Company history

                                                                                                                  LETTER FROM MARCO GIOVANNINI AND FRANCO BOVE ..................................................... 4

                                                                                                                   OMPANY OVERVIEW............................................................................................................................................... 7

                                                                                                                   ORPORATE SOCIAL RESPONSIBILITY: VISION AND ACTION ......................................... 39

                                                                                                                  LOCAL ENGAGEMENT............................................................................................................................................. 67

                                                                                                                   ORLDWIDE PLANTS OVERVIEW ............................................................................................................ 77

                                                                                                                  ANNEXES ........................................................................................................................................................................103

2_                      2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT   SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019                                                                                                                                                                                         _3
     Letter from…

     The publication of the 9th edition of our Annual      Although fully aware of the difficulties that lie    There are 4 key principles, respect, tolerance,
     Sustainable Development Report takes place at a       ahead and the great changes to be made, our          ethics and solidarity. And it is precisely the
     time of exceptionally severe health challenge and     Group has, however, more reasons to look forward     same spirit of solidarity that has manifested
     on the eve of a worldwide economic and social         with confidence.                                     itself everywhere in the world to counter Covid
     crisis of unprecedented size. Our first thoughts go   The health crisis we are going through requires      19 which should guide all of us to get out of
     to all those who, in recent months, have fought       a new look at our most precious capital: people.     the crisis and guarantee everyone health, work,
     this subtle, invisible, deadly enemy that generates   All different and unique, women and men, young       safety and well-being.
     fear, distrust and concern for the future, in the     and old, with their challenges to face and win in    In our 2016-2022 sustainable growth program,
     personal as well as in the professional sphere. In    personal and professional life. Our challenge,       environmental and social goals are more impor-
     the Group, in every plant, all possible measures      as a Group, is to resume our activities, to find     tant than ever.
     have been enforced to guarantee the safety and        our way back to growth, putting people and the
     health of all employees. We have also taken out                                                            We are halfway there and there is still a lot to
                                                           environment at the center.                           do. The crisis is not and will not be an excuse to
     an insurance policy that covers all our employees
     around the world if they fall ill due to Covid 19.    To the three Group values «Excellence, Inno-         ease efforts and investments. Indeed, it tells us
                                                           vation and Sustainability», we have decided to       that there is no more time to waste.
     At the same time, we are committed to main-           add that of «Diversity & Inclusion». At the end
     taining production and the guarantee of supply                                                             Let’s move forward, united, determined and
                                                           of 2018, we started a reflection process that        confident.
     to our customers worldwide wherever possible.         involved all the Business Units. The fruit of this
     After a positive 2019, the impact of the crisis on    work led to the development of a «Charter of         Many thanks.
     the first months of 2020 is already considerable,
     and 2020 performance will be affected.
                                                           diversity and inclusion», which will be launched
                                                           during the year.
                                                                                                                                 Marco Giovannini & Franco Bove
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COMPANY OVERVIEW                                                                                                                                                                                                                           COMPANY OVERVIEW
     Company history                                                                                                                                                                           2019 HIGHLIGHTS
                                                                                                                                                                                                • Dutch subsidiary Guala Closures In-
                                                                                                                                                                                                                                                 2019 highlights
                                                                                                                                                                                                   ternational B.V. approved the establi-
                                                                                                                                                                                                   shment of a new company in Belarus.
                                                                                                                                                                                                   We started up a new production unit
     1954 • Guala is founded for the production of plastic     2008 • Acquisition of the Technologia Closures             2016 • Acquisition of CAPMETAL in France                     Debiti in Minsk
                                                                                                                                                                                                   occum     (Belarus)
                                                                                                                                                                                                          vent         at the
                                                                                                                                                                                                                autectem      endmodi
                                                                                                                                                                                                                           reped  of 2019.
              components.                                                plant in Ukraine.                                           in December 2016.                                      sandaecus    por maximilitas  eaquiae. Et eaque
                                                                                                                                                                                                   The plant in Kenya started production
                                                                      • Guala Closures exits the Italian stock market.             • GCL Technologies founded in Foetz (LUX).              mo conseque
                                                                                                                                                                                                   in Februaryet re occusci urehendebita
     1960 • The first patented models of non-refillable                                                                                                                                    porerestorum voluptatur aut. Debiti occum por
             closures are produced.                                                                                                                                                                We moved production to Scotland to
                                                                 2009 • The Pharma division is established                2017 • Acquisition of Axiom Propack Pvt Ltd in India.         maximilitas eaquiae. Et eaque mo conseque
                                                                           with head office in Vasto.                                                                                              the Bridge of Allan plant.
                                                                                                                                  • Acquisition of the activities of LIMAT S.A. de C.V.    et re occusci urehendebita porerestorum
     1998 • Marco Giovannini becomes leader.                                                                                        in Mexico and of the activities of ICSA in Chile.             The PET
                                                                                                                                                                                            voluptatur  aut.plant of Guala Closures Iberi-
             Guala Closures Group is established                 2010 • Eastern Europe expansion: Guala Closures acquires                                                                         ca in Alcalá De Henares (Madrid) was
             and sponsored by private investors.                                                                                  • Opening of GCL Technologies.
                                                                         Danik in Bulgaria and DGS in Poland.                                                                                      definitively closed at the end of July.
     2000 • After Spain, Mexico, Brazil, Colombia and India,                                                                2018 • Start up production in Chile.                                We reorganized the Group’s activities
                                                                 2011 • Acquisition of Metalprint in Magenta (Italy),
             international expansion continues into Argentina,           degreasing, cutting, and lithography plant.              • Ordinary shares and market warrants traded                   in France and China during the year.
             China and Russia.                                                                                                       on the Italian Stock Exchange.
                                                                 2012 • Acquisition of Metal Closures Industries                 • Incorporation of a new company in Kenya,                  • A review of the ethical/social policy
     2003 • The Aluminium Division is established -                     in South Africa.                                            named Guala Closures East Africa Limited.                    was published which, in addition
             Global Cap SpA is acquired.                                                                                          • Merger process between group companies:                      to drawing attention to full respect
           • Guala Closures Group now has 21 production         2014 • Guala Closures Group celebrates 15 years                    Guala Closures (India) Pvt Limited and its
                                                                                                                                                                                                  for human rights, highlights: our
              plants worldwide.                                          in the business and 60 years in the business                subsidiary Axiom Propack (Pvt) Limited
                                                                         for the Guala Group.                                        (acquired in 2017).                                          employees, suppliers and external
     2004 • A new production plant is built in Mexico.               • Inauguration of the first production plant in            • Acquisition of United Closures and Plastics                  communities and other stakeholders.
                                                                         Fairfield, California, featuring a modern and               (UCP) in UK.
     2005 • Guala Closures North America Inc. is established            avant-garde Design Studio.                                                                                            • We updated of the materiality as-
             to sell products on the US and Canadian markets.                                                                                                                                     sessment with internal and external
          • Guala Closures is listed on the Italian stock       2015 • Guala Closures Group present at EXPO Milan.                                                                              stakeholders in order to take into
             market: 22 November 2005.                                   Opening Guala Closures DESIGN STUDIO Italia                                                                              account the Group’s continued deve-
                                                                         at Basaluzzo.
                                                                                                                                                                                                  lopment and its stock market listing.
     2006 • New sales offices are opened in North America            • New offices and HQ in Luxembourg.
             and France, as well as new production plants.            • New plant opening in Santiago de Chile.                                                                               • We launched new chip-readable clo-
     2007 • The new production plant is inaugurated                                                                                                                                              sures (NFC) in the United States. They
             at Spinetta Marengo HQ.                                                                                                                                                              have started the process of digitising
                                                                                                                                                                                                  the packaging.

