Sustainability and Social Responsibility 2013 · Our Sustainability Report ... Our research and development initiatives have continued to enhance our ceramic products, now making

Sustainabilityand SocialResponsibilityReport

2013

6th Edition

MADE IN FLORIM

Sustainabilityand SocialResponsibilityReport

2013

6th Edition

Prepared by

Florim Ceramiche SpA

FinancialandSupervisoryOffices

OfficeofCommunication–editorialcoordination

Wethankallstaffmemberswhohavecontributed.

FioranoModenese(MO)-ITALY,May2014

TABLE OF CONTENTS

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

Our Sustainability Report...................................................8 -environmentalcertifications..................................... 24

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

-energymanagement................................................... 26

MADE IN FLORIM

Our history............................................................................. 10 Social Responsibility......................................................... 28

Our locations........................................................................ 11 -relationshipswithemployees................................... 28

Our brands............................................................................ 11 -socialcommitment...................................................... 31

Our 2013................................................................................. 13

Quality System..................................................................... 33

PART ONE – GOVERNANCE PART THREE – OUR COMMITMENTS

Code of ethics...................................................................... 15 The promises we kept...................................................... 36

Corporate structure........................................................... 16 Goals we want to reach................................................... 37

Our stakeholders................................................................ 17

PART FOUR – FLORIM USA

Profile and Economic Responsibility......................... 38

PART TWO – REPORTING Environmental Responsibility........................................ 39

In Brief..................................................................................... 18 Social Responsibility......................................................... 41

Economic Responsibility................................................. 19 Quality System..................................................................... 43

-commentsonbusinessdata.................................... 19

-Valueadded.................................................................. 20 GRI International Sustainability Indicators.............. 44

Florim Gallery inside garden

Sustainability Report 2013 7

Letter to our stakeholders

OnceagainweareproudtointroducethesixtheditionofourFlorimSustainabilityReportwhich,asusual,summarizesthemaingoalsweachievedlastyearandthecommitmentsmadeforthefuture.

Although everybody is already aware of this, I feel it is still worthwhile reiterating howcomplexitistodobusinessinItaly,whichis,morethanelsewhere,whereourcompanyhasitsroots.Thepoliticalchanges,alongwithaprogressivedeteriorationofthemoreimportantmacroeconomic indicators, retain this constant climate of uncertainty that only the firmconvictionsofprivateenterprisescanovercome.

Because we are dedicated and passionate about our work we have once againachievedaverysatisfactoryconclusiontotheyearbyachievingallofourgoalsandlaunchingprojectsthatwewillcompleteinthenearfuture,listedonthepagesofthisdocument.

Thecompletionof theverticalwarehousewith37,000palletpositions, theopeningofa9,000squaremeterareaforexhibitionsandeventsofFlorimGalleryareonlytwoof themanyprojectsthatwecompletedinItalyin2013.MeanwhileoursubsidiaryFlorimUSAhasbegunaprojecttorenovateitsplant,whichmeansthatby2015thisceramictilefactorywillbeoneofthemostmodernintheUS.

Ourresearchanddevelopmentinitiativeshavecontinuedtoenhanceourceramicproducts,nowmakingthemeasiertoimplementinmorecomplexsolutions.

Iamgratefultoallourcollaboratorswho,everydayandoneverylevel,havemadepossibletoovercomesomanyproblemsandhavebroughttheFlorimGroupclosertothelevelofexcellencetowhichweconstantlyaspire;alevelofexcellencewhichcontinuestodriveustofacethepoliticalsituationandmarketchallengeswefaceeveryday.

Ihopeyouenjoyreadingthisreport,

ClaudioLuccheseChairmanofFlorimCeramicheSpA

Sustainability Report 20138

Our Sustainability Report

What It Is

The Sustainability Report is a periodic and voluntary reporting document which summarizes theCompany’sresultsandactivities,containingnotonlyfinancialandaccountingdatabutalsointegratingenvironmentalandsocialaspectswithinaframeworkofoverallsustainability.Thistypeofinitiativearisesfromtheneedtoengageindialoguewithdifferenttargetofpeople,definedasstakeholders,interestedtoknowaboutthecompanyactivitiesthatdirectlyorindirectlyaffectthem.Bywritinganddistributingthistool,Florimcancommunicatewithitsstakeholdersinatransparentway,explaintheresultswehaveachievedandshareourfuturegoalsbyfocusingonlistening,cooperatingandconstantimproving.

How it was drafted

We have reached the Sixth edition of the Florim Sustainability Report, which is created annually topromotecorporatesocialresponsibilitybothinternallyandexternallytothecompany.

Thecontentsofthisedition,asinthepast,weredeterminedbyusingthethemedsectionsandindicatorssuggestedbytheGlobalReportingInitiative(GRI),themostinfluentialinternationalguidelinesforreportingenvironmental,economicandsocial sustainability,and theGruppoBilancioSociale (GBS) (Group forSocialReporting)inthepartconcerningValue-Addedcalculations.ThereportingindicatorsthatwereusedclassifythisreportasfulfillingapplicationlevelC,basedontheGRIdefinitions(self-declaration).

ThisreportincludesallthecompaniesintheFlorimgroupandusestheconsolidatedfinancialstatementstoaggregatefiguresforthewholegroup.ThedatalistedinthesecondpartisdedicatedtoourItalianofficeswhilethefourthpartconsistsofaSustainabilityReportsummaryforFlorimUSA.ThisyearwearealsoincludinginthereportourCompanypoliciesonQuality,Environment,SafetyandEnergyforthefirsttime.Thereportingprocesswasco-ordinatedbyFlorim’sCommunicationsDepartmentandsupervisedbytheFinancedepartment,withthevaluablecollaborationofvariouscolleagues,inparticular,theManagementControlstaff,HumanResourcesandAdministrationDepartments.

Distribution

The2012SustainabilityReport,alsopublishedinEnglish,waswidelydistributed.BelowarethemainmethodsFlorimhasused:

-providing a copy to all employees of the Italian and Americancompanies,enclosedwiththeirpaystubs

-insertionofthePDFfilesonthecompany’sIntranetsiteandtheflorim.itwebsite

-distributiontocompanieswhicharemembersofthe“ClubImpreseModenesiperlaResponsabilitàSociale”(ModenaBusinessClubforCorporateResponsibility).

-sending it to local institutions and the relevant trade unionrepresentatives

- sending it to the local and industrypressduring fairs and sitevisits

-distributiontokeyclientsandprojectdevelopers

-sendingittothemaindomesticagencies/authorities/associationsinvolvedinissuesrelatedtosustainabilityandtheenvironment.


Detail of Florim Flagship Store (Milano)


Made in Florim

50yearsofhistory

1300employeesworldwide

23millionsqmproducedperyear

325millionEurosinsales

However,beingacompanyisnot justaquestionofnumbers.Passion, innovationandcorporatesocialresponsibilityarenowwhatmakeusstandoutbecauseofthewaywedobusiness:the MADE IN FLORIM style.

Our history

2013 ThenewFlorim GallerymultifunctionalareawasinauguratedandtheFlorim Logistica(newmulti-brandlogisticcenter)wascompleted

2012 Florimcelebrated50 years

2012 Florimlaunched slim/4+

2011 AlogisticshubopenedinBrazil

2006 TheCasamoodbrandwasfounded

2005 FlorimacquiredCasa dolce casa

2000 Florim USAwas founded, the result of theproductionandcommercial structure thatwouldquicklygrowontheUSmarket

1995 TheProject Divisionwascreated,forerunnerofthecurrentFlorim Solutions

1994 FlorimacquiredRex Ceramiche Artistiche

1992 Florim wastheresultofthemergerbetweenFloorGresandCerim

1990 FloorGresacquiredthecompanyCerim Ceramiche

1984 Claudio Lucchese,sonofthefounder,tookovermanagementofFloorGresaftertheprematuredeathofhisfather

1981 Oneofthefirstcompaniesworldwide,FloorGresstartedtoproduceporcelain tiles

1976 TheSwimming Pool DivisionwasestablishedatFloorGres

1967 FloorGreswasthefirstItalianmanufacturertoproducesingle-fired white body tiles

1962 GiovanniLucchesepioneeredtheproductionofextruded klinker tilesinItaly.Floor Gres wasbornintheheartoftiledistrictinSassuolo.


Our locations

Themapshowsthegroup’sheadquarters,exhibitionspaces,manufacturingfacilitiesandlogisticcenters.ProductsmadeundertheFlorimbrandsaresoldtotopcustomersandimportersallovertheworld.

Our brands

Floor gresisthebranddevotedtoarchitecturaldesign.Differentmaterialsandsurfacesmakethisproducthighlydurablewithhightechperformance.TherangeofFloorGresproductscanmeettheneedsofdesignandthetechnicalaspectsandeco-compatibilityofcontemporaryarchitecture.

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

Cerimisthebrandthatfocusesprimarilyoncoloranddecoration.ByCerim,surfacesarecreatedconsideringthewholespacetocreateuniqueroomsinprivatehousesandtosuggestsolutionsfacingdifferentaestheticneeds.

