed in 2021,
helps us in maintaining the daily level of care andsafety and housekeeping at our sites according to ourquality standards.
Thanks to the Near Misses procedure, each
employee can report an unplanned event that has
the potential to cause, but does not actually result inhuman injury, environmental or equipment damage, oran interruption to normal operation.
The Safety Alerts procedure allows employees tomake suggestions to prevent accidents.
All events - accidents, safety reports and nearmisses - are analysed on a regular basis to:a) ascertain the primary cause of the incident (rootcause analysis)b) identify and implement subsequent actions toprevent those events from reoccurringc) p
 rovide evidence to our people that reports havebeen addressed by site management.

-85% drop
in total injury
frequency
rate from~21 to ~3(compared tobaseyear 2020)

In 2022 Fedrigoni conducted an initial risk mapping on
100% of its production sites. The analysis revealed no
human rights violations in the plants analysed. In someplants, which account for 21% of the total employeesof the Group, potential points of improvement
emerged to further protect certain issues. Many of theplants in this category are new acquisitions, whichstill have to be fully onboard with the Group’s policies
and approach.
In 2023 Fedrigoni will move to the next phase:
prevention and mitigation. These additional steps
will allow us to investigate the results of the firstphase and to identify any mitigation measuresthat are in place or to be implemented. In addition,
the due diligence project has been extended to the
supply chain.

100% of the Paper sites and 53% of the Self-Adhesives
sites are ISO 45001 certified, the internationallyrecognized standard for occupational health andsafety management systems. Since 2022, we havebeen publishing data related to the accident frequency
index of our contractors (external companies working
on our premises).In 2022, we recorded zero fatalities
at employees and contractors’ levels. Moreover,
4 of our sites recorded zero accidents in 2022:
Pioraco, Castelraimondo e Scurelle paper mills
in Italy and Acucote for Self-Adhesives in the US.

67

Annual Financial
Report

ANNUAL FINANCIAL REPORT

Fedrigoni is committed to respecting human rights
in line with the United Nations Guiding Principles
on Business and Human Rights, International Billof Human Rights, the principles of the International
Labour Organization’s Declaration on Fundamental
Principles and Rights at Work. In addition, from 2021
Fedrigoni has been part of the United Nations Global
Compact. In 2023 we made public our People andNature Commitment: “making business work forpeople and nature”.
In 2022, Fedrigoni carried out a human rights
assessment to verify the level of human rights
protection in the Group’s production plants. The due
diligence process is being implemented according tofollowing steps, defined by the UN Guiding Principles
on Human Rights (UNGP):• Risk Mapping,• Prevention and mitigation• Monitoring and communication

Sustainability Report— Social

SafetyThe Fedrigoni Group— Methodological note

Human rights

TargetESG 2030

HIGHLIGHTS

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products—

Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Human rights
SafetyPeople experience and life at Fedrigoni
People growth and distinctive skills
Inclusion, Diversity and Equity (IDE)
Performance Culture & Open Dialogue
Social dialogue and industrial relations

Employees safety
data
Hours of training
Hours of training/
number of workers
involved
Near misses
Of which resolved
Safety reports
Of which resolved
Total Recordable
Injury 1
Total Recordable
Injury frequency
rate3
Loss time injuries 2
Lost-time injury
frequency rate3
Severity rate4
Fatalities
employees

2019

2020

2021

2022

number--18,287

32,773

%

-

-

6.4

9.8

number%number
%

-

-

673
85%
3,103
86%

630
87%
5,569
87%

number

137

105

74

83

Ratio

26.7

21.1

14.3

13.3

number

113

87

60

61

Ratio

22.0

17.4

11.6

9.8

Ratio

0.6

0.6

0.5

0.2

number0

0

0

0

1 Any work-related injury or non work-related that occur in the company premises;
2 Any work-related injury or non work-related that occur in the company premises that results in the employee not being able to return
to work the next scheduled work day;3 Frequency rate calculated as the number of injuries divided by the hours worked and multiplied by one million. The hours worked in 2019, 2020,2021
and 2002 were respectively: 5.139.262, 4.985.912, 5.187.240 and 6.232.694;
4 Severity rate calculated as the number of days lost divided by the hours worked and multiplied by one thousand.

Contractors safety data
Total Recordable Injury
Loss time injuries
Total Recordable Injury frequency
rate5
Lost-time injury frequency rate5
Fatalities contractors

numbernumber

2022
24
14

Ratio

26.6

Ratio
Number

16.6
0

5 Frequency rate calculated as the number of injuries divided by the hours
worked and multiplied by one million. The hours by external workers
in 2022 were 901,715.

At Group level, we decreased our frequency rate by
37% from 2020 (baseline of our 2030 target). Notably,serious injuries also decreased by 30% (from 105
injuries in 2020 to 83 in 2022).
In the Paper units the number of injuries decreasedby 31%, from 29 to 20 thanks to a significant decrease
occurred in those plants where in the previous years
higher numbers of injuries were recorded. Making
progress in the right direction.
Instead, the Self-Adhesives units worsened by 40%
from 45 in 2021 to 63 in 2022, in part, in relation to theenlargement of the scope due to new acquisitions.

Sustainability Report— Social

The table below shows trends of our data and indicators
over the last four years.

The Fedrigoni Group— Methodological note

Index

Annual Report 2022

Fedrigoni and the community— Auditor’s Report on the Sustainability Report

Total recordable injury frequency rate
26.7
21.1

- 37%
14,3

13,3

3
2019

2020

2021

2022

87% of near misses
successfully
resolved in 2022.

68

Annual Financial
Report

ANNUAL FINANCIAL REPORT

TargetESG 2030— AnnexHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Human rights
SafetyPeople experience and life at Fedrigoni
People growth and distinctive skills
Inclusion, Diversity and Equity (IDE)
Performance Culture & Open Dialogue
Social dialogue and industrial relations
Fedrigoni and the community— Annex— Auditor’s Report on the Sustainability Report

Furthermore, we benefit from a wide range of online
tools that support and enable us to work together
across countries and functions. These include ouremail for all, encompassing plant and production
colleagues, our internal communication and social
collaboration platform Workplace, and our employee
management system. Our learning platform Workday
has been implemented in all countries over the lastyears. This is continuously evolving by expanding its
perimeter, improving communication and adoption,and launching new modules and features tailored toour people’s needs.

People Engagement (measured through Fedrigoni Survey)
Year

Participation Rate

Engagement Score*eNPS (employee
internal NPS)*

Distribution comparedto True Benchmark

2022

73%

7,7 / 1032

Middle Range

2021

68%

7,7 /1030

Middle Range

2020

62%

8,2 / 1050

Top 25%* The measurement of engagement follows the methodology of the specialized partner Peakon, with an engagement score (average of the answers to
the questions of engagement from 0 to 10) and internal NPS or employee NPS, a measure which follows the standard calculation of the NPS (difference
between % promoters and % detractors, expressed on a scale from -100 to +100).

69

Annual Financial
Report

ANNUAL FINANCIAL REPORT

Results are analysed and reported by a complete setof personnel demographics i.e. gender, age, tenure,level, country, location. Starting from 2022, as part of
our Inclusion, Diversity and Equity commitment, wehave integrated a section focused on inclusiveness,diversity and non discrimination drivers in the
Fedrigoni People Engagement Survey. This will help us
to fine tune our IDE roadmap and develop a dedicatedaction plan, also taking into account the experiencesof People minorities within the Fedrigoni Group.
Moreover, the survey includes a self-identification
section allowing Fedrigoni employees to voluntarily
and anonymously identify with categories related toethnicity, religion, gender, sexual orientation, caring
responsibilities as well as disabilities.
To continue to promote and foster a positiveand collaborative work environment at Fedrigoni,
the Group has been relying on both in-person andremote working. Live events have included Fedrigoni
Momentum, two global offsites for the 250-300 top
managers of the organisation aimed at discussing andreflecting together on the Group strategy, and OpenDays to welcome our friends and relatives (families
and friends) at our plants, with a focus on educationand sustainability.

Sustainability Report— Social

At Fedrigoni, we believe together is the only way
to go further and beyond. That is why we focus onbuilding purposeful relationships grounded in respect,
cooperation and a shared vision. Everyone here is
united by their passion for what they do and supported
and empowered to reach their goals. Everyone
has an essential role to play to help us reach ourambitions. We are all team members and colleagues.
Contributors and collaborators. Our voices are heard.
Our opinions count. This is what helps to create
an amazing team spirit. We strive together, solve
together, innovate together, deliver together.
Thanks to our Fedrigoni Survey, a Global initiative
started in 2020 and carried out on a yearly basis, weare able to track and measure our people’s employee
experience and engagement and identify our key
strengths and areas of improvement. In 2020, almost
3,000 people filled out the survey and based on
their answers, we identified relevant actions to betaken at Group and local level. We strive to achieve
an employee NPS (eNPS) ranking in the top 5% ofother manufacturing companies and in the top 10%of sectors: this year our eNPS was 32, mid-range ofthe benchmark. Such a performance is in line withcompany engagement trends. Despite a decline
across all sectors in 2021, we recovered with both anincrease in participation and engagement in 2022.

The Fedrigoni Group— Methodological note

People experience and life
at Fedrigoni

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Human rights
SafetyPeople experience and life at Fedrigoni
People growth and distinctive skills
Inclusion, Diversity and Equity (IDE)
Performance Culture & Open Dialogue
Social dialogue and industrial relations
Fedrigoni and the community— Annex— Auditor’s Report on the Sustainability Report

By launching Fedrigoni UP - our online learning
platform - we were able to reach all of our employeeswith the importance of compliance and ourcompany’s Code of Ethics. This offered the tools
and opportunities to all Fedrigoni people to takeresponsible actions towards themselves, theircolleagues and the Group, with full respect towards
our people and human rights guidelines. The Code of
Ethics course and test was successfully completed by
1.671 employees worldwide, corresponding to 41% of
the overall company population (87% excluding plantand production workers).
With the goal of leveraging on the exchange ofknowledge and experiences between people, wecreated a diverse set of workshops and in-person
training programs. Some examples of initiatives
include: inclusive leadership and management
workshops and courses (including plant andoperations managers); Customer Academy for all oursales workforce around the world; Fedrigoni Next, a
9-month, high-level, business project and development
experience offering young skilled professionals fromall over the world and functions, the opportunity toboost their learning, growth and development within
the Group.
At Fedrigoni, every day is an opportunity for growth,
no matter the role or function. This is what inspires us
day by day to work in a challenging, demanding andmeaningful environment. We make it happen throughtailor-made development plans for all our employees,
regular manager check-ins as well as an exclusive
development focus on the employee’s future
career path.

With the aim of creating and fostering the best
possible conditions for learning, growth anddevelopment at work, Fedrigoni has launched a rangeof different initiatives with the goal of helping all our
people grow, develop and reach their full potential namely, Coaching with third-party certified leadershipand management professionals, with applicablelearning needs.
Moreover, in 2022, Fedrigoni launched an internalpilot Mentorship Program aiming to leverage theexperience of senior colleagues by sharing theirknowledge, skills and expertise with other employees- guiding them through their personal challenges anddevelopment. The pilot project is yielding positive
results, for both mentors and mentees, and therefore
will be scaled up in 2023.

70

Annual Financial
Report

ANNUAL FINANCIAL REPORT

Working at Fedrigoni, every day is different. We’realways looking forward to the next challenge, the next
trend, the next area of expansion. And as the company
grows, we do too. Around every corner, there are newmarkets to explore, new projects to get involved in,and new opportunities to do what’s never been
done before. Working at Fedrigoni is a non-stop
learning experience.
In 2022, we trained over 2.000 colleagues, for a totalof almost 30.000 hours delivered (on non-mandatory
learning and development) - resulting in almost fourtimes larger than last year’s numbers. Fedrigoni’s
investment in learning and development is continuous,and strives to make it more accessible to our People
as well as fully embedded in our culture - across alllevels, functions and locations.
The Group invested 1.47 million euros on nonmandatory learning and development experiencesin 2022, ca. 240k more than last year.
Training and development experiences were offeredto employees through online, in person and on thejob formats. When it comes to online learning, welaunched a global e-learning platform, Fedrigoni
UP, made accessible to all employees. Fedrigoni UP
provides our employees with a space to learn, improveand develop on a variety of topics: productivity,
collaboration tools, language learning (individual
tutoring, group classes and online academies),
company processes, soft and hard skills development,sustainability, inclusion and non-discrimination topics,
health and safety, cybersecurity as well as functional
upskilling and teamwork development. About 6,300
online courses were completed by 1,730 employees
on Fedrigoni UP.

Sustainability Report— Social

People growth and distinctive skills

The Fedrigoni Group— Methodological note

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUP

Inclusion, Diversity and Equity (IDE)
SDG where we wantto make the difference

SUSTAINABILITY REPORT— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Human rights
SafetyPeople experience and life at Fedrigoni
People growth and distinctive skills
Inclusion, Diversity and Equity (IDE)
Performance Culture & Open Dialogue
Social dialogue and industrial relations
Fedrigoni and the community— Annex— Auditor’s Report on the Sustainability Report71

Annual Financial
Report

ANNUAL FINANCIAL REPORT

Sustainability Report— Social

The diversity of shapes, colours and textures iswhat makes our product range so unique. We
believe similarly that it is the diversity of our people’s
cultures, backgrounds and identities that makes us so
successful. Here at Fedrigoni, we are on a journey toelevate inclusion, celebrate diversity and drive equity
in our working environment, with our customers, ourpartners, our community and with our people. We
believe Inclusion is what makes us learn from one
another. Diversity is what brings better answers.
Equity is how we make sure all our voices are heard.
We are committed to ensure that every person feels
connected, that their uniqueness is valued andcelebrated and that everyone feels that they belong.
This will help us make better decisions together
and make our working environment more creative,
engaging, exciting and irresistible for everyone.
This is why, in 2022, the Fedrigoni Group decided toembark on a journey to boost the ways we facilitate
and implement Inclusion, Diversity and Equity within
our company. Through a first series of initiatives andprograms we will kickstart our IDE journey for our
employees for the years to come.
When looking for and welcoming new colleagues,
we are aware that great ideas can come from anyone

and anywhere: that’s why we are committed torecruit people from different cultures, backgrounds,
personalities, experiences and abilities and embrace
the diversity of our perspectives, skills and expertise.
This results in a range of specific and tangible actions.
We always ask external recruiters to commit to an
equal number of female and male candidates foreach position. We use gender neutral wording in our
Job posts to foster a wider pool of applicants. Our
recruitment process and the relevant procedures foreach job post are clearly and seamlessly disclosed.
We have diversity-focused managerial dashboards
to raise awareness and improve decision-making. We
look at people’s behaviours and attitudes more thandegrees and qualifications.
This also includes new colleagues joining the Groupthrough previous mergers and acquisitions. Our
aim and priority is to grow as a global company byunderstanding, respecting and valuing the culture of
the new companies joining us. We want to support allof our new colleagues to succeed and feel they belong
in Fedrigoni. Our key drivers include: onboarding to
all Group platforms, professional training, events,
company policies, processes and procedures as wellas internal working methods. Local needs and otherrelevant differences must be taken into account at theearly stages along with creation of a cross-functionalteam (made up of Group and local members) to
support integration of people. This is a key priority insuccessful and progressive global growth.

The Fedrigoni Group— Methodological note
— Our purpose

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Human rights
SafetyPeople experience and life at Fedrigoni
People growth and distinctive skills
Inclusion, Diversity and Equity (IDE)
Performance Culture & Open Dialogue
Social dialogue and industrial relations
Fedrigoni and the community— Annex— Auditor’s Report on the Sustainability Report

The implementation of the ongoing monitoring of ourGender Diversity ESG target, to reach 35% of womenin management positions (leadership roles and people
managers) by 2030, is one of the many examples.
Today, we stand at 25.5%. We are on a journey tofurther improve this number via two main activities:
talent attraction and recruitment (employer branding,
career site, university partnerships, 50/50 candidates,
headhunters and IDE recruiters partnerships) as well
as talent scouting and inclusive leadership (talent
scouting within our functions and regions, ad-hoc
initiatives for talent acceleration and inclusive culture).
Women in managerial positions*
Year

Women

Total
employees in% Womenmanagerial
positions

2022

119

467

25,48%

2021

106

423

25,06%

2020

81

363

22,31%*Managerial position is defined as leadership position (ExCo andLeadership Team) and employees who manage teams and people.
The percentage of women reflects the composition of the Fedrigoni
Group at the end of the year.

72

Annual Financial
Report

ANNUAL FINANCIAL REPORTIn 2022, the Group kickstarted the Inclusion,
Diversity and Equity focused roadmap with two
key moments. The first one was the participationof Fedrigoni’s management team in an Inclusive
Leadership Program. This will continue throughout
2023 with a higher focus on developing and fostering
psychological safety in the workplace and include a
top down approach, promoting inclusive behaviourrole models throughout the whole organisation.
The second was the creation of an IDE manifesto
for Fedrigoni Group based on tailored, bottom
up approaches. The development process was
implemented in the last quarter of 2022 by including
an IDE section in Fedrigoni’s People Survey. This
enables us to gather insights from our own people on
diversity, inclusion and employees’ sense of belonging,
non-discrimination, fair opportunities as well as
responsiveness of the Group with further discussion
in dedicated focus groups and workshops. Our 2023
IDE roadmap will focus on raising awareness on theimportance of this topic, creating a unified common
language and promoting positive behaviours at alllevels. Communication and training campaigns will
run alongside ongoing KPI monitoring in key company
processes, performance, and talent management, as
well as recruiting, promotions and compensation.

Sustainability Report— Social

Over the last 2 years, Fedrigoni has committed toincrease internal equity and transparency throughGlobal Group-wide policies and procedures - across allroles, companies, countries and levels. The topics are
related to work life and services, from travel, expenses
and company cars to remote working and flexible
hours; from antitrust, anti-corruption and business risk
to whistleblowing, with a new and improved reporting
pipeline launched in 2022. During the same year, we
also reviewed and improved our Inclusion, Diversity
and Equity policy. The latter has been enhancedwith a policy on best practices for respect in theworkplace, with guidelines on positive and acceptablebehaviour for a safe, supportive and discriminationand harassment-free professional work environment.
Everyone can feel relevant, respected and protected,
confident that the Group will handle all reports
appropriately. The reporting procedure and thehandling of reports are clearly outlined in the policy.
In 2022, there were no cases of discrimination andharassment. These policies are communicatedand stored in our internal communication platform
Workplace, easily accessible to all. Training on these
topics took place online and in person, with a focus
on our Code of Ethics, policies, whistleblowing andreporting procedure (1,671 employees trained), as
well as a pilot training campaign specifically covering
bias awareness and reduction as well as diversity
topics (37 people trained), which will be expanded
in 2023.

The Fedrigoni Group— Methodological note

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Human rights
SafetyPeople experience and life at Fedrigoni
People growth and distinctive skills
Inclusion, Diversity and Equity (IDE)
Performance Culture & Open Dialogue
Social dialogue and industrial relations
Fedrigoni and the community— Annex• We are our biggest fans. This is why we offer a
discount to our employees on all Fabriano products
in stores around the world and online.
• Our Flexible Benefits System ensures that the drive,
passion and dedication of our people is recognised
and rewarded and that each person is empowered
to be at their best. That is why we choose to view
our compensation and benefits holistically. Thesebenefits reflect our culture, values and the way wework with each other. No matter the role, seniority
or location of our people, we strive to provide global
benefits that are adaptable to the local area ourpeople live and work in. This Benefits system allows
the purchasing power of employees who participate
to increase, either transforming a portion, or up to
the entire amount, of the participation bonus (PDR
in Italy) or converting a portion of the salary (Spain)
into welfare credit for the purchase of services tosupport health, school and training, cultural andsports activities, travel, mobility and supplementary
pension plans for themselves and their families.

By strengthening the process already started in
the past few years, the company has enlarged thepossibility to convert part of the salary (Spain) or partof the profit share (PDR in Italy) into welfare to increase
the spending power of the employees, within personaland family services, ludic-recreational fields, public
transport season tickets, sustainable mobility, training
and development.

Sustainability Report— Social

Fedrigoni aims to keep close monitoring of the gender
pay mix, further strengthened with the mapping andclassification of the organizationals roles project
started in 2022. This will be implemented in 2023 withthe aim of increasing the number of equivalent roles in
the organisation held by men and women.
Fedrigoni takes care of its employees by offering a
structured corporate welfare system that meets theneeds and demands of employees and their families,
aiming to improve their quality of life. The services
offered are:• Taking care of our employees’ health and safety is
our priority. This is why, within the Health & Pensionarea, all employees have access to insurance
coverage and pension schemes, according to local
regulations and standards. In addition, an anti-flu
vaccination campaign is available in some of ouroperating countries.
•F lexibility is in our DNA. When it comes to working
hours, employees have access to an “Agile Working”
policy and flexible hours / part time work are an
option whenever possible.
• To facilitate the mobility of our employees, Fedrigoni
offers company commuter buses where public
transport services are poor.
• All our employees have access to meal vouchers orcanteen areas within the working place.

The Fedrigoni Group— Methodological note

Index

Annual Report 2022

— Auditor’s Report on the Sustainability Report73

Annual Financial
Report

ANNUAL FINANCIAL REPORTHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Human rights
SafetyPeople experience and life at Fedrigoni
People growth and distinctive skills
Inclusion, Diversity and Equity (IDE)
Performance Culture & Open Dialogue
Social dialogue and industrial relations
Fedrigoni and the community— Annex— Auditor’s Report on the Sustainability Report

Fedrigoni currently has an annual incentive system(MBO) for Key positions (11,9% of the full population;
28,3% of white collars) based on Group and individual
financial indicators, qualitative indicators and Groupand functional ESG objectives, the weight of which
was increased in 2022 up to 25%. For the entire
segment of the population not covered by MBO,
performance incentives are covered by profit shares
related to economic performance and other indicators
differentiated accordingly by country. Among these,
the PDR in Italy, and various profit shares such as in
Mexico, Brazil, the UK and France.
MBO Objectives 2022
CEO

ExCO e Leadership Team

Other managerial roles (Sales
excluded)

Sales

Objective

WeightObjective

WeightObjective

WeightObjective

WeightGroup EBITDA

60%Group / Business
Unit EBITDA

55%

Group / Business
Unit EBITDA

50%Group / Business
Unit EBITDA

30%Group Cash Flow

15%

Group Cash Flow

20%

Group Cash Flow

20%

Group Cash Flow

15%

Objectives ESG*

25%

Objectives ESG*

25%

Objectives ESG*

20%

Individual
Objectives

40%

Individual
Objectives

10%

Objectives ESG*

15%

Sustainability Report— Social

Everyone at Fedrigoni is ambitious and committed,
all supporting each other and the company’s
achievements. We have planet-sized ambitions – andwe all play a part in achieving them. As a business, we
aim to redefine what’s possible with our industry anddrive our status as the global leader. As individuals,
we’re empowered to make that happen. Taking
responsibility. Taking ownership. Taking risks. Yes,
the journey can be challenging, yet we are supported
and empowered to perform. We are trusted to beaccountable and responsible for our decisions. It’s
about striking the right amount of bold and humble.
Always learning from our mistakes with courageand fearless determination to bravely explore theopportunities around us. Everyone gets to pushtheir potential to the full. Everyone of us is trained,supported and encouraged to be extraordinary.
Together, we ensure Fedrigoni is a place where
people with the best ideas can do the best workof their careers.
How? We foster a culture that recognises andrewards performance and is fueled by open dialogue.
This is possible thanks to our Fedrigoni Behaviours.
Our Behaviours are more than just words on a page.
They are our north star. They guide and inform eachdecision we make. They remind us each day on how
Fedrigoni does business, how leaders lead, and how
we keep our people, partners and our customers at
the centre of our decisions.

The Fedrigoni Group— Methodological note

Performance Culture& Open Dialogue

Index

Annual Report 2022

*ESG 2022 targets: people-related aspects (diversity and inclusion, health and safety, compliance with Fedrigoni Behaviours), CO2 emissions, waste management, sale of productswith advanced ESG characteristics, suppliers also qualified according to ESG criteria. Beyond the annual MBO target, most of these objectives have a medium-long term time
perspective, tending to coincide with the 2030 horizon. This year, the weight of ESG objectives has been increased, with a greater focus on the people dimension (diversity, equity,
inclusion, development and employee engagement, as measured by periodic internal listening surveys).

74

Annual Financial
Report

ANNUAL FINANCIAL REPORTHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Human rights
SafetyPeople experience and life at Fedrigoni
People growth and distinctive skills
Inclusion, Diversity and Equity (IDE)Social dialogue and industrial relations

People involved in performance conversation
Total
Year
N
population

Fedrigoni and the community

2022

1.328

4115

32%

— Annex

2021

643

3893

17%

— Auditor’s Report on the Sustainability Report

2020

337

3800

9%

Performance Culture & Open Dialogue

In addition, this year Fedrigoni asked its leadershipand managers to carry out internal reviews to identify
how to best support the growth and development of
talents throughout the company, staying in line with
their ambitions as well as with the company needs andpriorities. This initiative, paired with Fedrigoni Internal
Job Posting Platform INK, led to 124 in-house job
relocations and coverage of open positions (includinginternational levels). This resulted in 81 more than theprevious year, demonstrating a clear positive outcomeof Fedrigoni’s commitment to People Growth.
Fedrigoni Group performance culture is also basedon a pay mix structure, whereby greater exposure
to variable pay is granted to higher levels of theworkforce and to roles with a strong impact on
business performance.

Pay Mix by level*50%

32.21%

25.79%

13.43%
86,57%

74.21%
67.79%

50%

CEO

Fixed salary

ExCoLeadership
Team

Other
managerial
roles

Sustainability Report— Social

Everyone at Fedrigoni has access to our Performance
Management System - a development tool basedon regular, open, quality conversations withmanagers - ranging from 1 to 4 times per year. These
conversations allow managers to provide feedbackon performance as well as enabling employees toshare their career and professional aspirations andinterests. This system serves to develop and monitor
our employees’ personalised development plans andtrack them transparently through our HR Management
System Workday. This initiative was first launchedin 2021 and increasingly adopted in 2022, with 32%of the overall people and 84% of the in-scope
people (white collars of integrated companies) who
have completed at least one conversation during
the year. Survey data shows that performance
conversations had a significant positive impact on
people’s engagement and satisfaction, in particularwithin the areas of openness, mutual respect and carein the workplace. In 2023, the successful deploymentof performance conversations will also be part of theindividual MBO objectives for people managers.

The Fedrigoni Group— Methodological note

Index

Annual Report 2022

Variablesalary (STI)*The ‘Pay Mix’ is the percentage of fixed and variable short-term incentive
remuneration paid at the target level. It is essential to monitor these datain order to ensure an appropriate and balanced relationship between
fixed and variable remuneration components at the different
levels of the organisation.

%

75

Annual Financial
Report

ANNUAL FINANCIAL REPORTHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT

Social dialogue
and industrial relations
The Industrial Relations policy adopted by the Groupis based on respect, constructive dialogue andreciprocal fairness, in full compliance with art. 13 of the
Fedrigoni Group Code of Ethics governing relations
with parties, trade unions and associations:— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Human rights
SafetyPeople experience and life at Fedrigoni
People growth and distinctive skills
Inclusion, Diversity and Equity (IDE)
Performance Culture & Open Dialogue
Social dialogue and industrial relations
Fedrigoni and the community— Annex— Auditor’s Report on the Sustainability Report

INDUSTRIAL RELATIONS(% on total active employees)
Employees undercollective agreements
Employees who have electedunion representatives

Unit

2022

2021

%

83%

83%

%

78%

78%

76

Annual Financial
Report

ANNUAL FINANCIAL REPORT

Relations and negotiations with trade unions arealways managed in compliance with the law, national
and/or company collective agreements, customs andpractices in force in each country. Furthermore, in
the Fedrigoni Group there is an extensive 2nd levelagreement, which regulates, in a more favourable
condition compared to the labour law, various aspectsof working conditions, including the payment ofovertime and compensatory time off for overtime
work on the day of rest.
In addition, the company carefully guarantees thepossibility of taking the annual leave necessary forthe psycho-physical recovery of its employees andrespects the weekly day off.
The local agreement (or the second level agreement)is supported by the role played by the central function,
which coordinates activities and ensures that theabove principles are uniformly observed throughout
the Group.

Over the years, constructive dialogue and relations
based on the principles of fairness and mutualtransparency have been established with all tradeunions in the Group.
This has been confirmed, for example, by the signingin Italy of the National Protocol of Industrial Relations,a trade union agreement that gathers and specifies
shared rules for taking dialogue with trade union
organisations to an even higher and morestructured level.
During 2022, thanks to the careful management ofrelations with trade union representatives, no hours of
strike were recorded.
In the course of 2023, the establishment of aEuropean Work Council is planned, with the aim ofincreasingly ensuring that all employees are consulted
and informed.
At Group level, the main KPIs for Industrial Relations
are as follows:

Sustainability Report— Social

The Group abstains from any direct or indirectpressure to political or trade union exponents
and does not contribute directly or indirectly andin any form, to political and trade union parties,
movements, committees and organisations, totheir exponents and candidates, except those due
under specific regulations. Relations with parties,
movements, committees and political and trade union
organisations are strictly and exclusively entertainedby the corporate functions delegated for this purpose
in compliance with the corporate organisation.

In compliance with the principle of fair and responsive
dialogue with employees, in any events of company
reorganisation and restructuring, employees andtheir representatives are informed in advance, withtimescales ranging from country to country in fullcompliance with local legislation, collective and tradeunion agreements in force.
During 2022, the Company had to deal with theeffects of the difficult macroeconomic environment
resulting from the war in Ukraine, which made theoutlook for the rest of 2022 and for 2023 more
uncertain. To deal with the situation, the Company
focused on the operational agility considering thevolumes produced: in first three quarters of 2022,
also considering the risks related to the energy crisis,
Fedrigoni quickly implemented close-cycle shifts toaccelerate the production of volumes; in the fourth
quarter of the year, in Italy and Spain, the Company
activated welfare support provisions to interrupt
production and manage the inventory. In these cases,
the situation was also managed through trade union
agreements in which the company granted employees
better conditions than those provided by law, forexample the National Protocol for the Management ofwages guarantee fund.
In 2022 Fedrigoni also signed The National
Agreement for Solidarity Holidays in Italy to promoteand support solidarity among employees, especially incases of colleagues in distress due to illnesses related
to children and/or spouse, and the National Agreement
on Agile Work, which allows a better work-life balance.
Another initiative finalised in 2022 is the Global Policy‘Good Practices of Respect in the Workplace’, which
incorporates the fundamental principles of our Codeof Ethics.

The Fedrigoni Group— Methodological note

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Human rights
SafetyPeople experience and life at Fedrigoni
People growth and distinctive skills
Inclusion, Diversity and Equity (IDE)
Performance Culture & Open Dialogue
Social dialogue and industrial relations
Fedrigoni and the community— Annex— Auditor’s Report on the Sustainability Report

Fedrigoni is a partner of Inspiring Girls International,
an organisation dedicated to raising the aspirations ofgirls around the world by connecting them with femalerole models from all walks of life. They introduce
girls (10-15 years old) to the full variety of careersand options in life, inspiring them to aim high. Until
mid-February 2023, already 18 Fedrigoni female rolemodels played in 3 Countries.

Held every year in September - our event to celebrate
the art of drawing around Italy. It all starts with thefestival-event in Milan: from the Indro Montanelli
gardens to the Castello Sforzesco. After Milan, theFestival moves along the entire peninsula, feedingon the local creativity of individual genius loci.
Associations, institutions, schools, museums, libraries
from all over Italy organize creative workshops. Some
numbers about the 2022 edition(fabriano.com/festival-del-disegno/):• Weekend in Milan with + 15000 people, + 1130
participants to the workshops, and + 200
participants to the final live performance• Around Italy with + 300 Events, + 90 Italian cities
involved, and + 100 small local businesses, artists,
cultural associations, museums, academies,
art institutes and schools.

Fedrigoni for people.
Dream to the great with Inspiring GirlsThe partnership with NGO Inspiring Girls International
started in 2021. A project created to help raiseawareness of their talent in female adolescents,
freeing them from the gender stereotypes that often
curb ambition. How? Making them dialogue withfemale role models and joining creative workshops.
Indeed, knowing successful female role models
is important for rethinking personal aspirations,regaining self-confidence and the possibilityof building their own future. After the first pilot
experience in 2021 in two classes of second and third
grade of a school in Milan, this year we reached a totalof 110 young girls and boys in Italy and Brasil, morethan double compared to the previous year. One of
the 2022 events took place outside the classroom:at the Castello Sforzesco in Milan as part of theFestival del Disegno by Fabriano. The role model was
the youtuber and illustrator Fraffrog who guided the
young participants in a creative workshop to imagine
and draw a narrative of their life highlighting their own
qualities and differences as strengths.
Now we are working to expand our reach evenmore in 2023, by tailoring workshops for students ofelementary, middle and high schools in Spain, France,
Brazil, Chile, and Italy.
Inspiring young people and elevating their creativity,
especially girls, is a purpose that Fedrigoni iscommitted to keep pursuing in every country where
the company exists, through activities held in schools
or at special events.

77

Annual Financial
Report

ANNUAL FINANCIAL REPORT

Festival del Disegno (Drawing Festival)

Sustainability Report— Social

Inspiring Girls International

The Fedrigoni Group— Methodological note

Fedrigoni and the community

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Our purpose— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment
Human rights
SafetyPeople experience and life at Fedrigoni
People growth and distinctive skills
Inclusion, Diversity and Equity (IDE)

The Foundation, dedicated to Gianfranco Fedrigoni,
was founded in Fabriano on 8th of March 2011. Unique
heritage in the world for the quantity of assets
preserved - with over 500 square metres of archival
assets and books belonging to the Archive of the
Miliani Fabriano paper mills - it is the first Company
archive in Italy declared historically interesting with
documents dating from 1782. The historical heritage
also includes 2,212 Fabriano antique papers, acollection of papers dated from 1267 to 1798 by thefiligranologist Augusto Zonghi (1840-1916), one of themost important in Europe acquired by the Foundationin 2016; and 10,000 tools to produce the hand-madeand machine-made paper, commissioned by historical
Made in Italy companies (e.g. FIAT, Liquore Strega,
Fernet Branca, Stabilimento Ricordi). The annual
Fedrigoni donation varies according to the activities
included in the Foundation’s program (in 2022, it
amounted to around 250,000 euros). Details on 2022
initiatives of Fondazione Fedrigoni
Fabriano are available here:
www.fondazionefedrigoni.it

Sustainability Report— Social

Near our plant in Caponago (Italy) covering 0.75
hectares with 1.500 plants. Every year we organisevolunteering activities during working time to plant
new trees and take care of existing ones. Nonetheless,2022 was dramatic because of drought; that is why
we are internally discussing how to pursue these kindsof initiatives in a future of climate change.
In mid-February 2023, we looked after our wood byinvolving 15 employees plus the Sustainability Teamin re-plantation activities, during working time.