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COMPANY OVERVIEW                                                                                                                                                                                  COMPANY OVERVIEW
      Our presence around the world                                                                                                                                     Our presence around the world

                                                                                                                                GUALA CLOSURES GROUP                                      Oceania
                                                                                                                                Europe                                                    • Australia : Melbourne
                                                                                                                                • Italy : Group Holding                                   • New Zealand • Auckland
                                                                                                                                • Luxembourg : International Holding                      Asia
                                                                                                                                • Netherlands : International Holding                     • China : Beijing
                                                                                                                                                                                          • India : Ahmedabad • Daman • Dharwad • Goa
                                                                                                                                GUALA CLOSURES’ PLANTS
                                                                                                                                                                                          • Kenya : Nairobi
                                                                                                                                • Bulgaria : Kazanlak
                                                                                                                                                                                          • South Africa : Cape Town
                                                                                                                                • Belarus : Minsk
                                                                                                                                • France : Chambray
                                                                                                                                                                                          SALES OFFICES
                                                                                                                                • Italy : Magenta • Spinetta Marengo • Termoli • Vasto
                                                                                                                                • Luxembourg : Foetz                                     Europe
                                                                                                                                • Poland : Wloclawek                                      • France : Tours
                                                                                                                                • Spain : Jerez de la Frontera • Olerdola                South America
                                                                                                                                • Ukraine : Sumy                                          • Argentina : Buenos Aires
                                                                                                                                • United Kingdom : Kirkintilloch • Bridge of Allan
                                                                                                                                North America                                             • Japan : Tokyo
                                                                                                                                • Mexico : San José Iturbide
                                                                                                                                • USA : Fairfield (California)
                                                                                                                                South America
                                                                                                                                • Argentina : Chivilcoy
                                                                                                                                 • Brazil : São Paolo
                                                                                                                                 • Chile : Santiago de Chile
                                                                                                                                 • Colombia : Bogotá

10_                                   2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT   SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019                                                                                                            _11
COMPANY OVERVIEW                                                                                                                                                         COMPANY OVERVIEW
      Our Group in a few figures                                                                                                                                     Our Group in a few figures

                                    29 PLANTS                                                                                                    5 RESEARCH AND                 30
            €606.5 MILLION                                                                                                                                                      NATIONALITIES
            TURNOVER 2019           3 SALES OFFICES                                                                                              DEVELOPMENT
                                                                                                                                                 CENTRES                        REPRESENTED

                                                                                                                                                                                MORE THAN
            SALES NETWORK IN OVER   6 CATEGORIES                                                                                                 33.15 HOURS                    310,000 TREES
            100 COUNTRIES           OF PRODUCTS                                                                                                  OF TRAINING PER PERSON
                                                                                                                                                                                PLANTED SINCE 2011

            OVER                    MORE THAN                                                                                                                                   MORE THAN
            16 BILLION              170 PATENTS                                                                                                  4,764                          200,000 TONNES
            CLOSURES                AND INTELLECTUAL                                                                                             EMPLOYEES                      OF CO2 OFFSET
                                    PROPERTY RIGHTS                                                                                              WORLDWIDE
            PRODUCED IN 2019                                                                                                                                                    SINCE 2011

                                                                                                                                                                                       Data updated as on 31 December 2019

12_                                                    2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT   SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019                                                                               _13
      Value creation
                                                              MEGA TRENDS                                        TECHNOLOGICAL
                                                                                                                                                      LONG TERM
                                                                                                                                                 ENVIRONMENTAL ISSUES
                                                                                                                                                                                                                                    HEALTH, SAFETY
                                                                                                                                                                                                                                    AND WELLBEING
                                                                                                                                                                                                                                                                          NEW CONSUMER

      At Guala Closures Group, we manufacture
      closures that offer innovation, protection,        MOBILIZED RESOURCES                                  PRODUCTION                                 OUR MARKETS AND PORTFOLIO                                                                   OUR CREATED AND SHARED VALUE
      safety and convenience to consumers
      while enhancing our customers’ brands.                                                                                                                                                       NO
                                                                                                                                                                               IES                      N-
      We built our business model on our vision            FINANCIAL                                                                                                     CIT                                 RE                                         FINANCIAL
                                                                                                                                                                       PA                                         FI
      and our values by relying on our resources           investments € 31.6 million                                                                             CA                                                   LL                               Turnover: 606.5 Million euros / EBITDA: 113.5
                                                           (capital expenditure, net of disposal)

      and our production capacity to offer our cus-
                                                                                                                                                                                   SPIRITS                                                              MANUFACTURAL


      tomers quality and value-added products.

                                                           MANUFACTURAL                                                                                                                                                                                 over 16 billion closures produced in 2019



      We create economic, social and environmen-           29 plants


      tal value that benefits all of our stakeholders
      and thus help strengthen our group and
                                                           INTELLECTUAL                                  TRANSFORMATION                                                                      WATER AND                                                  Over 170 international patents registered

      our customers’ performance.
                                                           5 research and development centres,
                                                           25 researchers                                    PROCESS                                              WINE                       BEVERAGE
                                                                                                                                                                                                                                                        in the field of product protection,
                                                                                                                                                                                                                                                        Over 20 new products developed in 3 years

                                                           HUMAN                                                                                                                                                                                        HUMAN
                 OUR VALUES
                                                           4,764 employees worldwide                                                                                                                                                                    33.15 training hours / employee
                                                           + 739 agency workers
                                                                                                                                                                                              OIL AND                                                   SOCIAL AND RELATIONSHIP
                                                           SOCIAL AND RELATIONSHIP                                                                                             PET            VINEGAR                                                   39 communities, 1000 beneficiary families
                                                           regular dialogue with corporate                                                                                                                                                              for Yucatan reforestation program ;
                  TRANSPARENCY                                                                               PLASTIC

                                                           and local stakeholders                                                                                                                                                                       26 villages in Gujarat plantation program


                PROFESSIONALISM                            NATURAL                                                                                                                                                                                      NATURAL




                                                           1,400,173 GJ of energy and                                                                                                                                                                   200,000 tons eq CO2 offset since 2011,

                                                                                                                                                                TS                                                          S
                                                           273,784 m3 of water consumed                                                                           YS                                               IN                                   310,000 trees planted since 2011
         PROTECTION AND WELL-BEING                                                                                                                                   T   EM                             C   AP

              REWARDING RESULTS                         STRATEGIC AXES                               EXCELLENCE                                                          INNOVATION                                                                  SUSTAINABILITY
14_                                                                                                 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT   SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019                                                                                                             _15
COMPANY OVERVIEW                                                                                              OUR TOP MANAGEMENT IS
      Our missions and values                                                                                        •C
                                                                                                                       ommitted to promoting the company values
                                                                                                                      so that they are used as a reference for
                                                                                                                      the correct development of all internal and
                                                                                                                      external activities.
                                                                                                                       ommitted to promoting and sharing ‘Cor-
                                                                                                                      porate Responsibility’ and Group objectives

                                                                                                                      at all levels.
                                                               OUR VISION                                            • Committed to sustaining and providing the
                                                                                                                        resources needed to achieve the objectives.

                                                                We manufacture closures that offer innovation,
                                                                protection, safety and convenience to                • Committed to analysing results and perfor-
                                                                consumers while enhancing our customers’                mance, and verifying the effectiveness of

                                                                                                                        the objectives achieved.
                                                                                                                     All our governance processes, values, corporate
                                                                                                                     responsibility and various commitments are
                                                                                                                     part of our ISO 9001:2015 system and audited
                                                                                                                     accordingly by Bureau Veritas.

                                                                                                                                                                       OUR CORPORATE VALUES
      At Guala Closures, we make                                                                                                                                        • Transparency: clarity, completeness and

      closures that protect and
                                                                                                                                                                           correctness of information in our business
                                                                                                                                                                           activities and in our interpersonal relations.

      enhance our customers’                                                                                                                                            • Professionalism: personnel training and
                                                                                                                                                                           growth in the pursuit of constant development.
      products.                                                                                                                                                         • Defence and well-being of the environment:

                                                               OUR MISSION
                                                                                                                                                                           safety and health in the products’ working
                                                                                                                                                                           environment, and of the impact on commu-
                                                                                                                                                                           nities close to our production sites.
                                                                We understand and embrace our clients’ goals
                                                                as our own, applying creativity, experience,                                                            • Acknowledging and awarding results: full
                                                                integrity and dedication to deliver them superior                                                          sharing of the goals and objectives’ evaluation
                                                                closures and solutions while reducing our                                                                  criteria to enhance and reward all human
                                                                environmental impact on society.                                                                           resources.

