marine
O7
industry
certification
annual report
Contents
Environmental
statement
Chairman’s statement
2
Enriching our competencies
3
Operational highlights of the Group
4
The Management Committee
7
The RINA Group
10
The RINA Group – a strong platform for growth
13
Supporting global growth
19
Anticipating society’s needs
27
Increasing the value of expertise
35
Summary of report to shareholders
43
RINA Group 2007 Annual Report is printed on ecological paper.
Board of directors
Enrico
Gianrenzo
Ugo
Nazareno
Umberto
Livio
Carlo
SCERNI
PRATI
SALERNO
CERNI
D’AMATO
MARCHESINI
STAGNARO
Chairman
Vice-Chairman
CEO
Director
Director
Director
Director
Audit board
Giuliano
Francesco
Giovanni
TERMANINI
ILLUZZI
GRAZZINI
Director
Member
Member
Supervisory board
Gianrenzo
Daniela
Elvio
PRATI
CIBRARIO
BIANCONI
Director
Member
Member
Chairman’s statement
“
We are at times too ready to believe that the present is the only possible state
of things.
Marcel Proust
”
Proust was too complacent. The only way to succeed in today’s fast-moving world is to anticipate
and prepare for constant change. The performance of the RINA Group during 2007 demonstrates
how it has succeeded in staying ahead of change. It has anticipated the needs of its existing clients
and developed the skills and services needed by new clients.
In a very strong marine market worldwide, RINA was able to respond to the needs of shipowners
by having the right people in the right place at the right time. It was able to both support its core
clients and reach out to new markets.
RINA’s co-operation with CONFITARMA is a good example of helping existing clients. Italian
shipowners need quick answers to difficult questions, and they need new sources of trained crews.
RINA set up a dedicated help line for CONFITARMA members and invested in crew training in the
Philippines to service the needs of its international clients. At the same time RINA reached out into
China to develop a partnership with Shanghai Maritime University, ensuring that we help the next
generation of Chinese ship managers.
In industry, in commerce, in public administration, in healthcare, in Italy and in thirty other countries
around the world, RINA has anticipated the needs of companies and organisations to set, verify
and demonstrate ever higher standards in whatever they do. That, and the dedication and hard
work of our staff, explains why RINA performed so well during 2007.
Enrico Scerni
Chairman
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Enriching our competencies
“
An investment in training always pays the best dividends.”
Benjamin Franklin
”
Throughout this report you will see that RINA has expanded its expertise, expanded its services,
expanded its client base and expanded its international outreach in every business area.
2007 was a very successful year for all our Divisions. Group turnover grew 19 per cent to Euro 155,9
million and EBITDA also grew to Euro 25.1 million.That performance was built on a constant
endeavour to enrich and adapt our competencies to the needs of the market. In some areas, such
as power generation and civil engineering, we have bought companies with good track records and
expertise. In other areas, such as managing the consequences of global warming, we have hired
keen and qualified experts and worked with administrations and businesses to develop workable
standards.
Right across the Group we have invested heavily in training and developing our staff. That investment
has paid dividends in our ability to get new accreditations and win high-level contracts to deliver
services and expertise in new areas.
We are now a broad-based group with revenue from the Certification and Industry Divisions growing
to balance a rapidly growing Marine Division. That makes us stronger in a fast-changing global
market. And it benefits our clients, as we can provide them with better services to meet a wider range
of their needs.
2007 was also a year of consolidation for RINA. We have worked hard to integrate the companies
we have bought. We have modernised our core functions and systems to give our operational
Divisions and global network better support. And we have put good local staff in place close to our
customers everywhere. Now we have a strong platform for further international growth in 2008.
Ugo Salerno
CEO
3
Operational highlights
of the Group
Classed fleet (millions of GT)
22,0
Italian Flag
Other Flags
Total
20,0
18,0
16,0
14,0
12,0
10,0
8,0
6,0
4,0
2,0
Classed fleet
The overall tonnage has increased
and exceeds 21.5 million GT.
2002
2003
2004
2005
2006
2007
Certified companies
16000
14000
12000
10000
8000
6000
4000
Certified companies
The Certification Division at the
end of 2007 has certified more
than 15,000 companies.
2000
2002
4
2003
2004
2005
2006
2007
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Trend of Group turnover
Italy
Europe
Far East
Asia
Americas
Africa
150
130
110
90
70
2002
2003
2004
2005
2006
2007
2003
2004
2005
2006
2007
Staff
Italian personnel
Foreign personnel
1200
1000
800
600
Staff
The Group's personnel reflects a
constant upward trend. On 31
December 2007 the number of staff
totalled 1,142 people of over 30
different nationalities, an average age
of 39 and 53% graduated.
400
200
5
The Management Committee
2
4
9
6
7
1
Management Committee
1- FABIO
2- ELVIO
3- ANTONIO
4- FRANCESCO
5- UGO
6- PAOLO
7- ROBERTO
8- DANIELA
9- COSTANTINO
10- DOMENICO
7
ZILIOTTO
BIANCONI
PINGIORI
CHIERICI
SALERNO
GAGLIARDI
CAVANNA
CIBRARIO
BAUM
ANDREIS
3
5
8
10
Industry Division
Quality
Marine Division
Projenia Consortium
Chief Executive Officer
Administration and Finance
Business Development
Planning and Control
Human Resources
Certification Division
The Management Committee
Ugo Salerno, CEO, “Our strong performance was built on a constant endeavour to enrich and adapt
our competencies to the needs of the market.”
Antonio Pingiori, Marine Division Director, “Recruiting and training local people for managerial jobs
across the network, and giving those people the chance to grow, is really important for our owners,
our yards and for us.”
Domenico Andreis, Certification Services Division Director, “The decarbonisation of the atmosphere
is a new industrial revolution which will affect every facet of our lives. We will be certifying the quality
of life, and there is nothing more important than that.”
Fabio Ziliotto, Industry Division Director, “Getting our expertise into projects earlier helps the clients
make better decisions and produces huge savings downstream.”
Paolo Gagliardi, Administration and Finance Director, “Making our core systems more efficient gives
our operating divisions the strong back up they need for growth.”
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Costantino Baum, Human Resources Director, “Our most important assets are our people, and our
biggest challenge is to knit together a fast growing global workforce. Our focus on training and on
empowering local staff is a key part of our global human resources strategy”.
Roberto Cavanna, Business Development Director, “The focus this year has been on getting the best
out of the large number of companies we have bought. Our strategy going forward will be only to buy
companies which act as business multipliers by opening up new client areas.”
Daniela Cibrario, Planning and Control Manager, “Our good financial results highlight the improved
planning and control which links together our growing world-wide network of companies.”
Francesco Chierici, Projenia Consortium Managing Director, “We are now well positioned as a multidisciplinary engineering company with a strong position in the very healthy power generation
market.”
Elvio Bianconi, Management Representative for Quality, “Reducing system documents by simplifying
and sharing procedures and software programs throughout all Group companies will reduce costs
and make access to knowledge easier.”
9
The RINA Group
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11
since 1861...
r
e
h
t
toge lence
l
e
c
x
e
for
Marine
Certification
Industry
’O7 a n n u a l
report
The RINA Group
a strong platform for growth
During 2007 the RINA Group completed a period of rapid growth through acquisition and put in
place a strong platform for organic growth and globalisation in all its markets. The focus was on
improving the core efficiency of the group to provide better support to the operational Divisions and
also to contain costs and improve the financial results.
That focus had three strands: investment in competencies, investment in systems and investment
in property. And the overall results proved the strategy, as the Group turnover grew 19 per cent to
over Euro 155,9 million, while profitability, RINA’s range of competencies and services and RINA’s
presence in global markets grew even faster.
13
The RINA Group
a strong platform for growth
Investing in competency
Investments in controlling shareholdings in three Italian companies - Agroqualità, SOGEA and STI
- were all aimed at enriching the competencies available to RINA’s increasingly diverse clients.