Fondazione Gianfranco Fedrigoni Fabriano (FFF).

The Fedrigoni Group— Methodological note

Fedrigoni Wood

Index

Annual Report 2022

Performance Culture & Open Dialogue
Social dialogue and industrial relations
Fedrigoni and the community— Annex— Auditor’s Report on the Sustainability Report78

Annual Financial
Report

ANNUAL FINANCIAL REPORT

IndexAnnual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT—Our purpose—

Our products—

Making Progress concept—

2030 ESG Targets—

2022 Scenario—

The main initiatives implemented in 2022—

Our business—Governance—

Environment—

Social—Annex

Sustainability Report

Methodological note

The Fedrigoni Group—ESG Targets
Engagement
Learning
Performance
Workforce breakdowns
TurnoverInternal Mobility
Tax management
Table of the location of Fedrigoni paper mills in relation
to protected areas or areas of natural interest
Scope and impacts of material topics
SASB
GRI: content index—

Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

Annex

79

Annual Financial
ReportU.N. Global Compact reference tableHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT
Methodological note—

Our purpose—

Our products—

Making Progress concept—

2030 ESG Targets—

2022 Scenario—

The main initiatives implemented in 2022—

ESG Targets

Engagement

Women in managerial positions*

People Engagement by Level

Year

Women

Total managers% women

2022

119

467

25.48%

2021

106

423

25.06%

2020

81

363

22.31%*Managerial position is defined as leadership position (ExCo and Leadership Team) and employees who manage teams andpeople. The percentage of women reflects the composition of the Fedrigoni Group at the end of the year.

eNPS (employee
internal NPS)*eNPS compared toTrue Benchmark

Leadership100%

9.4 / 1093

Top 5%

Manager98%

8.0 /1045

Top 25%White Collar

88%

7.7 / 1031

Middle range

Blue Collar

60%

7.5 / 1024

Middle range

Total

73%

7.7 / 1032

Middle range

eNPS(employeeinternal NPS)

Distribution comparedto True Benchmark

2022

73%

7.7 / 1032

Middle Range

Our business

2021

68%

7.6 /1030

Middle Range—

Governance

2020

62%

8.2 / 10

50

25%

—

Environment—

Social

—

Annex

Year

Employees trained on the Group Code of Ethics during the year
AnnoN

Total Employees

%

2022

1,671

4,115

41%

2021

40

3,893

1%

People Engagement by Gender
GenderParticipation
Rate

Engagement
Score*eNPS compared to True Benchmark

7.8 / 10eNPS
(employeeinternal
NPS)*
35

Female

92%

Male

69%

7.6 /1030

Middle range

Total

73%

7.7 / 1032

Middle range

Middle range

Sustainability Report

Engagement
Score*Engagement

Engagement
Score*

People Engagement (measured through Fedrigoni Survey)
Participation
Rate

ESG Targets

Participation Rate

Level

The Fedrigoni Group

—

Index

Annual Report 2022

Learning
Performance
Workforce breakdowns
TurnoverInternal Mobility
Tax management
Table of the location of Fedrigoni paper mills in relation
to protected areas or areas of natural interest
Scope and impacts of material topics
SASB
GRI: content index—

Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

80

Annual Financial
ReportU.N. Global Compact reference tableIndexAnnual Report 2022
Learning
HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT
Methodological note—

Our purpose—

Our products—

Making Progress concept—

2030 ESG Targets—

2022 Scenario—

The main initiatives implemented in 2022—

Learning by Age Group - 2022
Average
Hours percapitaNumber of
employees whocompleted min. 1
course% on total
employees

<30

10.9

313

30-50

14.2

>50

Learning by Level - 2022
Professional
Category

Average oftraining hours
per capita

Number of% on total
employees
Employees by
who completed
Levelmin. 1 course

Number ofcompletedcourses

Total training
hours

Leadership

25.8

42

95%

207

1,085.27

Manager

27.6

395

93%

2,008

10,920.37

White Collar

13.7

1,054

84%

4,843

14,458.33

Blue Collar

3.2

452

19%

629

1,466.91

122

-

272

1,123.78

2,065

50%

7,959

29,054.66

Number ofcompletedcourses

Total training
hours

71%

4,860

3,398.86

Exits in the year
9.2
/ Contingent

1,112

49%

4,264

15,834.78

Total

15.4

636

47%

2,549

9,809.28

Our business

Exits in the year
/ Contingent

2.9

4

-

14

11.74

—

Governance

Total

14.1

2,065

50%

7,959

29,054.66—

Environment—

Social—Annex
Engagement

Learning by Gender - 2022
GenderNumber of
Average of% on total
employees
training hours
Employees by
who completed
per capita
Gendermin. 1 course

Number ofcompletedcourses

Total training
hours

Male

14.8

1,350

41%

4,860

19,939.01

Performance

Female

12.9

703

87%

3,077

9,060.83

Workforce breakdowns

Exits in the year
/ Contingent

4.6

12

-

22

54.82

Total

14.1

2,065

50%

7,959

29,054.66

Internal Mobility
Tax management
Table of the location of Fedrigoni paper mills in relation
to protected areas or areas of natural interest
Scope and impacts of material topics

Average oftraining hours perlearnerNumber of
employees whocompleted min. 1
courseNumber ofcompletedcourses

Total training
hours

Italy

17.1

1,101

4,678

18,845.43

Spain

13.6

107

405

1,453.46

Brazil

9.1

78

256

708.12

China

6.6

66

177

433.66

France

9.8

49

167

481.98

Chile

15.4

48

159

739.47

United Kingdom

5.4

38

177

204.21Poland

7.1

15

64

106.42Other (nationality
with <15 learners or
N/A)

10.8

563

3,716

6.081,91

Total

14.1

2,065

7,959

29,054,66

In 2021, we trained 566 people (of which 19 exited during the year), for a total of 16717 hoursof training delivered (30,5 per learner on average).

SASB
GRI: content index—

Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

81

Annual Financial
ReportU.N. Global Compact reference table

Learning by Nationality - 2022
Nationality

Learning

Turnover14.1

Sustainability Report

ESG Targets

Age Group

The Fedrigoni Group—

Methodological note: Here we include additional, non-mandatory training, in addition
compared to the cumpolsory trainings mandated by local and national legislation. Blank
indicates that the Learner has left the Company during the year and/or is part of a recently
acquired company and the information is not fully collected and verified.

HIGHLIGHTS

Performance

Male

Methodological note—

Our purpose—

Our products—

Making Progress concept—

2030 ESG Targets—

2022 Scenario—

The main initiatives implemented in 2022—

Our business—Governance—Female

Total

Anno

N

Total dipendenti%

Number%Number%Number

%

2022

1,328

4,115

32%

Leadership

36

100%

10

100%

46

100%

2021

643

3,893

17%

Manager

211

72%

68

67%

279

71%

2020

337

3,800

9%

White collar

121

18%

95

17%

216

17%

Blue collar

5

0%

1

0%

6

0%

Total

373

11%

174

22%

547

14%

*This is optional training in addition to the mandatory training required by national laws. The percentage figure represents thenumber of people involved in training programmes during the year, compared to the total number of employees, taking into
account people in the workforce at the end of 2021.

Number of employees involved in training by age 2021

Performance Conversations by Level – 2022
Employees with at least a
Performance Conversation% on total population

Leadership

30

68%

Manager

333

79%

White Collar

872

70%

Level

<30

30 – 50>50

Blue Collar

93

4%

Male

14

191

163

Environment

Total

1,328

32%

Female

17

122

35

—

Social

Total

31

313

198

—

Annex

Gender

Employees with at least a
Performance Conversation% on total population

Female

503

62%

Male

825

25%

Total

1,328

32%

Average hours of annual training* per employee2021

Engagement

Male

Learning
Performance
Workforce breakdowns
TurnoverInternal Mobility
Tax management
Table of the location of Fedrigoni paper mills in relation
to protected areas or areas of natural interest
Scope and impacts of material topics
SASB
GRI: content index—

Auditor’s Report on the Sustainability Report

No. ofhours
Leadership

FemaleAvg. hours

No. of
hours

2,435

68

Manager

5,199.5

White collar

Total

Avg. hours

No. ofhours

Avg. hours

601

60

3,036

66

25

1,781.5

26

6,981

25

3,256.5

27

3,332.5

35

6,589

31

Blue collar

109

22

2

2

111

18.5

Total

11,000

29.5

5,717

33

16,717

30.5

3.5

7.6

4.3

Total training
hours*
per headacross theorganisation*This is optional training in addition to the mandatory training required by national laws. Per head training is intended for theentire workforce. Average hours of optional training is per employee involved in optional training.

2022
Employeeswith MBO

2021

Male

FemaleMale

FemaleNumber%*Number%*Number%*Number%*Leadership

37

100%

7

100%

34

100%

8

100%

Manager

179

58%

67

60%

157

55%

39

40%

White collar

127

19%

72

12%

117

17%

61

11%

Blue collar

-

-

-

-

-

-

-

-

Total pergender

343

10%

146

18%

308

10%

108

14%

Total

12%

11%

* Percentage on total active employees.

ANNUAL FINANCIAL REPORT

82

Annual Financial
ReportU.N. Global Compact reference table

Performance Conversations by Gender - 2022

Sustainability Report

ESG Targets

The Fedrigoni Group—

Employees with at least one Performance Conversation

Employees involved in Training 2021*

FEDRIGONI GROUPSUSTAINABILITY REPORT

Index

Annual Report 2022

IndexAnnual Report 2022

Workforce breakdowns

HIGHLIGHTS

2022

2021

Male

female

Total

Male

FemaleTotal

Employee

3,303

812

4,115

3,141

752

3,893

SUSTAINABILITY REPORT

Externalcollaborator

286

59

345

259

31

290

Total

3,589

871

4,460

3,400

783

4,183

Methodological note—

Our purpose

Male

Female

Total

Male

FemaleTotal—

Type ofcontract

Our products

Temporary

112

67

179

86

52

138

—

Making Progress concept

Permanent

3,191

745

3,936

3,055

700

3,755

—

2030 ESG Targets

Total

3,303

812

4,115

3,141

752

—

2022 Scenario

Time Type

Male

Female

Total

Male

—

The main initiatives implemented in 2022

Full-time

3,275

739

4,014

—

Our business

Part-time

28

73

—

Governance

Total

3,303

—

Environment—

Social—Annex

Type ofexternal
contracts
External
agency2021< 30

30 - 50> 50

Leadership(0%)

27 (61%)17 (39%)3,893

Manager

6 (1%)

Female

Total

3,122

692

3,814

101

19

60

79

812

4,115

3,141

752

3,893

White
CollarsBlue
Collars
Grand
Total

151
(12%)
296
(12%)
453
(11%)

Male

Female

Total

Male

Female

Total

270

37

307

248

21

269

Intern

12

15

27

5

4

9

Engagement

Apprentices

2

1

3

2

3

Learning

Co.Co.Co1

1

2

Performance

Consultant

1

6

7

2

Workforce breakdowns

Total

286

59

345

259

Turnover*éclose s.r.l. not included in the HR data

ESG Targets

Internal Mobility
Tax management

2022

236
(56%)
739
(59%)
1,308
(55%)
2,310
(56%)

181 (43%)
362
(29%)
792
(33%)
1,352
(33%)

Grand
Total
44
(100%)
423(100%)
1,252(100%)
2,396(100%)
4,115(100%)<30

30 – 50

>50

N/A

Total

0%

55%

45%

0%

42

3%

49%

47%

2%

381

11%

55%

32%

2%

1,203

12%

52%

36%

1%

2,267

11%

52%

36%

1%

3,893

Employees by nationality 2022
Number of employees

%

Italy

2,291

56%

5

Spain

500

12%

2

United States of America

268

7%

3

5

Brazil

161

4%

31

290

Chile

153

4%

Mexico

142

3%

China

131

3%

United Kingdom

95

2%

Poland

55

1.3%

2021

Nationality

Female

Total

Male

Female

Total

Leadership

37 (84%)7 (16%)

44

34 (81%)8 (19%)

42

Germany

53

1.3%

U.N. Global Compact reference table

Manager

311 (74%)112 (26%)423

283 (74%)

98 (26%)

381

France46

1.1%

Scope and impacts of material topics

White collar

669 (53%)583 (47%)1,252

670 (56%)533 (44%)

1,203

Colombia

20

0.5%

SASB

Blue collar

2,286 (95%)

110 (5%)2,396

2,154 (95%)

113 (5%)2,267

Ecuador

17

0.4%

GRI: content index

Total

3,303 (80%)

812 (20%)

4,115

3,141 (81%)

752 (19%)

3,893

Other

183

4%

Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORTIn “Other” are included the countries with a number of employees below 15. It includes: Dominican Republic, Belgium, Romania,
Argentina, Peru, Philippines, Moldova, Morocco, Portugal, Hong Kong, Costa Rica, Venezuela, Indonesia, Bangladesh, Nicaragua,
Malaysia, Switzerland, Albania, Czechia, Lithuania, Ukraine, Hungary, Tunisia, Slovakia, Austria, Canada, El Salvador, Senegal,
Netherlands, Sri Lanka, UK, Honduras, Georgia, Ghana, Guinea, Latvia, Korea, Republic of, Serbia, Greece, Guatemala, Nigeria,
Uruguay, Finland, Cameroon, Bosnia and Herzegovina.

83

Annual Financial
ReportMale

to protected areas or areas of natural interest

Professional
category per
genderTable of the location of Fedrigoni paper mills in relation

—

2022

Sustainability Report—

The Fedrigoni GroupFEDRIGONI GROUP

Worker TypeIn addition, we report the percentage of women in the following additional professional
categories in 2022: Junior manager 26%, revenue generating functions 39%, STEM-related
positions 21%

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT

Index

Annual Report 2022—

Methodological note—

Our purpose—

Our products

Employees self-identification
Ethnicity—

Making Progress concept—

Employees self-identification
Caring responsibilities

Number

%

874

21%

499

12%

186

5%

187

5%

Other caring responsibilities

431%

Preferred not to answer

2,326

57%

Employees self-identification
Sexual Orientation

Number%Straight / Heterosexual

1,687

41%

Gay / Lesbian

130%

No caring responsibilities
Caring responsibilities for a childor children
Caring responsibilities for an adultfamily member
Caring responsibilities for a childor children as well as an adultfamily member%

Ethnic majority

1,327

32%

2030 ESG Targets

Etnic minority

87

2%

—

2022 Scenario

Other

106

3%

—

The main initiatives implemented in 2022

Preferred not to answer

2,595

63%

—

Our business—Governance

Number%—Environment

Employees self-identification
Religion
Christian

1,212

29%

—

SocialBisexual

17

0%Atheist

208

5%

—

Annex

Other

21

1%

Non-religiously spiritual

140

3%

ESG Targets

Preferred not to answer

2,377

58%

Agnostic

104

3%

Engagement

Other

101

2%

Learning

Buddhist26

1%

Performance

Muslim160%Workforce breakdowns

Jewish50%TurnoverPreferred not to answer

2,303

56%

Sustainability Report

Number

The Fedrigoni Group

Employees by demographics self-identification
In this year’s Fedrigoni People Survey, employees had the option to self-identify on a voluntary
and anonymous basis in a series of categories through a third party survey platform (Peakon),with the aim for the Group of better understanding the lived experiences of different groups inorder to plan dedicated actions and initiatives through the analysis of employee feedback andsentiment also by these segments.

Internal Mobility
Tax management
Table of the location of Fedrigoni paper mills in relation
to protected areas or areas of natural interest
Scope and impacts of material topics
SASB
GRI: content index—

Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

84

Annual Financial
ReportU.N. Global Compact reference tableTurnover

Internal Mobility

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT

Index

Annual Report 2022

2022

2021

2022

Number of newhires 2022 *<30

30 – 50

>50

Total

<30

30 – 50

>50

N/A

Total

Male

137

225

31

393

80

155

25

1

261

Female

35

96

12

143

38

71

5

2

116

Methodological note

Total

172

321

43

536

118

226

30

3

377

—

Our purpose

(%)

39%

14%

3%

13%

28%

11%

2%

6%

10%

—

Our products

—

2022

2021

Male

FemaleMale

FemaleNumber%*Number%*Number%*Number%*Leadership

2

5%

0

0%

1

3%

0

0%

Manager

23

7%

9

8%

7

2%

3

3%

White collar

19

3%

12

2%

10

1%

7

1%

Making Progress concept

Turnover 2022*

<30

30 – 50

>50

Total

<30

30 – 50

>50

N/A

Total

Blue collar

58

3%

1

1%

15

1%

0

0%

—

2030 ESG Targets

Male

66

158

90

314

82

167

114

4

367

102

3%

22

3%

33

1%

10

9%

—

2022 Scenario

Female

19

58

20

97

16

46

35

2

99

Total pergender—

The main initiatives implemented in 2022

Total

85

216

110

411

98

213

149

6

466

—

Our business

19%

9%

8%

10%

23%

11%

11%

13%

12%

—

GovernanceTurnover rate(%)—

Environment—

SocialNumberof ExCo

—

Annex

Male

Total

124 employees, 3%

The Fedrigoni Group—

Employees
covering aninternal open
position

2021

43 employees, 1%

ExCo composition*excluding new acquisition and merge

2022

FemaleEngagement

Total

30 – 50

>50

Total

6

1

7

1

1

2

8

30 – 50

>50

Total

75%

12.5%

87.5%

12.5%

12.5%

25%

100%

6

<30

30 – 50

>50

Total

Sustainability Report

ESG Targets

<30

2021

6

6
2

2

6

2

8

30 – 50

>50

Total

2021

Learning
Performance% ExCoWorkforce breakdowns

Male

TurnoverFemaleInternal Mobility

Total

<30

75%

<30

75%

75%
75%

25%

25%

25%

100%

Tax management
Table of the location of Fedrigoni paper mills in relation
to protected areas or areas of natural interest
Scope and impacts of material topics
SASB
GRI: content index—

Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

85

Annual Financial
ReportU.N. Global Compact reference tableHIGHLIGHTS

Tax management
Country

FEDRIGONI GROUPSUSTAINABILITY REPORT—Our purpose—

Our products—

Making Progress concept—

2030 ESG Targets—

2022 Scenario—

The main initiatives implemented in 2022—

Our business—Governance—

Environment—

Social

—

Annex

Italy

Spain

UnitedKingdomUSA

ESG Targets

BrazilEngagement

Chile

Learning
Performance

MexicoWorkforce breakdowns

Germany

TurnoverFranceInternal Mobility
Tax management

Austria

Euro/1,000

Euro/1,000

Production and distribution of
specialty graphic papers

1,629

542,467

265,352

18,803795,816

9,009

3,984

Production and distribution ofadhesive and anti-adhesive products

752

447,445

153,077

38,075

302,862

2,411(1,332)

0

0

0

(366)

1,729

0

27

498

369,629

46,82042,890123,369

10,932

9,720

178

40,137315(143)

38,187

179

(1)

76

68,480

9,453

2,863

19,664

77

532

42

45,003

158

477

4,757

240

243

122

152,138

0

11,44370,678

4,373

2,765

146

90,444

1,450

6,398

60,730

1,007

2,527

158

81,263

8,608

7,299

66,490

2,126

1,351

161

39,61432,167(4,049)39,356

963

(759)

142

49,882

1,635

3,641

43,785

2,253

2,125

59

43,525

56

443

9,074

126

155

46

45,671

142

624

83,026

68

179

1

0

0

75

74

2

2

Property management
Production and distribution ofArconvert SAU; DIVIPA; Villartales
adhesive and anti-adhesive products
Distribution of specialty graphic
Fedrigoni Espana SL; Guarro Casas
papers
Production and distribution of
Ritrama UK;
adhesive and anti-adhesive products
Distribution of adhesive
Fedrigoni UK LTD
and anti-adhesive products
GPA Holding company INC;
Distribution of specialty graphic
papers, adhesive and anti-adhesive
GPA Acquisition company LLC;
products
Production and distribution of
Acucote INC.
adhesive and anti-adhesive products
Arconvert-Ritrama do Brasil LTDA; Production and sale of adhesive
Ritrama Autodesivos LTDA
and anti-adhesive products
Production and distribution of
Ritrama SA Chileadhesive and anti-adhesive products
Venus America SA de CV;
Production and distribution ofIndustrial Papelera Venus SA de CV. adhesive and anti-adhesive products
Fedrigoni Deutschland GMBH;
Distribution of specialty
Cartamano Deutschland GMBH.
graphic papers
Distribution of specialty
Fedrigoni France Sarlgraphic papers
Distribution of specialty
Fedrigoni Austria GMBH
graphic papers

Sustainability Report

Methodological note

Fedrigoni SpA; Giano 1264 Srl;
Giano Real Estate; éclose SRL
Gruppo Cordenons SpA;
Magnani 1404 Srl;
Ritrama SpA;
Polifibra 2011 SpA;
Arconvert SpA;
Miliani Immobiliare Srl;

Main activities

Income taxes
Income taxes
accrued on
paid (cash basis)
gains/losses

The Fedrigoni Group—

Resident entity names

Tangible assets
Nr. of
Revenues from
Intra-groupother thanPre-tax profit/loss
employees sales to third parties revenues
cash and cash
equivalents
Euro/1,000
Euro/1,000 Euro/1,000
Euro/1,000

Index

Annual Report 2022

Table of the location of Fedrigoni paper mills in relation
to protected areas or areas of natural interest
Scope and impacts of material topics
SASB
GRI: content index—

Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT86

Annual Financial
ReportU.N. Global Compact reference table

Resident entity names

Main activities

FEDRIGONI GROUP

EcuadorDistribuidora Ritrama Ecuador
Disritrec SA

SUSTAINABILITY REPORTPerù

Ritrama Perù—Methodological note

Costa Rica

Ritrama Costa Rica—

Our purpose—

Our products

Colombia

Ritrama SAS—

Making Progress concept

Guatemala

Ritrama Guatemala—

2030 ESG Targets—

2022 Scenario

Dominican
Repubblic—

The main initiatives implemented in 2022—

Our businessInversiones San Aurelio SRL;
Ritrama CARIBE Srl
Ritrama (Hefei) Pressure Sensitive
Coated Materials Co.Limited
Fedrigoni ASIA LTD
Fedrigoni Trading CO LTD—

Governance—

Environment—

Social—Annex

Distribution of adhesive
and anti-adhesive products
Distribution of adhesive
and anti-adhesive products
Distribution of adhesive
and anti-adhesive products
Distribution of adhesive andanti-adhesive products
Distribution of adhesive
and anti-adhesive products
Distribution of adhesive
and anti-adhesive products
Production and distribution ofadhesive and anti-adhesive products
Distribution of specialty
graphic papers
Distribution of adhesive
and anti-adhesive products
Distribution of adhesive
and anti-adhesive products
Distribution of specialty
graphic papers
Distribution of specialty
graphic papers
Distribution of specialty
graphic papers
Distribution of adhesive
and anti-adhesive products

ESG Targets
Engagement
Learning
Performance
Workforce breakdowns

China
South
AfricaRitrama Converting (PTY) LTD

PolandRitrama Poland

Belgium

Fedrigoni Benelux BVBA

Bangladesh Fedrigoni Bangladesh LTD
Indonesia

PT Fedrigoni Indonesian Trading

TurkeyBes Reklam Ürünleri Sanayi
ve Ticaret A.Ş.

Totale

8

2,299

0

(16)

422

0

67

9

5,201

0

276

3,524

0

94

12

4,617

0

44

3,283

34

49

18

7,746

0

(878)

4,615

45

44

1

384

63

(254)

195

0

0

14

5,263

1,460

244

1,554

24

22

102

30,007

8,012

908

19,6830523

50

17,603

109

170

9,251

0

0

1

1,023

0

(543)

17

19

124

47

29,802(41)332

11,043

134

81

12

12,434

605

(34)

1,224

0

4

2

0

379

234

224

0

0

3

635

0

(152)

1,172

0

0

80

1,605

0

241

23,044

0

176

4,369

2,134,317

529,821129,046

1,738,846

34,02322,702

Sustainability ReportCountry

Income taxes
Income taxes
accrued on
paid (cash basis)
gains/losses

The Fedrigoni GroupHIGHLIGHTS

Tangible assets
Nr. of
Revenues from
Intra-groupother thanPre-tax profit/loss
employees sales to third parties revenues
cash and cash
equivalents

Index

Annual Report 2022

TurnoverInternal Mobility
Tax management
Table of the location of Fedrigoni paper mills in relation
to protected areas or areas of natural interest
Scope and impacts of material topics
SASB
GRI: content index—

Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT87

Annual Financial
ReportU.N. Global Compact reference tableTable of the location of Fedrigoni paper mills in relation
to protected areas or areas of natural interest

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT—Our purpose—

Our products—

Making Progress concept—

2030 ESG Targets—

2022 Scenario—

The main initiatives implemented in 2022—

Our business—Governance—

Environment—

Social—Annex

PioracoScurelle

VaronePaper mill Paper millType of plant

Paper millPaper millPaper millPaper millPaper millSurface (ha)

12.41

6.20

8.93

3.18

0.55

Val
Campelle

Nearest protectedarea or area of
natural interest
Distance in km
to the protectedarea or area of
natural interest
Number ofprotected areasor areas of naturalinterest within aradius of 20 km

4.65

Verona5.84

BiotopoMonte
BrioneRisorgive delVinchiaruzzo

Faggetodi SanSilvestro

Valle
Scurosa.
Piano diMontelago
e Gola diPioraco

0.33

1.33

0.83

0.00

3.73

2.65

1.66

55

12

33

31

47

59

13

Fiume
Biotopo Adige traMonte Verona est
Brionee Badia
Polesine

Sustainability Report

Methodological note

Cordenons Fabriano

The Fedrigoni Group

—

Arco

ESG Targets
Engagement
Learning
Performance
Workforce breakdowns
TurnoverInternal Mobility
Tax management
Table of the location of Fedrigoni paper mills in relation
to protected areas or areas of natural interest
Scope and impacts of material topics
SASB
GRI: content index—

Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT88

Annual Financial
ReportU.N. Global Compact reference tableHIGHLIGHTSFEDRIGONI GROUP

U.N. Global Compact reference table
Category

Human Rights

SUSTAINABILITY REPORT—Our purpose—

Our products—

Making Progress concept—

2030 ESG Targets—

2022 Scenario—

The main initiatives implemented in 2022—

Our business—Governance—

Environment—

Social—Annex

Labour2022 Sustainability Report paragraph

GRI Indicator

Principle 1: Businesses should supportand respect the protection of internationallyproclaimed human rights

Our certifications, Code of Ethics,2030 ESG targets,
Human Rights, Safety, Inclusion, Diversity and Equity

403-1, 403-2, 403-3, 403-4, 403-5, 403-6,
403-7, 403-9,
405-1,
406-1,
413-1,

Principle 2: Businesses should make surethat they are not complicit in human rights abuses

Code of Ethics,2030 ESG targets, Sustainableprocurement, Human Rights

414-1, 414-2

Principle 3: Businesses should uphold the freedomof association and the effective recognition of theright to collective bargaining

2030 ESG targets, Human Rights, Social Dialogue
and industrial relations

Principle 4: Businesses should upholdthe elimination of all forms of forced
and compulsory labour

Code of Ethics, Sustainable procurement,
Human Rights

414-1, 414-2

Principle 5: : Businesses should upholdthe effective abolition of child labour

Code of Ethics, Sustainable procurement,
Human Rights

414-1, 414-2

Principle 6: Businesses should upholdthe elimination of discrimination in respectof employment and occupation

Code of Ethics, Sustainable procurement, Human
Rights, Safety, Inclusion, Diversity and Equity,
Social Dialogue and industrial relations

ESG Targets
Engagement
Learning
Performance
Workforce breakdowns
TurnoverInternal Mobility

Environment

Tax management
Table of the location of Fedrigoni paper mills in relation
to protected areas or areas of natural interest
Scope and impacts of material topics
SASB
GRI: content index—

Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

Anti-Corruption

Principle 10: Businesses should work against
corruption in all its forms, including extortionand bribery

Code of Ethics

2-7, 2-8,
404-1, 404-2, 404-3, 405-1,
406-1

302-1, 302-3,
303-1, 303-2, 303-3,
305-1, 305-2, 305-3, 305-4, 305-5, 306-1,306-2, 306-3

302-1, 302-3,
303-1, 303-2, 303-3,
305-1, 305-2, 305-3, 305-4, 305-5, 306-1,306-2, 306-3
302-1, 302-3,
303-1, 303-2, 303-3,
305-1, 305-2, 305-3, 305-4, 305-5, 306-1,306-2, 306-3

2-26, 2-27

89

Annual Financial
ReportU.N. Global Compact reference table

Code of Ethics,2030 ESG targets, Enterprise Risk
Management, Sustainable procurement, Rawmaterials, Water, Energy, Carbon dioxide emissions
Principle 7: Businesses should support aand energy transition, Other atmospheric emissions,precautionary approach to environmental challenges
Biodiversity and no deforestation, Waste and circular
economy, Life Cycle Assessment, End-of-life of
our products
2030 ESG targets, Raw materials, Water, Energy,
Carbon dioxide emissions and energy transition,
Principle 8: Businesses should undertake initiatives
Other atmospheric emissions, Biodiversity andto promote greater environmental responsibility
no deforestation, Waste and circular economy,
Life Cycle Assessment, End-of-life of our products
2030 ESG targets, Raw materials, Water, Energy,
Principle 9: Businesses should encourage theCarbon dioxide emissions and energy transition,
development and diffusion of environmentally
Other atmospheric emissions, Biodiversity and nofriendly technologies
deforestation, Waste and circular economy, Life
Cycle Assessment, End-of-life of our products

2-30

Sustainability Report

Methodological note

Global Compact Principles

The Fedrigoni Group

—

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT

Index

Annual Report 2022

Scope and impacts of material topics:
Scope

CO2 & renewable energy

Fedrigoni and Suppliers

Excellence in product eco-design and quality”

Fedrigoni and Suppliers

Water

Fedrigoni and SuppliersRole of Fedrigoni

Type of impacts

Caused by Fedrigoni
Directly linked through business relationship
Caused by Fedrigoni
Directly linked through business relationship
Caused by Fedrigoni
Directly linked through business relationship
Caused by Fedrigoni
Directly linked through business relationship

GHG emissions and energy consumption
Quality and safety impacts of products
Water withdrawl, consumption and discharge—

Methodological note—

Our purpose

Biodiversity

Fedrigoni and Suppliers—

Our products

Health and Safety

Fedrigoni

Caused by Fedrigoni—

Making Progress concept—

2030 ESG Targets

Diversity, Equity and Inclusion

Fedrigoni

Caused by Fedrigoni—

2022 Scenario

Governance & business ethics

Fedrigoni

Caused by Fedrigoni—

The main initiatives implemented in 2022—

People experience and development

Fedrigoni

Caused by Fedrigoni

People skills development and well being

Our business—GovernanceSocial inclusion & Community relations

Fedrigoni

Caused by Fedrigoni

Local development and community relations—

Environment—

Social—Annex

Discrimination and non-inclusive practices
in the workplace
Unethical conduct of business; creationand distribution of value

SASB
Topic

Accounting metric

Unit of measurement CodeResponse

LearningGreenhouse
Gas Emissions

Gross global Scope 1 emissions

Metric tons (t) CO₂-e

316,363 t CO2e

Workforce breakdowns
TurnoverInternal Mobility

Air Quality

Tax management
Table of the location of Fedrigoni paper mills in relation
to protected areas or areas of natural interest
Scope and impacts of material topics

EnergyManagement
Water
Management

SASB
GRI: content index
Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORTSupply Chain
Management

Activity metric

Discussion of long-term and short-term strategy or plan to manage Scope
1 emissions, emissions reduction targets, and an analysis of performanceagainst those targets
Air emissions of the following pollutants: (1) NOx (excluding N2O), (2) SO2,
(3) volatile organic compounds (VOCs), (4) particulate matter (PM), and (5)hazardous air pollutants (HAPs)(1) Total energy consumed(2) percentage grid electricity,(3) percentage from biomass,(4) percentage from other renewable energy(1) Total water withdrawn, (2) total water consumed, percentage of each inregions with High or Extremely High Baseline Water Stress
Description of water management risks and discussion of strategies andpractices to mitigate those risks
Percentage of wood fiber sourced from (1) third-party certified forestlands
and percentage to each standard and (2) meetingother fiber sourcing standards and percentage to each standard

RR-PP-110a.1
RR-PP-110a.2
RR-PP-120a.1

GJ or %

Paragraph“Carbon dioxide emissions and energy transition
towards carbon neutrality”“TCFD disclosure”“Carbon dioxide emissions and energy transition
towards carbon neutrality”“Other atmospheric emission”

RR-PP-130a.1(1) 5,674,252 GJ(2) 3.6%(3) 0%(4) 4.2%“Energy”

RR-PP-140a.1

Water“water”

RR-PP-140a.2“water”

RR-PP-430a.1

100% of purchased pulp
with FSC® certification(96% COC and 4% CW).

“Sustainable procurement”

Amount of recycled and recovered fiber procured

RR-PP-430a.2

4,657 ton

“Raw materials”“Sustainable procurement”

Pulp production

RR-PP-000.A

0“Our business”

Paper production

RR-PP-000.B

499,993 ton“Our business”

90

Annual Financial
ReportU.N. Global Compact reference table—

Work-related injuries

Engagement
Performance

Direct and indirect Impact on biodiversity

Sustainability Report

ESG Targets

The Fedrigoni Group

Material topic

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORTGRI: content index

Index

Annual Report 2022

Fedrigoni has reported in accordance with the
GRI Standards for the period 1st January 2022
to 31st December 2022.
GRI Standard

DisclosurePage

2-1 Organizational details

14

2-2 Entities included in the organization’s sustainability reporting

Fedrigoni Group
p.12

The organization and its reporting practices

Methodological note—

Our purpose—

Our products

2-3 Reporting period, frequency and contact point

14—

Making Progress concept

2-4 Restatements of information

14; 51—2030 ESG Targets

2-5 External assurance

14; 95-96—2022 Scenario—

The main initiatives implemented in 2022

2-6 Activities, value chain and other business relationships

7-11; 15-17; 22-25;
41-43

—

Our business

2-7 Employees

83—

Governance

2-8 Workers who are not employees

83—

Environment

Governance—SocialGRI 2: General Disclosures 2021

2-9 Governance structure and composition

—

Annex

29; Fedrigoni
Group p.8

2-10 Nomination and selection of the highest governance body

29

ESG Targets

2-11 Chair of the highest governance body

29

Engagement

2-12 Role of the highest governance body in overseeing the management of impacts

29

Learning

2-13 Delegation of responsibility for managing impacts

29

Performance

2-14 Role of the highest governance body in sustainability reporting

29

Workforce breakdowns

2-15 Conflicts of interest

29; 33-34

Turnover2-16 Communication of critical concerns

29Internal Mobility

2-17 Collective knowledge of the highest governance body

29

Activities and workers
GRI 2: General Disclosures 2021

29

U.N. Global Compact reference table

2-19 Remuneration policies

74-75

Scope and impacts of material topics

2-20 Process to determine remuneration

74-75

to protected areas or areas of natural interest

SASB
GRI: content index
Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

2-21 Annual total compensation ratio

The performance is self-assessed by each
Board Member every two years, in respect
to the activity of the last 12 months, with thehelp of an external qualified third party to run
the process.