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COMPANY OVERVIEW                                                                                                                                                                                                                                                                                  COMPANY OVERVIEW
      Our markets and brand portfolio                                                                                                                                                                                                                                                                     Spirits market

      Guala Closures products are designed, manufactured and distributed worldwide and cover six product categories: Spirits, Wine, Oil and Vinegar, Water
      and Beverages, Pharma and PET. All the products are sold to two types of customers: multinational and local customers (more details can be found
      in the Plants section). The quoted percentages derive from the Group's 2019 turnover with the named categories accounting for 97.2% with a balance
      of 2.8% from other revenues.

      Spirits / Luxury........................... 66.3%                Wine................................................... 17.8%   Water and beverages................. 8.9%                            Guala Closures Group stands out as the
      Technological innovation has provided alcohol producers with     Wine is more stable over time and its delicate balance          For this sector, we produce aluminium closures for glass             key partner of spirits manufacturers.
      solutions that make it increasingly difficult and demanding      does not change during transport. Finally, the closures of      bottled gaseous and non-gaseous drinks, fruit juices
      to counterfeit packaging and protect the brand’s image.          Guala Closures make it easier to open and close the bottle,     and non-alcoholic drinks. It supplies some of the most               We are able to design totally customised                                           maintaining the quality and taste of the wine for longer.       important international brands with generic or “tamper               closures in an infinite range of colours,
                                                                                                       evident” closure systems, i.e. capsules with a patented              shapes, sizes and materials to meet the
                                                                                                         system that allows the first opening of a bottle to be
                                                                                                                                       highlighted. All closures are personalised with the best             needs of customers and to enhance their
                                                                                                                                       graphic techniques to maximise the brand’s image.                    brand image.
                                                                                                                                                                                                            Our technological innovations provide
                                                                                                                                                                                                            spirits manufacturers with solutions that
                                                                                                                                                                                                            make the counterfeiting of packaging in-
                                                                                                                                                                                                            creasingly difficult. We proactively address
      Oil and vinegar................................ 2.0%             Pharma................................................. 1.3%    PET.......................................................... 0.9%   strategic issues in this market, including
                                                                                                                                                                                                            the need of premiumisation and of diffe-
      For the oil sector Guala Closures supplies a diversified range   We are able to offer a wide range of solutions, often           It groups together the production of containers such as
      of long and short capsules, pourers specifically designed        customised to meet the needs of customers and the market.       bottles, jars, flasks and miniatures with a volume capacity
      for the viscosity of the oil in order to allow perfect pouring   The range includes plastic and aluminium closures, rubber       ranging from 20 ml up to 5 litres and collar finishes between
      and anti-drip devices to prevent dripping that could occur       closures, single-dose vials and PET bottles in an infinite      18 mm and 110 mm, thanks to a very modern equipment
      when pouring of the liquid is interrupted.                       range of colours, sizes, shapes and materials.                  together with one-stage and two-stage procedures.                                     

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COMPANY OVERVIEW                                                                                                                                                                                        COMPANY OVERVIEW
      Luxury market                                                                                                                                                                                              Wine market

                                                                                                                   Guala Closures wine screwcaps have been
                                                                      Passion is the soul of Luxury.               adopted by leading wine manufacturers
                                                                                                                   in five continents due to the benefits they
                                                                      The artisans dedicate themselves to the
                                                                                                                   offer with respect to traditional corks:
                                                                      pursuit of perfection. Luxury Closures
                                                                                                                   they have no impact on the organoleptic
                                                                      seeks to reflect both brand luxury and
                                                                                                                   qualities of the wine, avoiding oxidation
                                                                      perfection, introducing a unique solution.
                                                                                                                   and the so-called ‘cork taint’.
                                                                      The craft trend is one consequence of
                                                                                                                   Wine lasts longer over time and its de-
                                                                      the Millennials’ aspiration for new and
                                                                                                                   licate balance does not change when
                                                                      different products.
                                                                                                                   transported. Additionally, Guala Closures
                                                                      Craft in Beer, Food or Spirits reflects a    screwcaps make the bottle easier to open
                                                                      more traditional production method,          and to re-seal, maintaining the quality
                                                                      less processed, with more local content,     and the taste of the wine for a long time.
                                                                      authentic, genuine, differentiated and       The screwcaps can be personalised with a
                                                                      where possible, enveloped in a plausible     variety of decoration techniques to meet
                                                                      and distinctive story.                       the customer’s brand and marketing re-

20_                      SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019   2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT                                                 SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019                      _21
COMPANY OVERVIEW                                                                                                                                                                                          COMPANY OVERVIEW
      Water market                                                                                                                                                                                              Olive oil market

                                                                                                                   Olive oil embodies tradition, history and
                                                                      Guala Closures Group makes aluminium
                                                                      closures for beverages in glass bottles,     For the olive oil sector, Guala Closures
                                                                      such as: sparkling and still soft drinks,    Group offers a wide range of closures
                                                                      fruit juices and non-alcoholic beverages.    with an infinity of decorative possibilities,
                                                                                                                   development of spouts adapted to the
                                                                      Guala Closures is the partner of interna-
                                                                                                                   different products’ viscosities and drip
                                                                      tional leading companies, protecting their
                                                                                                                   systems that prevents liquid spillage from
                                                                      product brands with either generic or
                                                                                                                   the bottle.
                                                                      tamper-evident closures, guaranteeing the
                                                                      consumer’s bottle has not been opened.       Thanks to our 60 years of experience in
                                                                                                                   innovation through our R&D department,
                                                                      All Closures can be customized with high
                                                                                                                   the Group has patented solutions that
                                                                      quality graphical techniques to enhance
                                                                                                                   make the consumption of olive oil safer,
                                                                      brand image.
                                                                                                                   avoiding counterfeiting and preserving
                                                                                                                   its authenticity and quality.

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COMPANY OVERVIEW                                                                                                                                                                                                                                                                                                        COMPANY OVERVIEW
      Our technologies                                                                                                                                                                                                                                                                                          Our innovation process