RINA acquired control of Agroqualità, Italy’s leading food certification company, and merged its
Italian food certification activities into the company. Internationally, food certification continued
under the RINA brand, and began expansion as UKAS accreditation for the ISO22000 food safety
management system was achieved.
Forty per cent of shares in SOGEA were acquired, and RINA took over management of the company.
SOGEA specialises in high level training for publicly funded bodies, while RINA Training Factory
has a strong industrial client base. RINA retained the Training Factory brand but merged its
management into SOGEA and was able to widen the range of courses on offer whilst reducing costs.
The final acquisition in 2007 was Studio Tecnico di Ingegneria, a market leader in its specialist civil
engineering fields. The merger of STI and Interprogetti, RINA’s engineering consultancy, produced
a new company, Projenia, able to offer multi-disciplinary engineering services across a wide range
of industries. Projenia also expanded outside Italy with a new office in Mumbai.
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One overseas investment was in the Manila-based Italian Academy Phils Inc, a training school which
will provide top level training and assessment for up to 480 ship crew members per year. RINA has
invested in the Academy along with Italian shipowners’ association CONFITARMA, and Manilabased Elburg Ship Management.
Internally the Group invested in over 60,000 training hours for its growing staff of over 1,100. Skill
transfer programmes funded long-term exchanges of personnel between Italy, Turkey and China in
particular.
No major acquisitions are planned for 2008, but if opportunities arise to acquire specific expertise
in new or related fields, then RINA is both ready and able to further add to its investments in
competency.
15
The RINA Group
a strong platform for growth
Investing in systems
2007 was a year for integrating the 11 new companies brought under RINA control in the last two
years and getting the best out of the investments. Globally that meant creating a new structure of
35 subsidiary companies, each with either regional or industry-specific areas of responsibility, thus
shortening management lines of responsibility.
These companies and the entire Group were bound together more securely by the introduction of
a VOIP communication system. That improved links between offices and companies across the
Group, whilst substantially reducing communication costs.
An investment of Euro 1 million in an Oracle Enterprise Resource Planning system will deliver
improved administration results in 2008, which will be its first full year of group-wide operation.
Further IT investments were made in improving the security and back-up of data, in providing
emergency back-up and the protection of critical services and in protection from IT interference in
the form of hackers and viruses.
Investing in property
In a fast-changing world, RINA took steps during 2007 to ensure that its growing staff had secure,
comfortable and functional places from which to service their clients. In Italy a major extension of
the Genoa head office was completed, adding much-needed meeting rooms, dining rooms and a
roof terrace to the building. At the same time work began on renovating and converting 2,000 sq m
of the old school buildings which are RINA’s neighbour to create new office space. The total Euro
7 million investment in the extension to the current building and the new building next door, which
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will be linked at two levels, will be completed in 2009, allowing all the Divisions to come together in
one efficient space. That will yield cost savings in rent and other outgoings, and enhance synergies
between Divisions and Departments.
Also in Italy, RINA bought office space in both Milan and Naples. The Naples space will create a
new regional headquarters, serving both the strong group of Neapolitan shipowners and industrial
and public clients of the Certification and Industry Divisions across southern Italy.
Outside Italy, RINA created a financial holding sub-group in Rotterdam and invested Euro 10 million
in two floors of a modern office block. That will provide a home to a regional co-ordination centre
for all the RINA activities in northern and central Europe, and also house a new training centre for
the region. The office space in Buenos Aires was doubled with a new acquisition, and
in Shanghai RINA prudently bought expanded office space in order to control
its own property in a very hot market for commercial real estate.
17
marine
Antonio PINGIORI
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Supporting global growth
Classed Fleet (GT)
In 2007 the dominating factor in every aspect of RINA’s Marine Division was global growth. During
27% Tanker
the year RINA classed more ships than ever before on behalf of more owners from more countries.
7% Other/Local
RINA’s order book for newbuildings grew strongly in every sector and RINA was active in more
26% Passenger
countries and more yards than ever before. RINA’s Marine Division provided more innovative services
17% Bulk Carrier
and employed and developed more people of more nationalities in a strongly expanded network
than ever before. All of this created greater opportunities for RINA’s clients and RINA’s staff, while
27% Dry Cargo
making a greater contribution to the overall results of the Group.
Order Book by Area
57% Far East
31% Italy
7% Mediterr.
3% Americas
1% North Europe
Order Book by Shiptype
5% Other
24% Bulk Carrier
24% Tanker
Total
31% Passenger
Total
17% Dry cargo Total
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marine
Supporting global growth
Fleet and order book
At the end of 2007 RINA’s classed fleet reached 3,360 vessels totalling 21.5 million GT. That was
an increase of 8 per cent on 2006. Much of the growth came from newbuildings, which lowered the
average age of the fleet. But there were also significant transfers in of good modern tonnage.
RINA’s focus on quality was demonstrated by excellent Port State Control results, with the Paris
MoU naming RINA as the 2nd best performing classification society in Europe.
Over the year the order-book grew at a faster rate than ever before, finishing the year on 575 ships
totalling 8.85m GT, which is around 40 per cent of the present classed fleet. Much of this increased
order book came from shipowners new to RINA in Greece, China, Turkey, Germany and Indonesia.
The close relationships which RINA built up with emerging Chinese shipyards helped these yards
to offer owners approved designs for smaller bulkers, tankers and multi-purpose vessels. Of the
order book, 57 per cent is now for building in Far East yards, with over 30 per cent in China alone.
Orders for bulk carriers and tankers grew faster than the proportion of ships in the current fleet, with
each taking around 24 per cent of the order book.
New Marine Offices were opened in Croatia, Indonesia, Romania, Sweden and the Ukraine. At the
same time the Plan Approval Centres in Korea and China were substantially strengthened, a Marine
Equipment Office was opened in Germany and moves began to set up a dedicated Plan Approval
Centre in Greece. That entered service in early 2008, providing the Greek owners who now make
up 15 per cent of RINA’s fleet with a local design support facility.
Staff numbers grew to 550 people, with 57 per cent growth outside Italy. In each case special efforts
were made to staff local offices with local people, helping owners and yards to achieve the close
relationships which underpin the nimbleness with which RINA can react to the needs of clients. At
the same time all these staff were trained in RINA’s systems and shown that they have the pathways
to grow and develop themselves in a fast moving company.
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New ways to support owners and yards
RINA’s special expertise in passenger shipping, and its special focus on the environment was
demonstrated by the innovative Green Energy service which it developed in cooperation with Costa
Crociere. Green Energy is based on an Energy Consumption Index designed to monitor and minimise
energy generation and use on board ship. Now in use with Costa Crociere and Corsica Ferries, it is
also proving of interest to cargo ship owners keen to cut energy use and emissions. Green Energy
will give owners significant savings in fuel consumption and provide an important reduction in
greenhouse gas emission.
During 2007 RINA joined forces with leading cruise lines and shipyards as a founding member of
the Cruise Ship Safety Forum. The Cruise Ship Safety Forum (CSSF) is a consortium of cruise ship
operators, ship yards, classification societies, and the Cruise Lines International
Association (CLIA) who have come together to advance cruise ship safety in
a co-ordinated and focused manner. RINA is a member of the
steering committee and believes the CSSF will help it to achieve
industry consensus on developing cost-effective ways to
allow large passenger ships to comply with the new
IMO Safe Return to Port Regulations.
21
marine
Supporting global growth
Sharing Expertise
During 2007 sharing expertise was a major focus for RINA, which began a programme to train
Carnival Corporate Shipbuilding’s (CCS) newbuildings superintendents. The three-year contract will
provide Carnival’s inspection teams with training in health, quality and safety, CCS organisation,
and a wide range of technical subjects.
RINA also invested in crew training in a bid to help owners overcome the major challenge of manning
their growing fleets. It took a share in the Manila-based Italian Maritime Academy Phils. Inc., a
training school which will provide top-level training and assessment for crew members. RINA has
invested in the Academy along with Manila-based Elburg Ship Management. The Academy's
scientific committee is chaired by Confitarma.
