2015 Letter from the Chairman

SALVATORE FERRAGAMO S.p.A. SUSTAINABILITY REPORT 2015 LETTER FROM THE CHAIRMAN

The inspiration that drives the The attention to world-class our operations. It documents and Salvatore Ferragamo Group craftsmanship is accompanied presents the corporate social re- stems from the passion for world- by our investments in innovative sponsibility initiatives carried out class craftsmanship, in accord- and environmentally sustainable in 2015 concerning economic, so- ance with the values inherent in materials, so as to offer our cus- cial, and environmental aspects, the Brand's DNA. One of these tomers a fascinating and state- and constitutes another important values has always been sustain- of-the-art product. The Salvatore step for Salvatore Ferragamo on ability, in the sense of a behavioral Ferragamo Group makes signifi - its journey towards sustainability. model to pursue without making cant investments in creative and any compromises. stylistic innovation, which involves Fostering transparency through- also researching and developing out the production chain, celebrat- materials with a low environmental ing the people that work for the impact. The search for ingenious Company, promoting the local solutions has always been a de- community, and protecting the fi ning characteristic of the Com- environment have always been pany since the beginning: during high on the agenda of Salvatore the years of autarky, Salvatore Ferragamo right from the start. Ferragamo used innovative and The Group's commitment is original raw materials to create its refl ected in a culture of respect shoes. This approach continues to that is also part of the Made in underpin our creative process to Italy tradition, which we carry on this day. with pride. Over the years, corporate social My father was one of the fi rst to responsibility not only has become believe in the importance of hand- an integral part of the Company's crafting and the attention to de- goals, but also a key tool in plan- tails, which still characterize our ning for the future, seeking to cre- products today. Combined with ate sustainable value for years transparency and sustainability at to come for the benefi t of future all stages of the production chain, generations. they provide our customers with The Sustainability Report testifi es a unique product and purchase to our motivation and intention to experience. communicate transparently about

Sustainability Report 2015 3 MESSAGE TABLE OF CONTENTS FROM THE CEO

LETTER FROM THE CHAIRMAN MESSAGE FROM THE CEO METHODOLOGY

1. SALVATORE FERRAGAMO 10 The history: from the origins to world-class Made in Italy products The products: style and uniqueness The Ferragamo Group today The Ferragamo Group's operating and ﬁ nancial performance Rsponsible management The approach to sustainability

2. A SHARED HISTORY 30 A Company of people Diversity and equal opportunity Promoting human capital Company welfare Occupational health and safety Internal communication

3. RESPONSIBLE PASSION 44 Made in Italy: a long-standing tradition Responsibility and attention to customers The digital experience for the Salvatore Ferragamo customer The extremely volatile economic and professionalism - in order to the Group has set for itself, and Technology and traceability to protect authenticity scenario, the currency market, align stakeholders with our eco- what it has accomplished. Brand protection and anti-counterfeiting the international geopolitical situ- nomic, social, and environmental Our commitment fosters an ation, and the multi-speed global goals. innovation of the business model 4. SUPPLIERS AND CONTRACT MANUFACTURERS: SHARED VALUES 56 economy are putting pressure With over 4,000 employees and a allowing to consolidate our com- Supply chain sustainability on businesses and compelling us presence in about ninety countries petitive advantage and reduce the to tackle new challenges in order across the globe, we are a robust risks of negatively impacting our Sustainable procurement of raw materials to create medium- and long-term and structured entity in terms of stakeholders. This will make us Retention of contract manufacturers and responsible production value. technology, professional skills, and even more reliable and proud of Materials research and development To do so, we must react and human capital. Our Group stands our values in the future. adapt effectively to change and out for its unique history and herit- 5. OPERATING EFFICIENTLY 68 the new demands from the mar- age, and has turned tradition and Energy consumption ket, while engaging openly with all the Made in Italy concept into the Water consumption stakeholders. pillars of its identity. Salvatore Fer- Waste management To respond to current trends ragamo, our founder, featured as a Materials consumption with a structured approach, we pioneer in the process that even- Emissions monitoring decided to embark on a journey tually gave rise to the Made in Italy Leed platinum building towards long-term sustainability, concept, which is based on quality, Sustainable mobility which will become increasingly innovation, and integrity. embedded in our core business. We have a long history of cham- 6. CULTURE AND PARTICIPATION 78 Together with our values and our pioning initiatives that concern Promoting cultural and social development Company philosophy, this strategy sustainability: we have maintained Salvatore Ferragamo Museum is intended to combine the need our production in Italy, focusing Ferragamo Foundation to boost efﬁ ciency - which has on corporate social responsibility always been driving the Salvatore throughout the supply chain; we BOUNDARIES OF THE ORGANIZATION'S MATERIAL ASPECTS 92 Ferragamo Group since the begin- promote and preserve the know- GRI CONTENT INDEX 93 ning - with economic proﬁ tability. how that makes our products AUDITOR'S REPORT 99 The corporate social responsi- unique and authentic; we support bility reporting process is one of the local community, and always the many facets of this journey place special emphasis on protect- towards sustainability. The aim is ing the environment. to communicate our approach - With this Sustainability Report, we based on transparency, integrity, want to shine a light on the goals

4 Sustainability Report 2015 5 METHODOLOGY

For Salvatore Ferragamo S.p.A. functions and focuses on promot- Sustainable development is development that (hereinafter also referred to ing and developing sustainability- meets the needs of the present without compro- as “Salvatore Ferragamo”), this related initiatives. mising the ability of future generations to meet Sustainability Report represents their own needs. Source: Report of the World the evolution towards a transpar- The reported information and Commission on Environment and Develop- ent and structured sustainability data, which are collected annu- ment: Our Common Future, also known as the reporting process, developed to- ally, refer to 2015 (from 1 January Brundtland Report gether with, and for the benefi t 2015 to 31 December 2015), and of, its stakeholders. It is a crucial in particular only to the activities The GRI envisions a sustainable global economy way to show what the Company Salvatore Ferragamo S.p.A. car- in which organizations responsibly manage and has done concerning sustainabil- ried out throughout the year, un- transparently communicate their economic, envi- ity during 2015, complementing less otherwise noted. ronmental, social, and governance performance operating and fi nancial data with The operating and fi nancial data and impacts. non-fi nancial information by pro- refer instead to the Ferragamo viding qualitative and quantitative Group and were taken from the The Sustainability Report helps organizations indicators. Annual Report as at 31 Decem- set goals, measure performance, and manage ber 2015. The data referring to change in order to make their activities more This Report, prepared annu- previous years is presented for sustainable. A Sustainability Report provides ally, was drafted in accordance comparative purposes only, so as information about the impacts of an organization with the “Sustainability Reporting to allow assessing the evolution of - whether positive or negative - on the environ- Guidelines - G4 version” issued in the Company's operations over a ment, society, and the economy. 2013 by the GRI - Global Report- longer period of time. Where the ing Initiative, taking into considera- data comes from estimates, it is tion the information deemed rele- fl agged accordingly. vant to stakeholders and drawing from the principles set out in the Guidelines. The matters discussed in the Sustainability Report, and the breadth and quality of the relevant reporting, refl ect the results of the materiality analysis.

The reporting process and the preparation of this document involved all Salvatore Ferraga- mo's functions, which co-operated under the central coordina- tion of the working group called “Green Team”. This consists of people from several corporate

Contacts: For more information about Salvatore Ferragamo's corporate social responsibility policies and the information included in this Sustainability Report, you can send an e-mail to the following address speciﬁ cally dedicated to corporate social responsibility: [email protected]

We wish to thank the entire internal Working Group and all the employees involved, who allowed to develop and prepare this Sustainability Report with their contribution.

6 “If vision is key to designing the company's strategy

and so is execution to day-to-day operations,

in both cases the sense of responsibility is crucial.”

General Manager of Administration, Finance, Control and Information Systems

8 SALVATORE FERRAGAMO

Salvatore Ferragamo is one of vatore Ferragamo S.p.A. is a well- teens, he developed a strong inter- the most important and interna- established Company that has est in the world of footwear: at 11, tionally recognized Made in Italy gradually expanded its offerings he started working as an apprentice luxury brands. Consolidated arti- as well as their distribution over to a shoemaker in Naples, and at 13 san skills and a tradition of crea- the years, achieving outstanding he opened his own shop in Bonito. tivity are the Brand's distinguish- results. The memory and the work Salvatore knew what he wanted: to ing features: over the years, they of the Founder have been the cor- bring respect and dignity to what have remained intact - actually, nerstone of the entire Company. was considered to be a lowly profes- they have evolved in ways con- After almost 90 years, its culture sion, turning it into an expression of sistent with their roots, constantly of teamwork still makes Salva- world-class craftsmanship through ensuring world-class results. Qual- tore Ferragamo's name resonate the search for functional and aes- ity, contemporary elegance, and widely as a byword for class and thetic perfection. innovation are the hallmarks of excellence. THE AMERICAN ADVENTURE At every Salvatore Ferragamo prod- 15, Salvatore had a turning point uct. Combined with the Compa- THE HISTORY: FROM THE in his life, when he went to live with ny's artisan tradition, they bring ORIGINS TO WORLD-CLASS one of his brothers in America, value and a universally recog- MADE IN ITALY PRODUCTS who worked at a large shoe fac- nized sense of authenticity to this tory in Boston. Brand. Salvatore Ferragamo is so The driving force of the Founder What brought him there were the much more than a Brand - it is the Salvatore Ferragamo's journey modern machines and production culmination of joint efforts and a was his burning determination, processes, with which Salvatore shared passion, which allowed the which led a migrant from a little was literally fascinated - even Company to become what it is to- town in Campania to become the though he could see their limits day. The Founder, a headstrong “shoemaker for the stars”. His in terms of quality. In the early and decisive man, never lost sight story shows that with passion, the 1920s, he moved in with another of his goal: he loved his work, and love for work, and the determina- brother in Santa Barbara, Cali- turned it into a vocation. By experi- tion to make dreams come true, it fornia, and opened a shoe repair menting and using his creativity, he is possible to overcome any hurdle shop. It is then that his career be- managed to give life to real works and achieve the impossible. gan to take off. of art: the shank as a metal sup- THE ORIGINS Salvatore Ferragamo port for the arch of the foot, the was born in 1898 in Bonito, a small cork wedge and the high-heeled town one hundred kilometers from décolleté shoes have revolution- Naples. He was the 11th of 14 chil- ized the fashion world. Today, Sal- dren. When he was not yet in his

THE COMPANY'S PILLARS

CREATIVITY INNOVATION COURAGE

PASSION BALANCE

SOLIDITY FAMILIY TRADITION AUTHENTICITY

10 Sustainability Report 2015 11 THE ENCOUNTER WITH THE THE SUPPORT OF THE DOMES- THE CONTINUITY OF IDEALS MOVIE INDUSTRY In those years, TIC MARKET Alas, the devastating When Salvatore died in 1960, California was the amazing place 1929 crisis caused the relationship his legacy was carried on by his where the fl edgling movie industry with the US market to end abrupt- wife, Wanda Miletti Ferragamo, was developing fast. Salvatore ly, pushing the Company into bank- who suddenly found herself at began making cowboy boots for ruptcy. But Salvatore Ferragamo the head of the Company, with six western movies as well as Roman did not lose heart and decided to children (Fiamma, Giovanna, Fer- and Egyptian sandals for high- focus on the domestic market. ruccio, Fulvia, Leonardo, and Mas- budget historical dramas from fa- After just a few years, the busi- simo) between 17 and 3 years old. mous directors and producers. It ness was going so well that in 1936 At fi rst by herself, and then with did not take long for the actors he rented two workshops and a the help of her children, Wanda and actresses to notice the beau- store in Palazzo Spini Feroni, in Via Ferragamo successfully contin- ty and comfort of those products: Tornabuoni. In those days, Mus- ued the legacy of his husband, eventually, they started ordering solini's Italy was under economic maximizing the Brand's value. them also for themselves. Mean- sanctions: it is then that Salvatore Under their guidance, the Com- while Salvatore, in his relentless Ferragamo came out with some pany went from manufactur- quest for “perfectly fi tting shoes”, of his most popular and imitated ing exclusively ladies' footwear to expanding into other product was studying human anatomy, and creations, such as the cork wedge categories. Meanwhile, it estab- especially the arch of the foot. sandals, which were robust and lished a global distribution network SUCCESS AND CONSECRATION light. Cork, wood, metal threads, through mono-brand stores as well When the movie industry moved to raffi a, felt, and synthetic resins as relationships with some of the Hollywood, Salvatore Ferragamo similar to glass - these were the leading and largest multi-brand went there too. In 1923, he opened innovative materials that Salva- customers. the “Hollywood Boot Shop”, which tore creatively used to replace the THE INTERNATIONAL EXPAN- marked the beginning of his career leather and steel that he could not SION Wanda and her children as the “shoemaker for the stars”, procure because of the regime's led the Company to international as the local press used to call him. autarky, achieving outstanding recognition, establishing a wide- Among his loyal customers were results. Thanks to his success, in spread global presence thanks to some very famous names, such as 1938 Salvatore Ferragamo can the fast-growing distribution net- Mary Pickford, Rodolfo Valentino, pay the fi rst installment on the pur- work and an effective product John Barrymore jr, Douglas Fair- chase of the entire Palazzo Spini diversifi cation strategy. They man- Feroni, which since then has been banks, and Gloria Swanson, who aged all this without compromising the Company's headquarters. contributed to the popularity of on the values of the Founder and RENEWED INTERNATIONAL SUC- Salvatore Ferragamo. Salvatore the style of the Brand, based on CESS After the war, the world saw was ahead of his time and com- quality, craftsmanship and creativ- Salvatore Ferragamo's shoes as a pletely revolutionized the fashion ity—the hallmarks of the Made in symbol that Italy was once again world: he opened up ladies' shoes, Italy concept. In the late 1990s, eager to live, create, and produce. which until then had always been the Company started hiring new laced up and closed-in, making Those were years of memorable managers to support its growth. them more elegant and comfort- inventions: the “invisible” sandal This phase culminated in 2006 able and created the fi rst sandals. featuring an upper made of trans- with the appointment of Michele He met with so much success that parent nylon thread, the gold san- Norsa as Managing Director, he struggled to keep up with the dals and the steel-reinforced stilet- while Ferruccio Ferragamo and orders. tos made famous by Marylyn Mon- Wanda Ferragamo became Chair THE CHOICE OF FLORENCE roe. In 1950, the Company had and Honorary Chair, respectively. The tie that binds Salvatore Fer- 700 employees and produced a Under the new organization, the ragamo to his homeland and the few hundred shoes a day by hand. heirs of Salvatore Ferragamo local artisan tradition brought him Salvatore Ferragamo once again have become the guardians of the back to Italy, and specifi cally to enjoyed international success: Brand, also through their position Florence, which had always been the store in via Tornabuoni was a on the Board of Directors. home to many skilled artisans. popular destination for celebrities THE PUBLIC LISTING One of the From his Florentine workshop, such as Greta Garbo, Sofi a Loren, key dates in Salvatore Ferraga- where he adapted the assem- Anna Magnani, the Dukes of Wind- mo S.p.A.'s history was 29 June bly line concept to the special- sor, and Audrey Hepburn, who 2011, when the Company listed ized handwork of his workers, he traveled to Florence specifi cally to on the Mercato Telematico Azi- began steadily exporting its prod- get custom-tailored shoes. onario (the Italian equity market) ucts to the United States. organized and managed by Borsa Italiana S.p.A.

12 Sustainability Report 2015 13 THE PRODUCTS: STYLE AND UNIQUENESS

Before his death, Salvatore Fer- and consolidated - even though it BEST INTERNATIONAL DESIGNER ELLE ragamo managed to fulfi ll his remains based on the values and STYLE AWARDS - NOVEMBER 2015 greatest ambition: designing competencies that characterize The magazine Elle - Serbia named Salvatore and producing the most beauti- the Brand, knowing that protect- Ferragamo's Creative Director, Massimiliano ful shoes in the world, providing and carrying on the legacy of Giornetti, as Best International Designer. This is ing the perfect fi t for the foot. the past is key for the Company's the Balkans' most important fashion award and His family had the responsibil- future. was presented during a Gala dinner at the Hyatt ity of going further and realizing Today, Salvatore Ferragamo de- Regency hotel in Belgrade on 9 November 2015. the idea that had been intriguing signs, produces and sells footwear, Salvatore in the last few years leather goods, RTW, silk products of his life: turning the Company and other accessories, perfumes, Salvatore Ferragamo into a major jewellery, eyewear, and watches fashion house. Until the 1960s, (the last two are offered through the Company's fl agship product licence agreements with leading was top-quality ladies' footwear. manufacturers). Since then, Salvatore Ferragamo has been gradually expanding its product offering, which can now be considered comprehensive

HISTORY OF SALVATORE FERRAGAMO'S PRODUCTS

1959: RTW Women 1974: Men footwear 1998: Glasses 2011: Jewellery

1970: RTW Men

today

1958: Leather goods Women

1927: Foundation of 1971: Silk and accessories 1998: Perfumes 2007: Watches Salvatore Ferragamo Italia. Product: Ladies’ footwear

The creative process for each product category is handled in-house by a team of highly-skilled stylists, materials experts, and designers. Consistently with the artistic legacy of its Founder, Salvatore Ferragamo upholds creativity as one of its core values, implementing it throughout the development of its products. Production is entrusted mostly to selected external workshops in Italy the Company has been working with for years. They are thoroughly vetted and provided with the raw materials and the various components necessary to make the products.

