annual report salvatore ferragamo group annual report december salvatore ferragamo firenze general information registered office salvatore ferragamo via tornabuoni florence italy legal information authorized subscribed paid share capital euro tax code florence company register registered florence chamber commerce rea economic administrative register corporate website https group ferragamo com salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting contents letter chair letter ceo general manager board directors report operations december corporate boards group structure composition salvatore ferragamo group main stock market indicators salvatore ferragamo group main income financial results year introduction salvatore ferragamo group business group operating performance operating performance parent company salvatore ferragamo reconciliation parent company net profit loss period shareholders equity group figures results group companies significant events occurred year information corporate governance ownership structure information research development transactions related parties main risks uncertainties significant events occurred december macroeconomic situation outlook separate financial statements december salvatore ferragamo proposal approval consolidated sustainability reporting pursuant italian legislative decree september implementing directive salvatore ferragamo annual report december consolidated financial statements december financial statements consolidated statement financial position assets consolidated statement financial position liabilities shareholders equity consolidated income statement consolidated statement comprehensive income consolidated statement cash flows statement changes consolidated shareholders equity explanatory notes consolidated financial statements comments main statement financial position items assets shareholders equity liabilities comments main income statement items information disclosure pursuant article duodecies issuers regulation statement pursuant article bis italian legislative decree february consolidated law finance independent auditor report separate financial statements december financial statements statement financial position assets statement financial position liabilities shareholders equity income statement statement comprehensive income statement cash flows statement changes shareholders equity explanatory notes separate financial statements comments main statement financial position items assets shareholders equity liabilities comments main income statement items information disclosure pursuant article duodecies issuers regulation statement pursuant article bis italian legislative decree february consolidated law finance report board statutory auditors independent auditor report document translated english solely convenience international readers salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting letter chair salvatore ferragamo annual report december dear shareholders year particularly important process visioning building ferragamo future cur rent global environment remains intricate particu larly demanding strategic product categories specifically leather goods footwear demonstrating encouraging signs enabled establish new style icons enhanced brand appeal expanded product range ability engage inspire increased significantly thanks implementation highly effective engaging campaigns appreciated across major media target geograph ical areas global context general reduction traffic points sale customer base evolved significantly existing loyal customers show growing affinity brand new customers strongly tune ferragamo distinctive features therefore direct efforts ensure precise alignment customers preferences products offer would like thank marco gobbetti initiating strategic trans formation continue pursue determination focusing increasingly effective implementation look future confidence strengthened ferragamo core values principles guided since beginning heart identity passion guides creative process courage innovate building unique prestigious tradition determination strive excellence creativity defines unique style sustainability essential suring responsible conscious future last year also turning point approach sustainability thanks sustainable thinking exhibition organized ferragamo museum confirmed vision responsibility towards people environment led luxury sector follow translated vision concrete decisive action look future confidence strengthened ferragamo core values principles guided since beginning heart identity salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting sustainable thinking sustainable acting name chose first circularity hackathon thanks engaged talented professionals reimagine ferragamo iconic products sustainable innovative perspective traordinary results initiative showcased upcoming collections year made clear visible progress tar gets five pillars sustainability plan received clear feedback major esg ratings recognized progress among proudest achievements reduction carbon intensity line net zero goal sourcing almost leather suppliers adhere highest environmental cial standards creation employee resource groups ergs worldwide generated enthusiasm strong sense longing among employees fostering inclusive engaging work environment nearly century ago father salvatore achieved significant success united states subsequently returned italy florence find artisans unique skills artisans represent one incomparable unique expressions country made italy ferragamo always considered fundamental value identity today pleased share future excellence partners value chain employees collaborators express sincere gratitude confident focused determined look aware significant opportunities available course transfor mation already well set vision remains clear ambitious create authentic luxury combines timeless craftsmanship cutting edge innovation always well employees customers planet live heart thank trust part extraordinary journey chair leonardo ferragamo salvatore ferragamo annual report december salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting letter ceo general manager salvatore ferragamo annual report december dear shareholders tough year marked ongoing instability due geo political tensions macroeconomic uncertainties included war ukraine conflict middle east china economic slowdown inflation decline purchasing power con sumer confidence luxury sector faced challenging year period normalization demand post covid recovery mainly due slowdown asia negative market environment china furthermore increasing polarization wealth significant price increases led substantial cline aspirational consumption narrowing customer base also due decrease interest younger generations market environment particularly negative first half year impacting group economic results terms sales profitability compounded write downs resulting impairment test maintained focus implementing strategic prior ities completed new product range features modern sophisticated design redesigned expand range particular focus main categories shoes leather goods specifically developed new perma nent range introducing successful icons hug bag zina flat shoe also enhanced seasonal range new stylistic codes order consolidate strengthen brand identity maximize potential collections also built brand desirability structured full funnel marketing approach high impact communication initiatives three days florence holiday campaigns developed enriched narrative create relevance awareness growth brand visibility attributed expansion social media channels facilitated adoption agile content production targeted strategies channel prioritized customer engagement comprehensive loyalty programs enhanced direct interaction customized initia tives targeted campaigns global local levels continued invest people fostering internal growth talent attracting new profiles strengthening sense belonging corporate culture geared toward enhancing skills supporting personal professional development salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting continued improve enhance customer experience strengthening retail organization applying new store concept introduced network stores starting lan woman boutique create new sophisticated experience line renewed brand image set focus enhanc ing performance digital channel effort included platforming ferragamo com website implementa tion effective marketing campaigns result observed con sistent positive trend terms traffic quality sales continued invest people fostering internal growth talent attracting new profiles strengthening sense belonging corporate culture geared toward enhancing skills supporting personal professional development area esg achieved notable milestones evi denced substantial upgrade rating leading sector agencies inclusion euronext mib esg index continue efforts aimed reducing carbon emissions utiliz ing sustainable materials ensuring supply chain transparency well promoting diversity equity inclusion face complex volatile macroeconomic environment particularly asian market retail channel showed encour aging signs improvement second half year pos itive development attributed renewed product offering increased visibility intensified customer engagement activities performance revenues amounted million euro current exchange rates constant exchange rates compared result impacted overall weak market envi ronment especially asian market wholesale travel retail channels gross profit amounted million euro decreasing basis points percentage revenues operating costs net impact impairment test amounted million euro million euro result extensive efficiency program operating costs including million euro related impairment amounted million euro salvatore ferragamo annual report december operating profit ebit negative tune million euro excluding impact related impairment ebit came pos itive million euro compared million euro net profit period including minority interest million euro related impairment negative million euro compared million euro net profit including impairment positive million euro line strategic plan capital expenditure capex pro gram mainly aimed improving customer experience distribution network continued renovation directly operated stores reaching million euro com pared million euro would like thank board directors collaboration employees partners passion commitment bring work valuable contribution sure continue make marco gobbetti salvatore ferragamo ceo general manager board directors report operations december salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting salvatore ferragamo annual report december board directors report operations december corporate boards group structure composition salvatore ferragamo group main stock market indicators salvatore ferragamo group main income financial results year introduction salvatore ferragamo group business group operating performance operating performance parent company salvatore ferragamo reconciliation parent company net profit loss period shareholders equity consolidated values group results group companies significant events occurred year information corporate governance ownership structure information research development transactions related parties main risks uncertainties significant events occurred december macroeconomic situation outlook separate financial statements december salvatore ferragamo proposal approval consolidated sustainability reporting pursuant italian legislative decree september implementing directive salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting corporate boards board directors leonardo ferragamo angelica visconti marco gobbetti giacomo ferragamo niccolò ferragamo patrizia michela giangualano ernesto greco umberto tombari laura donnini sara ferrero chair deputy chair ceo general manager control risks committee responsible transactions related parties sustainability patrizia michela giangualano sara ferrero laura donnini chair nomination remuneration committee patrizia michela giangualano saraferrero laura donnini chair board statutory auditors andrea balelli paola caramella giovanni crostarosa guicciardi roberto coccia antonietta donato chair acting statutory auditor acting statutory auditor substitute statutory auditor substitute statutory auditor salvatore ferragamo annual report december independent auditors kpmg financial reporting manager manager charge certifying sustainability report pierre giorgio sallier tour members board directors appointed three year period resolution shareholders meeting april exception director ernesto greco opted replace director fabio gallia resolution board adopted pursuant article paragraph italian civil code october subsequently appointed resolution shareholders meeting novem ber may board directors following renewal resolved new composition control risk committee appointing members directors patrizia michela giangualano chair laura donnini sara ferrero may board directors following renewal resolved new composition nomination remuneration committee appointing members directors patrizia michela giangualano chair laura donnini sara ferrero appointed shareholders meeting april serving date approval separate financial statements december appointed shareholders meeting april nine years appointed board directors april effective april expiry current board directors appointed chair shareholders meeting april appointed deputy chair shareholders meeting april board directors confirmed appointment marco gobbetti chief executive officer company april date board directors also confirmed powers assigned previous term office general manager executive director executive director pursuant corporate governance code manager company executive director pursuant corporate governance code vested management powers non executive director independent director pursuant article ter paragraph article paragraph italian legislative decree february consolidated law finance tuf corporate governance code listed companies february announced press release issued market date company marco gobbetti reached mutual agreement termination employment administrative relationship effective date approval draft financial statements march salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting non operating company european companies north america companies centre south america companies asia pacific companies japanies companies notes ferragamo austria gmbh ferragamo france ferragamo limited ferragamo suisse ferragamo monte carlo ferragamo retail nederland ferragamo belgique ferragamo deutschland gmbh ferragamo japan ferragamo korea ltd ferragamo singapore pte ltd ferragamo thailand limited ferragamo malaysia sdn bhd ferragamo moda shanghai ltd ferragamo retail india private limited ferragamo australia pty ltd ferragamo retail macau limited ferrimag limited ferragamo retail ltd ferragamo retail taiwan limited ferragamo fashion trading shanghai ltd ferragamo usa inc fer international inc sator realty inc ferragamo canada inc ferragamo mexico dec ferragamo chile ferragamo argentina ferragamo brasil roupas acessorios ltda ferragamo españa salvatore ferragamo group structure ferragamo hong kong ltd salvatore ferragamo annual report december composition salvatore ferragamo group december salvatore ferragamo group consists salvatore ferragamo parent company company following subsidiaries consolidated line line basis parent company holds majority stakes directly indirectly controls salvatore ferragamo parent company owner ferragamo salvatore ferragamo brands well numerous figurative shape trademarks undertakes production tivities distributes products dtc channels italy wholesale chan nels italy abroad well real estate activities acts holding company europe ferragamo retail nederland manages directly operated stores dos netherlands ferragamo france manages directly operated stores dos france ferragamo deutschland gmbh manages directly operated stores dos germany ferragamo austria gmbh manages directly operated stores dos austria ferragamo limited manages directly operated stores dos united kingdom ferragamo suisse manages directly operated stores dos switzerland ferragamo belgique manages directly operated stores dos belgium ferragamo monte carlo manages directly operated stores dos principality monaco ferragamo espana manages directly operated stores dos spain north america ferragamo usa inc distributes promotes products usa acts sub holding north america usa canada ferragamo canada inc manages directly operated stores dos wholesale channel canada fer international inc manages directly operated stores dos usa sator realty inc manages directly operated stores dos usa real estate assets central south america ferragamo mexico manages directly operated stores dos wholesale channel mexico ferragamo chile manages directly operated stores dos chile ferragamo argentina manages directly operated stores dos argentina ferragamo brasil roupas acessorios ltda manages directly operated stores dos brazil asia pacific ferragamo hong kong ltd distributes promotes products asia acts sub holding chinese area hong kong ferragamo australia pty ltd manages directly operated stores dos australia ferrimag limited sub holding company chinese area hong kong taiwan prc ferragamo fashion trading shanghai ltd manages directly operated stores dos wholesale channel people republic china ferragamo moda shanghai ltd manages directly operated stores dos people republic china ferragamo retail limited manages directly operated stores dos hong kong ferragamo retail taiwan limited manages directly operated stores dos taiwan ferragamo retail macau limited manages directly operated stores dos macau ferragamo retail india private limited non operating company ferragamo korea ltd manages directly operated stores dos wholesale channel south korea ferragamo singapore pte ltd manages directly operated stores dos singapore ferragamo thailand limited manages directly operated stores dos thailand ferragamo malaysia sdn bhd manages directly operated stores dos malaysia japan ferragamo japan manages directly operated stores dos wholesale channel japan salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting main stock market indicators salvatore ferragamo trend salvatore ferragamo share price official price december euro minimum price november euro maximum price february euro stock market capitalization december euro number shares making share capital december number outstanding shares free float december determined number shares make share capital excluding treasury shares shares held holding company ferragamo finanziaria majestic honour limited minimum maximum prices recorded day trading session therefore coinciding official reference prices date share price oﬃcial price jan feb mar apr may jun jul aug sep oct nov dec euro january december salvatore ferragamo annual report december alternative performance measures better assess performance salvatore ferragamo group makes use alternative performance meas ures identified accounting measures der ifrs therefore measurement basis applied group may differ adopted groups balance may comparable alternative performance measures derived clusively historical financial data determined accordance guidelines alternative perfor mance measures issued esma adopted consob communication decem ber refer exclusively performance reporting period annual report well comparative periods group expected per formance considered substitutes ifrs measures definitions alternative performance measures adopted report provided net sales consists revenues sale products therefore determined excluding following items revenues rental income investment properties censes services effect hedging change rate risk revenues cash flow hedging effect revenues dtc direct consumer dtc channel consists sin gle brand directly operated stores dos well com merce platforms direct consumer online sales operating profit loss difference rev enues cost goods sold operating costs net income adjusted operating profit loss operating profit loss write downs tangible intangible assets investment property right use assets resulting impairment recognized accordance ias ias ebitda operating profit loss amortization depreciation write downs tangible intangible assets investment property right use assets net working capital inventories plus right return assets trade receivables net trade payables fund liabilities net invested capital total amount non current assets current assets assets held sale excluding financial assets current financial assets cash cash equivalents net non current liabilities current liabilities liabilities held sale excluding financial abilities current non current interest bearing loans borrowings current non current financial liabili ties current non current lease liabilities adjusted net invested capital net invested capital excluding right use assets right use assets clas sified investment property net financial debt surplus calculated current non current interest bearing loans borrowings plus current non current lease liabilities current non current financial liabilities including negative fair value derivatives non hedging component net cash cash equivalents current finan cial assets including positive fair value derivatives non hedging component adjusted net financial debt surplus net financial debt surplus excluding current non current lease liabilities adjusted cash flow used operating activities net cash used operating activities net payment lease liabilities classified cash flow nancing activities investments tangible intangible assets include increases historical cost property plant equipment investment property excluding relating right use assets intangible assets finite useful life net decreases tangible assets intangi ble assets progress costs restoring premis rented third parties increases histor ical cost right use assets relating direct initial costs incurred rent premises third parties salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting group main income financial results year millions euro change revenues gross profit gross profit ebitda ebitda operating profit loss operating profit loss adjusted operating profit loss adjusted operating profit loss net profit loss period net profit loss group net profit loss minority interests net sales geographic area december europe asia paciﬁc central south america north america japan net sales product category december footwear leather goods apparel silk dtc rental income wholesale revenue distribution channel december licenses services cash ﬂow hedging salesi salvatore ferragamo annual report december millions euro december december investments tangible intangible assets net working capital shareholders equity adjusted net financial debt surplus adjusted cash flow used operating activities december december staff reporting date number dos geographical distribution dos december stores ferragamo monobrand stores managed directly europe asia pacific latin america japan north america salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting disclaimer document contains forward looking statements particular sections headed macroeconomic situation outlook significant events occurred december consolidated sustainability reporting pur suant italian legislative decree september implementing directive relating future events operating income financial social environmental performance salvatore ferragamo group statements based salvatore ferragamo group current expectations forecasts regarding future events nature involve risks uncertainties since refer events depend circum stances may may happen occur future must unduly relied upon actual results could differ significantly contained statements due variety factors including vola tility deterioration performance securities financial markets changes raw material prices changes macroeconomic conditions economic growth changes business conditions legal insti tutional framework italy abroad many factors beyond group control introduction parent company salvatore ferragamo gal entity set italian law pursuant article paragraph bis italian legislative decree prepares directors report operations separate financial statements consolidated financial statements single document directors report operations addition indicators required financial statements com pliance international financial reporting stand ards ifrs also includes alternative performance measures used management monitor assess group performance detailed specific section addition directors report operations includes sustainability report prepared accordance provisions corporate sustainability reporting directive csrd implemented italian legislative decree european sustainability reporting standards esrs prepared efrag issued european commission delegated regulation applicable january financial years beginning january specifications adopted pursuant regu lation taxonomy regulation relat delegated acts salvatore ferragamo annual report december salvatore ferragamo group active creation production sale luxury goods men wom footwear leather goods apparel silk goods jewels accessories product range also includes fragrances eyewear watches manufactured cense third parties product range stands uniqueness result combination cre ative innovative style quality craftsman ship hallmark luxury goods made italy salvatore ferragamo group present countries around world directly subsidiaries countries sells products primarily network salvatore ferragamo single brand stores ther directly operated dos operated third parties well significant well estab lished presence department stores multi brand specialty stores commerce channel group also active licensing ferragamo trademark real estate management salvatore ferragamo group business salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting history group death founder widow wanda took reins company production bags women leather goods starts salvatore ferragamo born bonito province avellino joining siblings united states salvatore ferragamo opens hollywood boot shop confirming beginning career would establish shoemaker stars salvatore ferragamo italia set producing women shoes first laboratory opened florence salvatore ferragamo transfers shoe laboratory palazzo spini feroni bought still registered office group salvatore ferragamo makes famous rainbow model judy garland year patented cork wedge heel dallas salvatore ferragamo receives neiman marcus prize invisible sandal women ready wear collection presented success international shop florence visited celebrities audrey hepburn dukes windsor launch first men ready wear collections men footwear silk accessories salvatore ferragamo annual report december creation vara model one famous shoes salvatore ferragamo opening first dos asia hong kong entry asian market creation bag famous gancini decorative symbol inauguration ferragamo museum palazzo spini feroni dedicated shoes history company launch salvatore ferragamo fragrances eyewear lines realization first salvatore ferragamo watches salvatore ferragamo listed mercato telematico azionario screen based stock exchange currently known euronext milan organized operated borsa italiana licensing salvatore ferragamo trademark production distribution fragrances line appointment maximilian davis salvatore ferragamo creative director salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting distinctive features parent company group main factors enabled development consolidation group competitive positioning summarized follows brand heritage synonym glamour elegance craftsmanship creativity innovation legendary status founder salvatore ferragamo inseparably linked world luxury footwear years history associated high quality luxury products always known made italy excellence continuous product innovation high level customization use rare high quality materials abundant archive designs models draw inspiration new collections use ferragamo products leading personalities world cinema theatre entertainment global brand awareness high consolidated level brand awareness worldwide distribution products presence tailored single brand stores key shopping streets prestigious locations luxury sector significant consolidated presence europe america asia sustainable thinking incorporation sustainability throughout value chain keeping core values creativity innovation world class craftsmanship stakeholder engagement promotion partnerships governance model takes account context reference balance mitigation environmental social governance esg risks responsibility sustainability assigned control risks com mittee composed entirely independent directors board directors creation corporate transformation sustainability function establishment esg steering committee provide depth oversight progress sustainability plan review approval salvatore ferragamo group sustainability plan board directors three year time horizon plan whose targets last updated board directors meeting december three year period based following five new pillars moving towards net zero emis sions fostering materials innovation iii leading responsible value chain empowering people creating value global communities alignment remuneration policy strategic plan sustainability plan salvatore ferragamo annual report december ongoing search quality applied whole made italy product range made italy production process realized number expert carefully selected suppliers working group several years particular attention quality control choosing processing materials finished product granting limited number licenses solely highly qualified prestigious companies consolidated extended distribution network diversified across different channels dos tpos multi brand channel consolidated presence single brand stores mainly dos world main luxury locations balanced geo graphical exposure developed emerging markets presence department stores luxury specialist retailers order strengthen presence countries salvatore ferragamo group network directly operated stores business united states particular importance presence mainly tpos travel dtc channel ferragamo single brand stores main airports around globe presence digital channel internet website www ferragamo com seven languages italian french span ish english chinese korean japanese commerce functions various european countries eurozone united kingdom united states south korea japan mexico people republic china australia strategy group strategy strengthen competitive position among leaders global luxury market spond ever changing environment operates create value shareholders sustain able profitable growth main strategic guidelines summarized follows product always center new energy brand enrichment customer experience focus digital domain product heart strategy group aims maintain strengthen position global luxury segment putting product heart strategy creating products always desirable tune consumer tastes integrating collections meet new purchasing occasions focusing younger clientele increasing focus product categories form core group offer footwear leather goods also ready wear salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting new energy brand increase relevance digital channel enrichment customer experience group intends continue brand enhancement strategy enriching customer experience evolving way speed group communicates products updating communication language clearly communicating creative vision prioritizing digital communication tool attract inspire new customers current market context enriching consumer experience omnichannel services innovating physical store experience part brand relaunch project new store concept gradually implemented main store locations starting milan store via monte napoleone inaugurated february fashion show ongoing modernization supply chain organizational structure allow salvatore ferragamo group achieve objectives group intends continue leveraging italian spirit sustainability flexibility production struc ture based integration external manufacturing workshops maintains consolidated long standing relations order achieve strategic objectives group seeks focus even devel opment human resources always one main assets series initiatives train develop house staff well recruit new expert professionals group also seeks strengthen logistics infrastructure please note logistics hub osmannoro facility municipality sesto fiorentino province florence featuring innovative highly automated systems enable greater distribution efficiency capacity flexibility operational since strategic organizational model success salvatore ferragamo group based pursuing long term value creation strategy centered constant monitoring value chain adoption shared group organizational model various product categories particular salvatore ferragamo group always operated aim offering cus tomers products characterized high quality level based solid tradition craftsmanship exclusive design style aimed preserving brand strong identity approach applied choice materials design phase production processes design architecture stores salvatore ferragamo annual report december production system organizational model adopted group entrusts production process entirely specialized italian produc tion facilities keeping management organization main stages value chain house group operating model ensures flexibility efficiency production logistics cycle use broad network selected expert italian manufacturers working group many years reference production group directly manages product development industrialization stage undertakes quality controls production process almost finished products footwear leather goods categories distribution system organization distribution sales one group strengths thanks extensive consolidated presence called traditional markets europe united states japan emerging markets asia pacific latin america well thanks store locations group attributes great importance monitoring distribution done network single brand directly operated stores dos december numbered called dtc channel network tailored single brand stores stores stores operated third parties tpos well multi brand channel taken whole called wholesale channel dtc channel group directly markets product lines end customers directly operated stores dos located across main markets served group exclusive strategic locations reputational commercial point view wholesale sales targeted exclusively retailers lesser tent distributors wholesale customers consist department stores luxury specialist retailers order strengthen presence countries group network directly operated stores business united states particular importance franchisees ensuring foothold markets direct retail presence currently possible deemed necessary middle east areas africa areas people republic china travel retail duty free stores opened inside airports duty free locations stores selected basis consistency positioning ferragamo brand location visibility guarantee brand changes group structure group structure underwent changes salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting effect exchange rate changes operations ferragamo group strong presence international markets including commercial companies located countries currencies euro mainly dollar chinese renminbi japanese yen south korean mexican peso therefore group exposed settlement translation risk first months marked higher expected data terms economic labor market growth volatile decline inflation factors reduced expectations interest rate cuts year second half year cycle interest rate cuts began june ecb cut deposit rates refinancing rates based assessment inflation look september fed cut interest rates basis points detecting worsening economic data november following presidential election treasury yields rose sharply note yield back highest level year dollar less stable first months year weakened fed began cycle interest rate cuts trend changed outcome presidential election dollar strengthening significantly aftermath eur usd exchange rate went hitting high september low december performance dollar coupled tensions chinese real estate market led gradual weaken ing yuan usd first part year fed cycle interest rate cuts interrupted trend leading strengthening yuan setting stage stimulus support economy chinese authorities weakening resumed last quarter dollar strengthened usd cny exchange rate went hitting low september high december eur cny exchange rate closely linked performance eur usd exchange rate went hitting high august low november similarly yuan south korean linked economic cycle trade balance weakened dollar going hitting low january high december euro went yen weakened first half year due difference interest rate levels japan reversed trend bank japan rate hike july weakened last quarter dollar strengthened usd jpy exchange rate went hitting high july low december eur jpy exchange rate went mexican peso appreciated slightly first quarter depreciated sharply following months due mexican presidential election narrowing interest rate differentials mexico japan presidential election usd mxn exchange rate went hitting low april high november eur mxn exchange rate went exchange risk management policy hedging arrangements put place ferragamo group tails please refer section management financial risks explanatory notes consolidated financial statements separate financial statements mitigated effects fluctuations expected industrial margin salvatore ferragamo annual report december group operating performance characterized complex market environment marked ongoing geopolitical tensions macroe conomic uncertainties impact demand luxury goods sector experienced period normalization primarily due challenging global environment wholesale channel slowdown asian markets particularly china along contraction consumer base resulting increased pressure aspirational consumption market environment marked particularly challenging first half year adversely affected financial results year terms revenues profitability latter also impacted non monetary impact write downs resulting impairment tests results salvatore ferragamo group heavily penalized terms revenues decline current exchange rates constant exchange rates compared results operating result decreased profit million euro loss million euro write downs assets resulting impairment tests recorded group amounted million euro related impairment tangible intangible assets investment property right use assets amounted million euro salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting net write downs result would adjusted operating profit million euro com pared adjusted operating profit million euro previous year moderate decrease gross profit amounting percentage revenues compared previous year finally group posted million euro net loss period compared million euro net profit previous year group adjusted net financial position surplus amounting million euro remains solid positive albeit million euro recorded december payment dividends amount million euro capital expenditure fixed assets made year amount million euro following table shows main income statement data thousands euro revenues revenues change revenues gross profit style product development logistics costs sales distribution costs communication marketing costs general administrative costs operating costs income total operating costs net income operating profit loss net financial income charges profit loss taxes income taxes net profit loss period net profit loss group net profit loss minority interests amortization depreciation write downs ebitda write assets resulting impairment tests adjusted operating profit loss salvatore ferragamo annual report december revenues reached thousand euro compared thousand euro current exchange rates five main currencies euro group generates rev enues dollar chinese renminbi japanese yen mexican peso south korean performed follows compared previous year dollar depreciated chinese renminbi depreciated japanese yen depreciated south korean depreciated mexican peso depreciated euro currency amounts consolidated financial statements expressed revenues constant exchange rates applying average exchange rate revenues net hedging impact reference fourth quarter revenues amounted thousand euro compared quarter previous year constant exchange rates currency hedges revenues resulted positive thousand euro adjustment revenues compared positive thousand euro adjustment gross profit totaled thousand euro thousand euro previous year gross profit percentage revenues stood total operating costs net income amounted thousand euro slightly thousand euro totaled percentage revenues compared increase sales distribution costs general administrative costs respectively items strongly affected reductions value assets recorded thousand euro thousand euro respectively net write downs items would recorded decrease respectively note reduction communication marketing costs fell compared included higher costs related implementation brand relaunch strategy began total operating costs net impairment losses amounted thousand euro details see explan atory notes consolidated financial statements decrease compared previous year decrease revenues ebitda dropped thousand euro thousand euro amounting percentage revenues compared group reported operating loss thousand euro compared operating profit thousand euro reference average eur usd exchange rate reference average eur cny exchange rate reference average eur yen exchange rate reference average eur krw exchange rate reference average eur mxn exchange rate salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting adjusted operating profit decreased million euro million euro net financial income charges amounting net negative figure thousand euro recorded slight deterioration compared amounted net negative figure thousand euro ease reference financial income charges shown net reference made explanatory notes consolidated financial statements separate detailed information charges income thousands euro change net interest net income charges net interest expenses lease liabilities net gains losses exchange rate differences net financial income charges fair value adjustment derivatives total net interest income decreased thousand euro compared mainly due higher drawdowns committed credit lines group companies net gains losses exchange rate differences mainly reflect impact commercial transactions foreign cur rency changes net gains losses exchange rate differences correlated item net financial income charges fair value adjustment derivatives refers premium discount transactions hedge exchange rate risk undertaken parent company changes fair value non hedging derivatives net impact two line items net gains losses exchange rate differences net financial income charges fair value adjustment derivatives shifted negative thousand euro negative thousand euro net interest expenses lease liabilities thousand euro thousand euro result renewal signing leases salvatore ferragamo annual report december thousand euro loss taxes gave rise thousand euro income taxes taxes recorded income statement follows thousands euro change profit loss taxes current deferred taxes use provision taxes previous years tax rate item use provision taxes previous years refers thousand euro tax audit ferragamo japan relating years thousand euro tax audit ferragamo thailand limited relating tax period amounts set aside current financial year details please refer paragraph significant events occurred year tax customs audits disputes document group reported thousand euro consolidated net loss compared thousand euro net profit group share amounted consolidated loss thousand euro compared profit thousand euro previous year adjusted net financial position surplus thousand euro remained solid positive although low positive adjusted net financial position thousand euro december second half increase thousand euro adjusted net financial position went surplus thousand euro june surplus thousand euro december mainly due positive cash generation adjusted operating activities totaling million euro net cash absorption resulting investments fixed assets amounting million euro salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting revenues detailed performance analysis representation net sales distribution channel geographic area product category shown excluding effect hedging exchange rate risk revenues cash flow hedging effect revenues breakdown revenues distribution channel follows thousands euro revenues revenues change constant exchange rates dtc wholesale net sales cash flow hedging effect revenues licenses services rental income investment properties total dtc sales declined current exchange rates constant exchange rates negative trend asia pacific region partially offset positive performance europe united states japan latin america dtc channel accounted total revenues pro cess optimizing group distribution network also continued net reduction directly operated stores doss compared december wholesale channel recorded decrease sales current exchange rates constant change rates due general slowdown sector group operates planned rationalization channel item cash flow hedging effect revenues reflects impact policy hedging revenues risk exchange rate fluctuations resulted positive adjustment revenues amounting thousand euro compared positive adjustment thousand euro revenues licenses services increased current constant exchange rates item mainly consists royalties licensing salvatore ferragamo trademark marchon group eyewear industry timex group watch industry inter parfums group fragrances industry revenues rental income investment properties refer solely management property located unit states leased sub leased third parties item increased current exchange rates constant exchange rates salvatore ferragamo annual report december following table shows net sales geographic area change previous year thousands euro net sales net sales change constant exchange rates europe north america japan asia pacific central south america net sales europe net sales current exchange rates constant exchange rates compared previous year recording positive performance dtc channel particular good performance con stant exchange rates primary channel negative performance wholesale channel north america net sales decreased current exchange rates constant exchange rates mainly impacted negative performance wholesale channel partly offset positive trend primary dtc channel constant exchange rates japan revenues increased constant exchange rates decreased current exchange rates due slowdown consumption recorded asia pacific region severely penalized compared previous year decrease revenues current exchange rates constant exchange rates negative trend dtc wholesale channels central south american market current exchange rates constant exchange rates recording positive performance constant exchange rates dtc channel thanks primary channel negative performance wholesale channel revenues generated ferrag amo argentina operates country classified hyperinflationary economy since july adjusted accordance relevant international accounting standards see note basis presentation explanatory notes consolidated financial statements resulting positive impact thousand euro thousand euro salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting following table shows net sales product category change previous year thousands euro net sales net sales change constant exchange rates footwear leather goods apparel silk net sales main product categories saw decrease turnover compared footwear leather goods account ing turnover respectively cost goods sold gross profit thousands euro revenues revenues change consumables services personnel depreciation cost goods sold gross profit cost goods sold amounted thousand euro compared gross profit amounted percentage revenues compared marking decrease previous year salvatore ferragamo annual report december statement financial position investments statement financial position december reclassified sources uses compared position december thousands euro december december change property plant equipment investment property intangible assets finite useful life goodwill right use assets net working capital non current assets liabilities net current assets liabilities net assets liabilities held sale net net invested capital group shareholders equity minority interests shareholders equity net financial debt surplus total sources financing net financial debt surplus lease liabilities adjusted net financial debt surplus adjusted net financial debt surplus shareholders equity thousands euro december december change net invested capital right use assets recognized investment property right use assets adjusted net invested capital salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting property plant equipment investment property goodwill intangible assets finite useful life thousands euro decembe december change property plant equipment investment property goodwill intangible assets finite useful life total item property plant equipment december consisted sesto fiorentino industrial complex portions properties used operating activities property owned seoul total net value thousand euro furnishings renovation work chain directly operated stores totaling thousand euro assets mainly equipment plant machinery tangible assets progress total net value thousand euro investment property represents portion american properties used operating activities generates income leases item also includes right use assets relating leases properties held rental purposes united states fully written december addition starting item includes building salvatore ferragamo used general interest production activities area owned parent company municipality sesto fiorentino osmannoro amount goodwill entirely acquired business combination arts aura attributable synergies economic benefits arising combination assets acquirees salvatore ferragamo respect design manufacturing men footwear intangible assets finite useful life largely consist capitalized costs development business software applications sap erp reporting systems shipping system commerce platform know acquired business combination arts aura finalized net residual value thousand euro december costs incurred acquire right enter store lease contracts called key money net residual value thousand euro december remainder refers regis tration expenses trademarks industrial patents intellectual property rights software licenses intangible assets finite useful life progress write downs resulting impairment recorded tangible intangible assets investment property amount thousand euro compared thousand euro recorded salvatore ferragamo annual report december investments fixed assets group made investments tangible intangible assets total amount thousand euro thousand euro tangible assets thousand euro intangible assets compared total thousand euro previous year significant investments tangible assets allocated opening renovation stores million euro approximately total investments tangible assets renovation milan offices corso matteotti improvement works parent company facility million euro approximately total investments tangible assets main investments intangible assets refer development software support business processes totaling million euro approximately total investments intangible assets including developments related commerce platform new pos solution project aimed imple menting new cash back office system oracle xstore group dtc channel well purchase software licenses investments intangible assets also include initial direct costs incurred first half mainly salva tore ferragamo million euro opening new store italy investments tangible assets construction amounting million euro mainly concerned investments made refurbishment opening new stores yet operational reporting date investments intangible assets progress amounting million euro mainly represented investment software development support business processes group make investments financial assets except noted net finan cial debt amortization depreciation excluding depreciation right use assets totaled thousand euro december thousand euro salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting right use assets item totaling thousand euro december refers right use assets recognized lease liabilities following application ifrs accounting standard portion right use assets relating leases properties held rental purposes united states cluded investment property fully written december write downs resulting impairment right use assets recorded amount thousand euro net working capital breakdown change net working capital december compared figure december thousands euro december december change inventories right return assets trade receivables trade payables refund liabilities total net working capital compared december mainly due decrease trade receivables specifically inventories finished products thousand euro compared december raw materials production thousand euro compared december depend production volumes period trade receivables decreased thousand euro december essentially referred sales wholesale channel lesser extent commerce dtc sales department stores trade payables mainly refer purchases production materials raw materials accessories finished products costs relating outsourced manufacturing salvatore ferragamo annual report december shareholders equity thousands euro december december change group shareholders equity minority interests total changes group share shareholders equity due combined effect following decrease thousand euro profit loss period decrease thousand euro result dividends paid parent company salvatore ferragamo decrease thousand euro attributable translation euro financial statements sub sidiaries denominated currencies decrease thousand euro resulting translation effects increase thousand euro related stock grant reserve three outstanding share based pay ment plans decrease thousand euro resulting valuation hedging derivatives net relevant tax fect decrease thousand euro due accounting put option minority interests japanese company increase thousand euro due actuarial valuation outstanding defined benefit plans group companies salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting net financial debt net financial debt december december follows thousands euro december december change cash cash equivalents current financial assets interest bearing loans borrowings financial liabilities lease liabilities net financial debt surplus net financial debt including lease liabilities thousand euro december thousand euro december mainly due increase loans borrowings use uncom mitted credit lines subsidiaries salvatore ferragamo also view expected decline interest rates continued path diversifying liquidity started insurance investment multi branch policy quickly converted cash total million euro investment short term italian government bonds buoni ordinari del tesoro total million euro net financial debt excluding lease liabilities december restated follows thousands euro december december change net financial debt surplus non current lease liabilities current lease liabilities lease liabilities adjusted net financial debt surplus ended positive adjusted net financial position surplus thousand euro thousand euro previous year change largely due adjusted cash flow generated operating activities positive tune thousand euro net cash used invest tangible intangible assets thousand euro pay dividends thousand euro resolved parent company salvatore ferragamo annual report december income financial indicators tables show trend main income financial indicators years ended december indicators based data consolidated financial statements better understand read conjunction alternative performance measures financial statements prepared cordance relevant accounting standards ifrs described document profitability ratios roe group net profit loss period average group shareholders equity roi operating profit loss net average invested capital roic net profit loss average adjusted net invested capital ros operating profit loss revenues financial ratios coverage shareholders equity ratio shareholders equity non current assets liquidity ratio current assets excluding inventories current liabilities turnover ratios expressed days turnover trade receivables average value trade receivables period revenues days turnover trade payables average value trade payables period purchases goods services days inventory turnover average value inventories period cost goods sold days turnover average invested capital average value net invested capital revenues days average value means simple arithmetic average closing balances period previous period salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting operating performance parent compa salvatore ferragamo tables relevant comments prepared basis separate financial statements december reference made prepared accordance ternational financial reporting standards ifrs issued international accounting standard board iasb endorsed european union well compliance provisions issued implementation article italian legislative decree following table shows main income statement indicators thousands euro revenues revenues change revenues change inventories finished products costs raw materials goods consumables costs services personnel costs amortization depreciation write downs operating costs income total costs net income operating profit loss net financial charges income profit loss taxes income taxes tax rate net profit loss period ebitda salvatore ferragamo annual report december company revenues totaled thousand euro thousand euro increase operating costs net income mainly due greater negative impact appli cation advance pricing agreement ebit adjustments salvatore ferragamo foreign subsidi aries perform distribution operations net negative contribution thousand euro compared thousand euro combined slowdown revenues resulted worsening operat ing profit loss thousand euro ebitda fell thousand euro thousand euro pro portion revenues following table shows net financial income charges change compared ease refer ence financial income charges shown net reference made explanatory notes separate financial statements separate detailed information charges income thousands euro change dividends equity investments financial income charges fair value adjustment derivatives restatement value write downs equity investments net gains losses exchange rate differences net interest lease liabilities net income charges net interest total total net financial income charges declined totaling thousand euro charges compared thousand euro charges previous year mainly due higher net write downs equity investments failure subsidiaries distribute dividends net gains losses exchange rate differences mainly reflect impact commercial transactions foreign currency changes net gains losses exchange rate differences correlated item net financial income charges fair value adjustment deriva tives refers premium discount transactions hedge exchange rate risk undertaken company changes fair value non hedging derivatives salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting loss taxes amounting thousand euro caused company recognize thousand euro taxes whereas company posted thousand euro profit taxes recognizing thousand euro taxes company reported net loss period thousand euro compared thousand euro net profit net write downs recorded equity investments investment property net ebit adjustments subsidiaries totaling thousand euro thousand euro net result would net profit thousand euro compared net profit thousand euro previous year revenues detailed performance analysis representation net sales distribution channel geographic area product category shown excluding effect hedging exchange rate risk revenues cash flow hedging effect revenues following table shows revenues distribution channel change previous year thousands euro revenues revenues change wholesale dtc net sales cash flow hedging effect revenues revenues royalties income services revenues wholesale revenues refer mainly sales group companies lesser extent sales retailers show decrease compared previous year dtc sales refer revenues generated directly operated stores dos italy commerce sales europe revenues royalties refer mainly revenues licensing ferragamo trademark reference eyewear watches fragrances product categories item income services mainly includes revenues group companies recovery freight packaging costs salvatore ferragamo annual report december following table shows net sales geographic area change previous year thousands euro net sales net sales change italy europe excluding italy north america asia pacific japan central south america net sales markets saw slowdown net sales compared asia pacific continues largest contributor company sales share following table shows net sales broken product category change previous year thousands euro net sales net sales change footwear leather goods apparel silk net sales product categories recorded decrease compared salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting statement financial position investments statement financial position december reclassified sources uses compared position december thousands euro december december change property plant equipment intangible assets finite useful life goodwill investment property right use assets net working capital non current assets liabilities net current assets liabilities net net invested capital shareholders equity net financial debt surplus total sources financing net financial debt surplus lease liabilities adjusted net financial debt surplus adjusted net financial debt shareholders equity investments fixed assets company made investments tangible intangible assets total amount thousand euro thousand euro tangible assets thousand euro intangible assets compared total thousand euro previous year significant investments tangible assets year relate opening new stores italian chain particular completion renovation began milan woman store opened feb ruary ferragamo new store concept implemented renovation milan offices corso matteotti finally iii works carried inside osmannoro sesto fiorentino facility main investments intangible assets refer development software support business processes cluding developments related commerce platform new pos solution project aimed implement ing new cash back office system oracle xstore group dtc channel well purchase software licenses salvatore ferragamo annual report december investments tangible assets construction amounting million euro mainly concerned expenses curred advances disbursed pertaining store renovations yet completed end year well works osmannoro sesto fiorentino facility investments intangible assets also include initial direct costs incurred first half salvatore fer ragamo million euro opening new store italy investments intangible assets progress amounting million euro mainly represented vestment software development support business processes amortization depreciation excluding depreciation right use assets totaled thousand euro december compared thousand euro december april ferragamo argentina issued new shares total million argentine pesos subscribed salvatore ferragamo conversion past receivables due total thousand euro ferragamo usa inc june ferragamo retail macau limited issued new shares total million mop fully subscribed salvatore ferragamo cash payment june ferragamo thailand ltd issued new shares total million thai bath fully subscribed salvatore ferragamo cash payment information investments financial assets please refer following comments net finan cial debt surplus net working capital breakdown change net working capital december compared figure december thousands euro december december change inventories right return assets trade receivables trade payables refund liabilities total inventories right return assets thousand euro overall mainly due thousand euro net decrease inventories raw materials production inventories finished products increased finally right return assets decreased thousand euro item amounted thousand euro december salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting trade receivables totaled thousand euro showing decrease included thou sand euro receivables subsidiaries thousand euro thousand euro receivables third parties thousand euro trade payables refund liabilities amounted thousand euro including thousand euro refund liabilities largely referred purchases production materials outsourcing costs purchases finished goods increase attributable thousand euro higher negative adjustment related vance pricing agreement subsidiaries compared recorded operating costs net financial debt surplus net financial debt surplus december compared december follows thousands euro december december change cash cash equivalents current financial assets interest bearing loans borrowings current financial liabilities lease liabilities net financial debt surplus net financial surplus increased thousand euro december thousand euro december order manage cash liquidity efficiently group level com pany entered cash pooling agreement number subsidiaries salvatore ferragamo also view expected decline interest rates continued path diversifying liquidity started insurance investment multi branch policy quickly converted cash total million euro investment short term italian government bonds buoni ordinari del tesoro total million euro total thousand euro december salvatore ferragamo annual report december net financial debt surplus excluding lease liabilities december december restated follows thousands euro december december change net financial debt surplus non current lease liabilities current lease liabilities lease liabilities adjusted net financial debt surplus ended positive adjusted net financial position surplus thousand euro thou sand euro december net financial position company positive change mainly affected cash generation adjusted operating activities thousand euro net cash absorp tion resulting investments tangible intangible assets made amounting thousand euro payment dividends amounting thousand euro lastly iii subscription new shares subsidiaries totaling thousand euro salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting income financial indicators tables set trend main income financial indicators parent company years ended december indicators based data separate financial statements better understand read conjunction alternative performance measures financial statements prepared cordance relevant accounting standards ifrs described document profitability ratios roe net profit period average shareholders equity roi operating profit net average invested capital ros operating profit revenues sales services financial ratios coverage shareholders equity ratio shareholders equity non current assets liquidity ratio current assets excluding inventories current liabilities turnover ratios expressed days turnover trade receivables average value trade receivables period revenues sales services days turnover trade payables average value trade payables period costs raw materials goods consumables costs services days inventory turnover average value inventories period cost goods sold days turnover average invested capital average value invested capital revenues sales services days average value means simple arithmetic average closing balances period previous period salvatore ferragamo annual report december reconciliation parent company net profit loss period sharehold ers equity group figures reconciliation statement parent company net profit loss period shareholders equity corresponding consolidated figures provided thousands euro december shareholders equity net profit loss period parent company salvatore ferragamo figures elimination equity investments subsidiaries contribution consolidated shareholder equity elimination unrealized profits deriving transactions group companies relating inventories net deferred tax effect consolidation adjustments total shareholders equity net profit loss minority interests shareholders equity net profit loss group shareholders equity net profit loss salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting results group companies main highlights subsidiaries shown table thousands company currency revenues shareholders equity revenues shareholders equity ferragamo australia pty ltd aud ferragamo japan jpy ferragamo korea ltd krw ferragamo espana eur ferrimag limited hkd ferragamo retail limited hkd ferragamo retail taiwan limited twd ferragamo mexico mxn ferragamo retail nederland euro ferragamo fashion trading shanghai ltd cny ferragamo singapore pte ltd sgd ferragamo thailand limited thb ferragamo malaysia sdn bhd myr ferragamo hong kong ltd usd gruppo ferragamo usa usd ferragamo deutschland gmbh euro ferragamo belgique euro ferragamo monte carlo euro ferragamo suisse chf ferragamo limited gbp ferragamo france euro ferragamo chile clp ferragamo austria gmbh euro ferragamo retail india private limited inr ferragamo retail macau limited mop ferragamo moda shanghai ltd cny ferragamo brasil roupas acessorios ltda brl ferragamo argentina ars salvatore ferragamo annual report december significant events occurred year shareholders meetings two shareholders meetings held april november respectively detailed ordinary shareholders meeting salvatore ferragamo held april approved separate financial statements december including consolidated statement contain ing non financial information pursuant italian legislative decree december covering year resolved distribute dividend euro per ordinary share outstanding dividend date net treasury shares held appointed based slate voting system following members board directors three year period leonardo ferragamo giacomo ferragamo niccolò ferragamo sara ferrero fabio gallia patrizia miche giangualano marco gobbetti umberto tombari angelica visconti elected majority slate submitted shareholder ferragamo finanziaria laura donnini elected slate submitted group nority shareholders company shareholders meeting also appointed leonardo ferragamo chair board directors angelica visconti deputy chair finally shareholders meeting set total gross annual remuneration board directors whole euro leaving board directors determine remuneration directors special responsibilities approved policy concerning remuneration members governing body managers strategic sponsibilities members control body year per section remuneration policy report fees paid voted favor regard section said report includes inter alia list fees paid said individuals capacity form year ended december approved reasoned proposal board statutory auditors reduce fees paid independent auditors kpmg carrying external audit salvatore ferragamo foreign subsidiaries salvatore ferragamo group financial year period ordinary shareholders meeting salvatore ferragamo held november resolved complete composition governing body number ten members established shareholders meeting april therefore appointed ernesto greco already opted board directors october director replace fabio gallia term office new director expire together entire board directors date meeting convened approve separate financial statements december shareholders meeting also confirmed payment ernesto greco sum euro resolved shareholders meeting april approved signing consultancy agreement ernesto greco concerning specialized activities counting administrative financial fields term shareholders meeting approval financial statements december fee exceeding euro adopted new company shareholders meeting regulations subject approval extraordinary share holders meeting amendment article bylaws order bring content line latter fully described date extraordinary shareholders meeting approved amendment article current bylaws aimed removing provision allows shareholders meeting held without formal notice unanimous participation shareholders called totalitarian form simplifying rules governing right shareholders request calling shareholders meeting well integration list items discussed shareholders meeting referring cases salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting forms terms provided applicable pro tempore laws regulations force thus eliminating cur rent substantial transposition current regulatory text bylaws iii consideration amendment bylaws article omitting indication physical location shareholder meeting notice call meeting held exclusively means teleconferencing videoconferencing article current bylaws aimed simplifying rules governing right attend vote share holders meeting inserting general reference law provisions regard conditions also regard right attend vote shareholders meeting thus eliminating current substan tial statutory transposition current regulatory text article current bylaws aimed allowing company avail right provided newly introduced article undecies consolidated law finance tuf introducing possibility board directors provide notice call attendance exercise voting rights shareholders meeting shall take place exclusively granting proxy sub proxy voting rights representative designated company manner provided applicable pro tempore laws regulations force article current bylaws aimed providing replacement directors drawn majority list also take place among candidates elected list article current bylaws aimed allowing regular conduct meetings board directors board committees established also exclusively telecommunication means without necessary simultaneous presence chair secretary whoever takes place notary public called take minutes article current bylaws aimed specifying meetings board statutory auditors may also held exclusively telecommunication means without specifying physical place meeting held consequently eliminating reference identification physical place meeting held exclusively telecommunication means deemed held board directors january implementation restricted shares plan board directors favorable opinion nomination remuneration committee part plan cycle covering year decided grant marco gobbetti ceo general manager right receive free charge shares salvatore fer ragamo restricted shares effective january meeting board directors also resolved transfer restricted shares marco gobbetti ceo general manager checking achievement minimum targets end vesting period understanding subject twelve month lock period calculated january details please refer note share based payments explanatory notes consolidated financial statements report meeting held march board directors approved draft separate financial statements december consolidated financial statements december directors report operations containing consolidated non financial statement includes non financial information pursuant italian legislative decree december corporate governance port referring year prepared company pursuant article bis consolidated law finance tuf iii remuneration policy report fees paid prepared pursuant article ter consolidated law finance tuf article quater annex scheme bis consob regulation amended article corporate governance code listed companies proposed salvatore ferragamo annual report december change independent auditors fees starting approved next shareholders meeting resolved convene ordinary shareholders meeting april approving explanatory reports items agenda meeting board directors also resolved propose shareholders meeting allocate profit year totaling euro extraordinary reserve approve distribution part profits set aside extraordinary reserve shareholders gross dividend euro per share ordinary shares outstanding finally implementation restricted shares plan favorable opinion nomination muneration committee verified right marco gobbetti ceo general manager receive free charge shares salvatore ferragamo assigned effective january part plan cycle cov ering year restricted shares restricted shares entirely made treasury shares purchased salvatore ferragamo transferred securities account name ceo general manager april understanding subject lock period twelve months january therefore december details please refer note share based payments explanatory notes consolidated financial statements report april board directors salvatore ferragamo met shareholders meeting confirmed appointment marco gobbetti ceo general manager board directors also granted marco gobbetti powers already granted previous term office including general manager company meeting board directors finally appointed subject favorable opinion board stat utory auditors pierre giorgio sallier tour former group chief financial officer manager strategic responsibilities march financial reporting manager pursuant article bis italian legislative decree february consolidated law finance tuf effective april expiry term office current board directors may following passing newly appointed director fabio gallia board directors decided postpone decisions regarding optation director pursuant article italian civil code subsequent meeting board directors order complete evaluations restore number directors determined shareholders meeting april however meeting board directors proceeded assess respect directors grounds ineligibility incompatibility honesty requirements envisaged decree ministry justice march referred articles quinques paragraph consolidated law finance met basis declarations made accepting nomination office moreover basis declarations made directors information available company board assessed independence requirements set forth article paragraph consolidated law finance referred article ter paragraph consolidated law finance corporate governance code borsa italiana corporate governance code implemented supplemented article board directors regula tion met following directors laura donnini sara ferrero patrizia michela giangualano board statutory auditors met date verified accordance article board directors regulation proper application criteria procedures adopted board directors assess salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting dependence aforementioned directors therefore also may taking account results assessments considering number independent directors company although compliance provisions law corporate governance code would allowed diversification composition control risks committee nomination remuneration committee established meeting board directors resolved new composition follows control risks committee responsible also transactions related parties corporate sustainability patrizia michela giangualano chair laura donnini sara ferrero nomination remuneration committee patrizia michela giangualano chair laura donnini sara ferrero board directors held october pursuant article paragraph italian civil code opted ernesto greco non executive non independent director subject favorable opinion nomination remuneration committee approval board statutory auditors new director opted following sudden passing director fabio gallia may remained office share holders meeting november convened date fact meeting board direc tors resolved convene shareholders meeting november accordance article paragraph italian law decree march extended italian law resolve ordinary session appointment director signing consultancy agreement proposal adopt new text shareholders meeting regulations replace current one extraordinary session iii proposals amend corporate bylaws also october regard outlook financial year board directors announced view continuing uncertainties regarding demand luxury consumers expects operating profit loss full financial year lower end ana lysts expectations date october board directors resolved avail option provided article para graph italian legislative decree september decree therefore confirm pierre tour former group cfo financial reporting manager manager charge certifying sus tainability report accordance provisions article bis paragraph ter consolidated law finance reserving right financial years subject amendment bylaws identify manager specific skills field sustainability reporting subject mandatory opinion control body accordance procedures compliance professional requirements set bylaws december board directors verified director ernesto greco fulfills requirements honesty grounds ineligibility incompatibility provided decree ministry justice march referred articles quinques paragraph consolidated law finance outcomes also disclosed corporate governance report pursuant article bis consolidated law finance also december board directors took note date sales data available confirmed forecast group operating profit loss day day business operations already disclosed company press release published october relation look meeting also announced board directors taken note consolidation situation general slowdown sector group operates new estimates made time market analysts analyzed simulations similar carried impairment test preparation draft financial statements december simulations communicated order ensure full transparency information led conclusion specific individual assets likely written indicative amount million euro final amount determined impairment test based principles governing conduct thereof limited market trends company business expectations well assessments technical parameters related conduct impairment test salvatore ferragamo annual report december direct exposure salvatore ferragamo group russia ukraine conflict conflict ukraine began february limited direct impact majority luxury brands although important global implications noted group hold equity investments companies located areas currently fected conflict operated local distributors turnover represent significant percentage group level addition group suppliers raw materials russia ukraine production sites located group always complied requirements sanction packages adopted european union russia future evolution conflict effects neighboring territories foreseeable time israel palestine conflict regard outbreak conflict israel palestine october noted group direct operational activities limited indirect operational activities territories affected conflict main impact group effect resulting geopolitical tensions instability global financial markets consumption levels tax customs audits disputes updates ongoing audits regard audit undertaken respect ferragamo france concerning income tax vat tax years concluded assessment higher taxable income thousand euro noted december salvatore ferragamo applied inland revenue office unilateral downward adjustment pursuant article quarter paragraph letter presidential decree september well decision may paragraph request granted january november salvatore ferragamo filed application refund higher irap paid income corresponding amount adjusted ferragamo france approximately thousand euro december ferragamo finanziaria consolidating company filed similar ires refund application approximately thousand euro september regional unit tuscany inland revenue office large taxpayers department started documentary inspection tax credits related research development activities pursuant article italian law decree december salvatore ferragamo benefited fiscal years salvatore ferragamo provided requested documents cross amination meeting held october followed informal discussions conducted external consultants august company tuscany regional unit signed report formal consultation parties total credit thousand euro recognized admissible time agreed company would pay part voluntary reversal procedure pursuant salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting article paragraphs italian legislative decree total amount thousand euro years would cancel unused credit thousand euro salvatore ferragamo canceled credit filing tax return october paid total amount due legal deadline december november tokyo metropolitan government bureau taxation initiated general audit ferragamo japan years audit focused transfer pricing findings years ferragamo japan reported tax loss discussions auditors continue today company recorded thousand euro income taxes corresponds amount expected close tax audit agree ment japanese tax authorities tax customs audits commenced period following destruction obsolete goods november february bangkok area revenue office initiated tax audit ferragamo thailand ltd relation tax return tax year discus sions office requested write previous tax losses approximately million euro compa recorded deferred tax assets taxation profit total approximately million euro taxes penalties audit concluded november payment ferragamo thailand ltd amounts requested thai tax authorities addition group believes respect disputes audits present risk feat possible patent box research development design innovation credits update respect three separate tax credits design aesthetic conception technological innova tion introduced article paragraph italian law december known budget law amended article paragraph italian law december known budget law salvatore ferragamo finalized calculation credits due totaling thousand euro credits due totaling thousand euro applicable tax relief rates salvatore ferragamo reduced conse quently estimated credits due equal thousand euro significantly lower previous years already stated annual report result changes introduced article italian law decree october converted relevant amendments law december known salvatore ferragamo annual report december tax decree amended law december known budget law company determined would benefit new patent box regime raises deduction ires irap purposes research development costs associated copyrighted software industrial patents designs models excluding trademarks used directly indirectly business operations therefore starting tax year salvatore ferragamo benefit patent box respect designs models potentially intangible assets referred relevant regulation salvatore ferragamo finalized calculation benefit ires irap benefits totaling thousand euro ires irap benefits totaling thousand euro noted december total amount benefits estimated thousand euro tax benefit estimated total amount thousand euro advance pricing agreements update already stated annual reports noted december company inland revenue office large taxpayers international central department control sector office advance agreements signed renewal advance pricing agreement apa short effective five year period substantially line agreement force previous five year period regard relationship salvatore ferragamo subsidiary ferragamo usa inc noted recent years two companies filed request bilateral advance pricing agreement two relevant tax authorities reached agreement transfer pricing method relevant val ues early june april tax authorities ferragamo usa inc signed advance pric ing agreement years salvatore ferragamo signed corresponding agreement italian tax authorities june salvatore ferragamo applied extension five year period september request accepted september ferragamo usa inc applied corresponding extension december salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting information joining cooperative compliance adempimento collaborativo scheme may salvatore ferragamo submitted request join cooperative compliance called adempimento collaborativo scheme referred italian legislative decree august allows company maintain direct continuous preventive dialog inland revenue office significant transactions may give rise tax risks order share stances taken scheme undergone significant reshaping tax reform enabling law italian law august plemented italian legislative decree december changes introduced include one hand increase benefits participation program terms protection administrative penalties non applicability offense false tax return reduction assessment periods hand increase requirements tax risk management control system aimed ensuring suitability identification preventive management tax risks joining scheme part group broader tax strategy always based preventive manage ment tax risk belief tax compliance fundamental value sustainable ethical business order eligible scheme company adopted tax control framework tcf system internal control tax related processes monitor proper compliance proactively manage tax risk meets requirements relevant oecd recommendations italian internal revenue office guidelines salvatore ferragamo tax control framework structurally integrated company internal control systems order create synergies monitoring activities particular tax control framework integrated system controls financial reporting risks pursuant italian law december identifying controls mitigate administrative accounting risks tax risks organizational model pursuant italian legislative decree june identifying appropriate controls also prevention tax crimes tax control framework salvatore ferragamo adopted following measures preparation tax strategy group global tax strategy parent company salvatore ferrag amo tax strategy approved board directors salvatore ferragamo september published institutional website salvatore ferragamo appointment board directors march tax risk officer tro charge monitoring updating tcf preparing annual report company board directors progress tcf preparation tax compliance model document defines roles responsibilities within corpo rate organization relation tax risks control approved board directors august preparation interpretative risk management policy applied cases significant uncertainty inter pretation tax regulations approved board directors august formalization tax risk map inclusive risks relevant salvatore ferragamo related mitigation measures including deriving accounting standards adopted company definition methodological manual updating monitoring activities responsibility tax risk officer approved board directors march salvatore ferragamo annual report december annual reporting flow planned first year adoption scheme represented main tivities carried implement tcf admitted scheme ended presentation report board directors march examination control risks committee part preliminary investigation activities prior admission scheme inland revenue office verified adequacy tax governance tax control framework adopted salvatore ferragamo octo ber salvatore ferragamo received measure admission cooperative compliance scheme effective tax year january opening meeting procedure officials inland revenue office held company headquarters areas improvement identified promptly acted upon company ensuring implementation october company cooperative compliance office signed minutes defining materi ality threshold three year period duties collaboration transparency collaborative compliance office apply thus interpretative risk management policy fully implemented participating credit amnesty salvatore ferragamo opted credit amnesty procedure introduced article paragraphs decree law october tax years order adjust calculation credit clarifications made software calculation receivables correct calculation errors request sent electronically october amnesty procedure years started total thousand euro adjustment made directly redditi form corporate income tax return tax year submitted november thousand euro based report formal consultation parties signed company tuscany regional unit august company submitted substitute application october total amount thousand euro years credit yet used thousand euro canceled directly income tax return redditi relating tax year filed october noted net amount paid salvatore ferragamo procedure com pany granted credit years totaling thousand euro salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting sustainable growth fund incentives innovation agreement december salvatore ferragamo submitted proposal innovation agreement pursuant decree ministry economic development may agreement represents public funding instrument promote research development projects strategic importance competitiveness production system investments exceeding million euro ministry economic development today mimit ministry business made italy region investment made parties agree ment company thus intended partially finance called intelligent supply chain customer experience extended data succeed project consisting investments innovation development activities carried sesto fiorentino site florence three year period objective succeed implementation technical infrastructure integrated evolved supply chain model makes pos sible react promptly efficiently changes expectations market reference context adoption new distribution model january company ministry economic development tuscany region signed inno vation agreement effect december term subsequently extended december due slowdown investments project owing impact covid pandemic june relative concession decree issued assigns salvatore ferragamo non repay able grant subsidies provided ministry enterprise made italy mimit ministero delle imprese del made italy tuscany region form direct contribution expenditure proximately expenses actually incurred reported view costs already incurred salvatore fer ragamo recognized grant million euro additional million euro income january company received million euro advance grant reporting activity ended march final filing documentation november project positively evaluated technical scientific experts cnr national research council banca intesa sanpaolo preliminary investigation procedure completed total contribution million euro confirmed salvatore ferragamo upon completion reporting recognized adjustment contribution equal million euro item income audits currently underway medio credito centrale mimit complete process paying final amount million euro salvatore ferragamo annual report december information corporate governance ownership structure disclosure pursuant article bis italian legislative decree tuf march company board directors approved report corporate governance ownership structure corporate governance report year ended december prepared also pursuant article bis consolidated law finance tuf corporate governance report includes description corporate governance system adopted com pany information ownership structure adoption corporate governance code date corporate governance report company main governance practices characteristics risk management internal control system respect financial reporting process corporate governance information company corporate governance structure adopted also accordance princi ples corporate governance code see document corporate governance report published com pany website group ferragamo com section governance corporate governance corporate governance reports summary key information company corporate governance issuer profile company structured according traditional management control model shareholders meeting board directors board statutory auditors company bylaws force last approved extraordinary shareholders meeting november bylaws establish essential features company set main rules management eration well provide description membership corporate bodies powers relationships bylaws also include description shareholders rights exercise company abides corporate governance code force january previously company abode corporate governance code adopted italian committee corporate governance listed companies board directors main corporate governance body board directors power duty direct company operations pursuing goal creating value shareholders pursuant bylaws board runs business operations vested powers ordinary extraordinary administration except reserved shareholders meeting law bylaws salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting board directors leads company pursuing sustainable success defines strategies company group accordance said goal monitors implementation defines corporate governance sys tem considered appropriate company operations pursuit strategies promotes engagement shareholders company significant stakeholders shareholders meeting april elected board office date annual report setting number members ten fixing term office three years shareholders meeting convened approve financial statements december date shareholders meeting also pointed leonardo ferragamo chair board directors angelica visconti deputy chair board directors met full shareholders meeting april confirmed appointment marco gobbetti ceo general manager board directors also granted marco gobbetti powers already granted previous term office including general manager company following passing newly appointed director fabio gallia board directors company met may decided postpone decisions regarding optation director pursuant article italian civil code subsequent meeting board directors order complete evaluations however meeting board directors proceeded assess respect directors grounds ineligibility incompatibility honesty requirements envisaged decree ministry justice march referred articles quinques paragraph consolidated law finance met basis declarations made accepting nomi nation office board basis declarations made directors information available company also assessed independence requirements set forth article paragraph consolidated law finance referred article ter paragraph consolidated law finance corporate gov ernance code implemented supplemented article board directors regulation met following directors laura donnini sara ferrero patrizia michela giangualano board statutory auditors met date verified accordance article board directors regulation proper application criteria procedures adopted board directors sess independence aforementioned directors board directors held october pursuant article paragraph italian civil code opted ernesto greco non executive non independent director subject favorable opinion nomination remuneration committee approval board statutory auditors following sudden passing director fabio gallia may shareholders meeting salvatore ferragamo held november resolved complete com position governing body number ten members established shareholders meeting april appointing ernesto greco already opted board directors october director replace fabio gallia term office new director expire together entire board directors date meeting convened approve separate financial statements december salvatore ferragamo annual report december therefore date report board directors consists members leonardo ferragamo chair angelica visconti deputy chair marco gobbetti chief executive officer ernesto greco giacomo ferragamo niccolò ferragamo umberto tombari patrizia michela giangualano independent sara ferrero independent laura donnini independent composition board directors december members board directors parent company december tot men women men women men women men women members board directors executive independent accordance definitions corporate governance code also directors vested management powers hold executive posi tions company subsidiary strategic importance holding company position concern also company considered executive directors however noted february company marco gobbetti reached mutual agreement termination employment administrative relationship effective date approval draft financial statements march moreover taking account fact number independent directors company although compliant provisions law corporate governance code allow diversification compo sition control risks committee nomination remuneration committee board directors effective may resolved board committees follows control risks committee responsible also transactions related parties corporate sustainability patrizia michela giangualano chair laura donnini sara ferrero nomination remuneration committee patrizia michela giangualano chair laura donnini sara ferrero shareholders meeting april appointed new board directors company appoint lead independent director role director responsible setting maintaining internal control risk management system tasks responsibilities provided corporate governance code confirmed held chief executive officer marco gobbetti respect company governance board directors also confirmed responsibilities tasks various entities involved internal control risk management system defined article corporate governance code including specific reference role governing body chief execu tive officer sense given corporate governance code person mainly responsible managing company primarily responsible setting maintaining internal control risk management system control risks committee well heads internal audit functions involved control system salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting control body managers strategic responsibilities respect control body managers strategic responsibilities please note current board statutory auditors elected shareholders meeting april period based slate voting system shall remain office meeting convened approve financial statements december currently members board statutory auditors drea balelli elected slate submitted group minority shareholders company subsequently appointed chair board paola caramella giovanni crostarosa guicciardi acting statutory auditors elected majority slate submitted ferragamo finanziaria antonietta donato roberto coccia substitute statutory auditors elected majority minority slates respectively april board directors appointed pierre giorgio sallier tour former group chief financial officer manager strategic responsibilities march financial reporting manager pursuant article bis consolidated law finance effective april expiry term office current board directors accordingly date report managers strategic responsibilities appointed board direc tors employed company chief transformation sustainability officer giacomo james ferraga group chief financial officer financial reporting manager pierre giorgio sallier tour change control clauses medium long term incentive plan known special award approved shareholders meet ing december article bis consolidated law finance upon satisfying specific conditions ordinary shares company awarded ceo general manager includes change control clause defined exercise control pursuant article italian civil code company entity ferragamo finanziaria said clause circumstance occur vesting period defined said plan ceo general manager shall entitled receive spe cial award bonus defined said plan lump sum amount calculated reference company equity value based valuation company part transaction caused change control information see explanatory report shareholders meeting december second item agenda information document special award plan available company website https group ferragamo com governance shareholders meetings december https group ferragamo com governance corporate governance remuneration stock incentive plans however regard noted february company marco gobbetti reached mutual agree ment termination employment administrative relationship effective date approval draft financial statements march agreement provides among things marco gobbetti waive payment applicable bonus medium long term incentive plan special award salvatore ferragamo annual report december stock incentive plan called performance restricted shares approved shareholders meet ing april article bis consolidated law finance concerning free assignment dinary shares salvatore ferragamo favor certain employees directors collaborators company companies belonging salvatore ferragamo group individually identified three cycles plan divided includes company change control clause meaning clusively transaction third party current reference shareholder acquires legal control company pursuant clause upon occurrence circumstance beneficiaries entitled location shares lifting lock restriction including payment relevant monetary consideration prior terms set forth relevant information document regulations regardless fulfillment conditions therein provided particular proportioned ratione temporis basis portion vesting period already elapsed relation target value informa tion see explanatory report shareholders meeting april third item agenda information document performance restricted shares plan available company website https group ferragamo com governance corporate governance remuneration stock incentive plans credit lines group opened renewed maintained case may medium long term com mitted revolving credit lines euro various counterparties december outstanding lines totaled thousand euro credit facilities used company general existing loan agreements provide event change company form controlling ownership structure lending bank right terminate agreement early request early repayment loan addition group uses credit lines made available currency country residence foreign companies order meet financial needs generally short term fixed maturity uncommitted relevant agreements generally contain clauses event change controlling shareholder entitle lending bank demand early repayment loan salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting main features risk management internal control systems board directors responsible internal control risk management system whole understood set rules organizational procedures structures processes intended monitor efficiency business operations reliability information provided corporate bodies market compliance laws regulations safeguarding company assets defines including support control risks committee guidelines internal control risk management system main risks facing company group including risks could become material terms sustainability group operations medium long term identified measured managed moni tored line italian international reference models defining guidelines internal control risk management system board approved organ izational structure company order support company strategies contribute sustainable success company adopts integrated risk management model line enterprise risk management erm stand ards best practices intended help top management identify main business risks managed well define organize system measures protecting risks erm model based framework issued committee sponsoring organizations treadway commission known coso erm principles consistent company strategic guidelines methodological references guidelines governance enterprise risk management system formalized erm framework policy updated approved board directors meet ing january erm model analyzes main risk areas direct indirect impact achievement goals lined strategic sustainability plan subsequently broken terms specific risk scenarios based geographical area reference risk identification measurement processes require necessary involvement company top manage ment risk owners generally heads functions involved erm process periodically asked express views risk factors may jeopardize achievement organization objectives board directors approved updated erm model meeting held march reference climate change part consolidation enterprise risk management erm framework company completed development vertical analysis dedicated physical climate risks interest group activity involved strengthening assessment climate change risk terms potential impact group assets processes details please refer paragraph climate risks section company continue strengthen assessment climate change risk salvatore ferragamo annual report december entry force corporate sustainability reporting directive csrd implemented italy italian leg islative decree marks important regulatory evolution respect nfrd expanding reporting obligations companies introducing new transparency standards environmental social governance esg performance aim strengthening sustainability responsibility companies accordance current regulations