Machinery production/engineering

The machinery production/engineering sector is presented by EVVA Sicherheitstechnologie GmbH and Palfinger AG. The sector analysis starts again with the assessment of the company that published sustainability data on a separate basis and continues with the integrated report of Palfinger AG. Despite the fact, that their specialisation in engineering is not congruent, they are still good examples for companies engaging in the production of machinery technology. While the first mentioned is a leading producer of entrance systems,⁴⁴⁸ the second one is specialised in developing and producing lifting and crane

447Based on data from Erste Group Bank AG, 2016b, Internet:

https://www.erstegroup.com/content/dam/at/eh/www_erstegroup_com/de/ir/2015/Berichte/GB2015_FINAL_de.

pdf, own translation.

448Cf. EVVA Sicherheitstechnologie GmbH, 2015, pp. 7-9, Internet:

http://www.evva.at/fileadmin/files_all/Download/Publikationen/Nachhaltigkeitsbericht/EVVA_Nachhaltigkeitsber icht_2015.pdf, own translation.

~ 91 ~

technologies for utility vehicles.⁴⁴⁹ There are no additional G4 Sector Disclosures for this branch. ⁴⁵⁰

E V V A SI C H E R H E I T S T E C H N O L O G I E GM BH

The company was founded in 1919 in Vienna and stands for "Erfindungs-, Versuchs-, und Verwertungs-Anstalt" (EVVA).⁴⁵¹ However, it was not before 1937 that the company registered its first patent.⁴⁵² At the present day, the company is a leading producer of hardware and software entrance systems, employing approximately 470 people in Austria and 750 people in total on the European market. The company owns further subsidiaries in Belgium, Germany, Italy, the Netherlands, Poland, Switzerland and the Czech Republic.⁴⁵³The developed mechanical and electronic technologies are utilized in private households, as well as in companies and institutions around the globe.⁴⁵⁴

For fulfilling the sustainability reporting requirements according to G4, the "in accordance"

option Core was chosen by the company.⁴⁵⁵ Besides, the two economic aspects Economic Performance and Indirect Economic Impacts have been chosen, as visible in table 22. While G4-EC4 is the indicator representing the first aspects, G4-EC7 and G4-EC8 have both been chosen for the second mentioned one.⁴⁵⁶ G4-EC8 is, nevertheless, not identified to include

449Cf. Palfinger AG, 2016b, Internet: https://www.palfinger.com/de/aut/ueber-palfinger, own translation.

450Cf. Global Reporting Initiative, n.a. f, https://www.globalreporting.org/standards/sector-guidance/sectorguidanceG4/Pages/default.aspx

451Cf. EVVA Sicherheitstechnologie GmbH, 2016, Internet:

http://www.evva.at/ueber-uns/geschichte/gruendungsaera/de/; EVVA Sicherheitstechnologie GmbH, 2015, p. 9, Internet:

http://www.evva.at/fileadmin/files_all/Download/Publikationen/Nachhaltigkeitsbericht/EVVA_Nachhaltigkeitsber icht_2015.pdf, own translation.

452Cf. EVVA Sicherheitstechnologie GmbH, 2016a, Internet: http://www.evva.at/ueber-uns/geschichte/gruendungsaera/de/, own translation.

453Cf. EVVA Sicherheitstechnologie GmbH, 2015, pp. 7-9, Internet:

http://www.evva.at/fileadmin/files_all/Download/Publikationen/Nachhaltigkeitsbericht/EVVA_Nachhaltigkeitsberi cht_2015.pdf, own translation.

454Cf. EVVA Sicherheitstechnologie GmbH, 2015, p. 11, Internet:

http://www.evva.at/fileadmin/files_all/Download/Publikationen/Nachhaltigkeitsbericht/EVVA_Nachhaltigkeitsberi cht_2015.pdf, own translation.

455Cf. EVVA Sicherheitstechnologie GmbH, 2015, p. 70, Internet:

http://www.evva.at/fileadmin/files_all/Download/Publikationen/Nachhaltigkeitsbericht/EVVA_Nachhaltigkeitsberi cht_2015.pdf, own translation.

456Cf. EVVA Sicherheitstechnologie GmbH, 2015, p. 76, Internet:

http://www.evva.at/fileadmin/files_all/Download/Publikationen/Nachhaltigkeitsbericht/EVVA_Nachhaltigkeitsberi cht_2015.pdf, own translation.