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

Slim/4+isthenewestFlorimbrand.Thisbrandisdedicatedtotheproductionandmarketingofarevolutionarylayeredmaterial.Thankstothefactthatitcanbeputinplaceusingafloatingsystem,slim/4+introducesaninnovativesystemtotheceramicsectorwhichbringstogethersuperthinresistance,lightnessandinterchangeability,therebychangingtherulesofthegame.

Florim USAisthebrandoftheAmericansubsidiary:Productsinporcelainstonewareforresidentialandcommercialproperties,manufacturedinthefactoryinClarksville(Tennessee)anddesignedtoprovideforthetasteofabroadmarketsegment.

Our contribution to the project

Aswellassellingaproduct,Florimoffersauniqueleveloftechnicalsupportthroughoutthevariousdesignphases.Fromthefeasibilitystudytothefinalinstallation,FlorimSolutionsworkssidebysidewiththedesigner,providingskillsandexperiencewheneveraestheticsandthefunctionalityoftheporcelaintilesassumeafundamentalroleintheproject.


Florim Gallery


Our 2013

Florimendsayearfilledwithnewinitiatives,projectsandgoals.Hereisalistoftheyear’smainevents,whichwillbeexplainedfurtherinthepagesdedicatedtothereporting.

Goals reached

In2013wefinishedajourneythatbeganin2011withthedemolitionoftheoldwarehouses,nowrebuiltunderoneroofmeasuring16,000sqmandincludingsolarpanels.Thelastpartofthislargestructurewasfinishedthisyearandusingasurveyfromouremployeesitwasgiventhename:Florim Gallery.Amulti-functionalareameasuring9,000sqmdesignedtobeaversatilevenueforproductsandevents,naturallywithanenergyefficiencyclassA.

Agoalworthyofthreedaysofcelebrationsdedicatedtoouremployees,customersandtheauthorities.AtCersaie,themostimportanttradefairforthissector,Florimsetasidetwoeveningsthatwerecompletesell-outswith the theme“buildingnewchallenges”;however,wewillneedtowaituntil20December,

whenproductionishaltedtogathertogetherallouremployeesandfamiliesinthefirstFlorim Family Day.

HoweverthebuildingofFlorim Logisticawill,becompletedinDecember:anewmulti-brandshippingcenterisautomatedusingthemostup-to-datetechnologies,withalogisticsareathatmeasures30,000sqmandhavingaverticalwarehousewith37,000palletpositions.

Talkingaboutgoals,wecan’tleaveoutthelaunchofthenew corporate web-sites.Racingagainsttime,awhollydedicatedDigitaltechnologyteamhascreatedandlaunched9internetsitesdedicatedtothecompanyanditsbrands.

New initiatives

Amongtheinnovationsthattookplacelastyearweshouldmention:• the“Ing.GiovanniLucchese”foundationwascreatedtosupportreligiousandnon-religiousbodies,familiesandupstandinginitiativesthroughoutthecountry

• anagreementwiththeOspedalediSassuolo(SassuoloHospital)foritsemployees• newagreementswithlocalnurseryschools• theexpansionofour“summercamp”projectforincludingthechildrenofourcolleaguesfromMordano• Florim’sattainment,firstinitssector,oftheprestigiousISO50001certification.

New recognitions

OureffortsandcorporateinvestmentsinenvironmentalsustainabilityhaveguaranteedFlorimaspecialmentionfromtheOfficialJuryatthe“Festival della Green Economy di Distretto” (Festival for Green Economy in the District)(initsthirdeditionthisyear)andaplaceinthefinalfortheprestigiousNational Good Energy Award,intheEnergyEfficiencycategory,foranenergyprojectthatisstilloneofthemostinnovativeinItaly.ThemonitoringbodyfortheGoodEnergyAwardwashostedbyFlorimitselfwhereleadingItaliancompaniesfromthesustainableenergysectormetthisyearandtookpartinaroundtablediscussionchairedbyFabrizioAdaniandEnzoArganteinthenewroomsoftheFlorimGallery.

New Products

Theproductitselfisattheheartofourbusinessandthisyearamongourmanynewinitiativeswepresen-tedalineatCersaieentirelydedicatedtotheoutdoors.FloorGres,RexandCasadolcecasaareoffering,eachonefollowingadifferentphilosophy,anew2 cmthick(certified)materialcomposedofmorethan70%recycledcontents.Itisthenewself-supportingsolutionofferingacombinationofdesign,perfor-mance,versatility,easeofinstallationandeco-sustainability.


Florim’s stand at Cersaie 2013 (Bologna)


PART ONE - GOVERNANCE

Code of ethicsIn order to encourage information transparency and increase awareness of social responsibility inallmembers of the company theBoard ofDirectors of Florim approved theCode of ethics and theOrganization, Management and Control Model on May 18, 2011, in compliance with Leg. Decree231/2001. InMay2012, theorganizationalmodelwas reviewedandupdatedwith the introductionofregulationsforenvironmentalviolations.Thecontentapprovalandsharingprocessledtoanewmissionandthedraftingofnewsharedvalues,whicharelistedbelow.

Our missionOur company aims to produce ceramic tiles andmaterials formultiple uses and propose themostappropriatesolutionsforfurnishingandarchitecture.Allofthisoccursinaregimeofeco-sustainability,attemptingtosatisfytheneedsofcustomersandtocreatevalueforshareholders,employeesandtheterritory,intheunderstandingoftheimportanceofobservingtheethicalprinciplesandrulesofconductexpressedinthecodeofethics.

Our visionTobeatthecuttingedgeoftechnicalandaestheticinnovationinceramics,bystudyingthematerialsandproductionmethodsthatwillenableustoalwaysbeareferencepointforcustomers,designersandcompetitors.

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

Supervisory BoardTheSupervisoryBoardwas set up to ensure the implementation of and compliancewith the abovementionedprinciples;thisboardmustrecordanynon-compliancesandbenotifiedofanyirregularitiesor violations of the Code of ethics and the Organizational Model. All employees, shareholders andstakeholderscancontactthesupervisoryboard,eventoclarifyanydoubtsregardingtheinterpretationandapplicationof thecorporateCodeofethics.Theproceduresandcommunicationchannelsusedtoreachthemembersofthesupervisoryboardhavebeenpublishedontheintranetandourcorporatewebsite.


Corporate structure

ShareCapitalofFlorimCeramicheS.p.A.,issuedandfullypaid-up,wasincreasedto50,000,000Euroand iscomposedof50,000,000ordinaryshareswithanominalvalueof1Euroeach.ThesharesarefullyownedbyfinancialholdingcompanyFinFloorS.p.a.,basedinFioranoModenese,whichisinturnindirectlyownedbytheLucchesefamilythroughFin-TwinS.p.A.

TheBoardofDirectorsofFlorimiscomposedoftheelevenmemberslistedherebelow:

CLAUDIO LUCCHESE ChairmanCARLO LUCCHESE Vice ChairmanMARIADELE LUCCHESE DirectorANNA LUCCHESE DirectorDONATO BRUNI Executive DirectorERMES GIUSEPPE FERRARI Executive DirectorGIOVANNI GROSSI Executive DirectorOSCAR ISEPPI Executive DirectorDORVAN SAZZI Executive DirectorSTEFANO TORRENTI Executive DirectorARRIGO ZAPPAROLI Executive Director

TheBoardofDirectorshasamandateofoneyearandnewelectionswillcoincidewiththeapprovalofthefinancialstatements.TheBoardofAuditorsiscomposedofthreememberswhosetermofofficeisthreeyears-startingfromnominationon8/5/2013untilapprovalofthe2015financialstatements.ThefinancialstatementsofFlorimS.p.a.,andtheconsolidatedfinancialstatementsofFinFloorS.p.A.,areauditedandcertifiedbyDeloitteS.p.A.

Thefollowingkeychangeshavebeenmadetothegroup’scorporatestructurewithrespectto2012:• MAKER-MANIFATTURECERAMICHES.R.Lestablished• Creationofthe“ING.GIOVANNILUCCHESE”Foundation

FIN TWIN S.P.A.Share CapitalEuro 540,800

50.3822%FINFLOOR S.P.A.

Share CapitalEuro 10,500,000

FLORIM CERAMICHE S.P.A.sole stakeholder

EDILFLOOR s.u.r.l. F%001 LORIM BRASIL LTDA Share CapitalShare Capital 1% DISTRIBUIÇÃO DE CERÂMICAS LTDA 99% Euro 50,000,000

Euro 98,126.81 Share CapitalR$ 461,000.00 MAKER MANIFATTURE

ISABELLA s.r.l. 10% CERAMICHE S.R.L.Share Capital Share CapitalEuro 100,000 FLORIM USA, Inc. E%001 uro 12,000,000

Share CapitalFI HOLDING, Inc. U%001 $D 51,865,541 H2HOME S.R.L.

Share Capital Share CapitalU$D 50,000 FLORIM SOLUTION Inc. Euro 20,000

Share CapitalU$D 845,943 96.67% Fondazione Ing. G. Lucchese

EquityFLORIM FAR EAST PTE Ltd. E%001 uro 60,000

Share CapitalS$ 10,000 FABBRICA delle MATERIE S.R.L.