14 Sustainability Report 2015 15 FOOTWEAR ACCESSORIES THE FERRAGAMO GROUP TODAY

Shoes can be considered to be the This category includes Salvatore Salvatore Ferragamo S.p.A. is the Parent Company of the Salvatore historic product of the Salvatore Ferragamo's iconic silk accesso- Ferragamo Group, one of the main players in the luxury industry and Ferragamo Brand. They stand out ries (ties, foulards, scarves, etc.) whose origins date back to 1927. for their originality, perfect ﬁ t, and as well as shawls, gloves and hats, The Salvatore Ferragamo Group mainly creates, produces and sells foot- the extremely high quality of the home accessories (plaid throws, wear, leather goods, apparel, jewellery, silk products, and other accesso- materials. cushions, and beach towels), and ries. The product range also includes eyewear and watches, which are The craftsmanship and painstak- costume jewellery. manufactured by licencees, including abroad, to tap into local expertise. ing attention to details and qual- The silks and accessories are With approximately 4,000 employees and a widespread network of more ity, combined with creativity and made in Italy using high-quality than 660 mono-brand stores, the Ferragamo Group operates in Italy and an instantly recognizable design, materials. across the world through companies that give it a presence in European, make Salvatore Ferragamo shoes American, and Asian markets. the preferred choice of the most EYEWEAR AND WATCHES demanding customers across the Salvatore Ferragamo offers eye- world. wear and watches made by lead- THE FERRAGAMO GROUP BY NUMBERS LEATHER GOODS ing contract manufacturers. The eyewear line includes a compre- Salvatore Ferragamo's leather hensive range of sunglasses and goods include handbags, suitcas- prescription glasses for both men COUNTRIES WHERE THE EMPLOYEES es, belts, wallets, and other small and ladies. The watch collec- GROUP IS PRESENT leather accessories for both men tion comprises both men's and ≈90/ ≈4,000/ and ladies. ladies' timepieces made of high- The products stand out for their quality materials (titanium and exclusive details made by hand ceramic for men, gold, steel and MILLION EUROS IN MONO-BRAND and the use of special handcraft- sometimes diamonds for women). TOTAL REVENUES STORES ing techniques, such as perfora- 1,430/ ≈660/ JEWELLERY tion, embroidery, patchwork, and plaiting, as well as the use of metal In 2011, Salvatore Ferragamo accessories (e.g. buckles, fasten- introduced its ﬁ rst jewellery col- ings and ornaments). A key feature lection. The jewels draw on the is the “Gancino” clasp, originally Brand's most famous symbols designed for handbags and that and icons, reinterpreting them in a over the years has become one of contemporary way to explore new the Company's stylistic hallmarks. graphic forms and reinforce the Maison's identity. READY-TO-WEAR PERFUMES Salvatore Ferragamo offers a “total look” collection for both The Salvatore Ferragamo Group men and ladies, ranging from knit- operates in the perfume indus- wear to leather goods and fabric try through Ferragamo Parfums garments, with the purpose of S.p.A., which develops and dis- communicating the brand image tributes perfumes under the Sal- in a comprehensive manner and vatore Ferragamo and Emanuel consistently with the range of Ungaro brands. matching accessories, providing The whole product range is made customers with a “complete brand in Italy and includes both fragrances experience”. and body care products.

16 Sustainability Report 2015 17 GLOBAL PRESENCE THE FERRAGAMO GROUP'S OPERATING AND FINANCIAL PERFORMANCE

THE MILESTONES OF THE GROUP'S GLOBAL In 2015, the Company signifi cantly The world-class quality of its EXPANSION increased both revenues and prof- product range, based on Made in 1938 opening of the fi rst Directly Operated its, registering a signifi cant operat- Italy excellence, together with the Stores (DOS) in Italy (Florence and Rome) and ing net cash generation compared extensive distribution network also the UK (London); to 2014. The Group reported in countries with the highest sales total revenues of 1,430 million growth rates in the luxury sector JAPAN 1948 opening of the fi rst DOS in the United No. of stores 80 Euros, up by 7.4% compared to (China and South Eastern Asia), States (New York); NORTH AMERICA EUROPE the previous year. Net profi t for contributed to achieve these out- No. of stores 103 No. of stores 162 ASIA PACIFIC the period ended 31 December standing results. The breakdown 1986 opening of the fi rst DOS in Asia No. of stores 254 2015 amounted to 174 million of revenues by product category (Hong Kong); Euros, rising 7% from 2014. These shows the positive trend in foot- positive results help support ever- wear (+5.7%) and leather goods 1991 opening of the fi rst DOS in Japan increasing revenues and confi rm (+12.1%). (Nagoya); the extraordinary strength of the Ferragamo Brand. 1994 opening of the fi rst DOS in China LATIN AMERICA No. of stores 63 (Shanghai);

1995 opening of the ﬁ rst DOS in South Korea (Seoul);

1999 opening of the ﬁ rst DOS in Latin America (Mexico City); REVENUES BY GEOGRAPHIC AREA - 2015 REVENUES BY DISTRIBUTION CHANNEL - 2015

2006 opening of the fi rst DOS in India (Mumbai); Considering the whole distribution structure, the Ferragamo Group is present in over 90 countries across the world. 2% 2009 opening of the fi rst fl agship store in the 5% Middle East (Dubai) and launch of the e-com- Specifi cally, the Ferragamo Group operates in 28 countries through a net- 9% 27% Europe merce channel; work of directly operated stores (DOS) Salvatore Ferragamo mono-brand 36% stores, which numbered 391 as at 31 December 2015. The Group also North America 2010 opening of the fi rst mono-brand store in sells its products in 60 countries through customized third-party operated Wholesale Turkey (Istanbul), Qatar (Doha), Egypt (Cairo), mono-brand stores and spaces, totaling 271 as at 31 December 2015. In Asia Pacific Retail and South Africa (Johannesburg). addition, the Group has a signifi cant presents in major Department Stores 36% and high-end multi-brand Specialty Stores (which, together, represent the Japan 62% Other 2011 opening of new stores in Mexico (Monter- 23% wholesale channel), as well as the fast-growing travel retail network. rey), China (Guangzhou); Taiwan (Taipei), and Central and South Australia (Sydney). America

2013 Salvatore Ferragamo has 95 stores in SHE'S LIKE A RAINBOW - SHANGHAI Greater China; In November, Salvatore Ferragamo celebrated REVENUES BY PRODUCT CATEGORY - 2015 twenty years of operations in China with the 2014 opening of new stores in China (Chengdu), reopening of Shanghai's fl agship store, followed the United States (Washington), France (Paris), by the presentation of “She's Like a Rainbow”, and Brazil (Rio de Janeiro). a kaleidoscopic exhibition that explored the Ital- 6% 2% ian Brand's long history with the movie industry. 2015 opening of new stores in China (Shanghai, 7% Footwear Zhengzhou, Xiamen, Shenyang, Taiyuan), the The exhibition paid homage to fi ve of Salvatore Leather goods United States (New York, Paramus), Denmark Ferragamo's most charming muses and custom- 6% 42% (Copenhagen), Germany (Berlin), Macao (Ma- ers - Audrey Hepburn, Judy Garland, Sophia Apparel Loren, Marilyn Monroe, and Brigitte Bardot - cao), Mexico (Mexico City), Japan (Kokura Izut- Accessories suya), and Australia (Melbourne). with fi ve original models designed by Salvatore Ferragamo that these women wore during their Fragrances lifetime. 37% Other

18 Sustainability Report 2015 19 RESPONSIBLE MANAGEMENT

Salvatore Ferragamo's Corporate the Company and of the Group. identifying and managing the main work-life balance Governance system¹ complies The current Board of Directors risks2 and helps to ensure the materials traceability ofraw with the principles of the new was appointed by the Sharehold- efﬁ ciency and effectiveness of certification Corporate Governance Code for ers' Meeting of 24 April 2015 corporate operations, the reliabil- low new environment company listed Companies issued by Borsa based on the single list submit- ity of ﬁ nancial information, and cafeteria Italiana S.p.A. ted by the majority shareholder compliance with the laws and impact logistic vehicles The main corporate governance Ferragamo Finanziaria S.p.A. regulations in force, for the pur- concept store with easily recyclable RFIDmaterials carbon employees' footprint body is the Board of Directors, poses of achieving the Company's socio-environment LED LIGHTING LE which has the primary responsi- The internal control system of Sal- objectives. impact environmentally sustainable materials bility for determining and pursu- vatore Ferragamo S.p.A. is struc- eco-tecnologic testing ing the strategic objectives of tured through a process aimed at FSC bio-based upholsteryMadeIn Italy EDnew Q building craftmanship guarantee of

CORPORATE GOVERNANCE 2015 authenticity reputation better waste sorting waste sorting transmission ofexpertise BoD members (no.) 13 AR C research into Executive directors (no.) 2 Green U alternative low Independent directors (no.) 4 L communication Team T environmental

T initiatives impact products 1./2. For more details, see the "Governance" section on the Group's corporate website. sustainability U R http://group.ferragamo.com/en/governance/corporate-governance/ co-ordination E

Since the very beginning, ethics Understanding and respecting On the one hand, the Company has always been among Salvatore these values translate into ethi- encourages everyone to sponta- Ferragamo's guiding principles - a cally correct behaviors both inside neously share, comply with, and set of behavioral rules to abide and outside the Company, sup- disseminate the Code of Ethics; on by, making no compromises or exporting it in terms of economic the other hand, it requires every- ceptions, fully aware that this is growth and credibility. one operating on behalf of Salva- the only way to proudly honor the To protect these values, Salvatore tore Ferragamo or making contact heritage that characterizes the Ferragamo established a set of with the Company to abide by and Company's history. ethical and behavioral rules and apply the Code. Carrying on the legacy of its principles that guide the relations Founder, creativity, innovation, and with employees and third parties, world-class craftsmanship have and, more generally, characterize always been the core values of the Company's operations. The Salvatore Ferragamo S.p.A. right ethical and behavioral principles from the start, guiding the design are set out in Salvatore Ferraga- and production of its creations. mo's Code of Ethics (approved in 2008), which is currently undergo- ing a revision.

20 Sustainability Report 2015 21 THE APPROACH TO SUSTAINABILITY THE GREEN TEAM'S AREAS OF OPERATIONS COMMITMENT TO THE SUSTAINABILITY OF SALVATORE FERRAGAMO

“CREATIVITY, INNOVATION AND EXCELLENT CRAFTSMANSHIP HAVE BEEN THE CORE A socially responsible company is one that, VALUES OF THE SALVATORE FERRAGAMO BRAND SINCE IT BEGAN, AND ARE TANGIBLE when it comes to deﬁ ning its own strategy, designing its policies, and conducting ELEMENTS IN THE DESIGN AND PRODUCTION OF EACH AND EVERY ONE OF ITS CREA- day-to-day operations, considers the interest of TIONS. THE BRAND’S DEEP TIES TO THE LOCAL AREA, ITS CULTURE AND COMMUNITY all stakeholders as well as the economic, social HAVE INSTILLED IN SALVATORE FERRAGAMO AN EVER GREATER AWARENESS OF THE and environmental impact it may have. Being NEED FOR A SINCERE AND SIGNIFICANT COMMITMENT TO PROTECTING THE PLACES socially responsible means not only complying with all applicable legal requirements, but also WHERE IT OPERATES AND THE PEOPLE WHO WORK FOR IT, A COMMITMENT THAT GOES going above and beyond, investing in human HUMAN RESOURCE

LOGISTICS ENVIRONMENT OPERATIONS MOBILITY

BEYOND MERE COMPLIANCE WITH THE PROVISIONS OF NATIONAL AND INTERNATIONAL SYSTEM IT AND SAFETY PACKAGING COMMUNITYRAW & MATERIALSCHARITY capital, the environment, and the relations with STORE PLANNING PROCUREMENT

LAWS, STANDARDS AND REGULATIONS”. other stakeholders. COMMUNICATION AND DEVELOPMENT AND

Building on these solid foundations, Salvatore Ferragamo S.p.A. decided RESEARCH MATERIALS to embark on its journey towards corporate responsibility by adopting a strategy that puts this concept at the center of the decision-making progress, seeking to grow the business while considering the positive and negative impact of its operations on society and the environment.

To this end, Salvatore Ferragamo S.p.A. set for itself the following goals:

FOR EMPLOYEES FOR THE ENVIRONMENT FOR THE LOCAL CULTURE

Promoting their welfare, health, Reducing its environmental Supporting the artisan culture and and professional growth. impact. excellence.

In order to take a structured workplace and the internal and ARETÉ AWARD approach to managing sustaina- external impact of the Company's On its journey towards corporate social responsibility-related topics, in 2014 the operations, as well as facilitating bility, in 2014 the Company made a further step Company set up a cross-func- a direct relationship with the local in this direction by preparing its fi rst Sustainabil- tional working group called Green community in all its environmental ity Report. As this was the fi rst edition, the Com- Team, dedicated to designing and and human facets. Based on an pany decided to limit its distribution. promoting corporate responsibil- action plan, which it submits every Salvatore Ferragamo S.p.A.'s 2014 Sustainability ity initiatives. The team consists year to the Board of Directors, the Report won the Aretè Corporate Social Respon- of people from several corporate Green Team organizes all the cor- sibility Report award in the “large companies” departments, allowing to bring to- porate social responsibility activi- category. The contest saw the participation of gether cross-functional skills in or- ties carried out inside and outside 12 major domestic and international players der to promote all-around sustain- Salvatore Ferragamo. that have started on the path to sustainability ability. The Green Team reports by preparing the Corporate Social Responsibility directly to the Chairman Ferruccio Report. The award was presented by Biblioteca Ferragamo, and its main responsi- del Bilancio Sociale at the offi ce of the FAI (Fondo bility is improving the quality of the Ambiente Italiano) in Milan.

22 Sustainability Report 2015 23 STAKEHOLDERS AND MATERIALITY MATRIX

Sustainability is a core value and a priority for Salvatore Ferragamo. This is why the Company decided to translate When it comes to defi ning its own strategy, designing its policies, and The stakeholders are individuals or groups that its commitment in this area into corporate social responsibility objectives. These are set out in the Sustainability conducting day-to-day operations, a socially responsible company shall infl uence or are infl uenced by an organization Plan, prepared by the Green Team and approved by the Board of Directors, whose macro objectives concern: consider the interests of all stakeholders as well as the impact it may have and its operations. not only on the economy, but also on society and the environment.

SALVATORE FERRAGAMO'S STAKEHOLDER MAP

TION EMP STRATEGIES AND HUMAN RESOURCES ENVIRONMENTAL TRA LOY IS EE IN S M GOVERNANCE IMPACTS D A A ERS SSOCI D OM ATI I IC ST ON S L U S T B C A R D N I U N D B P E N U

G T SUPPLIERS AND PRODUCT RESEARCH AND S O O R Y s R E T D S I L N WORKSHOPS DEVELOPMENT S A O A

T R N H

E E O

R N

N R

L H

S A

COMMUNITY AND CHARITY COMMUNICATION

D C

N S

R A

S C

S T

E S

V C

N S

R E I

N V P

E E

Y R

O S

During 2015, in accordance with the established macro-objectives, the Company carried out a number of N M D E

H I important activities which are presented in this Sustainability Report, such as: E

• PROMOTING VOLUNTEERING OPPORTUNITIES AMONG EMPLOYEES; Salvatore Ferragamo has identi- The materiality analysis was car- their materiality to Salvatore Fer- fi ed and selected its stakeholders ried out based on the Guidelines ragamo as well as the stakehold- • EXPANDING THE FLEXIBLE BENEFIT SYSTEM TO EMPLOYEES AND THEIR FAMILIES; based on the awareness of its so- AA1000 Stakeholder Engagement ers. The process resulted in the cial role and deep connection with Standard for the phases concern- identifi cation of 22 material topics. • SUSTAINABLE MOBILITY INITIATIVES; the local community, which is nec- ing the identifi cation, mapping and essarily related to the conduction defi nition of stakeholders' expec- The outcome is refl ected in the • ADOPTING GREEN BUILDING STANDARDS; of its operations, for the purposes tations, as well as the processing materiality matrix, which, on the • COLLABORATING WITH CHARITIES AND HOSTING CHARITY EVENTS; of understanding their expecta- of the relevant results and their x-axis, represents the materiality tions and translating them into prioritization. The Company car- of the topics to the Company, and • PROMOTING THE ACTIVITIES OF THE SALVATORE FERRAGAMO MUSEM AND THE FERRAGAMO FOUNDATION; actionable objectives. ried out the materiality analysis on the y-axis, their materiality to The Company identifi ed the con- and identifi ed the material topics stakeholders. The picture emerg- • STUDYING THE PROJECT TO INTRODUCE POST-CONSUMER FSC CERTIFIED PAPER FOR CORPORATE PACKAGING; tents to report through a materi- in accordance with the Global Re- ing from the materiality analysis ality analysis conducted in 2014 porting Initiative (GRI-G4) Guide- served as another tool for de- • PREPARING THE 2014 SUSTAINABILITY REPORT; with the support of the Green lines. veloping and defi ning Salvatore Team. This allowed identifying Ferragamo's sustainability-related • COMMUNICATING CSR ACTIVITIES INSIDE THE COMPANY. the most signifi cant economic, en- After identifying the topics that priorities. vironmental, and social aspects, are material to the Company, which would substantively infl u- those were submitted to the Top ence the assessments and deci- Management and the members of sions of stakeholders. the Green Team, who assessed

24 Sustainability Report 2015 25 The students were asked to present the ideas and suggestions emerging from the discussion, and Salvatore BRAND IMAGE AND REPUTATION Ferragamo is now carefully considering them in terms of feasibility and value added, with the intention of identifying a project to focus on in 2016. HUMAN RIGHTS IN CUSTOMER THE SUPPLY CHAIN SATISFACTION

PRODUCT QUALITY CREATIVITY AND DESIGN EMPLOYEE HEALTH AND SAFETY

FINANCIAL MARKET ETHICS AND How can INTEGRITY How Very relevant relevant Very PERFORMANCE PRESENCE SUPPLY CHAIN sustainability can the TRACEABILITY PROCUREMENT RAW PRACTICES MATERIALS LOCAL be more fashion industry SUPPLIERS NON-DISCRIMINATION ATTRACTING AND integrated rethink its DEVELOPING TALENT

USE OF CHEMICAL in luxury process DIVERSITY AND EQUAL INVESTMENTS IN PRODUCTS Relevance for Relevance Stakeholders OPPORTUNITY FAVOUR OF THE LOCAL COMMUNITY companies in order to

Key: CO2 SUSTAINABILITY communication decrease EMISSIONS ENERGY GOVERNANCE Social Relevant Relevant CONSUMPTION Responsibility mix and the impact WASTE Environmental MANAGEMENT Responsibility branding on the Economic Responsibility and Governance strategies? environment?

