Stevanato Group S.p.A. Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Leases

Leases

12 Months Ended

Dec. 31, 2023

Presentation of leases for lessee [abstract]

34. Leases

The Group has lease contracts for various items of plant, machinery, vehicles and other equipment used in its operations. Leases of plant and machinery generally have lease terms between 3 and 15 years, while vehicles and other equipment generally have lease terms between 3 and 5 years. Property leases generally have lease terms between 2 and 10 years. There are several lease contracts that include extension and termination options. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term. Such extension options are in a range of 1 years to 10 years and are mainly included in a number of property leases across the Group. In evaluating the lease term, the Group has considered if the Group has the right to terminate a lease. In such case, the non-cancellable period of the lease includes the period covered by the option to terminate the lease.

The Group also has certain leases of machinery, industrial equipment and vehicles with lease terms of 12 months or less and leases of office equipment with low value (e.g. unit value lower than EUR 5,000). The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.

Movements in the leased right of use assets in 2023 are shown below:


	Buildings			Plant and machinery			Industrial equipment		Other tangible assets			Total
	(EUR thousand)
Cost
At January 1, 2022		18,966			8,795			346		10,301			38,408
Additions		1,554			—			—		1,371			2,925
Disposals		(610	)		—			—		(137	)		(747	)
Exchange rate differences		608			20			—		16			644
At December 31, 2022		20,518			8,815			346		11,551			41,230
Acquisition of Perugini S.r.l.		—			1,085			—		80			1,165
Additions		3,112			—			—		1,686			4,798
Disposals		(139	)		—			—		(63	)		(202	)
Exchange rate differences		(471	)		(12	)		—		1			(482	)
At December 31, 2023		23,020			9,888			346		13,255			46,509

Depreciation
At January 1, 2022		6,039			3,905			202		5,572			15,718
Depreciation charge for the year		2,658			1,553			72		2,041			6,324
Disposals		(131	)		—			—		(87	)		(218	)
Exchange rate differences		109			3			—		5			117
At December 31, 2022		8,675			5,461			274		7,531			21,941
Acquisition of Perugini S.r.l.		—			356			—		74			430
Depreciation charge for the year		2,873			1,480			48		1,846			6,247
Disposals		(98	)		—			—		(60	)		(158	)
Exchange rate differences		(186	)		(6	)		—		(8	)		(200	)
At December 31, 2023		11,264			7,291			322		9,383			28,260

Net book value
At December 31, 2023		11,756			2,597			24		3,872			18,249
At December 31, 2022		11,843			3,354			72		4,020			19,289

Set out below are the carrying amounts of lease liabilities and the movements during the period:


	2023			2022
	(EUR thousand)
At January 1		19,982			23,127
Additions		4,589			2,866
Acquisition of Perugini S.r.l.		621			—
Accretion of interest		581			573
Payments		(6,521	)		(6,595	)
Early terminated contracts		(22	)		(527	)
Exchange rate difference		(285	)		538
At December 31		18,945			19,982

Current		5,841			5,325
Non-current		13,104			14,657

The following are the amounts recognized in profit or loss:


	For the year ended December 31,
	2023		2022		2021
	(EUR thousand)
Depreciation expense of right of use assets		6,247		6,325		6,202
Interest expense on lease liabilities		581		573		585
Expense relating to short-term leases		2,118		1,673		1,252
Expense relating to leases of low-value assets		4,749		3,968		5,180
Total amount recognized in profit or loss		13,695		12,539		13,219

At December 31, 2023 the Group signed (i) a binding offer for a seven-year property lease for a total undiscounted liability amounting to approximately EUR 1,250 thousand and (ii) a three-year property lease agreement for a total undiscounted liability amounting to approximately EUR 457 thousand. Both leases start in 2024.