Share CapitalEuro 10,000



































































Our stakeholders

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

Employees and Labor Unions

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

Customers

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

Designers, architects and interior designers

InordertosatisfytherequirementsofdesignersFlorimiscommittedto:- offersolutionsthatarealwaystechnologicallyandaestheticallyinnovative- establishandfosterrelationshipswithprofessionalpartners- provideconsultancyservicesandtechnicalexpertisefromtheproject’sconceptiontothecompletionofthework

- provide“turnkey”solutions

Community and Institutions

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

Environment

Florimhasundertakenthefollowingcommitmentsinitsenvironmentalmanagement:- tocontinuouslyimprovetheenvironmentalperformanceofproductsandprocesses- toresearch,develop,andusethemostsustainabletechnologies

Suppliers

WhenselectingitssuppliersFlorimpayscloseattentiontocompanies’CSRpractices.ForthisreasonFlorimhasaskedsupplierstofillinaquestionnairewhichprovidesascorebywhichthevendorcanthenbeassessed.


PART TWO – REPORTING

In Brief

Economic profileFinFloor consolidated (in thousands of Euros) 2008 2009 2010 2011 2012 2013

Net revenue 330,637 259,675 273,822 304,612 315,344 325,853

EBITDA 23,923 35,798 41,835 53,265 59,608 72,986

Earnings from operations 3,492 15,324 20,434 30,213 35,717 50,996

Gross Cash Flow 16,300 24,400 40,064 47,170 52,710 68,312

Net profit (Loss) (8,128) 3,445 14,790 17,824 26,103 35,732

Net financial debt (215,270) (192,840) (166,640) (149,737) (127,730) (96,500)

Closing inventory 165,353 137,231 130,367 112,966 95,514 84,432

Net shareholders’ equity 115,919 129,123 144,181 167,202 186,905 218,847

Investments 21,580 13,602 30,874 39,408 32,572 48,780

Environmental profile2008 2009 2010 2011 2012 2013

CO2emissions 135,000t 74,000t 86,610t 92,500t 90,500t 82,300t(*)

CO2emissions(t)/finishedproduct(t) 0.33 0.29 0.31 0.29 0.27 0.33

Wastes 38,342t 37,470t 30,644t 26,237t 30,228t 19,618t

Recyclingandreuseofthewaste 98.60% 99.20% 99.10% 98.70% 99.47% 140.41%(**)

Totalwaterconsumed(m3)/Finishedproduct(t) 0.71 0.88 0.80 0.76 0.75 0.75

Recycledwaterpercentage 100% 100% 100% 100% 100% 100%

Self-generatedenergyascomparedtoneed 23% 16% 22% 56% 67% 68%

Investmentsforenvironmentalmanagement(€’000) 1,558€ 2,221€ 2,426€ 9,867€ 13,617€ 2,493€

Company profile2008 2009 2010 2011 2012 2013

NumberofemployeesatDecember,31 1,310 1,234 1,151 1,058 1,037 992

Totalnumberoftraininghours 11,532 8,843.5 11,309 9,175 23,000 9,124

Numberofhoursoftrainingonenvironmentandsafetyissues

3,367 5,236.5 3,011.5 2,871 7,572 4,514

Numberofworkplaceaccidents 121 77 78 81 63 62

Environmental and social data referring to Florim Italia. See Florim USA, in the designated section(*) Figures refer to Florim brands(**) Figures details follow on page 25.


“Theater” main hall - Florim Gallery

Economic responsibility

Comments on 2013 business data

Allkeyindicatorsshowcontinuedimprovementsin2013fortheFlorimGroup.Withagrowthinsalesof3.5%,thenetprofitincreasedfrom26.1millionEurosto35.7millionEurosandtheEBITDAincreasedfrom59.6millionEurosto73millionEuroswitharatioinrevenuesof22.4%.Thesehavebeenthemosttangiblesignsofasignificantrestructuringofthegroup’sproductionactivitieswithinvestmentsfocusingheavilyontherecoveryofefficiencyinallcostfactorsandpushingproductswithahighervalueadded.

Theexcellentfinancialfiguresareaccompaniedalsobyaconsiderableimprovementinthebalancesheetwhere,notwithstandinginvestmentsfor48.8millionEuros,thenetinterest-bearingdebtof127.7millionEuroswasreducedto96.5milionEuros,helpedbyadropininventorywhichwentfrom95.5millionEurosto84.4millionEuros.

Investments

Throughout2013about28.4millionEuroswereinvestedintheViaCanalettositeanddevoted,inpar-ticular, tothecompletionoftheexhibitionandeventsofFlorim Galleryandthecreationofaverticalwarehousenamed“Florim Logistica”completewithstorageareasandanoverflowtank.Finally,someinvestmentsweremadeinItalytoimprovethefacilitiesofitsplants.ThefirstphaseoftherenovationoftheFlorim USAplantinvolvedworkonthedevelopmentforgrinding,pressing,glazingandsorting,whichinvolvedacostofroughly20millionEuros.Thegroupintendstocontinuein2014withthesecondphaseoftheinvestmentprojectattheUSsiteandstarttherestructureworkontheGresdivisionattheMordanoplant,whichbelongstotherecentlyfoundedMaKers.r.l..


Value added

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

Measurement of Value Added

Thissectionofthefinancialstatementsaimstoofferasnapshotofthevaluesoftheeconomiceffectsproducedbycompanybusiness.Therefore,theresultisarepresentationofthewealthproduced,centeredontheformationofValueAdded,whichisperceivedastheabilitytocreateresourcestodistributetothestakeholdersinterestedincompanyactivities.Thescheduleshowsthefollowinglevels:

• Gross Value Added (GVA),whichisobtainedfromthedifferencebetweentheproductionandtheintermediatecostsofproduction:- the total value of productionisfoundbytotalingthevaluesoftheproceedsobtainedfromthe

ordinaryactivitiesofthecompany- intermediate costsarethecoststhatdonotrepresentremunerationoftheinternalstakeholders,

suchasrawmaterialconsumption,costsdesignatedforservices,andothercharges

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

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

eventsthatareunrelatedtoordinaryactivity,forexample,capitalgainsandlosses,outofperiodgainsandlosses.

Schedule of how the Value Added measurement was reached

In thousands of Euros 2009 2010 2011 2012 2013

Revenue from sales and services 211,636 217,334 242,324 243,365 240,570Other revenue 4,429 3,406 4,411 9,682 7,581Change in inventories of products and semi-finished goods (15,687) (6,494) (11,169) (14,529) (5,542)

Total value of production 200,378 214,246 235,565 238,519 242,609

Raw materials costs 45,746 54,800 59,579 61,989 58,597Change in raw materials and ancillary materials inventories 3,900 1,021 2,751 1,241 1,513

Costs of services 61,286 65,215 72,267 73,357 72,352Costs of outsourced services 3,169 3,215 3,654 3,285 2,345Other operating expenses 2,904 3,870 4,952 3,478 3,429

Intermediate costs of production 117,007 128,121 143,203 143,350 138,236

Characteristic Gross Value Added 83,371 86,125 92,362 95,169 104,373

Accessory charges and income 291 3,718 (27) 302 815Extraordinary charges and income 12 (1,240) (2,982) 1,364 (197)

Extraordinary and accessory components 303 2,478 (3,009) 1,666 619

Total Gross Value Added 83,674 88,604 89,353 96,835 104,992


New Florim logistics facility

Distribution of the Value Added

Tobeabletoreportonthewealthproduced,ascheduleisusedtoshowitsdistributionamongthosethathavereceivedbenefit:

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

b.CompanyUndistributedprofits,provisions,amortization,depreciationandwritedowns.

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

d.Government Theeconomicbenefitacquiredbythegovernment(intheformofdirecttaxation).

e.Stockholders Thetotalamountofdividendspaid.

Schedule of how the Value Added was distributed

In thousands of Euros 2009 % 2010 % 2011 % 2012 % 2013 %

Employeesandotherassociatesofthe

company55,562 66% 56,257 64% 54,608 61% 54,607 56% 57,002 54%

Company 15,292 19% 19,834 22% 20,997 24% 29,679 31% 32,160 31%

Capitalproviderswithexplicitinterest 8,511 10% 6,578 7% 6,408 7% 5,612 6% 4,959 5%

Government 4,308 5% 3,940 5% 7,339 8% 6,937 7% 10,871 10%

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

Total Gross Value Added 83,674 100% 88,604 100% 89,353 100% 96,835 100% 104,992 100%


Casa dolce casa - Stones&More collection


Environmental responsibility

ForyearsnowFlorimhasfollowedastrategyofcarefullymanagingitsownoperationsandtheirimpactonthelocalenvironment.Thecompany’seffortswereacknowledgedthisyearwiththeattainmentofanewambitiousgoal:FlorimisthefirstceramicscompanytohavebeenawardedtheprestigiousISO 50001certificationforEnergymanagement (aswell as receivingconfirmationof the renewalofUNI EN ISO 14001 certification forenvironmentalmanagement).

Energetic and environmentally responsible management efforts encompass all company operationsat 360 degrees, beginningwith the commitment of its labs that, every year, create productswith acontemporarydesignwhilekeepingawatchfuleyeonthegreennessofitsmaterials.