Relevant Very relevant Relevance for Salvatore Ferragamo

Which are How can a the best

In order to make its sustainability strategy increasingly responsive to the needs of its stakeholders, in 2015 luxury company product Salvatore Ferragamo organized a stakeholder engagement event, which was coordinated by SDA Bocconi School strengthen strategies for a of Management. the bond luxury company in order to The students, who came from different countries, at fi rst attended a brief presentation on the concept of sustain- with its ability and how Salvatore Ferragamo perceives it and puts it into practice. Then, they actively participated in two compete in the activities, helping to defi ne the Company's sustainability strategy and providing advice on potential solutions to be community pursued. sustainable and territory? fashion field? At fi rst, after hearing about the materiality analysis carried out by Salvatore Ferragamo, the students were asked to answer a survey in order to identify the fi ve topics they considered to be the most material to the Company. They indicated the following: product quality; respecting human rights throughout the value chain; waste management; sustainability strategy; and creativity and design. Then, the students were divided into four working groups and openly discussed Salvatore Ferragamo's sustainability strategy, based on the topic for discussion assigned to them from the four listed below:

• INTEGRATING SUSTAINABILITY IN THE COMPANY'S COMMUNICATION STRATEGY;

• REDUCING THE ENVIRONMENTAL IMPACT RELATED TO THE COMPANY'S OPERATIONS;

• PRODUCT STRATEGIES CONCERNING SUSTAINABILITY;

• INITIATIVES TO STRENGTHEN THE RELATIONSHIP BETWEEN THE COMPANY AND THE LOCAL COMMUNITY.

26 Sustainability Report 2015 27 “The strength of a Brand is the result of its history, its symbols,

its products, and, most importantly, the people behind it.

They carry on the values of the Company

protecting its know-how while contributing

to developing and innovating it. ”

Deputy General Manager Head of Product Area, Human Resources & Organization

28 A SHARED HISTORY

A COMPANY OF PEOPLE

The history of Salvatore Fer- As at 31 December 2015, Salva- ragamo, like that of several other tore Ferragamo S.p.A. had 896 Italian businesses, is the history employees, up 1.8% from the pre- of the men and women who, with vious year. There were also other their choices and projects, have 60 individuals1 working at the Com- contributed to its growth: from the pany in various capacities. Founder to the members of the Most employees are between 30 Ferragamo family, and from the and 50 years old (67% of the total). artisans to the managers. Salvatore Ferragamo is made up of highly-skilled people that show their love and dedication to their work, continuing to contribute every day to the Brand's international success. It is above all thanks to the passion and commitment of all its people that Salvatore Ferragamo has become a leading global Brand.

SALVATORE FERRAGAMO'S PEOPLE 31 DECEMBER 2015

Employees Other collaborators BREAKDOWN BY EMPLOYEE CATEGORY AND AGE GROUP 31 DECEMBER 2015

Total 14% 67% 19%

33% Blue Collars 18% 62% 20% 43% White Collars 17% 69% 14% 57% 67% Managers 75% 25%

Executives 51% 49%

Men Women Men Women <30 30-50 >50

1 Includes 35 interns, 3 temporary agency workers, and 22 consultants.

30 Sustainability Report 2015 31 BREAKDOWN BY EMPLOYEE CATEGORY AND GENDER BREAKDOWN BY EMPLOYMENT CONTRACT AND GENDER (NO. OF PEOPLE) 31 DECEMBER 2015 31 DECEMBER 2015

INDUCTION PROGRAM FOR NEW HIRES Total 43% 57% FIXED TERM 34 23 In order to communicate the Brand's values to its employees right from the start and create a strong sense of loyalty to the Company, Salvatore Blue Collars 57% 43% Ferragamo has developed an Induction program for new hires. PERMANENT 347 492 The “Classic Induction” course, which consists in White Collars 36% 64% three meetings and is divided into three sessions throughout 2015, consists of the following units: Men Women - Brand presentation Managers 44% 56% - Presentation about life at the Company - Visit to the Salvatore Ferragamo Museum and Executives 62% 38% Archives - Visit to Manovia DIVERSITY AND EQUAL OPPORTUNITY - Visit to the Warehouse Salvatore Ferragamo manages The Company provides equal op- they accounted for over 57% of The “Customized Induction”, reserved for man- Men Women and develops its human capital by portunities to employees of both all employees, and 50% of senior agers and executives, is tailored according to the integrating and respecting diver- genders, promoting also initiatives staff (38% of executives and 56% proﬁ les of participant. sity. Employee relationships are to help them cope with work-life of managers). In addition, pursu- based on the protection of person- balance, such as introducing em- ant to the law, 30% of Board of al rights and liberties as well as the ployment contracts other than Directos members are women. During 2015, Salvatore Ferragamo S.p.A. recruited 162 new employees, while 146 individuals left the Company, fundamental principles preventing full-time ones. As at 31 December resulting in a 16.3% rate of new employee hires and an 18.1% rate of employee turnover. any discrimination based on age, 2015, among the employees on race, ethnicity, nationality, political permanent contracts, 73 had cho- views, trade union membership, sen to work part-time, including 6 religious beliefs, sexual orientation, men and 67 women. gender identity, physical and men- Women play a crucial role at every tal disabilities, and any other per- level of Salvatore Ferragamo's NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER BY GENDER AND AGE GROUP - 2015 sonal characteristics that are of organization, and this is reﬂ ected no consequence in the workplace. in the data for the year 2015:

No. of incoming <30 30-50 >50 Total Turnover employees Men 50 32 3 85 22.3% Women 45 25 7 77 15.0% Total 95 57 10 162 18.1%

No. of outgoing <30 30-50 >50 Total Turnover employees Men 39 25 6 70 18.4% Women 39 26 11 76 14.8% Total 78 51 17 146 16.3%

Salvatore Ferragamo S.p.A. considers offering a stable and long-lasting employment relationship as necessary to foster the Company's growth, as well as an important motivational factor. The Company's commitment to establishing an ongoing and long-term relationship with its people is reﬂ ected in the high proportion of employees on permanent contracts, representing nearly 94% of the total in 2015.

32 Sustainability Report 2015 33 BREAKDOWN BY EMPLOYMENT TYPE AND GENDER OF EMPLOYEES ON PROMOTING HUMAN CAPITAL PERMANENT CONTRACTS 31 DECEMBER 2015

PART TIME 6 67

FULL TIME 341 425

Men Women

As for remuneration policies, Salvatore Ferragamo S.p.A. has been implementing for many years now a system that distinguishes between different corporate categories/positions. Besides remuneration, it includes also incentive systems connected to both individual and corporate objectives, thus encouraging team spirit and a sense of belonging.

The remuneration policies seek to attract and retain talented people with the skills required to achieve the Company's goals, as well as motivating management to increasingly improve performance - all this while respecting Salvatore Ferragamo's culture and historic values. These policies are designed to reward people for their contribution based on principles of competitiveness, fairness, and merit. ATTRACTING TALENT

The Company places great impor- During 2015, the Company held LINKEDIN tance on its people, and therefore 13 Employer Branding sessions, Salvatore Ferragamo actively uses Linkedin to commits to fostering and promot- which involved several universi- recruit and engage with talent. In 2015, the FEMALE EMPLOYEES ing their professional development ties, job placement networks and Company was one of the “20 Most InDemand by offering equal opportunities to institutions. It met approximately 31 DECEMBER 2015 Employers”, a ranking of the fi rms that attract the everyone and encouraging per- 670 students, 21 of which subse- best talent available online. sonal initiative, in order to create quently started working with Sal- the best conditions for manage- vatore Ferragamo. rial or technical development - all In addition, for a few years now in accordance with its historic val- Salvatore Ferragamo has been ues. Salvatore Ferragamo consid- the offi cial partner of SDA Bocco- ers recruiting new hires key to the ni School of Management's Master 381 Company's growth and develop- in Fashion, Experience & Design ment.To attract the best talent, it Management (MAFED), an interna- 515 works with several Italian universi- tional program for those who want ties, hosting presentations, career a managerial career in the fashion, days and fi eld projects in order to luxury and design industries. Final- promote creative thinking and re- ly, in 2015 the Company entered ward talented youths by introduc- into a partnership agreement with ing them to the world of work. Bocconi University in order to search for new hires. Men Women

34 Sustainability Report 2015 35 DEVELOPMENT AND GROWTH POLICIES EXCELLENCE MODEL

Salvatore Ferragamo considers The new Ferragamo Excellence training a priority, as it is neces- model has identiﬁ ed 9 key compe- sary to ensure the professional tencies to focus on. growth of employees and the CORE COMPETENCIES development of the key compe- The initial Development Assess- tencies lying at the basis of the ment phase started in January Company's success. Professional 2016 and concerned two differ- skills and know-how represent the ent categories of employees, i.e. foundation as well as the only true High Potential employees and guarantee of the consistency and Senior Leaders. quality of the Company's results. Finally, to promote the growth of In 2015, Salvatore Ferragamo its people, in 2015 the Company DECISION MAKING COOPERATION CUSTOMER RESULT CREATIVITY AND INITIATIVE ORIENTATION ORIENTATION INNOVATION provided more than 7,500 hours developed a new Performance of training to employees, up 120% Appraisal System, designed to from 2014. It offered basic, spe- be not only a monetary incentive MANAGERIAL COMPETENCIES cialist, and managerial training. system but also an instrument to foster professional development. Just as important for Salvatore The performance appraisal is Ferragamo is realizing the full po- based on the role proﬁ le and tech- tential of its resources. To this end, nical skills. the Company has implemented a Talent Management System, so as to identify deserving employees and help them in their career INSPIRING AND EMPLOYEE STRATEGIC VISION MOTIVATING OTHERS DEVELOPMENT progression.

BREAKDOWN BY GENDER OF EXECUTIVES AND MANAGERS WHO RECEIVED PERFORMANCE APPRAISALS - 2015

TRAINING CATALOGUE

The Company regularly appraises 44% the performance of its employees 87 to foster and promote Salvatore Managers SPECIALIST 56% BASIC MANAGERIAL Ferragamo's growth and success. TRAINING TRAINING TRAINING 1 2 3 Speciﬁ cally, in 2015 all managers 2.1 ROLE- OR OCCUPATION-SPECIFIC 1.1 NEW INDUCTION 3.1 MANAGERIAL TRAINING and executives received perfor- TRAINING 1.2 IT TRAINING 3.2 DEVELOPMENT/COACHING 2.2 ADVANCED SOFT SKILLS mance appraisals. 1.3 LANGUAGE TRAINING PROGRAMS 1.4 BASIC SOFT SKILLS 62% 47 Executives 38%

Men Women

36 Sustainability Report 2015 37 COMPANY WELFARE COMPANY CAFETERIA

Flexible benefi t is a form of remuneration With a view to planning specifi c The data was collected anony- Starting from January 2014, the • Take away, the meal to go that em- BMS (Building Management System) is a allowing employees to replace or complement initiatives to improve employees’ mously and allowed to identify site in Osmannoro features a new ployees can choose from a specific computer-based management system installed part of their variable pay with benefi ts in the form well-being and their working envi- employees' expectations as well cafeteria that is at the forefront in menu; they can also reserve their in buildings allowing to control and monitor services, usually purchased from external provid- ronment, over the years Salvatore as the topics they are most inter- terms of technological innovation, take-away dinner by mail; mechanical and electrical equipment such as ers, to address personal and family needs (e.g. Ferragamo S.p.A. has been devel- ested in, so as to improve the rel- energy effi ciency, and environ- ventilation, lighting, power systems, and fi re and nurseries, scholarships for family members, and oping several corporate welfare evant informational workshops. mental sustainability. The Building • Vitality meal, designed to cater security systems. other services). initiatives. Management System (BMS) regu- to the different needs of the Com- Based on the results of the lates the microclimate and lighting pany's employees. It is based on a FLEXIBLE BENEFIT survey, the Company decided to based on the amount of natural specific menu listing the nutritional host workshops focusing on the light from outside. information for all food served. The Company, which has always following: To offer the utmost fl exibility and been committed to the welfare convenience to employees, the • Food education and quality of life of its employees, Company cafeteria serves the Nutrition and well-being: pursuing has introduced a Flexible Benefi t following types of meals: Plan seeking to support employ- a balanced diet. ees and their families with the so- • Quick Lunch, a cold meal for • First aid cial and cultural activities, the edu- those who cannot take a regu- How to deal with foreign bodies in cational development and school lar lunch break; employees can children and adults. expenses of their children. reserve it by mail and pick it up at The Plan is not limited to families, Managing domestic health emer- the bar during lunch time; but caters to the needs of every- gencies and how to behave. one, from junior to senior employees. • Health and Wellness Salvatore Ferragamo S.p.A.'s Introduction to self-defense. Flexible Benefi t Plan allows em- Relaxation techniques. ployees to select their benefi t from a vast basket of options, including reimbursements for expenses concerning education, sports, culture and recreation, and travels, up to a maximum annual amount. In 2015, the Company expanded this basket with a new category of benefi ts concerning occupational pension schemes.

SUBSIDIES

In addition to the Flexible Beneﬁ t Plan, Salvatore Ferragamo S.p.A. provides also a series of exclusive subsidies to its employees through agreements with companies operating in other sectors, such as health and wellness, banking, in- surance, tourism, and sports.

SAFETY & ENGINEERING COURSES

In March 2015, the Safety & En- gineering function, as part of the Company's Corporate Social Re- sponsibility initiatives, administered an online survey to employees to assess their interest in, and familiarity with, Safety & Environ- mental topics.

38 Sustainability Report 2015 39 SALVATORE FERRAGAMO NEWS LETTER SALVATORE FERRAGAMO NEWS LETTER

A DISTRIBUZIONE ESCLUSIVAMENTE A DISTRIBUZIONE ESCLUSIVAMENTE INTERNA PER I DIPENDENTI SALVATORE INTERNA PER I DIPENDENTI SALVATORE FERRAGAMO NEL MONDO. FERRAGAMO NEL MONDO. REDAZIONE A CURA DELLA DIREZIONE REDAZIONE A CURA DELLA DIREZIONE COMUNICAZIONE. COMUNICAZIONE.

OCCUPATIONAL HEALTH AND SAFETY FOR INTERNAL DISTRIBUTION ONLY FOR FOR INTERNAL DISTRIBUTION ONLY FOR SALVATORE FERRAGAMO EMPLOYEES SALVATORE FERRAGAMO EMPLOYEES WORLDWIDE. WORLDWIDE. EDITED BY THE COMMUNICATION inter EDITED BY THE COMMUNICATION inter DIRECTION. DIRECTION.

ANNO 16, N. 51, OCTOBER 2014 ANNO 16, N. 53, APRILE 2015 Salvatore Ferragamo S.p.A. pays special attention to the health and safe- In April 2015, Salvatore Ferragamo S.p.A. com- YEAR 16, N. 51, OCTOBER 2014 nos5511 YEAR 16, N. 53, APRIL 2015 nos5533 ty of employees through constantly improving and evolving management pleted the pre-audit for the OHSAS 18001 and monitoring systems, as well as by fostering a culture of health and certiﬁ cation, which certiﬁ es that the Company Lusso e artigianalità sperimentale dominano Cultura sartoriale, eleganza tattile, creatività e savoir-faire artiginanale safety, with the purpose of preventing and handling effectively the profes- has voluntarily implemented a system allow- le collezioni Primavera-Estate 2015 nelle collezioni Autunno Inverno 2015/16 di Salvatore Ferragamo sional risks related to the Company's operations. ing to properly monitor the Health and Safety of Luxury and experimental craftsmanship for the A heritage of tailoring, tactile elegance, creativity and craftsmanship The goal is promoting activities that increasingly take account of safety, Employees. Spring-Summer 2015 Collections in the Salvatore Ferragamo Fall Winter 2015/16 collections prevention, and welfare, both inside and outside the workplace. Per Salvatore Ferragamo Donna Primavera Per la Primavera Estate uomo 2015, che Presentata sulle passerelle di Milano a Contrapposizioni di texture e densità Estate 2015, presentata a Palazzo Mezzanotte ha sfi lato a Milano lo scorso 22 giugno, gennaio, la collezione Uomo A/I 2015/16 contraddistinguono anche la collezione Donna, sviluppata da Massimiliano Giornetti lo scorso 21 settembre, Massimiliano Giornetti Massimiliano Giornetti ha lavorato in esplora un’idea di eleganza tattile, di vestire come sollecitazione sensoriale. A tutti i capi intorno a un’idea di geometria rigorosa e ha portato in passerella una silhouette elegante leggerezza, sottraendo peso alla materia essenziali del guardaroba - abiti sartoriali, dinamismo. Presentato a Milano nel mese e precisa, dalla vita appena segnata, in cui e conferendo spessore al gioco ottico giacche doppiopetto, cappotti e duffel coat, di febbraio, il guardaroba per l’A/I 2015/16 linee esatte si sfaldano e si muovono intorno degli intrecci e dei grafi smi. La sapienza bluson - Massimiliano Giornetti dona una ha una silhouette decisa e verticale, dalla Against this backdrop, the Company has placed special emphasis on the al corpo, rivelandone la sensualità mentre del tailoring italiano che è nel DNA della silhouette soft, un taglio preciso e volumi vita alta, che racchiude forme nitide che lo sfi orano. I materiali sono protagonisti di maison si ibrida con lo sportswear, dando rilassati e accoglienti, su cui patchwork di si sfaldano e si muovono in un gioco di sovrapposizioni. Le materie, presenti ed elaborati processi di metamorfosi: manipolati, origine a una silhouette pura, allungata, dalla pelli e ricami di fi lo policromo disegnano invitanti al tatto, sottolineano la nitidezza ongoing and constant training of employees concerning health and safety: tagliati, sfrangiati in una ricerca di artigianalità classicità senza tempo. Overcoat, giacche inattese fi gure di animali. I cappotti sono indossati con pullover a trecce e grosse delle linee: crêpe di lana, cashmere double, sperimentale che è da sempre al centro dello doppiopetto, bluson dai colli a camicia, maglia stretch. Piccole cappe asimmetriche sciarpe. Toni di verde scuro, castagna, stile Ferragamo. I colori naturali sono rotti da pantaloni doppia pince e shorts sono ridotti e lunghi tabard dal taglio epurato esprimono rosso denso, nero e grigio mélange si una ricerca di semplifi cazione estrema, during 2015, it provided such training to about 360 employees. screziature improvvise e vivaci lampi metallici. all’essenza, realizzati in leggerissimi tessuti accendono di decori vivaci, ma la materia mentre righe percorrono le maglie dalla La verticalità della silhouette è equilibrata di lana. Anche le maglie hanno consistenza resta protagonista assoluta: pelli e tessuti consistenza compatta e diventano pieghe dagli accessori, frutto di altissimo savoir immateriale e le camicie sono realizzate in sono alterati da elaborati trattamenti manuali sulle gonne di tweed, alleggerite da nel rispetto di quella ricerca di artigianalità In 2015, there were 14 injuries (down 12.5% from 2014) concerning 6 men faire artigianale: zeppe decise, dettagli mischie senza peso di lana e seta. La palette impalpabili intarsi di chiffon. Ancora intarsi sperimentale che è un tratto fondante della di microcatene e profi lature di pitone dei colori è profonda, con toni di beige, di visone o texture di ricami si inseguono sui caratterizzano le calzature; fra le borse, doctor sabbia, off white, cuoio, peltro, ruggine e Maison. Stivali e stringate di coccodrillo cappotti; altri, colorati, segnano i lunghi abiti hanno cuciture evidenti e rinforzi di cuoio bag, clutch a intarsi geometrici con tracolle petrolio. I sandali e le stringate polimateriche di chiffon. La palette è ricca di nero, verde and 8 women, resulting in an injury rate of 1.9. naturale in punta e sul tallone, quasi che di catena e shopper di stuoia dai manici di hanno suole alte e frange spesse che intenso e marrone, con tocchi di giallo, una scarpa si fosse innestata dentro l’altra. avorio, rosso e fucsia. L’idea di accumulo vetro policromo. Ancora vetro di Murano per rimandano al mondo utility, mentre le grandi Le capienti borse da viaggio riprendono lo e la precisione del disegno caratterizzano bracciali, collane e sorprendenti clutch dalle travel bag di suede cerato si reinventano con stesso motivo, attualizzando l’originale borsa anche gli accessori, che risultano eccentrici superfi ci ipnotiche. angoli a contrasto. da lavoro di Salvatore Ferragamo. e rigorosi: i sandali dai tacchi scultura accostano coccodrillo, pitone e suede, mentre le shoulder bag dalle patte stondate uniscono visone e pelli opache o lucide.