      The SAFETY CLOSURES created by Guala Closures fight            TAMPER-EVIDENT SYSTEMS are available in different         CUSTOMISING CAPACITIES                                                                                           These trends are pushing us in a big effort to change           Connected caps are a key project for future develop-
      against counterfeiting. This illegal phenomenon affects         types to allow the consumer to see if the bottle has                                                                                                                       not only the design of the products, but also the way we        ments. With its IoC (Internet of Closure) technology,
                                                                                                                                To satisfy all the customers’ requests, we
      all countries worldwide, and consists in refilling and          been opened.                                                                                                                                                               develop and produce them: we need to be fast, able to           Guala Closures Group can make every bottle identifiable,
      substituting the original product. Such actions cause not                                                                 have developed the capability to provide                                                                         manage in parallel many developments, and flexible in           interactive and changes an isolated bottle to a Connected
      only enormous economic damage to the company, but                                                                         unique and customized solutions.                                                                                 production tooling, because of the small volumes of the         Bottle. Thanks to the insertion inside the closure of a
      – above all – provides a serious risk to the health and                                                                   • ICON range combines our artisan know-how                                                                      different designs.                                              specifically designed NFC circuit, with a simple ges-
      safety of final consumers. As world leader in the produc-                                                                    and our technological mastery (sputtering      The market evolution pushes our group in several diffe-                                                                        ture, the consumer engages the tag via his/her mobile
                                                                                                                                                                                                                                                 More and more Luxury-Premium market’s competitors have
      tion of safety closures, Guala Closures prides itself in its                                                                 metalisation matt & shiny, spray painting,     rent directions, mainly driven by the new generations’                                                                         phone and accesses content through the IoC platform.
                                                                                                                                                                                                                                                 been following our technological roadmap: a lot of compa-
      expertise thanks to continuous research in solutions and                                                                                                                    approach to distilled product choice and consumption.                                                                          We are strongly investing in this field in research and
                                                                                                                                   top & side embossing or debossing, mate-                                                                      nies, that until yesterday just produced corks, for example,
      technology towards:                                                                                                                                                         THE MAIN TRENDS ARE:                                                                                                           development of both products and production lines.
                                                                                                                                   rial effects, integration of emblems, tags                                                                    now are offering complete Luxury caps, so the competitive
                                                                                                                                   and medallions).                                                                                              arena is becoming quite crowded and challenging.
         NON-REFILLABLE SYSTEMS consist of a series of                                                                                                                            ustainability of our products, more and more requested
        internal valve systems of varying complexity dependent                                                                  • With ESSENCE range, the Group introduces       by our customers and coming from their direct and              In the Premium market we have developed new solutions
                                                                     CAPPING SYSTEMS guarantee that the closure is                                                                                                                              based on putting together different materials (like plastic
        on market need. This invention prevents the bottle from                                                                   highest quality Wood Closure and offers         strong commitment
                                                                     secured to the bottle. The three ways of capping systems                                                                                                                    and wood) and we have added further effects taking them
        being refilled and the original product replaced with a      methods include:                                             luxurious closure solutions.
        counterfeit version                                                                                                                                                       Customer engagement, through connected closures that           from the fashion industry; the result has been a new Group
                                                                     R                                                          • GRAVITAS is a unique material innovation
                                                                      oll-on: The aluminium closure is rolled on the                                                             allow the brand to pass to the final consumer the actual       catalogue for the Luxury and craft ranges (“Luxury Closures
                                                                     glass with specific rollers which form the aluminium          providing greater design freedom with a        values and create a strong consumer connection with            Artisans” and “Secret Garden” respectively).
                                                                     to the exact shape of the glass                               wide choice of finish and weight. This range   the brand; this is an important request in craft distilling,   New closures for high end products have been developed
                                                                                                                                   brings together the versatility of plastic     where brands need visibility to final consumers                for different markets, spanning from Scottish gins and
                                                                      nap-on: The closure is secured by vertical
                                                                     pressure.                                                     and the luxury feel of metal.                                                                                 whiskies, to Korean and Far East products, to Tequilas in
                                                                                                                                                                                   arket accelerated trend to push mass products toward
                                                                                                                                                                                  M                                                              Mexico and the USA.
                                                                      crew-on: The closure is screwed on.                                                                        commodities and elevate few brands to premiumisation;
                                                                                                                                                                                  this trend brings to a continuous research of cheaper          We have developed new caps whose target is to go toward
                                                                                                                                                                                  solutions in one end and to fragmentation of more and          more sustainable solutions keeping the same aesthetical
                                                                                                                                                                                  more customised products but with small volumes, in            appeal of the current more complex and less sustainable
                                                                                                                                                                                  the other end.                                                 solutions. These caps use mainly mono-material structures
                                                                                                                                                                                                                                                 and are ready to further evolve toward totally compostable
                                                                                                                                                                                                                                                 caps. That remains our target. All these developments
                                                                                                                                                                                                                                                 come not only from a tight collaboration between R&D
                                                                                                                                                                                                                                                 centers and Marketing, but also from external partners,
                                                                                                                                                                                                                                                 design agencies and web developers. We are enlarging
                                                                                                                                                                                                                                                 the number of competences we need to be ready for
                                                                                                                                                                                                                                                 future challenges.

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      Our launches                                                                                                      RE-USE                                                                                     Go further in ecodesign approach
                                                                                                                                                                                                                                                               COMPANY OVERVIEW

                                                                                                                        USE LESS                                                    In this direction, the launch of the «Green Cap» aluminum
                                                                                                                                                                                    closure should be considered, which allows an easy di-
                                                                                                                                                                                    vision between closure and bottle for correct disposal of
                                                                                                                                                                                                                                                    BIO AGAVE
                                                                                                                                                                                                                                                  To meet the requests of our tequila customers, a research

                                                                                                                        CONSUME LESS
                                                                                                                                                                                                                                                  and development process has been undertaken aimed
                                                                                                                                                                                    the packaging at the end of its life.                         at the production of stoppers with bio-based material
                                                                                                                                                                                    The Group intends to achieve the challenging objective        derived from the waste of agave processing in the tequila
                                                                                                                                                                                    of using 35% of recycled materials by 2025, also by leve-     manufacturing process, in line with a circular economy
                                                                           LUXURY CLOSURES                                                                                          raging external stakeholders, implementing increasingly       perspective.
                                       WINE CLOSURES                                Gravitas                                                                                        environmentally-friendly solutions and developing new         With the introduction of agave bio-based composite
                                                                                                                     Guala Closures, as a global leader in the production of spe-   ones at its innovative R&D centre, extending its existing
                                                                                                                     cial closures for alcoholic beverages and wine, has always                                                                   material, on the overall finished closure, 30% comes from
                                                                                                                                                                                    range of sustainable closures (Green Cap, Bio Agave,          agave fibers and 70% from polypropylene. This means that
                                                                                                LUXURY CLOSURES      been focused on protecting the environment, preserving         Wave, Bikini, etc.).
                                                                                               Ultra-premium t-bar                                                                                                                                the consumption of polymers from oil have been reduced
                                                                                                                     natural resources and reducing production waste; 26% of
                                                                                                                                                                                    To encourage best practices for closure recycling, Guala      and CO2 emission have been cutted.
                                                                                                                     its total raw materials (plastic and aluminium) are recycled   Closures has committed to joining European entities and
                                                                                                                     materials, achieving 38% of recycled materials in Europe,                                                                    This bio-based material preserves the mechanical properties
                                                                                                                                                                                    consortia that endorse materials collection and recycling,    of plastics and transform waste from the agro-industrial
                                                                                                                     and over 50% in Africa and Oceania.                            and to organise events to promote awareness, in colla-        process into an alternative material.
                                                                                                                     Aware that there is no single solution to the demand for       boration with Environmental organisations, addressed to
                                                                                                                     sustainable products, Guala Closures’ innovation has           consumers and stakeholders with a view to encouraging
                                                                                                                     moved in different directions of eco-design:                   informed consumption practices.
                                                                                                                     • Easy recycling, through mono-material solutions;
                                                                                                                     • Reduction of the impact in the production of the closure,
                                                                                                                     achieved through the use of materials partially or totally     The research, development and engineering team of Guala
                                                                                                                     produced from renewable sources;                               Closures have developed Greencap®, a special ROPP clo-
                                                                                                                                                                                    sure for wine and spirits which allows to easily and safely
                                                                                                                     • Reduction of the plastic materials used, continuing the
                                                                                                                                                                                    unscrew the skirt, that usually remains on the neck of the
                                                                                                                     research in the partial replacement of polymers with
                                                                                                                                                                                    bottle after use, without using any tool.
                                                                                                                     fibers / fillers from natural waste;
                                                                                                                                                                                    While maintaining all the advantages of a screwcap, inclu-
                                                                                                                     • The biodegradability / compostability of closures, through   ding ease of opening and closing and preservation of the
                                                                                                                     the development (with strategic partners) and the use of       quality of the wine without, among other things, requi-
                                                                                                                     advanced polymers.                                             ring any modification on the bottling line from producers
             CONNECTED CLOSURES                                                                                      The goal is to provide customers with a broad spectrum         who already use screwcaps, this helps the separation of
             NFC Aluminium closures                                                                                  of solutions that will then be chosen according to the local   the aluminium from the glass in order to improve waste
             for wine and spirits                                                                                    structure of the packaging end-of-life treatment chain.        collection and materials recycling process.