Coatings were a major new issue for yards, owners and class in 2007. So RINA joined forces with
leading UK-based coatings testing company Bodycote to launch a global Corrosion Prevention and
Coatings (CPC) programme. The heart of the programme is a CPC Training Course for shipyard and
shipowner staff, and testing facilities for type-approval of coatings according to the new IMO
requirements.
RINA took over the chairmanship of the Tanker Structure Cooperative Forum, which includes oil
majors, classification societies and tanker operators, focusing on matters relevant to tanker design
and maintenance.
At a higher level RINA is also backing a new course jointly with Shanghai Maritime University, to
deliver a Master’s degree in Ship Supervision and Management.
And RINA did not forget its core customers in Italy. It expanded its Naples office to support the
local shipowners who were busy reinforcing their international investments in fleet renewal, and it
set up a dedicated help line with CONFITARMA, able to give Italian shipowners the immediate
technical and regulatory advice they need in a rapidly changing market and global environment.
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Yachts
During 2007 RINA’s dominance of the mega yacht market extended. It now classes over 1,200 yachts.
Its order book for new vessels grew both within Italy and internationally to over 400 vessels. Its global
market share was over 35 per cent, with 88 per cent of the Turkish market, 68 per cent of the Italian
market, 55 per cent of the Chinese market and 85 per cent of the UK market by country of build.
RINA’s launch of new rules for charter yachts in 2006, and its launch of a special environmental
notation Green Star for yachts, led to a sharp increase in business. This was supported by the
opening of a Centre of Excellence for charter yachts in the UK and a specialised Yacht Plan Approval
Centre in Turkey.
In January RINA classed the first of Sunseeker’s new 37 Metre mega yachts. The 37 Metre is
the largest semi-custom production motor yacht ever to be built in the UK.
Luciano Benetton's new yacht, Tribù, was launched in July at the
Mondomarine Shipyard in Savona. The 50 m expedition
vessel was the first recreational craft in the world to
obtain RINA Green Star Yacht environmental
certification. That allows the yacht to operate
practically without emission in sensitive
areas.
A new trend was the ordering of
passenger yachts certified to carry up
to 36 people. RINA is classing a
number of these buildings in Italy,
Turkey and China. In September
RINA became member of the
working group for the revision of
MCA LY2 Code for Large
Commercial Yachts.
During
2008
a
Yachting
Academy providing high-level
courses for yacht owners and
yards will be launched.
23
marine
Supporting global growth
Navy Ships
Classification of warships and support services to navies around the world was an important growth
area for RINA during 2007.
Work began on the classification of 10 FREMM frigates for the Italian Navy, while orders for 4 Mine
Countermeasure Vessels (MCMV) for the Finnish Navy, 4 Offshore Patrol Vessels (OPV) for the Iraqi
Navy and a replenishment ship for the Indian Navy grew the order book. New Rules for Fast Patrol
Vessels launched in early 2007 led to contracts to class 28 patrol vessels for the Italian authorities.
Meanwhile, the Italian aircraft carrier Cavour is under delivery by Fincantieri to the Italian Navy,
built to RINA Naval class, along with the Horizon-class frigate Andrea Doria and 11 fast patrol vessels
for the Italian Coast Guard and other governmental bodies.
Expert support outside of classification was much in demand, and a major job was a survey to map
the asbestos in the entire Italian fleet. There was also work from the Indian and Peruvian navies on
specialised issues.
Voluntary certification for compliance of the entire Italian Navy fleet with the requirements of the
MARPOL convention continued and the sail training ship Amerigo Vespucci, Goodwill Ambassador
for UNICEF Italian Committee, was RINA certified for prevention of pollution by oil, sewage and
garbage.
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Research and development
Research and development continued to have a high profile in RINA’s Marine Division during 2007,
with the Group devoting over 8 per cent of its turnover to R&D. Internally, the research programme
was sharpened and focused into new areas, especially the human element.
Externally, RINA took the lead in Italy in establishing a strategic research agenda which brought all
the major Italian industrial and academic research organisations and the government onto a
common research platform with shared objectives and better ways to share research.
A key new programme was to develop a paperless ship, which would substantially reduce crew
stress levels, improving safety and quality of operations.
A very large three-year project to define procedures for paints and coatings
was initiated with industrial partners. The project covers the protection
of both steel and other materials and also the aesthetic
appearance of yacht paintwork.
Risk-assessment projects included research into
safe use and storage of hydrogen aboard ship
and risk-based alternative design.
Two new programmes to develop
decision support systems were
initiated, one for managing heavy
weather aboard ship, the other to
manage partial systems failures
during operation.
Environment centred research
focused on technology to
monitor
and
control
air
emissions (NOx, SOx, CO2) of
ships.
25
certification
Domenico ANDREIS
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Anticipating society’s needs
Certification and verification services provided by RINA’s Certification Division continued to grow in
Certified organisations
both volume and scope during 2007. The Division diversified its services and increased its range
12000
of competencies to cover new fields. Income for the Division has now grown sixfold in ten years.
10000
Initially, most of the work was certification of management systems, but in 2007 revenue was evenly
8000
split between management certification and other services. The number of certificates issued in
2007 grew by 15 per cent, but that does not tell the whole story, as training, advisory and non-
6000
certificated auditing also grew strongly.
4000
2000
The biggest challenge for RINA’s Certification Division was to align its competencies and services
2002
2003
2004
2005
2006 2007
to the major strategic and industrial priority of the day – tackling global warming. The decarbonisation
of the atmosphere has created a major new demand for verification, assistance and training in good
300
practice. In 2007 RINA invested in acquiring knowledge and competencies and in
250
understanding the real needs of businesses and authorities in managing
200
energy use.
150
100
At the same time RINA’s services to management were
50
extended to cover new areas of social accountability
and good governance. RINA’s training activities
2002
2003
2004
2005
2006 2007
received a major boost with the merger of
120
SOGEA and the Training Factory.
100
80
60
40
20
2002
2003
2004
2005
2006 2007
Environment
Quality
Ethics
Occupational Safety
Agroindustrial and health rules
Automotive
27
certification
Anticipating society’s needs
RINA’s services to manufacturers and consumers were extended with the integration of Agroqualità
into the food certification business, new accreditations in the railway sector and system certification
for key healthcare providers.
Outside Italy, the certification business grew in all sectors. Brazilian certification grew by 30 per
cent and an improved presence in Turkey and Romania increased turnover there. In India RINA
showed world leadership with the first Social Accountability certification of a regional authority.
Energy and the environment
Equipping itself to verify the proper management of energy use and the environment was the most
exciting area of development for RINA’s Certification Division during 2007. It focused on three areas:
adding value to administrations and businesses by verifying greenhouse gas emissions, adding
value to property by certifying and verifying energy performance and energy-saving enhancements,
and adding value for manufacturers by certifying the energy performance of materials and products.
During 2007 RINA certified 160 companies under the European Emission Trading Scheme (ETS)
and was the only accredited company in Italy to provide verification in all industrial sectors. It put
in place a world first with its scheme to validate greenhouse gas emission over the whole territory
of the Province of Siena. Two new competencies acquired during 2007 will significantly increase
greenhouse gas certification during 2008. RINA worked with the United Nations Framework
Convention on Climate Change (UNFCCC) to obtain accreditation under its Clean Development
Mechanism (CDM) programme. That accreditation will become active in early 2008, allowing RINA
to proceed with many CDM contracts to certify greenhouse gas emission reduction projects in Africa,
Colombia and India.
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RINA will be the only Italian company accredited by both the EU and the UN for emissions
verification. During 2007 RINA developed the technical standards and began contacts with
administrations in Italy to explain how the systems work and how they will benefit them. In 2008 it
will set up a voluntary national online registry which will facilitate the trading of Verified Emission
Reduction (VER) credits.
The energy performance of buildings came under the spotlight in 2007 when it became compulsory
in Italy for major buildings to have an Energy Performance Certificate. RINA is the market leader in
this field, certifying over 1 million sq m of properties, including the property portfolios of major
owners such as Generali Properties and BNL/BNP Paribas.