Introduced in January during the Milan fashion Juxtapositions of textures and densities also week, the F/W 2015/16 Men’s collection defi ne the Women’s collection, developed explores the idea of tactile elegance to by Massimiliano Giornetti around the idea of For the Spring Summer 2015 Women’s For the Spring Summer 2015 Men’s stimulate the senses. Tailored suiting, double- dynamism and rigorous geometry. Presented collection, presented last 21st september at collection, presented in Milan on 22nd june, breasted jackets, blousons, outerwear, in Milan last February, the F/W 2015/16 wardrobe features defi ned, vertical silhouettes Palazzo Mezzanotte, Massimiliano Giornetti Massimiliano Giornetti focuses on lightness by even duffel coats - all the key pieces of the and high waistlines, with clean and affi rmative created an elegant and precise silhouette wardrobe designed by Massimiliano Giornetti removing weight from matter, while thickening shapes splintering and moving in a game of with an almost invisible waistline, made of feature neat tailoring, soft silhouettes and the optical effect of weaves and graphics. overlaps. Materials are particular and inviting, meticulous lines fl owing around the body relaxed and voluminous profi les, with leather Expert Italian tailoring, an intrinsic part of the chosen to emphasize the overall simplicity closely to reveal its sensuality. Materials patchworks and multi-coloured embroidery house’s DNA, is combined with sportswear of the lines: wool crêpe, double cashmere, undergo complex metamorphosis by playing creating unexpected animal motifs. Coats resulting in pure and elongated lines with are worn with cable-knit pullovers and big stretch jersey. Small, asymmetric cloaks and with textures: handled, cut, frayed, and timeless features. Overcoats, double-breasted clean-cut long tabards convey a quest for melted, they follow the Ferragamo tradition scarves. Shades of dark green, chestnut, jackets, shirt-necked blousons, trousers with extreme simplifi cation, while stripes run along of experimenting with craftsmanship and deep red, black and melange grey are lit by double pleats, and shorts are reduced to their bright, decorative details, but materials remain tight-knit jerseys or become pleats on tweed handmade uniqueness. Natural colours are barest essence and made of ultra-light wool the true protagonists: leathers and fabrics skirts, lightened by weightless chiffon intarsia. broken by sudden bright fl ecks and metal More mink intarsia or textured embroidery fabric. T-shirts have the impalpable texture are transformed by artisanal handwork and veins that underscore a metamorphic quality. is found on lean coats, while coloured typical of layering and even shirts are created experimental craft techniques characteristic The vertical profi le of the fi gure is enhanced marquetry marks chiffon gowns. The palette of the House. Crocodile lace-ups and boots by bold accessories, a tribute to Ferragamo’s with weightless blends of wool and silk. The is full of black, deep green, and brown, with are reinforced at the toes and heels with handcrafted elegance: wedge heels with colour palette is deep, with intense shades of touches of yellow, ivory, red, and fuchsia. The natural leather emphasized by visible stitching, luxurious details of tiny chains and exotic beige, sandy brown, off-white, hide, pewter, idea of multiple materials and precise design creating the illusion of blending footwear. skins, doctor bags, chain shoulder clutch rust and dark blue-green. Sandals and multi- stands out in the rigorous yet eccentric Generously-sized duffel bags carry the same handbags with geometrical inserts, and material lace-up shoes have high soles and accessories. The sandals with sculpted heels motif, reworking Salvatore Ferragamo’s original mat tote bags with polychrome glass thick fringes that recall the world of utility, combine crocodile, python, and suede, while bag for the modern gentleman. handles. More Murano glass is found in while the large waxed suede travel bags are shoulder bags with rounded fl aps pair mink bangles,necklaces and surprising clutches. reinvented with contrasting corners. with matte or shiny leather. INTERNAL COMMUNICATION

Salvatore Ferragamo consid- In April, the Salvatore Ferragamo In addition, the internal circulation

of Internos, the Company's maga- SALVATORE FERRAGAMO NEWS LETTER ers internal communication cru- Museum held a special presenta- SALVATORE FERRAGAMO NEWS LETTER

A DISTRIBUZIONE ESCLUSIVAMENTE A DISTRIBUZIONE ESCLUSIVAMENTE INTERNA PER I DIPENDENTI SALVATORE INTERNA PER I DIPENDENTI SALVATORE FERRAGAMO NEL MONDO. FERRAGAMO NEL MONDO. cial: it not only allows to enhance tion about the exhibition “A Pal- zine, allowed to keep all functions REDAZIONE A CURA DELLA DIREZIONE REDAZIONE A CURA DELLA DIREZIONE COMUNICAZIONE. COMUNICAZIONE.

FOR INTERNAL DISTRIBUTION ONLY FOR FOR INTERNAL DISTRIBUTION ONLY FOR up to date with the news concern- SALVATORE FERRAGAMO EMPLOYEES SALVATORE FERRAGAMO EMPLOYEES people's sense of loyalty to the ace and the City” at the Company WORLDWIDE. WORLDWIDE. EDITED BY THE COMMUNICATION inter EDITED BY THE COMMUNICATION inter DIRECTION. DIRECTION. Company, but also serves as a cafeteria, and then took employ- ing Salvatore Ferragamo, foster- ANNO 16, N. 54, LUGLIO 2015 ANNO 16, N. 55, NOVEMBRE 2015 YEAR 16, N. 54, JULY 2015 YEAR 16, N. 55, NOVEMBER 2015 critical tool for communicating ees and their families on a guided ing engagement and stimulating nos5544 nos5555 in a timely and ongoing manner tour of the Museum. In May 2015, the interest of employees also with all staff concerning its op- the Company hosted a conference through activities leading them to L’essenza della vera eleganza: la collezione Salvatore erations, shared values, projects, about CSR issues, during which it learn more about the Company. Sfi la a Milano la collezione uomo Primavera/Estate 2016 Ferragamo donna Primavera/Estate 2016 The essence of true elegance: the Salvatore Ferragamo strategic guidelines, corporate presented the 2014 Sustainability The Spring/Summer 2016 Men’s Collection shows in Milan Spring/Summer 2016 women’s collection policies, results achieved, and fu- Report. The addition of a section Con la collezione Salvatore Ferragamo Per la collezione donna P/E 2016, Primavera Estate 2016, Massimiliano presentata a Milano lo scorso settembre, Giornetti descrive uno stile in elegante Massimiliano Giornetti ricerca forme pure ture ambitions. Communication is dedicated to Corporate Social disequilibrio, fra rigore grafi co e sensualità per disegnare una fi gura nobile e solenne, della materia, geometrie astratte e texture caratterizzata da un senso di leggerezza e organiche. La silhouette evidenzia la inattesa austerità. La silhouette è vibrante considered key to a workplace Responsibility on the Company's vitalità delle superfi ci: i pantaloni dalla e aerea, con lunghe cappe, abiti strapless piega affi lata sono alti in vita; le giacche si dalle ampiezze fl uttuanti e piccole giacche accorciano; i macintosh hanno un profi lo dal profi lo arrotondato. Fiocchi percorrono nitido. Realizzati in lane secche, gli abiti il profi lo di ampie maniche e nastri si that is positive, proactive, and mo- intranet, and the creation of an hanno motivi pinstripe che giocano con i legano sulla schiena, mentre il classico colori delle impunture. Grandi righe sulle patchwork di Salvatore Ferragamo camicie di seersucker o cotone e ancora suggerisce lavorazioni a travette o grandi tivated to achieve shared goals. e-mail address speciﬁ cally for this righe per le maglie, che alternano pelli tessere modulari su gonne e top. Piume preziose e ricami di rafi a - mentre cactus e e piccole rouche si accumulano in linee scimmie fanno comparsa in forma di patch verticali sugli abiti e grandi volant sulle In addition, it brings employees purpose, allowed to communicate e ricami. La palette dei colori, amalgamati scollature sottolineano le spalle. Fra i dal nero, comprende marrone, cachi, ocra materiali, protagonista è il cotone insieme e beige, con tocchi di turchese, rosa e a sete impalpabili. La palette dei colori si verde cactus. Un’idea di collage tattile compone di nero e bianco, accesa da closer into line with the Compa- about the sustainability-related caratterizza gli accessori, fra cui spiccano tocchi di ruggine, azzurro, cinabro, rosa i sandali e le lace-up ginniche, che hanno e verde. Orecchini e collane hanno forme alte suole di gomma e mascherine con essenziali e sono decorati con grandi ny's strategy, fostering transpar- initiatives promoted by Salvatore nappe, le borse di stuoia e le tasche a vita perle, mentre gli accessori aggiungono di cuoio. Gli occhiali hanno aste e interni un tocco di frivolezza: sandali dalle punte in pattern contrastanti, mentre amuleti chiuse e tacchi bassi di metallo, piccole e ciondoli sagomati a forma di scimmia tracolle e secchielli si accendono di ent relationships based on mutual Ferragamo more effectively. offrono una nota vitale e contraddittoria. nuance di rosa, rosa bubblegum, azzurro e giallo vivo. For the Salvatore Ferragamo Spring For the women’s SS 2016 collection, trust. To encourage internal com- Summer 2016 collection, Massimiliano presented in Milan last september, Giornetti develops a concept of elegant Massimiliano Giornetti seeks pure forms to imbalance between sharp graphics and create a noble and solemn portrait, marked munication, in 2015 Salvatore luxurious materials, abstract geometrics by a feeling of lightness and unexpected and organic textures. The lines underscore austerity. The silhouette is vibrant and lofty, the dynamism of surfaces: high-waisted made of long cloaks and strapless dresses trousers with a razor-sharp crease, short with fl oating volumes and small rounded Ferragamo S.p.A held several jackets and mackintoshes with a precise jackets. Bowsss are scattered along profi le. Dry wool suits feature off-colour the profi le of ample sleeves and ribbons pinstripes enhanced by bold stitching. lace-up on the back, while the classic events concerning internal initia- Seersucker or cotton shirts have broad patchwork of Salvatore Ferragamo reveals stripes, and more stripes are found on bartack creations or large modular weaves sweaters alternating precious leather inserts on skirts and tops. Feathers and small and raffi a embroidery, while cactuses and ruffl es unite in vertical lines on garments tives that saw the participation of monkeys whimsically appear on patches and large frills follow the necklines, and embroidery. Black is the recurrent link highlighting the shoulders. Cotton stars that blends and mellows the colour palette, among materials, along with impalpable merging brown, khaki, ochre and beige, silk. The colour palette centres on black employees. heightened by splashes of turquoise, pink and white, accentuated with touches and cactus green. A tactile collage is the of rust, blue, vermillion, pink and green. distinctive feature of the accessories: Earrings and necklaces in essential shapes sandals and gym lace-ups with high are decorated with large pearls, while the rubber soles and fringes on toecaps; straw accessories add a tone of lightness, thanks bags and pouches with leather exteriors; to closed-toe sandals and low metal heels, eyewear with inner and outer temples small clean-designed shoulder bags and featuring contrasting patterns; monkey- bucket bags that are enlivened by nuances shaped charms and pendants to offset any of bubblegum pink, blue and bright yellow. sense of severity.

40 Sustainability Report 2015 41 “The Italian identity is not just associated

with the idea of beauty, creativity,

and the use of top-quality materials, it is,

above all, an expression of our way of life.

Our craftsmanship, the ability to work

“by hand”, is the pride of our culture.”

Design Team

42 RESPONSIBLE PASSION

MADE IN ITALY: A LONG-STANDING TRADITION RESEARCH AND DEVELOPMENT

Salvatore Ferragamo S.p.A. is Salvatore Ferragamo featured lentlessly push forward, the pains- proud of being an Italian Company, as a pioneer in the process that taking attention to quality, the on- carrying on the values that have eventually gave rise to the Made in going research into materials and made the success of the Made in Italy concept. For instance, in the technologies, and a consolidated Italy label and of its Founder. 1920s, he decided to bring back expertise based on strong Italian Over time, the Brand has evolved, production from the United States cultural roots represent the drive but the quality, craftsmanship, to Italy, and speciﬁ cally Florence: and dynamism that are not just a and creativity that characterize at the time, the world, and espe- thing of the past, but that today, Made in Italy products have re- cially English-speaking countries, more than ever before, distinguish mained intact, representing the saw the city as the symbol of a us from the rest and are crucial basis for Company and allowing historical continuity with Italy's tra- for tackling the future. it to gain international recognition. ditional artisan workshops as well Salvatore Ferragamo brings to- as artistic beauty and heritage. gether world-class craftsmanship and the robust creative tradition Salvatore Ferragamo S.p.A. has of Made in Italy manufacturers. an unwavering commitment to Over the years, these factors protecting this DNA, including have evolved in ways consistent amid the shift to industrial manu- with their root. facturing processes. It believes in sharing and developing a culture Made in Italy is a way of life and of craftsmanship, which refers not of being - it is the expression of only to manual skills - it is, above a taste that has developed over all, a mental process in which the decades. passion for work, the desire to re-

Salvatore Ferragamo's work has energy he put into his inventions. The selection of world-class always stood out for the original This world of ideas and inventions materials and attention to quality, design of its shoes and the relent- was unearthed in the early 2000s, creativity - in the sense of con- less search for new models, con- when over 350 patents and trade- stant innovation - and the relent- structions and materials, either marks were found at Italy's Cen- less pursuit of unusual and origi- placing him ahead of his time or tral Archive in Rome. nal constructions and materials allowing him to capture the zeit- breathe life into Salvatore Fer- geist of his era. Salvatore Ferrag- This repository is a technical- ragamo accessories and “Ready- amo has turned shoes into works scientifi c library of incalcula- to-Wear” collections. of art. It represents not only the ble value and importance. It not (fl awless) result of quality crafts- only allows to retrace the crea- manship, but also a space for tivity and technical expertise of searching for new forms, materi- Salvatore Ferragamo, but is also als, and colors. a source of ideas and inspiration for new creations and production Each product interprets in a processes. contemporary way the creative codes of the heritage: innovation The goal is declining in always new and experiments with materials ways the concept of contempo- and colors, advanced artisan tech- rary elegance as seen through a niques, and dialog with the world personal perspective and based of art, culture, and cinema. on unique and inimitable elements. The patents fi led by Salvatore Functionality always combines Ferragamo, from the shell-shaped with the search for evocative at- sole to the orthopedic wedge heel, mospheres and the unique value from the sculpted heel to the in- of a product that becomes a col- visible upper, from the cage heel lectible. to the metal sole, show the sheer amount of ideas and creative

44 Sustainability Report 2015 45 IDEAS, MODELS, AND INVENTIONS

1931 - SHANK 1952 - GLOVED ARCH

One of the most important pat- In 1952, Salvatore Ferragamo ents was the shank created in designed a high heel shoe, in 1931, a metal support for the which the arch of the foot was arch of the foot that was both lined with the same leather as the light and effective. upper, limiting the sole to the front and heel. The shoe was strong, yet ﬂ exible, like a glove, and was called the ‘gloved arch’.

1937 - WEDGE 1955 - 1956 METAL HEELS AND SOLES The cork wedge is one of Ferrag- amo’s most iconic inventions and, In popular culture, feminine se- over the years, has inspired many duction is often represented by new styles. It was created during high, preferably metallic, heels. the autarky in Italy out of neces- Ferragamo began designing steel sity, to replace the steel shank in- or brass heels in the Twenties, but serted in his shoes - an arch sup- they reached the height of fash- port system that Ferragamo had ion in the Fifties. patented in the Twenties.

1947 - INVISIBILE 1958 - SHELL-SHAPED SOLE

In 1947, Salvatore Ferragamo In 1958, Salvatore Ferragamo designed an upper made of one was awarded an important patent continuous thread, a transparent for the shell-shaped sole, which strand of nylon with a wedge or found its way into a series of suc- F-shaped heel. cessful models, such as slippers, With this shoe, Salvatore Fer- ankle boots, pump shoes, and ragamo won the Neiman Marcus even ballet shoes. Award, the Oscar of Fashion. Inspired by, and innovating on, the Native American opanke moccasins, in which the sole wraps around the heel and becomes the upper, the shell-shaped sole con- tains the foot and follows its line with its curved and embracing shape.

