Sustainability Report FY 2021

59 RUFFINO | Sustainability Report FY 2021 The main upset caused by the pandemic and pro- longed lockdowns can be seen in the creation of excess stock – in March 2021, 61.7 million hecto- liters (hl) of warehoused wine and must, up by 1.5 million hl compared to the previous year 10 – ascri- bed above all to interruptions in the supply chain and in main market outlets, such as Horeca. In addition to the effects of the pandemic, the Italian Ministry of Agricultural, Food and Forestry Poli- cies identifies the imbalance between production and consumption in the European Union and the effects of the duties imposed by the United States as additional factors on the surplus. Regarding export, in 2020 the sector experienced a 2.2% decline compared to 2019, totaling 6.29 bil- lion euro of Italian wine exported worldwide: the markets most affected were Asia, down by 12.6% against the previous year, and the US (5.6%). Ita- lian exports to European represented 62% of the total 11 . Covid-19 has affected the personal purchasing and consumption of wine. Especially during lockdown, due to the closure of bars and restau- rants, purchases were mostly made online and through mass retail, and the reduced consump- tion of wine has been linked with the lack of so- cial occasions 12 . More specifically, in FY 2021 the production va- lue was 104.59 million Euro, down compared to the previous year (-21.20%). The financial year en- ded with an EBITDA of 6.13 million Euro, a 50.9% reduction compared to FY 2020 and a profit of 4.92 million Euro (-65.28% compared to the pre- vious year). The ability to produce a sustainable income over time for us is directly linked to the fact that the overall wealth generatedmust be distributed fair- ly among all the production factors that contribu- ted to its formation. These include the land and the vineyard, which must generate an amount of grapes that meets the quality and quantity pro- duction expectations. Creating sustainable value is therefore a required condition in order to preserve and increase the value of the assets entrusted to us over time. To this end, in FY 2021 we distributed 87% of the overall value generated to the Group’s priority stakeholder categories, keeping 13% to fulfil the Group’s growth and development goals, shown below: 10 Data Cantina Italia, March 2021. 11 Data Osservatorio Qualivita Wine: based on Istat data. 12 Results from the survey “The effects of lockdown on wine consumption in Italy” managed by Nomisma Wine Monitor . Economic value generated 101,174,768 Economic value distributed to suppliers Economic value distributed to staff Economic value distributed to financers Economic value distributed to Public Administration Economic value distributed to the local community 78.8% Economic value distribudet 88,080,277 15.9% 1.1% 1.1% 0.3%