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all the necessary information regarded by the GRI guidelines, as the company misses to report the significance of the indirect economic impacts. The subsequent analysis of the traditional economic indicators, recommended to be reported about in order to provide a holistic picture of the company's economic sustainability, is presented in table 22. However, none of the financial ratios has been considered within the report, nor helpful numbers for the calculation have been included. Besides, it is important to notice, that the last three ratios have been cancelled, as the company has the legal form of a GmbH and there are no dividends to be paid to shareholders.

Economic Aspects

Specific Economic

Standard Disclosures

Existent within the sustainability report

yes/no/partly

Reference to other published reports

Economic Performance

G4-EC1 No -

G4-EC2 No -

G4-EC3 No -

G4-EC4 Yes, p. 40

Market Presence G4-EC5 No -

G4-EC6 No -

Indirect Economic Impacts

G4-EC7 Yes, p. 56 G4-EC8 Partly, pp. 21, 73 Procurement

Practices G4-EC9 No -

Table 22: EVVA Sicherheitstechnologie GmbH - Analysis criteria for specific economic indicators according to G4 and where they can be found⁴⁵⁷

457Based on table 10, chapter 4.3 and on EVVA Sicherheitstechnologie GmbH, 2015, Internet:

http://www.evva.at/fileadmin/files_all/Download/Publikationen/Nachhaltigkeitsbericht/EVVA_Nachhaltigkeitsbe richt_2015.pdf, own translation.

~ 93 ~ Traditional Economic

Indicators/

Financial ratios

Existent within the sustainability report

yes/no/partly

Reference to other published reports

Liquidity ratio No -

Cash flow statement No -

Working Capital ratio No -

Equity ratio No -

Dynamic debt-equity ratio No -

Matching maturities No -

Gearing ratio No -

Return on equity No -

ROA No -

ROCE No -

ROS No -

EPS - -

P/E ratio - -

Dividend yield - -

Table 23: EVVA Sicherheitstechnologie GmbH - Analysis criteria for traditional economic indicators and where they can be found⁴⁵⁸

Additional disclosures on the topics depicted in table 24 have been fully to not been regarded within the sustainability report of the EVVA Sicherheitstechnologie GmbH. For the information on products and services the reference to the company's homepage has been given, which is why this indicator has been market to be only "Partly" represented.

Additional disclosures

Existent within the sustainability report

yes/no/partly

Reference to other published reports

Overall strategy Yes, pp. 17-27

Corporate governance No -

Risk management Yes, p. 70 -

458Based on outcomes of chapter 4.2.1 and on EVVA Sicherheitstechnologie GmbH, 2015, Internet:

http://www.evva.at/fileadmin/files_all/Download/Publikationen/Nachhaltigkeitsbericht/EVVA_Nachhaltigkeitsberi cht_2015.pdf, own translation.

~ 94 ~ Resource allocation

Products and services Partly, p. 10 www.evva.com Investment decisions Yes, pp. 3, 23

Remuneration policy No -

Dividend/profit retention policy No -

Table 24: EVVA Sicherheitstechnnologie GmbH - Analysis criteria for additional disclosures according to outcomes of chapter 4.4⁴⁵⁹

PA L F I N G E R A G

Since 1932, Palfinger AG evolved to become worldwide one of the leading companies in developing and producing lifting and crane technologies for utility vehicles.⁴⁶⁰ In 2015, Palfinger Group owned 67 associates, was situated in 25 countries where more than 9,000 people were employed. Although the corporate headquarter is situated in Salzburg, Austria, production facilities are spread in Western and Eastern Europe, North and South America, as well as in Asia.⁴⁶¹ The company went public in 1991,⁴⁶² which subsequently makes it currently a target for the CSR Directive 2014/95/EU already brought to discussion within chapter 3.1.

Current sustainability topics, as depicted in table 25, are integrated within the annual corporate statement and are based on the G4 framework while using the Core "in accordance" reporting option.⁴⁶³ Economic aspects considered material for the company, are the Economic Performance and the Indirect Economic Impacts, while both aspects entail at least one indicator for a more detailed representation. However, G4-EC2 that focuses on financial implications of the risks and opportunities tied to climate change issues, is not fully

459Based on data from EVVA Sicherheitstechnologie GmbH, 2015, Internet:

http://www.evva.at/fileadmin/files_all/Download/Publikationen/Nachhaltigkeitsbericht/EVVA_Nachhaltigkeitsberi cht_2015.pdf, own translation.