46 Sustainability Report 2015 47 RESPONSIBILITY AND ATTENTION TO CUSTOMERS

THE FERRAGAMO EXPERIENCE AT THE SERVICE OF THE CUSTOMER THE SALE CEREMONY: THE VALUE OF TRAINING

The Company has always put its The care the Company puts into In 2015, in order to further improve its custom- To offer a unique purchase experi- Retail training activities involved In 2015, the Company prepared a digital train- customers at the center. The re- the manufacturing process - which ers' purchase experience, Salvatore Ferragamo ence, Salvatore Ferragamo S.p.A. approximately 280 sales assis- ing program focusing on seasonal collections for lationship with them is based on is reﬂ ected in the procurement of developed new customization services for its ties places special emphasis on train- tants, for a total of more than PCs and tablets. The goal is providing its sales absolute respect, which translates top-quality materials, the two lev- as well as one of its most iconic moccasins. The ing the sales staff, raising aware- 3,600 hours of training. staff with a tool allowing to learn more about the into the attention to the 'value for els of control on raw materials, service is available in the main markets where ness about the Company's strong In addition, during 2015 the collection on sale in the stores. The training pro- money': the customer is offered and the checks performed dur- the Brand operates and complements the sev- and distinctive traditions and val- Corporate Retail Training func- gram was developed in 8 languages and distrib- a luxury product, or rather a con- ing production as well as at the eral existing tailoring programs for different prod- ues. The sales staff has access to tion updated the training material, uted to all sales assistants at every store, includ- cept, of substantial quality, which warehouse - seeks to create the uct categories. Customers can access it through an extensive training offering that adding videos, booklets, and training those not directly operated by the Company. is inherent in the product's design perfect product. There is also an- dedicated displays at its stores and, in the case aims to pass on the Brand's impor- ing kits. Finally, in order to bring and manufacturing. other equally important step that of the moccasins, even place a customized order tant and solid values. all Group companies into line with is crucial for the customer's satis- online. training programs, Salvatore Fer- Delighting the customer has faction: the purchase experience The training provided to the sales ragamo also supported and coop- always been Salvatore Ferraga- at the Brand's boutiques. staff in 2015 focused on strength- erated with the foreign associates mo's main goal since the very be- ening their sales skills, with a focus to train the local trainers. ginning - so much so, in fact, that Packaging is key, as it enhanc- on greeting customers and ﬁ nding it underpins each activity of the es the quality and exclusivity of out about their needs to propose Company. Salvatore Ferragamo products. products that match their tastes From conceiving the product to The distinctive red packaging is and preferences. The Company delivering it in the hands of the designed to be easily recognizable pays particular attention also to buyer, each process is designed and associated with the Brand developing its sales staff's ability to meet the customers' needs, and the emotions and sensa- to create a total look that, in keep- catering to and anticipating their tions it inspires, coming across as ing with the vision of the Founder desires and providing them with a elegant, beautiful, and iconic. Salvatore Ferragamo, can dress gratifying and truly pleasing expe- customers *from head to toe". rience.

SALES STAFF TRAINING TOPICS – 2015

SALES STRATEGY MATERIALS

PRESENTING FASHION SHOWS

THE ART OF SERVING TECHNICAL TRAINING THE CUSTOMER INTERCULTURAL OPERATING AND AWARENESS TRAINING FOR MANAGERIAL SKILLS TRAINERS

48 Sustainability Report 2015 49 THE DIGITAL EXPERIENCE FOR THE SALVATORE FERRAGAMO CUSTOMER

Integrating the digital channel in parallel stories of Ferragamo and share pictures and their emotions PARTNERSHIP WITH FILM FESTIVAL communication strategies makes Hollywood, exclusive events, mov- through a live feed on the plat- To celebrate the historic tie between Salva- the brand experience for Salva- ies, and partnerships. All products form icons.ferragamo.com. This tore Ferragamo and the world of cinema, the tore Ferragamo's customers com- are available for purchase on the “virtual” celebration of Salvatore Company collaborates with the Film Festivals plete, offering them an effective Brand's e-commerce website. Ferragamo's history caused the held every year in Florence, between November and hands-on opportunity to learn Brand's Instagram followers to in- and December, such as France Odeon – the more about the Brand. Social me- Finally, the digital campaign “100 crease by 2.5%. French Film Festival, Festival dei Popoli – the In- dia allow engaging with custom- Years 100 Days” culminated in ternational Documentary Film Festival, the Indian ers, providing them with a com- the interactive live event “Gancio Film Festival; and the Korean Film Festival. This prehensive Salvatore Ferragamo Studios” in New York, focusing on partnership consists in tickets providing entrance brand experience. The Company's Ferragamo's relationship with cin- fi lm reductions for both the fi lm festivals and the strategy is connecting the online ema. This link stems from the suc- Salvatore Ferragamo Museum, as well as the and offl ine worlds to keep cus- cess the Founder achieved in the organization of special tours of the Museum for tomers engaged with Ferragamo United States since the 1920s, guests, actors and directors, honoring Salvatore and strengthen their loyalty to the when he moved to Los Angeles Ferragamo's long-standing relationship with the Brand. and started producing shoes for movie industry. the movie industry. Salvatore Fer- To commemorate the 100th anni- ragamo, who was known as the versary of Salvatore Ferragamo's “shoemaker for the stars”, de- arrival in the United States, the signed models for celebrities such Company reopened the Rodeo as Mary Pickford, Rodolfo Valen- Drive Store in Beverly Hills, Cali- tino, John Barrymore jr, Douglas fornia. It also made available new Fairbanks, and Gloria Swanson. contents on the platform icons. Participants at the “Gancio Stu- ferragamo.com, presenting the dios” event had the opportunity to

SALVATORE FERRAGAMO ON SOCIAL MEDIA Growth in followers (January-December 2015)

Instagram +188%

Facebook +2%

Youtube views +1,200%

WeChat (Cina) +314%

Weibo (Cina) +6%

In October 2009, the Ferragamo Group launched its online store. The web- In order to bolster its online retail platform, in site, which has undergone extensive changes over the years, provides October 2015 the Company launched the Click an innovative user experience through simple and intuitive navigation, al- & Collect service for some European stores, lowing visitors to appreciate the craftsmanship and world-class quality of allowing customers to buy the Brand's products Ferragamo products. By exploring the various sections, customers can on the website through the e-commerce channel learn more about the Brand's new releases and iconic products, but also and then pick them up at the nearest store. its values and history. The Company's effort to build its web presence is reﬂ ected also in the site dedicated to the Salvatore Ferragamo Museum, which was created to promote the Company's historical and cultural heritage also on the Internet.

50 Sustainability Report 2015 51 TECHNOLOGY AND TRACEABILITY TO PROTECT AUTHENTICITY BRAND PROTECTION AND ANTI-COUNTERFEITING

For several years now, counter- focusing especially on China and Salvatore Ferragamo will continue feiting has been plaguing the the online channel, achieving sig- combating counterfeiting in 2016 world's leading luxury brands. nifi cant results. to protect both its intellectual Salvatore Ferragamo S.p.A. has property rights and consumers by been fi ercely combating it across The Company further increased lodging new civil lawsuits, tighten- the globe, and with increasing suc- the number of e-commerce plat- ing online and offl ine checks, moni- cess, also thanks to national and forms it monitors and, as for the toring social networks, and en- international laws that are gradual- delicate situation in China, contin- hancing cooperation with customs ly becoming more sensitive to the ued closely watching offl ine op- authorities. seriousness of this threat and are erations, especially those concern- changing to adapt with the times, ing trade fairs and resellers. It was TAG RFID HF EMPLOYEES CUSTOMER activating instruments to defend with great satisfaction that Salva- the rights of the victims of pirates tore Ferragamo received the cov- and copycats. Specifi cally, in 2015 eted “well-known” trademark sta- Salvatore Ferragamo carried on tus in China, an enforcement tool The “Authenticity Tag” system Industry insiders can also access DIGITAL INNOVATION AWARD its anti-counterfeiting efforts by allowing for time and cost savings. protects the consumer when he an application that reads some of At the second edition of Toscana Technologica, or she purchases a genuine and the data stored in the Tag, such as hosted by the Regional Government of Tuscany Made in Italy Salvatore Ferraga- the serial number, the manufactur- in partnership with SMAU, Salvatore Ferragamo mo product. It prevents and curbs er number, and the collection the S.p.A. received Smau Firenze 2015's Digital In- counterfeiting, as each product product is part of. novation Award in the Open Innovation category. has a unique identifi er allowing to The Company won the award by presenting the trace its origin. The scope of the project was ex- RFID project. panded during 2015, and now the In 2011, this commitment led to Tag is embedded into all men's SALVATORE FERRAGAMO ANTI-COUNTERFEITING EFFORTS BY NUMBERS - 2015 an innovative traceability project, and ladies' footwear, the shoes consisting in the implementation of the Creations line, belts, men's and adoption of an NFC (Near and ladies' SLG (Small Leather Field Communication) solution, to Goods), suitcases, and handbags COUNTERFEIT PRODUCT LISTINGS ILLICIT DOMAIN NAMES uniquely identify Salvatore Fer- - with the exception of only a few IDENTIFIED, BLOCKED AND REMOVED AND WEBSITES TRACKED ragamo products. models. A certifi cate included with ≈91,000/ ≈140/ the product signals the presence FROM ONLINE AUCTION SITES DOWN AND CLOSED NFC is a radio-frequency technol- of an NFC Tag. The Tag does not ogy based on a chip, which stores allow to trace the customer, but the data, and an antenna that only the manufacturer, nor to col- COUNTERFEIT PRODUCTS COUNTERFEIT sends signals using radio waves. lect personal data. Finally, it poses FROM CHINA SEIZED BY PRODUCTS SEIZED The combination of chip and anno harm to human health. ≈12,400/ ≈34,000/ CHINESE CUSTOMS OFFICIALS BY CUSTOMS tenna is the so-called Tag. A device known as reader is able to OFFICIALS decode the radio signals emitted by the RFID (Radio Frequency Identifi cation) Tag. The NFC Tag is embedded into the product at the end of the manufacturing process and activated following a quality control check. It cannot be counterfeited, as it is based on a unique identifi er certifi ed and assigned by a manufacturer. It has no expiry date and allows to en- crypt or protect the data on it with a password as well as read it from a distance of only a few centim- eters using modern smartphones.

52 Sustainability Report 2015 53 “Our amazing Company archive, our invaluable heritage,

the city of Florence, the constant traveling, and the world of art

serve as inspiration for our creative process.”

Head of Footwear and Leather Goods Division

54 SUPPLIERS AND CONTRACT MANUFACTURERS: SHARED VALUES

SUPPLY CHAIN SUSTAINABILITY

Salvatore Ferragamo products are fi nished goods must meet to pro- VETTING OF SUPPLIERS AND CONTRACT closely associated with the Made tect the health of workers and MANUFACTURERS OF RAW MATERIALS AND in Italy label and the concepts of consumers as well as reduce the FINISHED PRODUCT quality, style and elegance, which environmental impact from man- To provide its customers with the highest stand- have always characterized this ufacturing and throughout the ards of quality as part of responsible business Brand. Consistently with these product's life cycle. practices, Salvatore Ferragamo S.p.A. vets sup- values, the Company shows re- pliers and contract manufacturers to assess sponsibility towards the local com- Therefore, manufacturers must whether the potential new partners meet the munity by constantly looking for produce and sell products that technical, quality, operating and fi nancial re- products and services from local comply with increasingly detailed quirements as well as have all required docu- suppliers, thus contributing also to and strict chemical safety regula- ments and certifi cations to start working with the Italy's economic growth. tions across the world. The Euro- Company. pean chemical safety framework Salvatore Ferragamo S.p.A.'s or- is based on Regulation (EU) No. The technical and quality assessment involves ganizational model addresses the 1907/2006 (REACH Regulation), testing raw materials and semi-fi nished and need of monitoring the production which bans the use of hazardous fi nished products, acquiring all documentation chain in order to ensure the quality substances in manufacturing pro- concerning the supplier's manufacturing facili- of the product as well as of mak- cesses, although it does not set ties, and visiting said facilities, if required. The ing manufacturing and distribution specifi c limits for their residues in operating and fi nancial assessment consists in processes effi cient and fl exible. the fi nal products. an analysis of the information concerning the fi nancial position and performance of potential Salvatore Ferragamo S.p.A. con- Besides the materials, the atten- suppliers and contract manufacturers. Finally, ducts environmental and toxicity tion and world-class craftsman- the new potential partners must fi ll out specifi c tests on several components and ship put into the manufacturing forms for the purposes of the Register of Suppli- fi nished products such as acces- processes are key. Salvatore Fer- ers and Contract Manufacturers of Raw Materials sories, footwear structures, leath- ragamo relies on an extensive net- or Finished Product, accept the Code of Eth- er, textiles, leather goods, ready work of contract manufacturers, ics, consent to the processing of personal data, to wear, PVC shoes, and rubber all of which are rigorously Italian, submit a certifi cation of compliance with social soles. In addition, it relies exclu- thoroughly selected and vetted, security, welfare, and occupational safety regula- sively on certifi ed materials sup- and often develop an ongoing tions, a self-certifi cation concerning occupational pliers. partnership with the Company. health and safety, the acceptance of the policy Salvatore Ferragamo still keeps In further evidence that Salvatore allowing for just one level of subcontracting, the the most critical stages of the sup- Ferragamo S.p.A. is especially acceptance of the trademark protection agree- ply chain in-house. sensitive to the issue of chemi- ment, and the REACH self-certifi cation. cals in its products, the Compa- This strong integration between ny is preparing an internal RSL Salvatore Ferragamo S.p.A. and (Restricted Substance List). the network of suppliers and contract manufacturers has allowed to thoroughly monitor the critical The REACH (Registration, Evaluation, Authoriza- stages of the supply chain dur- tion of Chemicals) Regulation - also known as ing the production process. As for Regulation (EU) no. 1907/2006 - requires to production, the Company directly register all chemicals manufactured or imported manages the product develop- into the European Union in excess of one ton ment and industrialization stages per year. After their registration, chemicals un- as well as performs quality and dergo an evaluation, authorization, or restriction safety controls, both during and process. The European Commission estimates at the end of the manufacturing that this regulation applies to nearly 30,000 process, on 100% of the fi nished chemicals on the market. products. The RSL (Restricted Substance List) is a The last few years have seen a document in which Companies may voluntarily surge in attention to the chemi- disclose the chemicals they commit to gradu- cal safety of fashion products, i.e. ally eliminate from the supply chain and their the requirements that raw mate- products. rials, production processes, and

56 Sustainability Report 2015 57 SUSTAINABLE PROCUREMENT OF RAW MATERIALS

SALVATORE FERRAGAMO AND QUALITY The procurement of the raw ma- technical expertise, Salvatore Fer- CONTROL terials that Salvatore Ferragamo ragamo S.p.A. works with long- The Company performs quality control checks S.p.A. uses for its main product standing businesses with which it on almost all materials, and especially leather. categories (leather goods, acces- has established an ongoing rela- As for silk, the printers check its quality them- sories and apparel) is one of the tionship, often dating back to the selves. If no pre-production testing is performed, most crucial stages in the manu- 1970s or 1980s. the quality control check is conducted during the facturing cycle: the quality of the processing phase, delegating it to contract manu- Brand's products depends on it. In addition, considering the geo- facturers and relying on inspectors of the ﬁ nished Therefore, the Company thor- graphical distribution by com- product. oughly selects the suppliers of pany name of only the suppliers raw materials and components in involved in production operations, accordance with local laws con- Italian entities account for 99,6% cerning the individual materials of supplier revenue. purchased for manufacturing purposes. In addition, it entrusts production operations exclusively to suppliers that have a high standing. Besides relying on a procurement structure with extensive

YEARS OF PARTNERSHIP CONTINUITY WITH SUPPLIERS1 BY SECTOR - 2015

FOOTWEAR 9% 57% 21% 13%

ACCESSORIES 100%

APPAREL 13% 62% 10% 15%

HANDBAGS 13% 46% 25% 16% AND SUITCASES

Non-consecutive 1-3 years 4-10 years ≥11 years

RAW MATERIALS SUPPLIERS2 BY NUMBERS (% OF SUPPLIER REVENUE) - 2015

OF LEATHER HIDES OF TEXTILES PURCHASED 99.7% PURCHASED FROM ITALIAN 98.9% FROM ITALIAN SUPPLIERS TANNERIES

OF ACCESSORIES OF OTHER RAW 100% PURCHASED FROM ITALIAN 100% MATERIALS PURCHASED SUPPLIERS FROM ITALIAN SUPPLIERS

1If a supplier is also a contract manufacturer, it is accounted for only in the "contract manufacturer" category. 2If a supplier operates in multiple sectors, only the one where it generated the most revenue was considered.

58 Sustainability Report 2015 59 LEATHER PROCUREMENT ACCESSORIES PROCUREMENT APPAREL PROCUREMENT

As for the Leather Product divi- The Accessories and Apparel The Apparel division's procure- sion (men's and ladies' footwear division (foulards, men's and ment process is often based on and leather goods), Salvatore ladies' scarves, ties, gifts for men ongoing relationships with leading Ferragamo S.p.A. relies on three and ladies, men's and ladies' cos- Italian textile companies. macro supply chains: leather/tex- tume jewellery, men's and ladies' Salvatore Ferragamo selects sup- tile raw materials, metal accesso- hats and gloves) relies largely pliers based on an analysis of ries, and complementary materials on two macro supply chains: the factors such as whether they for footwear (stretchers, heels, Como district, for all silk prod- meet certain technical parameters, insoles and soles). ucts - both raw materials (silk for deliver on time, and guarantee ties) and fi nished products (fou- acceptable levels of quality and The main suppliers are long-stand- lards, scarves, shawls, etc.) - and reliability. The Company considers ing businesses that are leaders in the Florence district, for all met- the selection of suppliers crucial. their value chain and with which al products - including both raw Thus, it has entered into partner- Salvatore Ferragamo S.p.A. has materials and fi nished products ships with fi rms from the Biella often been working for several (costume jewellery and gifts). and Como districts that are recog- years: specifi cally, the Company nized as leaders by the industry's purchases most raw materials These businesses are Italian lead- most important brands. from the best tanneries in the ers in the global luxury industry. global luxury industry. Aided by Working together with the Compa- Salvatore Ferragamo's technical ny's designers, they play a crucial staff, these fi rms develop innova- role in the conception and creative products for the new collection of the product, as they are tions. responsible for prototyping and As for metal accessories, on av- making samples. erage the structure is more diverse, as the Company cooper- The fi rms in the Silk district are ates with both medium/large-sized mostly large in size and ensure manufacturers as well as smaller both constant technical innovation suppliers to produce accessories and world-class craftsmanship, made entirely by hand. Finally, making their products unique and the supply chain for complemen- of extremely high quality. tary materials consists of leading As for the companies in the suppliers of stretchers and, in the Costume Jewellery and Gifts sec- case of heels, insoles and soles, tor, for both metal fi nished prod- largely medium and small-sized ucts and accessories, Salvatore entities. These businesses cre- Ferragamo S.p.A. works with en- ate exceptional products, working tities of varying sizes, including closely with Ferragamo shoe fac- very small fi rms and artisan work- tories and preserving the Brand's shops. distinctive stylistic creativity. The process of selecting and pur- chasing leather hides involves having technical experts visit the tanneries to assess the quality of the product and certify it with a quality stamp on each piece of leather approved. As for metal accessories, which are received already packaged, the Company inspects each one of them before using them in production.