company carried double materiality analysis fundamental tool understanding managing interconnections sustainability business performance analysis focuses assessing mapping impacts risks opportunities relevant organization econom environmental social perspective process described esrs chapter aims define content sustainability report ensure reflects company impact society environment also impact sustainability factors may company financial position performance particular process involved risk management function performing analysis financial materiality consists assessing sustainability risks opportunities may positive negative impact development performance positioning company value chain following integral parts overall internal control system code ethics aims promote maintain appropriate level fairness transparency ethics conduct group business last updated march bring content line revision organization management control model adopted company pursuant italian legislative decree took place date risk management system relation financial disclosure process adopted compliance provi sions article bis consolidated law finance internal control sustainability reporting icsr implements new requirements sustainability climate reporting line provisions directive corporate sustainability reporting directive csrd organization management control model adopted purposes preventing crimes set italian legislative decree recently updated december reflect number legislative changes acknowledge recent safeguards implemented company relation certain areas subject crime risk system managing controlling tax risk understood risk operating violation tax regulations contrast principles purposes tax system known tax control framework implement accordance guidelines inland revenue office part cooperative compliance scheme regulated italian legislative decree anticorruption policy group whistleblowing system updated resolutions board directors july december bring line provisions italian legislative decree march imple menting directive concerning protection individuals well founded grounds report misconduct violates european national provisions detrimental public interest integrity entity belong become aware course work regard noted board directors appointed company ethics committee autonomous inter nal office dedicated receiving processing reports sent whistleblowing channel salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting company internal control risk management system structured follows board statutory auditors responsible supervising effectiveness internal control risk management system supporting board directors assessing findings independent auditors additional report control body members control body regularly take part work control risks committee order always ensure timely exchange relevant information board statutory auditors control risks committee may perform respective duties information corporate governance main features risk management internal control systems adopted reference made corporate governance report published company web site https group ferragamo com section governance corporate governance corporate governance reports director charge establishing maintaining internal control risk management system duty supervising system ensuring identification major business risks presenting board consideration regular basis well designing implementing managing internal control system compliance board directors guidelines continuously verifying adequacy effectiveness adjusting changes operating conditions legal regulatory landscape control risks committee supports assessments decisions board directors advisory consultative role concerning internal control risk management system well approval periodic financial non financial reports among duties expresses views design implementation management well adequacy internal control system reporting work carried board directors every six months specifically control risks committee performs following duties supports board performing duties associated internal control risk management system specifically defining guidelines internal control risk management system main risks facing company subsidiaries properly identified well adequately measured managed monitored also assessing level compatibility risks business operations consistent iden tified strategic objectives assessing least annually adequacy effectiveness internal control risk management sys tem relative characteristics business risk profile assumed describing part corporate governance report main features internal control risk man agement system way coordinated parties involved giving opinion system overall adequacy assessing least annually work plan prepared head internal audit function consulting control body chief executive officer assessing findings auditor letter recommendations additional report control body consulting latter assessing measures intended ensure corporate functions involved controls use effective impartial judgment verifying required professional skills resources assigning supervisory functions per article paragraph letter italian legislative decree supervisory body created specifically purpose salvatore ferragamo annual report december consulting financial reporting manager independent auditors control body assesses whether accounting standards used properly consistently purposes preparing consolidated financial statements iii assesses whether periodic financial non financial reporting suited presenting fairly business model company strategies impact operations performance examines content periodic non financial reporting relevant internal control risk management system gives opinions specific aspects concerning identification main business risks supports sessments decisions governing body related management risks arising adverse events latter become aware including risks may relevant medium long term sustainability company operations conducting appropriate investigations examines periodic reports assessment internal control risk management system particularly relevant reports prepared internal audit function vii monitors autonomy adequacy effectiveness efficiency internal audit function viii may task internal audit function auditing specific operational areas notifying chair board statutory auditors reports board directors activities undertaken well adequacy internal control risk management system least time approval annual half year financial report gives board directors opinion appointment removal remuneration head inter nal audit function well resources made available latter perform duties head internal audit reports board directors responsible ensuring internal control risk management system operational adequate consistent guidelines defined board aising control risks committee board statutory auditors supervisory body regarding management system suitability order achieve acceptable overall risk profile head internal audit permanent invitee control risks committee tax risk officer monitors tax control framework ensuring date effective implementing forms monitoring ensure internal control system tax risks date adequate mitigation purposes assigned tax control framework function works coordination functions responsible company internal control system tax management function reports least annually control risks committee board statutory auditors board directors head risk management coordinates risk management process provides systematic support management involved risk assessment process reports group chief financial officer works coordination system players internal audit sustainability function legal compliance function charge regulatory compliance activities financial reporting manager sustainability reporting manager subjects different reasons contribute identifica tion evaluation management monitoring business risks head regulatory compliance function located within general counsel department charge monitoring risk non compliance regulations applicable group assessing requirements contained therein verifying internal procedures processes adequate prevent potential violations activities works conjunction functions make company internal control system namely heads risk management internal audit reporting control risks committee directly reporting board directors salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting financial reporting manager accordance article bis consolidated law finance responsible defining implementing maintaining suitable effective control procedures safeguard risks entailed financial reporting process activities undertaken identify assess tions events whose occurrence absence may hinder part whole achievement goals trust worthiness accuracy reliability timeliness financial reporting sustainability reporting manager responsible defining implementing maintaining suitable effective control procedures safeguard risks entailed sustainability reporting process includes activities aimed identifying evaluating actions events taken taken could partially fully compromise achievement objectives transparency accuracy reliability timeliness information also responsible managing environmental social governance esg risks ensuring informa tion collected verified communicated accordance applicable regulations international standards supervisory body pursuant italian legislative decree responsible checking effectiveness adequacy compliance organization management control model pursuant italian legislative decree ensuring constantly updated accordance recommendations corporate govern ance code aim making controls information flows easier efficient company decided assign functions supervisory body board statutory auditors ethics committee set manage reports referred italian legislative decree task manage reports concerning violations laws applicable group companies violations organizational models including ferragamo organizational model procedures regulations codes conduct codes ethics policies group companies acts omissions even outside provisions organizational model code ethics internal policies procedures group companies may result violation human rights damage detrimental effects health environment security fundamental rights freedoms iii form threat attempt retaliate whistleblower date report ethics committee consists chief people officer general counsel chief transformation sustainability officer head internal audit salvatore ferragamo annual report december disclosure pursuant article market regulation salvatore ferragamo taken steps required comply provisions set article consob regulation december contains rules implementing consolidated law finance respect markets market regulation regulation governs requirements listing shares companies control entities set governed law countries belonging european union significant purposes preparing consolidated financial statements december aforementioned regulatory provision applied following foreign non subsidiaries ferragamo usa inc ferragamo hong kong ltd ferragamo fashion trading shanghai ltd ferragamo korea ltd ferragamo japan ferragamo mexico ferragamo retail limited ferragamo moda shanghai ltd ferragamo limited ferragamo australia pty ltd particular salvatore ferragamo discloses pursuant procedures deadlines established relevant regulations accounting records subsidiaries prepared purposes drawing consolidated financial statements including least statement financial position income statement receives subsidiaries bylaws information structure powers corporate bodies verifies subsidiaries provide independent auditors information need audit annual interim financial state ments holding company adopt administrative accounting system suitable regularly provide management independent auditors parent company income equity financial data needed prepare consolidated financial statements order fulfill regulatory obligations control body parent company salvatore ferragamo verified suitability administrative accounting system regularly provide management independent auditors parent company salvatore ferragamo income equity financial data needed prepare consolidated financial statements ensure effective flow information meet ings independent auditors financial reporting manager salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting information relations shareholders financial reporting salvatore ferragamo accordance recommendations corporate governance code order maintain constant dialog shareholders potential investors financial analysts set investor relators function well adopted policy aimed managing dialog shareholders march board directors salvatore ferragamo approved engagement policy company considering inter alia recommendations corporate governance code engage ment policies adopted institutional investors engagement policy available company website https group ferragamo com governance corporate governance engagement policy financial data corporate presentations interim reports official press releases real time share price information also available group website http group ferragamo com stakes salvatore ferragamo december ferragamo finanziaria held majority stake share capital sal vatore ferragamo disclosed ferragamo finanziaria pursuant article consolidated law finance form per attachment consob regulation amended supplemented issuers regulation corresponding number shares equal please note ferragamo finanziaria requested register salvatore ferragamo ordinary shares owns special list set company pursuant article quinquies paragraph consolidated law finance benefit increased voting rights described july shares accounting company share capital january shares accounting company share capital pursuant article bylaws article company rules increased voting rights increased vot ing rights attached ordinary shares held ferragamo finanziaria included special list july january became effective august february respectively met requirements applicable law increasing voting rights considering date annual report ferragamo finanziaria owned vot ing rights accounting company share capital attached mentioned shares voting rights accounting company share capital attached shares fore date report ferragamo finanziaria owned voting rights overall accounting total salvatore ferragamo annual report december management coordination salvatore ferragamo salvatore ferragamo subject management coordination ferragamo finanziaria pursuant article seq italian civil code company complies requirements set article markets regulation listing subsidiaries subject management coordination particular noted salvatore ferragamo fulfilled disclosure obligations envisaged article bis italian civil code independent power negotiate customers suppliers iii centralized cash management arrangement ferragamo finanziaria internal control risks committee consisting exclusively independent directors pursuant article paragraph consolidated law finance relevant provisions corporate governance code nomination remuneration committee appoint directors consisting exclusively independent direc tors pursuant article paragraph consolidated law finance relevant provisions corporate governance code december set rules signed ferragamo finanziaria salvatore ferraga governing exchange information company majority shareholder ferragamo finanziaria part management coordination activities order shareholder meet legal obligations particular regard information provided selectively taking account need maintain confidentiality comply applicable laws rules approved board directors december updated july tax consolidation regime salvatore ferragamo adopted domestic tax consolidation regime provided articles seq ital ian presidential decree december tuir consolidated law income taxes ministeri decree march holding company ferragamo finanziaria consolidating company domestic tax consolidation regime continued uninterrupted three year period renewed three year period virtue tacit renewal option article paragraph ministerial decree march shares held directors statutory auditors managers strategic responsibilities information relating shares held directors statutory auditors managers strategic sponsibilities reference made remuneration policy report fees paid per article ter consolidated law finance prepared accordance article quater annex scheme bis issuers regulation article corporate governance code available company website https group ferragamo com section governance corporate governance remuneration remuneration report salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting treasury shares shares stakes parent companies april shareholders meeting salvatore ferragamo authorized board directors pur chase pursuant article italian civil code including multiple installments ordinary shares salvatore ferragamo maximum amount considering ordinary shares salvatore ferragamo held time time company subsidiaries shall exceed company share capital time accordance specific terms conditions board directors could buy back shares one multiple installments period months date meeting resolution april meeting also authorized board directors accordance article ter italian civil code sell including multiple installments part ordinary shares bought accordance specific terms conditions time limit selling ordinary treasury shares meeting held april board directors approved launch ordinary treasury share repur chase program authorized ordinary shareholders meeting date authorization expired october december salvatore ferragamo held treasury shares equal share capital result purchases made respectively also taking account free assignment shares shares related restricted shares plan respectively transferred securities account name ceo general manager february april respectively outlay including bank fees incidental taxes net free assignment restricted shares amounted approximately thousand euro december date report salvatore ferragamo subsidiaries hold shares group hold directly indirectly shares parent companies period buy sell shares parent companies transactions arising atypical unusual transactions salvatore ferragamo companies belonging group undertake atypical unusual transactions transactions due importance size counterparties involved sub ject transaction means determining transfer price timing event may give rise doubts correctness completeness information provided financial statements conflicts terest safeguarding company equity protection minority interests salvatore ferragamo annual report december research development part creative production studies group incurred costs research development study new products use new materials wholly charged income statement costs production amounted thousand euro incurred entirely parent company compared thou sand euro incurred entirely parent company transactions related parties accordance regulation adopted consob resolution march amended supplemented consob rpt regulation salvatore ferragamo adopted related party transaction pro cedure related party procedure aimed identifying principles adopted company order guarantee transparency actual procedural fairness transactions related parties undertaken com pany either directly subsidiaries main body responsible correct application salvatore ferragamo related party procedure company board directors board directors company favorable opinion control risks committee also responsible transactions related parties related party transactions committee reviewed updated related party procedure first july subsequently may take account new provisions introduced consob resolution december consob rpt regulation well development practices internal application experience procedure last amended august prior periodic review required procedure provisions consob rpt regulation particular main changes made update august concerned low value transactions introduction distinction low value thresholds view nature counterparty line consob recommendations indeed following transactions considered low value transactions value equal less euro related party counterparty transaction natural person equal less euro related party person natural person value equal less euro annual basis reference allocation increase favor member governing control body managers strategic responsibilities remuneration economic benefits form whatsoever framework resolutions elimination case records allowed use framework resolution mandatory cases related party procedure also defines transactions greater significance must approved advance board directors basis grounded binding opinion related party transac tions committee identified control risks committee entail disclosure information document transactions fall residual category low val transactions defined transactions lesser significance executed subject grounded non binding opinion related party transactions committee salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting addition cases consob regulation excludes application relevant rules company uses following exemptions within limits allowed consob regulation payment plans based financial instruments approved shareholders meeting article bis consolidated law finance related transactions resolutions already outside scope consob regu lation article paragraph latter remuneration directors holding specific positions well managers strategic responsibilities provided company adopted remuneration policy approved shareholders meeting committee comprised exclusively non executive directors independent involved defining remuneration policy assigned remuneration identified accordance said policy quantified based criteria involving discretionary assessments iii ordinary transactions carried arm length standard terms transactions subsidiaries cluding jointly company well transactions associates long interests classified material parties related company subsidiaries associates party transaction urgent transactions without prejudice disclosure requirements article consob regulation powers reserved board directors respect transactions greater significance board statutory auditors responsible overseeing compliance related party procedure principles indicated consob rpt regulation well observance correct application procedure transactions related parties listed financial statements set detail specific note consolidated separate financial statements reference made cannot considered atyp ical unusual since form part group companies regular business regulated market conditions details related party procedure please refer relevant document available company website https group ferragamo com section governance corporate governance procedure main risks uncertainties corporate governance code places special emphasis correlation risks opportunities organization strategic objectives stressing need consider elements could potentially relevant achieving sustainable success defined objective guides actions board directors consists creating long term value benefit shareholders taking account interests stakeholders relevant company specifically corporate governance code board directors shall define nature level risk compatible company strategic objectives including elements relevant company sustainable success see recommendation therefore company adopted integrated risk management model erm model line enterprise risk man agement erm standards best practices intended help top management identify main business risks managed well define organize system measures safeguarding risks erm model based framework issued committee sponsoring organizations treadway com mission known coso erm principles consistent company strategic guidelines salvatore ferragamo annual report december methodological references guidelines governance enterprise risk management system formalized erm framework policy updated approved board directors meet ing january entry force corporate sustainability reporting directive csrd implemented italy italian leg islative decree marks important regulatory evolution respect nfrd expanding reporting obligations companies introducing new transparency standards environmental social governance esg performance aim strengthening sustainability responsibility companies accordance current regulations company carried double materiality analysis fundamental tool understanding managing interconnections sustainability business performance analysis focuses assessing mapping impacts risks opportunities relevant organization econom environmental social perspective process described esrs chapter aims define content sustainability report ensure reflects company impact society environment also impact sustainability factors may company financial position performance particular process involved risk management function performing analysis financial materiality consists assessing sustainability risks opportunities may positive negative impact development performance positioning company value chain indeed significance risks opportunities assessed accordance group risk assessment methodology mapped integrated group risk register known risk universe information double materiality analysis please refer paragraph consolidated sustaina bility reporting pursuant italian legislative decree september implementing directive document reference climate change part consolidation enterprise risk management erm framework company completed development vertical analysis dedicated physical climate risks interest group activity involved strengthening assessment climate change risk terms potential impact group assets processes details please refer para graph climate risks section company continue strengthen assessment climate change risk initiatives helped strengthen level awareness understanding monitoring within group risks opportunities integrated manner consistent guidelines defined corporate governance code line main regulatory context specific elements main risk areas issues concern parent company subsidiaries group described identification corporate risks called risk universe starts analysis main risk areas direct impact achievement goals outlined strategic sustainability plan subsequently broken terms specific risk scenarios based geographical area reference group risk rating composed two dimensions impact risk likelihood event occurring combination gives final rating represents overall value risk used ranking risks group confirmed following types risks strategic operational financial compliance risks salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting strategic risks category includes relevant risk scenarios terms potential direct indirect impact achievement goals outlined strategic sustainability plan plan based repositioning brand synonym modern refined luxury aim creating emotional bond wider audience macroeconomic geopolitical scenario continues characterized general instability order manage risks resulted thorough constantly updated analysis issues related slowdown luxury market relaunch new offer impacts management distribution channels without neglecting potential impacts terms sustainability brand reputation image risks related slowdown luxury market general slowdown luxury market particularly affected regional trends represents significant risk sector economic uncertainty political instability directly impact demand luxury prod ucts affecting sales brand ability maintain premium positioning context marked ever changing economic political conditions introduces increased complexity processes planning allocating resources among different distribution channels current market environment also likely negative impact performance wholesale channel exacerbated widespread difficulties experienced department stores situation could poten tially negative consequences loss strategic partnerships impact brand image reduced exclusivity access premium customers address challenges company implementing targeted actions local central levels aiming stabilize overall performance mitigate risks arising increasing competition time decline sales retail channel concurrent expansion trend market leaders could result possible need forced relocation key stores especially asia regard plans formulated enhance network performance productivity focus improving store experi ence fortifying personnel organization concurrently initiative sales network consolidation strategy entails protection key positions opening new strategic stores risks related supply chain organizational model adopted group entrusts production process almost entirely specialized ternal workers keeping management organization important stages value chain house current market slowdown general decline demand may lead reduction work opportunities workers group collaborates moreover given ever changing regulatory industry environment particularly respect sustainability issues significant increase consumer investor regulatory attention compliance applicable regulations including related labor law health safety environment company may required incur increased costs make significant investments ensure monitor compliance stringent regulatory standards salvatore ferragamo annual report december failure comply regulatory requirements esg commitments well lack supplier transpar ency result sanctions litigation damage brand reputation regard company implements specific controls procedures respect suppliers order verify ability meet standards set company risks events impact image reputation brand group success depends image brand influenced internal factors relating business definition implementation strategies also variety external factors events may harm damage business ethics values associated risk factors include per ceived quality service product attractiveness customers well risk potential reputational damage related marketing campaigns communication initiatives line company brand image relation esg topics considering relevance may amplifying effect terms reputation impact consumer preferences environment characterized mounting regulatory pressures heightened ethical sustainability pectations customers investors suppliers stakeholders governments company devised group sustainability plan comprising esg building blocks associated targets testament commitment sus tainability failure meet sustainability goals mismatch esg initiatives undertaken stakeholders expectations could negatively impact company brand image competitive advantage mitigate risk esg monitoring management plans defined implemented well strate gies esg rating management stakeholder communication engagement operational risks category includes risks related processes affect effectiveness efficiency day day activities risks include loss key resources know well threats cyber risks climate change effectively addressing issues essential maintaining company standards excellence industry ensuring competitiveness sustainability brand reputation security risks data management dissemination specifically respect cyber attacks possible attacks breaches system could cause unavailability systems destruction loss alteration unauthorized disclosure access personal data transmitted stored otherwise pro cessed group resulting financial reputational losses including associated severe business interruption events risk factors also include related workers potential lack awareness cyber security issues could pose company information management vulnerabilities group cyber risk management strategy involves implementation specific activities aimed strength ening systems enhancing awareness issue dedicated training awareness raising activities cyber awareness training minimizing impact business disruption salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting fact company conducted annual business impact analysis disaster recovery reviews also con stantly monitors cyber threat landscape completed annual cyber maturity assessment initiated third party risk management assessment company adopted security incident response procedure policy approved board directors defines principles guidelines ensure timely effective efficient handling cyber incidents order prevent limit potential negative impact group however company diligence addressing issues remains high company initiated process capitalize opportunities presented artificial intelligence sys tems mitigating time risks associated misuse initiative involved identification subsequent adoption governance model risk loss key resources know current luxury market scenario affects attractiveness companies operating sector risk able fill key positions become vacant successfully manage company turnover risk connected dependence group may regard individuals currently considered strategic resources since cannot easily rapidly replaced internal external staff risk depend ence key staff also connected potential loss technical know reference possibility seeing gradual reduction loss expertise skills needed manage design development production activities particular regard group core business manufacture footwear leather goods risk especially important regard professional staff responsible handling product development dustrial manufacturing processes external local framework characterized gradual reduction crafts manship professional skills end company reviewed strategic approach talent management processes aim promot ing development human resources improving performance individual team identifying specific career paths creating solid succession plans ensure continuity key roles implementation policies also considered strategic asset increase group ability attract talent market optimize ability retain key resources climate risks group continued process initiated implement climate change risk management frame work initiative undertaken enhance group capacity identify potential financial impacts sure effective management adaptation challenges posed climate change among benefits activity provided concrete overview potential economic impact group line company erm approach tangible intangible mitigation measures adopted organization also provided valuable guidance prioritizing future investments resilience measures ensuring alignment evolving regulatory requirements csrd cdp scope analyses encompassed forty assets deemed representative group including assets owned ferragamo selected directly operated stores doss relevant terms net sales key business sup pliers terms type supply turnover salvatore ferragamo annual report december assess vulnerability resilience assets extreme weather events comprehensive mapping cam paign launched campaign focused climate event adaptation measures already adopted group involved group local management selected suppliers integrating collected data interna tionally recognized climate databases possible quantify short term financial impact gross net extreme weather events terms lost turnover due business interruption property damage costs finally possible evolution exposure assets within scope analyses climate change medium long term studied analyzed depth according reference climate scenarios rcp ssc identifying significant deviations short term analyses results activities carried shown group main assets generally mature level mitigation extreme weather events ferragamo benefits extensive insurance coverage signif icantly reduces potential financial impact events financial risks risks directly impact company economic performance equity value risks arising liquid ity management transactions financial instruments market well risks related administrative accounting aspects resource allocation information relating management financial risks information provided ifrs ref erence made specific section explanatory notes consolidated separate financial statements end paragraph accounting standards exchange rate risk group operates international level therefore exposed risks deriving exchange rate fluctu ations affect financial position financial performance due difference value foreign currency costs revenues compared moment pricing conditions set well translation trade financial receivables payables denominated foreign currencies keeping exchange rate risk management policy adopted recent years group manages exchange rate risk arising business line provisions exchange rate risk management policy risk management objectives periodically established corporate level systematic hedging com mercial flows arising sales forecast currencies euro aim mitigating expected risk variability margins arising sales relating future collections addition virtue fact company prepares consolidated financial statements euro fluctuations exchange rates used translate financial statement data subsidiaries originally expressed foreign currency could significant impact results net financial debt consolidated shareholders equity expressed euro group financial statements well financial ratios salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting credit risk group exposure trade credit risk refers exclusively wholesale sales receivables associated licensing rental income investment property revenues combined represent nearly one third global turnover rest refers retail sales payment time purchase exception smaller scale commerce sales within department stores generally payment terms less days credit risk connected financing investing operating activities derivatives hedge exchange rate risk represented inability counterparty issuer instruments meet obligations credit risk regarding group financial assets consisting cash cash equivalents financial assets amortized cost derivatives risk equal book value assets case insolvency counterparty liquidity risk liquidity risk represents risk group cannot meet financial obligations due problems obtaining funds current market price conditions liquidating assets market find necessary financial resourc first consequence negative impact income statement group forced incur addi tional costs meet commitments factors mainly influence group liquidity resources gen erated absorbed current operating investing activities possible distribution dividends expiry possibility renewal debt expiry possibility liquidation financial investments surplus cash end company adopted liquidity investment policy approved board directors purpose policy establish principles rules managing company liquidity managing miti gating related financial risk interest rate risk fluctuating market interest rates affect level net financial charges market value financial assets liabilities salvatore ferragamo group mainly exposed risk recording income statement crease financial charges due unfavorable change interest rates group companies use third party financial resources largely form floating rate bank debt deploy available liquidity mainly money market instruments changes market interest rates affect cost borrowing return forms lending thus level group financial charges income fair value salvatore ferragamo annual report december compliance risks tax risk salvatore ferragamo group subsidiaries countries worldwide therefore tax returns obligations usually subject assessments tax authorities various countries addition due high number value transactions group companies compliance amounts envisaged transactions local international rules principles transfer pricing subject assessment justment tax authorities instruments adopted management limit tax risk tax compliance transfer pricing cannot completely rule risk tax assessments especially taking account lack clear established regulation transfer pricing local laws procedures october company admitted collaborative compliance scheme pursuant italian legislative august effective tax year admission scheme preceded audit inland revenue office adequacy company tax governance internal control system identifying measuring managing monitoring tax risk known tax control framework joining scheme part ferragamo broader tax strategy always based preventive management tax risk belief tax compliance fundamental value sustain able ethical business order ensure correct timely effective approach tax risk management company adopted tax con trol framework hereafter tcf system internal control tax related processes complies oecd guidelines implemented inland revenue office company tcf structurally integrated company internal control systems particular tcf integrated control system financial reporting risks pursuant italian law identifying controls mitigate administrative accounting risks tax risks similarly terms integration tcf identifies appropriate controls also prevention tax crimes already regulated company organizational model pursuant italian legisla tive decree order create synergies monitoring activities two control systems part tax control framework company formalized tax strategy approved board directors september consistent group values principles board directors meeting held march appointed tax risk officer tro entrusted monitoring updating tasks order define operating procedures performance functions company formalized specific operating manual monitoring activities known tro manual presented board directors march describes methods envisaged defining activity plan updating tax risk map carrying second level controls tax compliance model approved board directors august defines roles responsibilities within company organization concerning tax risks management according line defense approach integrated broader internal control system accordance international best practices guidelines inland revenue office salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting line guidelines set tax strategy tax compliance model company aim proactively manage tax risk ensuring tcf timely identification proper measurement control order mitigate impact specifically salvatore ferragamo identifies following areas tax risk may arise tax compliance risks monitored means tax risk map risk failing properly comply tax obligations established law regulatory compliance risks operational nature concern business processes specific stages tax compliance constantly updated supple mented implement relevant regulatory changes interpretation risks controlled interpretation risk policy approved board directors gust risks related application tax provisions arising uncertainty abstract regulatory cases uncertainty qualification cases relation regulatory requirements tax fraud risks risk committing offense constituting tax fraud particular reference predi cate offenses determining administrative liability entities pursuant italian legislative decree addition provisions model compliance tax risk map emphasizes identification tax risks related sensitive areas respect specific cases included tax offenses respect collaborative compliance scheme envisaged italian legislative decree october company cooperative compliance office signed minutes defining materiality threshold three year period duties collaboration transparency collaborative compliance office apply annual basis tro support tax management function prepares general report tax control framework tcf report includes results updating monitoring activities tax inter pretation risks occurred compliance year tcf report prepared tro support tax management function submitted control risks committee approved board directors specifically tax risks presented map related mitigation measures updated testing activities aimed ensuring adequacy effectiveness measures according three year plan completed risks relating protection intellectual property rights risk concerns possibility salvatore ferragamo intellectual property rights may infringed illegal placement counterfeit products online offline market third party use salvatore ferragamo intellectual property rights improper manner purposes permitted current regulations protection intellectual property rights risk infringement group intellectual property rights products trademarks third par ties amplified increased use internet facilitates sale counterfeit products risk take several forms commerce websites sell counterfeit products commerce websites sell original products use group trademarks without authorization iii misuse websites containing ferragamo salvatore ferragamo trademarks domain name salvatore ferragamo order protect intellectual property rights combat aforementioned fringements carries proactive control monitoring activities check presence counterfeit products online platforms worldwide collaboration external providers specialized online sector physical markets interest court court actions civil criminal collab oration specialized legal consultants local customs authorities monitor inspect areas affected counterfeiting phenomenon salvatore ferragamo annual report december risk non compliance laws regulations including european level group subject various jurisdictions operates legal provisions including tax provisions described separately technical rules applicable products manufactured distribution italian european regulations applicable parent company issuer shares traded euronext milan formerly known mercato telematico azionario organized operated borsa italiana since june especially relevant risk regulations include example regulation mar concerning market abuse also specific regulations force relating protection consumers intellectual industrial property rights competition regulations health safety workers environment protection personal data regulations administrative liability legal entities pursuant italian legislative decree liability pursuant law generally industrial compliance regard conformity finished products distributed raw materials used standards provided regulations force well deriving evolution esg issues failure comply delays complying new rules regulations could expose group risk administrative criminal penalties non compliance company undertook implement specific compliance program ensure proper management processes compliance laws regulations subject process also continued particular activities coordinated regulatory compliance function within group legal compliance department completed year included following strengthening periodic regulatory monitoring service matters interest group simultaneous reporting cor porate functions concerned order assess implement action remediation plans necessary completion process updating organization management control model pursuant italian legislative decree aim ensuring closer alignment emerging risks recent regulatory updates business developments enabling group adopt process based approach rather exclusively risk crime based approach followed two additional updates aimed respectively flecting recent regulatory requirements detailing safeguards introduced company respect certain tracked processes iii inclusion members corporate bodies company training program regarding code ethics whistleblowing anti corruption organization management control model pursuant italian legislative decree participation industry association working groups consultations related upcoming regulations outcomes compliance program used represent risks related compliance laws regulations within erm model updated accordingly salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting significant events occurred december february company marco gobbetti reached mutual agreement termination employ ment administrative relationship effective date approval draft financial statements march announced market date addition announced marco gobbetti entitled receive salary fixed remuneration date termination maintain certain fringe benefits december marco gobbetti paid within days termination relationships total gross amount thousand euro ter mination employment relationship gross amount thousand euro waivers granted relation execution termination relationships including particular waiver sti restricted shares lti bonus special award iii reference governance company peri march date appointment new chief executive officer executive powers conferred chair propose distribution delegated powers supported transition advisory committee composed experts consolidated experience sector already worked top management positions within company namely james ferragamo ernesto greco michele norsa take role chairman special advisor consolidate new phase sustainable devel opment brand founding values building work done far aim entering new phase renewal process accelerating implementation strengthening fundamental link brand heritage announcement made february marco gobbetti officially resigned administrative positions company effective march accordance mutual termination agreement reached parties time marco gobbetti duties responsibilities towards company ended accordance mutual termination agreement board directors met day determined opting new member necessary leaving relevant decisions shareholders meeting scheduled april meeting proposal chair favorable opinion nomination remuner ation committee board directors also made certain decisions regarding corporate offices redistributing delegated powers remain effect new chief executive officer identified thorough efficient search process specifically executive chair leonardo ferragamo directors james ferragamo ernesto greco granted management powers support chairman advisory committee composed directors delegated powers chairman special advisor michele norsa remains confirmed com municated february light new structure accordance recommendation corporate governance code article board directors regulation patrizia michela giangualano appointed lead independent director meeting held march board directors inter alia approved draft separate financial state ments december consolidated financial statements december directors report operations containing ferragamo group sustainability report prepared accordance new provisions introduced corporate sustainability reporting directive csrd implemented italian salvatore ferragamo annual report december legislative decree european sustainability reporting standards esrs prepared efrag issued european commission delegated regulation approved corporate governance report prepared company pursuant article bis consolidated law nance iii approved favorable opinion nomination remuneration committee remuneration policy report fees paid prepared pursuant article ter consolidated law finance article quater annex scheme bis consob regulation amended article corporate governance code listed companies approval next shareholders meeting details please refer documentation made available company website https group ferragamo com section governance shareholders meetings resolved call ordinary extraordinary shareholders meeting salvatore ferragamo april confirmed appointment cfo financial reporting officer sustainability reporting officer macroeconomic situation outlook short term economic outlook remains uncertain new economic estimates released international monetary fund january show moderate expected gdp growth worldwide terms individual geographic areas growth expected united states eurozone china united states eurozone china baseline scenario anticipates ongoing disinflationary process major economies accompanied malization monetary policy though still risks slowdown risks combined expected escalation trade tensions developments russian ukrainian middle east conflicts likely con tinue weigh consumers propensity buy spending power moreover luxury market suffering uncertainty evolution macroeconomic situation particularly north america china affects entire asian market due uncertainty surrounding demand luxury goods adopting cautious stance regarding near term expectations continue strengthen product offerings building heritage optimiz ing targeting customer segments confident ability respond evolving market trends maintaining focus revenue performance profitability salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting separate financial statements december salvatore ferragamo proposal approval dear shareholders relying approval structure basis presentation separate financial statements year ended december relation results achieved hereby recommend approve separate financial statements propose covering loss totaling euro using extraordinary reserve florence march behalf board directors chair leonardo ferragamo salvatore ferragamo annual report december consolidated sustainability reporting board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december salvatore ferragamo annual report december commitment sustainable development since introduction brand creativity innovation world class craftsmanship always core values salvatore ferragamo group guiding design production creation years deep connection local community culture made salvatore ferragamo group increasingly aware need strong commitment protect places operates people work group going beyond requirements domestic international laws rules regulations commitment sustainability salvatore ferragamo investing sustainability heart salvatore ferragamo development journey maintaining unwavering commitment creativity excellence phase group strengthened dedica tion sustainability pursuit economic growth takes account positive negative impacts business activities particular attention social environmental aspects salvatore ferragamo attributes deep meaning concept sustainable development extends beyond mere use innovative materials embracing bond local communities areas operates demonstrating great respect environment people involved values passed group founder lie basis company success critical stakeholders commitment sustainability built years uncompromising behavioral model drawing spiration values intrinsic salvatore ferragamo history passion craftsmanship excellence creativity made italy innovation understanding ensuring compliance principles translate ethically correct behavior inside outside group significantly contribute support terms econom growth credibility consolidated sustainability reporting pursuant italian legislative decree september implementing directive board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december table contents general disclosures basis preparation esrs general basis preparation sustainability statements esrs disclosures relation specific circumstances governance esrs gov role administrative management supervisory bodies esrs gov information provided sustainability matters addressed undertaking administrative management supervisory bodies esrs gov integration sustainability related performance incentive schemes esrs gov statement due diligence esrs gov risk management internal controls sustainability reporting strategy esrs sbm strategy business model value chain esrs sbm interests views stakeholders esrs sbm material impacts risks opportunities interaction strategy business model management impacts risks opportunities iro description processes identify assess material impacts risks opportunities iro disclosure requirements esrs covered undertaking sustainability statement environmental information disclosure pursuant article regulation esrs climate change esrs transition plan climate change mitigation sbm material impacts risks opportunities interaction strategy business model esrs policies related climate change mitigation adaptation esrs actions resources relation climate change policies esrs targets related climate change mitigation adaptation esrs energy consumption mix esrs gross scopes total ghg emissions esrs ghg removals ghg mitigation projects financed carbon credits esrs anticipated financial effects material physical transition risks potential climate related opportunities esrs pollution salvatore ferragamo annual report december esrs policies related pollution esrs actions resources related pollution esrs targets related pollution esrs substances concern substances high concern esrs water marine resources esrs policies related water marine resources esrs actions resources related water marine resources esrs targets related water marine resources esrs water consumption esrs biodiversity ecosystems esrs transition plan consideration biodiversity ecosystems strategy business model sbm material impacts risks opportunities interaction strategy business model esrs policies related biodiversity ecosystems esrs actions resources related biodiversity ecosystems esrs targets related biodiversity ecosystems esrs resource use circular economy esrs policies related resource use circular economy esrs actions resources related resource use circular economy esrs targets related resource use circular economy esrs resource inflows esrs resource outflows social information esrs workforce sbm material impacts risks opportunities interaction strategy business model esrs policies related workforce esrs processes engaging workforce workers representatives impacts esrs processes remediate negative impacts channels workers raise concerns esrs taking action material impacts workforce approaches managing material risks pursuing material opportunities related workforce effectiveness actions esrs targets related managing material negative impacts advancing positive impacts managing material risks opportunities esrs characteristics undertaking employees esrs characteristics non employee workers undertaking workforce esrs diversity metrics board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december esrs adequate wages esrs social protection esrs persons disabilities esrs training skills development metrics esrs health safety metrics esrs remuneration metrics pay gap total remuneration esrs incidents complaints severe human rights impacts esrs workers value chain sbm material impacts risks opportunities interaction strategy business model esrs policies related value chain workers esrs processes engaging value chain workers impacts esrs processes remediate negative impacts channels value chain workers raise concerns esrs taking action material impacts value chain workers approaches managing material risks pursuing material opportunities related value chain workers effectiveness actions esrs targets related managing material negative impacts advancing positive impacts managing material risks opportunities esrs affected communities sbm material impacts risks opportunities interaction strategy business model esrs policies related affected communities esrs processes engaging affected communities impacts esrs taking action material impacts affected communities approaches managingmaterial risks pursuing material opportunities related affected communities effectiveness actions esrs targets related managing material negative impacts advancing positive impacts managing material risks oportunities entity specific kpi made italy esrs consumers end users sbm material impacts risks opportunities interaction strategy business model esrs policies related consumers end users esrs processes engaging consumers end users impacts esrs processes remediate negative impacts channels consumers end users raise concerns esrs taking action material impacts consumers end users approaches managing material risks pursuing material opportunities related consumers end users effectiveness actions esrs targets related managing material negative impacts advancing positive impacts managing material risks opportunities salvatore ferragamo annual report december governance information esrs business conduct esrs business conduct policies corporate culture esrs management relationships suppliers esrs prevention detection corruption bribery esrs incidents corruption bribery esrs political influence lobbying activities esrs payment practices management statement independent auditor report salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report general disclosures salvatore ferragamo annual report december basis preparation list companies consolidated line line basis follows ferragamo france sas ferragamo limited ltd ferragamo suisse ferragamo monte carlo sam ferragamo belgique ferragamo deutschland gmbh ferragamo espana ferragamo retail nederland ferragamo austria gmbh ferragamo usa inc ferragamo canada inc fer international inc sator realty inc ferragamo mexico ferragamo chile ferragamo argentina ferragamo brasil roupas acessórios ltda ferragamo japan ferragamo hong kong ltd ferragamo australia pty ferragamo korea ltd ferragamo singapore pte ltd ferragamo retail india private ltd ferragamo thailand limited ferragamo malaysia sdn bhd ferrimag limited ferragamo retail macau ltd ferragamo retail ltd ferragamo retail taiwan ltd ferragamo moda shanghai ltd ferragamo fashion trading shanghai company ltd although companies ferragamo retail india private ltd ferrimag limited consolidated line line basis respect financial data non financial data reported exist esrs transitional provision related chapter value chain general basis preparation sustainability statements section board directors report oper ations represents consolidated sustainability porting hereinafter also referred sustainability reporting sustainability report sustainability disclosures pursuant italian legislative decree september implementing directive companies belonging group consisting salvatore ferragamo sub sidiaries hereinafter also referred group salvatore ferragamo group period january december scope social environment governance data infor mation equivalent financial statements encompasses fully consolidated subsidiaries exception ferragamo retail india private ltd longer operational subholding company ferrimag limited chinese area players salvatore ferragamo value chain considered definition drafting document fact reported paragraph sbm impacts risks opportunities related erations value chain upstream stream analyzed update double materiality moreover updating group policies carried reporting year suppliers third parties identified recipients policies finally sake transparency noted data relating value chain currently available appropriate level completeness accuracy exception scope emissions however group committed implementing necessary measures include required data future years taking vantage phase period provided csrd disclosures relation specific circumstances ways presenting quantitative data considered previous reporting relating specific circumstances expressly indicated specific notes addition order present fairly group perfor mance ensure data reliability use estimates limited much possible estimates document made using best available meth ods expressly noted technically possible sustainability reporting information provided along comparison year defining time horizons group deviate identified esrs section salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report governance gov role administrative management supervisory bodies administrative management supervisory bodies play crucial role supervising procedures adopted identification management monitoring risks well assessing material impacts oppor tunities responsibility extends verifying effective strategies adequacy control processes promotion transparent responsible governance ensure business decisions aligned sus tainability growth targets composition diversity members company administrative management supervisory bodies set forth role board directors leonardo ferragamo chair angelica visconti deputy chair marco gobbetti chief executive officer general manager giacomo ferragamo sara ferrero patrizia michela giangualano ernesto greco umberto tombari laura donnini nicolò ferragamo control risks committee patrizia michela giangualano chair sara ferrero laura donnini nomination remuneration committee patrizia michela giangualano chair sara ferrero laura donnini board statutory auditors andrea balelli chair paola caramella acting statutory auditor giovanni crostarosa guicciardi acting statutory auditor roberto coccia substitute statutory auditor antonietta donato substitute statutory auditor independent auditors kpmg manager charged preparing company financial reports including sustainability reporting pierre tour salvatore ferragamo annual report december percentage independent members board directors regard business conduct board direc tors hereinafter also referred bod board responsible management company implementation corporate purpose activities required particular board guides group towards sustainable success responsi ble defining monitoring company strategies promoting ongoing dialog shareholders stakeholders approves multi year business plan assesses creation long term value achievement pre established objectives also deter mines level risk compatible company strategies periodically assesses governance ganizational structure internal control system also discusses resolves significant strategic economic financial transactions ten members board experience com pany sectors products geographical areas details reference made https group ferragamo com governance board directors members bod specifically rep resent employees workers board directors fully informed company situa tion makes decisions aimed ensuring overall well people work company members board directors appointed basis reputation integrity well knowledge experience industry specific reference expertise sustainabili bodies whole directly possess case make use noted three members company board directors namely giacomo james ferragamo also holds role chief transformation sustainability officer within group umberto tombari patrizia miche giangualano experience sustainability information please refer résumés available company website https group ferragamo com governance board directors board directors also decided assign responsibility corporate sustainability control risks committee composed non ecutive independent directors patrizia michela angualano chair laura donnini sara ferrero functions committee consist investigating making proposals providing advice bod order promote integration national inter national best practices company governance environment social governance factors company strategies aim achieving sus tainable success reflected creation long term value benefit shareholders taking account interests stakeholders relevant company particular reference prepa ration approval publication filing sustainability reporting control risks committee assists bod carrying following preliminary activities examining updating relevant company proce dure examining process results double materiality analysis coordinated sustainability function providing non binding opinion iii exam ining content sustainability reporting preparation accordance esrs consulting sustainability reporting manager independent auditors supervisory body sustainability function providing non binding opinion gard internal control sustainability reporting gender balance within board directors bod male female total executive members non executive members total percentage salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report gov information provided sustainability matters addressed undertaking administrative management supervisory bodies board directors exercises power duty management company activities seeking create value shareholders ferragamo stakeholders pursuant bylaws board rectors runs business operations vested powers ordinary extraordinary administra tion except reserved shareholders meeting law bylaws board directors control risks commit tee board statutory auditors supervisory body company functions responsible monitoring impacts risks opportunities responsibilities body regard impacts risks opportunities defined mandates granted board directors related pol icies including internal control risk management system hierarchical levels relating administrative management supervisory bodies require ternal audit manager head risk management head regulatory compliance report board directors control risks committee thus ensuring transparency information management impacts risks opportunities supported controls procedures inte grated company functions internal audit risk management legal compliance sus tainability effective monitoring administrative management supervisory bodies well senior managers responsible setting objectives terms impacts risks opportunities also monitor progress governance system periodic reports icsr control risks committee carries following tasks assisting board directors defining guidelines icsr assessing least annually adequacy effectiveness icsr assessing measures intended ensure cor porate functions involved controls exercise effec tive impartial judgment ensuring required professional skills resources assessing consulting sustainability reporting man ager supervisory body findings independent auditors letter recommendations additional report supervisory body administrative management supervisory bod ies along respective committees regularly informed relevant impacts risks oppor tunities well implementation due diligence results effectiveness policies actions metrics objectives adopted address mentioned chief sustainability transfor mation officer member board directors oversees sustainability issues within board moreover esg steering committee meets every two months mandatory participation top management ceo ensure adequate timely information support strategic decisions bod finally occasion presentation teriality analysis updated annually control risks committee verified adequacy approach adopted board directors called upon approve results list impacts risks portunities analyzed materiality analysis approved administrative bodies presented section esrs sbm addition sustainability plan examined control risks committee subsequently approved board directors annual intervals furthermore new policies updates existing poli cies presented committees ensures con sistency company principles objectives result continued alignment organ ization strategy values salvatore ferragamo annual report december board directors responsible ternal control risk management system defines guidelines support control risks committee ensure identification measurement management monitoring main business risks including related sustainability medium long term board directors also approved organizational structure designed support strategies sustainable success adopted integrated risk management model compliance international terprise risk management erm standards industry best practices internal control system designed ensure achievement strategic objectives compliance regulations includes code ethics intended promote maintain appropriate level fairness transparency ethical conduct performance group operations risk management system related financial disclo sures adopted compliance art bis consolidated law finance internal control sustainability reporting icsr implements new requirements sustaina bility climate reporting line provisions directive corporate sustainability porting directive csrd organization management control model adopted purposes preventing crimes set italian legislative decree hereinaf ter referred model system managing tax risk understood risk operating violation tax regulations contrast principles purposes tax system known tax control framework implemented accord ance guidelines inland revenue office part cooperative compliance regime regulated italian legislative decree anticorruption policy group whistleblowing system dated resolution board directors july december bring line provisions italian legislative decree march implementing directive concerning protection persons well founded grounds report misconduct vio lates european national provisions detrimen tal public interest integrity entity belong become aware course work internal control risk management system involves various bodies listed together functions board statutory auditors responsible supervising effectiveness internal control risk management system supporting board directors assessing findings independent ditors additional report control body director responsible setting maintaining internal control risk management system duty supervising system managing identification main business risks presenting board consideration regular basis well designing implementing managing internal control system compliance board directors guidelines continuously verifying adequacy effectiveness adjusting changes operating conditions legal regulatory landscape control risks committee crc supports assessments decisions board directors advisory consultative role concerning internal control risk management system well approval periodic financial non financial ports among duties expresses views design implementation management well adequacy internal control system reporting work carried board directors every six months internal audit manager reporting board rectors responsible ensuring internal control risk management system oper ational adequate consistent guidelines defined board liaising control risks committee board statutory auditors pervisory board regarding management sys tem suitability order achieve acceptable overall risk profile tax risk officer monitors tax control framework ensuring date effective implementing forms monitoring ensure internal control system tax risks date equate mitigation purposes assigned salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report head risk management coordinates risk management process provides systematic support management involved risk assessment process head regulatory compliance charge monitoring risk non compliance regulations applicable group therefore assesses requirements contained therein verifying internal proce dures processes adequate prevent potential violations manager charged preparing company financial reports accord ance art bis tuf responsible defining imple menting maintaining suitable effective control procedures manage risks entailed financial disclosures activities undertaken identify assess actions events whose occurrence absence may hinder part whole achievement goals trustworthiness accuracy reliability timeliness financial disclosures sustainability reporting manager responsible defining imple menting maintaining suitable effective control procedures safeguard risks entailed sustainability reporting process also sponsible managing environmental social governance esg risks suring information collected verified communicated accordance applicable regulations international standards supervisory body per italian legislative decree responsible checking effectiveness adequacy compliance organization man agement control model pursuant italian legislative decree ensuring constantly updated ethics committee created manage reports referred italian legislative decree entrusted task managing reports concerning vio lations pertaining laws applicable group companies organizational models including model procedures regulations codes conduct codes ethics policies adopted group companies actions omissions even outside scope provisions model code ethics internal policies procedures adopted group companies may lead violations human rights damage detrimental effects health vironment security fundamental rights freedoms iii form threat attempt retaliate whistleblower moreover company established esg steering committee monitor sustainability plan provide feedback company performance made direct reports ceo chaired chief transformation sustainability officer committee meets every two months evaluate progress sus tainability plan sustainable initiatives undertaken company functions group established continuous improvement program sustainability plan developed sustainability policy updated sustainability policy aim establish corporate culture oriented towards fairness professionalism promoting honesty integrity transparency encouraging sustainable development dialog corporate ethics stakeholder responsibility recipients sustainability policy corpo rate bodies employees individual operating name behalf company within group esg steering committee bimonthly basis salvatore ferragamo annual report december salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report sustainability function responsible supervising sustainability policy coordinating sustainability projects chair board directors control risks committee ensure relevant implementation across group aim fully integrating sustainability group business strategies group strengthened commitment integrating strategic plan sustainability strategy described detail sustainability plan new plan period updated approved board directors aims create culture sustainability respects pro tects promotes excellence creation shared value ferragamo stakeholders new direction integrates past objectives new challenges future sustainability plan group three year horizon rests five pillars moving towards net zero emissions fostering materials innovation leading responsible value chain empowering people creating value global communities line recommendations corporate governance code best practices area certain targets identified sustainability plan concern ing aforementioned pillars included variable short long term remuneration systems group managers order engage company employees pursuit targets also indicated port remuneration policy fees paid subject approval shareholders meeting scheduled april gov integration sustainability related performance incentive schemese since line corporate governance code industry best prac tices group linked achievement certain targets sustainability plan part short long term variable remuneration managers directors also individual contributors detailed remuneration report choice encourages assumption responsibility sustainability goals spread culture sustainability within company incentive plans follows short term incentive sti annual bonus awarded approximately management employees based regional group financial performance group esg performance strategic functional priorities individual strategic objectives sti lti based esg performance salvatore ferragamo annual report december road map lti plan variable muneration linked sustainability goals ben eficiaries structure ensures performance incentives aligned company long term sustainability strategy details please refer remu neration report approved annually bod gov statement due diligence salvatore ferragamo recognizes importance due diligence committed achieving full com pliance applicable regulations coming years group currently implementing measures fill gaps may arise initiatives include adoption new company policies updating internal processes ongoing training personnel ensure greater awareness competence compliance matters aim create consolidated robust sustainable due diligence process complies regu lations also creates value company stakeholders bright program performance based incentive tail positions linked store performance kpis long term incentive lti three year share based bonus plan linked group financial performance esg metrics performance bonus italy incentive linked company collective performance performance measured sustainability goals sti kpis include reduction emissions particular focus scope emissions also thanks active involvement partners value chain increase use raw mate rials low impact climate improve ment circularity many aspects portion variable remuneration linked sustainability goals ceo sti plan exec utives beneficiaries weighting esg goals strengthened illus trated remuneration report lti policy considers metrics transparent sustainable governance supply chain peo ple engagement related action plans gender pay gap measurement certification implementation core elements sustainability due diligence paragraphs sustainability statement embedding sustainability due diligence governance strategy business model gov role administrative management supervisory bodies gov information provided sustainability matters addressed undertaking administrative management supervisory bodies gov integration sustainability related performance incentive schemes sbm material impacts risks opportunities interaction strategy business model engaging affected stakeholders key steps sustainability due diligence sbm interests views stakeholders gov information provided sustainability matters addressed undertaking administrative management supervisory bodies iro description processes identify assess material impacts risks opportunities gov statement due diligence identifying assessing adverse impacts sbm material impacts risks opportunities interaction strategy business model iro description processes identify assess material impacts risks opportunities gov statement due diligence taking actions address adverse impacts actions resources relation climate change policies actions resources related pollution actions resources related water marine resources policies actions resources related resource use circular economy taking action material impacts workforce approaches managing material risks pursuing material opportunities related workforce effectiveness actions taking action material impacts value chain workers approaches managing material risks pursuing material opportunities related value chain workers effectiveness action taking action material impacts affected communities approaches managing material risks pursuing material opportunities related affected communities effectiveness actions taking action material impacts consumers end users approaches managing material risks pursuing material opportunities related consumers end users effectiveness actions gov statement due diligence tracking effectiveness efforts communicating results gov statement due diligence salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report gov risk management internal controls sustainability reporting ferragamo group launched project define implement inter nal control sustainability reporting hereinafter also referred icsr aim strengthening consolidating existing reporting practices system developed response requirements european sustainabil ity reporting standards esrs represents set internal procedures tools adopted order achieve company objectives reliability accuracy depend ability timeliness information also ensures correct use sustainability standards purposes consolidated sustainability reporting system developed according coso framework scigr repre sents benchmark component group internal control system established maintained assessed operates compliance regulations force principles corporate governance integrating group risk management internal control system respect risk management internal control system related sus tainability reporting process group sustainability reporting manager defined implemented control reporting system sus tainability information model developed supported periodic checks operational effectiveness controls supporting sustainability reporting certification process starting specifically system designed consist following main components process identify main risks related sustainability reporting process controls monitor identified risks presented risk control matrices describe among things esg risks related control activities disclosure requirement considered relevant sustainability reporting process business process approved board directors company preparation dissemination sustainability reporting regulation sustainability reporting manager approved board directors company internal certification process requires delegated administrative bod ies heads organizational units provide sustainability reporting manager statements regarding completeness reliability rele vant information flows proper functioning internal control system preparation sustainability reporting icsr definition committee sponsoring organizations treadway commission achieving effective internal control sustainability reporting icsr building trust confidence coso internal control integrated framework salvatore ferragamo annual report december managed annually sustainability function support risk management function materiality thresholds defined order identify level priority mapping control system underlying quantitatively material disclosure requirements drs taking account potential impact information aspects consideration materiality topics relation objectives group sustainability plan kpis already reported sustainability reporting inclusion data kpis already disclosed banks sustainability reporting esg cov enants loans presence mbos related sustainability kpis qualitative assessments sustainability reporting manager main potential reporting risks identified include accuracy incompleteness data collected errors calculation indicators non compliance esrs requirements identified risks risk control matrix define mitigation strategies related controls subject specific periodic testing activities ordinated group internal control function start ing aimed verifying adequacy design effectiveness controls place mitigate reduce identified risks checks allow identify corrective actions introduction compensating controls changes operational processes ensure adequate control critical areas results risk assessment internal controls integrated business processes continuous process monitoring periodic checking functioning key controls process involves collaboration corporate bodies board external certification process based reports statements sustainability reporting manag pursuant art bis paragraph ter italian legislative decree company developing process continuously monitor adequacy effective application relevant company procedures periodic checks design effective operation controls definition corrective action plans improve ment plans also providing structured reporting process board directors ensures adequate information results monitoring activities carried group sustainability information control porting system subject continuous update maintenance process order ensure prepa ration sustainability reporting remains appropriate consistent time following changes group business organization processes group defined formalized type risks related mitigating controls analyzing data collection flows related identified disclosure quirements defining nature frequency persons responsible execution process preparing approving publish ing sustainability reporting risks related fail ure achieve control objectives analyzed sure report presented accordance regulations principles govern preparation minimize likelihood impact critical issues system monitoring reporting sustainability information based thorough assessment risk reporting errors developed basis quali tative quantitative criteria specifically based material sustainability topics identified double materiality analysis information risk management assessment found paragraph main risks uncertainties salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report directors group ceo control risks com mittee sustainability function sustainability reporting manager interacts collaborates administrative management supervisory bodies company organizational structures order ensure correct effective performance assignment received therefore sustainability reporting manager informs board directors control risks com mittee presence board statutory audi tors means periodic report results least year performance activity responsible highlighting critical issues arisen period measures tak planned overcome coordination ceo also informs ceo matters due criticality seriousness may require urgent decisions board directors reporting allows effectiveness internal control system monitored ensures administrative management supervisory bodies timely accurate information process ensures compliance regulations corpo rate governance principles also supports alignment sustainability goals provides solid founda tion integrated risk management transparent reporting salvatore ferragamo annual report december strategy sbm strategy business model value chain group strategy business model value chain well inputs puts results integration sustainability issues sustainability related goals described annual report section salvatore ferragamo group activities sustainability topics identified material salvatore ferragamo presented section esrs sbm information business model adapts manage sustainability impacts risks opportunities presented alongside information provided material sustainability topic number employees per geographical area provided section workforce revenues ifrs segments presented section seg ment reporting sustainability plan salvatore ferragamo launched procedure defining sustain ability goals based united nations sustainable development goals sdgs company identified main objectives pursued adoption group first sustainability plan outlined series actions implemented internally group strengthened commitment environment joining fashion pact integrating three new sdgs sustainability plan climate action life water life land plan reflects commitments expressed group sustainability policy updated annually build reinforce shared sion group level environment social governance areas promoting culture sustainability based respect protection promotion excel lence aims integrate existing objectives new challenges future velopment respond interests opinions stakeholders doc ument shared company top management ceo control risks committee oversees company sustainability issues esg steering committee made heads functions involved ceo meets every two months checks progress target event delays completing actions underlying targets committee develop solutions achieve target within time frame established sustainability plan since line corporate governance code industry best practices group linked achievement certain tar gets sustainability plan part short long term variable remu neration managers directors detailed remuneration report information issue given section esrs gov choice encour ages assumption responsibility sustainability goals spread culture sustainability within company fashion pact members since salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report group sustainability plan three year hori zon rests five pillars moving toward zero emission foster innovative materials leading responsible value chain empowering people creating value global communities plan identifies specific targets divided among different pillars defines implementation period action update carried past years priorities considered riving adoption sdgs signing fashion pact definition science based targets applicable regulatory requirements following targets apply group whole regions operates also extend value chain spe cifically first pillar moving toward zero emissions aims ensure continuity virtuous activities carried internally respect environment fostering materials innovation pillar relevant ferragamo products aims provide cus tomers end users quality well environ mental social responsibility group conscious choices leading responsible value chain pillar aims implement strategies enable commer cial partners collaborators implement virtuous environmental cycle last two pillars empowering people creating value global communities focus ferragamo people social responsibility aimed promoting fair inclusive practices within company externally communities operates esg building block target timing esrs reference moving towards zero emissions achieving net zero esrs reduction scope scope absolute ghg emissions compared science based target esrs reduction scope absolute ghg emissions deriving purchase goods services downstream transportation distribution compared science based target esrs esrs renewable energy across operations esrs fostering materials innovation raw materials lower environmental impact esrs elimination single use virgin plastic packaging esrs implement circularity principles across ferragamo operations products lifecycle esrs leading responsible value chain foster value chain transparency promote collaboration business partners develop shared esg projects esrs esrs definition strategy responsible use chemicals zdhc progressive phase including aspects related water resources esrs esrs esrs support biodiversity preservation sustainable forest management toward zero deforestation esrs esrs empowering people attract develop empower people equitable talent journey esrs spread ground culture diversity inclusion equal opportunities esrs nurture engagement well activities employees belonging esrs creating value global communities strengthen positive social impact local communities around globe esrs enhance customer information awareness engagement ferragamo esg actions esrs salvatore ferragamo annual report december business model value chain ithe success group based pursuing value creation strategy time centered monitoring value chain adoption shared group organizational model various product categories respecting values quality made ita group always committed supporting development local communities promoting ita world class manufacturers carefully purchasing products services almost exclusively tier tier italian suppliers philosophy founder remained deeply connected roots still lives strategy group relies wide network carefully selected qualified contract manufacturers known outstanding craftsman ship many working salvatore ferragamo years among tier suppliers provide processing services supply finished prod ucts supply raw materials components tier suppliers instead include around subcon tractors processing services supply fin ished products subcontractors raw materials components order deliver quality product making production distribution cycles efficient flexible group pays special attention key stages supply chain limiting subcon tracting one tier order better monitor quality throughout supply chain similarly group directly manages product development industri alization stages performing quality safety controls upstream downstream manufacturing process whole production distribution sys tem customer managed network single brand directly operated stores dos network single brand third party operated stores tpos multi brand channel wholesale group strategy aims enhance competitive sition among leaders global luxury market reacting changes operating scenario order create value shareholders sustainable profitable growth main strategic guidelines summarized follows product always heart strategy infusing new energy brand enriching customer experience prioritizing digital initiatives group focuses maintaining strengthening position global luxury segment putting product heart strategy creating products always desirable tune consumer tastes objective pursued integrating collections satisfy new purchasing occasions particular attention younger cus tomers increasing focus product categories form core group offer footwear leather goods also ready wear group intends continue brand enhancement strategy enriching customer experience evolving way speed group com municates products updating language used communicate order clearly convey creative vision prioritizing digital communication attract inspire new customers enriching consumer experience omnichan nel services innovating physical store experience details please refer section board directors report operations details please refer section board directors report operations salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report analysts financial non financial rating agencies regulatory governmental bodies public administration final customers schools universities distributors investors shareholders suppliers contract manufacturers employees media influencers ngos non profit organizations local communities trade associations group identified selected stakeholders years aim understanding expecta tions translating concrete actionable objectives matter fact every year group promotes activities engage stakeholders involving definition economic social environ mental aspects based principles transparency integrity professionalism initiatives limited external audience also include tegration culture sustainability compa corporate life strategy internal stakeholders employees shareholders vestors distributors suppliers contract manufac turers external stakeholders final customers schools universities regulatory governmental bodies public administration local communities non governmental organizations ngos non profit organizations media influencers trade associations analysts financial non financial rating agencies consultations regular meetings partnerships collaboration specific projects group carries series activities aimed involving stakeholders linking initiatives company commitments main objective activities ensure stakeholders expectations taken account company decision making process thereby contributing improving group sustainability social respon sibility promoting constructive ongoing dialog sbm interests views stakeholders salvatore ferragamo annual report december table summarizes engagement actions divided stakeholder category stakeholders summary commitments activities summary engagement efforts summary stakeholder expectations final customers group continues pursue several initiatives aimed customer satisfaction adopting customer centric strategy allows anticipating needs existing potential customers order create short medium long term value among many commitments undertaken particular group strategic approach efforts field anti counterfeiting mentioned business projects aimed greater customer understanding engagement virtual showroom clientiamo app relationships related sales process stores ecommerce quality safety traceability sustainability products materials quality personalized purchasing experience ongoing support advice information correct use maintenance products analysts financial non financial rating agencies group committed communicating financial non financial information transparent timely manner according best practices best methodologies available structured reporting part requests financial non financial information transparency timeliness reliability financial non financial information trade associations group maintains constructive relationships trade associations also view promoting understanding needs trends fashion luxury markets facilitating discussion contributing sustainable development sector made italy industry contribution events activities specific meetings conferences including area sustainability compliance requirements participation active involvement group dialog events activities promoted sharing relevant industry insights sustainability trends global initiatives sales trends specific products national international collaborations initiatives aimed promoting made italy products throughout world media influencers group maintains close ongoing collaboration media influencers including interviews presentations dedicated events committing contributing promotion information campaigns related sustainable innovations new circular trends industry innovations actions taken favor community environment interviews company events press releases accurate truthful communication group performance main market innovations introduced presentation social cultural environmental initiatives undertaken presentation developed innovations sustainability trends ngos non profit organizations group constantly dialogs ngos third sector world contributing specific projects fact engaged initiatives partnerships dedicated well health women children years end group promotes paying close attention requests expectations many non profit organizations maintaining close collaboration focused supporting local communities dialog collaboration non profit organizations including provision donations contributions sponsorships group participation support cultural development social inclusion projects local communities group carries activities paying close attention needs areas operates aim extending positive impacts activities local communities initiatives engage local communities ongoing relationships main organizations area implementation business practices protect territory promotion local development salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report stakeholders summary commitments activities summary engagement efforts summary stakeholder expectations regulatory governmental bodies public administration group engages regulatory governmental bodies public administration utmost integrity fairness basis principles roles responsibilities identified pursuant current legislation force maintain constructive collaborative relationship service community interests formal communications various areas reference governance tax compliance regulations force combating corruption bribery prevention crimes pursuant italian legislative decree reliability transparency towards public administration schools universities group promotes inclusive dialog universities training schools national international research centers including aim sharing passion expertise relation fashion luxury sector new generations training activities initiatives collaborations universities research centers promoting youth employment research development including sustainability developing activities interest active participation students employees group always committed fostering development recognizing value employees including offering stimulating work environment attentive corporate welfare extensive training offering training activities knowledge sharing sessions safe fair workplaces compliance principles diversity equity inclusion occupational stability company welfare opportunities personal professional growth fair remuneration policies merit based systems compliance labor laws distributors group always promoted close dialog aimed creating maintaining stable lasting collaborative relationships distributors online questionnaires normal commercial relations compliance contractual conditions fair non discriminatory treatment investors group interacts ongoing basis investors ensuring transparent constant clear accurate timely dialog normal investor relations shareholders meeting company visits transparency relation financial non financial performance continuous improvement esg field shareholders one main objectives group ensure sustainable success business including view creating added value shareholders context group interacts ongoing basis shareholders adopting best investor relations practices normal investor relations shareholders meeting company visits share value growth transparency relation financial non financial performance continuous improvement esg field suppliers contract manufacturers group supports close dialog aimed creating maintaining stable lasting collaborative relationships promotes adoption ethical well socially environmentally responsible behavior amongst suppliers contract manufacturers online questionnaires sustainability use ferragamolink internal platform engagement process factory project normal procurement relations compliance contractual conditions continuity supply demand fair non discriminatory treatment salvatore ferragamo annual report december multi year plan includes request self assessment filling questionnaire site audits interviews workers management inspection suppliers production sites group takes account interests opinions rights employees workers along value chain fected communities consumers end users defin ing business strategy engagement activities list describe tools salvatore ferragamo uses ensure dialog stakeholders constant constructive parties sense administrative management pervisory bodies informed opinions interests stakeholders regard sustainability presentation approval results double materiality analysis including stakeholder engagement activities ferragamo topics iros iro description time horizon nature type type contribution nature activities business relationships phase value chain responsible transparent procurement impact non compliance applicable laws regulations voluntary environmental codes along value chain short term medium term long term potential directly caused group directly connected business relationship value chain throughout value chain operations impact lack traceability transparency regarding group procurement practices short term medium term long term potential directly caused group upstream phase operations impact non compliance applicable laws regulations voluntary social governance codes along supply chain short term medium term long term potential directly caused group directly connected business relationship value chain throughout value chain operations risk suppliers misconduct regarding environmental social issues long term upstream opportunity establish commercial partnerships based shared esg goals medium term long term throughout value chain operations opportunity increased supply chain stability ability work different conditions medium term long term upstream line group engaged suppliers process updating materiality analysis cluding tanneries also suppliers textiles packaging materials stores specifically sample direct indirect suppliers involved overall response rate direct suppliers contract manufacturers direct suppliers engagement initiatives present key opportunity discuss raise awareness regard sustainability topics characterizing group business activities far due diligence concerned order monitor compliance ethical social standards characterizing supply chain group carries audits direct suppliers sub suppliers assess ing actual compliance principles set supplier code conduct monitoring activity carried specialized external company according legend negative positive salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report ferragamo topics iros iro description time horizon nature type type contribution nature activities business relationships phase value chain attracting nurturing talent impact upskilling workers training professional development activities also linked growth objectives personalized assessments short term current directly caused group operations impact promotion employee satisfaction wellness implementation well activities dedicated benefits short term current directly caused group operations impact failure meet workers expectations terms adequate remuneration medium potential directly caused group operations impact failure meet workers expectations terms fair remuneration medium potential directly caused group operations risk risks related talent attraction retention key people short term operations risk work stability retail employees families short term operations risk work stability office headquarters employees families short term operations brand experience impact promotion made italy products italian craftsmanship creativity direct indirect benefits positioning italian industry textile footwear sector world short term current directly caused group directly connected business relationship suppliers upstream phase operations impact full customer satisfaction terms product quality shopping experience short term current directly caused group directly connected business relationship retailers downstream risk possible damage reputation finances caused misleading communications greenwashing short term medium term long term operations risk inefficient esg brand communications long term operations downstream phase legend negative positive salvatore ferragamo annual report december ferragamo topics iros iro description time horizon nature type type contribution nature activities business relationships phase value chain climate change impact generation ghg emissions related production transport activities along value chain scope short term current directly connected business relationship value chain throughout value chain operations impact energy consumption consequent negative impacts environment reduction energy stocks short term current directly caused group directly connected business relationship value chain throughout value chain operations impact contribution climate change direct indirect ghg emissions linked activities carried group offices sites scope short term current directly caused group directly connected business relationship energy