CEO to median employee compensation
ratio: 56 in 2022. It was calculated
considering fixed and variable remunerationthat is represented by base salary and actual
production bonus paid in 2023. Since CEO’scompensation did not change in the last year,
the ratio of the percentage increase is zero

91

Annual Financial
Report2-18 Evaluation of the performance of the highest governance body

Sustainability Report

Tax management—

The Fedrigoni GroupGRI 2: General Disclosures 2021—

Table of the location of Fedrigoni paper mills in relation

NoteHIGHLIGHTSFEDRIGONI GROUP

Index

Annual Report 2022

GRI Standard

DisclosurePage

2-22 Statement on sustainable development strategy

Fedrigoni Group
p.4

2-23 Policy commitments

17; 20; 67

Strategy, policies and practices
GRI 2: General Disclosures 2021

SUSTAINABILITY REPORT

2-24 Embedding policy commitments

29; 67—

Our purpose

2-25 Processes to remediate negative impacts

19; 29-30; 33; 90—

Our products2-26 Mechanisms for seeking advice and raising concerns

33—

Making Progress concept2-27 Compliance with laws and regulations—

2030 ESG Targets

2-28 Membership associations

40—

2022 Scenario

Stakeholder engagement—

The main initiatives implemented in 2022

GRI 2: General Disclosures 2021

2-29 Approach to stakeholder engagement

39—

Our business

2-30 Collective bargaining agreements

76—

Governance—

Environment

MATERIAL TOPICS—

Social

3 Material topics (2021)

3-1 Process to determine material toics

—

Annex

3-2 List of material topics

30
30; 903 Material topics (2021)

3-3 Management of material topics

29; 33-35; 40-41

201: Economic performance (2016)

201-1 Direct economic value generated and distributed

40

205: Anti-corruption (2016)

205-3 Confirmed incidents of corruption and actions taken-

206: Anti-competitive behavior (2016)

206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices-

207: Tax (2019)

207-1 Approach to tax

40-41

Table of the location of Fedrigoni paper mills in relation

207-2 Tax governance, control, and risk management

40-41

to protected areas or areas of natural interest

207-3 Stakeholder engagement and management of concerns related to tax

40-41

U.N. Global Compact reference table

207-4 Country-by-country reporting

86-87

Learning
Performance
Workforce breakdowns
TurnoverInternal Mobility
Tax management

Sustainability Report

Engagement

In 2022 no casesof non compliance occurred.

Governance
Governance & business ethics

In 2022 no confirmed incidentsof corruption occurred.
In 2022 no legal actions for anti-competitive
behavior, anti-trust and monopoly practices
were recorded.

Scope and impacts of material topics
SASB
GRI: content index—

Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

92

Annual Financial
Report

Methodological note

The Fedrigoni Group—ESG Targets

NoteIndexAnnual Report 2022

HIGHLIGHTSGRI Standard

FEDRIGONI GROUPSOCIALSUSTAINABILITY REPORT

DisclosurePage

3-3 Management of material topics

67-68

403-1 Occupational health and safety management system

67-68

Health and safety

Methodological note—

Our purpose—

Our products—

Making Progress concept—

2030 ESG Targets—

2022 Scenario403-2 Hazard identification, risk assessment, and incident investigation

67-68

—

The main initiatives implemented in 2022

403-3 Occupational health services

67-68

—

Our business403-4 Worker participation, consultation, and communication on occupational health and safety 67-68; 76—

Governance403-5 Worker training on occupational health and safety

67-68

—

Environment

403-6 Promotion of worker health

67-68

—

Social67-68—

403-7 P revention and mitigation of occupational health and safety impacts directly
linked by business relationships

Annex403-9 Work-related injuries

68

3 Material topics (2021)

3-3 Management of material topics

71-73

Learning

405: Diversity and equal opportunity (2016)405-1 Diversity of governance bodies and employees

29; 83

Performance406: Non-discrimination (2016)406-1 Incidents of discrimination and corrective actions taken-

3 Material topics (2021)

3-3 Management of material topics

69-75

Internal Mobility

401: Employment (2016)

401-1 New employee hires and employee turnover85

Tax management404: Training and education (2016)404-1 Average hours of training per year per employee

81-82

Table of the location of Fedrigoni paper mills in relation

404-2 Programs for upgrading employee skills and transition assistance programs70

to protected areas or areas of natural interest

404-3 P
 ercentage of employees receiving regular performanceand career development reviews

82

3 Material topics (2021)

3-3 Management of material topics

77-78

413: Local communities (2016)413-1 Operations with local community engagement, impact assessments,
and development programs

77-78

Scope and impacts of material topics
SASB
GRI: content index

In 2022 no incidents
of discrimination occurred.

People experience and development

Community relations & social inclusion

Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

93

Annual Financial
ReportEngagement

Sustainability Report

Diversity, Equity and Inclusion

U.N. Global Compact reference table—

403: Occupational health and safety (2018)

ESG Targets

Turnover

The Fedrigoni Group

3 Material topics (2021)—

Workforce breakdowns

NoteIndexAnnual Report 2022

HIGHLIGHTSGRI Standard

FEDRIGONI GROUPENVIRONMENTSUSTAINABILITY REPORT

Disclosure

Page

3 Material topics (2021)

3-3 Management of material topics

36-37; 51-55

302: Energy (2016)

302-1 Energy consumption within the organization

51

302-3 Energy intensity

51

302-4 Reduction of energy consumption

51

305-1 Direct (Scope 1) GHG emissions

55

305-2 Energy indirect (Scope 2) GHG emissions

55

CO2 & renewable energy

Methodological note—

Our purpose—

Our products—

Making Progress concept—

2030 ESG Targets—

2022 Scenario

305-3 Other indirect (Scope 3) GHG emissions

53—

The main initiatives implemented in 2022

305-4 GHG emissions intensity

55—

Our business305-5 Reduction of GHG emissions

54-55

—

Governance—

Environment

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx),
and other significant air emissions

56—

Social—Annex

3 Material topics (2021)

3-3 Management of material topics

56

304: Biodiversity (2016)

304-1 Operational sites owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outside protected areas

88306: Waste 2020306-1 Waste generation and significant waste-related impacts

57-58

Learning

306-2 Management of significant waste-related impacts

57-58

Performance

306-3 Waste generated

58

3 Material topics (2021)

3-3 Management of material topics

49-50

303: Water and effluents (2018)

303-1 Interactions with water as a shared resource

49-50

303-2 Management of water discharge-related impacts

49-50

303-3 Water withdrawal

50

303- 4 Water discharge

50

303-5 Water consumption

50

3 Material topics (2021)

3-3 Management of material topics

14-16; 60-62

416: Customer Health and Safety (2016)416-2 Incidents of non-compliance concerning the health and safety
impacts of products and services

Workforce breakdowns
TurnoverInternal Mobility

Biodiversity

Water

Tax management
Table of the location of Fedrigoni paper mills in relation
to protected areas or areas of natural interest
Scope and impacts of material topics
SASB
GRI: content index—

Auditor’s Report on the Sustainability Report

Excellence in product eco-design and quality
No cases non-compliance concerning
the health and safety impacts of products
and services occurred in 2022

ANNUAL FINANCIAL REPORT

94

Annual Financial
ReportU.N. Global Compact reference table

Sustainability Report

Engagement

305: Emissions (2016)

The Fedrigoni Group—ESG Targets

NoteIndexAnnual Report 2022
Deloitte & Touche S.p.A.
Piazza Malpighi, 4/2
40123 Bologna
ItaliaHIGHLIGHTS

Tel: +39 051 65811
Fax: +39 051 230874
www.deloitte.it

FEDRIGONI GROUPSUSTAINABILITY REPORTThe Fedrigoni GroupINDEPENDENT AUDITOR’S REPORTON THE SUSTAINABILITY REPORT— Methodological note
— Our purpose— Our products

To the Board of Directors ofFedrigoni S.p.A.

— Making Progress concept— 2030 ESG Targets— 2022 Scenario—

The main initiatives implemented in 2022—

Our business— Governance— Environment— Annex— Auditor’s Report on the Sustainability Report

ANNUAL FINANCIAL REPORT

Responsibility of the Directors for the Sustainability Report
The Directors of Fedrigoni S.p.A. are responsible for the preparation of the Sustainability Report inaccordance with the “Global Reporting Initiative Sustainability Reporting Standards” established by GRI Global Reporting Initiative (hereinafter “GRI Standards”), as stated in the paragraph “Methodologicalnote” of the Sustainability Report.
The Directors are also responsible, for such internal control as they determine is necessary to enable thepreparation of the Sustainability Report that is free from material misstatement, whether due to fraud or
error.

Sustainability Report— Social

We have carried out a limited assurance engagement on the Sustainability Report of the Fedrigoni Group(hereinafter also “Group”) as of December 31, 2022.

The Directors are also responsible for the definition of the Fedrigoni Group’s objectives in relation to thesustainability performance, for the identification of the stakeholders and the significant aspects toreport.
Auditor’s Independence and quality control
We have complied with the independence and other ethical requirements of the Code of Ethics forProfessional Accountants issued by the International Ethics Standards Board for Accountants, which isfounded on fundamental principles of integrity, objectivity, professional competence and due care,confidentiality and professional behaviour.
Our auditing firm applies International Standard on Quality Control 1 (ISQC Italia 1) and, accordingly,
maintains a comprehensive system of quality control including documented policies and procedures
regarding compliance with ethical requirements, professional standards and applicable legal andregulatory requirements.

Sede Legale: Via Tortona, 25 - 20144 Milano | Capitale Sociale: Euro 10.328.220,00 i.v.
Codice Fiscale/Registro delle Imprese di Milano Monza Brianza Lodi n. 03049560166 - R.E.A. n. MI-1720239 | Partita IVA: IT 03049560166
Il nome Deloitte si riferisce a una o più delle seguenti entità: Deloitte Touche Tohmatsu Limited, una società inglese a responsabilità limitata (“DTTL”), le member firm aderenti al suo network e
le entità a esse correlate. DTTL e ciascuna delle sue member firm sono entità giuridicamente separate e indipendenti tra loro. DTTL (denominata anche “Deloitte Global”) non fornisce servizi aiclienti. Si invita a leggere l’informativa completa relativa alla descrizione della struttura legale di Deloitte Touche Tohmatsu Limited e delle sue member firm all’indirizzo
www deloitte com/about.
© Deloitte & Touche S.p.A.

95

Annual Financial
ReportAncona Bari Bergamo Bologna Brescia Cagliari Firenze Genova Milano Napoli Padova Parma Roma Torino Treviso Udine Verona

IndexAnnual Report 2022

HIGHLIGHTS
2

FEDRIGONI GROUP

3

SUSTAINABILITY REPORT

Auditor’s responsibility— Methodological note

Our responsibility is to express our conclusion based on the procedures performed about the complianceof the Sustainability Report with the GRI Standards. We conducted our work in accordance with thecriteria established in the “International Standard on Assurance Engagements ISAE 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information” (hereinafter“ISAE 3000 Revised”), issued by the International Auditing and Assurance Standards Board (IAASB) for
limited assurance engagements. The standard requires that we plan and perform the engagement toobtain limited assurance whether the Sustainability Report is free from material misstatement.

Conclusion

Therefore, the procedures performed in a limited assurance engagement are less than those performed
in a reasonable assurance engagement in accordance with ISAE 3000 Revised (“reasonable assurance
engagement”), and, therefore, do not enable us to obtain assurance that we would become aware of all
significant matters and events that might be identified in a reasonable assurance engagement.

Based on the work performed, nothing has come to our attention that causes us to believe that the
Sustainability Report of the Fedrigoni Group as of December 31, 2022 is not prepared, in all material
aspects, in accordance with the GRI Standards as stated in the paragraph “Methodological note” of the
Sustainability Report.

The procedures performed on the Sustainability Report are based on our professional judgement andincluded inquiries, primarily with Company personnel responsible for the preparation of information
included in the Sustainability Report, analysis of documents, recalculations and other procedures aimed
to obtain evidence as appropriate.

Other matters— Our products— Making Progress concept— 2030 ESG Targets— 2022 Scenario— The main initiatives implemented in 2022
— Our business— Governance— Environment

The data for the years ended December 31, 2020 and as December 31, 2019 presented for comparative
purposes in the Sustainability Report have not been subject to a limited or to a reasonable assurance
engagement.

Specifically we carried out the following procedures:— AnnexDELOITTE & TOUCHE S.p.A.

— Auditor’s Report on the Sustainability Report

1) analysis of the process relating to the definition of material aspects disclosed in the Sustainability
Report, with reference to the methods used for the identification and prioritization of material
aspects for stakeholders and to the internal validation of the process results;

ANNUAL FINANCIAL REPORT2) comparison between the economic and financial data and information included in the paragraph“Value generated and distributed” of the Sustainability Report with those included in the Group’s
Financial Statements;

Silvia Dallai
Partner

Sustainability Report— Social

3) understanding of the processes underlying the origination, recording and management of qualitativeand quantitative material information included in the Sustainability Report.

The Fedrigoni Group— Our purpose- for the following companies and sites, Pioraco (MC) production plant for Fedrigoni S.p.A.,
Sassoferrato (AN) production plant for Ritrama S.p.A. and Girona (Spain) production plant for
Arconvert S.A.U., which we selected based on their activities, their contribution to the performanceindicators at the consolidated level and their location, we carried out site visits or remote meetings,
during which we have met the management and have gathered supporting documentation on asample basis with reference to the correct application of procedures and calculation methods used
for the indicators.

Bologna, Italy
May 16, 2023

In particular, we carried out interviews and discussions with the management of Fedrigoni S.p.A. andwith the personnel of Ritrama S.p.A. and Arconvert S.A.U. and we carried out limited documentary
verifications, in order to gather information about the processes and procedures, which support thecollection, aggregation, elaboration and transmittal of non-financial data and information to thedepartment responsible for the preparation of the Sustainability Report.
In addition, for material information, taking into consideration the Group’s activities and characteristics:- at the parent company’s and subsidiaries’ level:

96

Annual Financial
Reporta) with regards to qualitative information included in the Sustainability Report, we carried out
interviews and gathered supporting documentation in order to verify its consistency with theavailable evidence;b) with regards to quantitative information, we carried out both analytical procedures and limited
verifications in order to ensure, on a sample basis, the correct aggregation of data;IndexAnnual Report
Report 2022
2022
AnnualHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORTThe Fedrigoni GroupANNUAL FINANCIAL REPORT

Sustainability Report97

Annual Financial
ReportAnnualFinancial
ReportIndexAnnual Report
Report 2022
2022
AnnualHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORTThe Fedrigoni GroupANNUAL FINANCIAL REPORT

Sustainability Report98

Annual Financial
ReportManagement
discussion
and analysis

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis
Introduction
The Acquisition
Pro Forma Results
Key Financial Information
Financial Statements
Discussion of our Results of Operations
Indebtedness
Other Disclosures
Disclaimers
Pro Forma Results
Non-IFRS Measures
Forward-Looking Statements
Notice— Independent Auditor's Report

Pro Forma Results

We present in this annual financial report (this “Annual
Financial Report”):
1. certain financial and other information ofFedrigoni S.p.A. (“Fedrigoni” and, together with its
subsidiaries, the “Fedrigoni Group”) as of and forthe years ended December 31, 2022 and 2021 (the“Fedrigoni results”);
2. certain financial and other information of Fiber
Bidco S.p.A. (“Fiber Bidco” and, together with its
subsidiaries, the “Fiber Group”) from its date ofincorporation as Fiber Bidco S.r.l. on August 29,
2022, to and as of December 31, 2022 (the “Fiber
Bidco results”);
3. certain pro forma financial and other information
as of and for the year ended December 31,
2022 consisting of (i) certain financial and otherinformation of Fedrigoni S.p.A. as of and for theyear ended December 31, 2022 plus (ii) certain
financial and other information of Fiber Bidco
S.p.A. from its date of incorporation as Fiber Bidco
S.r.l. on August 29, 2022 to and as of December 31,
2022 (the “pro forma results”); and4. Pro Forma Adjusted EBITDA, which consists of our
Adjusted EBITDA, adjusted for certain specified
items as set forth herein.

On July 26, 2022, Bain Capital Private Equity signed
a definitive agreement with BC Partners for the joint
ownership of Fedrigoni Group (the “Acquisition”).
The Acquisition closed on November 30, 2022 withthe acquisition by Fiber Bidco of 99.99% of theshare capital of Fedrigoni Group. At closing of theAcquisition, Bain Capital and BC Partners each
owned, indirectly, a 45.6% stake in Fedrigoni, with theremaining 8.8% being held by certain management
and minority co-investors.

The Fiber Bidco results only include the results ofFedrigoni and its subsidiaries from November 30,
2022, the closing date of the Acquisition. To facilitatecomparison of our results between periods, we have
prepared our pro forma results.
The period-to-period discussion included herein
primarily discusses our pro forma results for the year
ended December 31, 2022, compared with
the Fedrigoni results for the year ended
December 31, 2021.

Sustainability Report

Accounting Standards

The Acquisition

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Introduction

Index

Annual Report 2022

— Consolidated Financials

Annual Financial
Report99

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORTThe following table provides (i) for the year ended
December 31, 2022, our pro forma results, and (ii)for the year ended December 31, 2021, the Fedrigoni
results.
Year ended December
31,
Pro forma
Fedrigoni
Fiber
Group
Group
2021
2022

(€ million)— Management discussion and analysis
Introduction
The Acquisition

Sales Revenues

Pro Forma Results

Adjusted EBITDA

Key Financial Information

Adjusted EBITDA Margin

Financial Statements

Normalized Capital Expenditures

Discussion of our Results of Operations
Indebtedness
Other Disclosures
Disclaimers
Pro Forma Results
Non-IFRS Measures
Forward-Looking Statements
Notice— Independent Auditor's Report— Consolidated Financials

(2)
(3)

Adjusted Sales Revenues(4)2,134.3

214.8

298.5

13.4%

14.0%

55.6

63.3
2,210.7

Pro Forma Adjusted EBITDA
Pro Forma Adjusted EBITDA
Margin(2)Pro Forma Net Financial Debt(5)(1)

Pro Forma Cash Interest Expense(6)Ratio of Pro Forma Net Financial
Debt
to Pro Forma Adjusted EBITDA
Ratio of Pro Forma Adjusted
EBITDA to Pro Forma Cash Interest
ExpenseYear ended December 31,
Fedrigoni GroupPro forma Fiber Group

2021

2022

Net profit……...…..........................................................................

36.5

41.8

Depreciation, amortization and impairment losses

76.9

85.2

Income taxes

24.0

24.5

Finance costs

68.5

149.5

Income from equity-accounted investments in associates

(0.3)

0.5

Finance income(23.7)(56.6)

Non-recurring and certain M&A income and costs(A)

32.9

53.6

Adjusted EBITDA

214.8

298.5

Fedrigoni accounting adjustments(B)(1.7)

Fedrigoni run rate cost savings(C)19.6

Pro Forma Adjusted EBITDA (Fedrigoni)

316.4

Run rate cost savings related to the Acucote Acquisition(D)

2.9

Run rate cost savings related to the Divipa Acquisition(E)

2.2

15.4%

Tageos Acquisition and accounting adjustments(F)5.2

1,024.8

Run rate cost savings related to the Tageos Acquisition(G)

1.6

105.3

Unifol Acquisition and accounting adjustments(H)2.5

Run rate cost savings related to the Unifol Acquisition(I)

4.3

Guarro Acquisition and accounting adjustments(J)3.8

Run rate cost savings related to the Guarro Acquisition(K)

1.0

339.9

3.02x
3.23x

(A) Represents adjustments related to (a) in respect of the year ended
December 31, 2022, (i) €5.1 million of lay-off and reorganization costs,(ii) €21.5 million of costs related to transformation projects, (iii) €27.6
million in costs mainly incurred in relation to the Divipa Acquisition, theTageos Acquisition, the Unifol Acquisition, the Guarro Acquisition, theZuber Acquisition and the joint ownership transaction between Bain
Capital and BC Partners, (iv) €2.9 million in sundry taxes on energy
sales recharged to Fedrigoni S.p.A. by associate Consorzio Canale
Camuzzoni, (v) €5.6 million in income from a settlement agreement
between Fedrigoni S.p.A. and Rink Holding S.r.l. regarding a tax audit
notified by the Brazilian tax authorities concerning some imports
originating from our subsidiary Ritrama S.A. Chile and pursuant towhich the parties settled the Brazil Claim for Tax Damages, (vi) €0.2
million in legal expenses of our Brazilian subsidiaries partially incurredon the claim described above, (vii) €1.5 million stock provision related
to the elimination of specific SKU’s, (viii) €0.8 million arising from someaccounting estimations in 2021 corrected in 2022, (ix) €0.2 million in
Divipa agent termination fees, (x) €1.5 million of gain on disposals of
Divipa assets referring to the sale of an industrial building, (xi) €0.8
million in losses on disposals of Fedrigoni S.p.A. assets, (xii) €0.1 million
in other non-recurring costs, and (b) in respect of the year ended
December 31, 2021, (i) €6.1 million of lay-off and reorganization costs,(ii) €21.5 million of costs related to transformation projects, (iii) €4.9

339.9
million of costs mainly incurred in relation to Acucote Acquisition and
Rimark Acquisition (as defined below), (iv) €3.0 million related to an
insurance reimbursement received by Ritrama Converting in relation
to certain riots and raids in South Africa in 2021, (v) €2.4 million ofother non-recurring costs mainly related to the impairment of Ritrama
Converting assets in relation to the 2021 riots and raids in South Africa,(vi) €0.2 of losses on disposal of capital assets, (vii) €1.2 million derivingfrom the realignment in 2021 of the accounting method adopted by
Ritrama S.p.A. for the allocation of the 2020 MBO (Management By
Objectives) to the Group’s method and the bonuses due and allocatedin connection with M&A transactions, (viii) €1.5 million of stock provision
related to previous years and only accounted for in 2021, (ix) €1.9 millionof gain in relation to the disposal of the remaining business concerning
the production and distribution of special security products and (x) €0.1
million of other non-recurring costs.

100

Annual Financial
Report(1) We define Adjusted EBITDA as net profit before depreciation,amortization and impairment losses, income taxes, finance costs, financeincome and certain income and costs that management does notconsider to be representative of the underlying operations of the businessbecause they either (a) relate to actions taken in relation to transformation
projects in connection with certain acquisitions, (b) are not expected torecur within the next two years or (c) are costs associated with businesscombinations that are expensed as incurred. We define Pro Forma
Adjusted EBITDA as Adjusted EBITDA, adjusted for certain specified items
as set forth below.
Set forth below is a reconciliation of our net profit to Adjusted EBITDA
and Pro Forma Adjusted EBITDA, respectively, for the year ended ended
December 31, 2021 Fedrigoni Group and 2022 Pro forma Fiber Group:

Pro Forma Adjusted EBITDA

Sustainability Report

Accounting Standards(1)

1,602.9(€ million)

The Fedrigoni GroupANNUAL FINANCIAL REPORTKey Financial Information

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis
Introduction
The Acquisition
Pro Forma Results
Key Financial Information
Financial Statements
Discussion of our Results of Operations
Indebtedness
Other Disclosures
Disclaimers
Pro Forma Results
Non-IFRS Measures
Forward-Looking Statements
Notice—Independent Auditor's Report— Consolidated Financials(C) Represents the estimated run-rate effect on Adjusted EBITDA of costsavings that we expect to realize from estimated annualized run-rate
and consisting of (i) cost savings of approximately €15.4 million per year
arising from procurement initiatives, (ii) cost savings of approximately€11.4 million per year arising from operational improvements throughreorganization and efficiency of the production process, (iii) the €1.6
million positive impact to exclude a loss making contract terminatedand connected to the carve out of our banknotes business, minus (iv)estimated annualized run rate cost increases of approximately €8.8
million per year to enable business growth through human capital
investment such as new talent hiring.
(D) In 2021 we acquired Acucote Inc. (“Acucote”) (the “Acucote Acquisition”),
an American developer, manufacturer and distributor of self-adhesivematerials. This adjustment represents the estimated run-rate
contribution to Adjusted EBITDA of (i) cost savings that we expect torealize from estimated annualized run-rate procurement savings ofapproximately €0.9 million arising from an alignment in the purchaseof raw materials common to the Fedrigoni Group and Acucote andsupplier rationalizations and (ii) commercial synergies due to crossselling of Fedrigoni’s labels to Acucote’s customers of approximately€2.0 million.
(E) On February 16, 2022 we acquired the entire share capital ofDistribuidora Vizcaina de Papeles S.L. (“Divipa”) (the “Divipa
Acquisition”), a Spanish manufacturer and distributor of carbonlesspapers, post-it notes, wine making products, cardboards, and officesupplies. This adjustment represents the run-rate effect on Adjusted
EBITDA of synergies deriving from the utilization of Divipa’s unused andavailable capacity to supply Fedrigoni’s customers.
(F) On April 26, 2022, we entered into an agreement for the acquisition of
Tageos SAS (“Tageos”) (the “Tageos Acquisition”), a French company
operating in the design, manufacturing and distribution of RFID
inlays and tags, indirectly through the acquisition of a 50.1% interestin Tageos’s holding company. The Tageos Acquisition adjustment
represents the run-rate effect on Adjusted EBITDA of Tageos, as if
Tageos had been acquired on January 1, 2022.
(G) Represents the estimated run-rate effect on Adjusted EBITDA ofcommercial synergies due to cross-selling of Tageos’ RFID labels to
Fedrigoni’s customers base.

(K) Represents the estimated run-rate effect on Adjusted EBITDA oflogistic synergies due to cross-selling of Guarro products to Fedrigoni’s
customers base.
(2) Adjusted EBITDA Margin represents Adjusted EBITDA divided by sales
revenues for the periods presented. Pro Forma Adjusted EBITDA Margin
is defined as Pro Forma Adjusted EBITDA divided by Adjusted Sales
Revenues for the periods presented.
(3) Normalized Capital Expenditures is defined as investments in intangible
assets and property, plant and equipment, net of disposals of property,
plant and equipment and intangible assets and excluding Extraordinary
Capital Expenditures, that are not incurred in the ordinary courseof business. The Normalized Capital Expenditures to Sales ratio
decreased to 2.97% for the year ended December 31, 2022 from 3.47%
for the year ended December 31, 2021.
The table below sets forth the calculation of Normalized Capital
Expenditures for the years ended December 31, 2021 Fedrigoni Group and2022 Pro forma Fiber Group:

Investments in intangible assets
Investments in property, plantand equipment
Disposals of property, plant andequipment and intangible assets
Extraordinary Capital
Expenditures (A)Normalized Capital
Expenditures

Year ended December 31,
Fedrigoni
Pro formaGroup
Fiber Group
2021
2022
15.5
11.7
52.4

65.2

(1.3)

(7.7)

(11.0)

(5.9)

55.6

63.3

and to exclude net sales for the twelve months ended December
31, 2022 generated by the remaining business concerning the
production and distribution of special security products disposedat the end of 2021 in an amount of €4.7 million. Net sales of Tageos
have been prepared in accordance with French GAAP. French GAAP
differ in certain respects from IFRS. Net sales of Guarro have been
prepared in accordance with Spanish GAAP. Spanish GAAP differ incertain respects from IFRS. Net sales of Unifol have been prepared inaccordance with Turkish GAAP. Turkish GAAP differ in certain respects
from IFRS. As such, so the adjustments representing the contributionof Tageos, of Guarro and of Unifol may differ had they been calculatedon the basis of IFRS. A previously published draft version of this Annual
Financial Report included Adjusted Sales Revenues of €2,266.1 million,
which included €55.4 million of sales revenues generated by Zuber.
(5) Pro Forma Net Financial Debt represents non-current liabilities due tobanks and other lenders plus current liabilities due to banks and other
lenders, minus €122.7 million of cash, on an as adjusted basis after
giving effect to the Transactions as if they had occurred on January
1, 2022. Pro Forma Net Financial Debt (i) includes €364.9 million of theissuance Senior Secured Fixed Rate Notes due 2027 outstanding asof December 31, 2022, (ii) includes €735.1 million of Senior Secured
Floating Rate Notes due 2027 outstanding as of December 31, 2022, (iii)
includes the positive effect of amortized cost calculated on the Notes
and accounted for in an amount of €134.5 and (iv) includes the fair valueof the hedge derivatives at December 31, 2022. Pro Forma Net Financial
Debt includes Tageos.
(6) Pro Forma Cash Interest Expense does not account for interest
expense on Existing Fedrigoni Notes redeemed during the period.
Pro Forma Cash Interest Expense has been presented for illustrative
purposes only on the basis of the Notes and does not purport torepresent what our interest expense would actually have been had
the offering of Notes and their use of proceeds occurred on January 1,
2022, nor does it purport to project our interest expense for any future
period or our financial position at any future date. Pro Forma Cash
Interest Expense includes Tageos.

(A) Represents capital expenditures that are not considered bymanagement to have been incurred in the ordinary course of business
related to a business intelligence software, a new biological wastewater
treatment system and an innovation hub in Verona headquarter.
(4) Adjusted Sales Revenues represents sales revenues adjusted toinclude estimated net sales for the twelve months ended December 31,
2022 generated by (i) Tageos, in an amount of €40.2 million, (ii) Guarro,in an amount of €32.0 million, (iii) Unifol, in an amount of €8.9 million

101

Annual Financial
Report(H) On October 25, 2022 we acquired the entire share capital of Bes
Reklam Ürünleri Sanayi ve Ticaret Anonim Şirketi (“Unifol”) (the “Unifol
Acquisition”), a company incorporated under the laws of Turkey,
operating in the production, distribution and sale of self-adhesivemonomeric, PVC, polymeric PVC, and cast PVC films including vehicle
wrapping solutions. The Unifol Acquisition adjustment represents
the run-rate effect on Adjusted EBITDA of Unifol, as if Unifol had beenacquired on January 1, 2022.
(I) Represents the estimated run-rate effect on Adjusted EBITDA ofsynergies deriving from the utilization of Unifol’s available capacity
to supply Fedrigoni Self-Adhesives customers.

(J) On October 19, 2022 we acquired the entire share capital of Guarro
Casas (“Guarro”) (the “Guarro Acquisition”), a Spanish manufacturerof quality fine papers mainly for binding and creative applications. The
Guarro Acquisition adjustment represents the run-rate effecton Adjusted EBITDA of Guarro as if Guarro had been acquired on
January 1, 2022.

Sustainability Report

Accounting Standards(B) Represents accounting adjustments related to net realized operating
losses in connection with fluctuations in exchange rates in an amountof €1.7 million in connection with commercial transactions.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

Results of Operations

Index

Annual Report 2022

Financial Statements
HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT(€ million)

Year ended December 31,
2021— Management discussion and analysis
Introduction2022
Fedrigoni GroupPro forma Fedrigoni Group

Fiber Bidco S.p.A.

Intercompany eliminations

Pro forma Fiber Group

1,602.9

2,134.3--

2,134.3

-

-

-

-

-

Pro Forma Results

to third Parties

Key Financial Information

to other Group companies

Financial Statements

Total sales revenues

1,602.9

2,134.3--

2,134.3

Discussion of our Results of Operations

Other operating income

32.4

79.8

-

-

79.8

(1,453.5)(1,956.1)(13.0)-(1,969.1)

32.5

41.2

13.0

-

54.2

0.5

(0.7)

-

-

(0.7)

214.8

298.5

-

-

298.5

(0.5)

0.7

-

-

0.7

(32.5)(41.2)(13.0)-(54.2)(76.9)(85.2)--(85.2)

104.8

172.8

(13.0)

-

159.8

0.3

(0.5)

-

-

(0.5)

23.7

55.3

5.5

(4.2)

56.6

Finance costs(68.5)(127.8)(25.9)

4.2(149.5)

Profit/(loss) before tax

60.4

99.7

(33.4)-

66.3

Income taxes
Net profit from continuing
operations
Net profit/(loss)(24.0)(26.7)

2.2-(24.5)

36.5

73.1(31.2)

-

41.8

36.5

73.1

(31.2)-

41.8

Other Disclosures
Accounting Standards
Disclaimers
Pro Forma Results
Non-IFRS Measures
Forward-Looking Statements
Notice— Independent Auditor's Report— Consolidated Financials

Operating expenses
Transformation costs
Other non-recurring expenses /incomeAdjusted EBITDA
Other non-recurring expenses /incomeTransformation costs
Depreciation, amortization andimpairment losses
Operating income
Income from equity-accounted
investments in associates
Financial income

102

Annual Financial
ReportRevenues from sales

Sustainability Report

The Acquisition

Indebtedness

The Fedrigoni GroupANNUAL FINANCIAL REPORTThe following table provides an overview of the resultsof operations of Fedrigoni Group for the year ended
December 31, 2021 and of the pro forma results ofoperations of the Issuer for the year ended December
31, 2022.