60 Sustainability Report 2015 61 GEOGRAPHICAL BREAKDOWN OF ITALIAN CONTRACT MANIFACTURERS4 BY SECTOR RETENTION OF CONTRACT MANUFACTURERS AND RESPONSIBLE PRODUCTION (% OF CONTRACT MANUFACTURER REVENUE) - 2015

Salvatore Ferragamo works in stock, and, most importantly, ef- The contract manufacturers are highly special- exclusively with highly specialized fectively plan the production stag- ized artisans and manufacturers working at ex- FOOTWEAR 37% 47% 3% 1% 12% manufacturers that meet the most es as well as for the procurement ternal workshops. Salvatore Ferragamo entrusts demanding quality standards. of raw materials and components. them with the entire production process, except ACCESSORIES 30% 1% 6% 52% 11% Virtually all of them are located The Company entrusts also the for the most critical stages in the supply chain. in Italy. The selection and reten- production of silk products (ties tion of contract manufacturers is and foulards) and other acces- APPAREL 39% 2% 25% 15% 6% 3% 10% key to the Company, mainly for sories to a network of select ex- HANDBAGS the purposes of maintaining the ternal workshops. Ties are made 93% 3% 2% 2% AND SUITCASES world-class quality standards of under “tolling agreements”: the its products as well as protecting Company purchases the raw ma- SMALL LEATHER GOODS 95% 5% Ferragamo's extensive know-how terials and sends them to the con- developed over the years. tract manufacturers, which produce the ties by following specifi c JEWELLERY 49% 51% The retention of external work- instructions. All other accessories shops has been traditionally guar- are made on a “fi nished prod- THE CONTROL OVER EXTERNAL WORK- Tuscany Campania Emilia Romagna Veneto Marche Lombardy Piedmont Other regions anteed by ongoing partnerships, uct” basis: Salvatore Ferragamo SHOPS the frequent exchange of informa- S.p.A. directly creates the prod- tion and skills between Salvatore uct, oversees the prototyping at By entering into trademark protection agree- Ferragamo and the contract man- the contract manufacturer's facil- ments, Salvatore Ferragamo prevents external 4If a contract manufacturer operates in multiple sectors, only the one where it generated the most revenue was considered. ufacturers, and the highly special- ity, and defi nes the specifi cations workshops from selling the Brand's products to ized products and production pro- and quality standards for both the third parties. In addition, contract manufactur- To be socially responsible towards Based on the audit fi ndings, the Ferragamo monitors the contract cesses involved. materials and the product, but it ers are required to disclose whether they use the production chain, since 2014 Company, if necessary, prepares manufacturer's progress on the does not handle the procurement any subcontractors, to which they may outsource Salvatore Ferragamo S.p.A. has an improvement plan with the con- improvement plan, constantly pro- This integration is supported by of raw materials or the processing only one manufacturing process. Furthermore, been asking an independent spe- tract manufacturers to prevent, viding support through follow-ups an IT system that connects the stages. In this case, the contract Salvatore Ferragamo has technical and produc- cialist to implement a multi-year mitigate, or remedy non-compli- to achieve the goals set in the vast majority of workshops with manufacturer provides Salvatore tion staff constantly monitoring both external audit plan in order to ensure con- ance. post-audit phase. the Company. This allows both Ferragamo S.p.A. with a fi nished workshops and subcontractors, and performs tract manufacturers and sub- parties to track the progress of product, which then undergoes audits concerning intellectual property rights contractors comply with applica- The plan requires implementing production and logistic processes, quality control checks at the throughout the production chain, either at ran- ble laws concerning occupational specifi c actions in a given time- check whether raw materials are Company. dom or based on specifi c complaints. health, safety, and hygiene. The frame agreed to by the parties, audit process involves administer- as well as clearly identifying the ing a pre-assessment survey to person responsible for this pro- the contract manufacturers and cess at the supplier. Through an an on-site audit, interviewing both independent specialist, Salvatore YEARS OF PARTNERSHIP CONTINUITY WITH CONTRACT MANUFACTURERS3 BY SECTOR - 2015 employees and management.

FOOTWEAR 6% 22% 39% 33%

ACCESSORIES 20% 17% 33% 30%

APPAREL 6% 21% 49% 24%

HANDBAGS 14% 5% 29% 52% AND SUITCASES

SMALL LEATHER GOODS 12% 19% 38% 31%

JEWELLERY 25% 75%

Non-consecutive 1-3 years 4-10 years ≥11 years

3If a supplier is also a contract manufacturer, it is accounted for only in the "contract manufacturer" category.

62 Sustainability Report 2015 63 MANOVIA MATERIALS RESEARCH AND DEVELOPMENT

CLIMATE AND SUSTAINABILITY FOUNDA- The attention to, and love for, After the death of the Founder, TION SCOLARSHIP materials have been a hallmark the Company carried on his tradi- In 2015, Salvatore Ferragamo entered into an of Salvatore Ferragamo's work tion of experimenting with sustain- agreement with the Climate and Sustainability since the very beginning. Many of able and alternative materials. In Foundation for a 12-month scholarship for re- his most famous creations are the order to stay abreast of the latest search into natural fi bers, new materials, and result of economic and manufac- innovations and trends in materi- the preservation of artisan traditions typical of the turing shifts occurred in Italy dur- als and their application, it cre- Italian culture, promoting an environmentally and ing the 20th century. In the 1930s, ated a dedicated function for the socially sustainable supply chain for the fashion as the autarky prevented steel purposes of systematically updat- industry. Under the agreement, the Ferragamo imports from entering the coun- ing the materials it uses - with a Foundation will offer its know-how in traditional try, Salvatore Ferragamo had the special emphasis on environmen- manufacturing processes and the materials brilliant idea of using cork for the tally sustainable ones - working used by Salvatore Ferragamo and the Company, soles of his shoes: he thus cre- together with suppliers and con- as well as promote tours of, and research into, ated the wedge, one of the most tract manufacturers, and creating Salvatore Ferragamo S.p.A.'s extensive archive to popular and long-lasting inventions special materials. of the fashion world. This is also guide and help the recipient in his or her work. The Company has always been the reason why Salvatore Ferrag- engaging with bodies and institu- MILAN EXPO amo has always carefully selected tions investing in innovative re- As part of its commitment to researching innova- and continued experimenting with search and experiments, acting as tive and environmentally sustainable materials, not only traditional premium leath- a partner and supporter by pro- in 2015 Salvatore Ferragamo celebrated EXPO er hides, but also humbler and viding guidance and advice to ad- with a special and eco-friendly version of two of more unusual materials. The clas- dress specifi c needs throughout its most iconic products: the Sofi a handbag and sic Tavarnelle needle lace made the various design and production the Rainbow wedge. near Florence, paper, bark, raffi a, stages. In 2015, the Company In addition, between May and August 2015, dur- hemp, fi sh skin, and cellophane actively participated in several ing the Milan Expo, Salvatore Ferragamo and 10 replaced the conventional kidskin conferences, including the round Corso Como presented a selection of Ferraga- and calfskin or other exotic kinds table on environmental materials mo's Creations models together with the relevant of leather during World War I and hosted by Federmoda (the Italian patents at the Carla Sozzani Gallery. II. In the post-war period, Salva- fashion industry association), the The opening of the exhibition was celebrated with tore Ferragamo used recent in- Climate and Sustainability Foun- the event “Fashion and music: Authentic Italian novations such as nylon, synthetic dation Conference, the presenta- handcraftsmanship”, held at 10 Corso Como. raffi a, rhinestone embroidery, and tion of environmentally friendly Concerning exclusively footwear In addition, the Manovia division ELEGANCE OF A LIFETIME - PITTI UOMO glass beads to create unique and materials at an event of the So- inimitable uppers. production operations, the Com- manufactures limited edition mod- During the January 2015 edition of Pitti Im- roptimist organization, and ITMA pany relies on a small prototyping els that are part of the Ferragamo's magine Uomo, the Company held the event (International Textile Machinery and manufacturing unit comprising Creations collection. Launched in “Elegance of a lifetime: the story of a bygone Exhibition). materials cutters, stitchers and fi t- 2006, the Ferragamo's Creations gentleman” at Palazzo Spini Feroni, launching ters: the “Manovia” division. Estab- line consists of new editions of the new Ferragamo's Creations Uomo collection lished in 1967, Manovia mainly cre- original shoes included in the his- and celebrating the men's shoes made by the ates samples and prototypes as torical archive and in the Ferraga- Founder for his personal use and a select group well as fi ne-tunes the structures mo Museum. The models are man- of customers and friends. (stretchers, heels, insoles, and ufactured in limited quantities and The event featured the actor Giancarlo Giannini, soles) for the new models. It con- numbered. They are made entirely the singer Peppe Servillo, and the Solis String sists of approximately 20 people, by hand using the techniques, Quartet. mostly young, who produce 30 to materials, and fi nishing details of 40 pairs of shoes a day. This little the Maison's Founder. All Ferraga- wonder of craftsmanship is key for mo's Creations shoes feature the preserving the Company's know- Brand's historic logo, designed by how - the legacy of the Brand's Lucio Venna in 1930, and provide Founder, which today is upheld the opportunity to explore Salva- by skilled artisans. These are the tore Ferragamo's creative tradi- only ones that can hand down the tion, celebrating his pioneering secrets of producing Salvatore vision and know-how. Ferragamo footwear from one generation to another.

64 Sustainability Report 2015 65 “Nature is life and joy: there is no life without nature.

We shall respect and protect it through

both extraordinary and everyday acts.”

Deputy General Manager Head of Markets and Supply Chain

66 OPERATING EFFICIENTLY

Salvatore Ferragamo has always put environmental sustainability at the heart of its development policies. To protect the environment, the Company aims to positively contribute to safeguarding it through strategies and initiatives aimed at reducing the environmental impact of its operations. Therefore, Salvatore Ferragamo is constantly looking for the best possible solutions to make a responsible use of resources, reduce energy consumption, and better handle the emissions released into the atmosphere¹.

ENERGY CONSUMPTION

Salvatore Ferragamo's environ- Specifi cally, in 2015 the Company mental responsibility strategy fo- consumed 6,633 GJ2 of natural cuses on reducing greenhouse gas, down 14% from 2014 thanks gas emissions released into the at- to the optimization of the internal mosphere by constantly increas- gas grid and the decline in energy ing energy effi ciency and the use consumption attributable to the of renewable energy sources. The new Q building at Osmannoro. Company's commitment in this area translates into identifying and implementing actions to curb energy consumption as well as pursuing the highest environmental effi ciency standards.

NATURAL GAS CONSUMPTION (GJ) As for power consumption, in 2015 the Company consumed 19,580 GJ3, rising slightly from 2014 (+17%) because of the construction and commissioning of the new Q building.

POWER CONSUMPTION (GJ) 2015 6,633

2015 19,580

2014 7,729

2014 16,733

1 The data concerning natural gas, power and water consumption as well as waste generation refers to the site in Osmannoro, the ofﬁ ce in Palazzo Spini Feroni, and the ofﬁ ces in via Borgospesso and Corso Matteotti in Milan, unless otherwise noted. The data concerning the retail area is not included in the data presented in the following paragraphs 2 3 For natual gas 1 m = 0.03901 GJ. 3 For power 1kWh (Kilowatt-hour) = 0.0036 GJ.

68 Sustainability Report 2015 69 WATER CONSUMPTION

Salvatore Ferragamo S.p.A. promotes a sensible and responsible use of the water for production facilities and hygiene-sanitary purposes. In 2015, the Company consumed 21,561m3 4 of water. The increase compared to 2014 was mainly attributable to the construction of the new Q building at Osmannoro.

WATER CONSUMPTION (m3)

2015 21,561

2014 18,937

WASTE MANAGEMENT

Salvatore Ferragamo's commit- cle materials as well as minimize In addition, since 2014 the Compa- In order to monitor energy effi - energy effi ciency, such as replac- During 2015, Salvatore Ferragamo S.p.A. ment to protecting the environ- waste. In 2015, the Company ny has been providing containers ciency, in 2015 the Company de- ing conventional light fi xtures with appointed an Energy Manager to exert a tighter ment and making a responsible generated 518 tons of waste (of for paper, plastic, aluminum, tetra cided to conduct an energy audit Smart Lighting LED systems. Fer- control on energy consumption by analyzing, use of resources is refl ected also which 98.6% was non-hazardous, pak, glass, and organic waste on to identify its energy structure as ragamo is already preparing to im- monitoring and optimizing it. in its efforts to curb the amount and 1.4% hazardous), down by its premises. These containers are well as the most and least effi cient plement this action. of waste generated from its op- more than 4% from 2014. This Made in Italy from 100% recycled functional areas, with the goal of erations. The Company strives to, was made possible by sorting the material and encourage employ- reducing energy consumption. and raises awareness among its waste from construction sites. ees to responsibly sort waste. The audit concerned the site in employees about, properly man- Osmannoro, the offi ce in Palazzo aging and disposing of garbage, Spini Feroni in Florence, the offi c- encouraging to reuse and recy- es in Via Borgospesso and Corso Matteotti in Milan, and a number of WASTE 5 GENERATED (t) the Brand's stores. The audit identifi ed a number of potential areas for intervention in order to boost 2015 518

2014 542

4 Includes 20,987 m3 of water from the public water main and 574 m3 of groundwater. 5 The data concerning waste refers exclusively to the site in Osmannoro.

70 Sustainability Report 2015 71 MATERIALS CONSUMPTION EMISSIONS MONITORING

Salvatore Ferragamo considers In addition, for the shipping of The FSC (Forest Stewardship Council) is an Curbing greenhouse gas emissions and calculating the Company's carbon The Carbon footprint represents the emissions of reducing the consumption of ma- some e-commerce orders, the internationally recognized forest certification footprint play a crucial role in Salvatore Ferragamo's strategy to reduce its climate-altering gases (CO2, CH4, Nitrous oxide system. The certification promotes the proper - N O, Hydrofl uorocarbons HFCs, Perfl uorocar- terials such as paper and plastic Company uses bubble wrap made environmental impact. During 2015, the Company made further progress 2 management of forests and the traceability bons PFCs and Sulfur Hexafl uoride SF ) attribut- crucial in order to do business re- from renewable plant sources that in defi ning its carbon footprint: the following table shows the amount of 6 of the products derived from them. The FSC able to a product, organization, or individual. sponsibly. can disposed of as organic waste greenhouse gas emissions generated in 2015. logo guarantees that the product is made of As for retail paper packaging, Sal- together with animal and vegeta- raw materials harvested from forests managed vatore Ferragamo prefers FSC ble food scraps, since it is com- according to sustainable principles. paper. The shopping bags are postable and biodegradable. Made in Italy and postconsumer, Finally, as for non-packaging mate- i.e. consist for up to 45% of re- rials such as catalogs, invitations, CARBON FOOTPRINT (kg CO2 eq) - 2015 cycled fi bers, and for the rest of leafl ets, and, in general, printed virgin pulp derived from environ- materials, the Company is plac- mentally-friendly processes. They ing increasing emphasis on ensur- are 100% recyclable and biode- ing that they are made with FSC SCOPE 1 - DIRECT GHG EMISSIONS 465,513 gradable. By 2016, the Company certifi ed paper and inks using pro- will start using this type of paper cesses that do not negatively im- also for corporate packaging. In pact the environment. addition, the dust bags for shoes, SCOPE 2 - ENERGY INDIRECT GHG EMISSIONS 2,186,470 handbags, and accessories are 100% unbleached Made in Italy cotton. In selecting its packaging suppliers, SCOPE 3 - INDIRECT GHG EMISSIONS NOT ATTRIBUTABLE TO THE PRODUCT Salvatore Ferragamo S.p.A. en- AND, SPECIFICALLY, RELATED TO BUSINESS TRAVEL AND EMPLOYEE 962,273 sures that they not only are based COMMUTING locally, which is the main guarantee of Made in Italy quality, but also have certifi cations such as ISO 9001: 2008, ISO 14001:2004, TOTAL CARBON FOOTPRINT 3,614,256 and OHSAS 18001:2007.

Thanks to its partnership with - Shanghai and Florence - Tokyo DHL, a leader in logistics as well ﬂ ights, compensating for 6,315

as a long-standing partner of the tons of CO2. Company, Salvatore Ferragamo S.p.A. has taken action to curb As in 2014, the Company chose emissions throughout the supply to support the “Water Puriﬁ ers” MATERIALS CONSUMPTION (kg) 2014 2015 chain. Salvatore Ferragamo's car- project in Cambodia, which seeks bon footprint related to the ship- to reduce emissions by curbing ments processed through DHL in the CO dreleased from the wood A3 Paper 6,651 2,800 2 2015 amounted to 10,589 tons of burnt to boil water - a necessary A4 Paper 41,944 30,188 CO2eq, according to a study con- step to kill E. Coli. Due to the lim- Cardboard boxes 436,681 553,967 ducted by DHL. ited availability of drinking water, most people in Cambodia must Packaging cardboard 489,233 466,360 To offset these emissions, once boil water before they can con- again in 2015 Salvatore Fer- sume it. ragamo has been participating in DHL's GoGreen Project, which Salvatore Ferragamo S.p.A.'s

seeks to reduce CO2 emissions commitment to this cause al- and compensate for them by sup- lows to distribute Ceramic Water porting internationally recognized Purifi ers kits manufactured in and Climate Neutral certifi ed car- Cambodia that purify water bon offset projects to protect through special fi lters, thus elimi- the environment. Specifi cally, the nating the need to boil it by burn- Company decided to offset the ing wood to kill bacteria. 2015 emissions from the Florence

72 Sustainability Report 2015 73 LEED PLATINUM BUILDING SUSTAINABLE MOBILITY

In 2015, the Company inaugurat- stored underground, thus reduc- LEED (Leadership in Energy and Environmental Searching for sustainable mobil- Finally, to support those that said To encourage employees to travel sustainably, ed the new Q building at the site in ing energy demand. Thanks to the Design) is the US system for rating the energy ity solutions is an integral part of they would gladly share their vehi- minimizing CO2, emissions, Salvatore Ferrag- Osmannoro. At 4 stories in height, Building Management System for effi ciency and ecological footprint of buildings. It Salvatore Ferragamo's strategy cle with their colleagues, in 2015 amo's travel policy promotes the use of public transport for business travel purposes when there it boasts nearly 5,700 sq m in the automation of lighting and tem- provides a set of measurement standards to as- to protect and safeguard the en- the Company entered into an sess environmentally sustainable buildings. LEED are no particular reasons for avoiding it. gross surface area for offi ce use perature control, the new Q build- vironment. The Company's Mo- agreement with JoJob, an innova- buildings can be divided into four rating levels ac- and an underground garage with ing optimizes energy consumption bility Manager is responsible for tive carpooling service consisting cording to their environmental sustainability: cer- optimizing employee trips and in a web platform and a mobile 87 parking spaces. and improves thermal-humidity tifi ed, silver, gold, and platinum. LEED-certifi ed The building has an energy rat- and lighting comfort, allowing us- buildings make for a healthier place to live and identifying actions and initiatives app. It allows to share a car with ing above A+ thanks to its highly ers to fi ne-tune it within a given work, boosting productivity and improving the that allow to reduce environmen- employees at Salvatore Ferraga- effi cient facilities. It was built in range. Rainwater is collected for health and comfort of employees. tal impacts. Based on the results mo and other companies nearby. accordance with all applicable toilet fl ushing. of the survey administered to em- The service was activated in Feb- laws, especially those concerning In addition, the building features bi- The LED or light emitting diode is a device that ployees in 2014 concerning their ruary 2016 and benefi ts the Com- the sustainable and effi cient use odynamic led lighting systems that generates light. It stands out for its reliability, long commuting habits, Salvatore Fer- pany's employees in terms of re- life, high effi ciency, and reduced consumption. of energy sources. adjust to the human biorhythm. ragamo has implemented some of duced CO2 emissions attributable This type of lighting technology is environmen- It is equipped with an approxi- Finally, to reduce CO , emissions, the solutions proposed to improve to their home-work commute, cost 2 tally sustainable and has now become extremely mately 1,800 sq m photovoltaic there are approximately 1,800 sq mobility. savings, and comfort. popular. system rated at 126 KWP, which m of plant-covered roofs as well provides 82% of the energy needs as 4 charging stations for electric To meet the demands of those of the entire building, as well as so- cars. Thanks to these character- employees that said they wanted lar thermal collectors for sanitary istics, the new Q building is in the to make their commuting more hot water. In addition, a geother- process of obtaining the LEED fl exible, in May 2015 the Company mal heat pump supports the air Platinum certifi cation. entered into an agreement with conditioning system using the heat Car2Go, a car sharing company. Under said agreement, a reserved parking area was set up near the site in Osmannoro, and employees were offered the opportunity to sign up to the service for free, col- lecting their membership card at the offi ce. The main goal of this initiative was introducing a new low-emission mobility solution, as well as reducing the number of private cars in Osmannoro's industrial area.