26_                                   2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT                                       SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019                                                                                                                                               _27
COMPANY OVERVIEW                                                                                                                                                                                           COMPANY OVERVIEW
      2019 Awards                                                                                                                                                                    Fight against counterfeiting

      2 AWARDS FOR E-WAK®, THE CONNECTED                               SPECIAL MENTION FOR GUALA CLOSURES                                                                                          SAVE THE SPIRITS, SAVE THE OIL,
                                                                       INTERNATIONALISATION STRATEGIES                                                                                             SAVE THE WINES
                                                                       In October, during the ceremony of “Eccellenze d’impresa”
      In may, during the Alufoil Trophy competition, organised         that took place inside the prestigious Palazzo Mezzanotte,                                                                  The Group has conceived and launched three websites
      by the European Aluminium Foil Association (EAFA),               home to the Italian Stock Exchange, Guala Closures                                                                          dedicated to social responsibility campaigns to fight against
      the “Discretionary Award” went to Guala Closures for             Group CEO & Chairman Marco Giovannini received the             THE PERCENTAGE OF                                            the counterfeiting of alcohol, oil and wine.
                                                                       prize assigned to the Group: a special mention in the
      e-WAK®, the first NFC integrated aluminum closure for
      wine, dedicated to wineries, allowing them to start a one        Internationalization category for its business strategies,     COUNTERFEITED OR ILLEGAL                                     This is a worldwide phenomenon causing serious damage
                                                                                                                                                                                                   to consumer health and the economies of many countries.
      to one relationship with their end consumers.                    for its active presence in over one hundred countries, with    SPIRITS IN THE GLOBAL MARKET                                 The Group creates products that can counteract this
      The closure impressed the judges in each category, leading       twenty-nine production plants on five continents.
                                                                                                                                                                                                   phenomenon and help to protect customers’ beverages. The
      them to consider it as a possible revolution for the wineries,                                                                                                                               aim of these websites is to create international specialist
      their marketing strategy and consumer engagement.                SPIRIPACK BRONZE AWARD FOR GRAVITAS                                                                                         focus channels and to promote a wider awareness and
      In November during the Innovation Challenge SIMEI                LUXURY CLOSURE DESIGNED FOR GLENFIDDICH                        The consequences of spirits counterfeiting are serious.      appreciation of the circumstances behind counterfeiting
      competition, the technical-scientific committee selected         GRAND CRU                                                      Along with the economic damage, it causes serious            beyond the usual boundaries of fashion and technology.
      e-WAK®, among the most deserving innovations.                                                                                   health risks and the deaths of tens of thousands of
                                                                       In the occasion of the VSPack trade exhibition in Cognac,
      Then, a new award had been assigned to the connected                                                                            people every year.                                           TO FIND OUT MORE, VISIT
                                                                       France, Guala Closures submitted its Gravitas closure
      version of Guala Closures’ WAK® screw cap for wine,              designed for the new Glenfiddich Grand Cru to the «Spiripack   An advertising campaign has been planned to support          >
      thanks to the scores obtained by the technical panel and         Crédit Agricole 2019 Award», organised by Atlanpack            communication, to raise awareness not only of consumers      >
      the public of Enoforum, the largest technical-scientific         and dedicated to the best packaging innovations from           but bartenders, companies and stakeholders in the beverage
      congress in Europe for the wine industry.                                                                                                                                                    >
                                                                       VSPack exhibitors. The jury of professionals – comprised       and drinks sector. To facilitate the process, a selected
                                                                       by representatives of the V&S News and Formes de Luxe          number of pubs, bars and clubs will act as testimonials
      ALUSNAP SMART WINNER OF “PREMIO CONAI”                           magazines, the creative agency in Spirits Design and the       of the campaign, explaining the importance of the steps
                                                                       Conseil National de l’Emballage – gave to Gravitas closure     taken to ensure the authenticity of products sold.
      Thanks to the reduction of the raw materials used for            the «Bronze Award» for the innovative features of the
      its new Alusnap closure, Guala Closures was one of the                                                                          Thanks to the development of NFC technology integrated
                                                                       material and the versatility of the shape and finishing.
      86 companies that received a CONAI award, which has                                                                             into our new range of connected closures, consumers
      reinvented its packaging with a view to innovation and                                                                          benefit from full traceability on the product and its
      environmental sustainability.                                                                                                   packaging.
                                                                                                                                                                                                   THE VALUE OF COUNTERFEITED
                                                                                                                                                                                                   ALCOHOL PRODUCTION
                                                                                                                                                                                                   IN THE WORLD

28_                                                                        2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT                   SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019                                                                                 _29
COMPANY OVERVIEW                                                                                                                                                                            The Guala Closures S.p.A. Corporate Gover-
                                                                                                                                                                                                                                                                                                                       COMPANY OVERVIEW
      Structure of the Group                                                                                                                                                                                                                                                                       Our corporate governance
                                                                                                                                                                                                  nance system is characterized by a set of
                                                                                                                                                                                                  rules, behaviours and processes aimed at gua-
                                                                                                                                                                                                  ranteeing efficient and transparent corporate
                                                                                                                                                                                                  governance and the effective functioning of
                                                                                                                                                                                                  governance bodies and control systems. The
                                                                                                                                                                                                  Company adheres to the principles and appli-
                                                                                                                                                                                                  cation criteria contained in the current Code
                                                                                                                                                                                                  of Conduct for listed companies, promoted
                                                                                GUALA CLOSURES S.P.A. ITALY                                                                                       by Borsa Italiana (the Italian Stock Exchange).
                                                                                                            100%                                                                                  The Governance adopted by Guala Closures
                                                                                                                                                                                                  must ensure fairness and transparency in
                                                                  GUALA CLOSURES INTERNATIONAL B.V. NETHERLANDS                                                                                   the management and information and the
                                                                                                                                                                                                  protection of all shareholders, in accordance
                    OCEANIA                              AMERICAS                                    EUROPE                                     ASIA                            AFRICA            with national and international best practices.
                                                                                                                                                                                                  The Shareholders’ General Meeting expresses                                                       Marco Giovannini
                   Guala Closures                  Guala Closures Mexico S.A.                 GCL International S.à r.l.                 Guala Closures (India)            Guala Closures South   the will of shareholders. It approves the finan-               Nicola Colavito                       Chairman                      Anibal Diaz




              Australia Holdings Pty Ltd                 de C.V. Mexico                             Luxembourg                               Pvt Ltd India                    Africa Pty Ltd      cial statements and appoints the members                               Director                     of the Board                   Director
                       Australia                          100%                                                                                                                 South Africa       of the Board of Directors and the Board of
                                                                                             Guala Closures DGS Poland                        100%
                    100%                            Guala Closures Servicios                                                                                                                      Statutory Auditors. It can resolve on amend-

                                                                                                    S.A. - Poland                           Axiom Propack                     Guala Closures
                   Guala Closures
                                                      Mexico, S.A. de C.V.                                                                                                                        ments to the Articles of Association and

                                                             Mexico                                                                          Pvt Ltd India                    East Africa Ltd
                  Australia Pty Ltd                                                                Guala Closures                                                                                 extraordinary transactions.

                     Australia                                                                  Ukraine LLC - Ukraine                                                                             The Board of Directors has a central role,
                                                                                                                                                                                                                                                                                                   BOARD OF
                                                       Guala Closures de                                                                 Beijing Guala Closures

                                                    Colombia Ltda Colombia                     Guala Closures UK Ltd                            Ltd China                                         through the performance of functions of

                   Guala Closures                                                                 United Kingdom                                                                                  strategic guidance, organisational coordination,

                                                        Guala Closures

                  New Zealand Ltd                                                                                                                                                                 as well as verification of the existence of the

                                                                                                                                            Guala Closures                                                                                              Lucrezia Reichlin                                                                  Francesco Bove

                    New Zealand                     Argentina S.A. Argentina                   Guala Closures UCP Ltd                       Japan KK Japan                                        controls necessary to monitor the performance      Independent Director                                                                  Director
                                                                                                  United Kingdom                                                                                  of the Company itself. Moreover, it is vested
                                                        Guala Closures

                                                      do Brasil Ltda Brazil                                                                                                                       with the widest powers for the ordinary

                                                                                                   Guala Closures
                                                                                                  Iberica S.A. Spain                                                                              administration of the Company and, more

                                                        Guala Closures                                                                                                                            precisely, it has the power to carry out all the

                                                        Chile SpA Chile                            Guala Closures                                                                                 acts it deems appropriate for the achievement

                                                                                                Bulgaria A.D. Bulgaria                                                                            of the Company’s objectives, excluding only
                                                       Guala Closures
                                                                                                                                                                                                                                                                                                                                       Filippo Giovannini

                                                      North America Inc.                          Guala Closures                                                                                  those acts which are exclusively reserved to       Luisa Maria Virginia Collina

                                                        United States                            France SAS France                                                                                the Shareholders’ General Meeting.                        Independent Director
                                                                                                                                                                                                  The Control and Risk Committee is made
                                                                                                   Guala Closures
                                                                                                                                                                                                  up of Mr. Francesco Caio (president), Prof.