producers upstream phase operations risk regulatory developments business costs due climate change impacts short term medium term throughout value chain operations risk increase production costs due changes energy related costs short term throughout value chain operations risk increase number frequency extreme events natural disasters caused climate change long term throughout value chain operations working conditions human rights along value chain impact inadequate working conditions wages along supply chain negative impacts particular workers employed manufacturers contract group medium term long term potential directly connected business relationship suppliers upstream impact violations human rights along value chain right freedom association collective bargaining child labor forced compulsory labor short term medium term long term potential directly connected business relationship suppliers throughout value chain impact insufficient measures prevent discrimination violence along value chain medium term long term potential directly connected business relationship value chain throughout value chain risk violations human rights indirect purchases medium term long term upstream risk forced labor indirect purchases medium term long term upstream risk violation human rights supply chain medium term long term throughout value chain risk forced labor supply chain medium term long term throughout value chain legend negative positive salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report ferragamo topics iros iro description time horizon nature type type contribution nature activities business relationships phase value chain diversity equity inclusion impact strengthening implementation dei business policies promote good working environment short term current directly caused group operations impact inclusive environment also thanks presence people disabilities among workforce short term current directly caused group operations impact negative impacts employee satisfaction motivation due discrimination related gender age ethnicity etc short term medium term potential directly caused group operations opportunity increased talent attraction productivity creating positive business climate adoption diversity inclusion policies positive impact group economic financial performance short term operations governance ethical business sustainable growth impact communication campaign line needs characteristics markets group operates medium potential directly caused group downstream risk compliance regulatory changes products manufacturing processes short term medium term operations downstream phase risk failure achieve esg goals commitments short term medium term long term operations risk compliance regulatory changes whistleblowing business conduct short term operations risk corruption short term medium term upstream phase operations opportunity increased revenues accessing new emerging markets diversifying financial assets long term operations downstream phase opportunity anticipating regulatory requirements may give ferragamo competitive advantage short term operations legend negative positive salvatore ferragamo annual report december ferragamo topics iros iro description time horizon nature type type contribution nature activities business relationships phase value chain materials innovation circular economy impact depletion virgin raw materials used make products packaging materials cotton fabrics derived plastic etc short term current directly caused group directly connected business relationship suppliers upstream phase operations impact creation positive impacts recycling reuse waste materials products making new products medium potential directly caused group directly connected business relationship contractors consumers throughout value chain operations impact environmental impacts related production hazardous non hazardous waste manufacturing short term current directly connected business relationship suppliers upstream phase operations impact creation positive impacts adoption circular economy approaches related end life products sold closed loop remanufacturing etc medium potential directly caused group operations downstream phase risk economic reputational damage caused failure consider life cycle issues throughout value chain lack control practices incineration long term upstream phase operations risk unavailability raw materials long term upstream opportunity development new services products innovation research development lead increased revenues new solutions adaptation needs medium operations privacy data protection impact violations applicable legislation failure apply data management best practices detriment value chain workers privacy contract manufacturers medium term long term potential directly caused group throughout value chain risk compliance ambito cyber risk violazioni della legislazione sulla privacy data breach short term medium term long term operations downstream phase legend negative positive salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report ferragamo topics iros iro description time horizon nature type type contribution nature activities business relationships phase value chain product quality safety impact negative impacts customers end users caused misleading communication incorrect labeling short term medium term potential directly caused group downstream risk reputational damage due negative behavior brand ambassadors influencers negative kol feedback spreading fake news long term downstream risk access products long term downstream risk product non conformity causes damage health satisfaction customers short term downstream respect biodiversity animal welfare impact loss biodiversity along supply chain deforestation textile fiber production livestock farming long term potential directly connected business relationship suppliers upstream impact environmental impacts biodiversity due use soil pesticides cultivating raw materials needed production garments cotton long term potential directly connected business relationship suppliers upstream impact failure implement animal welfare measures along supply chain consequences unethical treatment cruel practices involving animals short term medium term long term potential directly connected business relationship suppliers upstream phase operations risk exploitation land resulting impoverishment ecosystems loss key species alteration collapse ecosystems long term upstream risk lack sensitivity market consumer expectations regard animal welfare standards medium downstream legend negative positive salvatore ferragamo annual report december ferragamo topics iros iro description time horizon nature type type contribution nature activities business relationships phase value chain occupational health safety impact injuries accidents workplace negative consequences health direct workers short term current directly caused group operations impact work related injuries illnesses due risky production processes negatively affect health value chain workers contract manufacturers short term medium term long term potential directly connected business relationship value chain throughout value chain risk compliance regulatory changes hse short term medium term long term operations risk work related accidents may involve health environmental safety risks may result increased costs due contractual changes existing insurance policies policy settlements short term medium term operations support local community impact support local development contributions donations associations area group present short term current directly caused group directly connected business relationship value chain throughout value chain operations opportunity opportunities improve reputation targeted social responsibility initiatives community focused interventions short term throughout value chain operations responsible use water resources impact water pollution due spillage pollutants production process short term current directly connected business relationship suppliers upstream impact negative impact water availability caused water withdrawal production process short term current directly connected business relationship suppliers upstream risk sub optimal management water resources lead high consumption spillage hazardous substances subsurface short term upstream legend negative positive salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report sbm material impacts risks opportunities interaction strategy business model materiality assessment within group made possible identify number significant impacts risks opportunities related operations value chain elements cover various operational aspects upstream downstream provide clear vision profiles efforts focused improve aspects business sustainabil ity mitigating related risks capitalizing emerging opportunities information please refer section iro description processes identify assess material impacts risks oppor tunities group committed pursuing goals sustainability plan based whole part impacts risks opportunities identified future effects impacts risks become increasingly relevant inside outside company response group fully commit ted pursuing targets grouped stra tegic pillars sustainability plan detailed section esrs sbm current financial impact risks opportunities identified double materiality analysis limited particular sources allocated ensure compliance csrd taxonomy hire new resources sustainability function implement actions defined sustainability plan information current financial impact terial risks opportunities related climate change human resources arose year please refer relevant sections particular deal ing actions taken resources used moreover group committed deepening analysis financial impact relation material impacts risks opportunities coming years details please refer sustainability plan section following approval double materiality group updated adapted sustainability plan found section sbm requirements strategy time horizon actions planned achieve structured years allow group grow evolve organically manage various impacts risks identified precise planning thus ensuring resilience business plan includes targets longer time horizon net zero energy emission targets facilitate gradual expected process compromise human finan cial resources sustainability plan also structured capitalize opportunities identified double materiality analysis compared previous report materiality process salvatore ferragamo refined com pliance new european standards esrs sector nostic double materiality analysis terms final results difference found material topics redefinition topic respect biodiver sity favor respect biodiversity animal welfare following double materiality process salvatore ferrag amo identified one specific impact falling brand experience topic related esrs disclo sure requirements topic refers company desire support made italy products sourcing artisans italian textile manufacturing sector certainly represent distinguishing element brand salvatore ferragamo annual report december details analyses conducted please refer section main features risk management internal control systems annual report management impacts risks opportunities iro description processes identify assess material impacts risks opportunities group carried double materiality analysis accordance disclosure requirements detailed esrs section standard double mate riality basis sustainability disclosures first potentially material impacts positive negative current potential causes contrib utes relation economy environment people including impacts related human rights business relationships identified depth contextual analysis comparison industry peers referring issues defined esrs analysis examined specific activities sector considering italy coun tries group operates order identify impact value chain second assessment impacts conduct involvement functions responsible impact stakeholders described para graph sbm interests views stakeholders impacts broken area expertise pre sented company representatives asked rate scale two impact dimensions severity divided scale scope likelihood stakeholder engagement activity single vote taken impact taking account factors determine significance impact scale scope likelihood end assessments impacts prioritized according rate signed meet quantitative threshold defined considered material identify potentially material risks opportunities group drawn number sources including enterprise risk management erm system coso framework esg world economic rum wef strategic plan group sector operates also analyzed termine links impacts dependencies risks opportunities may arise impacts dependencies identified environmen tal social governance risks opportunities assessed according group erm scales consider financial operational reputational reg ulatory compliance consequences occurrence according qualitative quantitative scales risks opportunities considered material rated low two three dimensions group continuously monitors impacts risks opportunities related climate change analyses carried externally support double materiality process identified four categories transition risks expected impacts group market risks cost energy raw materials consumer preferences expected medium impact short medium term signif icant impact long term scenarios increase surance costs related group assets expected greater impact long term worst case scenario attributable upward trend occur rence natural disasters legislative regulatory risks significant impacts expected short medium term pertaining compliance increasingly stringent regulations products must comply order reduce emissions waste increase product circularity expected increase criticality first long term best case scenario progressive decrease impact mid worst case scenarios technological risks new transition focused technical skills systems procedures signed help ensure better management use performance data greater impacts expected best mid case scenarios smaller ones long term worst case scenario salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report reputational risks due high expectations companies respond adequately challenges transition key role supply chain communication company activities related sustainability signifi cant impacts expected short medium term first best second mid case long term scenarios group analysis impacts risks opportunities related pollution water marine resources showed mainly linked upstream erations particular production activities suppliers including tanneries hand regard use resources circular economy group considered geographical location nature activity operations along value chain identified impacts risks opportunities throughout value chain including operations regard biodiversity group manage plants oper ational sites located near protected areas areas high biodiversity pacts dependencies group operations nature identified particular analysis carried following science based target net work sbtn technical guidelines particular reference step materi ality screening allowed identify possible impact business nature understood sum activities carried directly group activities related supply chain results step indicate group materiality focuses following pressure categories water land use climate change water soil pollution therefore concluded need implement biodiversity mitigation measures operations ferragamo also analyzed raw materials used operations reference sbtn high impact commodity list finding impactful materials group fibers natural origin leather cotton well paper used packaging pointed group main dependencies related water availability forestry production example paper natural raw terials cotton closely linked processing leather cotton packaging regard business conduct group considered criteria deemed rel evant process identifying material impacts risks opportunities cluding group geographical location type activity governance structure business model corporate structure activities carried lation identification impacts risks opportunities ready listed table section sbm interests views stakeholders assessment made possible identify significant environmental social governance impacts group society potential risks opportunities related group business entire process overseen cso involved senior officers department assesment aligned sbtn salvatore ferragamo annual report december sessment process results analysis carried finally shared control risks commit tee top management approved board directors november group carried double materiality analysis cording methodology reported esrs double materiality basis sustainability disclosures materiality assessment issued efrag changes topics relevant ferragamo new impacts risks opportunities emerged material related topics already iden tified material group group updates double materiality analysis annual basis low summary matrix results representing material topics group financial impact point view governance social legend thematic areas financial materiality mid low high medium mid high medium high mid high impact materiality environment support local community product quality safety governance business sustainable growth occupational health safety privacy data protection respect biodiversity animal welfare materials innovation circular economy attracting nurturing talent diversity equity inclusion responsible use water resources working conditions human rights along value chain responsible transparent procurement brand experience climate change salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report iro disclosure requirements esrs covered undertaking sustainability statement esrs topic esrs disclosure requirements section phase page esrs basis preparation general basis preparation sustainability statements disclosures relation specific circumstances esrs governance esrs gov role administrative management supervisory bodies esrs gov information provided sustainability matters addressed undertaking administrative management supervisory bodies esrs gov integration sustainability related performance incentive schemes esrs gov statement due diligence esrs gov risk management internal controls sustainability reporting esrs strategy sbm strategy business model value chain sbm interests views stakeholders sbm material impacts risks opportunities interaction strategy business model esrs impact risk opportunity management iro description processes identify assess material impacts risks opportunities iro disclosure requirements esrs covered undertaking sustainability statement taxonomy disclosure pursuant art regulation taxonomy regulation esrs climate change esrs gov integration sustainability related performance incentive schemes transition plan climate change mitigation sbm material impacts risks opportunities interaction strategy business model iro description processes identify assess material climate related impacts risks opportunities policies related climate change mitigation adaptation actions resources relation climate change policies metrics targets targets related climate change mitigation adaptation energy consumption mix gross scopes total ghg emissions ghg removals ghg mitigation projects financed carbon credits anticipated financial effects material physical transition risks potential climate related opportunities says phase accordance esrs appendix list disclosure requirements phased salvatore ferragamo annual report december esrs topic esrs disclosure requirements section phase page esrs pollution iro description processes identify assess material climate related impacts risks opportunities policies related pollution actions resources related pollution targets related pollution substances concern substances high concern esrs water marine resources iro description processes identify assess material climate related impacts risks opportunities policies related water marine resources actions resources related water marine resources targets related water marine resources water consumption anticipated financial effects water marine resources related impacts risks opportunities phase esrs biodiversity ecosystems transition plan consideration biodiversity ecosystems strategy business model sbm material impacts risks opportunities interaction strategy business model iro description processes identify assess material climate related impacts risks opportunities policies related biodiversity ecosystems actions resources related biodiversity ecosystems targets related biodiversity ecosystems anticipated financial effects biodiversity ecosystem related risks opportunities phase esrs resource use circular economy iro description processes identify assess material climate related impacts risks opportunities policies related resource use circular economy actions resources related resource use circular economy targets related resource use circular economy resource inflows resource outflows anticipated financial effects resource use circular economy related impacts risks opportunities phase salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report esrs topic esrs disclosure requirements section phase page esrs workforce sbm interests views stakeholders sbm material impacts risks opportunities interaction strategy business model policies related workforce processes engaging workforce workers representatives impacts processes remediate negative impacts channels workforce raise concerns taking action material impacts workforce approaches managing material risks pursuing material opportunities related workforce effectiveness actions targets related managing material negative impacts advancing positive impacts managing material risks opportunities characteristics undertaking employees characteristics non employees undertaking workforce diversity metrics adequate wages social protection persons disabilities training skills development metrics health safety metrics remuneration metrics pay gap total remuneration incidents complaints severe human rights impacts esrs workers value chain sbm interests views stakeholders sbm material impacts risks opportunities interaction strategy business model policies related value chain workers processes engaging value chain workers impacts processes remediate negative impacts channels value chain workers raise concerns taking action material impacts value chain workers approaches managing material risks pursuing material opportunities related value chain workers effectiveness action targets related managing material negative impacts advancing positive impacts managing material risks opportunities salvatore ferragamo annual report december esrs topic esrs disclosure requirements section phase page esrs affected communities sbm interests views stakeholders sbm material impacts risks opportunities interaction strategy business model policies related affected communities processes engaging affected communities impacts taking action material impacts affected communities approaches managing material risks pursuing material opportunities related affected communities effectiveness actions targets related managing material negative impacts advancing positive impacts managing material risks opportunities entity specific kpi made italy esrs consumers end users sbm interests views stakeholders sbm material impacts risks opportunities interaction strategy business model policies related consumers end users processes engaging consumers end users impacts processes remediate negative impacts channels consumers end users raise concerns taking action material impacts consumers end users approaches managing material risks pursuing material opportunities related consumers end users effectiveness actions targets related managing material negative impacts advancing positive impacts managing material risks opportunities esrs business conduct gov role administrative management supervisory bodies iro description processes identify assess material climate related impacts risks opportunities business conduct policies corporate culture management relationships suppliers prevention detection corruption bribery incidents corruption bribery political influence lobbying activities payment practices salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report disclosure requirement related datapoints sfdr reference pillar reference benchmark regulation reference climate law reference esrs gov board gender diversity paragraph indicator number table annex commission delegated regulation annex esrs gov percentage board members independent paragraph commission delegated regulation annex esrs gov statement due diligence paragraph indicator number table annex esrs sbm involvement activities related fossil fuel activities paragraph indicator number table annex article regulation commission implementing regulation table qualitative information environmental risk table qualitative information social risk commission delegated regulation annex esrs sbm involvement activities related chemical production paragraph indicator number table annex commission delegated regulation annex esrs sbm involvement activities related controversial weapons paragraph iii indicator number table annex delegated regulation article delegated regulation annex esrs sbm involvement activities related cultivation production tobacco paragraph delegated regulation article delegated regulation annex esrs transition plan reach climate neutrality paragraph regulation article regulation european parliament council november sustainability related disclosures financial services sector sfdr regulation european parliament council june prudential requirements credit institutions invest ment firms amending regulation capital requirements regulation regulation european parliament council june indices used benchmarks financial instruments financial contracts measure performance investment funds amending directives regulation regulation european parliament council june establishing framework achieving climate neutrality amending regulation regulation european climate law commission delegated regulation july supplementing regulation european parliament council regards explanation benchmark statement environmental social governance factors reflected benchmark provided published commission implementing regulation november amending implementing technical standards laid implementing regulation regards disclosure environmental social governance risks commission delegated regulation july supplementing regulation european parliament council regards minimum standards climate transition benchmarks paris aligned benchmarks salvatore ferragamo annual report december disclosure requirement related datapoints sfdr reference pillar reference benchmark regulation reference climate law reference esrs undertakings excluded paris aligned benchmarks paragraph article regulation commission implementing regulation template banking book climate change transition risk credit quality exposures sector emissions residual maturity delegated regulation article article esrs ghg emissions reduction targets paragraph indicator number table annex article regulation commission implementing regulation template banking book climate change transition risk alignment metrics delegated regulation article esrs energy consumption fossil sources disaggregated sources high climate impact sectors paragraph indicator number table indicator number table annex esrs energy consumption mix paragraph indicator number table annex esrs energy intensity associated activities high climate impact paragraphs indicator number table annex esrs gross scope total ghg emissions paragraph indicators number table annex article regulation commission implementing regulation template banking book climate change transition risk credit quality exposures sector emissions residual maturity delegated regulation article esrs gross ghg emissions intensity paragraphs indicator number table annex article regulation commission implementing regulation template banking book climate change transition risk alignment metrics delegated regulation article esrs ghg removals carbon credits paragraph regulation article salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report disclosure requirement related datapoints sfdr reference pillar reference benchmark regulation reference climate law reference esrs exposure benchmark portfolio climate related physical risks paragraph delegated regulation annex delegated regulation annex esrs disaggregation monetary amounts acute chronic physical risk paragraph esrs location significant assets material physical risk paragraph article regulation commission implementing regulation paragraphs template banking book climate change physical risk exposures subject physical risk esrs breakdown carrying value real estate assets energy efficiency classes paragraph article regulation commission implementing regulation paragraph template banking book climate change transition risk loans collateralised immovable property energy efficiency collateral esrs degree exposure portfolio climate related opportunities paragraph delegated regulation annex esrs amount pollutant listed annex prtr regulation european pollutant release transfer register emitted air water soil paragraph material indicator number table annex indicator number table annex indicator number table annex indicator number table annex esrs water marine resources paragraph indicator number table annex esrs dedicated policy paragraph indicator number table annex esrs sustainable oceans seas paragraph indicator number table annex esrs total water recycled reused paragraph salvatore ferragamo annual report december disclosure requirement related datapoints sfdr reference pillar reference benchmark regulation reference climate law reference material indicator number table annex esrs total water consumption per net revenue operations paragraph material indicator number table annex esrs sbm paragraph indicator number table annex esrs sbm paragraph indicator number table annex esrs sbm paragraph indicator number table annex esrs sustainable land agriculture practices policies paragraph indicator number table annex esrs sustainable oceans seas practices policies paragraph indicator number table annex esrs policies address deforestation paragraph indicator number table annex esrs non recycled waste paragraph indicator number table annex esrs hazardous waste radioactive waste paragraph indicator number table annex esrs sbm risk incidents forced labor paragraph indicator number table annex esrs sbm risk incidents child labor paragraph indicator number table annex esrs human rights policy commitments paragraph indicator number table indicator number table annex salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report disclosure requirement related datapoints sfdr reference pillar reference benchmark regulation reference climate law reference esrs due diligence policies issues addressed fundamental international labor organization conventions paragraph commission delegated regulation annex esrs processes measures preventing trafficking human beings paragraph indicator number table annex esrs workplace accident prevention policy management system paragraph indicator number table annex esrs grievance complaints handling mechanisms paragraph indicator number table annex esrs number fatalities number rate work related accidents paragraph indicator number table annex commission delegated regulation annex esrs number days lost injuries accidents fatalities illness paragraph indicator number table annex esrs unadjusted gender pay gap paragraph indicator number table annex commission delegated regulation annex esrs excessive ceo pay ratio paragraph indicator number table annex esrs incidents discrimination paragraph indicator number table annex esrs non respect ungps business human rights oecd guidelines paragraph indicator number table indicator number table annex delegated regulation annex delegated regulation article esrs sbm significant risk child labor forced labor value chain paragraph indicators number table annex esrs human rights policy commitments paragraph indicator number table indicator number table annex esrs policies related value chain workers paragraph indicators number table annex salvatore ferragamo annual report december disclosure requirement related datapoints sfdr reference pillar reference benchmark regulation reference climate law reference esrs non respect ungps business human rights principles oecd guidelines paragraph indicator number table annex delegated regulation annex delegated regulation article esrs due diligence policies issues addressed fundamental international labor organization conventions paragraph commission delegated regulation annex esrs human rights issues incidents connected upstream downstream value chain paragraph indicator number table annex esrs human rights policy commitments paragraph indicator number table indicator number table annex esrs non respect ungps business human rights ilo principles oecd guidelines paragraph indicator number table annex delegated regulation annex delegated regulation article esrs human rights issues incidents paragraph indicator number table annex esrs policies related consumers end users paragraph indicator number table indicator number table annex esrs non respect ungps business human rights principles oecd guidelines paragraph indicator number table annex delegated regulation annex delegated regulation article esrs human rights issues incidents paragraph indicator number table annex esrs united nations convention corruption paragraph indicator number table annex esrs protection whistleblowers paragraph indicator number table annex esrs fines violation anti corruption anti bribery laws paragraph indicator number table annex delegated regulation annex esrs standards anti corruption anti bribery paragraph indicator number table annex board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december environmental information salvatore ferragamo annual report december total emissions reduction tanneries certified lwg certified gold silver lca analysis products store materials circularity hackaton rethink ferragamo products circular perspective board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december salvatore ferragamo annual report december disclosure pursuant article regulation regulation hereinafter referred tax onomy regulation introduced taxonomy frame work european regulatory system aim defining conditions certain economic tivities considered environmentally sustainable stimulating transparency relation initiatives put place promote ecological transition including adoption sustainable financial models line provisions article taxonomy reg ulation salvatore ferragamo group subject obligation include within sustainability statement drawn pursuant italian legislative decree transposition relevant european legislation specific disclosure extent com pany activities associated economic activities considered environmentally sustainable pursuant articles taxonomy regulation taxonomy regulation additional delegated reg ulations provide reporting period companies subject aforementioned obliga tions must communicate set information relating economic activities considered eligible non eligible purposes taxonomy hereinafter also referred taxonomy eligible activity taxono non eligible activity well activities aligned taxonomy taxonomy aligned activity words comply technical requirements defined legislation cause significant harm environmental objectives carried compliance minimum safeguards envisaged particular reporting year taxonomy regulation regulatory provisions connected require disclosure proportion turnover capex opex considered eligible aligned purposes article taxonomy regulation climate change mitigation climate change adaptation sustainable use protection water marine sources transition circular economy pollution prevention control protection restoration biodiversity ecosys tems line last years specific analyses car ried assess degree eligibility alignment based delegated acts available date infor mation related economic activities contrib ute substantially six environmental objectives fined taxonomy analysis taxonomy eligible activities order comply aforementioned require ments list economic activities included ref erence documentation six objectives set article taxonomy regulation ref erence technical documentation available date publication document examined comparing group comparison respective nace ateco codes comparison substantial description activities based economic activity described delegated acts adopted pursuant article regulation regardless whether economic activity meets one technical screening criteria set aforementioned delegated acts economic activity described delegated acts adopted pursuant article regulation economic activity meets requirements article regulation simultaneously complies following require ments contributes substantially one environmental objectives set article regulation significantly harm environmental objectives set article accordance article carried compliance minimum safeguards laid article complies technical screening criteria set european commission accordance article nace abbreviation statistical classification economic activities european union classification used national accounts schemes statistical office european union eurostat accepted statistical offices member countries ateco italian equivalent nace classification adopted italian national institute statistics istat board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december based considerations interpre tation taxonomy regulation proportion turnover generated sale goods services lated economic activities considered taxonomy eligi ble therefore aligned relation six objec tives set article regulation identified date publication report capex calculation capital expenditure capex indicator denominator line provisions applicable legislation increases property plant equipment investment property right use assets intangible assets finite useful life net decreases property plant equipment intangible assets progress occurred year considered depreciation amortization revaluations including resulting statements impairments reporting period excluding changes fair value particular nominator includes acquisitions property plant equipment ias intangible assets ias vestment property ias right use assets ifrs numerator increases fixed assets related purchase outputs taxonomy eli gible economic activities related measures abling greenhouse gas reductions thus con sidered eligible mainly include investments made energy efficiency reduction energy con sumption buildings stores building new property renewal company fleet hybrid electric vehicles relating transport motorbikes passenger cars light commercial vehicles construction new buildings stallation maintenance repair energy efficiency interpretation requirements applicable date group assessed main activities includ among currently identified reference leg islation result considered eligible therefore aligned date drafting doc ument assessment focused group main core economic activities linked manufacture marketing clothing footwear accessories sidual leasing activities owned properties sub leas ing leased properties attributed entirely ferragamo usa group excluded analysis activities considered marginal sub stantial expression group activities activity linked sale spare parts considered margin well identified among economic activities contribute objective linked transition towards circular economy according latest com mission delegated regulation june light kpis required taxon omy regulation calculated illustrated methodology calculating kpis provided taxonomy regulation group carried analysis turnover invest ments operating expenses related financial year calculation kpis required pursu ant taxonomy regulation additional appli cable regulatory references described turnover calculation turnover indicator consol idated net turnover considered denomina tor accordance ias numerator analysis methodology calculating kpis carried particular reference interpretation information defined annex commission delegated regulation july supplementing article regulation draft commission notice interpretation certain legal provisions disclosures delegated act article taxonomy regulation reporting eligible economic activities assets published february commission delegated regulation june amending delegated regulation establishing additional technical screening criteria determining conditions certain economic activities qualify contributing substantially climate change mitigation climate change adaptation determining whether activities cause significant harm environmental objectives commission delegated regulation june sup plementing regulation european parliament council establishing technical screening criteria determining conditions economic activity qualifies contributing substantially sustainable use protection water marine resources transition circular economy pollution prevention control protection restoration biodiversity ecosystems termining whether economic activity causes significant harm environmental objectives amending commission delegated regulation regards specific public disclosures economic activities financial data included kpi correspond group net revenues shown annual report december consolidated financial statements note consolidated financial statements financial data included kpi correspond increases fixed assets shown annual report consolidated financial statements notes salvatore ferragamo annual report december equipment installation maintenance repair instruments devices measuring regulation controlling energy performance buildings professional services related energy performance buildings result remaining part increases property plant equipment intangible assets right use assets considered denominator deemed non eligible opex calculation operating expenditure opex indicator denominator line provisions applicable legislation non capitalized direct costs related research development building renovation measures short term leases variable lease payments maintenance repair direct expendi tures relating ordinary maintenance property plant equipment either undertaking third parties activities outsourced necessary ensure continued effective opera tion assets taken account expenses lated day day operation property plant equipment raw materials cost employees using vehicles electricity fluids needed operation assets included far numerator concerned costs included denominator lated purchase output taxonomy eligible economic activities individual measures enabling greenhouse gas reductions considered eligible particular costs related energy efficiency ducing energy consumption buildings costs maintenance related technologies included consequently remaining part costs included denominator considered non eligible activities included scope analysis relate investments capex operating expenses opex implemented reduce atmospheric emissions group directly hold documentation necessary demonstrate compliance dnsh criteria group contacted service providers collect evidence obtain useful information demonstrate compliance dnsh criteria providers unable provide sufficient information refer ence criteria specified appendix taxon omy delegated acts financial data included kpi included consolidated operating costs shown annual report consolidated financial state ments notes board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december tables accordance regulation proportion turnover products services associated taxonomy eligible aligned economic activities disclosure covering year thousands euro financial year year substantial contribution criteria dnsh significant harm criteria economic activities code turnover proportion turnover climate change mitigation climate change adaptation water pollution circular economy biodiversity climate change mitigation climate change adaptation water pollution circular economy biodiversity minimum safeguards proportion taxonomy aligned eligible turnover category enabling activity category transitional activity text currency yes yes yes yes yes yes yes yes yes yes yes yes yes taxonomy eligible activities environmentally sustainable activities taxonomy aligned turnover environmentally sustainable activities taxonomy aligned enabling transitional taxonomy eligible environmentally sustainable activities taxonomy aligned activities turnover taxonomy eligible environmentally sustainable activities taxonomy aligned activities turnover taxonomy eligible activities axonomy non eligible activities turnover taxonomy non eligible activities total salvatore ferragamo annual report december proportion taxonomy eligible aligned turnover total taxonomy aligned per objective taxonomy eligible per objective ccm cca wtr ppc bio board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december proportion capex products services associated taxonomy eligible aligned economic activities disclosure covering year thousands euro financial year year substantial contribution criteria dnsh significant harm criteria economic activities code capex proportion capex climate change mitigation climate change adaptation water pollution circular economy biodiversity minimum safeguards climate change adaptation water circular economy pollution biodiversity minimum safeguards proportion taxonomy aligned eligible capex category enabling activity category transitional activity text yes yes yes yes yes yes yes yes yes yes yes yes yes taxonomy eligible activities environmentally sustainable activities taxonomy aligned capex delle attività ecosostenibili allineate alla tassonomia enabling transitional taxonomy eligible environmentally sustainable activities taxonomy aligned activities transport motorbikes passenger cars light commercial vehicles ccm construction new buildings ccm installation maintenance repair energy efficiency equipment ccm installation maintenance repair instruments devices measuring regulation controlling energy performance buildings ccm professional services related energy performance buildings ccm capex taxonomy eligible environmentally sustainable activities taxonomy aligned activities capex taxonomy eligible activities axonomy non eligible activities capex taxonomy non eligible activities total salvatore ferragamo annual report december taxonomy aligned per objective taxonomy eligible per objective ccm cca wtr ppc bio board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december proportion opex products services associated taxonomy eligible aligned economic activities disclosure covering year thousands euro financial year year substantial contribution criteria dnsh criteria significantly harm economic activities code capex proportion capex climate change mitigationi climate change adaptation water pollution circular economy biodiversity climate change mitigation climate change adaptation water pollution circular economy biodiversity minimum safeguards proportion taxonomy aligned eligible capex category enabling activity category transitional activity text yes yes yes yes yes yes yes yes yes yes yes yes yes taxonomy eligible activities environmentally sustainable activities taxonomy aligned opex environmentally sustainable activities taxonomy aligned enabling transitional taxonomy eligible environmentally sustainable activities taxonomy aligned activities installation maintenance repair energy efficiency equipment ccm installation maintenance repair instruments devices measuring regulation controlling energy performance buildings ccm installation maintenance repair renewable energy technologies ccm professional services related energy performance buildings ccm opex taxonomy eligible environmentally sustainable activities taxonomy aligned activities opex taxonomy eligible activities taxonomy non eligible activities opex taxonomy non eligible activities total salvatore ferragamo annual report december proportion taxonomy eligible aligned opex total taxonomy aligned per objective taxonomy eligible per objective ccm cca wtr ppc bio board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december template nuclear fossil gas related activities nuclear energy related activities undertaking carries funds exposures research development demonstration deployment innovative electricity generation facilities produce energy nuclear processes minimal waste fuel cycle undertaking carries funds exposures construction safe operation new nuclear installations produce electricity process heat including purposes district heating industrial processes hydrogen production well safety upgrades using best available technologies undertaking carries funds exposures safe operation existing nuclear installations produce electricity process heat including purposes district heating industrial processes hydrogen production nuclear energy well safety upgrades fossil gas related activities undertaking carries funds exposures construction operation electricity generation facilities produce electricity using fossil gaseous fuels undertaking carries funds exposures construction refurbishment operation combined heat cool power generation facilities using fossil gaseous fuels undertaking carries funds exposures construction refurbishment operation heat generation facilities produce heat cool using fossil gaseous fuels delegated regulation salvatore ferragamo annual report december climate change group journey towards sustainability started aim ensuring transparency respect operations salvatore ferragamo undertook reporting process initiatives related social responsibility drawing first sustainability report according international guidelines since process extended entire salvatore ferragamo group company view transparency stakeholder engagement created salvatore ferragamo group website section entirely dedicated corporate responsibility illustrates main social environmental sustainability projects group promoted years new sustaina bility ferragamo com website launched new version offers completely updated design effective intuitive user experience experience made inclusive global thanks optimization website devices availability eight languages transition plan climate change mitigation order mitigate effects climate change contribute reduction carbon footprint group defined actions targets reduction offsetting emissions included sustainability plan essential first step towards formalizing transition plan links actions related investments envisaged sustainability plan reduction greenhouse gas emissions related confirmation commitment line level decarbonization outlined paris agreement avoid harmful effects climate change science based targets initiative identifies promotes best practice definition science based targets assessment company objectives approved two important targets salvatore ferragamo august reducing scope scope absolute ghg emissions compared reducing scope absolute ghg emissions deriving purchase goods services downstream transportation distribution compared moreover update sustainability plan group also introduced new target namely reach net zero emissions regard noted update resubmission phase sbt targets near term target cluding flag net zero targets currently underway line objective formalizing transition plan relates main actions sustaina bility plan reduction greenhouse gas emissions related information please refer section disclosure pursuant article regulation flag net zero sbts submission board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december sbm material impacts risks opportunities interaction strategy business model double materiality process group identified three risks related climate change two transition risks regulatory developments business costs due cli mate change impacts increase production costs due changes ener related costs additional risk identified physical risk increase number frequency extreme events natural disasters caused climate change group maps takes risks account der implement policies activities counter ensure resilience business model strat egy relation climate change salvatore ferragamo commits economic resources expertise counteract effects repercussions activities gions operates moment analysis physical risks related climate carried discussed detail section furthermore considerations strategic business resilience taken account definition objectives business continuity also reference value chain policies related climate change mitigation adaptation group prepared sustainability policy defines set guiding principles ensure responsible management social environmental issues context group daily activities contents policy refer impacts risks opportunities identified double materiality process carried purpose policy promote corporate cul ture based fairness professionalism honesty integrity transparency promotes sustainable development encourages ethical dialog increases responsibility wards stakeholders fundamental principles comprise divided three thematic areas people values environmental protection culture participation activities related group sustainabili plan developed view targets evaluated science based target initiative main decarbonization levers identified group achieve targets include installation consumption monitoring systems energy efficiency investments renewable energy electrification company fleet optimiza tion logistics investments renewable energy pur chase guarantees origin salvatore ferragamo sustainability deep integrated business strategy sustainability plan order build strengthen shared vision group level strategic rection undertaken environmental social gov ernance matters plan also tool promoting culture sustainability based respect protection promotion excellence aims tegrate existing goals commitments terms sustainability business strategy new chal lenges future development document shared top management ceo control risks committee whose responsibilities include cor porate sustainability overseeing sustainability aspects related company operations interaction stakeholders esg steering committee strategic corporate body comprising main company functions established explicit aim providing depth oversight progress sustaina bility plan ensuring constant monitoring providing precious feedback optimize performance cor porate sustainability sphere composition committee ensured leadership expertise sustainability area available across board updated sustainability plan approved control risks committee board directors december document fully integrat company strategy financial planning including allocation monetary non monetary resources pursue objectives actions set salvatore ferragamo annual report december policy applies internal operations also group value chain main internal external stakeholders internal stakeholders clude employees suppliers contract manufacturers shareholders investors distributors external stakeholders include final customers trade associa tions media influencers ngos local communities regulatory bodies public administration schools universities ensure effectiveness measures chair control risks committee responsible implementation policy across board ensuring sustainability fully integrated group business strategies policy developed line united nations sustainable develop ment goals sdgs guiding principles business human rights ilo declaration fundamental principles rights work align group commitment international best practices finally group committed maintaining ongoing transparent dialog stakeholders ensure continued application policy pro mote shared commitment sustainability stakeholders view policy group websiteand encouraged submit ideas suggestions sup port efforts combat climate change contacting csr ferragamo com protecting environment section policy reports group commitment protecting environment proactive approach cli mate change biodiversity conservation resource management group recognizes reducing environmental impact essential long term sustainability company future generations order mitigate climate change salvatore ferragamo actively work ing reduce carbon footprint continuous assessment minimi zation greenhouse gas ghg emissions ambitious emission reduction targets set line science based targets limit global warming pre industrial levels adapt climate change group imple menting mitigation strategies throughout supply chain address climate relat risks rising energy costs impact extreme weather events improve energy efficiency specific programs implemented reduce ergy consumption improve operational efficiency group also integrates renewable energy sources operations reduce dependence fossil fuels decrease ghg emissions finally part commitment sustainability group committed achieving net zero emissions promoting con tinuous innovation strengthening collaboration stakeholders acceler ate transition sustainable future aligned board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december actions resources relation climate change policies group committed environmental sustainability initiatives years integrated environmental protection corporate culture com mitment translates concrete challenging goals reflected sustain ability plan sustainability policy aimed minimizing environmental impact ambitious goal achieving net zero view mitigating effects climate change group implemented actions targets aimed reduction offsetting emissions con firm commitment line level decarbonization required pre vent damaging effects climate change salvatore ferragamo group defined science based targets reduce greenhouse gas emissions ghg operations main initiatives undertaken include installation building management systems bms make possible control monitor mechanical electrical systems example microclimate lighting based quantity natural light coming outside thus optimizing operating efficiency reducing waste since systems installed osmannoro logistics center building stores aim monitoring energy consumption since salvatore ferragamo managed install building manage ment systems stores worldwide aiming reach stores building designed meet main environmental standards locat osmannoro site also received leed platinum certification years efforts obtain certifications also involved retail area group achieved leed gold certification stores leed silver certification stores total gold silver certified stores worldwide bms store salvatore ferragamo annual report december leed certification leed voluntary certification program covers entire life cycle building design construction leed promotes sustainability oriented approach recognizing building performance key areas ergy water efficiency conservation reduction emissions improvement interior ecological quality materials resources used design site selection developed green building council usgbc system based levels certification basic gold silver platinum stores life cycle assessment lca carried carbon emissions related extraction raw materials production construction milan montenapoleone woman store time advice provided identifying alternative materials design solutions low environmental impact considering criteria carbon footprint durabil ity market availability addition work extended analyze plementation circular design principles ferragamo stores using circular buildings toolkit framework developed arup ellen macarthur founda tion promote sustainable innovative construction strategies energy management system certification according uni iso standard renewed entire perimeter including mannoro sites milan offices palazzo spini feroni stores retail area italy renewed future previous years moreover process monitoring certifications environmental man agement system according uni iso standard occu pational health safety according uni iso standard continued extension sites forte dei marmi fiumicino milan rome improve energy efficiency lighting system building placed addition existing photovoltaic park expected graded commissioning additional system installed roof logistics center osmannoro site gradual reorganization architecture energy measurement systems installed osmannoro site also underway achieve better monitoring subsequent performance improvement improvement previous years electricity used group worldwide came renewable sources thanks pur chase energy certified guarantee origin accelerate adoption renewable electricity investing new clean energy infrastructure group part fashion pact collaboration brands signed col renewable electricty store milan montenapoleone woman life cycle assessment board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december lective virtual power purchase agreement cvppa european region implemented throughout first kind fashion industry cvp aims add mwh per year new renewable electricity gen eration grid equivalent taking cars road time transition sustainable mobility continued replacement company fleet italy plug hybrid full electric vehicles substitution rate reached target making significant contribution reducing emissions time group introduced platform tracking company mobility osmannoro milan sites aim extending entire emea area terms corporate mobility ferragamo renewed commitment sustainability rejoining air france klm corporate saf program itiative promoted air france klm aims reduce environmental impact corporate air travel increasing use sustainable fuels derived waste cooking oil furthermore several sustainable mobility initiatives enhanced including corporate carpooling service bici piedi program collaboration jojob latter encourages commuting work foot bicycle reduce emissions expanded also include use electric micro mobility production distribution logistics sector salvatore ferragamo completed feasibility study optimize load volumes reduce shipping volumes would con tribute significant reduction transport related emissions initiative extended evaluate improvements another strategic action work suppliers logistics partners improve sustainability supply chain group began studying new transport model would replace air transport sea transport reduc ing emissions identified routes strategy expected implemented starting group also completed project study environmental impact production three best selling iconic items handbag ballet flat moccasin used results identify strategies reduce ecological footprint central element project life cycle assessment lca made three products question life cycle assessment three key products salvatore ferragamo annual report december study considered cradle factory gate rimeter examining processing phases production raw materials packaging finished product packaged ready distribution hand product usage end life phases excluded first analysis based secondary datasets con ducted identify critical points engage suppli ers responsible impacts latter involved collection primary data direct measurements facility allowed depth analysis identified hotspots data quality assessed according iso terms temporal geographical technological cov erage completeness representativeness consistency reproducibility sources uncertainty results show calculated primary data significantly lower impact compared secondary dataset ecoin vent approach increased ferragamo inter nal awareness environmental impact pro duction processes also raised awareness players involved production chain fact presenting results obtained potential improvements identified three tanneries col lected primary data group committed making suppliers aware use energy water chemicals tanning tanning fin ishing phases ultimate goal salvatore ferragamo tablish concrete collaboration production chain measure study environmental performance depth order able initiate improvement tions collaboration players supply chain market increasingly sensitive issues initiative involved three best selling leather products three strategic tanneries involved production continue next years participation relevant suppliers main expenses incurred implementation measures shown table activity capex opex taxonomy eligible please refer section disclosure pursuant article regulation amount integral part items general administrative costs sales distribution costs income statement consolidated financial statements salvatore ferragamo board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december targets related climate change mitigation adaptation defined targets part sustainability plan approved board directors decem ber represents strategic framework reference group sustainability initiatives reflects commitment united nations sustainable development goals european sustainability standards following targets outlined section esrs sbm strategy business model value chain related climate change mitigation adaptation aligned limiting global warming esg building block target timing moving towards zero emissions achieving net zero reduction scope scope absolute ghg emissions compared science based target reduction scope absolute ghg emissions deriving purchase goods services downstream transport distribution compared science based target renewable energy across operations group set clear measurable targets reduction greenhouse gas ghg emissions use renewable energy line international cli mate strategies particular committed reduc ing scope scope absolute ghg emissions compared levels target reduction set scope emissions limited resulting purchase goods servic downstream transportation distribution deadline time horizon moreover company aims achieve renewable energy operations targets absolute expressed tons equivalent tco mwh monitored annu ally internal controls methodology adopted based ghg protocol scientifically validat climate scenarios line paris agreement date progress line forecasts particularly reduction scope emissions scope company strengthening procurement mate rials lower environmental impact optimizing logistics accelerate decarbonization value chain monitoring continuous strategic updates ensure goals met key achievements date clude increased use renewable energy com pany operations adoption stricter criteria selection certified materials details please refer sections time company submitted new near term science based targets baseline target scope scope emissions target currently validation phase reduce emissions new baseline tco base year target year scope emissions scope emissions cat targets presented report process approved published next report salvatore ferragamo annual report december energy consumption mix mwh fuel consumption crude oil petroleum products fuel consumption natural gas fuel consumption fossil sources consumption purchased acquired electricity heat steam cooling fossil sources total energy consumption fossil sources share fossil sources total energy consumption energy consumption nuclear sources share consumption nuclear sources total energy consumption fuel consumption renewable sources including biomass also comprising industrial municipal waste biologic origin biofuels biogas hydrogen renewable sources etc consumption purchased acquired electricity recs heat steam cooling renewable sources consumption self generated non fuel renewable energy total energy consumption renewable sources share renewable sources total energy consumption total energy consumption group energy intensity mwh stood mwh conversion coefficients published department environment food rural affairs defra used calculate energy con sumption petrol diesel natural gas electricity mwh board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december gross scopes total ghg emissions following depth analysis group ghg inventory recalcula tion emissions related category purchased goods services cate gory upstream transportation distribution category downstream transportation distribution carried aim review ensure accurate representation group impact terms emissions line principles transparency reliability reporting tco delta scope ghg emissions gross scope ghg emissions percentage scope ghg emissions regulated emission trading schemes scope ghg emissions gross location based scope ghg emissions gross market based scope ghg emissions significant scope ghg emissions total gross indirect ghg emissions scope purchased goods services capital goods fuel energy related activities included scope scope upstream transportation distribution waste generated operations business travels employee commuting upstream leased assets downstream leased assets downstream transportation end life treatment sold products franchises total ghg emissions total location based ghg emissions total market based ghg emissions noted scope emissions restated previous report due change method calculating emissions previ ously published data please refer annual report available website https sustainability ferragamo com factors used calculate scope emissions issued department environment food rural affairs defra calculation scope emissions factors used published ispra referring year scope loca tion based scope market based factors used european countries published aib association issuing bodies scope emissions expressed tons however specified percentage methane nitrous oxide negligible effect total greenhouse gas emissions equivalent inferred technical literature calculation scope emissions rectly operated stores offices proprietary warehouses open selected total directly operated stores additional assets indirect emissions generated organizations consequence group activities known scope emissions calculated accordance ghg protocol corporate value chain scope accounting reporting standard scope categories identified relevant ghg emissions quantified multiplying organization activity data specific emission factor main sources emission factors used department environment food rural affairs defra publication year ecoin vent relevant scope categories taken consideration purchases raw materials services logistics including upstream downstream transportation distribution capital goods fuel energy related activities included scope scope waste generated operations business travel employee commuting upstream leased assets end life treatment sold products franchises scope emissions salvatore ferragamo annual report december scope indirect emissions tco cat capital goods cat cat upstream transportation distribution downstream transportation cat purchased goods services cat capital goods cat purchased goods services cat cat upstream transportation distribution downstream transportation board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december following table shows scope scope emissions location based market based related sets owned ferragamo group assets operational control greenhouse gas emissions assets owned group assets group operational control total scope scope scope emission intensity group tco stood tco emission intensity tco mln tco mln tco mln salvatore ferragamo annual report december ghg removals ghg mitigation projects financed carbon credits ghg emissions mitigation projects nanced carbon credits anticipated financial effects material physical transition risks potential climate related opportunities ferragamo continued implement climate change risk management framework analyze one hand challenges related climate change expected material influence group hand test resilience particular group carried initial assessment material physical risks related cli mate floods tornadoes hailstorms etc anal yses focused forty assets considered representative business activities including ferragamo owned sets directly operated stores dos relevant net sales key business suppliers terms type supply identify assets material physical risk specific climate tools ipcc wgi interactive atlas coperni cus etc used first assess exposure assets scope acute physical climate risks first assessed considering adaptation actions short medium long term consid ering worst case scenario rcp ssp multiplying theoretical values obtained tool analyses economic data relating group turnover asset value etc pos sible financial implications related risks quantified terms loss turnover due business interruption costs property damage moreover threshold defined line used group double materiality analysis assets considered material physical risk climate change adaptation measures considered finally order obtain effective representation assets material physical risk affected climate change adaptation measures group local manage ment representatives selected suppliers within aforementioned perimeter involved resulted certification existence maturity physical mitigation measures bulkheads barriers cooling systems etc protect risks question relative coverage status insurance level result first exercise single asset located italy considered material physi cal risk without considering climate change adaptation measures materiality primarily based eco nomic value strategic importance group material impact terms lost revenues however asset equipped measures adapt climate risks benefits extensive insurance coverage elements make net financial impact group negligible overall analysis group assets including owned group shows mature level adaptation climate risks mainly thanks extensive insurance coverage significantly reduces tential financial impact climatic events result expected short term financial impact group taking account adaptation meas ures physical insurance limited similarly significant financial impact expected medium long term given effectiveness adapta tion strategies limited increase theoreti cal exposure group sites board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december pollution policies related pollution sustainability policy mentioned esrs includes specific measures manage impacts risks opportunities related pollution contents policy derive double materiality process con ducted cover among aspects pre vention control environmental pollution policy group committed mitigat ing negative impacts water quality actively moni toring water resources used direct oper ations along supply chain company takes specific measures reduce environmental impact wastewater discharges group published responsible sourcing commitment reduce substitute substances concern phase substances high concern salvatore ferragamo responsible sourcing policy aims maintain highest ethical environmental social standards aim commitment actively integrate sponsible procurement practices corporate culture promoting health safety respect human rights protection environment gener ally ethics business practices along entire value chain since group requires suppliers sign supplier code conduct conducts audits sure compliance required standards met group take corrective action seri ous cases terminate business relationship poli applies group activities including upstream downstream value chain covers suppliers sub suppliers independent contractors partners geographical areas mainly include italy extend group operating regions stakeholders clude employees collaborators local communities board directors salvatore ferragamo highest level responsible implementation policy supported chief sustainability trans formation officer group committed complying third party standards initiatives fashion pact iso standard anti bribery manage ment systems ethical sustainable business development policy takes account interests main stakeholders including workers rights environmental protection promotion diversity inclu sion salvatore ferragamo promotes transparen sharing information stakeholders involved disseminating policy com pany website internal communications also courages stakeholder participation reporting feedback mechanisms policy requires suppliers involved man ufacturing process sign group restricted substances list rsl part qualification process regulatory monitoring ongoing carried close collaboration suppliers identify changes may require update rsl case update new document sent suppliers approval new col lection specific test plan drawn includes selection suppliers materials sampled selection based several criteria including amount material purchased novelty material non conformities found testing depth verification process ini tiated testing carried evaluate possible improvements production process ensure full compliance rsl event emergency situations relating prod uct production safety group committed responding quickly effectively managing situa tion utmost attention care documents listed publicly available ferragamo sustainability website salvatore ferragamo annual report december actions resources related pollution group recognizes importance manufac turing selling products comply terms chemical safety laws force global mar kets order protect health workers consumers well reduce environmental pact manufacturing throughout prod ucts life cycle legislation relating chemical safety based reach regulation regulates restric tion use chemicals purposes environmental toxicity tests conducted several components finished products accessories footwear structures leather textiles leather goods ready wear rubber soles company selects suppliers paying particular tention companies possession relevant certifica tions including related chemical safety zdhc since salvatore ferragamo adopted restricted substances list rsl establishes stricter criteria current reach line restrictions imposed geographical areas ferragamo products marketed list drawn voluntarily eliminate restrict use certain chemicals production phases updated inclusion new sub stances limits methods suppliers contract manufacturers engaged direct indirect rela tionships group required sign group strengthened monitoring materials identify potentially hazardous substances ver ify compliance group restricted substances list rsl sample based testing plan activity represents recurring continuous commit ment time order strengthen monitoring chemical substances group implemented system random testing materials used iden tify hazardous substances verify compliance company rsl board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december supplier zero program supplier zero program zdhc zero discharge hazardous chemicals initiative support companies textile tanning footwear supply chain continuously improving environmental per formance particularly chemical management program provides clear roadmap suppliers helping implement safer sustainable chemical management practices level certifies compliance basic requirements chemical management system control incoming chemicals adoption zdhc guidelines level certifies advanced level management greater control produc tion processes even effective reduction environmental impacts group continued data collection activity launched aim understanding rate adoption chemical management system along supply chain context ferragamo adopted zdhc meth odology implementation reference standard result information collected supply chain value leather purchased value fabrics purchased thus covering repre sentative portion supply chain findings show approximately value leather compared value fabrics compared purchased certified level suppliers adhering supplier zero program moreover limited suppliers involved data collection wastewater analysis applicable value leather value textiles purchased companies completed clearstream report aimed amining performance facilities wastewater management group strongly committed increasing transparency mitigating chem ical impacts risks along supply chain reason data col lection project expanded include suppliers metal accessories information representing purchase value collected results show value metal accessories supplied companies cer tified level supplier zero program reflecting level maturity specific supply chain still suboptimal compared leather textiles goal broaden scope supply chain involved necessary help suppliers implement improvement measures main expenses incurred implementation measures shown table activity capex opex pollution purchased leather certified zdhc level amount integral part item general administrative costs income statement consolidated financial statements sal vatore ferragamo salvatore ferragamo annual report december targets related pollution defined targets part sustain ability plan baseline approved board directors december represents strategic framework reference group sustainability initiatives reflects commitment united nations sustainable development goals european sustainability standards objective outlined section esrs sbm strat egy business model value chain related pollution follows esg building block target timing leading responsible value chain ensure responsible use chemical agents zdhc progressive phase maximizing efficiency use water resources compliance rsl together suppliers pro gressive compliance zdhc framework enables prevention control emissions water respective specific loads pollution soil related specific loads use substances con cern high hazard level target closely related group sustainabil ity policy particular section water waste ecosystem stewardship responsible sourc ing policy underlining company commitment sustainable responsible management throughout supply chain regard water pollution group actively mon itors water consumption ensures responsible sourcing prevents pollution targeted measures duce environmental impact wastewater discharge targets set presented group imposed regulatory requirements represent voluntary strategic choice reflects salvatore ferragamo commitment achieving positive environmental impact thus contributing creation shared value entire supply chain com munities involved substances concern substances high concern since issue chemical safety dressed presentation group stricted substances list rsl establishes even stricter criteria reach line strictions imposed geographical areas ferragamo products marketed list drawn voluntary basis aim eliminating restricting use certain chemical substances production phases indi cates maximum concentration thresholds sub stances concern salvatore ferragamo ensures compliance thresholds tests scribed furthermore rsl updated include new substances limits methods suppliers contract manufacturers direct indirect relationships group asked sign board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december water marine resources policies related water marine resources group formalized commitment man agement water marine resources sustainability policy already mentioned pollution climate change esrs water resources dressed together cross cutting issues water pollution protection marine ecosys tems group committed sustainable use water operations throughout value chain supplier code conduct group quires highest standards management water withdrawal discharge regarding use substances concern high concern group published responsible sourcing commitment details please refer section policies related pollution actions resources related water marine resources milestone terms consumption optimization achievement leed platinum certification highest level leed certification already obtained building osmannoro site mannoro logistics hub building covering approximate square meters inaugurated thanks numerous measures adopted relation technical systems water consumption optimized lead ing reduction total water consumption irrigation reduction consumption drinking water furthermore measures consistent leed standard implemented chanical electrical systems use lamps reduce light pollution minimum addition construction work made sustainable use products made fsc certified wood materials high level recycled content made locally always line leed standards salvatore ferragamo defined water action plan integral part sustainability poli section water waste ecosystem stewardship systematic collection data relating erations strategic suppliers plan pected implemented includes continuous monitoring defined kpis subsequent periods ensure gradual improvement water resource man agement among key initiatives quantification direct impact water resources led increase collection primary data global stores aim mapping least local units specific focus areas located areas extremely high water risk gradually increase coverage following years parallel detailed effort made quantify indirect impacts mapping key suppliers including suppliers raw materials finished products focus located areas high water stress approach already made possible monitor water consumption group suppliers terms expenditure helping identify hotspots align actions objectives water action plan moreover assessment esg factors inte grated risk analysis process focus placed water related marine risks main expenses incurred implementation measures shown table activity capex opex water targets related water marine resources defined targets part sustain ability plan baseline approved board directors december represents strategic framework reference group sustainability initiatives reflects commitment united nations sustainable development goals european sustainability standards objective outlined section esrs sbm strate business model value chain related water marine resources follows amount integral part item general administrative costs income statement consolidated financial statements sal vatore ferragamo salvatore ferragamo annual report december esg building block target timing leading responsible value chain ensure responsible use chemical agents zdhc progressive phase maximizing efficiency use water resources salvatore ferragamo committed responsi ble use chemicals accordance principles zero discharge hazardous chemicals zdhc program initiative aims promote progressive elimination hazardous chemicals maximizing efficiency management water resources qualitative quantitative objective part time horizon aims achieve results target closely related group sustainabili policy particular section water waste ecosystem stewardship responsible sourc ing policy underlining company commitment sustainable responsible management throughout supply chain regard direct water consumption offices stores production sites logistics hub group periodically conducts assessment monitoring pro cedures confirming almost water supply comes aqueducts consumption mainly related hygienic use water particularly significant targets set presented group imposed regulatory requirements represent voluntary strategic choice reflects salvatore ferragamo commitment achieving positive environmental impact thus contributing creation shared value entire supply chain com munities involved water consumption esrs found material along value chain however water consumption related opera tions reported water consumption areas areas water risk including areas high water stress total water consumption total water recycled reused total water stored water intensity total energy consumption revenues water intensity million board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december biodiversity ecosystems transition plan consideration biodiversity ecosystems strategy business model strategic business resilience considerations related biodiversity yet formalized structured analysis however group considers issues part process defining objectives business continuity including impact along entire value chain group conducted depth analysis biodiversity impacts dependencies value chain using wwf biodiversity risk fil ter aligning sbtn methodological framework analysis found tier responsible greatest impacts along leather supply chain particularly terms climate change water consump tion eutrophication similarly cotton supply chain tier responsible main impacts related water consumption eutrophication tier relevant climate change following sbtn methodology rankings relating pressure state nature sonp sonb combined produce final ranking allows identification priority locations focus actions analysis identi fied main impacts related leather supply chain responsible significant pressure land use estimated around hectares concentrat countries italy spain netherlands france sbm material impacts risks opportunities interaction strategy business model double materiality process salvatore fer ragamo identified two significant impacts related soil degradation loss biodiversity along supply chain example deforestation textile fiber production livestock farming environmental impacts biodiversity use soil pesticides cultivation raw materials need make gar ments cotton context biodiversity topics impacts risks portunities identified taking consideration upstream value chain since ferragamo carry activities direct impact biodiversity group requires suppliers operate accord ance provisions convention inter national trade endangered species wild fauna flora cites sourcing hides endan gered species included appendices cites commitment detailed animal welfare pol icy discussed detail separate sec tion policies related biodiversity ecosystems salvatore ferragamo defined commitment safeguarding promoting biodiversity biodiversity manifesto illustrates principles derlying group activities area policy dresses biodiversity risks impacts struc tured approach focused prevention mitigation restoration structured around three fundamental principles promotion collaboration innovation continuous improvement operations sourcing support ecosystem protection resilience manifesto adopted salvatore ferraga subsidiaries group also promotes adoption principles manifesto erations value chain including main stake holders employees suppliers contract manufac turers shareholders investors distributors internal stakeholders final customers trade associations dia influencers ngos local communities regulatory government bodies public administration schools universities external stakeholders sustainability function responsible supervising policy coordinating sustainability projects objectives manifesto developed following third party regulations initiatives sal vatore ferragamo undertakes respect plementation policy including science based targets nature principles convention biological diversity cbd post glob biodiversity framework biodiversity strategy sustainable development goals sdgs salvatore ferragamo annual report december biodiversity manifesto available download company website make accessible stakehold ers potentially contribute implementation objectives set salvatore ferragamo relate particular group commitment promoting traceability raw materials involving suppliers responsible sourcing practices promoting certifications switching preferred materials lower environ mental impact group also prioritizes avoidance activities lead degradation ecosystem deforestation unsustainable land use avoidable supports initiatives protect degraded ecosystems forest marine conservation projects another issue addressed manifesto promotion regenerative agricultural practices minimize environmental impacts soil depletion use pesticides supporting conservation biodiversity operations biodiversity manifesto therefore addresses biodiver sity issues may concern group therefore specif policies developed issues addressed single document specification responsible sourcing con tained responsible sourcing commitment men tioned earlier esrs section pollution policy states traceability essential group effectively assess mitigate potential environmen tal social risks throughout supply chain ensure compliance applicable european regulations directives including limited european union regulation deforestation free products eudr ecodesign sustainable products regulation espr suppliers required provide complete information sub suppliers involved production process including data relating production sites must also provide details products supplied cer tificates materials example scope trans action certificates relevant documents cites permits actions resources related biodiversity ecosystems group protection promotion biodi versity characteristic elements company approach environmental responsibility pro motion made italy distinguished brand since foundation addition signing fashion pact formalization biodi versity manifesto group commitment continued subsequent years participation webinars working tables training initiatives aim developing strategy focused protecting biodiversity line special attention paid cial environmental economic impacts responsi ble procurement materials animal origin used manufacturing processes particularly impor tant product category group considers essential adopt depth approach issue animal welfare along entire supply chain awareness enhancement value products closely linked respect environment biodiversity already highlighted salvatore fer ragamo started analysis impacts dependencies nature line science based target network sbtn framework objectives defined biodiversity manifesto line tnfd taskforce nature related financial dis closures guidelines activity involves definition action plan activation targeted strategies starting year top man agement key departments involved work shop dedicated topic time group taken concrete meas ures area packaging favoring use paper certified forest stewardship council fsc retail activities order guarantee sustainable management forests traceability prod ucts iconic red ferragamo packaging entirely made italy recyclable made recycled fib ers cellulose treated environmentally friendly processes ecf group paper packaging fsc pefc certified aim reaching attention paid board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december packaging selection suppli ers recognized certifications iso iso iso gots grs pefc fsc oeko tex group also pays special attention supporting local communities protecting biodiversity tuscany group formalized commitment contrib uting financially ongoing research project department agricultural food environmental forestry sciences technologies dagri partimento scienze tecnologie agrarie alimen tari ambientali forestali university flor ence collaboration regional association livestock farmers tuscany arat associazione regionale allevatori della toscana pilot project aims protect indigenous endemic tuscan cattle breeds danger extinction promote creation supply chain agreement support local livestock farm ers promote recovery hides micro pro ductions excellence group aims acti vate additional targeted projects areas interest finally salvatore ferragamo recon firmed commitment protection biodiversi sustainable management natural resourc participating monitor circular fashion monitor circular fashion aims analyze evolutionary dynamics fashion sector examin ing impact respect sustainable develop ment goals united nations agenda particular focus safeguarding biodiversity responsible management resources part project group developed pilot itiative traceability sustainability calf leather used fiamma bag leather traced entire supply chain breeding assembly final product accordance icec ts_sc standard aim testing validating due diligence management system compliance regulation deforesta tion free products eudr reg process ensures practices adopted con sistent conservation forest ecosystems compliance international regulations project also integrated principles eco sign guaranteeing durability product physical solidity tests accordance uni standard demonstrating active commitment minimizing environmental impact promoting responsible use natural resources safe chemicals used tanning process accordance basic level zdhc framework tan nery question operates iso certified environmental management system salvatore ferragamo annual report december icec ts_sc certification icec ts_sc certification standard verifies upstream traceability raw materials used tanneries main objective map traceability hides enter tannery raw hides skins seller ensuring greater transparency throughout supply chain activities linked objectives outlined biodiversity manifesto also group animal welfare policy reinforcing commit ment sustainable responsible approach main expenses incurred implementation measures shown table activity capex opex biodiversity targets related biodiversity ecosystems defined targets part sustain ability plan baseline approved board directors december represents strategic framework reference group sustainability initiatives reflects commitment united nations sustainable development goals european sustainability standards objective outlined section esrs sbm strat egy business model value chain related biodiver sity follows esg building block target timing leading responsible value chain support biodiversity preservation sustainable forest management toward zero deforestation qualitative quantitative target part commitments outlined group biodiversity mani festo animal welfare policy target covers entire value chain including upstream procurement raw materials support local communities particular focus tuscany region origin symbol made italy brand represents target covers main areas impact identified group including procurement raw materials leather cotton paper protection local eco systems supported timeline foresees sig nificant intermediate results implemen tation targeted strategies ecosystem conservation projects final target reached stakeholders actively involved materiality analysis structured consultations par ticular focus key suppliers results used define goals sustainability plan commitment supported structured governance system ensures continuous monitoring progress transparency communicating progress part group broader sustainability strategies metrics used monitoring include amount certi fied raw materials used implementation biodi versity protection projects progress currently track reflects ongoing commitment making positive impact biodiversity trends continually analyzed identify opportunities improvement amount integral part items general administrative costs operating costs income statement consolidated financial statements salvatore ferragamo board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december resource use circular economy policies related resource use circular economy progressive reduction virgin resources one group objectives time focused efforts resources materials low environmental impact purpose cross func tional work team dedicated initiative set group also adopted specific guidelines materials fibers preferred conversely discouraged avoided aim promot ing respect environment people planet objectives set responsible sourcing commitment described section esrs policies lated pollution content detailed responsible sourc ing commitment reiterated sustainability poli describes importance transparency traceability natural materials every stage sup ply chain ensure highest standards responsible production customers therefore company commitment reducing dependence non renew able resources also reaffirmed moreover group committed responding product safety supply chain emergencies timely efficient manner tak ing swift action manage situation care attention responsible sourcing commitment sustaina bility policy address issues analyzed detail terms impacts risks opportunities identified considerations also communi cated commercial partners supplier code conduct actions resources related resource use circular economy group committed taking action order duce production waste arising operations well raise awareness among employees respect proper management disposal practices encouraging reuse recycle materials well minimize waste waste order understand mitigate impacts activities group committed verifying coming outgoing flows may generate waste line requirements iso vironmental management system adopted group italian offices stores salvatore ferragamo developed specific procedures ensure fective efficient management waste well correct periodic monitoring waste produced management includes monitoring ratio haz ardous waste total waste generated amount waste produced relation turnover amount waste recycled relation total waste pro duced italy waste management entrusted third parties deliver waste temporary depos facility transport recycling disposal plants process order verify third parties comply relevant legislation envi ronmental requirements force internal audits periodically carried activity performed continuous basis ensure compliance certifica tions environmental standards full accordance commitments defined group sustain ability policy confirming group ongoing commit ment responsible waste management salvatore ferragamo annual report december materials inclusion materials low environmental impact collection one top priorities brand set cross functional work team dedicated initiative group also adopted specific guidelines materials fibers preferred conversely discouraged avoided aim promoting respect environment people planet raw materials lowest environmental impact listed guidelines include way example organic cotton silk gots ocs certified regenerated nylon polyester yarns post consumer recycled wool cashmere viscose responsibly managed forests metal free leather leather leather working group certified tanneries turnover group suppliers bovine sheep hides fine leathers derived lwg certified tanneries specifically supplier turnover came tanneries highest levels lwg certifica tion gold silver results testify effectiveness virtuous sourcing policies adopted aim achieve lwg certified leather company also launched significant intervention policy com pletely eliminate disposable materials derived virgin fossil sources packaging commitment led significant changes materials used marked preference recycled paper cellulose fsc certified components shoetrees protective tubulars fillers internal flocking use paper cellulose proven unsuitable choice materials directed towards bio based plastic derived renewable raw terials recycled plastic end internal procedure established provide operators systematic approach selecting appropriate packaging materials based environmental criteria aim facilitate transition packaging lower environmental impact providing decision making frame work considering different material options guidelines line regulations voluntary initiatives responsible packaging particular packaging packaging waste regula tion ppwr objectives fashion pact tanneries certified lwg tanneries certified lwg gold silver leather working group leather working group lwg developed international auditing standard assess certify leather manufacturers based environmental social criteria third party audits lwg ensures dependent transparent evaluation practices adopted tanneries promoting continuous improve ment sector audit evaluates key areas including resource management safety environmental chemical impacts also promoting higher standards industry addressing traceability deforestation throughout supply chain board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december ppwr legally binding regulation sets specific requirements packaging materials enforces compliance environmental social standards fashion pact specific voluntary commitment fashion industry joined internal procedure helps comply regulations also supports company com mitment strategy aimed eliminating use vir gin fossil fuels packaging order enhance collection data purchased materials first foremost raw materials improve reliability traceability completeness strategic project launched aimed auto mating refining operational functionalities related sustainability attributes product lifecycle management plm platform integration data corporate management platforms adop tion structured process made possible efficiently collect manage sustainability information considered preferred materials guidelines related raw materials finished products marketed suppli ers project laid solid foundation creating transparency ensuring consistency across product supply chain esg data also increasing automation control reporting processes group also completed project study environmental impact production three best selling iconic items handbag ballet flat moccasin used results identify strategies reduce ecological footprint central element project life cycle assessment lca made three products question study considered cradle factory gate rimeter examining processing phases production raw materials packaging finished product packaged ready distribution hand product usage end life phas excluded first analysis based secondary datasets con ducted identify critical points engage suppli ers responsible impacts latter involved collection primary data direct measurements facility allowed depth analysis identified hotspots approach increased ferragamo inter nal awareness environmental impact pro duction processes also raised awareness players involved production chain fact presenting results obtained potential improvements identified three tanneries col lected primary data group committed making suppliers aware use energy water chemicals tanning tanning fin ishing phases life cycle assessment methodology conducted life cycle assessment lca based european union environmental footprint methodology lca based approach aimed evaluating environmental impacts products organi zations midpoint impact categories including three specifically focused toxicity related effects specifically analyzed impact categories include climate change ozone layer depletion ionizing radi ation formation tropospheric ozone particulate matter effects human health non car cinogenic human toxicity carcinogenic human toxicity acidification freshwater eutrophication rine eutrophication terrestrial eutrophication freshwater ecotoxicity land use water use fossil resource use mineral metal resource use salvatore ferragamo annual report december last year group also strengthened sustainability strategy incorporating materials reduced environmental impact watch eyewear collec tions thus consolidating values innovation environmental responsibility watches feature components made rcs blended certified recycled stainless steel straps made innovative materials bio tpu recycled leather lwg certified tanneries eyewear collection uses frames made sus tainable materials acetate renew bio injected materials lenses made bio based materials derived wood agricultural waste line commitment responsible management raw materials group set specific targets main materials uses circularity group organized first circularity hackathon involving col leagues worked together imagine brand iconic products circular approach inspired company heritage working groups com posed members operations design merchandising sustainability divi sions supported design experts designed developed physical prototypes based specific circularity requirements social function waste reduction elimina tion pollutants recyclability redesign emotional durability physical durability criteria innovation marketability communicability brand recognition products created presented panel made ceos creative directors company executives selected top three skill creativity teams led intense collaboration various departments resulting unique innovative products great potential inspire enrich future collections demonstrating company transformative power reduce deadstock raw materials salvatore ferragamo launched pro ject osmannoro site recover obsolete materials promote reuse finished product reaching reuse available deadstock compared end reused deadstock first group circularity hackathon board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december still circular approach mind group imple mented second life strategy event set ups donating materials fashion show architecture stu dents reused artistic interventions per formances exhibited milan time internal auction allowed sale unused visual merchandising items employees proceeds donated charity combining sustainability social impact main expenses incurred