HIGHLIGHTS(€ million)

FEDRIGONI GROUP
Sales revenues

ANNUAL FINANCIAL REPORT— Management discussion and analysis

Sales Revenues

Year ended December 31,
2021

2022

Fedrigoni GroupPro forma Fiber Group

1,602.9

2,134.3

32.4

79.8

Cost of materials(925.6)(1.309.9)

Cost of services(305.7)(450.5)

Cost of personnel(249.2)(280.7)

Other operating income(3.6)(16.0)The Acquisition

Depreciation, amortization and impairment losses
Change in inventories of work in progress, semi-finished goods
and finished products
Cost of capitalized in-house work

(76.9)(85.2)

29.1

84.4

1.5

3.5

Operating income

104.8

159.7

Financial income

23.7

56.6

Finance costs(68.5)(149.5)

Net financial income/(costs)(44.7)(92.9)

Share of profits of associates

0.3

(0.5)

Profit before tax

60.4

66.3

Income tax(24.0)(24.5)Net profit/(loss) from continuing operations

36.5

41.8

- attributable to owners of the Parent

36.5

41.3

-

0.5

36.5

41.8

36.5

41.3

-

0.5

Pro Forma Results
Key Financial Information
Financial Statements
Discussion of our Results of Operations
Indebtedness
Other Disclosures
Accounting Standards
Disclaimers
Pro Forma Results
Non-IFRS Measures
Forward-Looking Statements
Notice— Independent Auditor's Report— Consolidated Financials- attributable to non-controlling interests
Net profit/(loss)
Attributable to:- owners of the Parent- non-controlling interests(€ million)

Luxury Packaging and Creative
Solutions Segment
Fedrigoni Self-Adhesives
Segment
Interdivision eliminations
Sales revenues

Year ended December 31,
Fedrigoni
Pro formaGroup
Fiber Group
2021
2022
700.2

903.0

937.6

1,266.5(34.9)(35.2)

1,602.9

2,134.3

Sales revenues in the Luxury Packaging and Creative
Solutions Segment increased by €202.8 million, or
29.0%, to €903.0 million for the year ended December
31, 2022 from €700.2 million for the year ended
December 31, 2021, primarily due to (i) a decrease insales volumes in this segment’s market during the lastquarter 2022, more than offset by the improvementin the mix due to the increase in the luxury packaging
and creative solutions product line, as a result of
the estimated increased market share and due tothe growing demand of paper products as a resultof heightened environmental awareness, which has
led to a reduction in the use of plastic products inpackaging, and to (ii) an increase in sales prices dueto the improved mix of products sold and to a partial
pass through of increasing raw materials and energy
costs. This increase was partially offset by a decrease
from the special security products production and103

Annual Financial
ReportOther costs

Sustainability Report

Introduction

Sales Revenues by Reporting Segment
and Business Line
Sales revenues increased by €531.4 million, or 33.2%,
to €2,134.3 million for the year ended December 31,
2022 from €1,602.9 million for the Luxury Packaging
and Creative Solutions Segment and the FSA
Segment. The table below shows our total sales byreporting segment for the Fedrigoni Group, for theyear ended December 31, 2021 and for the Pro forma
Fiber Group, for the year ended December 31, 2022:

The Fedrigoni GroupSUSTAINABILITY REPORT

Index

Annual Report 2022

Discussion of our Resultsof Operations

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis
Introduction
The Acquisition
Pro Forma Results
Key Financial Information
Financial Statements
Discussion of our Results of Operations
Indebtedness
Other Disclosures
Disclaimers
Pro Forma Results
Non-IFRS Measures
Forward-Looking Statements
Notice—Independent Auditor's Report— Consolidated Financials

Italy
Luxury Packaging andCreative Solutions Segment(*)
Fedrigoni Self-Adhesives
Segment (*)
Rest of Europe
Luxury Packaging andCreative Solutions Segment(*)
Fedrigoni Self-Adhesives
Segment (*)
Rest of World
Luxury Packaging andCreative Solutions Segment(*)
Fedrigoni Self-Adhesives
Segment (*)
Total

Year ended December 31,
Fedrigoni
Pro formaGroup
Fiber Group
2021
2022
393.5

508.5

242.8

288.9

164.3

234.5

752.2

982.2

301.2

388.2

471.9

613.3

457.2

643.6

156.2

225.9

301.4

418.7

1,602.9

2,134.3(*) Sales revenues by segment include interdivision sales.

104

Annual Financial
ReportSales revenues in Italy increased by €115.0 million, or
29.2%, to €508.5 million for the year ended December
31, 2022 from €393.5 million for the year ended
December 31, 2021. This increase was primarily due
to an increase in sales volumes in the Fedrigoni SelfAdhesives Segment and to an improved products mix
sold in the Luxury Packaging and Creative Solutions
Segment. In the Luxury Packaging and Creative
Solutions Segment, the increase was due to theimproved mix of products sold and to a partial passthrough of increasing raw materials and energy costs,

Sales revenues in the Rest of Europe increased by€230.0 million, or 30.6%, to €982.2 million for theyear ended December 31, 2022 from €752.2 million
for the year ended December 31, 2021. This increase
was primarily due to an increase in sales volumes inboth the Luxury Packaging and Creative Solutions
Segment and the Fedrigoni Self-Adhesives Segment.
We experienced an increase in volumes of our sales
revenues in the Luxury Packaging and Creative
Solutions Segment, an improved mix of products
sold and a partial pass through of the increasing
raw materials and energy costs. This increase waspartially offset by a decrease from the special security
products production and distribution business that
we disposed at the end of 2021. In the Fedrigoni SelfAdhesives Segment we experienced (i) increasing
demand in the wine sector, (ii) higher demand for
self-adhesive labels in the food & beverage andthe home & personal care sectors and a recovery
in the industrial sector, (iii) a partial pass through ofincreasing raw materials and variable costs and (iv) an
increase in sales volumes due to the consolidation of
Divipa and Unifol starting from February and October
2022 respectively. In the last quarter 2022, thedemand in the FSA Segment started to cool down due
to generalized destocking along the entire value chain
and across geographies.

Sustainability Report

Accounting Standards(€ million)

which was partially offset by a decrease in sales
volumes. In the Fedrigoni Self-Adhesives Segment
the increase was due particularly to the wine & spirits,
food & beverage and home & personal care sectors
and a partial pass through of increasing raw materials
and variable costs. In the last quarter 2022, thedemand in the FSA Segment started to cool down due
to generalized destocking along the entire value chain
and across geographies.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

distribution business that we disposed of at theend of 2021.
Sales revenues in the Fedrigoni Self-Adhesives
Segment increased by €328.9 million, or 35.1%, to€1,266.5 million for the year ended December 31, 2022
from €937.6 million for the year ended December 31,
2021. This increase was primarily due to an increasein sales volumes as a result of (i) the consolidation of
Acucote and Rimark starting from the second half
2021, (ii) the consolidation of Divipa starting from 2022
and (iii) increased demand for wine & spirits, food &beverage and home & personal care products. In thelast quarter 2022, the demand started to cool down
due to generalized destocking along the entire value
chain and across geographies.
In response to inflationary pressure, we further
increased sales prices to pass through large portionsof increases price of raw materials, energy costs,
packaging materials and freight costs.

Sales Revenues by Geographic Area
The following tables show our total sales by country
and respective reporting segment for the Fedrigoni
Group, for the year ended December 31, 2021 andfor the Pro forma Fiber Group, for the year ended
December 31, 2022:

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis
Introduction
The Acquisition
Pro Forma Results
Key Financial Information
Financial Statements
Discussion of our Results of Operations
Indebtedness
Other Disclosures
Disclaimers
Pro Forma Results
Non-IFRS Measures
Forward-Looking Statements
Notice— Independent Auditor's Report— Consolidated Financials

Other operating income increased by €47.4 million, or
146.2%, to €79.8 million for the year ended December
31, 2022 from €32.4 million for the year ended
December 31, 2021. This increase was mainly due
to (i) a price increase and to the higher volumes ofelectricity sold, (ii) the gas tax credits granted by the
Italian governments and (iii) €5.6 million in income froma settlement agreement between Fedrigoni S.p.A. andRink Holding S.r.l. regarding a tax audit notified by theBrazilian tax authorities concerning some imports
originating from our subsidiary Ritrama S.A. Chile andpursuant to which the parties settled the Brazil Claim
for Tax Damages.

Cost of services increased by €144.8 million, or 47.4%,
to €450.5 million for the year ended December 31,
2022 from €305.7 million for the year ended December
31, 2021. The increase was primarily due (i) an increasein transport costs, in both the Luxury Packaging andCreative Solutions Segment and the FSA Segment,
the growth of sales in the Rest of the World andhigher volumes in the FSA Segment, (ii) an increasein the utility costs, (iii) an increase in the consultancy
fees due to M&A activities, (iv) an increase in thecommissions paid and (v) an increase in the third
parties processing. Cost of services accounted
for 21.1% of our sales revenues for the year ended
December 31, 2022 from 19.1% for the year ended
December 31, 2021.

Cost of Materials
The cost of materials increased by €384.3 million, or
41.5%, to €1,309.9 million for the twelve months ended
December 31, 2022 from €925.6 million for the year
ended December 31, 2021. This increase was due to(i) the improved mix of products sold, (ii) an increasein the raw materials costs, including pulp costs,
and (iii) an increase in the Fedrigoni Self-Adhesives
Segment due to the consolidation of Acucote andRimark only starting from the second half 2021 and theconsolidation of Divipa and Unifol which we acquiredin 2022. Costs of materials accounted for 61.4% of oursales revenues for the year ended December 31, 2022
from 57.7% for the year ended December 31, 2021.

Cost of Personnel

Sustainability Report

Accounting Standards

Cost of Services

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Sales revenues in the Rest of World increased by€186.4 million, or 40.8%, to €643.6 million the year
ended December 31, 2022 from €457.2 million forthe year ended December 31, 2021. In the Luxury
Packaging and Creative Solutions Segment thisincrease was primarily due to an increase insales prices due to the improved mix of products
particularly due to the estimated increased market
share heightened environmental awareness which
has led to a reduction in the use of plastic productsin packaging sold and to a partial pass through ofincreasing raw materials and energy costs. This
increase was partially offset by (i) a decrease in sales
volumes due to a weak demand in the last quarter
2022 and (ii) a decrease from the special security
products production and distribution business that
we disposed at the end of 2021. In the Fedrigoni SelfAdhesives Segment the increase was primarily due to(i) an increase in sales volumes due to higher demandin the offset sheet sector, (ii) a partial pass through ofincreasing raw materials and variable costs and to (iii)the contribution of the consolidation of Acucote andRimark that started only in the second half 2021. In thelast quarter 2022, the demand in the FSA Segment
started to cool down due to generalized destocking
along the entire value chain and across geographies.

Other Operating Income

Index

Annual Report 2022

105

Annual Financial
ReportCost of personnel increased by €31.5 million, or 12.7%,
to €280.7 million for the year ended December 31,
2022 from €249.2 million for the year ended December
31, 2021. This increase was primarily due to (i) a
new management team appointed to continue ourtransformation process and costs incurred in relation
to personnel turnover, (ii) an increase in production
in both the Luxury Packaging and Creative Solutions
Segment and the Fedrigoni Self-Adhesives Segment,(iii) an increase in the bonuses accrued and (iv) an
increase in the costs generated by the Fedrigoni
Self-Adhesives Segment due to the consolidation of
Acucote that contributed to the result starting fromthe second half 2021 and the consolidation of Divipa
starting from 2022. Cost of personnel accounted
for 13.2% of our sales revenues for the year ended
December 31, 2022 from 15.5% for the year ended
December 31, 2021.

Other Costs

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis
Introduction
The Acquisition
Pro Forma Results
Key Financial Information
Financial Statements
Discussion of our Results of Operations
Indebtedness
Other Disclosures
Disclaimers
Pro Forma Results
Non-IFRS Measures
Forward-Looking Statements
Notice— Independent Auditor's Report— Consolidated Financials

Depreciation, amortization and impairment losses
increased by €8.3 million, or 10.8%, to €85.2 million forthe year ended December 31, 2022 from €76.9 million
for the year ended December 31, 2021. The increasein the depreciation, amortization and impairment
losses for the year ended December 31, 2022 wasprimarily due to (i) the consolidation of Acucote which
contributed starting from the second half 2021, (ii)the consolidation of Divipa starting from 2022, (iii)
the impact on the amortization of new software
capitalized during 2021 and on the depreciationof new leases related to buildings and (iv) the
impairment of tangible asset related to the lossof the recoverable amount emerging during an
intragroup business transfer.

Income Taxes
Income taxes increased by €0.5 million, or 2.1%, to€24.5 million of cost for the year ended December 31,
2022 from €24.0 million of income for the year ended
December 31, 2021. The increase of the income taxes
for the twelve months ended December 31, 2022
compared to the same period in 2021 was driven
mainly by the increased profit before tax for thecurrent period.

Operating Income
Operating income increased by €54.9 million, or 52.4%,
to €159.7 million for the year ended December 31, 2022
from €104.8 million for the year ended December 31,
2021. This increase was primarily due to (i) an increasein sales volumes in the Fedrigoni Self-Adhesives
Segment, (ii) a better mix in products sold in both the
Luxury Packaging and Creative Solutions Segment
and Fedrigoni Self-Adhesives Segment, (iii) an
increase in other operating revenues and (iv)the contribution of the new entities acquired during
the second half 2021 and during 2022. The increase
was partially offset by higher raw materialand service costs.
Adjusted EBITDA
Adjusted EBITDA increased by €83.7 million, or 39.0%,
to €298.5 million for the year ended December 31,
2022 from €214.8 million for the year ended December
31, 2021. This increase was primarily due to (i) an
increase in sales revenues due to higher volumes
and a better product mix sold, (ii) an increase in otheroperating revenues, (iii) the contribution of the newentities acquired during the second half 2021 andduring 2022 and (iv) a reduction of the incidenceof operating expenses on sales revenues, as aresult of transformation projects which resulted
in improvements in pass through of costs andoptimization in procurement.

Sustainability Report

Accounting Standards

Depreciation, Amortization
and Impairment Losses

Net financial costs increased by €48.2 million, or
107.9%, to €92.9 million for the year ended December
31, 2022 from €44.7 million for the year ended
December 31, 2021. This increase was primarily
due to the 2024 and 2026 Notes amortized costs
expensed in 2022 as consequence of the complete
redemption during November 2022, an increase in theinterest costs arising from the Notes issued by Fiber
Bidco S.p.A. and to an increase in the losses on thederivatives financial instruments partially offset by theincrease in gains on net exchange rate fluctuations.

Key Earning Figures

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Other costs increased by €12.4 million, or 344.6%, to€16.0 million for the year ended December 31, 2022
from €3.6 million for the year ended December 31,
2021. The increase is mainly due to the released of
the risk provision in 2021 related to the cessation ofrisks especially in the security business. Other costs
accounted for 0.7% of the Group’s sales revenues forthe year ended December 31, 2022 from 0.2% for theyear ended December 31, 2021.

Net Financial Income/(Costs)

Index

Annual Report 2022

Annual Financial
Report106

IndexAnnual Report 2022
Liquidity and Capital Resources

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORTThe following tables show our Adjusted EBITDA byreporting segment for the Fedrigoni Group for theyear ended December 31, 2021 and for the year ended
December 31, 2022:

ANNUAL FINANCIAL REPORT— Management discussion and analysis
Introduction
The Acquisition
Pro Forma Results
Key Financial Information
Financial Statements
Discussion of our Results of Operations
Indebtedness

Year ended December 31, 2021
Fedrigoni Group

Sales to third Parties
Sales to other Group
companies
Total sales revenues
Other operating expense /incomeTransformation costs
Other non-recurring
expenses / income
Adjusted EBITDA

LPCS

FSA

667.8

935.1

34.4

2.5

700.2

937.6

(628.8)(878.2)

20.4

12.2

(1.1)

1.5

90.7

124.1

Other Disclosures
Disclaimers(€ million)

Fedrigoni GroupPro Forma Results
Non-IFRS Measures
Forward-Looking Statements
Notice— Independent Auditor's Report—

Consolidated Financials

Year ended December 31, 2022

Sales to third Parties
Sales to other Group
companies
Total sales revenues
Other operating expense /incomeTransformation costs
Other non-recurring
expenses / income
Adjusted EBITDA

LPCS

FSA

871.1

1.263,2

31.8

3.3

903.0

1,266.5(778.4)(1,124.9)

29.0

12.1

(8.5)

(0.1)

145.0

153.6

Cash FlowsThe table below sets forth a summary of thecondensed consolidated statements of cash flows of(i) the Fedrigoni Group, for the year ended December
31, 2021, (ii) the Fedrigoni Group, for the year ended
December 31, 2022 and (iii) our pro forma results, forthe year ended December 31, 2022.
(€ million)

Year ended December 31,
Pro
Fedrigoni Fedrigoni forma
Group
Group
Fiber
Group
2021
2022
2022
189.9

239.3

(87.3)(104.5)(232.6)(1,872.2)(96.5)(168.1)

2,077.8(11.1)(161.4)

118.2

273.3

265.3

3.0

1.0

(0.7)

265.3

104.8

117.5

107

Annual Financial
ReportCash flow from operating
activities
Cash flow used ininvesting activities
Cash flow used infinancing activities
Increase/(decrease)in cashCash at the beginning of
the period
Effects of exchange ratechanges on the balanceof cash held in foreign
currencies
Cash at the endof the period

Sustainability Report

Accounting Standards

Adjusted EBITDA in the Fedrigoni Self-Adhesives
Segment increased by €29.5 million, or 23.8%, to€153.6 million for the year ended December 31, 2022
from €124.1 million for the year ended December 31,
2021. This increase was primarily due to (i) an increasein sales volumes, (ii) a better mix of products sold andhigher demand in the wine sector, (iii) the consolidationof Rimark and Acucote starting from the second half
2021 and (v) the consolidation of Divipa starting in
2022. The increase was partially offset by higher raw
materials, energy costs, packaging materials andfreight costs.

The Fedrigoni Group(€ million)

Adjusted EBITDA in the Luxury Packaging and Creative
Solutions Segment increased by €54.3 million, or 59.9%,
to €145.0 million for the year ended December 31, 2022
from €90.7 million for the year ended December 31,
2021. This increase was primarily due to (i) an increase insales revenues, (ii) a better mix of products sold and (iii)
an increase in other operating revenues. The increase
was partially offset by an higher incidence of theoperating costs on sales revenues.

Overview
Our principal sources of liquidity are cash flows
from operating activities, bank credit lines and otherforms of indebtedness, including our Revolving Credit
Facility. Our primary needs for liquidity are to fundworking capital, repay debt and make investments
to develop our business. We believe that the current
cash flow from operating activities and existing bankfinancing provides us with sufficient liquidity to meetcurrent working capital needs.

Annual Report 2022

FEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis
Introduction
The Acquisition
Pro Forma Results
Key Financial Information
Financial Statements
Discussion of our Results of Operations
Indebtedness
Other Disclosures
Disclaimers
Pro Forma Results
Non-IFRS Measures
Forward-Looking Statements
Notice— Independent Auditor's Report— Consolidated Financials

Trade Working Capital
The table below sets forth a summary of the change intrade working capital of (i) the Fedrigoni Group, for theyear ended December 31, 2021, (ii) the Fedrigoni Group,for the year ended December 31, 2022 and (iii) our pro
forma results, for the year ended December 31, 2022.
(€ million)

Change in inventories
Change in Trade Working
CapitalYear ended December 31,
Pro
Fedrigoni Fedrigoni forma
Group
Group
Fiber
Group
2021
2022
2022
(11.6)

80.2

40.5

150.5

72.1

(124.7)(79.5)(74.0)

18.0

59.4

78.3

(66.2)

108

Annual Financial
ReportChange in tradereceivables
Change in trade payables

In connection with the Acquisition, Fiber Bidco also
entered into a revolving credit facility (the “Revolving
Credit Facility”), with availability of up to €150.0
million. As of December 31, 2022, our Revolving Credit
Facility was undrawn. During the first months 2023
the Revolving Credit Facility of €150.0 million was
allocated to ancillary facility for €11.250 million and theremainder drawn for €71.0 million, making the related
amount available in the Group’s cash holdings.
We or an affiliate may, from time to time, dependingon market conditions and other factors, repurchase or
acquire an interest in our outstanding indebtedness,whether or not such indebtedness trades above or
below its face amount, for cash and/or in exchange forother securities or other consideration, in each casein open market purchases and/or privately negotiatedtransactions or otherwise.

Sustainability Report

Accounting Standards

In connection with the Acquisition, Fiber Bidco issued€300,000,000 in aggregate principal amount of 11.00%
Senior Secured Notes due 2027 (the “Fiber Fixed Rate
Notes”) and €577,967,696 Senior Secured Floating
Rate Notes due 2027 (the “Fiber Floating Rate Notes”).
In addition, Fiber Bidco entered into a private exchange
pursuant to which Fiber Bidco issued €147,032,304
in aggregate principal amount of Senior Secured
Floating Rate Notes (the “Exchanged Notes”), having
substantially the same terms as the Fiber Floating
Rate Notes, to certain holders of Fedrigoni’s existingsenior secured notes, in exchange for such seniorsecured notes. The Exchanged Notes were exchanged
for additional Fiber Floating Rate Notes in an equal
aggregate principal amount issued on the closing dateof the Acquisition.
On November 9, 2022, Fiber Bidco issued€56,349,000 in aggregate principal amount ofadditional Fiber Fixed Rate Notes. In addition, Fiber
Bidco privately placed €8,564,000 million in aggregate
principal amount of additional Fiber Fixed Rate
Notes and €10,087,344 in aggregate principal
amount of additional Fiber Floating Rate Notes
in a private placement.

The Fedrigoni GroupANNUAL FINANCIAL REPORTIn the year ended December 31, 2022, operating
activities used a cash flow of €87.3 million,
primarily resulting from advisory costs related
to the Acquisition.
The Acquisition and the acquisition of Zuber
accounted for the majority of the €1,872.2 cash
outflows resulting from investing activities. €18.6
million of cash outflows resulting from investing
activities were used to acquire new tangible andintangible assets net of disposals and financial
income received.
Financing activities generated a cash flow of€2,077.8 million primarily consisting of (i) €1,386.7
million resulting from an equity contribution inconnection with the Acquisition, (ii) €1,100.0 of Notesand (iii) €308.0 million in the form of shareholder
loans entered into in connection with the acquisition,
primarily offset by (iv) €615.4 for the redemption of the
Existing Fedrigoni Notes.

Index

HIGHLIGHTS

Indebtedness

Other Disclosures

Disclaimers

Non-IFRS Measures

Index

Annual Report 2022

Pro Forma Results
HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORTAs of the date of this Annual Financial Report, there
have been no material changes to our business,risk factors, management and related-party
transactions since November 30, 2022, otherthan as disclosed herein.

— Management discussion and analysis
Introduction

Accounting Standards

The Acquisition
Pro Forma Results
Key Financial Information
Financial Statements
Discussion of our Results of Operations
Indebtedness
Other Disclosures
Disclaimers
Pro Forma Results
Non-IFRS Measures
Forward-Looking Statements
Notice— Independent Auditor's Report— Consolidated Financials

Sustainability Report

Accounting Standards

109

Annual Financial
ReportUnless otherwise stated, the financial information
presented herein has been prepared in accordancewith IFRS.
The Annual Financial Statements and various othernumbers and percentages set forth in this Annual
Financial Report are presented in Euro, rounded to thenearest hundred thousand, unless otherwise noted.
Therefore, discrepancies in the tables between totals
and the sums of the amounts listed may occur due tosuch rounding.
Our income statements have been prepared using
the “nature of expense” rather than the “cost of sales”
method. In the nature of expense method, expenses
are classified in the income statement according
to their nature (for example, cost of materials andpersonnel expenses) and not among various functions
within the entity. As a result, income statements
presented in accordance with the nature of expense
method do not show gross profit. Income statements
presented in accordance with the cost of sales
method, by contrast, classify expenses according totheir function as part of cost of sales (for example, thecosts of distribution or administrative activities). Profit,
however, is unaffected regardless of whether thenature of expense or cost of sales method is chosen.

In this Annual Financial Report, we present certain
financial measures that are not recognized by IFRS or
any other generally accepted accounting principles
and that may not be permitted to appear on the faceof our financial statements or footnotes thereto (our“Non-IFRS Measures”), including information provided
under “Key Financial Information,” and may havebeen derived from management estimates and havenot been audited or otherwise reviewed by outside
auditors, consultants or experts.
Our Non-IFRS Measures are calculated as describedin the footnotes to the table included under Key
Financial Information above. By eliminating potential
differences in results of operations between periods
or companies caused by factors such as depreciation
and amortization, historical cost and age of assets,financing and capital structures and taxation
positions or regimes, we believe EBITDA-based
measures and other Non-IFRS Measures can provide
a useful additional basis for comparing the current
performance of the underlying operations
being evaluated.
Different companies and analysts may calculate
EBITDA-based measures and other Non-IFRS
Measures differently, so comparisons among
companies on this basis should be done carefully.
EBITDA-based measures and other Non-IFRS
Measures are not measures of performance under
IFRS and should not be considered in isolation orconstrued as substitutes for operating profit or net
profit as an indicator of our operations in accordancewith IFRS. As such, you should be relying primarily on
our Financial Statements and using these Non-IFRS
Measures only as a supplement to evaluate
our performance.

The Fedrigoni GroupANNUAL FINANCIAL REPORTIn this Annual Financial Report, we present Pro Forma
Adjusted EBITDA to give effect to certain accounting
adjustments, run-rate effects of certain cost savings
that we expect to realize and the estimated runrate effect of other cost savings that we expect torealize. The unaudited adjustments to our Adjusted
EBITDA are based on currently available financial
information and certain assumptions that we believe
are reasonable and factually supportable.
Neither the pro forma financial information nor
the Pro Forma Adjusted EBITDA included herein has
been prepared in accordance with the requirementsof Regulation S-X of the U.S. Securities Act or any
generally accepted accounting standards. Neither
the assumptions underlying the pro forma financial
information nor the Pro Forma Adjusted EBITDA
have been audited or reviewed in accordance withany generally accepted accounting standards. Any
reliance you place on this information should fully takethis into consideration.
The pro forma financial and other information
presented in this Annual Financial Report is themathematical sum of its components, has been
prepared for illustrative purposes only and has notbeen calculated on the basis of IFRS or any otherrecognized accounting standards.

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis
Introduction
The Acquisition
Pro Forma Results
Key Financial Information
Financial Statements
Discussion of our Results of Operations
Indebtedness
Other Disclosures
Disclaimers
Pro Forma Results
Non-IFRS Measures

Certain information contained in this Annual Financial
Report may constitute “forward-looking statements,”
which may be identified by the use of forward-looking
terminology such as “will,” “would,” “expect,” “project,”“estimate,” “intend,” “maintain,” or “continue” or thenegatives thereof or other variations thereon orcomparable terminology or other forms of projections.
By their nature, forward-looking statements involverisks and uncertainties. You are cautioned thatforward-looking statements are not guarantees of
future performance and that due to various risks
and uncertainties, actual events or results or theactual performance may differ materially from thosereflected or contemplated in such forward-looking
statements or projections. All forward‐looking
statements, projections, objectives, estimates andforecasts contained in this presentation apply only
as of the date hereof and we do not undertake any
obligation to update this information, whether as aresult of new information, future events or otherwise,
except as may be required by applicable law.

This Annual Financial Report constitutes a public
disclosure of inside information under Regulation (EU)596/2014 (April 16, 2014).

Sustainability Report

Accounting Standards

NoticeThe Fedrigoni GroupANNUAL FINANCIAL REPORT

Forward-Looking Statements

Index

Annual Report 2022

Forward-Looking Statements
Notice— Independent Auditor's Report— Consolidated Financials

Annual Financial
Report110

IndexAnnual Report 2022
Deloitte & Touche S.p.A.
Via Enrico Fermi, 11/A
37135 Verona
ItaliaHIGHLIGHTS

Tel: +39 02 83327045
Fax: +39 02 83322593
www.deloitte.it

FEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis

The Fedrigoni GroupANNUAL FINANCIAL REPORTINDEPENDENT AUDITOR’S REPORTTo the Sole Shareholder ofFiber Bidco S.p.A.

— Independent Auditor's Report

REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS— Consolidated Financials

OpinionWe have audited the consolidated financial statements of Fiber Bidco S.p.A. and its subsidiaries (the“Fiber Group”), which comprise the consolidated statement of financial position as at December 31,
2022, and the consolidated income statement, the consolidated statement of comprehensive income,the consolidated statement of cash flows and the consolidated statement of changes in equity for theperiod between August 29, 2022 to December 31, 2022, and notes to the consolidated financial
statements, including a summary of significant accounting policies.

Sustainability Report

In our opinion, the accompanying consolidated financial statements give a true and fair view of theconsolidated financial position of the Fiber Group as at December 31, 2022, and of its consolidated
financial performance and its consolidated cash flows for the period between August 29, 2022 to
December 31, 2022 in accordance with International Financial Reporting Standards as adopted by theEuropean Union.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Auditof the Consolidated Financial Statements section of our report. We are independent of Fiber Bidco S.p.A.
in accordance with the ethical requirements applicable under Italian law to the audit of the financial
statements. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
Other aspects
This auditors’ report is not issued for Italian statutory purposes, due to the fact that Fiber Bidco S.p.A.
has opted for the exemption foreseen by Art. 27, n° 3, of Italian Legislative Decree 127/1991 and has
prepared the consolidated financial statements on a voluntary basis.
Responsibilities of the Directors for the Consolidated Financial Statements
The Directors are responsible for the preparation of consolidated financial statements that give a trueand fair view in accordance with International Financial Reporting Standards as adopted by the European
Union, and, within the terms established by law, for such internal control as the Directors determine is
Sede Legale: Via Tortona, 25 - 20144 Milano | Capitale Sociale: Euro 10.328.220,00 i.v.
Codice Fiscale/Registro delle Imprese di Milano Monza Brianza Lodi n. 03049560166 - R.E.A. n. MI-1720239 | Partita IVA: IT 03049560166
Il nome Deloitte si riferisce a una o più delle seguenti entità: Deloitte Touche Tohmatsu Limited, una società inglese a responsabilità limitata (“DTTL”), le member firm aderenti al suo network e
le entità a esse correlate. DTTL e ciascuna delle sue member firm sono entità giuridicamente separate e indipendenti tra loro. DTTL (denominata anche “Deloitte Global”) non fornisce servizi aiclienti. Si invita a leggere l’informativa completa relativa alla descrizione della struttura legale di Deloitte Touche Tohmatsu Limited e delle sue member firm all’indirizzo
www deloitte com/about.
© Deloitte & Touche S.p.A.

111

Annual Financial
ReportAncona Bari Bergamo Bologna Brescia Cagliari Firenze Genova Milano Napoli Padova Parma Roma Torino Treviso Udine Verona

IndexAnnual Report 2022

HIGHLIGHTS
2

FEDRIGONI GROUP
necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.

ANNUAL FINANCIAL REPORTIn preparing the consolidated financial statements, the Directors are responsible for assessing the Fiber
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless they have identified the existence of theconditions for the liquidation of Fiber Bidco S.p.A. or the termination of the business or have no realistic
alternatives to such choices.

— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials• obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Fiber Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the Fiber Groupaudit. We remain solely responsible for our audit opinion.

The Fedrigoni GroupSUSTAINABILITY REPORT

3

We communicate with those charged with governance, identified at an appropriate level as required by
ISA Italia, regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’sreport that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with International Standards on Auditing (ISA Italia) will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error andare considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with International Standards on Auditing (ISA Italia), we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:

DELOITTE & TOUCHE S.p.A.

Luca Lorenzetti
Partner
Verona, Italy
April 28, 2023

Sustainability Report• identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control;• obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Fiber Group’s internal control;• evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Directors;• conclude on the appropriateness of management’s use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Fiber Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Fiber Group tocease to continue as a going concern;

112

Annual Financial
Report• evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation;

IndexAnnual Report
Report 2022
2022
AnnualHIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORTThe Fedrigoni GroupANNUAL FINANCIAL REPORT

Sustainability Report

113

Annual Financial
ReportConsolidated
Financials

Consolidated Statement of Financial Position(in thousands of Euros)

FEDRIGONI GROUP

Non-current assets
Property, plant and equipment
Intangible assets
Investment property
Equity-accounted investments
Tax credits
Deferred tax assets
Other non-current assets
Derivatives
Total non-current assets
Current assets
Inventories
Trade receivables
Tax credits
Other current assets
Cash
Total current assets
Non-current assets held for sale

SUSTAINABILITY REPORTANNUAL FINANCIAL REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

At December 31,
Note(in thousands of Euros)
2022

6
7
8
9
10
11
13
16

543,947
2,175,070
223
126,059
17,42656,621
15,5401,268
2,936,154

12
14
10
13
15

447,217
118,793
4,505
104,783
117,548
792,846
1,296

6

Sales revenues
Other operating income
Cost of materials
Cost of services
Cost of personnel
Other costs
Depreciation, amortization and impairment losses
Change in inventories of work in progress, semifinished goods and finished products
Cost of capitalized in-house work

Period ended December 31,
Note
24
25
26
27
28
29
30

2022
126,352
20,655(73,195)(50,031)(19,949)(236)(9,758)(9,572)
2,609

Operating Loss

(13,125)

Financial income
Finance costs
Net financial costs

8,320(56,090)(47,770)31

Share of losses of associates(880)

3,730,296

Loss before tax

Share capital
Reserves and retained earnings/losses
Equity attributable to owners of the parent
Non-controlling interests
Total equity
Non-current liabilities
Due to banks and other lenders
Due to controlling shareholder
Employee benefits
Provisions for risks and charges
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Current liabilities
Due to banks and other lenders
Due to controlling shareholder
Trade payables
Tax liabilities
Other current liabilities
Derivatives
Total current liabilities

40,0001,250,359
1,290,359
2,323
1,292,682

Income tax
Net loss from continuing operations- attributable to owners of the Parent- attributable to non-controlling interests(45,911)(45,882)(29)

1,013,863
299,155
15,112
31,979246,468
13,6691,620,246

Net loss(45,911)

18
19
22
23
22
16

Attributable to:- owners of the Parent- non-controlling interests
Loss per share (in Euros): - basic and diluted
Loss per share (in Euros): - basic and diluted fromcontinuing operations

32

33

15,864(45,882)(29)(1.15)(1.15)

119,825
3,337
573,013
14,42392,035
14,735817,368
2,437,614
3,730,296

114

Annual Financial
ReportTotal liabilities
Total equity and liabilities

18
19
20
21
11
22

(61,775)

Sustainability Report

Total assets

17

The Fedrigoni GroupHIGHLIGHTS

Consolidated Income Statement

Index

Annual Report 2022

Consolidated Statement of Comprehensive Income

Index

Annual Report 2022

HIGHLIGHTS(in thousands of Euros)

FEDRIGONI GROUP

Loss for the year

SUSTAINABILITY REPORT

Other comprehensive income

ANNUAL FINANCIAL REPORT

Actuarial gains on defined benefit plans

2,107

Income tax relating to actuarial losses

(128)

2022

Items that will not be reclassified subsequently to profit or loss:

1,979— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position

Items that will be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations

Consolidated Income Statement

Effective portion of losses on hedging instruments (cash flow hedge)

Consolidated Statement of Comprehensive Income

Income tax relating to cash flow hedge

Notes to the Consolidated Financial Statements(3,974)(64,529)
18,357(50,146)

Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity(45,911)

The Fedrigoni Group— Management discussion and analysis

Period ended December 31,(48,167)

Comprehensive loss for the year

(94,078)

Loss attributable to owners of the Parent(93,976)

Loss attributable to non-controlling interests

Sustainability Report

Other comprehensive loss for the period, net of income tax(102)

Annual Financial
Report115

Consolidated Statement of Cash FlowsHIGHLIGHTS(in thousands of Euros)

FEDRIGONI GROUPSUSTAINABILITY REPORT

Period ended December 31(in thousands of Euros)

Period ended December 31

2022

Investments in intangible assets(6,373)

Loss before tax(61,775)

Investments in property, plant and equipment(20,243)

Adjustment for:-

Disposals of property, plant and equipment and intangible assets

6,473

Depreciation of property, plant and equipment

5,886

Acquisition of subsidiaries or business units net of cash

Amortization of intangible assets

3,753

Financial income received(1,853,483)
1,381

Depreciation of investment property

2

Net cash generated/(used) investing activities

Impairment losses on tangible and intangible assets

117

Share capital established

40,000Charge to provision for severance indemnities

189

Share premium reserve

1,346,660(Releases from)/charges to risk provisions(88)

Finance costs paid

(116,853)(Gains)/Losses on disposals of property, plant and equipment

15

Increase in securities/notes

1,100,000

Charges to provision for doubtful debts

1,010

New medium/long-term bank loans raised

313,226

Consolidated Income Statement

Income from equity-accounted investments in associates880

New short-term bank loans raised

11.419Consolidated Statement of Comprehensive Income

Net financial costs/(income)

33,401

Repayment of securities/notes(615,415)

Consolidated Statement of Cash Flows

Derivatives fair value adjustment
Cash flow from operating activities before movements inworking capital and income taxes paid
Change in trade receivables

14,369

Repayment of financing from leasing companies(1,283)(2,241)

Net cash generated/(used) financing activities

2,077,754

40,543

Net increase/(decrease) in cash for the period

118,246

Change in trade payables(124,695)

Change in inventories

17,960Use of provisions for risks(313)

Use of provisions for personnel(1.055)

Change in other assets / liabilities(17,462)

Cash generated by operations before income taxes paid

(87,263)— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Net cash generated by operating activities(1,872,245)-

Sustainability Report

Income taxes paid

Cash at the beginning of the period
Effects of exchange rate changes on the balance of cash held in
foreign currencies
Cash at the end of the period

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

(698)
117,548(87,263)

Annual Financial
Report116

HIGHLIGHTS

Consolidated Statement of Changes In Equity(in thousands of Euros)
Balance at August 29, 2022

SUSTAINABILITY REPORT— Independent Auditor's Report

Actuarial gains/(losses)
Cash Flow Hedge net of the tax
effectExchange rate difference
Other items of Comprehensive
incomeIncreases— Consolidated Financials

ANNUAL FINANCIAL REPORT— Management discussion and analysis

Share capital

Share premium reserve

Other reserves

Profit/(loss) of the year

-

-

-

-

Equity attributable toowners of the Parent-(45,882)(45,882)

Net result of the period(45,911)

1,979

1,979

(46,172)(46,172)(46,172)(3,901)(3,901)(73)(3,974)(93,976)(102)(94,078)(45,882)250

1,385,642

1,385,642

Other changes

(571)

(571)

(571)

Consolidated Statement of Financial Position

Area Changes

(736)

(736)

2,425

1,689

Consolidated Income Statement

Balance at December 31, 2022

1,290,359

2,323

1,292,682

40,0001,345,392

(29)

1,979

(48,094)
40,000Capital and reserves attributable
Consolidated Net Equity
to non-controlling interests-

1,345,392(49,151)(45,882)

The Fedrigoni GroupFEDRIGONI GROUP

Index

Annual Report 2022

Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Sustainability Report
Annual Financial
Report117

IndexAnnual Report 2022

Notes to the Consolidated
Financial Statements
Introduction

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

subscribed by a fund affiliated with the seller as partof the consideration for the Acquisition. In addition, aminority co-investor lent €8.0 million to Midco as partof the consideration for the Acquisition (the “Minority
Vendor Loan”).
The proceeds of the Vendor Notes, net of certain
fees, and of the Minority Vendor Loan were onlent by Midco to the Issuer through a subordinatedshareholder loan. The Vendor Notes and Minority
Vendor Loan are solely obligations of Midco andhave no recourse to the Issuer or its subsidiaries.
The Vendor Notes and the Minority Vendor Loan will
mature in 2028, and interest on these instruments may
be paid in kind at the sole election of Midco.
On December 15, 2022, we acquired, indirectly
through our subsidiary Fedrigoni France Sarl, theentire share capital of Papeterie Zuber Rieder, aEuropean specialty label paper producer focusing on
the European wine and spirits segment (the “Zuber
Acquisition”). With the Zuber Acquisition, we aim tostrengthen our offering of premium papers for wineand spirits.