In2013 thecompanycreateda lineofself-layingproducts forexternalusewitha thicknessof2cm(roughlydouble our standard) tomanageaperfect combinationof aesthetics and sustainability. Theproductsweremanufacturedusingmorethan70%recycledmaterialsandwerespeciallycertifiedfortheireco-friendlyproperties.

Duringtheengineeringprocessrigorousattentionispaidtotheoptimizationofresourcesandenergy:Agradualreductioninscraps,therecovery of waste(over140%),thetotalrecoveryandreuseofwastewaterandthereductionofCO2emissionsaretheresultofthecompany’scommitmenttopromotingasustainableapproach.In 2013 in theFioranoplant anew, latest generation kilnwas installedwith high energy efficiencythatisexpectedtoprovidesavingsofroughly15-18%innaturalgasconsumptionandprovidegreaterproductionefficiency.Twomoreenergyefficientdryers and13newmixers for theundergroundsliptanks have been added to the same plant, which consume less energy compared to the traditionalones.Other“green”alterationsmadein2013are:therecovery of hot airtoheatthedepartments,theoptimizationoftheproductionsystemof compressed airandtheinstallationofanewplantforwater purificationtosupporttwopolishinglines.

InadditiontotheinvestmentsjustmentionedandthelargeplantsdescribedinpreviouseditionsofthisReport(solarplant,2cogenerationplants,bi-channelkilns,etc.)manyexpedientshavebeenadoptedeveryyeartoprogressivelylimittheuseofenergyandresourcesandincentivizetheirrecovery.

In the year in question, for example,we introduced anelectronic signature for carriers in order todigitalizetransportdocuments;wesignedanagreementforthedigitalization of waybillswithourenergycompany;andadevicehasbeenintroducedtoencouragerecycling.Thisisamachinethatencouragestheseparate collection of wastebyissuingbonusvoucherseveryemployeecanuseincertainshopsiftheyrecyclematerials.In2013Florimintroducedandrecycledmorethan10,500bottlesandcans.

The marketing and communications department is gradually digitalizing its promotional tools andreducingtheuseofprintedpaperand,finally,alsonewcompanyareas-FlorimGallery(classAcertified)–haveintroducedLED(lowenergyconsumption)lightingaswellasnewlowenvironmentalimpactdrierstofurtherreducetheuseofpaper(thesameforthewholeoftheplantatViaCanaletto).


Environmental certifications

Atanenvironmentallevel,Florimcertificationsconsistoftwotypes:

System certifications:• UNI EN ISO 14001 InDecember2013,Florimobtained theprestigiousandwholly voluntaryUNIEN ISO14001

certification,issuedbyTÜV.Thiscertificationatteststothecompany’scompliancewithasetofstandardized,internationalproceduresthataimtoimprovethecompany’sinternalenvironmentalmanagementsystem.Florimsoughttoobtainthisrecognitioninordertoreconcilequalitywithefficiencyandproductivity,whilerespectingtheenvironmentandtheareawherethecompanyworks.

Product Certification:• Ecolabel

Ecolabel (ECRegulation66/2010) isacertificationwhich isgranted tothoseproductswhich,throughouttheirlifecycle,complywithecologicaland performance criteria set at a European level and regards:miningrawmaterials,selectingsuppliers,manufacturingprocesses,packaging,use,anddisposal.Thesecriteriaareperiodicallyrevisedandmademorestringent so as to foster continued improvement in the environmentalquality.InSeptember2013FlorimobtainedtheEcolabelcertificationforanotherfivecollectionsfromtheFlorimbrand.

• Bureau Veritas – Recycled content ManyceramictileseriesbearingtheFlorimbrandhaveearnedcertificationfromBureauVeritas

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

• Membership LEED (Leadership in Energy and Environmental Design)

In 2013 Florim registered again with the U.S. Green Building Council(USGBC), themost importantorganization for thebuildingsector for thepromotion of projects and construction methods that can significantlyreduceoreliminatethenegativeimpactbuildingshaveontheenvironment.

To enable real measurement and accurate monitoring of the degreeof sustainability achieved by a project, in 1999 the USGBC developed

certification for designing sustainable buildings known as the LEED Green Building RatingSystem.

LEEDisoneofthemostrecognizednamesintheinternationalbuildingindustryanditscertificationis used inmany international areas to verify and certify the sustainability of a building in itsentirety,fromthedesignphasetoitsdaytodaymanagement(thisisnotproductcertification).

Florimmaterials,aspartofthesystemwhichconstitutesthebuilding,canhelpthebuildingandthebuilderobtainLEEDpointsinanumberofareas.Alldataconcerningeachindividualcollectionaremade transparentandareavailableon thebrand’swebsite through the“LEED Letter”adocumentdrawnupvoluntarilybyFlorimasaservicetocustomersanddesigners.


Environmental Management

Waste management

Florimhandleswastemanagementinallitsproductionfacilitiesaccordingtothemethodssetforthbythenationalregulatorystandards;wastehandlingismanagedthroughacomputerizedmonitoredsystem.Florimadoptsamanagementsystemthatincludesreuseofthewasteoriginatingfromtheproductionprocessesandsendingthemtodesignatedstorageareas.

WasteproducedinFlorim’sproductionfacilitiescanbesplitinto:- reusable waste originating from the production cycle,includingfiredandunfiredtilescraps,dust

collectingfilters,sludgefromtheprocessingwater,andfromthepolishingprocess- reusable waste for other areas (notrelatedtotheproductioncycle)suchasscrapsofplastic,

wood,paperandcardboard,steelandiron- hazardous waste to be collected, processed and disposed of,suchasspentoilandgrease,lime

wasteoriginatingfromfiringfumestreatment- non-hazardous and non-reusable waste,suchasanywastethatcanbedisposedwithinurban

waste

Waste 2009 2010 2011 2012 2013

Totalwasteproduced(t) 37,470 30,644 26,237 30,228 19,618

Totalwasteproduced(t)/Finishedproduct(t) 0.15 0.11 0.08 0.10 0.06

Totalreusablewaste(%) 99.2 99.1 98.72 99.47 140.41*

Totalnon-hazardouswaste(%) 99.4 99.1 98.95 99.12 98.49

(*)Inadditiontorecyclinginternalwaste,Florimalsosuccessfullyrecycleswasteproducedbythirdpar-tiesbyreusingitintheproductionprocess

Water resources

Environmentalimpactrelatedtowater drainageiscompletelyabsent,sincewaterusedintheproduc-tioncycleiscompletelyreused.Allotherdrainagepointscomplyfullywithlegalrequirements.

Water use 2009 2010 2011 2012 2013

Totalwaterconsumed(m3)/Finishedproduct(t) 0.88 0.80 0.76 0.75 0.75

Totalquantityofcubicmetersofwaterusedpertonoffinishedproduct.Thewaterusedintheproductionprocessisdrawnfromprivate,company-ownedwells,whilethewaterfromthepublicwatersupplyisusedonlyforcivilpurposes.

Packaging and covering

AllthepackagingcontainingFlorimmaterialsareobtainedusingrecycledpaperandpartsofthecoveringusedtoshelterthepalletswhichsupportthefinishedgoodsaremadeofrecycled plastic.

Thankstotherecentlyinstalledpackaging machinesacrossallthelinesoftheSortingDivisioninViaCanaletto,wearesavingconsiderableamountsofcardboardpereachsquaremeterproduced.


Energy Management

Intheceramicsindustry,theenergynecessarytooperatetheproductionsystemsisquiteintensiveandhasadirectandindirectimpactonthelocalareaandtheenvironment.The main parameter used to measure the energy needs of the systems is the specific total averageconsumptionofenergy(TEJ)whichismeasuredinGJ/tonoffinishedproductinthewarehouse.Asyoucanseefromthetablebelow,thisuseisgivenbythetotalheatconsumption(NGJ)andelectricityused(EEJ).

Parameter– Definition Unit of measurement 2009 2010 2011 2012 2013

NGJSpecificaverageconsumptionofnaturalgaswithreferencetothetotalamountoffinishedproductsenttothewarehouse.

GJ/t 4.90 5.24 5.70 5.57 5.71

EEJSpecific average consumption of electricitywithreferencetothetotalamountoffinishedproductsenttothewarehouse.

GJ/t 1.23 1.11 1.10 1.11 1.08

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

GJ/t 6.13 6.35 6.80 6.68 6.79

% Self generated electricity as compared to need % 16 22 56 67 68

Withthecompletion of the cogeneration turbinesandthesolar plant,thecompanyhasachievedaleveloffacilitiesundoubtedlyuniqueandapointofreferenceforthewholeceramicssector.Thankstoallitsefforts,Florimhasbeenthefirstceramicscompanytobeawardedtheprestigious ISO 50001cer-tificationforEnergymanagement.The16,000squaremetersolarplantwasrecognizedbyGSE(EnergyManagementServices)amongtheplantswiththemostinnovativefeaturesand,fromitscommissioning(October2013)uptoDecember2013,itproducedthefollowingresults.

kWp kWh produced kg di CO2 not emitted

2,700.21 5,886,475 3,115,098.23

Thankstopreviousinvestmentsthecompanyisnowabletoproduce68%ofitsannualenergyneedsbyitself.