implementation measures shown table activity capex opex materials circularity targets related resource use circular economy defined targets part sustaina bility plan approved board directors cember represents strategic framework reference group sustainability initiatives reflects commitment united nations sustain able development goals european sustainability standards objectives outlined section esrs sbm strat egy business model value chain relating use resources circular economy follows esg building block target timing fostering materials innovation raw materials lower environmental impact elimination single use virgin plastic packaging implement circularity principles across ferragamo operations products lifecycle amount integral part item general administrative costs income statement consolidated financial statements sal vatore ferragamo salvatore ferragamo annual report december objectives cover entire value chain particular focus upstream pro curement activities end life product management applied globally cover materials used production processes packaging special focus certified suppliers materials sustainable supply chains targets set significant intermediate target set example reaching raw materials low environmental pact updates progress checks scheduled annually ensure defined goals met raw materials target covers entire upstream supply chain plas tic packaging target covers entire production distribution cycle glob scale baseline raw materials year target achieved packaging please refer section methods adopted include life cycle assessment lca international sustainability standards data certified suppliers line directives environmental goals devel oped accordance guidelines fashion pact group member since targets monitored key performance indicators kpis fined updated annually periodic checks ensure progress line forecasts promote design durability material recovery increase use cycled materials reduce dependence primary raw materials promot ing sustainable procurement certified renewable resources definition objectives guided results materiality analysis stakeholders actively involved structured consultations par ticular focus key suppliers commitment supported structured governance system part broader framework group sustainability plan lci materials achieved board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december resource inflows resource inflows total weight technical materials biological materials product ton total weight materials sustainability certificate total weight materials sustainability certificate information certificates percentage biological materials certified leather lwg metal cotton gots grs wool rws grs viscose fsc rcs silk gots grs polyester grs nylon grs biological materials componentsi technical materials components percentage biological materials certified metal category also includes brass steel silver wool category also includes cashmere alpaca mohair camel viscose category also includes lyocell rayon biological materials components category composed cellulose tons leather tons technical materials components category composed tpu tons abs tons polyurethane tons eva tons rubber tons category constitutes total includes two groups materials technical materials foam rubber felt elastane polypropylene acrylic textile paper pvc spandex polypropylene latex silicone plexiglass less important materials biological materials horn mother pearl flax cork shearling glass stone raffia wood less relevant materials wool viscose silk salvatore ferragamo annual report december resource inflows total weight technical materials biological materials packaging total weight materials sustainability certificate total weight materials sustainability certificate information certificates percentage biological materials certified paper fsc cardboard fsc cotton cellulose plastic grs recycled percentage biological materials certified paper cardboard plastic cellulose group main resource inflows consist raw materials leather packaging account ing approximately plastic category composed ldpe polyethylene polyester plastic adhesive polypropylene plastic category includes viscose paper adhesive board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december resource outflows waste diverted disposal total hazardous waste preparation reuse recycling recovery operations non hazardous waste preparation reuse recycling recovery operations directed disposal total hazardous waste incineration landfill disposal operations non hazardous waste incineration landfill disposal operations non recycled waste percentage non recycled waste total waste generated salvatore ferragamo annual report december waste reported waste data includes waste generated florence milan industrial sites well foreign offices waste generated abroad con sists packaging materials mainly cardboard paper plastic headquarters hand type waste varied include addition elements already mentioned also waste gen erated production activities carried mano via particular production waste include leather scraps accessories consumables used creation products components products salvatore ferragamo attaches great importance quality durability raw materials used particular attention use high quality leather certified tanneries selected according strict environ mental social criteria commitment superior materials ensures high quality products also helps extend life reduce environmental pact associated manufacture durability ferragamo products line values luxury fashion market promoting quality craftsmanship attention product durability properly maintained products long use ful life without specific predefined time limit committed ensuring repairability products considering adoption recognized scoring systems appropriate salvatore ferragamo also offers repair services selection authentic products selection boutiques demonstrating concrete commitment sustainability circular economy services available items purchased different countries different channels enable customers extend useful life products reduce need new resources repair assessment requested selected ferragamo stores deemed feasible product returned repair proof purchase conditions suitability repair vary cording type product location guaran teeing personalized approach respects specific needs customer far packaging concerned duration varies depending stored used board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december social information salvatore ferragamo annual report december ergs worldwide employees resource groups audits fair pay analyst certified ferragamo community involved university research health professional development projects board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december salvatore ferragamo annual report december workforce sbm material impacts risks opportunities interaction strategy business model double materiality process group identified following impacts related workforce upskilling workers training professional development activities also linked growth objectives personalized assessments promotion employee satisfaction wellness implementation well activities dedicated benefits failure meet workers expectations terms adequate remuneration failure meet workers expectations terms fair remuneration strengthening implementation dei business policies promote good working environment inclusive environment also thanks presence people disabilities among workforce negative impacts employee satisfaction motivation due discrimination related gender age ethnicity etc injuries accidents workplace negative consequences health direct workers board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december impacts risks opportunities outlined close linked group core values since foundation salvatore ferragamo considered wellness people priority ensuring management based principles fairness integrity respect every stage value chain group commitment demonstrated professional development internal resources attraction new talent promotion healthy work life balance guaranteeing compliance occupational health safety standards relevant players company value chain involved definition drafting document group therefore considered workforce analysis impacts risks opportunities arising activities value chain upstream downstream group workers include employees broken type contract temporary permanent non guaranteed hours gender professional category managers white collars blue collars workers employees agency staff interns also taken consideration every stage value chain positive impacts identified translate professional development resources attraction new talent pro motion work life balance guaranteeing compliance occupational health safety standards impacts concern individual accidents generalized nature manifest context group operates case man rights health safety operations risk forced child labor may linked upstream value chain risk sit uations occurring respect employees low given group compliance applicable regulations areas operates however order minimize residual risk company implements peri odic audit programs ensure practices occur type worker description main types workers distinguish specific groups may exposed risks salvatore ferragamo considers workforce whole risks opportunities identified double mate riality process refer workforce whole without reference specific groups workers increased talent attraction productivity creating positive business climate adoption diversity inclusion policies positive impact group economic financial performance compliance regulatory changes hse work related accidents may involve health environmental safety risks may result increased costs due contractual changes existing insurance policies policy settlements work stability office headquarters employees families work stability retail employees families risks related talent attraction retention key people salvatore ferragamo annual report december specifications outlined mdr please refer section policies related climate change mitigation adaptation elements influence company strategy fact objectives listed section esrs sbm strategy business model value chain take con sideration issues identified risks opportu nities translating targets actions policies related workforce sustainability policy salvatore ferragamo addresses purely environmental issues also considers relationships employees exter nal workers communities aim adopting sustainable measures practices improve work ing social climate inside outside group group approach human capital development emphasizes value individual within ganization group invests continuous career velopment training promotion clusive diverse work environment commitment extends throughout supply chain requiring part ners suppliers comply principles occupational health safety top priority group ensures compliance highest standards occupational health safety regularly checking work environments providing training reduce risks purpose italian administrative offices stores salvatore ferragamo iso certified group also promotes work life balance flexible work arrangements wellness programs aimed improving physical mental health diversity inclusion initiatives also heart group mission support workforce reflects diverse backgrounds perspectives talents principles applied internally also pro moted supplier network fair labor prac tices equality promoted throughout value chain instead responsible reorganization com mitment group recognizes need adapt dynamic market environment characterized eco nomic challenges may lead workforce reorgani zation group therefore recognizes value pro viding clear timely information employees purpose impact opportunities reorgan ization everyone aware context informed process means commitment reducing impact workforce customers communities confirmation salvatore ferragamo commitment achieving highest ethical standards sustainable business development policy policy includes rejection child labor forced compulsory labor protection workers health safety respect trade union freedom collective bargaining respect decent wage cor rect working hours non discrimination prohibition inappropriate disciplinary practices develop ment management system company committed ensuring social responsibility principles standard disseminat understood respected workers members supply chain stakeholders encour aging participation fruitful constructive interaction group encourages responsible use com munication channels available submission reports offering possibility web portal dedicated whistleblowing directly contacting group ethics committee body charge managing reports ethics committee appointed company board directors oper ates accordance regulations force provisions group whistleblowing policy publicly available ferragamo group website details please refer section esrs pro cesses remediate negative impacts channels workers raise concerns group adopted code ethics containing principles general rules characterize organi zation business document applies cor porate bodies employees representatives collabo rators whatever capacity regardless nature contractual relationship act name behalf group companies company requires third parties partners customers suppliers professionals consultants types external parties establishes business relationships comply code ethics main responsibility ensuring application board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december dissemination code entrusted eth ics committee similar responsibility assigned individuals placed top company area ensure complied work within function regard issues relating diversity equity clusion group adopted inclusion policy purpose document promote diversity equity inclusion sense belonging within organiza tion objectives include promotion multicultur alism equality equal opportunities fight forms discrimination condemnation forms harassment policy supports meritocracy equal treatment facilitating development enhancement individual potential salvatore ferraga committed regularly evaluating progress measuring impact initiatives policy applies group employees corporate bodies independent contractors working name behalf salvatore ferragamo companies also cluding diversity within board directors chief people officer ultimately responsible implementation policy board directors salvatore ferragamo responsible proval promotion policy refers universal declaration human rights ilo discrimination conventions malizes company support valore female quotient associations dedicated building non discriminatory professional world policy promoted adoption subsidiaries dissemination recipients salvatore ferragamo implemented reporting system prevent combat illegal behavior behavior contrary prin ciples policy maintaining confidentiality whistleblowers protecting possible retal iation details please refer section esrs processes remediate negative impacts chan nels workers raise concerns regard issues discrimination diversity inclusion salvatore ferragamo emphasizes sustainability policy rejection forms child labor forced labor discrimination based charac teristics age gender race nationality religion sexual orientation political affiliation concept repeated global recruitment poli emphasizes selection process strict fair aims identify people share salvatore ferragamo commitment excellence carrying processes group committed avoiding direct indirect discrimination using neutral language promoting principles equality inclusion diversity interviews core values ferragamo policies translated internal proce dures available employees processes engaging workforce workers representatives impacts italy communication representatives ternal workers rsu trade unions takes place regular meetings usually every two months intensified according needs projects actions discussed supplemen tary company agreement planned march regional level structured standard ized consultation worker representatives regarding impacts initiatives great place work survey made possible collect anonymous feedback workers topics inclusive lead ership collaboration customer centricity accountability agility results surveys carefully ana lyzed integrated decision making processes related employee well working conditions relevant aspects necessary regional business partner tablish dialog workforce workers represent atives trade unions address specific impacts approach allows properly represent company take account results dialog decisions korea example company organizes quarter labor management councils accordance local laws involving representatives workers salvatore ferragamo annual report december company leadership discuss address issues lated working conditions safety wages organi zational improvement thus promoting open communi cation cooperation responsibility worker engagement assigned human resources department guidance chief people officer last two years important project also launched focused reviewing internal communica tion strategy goal strengthen employee engagement creating corporate community everyone within offices retail network informed company strategies initiatives actively participating sharing content internal communication review process began analysis tools currently use highlighting opportunities improvement part strategy review number initiatives launched including footprint monthly newsletter aims engage inform employees various business topics initiatives undertaken organization well give visibility best practices global level analytics newsletters sent year high audience engagement average reach open rate based number recipients peak townhall two global events organized march september aim ensuring greater sharing corporate objectives townhall event september key moment consolidate brand relaunch path share results achieved future objectives ferragamo together platform dedicated employees corporate regional level aimed providing information updates initiatives shared global regional levels dynamic portal people stay informed like actively participate platform includes sections dedicated region personalized specific information also allows people keep track documents policies procedures updates related brand create dedicated groups access specific information particularly engagement initiatives well erg corporate programs videowalls osmannoro headquarters video walls buildings recreation areas company restaurant tools allow entire company staff including operation colleagues informed activities events initiatives video walls also play fundamental role keeping employees informed training course deadlines ensuring timely accessible communication bespoke newsletter focused promoting services initiatives tailored employees aim improving quality life internally well externally analytics newsletters sent peaks september november average reach varies indicating high level engagement topics discussed finally company defined published institutional website responsible reorganization commitment guides involvement dialog workers board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december processes remediate negative impacts channels workers raise concerns group always committed promoting corporate culture based ethics legality reason following issue directive updated group whistleblowing policy fines channels requirements internal ternal reports well public disclosures reports judicial accounting authorities occasion company also updated code ethics regulations ethics committee document aims establishing encouraging informed use internal reporting channels well prevent combat unlawful conduct conduct con trary principles rules prescribed group organizational models codes ethics corporate pol icies protecting confidentiality whistleblowers protected parties safeguarding risks retaliation full compliance applicable gal provisions system presenting reports based three levels internal reporting channels managed ethics committee considered privileged closer source reported issues dedicated web platform external reporting channels established competent public authorities member states european union public disclosure material breaches involving based group companies conditions set law encourage submission reports interest business integrity group committed provid ing whistleblowers protected parties involved report various capacities protections provided applicable whistleblowing regulations particular protection system consists following types protection protection confidentiality whistleblower facilitator persons involved per sons mentioned report protection retaliation result internal ternal reporting public disclosure complaint limitations liability regarding disclosure dis semination certain categories information provision support measures third sector enti ties dissemination policy organized dif ferentiated according classes stakeholders volved employees publication reposito ries company procedures corporate bodies also means communica tion administrative bodies subsidiary attorneys collaborators capacity erate name behalf group subsid iaries notification hard copy electronic form external parties publication website previously indicated ethics committee appoint company board directors body charge managing reports received whistle blowing channels ethics committee also responsible monitoring compliance whistleblowing policy best practices applicable regulations overseeing plementation maintenance web platform collection management reports promot ing coordinating information training activities operation respect handling reports ethics committee decides seek support local company functions external consultants conduct depth investigations necessary carry inquiries related content reports company functions consultants required maintain strictest confidentiality respect content report training activities promotion whis tleblowing policy company staff carried training program called compliance dig ital pathway also includes training code information contents policy please refer document published company website available https group ferragamo com governance model code ethics salvatore ferragamo annual report december ethics anti corruption policy cybersecurity data protection model latter italy particular training available nine languag taking action material impacts workforce approaches managing material risks pursuing material opportunities related workforce effectiveness actions group implemented series strategic initiatives aimed strengthening commitment sustainability promoting inclusive equitable dedicated intranet platform also offered new hires part onboarding process work environment focused people well actions part structured multi level plan clear objectives defined time horizons ensure lasting tangible impact global workforce group activities closely linked compa policies ensure fairer inclusive work environment inclusion policy guided gender equality initiatives reduction gender pay gap development programs global recruit ment policy ensured fair inclusive selection pro cesses board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december equitable talent journey key aspect journey equitable talent journey program designed attract develop value people equitable way context group revised talent acquisition practices adopted global recruitment policy ensure inclusive non discriminatory selection processes dedicat section company linkedin page created highlight commitment inclusion diversity statement included global job postings tract diverse talent group also launched employer branding itiative focused sustainability involved collabo ration polimoda launch implementation first edition master degree sustainable fashion launched scheduled run students asked come new creative circular solutions terms materials products services business models created specifically ferragamo get ahead legal requirements hiring protect categories road map disability hiring campaigns defined starting internship programs global headquarters followed regional global implementations following years time learning courses inclusive recruit ment recruiters managers involved selection processes planned release terms career development specific women powerment programs launched partner ship valore female quotient pro mote gender equality develop female talent key roles starting mentoring programs par ticular focus japan regions coaching initiatives women launched strengthen leadership skills prepare strategic sitions programs extended regions global career development initiative launched salvatore ferragamo annual report december inclusive organisation time group worked build inclusive organization spreading consolidating culture based diversity inclusion equal portunities key aspect strategy monitor gender balance levels ganization particular focus reducing gender pay gap thanks use advanced business intelligence tools company adjusted gender pay gap calculated first time december taking count objective elements pay difference line provisions pay transparency directive following calculation holistic approach used define actions reduce adjusted pay gap stood aim eliminating completely figure december recalculated performance cycle complete initial result observed year reduction unadjusted indicator published document period group wants commit reducing adjusted gender pay gap setting targets zero significant milestone reached adjusted calculation submitted fpi fair pay innovation lab recognized fair pay alyst certification confirming variables used strong correlation pay structure support commitment process certification dei management system according uni pdr standard initiated expected completed another milestone renewal approval new group wide inclusion policy provides clear common frame reference regions training esg dei issues played fundamental role sign first people manager program office retail managers completed first train trainer program trained internal train ers corporate emea areas updated course launched line uni pdr certification digital module breaking bias relaunched followed modules bridging generations gap role weight country reference function belong tenure seniority performance gender pay gap adjusted board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december fair pay analyst fair pay analyst part universal fair pay check initiative committed promoting fair transparent pay structures process based depth analysis company compensation system evaluating factors influence remuneration role department seniority identifying unjustified disparities including gender pay gaps achieve fair pay analyst status organization must carry detailed analysis pay structures calcu lating adjusted unadjusted gender pay gap well identifying potential disparities must implement corrective measures formalize commitment fair pay commitment ensuring salary equity transparency great place work gptw survey conducted globally using certified trust index model analyzing five key mensions work experience credibility measures trust leadership directly impacting job satisfaction respect evaluates employee well work life balance essential reducing stress fairness focuses equity inclusion ensuring transparent respectful work environment pride reflects sense longing purpose aligning employees company values lastly camaraderie highlights quality relationships among colleagues fostering positive work environment overall happiness foster belonging strengthen sense belonging group launched initiatives aimed promoting employee gagement well key moment process first global engagement survey volved regions countries response rate results provided essential data develop ment customized regional action plans leading achievement great place work certification key countries america china korea commit ment continue introduction pulse surveys full surveys constantly monitor pro gress identify areas improvement salvatore ferragamo annual report december moreover employee resource groups ergs established gion promote constructive dialog employees management initial focus gender generational diversity inclusion scope ergs expanded include dimensions diversity generational lgbtqi disability strengthen sense belonging inclusion time new initiatives mental physical well launched participation ergs initiatives adapted perfected based feedback results obtained ensuring continuous improvement well policies employees ergs encouraged dialog employees management promoting specific actions regional basis strengthen sense belonging inclusion project redefine values skills success enablers final ized aim indicating behavior expected achieve business objec tives create innovative welcoming work environment focused profes sional personal development communicate disseminate values skills within group success enablers days organized employees able experience new corporate culture individually groups various group head fices dynamic engaging activities facilitated success enablers bassadors level staff participation exceeded reaching head office staff korea retail population engaged online activities followed ded icated morning briefings individual stores employee resource groups ergs board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december welfare wellbeing well employees fundamental pillar ferragamo years developing initiatives aimed improving quality working life welfare tools organizational flexibility support programs smart working work life balance since group adopted remote working flexible organizational model allows employees manage activities greater autonomy line needs company company consolidated approach offering five eight days month various company roles aim improving work life balance reducing environmental impact commuting optimizing energy efficiency offices flexible benefits income support years supplementary agreement signed company rsu renewed applies entire staff covered national collective labor agreement footwear industry addition variable performance based bonus provided envisages possibility converting bonus welfare credit spent welfare services goods services benefits various kinds aimed increasing personal well support family life well social secu rity coverage employee family moreover order provide support family daily expenses counter high cost living three homogeneous categories employees identified covered national collective labor agreement footwear industry perma nent contract receive additional amount consisting additional figura tive credit spent welfare services regardless company perfor mance work performance maximum usability welfare services integrated portal set within company communication platform provide access flexible ben efits set services provided company tailored employees families areas health sports wellness education culture entertainment welfare portal employee ability select build benefits package selecting services products according needs available credit used part supplementary agreement initiatives employees introduced supplementary pension scheme reduction cost meals company restaurant healthcare supplementary health insurance group maintained strengthened supplementary healthcare cover age corporate retail employees moreover targeted interventions implemented improve level healthcare coverage offering additional healthcare services beyond provided company national collec tive labor agreements flexibility worklife balance salvatore ferragamo annual report december wellbeing aim expanding initiatives dedicated well employees ferragamo implemented programs manage work related stress biennial assessments identify critical issues plement improvement actions addition local services agreements put place improve work life balance including family days events designed strengthen sense belonging also involving families employees new discount agreements personal well access beauty fitness services period group constantly monitor effectiveness initiatives employee feed back impact analysis ensuring continuous improve ment corporate welfare policies main expenses incurred implementation measures shown table activity capex opex activities targets related managing material negative impacts advancing positive impacts managing material risks opportunities objectives outlined section esrs sbm strat egy business model value chain related work force follows esg building block target timing empowering people equitable talent journey attract develop empower people equitable talent journey inclusive organization spread ground culture diversity inclusion equal opportunities foster belonging nurture engagement well activities employees belonging amount integral part item general administrative costs income statement consolidated financial statements sal vatore ferragamo board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december part sustainability plan group defined three strategic objectives strengthen inclu sion diversity employee well baseline year annual milestones defined dei plan supported sustainability policy inclusion policy first target equitable talent journey aims tract develop enhance people fair growth path scope target covers external audience employer branding recruitment internal audience employees people managers application regional global level defini tion target based internal analysis involvement team presentation dei plan bod board members second target inclusive organization aims spread establish corporate culture based diver sity inclusion equal opportunities target involves qualitative quantitative meas urements follows structured path methodology used define based internal analysis benchmarking main peers ensure constant comparison industry best practices finally third target foster belonging focuses strengthening welfare engagement initiatives improve well sense belonging ployees target setting methodology included internal analysis benchmarking main peers ensuring data driven comparative approach ensure results group uses specific kpis updated annually monitored periodic checks details activities underlying targets examined depth section salvatore ferragamo annual report december characteristics undertaking employees since foundation group considered attention people priority guaranteeing management based principles fairness integrity spect every stage value chain group commitment translates professional development resources attraction new talent promotion work life balance guaranteeing compliance occupational health safety standards salvatore ferragamo group recruited employees employee turnover employees leaving company offering stable long lasting employment relationship con sidered necessary promote business growth also help increase sense belonging group people high proportion permanent employees accounting approximately total evidence group commitment sense employees permanent contracts female male reported total italy china usa japan korea mexico australia france spain countries total number employees tables related disclosure requirement includes group employees december disclosed head count china includes employees ferragamo fashion trading shangai ltd ferragamo moda shanghai ltd ferragamo hong kong ltd ferragamo retail ltd ferragamo retail macau ltd ferragamo retail taiwan limited board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december female male reported total female male reported total total employees permanent employees temporary employees non guaranteed hours employees number employees number employees left number new employees hired turnover rate new hires turnover rate employees left characteristics non employee workers undertaking workforce group non employee workers including interns external consultants agency staff self employed hired group primary activities total number non employee workers self employed people workers provided undertakings primarily engaged employment activities number employees tables related disclosure requirement includes group employees december disclosed head count salvatore ferragamo annual report december diversity metrics strengthened global diversity equity inclusion longing dei strategy updating approving company policy board directors level step demonstrates concrete commitment inte grate principles dei business strategy promote organ izational culture based listening open dialog promotion individual uniqueness strategy based three pillars ensuring fairness main stages corporate life recruitment exiting company disseminating behavior example set leadership team organizational culture based value inclusion adopting control governance systems corporate regional level aimed facilitating evaluation monitoring actions initiatives internal external communication social engagement tools continue key elements amplifying impact initiatives related three pillars special attention paid use inclusive language official internal communi cations adoption schwa among activities dedicated women empowerment focus stoppable women format inspired wanda ferragamo two colleagues shared personal professional stories numerous initiatives launched strengthened line company inclusion diversity strat egy among significant achievements update group wide inclusion policy provides clear common framework regions diversity statement also included global job postings promote inclusiveness selection phase onwards monitoring adjusted gen der pay gap enhanced advanced business intelligence system detailed analysis concrete actions reduce gap italy gap analysis according uni pdr initiated dei kpi dashboard dated new indicators gender age seniority metrics global framework strengthened creation support employee resource groups ergs encouraging listening sharing ideas diversity ergs promoted international women day initiatives first engagement survey also launched focus diversity inclu sion providing strategic data future actions far partnerships concerned collaboration valore renewed allowing young talents managers participate mentorship women leadership programs time new collaboration established female quotient expand training initiatives corporate regional levels special focus women lead ership gender equality additional details please refer section diversity equity inclusion belonging strategy board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december group commitment issue non discrimina tion also realized involvement ethics committee matters fact ethics committee charged handling cases discrimination may reported following report received whistleblowing channel conducting thorough investigation found report well founded ethics commit tee informed company incident pro ceeded make formal complaints reported parties implement monitoring actions aimed avoiding recurrence conduct concerning employees belonging protected categories group complies applicable laws countries years years years total female male reported female male female male female male reported total top management middle management white collars blue collars total percentage top management middle management white collars blue collars total gender age male female total total managers white collars blue collars total operates special emphasis placed also providing equal opportunities ensuring work conditions male female employees promoting initiatives help balance family professional life dif ferent types employment agreements additional details please refer section top management number percentage female male total top management category includes following positions directors senior directors chief head functions executive roles salvatore ferragamo annual report december female male total blue collars white collars middle management top management breakdown workforce professional category gender board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december adequate wages group guarantees employees receive adequate salary accord ance applicable reference parameters countries operates particular company verified salary paid december equal greater adequate wage accordance pro visions wageindicator framework commitment translates fair remuneration policy meets regulatory market standards ensures eco nomic conditions meet criteria fairness sustainability social protection group committed ensuring compliance social protection standards providing coverage key events working life illness unemployment work related injuries parental leave retirement group companies fully comply social security requirements set local laws ensuring regulatory compliance countries group operates policies regarding parental leave adopted globally line local quirements terms pension schemes employees covered statuto systems company programs exception regions protections apply uniformly ployees companies argentina brazil particular unemployment guaranteed moment employee leaves undertaking north america guaranteed protection loss income due illness guaranteed pension coverage noted regulatory framework social protection systems north america differ regions may result differences coverage specific categories seasonal temporary trainee workers however group committed ensuring key protections work related injuries unemployment applied consistently across companies providing reliable safety net employees order monitor harmonize social protection policies respecting local regulations cultural differences employees receive adequate salary term north america includes usa canada salvatore ferragamo annual report december persons disabilities global recruitment policy updated global level aim ensuring selection processes inclusive embrace diversity multiple dimensions achieve goal training activities planned glob ally employees tasked talent acquisition activities far italian perimeter concerned partnership planned association promotes inclusion people disabilities launch recruitment cam paign inclusion resources internships accompanying training work path persons disabilities number persons total employees male female total training skills development metrics view promoting growth people company activ ities train develop talents project design talent management system global level continued part ferragamo excellence model parent company identifies new key skills divided core skills managerial skills enhanced employee core skills key employees enable achieve high levels performance quality well promptly address issues problems arise working teams exploring new ideas solutions top middle managers group identified addi tional skills aimed understanding elements crucial creation corporate value improving competitiveness time inspiring enthusiasm passion work excellence people throughout salvatore ferragamo implemented series initia tives focused increasing level attention awareness compliance lated issues dedicated training courses primarily covered topics anti corruption whistleblowing protection rights risks related violation rights third parties assignment relevant digi tal learning modules induction phase new hires followed global awareness campaigns group also launched cybersecurity personal data protection train ing campaign mandatory new employees particular starting group introduced multi year cybersecurity awareness program proofpoint platform aimed raising employee awareness recognize suspicious situations providing clear guidance process fol ferragamo excellence model board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december low case potential threats program customized different categories users including targeted anti phishing campaigns program expanded include security design classroom courses personnel special attention paid system administrators strengthen security design phase enterprise systems moreover enterprise artificial intelligence pro ject launched aim verifying compli ance act developing strategic road map ensure effective governance responsible manage ment risks related artificial intelligence pro ject involves definition guidelines policies ethical use implementation adequate governance model planning governance model development operating procedures crea tion training courses support adoption genai course delivery made seamless thanks use platform ilearn corporate retail staff ferragamo enhanced flame train ing program strategic focus conversion rate customer experience optimization aim make client advisors store managers aware role sales process provide concrete tools turn every interaction customer conversion opportunity without compromising service excellence context synch introduced innovative pro gram designed identify refine key behaviors positively impact conversion rates ensuring exclusive sophisticated boutique experience program divided two different processes client advisor focus sales skills particular phasis ability converse customer derstand needs handle objections confident guide purchasing process store manager focus strategic coaching tools observe analyze help team maximize con versions constant feedback situational leadership time nex new employee experience launched structured onboarding program signed guide new hires first months company course takes weeks depending store combines self training ilearn regular meetings relevant superior program includes approximately digital learning modules covering fundamental topics brand awareness product service excellence compliance retail operations touch base scheduled store manager every days monitor progress provide support support development managers instore monitoring program continued monthly person alized coaching sessions store managers boutiques worldwide program dual jective strengthen leadership skills improve sales performance store observation role playing best practice sharing collaboration merchandising team train ing content seasonal collections enhanced engaging storytelling approach narrative elements introduced highlight brand creative inspirations craftsmanship values along synthetic intuitive materials facilitate learning make training dynamic interactive tools videos infographics quizzes included salvatore ferragamo annual report december finally training courses developed support special projects handbag mto made order focus customization tools guide customer creation unique product silver collection depth look characteristics silver collection focusing design symbolic value positioning secret watch training communicate innovation exclusivity sophisticated watch thanks interventions ferragamo strengthened synergy boutique teams fostering continuous learning environment improves customer experience consolidates brand position luxury sector part training initiatives sustainability team collaboration human resources team launched sustainability pills program six digital modules engage employees macro topics sustainability company sustainable strategy circularity hackathon please refer section first program provided specialized partner made available corporate ilearn platform extended regions moreover workshop organized external partner strengthen internal culture around biodiversity gather concrete insights integrate biodiversity company strategy new talent management principles processes defined global level assess capabilities growth potential talent coher ent structured effective way plan development within group ensuring long term sustainability organization implementation process saw definition global level key elements part talent assessment process new calendar dates dedicated discussing performance development common coherent evaluation scale talent review matrix model principles models individual development plan new process aims strengthen individual team performance pro mote organizational culture development feedback create succession plans key positions contribute culture responsibility differ ent levels development career paths group completed design people manager program global development program office retail people managers initia tive created enhance management leadership skills provide concrete tools effective team management promote culture growth devel opment within organization program features interactive practical approach combines training mentoring experiential activities ensure tangible impact management skills ability meet challenges constantly evolving environment support initiative first train people manager program board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december trainer program launched enabled train ing internal trainers corporate emea eas peer peer learning model allows knowledge shared widely helping consolidate coherent managerial culture strengthen engagement retention internal talent program rollout start first groups emea italy scheduled february march ensure effective global expansion new edition train trainer program internal trainers regions already planned beginning abling homogeneous widespread implementation managerial development path looking future people manager program represent strategic pil lar development leadership skills direct impact growth teams improvement company performance global level renewal supplementary agreement national collective labor agreement envisaged among things extension performance assess ment process employees levels within organization order increase engagement make everyone feel part corporate goals results management objectives review carried regularly every year based three salvatore ferragamo distinctive skills initiative results orientation customer orientation outcome assessment makes possible fur ther increase value bonus individual recognizing individual performance addition work continued consolidation per formance assessment programs retail sector particular continuous feedback process managers employees continued use company retail performance management system known bright designed stimulate dis cussion support development internal growth opportunities retail personnel system also used calculate annual nuses eligible individuals typically store managers specifically bright allows managers teams inter act structured way turning review moment opportunity ongoing discussion three feed back moments scheduled throughout year tool designed give receive feedback regular basis improving quality communication managers employ ees monitor individual progress identify areas devel opment opportunities growth enhance merit recognition supporting skill performance based approach salvatore ferragamo annual report december terms incentives champion league program also confirmed aimed top performers reward incentivize contributed individual performance achievement business objectives finally talent review process extended managerial positions corporate retail areas strengthening career development fact ployees received performance review employees performance assessed top management performance assessed employees performance review number employees subject performance reviews number performance reviews number employees percentage employees subject performance reviews top management middle management white collar blue collar total number performance reviews number employees percentage employees subject performance reviews management white collar blue collar total previous report include breakdown top middle management therefore figure show breakdown board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december number employees subject performance reviews number performance reviews number employees percentage employees subject performance reviews female male reported total number performance reviews number employees percentage employees subject performance reviews female male reported total number training hours average training hours female male reported total female male reported total top management middle management white collar blue collar total average training hours female male reported total management white collar blue collar total previous report include breakdown top middle management therefore figure show breakdown salvatore ferragamo annual report december uomini donne employees participated performance reviews broken gender top management middle management white collar blue collar employees participated performance reviews broken professional category top management ore totali middle management ore totali white collar ore totali blue collar ore totali training hours broken professional category gender board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december health safety metrics protecting safeguarding human resources takes form guaranteeing high occupational health safety standards reason group makes available human practical economic resources assets needed achieve improvement goals field occupational health safety integral part activity strategic commitment corporate level salvatore ferragamo dedicated global health safety energy environmental efficiency hse function responsible ensuring safe regulatory compliant working environment team responsible defining updating sharing management system guidelines hse energy italian scope sharing foreign offices guidelines drawn aim disseminating throughout whole group significant level awareness health security environmental protection increased energy efficiency standards principles establish roles responsibilities main regional stakeholders involved priorities intervention compliance area europe supporting colleagues region defining needs dedicated tools economic resources project launched foreign regions involved identification local hse contacts creation register applicable hse laws country completion self assessment questionnaire local contact subsequent drafting gap analysis project continued implementation action plan identified basis gap analyses carried country lastly hse team manages monitoring reporting activities italy maintaining relations italian workers safety representatives italy company implementing years safety management system sms defines methods identifying within company iso iso certification international standard occupational health safety ohs management demonstrating organization commitment protecting health safety process includes identifying assessing risks hazards defining action plans measurable objectives integrating measures emergency management additionally requires continuous monitoring progress risk reduction pre vention well regular internal inspections verify compliance improve system organizational structure responsibilities procedures processes resources implementing company prevention policy compliance current health safety regulations aim occupational health safety management system ensure compliance applicable legal requirements aim possible achieving improved safety standards reduce eliminate work related injuries ill health cases improve risk management promote continuous effective communication company workers specific operational methods document sharing information training awareness raising activities improve monitoring level control residual risk order minimize continuous improvement actions addition specific risk assessment completed several stores emea region illustrates possible risks health safety employees aim complete risk assessment matrix describing level severity damage probability danger since salvatore ferragamo decided undertake process certifying management system according internationally recognized iso standard sets requirements implementing occupational health safety management system also group successfully passed annual audit maintain certification valid salvatore ferragamo workers salvatore ferragamo annual report december regard company italian business operations following audit process salvatore ferragamo confirmed obtainment social responsibility certification main social certification standard based universal declaration human rights ilo conventions international human rights laws national labor laws standard encourages organizations develop maintain implement practices include respect human workers rights protection child exploitation guarantees occupational health safety although group carry activities pose high risk health safety taken steps italy throughout world ensure highest standards occupational safety identifying assessing possible emergencies may occur activities various offices order ensure impacts occupational health safety damage facilities properly identified addressed italy identification assessment risks related occupational health safety part risk assessment document rad document drawn employer collaboration health safety officer hso checked occupational health specialist ohs brought attention workers safety representatives wsr order highlight seriousness probability occurrence specific risk events individual role activity carried employees furthermore order ensure greater monitoring level occupational health safety italy control audit activities carried periodically group stores relation potential accidents emergency situations salvatore ferragamo drawn management procedure preparing responding emergencies order describe operational procedures implemented prevent manage accidents best possible way reduce risk injuries resulting situations prevention mitigation health safety impacts foreign regions primarily consists medical checks conducted annually constant line communication human resources operations functions possible managed specific controls efforts monitor employee injury rates continued year cases injuries among employees less injuries occurred among external collaborators none injuries occurred resulted loss life line far health safety concerned employees benefit training programs tailored role profiles risk levels receive general occupational safety training line legal requirements fall higher risk category employees warehouses modelleria manovia logistics departments etc additional training hours provided use specific machinery equipment guarantee highest safety standards board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december awareness campaign corporate safety well launched hse team aimed employees italy continued consolidated using new communication methods employees continued explore safety interactive fun activities salvatore ferragamo also strengthened awareness information initiatives suppliers contractors external visitors actively involving management reduction health safety risks workplace end specific documents prepared identification assessment control risks arising activities third parties company interference risks globally group continues ensure employees trained accordance local regulations commitment safety well took form workshops meetings dedicated mental physical well focus stress management promotion healthy habits particular hse day may attended around employees characterized various free activities included two workshops relationship diet health accompanied individual nutrition counseling sessions bioelectrical impedance analysis sessions measure body composition save life first aid workshop anti choking bls techniques moreover cardiology campaign called listen heart promoted resting ecgs promote prevention cardiovascular well employees non employee workers percentage workers covered health safety management system number deaths due work related injuries ill health number recordable work related injuries rate recordable work related injuries employees non employee workers number recordable cases work related ill health number days lost due work related injuries fatalities due work related injuries hse day employees salvatore ferragamo annual report december remuneration metrics pay gap total remuneration salvatore ferragamo adopts remuneration policies geared towards recognizing individual contribution people business results according principles equality equal opportunity merit ensure competitiveness market years group implementing remuneration system differentiated various professional categories also includes economic incentives contingent individual company performance goals aimed promoting sense belonging teamwork group adopts collective bargaining agreements employees countries operates agreements together laws force also regulate remuneration well minimum notice periods significant operational changes available group offers employment contracts accordance current local regulations force date several evaluation systems implemented bright system used evaluating individual performance retail store staff short term incentive system dedicated chief executive officer top management wide staff base local systems productivity bonus italy profit sharing systems additional details please refer section esrs gov promote diversity inclusion within company salvatore ferragamo created dashboard managers various regions monitor compliance gender pay gap dashboard cross references average salaries banding specific role key tool calculation adjusted pay gap represents precursory activity salary reviews order reduce gap identified equal work adjusted figure previously reported made available company remuneration report additional details please refer section order develop merit reviews consistent various markets group promotes acquisition remuneration databases beneficial understanding positioning respect local market defining realignment interventions regards weight role held taking account yearly performance retail level employees granted incentives linked store individual performance case managers depending location annual bonus based series kpis achieved called bright finalization performance bonus indicators training provided heads offices operational departments aimed improving meetings resources relation evaluation business skills goal training promote culture feedback levels achieve balanced distribution assessments giving greater recognition best performing resources respect indicators contribute definition performance bonus one focused participation safety training achieved majority employees demonstrating strong commitment issue part addition employee registry updated include data family dependents making possible take advantage tax breaks according current legislation force lower taxation recipients fringe benefits use shopping vouchers groceries fuel etc entitled receive corporate welfare board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december basic salary ratio male female parent company europe north america central south america asia pacific japan total top management middle management white collar blue collar total total remuneration ratio male female parent company europe north america central south america asia pacific japan total top management middle management white collar blue collar total ratio highest annual direct remuneration median value values based average salaries paid recalculated using purchasing power parity ppp rate imf world economic outlook remuneration data restated using purchasing power parity ppp rate imf world economic outlook annual direct remuneration report takes consideration gross annual remuneration annual variable bonus sti restricted shares non monetary benefits figure consider benefits kind restricted shares ceo therefore extraordinary non comparable elements remuneration taken account example long term plans component cash equity whose fair value shown share based payments section chief executive officer group key personnel assigned first cycle performance restricted shares plan salvatore ferragamo annual report december incidents complaints severe human rights impacts salvatore ferragamo recognizes importance protecting human rights within organization throughout supply chain actively committed preventing form violation including instances discrimination harassment ensure safe fair respectful work environment group applies rigorous whistleblowing policy provides safe channel employees external stakeholders report violations respecting confidentiality protection whistleblowers details regarding policy found section group also adopted modern slavery statement aimed ensuring prevention form modern slavery forced labor human trafficking within company supply chain required modern slavery act section california transparency supply chains act australian modern slavery act canadian fighting forced labour child labour supply chains act information please refer document published ferragamo group website line principles responsibility transparency group constantly monitors work related incidents cases serious impact human rights cases work related incidents serious impacts human rights within workforce case group also committed actively opposing form discrimination based gender race ethnic origin nationality religion personal beliefs disability age sexual orientation factor promoting corporate culture based inclusion respect fundamental rights board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december workers value chain sbm material impacts risks opportunities interaction strategy business model double materiality process group identi fied following impacts related workers value chain inadequate working conditions wages along supply chain negative impacts particular workers employed manufacturers con tract group violations human rights along value chain example right freedom association collec tive bargaining child labor forced compulsory labor insufficient measures prevent discrimination vio lence along value chain non compliance applicable laws regulations voluntary social governance codes along supply chain impacts result company strat egy inherent sector salvatore fer ragamo operates identifying impacts makes easier adjust company strategy address negative externalities associated operations risks identified area refer human rights olations forced compulsory labor along value chain due unethical practices business partners salvatore ferragamo considered employees suppliers business partners process identifying impacts risks opportunities workers value chain definition impacts risks opportunities limit elements specific categories workers however explicit refer ences vulnerable workers generalized impacts forced child labor impacts result individual incidents relat potential violations relevant category workers related work value chain upstream company example involved extraction metals minerals collec tion raw materials refining manufacturing forms processing downstream company example involved logistics distributors affiliates retailers geographical areas goods considered explicitly mentioned impact assessment however group recognizes luxury fashion sector could face issues related raw materials used well cultivation breeding non regions lack adequate regula tions protection workers specific activities undertaken identi workers certain characteristics working certain contexts performing certain activities may exposed risks however salvatore ferragamo conducts periodic audits verify cases occur type worker policies related value chain workers salvatore ferragamo signatory united nations global compact world largest strategic corporate citizenship initiative provides universal language social responsibility helps organizations operate responsibly make strategic choices advance internationally shared social goals joining global compact companies pledge uphold conventions international labor organization ilo fight forced child labor addition policies already listed section esrs policies related workforce group supplier code conduct establishes ethical principles rules behavior suppliers promoting transparency respect human rights environmental protection code includes provisions business ethics child labor non discrimination health safety environmental management suppliers must sign acceptance form comply established rules group reserves right monitor manage non compliance violations reported group ethics committee ensures effective monitoring compliance established rules salvatore ferragamo annual report december group also implemented additional policies prevent violations policy child labor example aims formalize salvatore ferragamo commitment combating child labor line sustainability policy prevent minors exposed situations risky harmful development health includes verifying age time hire monitoring supply chain taking corrective action child labor found policy applies salvatore ferragamo premises italy including offices stores addressed employees representatives members corporate bodies collaborators operate name behalf company also applies stakeholders sections specifically dedicated director human resources supported relevant business functions responsible application policy refers various international national conventions regulations including universal declaration human rights convention rights child ilo conventions directive constitution italian republic national collective labor agreement standard policy approved board directors salvatore ferragamo dissemination recipients website encouraged parent company also obtained certification international standard attests group commitment corporate social responsibility standard includes specific requirements eliminate use child labor forced compulsory labor thereby strengthening existing internal control monitoring system group also published responsible sourcing commitment policy designed support highest ethical environmental social standards promote responsible purchasing practices throughout value chain additional details please refer section support commitments group also adopted modern slavery statement describes measures taken prevent form modern slavery forced labor human trafficking within operations supply chain document complies regulations various states united kingdom modern slavery act california transparency supply chains act australia modern slavery act canada fighting forced labour child labour supply chains act demonstrating group commitment high ethical standards international level processes engaging value chain workers impacts group constantly monitors risks related olation labor regulations particular attention supply chain procurement model ensure high eth ical sustainable development standards assessment made risks respect human rights child labor forced compulsory labor non discrimination free dom association collective bargaining occupational health safety working time remuneration regular ity working conditions applied disciplinary practices group requires direct suppliers tier exceed first level subcontracting tier directly manages product development industrialization phases including selection processes quality safety controls throughout production process fact direct supplier qualification process focuses technical evaluation verification documentation compliance various standards assess whether supplier able meet group requirements terms quality capacity financial stability adherence ethical principles compliance behavioral standards relevant regulations streamline supplier qualification process group uses ferragamo link tool manage information documents suppliers platform makes easier register new suppliers promotes positive relationships within supply chain direct suppliers also required sign package documents includes addition supplier code conduct general terms conditions purchase animal welfare policy group restricted substances list rsl technical performance requirements depending board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december collaboration supply chain considered essen tial achieving high ethical standards sustainable business development reason group con tinues promote awareness raising monitoring itiatives throughout production chain ensure procurement model appropriate line values operational responsibility ensuring monitor ing awareness raising auditing activities effec tive consistent company objectives entrusted operations function reports chief operating officer moreover data collection activity launched group direct suppliers terms social data data related energy water consumption well traceability raw materials itiative aims collect detailed information con sumption energy water chemical substances well social indicators order deepen knowl edge impact supply chain collection information relating origin raw materials used group suppliers involved directly specialized data collection companies specific training courses organized illustrate use dedicated platforms ensure correct filling information required activities include annual involvement suppliers contribute data collec tion monitoring activities continuous sure constant control compliance standards area activity suppliers also required sign agreements guaranteeing brand protection compliance provide list subcontractors group risk assessment analysis potential human rights violations confirmed negligible profile part direct service providers production processes diversified level risk part subcontrac tors particular stages processing finished product potentially characterized higher risk profiles group focuses monitoring prevention processes mitigate risks throughout supply chain order monitor compliance ethical social standards characterizing supply chain group carries regular audits direct suppliers sub suppliers assessing actual compliance principles set code conduct end risk based approach used prioritize audits based criteria consider level potential risk audits interviews conducted workers management site inspections con ducted ensure compliance required standards event non compliance suppliers required implement necessary actions prevent mitigate resolve identified issues within agreed time frames event serious repeated violations code event lack collaboration failure implement improvement plans group reserves right terminate business relationship suppliers involved management process entrusted sustainability function operates direction chief transformation sustainability officer ensuring continuous alignment group strategic sustainability goals supplier engagement leather traceability group strategic tanneries actively involved traceability project aimed identifying country origin main leathers purchased data collected dedicated platform sup pliers required declare supply chain steps starting delivery notes order country animals raised additionally tanneries underwent audits verify accuracy reliability data provided audits positive outcomes full cooperation supply chain confirmed high level maturity issue salvatore ferragamo annual report december processes remediate negative impacts channels value chain workers raise concerns monitoring compliance supplier code conduct carried according main ethical social audit standards support specialized company includes desktop audits site inspections suppliers production sites activities group also verifies supplier code conduct distributed ployees supplier companies ensuring principles rules conduct effectively communicated throughout supply chain workers aware existence dedicated struc tures processes report receive support critical issues needs based results audits carried case non compliance provisions code addressees obliged implement actions required adjust activities operations order remove prevent mitigate identified non compliance plan envisages specific actions implemented within agreed deadlines suggestions improvement activities activity monitored follow ups suppliers ensure effective implementation requirements necessary ensure compliance event serious repeated violations code failure implement agreed remediation plan failure cooperate monitoring activities group reserves right terminate business relations suppliers involved group encourages suppliers communicate requests information interpretations adoption code conduct set specific channels sending reports alleged ascertained violations provisions reports addressed group ethics committee responsible carrying necessary investigations verify validity promote corrective action deemed necessary information reporting channels provided please refer section strengthen whistleblower protection web platform managed external company specialized internal reporting systems adopted solution ensures reports cannot traced protects data allows access members ethics committee end group adopted published website whistleblowing policy describes detail measures taken ensure protection whistleblowers prevent retaliation adverse treatment additional details please refer section esrs board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december taking action material impacts value chain workers approaches managing material risks pursuing material opportunities related value chain workers effectiveness actions effective implementation corrective actions monitored follow activities conducted site remotely verify agreed upon times methods followed addition reported sections audits carried direct suppliers sub suppliers non conformities found also followed site remotely verify resolution significant critical issues emerged related compliance standards provided applicable regulations health safety hygiene workplace lesser extent environmental integrity issues compliance labor conditions contracts cases significant repeated violations code subcontractors led requests terminate business relations direct suppliers reports complaints received reference issues related human rights violations supplier code conduct case critical issues identified present real potential risks related respect human rights child labor forced labor freedom association collective bargaining recognizing importance carefully monitoring production chain group commit continuing increasing activity ensuring responsible management supply chain compliance current regulations force year previous years salvatore ferragamo implemented various measures improve supply chain management ensure integration sustainability principles throughout production cycle include directly engaging supply chain collecting primary data impactful materials used collecting esg data mentioned previous sections details please refer section actions resources related resource use circular economy finally salvatore ferragamo developed esg vendor rating system integrate sustainability criteria supplier assessment system takes account environmental social governance esg variables provides comprehensive assessment suppliers sustainability performance dedicated checklist developed implemented standardize evaluation process ensure suppliers aligned group strategic objectives actions represent important step towards strengthening governance sustainability supply chain line salvatore ferragamo commitment responsible transparent management resources allocated activities please refer sections esrs actions resources related resource use circular economy actions resources relation climate change policies audit salvatore ferragamo annual report december targets related managing material negative impacts advancing positive impacts managing material risks opportunities objective outlined section esrs sbm strategy business model value chain related workers value chain follows esg building block target timing leading responsible value chain foster value chain transparency promote collaboration business partners develop shared esg projects target set group integral part sustainability plan baseline approved board directors december constitutes fundamental guide group sustainability initiatives highlighting strong alignment united nations sustainable development goals sdgs european esg standards among main commitments intention improve transparency along supply chain encouraging collaborations suppliers development shared esg initiatives targets cover entire value chain particular focus upstream procurement activities considered key area reducing environmental social impacts reference period achieving targets extends annual updates checks monitor progress ensure deadlines met plan includes targeted actions including increase supplier audits traceability raw materials structured collection esg data direct indirect suppliers essential tools support transition sustainable responsible production practices target developed based materiality analysis conducted group involving direct indirect suppliers also strategic stakeholders process enabled accurately identify priorities along supply chain structure targets effectively address stakeholder expectations group sustainability commitments ensure results group uses specific kpis updated annually monitored periodic checks affected communities sbm material impacts risks opportunities interaction strategy business model double materiality process group identified specific impact related communities local area local development support contributions donations associations area group present identifying impact reflects founding values salvatore ferragamo group strong bond local area culture community promoted growing awareness need genuine substantial commitment protect places group operates people work main communities reference salvatore ferragamo city florence surrounding area however company limit supporting local communities could direct impact extends commitment globally activities positive impact communities outlined sustainability policy mentions group social responsibility activities salvatore ferragamo committed charitable initiatives support italian culture around world health women children vulnerable populations group adopts governance approach aimed effective coordination activities international level providing guidelines group branches making donations contributions various kinds charities foundations non profit organizations board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december among significant opportunities salvatore ferragamo resulting impacts communities following aspect identified opportunities improve reputation targeted social responsibility initiatives community focused interventions specific activities undertaken identify ways particular affected communities living particular contexts engaging particular activities may exposed risks however salvatore ferragamo specifies initiatives aimed vulnerable categories particular women children cultural enrichment society identifying relevant risks opportunities salvatore ferragamo establish direct link specific groups affected communities however company focuses communities greatest presence taking account context operates impact activities areas policies related affected communities salvatore ferragamo adopts series policies aimed maintaining highest ethical standards promoting sustainable business development suring proper management relevant impacts affected communities associated risks opportunities among policies adopted group developed aforementioned sustainability policy includes commitment improve well communities operates particular group committed projects initiatives target women children vulnerable populations promote social inclusion support local economies improve overall quality life working ngos local governments organizations promotes positive social impact contributes sustainable development goals group also sponsors numerous cultural events art exhibitions cinema music fashion promote italy creative industries also reflect group commitment cultural enrichment society also code ethics already mentioned sec tion esrs policies related workforce group inclination towards social responsibility empha sized part policy salvatore ferragamo committed promoting economic civil develop ment communities operates taking account needs promoting collective well accordance ethical sustainable values similarly supplier code conduct specifies group commitment social responsibility economic civil development areas operates taking account needs community context protection made italy fundamental principle group particular reference safeguarding italian artisan creative culture recipients required fight counterfeiting guarantee legitimate use made italy label products committing contribute economic social prosperity local communities group encourages recipients maintain cooperative fair transparent relationships communities contribute employment areas operate group suppliers responsible ensuring comply code disseminating requiring compliance employees suppliers external collaborators third parties part group supply chain mentioned policies available download section ferragamo sustainability group website order guarantee accessibility wide range audiences fully stand implications regard human rights company implement number specific policies protect promote principles compliance values required promoted internal relations relations third parties code ethics sustainability policy salvatore ferragamo emphasizes group strong com mitment respect human rights accordance international national regulations united nations guiding principles business man rights ilo declaration fundamental principles rights work group actively poses forms child labor forced labor discrim ination based characteristics age gender race nationality religion sexual orientation political affiliation salvatore ferragamo annual report december violations code ethics result company taking action depend sever ity violation taken within limits current regulatory framework group also adopted anti child labor policy aims formalize commitment area line sustainability policy content prevent children exposed situations may risky harmful development phys ical mental health inside outside work place policy intended group premises italy including offices stores addressed internal parties including employees representatives members corporate bodies collaborators act name behalf salvatore ferraga also applies stakeholders mentioned sections specifically dedicated policy combat child labor approved board direc tors promotes dissemination recipients latter also available ferragamo group sus tainability website case policy drawn cordance fundamental principles relating children rights minimum age work rec ognized conventions regulations force national international level presence age workers child labor detected company take prompt corrective action involving social services competent authorities necessary finally founded deep rooted values family community group defined adopted charity policy make several donations charity initiatives promoting italy culture across world well health women children purpose policy provide guidelines group subsidiaries making donations contributions various kinds charities foundations non profit organizations process strengthens governance introduces structured approval process ensure better coordination charitable initiatives worldwide processes engaging affected communities impacts group actively engaged involving affected communities series initiatives various areas promote integration sustainability stakeholder dialog one key elements commitment work universities schools business schools build direct bridge academic professional worlds group organized employer branding initiatives company visits career days field projects workshops lessons prestigious universities bocconi university essec università cattolica luiss iulm important fashion schools polimoda accademia costume moda marangoni italy also europe events given hundreds students recent graduates opportunity connect company professional ecosystem board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december time group actively collaborates numerous charitable organizations support socially relevant causes including meyer ethical fashion initiative corri vita trisomia many others order make concrete contribution well communities combine philanthropic commitment creation positive lasting impact fashion sector group enthusiastically participates collective associations fashion pact national chamber italian fashion global compact strengthening active role round tables topics sustainability innovation aim sharing best practices developing joint solutions face global challenges sector addition activities group stands support arts culture contributing donations strategic partnerships internationally renowned institutions among support fondazione palazzo strozzi stands organization excellence italian international artistic musical scene finally ferragamo museum ferragamo foundation two fundamental pillars group promotes culture art creativity transmitting brand essential values strengthening deep lasting bond local global communities institutions embody salvatore ferragamo commitment preserving enhancing cultural heritage serving meeting place tradition innovation social participation particular preserve pass company culture history respecting brand identity serving place remembrance constant evolution strengthening sense belonging brand time spread corporate culture area communities operate collaborating institutions schools universities associations cultural organizations training growth young people intend work world fashion design highest artistic forms italian craftsmanship museum foundation continued expand program activities consolidating collaborations developing new innovative initiatives workshops conferences educational projects activities coordinated ferragamo chair office ferragamo museum ferragamo foundation sustainability team reports chief transformation sustainability officer team reports chief people officer taking action material impacts affected communities approaches managing material risks pursuing material opportunities related affected communities effectiveness actions universities schools collaboration top schools luxury sector eight field projects launched including partnership accademia costume moda master leathergoods program combines valuable practical experience high level professional studies guided brief creative team ferragamo international students seven months develop capsule collection men leather accessories scratch inspired ferragamo vision world luxury visit museum historical archives students presented innovative collections creative merchandising product teams collaboration mafed master fashion experience design management sda bocconi licensing department launched business case study brand extension strategy home interiors business final project presented international students palazzo spini feroni event attended heads main corporate departments collaboration polimoda part master shoe design sole partner important initiative promote young talent took place headquarters participating students developed series capsule collections men footwear demonstrating creativity innovation competence knowledge materials ferragamo prototyping team selected one design collection transformed concrete prototypes bringing students ideas life salvatore ferragamo annual report december final projects presented ferragamo design product merchandising teams provided valuable feedback helped strengthen participants technical creative skills future challenges brand also selected polimoda partner master sustainable fashion ten polimoda students around world led design expert matteo ward met sustainability team lesson esg strategy accompanied museum management discover founder innovative use materials next months students develop strategic projects ferragamo brand results presented special event salvatore ferragamo collaborated istituto marangoni two academic projects aimed supporting future talent luxury sector first project continue aimed international students postgraduate master course fashion luxury brand management fashion buying merchandising involved participants strategic product launch proposals based careful benchmarking analysis key competitors luxury industry second project dedicated third year students fashion business course paris campus included visit flagship store avenue montaigne participants interacted brand management gained practical knowledge luxury brand operates third consecutive year company confirmed participation adopt school project promoted altagamma aim bringing young people florence area closer trades revolving around leather goods sector order raise awareness professional opportunities offered made italy project carried collaboration cellini tornabuoni institute florence involved students edition students followed training course dedicated world leather goods ended one month internship december award ceremony third edition wanda ferragamo scholarship held florence palazzo spini feroni chair leonardo ferragamo members ferragamo family attendance wanda ferragamo long believed investing young people providing opportunities grow challenge fundamental value passed company nurture culture board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december promote research knowledge development group decided establish wanda ferragamo scholarship program awards children group employees scholarships worth support studies development future professional career connection community group pays particular attention communities operates supporting vulnerable communities cultural creative industries projects impact society local economic growth community well health scientific research line commitment protecting health women children important five year collaboration project launched meyer foundation meyer children hospital florence outstanding center pediatric research treatment collaboration meyer foundation initial acquisition mass spectrometer essential research activities newborn screening laboratory study new diagnostic markers rare diseases allowed date treatment newborns umbria tuscany subsequent substantial investment clinical development pediatric cardiology arrival high end echocardiograph updating mri allowed perform hundreds exams year improving quality images orthopedic department meyer children hospital also equipped state art machine capable performing high resolution scans complex orthopedic surgeries instrumentation combines functions used operations per year crown results salvatore ferragamo together bank italy supported purchase neurosurgical operating microscope allow one hundred children treated every year sophisticated next generation device used diagnose retinopathy prematurity serious condition affects retina premature infants lead blindness instrument also essential diagnosis follow important pediatric eye diseases tumors retinoblastoma hereditary eye diseases salvatore ferragamo annual report december moreover occasion centennial celebrations careggi hospital patients began march ended december ties scarves blue light blue white matching new careggi hospital website personalized special label donated reception staff new edition corri vita held florence fundraising event aimed contributing creation update florence based public health facilities specializing treatment breast cancer psychological support physical social rehabilitation prevention training palliative care event raised saw involvement whole region routes diversified degree difficulty cultural destinations scattered throughout city surroundings salvatore ferragamo main sponsor event donating approximately shirts board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december salvatore ferragamo supported played host numerous groups company space italy fundraising initiatives including fàedèsfa onlus association helps children rare genetic disorders aism italian multiple sclerosis society airc foundation cancer research italy att tuscan association cancer united states many health related charities raise funds medical research patient support among important initiatives supported group italian american cancer foundation breast cancer research foundation dedicated fight cancer research patient support american heart association dedicated prevention treatment cardiovascular disease arts culture link art always integral part brand dna time company strengthened commitment promotion protection artistic cultural heritage also salvatore ferragamo contributed supporting expenses realization new music auditorium teatro del maggio musicale fiorentino organization operas concerts part edition festival contribution benefits art bonus made support italy public cultural heritage moreover every year group contributed supporting exhibition activities palazzo strozzi foundation florence partner committee since inception exhibitions held thanks group funding anselm kiefer fallen angels drift shy society helen frankenthaler painting without rules moreover three year support program istituto statale del poggio imperiale florence came end program included conservative restoration interiors furnishings salone delle feste five interiors united states arts culture also promoted support ballet theater institutions contribute dissemination appreciation artistic expression among significant initiatives nevada ballet theatre received funds support dance training new talent dallas theater center benefited donations continue providing quality performances educational programs community support also provided statue liberty ellis island foundation dedicated preservation enhancement ellis island museum moving image preserves celebrates history cinema visual media palazzo strozzi foundation salvatore ferragamo annual report december professional training development support professional development goes hand hand training years salvatore ferragamo maintained constant commitment stimulating various communities especially young people women educational professional level past three years group working ethical fashion initiative efi program international trade centre itc united nations agency dedicated strengthening artisan cotton supply chain west africa employs primarily female artisan communities collaboration ethical fashion initiative efi goal long term partnership includes support european union oacps business friendly program build west africa first cotton dyeing plant ouagadougou burkina faso factory operational strengthen production capacity artisans mainly women dyeing textile production marketing faso dan fani traditional cotton fabric burkina faso group donation made efi european partner manusa italian social cooperative employs women migrants asylum seekers various nationalities mainly african belonging vulnerable groups manusa supports cabes gie commerce artisanat pour bien être social groupement intérêt économique social enterprise created efi brings together production companies artisans mostly women burkina faso specialized artisanal production hand woven faso dan fani addition manusa production interior decoration items cotton fabrics produced cabes main services made possible group donation supply machinery imported italy textile engineering consultancy additional equipment new square meter textile dyeing plant plant produce approximately tons dyed yarn per year create approximately direct indirect jobs weavers dyed yarn retailers biomass collectors transporters operators textile technicians engineers among others italy activities scuola scienze aziendali tecnologie industriali piero baldesi facilitates entry students start ups world work funded united states support education also included philanthropic initiatives promote learning growth opportunities diverse communities among main organizations supported bayganda foundation stands commitment education youth development providing resources training programs students difficult situations important contribution also made dress success helps women enter world work training career support programs fragile minority communities funds saved printing paper christmas cards year donated artemisia anti violence association present throughout italy founded florence dedicated combating violence women children adolescents promoting protecting rights support used promote individual freedom women children vouchers food medicine medical check ups sports courses guarantee home support autonomy individual rebirth every year digital greeting card made available group employees send greetings suppliers customers friends family press board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december also christmas season proceeds sale tickets charity raffle held italian headquarters offered prizes christmas gifts received customers suppliers made possible raise amount doubled support salvatore ferragamo donated full trisomia association association group working time dedicated support integration people syndrome united states community protection support promoted initiatives aimed ensuring inclusion safety well significant example lesbian gay bisexual transgender community center new york received support continue work providing resources services safe spaces lgbtq community programs psychological support education health care cultural initiatives organization helps strengthen rights well lgbtq people promotes inclusive environment unicef also received significant support continue educational activities children ensuring access education improving school conditions human rights incidents involving affected communities ferragamo museum foundation ferragamo museum ferragamo foundation work closely together preserve promote historical cultural heritage ferragamo brand time promoting cultural educational social sustainable projects favor wide diverse audience located heart florence ferragamo museum dedicated telling story founder salvatore ferragamo art innovation themed exhibitions activities highlight link tradition craftsmanship innovation among important exhibition projects recent years exhibition women balance ended salvatore ferragamo retrospective extended due great success exhibition traces ferragamo pioneering contribution shoemaker stars celebrates anniversary first store hollywood highlights pivotal role evolution italian design museum also deeply committed promoting educational inclusive activities every year collaborates local international schools universities cultural institutions evidenced series conferences organized school years students participated topics role women society biography salvatore ferragamo time museum organizes activities families children guided tours events like national family day museum educational program chiavi della città promoted municipality florence allowed hundreds children discover history values brand interactive educational materials ferragamo museum salvatore ferragamo annual report december museum also started collaboration impara arte con punto tavarnelle academy celebrating historical link lacemakers tavarnelle val pesa activities guided tours screenings lending archival shoes terms inclusivity museum strengthened commitment collaborating italian organization deaf ens organizing guided tours italian sign language lis visually impaired blind visitors initiative inaugurated november xxiii settimana della cultura impresa event museum also promotes sustainability core value first green business museum italy iso certification hosting exhibition sustainable thinking explores link fashion sustainability currently museum continues digitalize exhibitions archives making available online platforms google arts culture time ferragamo foundation focuses educational training social initiatives particular attention younger generations supports wide ranging projects highlight link creativity sustainability corporate culture foundation organizes guided tours company archive production department students employees designers enthusiasts offering direct immersion history values salvatore ferragamo collaboration museimpresa liuc heritage hub participates ministerial project pcto scuola impresa aims teach italian high school students importance business heritage strategic role business archives museums context foundation offers training courses include development digital content social media campaigns promotional items raise young people awareness importance link tradition innovation foundation also partner prestigious international talent support one important international competitions dedicated young talent fashion design accessories fondazione ferragamo award created prize dedicated footwear category offering winning designer contribution support creative journey edition also includes exclusive workshop held stefania ricci director museum focusing application ferragamo heritage contemporary design foundation also dedicated digitalizing cataloging company heritage including historical materials footwear catalogs advertising campaigns process enriched restoration projects massive importation historical items makes heritage accessible global audience enhancing educational resource ferragamo foundation board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december salvatore ferragamo annual report december main expenses incurred implementation measures reported section shown table activity capex opex value distributed communities targets related managing material negative impacts advancing positive impacts managing material risks opportunities objective outlined section esrs sbm strategy business model value chain related affected communities follows esg building block target timing creating value global communities strengthen positive social impact local communities around globe objective strengthening positive impact communities integral part sustainability plan approved board directors december aligned united nations sustainable development goals sdgs european esg standards target qualitative nature aims strengthen group positive social impact local communities around world target covers group direct activities involvement local communities operates without geographical limitation baseline application period extends line sustainability plan progress monitored activities described paragraph methodology used define goal based analysis local community needs existing social initiatives using social impact metrics qualitative evaluation tools although goal directly based specific scientific data structured basis international best practices reference standards field sustainable development target setting process involved various stakeholders including local communities government agencies ngos business representatives consultations design initiatives entity specific kpi made italy process double materiality assessment group identified impact cannot associated esrs topics sub topics included brand experience topic promotion made italy products italian craftsmanship creativity direct indirect benefits positioning italian industry textile footwear sector world positive impact felt across board specifically supply chain also communities operates business relationship italian artisans one cornerstones business strategy aims promote made italy products direct support suppliers indirect support positive impact artisans passing know well communities operate amount integral part item operating costs income statement consolidated financial statements salvatore fer ragamo board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december following methodology used calculate metric presented geographical position local suppliers considered clus tered italian region defining total expenditure allocated clusters total compared total processing category determine percentage expenditure allocated region processing category order increase contribution group identified metric related proportion spending local suppliers allows highlight network commercial relationships tuscany italy group built years group relies procurement structure high level technical preparation works historic companies established ongoing collaboration context group strong link territory remains evident approximately supplier turnover generated italian suppliers context tuscan contract manufacturers accounted turnover finished product processing campanian contract manufacturers accounted remaining part allocated italian regions suppliers italian salvatore ferragamo annual report december geographical breakdown italian contract manufacturers sector small leather goods jewelery bijoux footwear bags suitecase