Sustainability Report

Significant events of the year
On July 26, 2022, Bain Capital Private Equity signed
a definitive agreement with BC Partners for the joint
ownership of Fedrigoni. The Acquisition closed on
November 30, 2022 with the acquisition by Fiber Bidcoof 99.99% of the share capital of Fedrigoni. At closingof the Acquisition, Bain Capital and BC Partners each
owned, indirectly, a 45.6% stake in Fedrigoni, with theremaining 8.8% being held by certain management
and minority co-investors.
In connection with the Acquisition, Fiber Midco
S.p.A. (“Midco”), the direct parent of the Issuer, issued€300.0 million in notes (the “Vendor Notes”) that were118

Annual Financial
ReportOn November 30, 2022 (the “Acquisition Closing
Date”), Fiber Bidco S.p.A. (“Fiber Bidco” and, together
with its subsidiaries, the “Fiber Group”) completed
the acquisition (the “Acquisition”) of 99.99% of theshare capital of Fedrigoni S.p.A. (the “Company” or“Fedrigoni”), a leading manufacturer of pressure
sensitive products and premium packaging materials.
The Fiber Group operates across two businesssegments: Fedrigoni Self-Adhesives (“FSA”) andLuxury Packaging and Creative Solutions (“LPCS”).
In connection with the Acquisition, on October25, 2022, Fiber Bidco (the “Issuer”) issued Euro
300,000,000 in aggregate principal amount of 11.00%
Senior Secured Notes due 2027 (the “Fiber Fixed Rate
Notes”) and Euro 577,967,696 Senior Secured Floating
Rate Notes due 2027 (the “Fiber Floating Rate Notes”).
In addition, Fiber Bidco entered into a private exchange
pursuant to which Fiber Bidco issued Euro 147,032,304
in aggregate principal amount of Senior Secured
Floating Rate Notes (the “Exchanged Notes”), having
substantially the same terms as the Fiber Floating

Rate Notes, to certain holders of Fedrigoni’s existingsenior secured notes, in exchange for such seniorsecured notes. The Exchanged Notes were exchanged
for additional Fiber Floating Rate Notes in an equal
aggregate principal amount issued on the Acquisition
Closing Date.
On November 9, 2022, Fiber Bidco issued Euro56,349,000 in aggregate principal amount of additional
11.00% Senior Secured Notes due 2027 (the “Fiber Tap
Notes”). In addition, Fiber Bidco privately placed Euro8,564,000 million in aggregate principal amount ofadditional 11.00% Senior Secured Notes due 2027 (the“Fiber Private Fixed Rate Notes”) and Euro 10,087,344
in aggregate principal amount of additional Senior
Secured Floating Rate Notes due 2027 in a private
placement (the “Fiber Private Floating Rate Notes” and,
together with the Fiber Private Fixed Rate Notes, the“Fiber Private Notes”).
In connection with the Acquisition, Fiber Bidco
also entered into a revolving credit facility (the “Fiber
Revolving Credit Facility”), with availability of up to
Euro 150,000,000.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Fiber Bidco S.p.A. (the “Company”) prepares its
financial statements in accordance with the relevant
provisions of the Italian Civil Code, which regulates
their preparation, as interpreted by the accounting
principles issued by the Organismo Italiano diContabilità (“Italian GAAP”). Fiber Bidco S.p.A. usedthe exemption provided by Italian Legislative Decree
127/1991, Article 27, paragraph 3 and prepared
Consolidated Financial Statements as at December
31, 2022 and for the period ended December 31,
2022 on a voluntary basis in accordance with theInternational Financial Reporting Standards (IFRS)
issued by the International Accounting Standards
Board (IASB) and adopted by the European Union(EU-IFRS).

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Provided below are the main accounting standards
and principles applied in the preparation of theGroup’s consolidated financial reports.
2.1 Basis of preparation
The Consolidated Financial Statements have been
prepared in accordance with the International
Financial Reporting Standards issued by theInternational Accounting Standards Board andadopted by the European Union, and with theprovisions issued in enactment of Italian Legislative
Decree n. 38/2005, Article 9. The term “EU-IFRS”
means the International Financial Reporting Standards(IFRS), all International Accounting Standards (IAS),
and all Interpretations of the International Financial
Reporting Interpretations Committee (IFRIC,
previously known as the Standing Interpretations
Committee, or SIC) which, as of the date of approvalof the Consolidated Financial Statements, have beenendorsed by the European Union in accordance withthe procedures established by Regulation (EC) no.
1606/2002 of the European Parliament and of theCouncil of July 19, 2002. The Consolidated Financial
Statements have been prepared according to thebest knowledge of the EU-IFRS and taking into
consideration the best doctrine applicable. Any
future changes in interpretation or orientation will bereflected in subsequent periods as established at thetime by the applicable accounting standards.
The Consolidated Financial Statements have been
prepared on a going concern basis, as the Directors
have verified the Group’s ability to meet its obligationsin the foreseeable future and specifically in the next
12 months.

A description of how the Group manages financial risk,
including both liquidity and equity risk, is provided in
Note 3 regarding the management of financial risks.
The Consolidated Financial Statements arepresented in Euros, the currency used in theeconomies in which the Group primarily operates;
the figures are rounded off to the nearest thousand,except where stated otherwise. The rounding off could
cause discrepancies in the tables between the total
amounts and the sums presented.
Below is a description of the financial statements
and related classification criteria adopted by theGroup as envisaged in IAS 1 – Presentationof Financial Statements:• The consolidated statement of financial position has
been prepared by classifying assets and liabilities as
either current or non-current;• The consolidated income statement has been
prepared by classifying operating costs by
their nature, considering the December monthcontribution of Fedrigoni Group (from the Acquisitiondate), and the full impact of Fiber Bidco S.p.A. (fromthe inception date);• The consolidated statement of comprehensive
income includes both the net profit for the period asshown in the consolidated income statement and theother changes in equity resulting from transactions
not entered into with shareholders of the Company,
considering the December month contribution
of Fedrigoni Group (from the Acquisition date),and the full impact of Fiber Bidco S.p.A. (from theinception date);• The consolidated statement of cash flows has
been prepared by showing the cash flows resulting
from operations by way of the “indirect approach”,
considering the December month contribution
of Fedrigoni Group (from the Acquisition date),and the full impact of Fiber Bidco S.p.A. (fromthe inception date).

119

Annual Financial
ReportFiber Bidco, was originally incorporated as a società a
responsabilità limitata (limited liability company) under
the laws of Italy on August 29, 2022, and effective asof August 31, 2022, and was converted into a società
per azioni (joint stock company) on September 9, 2022,
and effective as of September 13, 2022.
Fiber Bidco’s registered office is located at Via
Alessandro Manzoni, 38 - Milano.
Fiber JVCo S.p.A. (the “Parent Company”), an Italiancompany whose registered office is located in Milan at
Via Alessandro Manzoni, 38, has an indirect controllinginterest in the Company through the subsidiary Fiber
Midco S.p.A., with 99.99% of the voting rights.
The Fiber Group (the “Group”) produces and sells
specialty paper with a high added value (“LPCS– Luxury Packaging and Creative Solutions”) andpremium self-adhesive labels and materials (“FSA –Fedrigoni Self-Adhesives”). Specifically, it produces,converts and distributes worldwide coated anduncoated graphic papers for the general andspecialized press and for publishing, bookbinding,packaging, finishing and converting applications
for commercial and personal use, technical andindustrial use, office use, and artistic and scholastic
use. In addition, the Group produces, converts anddistributes worldwide premium self-adhesive labels
and materials. The Group’s main brands are Fedrigoni,
Fabriano, Cordenons and Guarro Casas in the
Luxury Packaging and Creative Solutions Segment,
and Arconvert, Ritrama, Manter, and Acucote in the
Fedrigoni Self-Adhesives Segment.
The consolidated financial statements wereapproved by the Company’s Board of Directors on
April 27, 2023

Sustainability Report

2. Summary of accounting standards

The Fedrigoni GroupANNUAL FINANCIAL REPORT

1. General information

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

The Consolidated Financial Statements have been
prepared under the historical cost convention, except
for financial assets measured at fair value throughother comprehensive income, financial assets
measured at fair value through profit and loss, andderivative financial instruments, which have beenmeasured at fair value. The carrying amounts ofhedged assets and liabilities have been adjusted toreflect the fair value changes for the hedged risks (fairvalue hedge).
2.2 Basis and method of consolidation
Described below are the criteria adopted by the Groupin determining the companies to be consolidated
in terms of subsidiaries and associates and theirrespective consolidation methods.

The financial statements of subsidiaries are preparedwith reporting periods ending on December 31, whichis the same reporting date as for the Consolidated
Financial Statements, and have been prepared andapproved by the boards of directors of the respective
entities and adjusted, as necessary, to ensure
uniformity in the accounting standards adopted within
the Group.

120

Annual Financial
Reporti) Subsidiaries
The Consolidated Financial Statements include
those of the Company and companies over which, in
accordance with IFRS 10, Fiber Bidco S.p.A. exercises
control either directly or indirectly by virtue of direct
or indirect ownership of the majority of voting rights
or the exercise of dominant influence in terms of
the power to make decisions about the financial
and operating policies of the companies/entities,
obtaining the related benefits, regardless of theownership interest. All subsidiaries are included in the
consolidation perimeter from the date on which they
are acquired until the date on which control over thesubsidiary ceases.

• the acquisition of non-controlling interests related
to entities in which there is already control, or
the sale of non-controlling interests that do not
result in a loss of control, are considered equity
transactions. This means that, in the event of theacquisition or sale of non-controlling interests that
results in control being maintained, any difference
between the acquisition/sale cost and the relatedshare of equity acquired/sold is recognizedin equity;• receivables, payables, income and expenses
between the consolidated companies as wellas significant profits and losses and related tax
effects resulting from transactions conducted
between companies and not yet realized with theother parties are eliminated, with the exception of
unrealized losses, which are not eliminated if thetransaction provides evidence of an impairment
loss of the business transferred. Also eliminated, ifmaterial, are reciprocal receivables and payables,
revenues and expenses, and financial income andfinance costs;• profits or losses resulting from the sale of equity
interests in consolidated companies that resultin a loss of control over that entity are recognizedthrough profit or loss in an amount equal to thedifference between the selling price and thecorresponding share of the equity sold.

Sustainability Reporta) Consolidated companies

Subsidiaries are consolidated on a line-item basis as
described below:• the assets and liabilities, income and expenses
are consolidated line by line, with non-controllinginterests allocated their share of equity and net
profits as shown separately in the consolidated
statement of changes in equity, consolidated
income statement, and consolidated statement ofcomprehensive income;• business combinations which, during the period
under review, result in acquiring control over anentity are recognized using the acquisition method
under IFRS 3. The acquisition cost is the fair value,at the control transfer date, of the assets acquired,liabilities assumed, and equity instruments issued.
Transaction costs are recognized through profit
or loss on the date on which the related services
are provided. The assets, liabilities and contingent
liabilities acquired are recognized at their fair value
at the acquisition date. The difference between theacquisition cost and the fair value of the assets
and liabilities acquired is recognized, if positive,
among intangible assets as goodwill or, if negative
and after verifying the proper measurement of thefair value of the assets and liabilities acquired andtheir acquisition cost, through profit or loss. If thefair value of the identifiable assets and liabilities
acquired can be determined only provisionally,
the business combination is recognized using theprovisional values. Any adjustments resulting fromthe measurement process are recognized withintwelve months from the acquisition date, and thecomparative figures are remeasured;

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

A list of subsidiaries and associates, which includes
information on their headquarters and the respective
ownership interests, is provided in Annex 1.
b) Translation of foreign currency balances

At December 31,
2022

BDT

110.4509

112.6596

BRL

5.55895.6386CHF

0.98650.9847CNY

7.38597.3582COP

5,075.7367

5,172.4700

CRC

625.8598

631.4485

DOP

58.614459.9444

GBP

0.86950.8869GTQ

8.33258.3707HKD

8.24348.3163IDR

16,503.2962

16,519.8200

MXN

20.7608

20.8560

PLN

4.68324.6808TRY

19.761319.9649

USD

1.05891.0666ZAR

18.3036

18.0986

121

Annual Financial
Report

The companies in the consolidation perimeter at
December 31, 2022 whose functional currency differsfrom the Euro are Fedrigoni UK Ltd (GBP), Fedrigoni
Asia Ltd (HKD), Arconvert-Ritrama do Brasil Ltda (BRL),
GPA Holding Company Inc. (USD), Fedrigoni Trading(Shanghai) Company Limited (CNY), Distribuidora
Ritrama Ecuador Disritrec S.A. (USD), Inversiones San
Aurelio Srl (DOP), Ritrama Autoadesivos Ltda (BRL),
Ritrama Caribe Srl (DOP), Ritrama S.A. Chile (USD),
Ritrama (Hefei) Pressure Sensitive Coated Materials
Co.Limited (CNY), Ritrama S.A.S. (COP), Ritrama

Currency

Average for one month
ended December 31,
2022

Sustainability Report

The financial statements of subsidiaries andassociates are prepared using the currency of the
primary economy in which they operate (i.e. the“functional currency”). The rules for translating
financial statements expressed in a currency otherthan the Euro are as follows:• assets and liabilities are translated using
the exchange rates in effect at the end of thereporting period;• income and expenses are translated at the
average exchange rate for the reporting period;• the translation reserve shown in the statement ofcomprehensive income includes both the exchange
rate differences generated by the translation ofbalances at a different rate from that of the closing
date and those generated by the translation of
opening equity balances at a different rate fromthat of the reporting date;• the goodwill and fair-value adjustments relating
to the acquisition of foreign entities are treatedas assets and liabilities of the foreign entity andtranslated at the end-of-period exchange rate.

Costa Rica S.A. (CRC), Ritrama Guatemala S.A. (GTQ),
Ritrama Perù SAC (USD), Ritrama Converting (PTY)
LTD (ZAR), Ritrama UK Ltd (GBP), Venus America, S.A.
de C.V. (MXN), Industrial Papelera Venus, S.A. de C.V.
(MXN), Ritrama Poland Sp. Z.o.o. (PLN), Acucote Inc.
(USD), P.T. Fedrigoni Indonesian Trading (IDR), Fedrigoni
Bangladesh Ltd (BDT) and Bes Reklam Ürünleri Sanayi
ve Ticaret Anonim Şirketi (TRY).
The exchange rates used to translate the financial
statements of companies with a different functional
currency from the Euro are reported in thefollowing table:

The Fedrigoni GroupANNUAL FINANCIAL REPORTii) Associates
Associates are companies over which the Group
exercises significant influence, which is the power tocontribute to determining the financial and operating
policies of the entity without having either control
or joint control. Significant influence is assumed toexist when at least 20% of the exercisable voting
rights is held either directly or indirectly throughsubsidiaries. When determining the existence ofsignificant influence, potential voting rights that are
actually exercisable or convertible are also taken into
account. Investments in associates are measured
using the equity method and initially recognized at thecost incurred for their acquisition. A description of theequity method is provided hereunder:• the carrying value of these investments is alignedwith the equity held and adjusted, as necessary,
in application of the EU-IFRS; this includes therecognition of the greater value attributed to theassets and liabilities and any goodwill establishedat the time of acquisition;•p rofit or loss attributable to owners of the parent
company is recognized from the date on whichsignificant influence began until the date on which
it ceases; if realized losses of a company measured
at equity should result in negative equity, thecarrying value of the investment is eliminated, andany excess attributable to the owners of the parent
is recognized in a specific reserve if the parent has
undertaken to meet the associate’s legal or otherconstructive obligations; changes in equity forcompanies measured at equity that are not related
to net profits are recognized as a direct adjustment
to equity reserves;•s ignificant unrealized profits and losses generated
on transactions between the Company, its
subsidiaries and equity-accounted associates are
eliminated based on the value of the equity interest
that the Group owns in the associate; unrealized
losses are eliminated, with the exception of cases inwhich such losses represent an impairment loss.

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Incomec) Translation of foreign currency items
Transactions in a currency other than the functional
currency are recognized at the exchange rate in effecton the date of the transaction. Monetary assets andliabilities denominated in a currency other than theeuro are subsequently adjusted at the exchange
rate in effect at the end of the reporting period.
Non-monetary assets and liabilities denominatedin a currency other than the euro are recognizedat historical cost using the exchange rate in effectwhen the transaction was initially recognized. Any
currency differences arising from such translation arerecognized in the consolidated income statement.

Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

2.3 Accounting policies

Land

Not depreciated

Buildings

2.5-10 %Plant and machinery

5-10 %

Equipment

7-12.5 %Other tangible assets

7-20 %The useful lives of property, plant and equipment andthe residual value of such assets are reviewed andupdated as necessary at the end of each year. Land is
not depreciated.

Lease liability
At the commencement date of the lease, the Groupmeasures the lease liability at the present value ofthe lease payments that are not paid by that date.
The lease payments due include fixed payments
less any lease incentives receivable, variable lease
payments that depend on an index or a rate, andamounts expected to be payable under residual
value guarantees. The lease payments also include
the exercise price of a purchase option if the Groupis reasonably certain to exercise that option, and thepayments of penalties for terminating the lease, if the122

Annual Financial
ReportLeasesAt the inception of a contract, the Group assesses
whether the contract is, or contains, a lease, i.e.,
whether the contract conveys the right to control
the use of an identified asset for a period of time inexchange for consideration. The Group adopts a single
recognition and measurement model for all leases,
excluding short-term leases and leases of low-value
assets. The Group recognizes the liabilities referring
to lease payments and the right-of-use asset, which
represents the right to use the underlying asset
in the lease.

Sustainability Report

Property, plant and equipment
Property, plant and equipment are measured atpurchase or production cost net of accumulated
depreciation and any impairment losses. The
purchase or production cost includes any charges
incurred directly to bring the assets to working
condition for their intended use, as well as any charges
for disposal and removal that should be incurred as aresult of contractual obligations that require restoring
the asset to its original condition. Finance costs
directly attributable to the purchase or construction ofqualified assets are capitalized and depreciated overthe useful life of the related asset.
Expenditure incurred for routine and/or cyclicalmaintenance and repairs is fully recognizeddirectly in the income statement of the period inwhich it is incurred. Costs related to the expansion,modernization or improvement of structuralcomponents of owned assets are capitalized whensuch components meet the requirements forseparate classification as assets or part of an asset
in application of the component approach, which

establishes that each component subject to separate
determination of its useful life and related value mustbe treated individually.
Depreciation is recognized monthly on a straight-line
basis based on rates that enable the asset to be fully
depreciated by the end of its useful life.
The useful lives estimated by the Group for themain categories of fixed assets are reflected in thefollowing depreciation rates on a yearly basis:

Right-of-use asset
The Group recognizes the right-of-use assets at thecommencement date of the lease (the date on which
the underlying asset is available for use). The rightof-use asset is measured at cost less accumulated
depreciation and accumulated impairment losses,
adjusted by any remeasurements of lease liabilities.
The cost of the right-of-use asset comprises theamount of lease liability recognized, the initial direct
costs incurred, and any lease payments madeat or before the commencement date, less anylease incentives received. The right-of-use asset
is depreciated on a straight-line basis from thecommencement date to the end of the useful life of
the underlying asset or, if earlier, to the end of thelease term.
If the lease transfers ownership of the underlying
asset to the lessee by the end of the lease term,
or if the cost of the right-of-use asset reflects thatthe lessee will exercise a purchase option, thelessee depreciates the right-of-use asset from thecommencement date to the end of the useful life of
the underlying asset.
The right-of-use assets are subject to impairment
testing. More information is provided in the section on
impairment testing.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements(a) Industrial patents and intellectual property rights
Patents and intellectual property rights are amortizedon a straight-line basis over their useful life.
(b) Concessions, licenses and trademarks
Concessions, licenses and trademarks are amortizedon a straight-line basis over their respective term; thebrands are measured using the royalty method.
Costs for software licenses, including expenses
incurred in order to make the software ready for use,are amortized on a straight-line basis over a period of
3 years.
Costs related to software maintenance are
expensed as incurred.
(c) Customer relationships“Customer relationships” (which emerged when
accounting for the Fedrigoni Group acquisition),included among the “other intangible assets”,
represents the total contractual relationships (supply
agreements, service agreements, etc.) and noncontractual relationships with customers, and ismeasured with the discounted cash flow method(under the income approach). The assets areamortized over their useful life, estimated between
seventeen and thirty years for Luxury Packaging
and Creative Solutions (“LPCS”) cash generating
unit, between six and thirty years for Fedrigoni SelfAdhesives Europe (“FSA Europe”) cash generating unit
and between twelve and thirty years for Fedrigoni SelfAdhesives America (“FSA USA”) cash generating unit.

123

Annual Financial
ReportShort-term leases and leases of low-value assets
The Group applies the exemption for recognizing
short-term leases (those that, at the commencement
date, have a term of 12 months or less and do notcontain a purchase option). The Group also applies the
exemption for leases with low-value assets mainly toleases for office equipment considered to have a low
value. The payments on short-term leases and lowvalue leases are recognized as costs on a straight-line
basis over the lease term.

Intangible assets
Intangible assets are identifiable, non-monetary
items without physical substance, which generate
future economic benefits. Goodwill is included when
acquired for valuable consideration. Intangible assets
are recognized at purchase and/or production cost
including any directly attributable expenses incurredto prepare the asset for use, net of accumulated
amortization and any impairment losses. Any interest
expense accrued during and for the development ofintangible assets is considered part of the purchasecost.
Amortization begins when the asset is available foruse and is recognized systematically in relation to theremaining useful life of the asset.
Intangible assets with a finite useful life areamortized on a straight-line basis over their usefullife, i.e. the estimated period in which such assets
will be used by the Group. Intangible assets with afinite useful life are tested for impairment in orderto determine whether those assets have suffered aloss in value (impairment loss) whenever there is any
indication thereof.
Intangible assets with an indefinite useful life are
not depreciated, but they are tested for impairment atleast annually. The impairment test is described in thesection on “impairment losses”.
When part or all of a previously acquired business issold, and goodwill had emerged on the acquisition, thecorresponding residual value of goodwill is taken into
account in determining the capital gain or capital loss
on the sale.

Sustainability Reportlease term reflects the Group exercising an option
to terminate the lease.
Variable lease payments that do not depend on anindex or a rate are recognized as costs in the period
in which the event or condition that generated thepayment occurs.
In calculating the present value of the lease
payments due, the Group uses the incremental
borrowing rate at the commencement date if theimplicit interest rate cannot be determined easily.
After the commencement date, the lease liability
is increased to reflect interest on the lease liability
and reduced to reflect the lease payments made.
Moreover, the carrying amount of the lease liability
is remeasured to reflect any lease modifications orrevised contractual terms for payment modifications;
it is also remeasured to reflect any changes in theassessment of whether the option to purchase theunderlying asset is reasonably certain to be exercisedor modifications in future payments deriving froma change in the index or rate used to determine
such payments.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

With respect to the allocation regarding the recent
acquisition of Fedrigoni Group, since the process
of measuring the assets acquired has not been
completed yet and since the measurement period
envisioned by IFRS 3 has not been exceeded, theallocation reflected in the financial statements is
considered provisional, and the definitive identificationof the fair value of the assets acquired and of therelated useful lives is postponed to the nextreporting period.

Investment property
Investment property is property owned for the
purpose of receiving rent payments, realizing a capitalgain on the investment, or both, which generates cash
flows that are largely independent of the other assets.
Investment property follows the same measurement,
recognition and depreciation criteria applied forproperty, plant and equipment.
Trade receivables and other financial assets
Trade receivables and other financial assets are
initially recognized at fair value and subsequently
at amortized cost in accordance with the effective
interest rate approach, net of any write-downs. Trade
receivables and other financial assets are included
among current assets, excluding those contractually
due after twelve months from the reporting date, inwhich case they are classified as non-current assets.
Impairment losses on receivables are recognizedwhen there is objective evidence that the Groupwill not be able to collect the amount fromthe counterparty based on the terms of therelated agreement.

124

Annual Financial
Report

The amortization of any development costs
recognized as intangible assets begins on the date on
which the project becomes marketable.
In an identified internal project for the creationof an intangible asset, if the research stage is
indistinguishable from the development stage, thecost of the project is fully recognized through profit orloss as if there had only been a research stage.

and to the extent of their respective recoverable
values. If the conditions for a previous impairment
loss should cease to exist, the carrying value of theasset is reinstated and recognized in the income
statement to the extent of the net carrying value thatthe asset would have had if it had not been written
down and all related depreciation or amortization
had been recognized.

Sustainability Report(d) Research and development costs
Research costs are expensed as incurred, whereas
development costs are recognized as intangible
assets when all the following conditions are met:
• the project is clearly identified and the related
costs can be reliably identified and measured;• the technical feasibility of the project has
been demonstrated;• the intention to complete the project andto sell the intangible assets generated has
been demonstrated;•a potential market exists or, in the event of internaluse, the utility of the intangible asset to produce theintangibles generated by the project has
been demonstrated;• the technical and financial resources needed tocomplete the project are available.

Impairment of property, plant, equipment
and intangible assets
At each reporting date, a review is performed todetermine whether there is any indication that assets
have suffered an impairment loss. Both internal andexternal sources of information are taken into accountfor the impairment testing. Internal sources include:
the obsolescence or physical deterioration of theasset, any significant changes in the use of the asset,
and the financial performance of the asset compared
to expectations. External sources of information
include: trends in the market price of the asset; any
technological, market or legislative changes; trends inmarket interest rates or in the cost of capital used tomeasure the value of the investment.
If any such indication exists, the recoverable valueof the asset is estimated, and any impairment loss
compared to the current carrying value is recognizedin the income statement. The recoverable value ofan asset is its fair value less any costs to sell or its
value in use (i.e. the present value of estimated future
cash flows generated by the asset), whichever isgreater. To determine value in use, the present valueof expected future cash flows is calculated using a
pre-tax discount rate that reflects the current market
values of the cost of money based on the investment
period and the risks specific to the asset. For an asset
that does not generate sufficiently independent cash
flows, the recoverable value is determined for the
cash-generating unit to which the asset belongs.
An impairment loss is recognized when the carrying
value of the asset or of the related cash-generating
unit exceeds its recoverable value. Impairmentof cash-generating units is initially recognized asa reduction of the carrying value of any goodwill
attributed to it and subsequently as a reduction of theother assets proportionate to their carrying values

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

In the absence of quoted prices on active markets,
the fair value is the amount resulting from appropriate
valuation techniques that take into account all factors
adopted by market participants and the prices
obtained in an actual market transaction. The fairvalue of the interest rate swaps is determinedby discounting the future cash flows to theirpresent value.
Derivatives qualified as trading instruments
Derivative instruments are used for strategic andfinancial hedging purposes. However, since somederivatives do not meet some conditions set by EUIFRS for hedge accounting, those derivatives arerecognized as trading instruments. Accordingly, thederivatives are initially recognized at fair value, andsubsequent changes in fair value are recognized ascomponents of financial income and finance costs forthe period.
The fair value of financial instruments not listed
on an active market is determined using valuation
approaches based on a series of methods andassumptions related to the market conditions at thereporting date.

125

Annual Financial
ReportDerivatives and hedge accounting
The Group uses derivatives to hedge against risks ofvariability in:• interest rates with respect to the note issuancethrough Interest Rate Swaps;• the price of greenhouse gas emission permits(referred to hereinafter as CO2 permits) on theEuropean Union Allowances (EUA) market throughCall Options;• the price of pulp through Swap contracts;• foreign exchange rates through forward contracts.

• Fair value hedge: for effective hedging of exposure
to changes in fair value, the hedged item isadjusted by the fair value changes attributable
to the risk hedged with a balancing item in theincome statement. Gains and losses deriving frommeasurement of the derivative are also recognizedin profit or loss. Fair value changes of derivatives
that do not qualify for hedge accounting arerecognized in profit or loss as they occur.

Sustainability Report

The amount of the writedown is measured as thedifference between the carrying value of the asset
and the present value of the future cash flows andis recognized in the income statement under “othercosts”. Uncollectable receivables are eliminated fromthe statement of financial position and recognized
in a provision for doubtful debts. If the reasons for aprevious writedown should cease to exist in future
periods, the value of the asset is reinstated at thevalue of its amortized cost without the writedown.
Financial assets are written off when the right toreceive cash flows from them ceases or is transferred,or when the Group has substantially transferred
all risks, rewards and control associated with thefinancial instrument to a third party.

The use of derivatives is regulated by the Group’s
policies approved by the management bodies,
which lay down precise written procedures on theuse of derivatives in keeping with the Group’s risk
management strategies. Derivative agreements
were stipulated with some of the most financiallysolid counterparties in order to reduce to a minimum
the risk of contractual breach. The Group does notuse derivatives for trading purposes, but to hedge
against identified financial risks. A description of thecriteria and methods used to manage financial risks is
contained in the “Financial risk management” section.
Derivatives are initially measured at their fair value,in accordance with IFRS 13, and the attributabletransaction costs are recognized in profit and loss
as incurred. Subsequent to initial recognition, thechanges in fair value are recognized in profit and loss
if the derivatives do not qualify for hedge accounting
due either to their type or to the Group’s decision
not to perform effectiveness testing. Derivatives
are designated as hedging instruments when formal
documentation of the hedging relationship exists andthe hedge effectiveness, tested periodically, is high,under IFRS 9.
Hedge accounting differs according to the purposeof the hedge: hedging of the exposure to variability infuture cash flows (cash flow hedge) or of changes infair value (fair value hedge):• Cash flow hedge: the changes in the fair valueof the derivatives that are designated, or are
effective, for hedging future cash flows regarding
probable transactions are recognized directly inother comprehensive income and other reserves,
while the ineffective portion is recognized
immediately in profit or loss. The amounts, which
had been recognized directly in the Statement ofComprehensive Income and accumulated in equity,
are included in profit or loss when the hedgedtransactions affect profit or loss.

The Fedrigoni GroupANNUAL FINANCIAL REPORTObjective evidence includes events such as:•s ignificant financial difficulty of the issuer
or debtor;• pending legal disputes with the debtor concerning
the receivables;• likelihood that the debtor will declare bankruptcy
or will initiate other such financial restructuring
procedures.