Acting for Italian steel company Marcegaglia, RINA provided certification for both safety
and performance of solar photovoltaic panels to IEC61646 and EN61730
standards. These panels will be installed on buildings in Italy and sold
globally. Energy certification of products will grow strongly
during 2008.
29
certification
Anticipating society’s needs
Corporate organisation, social responsibility and know-how
During 2007 RINA continued to be a global provider of management certification, with 11,390
ISO9001 certificates. But it went beyond management systems, moving into new areas of support
to banks, consolidating its services in social accountability and as a global training provider.
RINA’s Social Accountability unit provides ISO SA 8000 social accountability auditing globally, social
sustainability auditing for Italian administrations, second party verification of company procurement
systems and governance services, especially in the anti-bribery field.
As the Italian market leader in Social Accountability auditing in 2008, RINA issued 150 per cent
more SA8000 certificates than in 2006. It was third in the market in India but growing strongly and
during 2008 it will become the second largest provider of this service globally. One notable world
first was to provide SA8000 auditing and certification to the office of the District Collector, Medak,
India. The bulk of the client base was global textile and automotive companies.
Social sustainability auditing was a new business in 2007. Italian administrations are now required
to demonstrate to their citizens that they are committed to improving the environmental and social
aspects of their quality of life. RINA developed a service to meet this need and ran a pilot project with
an administration in Liguria. It provides third party certification of record keeping and communication
with the public. The service will be rolled out to all of Italy’s administrations during 2008.
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Second party verification, helping companies to verify that their own systems work well, and that they
meet trade standards, grew tenfold in 2007. Clients included major corporations such as Levi's,
Migros, VF Corporation and Billabong. The main customers are from the textile and food industries
and RINA’s ability to cover the whole global supply chain was key to delivering this business. To that
end RINA extended its network to cover Malaysia, Thailand, Pakistan, Bangladesh, Mauritius,
Tunisia and Egypt.
Two important standards in the food trade are BSCI, set by North European retailers, and 4C, set
by the coffee trade. RINA ran a pilot project with Spanish food producers under the BSCI scheme
and was the first organisation ever to carry out a 4C audit in Brazil.
In the corporate governance area, RINA established an anti-bribery auditing programme
for Italy’s energy major ENI. Following a pilot project it began auditing ENI
companies globally and is now working with other major Italian
companies such as Costa, Montanari and Finaval to set up antibribery programmes. It was also contracted to audit
Deutsche Post’s activities in Italy for the same
service.
For banks, RINA provided a new service,
auditing data flow management to Italy’s
central bank requirements on behalf
of Banca Sella.
31
certification
Anticipating society’s needs
When it came to sharing know-how, RINA repositioned itself by taking control of one of Italy’s leading
training companies, SOGEA. SOGEA focuses on providing executive master’s courses, while RINA
Training Factory branded courses still focus on private clients. By merging the management and
courses offered by the two companies, while retaining the brands, RINA delivered important
economies of scale while improving the range of courses on offer. Results were up 50 per cent and
a strong platform for growth both inside Italy and internationally was created. SOGEA will provide
undergraduate, postgraduate and executive courses in Italy, while RINA Training Factory will focus
on technical courses and global delivery of know-how. Performance in Turkey, Romania and Spain
was strong in 2007, and in 2008 training will be rolled out in China, Argentina and Brazil.
Products, consumers and public health
The merger of RINA’s food certification activities with those of Agroqualità led to a doubling of activity
in this area. For the future, Agroqualità will provide food certification within Italy, while the RINA
brand name will be used internationally. During 2007, UKAS accreditation was obtained for
ISO22000 food safety management system auditing, and training was provided for auditors in Turkey,
Romania, Italy and India. The first audits were for dried fruit producers in India and Turkey. In Italy
the full traceability of high-quality wine from the Piedmont region was certified, as was mineral water
for the Sangemini Group, amongst others.
32
’O7 a n n u a l
report
In the public health sector RINA completed a major risk management certification scheme for the
Garda Hospital administration, and extended quality management services to private hospitals
serving the public sector. Quality management certification was provided to a number of hospitals
and also to the Italian Bone Marrow Donor Registry and the Italian Hospital Blood Bank.
RINA’s certification and technical support for railways grew with accreditation by UNIFE for the
International Railway Industry Standard (IRIS). The first certificate was issued to MERMEC, a rolling
stock company, and work began with 12 more companies which will achieve certification in 2008.
On behalf of high-speed train operator NTV, RINA provided technical support analysis and evaluated
the bids from 4 major manufacturers to supply 25 high-speed trains.
Certification of the major infrastructure and signalling systems for the Brenner Basis
Tunnel to European Interoperability Standards continued, while internationally
RINA provided safety verification for the Bucharest Metro and a
technical comparison for the Houston Light Rail Vehicle project.
33
industry
Fabio ZILIOTTO
’O7 a n n u a l
report
Increasing
the value of expertise
During 2007, RINA’s Industry Division grew strongly through a mixture of organic growth,
FACTS & FIGURES for
acquisitions and a broadening of both the range of services provided and the client base.
RINA industry
In the established oil and gas, construction and power generation sectors RINA’s clients began to
10,000 km of pipelines
seek expertise earlier in the projects, increasing the value of the expertise and helping them to make
better decisions.
250
offshore facilities
70
power plants
The acquisition of engineering company STI and the restructuring of STI and Interprogetti enabled
More than 3.6
RINA to provide a full multi-disciplinary engineering service across a range of industries, especially
civil engineering, energy and marine.
bn euro of public works whose
designs have been validated by
Banks turned to RINA for more support for large projects and RINA reinforced its
our engineers
leadership in the BOT (Build, Operate and Transfer) sector for marinas in
More than 100,000
sqm of offices whose facility
management is under our control
60
Italy. And RINA extended its unique mix of financial, contractual and
technical expertise into a new business area by providing
support to international funding institutions. Contracts in
Croatia, Algeria and Kazakhstan got the new business
line off to a strong start.
port infrastructures system
development
35
port infrastructures maintenance
2,300
security mangers trained
60%
of activity performed abroad
35
industry
Increasing
the value of expertise
Oil and Gas
In a busy international energy market, RINA Industry’s Oil and Gas team had to increase its staff by
50 per cent during 2007 to meet sharply increased demand for its services. Much of that demand
was for feasibility analysis, simulations and design verifications upstream in energy projects. RINA
was able to deploy its expertise to assess safety margins and identify key facets of projects early in
the process, saving clients large sums of money.
The biggest client remained Italy’s energy major ENI, for whom RINA carried out engineering review
and certification services for new platforms and requalification and risk assessment for units in
service.
The Trans Anatolian Pipeline turned to RINA for engineering expertise, and marine warranty work
covered other pipeline projects in Italy and offshore Congo. RINA-V, the new joint venture with
Velosi, opened an office in Abu Dhabi and acquired the necessary accreditations to begin providing
verification services in the Gulf Area in 2008.
At the same time RINA strengthened its position in several established international oil and gas
markets as well as Kazakhstan, Croatia, Tunisia, Libya, Egypt and Congo, where activities increased
substantially.
RINA consolidated its position as the leading centre of expertise in Italy for offshore LNG projects.
The two largest offshore LNG projects in Italy continued to demand expertise from RINA. On behalf
of ExxonMobil, RINA was the control engineer authority for the Rovigo offshore terminal, the largest
concrete LNG terminal built yet. And for the Offshore Livorno Terminal, which involves conversion
of a tanker to an FSRU, RINA provided full owner engineering services including ship handling
simulations and logistics studies to ensure the best system configuration. Feasibility studies for the
proposed Alto Lazio offshore LNG terminal also continued, examining a possible onshore
regasification solution with a cryogenic pipeline from the terminal. Further simulations were carried
out for the Porto Empedocle LNG terminal.
A departure from the oil and gas work which employed the same simulation and feasibility expertise
was the continuing major study into the logistics of the proposed Porto Tolle offshore coal
transhipment project.
36
’O7 a n n u a l
report
Power generation
Revenues for RINA’s power generation team increased by a factor of three during 2007 as its
expertise in combined cycle power plants was sought after.