accessorie clothing piedmont campania foreign countries sicily abruzzo emilia romagna umbria lazio friuli venezia giulia tuscany lombardy marche veneto apulia company total geographical distribution manufacturers sector company total fabric leather components accessories italy korea switzerland usa portugal france turkey japan germany mexico great britain india austria spain board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december continuity collaboration workers sector clothing accessorie footwear bags suitcases jewelry bijoux small leather goods total company years years years continuity collaboration suppliers sector clothing accessorie footwear bags suitcases jewelry bijoux small leather goods total company years years years salvatore ferragamo annual report december respect contract manufacturers group works exclusively highly specialized manufacturing companies meet demanding quality standards selection retention external contract manufacturers key brand mainly purposes maintaining world class quality standards products well protecting ferragamo extensive know developed many years approximately contract manufacturers worked salvatore ferragamo years including bag suitcase manufacturers accessory manufacturers retention external workshops traditionally guaranteed ongoing partnerships frequent exchange information skills group contract manufacturers highly specialized products production processes involved integration supported system connects main workshops group allows share progress production logistic processes check whether raw materials contract manufacturers stock effectively plan production stages well procurement raw materials components addition signing trademark protection agreement group bans external workshops selling brand products third parties workers years collaboration board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december consumers end users sbm material impacts risks opportunities interaction strategy business model double materiality process group identified following impacts related consumers end users full customer satisfaction terms product quality shopping experience communication campaign line needs characteristics markets group operates negative impacts customers end users caused misleading communication incorrect labeling impacts especially positive ones consequence group business strategy rather fulcrum company strategy aimed satisfying customers high quality garments services supporting made italy craftsmanship distinguish country throughout world following risks identified reputational damage due negative behavior brand ambassadors influencers negative kol feedback spreading fake news access products product non conformity causes damage health satisfaction customers inefficient esg brand communications compliance cyber risk data breach provisions identified risks years group implemented measures prevent situations occurring operations provided appropriate training personnel responsible controls also defined descriptions individual potential negative impacts reported group assessed categories consumers end users potentially impacted company activities defined reporting standard consumers end users need accurate accessible information products manuals product labels avoid potentially harmful use product category considered relevant due risks common fashion luxury sector similarly significant impacts generalized sector group belongs undertakes numerous activities communicate transparently issues terms positive impacts referring categories considered salvatore ferragamo aims offer unmistakable product quality guaranteeing customer satisfaction also product feedback aim continuous improvement identified risks affect consumers end users without restrictions commercially relevant terms non compliance applicable regulations sense group legal function ensures cases occur minimized policies related consumers end users policies implemented favor consumers end users intended guarantee quality products information group makes available outside world sense responsible communication marketing policy salvatore ferragamo committed ensuring transparency honesty responsibility fairness communications actively involving stakeholders improve communication sustainability aims minimize environmental impact promote sustainability avoiding deceptive practices greenwashing monitoring process includes internal verification statements continuous training employees policy available ferragamo sustainability website applies corporate bodies employees anyone acting name behalf group including internal stakeholders employees suppliers shareholders external stakeholders customers ngos government agencies board directors salvatore ferragamo responsible approving policy policy refers national international regulations including european union agreements european green deal directives corporate sustainability salvatore ferragamo annual report december salvatore ferragamo line international best practices full compliance applicable regulations established reporting system aimed preventing combating unlawful conduct conduct contrary principles rules set forth organizational models code ethics company policies maintaining confidentiality whistleblowers protected parties protecting risk possible retaliation full compliance applicable legal provisions group also adopted comprehensive set policies procedures ensure protection consumer supplier confidentiality online offline group implemented data protection guidelines raise awareness among employees collaborators importance correct management personal data consumers suppliers constitute company assets well provide recommendations guidance subject guidelines apply processing personal data carried group course business activities regardless whether processing carried paper automated tools group also prepared various information notices processing personal data differentiated according purpose processing developed aim managing personal data lawful transparent fair manner promoting fundamental principles legality correctness transparency purpose limitation data minimization accuracy integrity confidentiality also respect internationally recognized principles established united nations global compact oecd guidelines special attention paid providing clear accessible understandable information meet accessibility needs people disabilities group makes policies available public publishing official website offices stores group adopted specific data breach procedure address security breaches could inadvertently unlawfully result unauthorized access destruction loss alteration disclosure personal data transmitted stored otherwise processed behalf group thereby compromising security integrity availability personal data group regularly conducts privacy analyses risk assessments subject moreover group adopted specific procedure manage requests data subjects regarding exercise rights regulation european parliament council april protection natural persons regard processing personal data free movement data repealing directive general data protection regulation responsibility implementation guidelines policies procedures processing personal data attributed data controller salvatore ferragamo companies ferragamo group group also appointed data protection officer dpo plays central role implementation policies procedures relating processing personal data monitors compliance applicable regulations defining policies group took consideration interests needs main stakeholders including consumers suppliers employees instances non compliance united nations guiding principles business human rights oecd guidelines multinational enterprises relation consumers end users reported board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december processes engaging consumers end users impacts salvatore ferragamo adopts structured centralized approach involve consumers end users impact management ensuring transparency compliance privacy regulations engagement framework developed global customer experience implemented locally regional teams designed interact customers prospects agreed contacted process organized three levels personalized interactions conducted preferred client advisors clientiamo clienteling application according customer preferred methods targeted activities local global events many communication campaigns digital platforms sfmc frequency type engagement centrally planned implemented across digital physical touchpoints ensuring consistency continuity customer experience activities managed global customer experience division works regional teams supervision senior management ensure results engagement drive business decisions effectiveness initiatives monitored pre defined kpis dashboards regular analyses particular focus retention acquisition programs nps voice customers project provides depth insight satisfaction purchasing behavior allowing headquarters team share best practices regions develop targeted strategies ensure inclusivity salvatore ferragamo adopts rigorous approach data management compliance privacy regulations specifically analyzes perspectives vulnerable marginalized consumers order minimize negative impacts groups regard data protection group guarantees individuals right access rectification cancella tion personal data well right oppose pro cessing data also guarantees right request limitation processing personal data consumers suppliers receive personal data provided salvatore ferragamo structured commonly used machine readable format processing personal data based consent given data subjects right revoke consent freely without harm accord ing methods indicated information document provided methods revocation based principles simplicity transparency therefore impeded way company processes remediate negative impacts channels consumers end users raise concerns salvatore ferragamo adopted structured formalized system manage negative material impact caused contributed company regard consumers end users ensuring timely transparent complaint management process report received official channels global email address customercare ferragamo com dedicated phone numbers available country region immediately submitted quality department department responsible analyzing nature problem necessary conducting depth testing determine appropriate solutions based results obtained customer care responsible informing customer progress subsequent interventions communication channels available several languages published every product page contact section ferragamo website guarantee easy access global support consum ers effectiveness mechanisms moni tored monthly analyses examine vol ume complaints reasons channels used geographical distribution allowing continu ous improvement processes providing stra tegic information internal stakeholders although currently specific policy place protect possible retaliation ferragamo guarantees business model minimizes risks ensures safe transparent operating environment focused consumer trust salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december ensure maximum customer understanding sat isfaction every situation group committed make sales staff capable conveying cus tomer focus passion craftsmanship quality characterized salvatore ferragamo regard retail training program focuses importance customer relationship store man agers sales assistants training cornerstone retail strategy directly linked customer perience order enable experience ferrag amo emotions continuity actions already undertaken group devel oped clienteling customer listening communica tion tools reporting kpis monitoring customer evolution particular focus customer care service associated live chat phone orders net promoter system heartbeat close loop completion road map clienteling application clientiamo primary channel use emailing campaigns strategic tactical cross channel communication tool company also worked migrating sales force platform consolidating contact plan focus ing localizations engagement dormant inactive contacts line corporate rebrand ing client retention client acquisition formats implemented also create opportunities dialog listening customers projects clientiamo clienteling app facili tates personalized interaction sales staff customers heartbeat net promoter score sys tem dedicated understanding customer needs aim increasing customer satisfaction continued adoption clientiamo group promoted digital adoption data collection data enrich ment dual version paper digital form made possible satisfy markets compliance local regulations preferences individu customer ferragamo digitization tools experiences always accompanied highly human centric approach guaranteed quali relationship brand answer increase awareness raising performance heart beat project launched stores worldwide expanded opportunities store teams entire organization listen customers platform given store managers brick mortar chain customer care ecommerce cases opportunity implement timely actions resolve critical situations understand behaviors generate satisfaction greater awareness level satisfaction generated experience fered evolution project also made pos sible investigate reasons behind customers visits store satisfaction dissatisfaction related non purchase products remaining touch customers future needs introduc tion text analytics possible analyze sen timent expressed additional customer comments also highlighting topics trending certain times year live chat service made possible support conversion ecommerce contacts salvatore ferragamo annual report december sales expanded inclusion two websites project japan australia salvatore ferragamo store always one main points contact communicate experience brand product engaging experience post covid era greater emphasis given activities focus exclusivity person experience brand experience fer ragamo places pampering opportunities gifting plan consistent collection rele vant customer moments however line new strategy client experience tools formats partly kept digitized allow customer use remotely taking action material impacts consumers end users approaches managing material risks pursuing material opportunities related consumers end users effectiveness actions since early days company salvatore ferragamo always strived guarantee artisanal excellence creations offering customers rewarding shopping experience group continues pursue several initiatives aimed listening communicating customers well customer satisfaction adopting customer centric strategy allows anticipating needs existing potential customers order create long term value throughout group implemented series actions improve consumer end user experience prevent mitigate negative impacts main initiatives include development new client retention client acquisition formats line rebranding strengthen customer loyalty attract new customers emphasis placed creating exclusive immersive experiences ferragamo places program store online events moments pampering gifting plan products available store increasing value perceived customer sense exclusivity improve service quality address critical issues customer satisfaction monitoring enhanced net promoter system voice customers active stores worldwide tool allowed gather direct feedback implement timely corrective actions close loop process ensuring effective response reported issues program also developed acquire new customers multiple touchpoints including local enablers third party collaborations media partners landlords support personalization experience mto exotics program men women bags launched active stores different regions offering customized service reinforces exclusivity brand time road map clienteling application clientiamo completed enabling direct personalized interaction customers improving customer engagement engaging dormant contacts digitalization data collection data enrichment also enabled depth analysis purchasing behavior customer preferences optimize communication strategies terms communications group strengthened email campaign strategy migrating salesforce platform improve campaign segmentation targeting new customer journeys introduced reduce churn rate reactivate inactive customers improve onboarding new consumers customer reporting aligned rebranding objective allows continuous monitoring evolution customer base effectiveness actions taken experiences offered integrated online activities live streaming brand experience showroom allowed customers different geographical areas participate exclusive events time store initiatives strengthened ensure consistency new brand identity immersive activations exclusive presentations new products ferragamo secret precious five selected cities milan paris nyc mexico city tokyo board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december ensure effectiveness actions clear kpis defined including overall satisfaction osat net promoter score nps recorded positive results osat equal stable compared nps points compared figures demonstrate success strategies improve customer experience strengthen customer loyalty theme sustainability also developed sustainability ferragamo com website hosts group social environmental sustainability initiatives commitments future accompanying public journey tradition innovation discover brand sustainable culture experience website made inclusive global thanks optimization website devices availability languages digital initiatives also involved social media use fosters customer engagement ensures comprehensive brand experience several digital initiatives launched major platforms instagram facebook twitter pinterest youtube weibo wechat line tiktok focus strengthening brand product identity creativity diversity site updated reviewed throughout align brand strategic positioning sustainability communications years group implemented series online offline anti counterfeiting measures protect customers value brands thus improving whole anti counterfeiting system part initiatives promoted favor customers group uses authenticity tag system protects consumer purchases genuine made italy ferragamo product preventing limiting counterfeiting traceability project consists implementation adoption nfc near field communication solution uniquely identify ferragamo products nfc radio frequency technology based chip stores data antenna capable transmitting solicited reader using radio waves combination chip antenna called tag radio signals sent rfid tag read popular smartphones equipped nfc reader tag embedded product end manufacturing process activated following quality control check cannot counterfeited based unique identifier certified assigned manufacturer anyone smartphone nfc technology read tag provides link official ferragamo website ferragamo com industry insiders also access application reads data stored tag serial number manufacturer number collection product part extensions application authenticity label assessed aim also conveying information relating sustainability product final customer group also working expand information disclosure customers providing details origin raw materials sustainability products nps salvatore ferragamo annual report december goal ensure transparency accurate information consumers anticipating requirements digital product passport human rights incidents involving consumers main expenses incurred implementation measures shown table activity capex opex consumer transparency targets related managing material negative impacts advancing positive impacts managing material risks opportunities objective outlined section esrs sbm strategy business model value chain related consumers end users follows esg building block target timing creating value global communities enhance customer information awareness engagement ferragamo esg actions objective closely linked sustainability policy responsible communication marketing policy line group commitment promote transparent effective communication final customers target part group broader sustainability strategy particular focus corporate social responsibility consumer education sustainability target qualitative nature baseline set time horizon extending line sustainability plan among intermediate objectives specific activities planned strengthen clear transparent communication esg issues provide consumers understandable valuable information well initiatives actively engage stakeholders dedicated events retail online channels amplify impact group esg social strategy detailed information ongoing activities related target included previous paragraph scope target covers company business activities including physical retail network commerce globally consistent esg communication initiatives focus creating informative content immersive customer experiences responsible marketing strategies group uses customer insight feedback analysis tools including systems monitoring consumers perception brand esg issues although target qualitative engagement awareness strategies evaluated specific kpis net promoter score nps esg initiatives level interaction participation stakeholders events communications updates measurement metrics data collection tools evaluated defined time horizon ensure effective measurement impact activities implemented amount integral part item intangible assets finite useful life statement financial position consolidated financial statements salvatore ferragamo board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december governance information salvatore ferragamo annual report december responsible lobbying policy public group website functions risk corruption must undergo dedicated training program compliance digital pathway launched payments aligned standard terms board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december salvatore ferragamo annual report december business conduct policies corporate culture group always committed promoting corporate culture based ethics legality reason adopted anti corruption policy regard measures taken combat corruption bribery aim minimizing risk behaviors attributed corruption group carries activities various countries jurisdictions therefore subject compliance italian law laws countries operates including ratifying international conventions prohibiting corruption public officials corruption private sector organization economic operation development convention combating bribery foreign public officials international business transactions united nations convention corruption foreign corrupt practices act fcpa enacted united states bribery act enacted united kingdom policy applies corporate bodies employees representatives collaborators salvatore ferragamo establishes business relationships relations whatever reason regardless nature contractual relationship act name behalf group companies group also adopted group whistleblowing policy already discussed depth section relating workforce full reference made legal compliance function responsible supervising implementation dissemination policy similar responsibility assigned individuals placed top company area ensure complied work within function regard training policy conduct companies within organization training program called compliance digital pathway implemented described detail section also includes training organization management control model adopted pursuant italian legislative decree adopted company board directors hereinafter referred model adoption model includes information training program recipients aimed ensuring knowledge application effectiveness rules avoiding administrative responsibility ignorance business rules dissemination model organized differentiated according category recipients based following principles communication employees via company intranet updates informative content publication information company website iii organization regular training sessions main recipients model promotion information activities employees consultants third parties according appropriate methods business functions identified exposed risk corruption bribery identified within model identifies information flows supervisory body broken area process risk crime including cases corruption functions identified risk corruption bribery within group include various strategic areas involved sensitive processes particular group administration finance control department includes areas group planning control tax management risk management group finance corporate emea administration consolidated financial statements indirect purchasing exposed potential risks related financial tax management group general counsel department corporate affairs compliance business contracts litigation contracts region emea business contracts involved management contracts legal relations also logistics department includes logistics operations warehouse custom compliance customs integrated supply chain business conduct board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december department customer service involved management procurement transportation customs group human resources department particularly compensation benefit payroll admin areas involved due responsibility sensitive remuneration management processes marketing communication department public relations communication chair staff department internal control function internal audit exposed risks perform control functions finally individuals responsible safety compliance area including occupational health safety officer health safety officer rspp responsabile del servizio prevenzione protezione occupational health specialist environmental officer aforementioned whistleblowing policy drawn accordance italian legislative decree march concerning implementation directive european parliament council october protection persons report breaches union law containing provisions protection persons report breaches national regulations addition group adopted responsible lobbying policy sets principles guidelines clear transparent lobbying aim representing group legitimate requests positions interests institutions accordance principles transparency integrity taking due account oecd guidelines multinational enterprises responsible business conduct applicable regulations particular group carries activities trade industry associations member countries operates organization monitors legislative regulatory developments national international level participates public consultations working groups transparent accountable manner duly trained company departments responsible activities general counsel department transformation sustainability department marketing communication department may involve dedicated company functions based regulations discussed policy applies cases employees collaborators group regardless type contractual relationship published ferragamo group website formalize commitment animal welfare group adopted specific animal welfare policy order guarantee whole supply chain acts appropriately terms animal welfare policy defines minimum requirements certifications standards collaborations strategies preferred sources supply order ensure animal welfare relation following categories materials fine leather exotic species wild species killed natural environment ovine including goats sheep bovine adult bovines calf salvatore ferragamo also requires raw materials animal origin come countries adequate level control treatment practices used animal species suppliers therefore required provide name characteristics species supplied particular country origin group requires suppliers operate compliance convention international trade endangered species wild fauna flora cites sourcing species listed cites appendices therefore recipients policy group suppliers raw materials finished products animal origin suppliers responsible ensuring compliance policy well disseminating requiring compliance employees suppliers external collaborators parties group supply chain finally group supplier code conduct additional details please refer section esrs management relationships suppliers salvatore ferragamo payment procedure standard terms category supplier exception must approved head department concerned cfo financial director selecting suppliers essential carry technical evaluation raw materials semi finished finished products obtain documentation production facilities possible verification visits guarantee salvatore ferragamo annual report december quality products group follows selection process evaluates technical qualitative economic financial requirements well certifications necessary start collaboration new partners must accept supplier code conduct requires suppliers comply social criteria related human rights occupational health safety conditions working hours remuneration also required meet environmental criteria energy waste management environmental protection partners also required accept privacy policy requirements including signing animal welfare policy suppliers animal products moreover dedicated platform implemented manage flow information documents suppliers optimizing strengthening supply chain qualification process prevention detection corruption bribery one group core values business ethics conveys message loyalty fairness respect applies entire group point reference social context operates reason salvatore ferragamo considers measures prevent corrupt practices integral part group social responsibility order protect organization stakeholders context salvatore ferragamo accordance code ethics inspired best practices regarding anti corruption compliance programs international standard iso defined policy order minimize risk engaging conduct could considered corrupt particular salvatore ferragamo decided implement maintain anti corruption management system integrated overall risk management control system group subject includes following components anti corruption policy approved organization top management analysis assessment risk committing acts corruption principles rules behavior procedures protect areas sensitive acts corruption information training activities recipients anti corruption policy operating procedures defining roles responsibilities reporting process disciplinary system violations board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december periodic monitoring risks corruption effectiveness adequacy policy moreover indicated section company adopted organizational model pursuant italian legislative decree order ensure prevention crimes provided said decree including crimes corruption supervisory body appointed company board directors body responsible supervising functioning compliance model promoting constant updating autonomous powers initiative control group established ethics committee empowered receive handle reports violations law including incidents corruption bribery information separation committee members management chain involved matter please refer previous responses regarding management reports received regard salvatore ferragamo ethics committee provides least year summary information reports handled bod chief executive officer control risks committee board statutory auditors company supervisory body anti corruption training high risk functions manager oadc workforce training coverage total hours total number people trained delivery method duration classroom training computer based training voluntary computer based training regard group foreign companies ethics committee provides least year summary information reports handled members relevant administrative control bodies group promotes communication anti corruption policy using appropriate methods dissemination recipients implementing specific training programs ensure effective knowledge policy compliance digital pathway launched please refer section description employees high risk roles must receive anti corruption training end employees high risk roles received anti corruption training training mandatory new hires within approximately ten twenty days joining company office personnel regulatory updates covers several basic topics include meaning corruption practical examples company policies apply group level procedures followed event suspicions findings details please refer table percentage shown refers group workforce including new hires yet attended anti corruption courses administrative management supervisory bodies salvatore ferragamo annual report december incidents corruption bribery incidents corruption bribery political influence lobbying activities group engages lobbying activities trade industry associations member countries operates disclosed esrs business conduct policies corporate culture organization monitors legislative regulatory developments national international level participates public consultations working groups transparent accountable manner duly trained company departments responsible activities general counsel department transformation sustainability department marketing communication department may involve dedicated company functions based regulations discussed since august salvatore ferragamo subscribed fashion pact coalition brings together leading fashion textile brands set strategic concrete targets reducing environmental impact important industry supported leading experts scientific research ecosystem preservation fashion pact set concrete targets focusing three areas climate implementation science based targets sbts achieve net zero greenhouse gas emission biodiversity protection key species preservation restoration critical natural ecosystems oceans reduction negative impacts fashion industry oceans eliminating problematic unnecessary plastics packaging throughout fashion pact collaboration several partners experts played active role aligning knowledge pact members ensuring set goals achieved end numerous activities webinars organized briefing documents shared salvatore ferragamo part fashion pact steering committee made selection ceos member brands order maintain open dialog company executives openly share ideas guidelines progress moreover since august company joined leather working group lwg non profit organization stakeholders tanning sector value chain work synergy order improve environmental management leather manufacturing industry main objective lwg provide maintain develop audit protocols aim verifying compliance environmental performance tanners around world promoting sustainable appropriate practices respect environment order implement universal principles sustainability support united nations goals december salvatore ferragamo joined united nations global compact world largest corporate sustainability initiative united nations global compact provides universal language social responsibility fashion pact steering committee member lwg member since board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december framework businesses sizes complexity location moreover initiative supports companies working responsibly making strategic decisions promote broader social goals year company takes part workshops webinars organized global compact order provide companies training support various areas salvatore ferragamo also participated drafting italian business decarbonization inclusive transition position paper aim paper solidify commitment italian companies participating united nations global compact issue decarbonization enhancing efforts made results recorded far support targets paris agreement european ambition achieve net zero emissions subject diversity equal opportunities since company joined valore first business association italy committed creating professional world free discrimination gender equality culture inclusion support growth organization since salvatore ferragamo member sustainability workgroup sponsored italian chamber fashion cnmi camera nazionale della moda italiana aims find italian way making fashion sustainable well encourage adoption responsible business models throughout fashion industry value chain company actively participated cnmi meetings organized italian brands taking part numerous sessions meetings events promoted course year company also adheres confindustria moda aim cooperating within framework sector regulations prevention reduction remediation negative impacts resulting business mind italy company also joined crea consortium ensure better compliance extended producer responsibility epr requirements textile waste disposal france citeo fashion consortia finally salvatore ferragamo participated monitor circular fashion multi stakeholder project promoted sda bocconi sustainability lab aims identify circularity key performance indicators kpis fashion industry highlight disseminate good business practices regard develop technical managerial scientific skills towards sustainable business models finally group always active member altagamma foundation since brought together companies high culture creative industries promote italian excellence uniqueness lifestyle throughout world altagamma companies operate fashion design jewelry food hospitality automotive yachts wellness sectors ferragamo group registered transparency register however required associations belongs duly registered group indirect contributions membership fees amount cnmi member since salvatore ferragamo annual report december salvatore ferragamo participated public consultation draft delegated decree implementation crsd drawn italy department treasury state general accounting department payment practices standard payment terms salvatore ferragamo follows days leases approximately total days contract manufacturing consulting days raw materials indirect purchases excluding consulting average time company takes pay invoice start contractual legal payment period days percentage payments meet standard terms smes average payment time calculation based payments salvatore ferragamo whole payments aligned standard terms board directors report consolidated financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december separate financial statements management statement sustainability reporting certification pursuant art ter paragraph consob regulation may subsequently amended supplemented undersigned marco gobbetti capacity ceo salvatore ferragamo pierre giorgio sallier tour capacity sustainability reporting manager salvatore ferragamo certify pursuant art bis paragraph ter italian legislative decree february sustainability reporting included consolidated board directors report operations prepared accordance reporting standards applied pursuant directive european parliament council june italian legislative decree september accordance specifications adopted pursuant article regulation european parliament council june florence march ceo marco gobbetti sustainability reporting manager pierre giorgio sallier tour certification accordance model provided consob consultation document dated december board directors report consolidated financial statements consolidated sustainability reporting general disclosures environmental information social information governance information report salvatore ferragamo annual report december separate financial statements sustainability statement kpmg revisione organizzazione contabile viale niccolò machiavelli firenze telefono email fmauditaly kpmg pec kpmgspa pec kpmg ancona bari bergamo bologna bolzano brescia catania como firenze genova lecce milano napoli novara padova palermo parma perugia pescara roma torino treviso trieste varese verona società per azioni capitale sociale euro registro imprese milano monza brianza lodi codice fiscale milano partita iva vat number sede legale via vittor pisani milano italia kpmg una società per azioni diritto italiano parte del network kpmg entità indipendenti affiliate kpmg international limited società diritto inglese independent auditors report translated english solely convenience international readers accordingly original italian version authoritative independent auditors limited assurance report consolidated sustainability statement pursuant article bis legislative decree january shareholders salvatore ferragamo conclusion pursuant article legislative decree september decree engaged perform limited assurance engagement consolidated sustainability statement salvatore ferragamo group group prepared accordance article decree presented specific section directors report consolidated sustainability statement based procedures performed nothing come attention causes believe group consolidated sustainability statement prepared material respects accordance reporting standards endorsed european commission pursuant directive european sustainability reporting standards esrs information presented disclosure pursuant article regulation section consolidated sustainability statement prepared material respects accordance article regulation june taxonomy regulation basis conclusion performed limited assurance engagement accordance standard sustainability assurance engagements ssae italia procedures performed limited assurance engagement vary nature timing less extent reasonable assurance engagement consequently level assurance obtained limited assurance engagement substantially lower assurance would obtained reasonable assurance engagement performed responsibilities standard described auditors responsibilities sustainability assurance engagement section report independent accordance ethics independence rules standards applicable italy sustainability assurance engagements salvatore ferragamo group independent auditors report december company applies international standard quality management isqm italia accordingly required design implement operate system quality management including policies procedures regarding compliance ethical requirements professional standards applicable legal regulatory requirements believe evidence acquired sufficient appropriate provide basis conclusion matters consolidated sustainability statement presents comparative information subjected assurance engagement responsibilities directors board statutory auditors collegio sindacale salvatore ferragamo parent consolidated sustainability statement directors responsible designing implementing procedures identify information included consolidated sustainability statement accordance esrs materiality assessment process description procedures iro description process identify assess material impacts risks opportunities section consolidated sustainability statement directors also responsible preparation consolidated sustainability statement accordance article decree contains information identified materiality assessment process including compliance esrs compliance information presented disclosure pursuant article regulation section article taxonomy regulation moreover directors responsible within terms established italian law designing implementing maintaining internal controls determine necessary enable preparation consolidated sustainability statement accordance article decree free material misstatement whether due fraud error also responsible selecting applying appropriate methods produce disclosures formulating assumptions estimates specific information sustainability matters reasonable circumstances collegio sindacale responsible overseeing within terms established italian law compliance decree provisions inherent limitations preparing consolidated sustainability statement purpose disclosing forward looking information accordance esrs directors required prepare information based assumptions described consolidated sustainability statement regarding future events group actions necessarily expected occur actual results likely different forecast sustainability information since anticipated events frequently occur expected variation could material disclosures provided group scope emissions subject inherent limitations scope scope emissions given lack availability relative precision information used determining qualitative quantitative scope emissions information value chain salvatore ferragamo group independent auditors report december auditors responsibilities sustainability assurance engagement objectives plan perform procedures order obtain limited assurance whether consolidated sustainability statement free material misstatement whether due fraud error issue assurance report includes conclusion misstatements arise fraud error considered material individually aggregate could reasonably expected influence decisions intended users taken basis consolidated sustainability statement part limited assurance engagement accordance ssae italia exercise professional judgement maintain professional scepticism throughout engagement responsibilities include considering risks identify disclosures material misstatement likely occur whether due fraud error designing performing procedures check disclosures material misstatement likely occur risk detecting material misstatement resulting fraud higher one resulting error fraud may involve collusion forgery intentional omissions misrepresentations override internal control directing supervising performing sustainability limited assurance engagement assuming full responsibility conclusion consolidated sustainability statement summary work performed limited assurance engagement involves carrying procedures obtain evidence basis conclusion procedures performed based professional judgement include inquiries primarily parent personnel responsible preparation information presented consolidated sustainability statement documental analyses recalculations evidence gathering procedures appropriate performed following main procedures gained understanding group business model strategies operating environment regard sustainability matters gained understanding process adopted group identify assess material sustainability related impacts risks opportunities iros based double materiality principle moreover basis information acquired evaluated emerging inconsistencies may indicate presence sustainability matters addressed group materiality assessment process specifically mostly inquiries observations inspections gained understanding group considered interests opinions stakeholders involved identified sustainability related iros assessing consistency knowledge group sector defined assessed material iros analysing qualitative quantitative materiality thresholds determined salvatore ferragamo group independent auditors report december gained understanding processes underlying generation recording management qualitative quantitative information disclosed consolidated sustainability statement including reporting boundary interviews discussions group personnel selected procedures documentation identified disclosures associated risk material misstatement whether due fraud error designed performed procedures based professional judgement respond identified risks material misstatement including information gathered group level reference qualitative information particular sustainability related policies actions objectives held inquiries performed limited procedures documentation reference quantitative information carried analytical procedures inspections observations recalculations sample basis information gathered subsidiary level visited ferragamo usa inc selected basis business contribution metrics consolidated sustainability statement visits held discussions group personnel acquired documentary evidence determination metrics gained understanding process adopted group determine taxonomy eligible economic activities whether aligned taxonomy regulation checked related disclosures presented consolidated sustainability statement checked consistency disclosures contained consolidated sustainability statement included group consolidated financial statements pursuant applicable financial reporting framework underlying accounting records management accounts checked compliance structure presentation disclosures included consolidated sustainability statement esrs obtained representation letter florence march kpmg signed original andrea rossi director audit salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting salvatore ferragamo annual report december consolidated financial statements december salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting salvatore ferragamo annual report december consolidated financial statements december financial statements consolidated statement financial position assets consolidated statement financial position liabilities shareholders equity consolidated income statement consolidated statement comprehensive income consolidated statement cash flows statement changes consolidated shareholders equity explanatory notes consolidated financial statements comments main statement financial position items assets shareholders equity liabilities comments main income statement items information disclosure pursuant article duodecies issuers regulation statement pursuant article bis italian legislative decree february consolidated law finance independent auditor report salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting financial statements consolidated statement financial position assets thousands euro notes december related parties december related parties non current assets property plant equipment investment property goodwill right use assets intangible assets finite useful life non current assets non current financial assets deferred tax assets total non current assets current assets inventories right return assets trade receivables tax receivables current assets current financial assets cash cash equivalents total current assets assets held sale total assets held sale total assets salvatore ferragamo annual report december consolidated statement financial position liabilities shareholders equity thousands euro notes december related parties december related parties shareholders equity group shareholders equity share capital reserves net profit loss group total group shareholders equity minority interests share capital reserves minority interests net profit loss minority interests total minority interests total shareholders equity non current liabilities provisions risks charges employee benefit liabilities non current liabilities non current lease liabilities deferred tax liabilities total non current liabilities current liabilities trade payables refund liabilities interest bearing loans borrowings tax payables current liabilities current lease liabilities current financial liabilities total current liabilities total liabilities total liabilities shareholders equity salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting consolidated income statement thousands euro notes related parties related parties revenues contracts customers rental income investment properties revenues cost goods sold gross profit style product development logistics costs sales distribution costs communication marketing costs general administrative costs operating costs income operating profit loss financial charges financial income profit loss taxes income taxes net profit loss period net profit loss group net profit loss minority interests euro notes basic earnings loss per share ordinary shares diluted earnings loss per share ordinary shares salvatore ferragamo annual report december consolidated statement comprehensive income thousands euro notes net profit loss period gains losses subsequently reclassified net profit loss period currency translation differences foreign operations net gain loss cash flow hedge tax consequences components subsequently reclassified net profit loss period total gains losses subsequently reclassified net profit loss period net taxes gains losses subsequently reclassified net profit loss period net gain loss recognition defined benefit plans employees tax consequences components subsequently reclassified net profit loss period total gains losses subsequently reclassified net profit loss period net taxes total gains losses net taxes continuing operations total comprehensive income period net taxes group minority interests salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting consolidated statement cash flows thousands euro notes related parties related parties net profit loss period adjustments reconcile net profit loss net cash used operating activities amortization depreciation write downs tangible intangible assets investment property right use assets income taxes provision employee benefit plans allocation use provision obsolete inventory losses provision bad debt losses gains disposal tangible intangible assets interest expense interest expense lease liabilities interest income non monetary items changes operating assets liabilities trade receivables inventories trade payables tax receivables payables employee benefits payments assets liabilities net income taxes paid interest expense interest expense lease liabilities paid interest income received net cash used operating activities cash flow investing activities purchase tangible assets purchase intangible assets proceeds sale tangible intangible assets net change current financial assets net cash used investing activities cash flow financing activities net change financial payables repayment lease liabilities dividends paid shareholders parent company purchase minority interests companies consolidated line line basis net cash used financing activities net increase decrease net cash cash equivalents opening net cash cash equivalents increase decrease cash cash equivalents effect exchange rate translation differences closing net cash cash equivalents salvatore ferragamo annual report december statement changes consolidated shareholders equity note thousands euro share capital treasury share reserve share capital contributions legal reserve extraordinary reserve cash flow hedge reserve translation reserve retained earnings reserves effect ias equity net profit loss period group shareholders equity minority interests total shareholders equity allocation results net profit loss period comprehensive income losses total comprehensive distribution dividends purchase min interests companies consolidated line line basis accounting options min interests stock grant reserve treasury share award note thousands euro share capital treasury share reserve share capital contributions legal reserve extraordinary reserve cash flow hedge reserve translation reserve retained earnings reserves effect ias equity net profit loss period group shareholders equity minority interests total shareholders equity allocation results net profit loss period comprehensive income losses total comprehensive income loss distribution dividends purchase min interests companies consolidated line line basis accounting options min interest stock grant reserve treasury share award salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting explanatory notes consolidated financial statements corporate information salvatore ferragamo incorporated italy registered office via tornabuoni florence joint stock company italian law structured according traditional management control model shareholders meeting board directors board statutory auditors company shares trad euronext milan organized operated borsa italiana salvatore ferragamo group one main players luxury sector dates back consolidated financial statements year ended december approved board direc tors salvatore ferragamo march salvatore ferragamo group active creation production sale luxury goods men women footwear leather goods apparel silk goods jewels accessories product range also includes fragranc eyewear watches manufactured license third parties group also active licensing salvatore ferragamo trademark real estate management salvatore ferragamo group present countries around world directly subsidiaries countries sells products primarily network salvatore ferragamo single brand stores either directly operated dos operated third parties well significant well established pres ence department stores multi brand specialty stores commerce channel details group main activities please refer directors report operations salvatore ferragamo annual report december management coordination pursuant article seq italian civil code salvatore ferragamo subject management coordination ferragamo finanziaria whose consolidated financial statements available registered office florence via tornabuoni compliance provisions article bis paragraph italian civil code key data finan cial statements holding company ferragamo finanziaria december given ferragamo finanziaria euro december december statement financial position assets fixed assets current assets accruals deferrals total assets liabilities shareholders equity shareholders equity share capital reserves profit loss year provisions risks charges payables accruals deferrals total liabilities shareholders equity income statement value production costs production difference value costs production financial income charges profit taxes income taxes year current deferred profit loss year basis presentation statement compliance ifrs consolidated financial statements salvatore ferragamo prepared compliance international financial reporting standards ifrs issued international accounting standards board iasb endorsed european union force reporting date explanatory notes consolidated finan cial statements supplemented additional information required consob public author salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting ity responsible regulating italian financial markets provisions issued implementation article italian legislative decree resolutions dated july communication dem dated july pursuant article issuers regulation document november applicable italian civil code term ifrs used herein includes international accounting standards ias still force well interpretations issued ifrs interpretation commit tee previously referred international financial reporting interpretations committee ifric standing interpretations committee sic contents structure consolidated financial statements functional currency euro amounts expressed thousands euro unless otherwise indicated consolidated statement financial position distinguishes current non current assets liabilities non current assets refer positive balances realized months include intangible tan gible financial assets well deferred tax assets current assets refer positive balances realized within months non current liabilities refer liabilities due months including financial payables provisions risks charges employee benefit liabilities well deferred tax liabilities current liabilities refer liabilities due within months including short term portion medium long term loans provisions risks charges employee benefit liabilities differently separate financial statements parent company salvatore ferragamo consoli dated income statement shown accordance classification costs function considered representative called presentation costs nature group allocates costs function using cost centers represent function cost structure chosen line internal reporting processes business operations breakdown costs nature included explanatory notes note breakdown nature income statement cost items statement cash flows prepared according indi rect method presented compliance ias breaking financial flows operating investing financing activities noted reference consob resolution july communication dem july significant transactions related parties disclosed financial statements order provide better disclosure comparative purposes consolidated financial statements show comparison consolidated state ment financial position december consolidated income statement accounting standards general notes consolidated financial statements prepared according historical cost principle except rivatives financial assets classified held sale recorded fair value going concern basis accounting standards adopted consolidated financial statements december adopted previous years exception international accounting standards newly adopted details please refer section changes international accounting standards salvatore ferragamo annual report december discretionary valuations significant accounting estimates preparation consolidated financial statements entailed use estimates assumptions determining assets liabilities assessing contingent assets liabilities using best available formation actual results might fully correspond estimates main estimated data refer provisions obsolete inventory raw materials accessories finished products since group products subject market trends changes fashion trends product inventories end season subject impairment specifically provision obsolete inventory finished products reflects management estimate expected impairment losses products collections previous seasons considering ability sell group various distribution channels assumption may vary across different geographic areas group operates based knowledge individual market characteristics concerning local ability absorb sales products previous seasons generally impairment assumptions involve percent ages impairment become greater older collections reflect decline selling prices secondary channels mainly outlets one hand hand decrease probability selling time goes percentage based statistical analysis change inventory age assessment consistency use percentages time case changes available information percentages reassessed adjusted needed provision obsolete raw materials reflects management estimates decline probability used based calculation slow moving raw materials impairment reversal impairment non current assets details please refer section impairment reversal impairment property plant equipment investment property intangible assets finite useful life right use assets goodwill provision bad debt relating wholesale sales linked solvency standing customers company well established consolidated relations group uses matrix calculate expected credit losses ecls trade receivables provisioning rates based days past due customer category grouped different segments present similar historical loss experiences instance geograph area product type customer type rating guarantees matrix initially based group historical served default rates group calibrates matrix adjust historical credit loss experience forward look ing information instance forecast economic conditions example country risk expected deteriorate next year lead increased number defaults country concerned historical default rates adjusted accordingly every reporting date group updates historical observed default rates ana lyzes changes forward looking estimates assessment correlation historical observed default rates forecast economic conditions ecls significant estimate amount ecls sensitive changes circumstances forecast economic conditions group historical credit loss experience forecast economic conditions may also representative customer actual default future details analysis credit risks please refer notes management financial risks ifrs trade receivables provisions risks charges specifically costs contractual commitment renovate leased properties future costs ongoing foreseeable disputes right return adjust revenues contracts customers envisaged contractual terms con ditions customary business practices selling goods group concluded expected value method appropriate estimate amount variable consideration sales goods rights return con sidering large number contracts similar characteristics useful life property plant equipment intangible assets finite useful life investment property well ensuring development costs meet recognition measurement requirements intangible assets employee benefits measured using actuarial assumptions main actuarial assumptions reference made note employee benefit liabilities employee benefits measured using actuarial assumptions main actuarial assumptions reference made note employee benefit liabilities salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting deferred tax assets recognized extent probable future taxable profits available temporary differences tax losses utilized regard group management estimates likely timing amount future taxable profit fair value financial instruments chief among derivative instruments group uses extensively hedge exchange rate risk details assumptions underlying measurement fair value reference made notes management financial risks ifrs financial instruments fair value meas urement fair value share based payments plans settled either cash shares parent company uses pro vide incentives group management details assumptions underlying measurement fair value reference made note share based payments risk defeat disputes involving group group recognizes liability facing legal disputes law suits believes probable require outflow financial resources reliable estimate made amount potential losses given uncertainty surrounding outcome proceedings hard reliably estimate outflow resources required settle therefore amount pro visions legal disputes may change result future developments outstanding proceedings group monitors status ongoing lawsuits proceedings consults legal advisors well legal experts moreover group assesses uncertain tax positions required recognizes liability reference ifrs group capacity lessee made significant accounting estimates reported lease term identification lease term significant issue form regulations business prac tices related property leases vary significantly one jurisdiction another assessing impact estimated lease term options renew lease end non cancellable period requires using sumptions ifrs interpretation committee clarified purposes identifying enforceable period lessee shall consider contractual moment parties may exercise right terminate contract without incurring penalties immaterial concept penalty interpreted strictly contrac tual sense shall rather viewed considering economics contract group considered conclusions identifying lease term defining lease term group considered whether either lessee lessor renewal termination options respectively renewal options exercisable parties agreement exist company considered whether significant economic disincentives refuse renewal request accordance paragraph ifrs options exercisable one two parties company considered paragraph ifrs applying considering specific facts circumstances well estimate whether reasonably certain option exercised resulted following annual leases automatically renewed except event termination group considered average term five years based historical analyses cases group exercise option considered lease term end second renewal term based historical evidence fact renewal beyond second term could considered reasonably certain lease commencement date group reassesses lease term upon occurrence significant event significant change circumstances within control group affects whether lessee rea sonably certain exercise option previously included determination lease term exercise option previously included determination lease term definition discount rate leases entered group contain implicit interest rate group calculated incremental borrowing rate ibr determine ibr use discount future lease payments group identified country portfolio leases similar characteristics determined relevant ibr interest rate risk free instrument country lease entered based different lease terms increased group credit spread salvatore ferragamo annual report december estimates assumptions made directors assistance company departments propriate independent experts periodically reviewed recognizing necessary impact change income statement period estimates assumptions differ actual circumstances impairment reversal impairment property plant equipment investment property intangible assets finite useful life right use assets goodwill group constantly monitors business assess whether indication non current assets may impaired including goodwill investment property intangible assets finite useful life including intangible assets progress tangible assets right use assets goodwill intangible assets progress tested impairment least year december often circumstances indicate carrying amount may subject impairment required ias reporting date group performs analysis identify indicators impairment impairment losses property plant equipment investment property right use assets intangible assets finite useful life goodwill preparing checklists identify presence external indicators general macroeconomic conditions industry market considerations market capitalization significant changes negative effect technological market economic regulatory environment entity operates market asset directed internal indicators significant changes negative effect entity extent way asset used expected used economic performance asset worse expected negative declining cash flows following analyses cgus showing impairment indicators tested impairment past impairment tests carried considering individual geographic areas group operates cgus cash gen erating units said areas usually coincide group individual legal entities except multiple legal entities group operate country neighboring territories markets shared homogeneous customer base useful note compared past retail hong kong cgu separated china cgu line new distribution model implemented group impairment loss goodwill determined measuring recoverable amount cash generating unit group cash generating units goodwill allocated indicators impairment exist carrying amount asset reduced recoverable amount higher fair value less costs sale value use recoverable amount determined individual asset unless asset generates incoming cash flows largely independent incoming cash flows oth assets groups assets case asset tested part cgu asset belongs calculation fair value less costs sale based data available relating sale transactions free independent parties involving similar assets observable market prices less extra costs relating disposal asset value use calculated based discounted cash flow models using pre tax discount rate reflects current market estimate cost money time specific risks asset value use present value future cash flows dcf discounted cash flow expected generated asset recoverable amount cgu estimated based value use using discounted cash flow dcf method considers ability generate cash flows fundamental element purpose measuring target cgu discounting basis appropriate discount rate salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting main assumptions determine recoverable amount given discount rate weighted average cost capital wacc estimated according formulation conditional extended capital asset pricing model capm cost equity cost debt estimated sum risk free rate country reference interest coverage ratio panel companies estimating beta debt equity ratio growth rate determined inflation rate expected prevail medium long term refer ence market terminal value determined using perpetuity model long term growth rate cash flows taken estimates made management represent best estimate made group economic conditions set plan period also taking account studies sector analysts flows include restructuring activities group current obligation significant future investments increase yield assets make cash generating unit valued recoverable amount dependent discount rate used discounted cash flow model also expected future incoming cash flows growth rate used purposes extrapolation plan forecasts cover maximum timeframe five years line provisions ias long term growth rate used estimate terminal value asset assumed equal rate inflation expected prevail medium long term main markets group operates published major databases available therefore according suggested doctrine growth rate thus defined represents growth rate company reasonably maintain indefinitely taking account maturity sector geographical markets group operates case difficult sustain growth economy whole long term recoverable amount dependent discount rate used discounted cash flow model also expected future incoming cash flows growth rate used purposes extrapolation impairment loss recognized recoverable amount lower carrying amount results valuations carried determine recoverable amount cgus tested impairment compared related carrying amount net carrying amount cgu including allocated goodwill higher recoverable amount impairment loss recognized difference two amounts cgu loss recognized following order reduction carrying amount goodwill allocated unit zeroed reduction refers cash generating unit group cash generating units goodwill allocated proportional reduction carrying amount unit assets excluding current assets already measured recoverable amount recognition impairment goodwill cannot reversed subsequent reporting periods noted part impairment process sensitivity analysis also carried aims evaluate results obtained even main cash flows wacc parameters growth rate change disclosure impairment based provisions impairment test procedure approved board directors january group analyzed presence impairment indicators impairment losses relation non current sets whether reasons led recognition impairment losses previous years longer exist group reported operating loss decline previous year adversely affected com plex market environment uncertainty surrounding demand luxury goods leads maintaining cautious stance regarding near term expectations salvatore ferragamo annual report december analysis identified signs weakness cgus performing expectations consequently tested impairment result impairment tests determined impairment loss million euro details please refer note impairment property plant equipment right use assets intangible assets finite useful life investment property document climate change impact assessment stated main risks uncertainties section directors report operations group con tinued process initiated implement climate change risk management framework initiative undertaken enhance group capacity identify potential financial impacts ensure effective management adaptation challenges posed climate change analyses provided assessment risk associ ated climate change focused main climate related exposures group relevant sites key business suppliers specifically analyses quantified short term financial impact extreme weather events terms lost turnover due business interruption property damage costs furthermore possible evolution exposure assets within scope analyses climate change medium long term studied analyzed depth according reference climate scenarios rcp ssc identifying significant deviations short term analyses years group strengthened proactive approach dynamics associated climate change several measures implemented mitigate potential exposure sustainable transition risks include group manages risks temporary business interruption due external events natural catastrophes taking insurance policies cover direct damage company assets related indirect losses due business interruption performance restricted shares plan approved shareholders meeting april reserved selected employees directors collaborators salvatore ferragamo companies belonging ferragamo group considered key pursuit sustainable success medium long term provides esg goals including related environmental sustainability tails please refer note share based payments consolidated financial statements workshop product circularity organized involved company young talents engaged rethinking selection iconic products innovative circular perspective results initiative presented ceo creative director entire esg steering committee marking significant step forward towards company strategy embraces sustainability one brand core values group launched life cycle assessment lca project three representative products analyze depth impact procurement production project included engagement activity suppliers actively involve ensure transparent assessment along production chain putting practice vision partnerships value chain increasingly based also shared esg projects data collection activity regard main textile tanning suppliers increased focusing use chemicals production phases order monitor mitigate impacts related supply chain risks information please refer sustainability report directors report operations company continue strengthen assessment potential impacts climate change risk group assets processes making possible appropriately address implement con trol measures help limit exposure risks salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting property plant equipment tangible assets recorded historic cost including additional costs directly attributable necessary use asset purpose bought cost includes costs replace part plant equipment incurred comply recognition criteria net value cost less accumulated depreci ation accumulated impairment parts replaced plant equipment recognized income statement time replacement maintenance repair expenses increase value extend remaining life assets recognized income statement year incurred otherwise capitalized tangible assets shown net related accumulated depreciation accumulated impairment determined accordance method described depreciation calculated straight line basis according estimated useful life asset company useful lives main classes tangible assets follows useful life buildings years plant equipment years industrial commercial equipment years assets office furniture furnishings years electronic machines years historic collection years vehicles years leasehold improvements shorter useful life asset remaining term asset lease agreement residual value asset useful life depreciation methods applied reviewed end year adjusted prospective basis necessary significant parts tangible assets different useful lives components accounted sep arately land whether free construction attached buildings recorded separately depreciated since unlimited useful life carrying amount property plant equipment subject review record impairment events changed situations indicate carrying amount cannot recovered indication impairment carrying amount exceed presumed realizable value assets written reflect realizable value realizable value property plant equipment higher net sale price value use defining value use expected future cash flows discounted using pre tax discount rate reflects current market estimate cost money time specific risks asset realizable value asset generate broadly independent cash flows determined relation cash generating unit asset belongs impairment recognized income statement amortization depreciation write costs impairment reversed reasons longer exist salvatore ferragamo annual report december carrying amount item property plant equipment initially recognized significant component derecognized disposal date buyer obtains control future economic benefits expected use disposal gain loss arising derecognition asset calculated difference net carrying amount asset consideration received included profit loss item derecognized investment property tangible assets held income purposes instrumental use shown specific item called invest ment property accordance ias recognized cost assets fall category represented land buildings parts buildings held owner lessee financial operating lease order lease types property classified separately property assets held investment property shown net relevant accumulated depreciation impairment useful life group investment property years carrying amount investment property subject review record impairment events changed situations indicate carrying amount cannot recovered impairment recognized income statement amortization depreciation write costs impairment reversed reasons longer exist investment property derecognized disposal date buyer obtains control invest ment permanently unusable future economic benefits expected disposal amount consider ation taken account calculate gain loss derecognition investment property determined accordance transaction pricing requirements ifrs leases inception contract group assesses whether contract contains lease contract contains lease provides right control use specific asset period time exchange consideration group uses exemption ifrs intangible assets group lessee group applies single accounting model leases lessee except short term leases leases low value assets group recognizes financial lease liability right use asset right use assets group recognizes right use asset lease commencement date date underlying asset available use lessee right use assets measured cost less accumulated depreciation impairment losses determined described adjusted remeasurement lease liabilities cost right use assets includes amount recognized lease liability initial direct costs incurred lease payments made commencement less lease incentives received estimate costs incurred group restoring underlying asset original condition required lease salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting unless group reasonably certain obtain ownership leased asset end lease term depreciation calculated straight line basis shorter lease term useful life asset follows useful life buildings years equipment assets years vehicles years right use assets tested impairment events changes circumstances indicate carrying amount cannot recovered indication impairment carrying amount exceed presumed realizable value assets written reflect realizable value realizable value higher net sale price value use defining value use expected future cash flows discounted using pre tax discount rate reflects current market estimate cost money time specific risks asset realizable value asset generate broadly independent cash flows determined relation cash generating unit asset belongs impairment recognized come statement amortization depreciation write costs impairment reversed reasons longer exist lease liabilities commencement date lease group recognizes lease liability measured present value future lease payments made lease term future payments include fixed payments less lease incentives receivable variable lease payments depend index rate amounts expected paid sidual value guarantees lease payments also include exercise price purchase option reasonably certain exercised group payments penalties terminating lease group reasonably certain exercise option terminate variable lease payments depend index rate case group mainly depend sales volumes continue recognized costs services profit loss calculating present value future payments group uses incremental borrowing rate ibr lease commencement date subsequently lease liability increased reflect accretion interest reduced lease payments made addition lease liability remeasured account change terms lease short term leases leases low value assets group elected apply ifrs short term leases leases lease term months less leases underlying asset low value less euro payments leases recognized expense straight line basis accordance terms conditions lease group lessor lease contracts group largely retains risks benefits ownership asset classified operating leases lease payments recognized straight line basis term lease contracts place reporting date derive investment property classified rental income investment properties group capitalizes initial direct costs incurred obtaining operating lease recognizes costs expense lease term basis lease income salvatore ferragamo annual report december business combinations goodwill business combinations accounted using purchase method acquisition cost valued total transferred consideration measured fair value acquisi tion date amount minority interests acquired company every business combination acquirer must assess minority interests acquiree fair value proportion share minority interests acquiree identifiable net assets acquisition costs recognized income statement administrative costs group shall determine acquired business integrated set activities assets includes minimum input substantive process together significantly contribute ability create output acquired process shall considered substantive critical ability continue producing outputs inputs acquired include organized workforce necessary skills knowledge experience perform process significantly contributes ability continue producing outputs considered unique scarce cannot replaced without significant cost effort delay ability continue producing outputs every potential consideration must recognized acquirer fair value acquisition date change fair value potential consideration classified financial asset liability pursuant ifrs recog nized accordance provisions ifrs income statement statement comprehensive come potential consideration classified equity instrument value remeasured discharge recognized shareholders equity contingent consideration outside scope ifrs must nonetheless measured fair value profit loss goodwill acquired business combination initially measured excess aggregate consid eration transferred amount non controlling interest fair value net identifiable assets acquired liabilities assumed group requires fair value recognition identifiable assets including previously unrecognized intangible assets liabilities including contingent liabilities excluding future restructuring purchased company initial recognition goodwill valued cost less accumulated impairment impairment test purpos goodwill acquired business combination allocated acquisition date group individual cash generating units groups cash generating units benefit synergies combina tion regardless fact group assets liabilities allocated units groups units group acquires business must classify designate financial assets acquired liabilities sumed basis contractual terms economic conditions pertinent conditions exist acquisition date includes test establish whether embedded derivative must separated primary contract business combination achieved stages company shall remeasure previously held equity interest fair value recognize resulting gain loss profit loss goodwill allocated cash generating unit entity disposes part assets unit goodwill relating disposed asset must included carrying amount asset gain loss arising disposal determined goodwill relating disposed asset must determined basis values relating disposed asset part cash generating unit kept salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting business combinations entities subject joint control fall within scope application ifrs business combination entities subject joint control economic nature mere corporate reorganization company apply business combination accounting method called pooling interest thus aggregating assets liabilities book values line line basis intangible assets intangible assets recorded among assets purchase cost use asset likely generate future income cost asset reliably established intangible assets acquired business com binations recorded fair value established acquisition date value reliably established tangible assets finite useful life amortized straight line basis estimated useful life useful life reviewed annual basis changes necessary applied prospective basis intangible assets shown net related accumulated amortization accumulated impairment deter mined accordance method described useful lives main categories intangible assets finite useful life following useful life industrial patents intellectual property rights years concessions licenses trademarks years key money basis residual term asset lease contract know years intangible asset derecognized disposal date buyer obtains control future economic benefits expected use disposal gain loss arising derecognition asset calculated difference net disposal proceeds carrying amount asset included profit loss carrying amount intangible assets subject review record impairment events changed situa tions indicate carrying amount cannot recovered impairment recognized income statement amortization depreciation write costs impairment reversed reasons longer exist development costs research costs charged income statement incurred development costs incurred relation particular project capitalized group demonstrate technical possibility completing intangible asset way make available use sale well intention complete asset order use sell means generate probable future income availability technical financial resources complete development ability make reliable assessment cost attributable asset development development period asset reviewed annually assess impairment following initial recog nition development costs assessed cost less accumulated amortization impairment loss amortization asset starts development completed asset available use amortized reference period project likely generate revenues group salvatore ferragamo annual report december industrial patents intellectual property rights industrial patents intellectual property rights refer costs software licenses costs filing registration trademarks patents relating group products concessions licenses trademarks similar rights item refers costs filing registration salvatore ferragamo trademark purchase costs ortized useful life right purchased intangible assets finite useful life item mainly refers sums paid lease property taking existing contracts obtaining withdrawal lessees able enter new contracts lessors key money charges amortized term lease contract starting item includes also know acquired business combination arts aura recognized fair value acquisition date charge amortized years financial instruments financial instrument contract gives rise financial asset one entity financial liability equity instrument another entity general rule ifrs entity shall recognize financial asset financial liability balance sheet entity becomes party contractual provisions instrument financial assets initial recognition financial assets classified according contractual cash flow characteristics business model held assessment contractual cash flow characteristics known sppi solely payments principal interest test conducted instrument however identical financial instruments may analyzed groups since outcome test would different individual separate assessment group business model managing financial assets refers group manages financial assets order generate cash flows business model determines whether cash flows result collection contractu cash flows sales proceeds based characteristics financial assets classified four categories financial assets amortized cost debt instruments financial assets fair value comprehensive income reclassification cumulative gains losses debt instruments financial assets fair value comprehensive income without reclassification cumulative gains losses disposal equity instruments financial assets fair value profit loss initial recognition group measures financial asset fair value plus case financial asset fair value profit loss transaction costs trade receivables contain significant financing com ponent group applied practical expedient measured transaction price determined ifrs initial recognition group measures financial assets amortized cost fair value compre hensive income fair value profit loss salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting financial assets amortized cost debt instruments group measures financial assets amortized cost following conditions met financial asset held within business model whose objective hold financial assets order collect contractual cash flows contractual terms financial asset give rise specified dates cash flows solely payments principal interest principal amount outstanding financial assets amortized cost subsequently measured using effective interest method subject impairment gains losses recognized statement profit loss asset derecognized modified impaired group financial assets amortized cost include trade receivables guarantee deposits financial assets fair value comprehensive income debt instruments group measures debt instruments fair value comprehensive income following conditions met financial asset held within business model objective holding collect contractual cash flows selling contractual terms financial asset give rise specified dates cash flows solely payments principal interest principal amount outstanding debt instruments fair value comprehensive income gains losses recognized comprehensive income except changes resulting exchange differences impairment losses well reversals recognized statement profit loss upon derecognition cumulative fair value change recognized comprehensive income recycled profit loss amounts recognized prof loss would recognized financial assets always measured amortized cost group currently type instruments financial assets fair value profit loss general ifrs defines classification fair value profit loss residual category applied financial assets contractual characteristics measured amortized cost fair value comprehensive income however group may initial recognition irrevocably designate financial asset measured fair value profit loss would eliminate significantly reduce counting mismatch would otherwise arise recognizing gains losses asset different bases although may considered accounting policy choice standard require applying consistently similar transactions financial instruments fair value profit loss carried statement financial position fair value net changes fair value recognized statement profit loss category includes derivative instruments derivatives classified financial instruments held trading unless designated effective hedging instruments derivative embedded non derivative hybrid contract financial liability non financial host separated host accounted separate derivative economic characteristics risks closely lated host separate instrument terms embedded derivative would meet definition derivative hybrid contract measured fair value profit loss embedded derivatives measured fair value changes fair value recognized profit loss salvatore ferragamo annual report december reclassification financial asset reclassified either change terms contract significantly modifies cash flows would otherwise expected group changes business model managing financial assets reclassification shall applied prospectively date reclassification without restating pre viously recognized gains losses interest derecognition financial asset applicable part financial asset part group similar financial assets primar ily derecognized removed group statement financial position rights receive cash flows asset expired group transferred right receive cash flows asset assumed obligation pay received cash flows full without material delay third party group transferred substantially risks rewards asset group neither transferred retained substantially risks rewards asset transferred control asset group transferred rights receive cash flows asset entered pass arrangement whereby retains contractual rights receive cash flows asset assumes contrac tual obligation pay cash flows one recipients evaluates extent retained risks rewards ownership risks rewards ownership financial assets substantially transferred group derecognizes financial asset recognizes rights obligations created retained separate assets liabilities otherwise financial asset continues recognized neither trans ferred retained substantially risks rewards lost control asset group continues recognize asset extent continuing involvement control financial assets retained group derecognizes financial asset recognizes rights obligations created retained separate assets liabilities transferred asset associated liability measured basis reflects rights obligations group retained continuing involvement takes form guarantee transferred asset measured lower original carrying amount asset maximum amount consideration company could required repay impairment financial assets group recognizes allowance expected credit losses ecls debt instruments held fair value profit loss specifically impairment model applies financial assets measured amortized cost fair value comprehensive income financial assets fair value profit loss addi tion following types instruments also fall within scope model loan commitment measured fvtpl financial guarantees within scope ifrs lease receivables within scope ifrs contract assets within scope ifrs ecls based difference contractual cash flows due accordance contract cash flows group expects receive discounted approximation original effective interest rate cash flows group expects receive depend probability default counterparty amount expects able recover expected cash flows therefore include cash flows sale collateral held credit enhancements integral contractual terms salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting general approach standard impairment financial assets determined based monitoring counterparties credit standing credit exposures significant increase credit risk since initial recognition ecls provided credit losses result default events possible within next months month ecl credit exposures significant increase credit risk since initial recognition loss allowance required credit losses expected remaining life expo sure irrespective timing default lifetime ecl trade receivables contract assets group applies simplified approach calculating ecls therefore group track changes credit risk instead recognizes loss allowance based lifetime ecls porting date specifically financial assets group adopts practical expedient provision matrix calculate impairment established matrix system based historical collection information adjusted forward looking factors specific debtors economic environment means determine expected credit losses financial liabilities financial liabilities classified measured amortized cost using effective interest rate method except financial liabilities classified fair value profit loss meet conditions measurement amortized cost case financial liabilities held trading addition group may initial recognition irrevocably designate financial liability fair value profit loss would result relevant information eliminates significantly reduces measurement recognition inconsistency sometimes referred accounting mismatch would otherwise arise measuring assets liabilities recognizing gains losses different bases group financial assets liabilities managed measured fair value accordance risk management policy based investment strategy information group provided internally basis key management personnel derivatives negative fair values also classified measured fair value profit loss except held effective hedging instruments financial liabilities recognized initially fair value plus case loans borrowings well payables directly attributable transaction costs group financial liabilities clude trade payables loans borrowings including bank overdrafts derivative financial instruments measurement financial liabilities depends classification financial liabilities fair value profit loss financial liabilities amortized cost loans borrowings financial liabilities fair value profit loss financial liabilities fair value profit loss include financial liabilities held trading financial liabilities designated upon initial recognition fair value profit loss financial liabilities classified held trading incurred purpose settling transferring near term category also includes derivative financial instruments entered group designated hedging instruments hedge relationships defined ias separated embedded derivatives also classified held trading less designated effective hedging instruments gains losses liabilities held trading recognized statement profit loss financial liabilities designated fair value profit loss upon initial rec ognition criteria ifrs satisfied upon initial recognition group designated financial liability fair value profit loss salvatore ferragamo annual report december financial liabilities amortized cost loans borrowings initial recognition loans measured amortized cost using effective interest rate method gains losses recognized profit loss liabilities derecognized well amortization pro cess amortized cost calculated taking account discount premium acquisition fees costs integral part effective interest rate effective interest rate amortization included finance costs statement profit loss possible reclassify financial liabilities derecognition financial liability derecognized obligation liability discharged canceled expires existing financial liability replaced another lender substantially different terms terms existing liability substantially modified exchange modification treated derecognition original liability recognition new liability difference respective carrying amounts recognized statement profit loss offsetting financial instruments financial assets financial liabilities offset net amount reported statement financial position currently enforceable legal right offset recognized amounts intention settle net basis realize assets settle liabilities simultaneously derivative financial instruments hedge accounting initial recognition subsequent measurement group uses derivative financial instruments currency forward contracts hedge financial risks relat ing exchange rate fluctuations affecting commercial transactions foreign currency derivative financial instruments initially recognized fair value date derivative contract entered subsequently measured fair value derivatives carried financial assets fair value positive financial liabilities fair value negative allowed ifrs paragraph group elected apply ias purpose hedge accounting keeping provisions ias ifrs hedging derivatives eligible hedge accounting inception hedge formal designation documentation hedging relationship entity risk management objective strategy undertaking hedge hedge likely highly effective cash flow hedges forecast transaction subject hedge must highly probable must present exposure measurement cash flows may impact income statement effectiveness reliably measured hedge highly effective various accounting periods designated derivatives measured fair value derivatives possess necessary features accounted accordance hedge accounting following accounting treatments applied fair value hedge derivative designated hedge changes current value asset liability firm commitment may impact income statement change fair value hedging instrument recognized income statement change fair value hedged instrument attribut able hedged risk recognized part carrying value item hedged also recognized income statement case firm commitment fair value component related hedged risk recognized asset liability adjusting line item statement financial position affected firm commitment upon realization salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting cash flow hedge derivative designated hedge changes cash flows asset liability transaction considered highly likely firm commitment could affect income statement effective portion gains losses derivative recorded shareholders equity accounted statement comprehensive income accumulated gain loss reversed shareholders equity charged income statement period hedged transaction recorded gain loss associated hedge part hedge become ineffective recorded income statement ineffectiveness recognized conditions apply hedge accounting occur effects arising fair value assessment derivative charged directly income statement cash cash equivalents cash short term deposits refer cash hand sight short term deposits latter case originally expir ing three months treasury shares treasury shares recognized cost deducted equity gain loss recognized profit loss pur chase sale cancellation treasury shares difference purchase value consideration event sale grant recognized reserve equity inventories inventories measured lower purchase production cost determined using weighted average cost method net realizable value purchase cost includes ancillary charges production cost includes direct costs share indirect costs may reasonably attributable products presumed net realizable value normal estimated sale price less estimated costs complete product estimated costs complete sale assets held sale item composed non current assets whose carrying amount recovered mainly sale rather continued use assets classified held sale valued lower net carrying amount fair value net sale costs provisions risks charges provisions risks charges allocated group must meet current legal implicit obligation resulting past event whose occurrence deemed likely whose amount reasonably estimated group believes allocation provision risks charges partly fully reimbursed example case risks hedged insurance policies indemnity recorded separately among assets almost certain case income statement cost allocation shown net amount recorded indemnity significant effect discounting value money allocations discounted using pre tax discount rate reflects appropriate specific risks liabilities discounting carried increase allocation due passing time recorded financial charge salvatore ferragamo annual report december pension funds long term employee benefits italy group defined benefit plan employee severance indemnities respect salvatore fer ragamo plan concerns amounts recognized december addition group defined contribution plans employee severance indemnities accrued said date distinction derives budget law relevant enabling legislation require allocating employee severance indem nities either supplementary pensions schemes treasury fund italian social security institute inps group also defined benefit plans united states mexico thailand france belgium principality monaco taiwan japan switzerland moreover group defined contribution plans employees group net obligation deriving defined benefit plans calculated separately plan estimating amount future benefit employees accrued return service provided current previous years benefit discounted order calculate current value cost benefits provided defined benefit plan determined using actuarial technique projected unit credit method actu arial gains losses recorded directly statement comprehensive income provided ias net interest net defined benefit liability shall determined multiplying net liability discount rate actuarial assessment liabilities entrusted independent actuaries fair value ifrs establishes single source guidance fair value measurement relevant disclosures measurement required permitted fair value price would received sell asset paid transfer liability orderly transaction market participants measurement date fair value asset liability measured using assumptions market participants would use pricing asset liability assuming market participants act economic best interest fair value measurement non financial asset takes account market participant ability generate economic benefits using asset highest best use selling another market participant would use asset highest best use group uses valuation techniques appropriate circumstances sufficient data available measure fair value maximizing use relevant observable inputs minimizing use unobservable inputs assets liabilities whose fair value measured recognized categorized based following fair value hierarchy level quoted prices unadjusted active markets identical assets liabilities entity access measurement date level inputs quoted prices included within level observable asset liability either directly indirectly level valuation techniques using unobservable inputs asset liability fair value measurement categorized entirety level fair value hierarchy lowest level input significant entire measurement salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting methods determining fair value reference financial instruments accounting disclosure purposes summarized reference main financial instrument categories applied derivatives adequate pricing models adopted based market values interest exchange rates receivables payables unquoted financial assets financial instruments expiring one year discounted cash flow method applied discounting expected cash flows given current