                                                                                                   BY LLC Belarus
                                                                                                                           100%                                                                   Lucrezia Reichlin and Dr. Nicola Colavito. The
                                                                                             Guala Closures Deutschland                                                                           Remuneration Committee is composed of                                         Francesco Caio                           Edoardo Carlo Maria Subert
                                                                                                   GmbH Germany                                                                                   Ms. Luisa Maria Virginia Collina (Chairwoman),                            Independent Director                         Director
                                                                                                                                                                                                  Mr. Francesco Caio and Mr. Edoardo Carlo

                                                                                               GCL Pharma S.r.l. Italy
                                                                                                                                                                                                  Maria Subert.

30_                                                                                                                                              2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT                                                          SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019                                                             _31
COMPANY OVERVIEW                                                                                                                                                                                                                                                                                                              COMPANY OVERVIEW
      Our committees                                                                                                                                                                                                                                                                                                                  Our committees

       CORPORATE STRUCTURE                                                                   REMUNERATION COMMITTEE                                                                   ETHICAL / SOCIAL COMMITTEE                                                                        RISK AND CONTROL COMMITTEE

         uala Closures S.p.A. is a company listed on the STAR segment of the Milan stock
        G                                                                                    This 3 member committee (composed of a majority of independent directors)                This committee is composed of the COO and concerned directors : Purchasing, Legal                 This 3-member committee (composed of a majority of independent directors) has
        exchange. The ownership structure of Guala Closures S.p.A. is characterised by       formulates proposals to the Board of Directors regarding the definition of the           Affairs, Quality. Human Resources and Sustainability. It guarantees the knowledge                 also the duty of assisting the Board of Directors in:
        a significant portion of the share being held by the market and 24.54% of voting     remuneration policy of directors and key managers of the Issuer post-merger.             and correct implementation of the Ethical / Social Policy and the Code of Ethics in                 defining the guidelines of the internal control and risk management system, to
        rights held by Managers, out of which 24.28% indirectly through the Luxembourgish    It periodically assesses the adequacy, overall compliance and actual application         all the Group’s plants with 4 objetcives :                                                           ensure the main risks are properly identified, adequately measured, managed
        company GCL Holdings SCA.                                                            of the remuneration policies for directors and key managers, and with regard to             dissemination of Group policies and objectives on ethical / social aspects                       and monitored;
                                                                                             this, establishes proposals to submit to the Board of Directors. Finally, it submits
        Guala Closures S.p.A. owns GCL Pharma S.r.l. and Guala Closures International B.V.                                                                                                definition of tools for staff training and awareness                                            the periodic verification of the adequacy and effectiveness of the internal control
                                                                                             proposals to the Board of Directors on the remuneration of executive managers
        Guala Closures International B.V., with its main office in Holland, is the sub-                                                                                                   definition and dissemination of Group procedures to manage the application of                   and risk management system;
                                                                                             and the other directors who have specific roles, establishes the remuneration
         holding company which controls directly and indirectly all the foreign companies    performance targets and monitors the application of the Board of Directors’ decisions.         ethical / social aspects (internally and in relations with interested parties)                  the approval of the work plan prepared by the Internal Audit Department Manager;
         belonging to the Group.                                                                                                                                                            coordination and verification of the internal audit results on the ethical / social part        the evaluation of the results presented in the reports of the auditing firm and in
                                                                                                                                                                                                                                                                                              any letter of suggestions and in the report on the fundamental issues emerging
                                                                                                                                                                                                                                                                                              during the audit of the accounts;
                                                                                                                                                                                                                                                                                              the appointment and revocation of the Internal Audit Department Manager.

                                                                                             BOARD OF DIRECTORS                                                                       COMEX (EXECUTIVE COMMITTEE)

       The Ordinary and Extraordinary Shareholder’s Meeting is usually convened
       by the Board of Directors and has the task of deciding upon the approval                                                                                                       This committee meets each month and analyses management progress and the                          ROLE OF THE COUNTRY DIRECTOR
       of the annual financial statements and on the other matters reserved                  Guala Closures S.p.A.’s Board of Directors is in charge of managing and deciding the     achievement of set objectives. It is composed of the Group’s CEO, COO, and CFO
       by the law or by the Articles of Associations, such as the amendments of              Group’s strategic and organisational directions, as well as verifying the existence      and other Group key department Heads (Corporate General Secretary, Marketing,
       the articles of association, capital increase, appointment of the directors,          of the needed controls to monitor the Group’s activities.                                Human Resources, Administration and Finance, Management Control, Technical                        Each of Guala Closures International’s subsidiaries is established in respect to
       the auditors and the determination of the relevant compensation, etc.                 The Board is made of 9 members, of which 3 are independent. Among the board              Departments, R&D, Purchasing, Sales, Quality and Sustainability). In addition, the                national local laws. In general, for each country in which Guala Closures operates,
       The Ordinary Shareholders’ Meeting occurs at least annually to approve the            members, Marco Giovannini is the Chairman and CEO and holds the Group’s most             Group’s Country General Directors are invited periodically as each subsidiary is                  a company-owned enterprise exists which manages the local plant. A Country
       financial statements.                                                                 senior position.                                                                         established according to national local laws.                                                     Director oversees the plant and liaises with the Group.

32_                                                                                                                           2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT              SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019                                                                                                                                                   _33
COMPANY OVERVIEW                                                                                                                                                                                                                                                                                                                 COMPANY OVERVIEW
      Economic figures                                                                                                                                                                                                                                                                                                              Economic figures

        TURNOVER                                                         TURNOVER GUALA CLOSURES GROUP                                   2 NEW ACQUISITIONS IN 2019                                     REVENUES PER TYPE OF PRODUCT 2019                           REVENUES PER GEOGRAPHIC AREA 2019
      In 2019, the Group recorded a net revenue of 606.5               (million euros, 2009-2019)                                      • On 30 July 2019 the Dutch subsidiary Guala Closures         SAFETY CLOSURES                               256.1 M€
      million euros, with a total increase of the revenues of                                                                             International B.V. approved the establishment of a
      the sales of +11.7% and an increase of the marginality to                                                            311.1          new company in Belarus. This company, called Guala          ROLL-ON CLOSURES                              179.3 M€
      level of adjusted EBITDA of +8.6% to current currencies.                                                                            Closures BY LLC, was established on September 5,
      This reveals of the resilience of Guala Closures Group’s                                                             371.4          2019. and 70% of the shareholding structure is made         WINE CLOSURES                                 108.3 M€
      business and the great capacity for action to cope with                                                                             up of Guala Closures International BV. The activity of
      exceptional events.                                                                                                  418.1          the new Minsk plant was started already in 2019 and         LUXURY CLOSURES                                 32.8 M€
      The contribution of the business of Guala Closures UCP,                                                                             the development project continues to better serve the
                                                                                                                           497.1          wider Russian market.                                       OTHER REVENUES                                  16.3 M€
      a company that entered the consolidation perimeter only
      at the end of December 2018, consolidated the Group’s                                                                                                                                           PHARMA CLOSURES                                  8.2 M€
                                                                                                                           494.3                                                                                                                                                            EUROPE
      presence in the spirits market and in particular in the                                                                          • On 4 November 2019 the new plant in Guala Closures
      Scottish whisky market.                                                                                                             East Africa was officially inaugurated. The company’s       PET                                              5.5 M€                              358.2 ME
                                                                                                                           487.8                                                                                                                                                                                                                                         ASIA
      The organic growth in revenues on a like-for-like basis                                                                             aim is to assist alcohol producers in Kenya and in the                                                                                             59.1%
      is the result of both an increase in sales volumes and                                                               520.5          wider East African market with anti-counterfeiting                                                                                                                                                                          80.1 ME
      the effect of increasing sales prices. The organic growth                                                                           closures equipped with the latest technologies. The new       REVENUES PER MARKET SECTOR IN 2019                                                                                                                             13.2%
      of Adjusted EBITDA, again on a like-for-like basis, is                                                               500.3          plant located in Nairobi made the first productions in
                                                                                                                                          February and began to penetrate the market in March         The spirits and wine markets continue to represent more
      attributable to the combined effect of an increase in                                                                                                                                           than 84% of the Group’s revenue. The Group’s consolidated   LATIN AMERICA AND
      sales prices, a reduction in the cost of core raw materials,                                                         534.8          by making the first sales to an important local customer,                                                                NORTH AMERICA                      AFRICA
                                                                                                                                          and continues the growth path supported by the Group.       financial statements are accessible to the public on our
      and in particular plastics, and the application of the new
                                                                                                                           543.1                                                                      website at:                                                               18.3 ME
      accounting principle IFRS 16; the latter positive effects,                                                                                                                                                                                                      109.8 ME                                                          OCEANIA
      which more than compensate for the increase in other                                                                                                                                                                                                                                              3.0%
                                                                                                                                                                                                                                                                        18.1%                                                           40.1 ME
      variable production costs.                                                                                          606.5
                                                                                                                                                                                                                                     66.3 / Spirits                                                                                       6.6%
                                                                                                                                                                                                                                     17.8% / Wine
                                                                                                                                                                                                                                     8.9% / Water and beverages
                                                                                                                                                                                                                                     2.7% / Other revenues
        FINANCIAL STATEMENT CERTIFICATION                                INVESTMENTS                                                                                                                                                 2.0% / Oil & vinegar
      The overall economic data has been taken from the Group’s        Net investments for the year 2019, amounting to € 31.6                                                                                                        1.3% / Pharma
      consolidated financial statements. The financial statements      million mainly concern plants and machinery and have                                                                                                          0.9% / Pet
      are certified by KPMG, which audits the contents and             affected all five continents in which the Group operates,
      confirms its compliance with International Financial Reporting   concentrating particularly in the European area in the plants
      Standards.                                                       in Italy, in Ukraine and in the United Kingdom.                                                                                                                                                                     The Group is not exposed to significant geographical risks other than normal business risks.