The first major contract was to provide owner engineering services to Italian power company
SORGENIA, which is building an 800 MW combined cycle power plant at Lodi, near Milan. RINA
is providing engineering consultancy on project management and design. Construction is scheduled
to begin in 2008, with RINA providing continuing engineering support.
The second major contract in 2007 was for Italian oil company ERG. It employed RINA to provide
supervision during construction and also commissioning of the plant for a 450 MW combined cycle
power plant which it is building in Sicily.
Polaris, the joint venture company with Ansaldo Energia, consolidated
its activities in 2007 and was fully employed providing
engineering support mainly to Ansaldo-led projects.
37
industry
Increasing
the value of expertise
Infrastructures and Real Estate
Notwithstanding a steady demand for verification of design and construction of buildings and public
infrastructure nationally, RINA's revenues in this market sector soared in 2007 as it sharply
increased its market share.
Verification of the design of the Euro 1.8 billion Quadrilatero Marche Umbria Link, a major new road
through the Apennines mountains, was entrusted to RINA by the Italian road authority ANAS.
Validation of the Euro 1.7 billion road infrastructure on the Tirreno-Brenner link was entrusted to
RINA by the concessionaire, Autocamionale della Cisa. The presence of RINA in the public road
sector was significantly strengthened by the awarding of the contract for the definition of the financial
plan of the Biella – Santhia new toll road link by Regione Piemonte.
A growth area for RINA during 2007 was the on-site insurance risk control and works supervision
of major construction projects on behalf of insurance companies. Italian major insurer INA Assitalia
(Generali Group) entrusted RINA with overseeing the construction of a new lane on the A24/25
Rome–Pescara motorway.
A similar job was the supervision on behalf of Dutch developer ForumInvest of the construction of
one of Italy’s biggest shopping malls at Teramo, Abruzzo. The project was run to a very strict time
schedule to successfully enable opening before the critical Christmas period in 2007.
A new service was the provision of facility management auditing on behalf of property owners. H3G,
one of Italy’s major mobile phone operators, employed RINA to audit the contractual performance
of its facility managers at 20 offices across Italy. RINA was also entrusted to act as auditor of the
facility management services outsourced by the public administrations in five Italian Regions
(Liguria, Lombardia, Emilia Romagna, Calabria and Sicily).
In the growing field of marina development RINA reinforced its position as the leading centre of
expertise for Build, Operate and Transfer projects. The biggest project was working for BNL/BNP
Paribas on the 800-berth, Euro 80 million Marina di Archimede in Syracuse, Sicily.
38
’O7 a n n u a l
report
Engineering Services
The acquisition of Studio Tecnico di Ingegneria gave RINA the opportunity to reorganise and broaden
its engineering services. That led to a better definition of services to clients, a concentration of
expertise and a near doubling in annual turnover.
STI’s particular expertise in civil engineering in the power generation sector was merged with the
power generation and industrial team of Interprogetti to produce a new multi-disciplinary engineering
services company, Projenia.
The marine business and expertise of Interprogetti was concentrated in Genoa in Interprogetti Marine
and its two subsidiary companies, VERIFY and Studio Engineering. VERIFY provides marine
insurance activities while Studio Engineering is a joint venture with the Mariotti shipyard.
It was fully occupied during 2007 with the design work for three cruise ships
to be built by the Mariotti yard.
Projenia opened an office in Mumbai, India. The initial
intention is to tap into the base of engineering talent
available in India, so increasing the capability of
Projenia to handle large projects. Future
plans are to extend Projenia’s engineering
services into India.
39
industry
Increasing
the value of expertise
In Europe, Projenia got off to a good start by entering into a five-year partnership with German
engineering giant Siemens. The partnership will entrust the design work for one or two major new
power plants every year to Projenia. The first plant is to be built at Ghent, Belgium.
A long-term agreement with Alstom Power saw Projenia enter a joint venture with UK-based Jacobs
for engineering work on 10 new gas power stations to be built in the UK. Another agreement with
Italian energy major ENEL was for Projenia to provide engineering support for the construction of a
nuclear power plant in Slovakia.
International funding institutions
Technical and economic support to international funding institutions and donors was a new business
area for RINA during 2007. Its mix of verification capability, technical expertise and commercial
understanding, all delivered from an international network, allowed it to participate in several
international consortia and through them to win 4 major contracts during the year.
In Croatia RINA is helping to design and implement a Vessel Traffic Management and Information
System (VTMIS). The project involves RINA in detailing the design development of the Croatian
VTMIS, designing the data management system to back the VTMIS and recommending the
amendments needed to national legislation to provide the optimum legal and organisational
framework.
40
’O7 a n n u a l
report
In Algeria RINA began a major study. This contract is part of the implementation of the programme
to improve the legislative and institutional framework for better regulation of the transport sector
and optimal use of transport infrastructure. RINA will assess the current condition of the Algerian
maritime system, review port security plans in 11 ports, review the feasibility study and preliminary
design of a new VTMIS, prepare the job profiles and responsibilities for VTMIS and Security staff and
prepare a training scheme to bring all staff and operators up to international standards.
A project to facilitate the trade and transport of perishable goods in the Central Asia region turned
to RINA for assistance. Specific tasks include developing centres for the testing and certification of
transport units and equipment for the transportation of perishable goods, the development of
licensing systems for transport operators and improvement of the performance of road transportation
at a regional and national level.
RINA is also involved in the technical, socio-economic and
supply-demand study of the transport sections of the
FERRMED Great Rail Network (Scandinavia-Rhine-Rhone
Western Mediterranean). RINA is carrying out a
detailed analysis of the rail infrastructure and is
in charge of defining precisely the benefits of
the modernisation of the FERRMED Great
Axis Rail Network as it refers to the
Italian area.
41
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report
Summary of report
to shareholders
The 2007 financial year produced a positive trend in turnover, which showed an increase of 20 per
cent compared to 2006. Gross profit reached € 16 million, notwithstanding an increasingly
competitive market, particularly in the marine sector, and the difficult economic situation in general.
A net profit of € 7.3 million was recorded, against € 5.8 million the previous year.
A € 26 million jump in turnover was achieved largely by virtue of increased work in the marine,
certification and industrial sectors, and as a result of the contribution made by the new companies
which have joined the Group during the past financial year.
In the course of 2007, the Group continued to pursue its investment plan for new products,
information technology, human resource training, internal quality control and image, as well as for
initiatives required to strengthen and maintain technical professionalism and the capability to
compete internationally.
Group personnel (1,142 persons on 31 December 2007) benefited from training activities totalling
59,000 hours, and research and development activity totalling 130,000 hours.
The Marine Division recorded a turnover of about € 80 million (52 per cent of the Group total).
In particular:
•
activities relevant to newbuildings and testing for about € 29 million;
•
proceeds from vessels in service amounted to € 36 million;
•
activities of the marine technical sector amounted to about € 5,4 million;
•
activities related to classification of pleasure boats contributed about € 7,4 million;
•
investments in products additional to classification led to the development of new risk analysis
services focused on the environment and energy consumption.
The Certification Division showed consolidated earnings of € 40,1 million, growing 21 per cent
compared with 2006, based on an increasingly greater diversification of services on offer.
Among the most significant growth sectors were Ethical and Safety & Health Certification in the
workplace (+20% compared to 2006) and audit on 231/2001 L.decree models (+70% compared
to 2006).
43
Summary of report
to shareholders
In this context the following two key factors are reported:
•
the completion of the activities to obtain the CDM (Clean Development Mechanism)
accreditation with the United Nations Framework Convention on Climate Change;
•
the move into the energy certification of buildings.
The Industry Division reported turnover of € 33 million, an increase of 45 per cent compared with
2006. Highlights included the strengthening of the Power Generation activity, and the growth of the
Infrastructure and Buildings business line, which developed new activities such as technical control
and technical advisory services for major infrastructural projects on behalf of banks and promoters.