interest rate creditworthiness conditions quoted financial instruments market value reference date used costs costs recognized related goods services sold consumed period systematically allocat possible identify future usefulness advertising research costs accordance ias charged full income statement service provided delivered group costs recognized according nature considering standards applicable ifrs revenues contracts customers revenues contracts customers recognized control goods services transferred custom amount reflects consideration group expects receive exchange goods services sale goods revenues sale goods recognized control good passes customer generally upon shipment depending terms applied group considers whether contract includes promises representing performance obligations part consideration transaction must allocated example guarantees determining transaction price sale goods group considers effects variable consideration significant financing components non cash consideration consideration payable customer right return contracts allow customers return goods within specified period time group uses expected val method estimate goods returned method better predicts amount variable con sideration group entitled guidance ifrs regarding constraints recognition variable consideration applies determination amount variable consideration included transaction price group adjusts revenues goods expected returned recognizes liability refunds right return asset corresponding adjustment cost sales recognized also right recover goods customers royalties revenues royalties derive sales based royalty agreements customers therefore recog nized based stage completion licensee sales accordance terms agreement right return assets right return asset represents group right recover goods expected returned customers asset measured previous carrying amount inventories less costs recovery including impair ment returned products group regularly updates estimated amount returns customers well additional impairment returned products salvatore ferragamo annual report december refund liabilities refund liability represents obligation refund consideration received received customer measured based amount group expects refunded custom group updates estimates refund liabilities corresponding change transaction price end reporting period share based payment plans group recognizes additional benefits employees directors collaborators holding key positions equity settled share based payments provide physical delivery shares cash settled plans based share value equity settled transactions accordance provisions ifrs share based payments rights favor employees valued fair value recipient informed allocation value determined using binomial model model takes account features rights duration exercise price conditions etc well value underlying shares grant date expected volatility right exercised certain period vesting period occurrence specific performance condi tions cost transactions settled equity instruments together corresponding increase shareholders equity recorded period conditions relating achievement objectives provision service satisfied ending time recipients fully accrued right receive payment vesting date end year fair value rights determined previously reviewed date estimate number rights vest expiry updated accumulated costs recorded transactions end year vesting date proportionate expiries vesting period best available estimate number options actually vest cost revenue recorded income statement year represents change accumulated cost recorded start end year cost recorded rights ultimately vest except case rights whose allocation subordinate market conditions impact dilution rights yet exercised reflected calculation dilution earnings per share cash settled transactions case cash settled share based transactions cost cash settled transactions initially valued fair value date recipient informed allocation fair value recognized income statement period vesting recognition corresponding liability liability settled fair value recal culated year end date settlement date charging related changes income statement approach used account vesting conditions measuring equity settled transactions also applies cash set tled transactions financial income charges financial income charges recorded accrual basis according interest accrued net value related financial assets liabilities using effective interest rate dividends dividends recognized shareholders right receive payment arises salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting government grants government grants recognized reasonable certainty said grants received con ditions said grants met grants related income shown positive component income statement income taxes current taxes current taxes reflect realistic estimate tax burden determined applying rates laws force countries salvatore ferragamo group operates amount payable current taxes recognized statement financial position net tax advances paid group regularly assesses position taken come tax filings tax regulations subject interpretation makes provisions appropriate current taxes relating items recorded directly shareholders equity statement comprehensive come also charged directly shareholders equity statement comprehensive income deferred taxes deferred taxes calculated temporary differences existing reporting date fiscal values taken reference assets liabilities values recognized financial statements deferred tax liabilities recorded taxable temporary differences except deferred tax liabilities derive initial recognition goodwill asset liability trans action business combination time transaction effect profit loss year calculated financial statement purposes profit loss calculated tax purposes reference taxable temporary differences relating equity interests subsidiaries associated companies joint ventures reversal temporary differences may managed likely occur foreseeable future deferred tax assets recorded deductible temporary differences tax assets liabilities carried forward extent adequate future tax profits likely exist make possible use deducti ble temporary differences tax assets liabilities carried forward except deferred tax asset connected deductible temporary differences arises initial recognition asset liability transaction business combination time transaction affect profit loss year calculated financial statement purposes profit loss calculated tax purposes reference taxable temporary differences relating equity interests subsidiaries associated companies joint ventures deferred tax assets recorded extent deductible temporary differences likely reversed immediate future adequate tax profits temporary differences may used value recorded deferred tax assets reviewed reporting date reduced extent longer likely sufficient tax profits available future allow part credit used unrecognized deferred tax assets reviewed annually reporting date recorded extent become likely tax profit sufficient ensure deferred tax assets recovered determine whether taxable profit available deductible temporary difference utilized entity shall consider whether local tax laws restrict sources taxable profits may make ductions reversal deductible temporary difference salvatore ferragamo annual report december deferred tax assets liabilities measured basis tax rates expected applied year assets realized liabilities settled taking account rates force ready issued basically issued reporting date deferred taxes relating items recorded directly shareholders equity statement comprehensive income also charged directly shareholders equity statement comprehensive income deferred tax assets liabilities offset legal right offset current tax assets current tax liabilities deferred taxes refer fiscal entity tax authority value added tax revenues costs assets recorded net value added tax except tax applied purchase goods services non deductible case recognized part purchase cost asset part cost item recognized income statement refers trade receivables payables invoice already issued received whose values shown including tax amount net amount indirect taxes sales purchases may recovered paid inland revenue office recorded among tax receivables payables depending nature balance earnings per share basic earnings per share calculated dividing profit loss period attributable shareholders parent company weighted average number outstanding shares year purpose calculating diluted earnings per share weighted average number outstanding shares modified assuming conversion potential shares diluting effect net result also adjusted take account impact net taxes conversion put call agreements minority interests case put options granted minority shareholders group recognizes financial liability corresponding present value exercise price option terms conditions put option already give group access economic benefits associated interest concerned option group accounts interest already acquired therefore initial recognition liability amount reclassi fied equity deduction minority interests liability subsequently remeasured end period compliance ifrs cases accounting policy chosen group initial recog nition liability amount shall reclassified group equity continuing account profits losses attributable minority interests equity held minority interests change amount liability shall recognized equity ias financial reporting hyperinflationary economies ceffective july argentina economy considered hyperinflationary accordance financial reporting hyperinflationary economies ias standard requires financial statements entities whose functional currency currency economy considered hyperinflationary restated using general price index reflects changes general purchasing power inflation index used argentina synthetic index following characteristics january new national consumer price index used periods december wholesale price index used salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting therefore items financial statements ferragamo argentina divided monetary non monetary items monetary items money held assets liabilities received paid cash items non monetary monetary items restated already expressed terms current monetary unity period inflation entity holding excess monetary assets monetary liabilities loses purchasing power entity excess monetary liabilities monetary assets gains purchasing power gain loss net monetary position included net income effect inflation net monetary position non monetary assets liabilities ferragamo argentina year ended december resulted thousand euro net loss immaterial impact consolidated financial statements thousand euro net profit consolidated income statement december restating non monetary assets per ias group also assessed whether restated amount asset exceeded recoverable amount addition application ias gave rise temporary tax differenc carrying amount non monetary assets adjusted inflation similar adjustment made tax purposes result temporary difference deferred tax liability recognized profit loss changes international accounting standards group adopted advance standards interpretations improvements issued yet force amendments ias classification liabilities current non current iasb issued amendments ias clarify requirements classifying liabilities current non current including relation liabilities subject covenants define disclosures required nancial statements amendments effective annual periods beginning january must applied retrospectively amendments impact group amendments ifrs leases lease liability sale leaseback september iasb issued amendments ifrs clarify parameters lessor seller use recognize variable lease payments sale leaseback transaction amendments introduce new model accounting variable payments require lessor seller reassess potentially reformulate sale leaseback transactions entered amendments effective annual periods beginning january must applied retrospectively sale leaseback transactions entered date initial application ifrs earlier application permitted provided fact disclosed amend ments impact group amendments ias statement cash flows ifrs financial instruments may iasb issued amendments ias statement cash flows ifrs financial instruments clarify characteristics financial arrangements suppliers require additional disclosures finan cial statements detailed information required intended enable readers financial statements understand impact financial arrangements suppliers liabilities cash flows exposure liquidity risk amendments effective annual periods beginning january however earlier application permitted provided fact disclosed transition provisions clarified application required interim reporting year first application therefore amendments impact group consoli dated financial statements salvatore ferragamo annual report december standards issued yet force set standards preparing group consolidated financial statements already issued yet force list refers standards interpretations group expects likelihood applicable future group intends adopt standards come force amendments ias effects changes foreign exchange rates august iasb issued amendment ias effects changes foreign exchange rates clarify currency exchangeable currencies company estimate spot exchange rates currency cannot exchanged amendments require detailed disclosures enable readers financial statements understand precise exchange rate used estimation process nature impact financial statement data using estimated exchange rate risks company related non exchangeability currencies amend ments effective annual periods beginning january earlier application permitted group currently assessing whether amendments impact consolidated financial statements ifrs presentation disclosure financial statements april iasb issued ifrs supersedes ias presentation financial statements ifrs intro duces new requirements presentation income statement including specific totals subtotals entities required classify costs revenues income statement five categories operating investing financing income taxes discontinued operations first three new standard also requires disclosures based new definition management defined performance measures mpms subtotals costs revenues includes new provisions aggregating disaggregating financial information based identified roles primary financial statements pfs notes amendments also made ias statement cash flows including changing starting point determining cash flows operating activities using indirect method profit loss operating profit loss also removing option classify cash flows related dividends interest moreover consequential amendments made number accounting standards ifrs amendments standards apply annual reporting periods beginning january earlier application permitted subject disclosure ifrs apply retrospectively group currently assessing impact amendments financial statements planatory notes financial statements ifrs subsidiaries without public accountability disclosures may iasb issued ifrs allows eligible entities meet certain requirements elect reduce disclosure requirements continuing apply recognition measurement disclosure requirements ifrs accounting standards eligible entity must subsidiary defined ifrs end financial year must public accountability must ultimate intermediate parent produces consolidated financial statements available public use comply ifrs accounting standards ifrs apply annual reporting periods beginning january earlier application permitted considering shares parent company publicly listed group eligible application ifrs salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting amendments classification measurement financial instruments amendments ifrs ifrs may iasb issued document amendments classification measurement financial instruments amendments ifrs ifrs clarifies number issues arose post plementation review ifrs including accounting treatment financial assets whose returns vary esg objectives met green bonds particular amendments aim clarify classification financial assets variable returns linked environmental social corporate gov ernance esg objectives criteria used assessing sppi test establish date settlement liabilities electronic payment systems date liability settled however entity permitted adopt accounting policy allows deem financial liability settled cash using electronic payment system discharged settlement date specified criteria met amendments iasb also introduced additional disclosure requirements investments equity struments measured fvoci amendments apply annual periods beginning january group assessing whether amendments impact consolidated financial statements annual improvements volume july iasb published document called annual improvements volume includes clarifica tions simplifications corrections amendments aimed improving consistency several ifrs accounting standards amended standards ifrs first time adoption international financial reporting standards ifrs financial instruments disclosures related guidance implementation ifrs ifrs financial instruments ifrs consolidated financial statements ias statement cash flows amendments apply annual periods beginning january earlier application permit ted group assessing whether amendments impact consolidated financial statements contracts referencing nature dependent electricity amendments ifrs ifrs december iasb issued amendment called contracts referencing nature dependent electricity amendment ifrs ifrs assist entities reporting financial effects contracts purchase electricity produced renewable sources often structured power purchase agreements based contracts amount electricity generated purchased may vary due uncontrollable factors weather iasb made targeted amendments ifrs ifrs amendments include clarification regarding application use requirements type contracts criteria allow recognition contracts hedging instruments new disclosure requirements enable users financial statements understand effects contracts entity financial performance cash flows amendments apply annual periods beginning january earlier application permit ted group assessing whether amendments impact consolidated financial statements salvatore ferragamo annual report december consolidation area consolidated financial statements december contain equity financial position well operating performance parent company salvatore ferragamo foreign subsidiaries consolidat line line basis identified collectively salvatore ferragamo group consolidated financial statements december include accounts group companies prepared adopting accounting policies parent company subsidiaries entities group control group exposed variable returns arising transac tions entity claim rights returns time influence returns exer cising influence entity financial statements subsidiaries included consolidated financial statements moment parent company starts exercise control control ends lose control group eliminates assets liabilities subsidiary previous minority interests shareholders equity including item comprehensive income relating subsidiary profit loss arising loss control recorded net profit loss year equity investment former subsidiary measured fair value date loss control intragroup balances transactions including unrealized profits losses deriving transactions among group companies completely eliminated minority interests represent part profits losses net assets held group shown separate item income statement statement financial position among shareholders equity items separately group shareholders equity acquisitions subsidiaries recognized using acquisition method allocating cost business combina tion fair values assets liabilities contingent liabilities acquired acquisition date including result purchased company recorded acquisition date end year changes group equity interest subsidiary cause loss control recognized equity transactions salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting following companies included scope consolidation december consolidated line line basis december company name location currency share capital controlling interest notes direct indirect salvatore ferragamo florence italy euro parent company ferragamo retail nederland amsterdam netherlands euro ferragamo france paris france euro ferragamo deutschland gmbh munich germany euro ferragamo austria gmbh vienna austria euro ferragamo limited london united kingdom pound sterling ferragamo suisse mendrisio switzerland swiss franc ferragamo belgique brussels belgium euro ferragamo monte carlo principality monaco euro ferragamo espana madrid spain euro ferragamo usa inc new york united states dollar ferragamo canada inc vancouver canada canadian dollar fer international inc new york united states dollar sator realty inc new york united states dollar ferragamo mexico mexico city mexico mexican peso ferragamo chile santiago chile chilean peso ferragamo argentina buenos aires argentina argentine peso ferragamo brasil roupas acessorios ltda sao paulo brazil brazilian real ferragamo hong kong ltd hong kong china hong kong dollar ferragamo japan tokyo japan japanese yen ferragamo australia pty ltd sydney australia australian dollar ferrimag limited hong kong china hong kong dollar ferragamo fashion trading shanghai ltd shanghai china dollar ferragamo moda shanghai ltd shanghai china dollar ferragamo retail limited hong kong china hong kong dollar ferragamo retail taiwan limited taipei taiwan new taiwanese dollar ferragamo retail macau limited macau china macau pataca ferragamo retail india private limited new delhi india indian rupee ferragamo korea ltd seoul south korea south korean ferragamo singapore pte ltd singapore singapore dollar ferragamo thailand limited bangkok thailand baht ferragamo malaysia sdn bhd kuala lumpur malaysia malaysian ringgit ferragamo usa inc ferragamo hong kong ltd ferrimag ltd non operating company salvatore ferragamo annual report december structure salvatore ferragamo group underwent changes addition please note ferragamo argentina operates country considered hyperinfla tionary economy since july accordance ias financial reporting hyperinflationary economies therefore accounting standard applied since reporting financial position financial performance cash flows ferragamo argentina consolidation purposes detailed note basis presentation impact application standard years considered material group level subsidiaries material minority interests main business carried percentage minority interests december ferragamo japan group company minority interests shown company activity minority interest december december ferragamo japan retail company japanese market following tables provide main economic financial data ferragamo japan information based balances accounts drawn purposes preparing consolidated financial statements gross intercompany eliminations thousands euro ferragamo japan december december non current assets current assets non current liabilities current liabilities shareholders equity minority interests revenues profit year net profit loss minority interests total comprehensive income period comprehensive income attributed minority interests net cash used operating activities net cash used investing activities net cash used financing activities increase decrease cash cash equivalents dividends paid minority interests ifrs requires disclosure legal contractual regulatory requirements well minority interest pro tection rights may cases limit group ability access assets use cancel liabilities group analysis cases show significant restrictions salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting translation financial statements currencies euro items denominated foreign currency consolidated financial statements expressed euro functional presentation currency adopted parent company every group company establishes functional currency used value items included individual reports transactions foreign currency initially recorded exchange rate force transaction date referred functional currency monetary assets liabilities denominated foreign currency translated functional currency exchange rate force reporting date exchange rate differences recorded income statement non monetary items valued historic cost denominated foreign currencies translated using exchange rates force date initial recognition transaction exchange rates used determine value euro subsidiaries financial statements expressed foreign currency euro follows average exchange rates exchange rates end reporting period december december december december dollar swiss franc japanese yen pound sterling australian dollar south korean hong kong dollar mexican peso new taiwanese dollar singapore dollar thai baht malaysian ringgit indian rupee macau pataca chinese renminbi chilean peso argentine peso brazilian real canadian dollar salvatore ferragamo annual report december reporting date assets liabilities group companies converted group presentation cur rency euro exchange rate force date income statement converted using average exchange rate period translation differences recorded directly shareholders equity shown sep arately specific reserve recognized statement comprehensive income disposal particular foreign company accumulated translation differences recorded component statement comprehensive income particular foreign company recorded income statement goodwill resulting acquisition foreign company adjustment fair value book values assets liabilities arising acquisition foreign company recognized assets liabilities foreign company expressed functional currency foreign company translated exchange rate force end period management financial risks ifrs salvatore ferragamo group exposed different measure various financial risks related business particular market risk category includes following types risk interest rate risks relating impact changes market interest rates exchange rate risks due operations currency areas accounting currency liquidity risks relating availability financial resources ease access credit market con nected need fulfill group financial commitments short term credit counterparty risks representing risks default commercial financial obligations assumed various counterparties arising normal commercial transactions use financing risk hedging activities financial risks managed basis guidelines established parent company compliance goals set centrally board directors enables control coordination operations individual subsidiaries also effective financial planning control systematic monitoring group levels exposure financial risks well trend cash management provision useful indications order optimize management dealings reference credit institutions accordance directives group specifically controls management individual financial risks intervenes contain impact also using derivatives derivatives used hedging purposes accordance ifrs derivatives classified held trading although entered solely hedging purposes financial liabilities largely consist trade payables payables banks financial payables lease lia bilities following introduction accounting standard ifrs management liabilities largely aimed financing group operations interest rate risk movements market interest rates affect level net financial charges market value financial assets liabilities interest rate risk classified follows flow risk refers variability interest income expense received paid following changes mar ket interest rates price risk relating sensitivity market value assets liabilities changes level interest rates refers fixed rate assets liabilities salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting salvatore ferragamo group mainly exposed flow risk risk recording income statement increase financial charges due unfavorable change interest rates group companies use third party finan cial resources largely form floating rate bank debt deploy available liquidity mainly money market instruments changes market interest rates affect cost loans yield uses thus level group financial charges income fair value bank debt represented short term floating rate loans cost bank debt benchmarked market rate generally euribor libor sofr benchmark loan currency specific interbank market period increased spread depends type line credit used drawdowns range one day maxi mum less one year interest period market rate used euribor libor sofr exceed twelve months margins applied line best market standards cash surpluses held used short term time deposits opened reference banks typically take reference euribor libor sofr rate period benchmark investment currency spe cific interbank market cash pooling structures intercompany loans regulated current market conditions order limit group exposure banking system counterparty risk impact financial charges salvatore ferragamo view moderately diversifying cash management made insurance invest ment readily adjustable type policy investment short term italian government bonds buoni ordinari del tesoro insurance investment multi branch policy quickly converted cash part general policy optimizing financial resources aim find balance companies surplus liquidity others financial requirements using least costly forms financing sensitivity interest rate risk monitored group level keeping overall exposure due consideration coordinated management debt available liquidity relevant due dates reporting date outstanding interest rate risk hedge derivatives aimed transforming floating rate debt fixed rate debt group make use derivatives previous year sensitivity analysis interest rate risk group exposed undertaken considering financial statement items give rise floating rate interests assuming parallel increases decreases benchmark interest rate curves individual currency proportion respective annual volatility observed market result analysis undertaken risk factors generate significant exposure interest rate curves chinese renmimbi euro hong kong dollar japanese yen macau pataca mexican dollar singapore dollar showed potential losses profits income statement amounting thousand euro compared potential losses profits income statement thousand euro possible upward downward change market benchmark interest rates continues minor impact group income statement salvatore ferragamo annual report december exchange rate risk exposure exchange rate risk derives operations currencies accounting currency particular exchange rate risk classified based nature exposure relevant effects operating results due different relevance costs revenues foreign currency compared moment price conditions defined economic risk due translation trade financial receivables payables denominated foreign currency settlement risk consolidated financial statements operating result shareholders equity due translation assets liabilities companies prepare financial statements different currency group func tional currency translation risk group operates internationally therefore exposed risks arising exchange rate fluctuations impact operating results value shareholders equity functional presentation currency group financial data euro accordance ifrs companies whose presentation currency different group functional currency income statements translated euro average exchange rate period revenues margins equal local currency exchange rate changes may affect value euro revenues costs operating results assets liabilities translated euro year end exchange rate therefore may different values consequence exchange rate movements change impact shareholders equity classified translation reserve recorded statement comprehensive income besides absolute amounts financial ratios may also vary proportions profit assets debt share holders equity various currencies change due exchange rate changes group policy hedge exposure translation exchange risk objective exchange rate risk hedging policy minimize economic settlement exchange rate risks risks arising possibility currency parity changes unfavorably period moment commitment pay right collect currency euro expected future date definition budgets setting price lists arrangement orders registration accounting document invoicing moment receipt payment effectively occurs generating effect terms trans lation differences impact income statement keeping exchange rate risk management poli adopted recent years group manages exchange rate risk arising business line provisions exchange rate risk management policy risk management objectives periodically established corporate level systematic hedging commercial flows arising sales forecast currencies euro aim mitigating expected risk variability margins arising sales relating future collections group strong presence international markets including commercial companies located coun tries use currencies euro mainly dollar chinese renminbi year ended december around company net revenues denominated dollars around chinese renminbi around japanese yen around south korean around mexican peso year ended december around company net revenues denominated dollars around chinese renminbi around south korean around mexican peso around japanese yen currency risks originate mainly exports company dollars chinese renminbi japanese yen south korean mexican peso seeking ever greater efficiency accurate control risks exchange rate risk management centralized parent company goods transferred consideration subsidiaries settled directly currency salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting country operate sell relation business model group incurs significant part costs euro costs relating production management corporate structure revenues costs recorded group companies mainly expressed local currencies respective reference markets particular group exposed changes exchange rate euro dollar relation sales dollars north american market markets mainly asian ones context group exposed changes exchange rates currencies sales denominated implies risk corresponding value euro revenues determined moment collection insufficient cover production costs achieve desired profit margin risk heightened significant period moment sale prices collection set moment revenues converted euro extends months parent company manufacturing company enters currency forward contracts options establish conversion rate advance predefined range conversion rates future dates estimated period maximum months years examination group hedged exchange rate risk almost exclusively currency forward contracts end basis market expectations conditions establishing price lists case beginning sales campaign hedging arranged amount generally forecast sales foreign currency proportion calculated based expected overall exposure rather individual foreign currency period following preparation price list total outstanding hedge added orders effectively managed put production way company limits commercial risk risk arising sales volumes excluding risk arising exchange rate operations may add residual operations asian latin american subsidiaries purchase goods dollars euro sell currency country operate values con tracts involved significantly lower parent company addition group controls hedges exposure deriving changes due exchange rate fluctuations value assets liabilities denominated currencies accounting currency individual company may affect income statement typically intercompany financial receivables payables financial struments whose recognition accordance ifrs follows rules fair value hedge profit loss arising subsequent assessments present value hedging instrument recognized income statement well profit loss hedged item hedges parent company future transactions foreign currencies classified cash flow hedges pursuant ifrss accounted accordance hedge accounting rules salvatore ferragamo annual report december following table shows changes cash flow hedge reserve years ended december december exchange rate risk thousands euro opening balance increases recognition new positive effectiveness decreases recognition new negative effectiveness decreases due transfer effectiveness cash flow hedge reserve recognition income profit loss increases due transfer effectiveness cash flow hedge reserve recognition cost profit loss closing balance overall reserve consists value changes hedges expected transactions foreign currency creased thousand euro whereas decreased thousand euro changes value reflect performance euro main hedged currencies decrease mainly due strengthening dollar chinese renminbi second half year amount transferred reserve revenues sales occurrence underlying flows positive total thousand euro compared positive thousand euro hedge interrupted due cancellation expected underlying value hedges one hundred percent effective whole duration underlying asset hedge may become ineffective result differences timing cash flows hedged item hedging instrument changes expected amount cash flows hedged item hedging instrument following tables set average time horizon relevance risk factor exchange rate hedges held group end number foreign currencies tables shows exchange rate risk management centralized parent company salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting cash flow analysis hedged items financial recognition december thousands less month months months months months total expected currency forward contracts notional amount usd average forward exchange rate eur usd notional amount cad average forward exchange rate eur cad notional amount cny average forward exchange rate eur cny notional amount gbp average forward exchange rate eur gbp notional amount hkd average forward exchange rate eur hkd notional amount jpy average forward exchange rate eur jpy notional amount krw average forward exchange rate eur krw notional amount mxn average forward exchange rate eur mxn salvatore ferragamo annual report december december thousands less month months months months months total expected currency forward contracts notional amount usd average forward exchange rate eur usd notional amount cad average forward exchange rate eur cad notional amount cny average forward exchange rate eur cny notional amount gbp average forward exchange rate eur gbp notional amount hkd average forward exchange rate eur hkd notional amount jpy average forward exchange rate eur jpy notional amount krw average forward exchange rate eur krw notional amount mxn average forward exchange rate eur mxn salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting cash flow analysis hedged items impact income statement december thousands total expected flows within months months months months year year exchange rate risk expected sales usd expected sales jpy expected sales gbp expected sales mxn expected sales cad expected sales cny expected sales hkd expected sales krw december thousands total expected flows within months months months months year year exchange rate risk expected sales usd expected sales jpy expected sales gbp expected sales mxn expected sales cad expected sales cny expected sales hkd expected sales krw important hedge terms volumes notional amounts foreign currency hedged aimed mitigating risk generated fluctuations exchange rate euro following currencies dollar chinese renminbi japanese yen south korean mexican peso time viewpoint hedges lasting one year showed nil values december well cember tables set financial recognition dates underlying assets currency dates impact income statement recognized determined upon invoicing estimated flows object exchange rate hedge december salvatore ferragamo annual report december impact hedged items statement financial position highly probable expected sales cash flow hedge reserve change fair value used measure ineffectiveness carrying amount thousands euro notional amount line item current assets line item current liabilities december december sensitivity analysis sensitivity analysis carried order assess group exposure exchange rate risk undertaken basis percentage increases decreases exchange rates various currencies proportional annual volatility applied significant financial assets liabilities expressed original currencies particular analysis involved currencies following items exchange rate derivatives trade receivables trade payables cash cash equivalents short long term financial liabilities short long term lease liabilities addition table shows important impacts related currencies refers exposure exchange rate risk accordance requirements ifrs therefore take account effects arising translation financial statements foreign companies whose functional currency different euro exchange rates considered currencies whose changes generate impact income statement shareholders equity absolute terms one million euro salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting december increase decrease underlying foreign exchange rates underlying asset impact income statement impact shareholders equity thousands euro positive change eur jpy derivatives non derivatives eur usd derivatives non derivatives eur krw derivatives non derivatives eur cny derivatives non derivatives eur mxn derivatives non derivatives eur gbp derivatives non derivatives eur cad derivatives non derivatives eur brl derivatives non derivatives eur hkd derivatives non derivatives total salvatore ferragamo annual report december december increase decrease underlying foreign exchange rates underlying asset impact income statement impact shareholders equity thousands euro negative change eur jpy derivatives non derivatives eur usd derivatives non derivatives eur krw derivatives non derivatives eur cny derivatives non derivatives eur mxn derivatives non derivatives eur gbp derivatives non derivatives eur cad derivatives non derivatives eur brl derivatives non derivatives eur hkd derivatives non derivatives total salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting december increase decrease underlying foreign exchange rates underlying asset impact income statement impact shareholders equity thousands euro positive change eur jpy derivatives non derivatives eur usd derivatives non derivatives eur krw derivatives non derivatives eur cny derivatives non derivatives eur mxn derivatives non derivatives eur gbp derivatives non derivatives eur cad derivatives non derivatives eur brl derivatives non derivatives eur hkd derivatives non derivatives total salvatore ferragamo annual report december december increase decrease underlying foreign exchange rates underlying asset impact income statement impact shareholders equity thousands euro negative change eur jpy derivatives non derivatives eur usd derivatives non derivatives eur krw derivatives non derivatives eur cny derivatives non derivatives eur mxn derivatives non derivatives eur gbp derivatives non derivatives eur cad derivatives non derivatives eur brl derivatives non derivatives eur hkd derivatives non derivatives total table shows positive change listed exchange rates eur jpy eur usd eur krw eur cny eur mxn eur gbp eur cad eur brl eur hkd would resulted profit thousand euro december thousand euro december hand negative change exchange rates would caused loss thousand euro december thousand euro december increase shareholders equity caused derivatives designated hedges result assumed positive exchange rate changes would amounted thousand euro december thousand euro december decrease shareholders equity result assumed negative exchange rate changes would totaled thousand euro december thousand euro december sensitivity analysis carried described significantly affected market volatility exchange rates considered points material impact group shareholders equity potential change value hedging derivatives temporarily allocated cash flow hedge reserve recognized profit loss following years expected sales occur higher lower pact income statement statement financial position years consideration largely results trend individual currencies reference dates change value financial assets liabilities exposed fluctuations exchange rates salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting liquidity risk liquidity risk represents risk group cannot meet financial obligations due problems obtaining funds current market price conditions funding liquidity risk liquidating assets market find necessary financial resources asset liquidity risk first consequence negative impact income statement company forced incur additional costs meet commitments factors mainly influence group liquidity resources generated absorbed current operating investing activities possible distribution dividends expiry possibility renewal debt expiry possibility liquidation financial investments surplus cash liquidity needs surpluses monitored daily basis parent company order guarantee effective sourcing financial resources adequate vestment liquidity negotiation management credit lines coordinated parent company aim satisfying short medium term needs group individual companies according efficiency cost effectiveness cri teria december committed credit lines totaling thousand euro fully available one installments revolving outstanding several bank counterparties date also committed short term credit lines relating parent company subsidiaries totaling thousand euro december group unused committed credit lines form revolving credit lines term loans amounting thousand euro uncommitted credit lines totaling thousand euro gross debt thousand euro adjusted net financial position amounting surplus thousand euro thousand euro debt considering also lease liabilities accordance ifrs december committed credit lines maximum residual maturity twenty nine months weighted average residual maturity thirteen months credit lines related financial operations spread among leading national international banks reporting date maximum use one year group current committed revolving credit lines require compliance financial covenants details see note interest bearing loans borrowings limitations use financial resources always group policy sign constantly maintain various diversified banks total amount committed credit lines considered consistent needs individual companies suitable ensure time liquidity needed satisfy comply group financial commitments established economic conditions well guaranteeing availability adequate level operational flexibility pansion programs also group policy use significant part cash surpluses time deposit investments well take intercompany loans regulated current market conditions contain increase bank debt related financial charges cash surpluses used reference banks short term usually one day three months time depos transactions referring euribor libor sofr rate period benchmark investment currency specific interbank market liquidity investments carried prime objectives making resources available short notice event maturities longer three months relevant contracts allow promptly liquidating without penalties neutralizing risk capital losses avoiding speculative transactions view moderately diversifying cash management salvatore ferragamo maintained investment short term italian government bonds buoni ordinari del tesoro thousand euro insurance investment readily adjustable type policy thousand euro addition new insurance investment multi branch salvatore ferragamo annual report december policy quickly converted cash thousand euro accordance policy manage ment mitigation liquidity risk approved board directors salvatore ferragamo main objective ensuring adequate coverage financial requirements group companies choices also take account likely future trend cash flows together prompt renegotiation credit lines even expiry enable significant reduction exposure risk review allow adjust cost debt best market conditions group constantly maintained access wide range financing sources competitive costs despite external scenario continues characterized rigidity credit market notwithstanding group overall ability generate cash flows current operations con stant availability adequate amount committed credit lines allowed face turbulent market phases volatility credit flows confidence total financial position company group overall measured every month compared latest budget forecast management believes funds credit lines currently available addition funds likely generated current operations enable group safely address repayment loans natural maturity meet needs arising investment activities working capital management december thousands euro months months years years total trade payables payables banks financial payables lease liabilities guarantee deposits derivatives non hedging component derivatives hedging component total december thousands euro months months years years total trade payables payables banks financial payables lease liabilities guarantee deposits derivatives non hedging component derivatives hedging component total salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting analysis conducted items representing financial liabilities showed maturities distributed time trade payables concentrated within three months payables banks maximum residual maturity less year part less months reported financial assets shorter remaining life mostly relate cash cash equivalents credit risk credit risk represents group exposure potential losses arising failure meet trade financial obliga tions taken counterparties group exposure credit risk depends nature activities generated relevant receivables group exposure commercial credit risk refers wholesale sales receivables associated licensing rental income investment property revenues combined rep resent nearly global turnover remaining turnover refers dtc sales cash payment payment credit debit cards time purchase trade receivables mainly related wholesale sales lesser extent commerce dtc sales department stores generally maturities less days group usually favors trade dealings customers well established consolidated relations group policy check credit ratings customers ask extended payment terms based information obtained specialist agencies observation analysis historical data established customers addition balance trade receivables constantly monitored year order ensure prompt intervention reduce risk losses allocation credit risk among number customers helps mitigate risk trade receivables recorded net write downs estimated based counterparty insolvency risk determined considering information available customer solvency historical data forecast economic conditions besides obtaining possible guarantees wholesale customers adoption means payment less risky creditor documentary letters credit another instrument used manage commercial credit risk subscription insurance policies aim preventing risk non payment careful selection customer portfolio jointly insurance companies agree guarantee payment indemnity case insolvency general company believes credit risk management policies implemented enabled overdue bad debts required adoption legal credit collection measures kept within reasonable limits credit risk connected financing investing operating activities derivatives hedge exchange rate risk represented inability counterparty issuer instruments meet contractual obligations called counterparty risk group manages type risk selecting counterparties high credit ratings considered solvent market routine ongoing trade banking service relations well diversifying accounting currency surplus cash group negotiated entered master agreements accordance international standards isda master agreement counterparties derivatives order regulate various cases credit risk regarding group financial assets consisting cash cash equivalents financial assets amortized cost derivatives risk equal carrying amount assets case insolvency counterparty salvatore ferragamo annual report december thousands euro december december current portion non current portion current portion non current portion financial assets fair value profit loss financial assets receivables loans trade receivables receivables due credit cards cash cash equivalents guarantee deposits current financial assets derivatives total table shows group exposure commercial counterparty credit risk defined carrying amount items representing outstanding financial assets december december almost exclusively limited current portion non current portion refers entirely item guarantee deposits mainly includes cash deposits made various entities property leases recognized nominal value thousands euro december december italy europe north america japan asia pacific central south america total table shows concentration commercial credit risk geographic area group operations two years review salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting thousands euro receivables neither past due impaired receivables past due impaired total days days days days days december december figures december figures december analysis carried maturity dates receivables past due impaired shows concentrated within thirty days years ended december december concentration sales main customers shown table concentration sales geo graphic area reference made specific section concentration market risk percentage revenues biggest customer percentage revenues biggest customers percentage revenues biggest customers capital management main objective group capital management activity ensure solid credit rating well ade quate levels equity indicators maintained order support business optimize value shareholders group manages capital structure modifies according changes economic conditions maintain adjust capital structure group modify dividends paid shareholders repay capital issue new shares change made objectives policies procedures end group capital management aims among things ensure compliance covenants associated financial payables banks define capital structure requirements group includes net debt interest bearing loans lease liabilities financial payables trade payables net cash cash equivalents financial payables include value agreements purchase minority interests reference made note put call agreements minority interests amounted thousand euro december thousand euro december salvatore ferragamo annual report december table include values related effects produced derivatives used manage exchange rate risk thousands euro december december interest bearing loans lease liabilities financial payables trade payables payables net hedging derivatives cash cash equivalents net debt group shareholders equity net cash flow hedge reserve minority interests shareholders equity net cash flow hedge reserve shareholders equity net debt net debt shareholders equity business combinations purchases minority interests business combinations salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting comments main statement financial position items assets shareholders equity liabilities property plant equipment breakdown property plant equipment december shown following table december december thousands euro historical cost accumulated depreciation net value historical cost accumulated depreciation net value land buildings plant equipment industrial commercial equipment assets leasehold improvements tangible assets progress payments account total following tables show changes property plant equipment years ended december thousands euro value translation diff increases decreasesdepreciation reclass impairment value land buildings plant equipment industrial commercial equipment assets leasehold improvements tangible assets progress payments account total salvatore ferragamo annual report december thousands euro value translation diff increases decreases depreciation reclass impairment non current assets disposed value land buildings plant equipment industrial commercial equipment assets leasehold improvements tangible assets progress payments account total increase net decrease tangible assets progress payments account buildings plant equipment largely refers improvement works osmannoro sesto fiorentino facility owned salvatore ferragamo new york building owned ferragamo usa group industrial commercial equipment mainly refers opening renovation stores assets mainly refers equipment thousand euro furniture furnishings thousand euro leasehold improvements mainly refers work carried opening renovation stores fixed assets progress payments account largely refers expenses incurred payments account made renovation opening stores yet operational reporting date increase tangible assets leasehold improvements included costs restoration premises leased third parties recognized provision risks charges note amounted thousand euro thousand euro decreases mainly refer assets fully depreciated relating stores renovated closed year reclassification thousand euro item land refers transfer portion owned land used investment property parent company reclassification item tangible assets progress payments account totaling thousand euro refers reclamation work carried land owned salvatore ferragamo used investment property thousand euro construc tion building used general interest production activities parent company thousand euro details please refer note investment property required procedure adopted group analyze impairment indicators end year assess ment made possible presence impairment indicators could identified internal external information sources external sources typically consist changes technological economic legal framework group operates internal sources corporate strategies change use assets salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting required ias provided relevant group procedure presence internal external impairment indicators analyzed least year analyses carried revealed impairment indicators group cash generating units resulted recognition impairment loss thousand euro item financial statements details please refer note impairment property plant equipment right use assets intangible assets finite useful life investment property investment property breakdown item december set following table december december thousands euro historical cost accumulated depreciation net value historical cost accumulated depreciation net value land buildings right use assets buildings total investment property refers buildings located united states starting building used general interest production activities area owned salvatore ferragamo located nicipality sesto fiorentino osmannoro following tables show change investment property years ended december thousands euro value translation difference increases depreciation reclassifications impairment value land buildings right use assets buildings total thousands euro value translation difference increases depreciation value land buildings right use assets buildings total item land includes reclassification industrial land thousand euro referring portion land owned salvatore ferragamo used general interest production activities thousand euro referring reclamation works carried land reclassified item tangible assets progress payments account item buildings includes property owned salvatore ferragamo located salvatore ferragamo annual report december municipality sesto fiorentino osmannoro used general interest production activities reclassified item tangible assets progress payments account property completed december please note right use assets qualifying investment property classified line item december following impairment loss recorded result impairment test carried financial year completely written details please refer note impairment property plant equipment right use assets intangible assets finite useful life investment property increase right use assets buildings recognized provision risks charges note included costs restoration premises leased third parties leases fall within scope ifrs amounted thousand euro thousand euro required ias provided relevant group procedure presence internal external impairment indicators analyzed least year analyses carried revealed impairment indicators item right use assets buildings resulted complete write net carrying amount thousand euro details please refer note impairment property plant equipment right use assets intangible assets finite useful life investment property addition group periodically assesses fair value investment property recognized financial state ments valuation carried independent third party land building owned salvatore ferragamo necessary recognize impairment loss thousand euro adjust value lower cost fair value resulting valuation goodwill amount goodwill entirely acquired business combination arts aura attributable synergies economic benefits arising combination assets acquirees salvatore ferragamo respect design manufacturing men footwear net fair value assets acquired liabilities assumed residual amount allocated goodwill arising acquisition totaled thousand euro item unchanged required procedure adopted group analyze impairment indicators required ias goodwill tested annually case events occur suggest impairment loss determine recoverable amount reviewing impairment indicators group considers among factors ratio market capitalization carrying amount december group market capitalization comfortably exceeded carry ing amount equity hence group record impairment item salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting right use assets following table shows breakdown right use assets december december december thousands euro historical cost accumulated depreciation net value historical cost accumulated depreciation net value buildings vehicles equipment assets total following table shows changes right use assets years ended december thousands euro value translation difference increases decreases depreciation impairment value buildings vehicles equipment assets total thousands euro value translation difference increases decreases depreciation value buildings vehicles equipment assets total line item buildings includes right use assets largely relating leases stores accounting approximately right use assets buildings lesser extent leases offices company lodgings premises main increases recorded year refer new leases entered period extensions existing leases mainly stores main decreases concern leases terminated early reduction future lease payments negotiated increase right use assets buildings recognized provision risks charges note includ costs restoration premises leased third parties leases fall within scope ifrs amounted thousand euro thousand euro details cash outflows related leases see notes lease liabilities breakdown nature come statement cost items salvatore ferragamo annual report december required ias provided relevant group procedure presence internal external impairment indicators analyzed least year analyses carried revealed impairment indicators group cash generating units resulted recognition impairment loss thousand euro item financial statements details please refer note impairment property plant equipment right use assets intangible assets finite useful life investment property intangible assets finite useful life breakdown intangible assets finite useful life december shown following table december december thousands euro historical cost accumulated amortization net value historical cost accumulated amortization net value industrial patents use intellectual property rights concessions licenses trademarks development costs others intangible assets finite useful life progress total following tables show changes intangible assets finite useful life years ended december thousands euro value translation diff increases decreases amortization impairment value industrial patents use intellectual property rights concessions licenses trademarks development costs others intangible assets finite useful life progress total salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting thousands euro value translation diff increases decreases amortization reclass impair ment value industrial patents use intellectual property rights concessions licenses trademarks development costs others intangible assets finite useful life progress total intangible assets finite useful life net decrease intangible assets finite useful life progress rose mainly due new investment software application development costs recognized devel opment costs software license costs item industrial patents use intellectual property rights net amortization period item development costs mainly includes capitalization costs development business software applications sap accounting system erp reporting systems commerce platform development costs new pos solution project aimed implementing new cash back office system december group reported intangible assets arising internal development item others primarily includes know arising fair value measurement assets acquired liabilities assumed business combination arts aura occurred net amount thousand euro december item others also includes called key money sums paid obtain use leased property taking existing contracts obtaining withdrawal lessees way able enter new leases lessors net amount thousand euro december required ias provided relevant group procedure presence internal external impairment indicators analyzed least year analyses carried revealed impairment indicators group cash generating units resulted recognition impairment loss thousand euro item financial statements details please refer note impairment property plant equipment right use assets intangible assets finite useful life investment property thousand euro impairment loss refers item development costs expenses capitalized previous years longer fit corporate strategies salvatore ferragamo annual report december impairment property plant equipment right use assets intangible assets finite useful life investment property characterized complex market environment marked ongoing geopolitical tensions macroe conomic uncertainties impact demand luxury goods sector experienced period normalization primarily due challenging global environment wholesale channel slowdown asian markets particularly china along contraction consumer base resulting increased pressure aspirational consumption market environment characterized particularly difficult first half year negative impact operating results required ias group performed analysis identify indicators impairment impairment losses property plant equipment investment property right use assets intangible assets finite useful life preparing checklists aimed identifying presence external indicators general macroe conomic conditions industry market considerations market capitalization significant changes negative effect technological market economic regulatory environment entity operates mar ket asset directed internal indicators significant changes negative effect entity extent way asset used expected used economic performance asset worse expected negative declining cash flows following analysis cgus external internal indicators impairment identified also tested impairment support external advisor shown table past impairment tests carried considering individual geographic areas group operates cgus cash generating units said areas usually coincide group individual legal entities cept multiple legal entities group operate country neighboring territories markets shared homogeneous customer base useful note compared past ferragamo retail hong kong cgu separated china cgu line new distribution model implemented group recoverable amount cgu estimated based value use using discounted cash flow dcf method considers ability generate cash flows fundamental element purpose measuring target cgu discounting basis appropriate discount rate purpose discounting operat ing cash flows rate identified weighted average cost post tax capital therefore application financial method determine recoverable amount subsequent comparison respective carrying amounts resulted cgus tested impairment estimation post tax wacc value oper ating cash flows derived budget cash flows prepared company management terminal value growth rate used projection flows beyond plan horizon board directors salvatore ferragamo approved impairment test procedure wacc growth rate operating cash flows derived budget cash flows prepared company management used impairment test details please refer paragraph basis presentation section impairment reversal impairment property plant equipment investment property intangible assets finite useful life right use assets goodwill salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting main assumptions determine recoverable amount given cgus tested impairment wacc discount rate growth rate ferragamo monte carlo ferragamo france ferragamo suisse ferragamo limited ferragamo deutschland gmbh ferragamo austria gmbh ferragamo retail netherland ferragamo belgique ferragamo usa inc ferragamo chile ferragamo mexico ferragamo brazil roupas acessorios ltda ferragamo argentina ferragamo japan ferragamo korea ltd ferragamo singapore pte ltd ferragamo retail macau limited ferragamo malaysia sdn bhd ferragamo australia pty ltd ferragamo retail taiwan limited ferragamo china ferragamo thailand limited ferragamo retail ltd sake completeness main assumptions used determine recoverable amount cgus tested impairment december also reported salvatore ferragamo annual report december cgus tested impairment wacc discount rate growth rate ferragamo singapore pte ltd ferragamo thailand limited ferragamo australia pty ltd ferragamo korea ltd ferragamo retail macau limited ferragamo retail taiwan limited ferragamo usa group chinese area impairment test prepared group determined impairment loss carrying amount following cgus allocated proportionally property plant equipment intangible assets finite useful life invest ment property right use assets summarized table thousands euro property plant equipment intangible assets finite useful life right use assets investment property total ferragamo retail nederland ferragamo france ferragamo deutschland gmbh ferragamo austria gmbh ferragamo limited ferragamo suisse ferragamo monte carlo ferragamo usa ferragamo mexico ferragamo australia pty ltd ferragamo retail limited ferragamo retail taiwan limited ferragamo retail macau limited ferragamo singapore pte ltd ferragamo thailand limited ferragamo malaysia sdn bhd total furthermore reference esma provisions monitoring effects climate change impact impairment tests non financial assets group developed risk analysis using quantitative tools econometric model estimate relationships macroeconomic climate related variables salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting main economic financial indicators interest cgu analysis reveal significant impact cli mate issues group impairment test finally management prepared sensitivity analysis rate wacc well worst case scenario foresees worsening flows envisaged plan shows lower performance terms revenues could lead impairment cgus already impaired loss china korea cgus yet impaired also confirmed risk analysis related monte carlo simulations non current assets breakdown item non current assets december december set following table thousands euro december december change due tax authorities non current assets total item due tax authorities mainly refer non current portion research development design aesthetic conception technological innovation tax credit well tax credit donations support cultural activities known art bonus parent company eligible item non current assets mainly includes long term portion contributions customers relating fit tailored single brand stores stores stores thousand euro thousand euro december impact relating straight line charging lease income arising operating leases lessor related investment property usa thousand euro thousand euro cember provided relevant standards non current financial assets non current financial assets totaling thousand euro thousand euro december refer guarantee deposits mainly existing leases lessee accounted amortized cost salvatore ferragamo annual report december inventories inventories include following categories thousands euro december december change gross value raw materials accessories consumables provision obsolete inventory raw materials accessories consumables gross value finished products goods resale provision obsolete inventory finished products goods resale total change raw materials compared depends production volumes period relevant provision reflects obsolescence raw materials mainly leather goods accessories longer deemed suitable production plans inventories finished products thousand euro compared december better understanding provisions obsolete inventory calculated please see note basis presentation paragraph discretionary valuations significant accounting estimates net uses allocations provision obsolete inventory follows thousands euro change raw materials finished products total right return assets concerning right return revenues contracts customers line item right return assets amounting thousand euro thousand euro december includes estimated cost products expected returned equal lower previous carrying amount inventories estimated cost production net realizable value less potential future costs associated recovery salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting trade receivables breakdown item set following table thousands euro december december change trade receivables provision bad debt total trade receivables mainly referring wholesale sales lesser extent commerce dtc sales depart ment stores decreased december interest free generally maturity less days related provision bad debt considered adequate meet cases insolvency addition year group reported thousand euro credit losses writing non performing trade receivables changes provision bad debt follows thousands euro value translation difference provisions uses value provision bad debt analysis past due impaired trade receivables reference made note management financial risks credit risk tax receivables breakdown item set following table thousands euro december december change due tax authorities value added tax taxes due tax authorities direct taxes withholding taxes total tax receivables mainly refer vat receivables amounts due tax authorities income taxes relating advances paid year thousand euro year year salvatore ferragamo annual report december current assets breakdown current assets set following table thousands euro december december change receivables prepaid expenses short term hedging derivatives total december receivables mainly include corporate income tax ires advance payment receivable holding company ferragamo finanziaria amount thousand euro payable thousand euro december attributable salvatore ferragamo accrued part italian tax consolidation regime receivables due credit card management companies dtc sales amounting thousand euro thousand euro december amount thousand euro thousand euro december due salvatore ferragamo tuscany region ministry economic development relating innovation agreement succeed project details project please refer directors report operations significant events occurred year section advances suppliers amounting thousand euro thousand euro december prepaid expenses mainly include thousand euro contributions customers relating fit tailored single brand stores stores stores thousand euro insurance premiums thousand euro rents outside scope new standard ifrs short term hedging derivatives amounting thousand euro thousand euro december refer fair value measurement outstanding derivative contracts hedging component entered parent company manage exchange rate risk sales currencies euro salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting current financial assets breakdown item current financial assets set following table thousands euro december december change derivatives current financial assets total item derivatives amounting thousand euro december thousand euro cember refers fair value measurement derivatives non hedging component item current financial assets mainly includes thousand euro thousand euro december relat ing insurance investment multi branch policy quickly converted cash thousand euro thousand euro december relating investment short term italian government bonds buoni ordinari del tesoro made company salvatore ferragamo view moderately diversifying cash management cash cash equivalents breakdown item set following table thousands euro december december change time deposits bank post office sight deposits cash values hand total time deposits banks maturities ranging one day eleven months case promptly liquidated without penalties bank post office deposits refer temporary cash holdings maintained mainly meet imminent payments also group policy use significant part cash surpluses time deposit investments well take intercompany loans regulated current market conditions contain bank debt december group unused credit lines amounting thousand euro december unused credit lines totaled thousand euro details see note interest bearing loans borrowings salvatore ferragamo annual report december purposes consolidated statement cash flows item cash cash equivalents decem ber broken follows thousands euro december december change cash bank sight deposits time deposits bank overdrafts total reconciliation liabilities financing activities reported statement cash flows years ended december thousands euro value cash flow translation difference new leases non cash changes value principal repaid received interest paid received current interest bearing loans borrowings excluding bank overdrafts non current lease liabilities current lease liabilities total liabilities financing activities thousands euro value cash flow translation difference new leases non cash changes value principal repaid received interest paid received current interest bearing loans borrowings excluding bank overdrafts non current lease liabilities current lease liabilities total liabilities financing activities column non cash changes includes reclassification debt non current current portions interest bearing loans borrowings lease liabilities interest interest bearing loans borrowings lease liabilities accrued period well effect early termination leases negotiation reduction future lease payments lease liabilities assets held sale net item assets held sale thousand euro refers property united states board direc tors meeting held august decided sell longer used group operations salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting share capital reserves authorized subscribed paid share capital parent company december totaled euro consisted ordinary shares changes number shares issued treasury share reserve amounting thousand euro consisted shares salvatore ferraga average unit price euro reserve formed purchases made respectively free assignment ceo general manager took place shares respectively pursuance provisions restricted shares plan details see note share based payments explanatory notes financial statements share capital contributions totaling thousand euro referring entirely parent company paid lump sum holding company ferragamo finanziaria reduced due demerger legal reserve thousand euro set previous years refers entirely parent company extraordinary reserve thousand euro refers entirely parent company set retained earnings change recorded period due increase thousand euro relating sal vatore ferragamo profit year decrease thousand euro refers distribution dividends approved salvatore ferragamo cash flow hedge reserve negative thousand euro result measurement finan cial instruments defined cash flow hedges december exchange rate risk hedging transac tions shown net tax effect translation reserve negative thousand euro reflects changes value group interest shareholders equity consolidated companies due changes exchange rates companies functional currencies presentation currency consolidated financial statements retained earnings amounting thousand euro include profits losses capitalized years taking due account consolidation adjustments particular unrealized profit inventories change reserve result several factors decreased thousand euro mainly due capitalization result financial year net result parent company allocated extraordinary reserve thousand euro due recognition put call agreements pre existing minority interests see note put call agreements minority interests financial statements thousand euro due minor effects december items reserves effect ias equity net total thousand euro include amounts recognized valuation differences required ifrss compared local standards group companies item reserves mainly includes stock grant reserve thousand euro three top management incentive plans place december increased thousand euro due cost plans decreased thousand euro due free assignment shares pursuance provisions restricted shares plan details see note share based payments thousand euro increase refers actuarial valuation outstanding defined benefit plans group companies salvatore ferragamo annual report december amounts net tax effects applicable changes shareholders equity items occurred shown related statements low breakdown reserves retained earnings thousands euro reserves made profits translation eserve reserves total december treasury share reserve share capital contributions legal reserve extraordinary reserve cash flow hedge reserve translation reserve retained earnings reserves total december treasury share reserve share capital contributions legal reserve extraordinary reserve cash flow hedge reserve translation reserve retained earnings reserves total salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting interest bearing loans borrowings breakdown current non current interest bearing loans borrowings given thousands euro december december change short term financial payables banks bank overdrafts total december short term financial payables banks increased mainly due greater use uncommit ted credit lines given general credit market conditions well strong cash position group consider appropriate make significant changes financial structure maintaining existing committed uncom mitted credit lines diversified counterparties almost unchanged past group used significant part cash surplus order take extend intercompany loans regulated current market conditions result december group level term loans drawn although amount deemed adequate credit lines remains available use quired group loans credit lines floating rates cost debt generally benchmarked market rate period usually euribor libor sofr benchmark loan currency specific interbank market increased spread depends type credit line used margins applied line best market standards financial instruments used uncommitted credit lines made available currency country residence individual company order meet short term financial needs linked management working capital short medium long term committed revolving credit lines negotiated bilateral basis parent com pany december committed credit lines maximum residual duration twenty nine months weight average residual duration thirteen months credit lines related financial operations spread among leading national international banks end reporting period outstanding drawdowns committed lines drawdowns uncommitted lines less one year far financial payables banks concerned following table provides breakdown type credit lines granted group relevant uses december december thousands euro agreed used agreed used committed credit lines revolving credit lines term loans uncommitted credit lines total salvatore ferragamo annual report december following table provides breakdown changes net financial position december december presented accordance model included consob communication dem july supplemented consob warning thousands euro december december change cash cash equivalents current financial assets cash cash equivalents current financial payables including debt instruments current portion non current financial payables current financial debt current financial debt net non current financial payables excluding debt instruments debt instruments trade current payables non current financial debt net financial debt december current portion non current financial payables included thousand euro current lease liabilities related parties thousand euro december december non current financial payables included thousand euro non current lease liabilities related parties thousand euro december details please refer note transactions related parties limitations use financial resources group committed credit lines currently outstanding require compliance financial covenants financial covenants included local loan agreements entered asian companies even though uncommitted credit lines december financial non financial covenants complied companies involved salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting provisions risks charges breakdown changes item provided following table thousands euro value translation difference additions uses value legal tax disputes provision risks total legal tax disputes refer allocations likely future liabilities relating legal proceedings par ent company proceedings regarding subsidiaries well labor disputes reference litigation estimated amounts group companies expect incur pre litigation settlement use provision legal disputes mainly refers settlement period number legal labor proceedings disputes related parent company subsidiaries particular mention made closure audit tax credits relating research development activities pursuant article italian law decree december salvatore ferragamo benefited tax years signing company tuscany regional unit report formal consultation parties processo verbale contraddittorio august details tax disputes reference made section tax payables directors report operations section significant events occurred year tax customs audits disputes amounts set aside primarily associated tax labor legal disputes arose details tax disputes reference made directors report operations section significant events occurred year tax customs audits disputes provision risks mainly includes allocations likely future liabilities main allocation concerns expenses restoration premises leased third parties recognized pursuant contractual obliga tions relevant leases thousand euro december thousand euro december provision period included thousand euro referring costs restoration premises regards contingent liabilities group level provisions made reference made directors report operations section significant events occurred year tax customs audits disputes employee benefit liabilities following table shows breakdown employee benefits december december thousands euro december december change employee defined benefit liabilities employee benefit liabilities total item employee defined benefit liabilities includes employee severance indemnities salvatore ferragamo employee defined benefit liabilities group foreign companies salvatore ferragamo annual report december following table shows changes employee defined benefit liabilities december december thousands euro employee benefit obligations fair value plan assets employee defined benefit liabilities employee benefit obligations fair value plan assets employee defined benefit liabilities value current service cost financial charges income changes included net profit loss period returns plan assets actuarial loss gain arising financial assumptions demographic assumptions experience based adjustments translation differences changes included comprehensive income contributions paid employer benefits paid changes value end period employee defined benefit liabilities salvatore ferragamo amounted thousand euro thousand euro compared december main financial assumptions used determining present value employee severance indem nities december december annual rate salary increase annual discount rate inflation rate regards demographic assumptions used determining defined benefit liabilities salvatore ferragamo figure used benchmark mortality rate italian population recorded istat less broken age gender meanwhile staff turnover rate estimated per year employee defined benefit liabilities group non italian companies refer ferragamo japan ferragamo tail taiwan limited ferragamo france ferragamo monte carlo sam ferragamo belgique ferragamo mex ico ferragamo usa inc ferragamo thailand limited ferragamo suisse amounted salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting thousand euro thousand euro compared december value net fair value plan assets mainly consisting insurance policies main financial assumptions used determining present value employee benefit liabilities december december annual rate salary increase annual discount rate demographic assumptions used measuring defined benefit liabilities group non italian com panies figure used benchmark mortality rate standard one local population broken age gender staff turnover rate annual frequencies calculated based individual companies data quantitative sensitivity analysis main assumptions december december concerning employee benefit obligation salvatore ferragamo highest impact total employee defined benefit obligations thousands euro change increases decreases increases decreases annual discount rate mortality rate staff turnover rate sensitivity analyses based reasonable changes key assumptions end two report ing periods compared average number employees terms full time equivalents category shown following table full time equivalent top managers middle managers store managers white collars blue collars temporary agency staff total average headcount essentially unchanged salvatore ferragamo annual report december non current liabilities breakdown item set following table thousands euro december december change payables deferred liabilities payables total item payables deferred liabilities amounting thousand euro december largely refer straight lining amounts received lessors costs incurred fit stores december item payables refers amounts payable group employees long term variable bonuses thousand euro security deposits received leases lessor thousand euro december lease liabilities changes lease liabilities occurred broken current non current lease liabilities thousands euro non current current total value translation difference increases decreases repayment lease liabilities interest expense lease liabilities paid changes value end period salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting lease liabilities thousands euro non current current total value translation difference increases decreases repayment lease liabilities interest expense lease liabilities paid changes value end period average weighted ibr applicable leases outstanding december cash outflows related leases see note breakdown nature income statement cost items trade payables breakdown trade payables follows thousands euro december december change trade payables advances customers total trade payables bear interest usually become due days item consists payables relating normal commercial activity carried group companies particu lar costs purchase raw materials parts costs relating manufacturing refund liabilities concerning right return revenues contracts customers line item refund liabilities taled thousand euro december thousand euro december refers liability customers amount products expected returned salvatore ferragamo annual report december tax payables breakdown tax payables follows thousands euro december december change due tax authorities value added tax taxes due tax authorities direct taxes tax payables total december tax payables included parent company liability arising credit amnesty procedure tax periods totaling thousand euro august salvatore ferragamo signed report formal consultation parties processo verbale contraddittorio tuscany regional unit agreed company would comply voluntary payment procedure referred article paragraphs italian legislative decree total amount thousand euro years october salvatore ferragamo submitted request access voluntary payment procedure replacing request submitted october amount thousand euro paid total amount due equal thousand euro legal deadline cember details reference made directors report operations section significant events occurred year tax customs audits disputes current liabilities breakdown item current liabilities set following table thousands euro december december change payables payables employees payables social security institutions accrued expenses deferred income hedging derivatives total item payables employees includes group payables employees amounts accrued yet paid reporting date thousand euro thousand euro december december item payables included corporate income tax ires payable holding company ferragamo finanziaria amount thousand euro receivable thousand euro december attributable salvatore ferragamo accrued part italian tax consolidation regime salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting item payables social security institutions refers amounts due social security institutions paid month end reporting period relating amounts due employees item hedging derivatives shows fair value measurement end year outstanding derivatives hedging component entered parent company manage exchange rate risk details please refer note financial instruments fair value measurement current financial liabilities breakdown item current financial liabilities set following table thousands euro december december change short term derivatives current financial payables total item short term derivatives mainly refers fair value financial derivatives negative mark mar ket reporting date details please refer note financial instruments fair value measure ment item current financial payables refers value put option granted minority shareholders ferragamo japan sell salvatore ferragamo equity interest japanese company measured according terms agreement parties put option recognized group shareholders equity details reference made note put call agreements minority interests salvatore ferragamo annual report december financial instruments fair value measurement classification financial instruments ifrs involves various line items following table sets carrying amount outstanding financial instruments broken category compared corresponding fair values december december classification financial instruments presentation fair value financial assets thousands euro december december carrying amount fair value carrying amount fair value current portion non current portion current portion non current portion financial assets fair value profit loss derivatives non hedging component securities held speculative purposes assets measured amortized cost receivables due credit cards trade receivables guarantee deposits current financial assets cash cash equivalents financial assets fair value comprehensive income derivatives hedging component total salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting financial liabilities thousands euro december december carrying amount fair value carrying amount fair value current portion non current portion current portion non current portion liabilities measured amortized cost trade payables payments account payables banks financial payables payables due shareholders dividends guarantee deposits lease liabilities financial liabilities fair value profit loss derivatives non hedging component financial liabilities fair value comprehensive income derivatives hedging component total pursuant ifrs lease liabilities measured fair value table shows outstanding financial assets liabilities refer short term financial items except lease liabilities taking account nature carrying amount items reasonable approxi mation fair value cases fair value measured according methods classified level hierarchy significance data used determining fair value defined ifrs group uses internal valuation models generally used finance basis prices provided market participants prices collected active markets leading info providers determine fair value derivatives company uses pricing model based market values interest rates exchange rates measurement date guarantee deposits carrying amount reasonable approximation fair value changes measurement methods used compared previous years transfers one level another hierarchy assets liabilities measured fair value group calculates non performance risk risk one parties may fulfill contractual obli gations due possible default derivative expires reference counterparty risk credit value adjustment cva risk debt risk adjustment dva applying market value risk free portfolio taking account type derivatives portfolio solely sales purchases currency forward contracts relevant maturity twelve months group counterparties ratings adjustments immaterial salvatore ferragamo annual report december addition noted compliance isda master agreements existing framework agreements relating derivatives generally possible offset netting outstanding financial assets liabilities arising derivatives table summarizes impacts income statement shareholders equity reference catego financial instruments outstanding group thousands euro net gains losses financial instruments recognized profit loss financial assets liabilities held trading derivatives hedging component net gains losses financial instruments recognized shareholders equity derivatives hedging component interest income expense calculated using internal rate return method accrued financial assets liabilities fvtpl interest income interest expense interest expense lease liabilities expenses fees included effective interest rate regarding financial liabilities interest income accrued financial instruments written provisions impairment financial assets receivables loans salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting comments main income statement items better understanding development income statement items reference also made comments directors report operations relating comparison data revenues contracts customers years ended december december revenues contracts customers totaled thousand euro thousand euro respectively tables provide breakdown channel geographic area main categories revenues contracts customers years thousands euro dtc wholesale licenses services total revenues contracts customers europe north america japan asia pacific central south america total thousands euro dtc wholesale licenses services total revenues contracts customers europe north america japan asia pacific central south america total group discloses disaggregation revenues using qualitative quantitative approach group recognizes revenues sale goods dtc wholesale channels control asset transferred customer generally upon delivery case licenses services revenues recognized service rendered customers salvatore ferragamo annual report december item licenses services includes royalties deriving license agreements marchon timex inter parfums inc groups production distribution salvatore ferragamo branded glasses watches fragrances respectively revenues royalties accounted based stage completion licensee sales rental income investment properties revenues rental income investment properties entirely attributable ferragamo usa group rent ing space owned leased sub leased properties amounted thousand euro totaled thousand euro cost goods sold operating costs cost goods sold operating costs years ended december december totaled thousand euro thousand euro respectively classified function follows thousands euro change cost goods sold style product development logistics costs sales distribution costs communication marketing costs general administrative costs operating costs total total costs substantially line previous year reduction cost goods sold due decline revenues communication marketing costs compared included higher costs related implementation brand relaunch strategy began compared increase sales distribution costs general administrative costs respectively items severely impacted asset impairments recorded thousand euro thousand euro respectively net impairments items would recorded decrease respectively line decrease recorded cost items details please refer note impairment property plant equipment right use assets intangi ble assets finite useful life investment property salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting breakdown nature income statement cost items breakdown nature cost goods sold operating costs set following table thousands euro change raw materials finished products consumables used costs services personnel costs amortization depreciation tangible intangible assets depreciation right use assets write downs tangible intangible assets right use assets investment property charges total costs services decreased compared december mainly due reduction variable costs associated decline sales personnel costs include remuneration related employment relationship ceo general manager addition estimate variable bonus applicable remuneration period share based payment plans details please refer note share based payments explanatory notes consolidated financial statements total thousand euro thousand euro item write downs tangible intangible assets right use assets investment property includes thousand euro impairment loss result impairment tests carried measure recov erable amount assets group cgus details please refer note impairment prop erty plant equipment right use assets intangible assets finite useful life investment property following table shows impacts leases income statement broken nature years thousands euro total total change depreciation right use assets interest expenses lease liabilities income lease liabilities costs relating short term leases costs relating low value leases costs relating leases variable payments included measurement lease liabilities total group leases provide variable lease payments linked revenues generated stores dos leased premises included measurement lease liabilities recognized accrual basis december overall variable lease payments accounted total expense recognized salvatore ferragamo annual report december income statement related leases either included lease liability per accounting standard ifrs variable lease payments depend sales therefore economic performance subsequent years group estimates future variable lease payments continue proportionate sales finished goods general group leases include clauses prohibit subleasing leased asset require group comply financial covenants group early termination options intends exercise consider measur ing lease liability respect renewal options accounting policy determining lease term group considered renewal options intends exercise group reports commitments short term leases expected line reported income statement breakdown operating costs thousands euro change losses disposal tangible intangible assets windfall losses provisions risks charges write current assets taxes operating costs total operating costs decreased compared previous year item income taxes largely related real estate tax ferragamo usa group properties write current assets decreased thousand euro compared refers provi sion bad debt credit losses writing provisions risks charges decreased year year mainly refer labor legal disputes related going legal proceedings well estimated potential outflows group companies required reach pre litigation settlement salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting income income broken follows thousands euro change expense recovery rental income operating properties advertising contributions income revenues gains disposal tangible intangible assets windfall profit total income totaling thousand euro thousand euro december item oth income revenues decreased year year mainly due curtailment benefits support businesses economy granted various governments countries group operates item included thousand euro relating non repayable grant linked innovation agreement succeed project details please refer section sustainable growth fund incentives innovation agreement significant events occurred year directors report operations amounted thousand euro item windfall profit includes thousand euro reversal costs recognized previous years longer due financial operations financial operations broken follows financial charges thousands euro change interest expense discount charges financial charges interest expense lease liabilities expenses lease liabilities losses exchange rate differences financial charges fair value adjustment derivatives total salvatore ferragamo annual report december financial income migliaia euro change interest income financial income income lease liabilities gains exchange rate differences financial income fair value adjustment derivatives total item interest expense includes mainly interest short term bank loans item discount charges financial charges refers mainly bank charges lesser extent financial charges employee benefits relation valuation defined benefit plans pursuant ias discount charges interest expense lease liabilities recognized following introduction ifrs accounting standard amounted thousand euro interest income thousand euro decreased thousand euro compared due lower yields obtained invested cash result general decrease interest rates lower credit exposure gains losses exchange rate differences recorded mainly parent company salvatore ferragamo derive sales currencies euro group companies intercompany level third parties net exchange rate gains amounted thousand euro compared thou sand euro net exchange rate losses financial income charges fair value adjustment derivatives refer premium discount trans actions hedge exchange rate risk undertaken parent company changes fair value non hedging derivatives closely related net gains losses exchange rate differences group reported thousand euro net financial charges fair value adjustment derivatives com pared thousand euro net financial income income taxes taxes recorded income statement follows thousands euro change current taxes deferred taxes use provision taxes previous years total tax rate salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting item use provision taxes previous years refers thousand euro tax audit ferragamo japan relating years thousand euro tax audit ferragamo thailand limited relating tax period costs recognized current financial year details please refer directors report operations significant events occurred year tax customs audits disputes section january salvatore ferragamo group multinational group exceeding revenue threshold million euro two previous four financial years falls within scope pillar two income taxes provided directive adopted italy italian legislative decree december aims ensure global minimum level taxation multinational enterprise groups large scale domestic groups union known global minimum tax based known reasonably estimable information tests required simplified transitional schemes carried regard majority jurisdictions group operates resulted satisfaction least one three tests envisaged fulfilling conditions zeroing pillar two taxes even transitional simplified schemes may apply significant risks exposure supplementary taxation identified deferred taxes include net increase year deferred tax assets tax losses amounting thousand euro mainly related salvatore ferragamo ferragamo usa inc lesser extent subsidiaries europe salvatore ferragamo annual report december deferred tax assets liabilities following table provides breakdown nature deferred tax assets liabilities december december statement financial position comprehensive income income statement thousands euro december december december december deferred tax assets employee benefits tangible assets intangible assets lease liabilities cash flow hedge reserve valuation inventories elimination profit unrealized inventories tax losses taxed provisions temporary differences deferred tax assets