34_                                                                                                                                        2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT                   SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019                                                                                                                                        _35
COMPANY OVERVIEW                                                                               NUMBER OF EMPLOYEES PER CATEGORY
                                                                                                                                                                                                                               COMPANY OVERVIEW
      Human Resources figures                                                                                             Managers / 259                                                                    Human Resources figures
                                                                                                                          White collar / 1,029
                                                                                                                          Blue collar / 3,476

                                                                                                                                                      For Guala Closures Group, with its 29 facilities and 3        Guala Closures promotes respect for work and
                                                                                                                                                      sales offices in 23 countries around the world, people        employees by avoiding all forms of discrimination
                                                                                                     BREAKDOWN BY TYPE OF CONTRACT                    are a real asset and the best resource to maintain            and ensuring full observance of the fundamental
                                                                                                                                                      market leadership and develop its business. The               human rights.
            4,764 EMPLOYEES          PRESENCE IN                                                                                                      Group’s commitment is to stimulate and guide its
                                                                                                                                                      employees towards personal and professional growth,
                                                                                                                                                                                                                    Guala Closures works to promote a socially ethical
                                                                                                                        P                                                                                           business activity, based on the transposition and
            IN THE GROUP AROUND      23 COUNTRIES                                                                       employees / 87%               in line with the company’s culture and its corporate          application of the following four documents:
            THE WORLD                                                                                                   Agency workers / 13%
                                                                                                                                                      role, while generating economic and social value.
                                                                                                                                                                                                                    • Social and ethical policy
                                                                                                                                                      Multiculturalism, training, engagement, awareness of
                                                                                                                                                                                                                    • Work safety policy
                                                                                                                                                      diversity as a resource, and attention to health and safety
                                                                                                                                                      are the pillars of Guala Closures’ values and policies        • Code of ethics
                                                                                                                                                      and, thus, empower our employees and collaborators.           • Modern Slavery Act
                                                                                                     AMOUNT OF EMPLOYEES
                                                                                                     AROUND THE WORLD
            739 AGENCY               30 NATIONALITIES
                                                                                                                                                      Starting from these principles, Guala Closures strives
                                                                                                                                                      to guarantee its employees full observance of social
                                                                                                                        Europe / 2,929
            WORKERS                  REPRESENTED                                                                                                      and ethical topics in all the countries in which it
                                                                                                                        Americas / 871
                                                                                                                                                      operates, focusing primarily on three areas:
                                                                                                                        Asia / 641
                                                                                                                                                      • promoting company values and continuous impro-
                                                                                                                        Africa / 182
                                                                                                                                                         vement at all levels to encourage participation and
                                                                                                                        Oceania / 141                    a sense of belonging;
                                                                                                                                                      • promoting professional growth through continuous

                                     76% MEN
            33.15 HOURS                                                                              HOURS OF ABSENCE                                 • the increasingly scrupulous protection of labour

                                     24% WOMEN
            OF TRAINING PER PERSON                                                                                                                       law, respecting employees’ rights and adopting
                                                                                                                        Illness / 259,804 h              rigorous policies for occupational safety, with
                                                                                                                        Accidents / 24,860 h             particular attention to the developing countries in
                                                                                                                        Maternity leave / 40,604 h      which the Group operates, focusing, above all, on
                                                                                                                         Other / 119,119 h              the selection of a supply chain that is also aware
                                                                                                                          Total / 444,387 h              of ethical and social topics.

36_                                                     2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT   SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019                                                                                                                          _37
      Company history

                                                                                                                   CSR VISION
                                                                                                                   AND ACTION
CSR VISION AND ACTION                                                                                  Guala Closures Group’s CSR governance                                                                                                    CSR VISION AND ACTION
      Our CSR governance                                                                                                                                                                                                                                  Our CSR strategy
                                                                                                             is essentially based on the Green Board.
                                                                                                                                                             In 2011 we designed our
                                                                                                             This CSR body was set up in 2015 to define
                                                                                                             and ensure effective implementation of          Sustainability Strategy
                                                                                                             the agreed sustainability strategy and to
                                                                                                             monitor progress. In 2019, The Green Board
                                                                                                                                                             based on three pillars
                                                                                                             was composed of senior executives at both       (Planet / People / Profit)
                                                                                                             the Corporate and Country/Factory levels,
                                                                                                             thus including a mix of geographical areas.     and 12 indicators.           In every area of the Group, Guala Closures promotes and strengthens its global
                                                                                                             All Country Managers and the continuous                                      leadership in the field of safety closures and aluminium closures, as well as in the
                           Fabrizio Venezia                        Mauro Boano
                                                                                                             improvement team collect and transmit to          ENERGY CONSUMPTION         PET and pharmaceutical product lines, through:
                                                                                                             the Green Board the environmental, social
                           Group Purchasing                        Group Human Resources                     and economic KPIs for the monitoring of the
                                                Franco Bove
                                                                                                             Sustainability Programme and greenhouse           CO2 EMISSIONS              CUSTOMER SATISFACTION                                THE DEVELOPMENT OF HUMAN RESOURCES
                                                                                                             gas emissions. The body meets 2 to 4 times
                                                 Group Chief                                                                                                                              • Developing products that meet the needs           • Ensure full compliance with ethical-social
                                                                                                             a year to discuss progress, listen to top
           Andrea Tassisto
            Group Technical
                                               Operating Officer                 Fulvio Bosano
                                                                                 Group Product Research      management feedback, identify challenges          WASTE                         of customers and the market                          aspects within the areas of the group
                   Director                                                      and Innovation Director     and suggest strategic solutions, under the                                   • Making production, products and processes         • Promote our corporate values with
                                                                                                             guidance of COO Franco Bove.                      RAW MATERIALS                 ever more innovative                                 employees at all levels
                                                                                                             In 2020, the Green Board will be renewed                                     • Improve the efficiency and quality                • Foster professional growth
                                                                                                             to achieve the gender equality in line with                                     of production processes
                                                                                                             our commitment to diversity and inclusion.        WATER                                                                           • Ensure safety in the working environment