In addition, in September 2015, based on the results of the mobility survey, the Company installed a shelter and lighting at the bus stop in Osmannoro, making public transport more convenient and safer for those traveling to Florence.

74 Sustainability Report 2015 75 “Salvatore Ferragamo has chosen Florence as the home of the soul,

where creativity combines with expertise.

The city, and the whole region of Tuscany are part and

parcel of the DNA of Ferragamo,

a company that cares about the local community.”

Director of the Salvatore Ferragamo Museum & Head of Cultural and Institutional Events

76 CULTURE AND PARTICIPATION

PROMOTING CULTURAL AND SOCIAL DEVELOPMENT

Salvatore Ferragamo was one of After redeﬁ ning its Charity policy the ﬁ rst to realize that fashion, in 2014, during 2015 Salvatore art and culture are intimately con- Ferragamo made several dona- nected. Since the beginning of his tions to charity initiatives promot- career in America, the Company's ing Italy's culture across the world Founder always looked for inspira- as well as the health of women tion, ideas and collaborations with and children. the leading artists of the day. Over the years, the Company has In 2015, nearly 90% of Salvatore acted on its Founder's insight, Ferragamo S.p.A.'s donations dedicating considerable attention went to promote Italy's culture and resources to cultural initia- across the globe. tives in order to promote art in all Here below are the Company's its forms. main initiatives in this area.

BOTANIC GARDEN ISTITUTO DEGLI INNOCENTI

In December 2015, Salvatore The Company decided to donate “THE PLAGUE IN FLORENCE IN 1630” Ferragamo fi nalized an agree- the funds usually reserved for In 2015, Salvatore Ferragamo's donation helped ment with the University of Flor- printing Christmas cards to Flor- restoring the painting “The Plague in Florence in ence to restore six greenhouses ence's Istituto degli Innocenti, 1630”, which is part of the Misericordia di Fire- in Florence's Botanic Garden, one which also houses the UNICEF - nze's collection. The painting, which captures everyday life in 17th-century Florence, was once of the oldest in the world. Creat- Innocenti Research Center, to re- ed at the request of Cosimo dei again put on display in the Sala di Compagnia at structure the shelters for mothers the Arciconfraternita. Medici in 1545, it is an important and children in need. Consistently symbol of Florence's culture and with its Charity Policy, Salvatore expertise. The greenhouses, which Ferragamo decided to support were damaged by weather in Sep- Istituto degli Innocenti as a beacon tember 2014, host extremely rare of aid for children and solidarity plant species. in Florence. The partnership will continue in 2016 with a special THE UFFIZI GALLERY WORLD FOOD PROGRAM project. The 600,000 Euros Salvatore Fer- artworks and the experience for The donation is in keeping with ragamo donated in 2014 allowed visitors, features about fi fty of the Company's tradition of artistic Following the earthquake that hit to restore and open eight rooms the most valuable 15th-centu- patronage and represents a token Nepal in April 2015, Salvatore of Florence's Uffi zi Gallery - the ry Florentine artworks, includ- of appreciation to the city of Flor- Ferragamo made a donation to world-famous museum considered ing masterpieces by Domenico ence, as it is part and parcel of the World Food Program (WFP) of to be one of Italy's fl agship art Ghirlandaio, Alessio Baldovinetti, Salvatore Ferragamo's identity. the United Nations Agency, which venues - to the public in Septem- Cosimo Rosselli, Jacopo del Sell- provides food aid. The Company's ber 2015. aio, Filippino Lippi, Piero di Co- contribution helped the WFP dis- The renewed structure, equipped simo, Perugino, Lorenzo di Credi, tribute food across Nepal. with cutting-edge systems to im- and Luca Signorelli. prove the conservation of the

78 Sustainability Report 2015 79 DYNAMO CAMP

Salvatore Ferragamo supports the outﬁ t as well as training support parents while their children were Dynamo Camp Association, the thanks to the collaboration with participating in therapies or other only Italian therapeutic recreation Leonardo Giordani, a former world activities. The works made by the center for children suffering from road cycling champion. Once participants have been stored serious or chronic diseases dur- again in 2015, the Salvatore Fer- in the Salvatore Ferragamo ing the post-hospitalization period ragamo team was awarded as the Museum's archive. and/or remission. At the Camp, one that raised the most funds for children participate in games and the association. sports, which gives them the opportunity to have fun and socialize During 2015, the Company host- in a natural and protected setting. ed two corporate volunteer days In addition, the Association pro- at Dynamo Camp in which about poses therapeutic recreation pro- 70 employees participated. They grams for the entire family. helped pitch the tents and prepare the part of the facility where Salvatore Ferragamo speciﬁ cally children stay during the summer supports Dynamo Camp through camps at the WWF Oasis. the following initiatives: On 13 and 14 October 2015, Sal- On 23 and 24 May 2015, Salva- vatore Ferragamo S.p.A., in part- tore Ferragamo participated for nership with the Ferragamo Foun- the second year in a row in the dation, hosted the workshops Dynamo Bike Challenge, a bike “Discover the magical world of race organized by Dynamo Camp Foulards” at Dynamo Camp for to raise funds for the Camp. Sal- the parents of those children suf- vatore Ferragamo encouraged its fering from such serious diseases employees to participate by pro- that they could not take part in viding logistic support, reimbursing the activities. The initiative was transport and lodging costs, and intended to provide educational offering them a sponsored race and creative entertainment to the

80 Sustainability Report 2015 81 CORRI LA VITA ROVIGO HALF MARATHON

CORRI LA VITA BEST PERFORMER AWARD Once again in 2015, Salvatore Fer- activities all year round and from In 2015, Salvatore Ferragamo con- In the 2015 edition of Corri la Vita, Salvatore ragamo was the main sponsor of any city, and not just when it is tributed to the Rovigo Half Mara- Ferragamo was awarded as Best Performer for the charity sports event “Corri la taking place in Florence. thon. This charity sports event bringing the highest number of participants (810) Vita”, which was held in Florence To give visibility to the event, Sal- supports the Onlus Faedesfa as- to the event and raising the most funds. The award on Sunday, 27 September 2015. vatore Ferragamo made approxi- sociation, which helps children was presented at the end of the marathon in front Corri la Vita's proceeds go to non- mately 35,000 t-shirts for the par- suffering from a rare genetic dis- of Dario Nardella, the Mayor of Florence, and proﬁ t projects for national health ticipants, created a special win- order. The race was held on Sun- Bona Frescobaldi, the Chair of the association. facilities specializing in the treat- dow display at the store in Flor- day, 29 March 2015 and saw the ment of breast cancer through ence, and installed mini-panels at participation of 16 employees. Sal- psychological support, physical all the Brand's stores across Italy. vatore Ferragamo provided them and social rehabilitation, preven- with logistic support and a spon- tion, training, and palliative care. sored outﬁ t. The funds raised by The event offers the opportunity the event went to the purchase of to contribute to its fundraising two walkers for assisted breathing for the Children's unit at Rovigo Hospital.

ASSOCIAZIONE BANCO ALIMENTARE ONLUS

To help the needy and reduce waste, starting from February 2014, when TRADE ASSOCIATIONS the Catering Company and Associazione Banco Alimentare ONLUS (the Salvatore Ferragamo is a member of, among oth- Italian food bank) entered into an agreement, Salvatore Ferragamo has ers, the following trade associations: chosen to donate the excess food from the company cafeteria to Flor- ence's “CEIS - Centro di Solidarietà”, where a canteen serves both lunch National Chamber of Italian Fashion An association that promotes and co-ordinates and dinner. The Banco Alimentare ONLUS collects the food and checks the Italian Fashion industry and the training of its integrity and preservation. young Italian stylists. (http://www.cameramoda.it) During 2015, the Company donated the following servings: Confi ndustria Firenze Established in 1865, the association brings together the businesses based in Florence's province, representing the largest and most dynamic FIRST COURSES SECOND COURSES local economic industries - from manufacturing 4,505 (no. pieces) 6,916 (no. pieces) to services and tourism. (http://www.confi ndustriafi renze.it)

SIDE DISHES SUNDRY FOOD Altagamma Foundation 5,224 (no. pieces) PRODUCTS - 663 (kg) Since 1992, this association has been bringing together the companies that represent the best of Italy's cultural and creative industry, standing out for their level of innovation, quality, design, and service. (http://www.altagamma.it)

Assonime The association of Italian joint stock companies. (http://www.assonime.it/AssonimeWeb2)

Confcommercio Firenze An association representing companies from the Retail, Tourism, and Services industries, as well as Professions and Small and Medium sized Companies operating in Florence's province. (http://www.confcommercio.ﬁ renze.it)

82 Sustainability Report 2015 83 SALVATORE FERRAGAMO MUSEUM THE MAIN PARTNERSHIPS IN 2015

“SALVATORE FERRAGAMO MUSEUM. The strongest evidence of the In particular, the Salvatore Ferrag- In 2015, the Salvatore Ferragamo • partnership with KEY - Knowl- THE SALVATORE FERRAGAMO MUSEUM'S OUR FIRST THIRTY YEARS”. commitment towards culture is amo Museum intends to: Museum continued working with edge Exchange Institute, an inter- PARTNER ASSOCIATIONS To celebrate the 30 years of activity since it host- the Salvatore Ferragamo Muse- institutions, schools and universi- national organization that offers Museimpresa • represent the Company by show- ed its fi rst exhibition at Palazzo Strozzi, in 2015 um, established in 1995 inside the ties in the local community. Here study abroad programs; The Italian association of company museums casing its most important and sig- the Museum published the book “Salvatore Fer- Company's historic headquarters below are the main initiatives in • partnership with Museimpresa and archives, sponsored by Assolombarda and nifi cant contents, projecting an im- ragamo Museum. Our fi rst thirty years”, edited by Mrs Wanda Miletti Ferragamo this area: and participation in the XIV Busi- Confi dustria. The members of the association age of solidity and consistency; recount the story of Italian businesses and their by Stefania Ricci and with an essay by Antonio and her six children - chief among ness Culture Week (10-20 Novem- Paolucci. Published by Edifi r, the book chroni- • hand down the Company's culture protagonists by preserving and promoting docu- them Fiamma, who believed in the • partnership with the Biennial ber 2015): the Museum offered ments, iconographic material, objects, products, cles the main exhibitions held by the Salvatore from one generation to the next. Ferragamo Museum from 1985 to 2015. value of Ferragamo's history and Antiques Fair at Palazzo Corsini, special guided tours; and machines. considered culture key for design- It is a dynamic place of remem- granting visitors benefi ts such as • thanks to the long-standing part- Europeana Fashion ing and understanding the Com- brance, i.e. it gathers past creations a discounted entry to the museum nership with SDA Bocconi School GREEN MUSEUM to inspire new ideas, new proto- A European digital library that includes books, mov- pany's strategy, giving importance and special tours; of Management's Brand Acade- ies, paintings, newspapers, sound archives, maps, The Salvatore Ferragamo Museum will be Italy's types, and new products - all while to its past and preserving its prod- • partnership with the Tornabuoni my, in 2015 the Company hosted manuscripts, and archives from EU member states. fi rst Green museum, as it will be part of the Mu- respecting the Brand's identity; seimpresa Green initiative promoted by Confi n- ucts as symbols of durability and Class association, which in Sep- the two-day event “Brand Authen- In late 2014, the Salvatore Ferragamo Museum • create a sense of loyalty to the dustria, Federturismo, and Museimpresa. The world-class craftsmanship. tember hosted a charity gala to ticity - Bringing consumers back gave Europeana Fashion 1,000 catalog cards of Company; Museum has started reporting the CO emissions The Salvatore Ferragamo Muse- raise funds for the restoration to the origins of the brand” at the historical shoes. 2 • shape and make the Company's generated by its activities, and the ultimate goal is um is not a static place of remem- of green spaces and improving Ferragamo Foundation. As part Portal of the 20th Century Fashion Archives culture part of its local community, obtaining the international standard ISO 14064. brance dedicated to the Compa- the quality of life at the prison in of the agreement, Salvatore Fer- A platform set up in November 2011 within Italy's The Brand saw this project as an opportu- offering conceptual and practical ny, but rather a center to promote Sollicciano. The participants were ragamo also committed to spon- National Archive in Rome to preserve the fashion nity to set a good example for the international tools for passing on important sto- a cultural debate, connecting past offered special tours to the exhibi- soring initiatives and activities pro- industry's heritage. community, and signed up to it to promote an ries and memories; effi cient use of energy sources and protect the and present. tion “A Palace and the City”; moted by SDA Bocconi School of • engage with other institutions, environment. The Museum is seen as an open • partnership with the Giovanni Management and was offered the not necessarily from the busi- space where the Company and Alberto Agnelli Piaggio Museum: opportunity to participate in train- ness world, as well as schools and the outside world, business and the Company participated in “Cre- ing programs organized by the universities. the local community, come together. activity”, an event dedicated to Brand Academy. design, research, and training;

THE MUSEUM BY NUMBERS

EXHIBITIONS VISITORS 241/ 271,565/ (2006-2015)

CONTACTS WITH VISITORS IN 2015 200/ UNIVERSITIES AND SCHOOLS 41,483/

CONTACTS WITH MUSEUMS 220/ AND INSTITUTIONS

84 Sustainability Report 2015 85 2014-2015 EXHIBITION EQUILIBRIUM SALVATORE FERRAGAMO POSTAGE STAMP

EQUILIBRIUM - LEARNING PROJECT 23 April 2015 was the last day of the “Equilibrium” exhibition, which had To celebrate Salvatore Ferragamo's arrival in the United States in 1915, During the “Equilibrium” exhibition, the Museum opened in 2014. The exhibition focused on the importance of equilibrium on 30 November 2015 Italy's Ministry for Economic Development formally offered a program consisting in guided tours and in the life of everyone through Salvatore Ferragamo's writings and studies announced the issue of a postage stamp dedicated to the Company as a learning activities for elementary and middle on the arch of the foot and footwear as well as interviews with his wife, recognition of its work. The image on the postage stamp was created by school students titled “In life you need...Equilib- Wanda Miletti Ferragamo, a grandson, and a number of important person- Istituto Poligraﬁ co e Zecca dello Stato (Italy's state mint and polygraphic rium”. In addition, some bookshop items were alities - including the mountaineer Reinhold Messner; the high-wire artist institute) and comes from the Salvatore Ferragamo Archive. It depicts the created speciﬁ cally for the event. For the entire Pilippe Petit; the author Will Self; the architect, engineer and artist Cecil famous model created for Marilyn Monroe in 1958, as well as a pendulum duration of the exhibition, 5% of the proceeds Balmond; and the ballet dancer Eleonora Abbagnato. on the arch of the foot: it symbolizes the Founder's studies on the anato- from the sales of these products at 13 Ferragamo my of the foot, which played a crucial role in the design of his creations. stores around the world went to the association • 35,814 visitors from June 2014 to April 2015 “Un Cuore, Un Mondo” ONLUS, which is related to the Massa Heart Hospital and supports research into congenital heart defects in children.

2015-2016 EXHIBITION A PALACE AND THE CITY

LEARNING PROJECT - A PALACE AND THE CITY

During the “A Palace and the City” exhibition, the Ferragamo Foundation, in partnership with the Museum, created a new project for children involving guided tours of the exhibition and learning activities. In addition, for the Italian Museum Family Day, on 4 October 2015 families had the opportunity to tour the exhibition following a special learning program created speciﬁ cally for the occasion, named “The time travelers”.