deferred tax liabilities employee benefits tangible assets right use assets cash flow hedge reserve valuation inventories temporary differences deferred tax liabilities net effect deferred taxes reflect net tax effect temporary differences carrying amount taxable amount assets liabilities recognition deferred tax assets duly adjusted take account effective possibility realization salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting deferred tax assets previous tax losses recognized assessing actual probability future taxable profit available utilized december december follows december thousands euro expiry previous tax losses tax rate deferred tax assets without time limits within year total december thousands euro expiry previous tax losses tax rate deferred tax assets without time limits within year years total following table shows tax losses group companies december december deferred tax assets calculated probable future taxable profit available group utilize relevant benefits along relevant expiry dates december expiry thousands euro without time limits within year years years years december expiry thousands euro without time limits within year years years years salvatore ferragamo annual report december reconciliation theoretical tax charge effective tax charge follows thousands euro profit loss taxes ires rate force year theoretical tax charge irap effect non deductible costs net non taxable income differences arising different rates foreign countries effects effects non registration deferred taxes patent box impact ires irap effect allocation use provision risks charges taxes previous years effect taxes previous years total differences total taxes effective tax rate earnings per share required ias information provided data used calculate earnings per share diluted earnings per share basic earnings per share calculated dividing profit loss period attributable shareholders parent company weighted average number outstanding shares reporting period considering also weighted average impact treasury shares reporting period amounts used calculate basic diluted earnings per share net profit loss shareholders parent company euro average number ordinary shares basic earnings per share ordinary shares euro average number ordinary shares dilutive effect stock grant plans diluted average number ordinary shares diluted earnings per share ordinary shares euro noted diluted earnings per share year ended december calculated without considering dilutive effect stock option plans loss year salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting information dividends parent company salvatore ferragamo execution resolution shareholders meeting april proceeded distribute shareholders part profits allocated extraordinary reserve equal dividend euro per share ordinary shares outstanding net treasury shares coupon date total euro december dividends fully paid group companies third party minority shareholders approve pay dividends share based payments announced specific press release dated february date company marco gobbetti reached mutual agreement termination employment administrative relationship effective date approval draft financial statements march concurrent waiver sti restricted shares lti special award bonuses details reference made section significant events occurred december restricted shares plan plan description restricted shares plan approved shareholders meeting december amended shareholders meeting april provides assignment shares company ceo gener manager marco gobbetti recipient insofar pertains relevant employment relationship plan aimed strengthening alignment interests recipient group stakehold ers particularly fostering motivation loyalty company group key implemen tation major change group business strategic plan object plan beginning year recipient shall awarded right accrue free charge number restricted shares worth euro annual basis determined dividing said monetary amount average value shares average stock closing prices days prior january year cycle plan lasts one year starting january year january shares restricted shares plan assigned end month vesting period provided line amendments approved shareholders meeting april ordinary session company met following minimum targets called underpins reporting period total revenues level cer current exchange rates reporting year equivalent minimum previous year salvatore ferragamo annual report december group roic positive rer reported exchange rates reporting year roic defined net income period reported group annual consolidated financial statements reporting year divided average adjusted net invested capital adjusted net capital represented net invested capital excluding right use assets classified investment property relationship recipient company still place end vesting period cycle assigned restricted shares still locked months starting january subsequent year without prejudice sell cover mechanism lock obligation continues even relationship terminated reason except death total permanent disability resulting termination relationship shares company awarded free charge plan using treasury shares arising purchases authorized shareholders meeting pursuant articles ter italian civil code restricted shares plan incentive subject post adjustment mechanisms company remuneration policies including claw back malus clauses changes period number rights receive shares assigned december december outstanding start year assigned period iii canceled period exercised period expired period outstanding end period vii exercisable end period average price period indicated since plan free assignment shares changes stock grant reserve december december fair value thousands euro number fair value number fair value rights receive shares assigned ceo general manager start year assigned year exercised year end period march board directors favorable opinion nomination remuneration commit tee determined minimum targets called underpins relating achieved therefore ceo general manager marco gobbetti accrued right receive free charge shares salvatore ferragamo restricted shares awarded january pursuance provisions restricted shares plan restricted shares entirely made treasury salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting shares purchased salvatore ferragamo transferred securities account name ceo general manager april understanding subject twelve month lock period board directors meeting held january granted ceo general manager marco gob betti right receive free charge shares salvatore ferragamo restricted shares effective january restricted shares transferred effect january waived described fair value measurement fair value restricted shares plan determined fair value shares time assignment discounted expected dividends assumptions valuation restricted shares plan ceo general manager follows date assignment january january share price assignment date euro fair value per share assignment date euro special award plan plan description special award plan intended strengthen alignment interests top management ferragamo group stakeholders order create value providing recipients incentive meet compa medium long term targets also reflected strategic plan boosting retention consideration purpose pursuing targets special award plan provides single cycle subject five year performance period timeframe considered appropriate achievement aforementioned long term targets pursued special award plan december date report recipient special award plan ceo general manager company board directors sole discretion may identify additional recipients beginning plan vesting period application case pro rata temporis parameter proportions special award bonus taking account actual period service vesting period among top managers hold hold role directors employees collabora tors company subsidiaries object plan special award plan provides disbursement special award bonus two installments respectively end first three year period january december first target reached end following two year period december second target reached subject existence dates management employment relationship recip ient company subsidiary case case basis disbursement special award bonus installments paid cash remaining company shares installment shall equal percentage determined company competent bodies equal ceo general manager company average capitalization period three months end first three years subsequent two years start relationship average value salvatore ferragamo annual report december portion special award bonus paid free allocation company shares shall take place using treasury shares arising purchases authorized shareholders meeting pursuant articles ter italian civil code specific share capital increases pursuant article para graph italian civil code shares allocated recipients locked months plan incentive subject post adjustment mechanisms company remuneration policies including claw back clauses limited conduct constitutes malice attributable recipients changes stock grant reserve plan cost thousands euro december fair value december fair value rights receive shares assigned ceo general manager start year assigned year end period thousands euro cost share based payment transactions payment shares cost adjustment cost share based payment transactions payment cash following mutual agreement termination relationship company ceo feb ruary simultaneous waiver sti restricted shares lti bonuses known special award following noted reference special award plan first installment three year period due december therefore result waiver disbursements changes accumulated cost recognized per sonnel costs three year period amounts thousand euro second installment two year period also subject waiver yet accrued determine positive change income statement thousand euro reflect failure achieve condition remaining service fair value measurement considering allocation mechanism set measurement concerns total fair value plan influenced degree performance targets related company share price achieved therefore respect accounting standard called market based targets fair value esti mated using stochastic simulation monte carlo method based appropriate assumptions allowed define substantial number alternative scenarios timeframe considered particular scenario projection share price carried starting initial value according brownian geometric movement expected dividends included estimated fair value measurement main assumptions evaluation special award plan ceo general manager date assignment valuation installment involving share based payment reporting dates december december valuation installment involving payment cash fair value installment involving payment cash must measured reporting date salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting measurement assignment january date assignment january share price assignment date euro expected volatility outflow rate rate return salvatore ferragamo shares measurement reporting date december december date assignment january january share price reporting date euro expected volatility outflow rate rate return salvatore ferragamo shares reasonable estimate based historical volatility calculated reference measurement date average interest rate swap rates measurement date respectively three year five year maturities performance restricted shares plan plan description performance restricted shares plan approved shareholders meeting april intended strengthen part recipients overall remuneration package alignment management inter ests group stakeholders boosting specifically motivation loyalty view retention salvatore ferragamo group logic sustainability value creation medium long term reasons plan divided three cycles three year vesting period timeframe seems appropriate achieve objectives performance restricted shares plan reserved selected employees directors collaborators salvatore ferragamo companies belonging ferragamo group considered key pursuit sustainable success medium long term identified board directors salvatore ferragamo consulting nomination remuneration commit tee plan cycles sole discretion recipients december recipients plan rights granted identified among employees salvatore ferragamo following subsidiaries ferragamo usa inc ferragamo brasil roupas acessorios ltda ferragamo japan ferragamo korea ltd ferragamo hong kong ltd ferragamo fashion trading shanghai ltd ferragamo retail limited member board directors among recipients plan board directors sole discretion may identify additional recipients first vesting year cycle application case pro rata temporis parameter proportions rights taking count actual period service vesting period among top managers hold hold role directors employees collaborators company subsidiaries salvatore ferragamo annual report december object plan plan divided three cycles first covers vesting period second covers vesting period third covers vesting period individual cycle performance restricted shares plan includes free allocation recipients certain number initial rights initial rights acquire ership share salvatore ferragamo subject achievement retention performance targets aggregate number additional rights end vesting period definition performance indicators cycle allocation initial rights allocation shares recipients depending level performance indicators achieved lation achievement retention targets end vesting period subject verification fulfillment conditions set performance restricted shares plan vesting initial rights divided amount equal linked achievement retention performance targets performance rights remaining amount equal linked achievement retention targets retention rights corresponding allocation shares subject verification board directors performance rights achievement condition continued employment collaboration management relationship recipient salvatore ferragamo company ferragamo group relationship end vesting period cycle plan achievement one performance indicators end vesting period cycle plan retention rights achievement sole condition continued relationship end vesting period cycle plan relevant indicators vesting performance rights first plan cycle second plan cycle divided economic financial performance indicators line strategic plan esg indicators accordance recommendations corporate governance code market best practices follows average growth relating product net sales defined sum dtc wholesale channel sales shown financial statements net allocations returns excluding revenue components royalties cash flow hedging effect revenues rental income investment properties etc cumulative ebitda three year period first plan cycle three year period second plan cycle defined operating profit shown financial statements amortization depreciation write downs tangible intangible assets right use assets average roic three year period defined net income period reported salvatore ferragamo group annual consolidated financial statements reporting year divided average adjusted net invested capital latter represented net invested capital excluding right use assets assets classified investment property applicable first plan cycle net cash flow difference adjusted net financial debt surplus end three year period adjusted net financial debt surplus end applicable second cycle esg represents level achievement targets related environmental social sustainability group operations targets reference first cycle climate metrics renewable energy company locations worldwide gender pay gap measurement employees salvatore ferragamo subsidiaries north america korea china salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting iii uni pdr certification certification effective adoption gender equality management system main areas culture strategy governance processes opportunities growth inclusion women business gender pay equity parental protection work life balance targets reference second cycle metric supply chain increase supply chain transparency mapping leather suppliers tier acquiring esg information focus social aspects governance measurement gender pay gap certification result definition roadmap implementation initiatives bridge gap iii engagement measuring employee engagement improving number initial rights determined board directors subject favorable opinion nomina tion remuneration committee basis indicator equal multiple percentage fixed remuner ation recipient dividing monetary amount average official price shares days preceding january year cycle plan begins moreover end vesting period cycle plan recipient granted free charge additional number rights calculated basis initial rights accrued cumulative amount divi dends per share distributed shareholders salvatore ferragamo period first day vesting period day preceding date grant shares inclusive allocation shares dependent continued relationship notice period absence particularly serious violations group code ethics leading termination employment shares number corresponding total number rights allocated recipients means communication salvatore ferragamo later thirtieth calendar day following date approval consolidated financial statements last year cycle salvatore ferragamo annual report december shares awarded free charge plan using treasury shares arising purchases authorized shareholders meeting pursuant articles ter italian civil code changes period number rights receive shares assigned december december outstanding start year assigned period iii canceled period exercised period expired period outstanding end period vii exercisable end period average price period indicated since plan free assignment shares changes stock grant reserve fair value thousands euro number fair value number fair value rights receive shares assigned employees salvatore ferragamo start year assigned year canceled year end period rights receive shares assigned employees subsidiaries start year assigned year canceled year end period total rights receive shares assigned start year assigned year canceled year end period regard first cycle vesting period starting date plan took place octo ber following completion verifications preparation communication plan recipients identified board directors formal acceptance recipients plan rights assigned recipients initially identified among employees salvatore ferragamo following subsidiaries ferragamo usa inc ferragamo mexico ferragamo brasil roupas acessorios ltda ferragamo japan ferragamo korea ltd ferragamo hong kong ltd ferragamo fashion trading shanghai ltd ferragamo retail taiwan limited ferragamo retail limited december recipients plan salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting rights granted owing departure seven employees subsidiaries four employees salvatore ferragamo member board directors among recipients plan based forecast data prepared company management represents best estimate group make economic conditions expected three year period first plan cycle estimates achievement economic financial performance targets esg indicators revised adjusting relevant costs also respect required accounting standards case non market condition therefore number rights exercised end plan estimated stock grant reserve december reflects adjustment regard second cycle vesting period starting date plan took place cember following completion verifications preparation communication plan recip ients identified board directors formal acceptance recipients plan rights assigned recipients identified among employees salvatore ferragamo fol lowing subsidiaries ferragamo usa inc ferragamo brasil roupas acessorios ltda ferragamo japan ferragamo korea ltd ferragamo hong kong ltd ferragamo fashion trading shanghai ltd december recipients plan working company member board directors among recipients plan fair value measurement fair value measurement rights assigned based financial market conditions valid measure ment date using methodology consistent risk neutral approach typical plans order quantify additional rights purpose estimating average stock value december december stochastic simulation monte carlo method used based appropriate assumptions allowed define substantial number alternative scenarios timeframe considered particular scenario projection share price carried starting initial value according brownian geometric movement expected dividends included estimated fair value measurement main assumptions evaluation performance restricted shares plan assignment date follows measurement assignment date assignment october share price assignment date euro expected volatility outflow rate rate return salvatore ferragamo shares reasonable estimate based historical volatility calculated reference measurement date derived interest rate swap curve measurement date reference maturity plan salvatore ferragamo annual report december main assumptions evaluation performance restricted shares plan assignment date relative second cycle follows measurement assignment date assignment december share price assignment date euro expected volatility outflow rate rate return salvatore ferragamo shares put call agreements minority interests recent years salvatore ferragamo group expanded largely internal growth areas mainly asia also grown partnerships local distributors relation partnerships sharehold ers agreements regulate dealings partners define governance rules contain provisions put call options shareholders exercise certain conditions december remaining agreement minority interests relates ferragamo japan lows minority shareholders collectively holding since july previously stake sell shares salvatore ferragamo contractually set price case proven financial need case change investment strategies luxury sector consequently since financial statements december group recognizing financial liability take account possibility minority shareholders exercising put option stake liability amounted thousand euro december thousand euro december nil december since salvatore ferragamo group believes access economic benefits associated interest measurement date changes value put recognized directly equity salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting segment reporting accounting standard ifrs operating segments requires detailed information provided operating segment understood component entity whose operating results regularly reviewed entity top management make decisions resources allocated segment assess performance management level organization salvatore ferragamo group based matrix structure divided distribution channel geographic area product category operating segments cannot therefore identified top management reviews financial performance across group whole therefore group activity represented single reportable segment pursuant ifrs thousands euro dtc revenues wholesale revenues net sales cash flow hedging effect revenues licenses services rental income investment properties revenues italy gross profit gross profit personnel costs rental costs amortization depreciation write downs non current assets communication costs costs net income operating profit loss net financial charges income profit loss taxes income taxes net profit loss ebitda regards definition ebitda reference made specific paragraph directors report operations alternative performance measures salvatore ferragamo annual report december thousands euro december december inventories right return assets trade receivables tangible assets investment property right use assets intangible assets finite useful life goodwill assets assets held sale net total assets gross cash cash equivalents current financial receivables net financial debt trade payables refund liabilities liabilities shareholders equity total liabilities shareholders equity net cash cash equivalents current financial receivables regards information required ifrs reference made directors report operations details relevant comments revenues broken geographic area distribution channel product category information relating non current assets excluding financial instruments deferred tax assets bro ken geographical area thousands euro italy europe excluding italy north america japan asia pacific central south america consolidated december december salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting transactions related parties section describes transactions related parties undertaken years ended december december thousands euro revenues cost goods sold operating costs net income financial charges right use assets trade receivables current assets non current financial assets trade payables current non current liabilities lease liabilities holding company ferragamo finanziaria company exercises management coordination salvatore ferragamo related companies palazzo feroni finanziaria lungarno alberghi ferragamo foundation companies connected members board directors dal borro club swan racing borro società agricola borro tuscan bistro rubino sole studio halldis italia related parties massimo ferragamo riccardo ferragamo giovanna ferragamo angiolo anichini directors statutory auditors managers strategic responsibilities directors statutory auditors managers strategic responsibilities total group total ratio salvatore ferragamo annual report december december thousands euro revenues cost goods sold operating costs net income financial charges right use assets trade receivables current assets non current financial assets trade payables current non current liabilities change holding company ferragamo finanziaria company exercises management coordination salvatore ferragamo related companies palazzo feroni finanziaria lungarno alberghi ferragamo foundation companies connected members board directors dal borro club swan racing borro società agricola borro tuscan bistro rubino windows italy sole studio halldis italia harbour city estates limited times square ltd harriman leasing limited lane crawford hong kong limited long jin complex development chengdu ltd dalian times square commercial ltd pedder group limited pedder vision limited ois realty limited shanghai wheelock square development ltd shanghai harriman property management ltd wharf china property management ltd ifs branch chongquing jiayi real estate development ltd chengdu times outlets commerce ltd related parties massimo ferragamo riccardo ferragamo giovanna ferragamo directors statutory auditors managers strategic responsibilities directors statutory auditors managers strategic responsibilities total group total ratio salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting sales purchases related parties carried normal market prices outstanding balances end period backed guarantees generate interest settled cash bank guarantees issued favor palazzo feroni finanziaria thousand euro favor lungarno alberghi thou sand euro favor ferragamo finanziaria thousand euro concerned leasing properties owned said companies guarantees given received relating receivables payables related parties group set aside provision bad debt relation amounts due related parties comments tables holding company ferragamo finanziaria italian tax consolidation regime parent company salvatore ferragamo participates togeth ferragamo finanziaria consolidating entity current assets included thousand euro referring salvatore ferragamo ires net credit relating advances paid unused end year furthermore salvatore ferragamo one outstanding lease contract ferragamo finanziaria concern ing lease industrial shed adjacent osmannoro facility parent company converted design prototyping laboratory development leather goods since falls within scope ifrs lease accounted recognizing right use asset depreciated lease term corresponding lease liability related companies transactions mainly refer trade transactions affected revenues operating costs trade receivables payables right use assets lease liabilities assets liabilities include mainly sale products leases fall within scope ifrs accounted accordingly recognizing right use assets lease liabilities depreciation expense financial charges otherwise lease payments recognized profit loss straight line basis lease term relevant payables included trade payables rendering services particular following transactions noted palazzo feroni finanziaria revenues relevant receivables largely refer administrative services right use assets lease liabilities operating costs finance expense largely refer leases headquar ters florence stores italian chain mostly fall within scope ifrs lungarno alberghi revenues related accounts receivable refer product sales right use assets lease liabilities operating costs interest expense largely refer lease space used store italian dtc chain falls within scope ifrs salvatore ferragamo annual report december ferragamo foundation costs related accounts payable refer thousand euro services provided management salvatore ferragamo historical archive thousand euro thousand euro donations support institutional activities foundation thousand euro companies connected members board directors transactions mainly refer trade transactions affected revenues operating costs trade receivables payables right use assets lease liabilities assets liabilities include mainly sale products leases fall within scope ifrs accounted accordingly recognizing right use assets lease liabilities depreciation expense financial charges otherwise lease payments recognized profit loss straight line basis lease term relevant payables included trade payables rendering services related parties respect related parties costs relevant payables refer cost incurred primarily salvatore ferragamo ferragamo usa inc working relationship place year directors statutory auditors managers strategic responsibilities information directors statutory auditors please refer note fees paid directors statutory ditors managers strategic responsibilities listed following table full name role giacomo ferragamo chief transformation sustainability officer pierre giorgio sallier tour chief financial officer financial reporting manager costs related managers strategic responsibilities refer cost incurred group connection existing employment relationship including variable bonus imputed cost performance restricted shares plan amounted thousand euro compared thousand euro typically managers strategic responsibilities receive non monetary benefits cars mobile phones insurance policies salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting fees paid directors statutory auditors directors thousands euro full name position held term office end term office fees non monetary benefits salaries bonuses incentives fees stock grant total position held committee member leonardo ferragamo chair angelica visconti deputy chair marco gobbetti ceo general manager giacomo ferragamo director patrizia michela giangualano director umberto tombari director laura donnini director niccolò ferragamo director sara ferrero director ernesto greco director fabio gallia director annalisa loustau elia director frédéric biousse director total upon approval financial statements mutual agreement termination employment effective date approval draft financial statements march car mobile phone insurance policies accommodation statutory auditors thousands euro full name position held term office end term office fees position held fees fees received subsidiaries grand total andrea balelli chair paola caramella acting statutory auditor giovanni crostarosa guicciardi acting statutory auditor total upon approval financial statements fees refer amounts due position chair member supervisory body pursuant italian legislative decree please note members board statutory auditors received fees group companies noted directors statutory auditors severance indemnities envisaged salvatore ferragamo annual report december commitments risks breakdown commitments risks follows thousands euro december december sureties guarantees provided third parties third parties interests group companies guarantees provided group companies third parties interests group companies total sureties guarantees provided third parties interests group companies largely refer sureties guarantees leases entered group companies including guarantee million dollars equal thousand euro relating lease ferragamo usa group guarantees provided group companies mainly favor banks guarantee credit lines may used locally public funds disclosure per article paragraphs italian law pursuant article paragraph italian law requirement disclose explanatory notes sums money received financial year way grants contributions paid assignments economic benefits kind public administrations entities referred paragraph arti cle salvatore ferragamo receive grants contributions paid assignments economic benefits kind public administrations accordance article quater italian law decree converted relevant amendments law february respect funds received please refer information national state aid register per article italian law december significant non recurring events transactions salvatore ferragamo group carry significant non recurring transactions signifi cant non recurring events occurred transactions arising atypical unusual transactions group undertake atypical unusual transactions transactions due impor tance size counterparties involved subject transaction means determining transfer price timing event may give rise doubts fairness completeness information provided financial statements conflicts interest safeguarding company equity protection minor ity interests salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting subsidiaries highlights subsidiaries highlights shown table thousands company currency revenues shareholders equity revenues shareholders equity ferragamo australia pty ltd aud ferragamo japan jpy ferragamo korea ltd krw ferragamo espana euro ferrimag limited hkd ferragamo retail limited hkd ferragamo retail taiwan limited twd ferragamo mexico mxn ferragamo retail nederland euro ferragamo fashion trading shanghai ltd cny ferragamo singapore pte ltd sgd ferragamo thailand limited thb ferragamo malaysia sdn bhd myr ferragamo hong kong ltd usd gruppo ferragamo usa usd ferragamo deutschland gmbh euro ferragamo belgique euro ferragamo monte carlo euro ferragamo suisse chf ferragamo limited gbp ferragamo france euro ferragamo chile clp ferragamo austria gmbh euro ferragamo retail india private limited inr ferragamo retail macau limited mop ferragamo moda shanghai ltd cny ferragamo brasil roupas acessorios ltda brl ferragamo argentina ars salvatore ferragamo annual report december significant events occurred december february company marco gobbetti reached mutual agreement termination employ ment administrative relationship effective date approval draft financial statements march announced market date addition announced marco gobbetti entitled receive salary fixed remuneration til date termination maintain certain fringe benefits december marco gobbetti paid within days termination relationships total gross amount thousand euro termina tion employment relationship gross amount thousand euro waivers granted relation ecution termination relationships including particular waiver sti restricted shares lti special award bonuses iii reference governance company period march date appointment new chief executive officer executive powers conferred chair propose distribution delegated powers supported transition advisory committee composed experts consolidated experience sector already worked top management positions within company namely james ferragamo ernesto greco michele norsa take role chairman special advisor consolidate new phase sustainable devel opment brand founding values building work done far aim entering new phase renewal process accelerating implementation strengthening fundamental link brand heritage announcement made february marco gobbetti officially resigned administrative positions company effective march accordance mutual termination agreement reached parties time marco gobbetti duties responsibilities towards company ended accordance mutual termination agreement board directors met day determined opting new member necessary leaving relevant decisions shareholders meeting scheduled april meeting proposal chair favorable opinion nomination remuner ation committee board directors also made certain decisions regarding corporate offices redistributing delegated powers remain effect new chief executive officer identified efficient effective search process specifically executive chair leonardo ferragamo directors james ferragamo ernesto greco granted management powers support chair advisory committee composed directors delegated powers chairman special advisor michele norsa remains confirmed communi cated february light new structure accordance recommendation corporate governance code article board directors regulation patrizia michela giangualano appointed lead independent director meeting held march board directors inter alia approved draft separate financial state ments december consolidated financial statements december directors report operations containing ferragamo group sustainability report prepared accordance new provisions introduced corporate sustainability reporting directive csrd implemented italian legislative decree european sustainability reporting standards esrs prepared efrag issued european commission delegated regulation approved corporate governance report prepared company pursuant article bis consolidated law nance iii approved favorable opinion nomination remuneration committee remuneration policy report fees paid prepared pursuant article ter consolidated law finance salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting article quater annex scheme bis consob regulation amended article corporate governance code listed companies approval next shareholders meeting tails please refer documentation made available company website https group ferragamo com section governance shareholders meetings resolved call ordinary extraordinary shareholders meeting salvatore ferragamo april confirmed appointment cfo financial reporting officer sustainability reporting officer salvatore ferragamo annual report december disclosure pursuant article duodecies issuers regulation thousands euro subject providing service recipient notes total fees type services audit parent company independent auditors parent company services parent company independent auditors parent company network parent company independent auditors parent company subtotal audit parent company independent auditors subsidiaries network parent company independent auditors subsidiaries services network parent company independent auditors subsidiaries subtotal total item primarily refers certification consolidated non financial statement certifications research development credit florence march behalf board directors chair leonardo ferragamo salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting statement pursuant article bis italian legislative decree february consolidated law finance undersigned marco gobbetti capacity chief executive officer pierre giorgio sallier tour capacity financial reporting manager salvatore ferragamo certify also taken account provisions article bis paragraphs italian legislative decree february adeguatezza relazione alle caratteristiche dell impresa adequacy relation company structure effective application administrative accounting procedures preparation consolidated financial statements period january december adequacy administrative accounting procedures preparation consolidated financial statements assessed basis internal control integrated framework issued committee sponsoring organizations treadway commission generally accepted model ternationally also certified consolidated financial statements year ended december prepared accordance applicable international accounting standards endorsed european union pursuant regulation european parliament council dated july subsequent integrations correspond accounting books records suitable provide true fair representation financial conditions results operations cash flows company group companies included consolidation area directors report operations includes reliable analysis operating performance results well situation company group companies included consolidation area well description main risks uncertainties exposed florence march chief executive officer marco gobbetti financial reporting manager pierre giorgio sallier tour salvatore ferragamo annual report december independent auditor report kpmg revisione organizzazione contabile viale niccolò machiavelli firenze telefono email fmauditaly kpmg pec kpmgspa pec kpmg ancona bari bergamo bologna bolzano brescia catania como firenze genova lecce milano napoli novara padova palermo parma perugia pescara roma torino treviso trieste varese verona società per azioni capitale sociale euro registro imprese milano monza brianza lodi codice fiscale milano partita iva vat number sede legale via vittor pisani milano italia kpmg una società per azioni diritto italiano parte del network kpmg entità indipendenti affiliate kpmg international limited società diritto inglese independent auditors report translated english solely convenience international readers accordingly original italian version authoritative independent auditors report pursuant article legislative decree january article regulation april shareholders salvatore ferragamo report audit consolidated financial statements opinion audited consolidated financial statements salvatore ferragamo group group comprise statement financial position december income statement statements comprehensive income changes equity cash flows year ended notes thereto include material information accounting policies opinion consolidated financial statements give true fair view financial position salvatore ferragamo group december financial performance cash flows year ended accordance ifrs accounting standards issued international accounting standards board endorsed european union well italian regulations implementing article legislative decree basis opinion conducted audit accordance international standards auditing isa italia responsibilities standards described auditors responsibilities audit consolidated financial statements section report independent salvatore ferragamo parent accordance ethics independence rules standards applicable italy audits financial statements believe audit evidence obtained sufficient appropriate provide basis audit opinion key audit matters key audit matters matters professional judgement significance audit consolidated financial statements current year matters addressed context audit consolidated financial statements whole forming opinion thereon provide separate opinion matters salvatore ferragamo group independent auditors report december measurement finished products notes consolidated financial statements note basis presentation note inventories key audit matter audit procedures addressing key audit matter consolidated financial statements december include finished products million net allowance inventory write million determining allowance finished products write complex accounting estimate entailing high level judgement affected many factors including characteristics group business sector geographical segments operates market performance fashion trends age collection stock pricing policies sales ability different distribution channels reason believe measurement finished products key audit matter audit procedures included understanding process measurement finished products assessing design implementation material controls checking changes inventories year considering finished products expected life cycle based age analysing documents discussing assumptions adopted calculate allowance finished products write relevant internal departments order understand assumptions underlying expectations finished products sold comparing assumptions historical figures group operating environment assessing appropriateness disclosures provided notes finished products impairment losses property plant equipment right use assets intangible assets finite useful life investment property notes consolidated financial statements note basis presentation note impairment losses property plant equipment right use assets intangible assets finite useful life investment property key audit matter audit procedures addressing key audit matter consolidated financial statements december include property plant equipment right use assets intangible assets finite useful life investment property million million million million respectively group tests assets impairment annually whenever triggering events comparing carrying amounts groups cgus including goodwill related recoverable amounts case asset generate cash inflows largely independent assets group estimates recoverable amount cash generating unit cgu asset allocated analysis triggering events carried accordance impairment testing procedure approved board directors identified indicators impairment certain cgus accordingly group calculated recoverable amount property plant equipment right use assets intangible assets finite useful life result audit procedures also involved specialists included understanding process adopted prepare impairment test checking discrepancies previous year business plans figures actual figures order check accuracy estimation process adopted directors understanding process adopted preparing expected cash flows used impairment testing analysing reasonableness main assumptions used directors prepare expected cash flows assessing reasonableness impairment testing model main assumptions adopted directors including means comparison external data information salvatore ferragamo group independent auditors report december key audit matter audit procedures addressing key audit matter impairment testing carried assistance external advisor group recognised impairment losses million million million property plant equipment right use assets investment property respectively described directors group calculated recoverable amount based expected cash flows cgu discounted using appropriate rate discounted cash flow model impairment testing entails complex accounting estimates high level judgement especially relation expected cash flows reflect management estimates group future performance based internal external sources calculated starting budget cash flow projections prepared management group applied perpetual method growth rate determined basis expected inflation reference market medium long term financial parameters used calculate discount rate reasons due materiality relevant captions believe recoverability property plant equipment right use assets intangible assets finite useful life key audit matter assessing appropriateness disclosures provided notes property plant equipment right use assets intangible assets finite useful life investment property related impairment tests matters management coordination required law parent disclosed key figures latest financial statements company manages coordinates notes consolidated financial statements opinion consolidated financial statements salvatore ferragamo group extend data responsibilities parent directors board statutory auditors collegio sindacale consolidated financial statements directors responsible preparation consolidated financial statements give true fair view accordance ifrs accounting standards issued international accounting standards board endorsed european union italian regulations implementing article legislative decree within terms established italian law internal control determine necessary enable preparation financial statements free material misstatement whether due fraud error directors responsible assessing group ability continue going concern appropriate use going concern basis preparation consolidated financial statements adequacy related disclosures use basis accounting appropriate unless directors believe conditions liquidating parent ceasing operations exist realistic alternative salvatore ferragamo group independent auditors report december collegio sindacale responsible overseeing within terms established italian law group financial reporting process auditors responsibilities audit consolidated financial statements objectives obtain reasonable assurance whether consolidated financial statements whole free material misstatement whether due fraud error issue auditors report includes opinion reasonable assurance high level assurance guarantee audit conducted accordance isa italia always detect material misstatement exists misstatements arise fraud error considered material individually aggregate could reasonably expected influence economic decisions users taken basis consolidated financial statements part audit accordance isa italia exercise professional judgement maintain professional scepticism throughout audit also identify assess risks material misstatement consolidated financial statements whether due fraud error design perform audit procedures responsive risks obtain audit evidence sufficient appropriate provide basis opinion risk detecting material misstatement resulting fraud higher one resulting error fraud may involve collusion forgery intentional omissions misrepresentations override internal control obtain understanding internal control relevant audit order design audit procedures appropriate circumstances purpose expressing opinion effectiveness group internal control evaluate appropriateness accounting policies used reasonableness accounting estimates related disclosures made directors conclude appropriateness directors use going concern basis accounting based audit evidence obtained whether material uncertainty exists related events conditions may cast significant doubt group ability continue going concern conclude material uncertainty exists required draw attention auditors report related disclosures consolidated financial statements disclosures inadequate modify opinion conclusions based audit evidence obtained date auditors report however future events conditions may cause group cease continue going concern evaluate overall presentation structure content consolidated financial statements including disclosures whether consolidated financial statements represent underlying transactions events manner achieves fair presentation obtain sufficient appropriate audit evidence regarding financial information entities business activities within group express opinion consolidated financial statements responsible direction supervision performance group audit remain solely responsible audit opinion communicate charged governance identified appropriate level required isa italia regarding among matters planned scope timing audit significant audit findings including significant deficiencies internal control identify audit salvatore ferragamo group independent auditors report december also provide charged governance statement complied ethics independence rules standards applicable italy communicate relationships matters may reasonably thought bear independence applicable measures taken eliminate threats safeguards applied matters communicated charged governance determine matters significance audit consolidated financial statements current year therefore key audit matters describe matters auditors report information required article regulation april parent shareholders appointed perform statutory audit separate consolidated financial statements years ending december december declare provide prohibited non audit services referred article regulation remained independent parent conducting statutory audit confirm opinion consolidated financial statements expressed herein consistent additional report collegio sindacale capacity audit committee prepared accordance article regulation mentioned report legal regulatory requirements opinion compliance provisions commission delegated regulation parent directors responsible application provisions commission delegated regulation regard regulatory technical standards specification single electronic reporting format esef consolidated financial statements december included annual financial report performed procedures required standard auditing italia order express opinion compliance consolidated financial statements commission delegated regulation opinion consolidated financial statements december prepared xhtml format marked material respects compliance provisions commission delegated regulation due certain technical limitations information included notes consolidated financial statements extracted xhtml format xbrl instance may reproduced identical manner respect corresponding information presented consolidated financial statements xhtml format opinion statement pursuant article bis ter legislative decree article bis legislative decree parent directors responsible preparation group directors report report corporate governance ownership structure december consistency reports related consolidated financial statements compliance applicable law salvatore ferragamo group independent auditors report december performed procedures required standard auditing italia order express opinion consistency directors report certain specific information presented report corporate governance ownership structure required article bis legislative decree consolidated financial statements express opinion consistency directors report excluding section includes consolidated sustainability statement certain specific information presented report corporate governance ownership structure required article bis legislative decree applicable law issue statement material misstatements directors report certain specific information presented report corporate governance ownership structure required article bis legislative decree opinion directors report specific information presented report corporate governance ownership structure required article bis legislative decree consistent group consolidated financial statements december moreover opinion excluding section includes consolidated sustainability statement directors report specific information presented report corporate governance ownership structure required article bis legislative decree prepared compliance applicable law reference statement required article ter legislative decree based knowledge understanding entity environment obtained audit nothing report opinion compliance applicable law extend section directors report includes consolidated sustainability statement conclusion compliance section legislation governing preparation disclosure requirements article regulation included assurance report prepared accordance article bis legislative decree florence march kpmg signed original andrea rossi director audit salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting salvatore ferragamo annual report december separate financial statements december salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting salvatore ferragamo annual report december financial statements statement financial position assets statement financial position liabilities shareholders equity income statement statement comprehensive income statement cash flows statement changes shareholders equity explanatory notes separate financial statements comments main statement financial position items assets shareholders equity liabilities comments main income statement items information disclosure pursuant article duodecies issuers regulation statement pursuant article bis italian legislative decree february consolidated law finance report board statutory auditors independent auditor report separate financial statements december salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting financial statements statement financial position assets euro notes december related parties december related parties non current assets property plant equipment investment property right use assets goodwill intangible assets finite useful life equity investments subsidiaries non current assets non current financial assets deferred tax assets total non current assets current assets inventories right return assets trade receivables tax receivables current assets current financial assets cash cash equivalents total current assets total assets salvatore ferragamo annual report december statement financial position liabilities shareholders equity euro notes december related parties december related parties shareholders equity share capital reserves net profit loss period total shareholders equity non current liabilities provisions risks charges employee benefit liabilities non current liabilities non current lease liabilities deferred tax liabilities total non current liabilities current liabilities trade payables refund liabilities interest bearing loans borrowings tax payables current liabilities current lease liabilities current financial liabilities total current liabilities total liabilities total liabilities shareholders equity salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting income statement euro notes related parties related parties revenues contracts customers change inventories finished products costs raw materials goods consumables costs services personnel costs amortization depreciation write downs operating costs income operating profit loss financial charges financial income profit loss taxes income taxes net profit loss period salvatore ferragamo annual report december statement comprehensive income thousands euro notes net profit loss period income losses subsequently reclassified net profit loss period net gain loss cash flow hedge tax consequences components subsequently reclassified net profit loss period total gains losses subsequently reclassified net profit loss period net taxes income losses subsequently reclassified net profit loss period net gain loss recognition defined benefit plans employees tax consequences components subsequently reclassified net profit loss period total income losses subsequently reclassified net profit loss period net taxes total income losses period net taxes total comprehensive income period net taxes salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting statement cash flows euro notes related parties related parties net profit loss period adjustments reconcile net profit loss net cash used operating activities amortization depreciation write downs tangible intangible assets right use assets investment property income taxes provision employee benefit plans allocation use provision obsolete inventory allocation use provisions risks charges losses net provisions bad debt losses gains disposal tangible intangible assets write revaluation equity investments subsidiaries stock grant plan costs interest expense interest expense lease liabilities interest income dividend income subsidiaries non monetary items changes operating assets liabilities trade receivables inventories trade payables tax receivables payables employee benefits payments assets liabilities net income taxes paid interest expense interest expense lease liabilities paid interest received dividends received net cash used operating activities cash flow investing activities purchase tangible assets purchase intangible assets proceeds sale tangible intangible assets equity investments subsidiaries net change current financial assets net cash used investing activities cash flow financing activities net change financial payables repayment lease liabilities dividends paid net cash used financing activities net increase decrease cash cash equivalents opening net cash cash equivalents increase decrease cash cash equivalents closing net cash cash equivalents salvatore ferragamo annual report december statement changes shareholders equity note thousands euro share capital treasury share reserve legal reserve share capital contributions extraordinary reserve revaluation reserve cash flow hedge reserve effect ias equity reserves net profit loss period total shareholders equity profit loss comprehensive income losses total comprehensive income loss allocation result distribution dividends treasury share award stock grant reserve note thousands euro share capital treasury share reserve legal reserve share capital contributions extraordinary reserve revaluation reserve cash flow hedge reserve effect ias equity reserves net profit loss period total shareholders equity profit loss comprehensive income losses total comprehensive income loss allocation result distribution dividends treasury share award stock grant reserve salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting explanatory notes separate financial statements corporate information salvatore ferragamo incorporated italy registered office via tornabuoni florence joint stock company italian law adopts conventional administration control model shareholders meet ing board directors board statutory auditors company shares traded euronext milan formerly known mercato telematico azionario organized operated borsa italiana company one main players luxury sector dates back separate financial statements year ended december approved board directors salvatore ferragamo march company active creation production sale luxury goods men women footwear leather goods apparel silk goods jewels accessories product range also includes fragrances eyewear watches manufactured license third parties salvatore ferragamo also active licensing salvatore ferragamo brand salvatore ferragamo group present countries around world directly subsidiaries countries sells products primarily network salvatore ferragamo single brand stores either directly operated dos operated third parties well significant well established pres ence department stores multi brand specialty stores commerce channel details company main activities reference made directors report operations salvatore ferragamo annual report december management coordination pursuant article seq italian civil code company salvatore ferragamo subject man agement coordination ferragamo finanziaria whose consolidated financial statements available registered office florence via tornabuoni compliance provisions article bis paragraph italian civil code key data finan cial statements holding company ferragamo finanziaria december given ferragamo finanziaria euro december december statement financial position assets fixed assets current assets accruals deferrals total assets liabilities shareholders equity shareholders equity share capital reserves profit loss year provisions risks charges payables accruals deferrals total liabilities shareholders equity income statement value production costs production difference value costs production financial income charges profit taxes income taxes year current deferred profit loss year salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting statement compliance ifrs basis presentation separate financial statements salvatore ferragamo prepared compliance inter national financial reporting standards ifrs issued international accounting standards board iasb endorsed european union force reporting date explanatory notes separate financial statements supplemented extra information requested consob provisions issued implementation article italian legislative decree resolutions dated july communication dem dated july pursuant article issuers regulation document november applicable italian civil code term ifrs used herein includes international accounting standards ias still force well interpretations issued ifrs interpretation committee previously referred international financial reporting interpretations committee ifric standing interpretations committee sic financial statement structure adopted separate financial statements salvatore ferragamo december comprise statement financial position income statement statement comprehensive income statement cash flows statement changes shareholders equity related explanatory notes statement financial position income statement statement cash flows presented euro statement comprehensive income statement changes shareholders equity related explanatory notes presented thousands euro unless otherwise indicated company statement financial position distinguishes current non current assets liabilities non current assets refer positive balances realized months include intangible tan gible financial assets well deferred tax assets current assets refer positive balances realized within months non current liabilities refer liabilities due months including financial payables provisions risks charges employee benefit liabilities well deferred tax liabilities current liabilities refer liabilities due within months including short term portion medium long term loans provisions risks charges employee benefit liabilities income statement shown accordance classification costs nature statement cash flows prepared according indirect method presented compliance ias breaking financial flows operating investing financing activities noted reference consob resolution july communication dem july financial statements show significant transactions related parties order provide better disclosure amounts expressed euro rounded nearest thousand euro unless otherwise indicated salvatore ferragamo annual report december accounting standards general notes separate financial statements prepared according historical cost principle except deriv atives financial assets classified held sale recorded fair value going concern basis accounting standards adopted separate financial statements december adopted previous years exception international accounting standards newly adopted details please refer changes international accounting standards discretionary valuations significant accounting estimates preparation separate financial statements entailed use estimates assumptions determining assets liabilities assessing contingent assets liabilities using best available information actual results might fully correspond estimates main estimated data refer provisions obsolete inventory raw materials accessories finished products since company prod ucts subject market trends changes fashion trends product inventories end season subject impairment specifically provision obsolete inventory finished products reflects man agement estimate expected impairment losses products collections previous seasons considering ability sell company various distribution channels generally impairment assumptions involve percentages impairment become greater older collections reflect decline selling prices secondary channels mainly outlets one hand hand decrease probability selling time goes percentage based statistical analysis change inventory age assessment consistency use percentages time case changes available information percentages reassessed adjusted needed provision obsolete raw materials reflects management estimates decline probability used based calculation slow moving raw materials impairment reversal impairment non current assets details please refer section impair ment reversal impairment property plant equipment right use assets intangible assets finite useful life investment property equity investments goodwill provision bad debt relating wholesale sales linked solvency standing customers company well established consolidated relations company uses matrix calculate expected credit losses ecls trade receivables provisioning rates based days past due customer category grouped different segments present similar historical loss experiences instance geographic area product type customer type rating guarantees matrix initially based company historical observed default rates company calibrates matrix adjust historical credit loss experience forward looking information instance forecast economic conditions ample country risk expected deteriorate next year lead increased number defaults country concerned historical default rates adjusted accordingly every reporting date company updates historical observed default rates analyzes changes forward looking estimates assessment correlation historical observed default rates forecast economic conditions ecls significant estimate amount ecls sensitive changes circumstances forecast economic conditions company historical credit loss experience forecast economic conditions may also representative customer actual default future details analysis credit risks please refer notes provisions risks charges specifically expected future expenses costs ongoing foreseeable dis putes salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting rights return adjust revenues contracts customers envisaged contracts sell items customary business practices company concluded expected value method propriate estimate amount variable consideration sales goods rights return considering large number contracts similar characteristics useful life property plant equipment intangible assets well ensuring development costs meet recognition measurement requirements intangible assets employee benefits measured using actuarial assumptions main actuarial assumptions refer ence made note employee benefit liabilities deferred tax assets recognized extent probable future taxable profits available temporary differences tax losses utilized regard company management estimates likely timing amount future taxable profit fair value financial instruments chief among derivative instruments company uses exten sively hedge exchange rate risk details assumptions underlying measurement fair value reference made notes fair value share based payment plans settled either cash shares company uses provide incentives group management details assumptions underlying measurement share based payment plans fair value reference made note risk defeat disputes involving company company recognizes liability facing legal disputes lawsuits believes proba ble require outflow financial resources reliable estimate made amount potential losses given uncertainty surrounding outcome proceedings hard reliably estimate outflow resources required settle therefore amount provisions legal disputes may change result future developments outstanding proceedings company mon itors status ongoing lawsuits proceedings consults legal advisors well legal experts moreover company assesses uncertain tax positions required recognizes liability reference ifrs company capacity lessee made significant accounting estimates reported lease term identification lease term significant issue form regulations business practices related property leases vary significantly one jurisdiction another assessing impact estimated lease term options renew lease end non cancellable period requires using assumptions ifrs interpretation committee clarified purposes identifying enforceable period lessee shall consider contractual moment parties may exercise right terminate contract without incurring penalties immaterial concept penalty interpreted strictly contractual sense shall rather viewed considering economics contract company considered conclusions identifying lease term defining lease term company considered whether either lessee lessor renewal termination options respectively renewal options exercisable parties agreement exist company considered whether significant economic disincentives refuse renewal request accordance paragraph ifrs options exercisable one two parties company considered paragraph ifrs applying considering specific facts circumstances well estimate whether reasonably certain option exercised resulted following annual leases automatically renewed except event termination average term five years considered based historical analyses cases company exercise option lease term end second renewal period considered based historical evidence fact renewal beyond second term could considered reasonably certain salvatore ferragamo annual report december lease commencement date company reassesses lease term upon occurrence significant event significant change circumstances within control company affects whether lessee reasonably certain exercise option previously included determination lease term exercise option previously included determination lease term definition discount rate leases entered company contain implicit interest rate company calculated incremental borrowing rate ibr determine ibr use discount future lease payments company identified existing leases portfolio leases similar characteristics termined relevant ibr interest rate risk free instrument italy leases entered based different lease terms increased group credit spread estimates assumptions made directors assistance company departments propriate independent experts periodically reviewed recognizing necessary impact change income statement period estimates assumptions differ actual circumstances impairment reversal impairment property plant equipment right use assets intangible assets finite useful life investment property equity investments goodwill company constantly monitors business assess whether indication non current assets may impaired including goodwill investment property intangible assets finite useful life including intangible assets progress tangible assets right use assets equity investments goodwill intangible assets progress tested impairment least year december often circumstances indicate carrying amount may subject impairment required ias reporting date company performs analysis identify indicators pairment impairment losses property plant equipment investment property right use assets intangible assets finite useful life goodwill equity investments following analyses cgus showing impairment indicators tested impairment regard equity investments impairment test carried considering individual geographic areas subsidiaries operate cash generating units cgus impairment loss goodwill determined measuring recoverable amount cash generating unit group cash generating units goodwill allocated indicators impairment exist carrying amount asset reduced recoverable amount higher fair value less costs sale value use recoverable amount determined indi vidual asset unless asset generates incoming cash flows largely independent incoming cash flows assets groups assets case asset tested part cgu asset belongs calculation fair value less costs sale based data available relating sale transactions free independent parties involving similar assets observable market prices less extra costs relating disposal asset value use calculated based discounted cash flow models using pre tax discount rate reflects current market estimate cost money time specific risks asset value use present value future cash flows dcf discounted cash flow expected generated asset recoverable amount cgu estimated based value use using discounted cash flow dcf method considers ability generate cash flows fundamental element purpose measuring target cgu discounting basis appropriate discount rate salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting main assumptions determine recoverable amount given discount rate weighted average cost capital wacc estimated according formulation unconditional extended capital asset pricing model capm cost equity cost debt estimated sum risk free rate country reference interest coverage ratio panel companies estimating beta debt equity ratio growth rate determined inflation rate expected prevail medium long term reference market terminal value determined using perpetuity model long term growth rate cash flows taken estimates made management represent best estimate made company economic conditions set plan period also taking account studies sector analysts flows include restructuring activities company current obligation significant future investments increase yield assets make cash generating unit valued recoverable amount dependent discount rate used discounted cash flow model also expected future incoming cash flows growth rate used purposes extrapolation plan forecasts cover maximum timeframe five years line provisions ias long term growth rate used estimate terminal value asset assumed equal rate inflation expected prevail medium long term main markets group operates published major databases available therefore according suggested doctrine growth rate thus defined represents growth rate company reasonably maintain indefinitely taking account maturity sector geographical markets group operates case difficult sustain growth economy whole long term recoverable amount dependent discount rate used discounted cash flow model also expected future incoming cash flows growth rate used purposes extrapolation impairment loss recognized recoverable amount lower carrying amount results valuations carried determine recoverable amount cgus tested impairment compared related carrying amount net carrying amount cgu including allocated goodwill higher recoverable amount impairment loss recognized difference two amounts cgu loss recognized following order reduction carrying amount goodwill allocated unit zeroed reduction refers cash generating unit group cash generating units goodwill allocated proportional reduction carrying amount unit assets excluding current assets already measured recoverable amount recognition impairment goodwill cannot reversed subsequent reporting periods noted part impairment process sensitivity analysis also carried aims eval uate results obtained even main cash flows wacc parameters growth rate change disclosure impairment based provisions impairment test procedure approved board directors january company analyzed presence impairment indicators impairment losses relation salvatore ferragamo annual report december non current assets whether reasons led recognition impairment losses previous years longer exist company reported operating loss decline previous year adversely affected complex market environment uncertainty surrounding demand luxury goods leads maintaining cautious stance regarding near term expectations analysis identified signs weakness cgus performing expectations consequently tested impairment result impairment tests determined impairment loss million euro details please refer note equity investments subsidiaries document climate change impact assessment stated main risks uncertainties section directors report operations group con tinued process initiated implement climate change risk management framework initiative undertaken enhance group capacity identify potential financial impacts ensure effective management adaptation challenges posed climate change analyses provided assessment risk associ ated climate change focused main climate related exposures group relevant sites key business suppliers specifically analyses quantified short term financial impact extreme weather events terms lost turnover due business interruption property damage costs furthermore possible evolution exposure assets within scope analyses climate change medium long term studied analyzed depth according reference climate scenarios rcp ssc identifying significant deviations short term analyses years group strengthened proactive approach dynamics associated climate change several measures implemented mitigate potential exposure sustainable transition risks include group manages risks temporary business interruption due external events natural catastrophes taking insurance policies cover direct damage company assets related indirect losses due business interruption performance restricted shares plan approved shareholders meeting april reserved selected employees directors collaborators salvatore ferragamo companies belonging ferragamo group considered key pursuit sustainable success medium long term provides esg goals including related environmental sustainability tails please refer note share based payments consolidated financial statements workshop product circularity organized involved colleagues engaged rethinking selection products eco design perspective results initiative presented ceo creative director entire esg steering committee marking significant step forward towards sustainable innovative company strategy group launched life cycle assessment lca project three iconic products analyze depth impact procurement production project included engagement activity suppliers actively involve ensure transparent assessment along production chain data collection activity regard main textile tanning suppliers increased focusing use chemicals production phases order monitor mitigate impacts related supply chain risks information please refer sustainability report directors report operations salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting company continue strengthen assessment potential impacts climate change risk group assets processes making possible appropriately address implement control measures help limit exposure risks property plant equipment tangible assets recorded historic cost including additional costs directly attributable necessary use asset purpose bought cost includes costs replace part plant equipment incurred comply recognition criteria net value cost less accumulated depreci ation accumulated impairment parts replaced plant equipment recognized income statement time replacement maintenance repair expenses involve creation value extension residual life assets recognized income statement year incurred otherwise capitalized tangible assets shown net related accumulated depreciation accumulated impairment determined accordance method described depreciation calculated straight line basis according estimated useful life asset reviewed annual basis changes necessary applied prospective basis useful lives main classes tangible assets follows useful life buildings years plant equipment years industrial commercial equipment years assets office furniture furnishings years electronic machines years historic collection years vehicles years leasehold improvements shorter useful life asset remaining term asset lease agreement residual value asset useful life depreciation methods applied reviewed end year adjusted prospective basis necessary significant parts tangible assets different useful lives components accounted sep arately land whether free construction attached buildings recorded separately depreciated since unlimited useful life carrying amount property plant equipment subject review record impairment events changed situations indicate carrying amount cannot recovered indication impairment carrying amount exceed presumed realizable value assets written salvatore ferragamo annual report december reflect realizable value realizable value property plant equipment higher net sale price value use defining value use expected future cash flows discounted using pre tax discount rate reflects current market estimate cost money time specific risks asset realizable value asset generate broadly independent cash flows determined relation cash generating unit asset belongs impairment recognized income statement amortization depreciation write costs impairment reversed reasons longer exist carrying amount item property plant equipment initially recognized significant component derecognized disposal date buyer obtains control future economic benefits expected use disposal gain loss arising derecognition asset calculated difference net carrying amount asset consideration received included profit loss item derecognized investment property tangible assets held income purposes instrumental use shown specific item called investment property accordance ias recognized cost assets fall category repre sented land buildings parts buildings held owner lessee financial operating lease order lease types property classified separately property assets held investment property shown net relevant accumulated depreciation impairment useful life investment property years carrying amount investment property subject review record impairment events changed situations indicate carrying amount cannot recovered impairment recognized income statement amortization depreciation write costs impairment reversed reasons longer exist investment property derecognized disposal date buyer obtains control vestment permanently unusable future economic benefits expected disposal amount consideration taken account calculate gain loss derecognition investment property determined accordance transaction pricing requirements ifrs leases inception contract company assesses whether contract contains lease contract contains lease provides right control use specific asset period time exchange con sideration company uses exemption ifrs intangible assets company lessee company applies single accounting model leases lessee except short term leases leases low value assets company recognizes financial lease liability right use asset right use assets company recognizes right use asset lease commencement date date derlying asset available use lessee right use assets measured cost less accumulated salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting depreciation impairment losses determined described adjusted remeasurement lease liabilities cost right use assets includes amount recognized lease liability initial direct costs incurred lease payments made commencement less lease incentives received estimate costs incurred company restoring underlying asset original condition required lease unless company reasonably certain obtain ownership leased asset end lease term depreciation calculated straight line basis shorter lease term useful life asset follows useful life buildings years equipment assets years vehicles years right use assets tested impairment events changes circumstances indicate carrying amount cannot recovered indication impairment carrying amount exceed presumed realizable value assets written reflect realizable value realizable value higher net sale price value use defining value use expected future cash flows discounted using pre tax discount rate reflects current market estimate cost money time specific risks asset realizable value asset generate broadly independent cash flows determined relation cash generating unit asset belongs impairment recognized come statement amortization depreciation write costs impairment reversed reasons longer exist lease liabilities commencement date lease company recognizes lease liability measured present value future lease payments made lease term future payments include fixed payments less lease incen tives receivable variable lease payments depend index rate amounts expected paid residual value guarantees lease payments also include exercise price purchase option reasonably certain exercised company payments penalties terminating lease company reasonably certain exercise option terminate variable lease payments depend index rate case company mainly depend sales volumes continue recognized costs services profit loss calculating present value future payments company uses incremental borrowing rate ibr lease commencement date subsequently lease liability increased reflect accretion interest reduced lease payments made addition lease liability remeasured account change terms lease short term leases leases low value assets company elected apply ifrs short term leases leases lease term months less leases underlying asset low value less euro payments leases recognized expense straight line basis accordance terms conditions lease company lessor lease contracts company largely retains risks benefits ownership asset classified operating leases salvatore ferragamo annual report december initial direct costs incurred obtaining operating lease capitalized recognized expense lease term basis lease income business combinations goodwill business combinations accounted using purchase method acquisition cost valued total transferred consideration measured fair value acquisition date amount minority interests acquired company business combinations entities subject joint control fall within scope application ifrs business combination entities subject joint control economic nature mere corporate reorganization company apply business combination accounting method called pooling interest thus aggregating assets liabilities book values line line basis intangible assets intangible assets recorded among assets purchase cost use asset likely generate future income cost asset reliably established intangible assets acquired business com binations recorded fair value established acquisition date value reliably established tangible assets finite useful life amortized straight line basis estimated useful life useful life reviewed annual basis changes necessary applied prospective basis intangible assets shown net related accumulated amortization accumulated impairment deter mined accordance method described useful lives main categories intangible assets finite useful life following useful life industrial patents intellectual property rights years concessions licenses trademarks years development costs years know years intangible asset derecognized disposal date buyer obtains control future economic benefits expected use disposal gain loss arising derecognition asset calculated difference net disposal proceeds carrying amount asset included profit loss carrying amount intangible assets subject review record impairment events changed situations indicate carrying amount cannot recovered impairment recognized income statement amortization depreciation write costs impairment reversed reasons longer exist development costs research costs charged income statement incurred development costs incurred relation particular project capitalized company demon strate technical possibility completing intangible asset way make available use salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting sale well intention complete asset order use sell means generate prob able future income availability technical financial resources complete development ability make reliable assessment cost attributable asset development development period asset reviewed annually assess impairment following initial recog nition development costs assessed cost less accumulated amortization impairment loss amortization asset starts development completed asset available use amortized refer ence period project likely generate revenues company industrial patents intellectual property rights industrial patents intellectual property rights refer costs software licenses costs filing registration trademarks patents relating company products concessions licenses trademarks similar rights item refers costs filing registration salvatore ferragamo trademark purchase costs amortized useful life right purchased know item includes know acquired business combination arts aura recog nized fair value acquisition date charge amortized years financial instruments financial instrument contract gives rise financial asset one entity financial liability equity instrument another entity general rule ifrs entity shall recognize financial asset financial liability balance sheet entity becomes party contractual provisions instrument financial assets initial recognition financial assets classified according contractual cash flow characteristics business model held assessment contractual cash flow characteristics known sppi solely payments principal interest test conducted instrument however identical financial instruments may analyzed groups since outcome test would different individual separate assessment company business model managing financial assets refers company manages financial assets order generate cash flows business model determines whether cash flows result collection contractual cash flows sales proceeds based characteristics financial assets classified four categories financial assets amortized cost debt instruments financial assets fair value comprehensive income reclassification cumulative gains losses debt instruments financial assets fair value comprehensive income without reclassification cumulative gains losses disposal equity instruments financial assets fair value profit loss initial recognition company measures financial asset fair value plus case financial asset fair value profit loss transaction costs trade receivables contain significant financing salvatore ferragamo annual report december component company applied practical expedient measured transaction price determined ifrs initial recognition company measures financial assets amortized cost fair value com prehensive income fair value profit loss financial assets amortized cost debt instruments company measures financial assets amortized cost following conditions met financial asset held within business model whose objective hold financial assets order collect contractual cash flows contractual terms financial asset give rise specified dates cash flows solely payments principal interest principal amount outstanding financial assets amortized cost subsequently measured using effective interest method subject impairment gains losses recognized statement profit loss asset derecognized modified impaired company financial assets amortized cost include trade receivables loans subsidiaries guarantee deposits financial assets fair value comprehensive income debt instruments company measures debt instruments fair value comprehensive income following conditions met financial asset held within business model objective holding collect contractual cash flows selling contractual terms financial asset give rise specified dates cash flows solely payments principal interest principal amount outstanding debt instruments fair value comprehensive income gains losses recognized comprehensive income except changes resulting exchange differences impairment losses well reversals recognized statement profit loss upon derecognition cumulative fair value change recognized comprehensive income recycled profit loss amounts recognized prof loss would recognized financial assets always measured amortized cost company currently type instruments investments equity instruments ifrs equity instruments including derivatives instruments shall measured fair value profit loss assumption give rise contractual cash flows required pass sppi test however upon initial recognition company may irrevocably classify equity investments equity instruments fair value comprehensive income meet definition equity instruments per ias financial instruments presentation held trading classification determined individual instrument category includes equity investments subsidiaries equity investments equity investments subsidiaries measured purchase cost compliance provisions ias indications cost longer recoverable full part carrying amount reduced relevant recoverable amount accordance provisions ias subsequently loss salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting reversed reduced carrying amount increased new estimated recoverable amount cannot exceed original cost financial assets fair value profit loss general ifrs defines classification fair value profit loss residual category applied financial assets contractual characteristics measured amortized cost fair value comprehensive income however company may initial recognition irrevocably designate financial asset measured fair value profit loss would eliminate significantly reduce accounting mismatch would otherwise arise recognizing gains losses asset different bases although may considered accounting policy choice standard require applying con sistently similar transactions financial instruments fair value profit loss carried statement financial position fair value net changes fair value recognized statement profit loss category includes derivative instruments derivatives including separated embedded derivatives classified financial instruments held trading unless designated effective hedging instruments derivative embedded non derivative hybrid contract financial liability non financial host separated host accounted separate derivative economic characteristics risks closely lated host separate instrument terms embedded derivative would meet definition derivative hybrid contract measured fair value profit loss embedded derivatives measured fair value changes fair value recognized profit loss reclassification financial asset reclassified either change terms contract significantly modifies cash flows would otherwise expected company changes business model managing financial assets reclassification shall applied prospectively date reclassification without restating pre viously recognized gains losses interest derecognition financial asset applicable part financial asset part group similar financial assets primar ily derecognized removed company statement financial position rights receive cash flows asset expired company transferred right receive cash flows asset assumed obligation pay received cash flows full without material delay third party company transferred substantially risks rewards asset company neither transferred retained substantially risks rewards asset transferred control asset company transferred rights receive cash flows asset entered pass arrangement whereby retains contractual rights receive cash flows asset assumes contrac tual obligation pay cash flows one recipients evaluates extent retained risks rewards ownership risks rewards ownership financial assets substantially transferred company derecognizes financial asset recognizes rights obligations created tained separate assets liabilities otherwise financial asset continues recognized neither transferred retained substantially risks rewards lost control asset company con tinues recognize asset extent continuing involvement control financial assets retained company derecognizes financial asset recognizes rights obligations created retained salvatore ferragamo annual report december separate assets liabilities transferred asset associated liability measured basis reflects rights obligations company retained continuing involvement takes form guarantee transferred asset measured lower original carrying amount asset maximum amount consideration company could required repay impairment financial assets company recognizes allowance expected credit losses ecls debt instruments held fair value profit loss specifically impairment model applies financial assets measured amortized cost fair value comprehensive income financial assets fair value profit loss addition following types instruments also fall within scope model loan commitments measured fvtpl financial guarantees within scope ifrs lease receivables within scope ifrs contract assets within scope ifrs ecls based difference contractual cash flows due accordance contract cash flows company expects receive discounted approximation original effective interest rate cash flows company expects receive depend probability default counterparty amount expects able recover expected cash flows therefore include cash flows sale collateral held credit enhancements integral contractual terms general approach standard impairment financial assets determined based monitor ing counterparties credit standing credit exposures significant increase credit risk since initial recognition ecls provided credit losses result default events possible within next months month ecl credit exposures significant crease credit risk since initial recognition loss allowance required credit losses expected remaining life exposure irrespective timing default lifetime ecl trade receivables contract assets company applies simplified approach calculating ecls therefore company track changes credit risk instead recognizes loss allowance based lifetime ecls reporting date specifically financial assets company adopts practical expedient provision matrix calculate impairment established matrix system based historical collection information adjusted forward looking factors specific debtors economic environment means determine expected credit losses financial liabilities financial liabilities classified measured amortized cost using effective interest rate method except financial liabilities classified fair value profit loss meet conditions measurement amortized cost case financial liabilities held trading addition compa may initial recognition irrevocably designate financial liability fair value profit loss would result relevant information eliminates significantly reduces measurement recognition inconsistency sometimes referred accounting mismatch would otherwise arise measuring assets liabilities recognizing gains losses different bases salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting group financial assets liabilities managed measured fair value accordance risk management policy based investment strategy information group provided internally basis key management personnel derivatives negative fair values also classified measured fair value profit loss except held effective hedging instruments financial liabilities recognized initially fair value plus case loans borrowings well payables directly attributable transaction costs company financial liabilities include trade payables loans borrowings including bank overdrafts derivative financial instruments measurement financial liabilities depends classification financial liabilities fair value profit loss financial liabilities amortized cost loans borrowings financial liabilities fair value profit loss financial liabilities fair value profit loss clude financial liabilities held trading financial liabilities designated upon initial recognition fair value profit loss financial liabilities classified held trading incurred purpose settling transferring near term category also includes derivative financial instruments entered company designated hedging instruments hedge relationships defined ias separated embedded derivatives also classified held trading unless designated effective hedging instruments gains losses liabilities held trading recognized statement profit loss financial liabilities designated fair value profit loss upon initial recognition criteria ifrs satisfied upon initial recognition company designated financial liability fair value profit loss financial liabilities amortized cost loans borrowings initial recognition loans measured amor tized cost using effective interest rate method gains losses recognized profit loss liabilities derecognized well amortization process amortized cost calculated taking account discount premium acquisition fees costs integral part effective interest rate effective interest rate amortization included finance costs statement profit loss possible reclassify financial liabilities derecognition financial liability derecognized obligation liability discharged canceled expires existing financial liability replaced another lender substantially different terms terms existing liability substantially modified exchange modification treated derecognition original liability recognition new liability difference respective carrying amounts recog nized statement profit loss offsetting financial instruments financial assets financial liabilities offset net amount reported statement financial position currently enforceable legal right offset recognized amounts intention settle net basis realize assets settle liabilities simultaneously derivative financial instruments hedge accounting initial recognition subsequent measurement company uses derivative financial instruments currency forward contracts hedge financial risks lating exchange rate fluctuations affecting commercial transactions foreign currency derivative financial salvatore ferragamo annual report december instruments initially recognized fair value date derivative contract entered subsequently measured fair value derivatives carried financial assets fair value positive financial liabilities fair value negative allowed ifrs paragraph company elected apply ias purpose hedge accounting keeping provisions ias ifrs hedging derivatives eligible hedge accounting inception hedge formal designation documentation hedging relationship entity risk management objective strategy undertaking hedge hedge likely highly effective cash flow hedges forecast transaction subject hedge must highly probable must present exposure measurement cash flows may impact income statement effectiveness reliably measured hedge highly effective various accounting periods designated derivatives measured fair value derivatives possess necessary features accounted accordance hedge accounting following accounting treatments applied fair value hedge derivative designated hedge changes current value asset lia bility firm commitment may impact income statement change fair value hedging instrument recognized income statement change fair value hedged instru ment attributable hedged risk recognized part carrying value item hedged also recognized income statement case firm commitment fair value component related hedged risk recognized asset liability adjusting line item statement financial position affected firm commitment upon realization cash flow hedge derivative designated hedge changes cash flows asset liability transaction considered highly likely firm commitment could affect income statement effective portion gains losses derivative recorded shareholders equity accounted statement comprehensive income accumulated gain loss reversed sharehold ers equity charged income statement period hedged transaction recorded gain loss associated hedge part hedge become ineffective recorded income statement ineffectiveness recognized conditions apply hedge accounting occur effects arising fair value assessment derivative charged directly income statement cash cash equivalents cash short term deposits refer cash hand sight short term deposits latter case originally expir ing three months treasury shares treasury shares recognized cost deducted equity gain loss recognized profit loss purchase sale cancellation treasury shares difference purchase value consideration event sale grant recognized reserve equity inventories inventories measured lower purchase production cost determined using weighted average cost method net realizable value purchase cost includes ancillary charges production cost includes direct salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting costs share indirect costs may reasonably attributable products presumed net realizable value normal estimated sale price less estimated costs complete product estimated costs complete sale provisions risks charges provisions risks charges allocated company must meet current legal implicit obligation resulting past event whose occurrence deemed likely whose amount reasonably estimated company believes allocation provision risks charges partly fully reimbursed example case risks covered insurance policies indemnity recorded separately among assets almost certain case income statement cost allocation shown net amount recorded indemnity significant effect discounting value money allocations discounted using pre tax discount rate reflects appropriate specific risks liabilities discounting carried increase allocation due passing time recorded financial charge employee benefit liabilities company net obligation deriving defined benefit plans calculated separately plan estimat ing amount future benefit employees accrued return service provided current previous years benefit discounted order calculate current value actuarial gains losses recorded directly statement comprehensive income provided ias effective january budget law relevant enabling legislation introduced significant changes employee severance indemnities requiring allocate either supplementary pension schemes treasury fund italian social security institute inps starting said date accordance ias severance indemnities classified defined contribution plans amounts paid provision employee severance indemnities december still qualify defined benefit plans actuarial assessment liabilities entrusted independent actuary fair value ifrs establishes single source guidance fair value measurement relevant disclosures measurement required permitted fair value price would received sell asset paid transfer liability orderly transaction market participants