Polluting emissions

Theindustrialproductionfacilityreleasesgreenhousegasesintotheatmosphere,essentiallymadeupofcarbondioxide(CO2),whosemainsourcescanbesplitinto:

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

theclayusedinmakingthetiles,fromthepresenceoforganicadditivesinthepaste.

CO2 emissions 2009 2010 2011 2012 2013

CO2emissions(t) 74,000t 86,610t 92,500t 90,500t 82,300t

CO2emissions(t)/Finishedproduct(t) 0.29 0.31 0.29 0.27 0.33

Emissions from the production cycle 2009 2010 2011 2012 2013

Particulatematerial 2.97 4.45 2.79 2.68 2.23

Lead 0.01 0.01 0.00 0.00 0.00

Fluoride 0.11 0.12 0.10 0.12 0.14

Florim vehicles

41%ofthevehiclesusedbythecompanyareelectricandthusdonotemitgreenhousegasesdirectly.Allothervehicleshaveacatalyticconverter.In2012,thefirsthybrid vehiclewaspurchasedforthecompany’sfleet.Florimhasa“FullHybrid”vehiclewhichcanalsoworkusingonlyelectricity,thuswithzeroCO2emissions.


The Spezzano Parish Summer Camp


Social Responsibility

Relationships With Employees

Florim and the social and economic crisis Florim’sresponsetotheeconomiccrisisinthelastfouryearshasbeentoactivelyinvestintheceramicsector;tangibleinitiativeshavebeen:

- considerable investments to improve the work environment and to maintain businesscompetitivenessonaninternationalscale

- useoftheCassaIntegrazioneGuadagniStraordinariainderoga(specialsupplementalsalaryfund)andEmployeeSolidaritycontracts

- trainingprojectsdesignedtoachieveprofessionalgrowthanddevelopmentoftheemployees- several CSR (Corporate Social Responsibility) activities to support family incomes, such as a

summercampforemployees’children,dealswithlocalnurseryschoolsanda65%discountonFlorimproductsforemployees’privatehomes

- in2013 theHumanResourcesDepartmentmade itself available toconsider requests for cashadvancesonSeverancePayintheeventoffinancialhardships.

EmployeesComposition of the staff(FlorimCeramicheandFinFloor)

Qualification

Executive-level Middlemanagement Administrativeemployee Equivalent Productionlineworker Total

YearGender 2010 2011 2012 2013 2010 2011 2012 2013 2010 2011 2012 2013 2010 2011 2012 2013 2010 2011 2012 2013 2010 2011 2012 2013

Women 0 0 1 2 3 3 3 3 149 143 144 137 19 18 19 18 279 255 239 226 450 419 406 385

Men 22 22 19 18 28 23 27 21 129 119 125 127 79 63 63 64 443 412 397 376 701 639 631 607

Total 22 22 20 20 31 26 30 24 278 262 269 264 98 81 82 82 722 667 636 602 1.151 1.058 1.037 992

FigureshavebeencalculatedusingthenumberofstaffemployedinDecember

This table highlights how female employees in Florim are gaining increasingly strategic positions ininternalmanagementpositions,atrendthatthecompanyisdedicatedtoencourageincomingyears.

Employment of persons with physical disabilities

Women Men

2010 2011 2012 2013 2010 2011 2012 2013

Productionlineworker 4 3 5 6 15 15 15 18

Equivalent 0 0 0 0 1 0 0 0

Clerk 0 0 0 0 3 2 1 1

Totalphysicallydisabled 4 3 5 6 19 17 16 19

Equal opportunitiesThedistributionbetweenmenandwomen,takingintoconsiderationtheresponsibilitiesdictatedbythetypeofactivity,reflectstheaverageoftheindustry.Consideringclerksandmiddlemanagement,menearnanaverage10%morethanwomenforjobsofequalresponsibility.Amonglineworkers,thedifferenceisapproximately7%.Thereareatotalof31foreignemployeesinthecompanyasof31/12/2013.

Incentives and bonusSince1992,as thefirstcompany in theceramics industry,Florimdrewupan internalcontract (whichwasextremelyinnovativeforitstime)thatincludedavariableannualbonusawardedtotheworkersintheindustrialareaandthatwasrelatedtoanumberofeconomicandqualityindicators(EBITDA,returnsofhighquality,waste,andproductivity).Nearlyall theemploymentcontractsofFlorimemployeesarealsoregulatedbycompanyagreements,whichsupplementtheNationalCollectiveBargainingAgreement intheCeramics industry.Theareasbeingdiscussedwiththeemployeeandlaborunionrepresentativesconcernnotonlythestrictlyeconomicside,butalsothecontinuousimprovementstosafetyandthequalityofthework,andthecompetitivenessandproductivityofthecompanysystem(achievedthroughcontinuousprofessionaltrainingoperations).


TrainingFlorimbelievesthatin-housetrainingplaysakeyroleinthecompany’sdevelopment,acriticalopportunityinthesetimesofeconomicdownturnandthebesttoolfortheprofessionaldevelopmentofitshumanresources.Morethan9,000traininghourswereprovidedin2013to424persons,withanaverageof21hoursoftrainingperemployee.In2013Florimrevampedits“School for Tilers”project,thistimeaimedat12employeesoftheMordanoplant.Thecourse,lastingover250hourswithinternalandexternaltrainers,aimstoretraininternalstaffbyteachingbothgeneraltile layingtechniquesandthosespecificallyforFlorimproductssuchastheslim/4+project.

Health And SafetyCertificationInDecember2013,FlorimCeramicheobtainedtheBS OHSAS 18001certification(OccupationalHealth& Safety Assessment Series) from TÜV, an international reference for certification of managementsystems thatplaceanemphasisonhealthandsafety in theworkplace.Florimwas the first Italian ceramics companytoobtainthisimportantrecognitionwhichbearsoutFlorim’sconstantcommitmenttoitsemployees.

AccidentsIn2013thenumberofaccidentsdroppedto62,withadecreasealso inseverity,duration, frequencyandimpact.Thesefigureswereproducedbyaconstantfocusonthehealthandsafetyofourstaffintheworkplacethroughsystemsofcontrolandpreventionalongwithtraininginaccidentprevention.

2010 2011 2012 2013

Accidents 78 81 63 62

Frequency 5.52 5.61 4.98 4.60

Incidence 6.53 7.63 6.10 6.27

Severity 12.21 11.30 9.87 7.94

Duration 22.10 20.12 19.84 17.24

Impact 1.44 1.54 1.21 1.08

LegendFrequency:relationshipbetweenthenumberofaccidentsandthehoursworkedIncidence:relationshipbetweenthenumberofaccidentsandtheaveragenumberofworkersSeverity:relationshipbetweenthenumberofactualdaysofabsencefromworkandthehoursworkedDuration:relationshipbetweentheactualdaysofabsencefromworkandthenumberofaccidentsImpact:relationshipbetweentheactualdaysofabsencefromworkandtheaveragenumberofworkers

DefibrillatorsAfterpurchasingthreedefibrillators,whicharelocatedintheofficesandplantsofFioranoModeneseandMordano,FlorimorganizedseveralBLSD(BASICLIFESUPPORT–DEFIBRILLATION)courses,heldattheSassuoloHospitalTrainingCenter,foritsemployees,asrequiredbycurrentlaws.


Florim Family Day Snapshot, December 20, 2013

Mordano Parish (Imola, BO) Summer Camp

Employee welfareSummer Camps and Nursery SchoolsIn2013 toprovidesupport to the familiesofemployees,Florim renewed theproject for thesummerholiday,extendingitforthefirsttimealsotoitscolleaguesinMordano(Imola).WhenschoolswereclosedfortheirsummerbreakthechildrenofFlorimemployeestookpart in two summer camps (Parishes ofSpezzano andMordano) and the enrollment feeswerepaid for by thecompany.Since2013thecompanyhasalsoconcludedanumberofdiscountswithlocalnursery schools whichnowofferanumberofspacesforchildrenofFlorimemployeesatareducedfee.

Job sharingInlightofourongoingpromotionofCorporateSocialResponsibility,Florimnowoffersjobsharingforitsemployees,whichallowsahealthierwork-lifebalance.

Partnership with Ospedale di Sassuolo [City Hospital of Sassuolo]Attheendof2013thecompanyconcludedanagreementwiththeHospitalofSassuolothatallowsitsemployeesandtheirfamiliestohaveaccesstospecialistcareandoutpatientdiagnoses,withfreelancehealthservicedoctors,atareduced cost and shorter waiting times.

Florim Family DayAsawayofcelebratingtheinaugurationoftheFlorim Gallerywithitsemployees,thecompanydecidedtowaituntil theproductiondepartmentswereclosedso thateven factoryworkersand their familiescouldparticipateinthebigpartywhichtookplaceinthe9,000squaremeterGallery.ThedoorstotheproductionplantandofficeswerekeptopenonDecember20,2013sothateveryonewhowantedtovisitworkareashadaccess,andanareawasreservedforchildrenwithgamesandprofessionalentertainers.WeattachedaDVDtothelastpageofthisdocumentaswefeelthatthiswillgiveyouabetterideaoftheatmosphereofthateveningthananycommentevercould.