The exhibition “A Palace and the the displays for the exhibition, to learn more about the changes City” was held from 8 May 2015 which opened the door of one occurred over the centuries and to 3 April 2016 to celebrate the Florence's landmarks to the city, analyze the relationship between 150 years since Florence was its residents, and tourists. the City and the Palace. made capital of Italy. It featured important artworks and docu- For the entire duration of the exhi- • 39,358 visitors from May 2015 ments from public and private mu- bition “A Palace and the City”, Sal- to April 2016 seums and collections, recounting vatore Ferragamo S.p.A. offered the intricate history of the Palace guided tours to the Palace's piano and its residents. The stage de- nobile (“noble ﬂ oor”, the main ﬂ oor signer Maurizio Balò developed of a building), allowing participants

86 Sustainability Report 2015 87 FERRAGAMO FOUNDATION

The Ferragamo Family set up style of Salvatore Ferragamo's The Foundation regularly holds In partnership with the project In 2015, the Foundation hosted THE KEYS OF THE CITY the Ferragamo Foundation on 15 works. To achieve these goals, conferences and events open to “Let’s work Artisans! Junior”, of several events for the children of Every year, the learning activities hosted by the March 2013 to promote crafts- the Foundation intends to pro- the residents of Florence and the Florence's Osservatorio dei Mes- Salvatore Ferragamo employees, Museum are included in the calendar of the pro- manship and Made in Italy prod- tect and promote Ferragamo's general public, learning workshops tieri d'Arte, the Foundation organ- allowing them to visit the place ject “The Keys of the City”, coordinated by the ucts as well as invest in the edu- historical archive, sponsor and for children, and various kinds of ized a cycle of workshops held in where their parents work and Municipality of Florence and open to elementary cation and training of those seek- host fashion training courses, and initiatives for the young - the main English, titled “Circus Time! Shoes learn about the values that char- and middle school students, as well as the Chil- dren's Festival, a three-day event for children. ing a career in the world of fash- provide scholarships and grants, beneficiaries of an institution that on Mobiles: the Endless Equilib- acterize the Company's history. ion, design, and the most elegant in partnership with the Salvatore considers handing down technical rium”. These were related to the SECRET GARDEN and artistic forms of Italian craft, Ferragamo Museum. expertise and educating people to “Equilibrium” exhibition. Finally, the Foundation helps devel- in keeping with the values and experiment one of its main goals. oping the project “Musei da favo- On 6 June 2015, the Ferragamo Foundation, in The children had the opportunity la” ("Fabulous Museums"), which partnership with the Salvatore Ferragamo Mu- seum, participated in Secret Garden, a charity to learn words and language struc- was launched in 2013 and offers event organized by the Noi per Voi association tures associated with the topic of tours in Italian and English allow- - which supports the Meyer Hospital - with the equilibrium and the magical world ing families to discover Florence's workshops “Artist's stretchers!” and “Discover of the circus through a storytelling main cultural landmarks. the magical world of foulards”. The funds raised approach. at the event went to the “Homing” project, promoted in partnership with Trenta Ore per la Vita 2015 to provide psychological and psychosocial THE FOUNDATION BY NUMBERS support at home for all families with children suffering from cancer being treated at the Meyer Hospital, as well as the purchase of “Brainlab”, a HIGH SCHOOL STUDENTS PARTICIPATING CHILDREN PARTICIPATING IN high-performance portable surgery unit. 1,510/ IN CONFERENCES (2013-2015) 989/ WORKSHOPS IN 2015*

CHILDREN PARTICIPATING IN WORKSHOPS ADULTS PARTICIPATING IN 2,828/ (2013-2015)* 774/ WORKSHOPS IN 2015*

LEARNING ACTIVITIES

The Ferragamo Foundation hosts The last one is a new format • “The Befana's new shoes” on “Workshops of ideas and creativ- launched in 2015 that uses the Three Kings' Day, 6 January 2015 ity” for children, teenagers and symbol of Salvatore Ferragamo's adults dedicated to artisan skills, passion and work as the starting • “Dad...in Equilibrium” on Father's fashion, and design. point for children to make imagina- Day, 19 March 2015 tive creations by painting and dec- The workshops are divided in four orating wooden shoe stretchers. • “Murder at the Hotel d'Europe” categories: In addition, to celebrate holidays on Halloween, 31 October 2015 or events concerning children, • Make your own sandal the Foundation organizes learning • Make your ﬁ rst bag activities or guided tours for the whole family to make adults and • Discover the magical world of children “work” together, such as: foulards • Artist's...stretchers

* In partnership with the Salvatore Ferragamo Museum.

88 Sustainability Report 2015 89 PROTECTING, MANAGING AND PROMOTING SALVATORE FERRAGAMO'S HISTORICAL ARCHIVE

SAMIRA is a cataloging, information and com- The Ferragamo Foundation is at The Archive allows to protect and munication software that meets the most diverse the forefront of the preservation promote Salvatore Ferragamo's needs of institutions that manage archives and of archival materials, thanks to the historical-artistic heritage, which museums. It allows to share, process, organize, “SAMIRA” cataloging software. represents the memory of an en- and publish information. The archive includes authentic tire industrial and social culture. It and diverse materials, which are is a constant source for inspiration implemented every day and are that is consistent with the Com- not replicated. pany's identity, as it preserves its history and infl uences the communication and work of the designers and marketers developing new products. • Shoes Archive: approximately 15,000 models As a testament to its effi ciency • Wooden Stretchers Archive: approximately 100 items and functionality, this cataloging • Historical Leather Hides Archive: approximately 500 items system was taken as a case his- • Handbags Archive: approximately 1,100 models tory for the project of the Portal • Apparel Archive: approximately 3,400 models of the 20th Century Fashion Ar- • Milan Silk Archive: approximately 4,300 models chives as well as the Europeana Fashion portal. • Costume Jewellery Archive: approximately 500 models • Artworks Archive: approximately 200 items In 2015, following the success of • Objects Archive (products, work tools, memorabilia): approximately 500 items the fi rst edition of the Seminar for • Media Library (video): approximately 10,000 items Fashion Company Archivers held by the Foundation, the A. M. Enr- iques Agnoletti School of Archival Studies, Paleography and Diplo- macy of Florence's National Ar- chive added the Foundation to the group of institutions authorized to host an evening archival invento- rying workshop in the 2015-2017 period.

The participants in the seminar hosted by the Ferragamo Foun- dation will have the opportunity to work on organizing and analyti- cally cataloging albums from the 19th and 20th century using the SAMIRA software. These albums contain samples of designs and decorative patterns that Salva- tore Ferragamo S.p.A. has been using over the years as inspiration to produce its ties.

90 Sustainability Report 2015 91 BOUNDARIES OF THE ORGANIZATION'S MATERIAL ASPECTS GRI CONTENT INDEX

The following table presents the aspects set out in the GRI-G4 Guidelines that correspond to the material aspects Here below is the GRI table prepared using the “In Accordance-core” option, pursuant to the GRI-G4 Guidelines of identiﬁ ed for Salvatore Ferragamo S.p.A. through the materiality analysis, as well as the relevant boundaries, mak- the Global Reporting Initiative. Any omissions are reported as notes to the individual indicators, if required. ing reference to the impacts that each aspect may have within and outside the Company.

G4 MATERIAL ASPECTS BOUNDARIES OF MATERIAL ASPECTS CODE INDICATOR PAGE/NOTES

GENERAL STANDARD DISCLOSURES Categories Internal External

Category: Economic STRATEGY AND ANALYSIS Economic Performance Salvatore Ferragamo S.p.A. - G4 -1 Statement from the most senior decision-maker about Market Presence Salvatore Ferragamo S.p.A. - Pagg. 3-4 the relevance of sustainability to the organization and the Procurement Practices Salvatore Ferragamo S.p.A. - organization’s strategy Category: Environmental G4 -2 Key impacts, risks, and opportunities Pag. 20 Energy Salvatore Ferragamo S.p.A. - Emissions Salvatore Ferragamo S.p.A. - ORGANIZATIONAL PROFILE Effl uents and Waste Salvatore Ferragamo S.p.A. - G4 - 3 Name of the organization Pag. 6 Category: Social G4 - 4 Primary brands, products and/or services Pagg. 14-16 Sub-categories: labor practices and decent work G4 - 5 Headquarters Pag. 13 Occupational Health and Safety Salvatore Ferragamo S.p.A. - Training and Education Salvatore Ferragamo S.p.A. - G4 - 6 Number of countries where the organization operates Pagg. 17-18 Diversity and equal opportunity Salvatore Ferragamo S.p.A. - G4 - 7 Nature of ownership and legal form Pag. 20 http://group.ferragamo. Sub-category: Human rights com/en/governance/ Non-Discrimination Salvatore Ferragamo S.p.A. - corporate-governance Supplier Human Rights Asses- Salvatore Ferragamo S.p.A. Suppliers G4 - 8 Markets served Pagg. 17-19 sment G4 - 9 Scale of the organization Pag. 17 Sub-category: Society G4 - 10 Characteristics of the work force Pagg. 30-34 Local Communities Salvatore Ferragamo S.p.A. - G4 -11 Percentage of total employees covered by collective All Salvatore Ferragamo bargaining agreements S.p.A. employees are Sub-category: Product responsibility covered by the National Customer Health and Safety Salvatore Ferragamo S.p.A. - Collective Bargaining Product and Service Labeling Salvatore Ferragamo S.p.A. - Agreement. G4 - 12 Description of the organization's supply chain Pagg. 56-63 G4 - 13 Signifi cant changes during the reporting period regarding There were no the organization's size, structure, ownership, or its supply signifi cant changes chain during the reporting period regarding the organization's size, structure, ownership, or its supply chain.

G4 - 14 Application of the precautionary approach to risk management Pagg. 4;20 G4 - 15 Externally developed economic, environmental and social Pag. 21 charters, principles, or other initiatives to which the organization subscribes or which it endorses G4 - 16 Memberships of industry associations Pag. 83

92 Sustainability Report 2015 93 CODE INDICATOR PAGE/NOTES CODE INDICATOR PAGE/NOTES

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES SPECIFIC STANDARD DISCLOSURE

G4 - 17 Entities included in the organization's consolidated fi nancial Pag. 6 ECONOMIC INDICATORS statements and indication of any entities non covered by the report MATERIAL ASPECT: ECONOMIC PERFORMANCE G4 - 18 Process for defi ning the Sustainability Report's content Pagg. 25-26 G4 - DMA Disclosures on management approach Pagg. 35-36; 49 G4 - 19 Identifi ed material aspects Pag. 26 G4 - EC4 Financial assistance received from governments Pagg. 35-36; 49 G4 - 20 Material aspects within the organization Pagg. 26;92 During 2015, Salvatore Ferragamo S.p.A. G4 - 21 Material aspects outside the organization Pagg. 26;92 received approximately G4 - 22 Restatements of information provided in the previous There were no restatements 13,000 Euros in fi nancial Sustainability Report of information provided in assistance from the Italian the previous Sustainability government, mainly for the Report. training of employees and the sales staff. G4 - 23 Signifi cant changes from the previous Sustainability Report in There were no signifi cant the scope and aspect boundaries changes from the MATERIAL ASPECT: MARKET PRESENCE previous Sustainability Report in the scope and G4 - DMA Disclosures on management approach Pag. 30 aspect boundaries. G4 - EC6 Procedures for hiring people from the local community at Pag. 32 signifi cant locations of operation and proportion of senior More than 40% of the management hired from the local community management comes STAKEHOLDER ENGAGEMENT from Florence.

G4 - 24 Categories and groups of stakeholders engaged by the organization Pag. 25 MATERIAL ASPECT: PROCUREMENT PRACTICES G4 - 25 Process for identifying stakeholders Pag. 25 G4 - DMA Disclosures on management approach Pagg. 56-60 G4 - 26 Approach to stakeholder engagement, including frequency of Pagg. 26-27 engagement by type G4 - EC9 Proportion of spending on local suppliers at signiﬁ cant locations Pag. 58 of operations G4 - 27 Key topics and concerns that have been raised through stakeholder Pagg. 26-27 engagement ENVIRONMENTAL INDICATORS REPORT PROFILE MATERIAL ASPECT: ENERGY

G4 - 28 Reporting period for the Sustainability Report Pag. 6 G4 - DMA Disclosures on management approach Pagg. 68-70 G4 - 29 Date of most recent previous Sustainability Report Pag. 6 G4 - EN3 Energy consumption within the organization Pagg. 68-69

Pag. 6 G4 - 30 Reporting cycle ASPECT: WATER G4 - 31 Contact point Pag. 6 G4 - EN8 Water withdrawal Pag. 71 G4 - 32 GRI content index Pagg. 93-98 G4 - EN9 Water sources signiﬁ cantly affected by withdrawal of Pag. 71 G4 - 33 External assurance policies and practices Pagg. 99-100 water

GOVERNANCE MATERIAL ASPECT: EMISSIONS

G4 - 34 Governance structure of the organization Pag. 20 G4 -DMA Disclosures on management approach Pag. 73 http://group.ferragamo. G4 -EN15 Direct greenhouse gas emissions (Scope 1) Pag. 73 com/en/governance/ corporate-governance G4 -EN16 Energy indirect greenhouse gas emissions (Scope 2) Pag. 73

ETHICS G4 -EN17 Other indirect greenhouse gas emissions (Scope 3) Pag. 73 Emissions of ozone-depleting substances G4 - 56 Values, principles, standards and norms of behavior of the Pag. 21 G4 -EN20 Considering the nature of its business, Salvatore organization Ferragamo S.p.A. does not generate other signiﬁ cant emissions of ozone-depleting substances.

94 Sustainability Report 2015 95 CODE INDICATOR PAGE/NOTES CODE INDICATOR PAGE/NOTES

G4 -EN21 NOx, SOx, and other signiﬁ cant air emissions Considering the nature of its business, Salvatore MATERIAL ASPECT: TRAINING AND EDUCATION Ferragamo S.p.A. does not generate other G4 - DMA Disclosures on management approach Pagg. 35-37 signiﬁ cant emissions of G4 - LA11 Percentage of employees receiving regular performance Pag. 37

NOx, SOx or other gases. and career development reviews, by gender and by employee category MATERIAL ASPECT: EFFLUENTS AND WASTE

G4 - DMA Disclosures on management approach Pag. 71 MATERIAL ASPECT: DIVERSITY AND EQUAL OPPORTUNITY G4 - EN24 Signifi cant spills In 2015, there were no G4 - DMA Disclosures on management approach Pagg. 33-34 signifi cant spills. G4 - LA12 Composition of governance bodies and breakdown of As at 31 December 2015, employees per employee category according to gender, Salvatore Ferragamo age group, and other indicators of diversity S.p.A. had 25 employees Pag. 71 G4 - EN25 Hazardous waste falling under protected categories. ASPECT: COMPLIANCE In 2015, there were no sanctions for non- ASPECT: LABOR PRACTICES GRIEVANCE MECHANISMS G4 - EN29 Monetary value of signifi cant fi nes and total number of non- compliance with In 2015, six grievances monetary sanctions for non-compliance with environmental G4 - LA16 Number of grievances about labor practices fi led, environmental laws and about labor practices were laws and regulations addressed, and resolved through formal grievance regulations. fi led, and four of them mechanisms were resolved before the ASPECT: TRANSPORT end of the year.

G4 - EN30 Signiﬁ cant environmental impacts of transporting products and Pagg. 73-75 other goods and materials for the organization’s operations, SUB-CATEGORY: HUMAN RIGHTS and transporting members of the workforce MATERIAL ASPECT: NON-DISCRIMINATION

ENVIRONMENTAL GRIEVANCE MECHANISMS G4 - DMA Disclosures on management approach Pag. 33

G4 - EN34 Number of grievances about environmental impacts In 2015, there were G4 - HR3 Total number of incidents of discrimination and corrective In 2015, there were ﬁ led, addressed, and resolved through formal grievance no grievances about actions taken no incidents of mechanisms environmental impacts. discrimination.

ASPECT: CHILD LABOR SOCIAL INDICATORS G4 - HR5 Operations identiﬁ ed as having signiﬁ cant risk for incidents of child Pagg. 21;33;56 SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK labor

ASPECT: EMPLOYMENT ASPECT: FORCED OR COMPULSORY LABOR

G4 - LA1 Total number and rates of new employee hires and Pag. 32 G4 - HR6 Operations identiﬁ ed as having signiﬁ cant risk for Pagg. 21;33;56 employee turnover by age group, gender, and region incidents of forced or compulsory labor

MATERIAL ASPECT: OCCUPATIONAL HEALTH AND SAFETY MATERIAL ASPECT: SUPPLIER HUMAN RIGHTS ASSESSMENT

G4 - DMA Disclosures on management approach Pag. 40 G4 - DMA Disclosures on management approach Pag. 56 G4 - HR10 Percentage of new suppliers screened using human rights Pag. 56 G4 - LA6* Type of injury and rates of injury, occupational diseases, Pag. 40 criteria lost days, and absenteeism, and total number of work- related fatalities, by region and by gender ASPECT: HUMAN RIGHTS GRIEVANCE MECHANISMS

G4 - HR12 Number of grievances about human rights impacts In 2015, there were no ﬁ led, addressed, and resolved through formal grievance grievances about human mechanisms rights impacts.

* Omission: the Company will further develop the system for gathering data on the main injury rates starting from the next reporting period.

96 Sustainability Report 2015 97 CODE INDICATOR PAGE/NOTES

SUB-CATEGORY: SOCIETY

MATERIAL ASPECT: LOCAL COMMUNITIES

G4 - DMA Disclosures on management approach Pag. 78 G4 - SO1 Operations with implemented local community engagement, Pagg. 78;84-85; impact assessments, and development programs 88-89

ASPECT: COMPLIANCE

G4 - SO8 Monetary value of signiﬁ cant ﬁ nes and total number of In 2015, there were non-monetary sanctions for non-compliance with laws and no sanctions for non- regulations compliance with laws and regulations.

ASPECT: GRIEVANCE MECHANISMS FOR IMPACTS ON SOCIETY

G4 - SO11 Number of grievances about impacts on society ﬁ led, In 2015, there were addressed, and resolved through formal grievance no grievances about mechanisms impacts on society.

SUB-CATEGORY: PRODUCT RESPONSIBILITY

MATERIAL ASPECT: CUSTOMER HEALTH AND SAFETY

G4 - DMA Disclosures on management approach Pag. 56 G4 - PR2 Incidents of non-compliance with regulations concerning In 2015, there were the health and safety impacts of products and services no incidents of non- during their life cycle compliance with regulations concerning the health and safety impacts of products and services during their life cycle.

MATERIAL ASPECT: PRODUCT AND SERVICE LABELING

G4 - DMA Disclosures on management approach Pagg. 44-45;48;52 G4 - PR3 Product and service information Pagg. 44-45;52;56-60 G4 - PR4 Incidents of non-compliance with regulations concerning In 2015, there were product and service information and labeling no incidents of non- compliance with regulations concerning product and service information and labeling.

ASPECT: MARKETING COMMUNICATIONS

G4 - PR7 Incidents of non-compliance with regulations concerning In 2015, there were no marketing communications incidents of non-compliance with regulations concerning marketing communications.

G4 - PR9 Monetary value of signiﬁ cant ﬁ nes for non-compliance In 2015, there were with laws and regulations concerning the use of products no sanctions for and services non-compliance with laws and regulations concerning the use of products and services.

98 Sustainability Report 2015 99 100