      David Stevenson                                                                Armando Finis                                                                                        • Ensure a fast, effective and secure
       Country Director                                                              Group Sales             The organisation of CSR at local level is                                       standard of service                               INVESTOR SATISFACTION
        India and Africa                                                             Director                voluntarily left to the free choice of the        ENVIRONMENTAL MANAGEMENT
                                               BOARD                                                         Country Managers, who implement it
                                                                                                             according to the resources and needs of
                                                                                                                                                                                          • Safeguard the brands and confidentiality
                                                                                                                                                                                             of our customers
                                                                                                                                                                                                                                               • Commit to controlling costs and
                                                                                                                                                                                                                                                  eliminating inefficiencies and waste
                                                                                                             local conditions. In all the Business Units,      HEALTH AND SAFETY                                                               • Generate added value at all stages
      Violette Montagnese                                                        José Luis Gutierrez         the Country Managers have appointed a CSR                                    ATTENTION TO THE CONSUMER                               of business processes
            Group Marketing
                                                                                 General Director
                                                                                                             manager who has the task of implementing
                                                                                                             the Group’s strategy, implementing the
                                                                                                                                                               TRAINING                   • Ensure full compliance of our
                                                                                                                                                                                             food-contact closures
                                                                                                             planned actions and achieving the collective
                                                                                                                                                                                          • Respect the environment with particular
                                                                   Maurizio Mittino
                                                                                                             objectives of the Programme. Local CSR            DIVERSITY                     attention to reducing the environmental
                           Alessandro Pera                                                                   managers support, pilot and coordinate
                                                                   Sustainability and Continuous                                                                                             impact of production cycles
                            Group Controller                                                                 actions within their Business Units. They are
                                                                   Improvement Director
                                                                                                             responsible for reporting group indicators.       PRODUCTION EFFICIENCY      • Engage in important initiatives for communities
                                                                                                             The Corporate CSR team brings its exper-                                        close to production sites
                                                                                                             tise and support in the use of tools to the       INNOVATION
                                                 Ken Moran                                                   Business Units, giving life to the entire CSR
                                               Country Director                                              Programme, facilitating the exchange of
                                               United Kingdom                                                good practices between the Business Units         CUSTOMER SATISFACTION
                                                                                                             and supporting innovative projects.

40_                                                                                                        2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT                                       SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019                                                         _41
CSR VISION AND ACTION                                                                                                                                                                                                                                                                                                  CSR VISION AND ACTION
      Our issues and challenges                                                                                                                                                                                                                                                                      Our issues and challenges
                                                                                                                                                                           01- Customer satisfaction
                                                                                                                                                                           02- Employee safety at work
                                                                                                                                                                           03- Ethics and integrity
                                                                                                                                                                           04- Ethical business practices
                                                                                                                                                                           05- Governance & compliance

                                                                                                                                                                                                                                      Absolutely critical
                                                                                                                                                                           06- Innovation
                                                                                                                                                                           07- Corruption risk management and prevention
      In 2019, we updated our materiality assessment by invol-                                                                                                             08- Economic performance
                                                                                                                                                                                                                                                                                                                                            2 1
                                                                      FIVE STEPS FOR
      ving our internal and external stakeholders in a dialogue                             We reviewed and extended our list of potential material challenges             09- Data privacy and security
                                                                    MATERIALITY MATRIX
      process. In line with the  reference framework pu-                                initially established in 2016 by analyzing good sectoral practices and         10- Transparency                                                                                                                                                    3
      blished by the International Integrated Reporting Council                             reporting reference frameworks (International Integrated Reporting             11- Child labour prevention                                                                                                                                       4
                                                                   IN-DEPTH ANALYSIS OF     Council - IIRC, Global Reporting Initiative-GRI and the Sustainability         12- Ethical purchasing practices                                                                                                    11                              5
      (IRCI), our essential issues are the economic, social and                                                                                                                                                                                                                                                                             6
                                                                                                                                                                           13- Raw material recycling                                                                                                        12

                                                                                                                                                                                                                                      Very important
      environmental issues that impact our ability to create          SECTORAL ISSUES       Accounting Standards Board-SASB, United Nation Sustainable Deve-
                                                                                                                                                                                                                                                                                                 17                                            7
                                                                                            lopment Goals-UN SDGs).                                                        14- Use of harmful substances                                                                                                       13                          9     8
      value in a sustainable manner. They are determined based                                                                                                             15- GHG emissions
      on their impact on the Group’s strategy, governance,                                                                                                                                                                                                                      32              22  21     16 14 15 18                         10
                                                                                                                                                                           16- Waste from operation
      performance and prospects.                                                                                                                                           17- Human rights throughout the value chain                                                       33 34             31 30   29      19      23
                                                                                            We gathered points of view of our internal and external stakeholders
                                                                                                                                                                           18- Energy efficiency of operations                                                                                              28    20
                                                                  INDEPENDENT INTERVIEWS
                                                                                            during interviews with a representative panel of customers, suppliers,
                                                                                                                                                                                                                                                                             36 35                  26               24
      Materiality assessment update was a real opportunity to                                                                                                              19- Prevent pollution from operations
                                                                     WITH INTERNAL AND
                                                                                            administrators, employees, union members. These interviews were
                                                                                                                                                                           20- Employee training and skills / share practices                                                                         27               25
      expand even more the dialogue with stakeholders that is                               conducted by an external organization with questions on the 41 issues

      part of the culture of Guala Closures Group. We work with    EXTERNAL STAKEHOLDERS                                                                                   21- End of life product recycling
                                                                                            identified in order to prioritize their expectations in the context of their
                                                                                                                                                                           22- Ethical marketing practices
      all stakeholders to jointly develop our commitments and                               relations with the Guala Closures Group.                                                                                                                                                                          28
                                                                                                                                                                           23- Employee satisfaction                                                                           39
      contribute to sustainable and inclusive growth.
                                                                                                                                                                           24- Diversity and inclusion
      We are convinced that creating an ecosystem including                                                                                                                                                                                                                                        38
      team members and strategic partners creates more                                      We gathered opinions and points of view of nearly 200 stakeholders
                                                                                                                                                                           25- Employee empowerment                                                                           40
                                                                  BROAD CONSULTATION OF                                                                                    26- Material scarcity management
      opportunities to do good. We are committed to engaging                                across 26 countries using an on-line survey. The results have enabled

                                                                                                                                                                                                                                 of importance
                                                                  INTERNAL AND EXTERNAL                                                                                    27- Employee welfare at work

                                                                                                                                                                                                                                   Some kind
      with stakeholders at local, national and global levels:                               us to prioritize the 41 challenges according to their potential impact on      28- Develop product with environmental benefits
      to determine where Guala Closures can contribute to                                   the Group’s ability to create and share value in the medium to long term.      29- Water management
                                                                                                                                                                           30- Renewable energy use or purchase                                                                                                                                 41
      significant change.
                                                                                                                                                                           31- Engaging suppliers in sustainable performance
                                                                                            The results were shared within a steering committee, made up of                32- Air pollution
                                                                  CONSISTENCY OF MATERIAL                                                                                  33- Socially responsible investment
                                                                                            members of the Green Board and the CSR corporate team. This com-
                                                                    CHALLENGES WITH THE

                                                                                                                                                                                                                                      Not important
                                                                                            mittee ensured consistency between the prioritization of material              34- Employee psychosocial risks
                                                                   GROUP’S CRITICAL RISKS                                                                                  35- Biodiversity preservation
                                                                                            issues and the Group’s critical risks mapping.
                                                                                                                                                                           36- Land management
                                                                                                                                                                           37- Transport and travel
                                                                                                                                                                           38- Employee volunteering
                                                                                            The results of this materiality assessment have been validated by the          39- Support for charities and NGOs
                                                                   VALIDATION OF RESULTS    Executive Committee and constitute a major contribution to the Group’s                                                                                          non-existent /      very limited      Can challenge       Can severely impact   Can compromise
                                                                                                                                                                           40 - Support for local communities                                               not important                      projects or affect the    the company         the company
                                                                                            reflections. Our goal is to ensure alignment between stakeholders              41- Financial stability                                                                                                   company

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