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Trade payables and other liabilities
Trade payables and other liabilities are initiallyrecognized at fair value net of directly attributable
costs and are subsequently measured at amortizedcost using the effective interest rate method.
Financial liabilities
Financial liabilities, which relate to loans, leases andother payment obligations, are initially recognizedat fair value net of transaction costs and aresubsequently recognized at amortized cost using
the effective interest rate method. In the event ofchanges in the expected cash flows, the value of theliability is recalculated in order to reflect such change
based on the present value of the new expected cash
flows and using the initially determined internal rateof return. Financial liabilities are classified among
current liabilities, excluding those with a contractual
maturity of twelve months after the reporting dateand excluding those for which the Group has theunconditional right to defer payment for at least
twelve months from such date.
Purchases and sales of financial liabilities arerecognized on the transaction settlement date.
Financial liabilities are eliminated from the statementof financial condition when paid in full and/or when theGroup has transferred all risks and charges related tothe instrument.

Employee benefits
Short-term benefits include wages, salaries, relatedsocial security charges, compensation for unused
vacation time, and incentives and bonuses payable
within twelve months of the reporting date. Thesebenefits are recognized as components of the cost of
personnel during the period of service.
Pension funds
The companies of the Group have both definedcontribution plans and defined-benefit plans.
The defined-contribution plans are managed byexternal fund managers in relation to which there
are no legal or other obligations to pay further
contributions if the fund should have insufficient
assets to meet the obligations toward employees.
For those defined-contribution plans, the Group gives
voluntary or contractually set contributions to bothpublic and private pension funds. The contributions
are recognized as costs of personnel on an accruals
basis. Contributions paid in advance are recognized
as an asset to be reimbursed or used to offset any
future payments due.
A defined-benefit plan is one that cannot beclassified as a defined-contribution plan. In definedbenefit plans, the amount of the benefit to be paid tothe employee is quantifiable solely upon terminationof employment and is tied to one or more factors,
such as age, seniority, and salary level. As such, theobligations of a defined-benefit plan are determinedby an independent actuary using the projected unit
credit method. The present value of a defined-benefit
plan is determined by discounting the future cash
flows at an interest rate that is equal to that of highquality corporate bonds issued in the currency inwhich the liability is to be settled and which takes into
account the term of the related pension plan. Actuarial

126

Annual Financial
ReportInventories
Inventories are recognized at the lower of purchaseor production cost and net realizable value, i.e. theamount that the Group expects to receive on their sale
under normal business conditions, less costs to sell.
The cost of inventories of raw and ancillary materials,
consumables and finished products is determined byusing the weighted average cost method.
The cost of finished products and semi-finishedgoods includes the costs of raw materials, direct
labor and other production costs (based on normal
operating capacity). Finance costs are not includedin the measurement of inventories because theconditions for their capitalization are not present.

Cash
Cash include available bank deposits. At the reporting
date, bank overdrafts are classified as current
financial liabilities in the statement of financial
position. The items included in cash are measured atfair value, and subsequent changes are recognizedthrough profit or loss.

Sustainability Report

The fair value classification of financial instruments
is set forth below based on the following
hierarchical levels:
Level 1: fair value determined based on quoted(non-adjusted) prices in active markets for identicalfinancial instruments;
Level 2: fair value determined using valuation
techniques based on inputs that are observable inactive markets;
Level 3: fair value determined using valuation
techniques based on unobservable inputs in active
markets.
Given the short-term nature of trade receivables andpayables, we believe that the carrying value is a good
approximation of their fair value.
For more information on the valuation of financial
instruments at fair value based on this hierarchy,see Note 3.5.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Recognition of revenues
Sales revenues
Sales revenues are recognized when the control
over the good is transferred to the customer, which
normally coincides with the sending or delivery of thegood and receipt of it by the customer. The good has
been transferred when the customer obtains control
over it, i.e. when the customer has the capacity tomake decisions about the use of the asset and toobtain benefits from it.
Within this framework, sales revenues and the costs
for purchasing goods are measured at the fair valueof the consideration received or due, taking into
account any returns, rebates, sales discounts
and quantity premiums.
The Group grants discounts to some customers
when the product quantities they purchase during
the period exceed the threshold established in thecontract. Only when the threshold is exceeded, thediscount is granted and accounted for as a reductionof the revenues.
In accordance with IFRS 15, the Group checks
whether there are any contractual terms that
represent separate performance obligations to which
the transaction price must be allocated (such as
guarantees), and effects deriving from the presenceof variable consideration, significant financing
components or non-monetary exchanges that mustbe paid to the customer.
Interest income
Interest income is recognized in the consolidated
income statement based on the effective rateof return. It refers primarily to interest earnedon bank accounts.
Government grants
When formally authorized and when the right totheir disbursement is deemed definitive based onreasonable certainty that the Group will meet theunderlying conditions and that the grants will bereceived, government grants are recognized based on
the matching concept of income and expenses.
Grants relating to assets
Government grants relating to fixed assets arerecognized as deferred income among “otherliabilities”, either current for short-term portions or
non-current for long-term portions. Deferred income
is recognized in the income statement as “otheroperating income” on a straight-line basis over theuseful life of the asset for which the grant is received.
Grants for operating expenses
Grants other than those relating to assets arerecognized on the income statement under “otheroperating income”.

127

Annual Financial
ReportProvisions for risks and charges
Provisions for risks and charges are recognized forcertain or probable losses and other charges of agiven nature, but for which the amount and/or timing
cannot be determined. The provision for agency
termination represents amounts that could be due asa result of the termination of agency relationships ineffect at the reporting date.
Provisions are recognized only when there is apresent obligation (legal or constructive) for a future
outflow of economic resources that has arisen as aresult of past events and when it is probable that suchoutflow will be required to settle the obligation. The

amount allocated represents the best estimate of theamount required to settle the obligation. The discountrate used to determine the present value of the liability
reflects current market values and takes into accountthe specific risk associated with each liability.
Where the effect of the time value of money ismaterial and the payment dates of the obligations canbe estimated reliably, the provisions are measured at
the present value of the outflow expected using a ratethat reflects current market conditions, the change
in the time value of money, and the risks specific to
the liability. Any increases in value of the provisionattributable to changes in the time value of money arerecognized as interest expense.
Risks for which a liability is only possible aredisclosed in the section on contingent liabilities, andno provision is allocated for them.

Sustainability Reportgains or losses resulting from these adjustments areshown in the statement of comprehensive income as
a component of such income. The Group manages
solely one defined-benefit plan, which is the fundfor employee severance indemnities (or “TFR”). This
fund, which is a form of deferred remuneration, is
mandatory for Italian companies in accordance with
Article 2120 of the Italian Civil Code and is correlated
to the length of employment and the salary received
throughout the period of service. On January 1, 2007,
Italian law no. 296 of December 27, 2006 (“2007
Financial Law”) and subsequent law decrees andregulations introduced significant changes as to
how this fund is to be handled, including the rightfor employees to choose whether their benefit isaccumulated in a supplemental pension fund or in
the “treasury fund” managed by INPS. As a result,the obligation toward INPS and the contributions to
supplementary pension funds have, in accordancewith IAS 19 – Employee Benefits, become defined
contribution plans, whereas the amounts contributed
to the TFR fund as at January 1, 2007 maintain theirstatus as defined benefit plans.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Recognition of expenses
Expenses are recognized when relating to goods orservices acquired or consumed during the period orwhen systematically allocated.

Earnings per share
Earnings/(loss) per share – basic
Basic earnings/(loss) per share is calculated by
dividing the Group’s net profit (from continuing
operations and discontinued operations) by theweighted-average number of ordinary shares incirculation during the year, excluding treasury shares.
Earnings/(loss) per share – diluted
Diluted earnings/(loss) per share is calculated by
dividing the Group’s net profit (from continuing
operations and discontinued operations) by theweighted-average number of ordinary shares incirculation during the year, excluding treasury shares.
To calculate diluted earnings per share, the weightedaverage number of shares in circulation is adjusted
by assuming the exercising of all rights that could
potentially have a dilutive effect, and the Group’s net
profit/(loss) is adjusted to take into account any effect,
net of taxes, of exercising such rights.

Sustainability Report

128

Annual Financial
ReportIncome taxes
Current income taxes are calculated based on the
taxable income for the period at the tax rates in effecton the reporting date.
Deferred taxes are calculated for differences
emerging between the tax base of an asset or liability
and its related carrying value, with the exception of
goodwill and differences related to investments in
subsidiaries when the timing of such differences issubject to control by the Group and it is probable thatthey will not be recovered in a reasonably foreseeable
time frame. Deferred tax assets, including thoseconcerning accumulated tax losses, for the portion
not offset by deferred tax liabilities, are recognized
to the extent to which it is probable that there will
be sufficient future taxable earnings to recover thedeferred taxes. Deferred tax assets and liabilities aremeasured based on the tax rates expected to apply
in the period in which the differences will be realized
or settled.
Current and deferred taxes are recognized in theincome statement under “income taxes”, excluding
those related to items shown in the consolidated
statement of comprehensive income other thannet profits and items recognized directly in equity.
In the latter cases, deferred taxes are recognizedunder “income taxes related to other comprehensive
income” in the consolidated statement ofcomprehensive income and directly in equity. Income

taxes are offset when they are assessed by the same
fiscal authority, there is a legal right to such offsetting,and the net balance is expected to be settled.
Other taxes unrelated to income, such as indirect
taxes and other duties, are included with “other costs”.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements• Amendments to IAS 37 - Provisions, Contingent
Liabilities and Contingent Assets: theamendment clarifies that the estimated costof fulfilling a contract must comprise all costs
that relate directly to the contract. Therefore, theestimated cost of fulfilling a contract includes not
only incremental costs (for example, the cost of
materials directly used in processing), but also
all other costs that cannot be avoided due to the
stipulation of the contract (for example the shareof the depreciation charge of the machines usedin fulfilling the contract).
• Annual Improvements 2018-2020: amendments
have been made to IFRS 1 First-time Adoption ofInternational Financial Reporting Standards,
IFRS 9 Financial Instruments, IAS 41 Agriculture,and the Illustrative Examples accompanying
IFRS 16 Leases.
All the amendments became effective on January 1,
2022. The adoption of the amendments did not havematerial effects on the Group’s consolidated
financial statements.

129

Annual Financial
ReportAccounting standards, amendments, andinterpretations endorsed by the European Union,
not effective yet and not applied in advanceby the GroupAt the reporting date, adoption of the following
accounting standards and amendments to accounting
standards endorsed by the European Union had not
become mandatory yet and were not adopted earlyby the Group.
• IFRS 17, Insurance Contracts
On May 18, 2017, the IASB published IFRS 17 –Insurance Contracts, which shall supersede
IFRS 4 – Insurance Contracts. The objective of the
new standard is to ensure that an entity provides
relevant information that faithfully represents therights and obligations deriving from insurance
contracts issued. IASB developed the standard
to eliminate inconsistencies and weaknesses ofexisting practices through a single principle-based
framework to account for all insurance contracts,
including reinsurance contracts.
The new standard also has presentation anddisclosure requirements to improve comparability
among insurance entities.
The standard is effective for annual periods
beginning on or after January 1, 2023 but earlier
application is permitted if IFRS 9 “Financial
Instruments” and IFRS 15 “Revenue from Contracts
with Customers” have also been applied.
The Directors do not expect the adoption ofthis standard to materially affect the Group’s
consolidated financial statements.
• On December 9, 2021, the IASB published“Amendments to IFRS 17 Insurance Contracts:
Initial Application of IFRS 17 and IFRS 9 –Comparative Information”. The amendment is
a transition option regarding the comparative
information about the financial assets presented
when applying IFRS 17 for the first time. The

Sustainability Report

Recently issued accounting standards
Adoption of the following accounting standards andamendments to accounting standards issued by theInternational Accounting Standards Board (“IASB”)
and endorsed by the European Union has become
mandatory for annual periods beginning on or afterJanuary 1, 2022:• Amendments to IFRS 3, Business Combinations,
IAS 16, Property, Plant and Equipment, IAS 37,
Provisions, Contingent Liabilities and Contingent
Assets, and Annual Improvements 2018-2020
On May 14, 2020 the IASB publishedthe following amendments:· Amendments to IFRS 3 - Business Combinations:the amendments update a reference in IFRS 3 to
the Conceptual Framework for Financial Reporting
without changing the accounting requirementsof IFRS 3.
· Amendments to IAS 16 - Property, Plant andEquipment: the amendments prohibit a company
from deducting from the cost of property, plant andequipment amounts received from selling items
produced during the testing phase of the asset.
Instead, such sales proceeds and related costs areto be recognized in profit or loss.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

IndexAnnual Report 2022
3. Financial risk management

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

The Group’s business is exposed to various typesof risk: market risk, credit risk and liquidity risk. The
Group’s risk management strategy focuses on market
unpredictability and aims to minimize the potential
adverse effects on the Group’s financial performance.
Some types of risk are mitigated through the useof derivatives.
Risk management is centralized with the Treasury
Management function, which identifies, assesses
and hedges financial risks by working closely with theGroup’s business units. The Treasury Management
function provides policies and guidelines formonitoring risk management particularly with respect
to foreign exchange risk, interest rate risk, credit risk,
the use of derivative and non-derivative financial
instruments and ways to invest excess cash.
3.1 Market risk
In performing its business activity, the Group is
exposed to various market risks, particularly the riskof fluctuations of interest rates, foreign exchange
rates, the price of CO₂ permits, and pulp and natural
gas prices.
To contain such risks within the risk management
limits set at the start of the year, derivatives are
stipulated for risks on interest rates, the price of CO₂
permits, pulp prices and foreign exchange.

Sustainability Report130

Annual Financial
ReportIFRS Accounting standards, amendments,
and interpretations not yet endorsed by theEuropean Union
As of this writing, the European Union authorities
have not yet completed the endorsement processneeded for the adoption of the following amendments
and standards.
On January 23, 2020, the IASB issued “Amendments
to IAS 1 Presentation of Financial Statements:
Classification of Liabilities as Current or Non-current”.
The document intends to clarify whether to classify
payables and other liabilities as current or noncurrent. The amendments are effective for annual
periods beginning on or after January 1, 2023; earlier
application is permitted.
The Directors are currently evaluating the potential
effects of adopting this amendment on the Group’s
consolidated financial statements.
On September 22, 2022, the IASB issued“Amendments to IFRS 16 Leases: Lease Liability in a
Sale and Leaseback”. The document requires a sellerlessee to subsequently measure lease liabilities
arising from a leaseback in a way that it does notrecognize any amount of the gain or loss that relates
to the right of use it retains. The new requirements do
not prevent a seller-lessee from recognizing in profit
or loss any gain or loss relating to the partial or fulltermination of a lease. The amendments are effective
for annual reporting periods beginning on or afterJanuary 1, 2024. Earlier application is permitted.
The Directors are currently evaluating the potential
effects of adopting this amendment on the Group’s
consolidated financial statements.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

amendment aims to avoid temporary accounting
mismatches between financial assets and insurance
contract liabilities and, therefore, will improve theusefulness of comparative information for thefinancial statement readers. The amendments are
effective for annual periods beginning on or afterJanuary 1, 2023; earlier application is permitted.
The Directors do not expect the adoption of theamendment to have a material impact on the Group’s
consolidated financial statements.
• On February 12, 2021 the IASB published two
amendments: “Disclosure of Accounting
Policies—Amendments to IAS 1 and IFRS
Practice Statement 2” and “Definition of
Accounting Estimates—Amendments to IAS 8”.
The amendments aim to improve accounting policy
disclosures to provide more useful information toinvestors and to other primary users of financial
statements, and to help companies to distinguishbetween changes in accounting estimates andchanges in accounting policies. The amendments
are effective for annual periods beginning on or afterJanuary 1, 2023; earlier application is permitted.
The Directors are currently evaluating the potential
effects of adopting this amendment on the Group’s
consolidated financial statements.
• On May 7, 2021, the IASB published “Amendments
to IAS 12 Income Taxes: Deferred Tax related
to Assets and Liabilities Arising from a Single
Transaction”. The amendments clarify how toaccount for deferred tax on some transactions
that can give rise to equal amounts of assets andliabilities, such as leases and decommissioning
obligations. The amendments are effective forannual periods beginning on or after January 1, 2023;
earlier application is permitted.
The Directors are currently evaluating the potential
effects of adopting this amendment on the Group’s
consolidated financial statements.

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements(in thousands of Euros)

December 31
2022-0.50%+0.50%

Changes to Income Statement(2,769)2,769

Changes to Equity

(688)

1,236

Foreign exchange risk
The Group conducts business on an international level,
so it is exposed to the foreign exchange risk derivingfrom the different currencies in which it operates(prevalently the U.S. Dollar, British Pound Sterling andBrazilian Real).
The foreign exchange risk originates from sales
transactions that have not occurred yet and fromassets and liabilities that are already recognized in
the financial statements in different currencies fromthe functional currency of the individual entities.
Although 2022 was characterized by rising volatility
in exchange rates, the Group has not suffered of any
relevant negative effects caused by rate fluctuations.
The exposure to exchange rate fluctuations did not
negatively impacted the costs and revenues of theGroup as a whole. The sensitivity analysis is under thesection “Accounting for derivatives” here beneath.

December 31(in thousands of Euros)2022
Changes to Equity

-10%

+10%

(11,398)

10,997

Accounting for derivatives
The Group holds derivatives exclusively forhedging purposes.
However, although some derivatives are designatedto hedge commodity price risk, they are embeddedwith optional components that make them ineligiblefor hedge accounting: therefore, the changes infair value of these derivatives follow the generalrule observed for trading derivatives, i.e. they arerecognized directly in profit and loss and affect theresult for the period. The tables below set forth the fairvalues of the derivatives according to their type.

(in thousands of Euros)

Commodity Derivatives

At December 31,
2022
Negative Fair
Value
14,735Interest Rate Derivatives

Positive Fair
Value
1,268

Currency Derivatives
Total

14,735

1,268

131

Annual Financial
ReportPrice risk
The Group is exposed to price risk primarily on its
cellulose and energy procurement, whose costs are
subject to market volatility.
The Group controls the exposure to raw material
and energy commodity price changes by monitoring
the costs incurred against the budget, with activities
aimed to reduce costs and volatility risk throughnegotiations with suppliers, whenever possible.
To reduce the risk of changes in pulp prices, theGroup stipulated Swaps (for a total volume of 36,000tons) maturing on January 8, 2024.
In addition, the Group has assessed the increases
in natural gas commodity prices as a risk factor as
they can have a negative impact on business results.
To reduce this risk, the Group entered into somederivatives to hedge natural gas costs (for a total
volume of 1,113,000 MWh) maturing on December 31,
2023 and (for a total volume of 252,986 MWh) maturing
on December 31, 2024.

To demonstrate the effects of price changes
on consolidated equity, below are the results ofsensitivity analysis, as required by IFRS 7, applying
positive and negative parallel shifts to the market
price of gas and pulp. The price shifts were equal to +/1,000 basis points.

Sustainability Report

Interest rate risk
As a result of the Acquisition concluded in November
2022 pursuant to which Fiber Bidco S.p.A acquired theFedrigoni Group, the Fiber Group’s financial structure
has changed with the issuance of a Euro 364.9 million
in aggregate principal amount of 11.00% Senior
Secured Notes due 2027 (the “Fiber Fixed Rate Notes”)
and the issuance of Euro 735.1 million Senior Secured
Floating Rate Notes due 2027 (the “Fiber Floating Rate
Notes”) with yield linked to the three-month Euribor
rate (with a 0.00% floor), plus a 6.00% contractually
set spread.
For the purpose of mitigate the risk of increase ininterest rate on the Floating Rate Notes, the Group
entered into a Interest Rate Cap (for a nominal amountof Euro 550 million) contract maturing on December
31, 2025 to hedge any increase in the future interest
expenses Euribor beyond 4.00%.
To demonstrate the effects of changes in interest
rates on the consolidated income statement andconsolidated equity, below are the results of asensitivity analysis, in line with IFRS 7, applying positiveand parallel shifts to the zero curve of market interest
rates. The shifts of the zero curve were equal to +/- 50
basis points.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis

Sensitivity analysis
A sensitivity analysis is set forth below, in which
the impact of an increase/decrease in the exchange
rates of the currencies in which the Group
primarily operates on the profit or loss for theperiod is presented:
Year ended December 31, 2022

(in thousands of Euro)
USD— Independent Auditor's Report

GBP

JPY

CNY

BRL

OTHER

10%

-10%

10%

-10%

10%

-10%

10%

-10%

10%

-10%

10%

-10%

Trade receivables

5,994(7,326)

1,508(1,843)

-

-

610

(746)

1,033

(1,262)2,308(2,821)

Trade payables(14,950) 18,272

(727)

888

(23)

28

(594)

726

(1,438)1,758(1,055)

1,290

Financial receivables

7,647(9,347)

6,036(7,377)

-

-

-

-

42

(51)

412

(503)

Financial payables(8,672)

10,599 (6,338)

7,747

-

-

(127)

155

(23)

28

(701)

857

Consolidated Statement of Cash Flows

Cash

5,364

(6,557)1,790(2,187)

-

-

389

(476)

437

(534)

305

(372)

Consolidated Statement of Changes in Equity

Currency derivatives

-

-

-

-

-

-

-

-

-

-

-

-

Notes to the Consolidated Financial Statements

Total(4,617)

5,641

2,269

(2,772)

(23)

28

278

(341)

51

(61)

1,269

(1,549)— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

Sustainability Report
Annual Financial
Report132

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements(in thousandsof Euros)

At December 31, 2022
Current

Past-due0-30 days

31-60 days

61-90 days

more than 90 days

Provision for
doubtful debts

Total

Trade receivables

97,787

21,850

3,667

1,447

7,180

(13,138)

118,793

Total

97,787

21,850

3,667

1,447

7,180

(13,138)

118,793

Sustainability Report

133

Annual Financial
Report

For trade receivables and contract assets, the Group
uses a simplified approach to calculate expected
losses; the Group monitors changes in credit risk
using a simplified approach based on brackets ofshared credit risk characteristics and past-due days.
The Group discloses the full amount of expectedcredit losses at each reporting date. The Grouphas defined a provision matrix based on historicalexperience, adjusted for forward-looking information
about specific types of debtors and their economic
environment, as a tool for determining expectedcredit losses.

The Group uses non-recourse assignments of tradereceivables. As a result of such assignments, which
provide for the substantially total and unconditionaltransfer to the purchaser of the risks and rewards ofthe receivables transferred, such receivables
are derecognized.
The following table sets forth an aging analysis of
the trade receivables at December 31, 2022, stating
separately the provision for doubtful debts:

The Fedrigoni GroupANNUAL FINANCIAL REPORT

3.2 Credit risk
The credit risk essentially coincides with the amountof trade receivables recognized at the reporting dates.
The Group has no significant concentration of credit
risk and no customers that alone account for morethan 2.25% of the Group’s sales revenues.
All the same, procedures are in place to ensure thatthe sales of products and services are conductedwith customers that have shown to be reliable in thepast; moreover, insurance policies are stipulated tocover any unexpected losses. The Group also checks
constantly its outstanding receivables and monitors
their collection within the established time limits.
The parties that handle cash and financial resource
management are restricted to high-profile, reliable
partners. There are two stages for recognizing
expected credit losses (“ECLs”):• Where the credit risk has not increased
significantly since initial recognition, the expectedcredit losses are recognized on the basis of theestimated risk of default over the next twelve
months (“12-month ECL”).
• Where the credit risk has increased significantly
since initial recognition, the expected credit losses
are recognized on the basis of the remaining life of
the past-due receivable regardless of the time atwhich default is expected to occur (“Lifetime ECL”).

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

At December 31, 2022

(in thousands of Euros)
On Demand
Commodity derivatives net balance
Lease liabilities

Within 1 year

In 1 to 5 years

Due after 5
years(14,735)

Total

Total
recognized(14,735)(14,735)(13,177)(38,506)(7,011)(58,694)(58,694)

Other financing(92,010)(2,852)(299,155)(394,017)(394,017)

Bond(17,975)(965,494)(983,469)(983,469)

Trade payables(573,013)(573,013)(573,013)

Total(710,910)(2,023,928)(2,023,928)(41,358)(1,271,660)

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Sustainability Report

3.3 Liquidity risk
Liquidity risk concerns the ability to meet obligations
arising on financial liabilities. Prudent management of
the liquidity risk stemming from the Group’s ordinary
operating activities entails keeping up sufficientlevels of cash holdings, short-term securities andfunding available through adequate credit lines. The
Group must have adequate stand-by credit lines inorder to finalize contracts and collect invoices, to an
extent that ensures financial flexibility. Managementmonitors the projections of cash turnover, including
undrawn credit lines, and available cash, on the basisof expected cash flows.
At December 31, 2022, the Group had stipulated
committed credit lines of Euro 289,332 thousand,of which Euro 230,955 thousand was undrawn.
The following tables set forth a maturity analysisof the financial liabilities at December 31, 2022. The
maturities are based on the period from the reporting
date to the contractual maturity dateof the obligations.

Index

Annual Report 2022

Annual Financial
Report134

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position(in thousands of Euros)

At December 31,
2022

A Cash86

B Cash equivalents

117,462

Consolidated Statement of Comprehensive Income

C Other financial assets

28,863

Consolidated Statement of Cash Flows

D Liquidity (A+B+C)
Current financial debt (including debt
E instruments, but excluding current
portion of non-current financial debt)
Current portion of non-current
F
financial debt
Current financial indebtedness
G(E+F)
Net current financial indebtednessH(G-D)
Non-current financial debt (excludingIcurrent portion and debt instruments)
J Debt instruments

146,411

Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

K Non-current trade and other payables
Non-current financial indebtedness
L(I+J+K)
M Total financial indebtedness (H+L)

70,96963,591
134,560

Fair value throughprofitor loss

Amortized cost

Financial assets
Non current assets

9,118
-

-

9,118

Trade receivables

118,793

Other assets

27,826

Financial assets

19,745Cash

117,548

Current derivatives

1,268

Current assets
Non-current amounts due to banks
and other lenders
Non-current amounts due tocontrolling shareholder
Non current liabilities

1,268

-

283,9121,013,863
299,155-

1,313,018

Trade payables

573,013

Other liabilities
Current amounts due to banks andother lenders
Current amounts due to controllingshareholder
Current derivatives

70,324

14,735

1,013,863

Current liabilities

14,735

1,002,012

The fair value of the derivatives was determined using
valuation techniques based on observable inputs
in active markets (Level 2).

(11,851)
48,369965,494

2,292,371

Gear ratio

43.71%

119,825
3,337-

766,499

302,492
1,304,504

Net operating invested capital incl.
shareholder loan

2,594,863

Gear ratio incl. shareholder loan

50.27%

135

Annual Financial
ReportNet operating invested capital

N Shareholder loan
O Total financial indebtedness andshareholder loan (M+N)

At December 31, 2022
Fair value through othercomprehensive income(in thousands of Euros)

Sustainability Report

Consolidated Income Statement

3.5 Financial assets and financial liabilities
by category
The following table presents the financial assets
and liabilities aggregated by category with their fairvalues stated.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

3.4 Equity risk
The Group’s objective in the area of equity risk
management is primarily to maintain the going
concern status in order to assure returns toshareholders and benefits to other stakeholders. The
Group also has the objective of maintaining an optimal
capital structure in order to reduce the cost of debt.
Below is the breakdown of the Group’s net financial
debt at December 31, 2022:

Index

Annual Report 2022

IndexAnnual Report 2022
4. Use of estimates and assumptions

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements(a)Provision for inventory obsolescence
The provision for inventory obsolescence reflects
management’s best prudent estimate of the losses
expected by the Group, determined on the basis ofpast experience, past market trends and expectedmarket trends.
Slow-moving raw materials and finished products
are analyzed regularly on the basis of past statistics
and the possibility to sell them at a lower price thanthat in a normal market transaction. If the analysis
results in the need to write down the inventory value,
an inventory provision is recognized.

136

Annual Financial
Report(c)Goodwill and fixed assets
Goodwill and fixed assets recognized in theConsolidated Financial Statements are tested for
impairment by calculating the value in use of the cash
generating units (“CGU”) to which goodwill has been
allocated. Using different methods for the different
business segments, the Group conducted testing inwhich goodwill was allocated to a group of CGU that
benefit from the synergies of the specific businesscombination (in accordance with IAS 36, paragraph 80).

Sustainability Report(b)Provision for warranty claims
The provision recognized for product warranty
claims represents management’s best estimate
at the reporting date. The estimate entails making
assumptions that depend on factors that mayvary over time and may have a significant impact
with respect to the current estimates made bymanagement for the preparation of the Group’s
financial statements.

The CGU/groups of CGU were identified, consistently
with the Group’s organizational and businessstructure, as uniform combinations able to generatecash flows independently from the continuing useof the assets allocated to them; the structures weregrouped together at a regional level to identify thebenefits deriving from the synergies.
Value in use was measured as the present value ofthe estimated future cash flows for each CGU in its
current condition, excluding estimated future cash
flows that could derive from future restructuring plansor other structural changes.
The Discounted Cash Flow (DCF) model was used,which requires future cash flows to be discounted witha risk-adjusted discount rate.
More information on the methodology used isreported in Note 7.
The business plan prepared by the Group’s
management on the basis of projections of the2022 financial performance prepared by thesubsidiaries’ management and approved by theGroup’s management, used for the impairment testing,is based on variables controllable by the Group’s
management and theoretical changes in exogenous
variables not directly controllable or manageable by
the Group’s management.
If the main estimates and assumptions used toprepare the business plans should change, the value
in use and the calculation of the recoverable valueof the assets could change. Therefore, the Group is
not able to assure that the assets disclosed in thefinancial statements at December 31, 2022 will not
suffer an impairment loss in the future.

The Fedrigoni GroupANNUAL FINANCIAL REPORTThe preparation of financial statements requires
management to apply accounting policies andmethodologies that, in some cases, depend
upon difficult or subjective assessments andestimates based on experience and assumptions
deemed reasonable and realistic given the specificcircumstances involved. Application of such estimatesand assumptions affects the figures reported in theConsolidated Financial Statements, including theconsolidated statement of financial position, theconsolidated income statement, the consolidated
statement of comprehensive income, the consolidated
statement of cash flows, and the related explanatory
notes. The final results of the items for which such
estimates and assumptions have been made mayvary from those reported in the financial statementsthat show the effects of the occurrence of the event
subject to the estimate, due to the uncertainty thatcharacterizes the assumptions and the conditions on
which the estimates were based.
The following is a brief description of the accounting
policies that entail the greatest extent of management
subjectivity in calculating estimates, and for which achange in the underlying conditions and assumptions
could have a significant impact on the consolidated
financial information.

IndexAnnual Report 2022
5. Segment reporting

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements(in thousands of Euros)
LPCS

Period ended December 31, 2022
Total reportable Intercompany
FSA
segments
eliminations

Total

Revenues from sales
to third parties

54,59871,754

126,352-

126,352

to other Group companies

1,026

25

1,051

(1,051)

Total sales revenues

55,624

71,779127,403(1,051)

126,352

Other operating income

22,2791,363

23,642(2,987)

20,655

Operating expenses(82,909)(71,379)(154,288)

3,914(150,374)

Transformation costs
Other non-recurring expenses /incomeAdjusted EBITDA (*)
Other non-recurring expenses /incomeTransformation costs
Depreciation, amortization andimpairment losses
Operating loss
Income from equity-accounted
investments in associates
Financial income

16,375

4,737

21,112

69

21,181

310

850

1,160

-

1,160

11,6797,350

19,029(55)

18,974

(310)

(850)

(1,160)-(1,160)(16,375)(4,737)(21,112)(69)(21,181)

The Fedrigoni GroupANNUAL FINANCIAL REPORT(9,758)(13,125)(880)

Sustainability Report

The criteria used to identify Segments are consistent
with the way in which the Group is managed. The
division into Segments for reporting purposescorresponds to the structure of the reports
periodically examined by the key management
personnel as defined in Note 36 which is considered
the chief operating decision maker.
The Group’s operations are split into two dedicatedsegments: the Luxury Packaging and Creative
Solutions (LPCS) Segment and the Fedrigoni SelfAdhesives (FSA) Segment. The Group’s management
evaluates the performance these Segments, using thefollowing as indicators:• Adjusted EBITDA;• r evenues by Segment, on the basis of where theproducts are sold, not where the billing company’shead office is located;• investments in property, plant and equipment.
The following tables break down Adjusted EBITDA by
Segment, reconciled with the Group net profit.2022:

8,320

Finance costs(56,090)

Loss before tax(61,775)

Income taxes

15,864

Loss from continuing operations(45,911)Loss(45,911)(*) Adjusted EBITDA is defined by the Group as net profit, income taxes, financial income and costs, the share of income from equity-accounted
investments, depreciation, amortization, impairment losses, and any non-recurring income and costs.

Annual Financial
Report137

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Below is the breakdown by Segment of theinvestments in property, plant and equipment:(in thousands of Euros)

Period ended
December 31,
2022

Luxury Packaging and Creative
Solutions Segment
Fedrigoni Self-Adhesives Segment
Total

The non-current assets, excluding goodwill (disclosed
separately in Note 7) and deferred tax assets,
are broken down below by geographical area:(in thousands of Euros)

At December 31,
2022

23,720Italy

1,150,655

5,783

Rest of Europe

196,265

29,503

Rest of world

212,195

Total

1,559,115

Revenues are broken down below bygeographical area:(in thousands of Euros)
Italy
Luxury Packaging and Creative
Solutions Segment (*)
Fedrigoni Self-Adhesives Segment (*)
Rest of Europe
Luxury Packaging and Creative
Solutions Segment (*)
Fedrigoni Self-Adhesives Segment (*)
Rest of World
Luxury Packaging and Creative
Solutions Segment (*)
Fedrigoni Self-Adhesives Segment (*)Total(*) Revenues by Segment include interdivision sales

Period ended
December 31,
2022
44,09628,524

Sustainability Report

15,93344,02020,21624,557
38,236
6,884
31,289126,352

No single customer accounts for more than 10%
of total revenues, and no single country besides Italy,
USA and the Chile accounts for more than 10%
of total revenues.