Social commitment“Ing. Giovanni Lucchese” Foundation

Thirtyyears fromtheuntimelypassingofGiovanniLucchese– founderofwhatwasthenFloorGres,currentlyFlorim–hisfamilywishedtohonorhismemorybysettingupafoundationinhisname.Inthefewmonthssince itwasestablishedin2013,theFoundationhasprovidedfundstoassociationsandagencieswhichsupportfamiliesinneedinthemunicipalitiesofthedistrict.

Research Partnerships

Inadditiontointernal investmentsinresearchanddevelopment,FlorimhasfocusedonimplementingnewpartnershipsandcollaborationswithSchoolsandUniversitiesinordertopromotetheexchangeofinformationbetweeneducationandtheindustrialsectors.

AfterreceivingrecognitionfromtheEmiliaRomagnaregion–throughtheResearchInnovationGrowthTender(thankstothecollaborationoftheUniversityofModenaandReggioEmilia)anumberofstudieswerecarriedout-in2013onthenewFlorim AGEproject,whichattractedtheattentionoftheacademicworld for its innovative characteristics. Thanks to the use of specific sensors in the covering of theslim/4+product,theprojectallowsdetectingthepressureandmovementsontheflooring.Aswellastheobvioususesinthemedical/healthsector,thePolytechnicofMilanisassessingthepotentialproductionof“green”electricityfrom“footfall”.

In2013FlorimwascalledtotakepartinanumberofeducationcoursesofferedbyprestigiousItalianinstitutes, such as the Urban Design laboratory of the Polytechnic of Milan and the “SustainableConstructionProcesses”MasteroftheIuavUniversityofVenice.

Car Pooling Modena

Florim is takingpart in theexperimentalCar Pooling Modena project, an initiativepromotedby theProvinceofModenaandtheAgenziaper laMobilità (MobilityAgency).Theobjective istoreducethenumberofvehiclesontheroad,whichwillresultinlowertransportationcostsandpollutinggasemissions.

Polytechnic of Milan

Sincetheacademicyear2005/2006,Florimhasbeenanofficial sponsorofanumberofthePoli.DesignHigher Education Courses, the consortium of the Polytechnic of Milan which administers Master’sdegrees.Thesponsorshipconsistsinseveralscholarshipsassignedtostudents.Thequalityofthestudyprogram,thecurriculaandanumberofindividualinterviewsaretheparametersusedtoselectthemostqualified candidates. Since 2012, thanks to our long-standing collaboration with Poli.Design FlorimhostedvariousmeetingsfocusingondesigninitsMilanshowroomwhichwerededicatedtoarchitectsanddesignersofeverynationality.Specialized lecturers fromPoli.DesignandthePolitecnicodiMilanoranvariousfreeworkshopstitled“Florim Design Experience 2012”.Theseworkshopswerededicatedtodevelopments intheInteriorDesignsectorandaimedtooffernewviewpointsondesigncultureaswellasnewapproachesforthedevelopment of professional standards to designersmost receptive and attentive to changes in themarketandtheroleofdesign.

Example of Slim/4+ applied using a floating system.


Florim Gallery

Club Imprese Modenesi per la RSI (Modena Businesses Club for Corporate Social Responsibility)

ForthefifthyearinarowFlorimreneweditsupportoftheCSRClub,anon-profitorganizationestablishedin2009withtheaimofsharingSocialResponsibilityprojectswithotherlocalcompaniesandwiththefollowingobjectives:

• createanetworkofinnovativebusinesses• encourageModenabusinessestouseCSRtostandoutinthemarketplaceandgainacompetitive

edge• promote CSR as a new business approach which focuses on innovative management and

sustainability• contributetowardscreatinginnovationanddevelopingsocialcapitalacrosstheregion

OnNovember13,FlorimopenedthedoorsofthenewFlorimGallerytothecompaniesoftheClub;themeoftheday:CSRandWomeninManagement.

The Lucchese Prize

TheLucchesePrizewasawardedforthetwenty-sixthtime2012.InstitutedinthememoryofGiovanniLucchese,aprogressive-thinkingfigureintheareaoftechnologicalresearchintheceramicsindustryandfatherofthecurrentFlorimchairman,ClaudioLucchese,theawardconsistsofanumberofscholarshipstostudentsof theAlessandroVoltaStateTechnical Institute inSassuolowhohaveearned theirhighschooldiplomawiththehighestscores.ThePrize isorganizedbyFlorim inconjunctionwith the “SocietàCeramica Italiana”ofBolognaandeveryyearithostsillustriousspeakerswhoaddressthemostcontemporaryissues,meetingagroupofinterestedandcuriousyoungpeople.


Quality system

Current ISO9001standardsevolvedfromthedefinitionthatdescribesqualityas theability tosatisfyexplicitorimplicitneedsviaaproductoraservice.AQualitySystemimpliesconstantimprovementofcompanyprocessesinordertoobtainproductsthatalwayssatisfytheclient’srequirements.Afterthe2013audit,FlorimCeramicheobtainedtherenewalof itsUNIENISO9001:2008certificationforthedesign,manufactureandsaleofceramictilesinallproductionareas.

OBJECTIVE INDICATOR 2009 2010 2011 2012 2013

Refiningthecontroloftheproductionprocess

Topqualityreturns 92.5 91.6 92.1 92.4 94.3

Qualityindex 87.6 86.8 87.3 88.3 90.5

Waste 5.3 5.3 5.3 4.4 4.1

Productivity 11.1 11.5 13.7 13.6 13.2

Improvementsinsalesperformanceandcustomersatisfaction

Innovationindex 19.7 31.3 31.6 33.0 29.6

%coverage 89.7 82.5 82.0 79.5 71.4

Totalportfoliotoshipinamonth 95.8 93.4 92.6 91.1 83.7

Optimizationofthelineandofthewarehouses

%obsoleteproductwarehouse 16.8 20.3 19.5 17.2 12.6

Rotationindex 1.2 1.08 1.25 1.29 1.48

Progressiveclearingofservicerelatedcomplaints,disputesandcontroversies

%squaremetersreporteddisputed 1.58 1.99 1.56 1.71 1.21

%claimspernumberoflinesoftheorder 1.23 1.06 1.24 1.00 1.13

Progressiveimprovementintheprofessionalismofthepersonnel

Personnelsalesindex 1.3 0.7 1.7 1.5 2.3

LegendTop quality returns Total order portfolio to ship in a monthPercentage relationshipbetween thesquaremetersoftopqualityproductsandthetotalsquaremetersinthewarehouse.

Percentage relationshipbetween thesquaremetersready to ship in thirty days and the squaremetersenteredintheorder

Quality index Obsolete stockPercentage relationshipbetween thesquaremetersoftopqualityproductsinthewarehouseandpressedsquaremeters.

Percentage relationshipbetween thesquaremetersofsecondchoicetiles/nonseriesproductsandtotalsquaremetersinthewarehouse.

Waste Rotation indexPercentagedifferencebetweensquaremeterspressedandsquaremetersofproductactuallysenttothewarehouse.

Relationshipbetweensquaremeterssoldandsquaremetersinthewarehouse.

Productivity Square meters reported disputedRelationshipbetween thesquaremetersofproductactually sent to thewarehouse and the total hoursworkedinthefactory.

Relationship in percentage between the number ofsquaremetersreporteddisputedandsquaremeterssold.

Innovation index Claims per number of order linesRelationship between the square meters invoicedbelonging to a series designed in the past threeyears and the total square meters invoiced. Withthissystem,Florimwillseehoweffectivethedesignprocessisinrelationtosales.

CoveragePercentage relationshipbetween thesquaremetersofproductreadytoshipandsquaremetersenteredintheorder.

Percentage relationship between the number ofclaimsandthenumberoforderlines

Personnel sales indexPercentage relationship between the number ofemployees leaving the company which were thenreplacedandthestaffatthebeginningoftheyear.


Quality, environment, safety and energy policies

System management guidelinesWhenimplementingitsSystem,Florimfulfillsthefollowingcommitments:

• respectforthestatutorylegislativeframeworkandtheapplicableregulations,withspecialattentiondevotedtoproblemsrelatedtosafety,theenvironmentandenergy,andadditionalrequirementsvoluntarilyadoptedandapplicabletotheorganization

• orientationtowardscustomers,whoarevaluedasthecompany’sfundamentalresource,identifyingtheneedstobemetandassessingthelevelofcustomersatisfaction

• orientation towards the protection of the health and safety of all the persons present in thecompany’sworkplaces

• orientation towards the protection of public health through respect for the environment andcontinuous improvement of energyperformance in the socioeconomic context inwhich Florimoperates.Thiscontextconcernstheactivityofproductionandsaleofceramictiles.InpartnershipwithFlorim,suppliersarecalledupontoshareourapproachtoquality,environment,safety,energyuse,andourimprovementplans

• definitionofmeasurablegoals

• attainmentof thedefinedquality levelswithminimizationofcosts, tobeachievedby reducingmanufacturingrejectsandoptimizingtheproductionprocess

• reductionofthenumber,durationandseverityofaccidenteventsinproductionsites

• managementofworkplacehygieneinordertopreventaccidentsandoccupationalillnesses

• optimizationoftheuseofnaturalresources

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

• makingcontinuousimprovementapermanentgoalofourorganization

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

• creationofthenecessaryconditionstopromotethemaximumexpressionofideasandproposalsforimprovementinallareasofthecompany

• developmentoftrainingactivitiesfor improvementoftheprofessionalskillspresentinindividualcompanyfunctionsandarrivalatfullawarenessofhoweachsinglecompanyfunctionimpactsontheenvironment,healthandsafety,andenergyefficiency

• measurementandcheckingoftheefficacyofthequality,environment,safetyandenergysystembymeansofauditsandmanagementreviewsandrevisionofthesystemifdeficienciesorinefficienciesareidentified

• adoption of organizational, commercial, design and manufacturing methods that allow morepunctualidentificationofmarketrequirementsandreductionoftimetomarket,plusactivitiesthatareconstantly focusedonprotectionof theenvironment,worker health andsafety andenergyefficiency.