For Board of Directors
Enrico Scerni
Chairman
44
’O7 a n n u a l
report
Financial highlights
TURNOVER (thousands of €)
Turnover
Difference between value and costs of production
Net result
BALANCE SHEET (thousands of €)
Total fixed assets
Total current assets
TOTALE ASSETS
Total shareholders' equity
Payables
TURNOVER (millions of €)
31/12/2007
155.912
15.507
7.277
31/12/2006
130.091
12.580
5.817
44.874
155.436
202.318
59.327
113.925
32.583
129.332
163.777
52.048
84.083
EBITDA (millions of €)
160
25
150
140
20
130
120
15
110
100
90
10
80
70
5
60
2002
45
2003
2004
2005
2006
2007
2002
2003
2004
2005
2006 2007
Notes to the Consolidated
Financial Statements
at 31 december 2007
Structure and contents of the
Consolidated Financial Statements
Consolidation area
These financial statements comprise the
The
financial statements of RINA S.p.A., the parent
companies directly or indirectly controlled by
company, together with those of the Italian and
RINA S.p.A.
foreign companies which are directly or
Compared
indirectly controlled by RINA S.p.A..
consolidation area changed as follows: S.T.I.
The Balance Sheet, the Income Statement and
S.r.l., Interprogetti Industria S.r.l., GET S.r.l.,
the Notes were drawn up in thousands of euros;
S.S.M. S.r.l., Sogea S.c.r.l., Nuova Industry S.r.l.,
the income and assets of the year are compared
Agroqualità S.r.l., PT Rina Indonesia, Rina
with the figures from the previous year. The
(Shanghai) Quality and Technical Services Co.
financial statement at 31 December 2007, the
Ltd. all established or become operative during
financial year-end of all the companies included
the year.
in the consolidation area, approved by
Accounting principles applied by the individual
Shareholders’ Meetings of each company and
companies are consistent with those of the
subject to audit by an independent auditing firm,
parent company.
were used to draw up the consolidated financial
statements.
46
consolidation
with
the
area
comprises
previous
year,
the
the
’O7 a n n u a l
report
Consolidation Area
Name
Parent
Company
Controlled
companies
Italy
European
Union
Loacation
RINA S.p.A.
Genoa
EUR
30.192.800
Rina Industry S.p.A.
Genoa
EUR
2.500.000
SOA RINA Organismo di Attestazione S.p.A.
Genoa
EUR
520.000
Interprogetti Genova S.p.A.
Genoa
EUR
335.700
Istituto Tecnologie Avanzate S.p.A.
Alessandria
EUR
76.500
Rina Training Factory S.r.l.
Genoa
EUR
100.000
R.D.I. S.r.l.
Genoa
EUR
600.000
Polaris S.r.l.
Genoa
EUR
100.000
Verify S.r.l.
Genoa
EUR
50.000
Interprogetti Industria S.r.l.
S.T.I. S.r.l.
Nuova Industry S.r.l.
Genoa
Genoa
Genoa
EUR
EUR
402.840
1.000.000
1.105.000
Sogea S.c.r.l.
Genoa
EUR
397.510
Agroqualità S.r.l.
Genoa
EUR
2.000.000
GET S.r.l.
Genoa
EUR
10.000
SSM S.r.l.
Genoa
EUR
20.000
Registro Italiano Navale Finland O.Y.
Helsinki
EUR
16.818
Registro Italiano Navale (Hellas) E.p.E.
Pireus
EUR
58.694
Registro Italiano Navale Netherlands B.V.
RINA Germany B.V.
RINA Denmark B.V.
RINA Denmark A.p.S.
RINA Sweden A.B.
RINA U.K. Ltd.
Rotterdam
Rotterdam
Rotterdam
Roskielde
Goteborg
Portsmouth
EUR
EUR
EUR
DKK
EUR
GBP
10.000.000
18.000
18.000
250.000
35.000
35.000
Crescendo Holding Ltd.
London
EUR
1.900.000
Rina Iberia S.L.
Rina Poland Sp. z o.o.
Barcelona
Stettin
EUR
PLN
300.007
50.000
Rina Romania S.r.l.
Bucarest
RON
70.770
Rina Industry B.V.
Rotterdam
EUR
18.000
Rina Real Estate B.V.
Rotterdam
EUR
1.000.000
Istanbul
TRY
3.340.400
Cairo
EGP
50.000
Pula
HRZ
200.000
RINA Brasil Servicos Tecnicos Ltda.
Rio de Janeiro
BRL
2.320.146
RINA U.S.A., Inc.
Fort Lauderdale
USD
50.000
RINA Hong Kong Ltd.
Hong Kong
HKD
500.000
RINA - V Ltd.
Hong Kong
HKD
160.000
RINA India Pvt. Ltd.
Mumbay
INR
18.100.000
Yizhong M.C.S. Co.Ltd.
RINA Denizcilik ve Belgelendirme Ltd. Sirketi
Europe,
Middle East
RINA Egypt L.L.C.
and North Africa
Rina Jadran D.o.o.
Americas
Currency Company
capital
Asia
Shanghai
CNY
4.033.700
Rina Industry L.L.P.
Almaty
Rina (Shangai) Quality & Technical Services Co. Ltd. Shanghai
KZT
CNY
65.250
780.890
PT Rina Indonesia
IDR
913.150.000
Jakarta
47
Shareholding
Registro Italiano Navale
Rina Industry S.p.A.
RINA S.p.A.
RINA S.p.A.
Rina Industry S.p.A.
Crescendo Holding Ltd.
RINA S.p.A.
Soci Terzi
RINA S.p.A.
RINA S.p.A.
Soci Terzi
Rina Industry S.p.A..
Soci Terzi
Interprogetti Genova S.p.A..
Soci Terzi
Crescendo Holding Ltd.
Nuova Industry S.r.l.
Rina Industry S.p.A.
RINA S.p.A.
Soci Terzi
RINA S.p.A.
Soci Terzi
R.D.I. S.r.l.
Soci Terzi
R.D.I. S.r.l.
Soci Terzi
%
Ownership
99%
1%
100%
99%
1%
100%
60%
40%
100%
50%
50%
50%
50%
50%
50%
100%
100%
100%
40%
60%
50%
50%
75%
25%
70%
30%
Registro Italiano Navale Netherlands B.V. 100%
RINA S.p.A.
99,95%
Rina Industry S.p.A.
0,05%
RINA S.p.A.
100%
Registro Italiano Navale Netherlands B.V. 100%
Registro Italiano Navale Netherlands B.V. 100%
Registro Italiano Navale Netherlands B.V. 100%
Registro Italiano Navale Netherlands B.V. 100%
RINA S.p.A.
100%
Rina Industry S.p.A.
50%
Charles Taylor Consult. Ltd.
50%
RINA S.p.A.
100%
Registro Italiano Navale Netherlands B.V. 100%
Registro Italiano Navale Netherlands B.V.
99%
RINA S.p.A.
1%
Rina Industry S.p.A.
95%
Registro Italiano Navale Netherlands B.V.
5%
Registro Italiano Navale Netherlands B.V. 100%
RINA S.p.A.
99,9%
Rina Industry S.p.A.
0,1%
RINA S.p.A.
99%
Rina Industry S.p.A.
1%
Registro Italiano Navale Netherlands B.V.. 100%
RINA S.p.A.
Rina Industry S.p.A.
RINA S.p.A.
99,99%
0,01%
100%
Registro Italiano Navale Netherlands B.V.. 98%
Rina Industry S.p.A.
2%
Rina Hong Kong Ltd.
50%
Soci Terzi
50%
RINA S.p.A.
99%
Rina Industry S.p.A.
1%
Rina Industry S.p.A.
50%
Soci Terzi
50%
Rina Industry B.V.
100%
Rina Hong Kong Ltd.
100%
Registro Italiano Navale Netherlands B.V.. 95%
Rina Industry B.V.
5%
Major
Subsidiary Companies
ITALY
RINA INDUSTRY S.P.A.
The sub-holding company for the industrial sector operates mainly through three business lines, Oil
&Gas, Power Generation and Infrastructure & Building.
INTERPROGETTI GENOVA S.P.A.