138

Annual Financial
ReportEach Segment has a complete and independent
structure, able to fulfill its own functions. Mosteliminations (“intercompany eliminations” in the tables
above) refer to inter-Segment margins eliminatedduring the aggregation phase. Transactions between
the Segments are conducted at arm’s length.
“Other non-recurring expenses/income” include
Euro 310 thousand in sundry taxes on the energy
sales recharged by our associate Consorzio Canale
Camuzzoni, Euro 33 thousand in legal expenses of our
Brazilian subsidiaries partially incurred on the claim,
Euro 822 thousand in bonuses granted to customers
arising from a short estimation in the 2021, Euro 163
thousand in Divipa agents termination fees, Euro
200 thousand in income arising from the reversal of
the allowance for stock damages deriving from thefire occurred at Barberà del Valles site and Euro 32
thousands in other non-recurring expenses.
“Transformation costs” refer to the total costs
incurred for consulting services and other clearly
identified costs primarily instrumental in transforming
the new Group, the item includes Euro 13,064
thousand in costs incurred by Fiber for the Fedrigoni
Group acquisition. Such costs regard the continuanceof projects intended to create a new organizational
structure capable of attracting new talent andoptimizing the pre-existing departments (financial,
operational, purchasing, sales) or are attributable toextraordinary merger and acquisition transactions
intended to define the Group’s structure. The neworganization aims to accelerate the Group’s growthand create operating efficiency.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

IndexAnnual Report 2022
6. Property, plant and equipment

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT(in thousands of Euros)

Total

-

-

-

197,508

232,394

11,773

4,004

30,94850,858527,485

Investments

1,581

15,521

305

232

2,678

9,186

29,503(5,759)

(2)

(19)

(681)

(208)

(6,669)(3,612)

(258)

(161)

(1,627)(5,886)

Impairment
Exchange rate
difference
Reclassifications

Notes to the Consolidated Financial Statements

Right-of-use asset-— Consolidated Financials

Consolidated Statement of Changes in Equity

Work in progress
and advances-

Depreciation

Consolidated Statement of Cash Flows

Other fixed assets-— Independent Auditor's Report

Consolidated Statement of Comprehensive Income

Equipment-

Disposals

Consolidated Income Statement

Plant and machinery

Balance at August 29,
2022
Business Combination— Management discussion and analysis

Consolidated Statement of Financial Position

Land and buildings

Other changes
Balance at December
31, 2022
Of which:

(17)

(17)

(395)

(324)

(828)

(44)

(21)

(506)

(2,118)

95

2,180

780

(2)

(1,656)

1,397

166

12

80

30

(36)

252

198,727

240,412

11,850

4,023

31,232

57,703543,947

308,750

902,171

58,701

27,751

31,232

95,762

1,424,367(110,023)(661,759)(46,851)(23,728)(38,059)(880,420)

Sustainability Report

Historical cost
Accumulated
depreciation(228)

The Fedrigoni GroupANNUAL FINANCIAL REPORTThe changes in this item are detailed below.

Annual Financial
Report139

HIGHLIGHTSFEDRIGONI GROUP

Index

Annual Report 2022

The following table presents the changes in theright-of-use asset in leases at the respective
reporting dates:
Right of use Plant
and machinery

Right of use
Equipment

Right of use Other
fixed assets

Total

-

-

-

-

-

40,996

231

125

9,506

50,858

116

6,881

9,186

(35)

(208)

— Independent Auditor's Report— Consolidated Financials

Disposals(173)

Depreciation
Exchange rate
difference
Balance at
December 31, 2022
Of which:(1,079)

(93)

(455)

(1,627)

(467)

(2)

(37)

(506)

ANNUAL FINANCIAL REPORT— Management discussion and analysis

Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

41,466231

146

15,86057,70368,8762,015

466

24,40595,762(27,410)(1,784)(320)(8,545)(38,059)

With respect to the main items comprising thechange in property, plant and equipment, “Business
Combinations” reflects the Fedrigoni Groupacquisition on November 30, 2022 and the result of therelated purchase price allocation (“PPA”) process.
The investments of Euro 29,503 thousand for theyear ended December 31, 2022 refer largely to (i) the
new coating machine at the Sassoferrato plant, (ii) the
new water treatment system in the Pioraco mill, (iii)
development of the block line at the Castelraimondo

Sustainability Report

Historical cost
Accumulated
depreciation

2,189

The Fedrigoni Group

Right of use Landand buildings(in thousands ofEuros)
Balance at August29, 2022
Business
Combination
Investments

SUSTAINABILITY REPORT

mill and (iv) other minor projects aimed to maintain andimprove the flexibility and efficiency of existing plantand equipment and to maintain and improve safetycontinued to be implemented at all the facilities. The
disposals of Euro 6,669 thousand for the month ended
December 31, 2022 refer mainly to sale and leasebackof laminators in the Arco and Sassoferrato mills.
At December 31, 2022, excluding the assets underleases, no property, plant or equipment was put up as
collateral on loans received by the Group.

Annual Financial
Report140

IndexAnnual Report 2022
7. Intangible assets

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Development(in thousands of Euros)
costs

Patent andintellectual
propertyrightsConcessions,licenses andtrademarks

Otherintangible
assetsGoodwillWork inprogress andadvances

Total

Balance at August 29,
2022
Business Combination

-

-

-

-

-

-

-

1,900

14,128

127,424700,962

1,320,418

9,023

2,173,855

Investments

136

3,455

102

56

2,624

6,373

Disposals
Amortization
Writedowns
Exchange rate
difference
Reclassifications
Other changes
Balance at December
31, 2022

(12)
(140)

(607)

(12)
(683)

(2,323)(3,753)
(100)

(5)

(5)

(98)

397

711

30

(438)

11

37

1,850

17,681

126,745(180)

698,582

(100)
(288)

(1,753)

(615)
(390)

1,320,418

9,794

Similarly to what is described above in Note 6,“Business Combinations” reflects increases inintangible assets due to the 2022 Fedrigoni Groupacquisition and the result of the related purchaseprice allocation (“PPA”) process.
The investments in intangible assets made during
the year ended December 31, 2022 amount to Euro
6,373 thousand and regard primarily regard primarily
the development costs and the cost incurredto purchase and customize ERP and inventory
management software.
The goodwill allocated is set forth below
by business segment:

The Fedrigoni GroupANNUAL FINANCIAL REPORTThe changes in this item are detailed below.

(in thousands of Euros)

Period ended December 31,
2022

2,175,070
LPCS

517,146

Total LPCS

517,146

FSA Europe

750,518

FSA America

52,754

Total FSA

803,272

61%

Total

1,320,418

100%

Sustainability Report

Cash Generating Unit (CGU)
39%

Annual Financial
Report141

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

2.2%

Pre-tax
WACC
8.9%

Post-tax
WACC
8.1%

FSA Europe

2.1%

8.9%

8.2%

FSA America

2.4%

11.0%

10.0%

CGU

G rateLPCS

In addition, the Group performed a first-scenario
sensitivity analysis using deteriorated variables of theimpairment test, WACC and G rate. The discount rate
was raised by 1.5%, and the G rate of the terminal value
was reduced by 1.0%. No impairment loss emerged,
even in deteriorating market conditions, from thesensitivity analysis conducted for the CGU tested
except for the “FSA America” CGU, which would suffer
impairment in the event of a combined 1.0% worseningof the WACC and 1.0% worsening of the G rate. The
post-tax WACC of indifference, i.e. the discount ratethat reduces the headroom to zero for each CGU, isreported in the following table:

No impairment loss emerged from the impairment test.
Post-tax WACC of indifference

LPCS

10.5%

FSA Europe

11.5%

FSA America

11.7%

In a second scenario, sensitivity analysis was carriedout on the margins of each CGU with respect to the2023-2025 explicit period, to identify the decrease ratethat would cause a substantial correlation between
the carrying amount of each CGU and the recoverable
amount. In this case, with reference to the CGU withless headroom (FSA America), a decrease in the
Adjusted EBITDA (as defined in Note 5) exceeding
11.9%, for all the years of the Business Plan would leadto a substantial alignment of the carrying amount withthe recoverable amount of the assets for some CGU.

142

Annual Financial
ReportSince the recoverable amount is determined on thebasis of estimates, the Group is not able to assurethat goodwill will not suffer an impairment loss infuture periods.
The operating cash flow estimate was takenfrom the 2022-2027 Fiber Group Business Planfor the period 2023 – 2025 and from the 2023
Budget. The estimated cash flows are based on the
Directors’ assumptions, which are cohesive with
the Group’s strategy in each business and market
where it operates, and they depend on exogenous
variables beyond management’s control, such as theperformance of currency exchange and interest rates,
the infrastructural investments of the countries where
the Group operates, and macro-policy or social factors
having a local or global impact. In accordance with IAS
36, such exogenous variables were estimated on thebasis of information known when the business plans
were drawn up and examined.

CGU

Sustainability Report

The assets were tested for impairment by comparing
the carrying amount attributed to the CGU, including
goodwill, with its recoverable amount (value in use).
The value in use is the present value of the estimatedfuture cash flows to be derived from continuing use of
the assets referring to the cash generating units andthe terminal value allocated to them.
In conducting the impairment test, the Fiber Group
used the most recent forecasts for the financial
and business performance envisioned for 2023
(as described in the section on “estimates andassumptions”), presuming that the assumptions andtargets would be met. In preparing its projections,management made assumptions based on pastexperience and expectations about the developmentsin the business segments in which the Group operates.

The terminal value was calculated by using a growth(G) rate in line with the average inflation expected in
the long term (2027) for the main countries where the
CGU operate, weighted with the respective revenues(2022). The discount rate used (WACC) reflects current
market assessments of the time value of money andthe risks specific to the asset. Below are the details:

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Impairment testing
As required by IAS 36, the Fiber Group tested thecarrying amounts of the tangible and intangible assets
recognized in its Consolidated Financial Statements
at December 31, 2022 with respect to theirrecoverable amounts. Goodwill and trademarks withan indefinite useful life are tested for impairment atleast annually, even when no indications of impairment
losses are present.
In accordance with IAS 36, the Fiber Group identified
the CGU representing the smallest identifiable groupof assets able to generate largely independent cash
inflows within the Consolidated Financial Statements.
CGU were identified by taking into account theorganizational structure, the type of business andthe methods with which control is exercised over theoperation of the CGU.
The CGU in which goodwill is recognized/allocated,
on which the impairment testing was based,
are as follows:• LPCS;• FSA Europe;• FSA America.

Index

Annual Report 2022

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position(in thousands of Euros)

Period ended December 31, 2022
Fedrigoni Group

Consolidated Income Statement
Consolidated Statement of Comprehensive Income

Revenues

126,352

Consolidated Statement of Cash Flows

Net income/(loss)(14,582)

Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

The revenue and net result for the year 2022 of thetarget entities assuming that the acquisitions had
occurred on January 1, 2022 (pro forma information)
are detailed in the table below.
(in thousands of Euros)

Pro forma revenues and net
result for the year ended
December 31, 2022
Fedrigoni Group

Revenues

2,134,317

Net income/(loss)

73,015

As a result of the acquisition of the Fedrigoni Group,
the Company recognized a goodwill of Euro 1,320,418
thousand. During the PPA process, the non-controllinginterests were measured as a pro-quota fair value ofthe net assets acquired.
As mentioned in Note 2.3, with respect to theacquisition of Fedrigoni Group, the purchase priceallocation was provisionally determined with theassistance of independent advisers in order to
identify the fair value of the assets acquired, liabilities
assumed and goodwill.
Under IFRS 3, if the initial accounting for a businesscombination cannot be definitively determined by
the end of the first reporting period, because the fairvalues to be assigned to the assets and liabilities
acquired can be determined only provisionally, theaccounting must use provisional amounts, and within
12 months from the acquisition date the adjustments
to the provisional amounts must be recognized,
effective retrospectively, thus determining thedefinitive balances of the acquisition.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Allocation of goodwill from business acquisitions
As noted, in November 2022, Fiber Bidco S.p.A.
completed the Fedrigoni Group acquisition which ispresented as business combinations in accordancewith IFRS 3 – “Business Combinations”.
The 2022 revenues and the net results of the entities
acquired after the acquisition date, which are includedin the consolidated income statement for the period
ended December 31, 2022, are presented in thetable below.

Index

Annual Report 2022

Sustainability Report
Annual Financial
Report143

IndexAnnual Report 2022
8. Investment property

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT

FedrigoniGroup

The changes in this item are detailed below:(in thousands of Euros)

FedrigoniGroup(in thousands of Euro)— Independent Auditor's ReportNon-current assets— Consolidated Financials

Property, plant and equipment

527,485

Due to banks and other lenders

43,143

Consolidated Statement of Financial Position

Intangible assets

853,437

Employee benefits

19,307

Consolidated Income Statement

Investment property

Provisions for risks and charges

32,421

Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Non-current liabilities

225

Tax receivables

21,425

Tax liabilities

Deferred tax assets

53,227

Deferred tax liabilities

263,531

Equity-accounted investments in associates

53,215

Other non-current liabilities

13,704

Other non-current assets

11,718

Total non-current liabilities

372,107

Total non-current assets

1,520,732

Due to banks and other lenders

723,599-

Due to controlling shareholder

Trade receivables

160,203

Trade payables

633,6179,154

Tax liabilities

30,065
103,840

Other current assets

103,005

Other current liabilities

Cash

240,815

Provisions for risks and charges

Derivatives

66,169Derivatives

Non-current assets held for sale
Total assets (A)1,044,523

225

Depreciation(2)

Balance at December 31, 2022

223

Historical cost

1,014

Accumulated depreciation(791)

Current Liabilities

465,177

Total current assets

Business Combination-

Inventories
Tax credits-

Sustainability Report

Current assets

Balance at August 29, 2022

Of which:— Management discussion and analysis(in thousands of Euro)Land and buildings

The Fedrigoni GroupANNUAL FINANCIAL REPORTThe fair value measurement of the assets andliabilities acquired (excluding the deferred tax assets
and liabilities, employee benefits and non-current
assets held for sale, recognized in accordance withthe applicable accounting standards) and the pricepaid are set forth below:

737

Total current liabilities

1,491,858

Total liabilities (B)1,863,965

Price paid for the acquisition (C)2,020,574

Fair value of net assets acquired (D=A-B)

702,580

1,290
2,566,545

Goodwill (C-D+E)

2,424
1,320,418

144

Annual Financial
ReportNon-controlling interests (E)IndexAnnual Report 2022
9. Equity-accounted investments

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

The key data of the approved financial statements ofConsorzio Canale Industriale G. Camuzzoni S.c.a.r.l. at
December 31, 2021 is set forth below:(in thousandsof Euros)

The main information included in the consolidated
statement of income of Eonys SAS and its subsidiaries
after the acquisition date, accounted for using theequity method, is shown in the table below.

Consorzio Canale Camuzzoni S.c.a.r.l.
(in thousands of Euros)

December 31,
2021

2020

Assets

14,822

14,753Equity13,06513,004

Liabilities

1,757

1,749

Revenues

3,453

3,046

Net profit

61

57(in thousands of Euros)

Eonys SAS and its
subsidiaries
At December 31, 2022

Non-current assets

28,690Current assets

21,574Non-current liabilities

19,823Current liabilities

23,062

5,107
5,272

(1,370)(190)(1,560)(2,845)- Interest income

806- Interest expense(2,131)- Income tax expense (income)(76)

The carrying amount of the Group’s interest in the
joint venture recognized in the consolidated financial
statements on the basis of the above summarized
financial information is shown in the table below.
(in thousands of Euros)

Net assets of Eonys SAS
and its subsidiaries
Fedrigoni’s % of theinvestment
Goodwill
Carrying amount ofFedrigoni’s interestin the joint venture

Eonys SAS and its
subsidiaries
Period ended December
31, 2022
7,379
50.1%
46,45150,14818,996145

Annual Financial
Report

The above assets and liabilities
include the following:- Cash- Current financial liabilities(excluding trade and otherpayables and provisions)- Non-current financial liabilities(excluding trade and otherpayables and provisions)

The above profit/(loss) for theperiod include the following:- Depreciation and amortization(1,370)

Sustainability Report

With respect to the Tageos Group, the summarized
financial information included in the tables below
represents the amounts of the joint venture’s
consolidated financial statement prepared inaccordance with IFRS Standards.
The main information included in the condensed
consolidated statement of financial position of Eonys
SAS and its subsidiaries after the acquisition date,accounted for using the equity method is shown in thetable below.

Revenues
Profit/(loss) from continuing
operation
Profit/(loss) for the period
Other comprehensive income
attributable to the owners of theCompany
Total comprehensive profit

Eonys SAS and its
subsidiaries
Period ended December
31, 2022
28,108The Fedrigoni GroupANNUAL FINANCIAL REPORTThis item, amounting to Euro 126,059 thousand,represents the investment in Consorzio Canale
Industriale G. Camuzzoni S.c.ar.l. in Verona, an entitythat produces hydroelectric power, in which theGroup owns a 25% stake, the investment in Eonys
SAS, a French company that owns the entire sharecapital of Tageos SAS and its subsidiaries (collectively
the Tageos Group), that operate in the design,
manufacturing and distribution of radio-frequency
identification (RFID) inlays and tags, in which the Groupowns a 50.1% stake, and the investment in Papeterie
Zuber Rieder, a European specialty label paper
producer focusing on the European wine andspirits segment.
For the investment in Eonys SAS, acquired byFedrigoni Group on April 26, 2022 and accounted
for as Euro 50,148 thousand, the Group entered intoa shareholder agreement which regulated the joint
venture between the Group and theother shareholders.
For the investment in Papeterie Zuber Rieder,
acquired, indirectly through our subsidiary Fedrigoni
France Sarl, on December 15, 2022 and accounted
for Euro 73,724 thousand, the Group, in accordancewith the purchase agreement signed with the Sellers,
started to control the managing body (“Strategic
Committee”) of Papeterie Zuber Rieder only at the
beginning of 2023, while the former managing director
remained as President of the company for at least thefirst six months following the completionof the acquisition.
At the time of preparation of the Consolidated
Financial Statements, the financial statements ofConsorzio Canale Industriale G. Camuzzoni S.c.a.r.l. forthe year ended December 31, 2022 had not yet been
approved at its General Meeting.

IndexAnnual Report 2022
10. Tax credits

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position(in thousands of Euros)

The carrying amount of the Group’s interest in the
joint venture recognized in the consolidated financial
statements on the basis of the above summarized
financial information is shown in the table below(in thousands of Euros)

Net assets of Papeterie
Zuber Rieder
Fedrigoni’s % of the investment

Papeterie Zuber Rieder
At December 31, 2022

Consolidated Income Statement

Non-current assets

10,609Consolidated Statement of Comprehensive Income

Current assets

28,919Consolidated Statement of Cash Flows

Non-current liabilities

909

Consolidated Statement of Changes in Equity

Current liabilities

7,083

Notes to the Consolidated Financial Statements

31,536100.0%
42,18873,724(in thousands of Euros)

At December 31, 2022
Non current

Current

Total

Tax Credits

17,426

4,505

21,931

Total

17,426

4,505

21,931

The non-current tax credits of Euro 17,426 thousandrefer mainly to the recognition in Fedrigoni S.p.A.’s
separate financial statements of tax credits arisingon the tax relief, under Decree Law 185/2008, for theexcess values regarding intangible assets (goodwill
and customer list) recognized in the consolidated
financial statements.
The current tax credits result primarily from theadvance tax payments of the year ended December
31, 2022.

Sustainability Report

The above assets and liabilities
include the following:- Cash- Current financial liabilities(excluding trade and otherpayables and provisions)- Non-current financial liabilities(excluding trade and otherpayables and provisions)

Goodwill
Carrying amount of Fedrigoni’s
interest in Papeterie
Zuber Rieder

Papeterie Zuber Rieder
Period ended December
31, 2022

This item is detailed below:

The Fedrigoni GroupANNUAL FINANCIAL REPORTWith respect to Papeterie Zuber Rieder, thesummarized financial information included in thetables below represents the amounts of the entity’s
consolidated financial statement prepared inaccordance with IFRS Standards.
The main information included in the statementof financial position of Papeterie Zuber Rieder after
the acquisition date, accounted for using the equity
method, is shown in the table below.

7,473
348
0

Annual Financial
Report146

IndexAnnual Report 2022
11. Deferred tax assets and liabilities

HIGHLIGHTSThis item is detailed below:

FEDRIGONI GROUP(in thousands of Euros)— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position

56,621

Total deferred tax assets

56,621

Deferred tax liabilities(246,468)

Total deferred tax liabilities(246,468)

Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Total net deferred tax
assets/(liabilities)(189,847)(in thousands of Euros)

August29, 2022

Inventory valuation
Valuation of tradereceivables
Writedown of property,
plant and equipment
Provisions for risks
Difference between
fiscal and statutory
values of tangible andintangible assets
PPA allocation

Effect on Income
Statement
4,522
627

Exchange ofBusiness
rate difference combination(3)
13,464
(8)

(2)

2,256

2,254

268

(9)

6,966

707

(9)

430

1,128

21,801

13,823(7,978)

488

2,208

15

4,746

IFRS 16

113

Other
Total deferred tax
assets

3,660

(68)

1,583

3,845

(85)

53,227

107

August29, 2022

37

144
(43)

113

168

10

6,979
113

59

(550)

4,625

(425)

56,621

Effect on Income
Exchange ofBusiness
Effect on statement ofDecember
Reclassifications
Statement
rates difference combination comprehensive income
31 2022(587)

127(21,631)

1,446

51

38

(1,386)(1,297)

22

(481)

(459)

(5)

(391)
(86)

(20,645)

66

(330)

(113)

(199)

17

(96)

(79)

(11)

(170)

(181)

(18,255)IFRS 16(222)

PPA allocation

544

Other
Total deferred tax
liabilities

(963)

5

(650)

(1,154)178(263,531)

-

102

8

18,256

1

(666)

(880)

(219,805)(219,261)
18,170(1,530)(3,138)(131)(246,468)

147

Annual Financial
ReportRecognition of leases
Actualization of
employee benefits
Actualization of social
security liabilities
Foreign exchange andother differences
Derivative fair values

7,227

Sustainability Report

(3)

2

102

-

December
31 2022
17,983
2,075

(387)

Valuation of tangible
and intangible assets
Effect of leaseback
transaction
Provisions for risks

Reclassifications

1,456

Derivative fair values
Foreign exchange andother differences
Actualization of
employee benefits
Tax losses(in thousands of Euros)

Effect on statement ofcomprehensive income

The Fedrigoni Group

Deferred tax assets— Management discussion and analysis

At December 31,
2022

SUSTAINABILITY REPORTANNUAL FINANCIAL REPORTThe composition of these balances is shown below:

IndexAnnual Report 2022
12. Inventories

13. Other assets

HIGHLIGHTSThis item is detailed below:

FEDRIGONI GROUP

The other assets are stated in the financial statements
net of the related provisions:(in thousands of Euros)

SUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Total

128,048
109,672(in thousands of Euros)

At December 31, 2022

Other gross assets

123,471

Provision for other doubtful debts(3,148)Other net assets

120,323447,217

The item is detailed below:
Inventories are shown net of the provision for
inventory obsolescence as detailed below:

Use
Exchange rate
difference
Other changes
Balance at
December 31,
2022

Total

85,606
3,930

(492)

(2,413)(2,905)

(9)

(158)

(167)

(377)

(673)

(1,050)10,60574,80985,414

No inventories were put up as collateral to guaranteeloans received by the Group.

At December 31, 2022

- Sundry receivables

23,406- Sundry tax credits- Prepaid expenses and accrued
income- VAT credit- Other financial credits andcredits for contributions- Security deposits

31,693- Due from social security entities

235- Due from employees

618

Total other assets

120,323

Of which: non-current

15,5407,219
24,722
29,9162,514(in thousands of Euros)
Balance at August 29, 2022
Business Combination
Balance at December
31, 2022

Provision for otherdoubtful debts
3,148
3,148

148

Annual Financial
Report

The most significant amounts comprising the sundryreceivables include Euro 7,211 thousand due forFedrigoni S.p.A.’s white certificates and the remaining
receivable due from the buyer on the sale in 2021of the business unit that included the Bollate plant
dedicated to the production of security items. White
certificates are awarded by the respective authorities
for the achievement of energy savings through theuse of energy-efficient technology and systems.
White certificates are tradable instruments giving
proof of the achievement of specific energy
savings percentages.

Sustainability Report

Provision for
Provision for obsolescence(in thousands ofraw material of finished andEuros)
obsolescence work in progressproducts
Balance atAugust 29,
2022
Business
8,895
76,711
Combination
Charge2,588
1,342(in thousands of Euros)

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Raw materials and goods
Work in progress and semi-finishedgoods
Finished products

At December 31,
2022
209,497

The tax credits are mainly related to Italian
government’s tax credits of Euro 16,988 thousand
granted in 2022 to cope with rising costs of gas, anda Euro 4,815 thousand for the tax credit deriving froman extraordinary and solidarity income tax paid by
Fedrigoni S.p.A. that was considered no longer due
and applicable.
The VAT credit is attributable mainly to the Imposto
sobre Circulaçao de Mercadorias e Serviços (“ICMS”
or Tax on Commerce and Services) receivables due
to Arconvert-Ritrama do Brazil Ltda (Euro 13,804 at
December 31, 2022), for which that company applied
for use of the tax credit offsetting regime. To date, thecompany is still awaiting the outcome of the related
authorization process.
The other financial credits and credits forcontributions mainly relates to Euro 10,350 thousandin cash collateral and related bank guarantees
accounted for in connection with the Commodity
Swaps stipulated by Fedrigoni Group in April 2022,
the Euro 10,731 thousand of loan made available by
the Group to Mohawk Fine Papers Holding Co., Inc. in
relation to a second lien loan, security and guarantee
agreement dated August 2022 and Euro 4,000
thousand in financial receivables of Tageos Group.
The amount due from employees consists largely ofloans and advances given to employees and agents.
The table below presents the changes in the provision
for other doubtful debts:

HIGHLIGHTS

14. Trade receivables(in thousands of Euros)

At December
31, 2022
131,931

FEDRIGONI GROUP

Gross trade receivables
Provision for doubtful debts(13,138)SUSTAINABILITY REPORTNet trade receivables

118,793— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials

The table below presents the changes in the provision
for doubtful debts:(in thousands of Euros)

Provision for
doubtful debts-

Balance at August 29, 2022

Consolidated Income Statement

Business Combination

12,306Charge

1,010

Use

(24)

Exchange rate difference(35)

Other changes(119)

Balance at December 31, 2022

13,138

Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

As explained in Notes 6 and 7, “business combinations”
reflects the effects of the 2022 Fedrigoni
Group acquisition.

This item is detailed below:

The equity of the Group at December 31, 2022 is set
forth below:(in thousands of Euros)

At December 31, 2022

Bank deposits

117,462

Cash on hand

86

Total

117,548(in thousands of Euros)
Balance at August 29, 2022

At December 31, 2022-

Share capital

40,000Share premium reserve

1,345,392

Legal reserve

16. Derivatives(49,151)(Loss) of the year

(45,882)

Equity1,290,359

The share capital at December 31, 2022 was Euro
40,000 thousand and consisted of 40,000,000
ordinary shares issued and fully paid with a par valueof Euro 1.00 per share. The share premium reserve
refers to the amount received in excess of its facevalue. The other reserves include actuarial gain/loss,
cash flow hedge and exchange rate differences.

149

Annual Financial
ReportThe balance derives primarily from the fair value
measurement of Commodity Swaps stipulated by
the Group to hedge against price swings for certain
product inputs.
During 2022, Fedrigoni S.p.A. entered into fixed-forfloating commodity swaps for a total notional valueof 1,130 thousand MWh of gas and in December 2022
the Group stipulated commodity swaps for a total
notional value of 36,000 tons of pulp, reducing the risk
associated with changes in pulp prices.
At December 31, 2022 the net payable regarding
the derivatives traded by the Company was Euro
14,735 thousand, attributable to current liabilities,
mainly referring to the current portion of commodity
derivatives recognized directly in equity in “otherreserves” and presented in the statement ofcomprehensive income among items that will bereclassified subsequently to profit and loss.
At December 31, 2022 the net receivable regarding
the derivatives traded by the Company was Euro
1,268 thousand and derived from the fair value
measurement of Interest Rate Cap (IRC) enteredinto by the Group to manage interest rate risk on the
Floating Rate Notes, applying a partial term hedge withan interest rate cap of the Euribor set at 4.00%.

Other reserves

Sustainability Report

Consolidated Statement of Financial Position

17. Equity

The Fedrigoni GroupANNUAL FINANCIAL REPORT

15. Cash

Index

Annual Report 2022

IndexAnnual Report 2022
18. Due to banks and other lenders

HIGHLIGHTSThis item is detailed below:

FEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

At December 31, 2022

(in thousands of Euros)Interest
Rate

Current
portionPortion with due after 12 months
2024

2025

2026

2027

Financial debt

Variable

30,033

1,133

813

663

243

Lease liabilities
Notes issued - principal
portion fixed
Notes issued - principal
portion floating
Notes issued - interest
portion fixed
Notes issued - interest
portion floating
Other financing

Variable

13,177

13,07010,840

8,480

6,116

Total

Total
Afterward
32,885
7,011

58,694

Fixed

329,250

329,250

Variable

636,244636,244

Fixed

10,727

10,727

Variable

7,248

7,248

Variable

58,64058,640119,825

14,203

11,653

9,143

6,359

972,505

1,133,688

Lease liability
The Euro 58,694 thousand at December 31, 2022
is the remaining balance due on leases stipulatedby the Group.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Financial debt
The “financial debt” of Euro 32,885 thousand at
December 31, 2022 includes bank overdrafts, at thereporting date of these financial statements.

Sustainability Report

Notes“Notes issued - principal portion fixed” at December
31, 2022 has a balance of Euro 329,250 thousand andconsists of the Fiber Fixed Rate Notes, the Fiber Tap
Notes and the Fiber Private Fixed Rate Notes.
“Notes issued - principal portion floating” at
December 31, 2022 has a balance of Euro 636,244
thousand and consists of the Fiber Floating Rate
Notes and the Fiber Private Floating Rate Notes.
“Notes issued - interest portion fixed” at December
31, 2022 has a balance of Euro 10,727 thousand andrefers to the interest expense accrued on the Fiber
Fixed Rate Notes, the Fiber Tap Notes and the Fiber
Private Fixed Rate Notes.
“Notes issued - interest portion fixed” at December
31, 2022 has a balance of Euro 7,248 thousand andrefers to the interest expense accrued on the Fiber
Floating Rate Notes and the Fiber Private Floating
Rate Notes.

150

Annual Financial
ReportOther financing
The “current other financing” of Euro 58,640 thousand
at December 31, 2022 refers primarily to therecognition of the recourse portion regarding a plan
to optimize trade working capital.

19. Due to controlling shareholders

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows

20. Employee benefits

Notes to the Consolidated Financial Statements(in thousands of Euros)

Employee benefits-

Business Combination

19,307

Finance costs(61)

Actuarial gains/(losses)(2,107)Use(1,055)Charge189

Exchange rate difference(100)

Other changes(1,061)

Balance at December 31, 2022

15,112This item is detailed below:(in thousands of Euros)

At December 31, 2022

At December 31,

Provision for agency termination

3,453

2022

Provision for environmental risk

4,005

Provision for sundry risks

24,521

Total

31,979Economic assumptions
Inflation rate

2.5%

Discount rate

3.6%

Salary increment“TFR” (provision for severance
indemnities) rate of increase

1.0%
2.7%

Probability of resignations/dismissals

7.7%

Probability of advance payouts

2.7%

The changes in this item are presented below:(in thousands of Euros)
Balance at August 29, 2022

At December 31, 2022-

Business Combination

32,421

Increases

1,750

Use
Exchange differences
and other changes
Balance at December 31, 2022

(313)
(1,879)31,979Sustainability Report

Balance at August 29, 2022

The actuarial assumptions used to determine theobligation for employee benefits are detailed below:

Demographic assumptions

The changes in this item are presented below:

Consolidated Statement of Changes in Equity

21. Provisions for risks and charges

The Fedrigoni GroupANNUAL FINANCIAL REPORTThe “Non current financing due to Controlling
Shareholders” of Euro 299,155 thousand at December
31, 2022 refers to the principal portion of thesubordinated shareholder loan granted by
Fiber Midco.
“Current financing due to Controlling Shareholders”
at December 31, 2022 has a balance of Euro 3,337
thousand and refers to the interest expense accruedon the subordinated shareholder loan granted by Fiber
Midco (see “Significant events of the year”).

Index

Annual Report 2022

Annual Financial
Report151

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements(in thousandsof Euros)
Balance at August29, 2022
Business
Combination
ChargeUse
Exchange rate
difference
Other changes
Balance at
December 31, 2022

Provision
for agency
termination

Provision for
Provisions
Provision forenvironmental
for warranty
litigation risks
riskclaimsProvisions
for exit
incentives

Other
provisions

Total

-

-

-

-

-

-

-

3,395

3,796

10,061

4,775

10,39432,421

171

314

400

156

709

1,750

(113)

(105)

(66)

(29)

(313)

(3)

(18)

(41)

(20)
(1,838)
3,453

4,005

8,603

11,056

31,979those for normal paper products. In addition tocovering specific situations, for which negotiations
to settle claims are in progress, the provision
serves to cover costs that are reasonably expected
to be incurred, on the basis of past experience, tosatisfy the warranty obligations.
• The provision for litigation risks (Euro 8,603
thousand) and other provisions (Euro 11,056
thousand) refer to liabilities that could ensue frompending lawsuits, disputes, business arrangements
entered into by the Group, the purchase priceallocation process and risks relating to the refundof the amount collected from the sale of whitecertificates in previous periods. Even though thewhite certificates, which are recognized for an
innovative investment program from which energy
savings may derive, are initially considered qualified
to produce such savings and are accounted forwith inclusion of the energy efficiency title (“TEE”)
payments, they are subject to review while they
are in effect. The related provision accounts forthe risk on those projects for which the relevant
authorities have reconsidered the previously
assigned qualification. The “provision for litigation
risks” includes the Fedrigoni S.p.A.’s allocation forrisks mainly on uncontracted distributors abroadand disputes with suppliers.

152

Annual Financial
Report

The provision for sundry risks consists of thefollowing:• The provision for warranty claims (Euro 4,862
thousand) consists of costs that could be incurredin the event of claims regarding the supply ofbanknotes, security products (concerning sales
occurring before the transfer of the security
business to Fase S.r.l.) and other paper products.
During the period the provision was reduced as aresult of the calculation of the difference between
new risks and the cessation of previous periodrisks, especially in the security segment, so that theprovision could represent the presumable amountof risk. Risky situations relate particularly to thesales volume of security products realized in recent
years, whose segment features greater productcomplexity and warranty terms that are longer than

4,862

Sustainability Report

The provision for agency termination is the estimatedliability due for agency severance benefits.
The provision for environmental risks mainly refers
to outlays that the Group estimates could be incurred
to clean up some of the land it owns. The 2022 charge
is attributable to the provisions allocated for Gruppo
Cordenons S.p.A.’s use of CO₂ permits in excess of
those available.