Florim’s stand at Cersaie 2013 (Bologna)


PART THREE – OUR COMMITMENTS

The promises we kept In last year’s report we committed to reaching the following objectives

Objective Result

Economic Responsibility

Completion of vertical warehouse R completed

Florim Gallery opening R inaugurated

Purchase of covered parking area R purchased

Environmental Responsibility

Purchase of a device to encourage recycling R purchased


Agreement with the City Hospital of Sassuolo R agreement reached but area not

implemented yet

“Ing. Giovanni Lucchese” Foundation R set up and operational

Summer camp for children of employees again R offered

Nursery school agreements R renewed

Modena European City of Sports R sponsored


Goals we want to reach Weaimtoreachthefollowingobjectivesin2014:

Objective

Economic Responsibility InvestheavilyinaprojecttomodernizetheplantofMordano(nowMaKersrl)

TransfertheflagshipstoreinMilantoanewandbiggerlocation

OpenanewlocationinMoscowwithexhibitionareasandoffices

SetupasignificantpresenceofFlorimbrandsinsideMalpensaairport.

Environmental Responsibility Implementofthebestenvironmentalimpactreductiontechnologieswhenrenovating

Mordano

RemovalofremainingEternitroofsattheplantofViaCanaletto

Partial removal of Eternit roofs at the plant of Mordano

Movethemunicipalrecyclingcentertoallowamoremodernandeffectiveapproachtowastemanagement.

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

productionplant

InauguratetheFlorimformazione&salute(education&health)center,aresultofthecollaborationbetweenFlorimandtheHospitalofSassuolo

Continue to provide funds to the “Ing.Giovanni Lucchese” Foundation in support of localfamiliesinneed

InaugurateanotherroundoftheMasterinFlorim,nowbeingofferedforthethirdtime

Purchaseanewdefibrillatorfortheverticalwarehouse.


Florim USA (Clarksville, Tennessee)

PART FOUR – FLORIM USA

Profile and Economic ResponsibilityFlorimacquiredFlorimUSAin2000.ThecompanyislocatedinClarksville,Tennessee.InaproductionfacilitythatisoneofthelargestandmosttechnologicallyadvancedintheUnitedStates,FlorimmakesceramicmaterialsintendedmainlyfortheNorthAmericanmarket.ThemissionofFlorimUSAistoalwaysbeonthecuttingedgeoftechnologyasregardsprocessandproductinnovationinordertoguaranteeitsclientsthesamelevelofproductqualityintermsoftechnologyandaestheticsthatisavailableinItaly.Thefirstrenovationphaseoftheplantwascompletedin2013;thisinvolvedtheinstallationofacontinuousmill,thereplacementofseveninefficientpressinglineswiththreelatestgenerationlinescompletewithdigitalmachinesandtwosortinglines.Thefirstphasewascompletedwiththeremovaloftherailwaylineswhichhavebeen replacedwithverymodernLGVs.Theprojectwillcontinue into2014with thefullrenovationoftherawmaterialspreparationdepartment,anexpansionoftheofficebuildingandtheconstructionofanewwarehousetobeusedforstorage.


Environmental ResponsibilityFlorim USA advocates the Florim environmental policy and is committed to reaching the followingobjectives:

- adecreaseinenergyconsumptionoftheproductionprocesses- improvementinthewastemanagementprocessesandtheirrecoveryandreuse- introductionofnew,moreeco-efficienttechnologies- implementationofintegratedmanagementsystems

TheUnitedStatesfactory, justas intheItalianproductionfacilities,hasadoptedanapproachtowardcontinuousimprovement,withmanagementproceduresthatreducetheenvironmentalimpactalongthevariousstagesofthelifecycleoftheproducts,basedontheenvironmentalstandardsandusingthebesttechniquesavailable.

Environmental Initiatives and AwardsClarksville-Montgomery County Green Certification ProgramTheprecious“green”companycertificationwasawardedtoFlorimUSAthankstoanumberofinitiatives,includingthesupplyofreusablecupstoallemployees,inthiswayeliminatingtheuseofplasticbottles(theaverageuseof21,670bottlesdroppedtozero)andtheinstallationofalargetankforthecollectionofrainwaterwhichcanbere-usedintheproductionprocess.

Environmental management system and eco-compatible productsFlorimUSAmakes tiles thathelpbuildersobtain thepointsnecessary to satisfy the requirementsofthecertificationsystemforsustainablebuildingsdefinedbytheUSGBC(UnitedStatesGreenBuildingCouncil) through the LEED Green Building Rating System, one of the most widely used in the USconstructionindustry.Thisprotocolevaluatesandcertifiestheenvironmentalsustainabilityofabuildingas a unit, from its design to its day to daymanagement (formore information, see page 24).MorespecificallymanyoftheFlorimUSAseriescontainasignificantpercentageinrelationshiptotheirpre-consumerrecycledmaterialweight(from20toover40%).ThisfeaturehelpstoraisetheLEEDscoreintheprojectswherethesetilesareused.

Environmental performance indicators – summaryBelowarethemainenvironmentalindicatorsrelatedtotheimpactandperformanceofFlorimUSAduring2013.

Materials recycling

Post-consumerrecyclingmaterial:“CradletoCradle” isaprocessusedtorecycleallreclaimedglassproductsthroughoutallofMontgomeryCounty.

2009 2010 2011 2012 2013

Post-consumerrecycledmaterials(kg) 261,363 59,709 244,594 70,053 80,839

Pre-consumerrecycledmaterial:approximately45%ofthemassofmostoftheFlorimUSAproductsconsistsofwastegeneratedbythecompany(firedandunfiredtiles,glazingwaste,etc.)andsecondaryproductsacquiredexternallywhich,ifnotrecycled,wouldbedisposedwithsolidurbanwasteCardboardrecycling:about110,000poundsofdiscardedcardboardhasbeenrecycledPalletrecycling:19lorryloadsofdiscardedpalletshavebeenrecycled.


Florim USA Stand at Coverings 2013 (Atlanta, USA)

Energy consumption

2009 2010 2011 2012 2013Gas (cubic feet) 618,752,600 638,436,900 677,725,000 783,909,800 837,199,500

Electricity (KwH) 39,129,600 42,134,400 41,280,624 42,870,584 44,942,151

Water use

Waterdrawnfromthemunicipalwaternetwork

2009 2010 2011 2012 2013Water consumption (gallons) 15,735,100 17,916,000 15,194,000 18,143,000 18,754,000

Disposal and reuse of water

Waterisnotdrainedanddisposedof,asthewaterusedinproductionisfullyrecycledbackintotheprocess.

Emissions

Emissionfiguresstayedexactlythesameasthosefor2012andstayedwithinthefollowingmaximumlimits:

TSP (Total Suspended Particulates) – 95 tons per year

SO2 (Sulphur dioxide) – 106 tons per year

VOC (Volatile Organic Compounds) – 80 tons per year

NOX (Nitrogen oxide) – 97 tons/year



Employees

The Florim USA workforce at the production site of Clarksville and the logistical hub of Atlanta, iscomprisedof307employees,including17ItaliansonassignmenttotheUS,splitinto73officestaffand234lineworkers.In2013,78employmentagreementswereterminated,accountingfor25.4%oftotalemployment.

2008 2009 2010 2011 2012 2013

Humanresourcesturnover 31.9% 20.6% 14.5% 21.1% 25.3% 25.4%

ThecontractcurrentlyineffectatFlorimUSAincludesanumberofbenefitsforfulltimeemployees:• insurancetocovermedicalanddentalexpense• Vision Coverage (insurance coverage employees can activate to purchase discounted vision

eyewearandforvisitstotheeyedoctor) • lifeinsurance• supportfortemporaryandpermanentdisabilities• employeeretirementplan

Equal opportunity

Florim USA provides equal opportunity in all employment practices to all qualified employees andapplicantswithout regard to race, color, religion, gender, national origin, age, disability, or any othercategoryprotectedbyfederal,stateorlocallaws.

Health and safety

Ontheissueofsafety,FlorimUSAhasappointedaninternalsupervisorofitsfacilitiesandisalsoplanningtosetupacommitteeforhealthandsafetywhichincludesanumberofpersonsworkinginthecompany.