The company is controlled through Crescendo Holding Ltd., a non operative joint-venture.
During the year the company split its industrial activities and set up a new company named
Interprogetti Industria S.r.l. During the year Crescendo Holding Ltd. acquired the residual 20%
shares of Interprogetti Genova and Interprogetti Industria thus achieving full ownership of these two
companies.
Interprogetti Genova S.p.A., after the split, continues to operate in the marine consultancy and
engineering fields.
INTERPROGETTI INDUSTRIA S.R.L.
The company was set up during the year following the split of Interprogetti Genova S.p.A., as
described above. It is owned by Crescendo Holding Ltd.
The company operates in the civil and industrial engineering fields, through the Projenia consortium
set up with related company STI S.r.l..
S.T.I. S.R.L.
The company operates in the civil engineering field and was acquired during the year by Nuova
Industry S.r.l., fully owned by RINA Industry S.p.A., in order to develop synergies within the RINA
group companies involved in the industrial sector.
POLARIS S.R.L.
Set up in January 2006, and 50% owned by RINA Industry S.p.A. it provides technical services for
research, study, analysis, support for organisational processes and procedures for the restructuring
and the improvement of business management.
ISTITUTO TECNOLOGIE AVANZATE S.R.L.
The company performs laboratory and sensing tests in the food sector, in particular for chain stores
and hotel chains.
RINA TRAINING FACTORY S.R.L. – SOGEA S.C.R.L.
The company provides advanced and integrated training services including the design and provision
48
’O7 a n n u a l
report
of courses and the organisation of seminars and conferences and assistance to corporate
re-organisational projects. During 2007, the operating activities of RINA Training factory were
transferred to the company Sogea S.c.r.l., in which the Group acquired a 40% share but with control
guaranteed by contract. The move was made in order to integrate the professional skills of the two
entities for the purpose of developing the training business.
AGROQUALITÀ S.R.L.
The company operates in the food certification and audit sector. The company entered the Group
during 2007, and RINA’s activities in this sector were moved to Agroqualità S.r.l after the Group
acquired a 50% share of the company.
ABROAD
CRESCENDO HOLDING LTD.
Based in London it was set up jointly by Rina Industry S.p.A. and Taylor Consulting Plc. During the
year the company acquired the residual 20% of Interprogetti Genova S.p.A. and Interprogetti
Industria S.r.l.
RINA GERMANY B.V.
The company, which became operational during the year, is active in the marine sector in Germany
and deals mainly in testing and inspections of materials and components. In 2008 the company will
invest further in local activities by moving the office and undertaking plan approval activities in
Hamburg.
RINA C.I.S. B.V.
The company became operational during the year through a branch in Ukraine (Odessa).
RINA (SHANGHAI) QUALITY & TECHNICAL SERVICES CO. LTD.
The company was set up during the year to develop certification activity in China and invested in a
new building for the operational office in the country.
PT RINA INDONESIA
The company, based in Jakarta, was set up during the year to develop marine activities in Indonesia.
RINA –V TD.
The company was set up during the year as a joint venture of RINA Hong Kong Ltd. and Velosi Ltd.,
a company based in Malaysia and operating in the industrial certification sector.
49
Consolidated
Balance Sheet - Assets (thousands of €)
31-12-2007
31-12-2006
B) Fixed Assets:
• Intanbigle fixed assets
- Start-up expenses
- Patents, rights and intellectual property
- Goodwill
- Assets under construction and advances given
- Other intangible assets
Total
37
2.218
1.403
1.636
2.769
8.063
14
2.825
25
278
1.656
4.798
• Tangible fixed assets
- Land and buildings
- Industrial and trade equipment
- Other tangible assets
- Assets under construction and advances given
Total
15.039
590
2.740
126
18.495
7.031
381
2.295
406
10.113
• Financial fixed assets
- Investments in shareholdings:
- subsidiaries
- other shareholdings
110
104
186
145
214
- Long-term receivables
- from others
- within 12 months
- Marketable securities classified as fixed assets
- Own shares
Total
Total Fixed Assets (B)
C) Current Assets
• Inventory
- Work-in-progress
• Short-term receivables
- Customers
- Subsidiaries
- Parent Company
- Tax authority
- Deferred tax assets
- Others
Total
- within 12 months
- within 12 months
- within 12 months
- within 12 months
- within 12 months
- within 12 months
• Marketable securities classified as current assets
- Marketable securities
• Cash and cash at banks
- Cash at banks
- Cash
Total
Total Current Assets (C)
D) Prepayments and Accrued Income
Various
TOTAL ASSETS
50
1.709
331
1589
1.709
16.091
302
18.316
1.589
15.450
302
17.672
44.874
32.583
55.274
37.793
55.021
0
817
3.057
1.388
2.110
62.393
44.156
0
686
1.806
985
2.096
49.729
30.556
38.070
7.189
24
7.213
3.651
89
3.740
155.436
129.332
2.008
1.862
202.318
163.777
’O7 a n n u a l
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Consolidated Balance Sheet
Equity and Liabilities (thousands of €)
31-12-2007
31-12-2006
A) Shareholders' Equity
- Share capital
- Legal reserve
- Own shares reserve
- Statutory reserve
- Consolidation reserve
- Exchange differences
- Profit (Loss) for the year
30.193
707
302
12.140
8.496
(1.001)
7.277
30.193
552
302
9.880
5.769
(578)
5.817
Total Group Equity
58.114
51.935
- Third part net equity
- Third part profit (loss) for the year
1.227
(14)
106
7
Total third part equity
1.213
113
59.327
52.048
634
15.153
694
13.203
15.787
13.897
13.180
13.180
13.654
13.654
6.480
6.431
3.851
62.280
17.320
0
4.511
4.231
8.821
2.292
3.509
3.590
46.004
14.332
0
3.502
3.312
7.542
113.925
84.083
99
95
99
95
202.318
163.777
Total Consolidated Equity
B) Provisions for Liabilities and Other Charges
- Provisions for taxes
- Other provisions
Total
C) C) Severance Indemnity Fund
Total
D) Payables
- Bank loans and overdrafts
- within 12 months
- beyond 12 months
- within 12 months
- within 12 months
- within 12 months
- within 12 months
- within 12 months
- within 12 months
- within 12 months
- Loans from other lenders
- Advances from clients
- Payables to suppliers
- Payables to subsidiaries
- Payables to tax authorities
- Payables to social security institutions
- Other payables
Total
E) Accrued Expenses and Deferred Income
Total
TOTAL LIABILITIES
51
Consolidated
Income Statement (thousands of €)
31-12-2007
31-12-2006
A) Value of Production
- Net sales
- Change in work-in-progress
- Sundry revenues
137.453
16.348
2.111
121.910
6.639
1.542
Total Value of Production
155.912
130.091
1.335
55.090
5.160
1.351
43.586
4.525
B) Cost of Production
- Purchases of raw materials, consumables and goods
- Services
- Leasehold goods costs
- Personnel expenses
Wages and salaries
Social security contribution
Provision to severance indemnity fund
Other personnel expenses
47.491
12.276
3.192
6.457
39.683
10.572
2.676
5.633
69.416
- Depreciation of fixed assets and devaluation of short-term receivables
Depreciation of intangible fixed assets
Depreciation of tangible fixed assets
Devaluation of short-term receivables
3.353
1.602
1.076
- Provision for risks
- Sundry expenses
Total Cost of Production
Differerence between Value and Cost of Production (A-B)
C) Financial Income and Charges
- Other financial income
from fixed financial assets
from current financial assets
other financial income
Total Financial Income and Charges
D) Financial Assets Valuation Adjustments
- Devaluations
of shareholdings
of current financial assets
Total Financial Assets Valuation Adjustments
E) Extraordinary Gains and Losses
- Extraordinary gains
- Extraordinary losses
Total Extraordinary Gains and Losses
Pre-tax Result (A-B±C±D±E)
- (Current taxation)
- Deferred taxation
PROFIT (LOSS) FOR THE YEAR
THIRD PART (PROFIT) LOSS FOR THE YEAR
GROUP PROFIT (LOSS) FOR THE YEAR
52
3.778
1.191
481
6.031
2.038
1.335
5.450
2.422
1.613
140.405
117.511
15.507
12.580
648
924
433
- Interest and other financial carges
- Exchange gains and losses
58.564
633
1.105
301
2.005
(755)
(172)
2.039
(368)
57
1.078
1.728
(34)
(212)
0
(26)
(246)
(26)
136
(497)
142
(122)
(361)
20
15.978
14.302
(9.030)
315
(8.444)
(34)
7.263
14
7.277
5.824
(7)
5.817
’O7 a n n u a l
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Cash Flow Statement
at 31 December 2007 (thousands of €)
OPERATING ACTIVITY
2007
2006
NET RESULT
7.277
5.807
(5)
4.949
3.192
3.227
(3.593)
(12.954)
(17.494)
22.499
(140)
(1)
4.969
2.676
2.464
(2.075)
(8.535)
(7.628)
12.213
(347)
(319)
9.543
(16.601)
(675)
(7.365)
(802)
(17.276)
(8.167)
(1.069)
3.183
(419)
(675)
51
1.859
(539)
(448)
2.089
923
CASH FLOW GENERATED (ABSORBED) IN THE YEAR
(8.229)
2.299
LIQUID ASSETS AT THE BEGINNING OF THE YEAR (*)
39.518
37.219
LIQUID ASSETS AT THE END OF THE YEAR
31.289
39.518
Third parties profit (Loss) for the year
Depreciation
Provisions to severance indemnity fund
Provisions to other funds
Decrease of severance indemnity fund and other funds
Change in short-term receivables
Change in work-in-progress
Change in payables
Change in other current assets
Total flow from the operating activity
INVESTMENTS
Investments in:
- tangible and intangible assets
- financial assets
Total flow from investments
FINANCING
Change in minority equity, net of receivables from minority shareholders
Raising of loans
Change in the exchange difference reserve
Dividend
Total flow from financing
(*)
(*) Liquid assets include the amounts in the Balance Sheet as "Cash", "Cash at banks" and "Marketable securities classified as current assets" less short-term bank
loan and overdrafts.
