One example relative to PE08.2:
Again in Safim (mechanical component manufacturer), aquired in July 2017, the initial ESG due diligence highlighted the complexity and potential vulnerability of the supply chain in consideration of the high expected international growth.
In 2018 the company deep analysed its top 30 suppliers (under "Top 30 Supplier Assessment" initiative). Each supplier was investigated in its production processes and its ability to scale operations, increase volumes and deliver effectively without extra costs. The joint Safim and its supplier’s processes of forecasting, ordering, producing, stocking and delivering have been mapped, analysed and optimised for common benefit.
As a result, Safim in 2018 achieved a proforma cost reduction on purchased goods of approx. -5% (+2% overall EBITDA impact). It qualified and introduced 6 new suppliers. It created and launched a new shared demand forecast model landing a decrease between 50% and 90% in delayed delivery (depending on each supplier).
As for PE 08.1 we do not exclude investments because of insufficient ESG performance. We believe that in our average holding term (5 years) we can fundamentally improve the way ESG is perceived by management and stakeholders, managed and monitored.