2008 2009 2010 2011 2012 2013

Numberofoccupationalaccidents

50 42 51 31 50 41

TheEmployeeAssistanceProgram(EAP)alsoofferssupporttoemployeesandtheirfamiliesintheeventofpsychologicaldifficulty,substancedependencyorotherproblemsthatcanhaveanegativeimpactontheirqualityoflife.FlorimUSAfullysupportsthecostsoftheprogram.

Training

EachFlorimUSAemployeeonaveragewasinvolvedin24hoursoftraining.Thecoursesplannedin2013involveanumberofareas,including:

• traininginhowtousethenewmachinesinthefactory• useofforklifts• safety• trainingofnewhires

FlorimUSAalsooffersitsemployeesatuitionassistanceplanwherebythecompanypaysthecostofpost-highschooleducationofitsemployees(whetherthisisuniversitycreditsortechnicaltraining).

Theeducationand trainingprogram forplantstaffcontinued in2013at theFlorimsite in Italywhichinvolved3employeeslastyear.

Since2012FlorimUSAhasprovidedafreee-learningcourseonitswebsiteforarchitects,engineersandcontractors(AEC)toimprovetheirknowledgeofsustainablegresporcelaintiles.


Ceremony for the awarding of grants to students of Austin Peay (Clarksville, TN)

Initiatives on the territory

Through2013,FlorimUSAhascontinuedtoprovideitssupporttoanumberofinitiativesinitslocalarea.Someofthemaininitiativesinclude:

• threescholarshipsawardedtostudentsofChemistry,ITandCommerceattheAustinPeayStateUniversityinClarksville(APSU),inmemoryofGiovanniLucchese

• participationintheUnitedWayDrive initiative,tosupport localnon-profitorganizationswhichprovideeconomicassistanceandpsychologicalsupporttopersonsindifficulty

• supportforthecollectionoffoodfortheSalvationArmy

• contributiontotheAmericanLungAssociation

• contributiontoCheerforaCure,anorganizationwhichsupportsfamilieswhosemembersareillwithcancer

• donationtoAPSU,onbehalfofemployees,ofgentlyusedbooksforchildrenandyoungpeople

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

• adonation to theAspireClarksville Foundation, anorganizationwhich supports theongoingimprovementoftheeconomyandsocialconditionsoftheClarksvillecommunity

• donationtotheAlzheimer’sAssociation,avoluntarynon-profitorganizationwhoseobjectivesaretocure,supportandcarryoutresearchinthefieldofAlzheimer’sdisease

• FlorimUSAstaffparticipationintheMontgomeryCountyGreenCertificationProgramaimstohelpcompanieslearnandimplementbestpracticesinregardstosafeguardingtheenvironmentandsupportingenvironmentalresources.


Florim Gallery - Casa dolce casa space

Quality systemFlorimUSAworksunderaQualitySystemcertifiedtoUNIENISO9001standards.Belowaresomeofthefiguresinbrief.

OBJECTIVE INDICATOR 2008 2009 2010 2011 2012 2013

Refiningthecontrolofthepro-ductionprocess

Topqualityreturns 93.4 93.4 93.5 94.1 93.2 91.7

Qualityindex 87.3 86.7 85.4 86.6 88.3 85.7

Waste 6.4 7.5 8.0 7.0 5.6 6.5

TopQualityReturns WastePercentagerelationshipbetweenthesquaremetersoftopqualityproductsandthetotalsquaremetersinthewarehouse.

Percentagedifferencebetweensquaremeterspressedand square meters of product actually sent to thewarehouse.

QualityindexPercentage relationship between the square metersoftopqualityproductsinthewarehouseandpressedsquaremeters.


GRIindicators Page

1.StrategyandAnalysis

1.1Statementfromthemostseniordecision-makeroftheorganization 7

2.OrganizationProfile

2.1Nameoftheorganization.

2.2Majorbrands,productsand/orservices.

2.3Operationalstructureoftheorganization.

2.4Locationoforganization’sheadquarters

2.5NumberandnameofCountrieswheretheorganizationoperates

2.6Natureofownershipandlegalform.

2.7Marketsserved

2.8Scaleoftheorganization

2.9Significantchangesregardingsize,structureorownership

2.10Awards/prizesreceivedduringthereportingperiod

4

11

11

11

11

16

11

10

10,16

13

3.Reportingparameters

3.1Reportingperiodforinformationprovided

3.2Dateofissueofsustainabilityreport

3.3Reportingcycle

3.4Contactsandusefuladdressesforrequestinginformation

3.5Processfordefiningreportcontent

3.6Boundaryofthereport

3.8Informationonjointventures,subsidiaries,leasedfacilities,outsourcedorotheroperations

3.9Datameasurementtechniquesandthebasesofcalculations

3.10Explanationoftheeffectofanyrestatementsofinformationprovidedinearlierreports

3.11Significantchangesinthegoal,boundaryormeasurementmethodsappliedinthereport

3.12Tableidentifyingthereportcontents

8

4

8

4

8

8

8

8

8

8

44

International GRI sustainability indicatorsThe information below illustrates the correspondence between the Florim 2013 annual report (Italian section) and the international GRI guidelines, referring to the section of this document where it is possible to obtain more information on the topic.

ReportApplicationLevel C C+ B B+ A A+

Stand

ardDisclosures

G3ProfileDisclosures

OUTP

UT Report on:

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

Rep

ortExternallyAassured

Report on all criteria listed for Level C plus:1.23.9, 3.134.5 – 4.13, 4.16 – 4.17

Rep


Same as required for Level B

Rep


G3Management

ApproachDisclosures O

UTP

UT Not Required

Management Approach Disclosures for each Indicator Category

Management Approach Disclosures for each Indicator Category

G3PerformanceIndicators&Sector

SupplementPerformance

Indicators

OUTP

UT Report on a minimum of

10 Performance Indicators, including at least one from each of: Economic, Social and Environmental.

Report on a minimum of 20 Performance Indicators, at least one from each of Economic, Environmental, Human rights, Labor, Society, Product Responsibility.

Report on each core G3 and Sector Supplement* Indicator with due regard to the Materiality Principle by either:a) reporting on the Indicator orb) explaining the reason for its omission


GRIindicators Page

4.Governance,commitments,stakeholder

4.1Governancestructureoftheorganization

4.2Indicatewhetherthechairofthehighestgovernancebodyisalsoanexecutiveofficer

4.3Fororganizationsthathaveaunitaryboardstructure,statethenumberofmembersthatareindependentand/ornon-executive.

4.4Mechanismsforshareholdersandemployeestoproviderecommendationsordirectiontothehighestgovernancebody.

4.14Listofstakeholdergroupsengagedbytheorganization.

4.15Basisforidentificationandselectionofkeystakeholders

16

16

16

15

17

17

Economicperformanceindicators

EC1Directeconomicvaluegeneratedanddistributed 18-21

Environmentalperformanceindicators

EN2Percentageofmaterialsusedwhichderivefromrecycledmaterials

EN3Directenergyconsumptionbyprimaryenergysource

EN4Indirectenergyconsumptionbyprimarysource

EN5Energysavedduetoconservationandefficiencyimprovements

EN6Initiativestoprovideenergy-efficientorrenewableenergy-basedproductsandservices

EN7Initiativestoreduceindirectenergyconsumptionandthereductionlevelsachieved.

EN8Totalwaterwithdrawalbysource.

EN10Percentageandvolumeofwaterrecycledandreused

EN16Totaldirectandindirectgreenhousegasemissionsbyweight.

EN17Otherindirectgreenhousegasemissions

EN18Initiativestoreducegreenhousegasemissionsandrelevantresults

EN20NOx,SOxandotheremissionsintotheair

EN21Totalwaterdischargebyqualityanddestination

EN22Totalweightofwastebytypeanddisposalmethod

EN23Totalnumberandvolumeofsignificantspills.

EN26Initiativestomitigateenvironmentalimpactsofproducts

18,25

18,26

18,27

27

23,31

23,26

18,25

18,25

25

25

18,26

18,26

25

25

25

23,24

Socialperformanceindicators

LA1Totalworkforcebyemploymenttype

LA7Ratesofaccidentsatwork

LA8Education,training,counseling,preventionandrisk-controlprograms

LA10Averagenumberoftraininghoursperyearperemployee

LA13Compositionofthecompany’sgovernancebodiesandworkforcebygender,ageetc.

28

29

28-29

28

16,28


Florim - aerial view of the headquarters MO)

Your evaluationWithaviewto improving futureeditionsof theSustainabilityReport,weareasking fora fewminutesofyour timetoprovideyourevaluationsandanysuggestionsyoumighthaveafterreadingthissixthedition.Thisyeartheformscanbefilledindirectlyonline(savingpaperandtime)byfollowingthislink

www.florim.it/en/sustainability


Florim Ceramiche S.p.A.ViaCanaletto,24-41042FioranoModenese(MO)Tel.+390536840111/Fax+390536844750www.florim.it

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Sustainability and Social Responsibility 2013 · Our Sustainability Report ... Our research and development initiatives have continued to enhance our ceramic products, now making