53
Comments
on the balance sheet
Intangible fixed assets
The following table summarises the changes incurred during the year in the value of intangible assets:
31-12-2006
14
2.825
25
278
1.656
4.798
Start-up expenses
Trademarks, patents, rights
Goodwill
Assets under construction and advances given
Other intangible assets
Total
increase
23
1.965
1.378
1.636
1.619
6.621
decrease
0
(3)
(3)
• Patents, rights and intellectual properties mainly
comprise costs relative to the purchase and
development of systems and program software.
The increase for the year is related to Euro 1,707
thousand for the development of new technical
software realised during the year by the parent
company and to Euro 204 thousand for assets
under construction which became operative
during the year.
• Goodwill includes, to the value of Euro 1,110
thousand, the difference between the purchase
price and the share of net equity relative to the
acquisition of STI srl entered in the consolidation
area during the year, for Euro 136 thousand to
the difference between the purchase price of the
20% acquired during the year by Crescendo
adjustments
depreciation
204
(2.776)
(278)
74
0
0
(577)
(3.353)
31-12-2007
37
2.218
1.403
1.636
2.769
8.063
Holding Ltd and the share of net equity relative
to Interprogetti Genova S.p.A. and Interprogetti
Industria S.r.l. and for Euro 106 thousand to the
difference between the purchase price and the
share of net equity relative to the acquisition of
S.S.M S.r.l.
• Assets under construction includes the
investments in progress for current software
production not yet in use and therefore not
subject to amortisation.
• Other intangible assets mainly comprise
extraordinary improvement to offices rented by
our companies as operative offices.
• Amortisations for the year are calculated on the
basis of rates ranging between 20% and 33.3%.
Tangible fixed assets
The changes between the years are summarised in the following table:
Land and buildings
Industrial and trade equipment
Tangible assets in progress
Other tangible assets
Total
31-12-2006
7.032
381
406
2.294
10.113
increase
8.288
306
decrease
1.384
9.978
The increase of the year in land and buildings
mainly refers to:
• Euro 545 thousand due to the purchase and
restructuring of the building in Milan Vimercate.
• Euro 962 thousand refers to STI S.r.l. buildings,
the company acquired during the year use the
building as an office. Part of the goodwill coming
from the acquisition has been allocated to the
building value.
54
(280)
280
0
depreciation
(280)
(97)
(1.219)
(1.596)
31-12-2007
15.039
590
126
2.740
18.495
• Euro 2,250 thousand refers to the building
purchased during the year in Rotterdam, and will
become the new company office.
• Euro 2,623 thousand as building and
restructuring expenses incurred during the year
in Shanghai by RINA (Shanghai) Q&T Services
Co.
• Building lease purchased by RINA S.p.A. in
Savona (Italy) for a value of Euro 1,300.
• Depreciation for the year is calculated on the
basis of rates ranging between 3% and 40%.
’O7 a n n u a l
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Turnover
The following table summarises the turnover as of December 2007 compared with the previous
year.
Turnover
Net sales
Change in work-in-progress
Sundry revenues
Total
31-12-2007
137.453
16.348
2.111
31-12-2006
121.910
6.639
1.542
change
15.543
9.709
569
155.912
130.091
25.821
Net sales and change in work in progress
Sales comprise the services rendered and definitively invoiced to customer within the year including
invoices and credit notes to be issued.
Change in work in progress is determined by comparison between work in progress as of 31
December 2007 and the corresponding amount at the end of the previous year. Details of the above
items are given below:
8
4
73
(96)
tot. income
34.124
10.432
1.263
7
14.592
3.818
4.793
4.814
income
22.639
7.849
2.089
80
18.247
4.100
7.305
5.355
31-12-2007
change w.i.p.
8.880
3.404
101
(84)
135
(7)
78
62
67.588
6.255
73.843
67.664
12.569
80.233
Certification
32.691
257
32.948
38.731
1.374
40.105
Total Certification Division
32.691
257
32.948
38.731
1.374
40.105
Industry
21.631
1.123
22.754
31.058
1.996
33.054
Total Industry Division
(change of devaluation fund)
21.631
1.123
(996)
22.754
(996)
31.058
1.996
409
33.054
409
121.910
6.639
128.549
137.453
16.348
153.801
Classed ships
Survey during construction
Naval ships
Subsidised R&D
Test of materials and machinery
Unclassed ships
Pleasure craft
Technical marine
income
28.843
9.478
1.232
7
14.584
3.814
4.720
4.910
Total Marine Division
Total
55
31-12-2006
change w.i.p.
5.281
954
31
tot. income
31.519
11.253
2.190
(4)
18.382
4.093
7.383
5.417
Turnover
Employees
The following table shows the number of employees at 31 December 2006 and 2007, as well as the
relative changes and average number of employees in the year.
Managers
Technical staff
Administrative staff
Total
Italy
Europe
Asia
Americas
Africa
Oceania
Total abroad
Total Group
31/12/2006
56
609
295
Changes
2
142
38
31/12/2007
58
751
333
960
182
1.142
31/12/2006
744
77
95
35
8
1
Changes
132
23
27
0
0
0
31/12/2007
876
100
122
35
8
1
216
960
266
1.142
In terms of permanent Group staff as of 31 December 2007, the number of Italian employees
working in the head office, in the subsidiary companies and in all the related branch offices was 876.
Employees working abroad numbered 266, of which 95 were working at branch offices of RINA
S.p.A., and 171 at foreign subsidiary companies.
56
Mission
To offer services leading to betterment
To promote quality
To contribute to raising standards
An Italian company
People are our asset
Vision
A single, integrated multibusiness company
An autonomous and independent company
To work with leaders
To seek long-term profitability
Focused growth
Leaders of implementation
Quality of services as our hallmark
English
www.rina.org
edition
RINA spa head office
via corsica, 12
ph. +39 010.5385.1
fax +39 010.5351000
16128 genova
italy
info@rina.org