(1,838)The provision allocated by Fedrigoni S.p.A. had
included the risk for probable legal actions
contemplated by Legislative Decree 268/2005, Article
7 that could be initiated by subcontracted carriers
against Fedrigoni S.p.A., the purchaser, due to thedifficult financial situation in which the main freight
service provider found itself because the Company, asa co-obligor, allegedly should have met the provider’sobligations given the persisting situation of insolvency.
The provision allocated represents an additional
probable cost of the Company deriving from the
supplier’s bankruptcy.
Fedrigoni S.p.A. stipulated an 8-year lease for the
new headquarters at via Fermi 13/F in Verona witha right of withdrawal, after the initial period, upon
payment of compensation of Euro 200 thousand. The
compensation refers to customization costs incurredby the owner and acknowledged by the Company. The
amount of any compensation to be paid is reflected in
the provision for litigation risks.
Fedrigoni S.p.A. has a long-standing dispute pending
with the Italian tax authorities concerning diverging
application and payment criteria for electricity
consumption taxes.
With respect to the dispute regarding years 1993 to
1997, since Fedrigoni S.p.A. considers the tax claims to
be unjustified both on their merits and by law, it filed
an appeal with the Italian Supreme Court to overturnthe Ancona Appellate Court’s decision with which
the lower court denied the previous appeal. Pursuant
to that decision, the contested amount of Euro 511
thousand was paid. On February 28, 2019 the ItalianSupreme Court rebutted the appeal, ruling in favor of
the Ministry of Finance Customs Department and theAncona technical office for direct taxes.
The Italian tax authorities, which by then considered
the tax payment criteria to be definite, served anotice of payment for years 2008 to 2013 regarding
electricity consumption at the Rocchetta plant,

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

IndexAnnual Report 2022
22. Trade payables and other liabilities

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

This item is detailed below:(in thousands of Euros)
Trade payables

At December 31, 2022
573,013

Other liabilities:- Due to employees- Accrued expenses and deferredincome- Social security

43,257- Withholding taxes

7,751- Sundry payables

9,781- Due to supplementary pension fund

1,894

- Advances

1,616- VAT due
- Due to Directors and Statutory
Auditors- Sundry tax liabilities

8,733

13,928Other liabilities

105,704

Total

678,717

Of which: non-current

13,6694,968
13,701

75

Sustainability Report

In 2021, Euro 800 thousand was added to the provision
following the Marche Regional Tax Commission’s
adverse ruling notified in January 2022. During
the year, procedures were initiated to arrive at asettlement of the various lawsuits pending with
the Customs Agencies of Civitanova, Marche andAncona. The probable cost of the dispute is includedin the provision.
In the previous year a request for compensation
was submitted by a distributor outside Europe foran alleged breach of a distribution agreement, so a
provision was allocated to cover such situation ofprobable risk. That provision was increased in 2021
and 2022 to take into account the developments of thecase and to include additional situations of probablerisk concerning other distributors abroad.
The provision includes costs that the Company could
incur as a result of incentivized voluntary terminationof employment, under the agreements stipulated withthe employees involved within the date of presentationof the draft financial statements.
The provision also covers other marginal situationsof risk.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Mainly to facilitate easy access to credit for its
suppliers, the Group has agreed in selective cases toback the supplier on factoring arrangements. Based onthese agreements, the supplier has the discretionary
option to sell receivables due from the Group to a factor
and receive the amount owed before the due date lessa percent discount. That discount is generally lessthan the trade discount for early payment commonlyused in the market. The Group will pay the factor for
the full invoice amount on the scheduled payment
date as required by the invoice. As the arrangement
does not permit the Group to extend finance by paying
later than the Group would have paid its supplier, theGroup classifies the payables referring to the reverse
factoring transactions as “trade payables”.

153

Annual Financial
Reportand another notice of payment for years 2008
to 2012 regarding electricity consumption at theCastelraimondo plant. Fedrigoni, which continues tomaintain its position based on the groundlessness andillegitimacy of the claims, filed appeals at the Anconaand Macerata Provincial Tax Commissions. The
Commissions met with each other, and although theMacerata Provincial Tax Commission fully accepted
the appeal, the Ancona Provincial Tax Commission
accepted only part of it and reduced the penalties
imposed considerably, but denied the grounds
regarding the calculation of the taxes. Fedrigoni
filed for appeal and opposed the demands of theother party. The Italian tax authorities, encouragedby the new ruling, served notices of payment for
2014, 2015 and 2016 limited however to the portionof electricity consumption of the plant located in
the Province of Ancona. Fedrigoni lodged appeals
against these claims as well at the Ancona Provincial
Tax Commission. With respect to the 2014 and 2015
disputes, the Commissions were joined with results
clearly similar to the previous ones. In 2019, in view ofa possible statute of limitations for issuing measures,the authorities served payment notices for the 2013
electricity consumption at the Castelraimondo plant.
Payment notices have not been served yet for theyears 2017, 2018 and 2019. Fedrigoni, conscious of thevalidity of its arguments, which are also backed up by
opinions of external consultants, will lodge appeals
and oppose the demands of the other party. On March
9, 2014 the Italian tax authorities filed an appeal at the
Italian Supreme Court restricted to a residual partof the decision issued by the Marche Regional Tax
Commission, which had fully accepted the appeal filed
regarding direct taxes of 2000 and 2001. Nevertheless,
the Company decided to oppose it and notified acounterclaim at the Attorney General’s Office.

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

was being developed and thus is not in a position
to factually reconstruct what happened at the timeof the events, considered it necessary, pending the
tax audit, to carry out in-depth internal and external
investigations to verify which and how many activities
were performed by the contractual counterparties
with regard to the patented idea to which the licensing
agreements refer. However, at the date of thesefinancial statements, given the contents of the Tax
Audit Report, Fedrigoni S.p.A. does not believe thatthe investigations have revealed certain and decisive
facts on the matter. For the reasons explained,
Fedrigoni S.p.A. has decided to adopt the mostprudent approach possible, maintaining unchanged
the amount of the payables due to the suppliers
referred to, considering that if the counterparties
should win the civil lawsuit, the related amountrecognized in the financial statements would be
adequate, whereas a contingent gain would emerge if
Fedrigoni S.p.A. should win the case.
The “other liabilities” refer largely to the increasein the amount due to employees for bonuses andperformance-related pay. The Directors consider
that the carrying amount of the trade payables isapproximately their fair value.

154

Annual Financial
Reportriconvenzionali”) in the aforementioned civil lawsuit
pending before the Court of Verona challenging the
Court’s territorial jurisdiction, resisting all plaintiffs’
claims, and raising counterclaims. On June 29,2022, the Court of Verona upheld the Company’s
objection of lack of jurisdiction in favor of the Courtof Venice. In October 2022, the case was resumed by
the aforementioned companies before the Court of
Venice and the next hearing is scheduled around endof September 2023.
If the Civil Court should confirm that Fedrigoni S.p.A.
owes the royalties to those companies, the amountclaimed in the lawsuit would not meet the calculation
criteria adopted by Fedrigoni S.p.A. in the years
concerned and based on the sales data regarding themarketing of the patented products in question as perunderlying contracts; such criteria would result in aconsiderably lower amount due than the one claimed
in the civil lawsuit, and such lower amount has beenrecognized prudently among the trade payables until
the civil court establishes whether or not the amounts
are due.
Therefore, on one hand Fedrigoni S.p.A. has received
the Tax Audit Report disputing the contribution givenby the aforementioned companies to the developmentof the patent stated (supporting the claim with various
factual elements and testimonies given), and on theother hand it is being sued by those companies which,in contrast, are demanding royalty payments for thecontribution given in the development of the patent(using as evidence, among others, a testimony having
opposite contents compared to those obtained by
the Guardia di Finanza). In light of such contradictory
historical reconstructions, Fedrigoni S.p.A.’smanagement, which is completely new compared withthe one present in the organization when the patent

Sustainability Report

The trade payables include the allocation of invoices
to be received in an amount of Euro 12,644 thousand
from some foreign entities directly or indirectly
associated with a longtime business partner ofFedrigoni S.p.A. operating in the Indian market ofpaper money and security items, with which Fedrigoni
S.p.A. had stipulated licensing agreements for the useof a specific method patent regarding a security item
registered in the name of and used by Fedrigoni S.p.A.
and the related intellectual property rights.
As explained in the section on “Subsequent events”
of Fedrigoni Group consolidated financial statements
for the year ended December 31, 2021, due to the audit
initiated by the Guardia di Finanza in 2019, Fedrigoni
S.p.A.’s directors severed all ties with the contractual
counterparties and effectively suspended all royalty
payments, while accounting for - in accordance withcorrect accounting principles - trade payables due on
invoices to be received. In this manner, the corporateboards intended to freeze the existing situation,
on one hand accounting for the costs relating to
the royalties without however providing for their
payment, and on the other hand not deducting therelated costs for tax purposes. In March 2022, due
to the suspension of relations as referred to above,
the aforementioned companies linked to Fedrigoni
S.p.A.’s business partner initiated a civil lawsuit before
the Italian Civil Court demanding the payment by
Fedrigoni S.p.A. of the royalties allegedly due under
the licensing agreements, which were quantified inEuro 18,200 thousand, plus general expenses anddamages apparently incurred due to the non-paymentof such royalties, bringing the total amount to Euro
18,782 thousand. In turn, in June 2022, Fedrigoni
filed its statement of defense and counterclaims(“Comparsa di costituzione e risposta con domande

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

IndexAnnual Report 2022
23. Current tax liabilities

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

In May 2022 Fedrigoni resumed its discussions
with the tax authorities for a possible settlement of
the tax disputes referring to fiscal years 2014-2017.
Specifically, Fedrigoni filed, on May 16, 2022, petitions
for tax settlements (Istanze di accertamento con
adesione) for the years 2015-2017, which were followed
by invitations to appear by the tax authorities. Afterseveral meetings, also to take advantage of the 2023
Budget Law that provided for the possibility of settling
the pending disputes with a reduction of penalties to
1/18, on February 15, 2023, Fedrigoni executed with the
tax authorities (i) a judicial conciliation (Conciliazione
giudiziale) for the year 2014 and (ii) the settlementagreement deeds (Atti di accertamento con adesione)
for the years 2015-2017. The overall tax liability (20142017) was reduced to Euro 8,828 thousand (includinginterest). On March 2, 2023, Fedrigoni paid to thetax authorities the amounts due under the judicial
conciliation and settlement agreements for the
fiscal years 2014–2017. On March 14, 2023, Fedrigoni’s
previous majority shareholder paid to Fedrigoni anamount of Euro 2,200 thousand, pursuant to theindemnification obligations set forth in the contractual
agreements entered into in connection with the matterat hand.
Additional details on the actions taken and a
related civil lawsuit in progress are contained in thesections on “Trade payables and other liabilities” and“Subsequent events”.

Sustainability Report

155

Annual Financial
Reportname of and used by Fedrigoni S.p.A. and the related
intellectual property rights. The audit concluded inearly April 2022 with the notification of a new Tax Audit
Report by which the Guardia di Finanza - reportingin substance the alleged impossibility of identifying
evidence of the inventive contribution given by the
aforementioned foreign companies to the patent
used by Fedrigoni S.p.A. – alleged that there weresome substantial violations regarding direct taxes
and regional business tax (IRAP) which, in terms ofadditional taxes, would translate into a claim of Euro
5,752 thousand, plus penalties and interest. Therefore,
Fedrigoni S.p.A. decided to increase the tax liabilities
in light of the recently notified Tax Audit Report,
bringing the total amount of the tax liabilities for theperiod from 2014 to 2017 to Euro 8,828 thousand. Suchamount was determined on the basis of a preliminary
assessment of the potential outcomes of settlement
discussions with the Italian Revenue Agency,
and taking into account also the indemnification
obligations undertaken by Fedrigoni S.p.A.’s previous
majority shareholder pursuant to the contractual
agreements entered into in connection with the matterat hand.
With respect to such matter, pending the tax audit,
in 2020 Fedrigoni S.p.A.’s directors severed all ties
with the contractual counterparties and effectively
suspended all royalty payments, while accounting for– in accordance with correct accounting principles –trade payables due on invoices to be received. Suchcosts were prudently made non-deductible fromthe 2018 tax year, for the purpose of not exposing
Fedrigoni S.p.A. to the risk of additional disputes fromthe tax authorities, until the proceedings in progress
have ended.

The Fedrigoni GroupANNUAL FINANCIAL REPORTThis item amounts to Euro 14,423 thousand at
December 31, 2022.
On June 12, 2019 the Guardia di Finanza, Verona
Finance Unit began an audit at the offices of Fedrigoni
S.p.A. regarding tax years 2014, 2015, 2016 and 2017.
The audit focused on the relationships between
Fedrigoni S.p.A. and some foreign entities directly
or indirectly linked to a longtime business partnerof Fedrigoni S.p.A. operating in the Indian marketof paper money and security items. On October 19,
2019 the Guardia di Finanza notified a dated Tax Audit
Report reporting solely violations identified for theyear 2014 and postponed the inspections regarding
the years from 2015 to 2017. As a consequence, on
December 31, 2019, the Italian Revenue Agency –Veneto Regional Directorate notified the assessment
notices for the 2014 corporate income tax (IRES) andregional business tax (IRAP), confirming the Guardia
di Finanza’s findings and claiming additional IRES
and IRAP due totaling Euro 6,247 thousand (including
penalties). On February 17, 2020, Fedrigoni S.p.A.,
assisted by qualified tax advisers, presented a tax
settlement proposal. The proposal was not acceptedby the tax authorities, so on August 27 and 28
Fedrigoni S.p.A. lodged an appeal against the IRES
and IRAP assessment notices and formally initiatedthe proceedings.
In March 2022 the Guardia di Finanza resumed its
inspection activities mentioned above. The Guardia
di Finanza evaluated certain consulting services andlicensing agreements stipulated between Fedrigoni
S.p.A. and the aforementioned foreign entities, which
provided for the payment by Fedrigoni S.p.A. of
royalties for the exclusive use of a specific method
patent regarding a security item registered in theNotes to the Income Statement
24. Sales revenues

26. Cost of materials

27. Cost of services

HIGHLIGHTSThis item is detailed below:

This item is detailed below:

This item is detailed below:

FEDRIGONI GROUP(in thousands of Euros)

SUSTAINABILITY REPORTRevenues from salesof productAwards for customers— Management discussion and analysis

2022
128,959(2,894)

Other sales revenues

287

Total

126,352— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement(in thousands of Euros)

Period ended December 31,
2022

Raw materials and goods
purchases
Purchases of ancillarymaterials and consumables
Change in raw material
inventories and goods
Total

397

Sundry non-financial income
Contingent gains andunrealized costs
Grants for operating
expenses
Gains from assets disposal

1,506

Total

1,473
17,25920
20,655“Other operating income” mainly consist of otherrevenues, primarily generated by sales of energy tothird-parties, sundry non-financial income, contingent
gains and unrealized costs as well as grants for
operating expenses.

Period ended December 31,
2022

66,916

Freight

9,225

1,100

Natural gas

3,624

Passive commissions

2,007

Maintenance

2,260

Use of third-party assets

1,077Electricity
Consulting services(administrative, legal, tax,
technical)
Advertising and publicity

1,131
23,443

Outsourced production

434

Insurance

967

Travel expenses

1,366

Waste disposal

640

Outsourced labor

637

Telephone expenses

110

Water
Directors and Statutory
Auditors
Other services

74

2,648

Total

50,031

5,179
73,195173

Sustainability Report

Other revenues(in thousands of Euros)2022

The 2022 “raw material and goods purchases” reflect
the prices of raw materials used in production and aremainly attributable to pulp costs.

This item is detailed below:

Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Period ended December 31,

25. Other operating income

Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows(in thousands of Euros)

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Period ended December 31,

Index

Annual Report 2022

215

156

Annual Financial
Report“Cost of services” mainly consist of cost oftransportation, natural gas, commissions paid,
maintenance, consulting services, use of third-party
assets and electricity. The consulting services include
Euro 13,064 thousand in costs incurred during the year
by Fiber for the Fedrigoni Group acquisition.

28. Cost of personnel

29. Other costs

31. Net financial income/(costs)

HIGHLIGHTSThis item is detailed below:

This item is detailed below:

This item is detailed below:

FEDRIGONI GROUP(in thousands of Euros)

SUSTAINABILITY REPORT

Wage and salaries
Social security
contributions
Accrual for defined
contribution and defined
benefit plans
Other personnel costs— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials

2022

Total

Consolidated Statement of Comprehensive Income

Writedowns of receivables
and other assets
Contingent losses
and unrealized income
Indirect taxes

15,110
3,403
145
1,291
19,949The Group’s employee headcount numbers at thereporting date are shown below:

Consolidated Statement of Cash Flows
As of December 31,

Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Period ended December 31,(in thousands of Euros)

2022

Consolidated Statement of Financial Position
Consolidated Income Statement(in thousands of Euros)

2022
133

White-collar employees

1,605Blue-collar employees

2,631

Total

4,369

10
440
64

2022
Interest income

1,402

Foreign exchange gains
Fair value measurement ofderivatives
Other financial income

6,905

Totale financial income

8,320

13

Membership dues
Allowances/(releases)of provisions
Other costs(2,007)838

Bank interest expense

(33)

Total

236

Interest expense on leases(282)

Foreign exchange losses
Fair value measurement ofderivatives
Interest costs on employee
benefits
Other finance costs(6,899)(34,446)

Total financial costs(56,090)

Total(47,770)“Writedowns of receivables and other assets”
mainly refers to bad debt provision and losseson trade receivables.
“Allowances/(releases) of provisions” comprisemainly amounts charged net of the amounts released
to the product warranty and environmental provision.

30. Depreciation and amortization
This item is detailed below:(in thousands of Euros)

Period ended December 31,(14,369)(61)

Sustainability ReportManagement

891

Period ended December 31,

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Period ended December 31,

Index

Annual Report 2022

“Other finance costs” include Euro 17,975 thousandof interest expense on the Bond Notes, Euro 3,759
thousand as amortized cost on the Bond Notes, Euro3,337 thousand in interest expense on the Shareholder
Loan, and Euro 395 thousand as amortized cost on the
Shareholder Loan.

2022
5,886
3,753
2
17
100
9,758

157

Annual Financial
ReportDepreciation of property,
plant and equipment
Amortizationof intangible assets
Depreciationof investment property
Impairment of tangible assets
Impairmentof intangible assets
Total

33. Earnings/(Loss) per share

34. Contingent liabilities

HIGHLIGHTSThis item is detailed below:

FEDRIGONI GROUP(in thousands of Euros)

SUSTAINABILITY REPORT

Current taxes(13,173)

Deferred taxes(2,691)

ANNUAL FINANCIAL REPORT

Earnings/(loss) per share was calculated by dividing:(i) the profit or loss attributable to ordinary equity
holders by (ii) the number of ordinary shares.
There are no anti-dilutive shares, so the diluted
earnings per share is the same as the basic earnings/(loss) per share.

Various legal and tax proceedings originating overtime in the normal course of the Group’s business
operations are pending. According to management,
none of these proceedings are likely to result insignificant liabilities for which provisions do notalready exist in the Consolidated Financial Statements.

Total(15,864)— Management discussion and analysis

The table below presents the reconciliation of thetheoretical tax rate (the tax rate in effect in the
countries of the Group companies) and the effective
tax rate:— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position

Period ended December 31,
2022

Consolidated Income Statement
Consolidated Statement of Comprehensive Income(in thousands of Euros)

2022

Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Period ended December 31(61,775)

Theoretical tax rate

24.00%

Theoretical income taxes(14,826)

Profits not subject to taxes
Use of tax losses
carried forward
Non-deductible taxes
Non-deductible interests
expenses
Other decreases
IRAP allocated by Italiancompanies
Tax effects of foreignsubsidiaries and other
Effective income taxes(6,142)(4,822)
13,422
3,861
425(7,782)(15,864)

Period ended December 31
2022

Loss attributable to ownersof the Parent
Weighted average of shares(in thousand)Basic earnings/(loss)
per share (in Euros)
Diluted earnings/(loss)
per share (in Euros)

35. Commitments(45,882)
40,000(1.15)(1.15)(a) Commitments to purchase property, plantand equipment
The contractual commitments undertaken with third
parties at December 31, 2022 regarding investments
in property, plant and machinery not yet recognizedin the financial statements amount to Euro
12,082 thousand.
(b) Other commitments
The following collateral has been put up:• pledge over Fiber Bidco S.p.A. shares granted
by Fiber Midco S.p.A. on November, 30, 2022, as
subsequently confirmed and extended on January
23, 2023, to secure the payment obligations
deriving from, inter alia, the RCF Agreement, theOriginal Notes, the Tap Notes, the Private Notes, theExchanged Notes and the Hedging Agreements;• pledge over Fedrigoni S.p.A. shares granted originallyby Fiber Bidco S.p.A. on November, 30, 2022, as
subsequently confirmed and last extended on
January 23, 2023, to secure the payment obligations
deriving from, inter alia, the RCF Agreement, theOriginal Notes, the Tap Notes, the Private Notes, theRollover Notes and the Hedging Agreements;

Sustainability Report

Loss before tax(in thousands of Euros)

The Fedrigoni Group

32. Income taxes

Index

Annual Report 2022

Annual Financial
Report158

IndexAnnual Report 2022
36. Related-party transactions

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

The following tables set forth the transactions andbalances of the Group with related parties for theperiod ended December 31, 2022.
Statement of Financial Position balances
At December 31, 2022

(in thousands of Euros)

Consorzio Canale
Industriale G. Camuzzoni
S.c.ar.l.
Tecnoform S.p.A.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Financialreceivables

AssetsTradereceivables

Tax
receivables

Tax liabilities

Liabilities
TradepayablesFinancialpayables

1,805
16

318

Tageos Group
Papeterie Zuber Rieder
SAS
Fiber MidCo S.p.A.

4,012

Total

4,012

16

As a % of F/S item

13.90%

0.01%

975
311,337
0.00%

0.00%

3,098

311,337

0.54%

21.68%

Sustainability Report•p ledge over the material bank accounts of Fiber
Bidco S.p.A. granted by Fiber Bidco S.p.A. on
November, 30, 2022, as subsequently confirmed
and last extended on January 23, 2023, to secure
the payment obligations deriving from, inter alia,
the RCF Agreement, the Original Notes, the Tap
Notes, the Private Notes, the Rollover Notes
and the Hedging Agreements;• security assignment over the intercompany
receivables granted originally by Fiber Bidco S.p.A.
on November, 30, 2022 as subsequently confirmed
and last extended on January 23, 2023, to secure thepayment obligations deriving from, inter alia, the RCF
Agreement, the Original Notes, the Tap Notes, thePrivate Notes, the Rollover Notes and the Hedging
Agreements; and• security assignment over the intercompany
receivables granted originally by Fiber Midco S.p.A.
on November, 30, 2022 as subsequently confirmed
and last extended on January 23, 2023, to secure
the payment obligations deriving from, inter alia,
the RCF Agreement, the Original Notes, the Tap
Notes, the Private Notes, the Rollover Notes
and the Hedging Agreements.

Income Statement transactions
Period ended December 31, 2022

(in thousands of Euros)
IncomeSales revenues Other revenues Interest income
Bain Capital Private Equity,
LP
Fedrigoni Holding Ltd
Consorzio Canale
Industriale G. Camuzzoni
S.c.ar.l.
Tecnoform S.p.A.

Expenses
Costs for
Interest
services
expense
550

17

11
385

51

923

2

Total

53

17

12

2,823

3,337

0.04%

0.08%

0.86%

5.64%

9.60%

As a % of F/S item

12
954
3,337

159

Annual Financial
ReportTageos Group
Papeterie Zuber Rieder
SAS
Fiber MidCo S.p.A.

IndexAnnual Report 2022
37. Subsequent events

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement

Bain Capital Private Equity LP
The Group has a Consulting Service Agreement in
effect with Bain Capital Private Equity LP, stipulated on
April 16, 2018 by Fabric, Fedrigoni Holding Ltd and Bain
Capital Private Equity LP.

Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Tageos GroupThe Tageos Group is an equity accounted investments
in associates acquired by the Group on April 26, 2022.
Papeterie Zuber Rieder SAS
Papeterie Zuber Rieder SAS is an equity accounted
investments in associates acquired by The Groupon December 15, 2022 in which the Group started tocontrol the managing body only from January 2023.

Key management personnel compensation
The following positions are considered to comprise
the Group’s key management personnel: i) Group
Chief Executive Officer; ii) General Manager ofFedrigoni Self-Adhesives division; iii) General
Manager of Fedrigoni Luxury Packaging and Creative
Solutions division, iv) Group Chief Procurement
Officer; v) Corporate Development Director; vi)Group Chief Human Resources Officer; vii) Group
Chief Financial Officer; viii) Group Chief Sustainability
and Communication Officer; ix) Group Technology
Infrastructure Director.
The gross compensation paid to the key
management personnel for the period ended
December 31, 2022 totaled Euro 214 thousand.

On February 2023, the Group acquired a dedicatedresearch and development center in Grenoble, France,
including employees, as well as the machines andequipment, patents, and brands, with the related
Powercoat brand.

160

Annual Financial
ReportNerea S.p.A.
Nerea S.p.A. is a real estate agency considered a
related party because it is controlled by a shareholderof the parent company. The Group had a lease in effectwith Nerea S.p.A. for the building in Verona in which
the parent company’s headquarters were previously
located and the adjoining parking lot.

Tecnoform S.p.A.
Tecnoform S.p.A. is a minority technical partnerof the Group dedicated to the development ofinnovative packaging products to replace plastic withthermoformed cellulose. The Group had establisheda joint venture “E’Close S.r.l.” (formerly known as Pulp
JV S.r.l.) with Tecnoform S.p.A. which retains the 30%of the capital.

On December 30, 2022, Arconvert S.A.U., an indirect
subsidiary of Fiber Bidco S.p.A., exercised its call
option to purchase 10% of Venus America S.A. de C.V.,
a Mexican company already controlled by Arconvert
S.A.U. (the “Venus Minority Shares”), pursuant to theput and call option agreement signed on June 8, 2021
by and between Arconvert S.A.U., on one side, andJorge Alanis Castillo and Mextran S.A. de C.V., on theother side (jointly, the “Venus Minorities”). Completionof the acquisition of the Venus Minority Shares isscheduled to occur during the second quarter of 2023.
Following this acquisition, the Group will control 100%of the share capital of Venus America S.A. de C.V.
In January 2023, the Group implemented a strategic
partnership with Arjowiggins HKK3 Limited (“ArjoChina”), by way of:(a) the issuance of a bond by an investment vehicle
owned by certain managers of Arjo China (the“Managers’ Vehicle”), subscribed by Fedrigoni UK
Limited, a fully owned subsidiary ofFedrigoni S.p.A.;(b) the Managers’ Vehicle applied the proceeds ofthe bond only to pay the initial consideration due
for the acquisition of the shares of Arjo China;(c) the Managers’ Vehicle granted to Fedrigoni UK
Limited a call option (exercisable within the endof 2026) to purchase, directly or indirectly, theshares of Arjo China for a price equal to any
outstanding amount under the bond at the option
exercise date, which shall be satisfied by way of
set off against any outstanding amounts owed toFedrigoni UK Limited.

Sustainability Report

Fedrigoni Holding Ltd
The Group incurred mainly some costs with Fedrigoni
Holding Ltd, Fedrigoni S.p.A.’s former parent company,
for the recharging of some marketing costs.

Consorzio Canale Industriale G. Camuzzoni
di Verona S.c.ar.l.
Consorzio Canale Industriale G. Camuzzoni S.c.ar.l.
in Verona is a 25%-owned company, and thus
an associate, which operates in the power
generation industry.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Description of the Group’s related parties
Fiber MidCo S.p.A.
The Group incurred some costs with Fiber Midco
S.p.A., Fiber Bidco S.p.A.’s parent company, for therecharging of interest costs connected with the
Shareholder Loan from Fiber Midco S.p.A. andused by Fiber Bidco S.p.A. to complete the Fedrigoni
Group acquisition.

HIGHLIGHTSFEDRIGONI GROUPSUSTAINABILITY REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

On April 4, 2023, Fedrigoni S.p.A. entered into asettlement agreement with Portals Technology
Limited, Portals International Limited and Fase
S.r.l. in order to settle and close any outstanding
amounts and mutual obligations of the parties, which
result from (a) the sale by Fedrigoni S.p.A. to Portals
International Limited of the security business run by
Fase S.r.l., which closed on October 29, 2021, and (b)the subsequent exercise by Fedrigoni S.p.A. of a put
option to sell to Portals International Limited certain
machineries located in Fabriano (Ancona, Italy).
During 2023, the Fedrigoni Group started to control
the managing body (“Strategic Committee”) of
Papeterie Zuber Rieder by electing its representatives
to the Board of Directors of the company acquired
through the subsidiary Fedrigoni France Sarl, on
December 15, 2022.

Sustainability Report

On February 15, 2023, after several meetings heldin the context of the tax settlement procedure withregard to the tax liabilities emerging from the Tax
Audit Report notified in April 2022 by the Guardia diFinanza regarding fiscal years 2015-2017 (see section“Current Tax Liabilities”), Fedrigoni executed with theTax Authority the settlement agreement deeds (Attidi accertamento con adesione) for the years 20152017, also to take advantage of the 2023 Budget
Law that provided for the possibility of settling thepending disputes with a reduction of penalties to 1/18.
On the same day, Fedrigoni signed with the tax officealso a judicial conciliation (Conciliazione giudiziale)
for the pending litigation on 2014. The overall tax
liability (2014-2017) was reduced to Euro 8.8 million(including interest). On March 2, 2023, Fedrigoni
paid to the tax authorities the amounts due under
the judicial conciliation and settlement agreements
for the fiscal years 2014–2017. On March 14, 2023,
Fedrigoni’s previous majority shareholder paid toFedrigoni an amount of Euro 2.2 million, pursuant to theindemnification obligations set forth in the contractual
agreements entered into in connection with the matterat hand.

The Fedrigoni GroupANNUAL FINANCIAL REPORT

Index

Annual Report 2022

During the first months 2023 the Revolving Credit
Facility of Euro 150 million was allocated to ancillaryfacility for Euro 11.3 million and the remainder drawn
for Euro 71 million, making the related amount available
in the Group’s cash holdings.

Annual Financial
Report161

HIGHLIGHTSFEDRIGONI GROUP

Index

Annual Report 2022
ANNEX 1 - List of Subsidiaries and Associates
Name

Headquarters

Group’s ownership

Name

At December 31, 2022

Headquarters

Group’s ownership

Verona (VR) - Italy

99.99%

Arconvert-Ritrama do Brasil Ltda

Jundiaí - Brazil

99.99%

Gruppo Cordenons S.p.A.

Milan (MI) - Italy

99.99%

Ritrama (Hefei) Pressure Sensitive CoatedHefei - China
Materials Co.Limited
Ritrama Uk Ltd
Dukinfield - United Kingdom
Santo Domingo - Dominican
Inversiones San Aurelio Srl
Republic
Ritrama Converting (Pty) Ltd
Durban - South Africa

RITRAMA S.p.A.

Caponago (MB) - Italy

99.99%

Ritrama S.A. Chile

Curauma, Valparaíso - Chile

99.99%

Arconvert S.p.A.

Arco (TN) - Italy

99.99%

Jundiaí - Brazil

99.99%

Fedrigoni Deutschland Gmbh

Munich - Germany

99.99%

Consolidated Statement of Financial Position

Fedrigoni Espana SL

Madrid - Spain

99.99%

Quito - Ecuador

99.99%

Consolidated Income Statement

Fedrigoni France Sarl

Paris - France

99.99%

Ritrama Autoadesivos Ltda
Distribuidora Ritrama Ecuador Disritrec
S.A.
Ritrama Poland Sp. Z.O.O.

Dobroszyce - Poland

99.99%

Consolidated Statement of Comprehensive Income

Fedrigoni UK Ltd

Northampton - United Kingdom

99.99%

Ritrama Peru’ Sac

99.99%

Consolidated Statement of Cash Flows

Cartamano Deutschland Gmbh

Munich - Germany

99.99%

Ritrama Caribe Srl

Miliani Immobiliare S.r.l.

Verona (VR) - Italy

99.99%

Ritrama S.A.S

Lima - Peru
Santo Domingo - Dominican
Republic
La Estrella, Antioquia - Colombia

Fedrigoni Austria GmbH

Vienna - Austria

99.99%

Ritrama Costa Rica S.A.

Heredia - Costa Rica

99.99%

Fedrigoni Benelux B.V.

Brussels - Belgium

99.99%

Ritrama Guatemala S.A.

Ofibodega - Guatemala

99.99%

Fedrigoni Asia Ltd

Hong Kong - China

99.99%

Distribuidora Vizcaina de Papeles S.L.

Derio - Spain

99.99%GPA Holding Company Inc

McCook, Illinois - U.S.A.

99.99%

Guarro Casas S.A.

Gelida - Spain

97.94%

Magnani 1404 S.r.l.

Massa e Cozzile (PT) - Italy

99.99%

Venus America S.A. de C.V.

Tlalnepantla - Mexico

89.91%

Acucote Inc.

Graham, North Carolina - U.S.A.

99.99%

Industrial Papelera Venus S.A. de C.V.

Tlalnepantla - Mexico

89.91%

Fedrigoni Bangladesh Ltd

Dhaka - Bangladesh

99.99%

Giano Real Estate S.r.l.

Verona (VR) - Italy

99.99%

Giano 1264 S.r.l.

Verona (VR) - Italy

99.99%

Verona (VR) - Italy

24.99%

Villartales S.L.
Bes Reklam Ürünleri Sanayi Ve Ticaret
Anonim Şirketi
Papeterie Zuber Rieder Sas

Bilbao - Spain

99.99%

Associates
Consorzio Canale Industriale G.
Camuzzoni S.c.ar.l.
Direct joint ventures

Istanbul (Turkey)

99.99%

Eonys SAS

Montpellier - France

50.09%

Boussieres - France

99.99%

Tageos SAS

Montpellier - France

50.09%

P.T. Fedrigoni Indonesian Trading

Jakarta - Indonesia

88.19%

Tageos Gmbh

Bad Nauheim - Germany

50.09%

E’close S.r.l.

Colorno (PR) - Italy

69.93%

Tageos RFID (Guangzhou) Co., Ltd.

Guangzhou - China

50.09%

Arconvert S.A.U.
Fedrigoni Trading (Shanghai) Company
LimitedPolifibra 2011 S.p.A.

Sarrià del Ter Gerona - Spain

99.99%

Tageos Ltd.

Hong Kong - China

50.09%

Shanghai - China

99.99%

Tageos Inc.

Wilmington, Delaware - U.S.A.

50.09%

Agrate Brianza (MB) - Italy

99.99%

Directly controlled subsidiaries
Fedrigoni S.p.A.

ANNUAL FINANCIAL REPORT— Management discussion and analysis— Independent Auditor's Report— Consolidated Financials

Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements

Indirectly controlled subsidiaries

99.99%The Fedrigoni GroupSUSTAINABILITY REPORT

99.99%

99.99%
99.99%

99.99%
99.99%

Sustainability ReportIndirect joint ventures

Annual Financial
Report162

IndexThe Fedrigoni GroupTo know more visit:
fedrigoni.com/en/sustainability
Follow us on:

Sustainability Report

Are part of the Fedrigoni Group:@we_are_fedrigoni

Annual Financial
Report@Fedrigoni GroupIndexThe Fedrigoni Group
Sustainability Report

Annual Financial
Report