460Cf. Palfinger AG, 2016b, Internet: https://www.palfinger.com/de/aut/ueber-palfinger, own translation.

461Cf. Palfinger AG, 2016a, p. 12, Internet: http://static.globalreporting.org/report-pdfs/2016/e1720e146622b4d836d70660be585b61.pdf; Palfinger AG, 2016b, Internet:

https://www.palfinger.com/de/aut/ueber-palfinger, own translation.

462Cf. Palfinger AG, 2016b, Internet: https://www.palfinger.com/de/aut/ueber-palfinger, own translation.

463Cf. Palfinger AG, 2016a, p. 233, Internet: http://static.globalreporting.org/report-pdfs/2016/e1720e146622b4d836d70660be585b61.pdf, own translation.

~ 95 ~

reported upon. This is because attention is only given to the qualitative description of the risks and not their financial impacts on the company.⁴⁶⁴

Economic Aspects

Specific Economic

Standard Disclosures

Existent within the sustainability report

yes/no/partly

Reference to other published reports

Economic Performance

G4-EC1 Yes, pp. 38-39, 45 G4-EC2 Partly, pp. 70-77

G4-EC3 No -

G4-EC4 Yes, p. 38

Market Presence G4-EC5 No -

G4-EC6 No -

Indirect Economic Impacts

G4-EC7 No -

G4-EC8 Yes, pp. 24-29, 70-77 Procurement

Practices G4-EC9 No -

Table 25: Palfinger AG - Analysis criteria for specific economic indicators according to G4 and where they can be found⁴⁶⁵

Continuing the analysis of Palfinger AG with table 26, here the traditional economic indicators based on the outcomes of chapter 4.2.1 are presented as given within the integrated report of the company. While those financial ratios marked with a "Yes" are already calculated within the statement, those designated a "Partly" can still be calculated out of the data published within the report.⁴⁶⁶ In this case, the page number where the needed data for the calculation according to the description of chapter 4.2.1 can be found, is given in the second column.

464Cf. Palfinger AG, 2016a, p. 70-77, 235, Internet: http://static.globalreporting.org/report-pdfs/2016/e1720e146622b4d836d70660be585b61.pdf, own translation.

465Based on table 10, chapter 4.3 and on Palfinger AG, 2016a, Internet: http://static.globalreporting.org/report-pdfs/2016/e1720e146622b4d836d70660be585b61.pdf, own translation.

466E.g. out of the profit and loss statement on p. 115, the consolidated balance sheet on p. 117, or the cash flow statement on p. 120.

~ 96 ~ Traditional Economic

Indicators/

Financial ratios

Existent within the sustainability report

yes/no/partly

Reference to other published reports

Liquidity ratio Partly, p. 117 Cash flow statement Yes, 120 Working Capital ratio Yes, p. 25

Equity ratio Yes, p. 12

Dynamic debt-equity ratio Partly, pp. 117, 120 Matching maturities Partly, p. 117

Gearing ratio Yes, p. 12

Return on equity Yes, p. 4

ROA Partly, pp. 115, 117

ROCE Yes, p. 12

ROS Partly, p. 115

EPS Yes, p. 4

P/E ratio Partly, p. 4

Dividend yield Yes, p. 38

Table 26: Palfinger AG - Analysis criteria for traditional economic indicators and where they can be found⁴⁶⁷

The third analysis criteria presented in table 27 reveals additional information helpful to understand how the company operates in order to be economically sustainable, according to chapter 4.1. Palfinger AG presents in this context exemplary detailed information on all additional matters, as visible below.

Additional disclosures

Existent within the sustainability report

yes/no/partly

Reference to other published reports

Overall strategy Yes, pp. 16-31

Corporate governance Yes, pp. 98-105

Risk management Yes, pp. 70-77, 104

Resource allocation

467Based on outcomes of chapter 4.2.1 and on Palfinger AG, 2016a, Internet:

http://static.globalreporting.org/report-pdfs/2016/e1720e146622b4d836d70660be585b61.pdf, own translation.

~ 97 ~ Products and services Yes, p. 12

Investment decisions Yes, pp. 22, 27, 39, 49-50

Remuneration policy Yes, pp. 79, 102 Dividend/profit retention policy Yes, 195

Table 27: Palfinger AG - Analysis criteria for additional disclosures according to outcomes of chapter 4.4⁴⁶⁸

Im Dokument Economic sustainability: a comparative analysis of sustainability reports in Austrian companies / submitted by Flavia-Maria Rybacki, BSc (Seite 98-105)