measurement date fair value asset liability measured using assumptions market participants would use pricing asset liability assuming market participants act economic best interest fair value measurement non financial asset takes account market participant ability generate eco nomic benefits using asset highest best use selling another market participant would use asset highest best use company uses valuation techniques appropriate circumstances sufficient data available measure fair value maximizing use relevant observable inputs minimizing use unob servable inputs assets liabilities whose fair value measured recognized categorized based following fair value hierarchy salvatore ferragamo annual report december level quoted prices unadjusted active markets identical assets liabilities entity access measurement date level inputs quoted prices included within level observable asset liability either directly indirectly level valuation techniques using unobservable inputs asset liability fair value measurement categorized entirety level fair value hierarchy lowest level input significant entire measurement methods determining fair value reference financial instruments accounting disclosure purposes summarized reference main financial instrument categories applied derivatives adequate pricing models adopted based market values interest exchange rates receivables payables unquoted financial assets financial instruments expiring one year discounted cash flow method applied discounting expected cash flows given current interest rate creditworthiness conditions quoted financial instruments market value reference date used costs costs recognized related goods services sold consumed period systematically allocat possible identify future usefulness advertising research costs accordance ias charged full income statement service provided delivered company costs recognized according nature considering standards applicable ifrs revenues contracts customers revenues contracts customers recognized control goods services transferred cus tomer amount reflects consideration company expects receive exchange goods services sale goods revenues sale goods recognized control good passes customer generally upon shipment depending terms applied company considers whether contract includes promises representing performance obligations part consideration transaction must allocated example guarantees determining transaction price sale goods company considers effects variable consideration significant financing components non cash consideration consideration payable customer right return contracts allow customers return goods within specified period time company uses expected value method estimate goods returned method better predicts amount variable consideration company entitled guidance ifrs regarding constraints rec ognition variable consideration applies determination amount variable consideration included transaction price company adjusts revenues goods expected returned recog salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting nizes liability refunds right return asset corresponding adjustment changes inventories finished products recognized also right recover goods customers royalties revenues royalties derive sales based royalties arrangements customers therefore recog nized based stage completion licensee sales accordance terms agreement right return assets right return asset represents company right recover goods expected returned customers asset measured previous carrying amount inventories less costs recovery including impair ment returned products company regularly updates estimated amount returns customers well additional impairment returned products refund liabilities refund liability represents obligation refund consideration received received customer measured based amount company expects refunded customer company updates estimates refund liabilities corresponding change transaction price end reporting period share based payment plans company recognizes additional benefits employees directors collaborators holding key posi tions equity settled share based payments provide physical delivery shares cash settled plans based share value equity settled transactions accordance provisions ifrs share based payments rights favor employees valued fair value recipient informed allocation value determined using binomial model model takes account features rights duration exercise price conditions etc well value underlying shares grant date expected volatility right exercised certain period vesting period occurrence specific performance conditions cost transactions settled equity instruments together corresponding increase shareholders equity recorded period conditions relating achievement objectives provision service satisfied ending time recipients fully accrued right receive payment vesting date end year fair value rights determined previously reviewed date estimate number rights vest expiry updated accumulated costs recorded transactions end year vesting date proportionate expiries vesting period best available estimate number options actually vest cost revenue corded income statement year represents change accumulated cost recorded start end year cost recorded rights ultimately vest except case rights whose allocation subordinate market conditions impact dilution rights yet exercised reflected calculation dilution earnings per share salvatore ferragamo annual report december cash settled transactions case cash settled share based transactions cost cash settled transactions initially valued fair value date recipient informed allocation fair value recognized income state ment period vesting recognition corresponding liability liability settled fair value recalculated year end date settlement date charging related changes income statement approach used account vesting conditions measuring equity settled transactions also applies cash settled transactions financial income charges financial income charges recorded accrual basis according interest accrued net value related financial assets liabilities using effective interest rate dividends dividends recognized shareholders right receive payment arises government grants government grants recognized reasonable certainty said grants received conditions said grants met grants related income shown positive component income state ment income taxes current taxes current income taxes determined relation taxable income compliance rates provisions force payables current taxes recognized statement financial position net tax advances paid company regularly assesses position taken income tax filings tax regulations subject interpretation makes provisions appropriate current taxes relating items recorded directly shareholders equity statement comprehensive income also charged directly shareholders equity statement comprehensive income deferred taxes deferred taxes calculated temporary differences existing reporting date fiscal values taken reference assets liabilities values recognized financial statements deferred tax liabilities recorded taxable temporary differences except deferred tax liabilities derive initial recognition goodwill asset liability trans action business combination time transaction effect profit loss year calculated financial statement purposes profit loss calculated tax purposes reference taxable temporary differences relating equity interests subsidiaries associated companies joint ventures reversal temporary differences may managed likely occur foreseeable future deferred tax assets recorded deductible temporary differences tax assets liabilities carried forward extent adequate future tax profits likely exist make possible use deductible temporary differences tax assets liabilities carried forward except salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting deferred tax asset connected deductible temporary differences arises initial recognition set liability transaction business combination time transaction affect profit loss year calculated financial statement purposes profit loss calculated tax purposes reference taxable temporary differences relating equity interests subsidiaries associated companies joint ventures deferred tax assets recorded extent deductible temporary differences likely reversed immediate future adequate tax profits temporary differences may used value recorded deferred tax assets reviewed reporting date reduced extent longer likely sufficient tax profits available future allow part credit used unrecognized deferred tax assets reviewed annually reporting date recorded extent become likely tax profit sufficient ensure deferred tax assets recovered determine whether taxable profit available deductible temporary difference utilized entity shall consider whether local tax laws restrict sources taxable profits may make ductions reversal deductible temporary difference deferred tax assets liabilities measured basis tax rates expected applied year assets realized liabilities settled taking account rates force ready issued basically issued reporting date current deferred taxes relating items recorded directly shareholders equity statement com prehensive income also charged directly shareholders equity statement comprehensive income deferred tax assets liabilities offset legal right offset current tax assets current tax liabilities deferred taxes refer fiscal entity tax authority value added tax revenues costs assets recorded net value added tax except tax applied purchase goods services non deductible case recognized part purchase cost asset part cost item recognized income statement refers trade receivables payables invoice already issued received shown including tax amount net amount indirect taxes sales purchases may recovered paid inland revenue office recorded among tax receivables payables depending nature balance put call agreements minority interests put call agreements financial instruments compliance provisions ifrs fair value financial instruments traded active market determined reporting date ref erence market prices operators prices ask price long term positions bid price short term positions without deduction transaction costs financial instruments traded active market fair value determined using valuation tech nique technique may include use recent transactions market conditions reference current fair val another instrument substantially analysis discounted cash flows valuation models salvatore ferragamo annual report december accounting policy chosen company envisages recognition income statement recogni tion financial liabilities fair value valuation date changes international accounting standards company adopted advance standards interpretations improvements issued yet force amendments ias classification liabilities current non current iasb issued amendments ias clarify requirements classifying liabilities current non current including relation liabilities subject covenants define disclosures required financial statements amendments effective annual periods beginning january must applied retrospectively amendments impact company amendments ifrs leases lease liability sale leaseback september iasb issued amendments ifrs clarify parameters lessor seller use recognize variable lease payments sale leaseback transaction amendments introduce new model accounting variable payments require lessor seller reassess potentially reformulate sale leaseback transactions entered amendments effective annual periods beginning january must applied retrospectively sale leaseback transactions entered date initial application ifrs earlier application permitted provided fact disclosed amend ments impact company amendments ias statement cash flows ifrs financial instruments may iasb issued amendments ias statement cash flows ifrs financial instruments clarify characteristics financial arrangements suppliers require additional disclosures finan cial statements detailed information required intended enable readers financial statements understand impact financial arrangements suppliers liabilities cash flows exposure liquidity risk amendments effective annual periods beginning january however earlier application permitted provided fact disclosed transition provisions clarified application required interim reporting year first application therefore amendments impact company finan cial statements standards issued yet force set standards preparing separate financial statements already issued yet force list refers standards interpretations company expects likelihood applicable future company intends adopt standards come force amendments ias effects changes foreign exchange rates august iasb issued amendment ias effects changes foreign exchange rates clarify currency exchangeable currencies company estimate spot exchange rates currency cannot exchanged amendments require detailed disclosures enable readers financial statements understand precise exchange rate used estimation process nature impact financial statement data using estimated exchange rate risks company related non exchangeability currencies amend ments effective annual periods beginning january earlier application permitted company currently assessing impact amendments financial statements salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting ifrs presentation disclosure financial statements april iasb issued ifrs supersedes ias presentation financial statements ifrs intro duces new requirements presentation income statement including specific totals subtotals entities required classify costs revenues income statement five categories operating investing financing income taxes discontinued operations first three new standard also requires disclosures based new definition management defined performance measures mpms subtotals costs revenues includes new provisions aggregating disaggregating financial information based identified roles primary financial statements pfs notes amendments also made ias statement cash flows including changing starting point determining cash flows operating activities using indirect method profit loss operating profit loss also removing option classify cash flows related dividends interest moreover consequential amendments made number accounting standards ifrs amendments standards apply annual reporting periods beginning january earlier application permitted subject disclosure ifrs apply retrospectively company currently assessing impact amendments financial statements explanatory notes financial statements ifrs subsidiaries without public accountability disclosures may iasb issued ifrs allows eligible entities meet certain requirements elect reduce disclosure requirements continuing apply recognition measurement disclosure quirements ifrs accounting standards eligible entity must subsidiary defined ifrs end financial year must public accountability must ultimate intermediate parent produces consolidated financial statements available public use comply ifrs accounting standards ifrs apply annual reporting periods beginning january earlier applica tion permitted considering shares company publicly listed company eligible application ifrs amendments classification measurement financial instruments amendments ifrs ifrs may iasb issued document amendments classification measurement financial instruments amendments ifrs ifrs clarifies number issues arose post plementation review ifrs including accounting treatment financial assets whose returns vary esg objectives met green bonds particular amendments aim clarify classification financial assets variable returns linked environmental social corporate gov ernance esg objectives criteria used assessing sppi test establish date settlement liabilities electronic payment systems date liability settled however entity permitted adopt accounting policy allows deem financial liability settled cash using electronic payment system discharged settlement date specified criteria met amendments iasb also introduced additional disclosure requirements investments equity struments measured fvoci amendments apply annual periods beginning january company assessing whether amendments impact financial statements annual improvements volume july iasb published document called annual improvements volume includes clarifica tions simplifications corrections amendments aimed improving consistency several ifrs accounting standards amended standards salvatore ferragamo annual report december ifrs first time adoption international financial reporting standards ifrs financial instruments disclosures related guidance implementation ifrs ifrs financial instruments ifrs consolidated financial statements ias statement cash flows amendments apply annual periods beginning january earlier application permit ted company assessing whether amendments impact financial statements contracts referencing nature dependent electricity amendment ifrs ifrs december iasb issued amendment called contracts referencing nature dependent electricity amendment ifrs ifrs assist entities reporting financial effects contracts purchase electricity produced renewable sources often structured power purchase agreements based contracts amount electricity generated purchased may vary due uncontrollable factors weather iasb made targeted amendments ifrs ifrs amendments include clarification regarding application use requirements type contracts criteria allow recognition contracts hedging instruments new disclosure requirements enable users financial statements understand effects contracts entity financial performance cash flows amendments apply annual periods beginning january earlier application permit ted company assessing whether amendments impact financial statements salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting management financial risks ifrs salvatore ferragamo monitors also group basis exposure different measure various financial risks related business particular market risk category includes following types risk interest rate risks relating impact changes market interest rates exchange rate risks due operations currency areas accounting currency liquidity risks relating availability financial resources ease access credit market con nected need fulfill group financial commitments short term credit commercial counterparty risks representing risks default commercial financial obligations assumed various counterparties arising normal commercial transactions use financing risk hedging activities financial risks managed basis guidelines defined company compliance goals set centrally board directors enables supervision coordination operations individual group companies also effective financial planning control systematic monitoring levels exposure financial risks well trend cash management provision useful indications order optimize management dealings reference credit institutions accordance directives control management individual financial risks ensured tervention aimed containing impact also using derivatives derivatives used hedging purposes accordance ifrs derivatives classified held trading although entered solely hedging purposes financial liabilities largely consist trade payables payables banks financial payables lease liabilities following introduction accounting standard ifrs management liabilities largely aimed financing group operations interest rate risk movements market interest rates affect level net financial charges market value financial assets liabilities interest rate risk classified follows flow risk refers variability interest income expense received paid following changes mar ket interest rates price risk relating sensitivity market value assets liabilities changes level interest rates refers fixed rate assets liabilities salvatore ferragamo mainly exposed flow risk risk recording income statement increase financial charges due unfavorable change interest rates company uses third party financial resources largely form floating rate bank debt deploys available liquidity mainly money market instruments changes market interest rates affect cost loans yield uses thus level company financial charges income fair value bank debt represented short term floating rate loans cost bank debt benchmarked mar ket rate generally euribor libor sofr period benchmark loan currency specific interbank salvatore ferragamo annual report december market period increased spread depends type line credit used december drawdowns margins applied line best market standards cash surpluses held current accounts used short term time deposits opened reference banks bear interest euribor libor sofr rate benchmark currency specific interbank market cash pooling structures invested intercompany loans regulated current market conditions order limit group exposure banking system counterparty risk impact financial charges company view moderately diversifying cash management made insurance investment read ily adjustable type policy investment short term italian government bonds buoni ordinari del tesoro insurance investment multi branch policy quickly converted cash sensitivity interest rate risk monitored keeping overall exposure due consideration coordinat management debt available liquidity relevant due dates reporting date outstanding interest rate risk hedge derivatives aimed transforming float ing rate debt fixed rate debt company make use derivatives previous year company carried sensitivity analysis interest rate risk exposed considering financial statement items give rise floating rate interests assuming parallel increases decreases benchmark interest rate curves individual currency proportion respective annual volatility observed market result analysis undertaken risk factors generate significant exposure interest rate curves canadian dollar swiss franc euro british pound sterling hong kong dollar japanese yen mexican peso singapore dollar thai baht dollar showed potential losses profits income statement amounting thousand euro compared potential losses profits income statement thousand euro possible upward downward change market benchmark interest rates continues minor albeit increasing impact company income statement salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting sensitivity analysis interest rate risk floating rate items market risk december thousands euro underlying asset increase decrease underlying interest rates impact income statement positive change cad chf eur gbp hkd jpy mxn sgd thb usd total negative change cad chf eur gbp hkd jpy mxn sgd thb usd total december positive change cad chf eur gbp jpy mxn sgd thb usd total negative change cad chf eur gbp jpy mxn sgd thb usd total salvatore ferragamo annual report december exchange rate risk exposure exchange rate risk derives operations currencies accounting currency euro particular exchange rate risk classified based nature exposure effects oper ating results due different relevance costs revenues foreign currency compared moment price conditions defined economic risk due translation trade financial receivables payables denominated foreign currency settlement risk company operates internationally therefore exposed risks arising exchange rates fluctuations impact operating results value shareholders equity objective exchange rate risk hedging policy minimize economic settlement exchange rate risks risks arising possibility currency parity changes unfavorably period moment commitment pay right collect currency euro expected future date definition budgets setting price lists arrangement orders registration accounting document invoicing moment receipt payment effectively occurs generating effect terms trans lation differences impact income statement keeping exchange rate risk management policy adopted recent years company manages exchange rate risk arising business line provisions exchange rate risk management policy risk management objectives periodically established systematic hedging commercial flows arising sales forecast currencies euro subsidiaries third parties aim mitigating expected risk variability margins arising sales relating future collections group strong presence international markets including commercial companies located coun tries use currencies euro mainly dollar chinese renminbi year ended december around company net revenues denominated dollars around chinese renminbi around japanese yen around south korean around mexican peso year ended december around company net revenues denominated dollars around chinese renminbi around south korean around japanese yen around mexican peso currency risks originate mainly exports company dollars chinese renminbi japanese yen south korean mexican peso relation business model group incurs significant part costs euro costs relating production management corporate structure borne salvatore ferragamo revenues costs recorded group companies mainly expressed local currencies respective reference markets change rate risk management mostly centralized company direct invoicing subsidiary counting currency order hedge entering derivatives exposure arising sales currencies euro particular company exposed changes exchange rate euro dollar relation sales dollars north american market markets mainly asian ones context company exposed changes exchange rates currencies sales denom inated implies risk corresponding value euro revenues determined moment collection insufficient cover production costs achieve desired profit margin risk heightened significant period moment sale prices collection set moment revenues converted euro extends months company manufacturing company enters currency forward contracts options establish con version rate advance predefined range conversion rates future dates estimated period max salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting imum months years examination company hedged exchange rate risk almost exclusively currency forward contracts end basis market expectations conditions establishing price lists case beginning sales campaign hedging arranged amount generally forecast sales foreign currency proportion calculated based expected overall exposure rather individual foreign currency period following preparation price list total outstanding hedge added orders effectively managed put production way company limits commercial risk risk arising sales volumes excluding risk arising exchange rate addition company controls exposure related exchange rate risk management procedures asian latin american subsidiaries purchase goods dollars euro sell currency coun try operate values contracts involved nonetheless significantly lower con cluded directly company mitigate exchange rate risk arising sales accounting currency various subsidiaries addition company controls hedges exposure deriving changes due exchange rate fluctuations value assets liabilities denominated currencies accounting currency individual company may affect income statement typically intercompany financial receivables payables offset ting financial receivables payables denominated currency financial instruments whose recognition accordance ifrs follows rules fair value hedge profit loss arising subsequent assessments present value hedging instrument recognized income statement well profit loss hedged item hedges company future transactions foreign currencies classified cash flow hedges pursuant ifrss accounted accordance hedge accounting rules following table shows changes cash flow hedge reserve years ended december december exchange rate risk thousands euro opening balance increases recognition new positive effectiveness decreases recognition new negative effectiveness decreases due transfer effectiveness cash flow hedge reserve recognition income profit loss increases due transfer effectiveness cash flow hedge reserve recognition cost profit loss closing balance overall reserve consists value changes hedges expected transactions foreign currency creased thousand euro whereas decreased thousand euro changes value reflect performance euro main hedged currencies decrease mainly due strengthening dollar chinese renminbi second half year amount transferred reserve revenues sales occurrence underlying flows positive total thousand euro compared positive thousand euro hedge interrupted hedges one hundred percent effective whole duration underlying asset salvatore ferragamo annual report december hedge may become ineffective result differences timing cash flows hedged item hedging instrument changes expected amount cash flows hedged item hedging instrument following tables set average time horizon relevance risk factor exchange rate hedges held company end number foreign currencies tables shows exchange rate risk management centralized parent company cash flow analysis hedged items december thousands less month months months months months total expected flows currency forward contracts notional amount usd average forward exchange rate eur usd notional amount cad average forward exchange rate eur cad notional amount cny average forward exchange rate eur cny notional amount gbp average forward exchange rate eur gbp notional amount hkd average forward exchange rate eur hkd notional amount jpy average forward exchange rate eur jpy notional amount krw average forward exchange rate eur krw notional amount mxn average forward exchange rate eur mxn salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting december thousands less month months months months months total expected flows currency forward contracts notional amount usd average forward exchange rate eur usd notional amount cad average forward exchange rate eur cad notional amount cny average forward exchange rate eur cny notional amount gbp average forward exchange rate eur gbp notional amount hkd average forward exchange rate eur hkd notional amount jpy average forward exchange rate eur jpy notional amount krw average forward exchange rate eur krw notional amount mxn average forward exchange rate eur mxn salvatore ferragamo annual report december cash flow analysis hedged items impact income statement december thousands total expected flows within months months months months year year exchange rate risk expected sales usd expected sales jpy expected sales gbp expected sales mxn expected sales cad expected sales cny expected sales hkd expected sales krw december thousands total expected flows within months months months months year year exchange rate risk expected sales usd expected sales jpy expected sales gbp expected sales mxn expected sales cad expected sales cny expected sales hkd expected sales krw important hedge terms volumes notional amounts foreign currency hedged aimed mitigating risk generated fluctuations exchange rate euro following currencies dollar chinese renminbi japanese yen south korean mexican peso time viewpoint hedges lasting one year showed nil values december well cember tables set financial recognition dates underlying assets currency dates impact income statement recognized determined upon invoicing estimated flows object exchange rate hedge december impact hedged items statement financial position salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting sensitivity analysis sensitivity analysis carried order assess company exposure exchange rate risk undertaken basis percentage increases decreases exchange rates various currencies proportional annual volatility applied significant financial assets liabilities expressed original currencies par ticular analysis involved currencies following items exchange rate derivatives trade receivables trade payables cash cash equivalents short long term financial liabilities short long term lease liabilities addition table shows important impacts related currencies refers exposure exchange rate risk accordance ifrs requirements exchange rates considered currencies whose changes generate impact income statement shareholders equity absolute terms one million euro salvatore ferragamo annual report december sensitivity analysis exchange rate risk december thousands euro increase decrease underlying foreign exchange rates underlying asset impact income statement impact shareholders equity eur jpy derivatives positive change non derivatives eur usd derivatives non derivatives eur krw derivatives non derivatives eur cny derivatives non derivatives eur mxn derivatives non derivatives eur gbp derivatives non derivatives eur thb derivatives non derivatives eur cad derivatives non derivatives eur brl derivatives non derivatives eur hkd derivatives non derivatives total eur jpy derivatives negative change non derivatives eur usd derivatives non derivatives eur krw derivatives non derivatives eur cny derivatives non derivatives eur mxn derivatives non derivatives eur gbp derivatives non derivatives eur thb derivatives non derivatives eur cad derivatives non derivatives eur brl derivatives non derivatives eur hkd derivatives non derivatives total salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting december thousands euro increase decrease underlying foreign exchange rates underlying asset impact income statement impact shareholders equity eur jpy derivatives positive change non derivatives eur usd derivatives non derivatives eur krw derivatives non derivatives eur cny derivatives non derivatives eur mxn derivatives non derivatives eur gbp derivatives non derivatives eur thb derivatives non derivatives eur cad derivatives non derivatives eur brl derivatives non derivatives eur hkd derivatives non derivatives total eur jpy derivatives negative change non derivatives eur usd derivatives non derivatives eur krw derivatives non derivatives eur cny derivatives non derivatives eur mxn derivatives non derivatives eur gbp derivatives non derivatives eur thb derivatives non derivatives eur cad derivatives non derivatives eur brl derivatives non derivatives eur hkd derivatives non derivatives total salvatore ferragamo annual report december table shows positive change listed exchange rates eur jpy eur usd eur krw eur cny eur mxn eur gbp eur sgd eur thb eur cad eur brl eur hkd would resulted profit thousand euro december thousand euro december hand negative change exchange rates would caused loss thousand euro december thousand euro december increase shareholders equity caused derivatives designated hedges result assumed positive exchange rate changes would amounted thousand euro december thousand euro december decrease shareholders equity result assumed negative exchange rate changes would totaled thousand euro december thousand euro december sensitivity analysis carried described significantly affected market volatility exchange rates considered points material impact company shareholders equity potential change value hedging derivatives temporarily allocated cash flow hedge reserve recognized profit loss follow ing years expected sales occur higher lower impact income statement statement financial position years consideration largely results trend individual currencies reference dates change value financial assets liabilities exposed fluctuations exchange rates liquidity risk liquidity risk represents risk company cannot meet financial obligations due problems obtaining funds current market price conditions funding liquidity risk liquidating assets market find nec essary financial resources asset liquidity risk first consequence negative impact income statement company forced incur addi tional costs meet commitments factors mainly influence company liquidity resources generated absorbed current erating investing activities possible distribution dividends expiry possibility renewal debt expiry possibility liquidation financial investments surplus cash liquidity needs surpluses monitored daily basis company treasury department order guar antee effective sourcing financial resources adequate investment liquidity negotiation management credit lines coordinated company group level aim satis fying short medium long term needs individual companies according efficiency cost effective ness criteria december outstanding uncommitted short term credit lines number banks made available company meet financing needs connected management working capital total thousand euro well committed short medium long term credit lines negotiated bilateral basis company total thousand euro entirely revolving december salvatore ferragamo drawdowns either committed uncommitted credit lines december parent company net financial position amounting surplus thousand euro also considering lease liabilities ifrs accounting standard december company net financial position amounted surplus thousand euro december committed credit lines maximum residual maturity twenty nine months weighted average residual maturity thirteen months parent company current committed revolving credit salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting lines require compliance financial covenants details see note interest bearing loans bor rowings limitations use financial resources credit lines related financial operations spread among leading national international banks always company policy sign constantly maintain various diversified banks total amount committed credit lines considered consistent needs individual companies suitable ensure time liquidity needed satisfy comply group financial commitments estab lished economic conditions well guaranteeing availability adequate level operational flexibility expansion programs also policy salvatore ferragamo use significant part cash surpluses time deposit investments well take intercompany loans regulated current market conditions contain increase bank debt related financial charges cash surpluses used reference banks short term usually one day three months time deposit transactions referring euribor libor sofr rate period benchmark investment currency specific interbank market liquidity investments carried prime objectives making resources available short notice event maturities longer three months relevant contracts allow promptly liquidating without penalties neutralizing risk capital losses avoiding speculative transactions view mod erately diversifying cash management company maintained investment short term italian government bonds buoni ordinari del tesoro thousand euro insurance investment readily adjustable type policy thousand euro addition new insurance investment multi branch policy quickly converted cash thousand euro main objective making resources available short notice neutralizing risk capital loss avoiding speculative transactions aim efficient cash liquidity management group level salvatore ferragamo also entered cash pooling agreement number subsidiaries details please refer notes board directors company also approved policy management mitigation liquidity risk main objective ensure adequate coverage financial needs group companies choices also take account likely future trend cash flows together prompt renegotiation credit lines even expiry enable significant reduction exposure risk review allow adjust cost debt best market conditions company constantly maintained access wide range financing sources competitive costs despite external scenario continues characterized rigidity credit market despite group ability generate high cash flows current operations constant availability adequate amount committed credit lines allowed face turbulent mar ket phases volatility credit flows confidence financial position company group measured monthly basis compared latest budget forecast management believes funds credit lines currently available addition funds likely generated current erations enable company safely address repayment loans natural maturity meet needs arising investment activities working capital management salvatore ferragamo annual report december liquidity risk maturity analysis december thousands euro months months years years total trade payables payables subsidiaries payables loans due subsidiaries lease liabilities derivatives non hedging component derivatives hedging component total december thousands euro months months years years total trade payables payables subsidiaries lease liabilities derivatives non hedging component derivatives hedging component total analysis conducted items representing financial liabilities showed maturities distributed time trade payables mainly concentrated within three months payables banks lenders financial assets recognized financial statements maximum residual maturity less three months mainly relate cash cash equivalents credit risk credit risk represents company exposure potential losses arising failure meet trade financial obli gations taken counterparties company exposure credit risk depends nature activities generated relevant receivables company exposure commercial credit risk refers mainly sales third parties receivables arising revenues generated licensing activities combined represent around global turnover remaining turnover refers intercompany dtc sales cash payment payment credit debit cards time purchase trade receivables mainly relate wholesale sales generally maturities less days company usually favors trade dealings customers well established consolidated lations salvatore ferragamo policy check credit ratings customers ask extended payment salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting terms based information obtained specialist agencies observation anal ysis historical data established customers addition balance trade receivables constantly monitored year order ensure prompt intervention reduce risk losses allocation credit risk among number customers obtaining possible guarantees adoption means payment less risky creditor documentary letters credit actions aimed mitigating risk trade receivables recorded net write downs estimated based counterparty insolvency risk determined considering information available customer solvency historical data general company believes credit risk management policies implemented enabled overdue bad debts required adoption legal credit collection measures kept within reasonable limits credit risk connected financing investing operating activities derivatives hedge exchange rate risk represented inability counterparty issuer instruments meet contractual obligations called counterparty risk company manages type risk selecting counterparties high credit ratings considered solvent market routine ongoing trade banking service relations company negotiated entered master agreements accordance international standards isda master agreement counterparties derivatives order regulate various cases credit risk regarding company financial assets consisting cash cash equivalents financial sets amortized cost derivatives risk equal carrying amount assets case insol vency counterparty maximum credit risk exposure thousands euro december december current portion non current portion current portion non current portion receivables loans term receivables others trade receivables receivables loans due subsidiaries receivables due credit cards cash cash equivalents guarantee deposits current financial assets derivatives total table shows company exposure commercial counterparty credit risk defined carrying amount items representing outstanding financial assets december december almost exclusively limited current portion non current portion refers item guarantee deposits mainly includes cash deposits made company property leases recognized nominal value salvatore ferragamo annual report december concentration credit risk geographic area thousands euro december december italy europe north america japan asia pacific central south america total table shows concentration commercial credit risk geographic area company activity two years review thousands euro receivables neither past due impaired receivables past due impaired total days days days days days december december figures december figures december table provides analysis maturities receivables past due impaired years end december december concentration sales main third party customers shown table concentration sales geographic area reference made specific section concentration market risk percentage revenues biggest customer percentage revenues biggest customers percentage revenues biggest customers capital management main objective company capital management activity ensure solid credit rating well adequate levels share capital indicators maintained order support business optimize value share holders company manages capital structure modifies according changes economic conditions maintain adjust capital structure company modify dividends paid shareholders repay capital issue new shares change made objectives policies procedures salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting end company capital management aims among things ensure compliance covenants associated financial payables banks define capital structure requirements company includes net debt interest bearing loans financial payables lease liabilities trade payables net cash cash equivalents table include values related effects pro duced derivatives used manage exchange rate risk thousands euro december december interest bearing loans lease liabilities trade payables net hedging derivatives cash cash equivalents net debt total shareholders equity net cash flow hedge reserve shareholders equity net debt debt shareholders equity ratio business combinations business combinations noted april new shares issued company ferragamo argentina total million gentine peso subscribed salvatore ferragamo conversion past receivables due total thousand euro ferragamo usa inc june new shares issued company ferragamo retail macau limited total mil lion macau pataca fully subscribed salvatore ferragamo cash payment totaling thousand euro june new shares issued company ferragamo thailand ltd total million thai bath fully subscribed salvatore ferragamo cash payment totaling thousand euro salvatore ferragamo annual report december comments main statement financial position items assets shareholders equity liabilities property plant equipment breakdown property plant equipment december shown following table thousands euro december december historical cost accumulated depreciation net value historical cost accumulated depreciation net value land buildings plant equipment industrial commercial equipment assets leasehold improvements tangible assets progress payments account total following tables show changes item property plant equipment years ended december thousands euro value increases decreases depreciation reclassification value land buildings plant equipment industrial commercial equipment assets leasehold improvements tangible assets progress payments account total salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting thousands euro value increases decreases depreciation value land buildings plant equipment industrial commercial equipment assets leasehold improvements tangible assets progress payments account total increase item buildings refers works osmannoro sesto fiorentino facility plant equipment refers mainly purchase installation new equipment osmannoro sesto fiorentino facility industrial commercial equipment refers largely purchase new furniture equipment stores renovated year assets mainly refers equipment furniture furnishings destined milan showroom offices corso matteotti osmannoro sesto fiorentino facility well purchase equipment leasehold improvements mainly refers works carried network italian stores particular provements milan woman store opened february ferragamo new store concept plemented completion renovation milan offices corso matteotti item tangible assets progress payments account mainly includes expenses incurred advances disbursed pertaining store renovations yet completed end year well works osmannoro sesto fiorentino facility decrease item buildings refers decommissioning portion roof covering portion photovoltaic system logistics hub building osmannoro sesto fiorentino facility damaged fire august work underway replace photovoltaic system reclassification item land refers transfer portion owned land used investment property amount thousand euro details please refer following paragraph item tangible assets progress payments account totaling thousand euro refers reclamation work carried land already owned used investment property thousand euro construction building used general interest production activities thousand euro details please refer following paragraph required procedure adopted company analyze impairment indicators end year assessment made possible presence impairment indicators could identified internal external information sources analyses carried show indicators impairment regards item salvatore ferragamo annual report december investment property investment property refers building used general interest production activities area owned salvatore ferragamo located municipality sesto fiorentino osmannoro item land includes reclassification industrial land thousand euro referring portion land already owned used general interest production activities thousand euro referring reclamation works carried land reclassified item tangible assets progress pay ments account item buildings includes property used general interest production activities reclassified item tangible assets progress payments account property completed december following table shows changes investment property year ended december thousands euro december december historical cost accumulated depreciation net value historical cost accumulated depreciation net value land buildings total following table shows changes right use assets year ended december thousands euro value reclassification depreciation impairment value land buildings total required procedure adopted company analyze impairment indicators end year assessment made possible presence impairment indicators could identified internal external information sources company independent third party expert carried assessment fair value investment properties recognized financial statements impairment loss thousand euro recognized nancial statements necessary adjust value lower cost fair value resulting assessment salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting right use assets breakdown right use assets december shown following table thousands euro december december historical cost accumulated depreciation net value historical cost accumulated depreciation net value right use assets buildings vehicles equipment assets total following tables show changes right use assets years ended december thousands euro value increases decreases depreciation value right use assets buildings vehicles equipment assets total thousands euro value increases decreases depreciation value right use assets buildings vehicles equipment assets total item buildings includes right use assets largely relating leases stores accounting approximately right use assets buildings december lesser extent leases offices company lodgings premises main increases recorded year refer new leases entered period main decreases concern leases terminated early reduction future lease payments negotiated details cash outflows related leases see notes lease liabilities costs services required procedure adopted company analyze impairment indicators end year assessment made possible presence impairment indicators could identified internal external information sources analyses carried show indicators impairment regards item salvatore ferragamo annual report december goodwill amount goodwill totaling thousand euro entirely acquired result acquisition subsequent merger arts aura item unchanged required procedure adopted company analyze impairment indicators required ias goodwill tested annually case events occur suggest impairment loss determine recoverable amount reviewing impairment indicators company considers among factors ratio market capitali zation carrying amount december company market capitalization comfortably exceeded carrying amount equity hence company record impairment item intangible assets finite useful life breakdown item intangible assets finite useful life december shown following table thousands euro december december historical cost accumulated amortization net value historical cost accumulated amortization net value development costs know industrial patents use intellectual property rights concessions licenses trademarks intangible assets finite useful life progress total salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting following tables show changes intangible assets finite useful life years ended december thousands euro value increases decreases amortization impairment value development costs know industrial patents use intellectual property rights concessions licenses trademarks intangible assets finite useful life progress total thousands euro value increases decreases amortization impairment value development costs know industrial patents use intellectual property rights concessions licenses trademarks intangible assets finite useful life progress total increase item development costs mainly relates capitalization costs development business software appli cations sap accounting system erp reporting systems commerce platform development costs new pos solu tion project aimed implementing new cash back office system december company reported intangible assets arising internal development industrial patents use intellectual property rights totaling thousand euro refers cost user licenses software related business management processes concessions licenses trademarks refers costs incurred filing registering salvatore ferraga trademark item know refers determination know resulting fair value measurement sets liabilities acquired result acquisition subsequent merger entities arts aura details see annual report intangible assets progress december mainly represented investment software develop ment support business processes required procedure adopted company analyze impairment indicators end year assessment made possible presence impairment indicators could identified internal external information sources thousand euro impairment loss refers item development costs expenses capitalized prior years longer fit company strategies analyses carried show indicators impairment regards item salvatore ferragamo annual report december investments subsidiaries changes investments subsidiaries shown following table thousands euro company investment value increases write downs stock grant value ferragamo mexico ferragamo austria gmbh ferragamo deutschland gmbh ferragamo belgique ferragamo suisse ferragamo limited ferragamo australia pty ltd ferragamo france ferragamo espana ferragamo usa inc ferragamo hong kong ltd ferragamo malaysia sdn bhd ferragamo retail macau limited ferragamo korea ltd ferragamo retail nederland ferragamo japan ferragamo chile ferragamo retail india private limited ferragamo brasil roupas acessorios ltda total increase thousand euro ferragamo retail macau limited related issue new shares june total million macau pataca fully subscribed salvatore ferragamo cash payment details item stock grant reference made note required procedure adopted company analyze impairment indicators end year assessment made possible presence impairment indicators impairment losses could identified internal external information sources regarding value subsidiaries whether reasons led impairment investments previous years longer exist particular assessment made recoverability residual value equity investments order ensure recognized value higher recoverable amount salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting impairment test performed considering subsidiary tested cgu following analysis cgus external internal indicators impairment identified also tested impairment support external advisor shown table company identified indicators impairment equity investments recoverable amount cgu estimated based value use using discounted cash flow dcf method considers ability generate cash flows fundamental element purpose measuring target cgu purpose discounting operating cash flows rate identified weighted average cost post tax capital therefore application financial method determine recoverable amount subsequent comparison respective carrying amounts resulted cgus tested impairment estimation post tax wacc value operating cash flows derived budget cash flows prepared company management terminal value growth rate used projection flows beyond plan horizon details please refer paragraph basis presentation section impairment reversal impairment property plant equipment right use assets intangible assets finite useful life investment property equity investments goodwill board directors salvatore ferragamo approved impairment test procedure wacc growth rate operating cash flows derived budget cash flows pre pared company management used impairment test main assumptions determine recoverable amount given cgus tested impairment wacc discount rate growth rate ferragamo austria gmbh ferragamo deutschland gmbh ferragamo belgique ferragamo suisse ferragamo limited ferragamo france ferragamo retail macau limited main assumptions determine recoverable amount given discount rate weighted average cost capital wacc estimated according formulation conditional extended capital asset pricing model capm cost equity cost debt estimated sum risk free rate country reference interest coverage ratio panel companies estimating beta debt equity ratio growth rate determined inflation rate expected prevail medium long term refer ence market terminal value determined using perpetuity model long term growth rate impairment test resulted impairment thousand euro zeroed value equity invest ments ferragamo deutschland gmbh ferragamo suisse ferragamo limited ferragamo france salvatore ferragamo annual report december ferragamo retail macau limited resulted partial write value equity investment ferragamo austria gmbh ferragamo belgique sensitivity analysis assumptions wacc used measure recoverable amount conducted equity investments indicators impairment showed negative changes key assumptions could result additional impairment losses regard equity investments impaired previous years noted decided carry reversal impairment given still uncertain macroeconomic scenario lower expected results following table illustrates changes provision excess write downs equity investments showing provisions column amount deemed appropriate based value subsidiary shareholders equity cover remaining losses applying due percentage carrying amount equity investment set zero thousands euro company investment value increases decr provisions releases value ferragamo singapore pte ltd ferragamo argentina ferragamo thailand ltd ferragamo monte carlo ferragamo moda shanghai ltd ferragamo retail macau limited ferragamo suisse total increase thousand euro ferragamo argentina related issue new shares april total million argentine peso subscribed salvatore ferragamo conversion past ceivables due ferragamo usa inc thousand euro ferragamo thailand ltd related issue new shares june total million thai bath fully subscribed salvatore ferragamo cash payment salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting following table shows key data financial statements subsidiaries december gether historical cost equity investments well provision write downs provision excess write downs equity investments december thousands euro subsidiaries equity investment total shareholders equity profit loss year historical cost equity investment provision write downs provision excess write downs equity investments net value equity investment ferragamo austria gmbh ferragamo deutschland gmbh ferragamo belgique ferragamo france ferragamo espana ferragamo limited ferragamo retail nederland ferragamo australia pty ltd ferragamo usa inc ferragamo mexico ferragamo hong kong ltd ferragamo malaysia sdn bhd ferragamo retail india private limited ferragamo korea ltd ferragamo japan ferragamo chile ferragamo brasil roupas acessorios ltda subtotal equity investments subsidiaries ferragamo monte carlo ferragamo argentina ferragamo moda shanghai ltd ferragamo thailand limited ferragamo singapore pte ltd ferragamo retail macau limited ferragamo suisse subtotal equity investments provision excess write downs equity investments total data refer ferragamo usa group salvatore ferragamo annual report december non current assets item non current assets thousand euro thousand euro december refers non current portion certain tax credits specifically non current portion tax credit research development design aesthetic conception technological innovation tax credit donations support cultural activities known art bonus non current financial assets non current financial assets totaling thousand euro thousand euro december refer guarantee deposits mainly existing leases lessee accounted amortized cost inventories breakdown inventories december set following table thousands euro december december change gross value raw materials accessories consumables provision obsolete inventory raw materials accessories consumables gross value finished products goods resale provision obsolete inventory finished products goods resale total stocks raw materials accessories consumables decreased thousand euro compared related provision reflects obsolescence raw materials leather goods accessories longer suitable company production plans future collections raw materials also include leather materials sent third parties subsequent processing stocks finished products show net increase thousand euro related provision reflects difference purchase production cost estimated realizable value products belonging primarily past collections better understanding provisions obsolete inventory calculated please see note statement compliance ifrs basis presentation discretionary valuations significant accounting estimates salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting net uses allocations provision obsolete inventory follows thousands euro change raw materials finished products total right return assets concerning right return revenues contracts customers line item right return sets amounting thousand euro december thousand euro december includes estimated cost products expected returned equal lower previous carrying amount inventories estimated cost production net realizable value less potential future costs associated recovery item closely related refund liabilities see note refund liabilities largely refers group european companies well lesser extent external customers trade receivables breakdown trade receivables december shown following table thousands euro december december change trade receivables third parties provision bad debt third parties trade receivables subsidiaries provision bad debt subsidiaries total trade receivables third parties mainly refer credit exposure arising sales made wholesale channel interest free generally due days less related provision bad debt consid ered adequate meet cases insolvency detailed information trade receivables subsidiaries reference made note transactions related parties changes provision bad debt follows thousands euro value provisions uses value provision bad debt third parties provision bad debt subsidiaries total salvatore ferragamo annual report december analysis past due impaired trade receivables reference made note management financial risks credit risk thousand euro allocation provision bad debt subsidiaries refers adjustment year end exchange rates provision bad debt recognized ferragamo retail india pri vate limited set previous years referring foreign currency trade receivables tax receivables breakdown item set following table thousands euro december december change due tax authorities valued added tax tax receivables due tax authorities irap total amount due tax authorities vat decreased compared previous year result repayment large part credit existing december together lower credit generated year december item tax receivables mainly included research development design aesthetic conception technological innovation tax credit totaling thousand euro thousand euro relating current portion credit estimated remainder refers current portions accrued previous periods non current portion said credit rec ognized non current assets thousand euro current portion tax credit donations support cultural activities known art bonus made previous years thousand euro non current portion included within non current assets thousand euro tax credit relating donations made recognized income statement income current assets breakdown current assets december shown following table thousands euro december december change receivables short term hedging derivatives prepaid expenses receivables receivables holding company receivables due credit card management companies receivables social security institutions total salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting hedging derivatives totaling thousand euro thousand euro december refer fair val measurement outstanding derivative contracts hedging component entered company manage exchange rate risk sales currencies euro prepaid expenses included thousand euro thousand euro december contributions fit tailored single brand stores stores stores operated third parties tpos item receivables refers thousand euro thousand euro december ceivable due tuscany region ministry economic development relating innovation agree ment succeed project details please refer directors report operations significant events occurred year section receivable holding company ferragamo finanziaria amount thousand euro mainly refers corporate income tax ires first advance payment current financial assets thousands euro december december change financial receivables due subsidiaries financial receivables due subsidiaries cash pooling short term derivatives current financial assets total financial receivables due subsidiaries included loans granted subsidiaries ferragamo monte carlo ferragamo suisse ferragamo limited ferragamo japan ferragamo canada inc ferragamo singapore pte ltd ferragamo retail hong kong ferragamo thailand limited order manage cash liquidity efficiently group level company entered cash pooling agreement number subsidiaries specifically credit exposure december thousand euro thousand euro december detailed information financial receivables due subsidiaries reference made note transactions related parties item short term derivatives totaled thousand euro refers fair value measurement derivatives non hedging component thousand euro december details please refer note financial instruments fair value measurement current financial assets include thousand euro relating insurance investment multi branch policy quickly converted cash thousand euro december thousand euro relating investment short term italian government bonds buoni ordinari del tesoro made company view moderately diversifying cash management thousand euro december salvatore ferragamo annual report december cash cash equivalents breakdown cash cash equivalents december shown following table thousands euro december december change time deposits bank post office sight deposits cash values hand total time deposits banks maturities ranging one day three months case promptly liqui dated without penalties bank post office deposits refer temporary cash holdings maintained mainly meet imminent payments also company policy use significant part cash surpluses time deposit investments well take intercompany loans regulated current market conditions contain bank debt december company unused credit lines amounting thousand euro decem ber unused credit lines totaled thousand euro details see note interest bearing loans borrowings item cash cash equivalents december broken follows thousands euro december december change cash bank sight deposits time deposits total share capital reserves authorized subscribed paid share capital company december totaled euro consisted ordinary shares changes number shares issued treasury share reserve amounting thousand euro consisted shares salvatore ferrag amo average unit price euro purchased respectively net free assignment ceo general manager first half shares respectively pursuance provisions restricted shares plan details see note share based payments share capital contributions totaling thousand euro paid lump sum holding company ferragamo finanziaria reduced due demerger salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting legal reserve thousand euro set previous years extraordinary reserve thousand euro set retained earnings change recorded period due increase thousand euro relating profit year decrease thousand euro relating dividends paid revaluation reserve totaling euro thousand broken follows revaluation reserve per italian law amounting thousand euro revaluation reserve per italian law amounting thousand euro revaluation reserve per italian law amounting thousand euro deferred taxes allocated revaluation reserves based assumption full taxation reserves indefinitely deferred indeed transactions likely carried would cause distribution cash flow hedge reserve negative thousand euro result measurement nancial instruments defined cash flow hedges december company exchange rate risk hedging transactions shown net tax effect ias equity reserve negative thousand euro result valuation actuarial gains losses charged shareholders equity envisaged ias shown net tax effect valuation made independent actuary item reserves totaled thousand euro included changes arising application iass ifrss instead italian accounting standards reference company opening balance shareholders equity january closing balance december addition changes arising application iass ifrss concern salvatore ferragamo following merger ferragamo parfums parent company addition item reserves includes stock grant reserve totaling thousand euro stock grant reserve relating prior years totaling thousand euro stock grant reserve incentive plans top management place december amount thousand euro details please refer note finally item reserves includes amount thousand euro provision per article ital ian presidential decree relating vat recovery article italian law amounts net tax effects applicable following table shows specific item shareholders equity information concerning possibility use distribution well use last three financial years salvatore ferragamo annual report december shareholders equity thousands euro value possibility use amount available summary uses made last three years share capital treasury share reserve share capital reserves revaluation reserve law revaluation reserve law revaluation reserve law share capital contributions provision per art net profit reserves legal reserve extraordinary reserve reserve adoption iass ifrss reserve treasury share price difference accumulated gains losses cash flow hedge reserve ias reserve stock grant reserve net profit loss year total key share capital increase cover losses distribution shareholders available part reserve used cover losses must subsequently reintegrated interest bearing loans borrowings breakdown current non current interest bearing loans borrowings given thousands euro december december change financial payables subsidiaries cash pooling total given strong cash position general credit market conditions company con sider appropriate make significant changes financial structure maintaining existing committed uncommitted credit lines diversified counterparties almost unchanged slightly salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting december company reported zero payables banks line december credit lines used company arranged floating rates cost debt generally benchmarked market rate period usually euribor libor sofr benchmark loan currency specific interbank mar ket increased spread depends type credit line used case drawdowns margins applied would line best market standards financial instruments available uncommitted credit lines made available company order meet short term financial needs linked management working capital short medium long term committed revolving credit lines negotiated bilateral basis company december available committed credit lines maximum residual maturity twenty nine months weighted average residual maturity thirteen months credit lines related financial operations spread among leading national international banks order manage cash liquidity efficiently group level company entered cash pooling agreement number subsidiaries december company credit exposure amounted thousand euro december company credit exposure thousand euro detailed information financial receivables due subsidiaries reference made note transactions related parties details credit lines granted banks company broken type shown table financial years drawdowns thousands euro december december agreed used agreed used committed credit lines revolving credit lines term loans uncommitted credit lines total salvatore ferragamo annual report december following table provides breakdown changes net financial position december december presented accordance model included consob communication dem july supplemented consob warning thousands euro december december change cash cash equivalents current financial assets cash cash equivalents current financial payables including debt instruments current portion non current financial payables current financial debt current financial debt net non current financial payables excluding debt instruments debt instruments trade current payables non current financial debt net financial debt item includes short term loans thousand euro granted group companies cash pooling agreement group companies details reference made note current financial assets note transactions related parties intra group transactions item relates current lease liability note lease liabilities including thousand euro due related parties details related parties reference made note transactions related parties item relates non current lease liability note lease liabilities including thousand euro due related parties details related parties reference made note transactions related parties limitations use financial resources company committed uncommitted credit lines currently outstanding require compliance financial covenants salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting provisions risks charges changes provisions risks charges december shown following table thousands euro value provisions uses increases decreases value legal disputes provision risks provision excess write downs equity investments total legal disputes mainly refer allocations likely future liabilities relating legal proceedings com pany labor disputes well outstanding contractual disputes labor disputes refer litigations esti mated amounts company expects incur pre litigation settlement provision period refers legal labor disputes arose use pro vision legal disputes totaling thousand euro refers settlement number legal tax labor proceedings disputes involving company took place period particular mention made closure audit tax credits relating research development activities pursuant article italian law decree december salvatore ferragamo benefited tax years signing company tuscany regional unit report formal consul tation parties processo verbale contraddittorio august details tax disputes reference made section tax payables directors report operations section significant events occurred year tax customs audits disputes provision risks refers outstanding balance additional allowance former agent associ ated fragrances business operated italy detailed information changes provision excess write downs equity investments reference made note equity investments subsidiaries regards contingent liabilities provisions made please refer section significant events occurred year tax customs disputes audits salvatore ferragamo annual report december employee benefit liabilities item included thousand euro employee benefit liabilities december thousand euro december following table sets changes occurred period thousands euro december december present value obligation beginning period financial charge income benefits paid actuarial loss gain arising financial assumptions demographic assumptions experience based adjustments total actuarial loss gain present value obligation end period main assumptions used determining present value employee severance indemnities follows annual rate salary increase annual discount rate inflation rate regards demographic assumptions used determining defined benefit liabilities figure used bench mark mortality rate italian population recorded istat less broken age gender meanwhile staff turnover rate estimated per year quantitative sensitivity analysis main assumptions december concern ing employee benefit obligations thousands euro change increases decreases increases decreases annual discount rate mortality rate staff turnover rate sensitivity analyses based reasonable changes key assumptions end two report ing periods compared salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting average number employees terms full time equivalents category shown following table average staff full time equivalent top managers middle managers store managers white collars blue collars temporary agency staff total non current liabilities item totaling thousand euro includes payables leasehold improvement contributions amounting thousand euro thousand euro december refers straight lining amounts received received lessors costs incurred fit stores payables medium long term incentive plans company management amounting thousand euro thousand euro december lease liabilities changes lease liabilities occurred broken current non current thousands euro lease liabilities total non current current value increases decreases reclassifications repayment lease liabilities interest expense lease liabilities interest expense lease liabilities paid value salvatore ferragamo annual report december thousands euro lease liabilities total non current current value increases decreases reclassifications repayment lease liabilities interest expense lease liabilities interest expense lease liabilities paid changes value average weighted ibr applicable leases outstanding december cash outflows related leases see note costs services trade payables breakdown trade payables december set following table thousands euro december december change trade payables third parties invoices received payables subsidiaries total trade payables bear interest usually become due days item consists payables relating normal commercial activity carried company particular costs purchase raw materials parts manufacturing outsourcing detailed information trade payables subsidiaries reference made note transactions related parties refund liabilities concerning right return revenues contracts customers line item refund liabilities thousand euro december thousand euro december refers lia bility customers amount products expected returned item largely refers estimated returns group european companies related item right return assets see note right return assets salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting tax payables breakdown tax payables december set following table thousands euro december december change tax payables due foreign tax authorities vat tax payables withholdings applied tax payables total december tax payables included liability arising credit amnesty procedure tax periods totaling thousand euro august company signed report formal consultation parties processo verbale contraddittorio tuscany regional unit agreed company would comply voluntary payment procedure referred article paragraphs italian legislative decree total amount thousand euro years october salvatore ferragamo submitted request access voluntary pay ment procedure replacing request submitted october amount thousand euro paid total amount due equal thousand euro legal deadline december tails reference made directors report operations section significant events occurred year tax customs audits disputes current liabilities breakdown current liabilities december set following table thousands euro december december change payables holding company payables staff payables social security institutions payables third parties payables hedging derivatives accrued expenses deferred income total item payables staff mainly includes company payables employees amounts accrued yet paid reporting date item payables social security institutions refers amounts due social security institutions paid month end reporting period relating amounts due employees salvatore ferragamo annual report december item payables third parties includes payables due related parties amount thousand euro details please refer note transactions related parties item hedging derivatives shows fair value measurement end year outstanding derivatives hedging component entered company manage exchange rate risk details please refer note financial instruments fair value measurement item deferred income mainly includes contribution advertising activities scheduled relating eyewear licensee royalties invoiced accruing future years terms contracts signed counterparties iii share pertaining future years key money received marchon europe group marchon licensee salvatore ferragamo trademark eyewear products thousand euro current financial liabilities current financial liabilities totaling thousand euro december include short term deriv atives thousand euro december refers fair value derivatives negative mark market reporting date details please refer note financial instruments fair value measurement financial instruments fair value measurement classification financial instruments ifrs involves various line items following table sets carrying amount outstanding financial instruments broken category compared corresponding fair values december december classification financial instruments presentation fair value financial assets thousands euro december december carrying amount fair value carrying amount fair value current portion non current portion current portion non current portion financial assets fair value profit loss derivatives non hedging component assets measured amortized cost receivables due credit cards trade receivables receivables loans due subsidiaries guarantee deposits current financial assets cash cash equivalents financial assets fair value comprehensive income derivatives hedging component total salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting financial liabilities thousands euro december december carrying amount fair value carrying amount fair value current portion non current portion current portion non current portion liabilities amortized cost trade payables payments account payables loans due subsidiaries payables due shareholders dividends lease liabilities financial liabilities fair value profit loss derivatives non hedging component financial liabilities fair value comprehensive income derivatives hedging component total pursuant ifrs lease liabilities measured fair value table shows outstanding financial assets liabilities refer short term financial items except lease liabilities taking account nature carrying amount items reasonable approxi mation fair value cases fair value measured according methods classified level hierarchy significance data used determining fair value defined ifrs company uses internal valuation models generally used finance basis prices provided market participants prices collected active markets leading info providers determine fair value derivatives company uses pricing model based market values interest rates exchange rates measurement date also guarantee deposits carrying amount reasonable approximation fair value changes measurement methods used compared previous years transfers one level another hierarchy assets liabilities measured fair value company calculates non performance risk risk one parties may fulfill contractual ligations due possible default derivative expires reference counterparty risk credit value adjustment cva risk debt risk adjustment dva applying market value risk free portfolio taking account type derivatives portfolio solely sales purchases currency forward contracts relevant maturity twelve months company counterparties ratings adjustments immaterial salvatore ferragamo annual report december addition noted compliance isda master agreements existing framework agreements relating derivatives generally possible offset netting outstanding financial assets liabilities arising derivatives following table summarizes impacts income statement shareholders equity reference category financial instruments outstanding company thousands euro december december net gains losses financial instruments recognized profit loss financial assets liabilities held trading derivatives hedging component net gains losses financial instruments recognized shareholders equity derivatives hedging component interest income expense calculated using internal rate return method accrued financial assets liabilities fvtpl interest income interest expense interest expense lease liabilities expenses fees included effective interest rate regarding financial liabilities interest income accrued financial instruments written provisions impairment financial assets receivables loans salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting comments main income statement items better understanding development income statement items reference also made comments directors report operations relating comparison data revenues contracts customers revenues contracts customers totaled thousand euro thousand euro respectively tables provide breakdown channel geographic area main categories revenues contracts customers thousands euro dtc wholesale royalties income services total revenues contracts customers europe north america asia pacific japan central south america total thousands euro dtc wholesale royalties income services total revenues contracts customers europe north america asia pacific japan central south america total company discloses disaggregation revenue using qualitative quantitative approach company rec ognizes revenues sale goods dtc wholesale channels control asset transferred customer generally upon delivery case income services revenues recog nized service rendered customers dtc sales mainly refer revenues generated sales directly operated stores dos italy lesser extent sales generated company commerce channel wholesale revenues mainly include sales group companies lesser extent retailers salvatore ferragamo annual report december revenues royalties mainly derive licensing salvatore ferragamo trademark reference product categories eyewear company marchon europe watches company vertime timex group fragrances company inter parfums inc revenues royalties accounted based stage completion licensee sales income services mainly include recovery freight packaging costs well services provided subsidiaries detailed information revenues subsidiaries reference made note transactions related parties costs raw materials goods consumables breakdown costs raw materials goods consumables december shown following table thousands euro change raw materials finished products packaging purchases materials stationery change inventories raw materials accessories consumables total costs services breakdown costs services december set following table thousands euro change manufacturing outsourcing production general administrative sales costs costs use third party assets total december production general administrative sales costs mainly included thousand euro communication costs press advertising public relations store window display expenses events advertising expenses thousand euro consultancy costs fees third parties legal administrative product manufacturing process minor costs salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting thousand euro freight logistics costs thousand euro costs services provided subsidiaries details costs reference made note transactions related parties thousand euro maintenance utility costs thousand euro fees paid directors statutory auditors supervisory body detailed information fees reference made note fees paid directors statutory auditors following table shows impacts leases accounted ifrs outside scope said standard income statement thousands euro total total depreciation right use assets net interest lease liabilities costs relating short term leases costs relating low value leases costs relating leases variable payments included measurement lease liabilities total company leases contain variable lease payments linked revenues generated stores dos leased premises included measurement leases accordance accounting standard ifrs recognized accrual basis december overall variable lease payments accounted total expense recognized income statement related leases either included lease liability per accounting standard ifrs variable lease payments depend sales therefore economic performance subsequent years group estimates future variable lease payments continue proportionate sales finished goods general company leases include clauses prohibit subleasing leased asset require company comply financial covenants company early termination options intends exercise consider meas uring lease liability respect renewal options accounting policy determining lease term company considered renewal options intends exercise company reports commitments short term leases expected line reported income statement salvatore ferragamo annual report december personnel costs breakdown personnel costs december set following table thousands euro change salaries wages stock grant plan costs mlt incentive plan costs social security welfare cost allocation severance indemnities allocation complementary pension funds total details stock grant plan costs see note share based payments note transactions related parties amortization depreciation write downs breakdown amortization depreciation write downs december set following table thousands euro change depreciation tangible assets depreciation investment property depreciation right use assets amortization intangible assets write downs intangible assets investment property total details write downs intangible assets investment property see note intangible assets finite useful life note investment property respectively salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting operating costs thousands euro change ebit adjustment subsidiaries donations provision risks charges provision bad debt third parties provision bad debt subsidiaries taxes charges membership fees operating costs windfall losses total operating costs december item amounted thousand euro mainly included costs ebit adjustments subsidiaries amount thousand euro due effect renewal transfer pricing agreement inland revenue office central assessment department internation ruling office took place december effective another five years agreement fully line previous one details please refer directors report operations section significant events occurred year well note transactions related parties thousand euro donations including thousand euro donations made support cultural tivities called art bonus amounting thousand euro thousand euro allocations provision risks charges thousand euro allocations provision bad debt third parties subsidiaries salvatore ferragamo annual report december income thousands euro change recovery expenses subsidiaries positive ebit adjustment subsidiaries advertising contributions revenues tax credits grants received improvements straight lining operating grants uses provision risks charges provision bad debt insurance refunds revenues museum exhibitions income revenues total income december item amounted thousand euro mainly included thousand euro income ebit adjustments subsidiaries details please refer direc tors report operations section significant events occurred year well note transactions related parties thousand euro advertising contributions third parties thousand euro recovery expenses subsidiaries thousand euro revenues deriving recognition tax credits including recognition estimat research development design aesthetic conception technological innovation tax credit tax credit amounting donations support cultural activities called art bonus made year thousand euro uses provision bad debt provision risks charges operating grants thousand euro referring non repayable grant relating innovation agree ment signed january company ministry economic development tuscany region recorded costs already incurred company details please refer section significant events occurred year directors report operations salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting financial charges breakdown financial charges december set following table thousands euro change financial charges fair value adjustment derivatives write downs provision excess write downs equity investments losses exchange rate differences interest expense lease liabilities financial charges financial charges employee benefits ias expenses lease liabilities interest expense total details write downs provision excess write downs equity investments see note equity vestments subsidiaries financial income breakdown financial income december set following table thousands euro change financial income fair value adjustment derivatives dividends equity investments subsidiaries financial income lease liabilities restatement releases provision excess write downs equity investments gains exchange rate differences interest income interest income subsidiaries total item dividends equity investments subsidiaries included dividends paid subsidiary ferragamo hong kong ltd salvatore ferragamo annual report december income taxes breakdown income taxes december set following table thousands euro change current taxes deferred taxes total income taxes loss taxes amounting thousand euro caused company recognize thousand euro positive taxes whereas company posted thousand euro profit taxes recognizing thousand euro taxes thousands euro change current taxes ires irap total deferred taxes ires deferred current year irap deferred current year use ires deferred previous years use irap deferred previous years total use allocation provision risks taxes previous years total income taxes salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting deferred tax assets liabilities following table provides breakdown nature deferred tax assets liabilities december december thousands euro december december december december statement financial position comprehensive income income statement deferred tax assets employee benefits tangible assets intangible assets cash flow hedge reserve valuation inventories tax losses receivables taxed provisions temporary differences deferred tax assets deferred tax liabilities cash flow hedge reserve temporary differences deferred tax liabilities net effect deferred taxes reflect net tax effect temporary differences carrying amount taxable amount assets liabilities recognition deferred tax assets duly adjusted take account effective possibility realization salvatore ferragamo annual report december reconciliation theoretical tax charge effective tax charge december follows thousands euro ires profit taxes theoretical taxes effective taxes difference due effect pass mechanism taxation income foreign companies resident countries territories privileged tax regime effect allocation use provision risks charges taxes previous years iii effects increases write downs investments permanent differences decreases income subsidiaries dividends irap deduction impact patent box tax credits impact permanent differences total difference salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting thousands euro irap net value production theoretical taxes effective taxes difference due effect increases regional irap rates effects non registration deferred taxes iii effects increases personnel costs permanent differences decreases tax wedge impact patent box tax credits impact permanent differences total difference salvatore ferragamo annual report december information dividends parent company salvatore ferragamo execution resolution shareholders meeting april proceeded distribute shareholders part profits allocated extraordinary reserve equal dividend euro per share ordinary shares outstanding net treasury shares coupon date total euro december dividends fully paid share based payments announced specific press release dated february date company marco gobbetti reached mutual agreement termination employment administrative relationship effective date approval draft financial statements march concurrent waiver sti restricted shares lti special award plan details reference made section significant events occurred december restricted shares plan plan description restricted shares plan approved shareholders meeting december amended share holders meeting april provides assignment shares company ceo general manager marco gobbetti recipient insofar pertains relevant employment relationship plan aimed strengthening alignment interests recipient group stakeholders particularly fostering motivation loyalty company group key implementation major change group business strategic plan object plan beginning year recipient shall awarded right accrue free charge number restrict shares worth euro annual basis determined dividing said monetary amount average value shares average stock closing prices days prior january year cycle plan lasts one year starting january year january shares restricted shares plan assigned end month vesting period provided line amendments approved shareholders meeting april ordinary session company met following minimum targets called underpins reporting period total revenues level cer current exchange rates reporting year equivalent minimum previous year group roic positive rer reported exchange rates reporting year roic defined net income period reported group annual consolidated financial statements reporting year divided average adjusted net invested capital adjusted net capital represented net invested capital excluding right use assets classified investment property relationship recipient company still place end vesting period cycle salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting assigned restricted shares still locked months starting january subsequent year without prejudice sell cover mechanism lock obligation continues even relationship termi nated reason except death total permanent disability resulting termination relationship shares company awarded free charge plan using treasury shares arising pur chases authorized shareholders meeting pursuant articles ter italian civil code restricted shares plan incentive subject post adjustment mechanisms company remunera tion policies including claw back malus clauses changes period number rights receive shares assigned december december outstanding start year assigned period iii canceled period exercised period expired period outstanding end period vii exercisable end period average price period indicated since plan free assignment shares changes stock grant reserve fair value thousands euro december december number fair value number fair value rights receive shares assigned ceo general manager start year assigned year exercised year end period march board directors favorable opinion nomination remuneration commit tee determined minimum targets called underpins relating achieved therefore ceo general manager marco gobbetti accrued right receive free charge shares salvatore ferragamo restricted shares awarded january pursuance provisions restricted shares plan restricted shares entirely made treasury shares purchased salvatore ferragamo transferred securities account name ceo general manager april understanding subject twelve month lock period board directors meeting held january granted ceo general manager marco gob betti right receive free charge shares salvatore ferragamo restricted shares effective january restricted shares transferred effect january waived described salvatore ferragamo annual report december fair value measurement fair value restricted shares plan determined fair value shares time assignment discounted expected dividends assumptions valuation restricted shares plan ceo general manager follows date assignment january january share price assignment date euro fair value per share assignment date euro special award plan plan description special award plan intended strengthen alignment interests top management ferragamo group stakeholders order create value providing recipients incentive meet compa medium long term targets also reflected strategic plan boosting retention consideration purpose pursuing targets special award plan provides single cycle subject five year performance period timeframe considered appropriate achievement aforementioned long term targets pursued special award plan december date report recipient special award plan ceo general manager company board directors sole discretion may identify additional recipients beginning plan vesting period application case pro rata temporis param eter proportions special award bonus taking account actual period service vesting period among top managers hold hold role directors employees collaborators company subsidiaries object plan special award plan provides disbursement special award bonus two installments respectively end first three year period january december first target reached end following two year period december second target reached subject existence dates management employment relationship cipient company subsidiary case case basis disbursement special award bonus installments paid cash remaining company shares installment shall equal percentage determined company competent bodies equal ceo general manager company average capitalization period three months end first three years subsequent two years start relationship average value portion special award bonus paid free allocation company shares shall take place using treasury shares arising purchases authorized shareholders meeting pursuant articles ter italian civil code specific share capital increases pursuant article par agraph italian civil code salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting shares allocated recipients locked months plan incentive subject post adjustment mechanisms company remuneration policies cluding claw back clauses limited conduct constitutes malice attributable recipients changes stock grant reserve plan cost thousands euro december fair value december fair value rights receive shares assigned ceo general manager start year assigned year end period thousands euro cost share based payment transactions payment shares cost adjustment cost share based payment transactions payment cash following mutual agreement termination relationship company ceo feb ruary simultaneous waiver sti restricted shares lti bonuses known special award following noted reference special award plan first installment three year period due december therefore result waiver disbursements changes accumulated cost recognized per sonnel costs three year period amounts thousand euro second installment two year period also subject waiver yet accrued determine positive change income statement thousand euro reflect failure achieve condition remaining service fair value measurement considering allocation mechanism set measurement concerns total fair value plan influenced degree performance targets related company share price achieved therefore respect accounting standard called market based targets fair value esti mated using stochastic simulation monte carlo method based appropriate assumptions allowed define substantial number alternative scenarios timeframe considered particular scenario projection share price carried starting initial value according brownian geometric movement expected dividends included estimated fair value measurement main assumptions evaluation special award plan ceo general manager date assignment valuation installment share based payment reporting dates december december valuation installment payment cash fair value installment payment cash measured reporting date salvatore ferragamo annual report december measurement assignment january date assignment january share price assignment date euro expected volatility outflow rate rate return salvatore ferragamo shares measurement reporting date december december date assignment january january share price reporting date euro expected volatility outflow rate rate return salvatore ferragamo shares reasonable estimate based historical volatility calculated reference measurement date average interest rate swap rates measurement date respectively three year five year maturities performance restricted shares plan lti plan plan description performance restricted shares plan approved shareholders meeting april intended strengthen part recipients overall remuneration package alignment management interests group stakeholders boosting specifically motivation loyalty view retention salvatore ferragamo group logic sustainability value creation medium long term reasons plan divided three cycles three year vesting period timeframe seems appropriate achieve objectives performance restricted shares plan reserved selected employees directors collaborators salvatore ferragamo companies belonging ferragamo group considered key pursuit sustainable success medium long term identified board directors salvatore ferragamo consulting nomination remuneration committee plan cycles sole discretion recipients december recipients plan rights granted identified among employees salvatore ferragamo following subsidiaries ferragamo usa inc ferragamo brasil roupas acessorios ltda ferragamo japan ferragamo korea ltd ferragamo hong kong ltd ferragamo fashion trading shanghai ltd ferragamo retail limited member board directors among recipients plan board directors sole discretion may identify additional recipients first vesting year cycle application case pro rata temporis parameter proportions rights taking account actual period service vesting period among top managers hold hold role directors employees collaborators company subsidiaries salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting object plan plan divided three cycles first covers vesting period second covers vesting period third covers vesting period individual cycle performance restricted shares plan includes free allocation recipients certain number initial rights initial rights acquire ership share salvatore ferragamo subject achievement retention performance targets aggregate number additional rights end vesting period definition performance indicators cycle allocation initial rights allocation shares recipients depending level performance indicators achieved relation achievement retention targets end vesting period subject verifica tion fulfillment conditions set performance restricted shares plan vesting initial rights divided amount equal linked achievement retention performance targets performance rights remaining amount equal linked achievement retention targets retention rights corresponding allocation shares subject verification board directors performance rights achievement condition continued employment collaboration management relationship recipient salvatore ferragamo company ferragamo group relationship end vesting period cycle plan achievement one performance indicators end vesting period cycle plan retention rights achievement sole condition continued relationship end vesting period cycle plan relevant indicators vesting performance rights first plan cycle second plan cycle divided economic financial performance indicators line strategic plan esg indicators accordance recommendations corporate governance code market best practices follows average growth relating product net sales defined sum dtc wholesale channel sales shown financial statements net allocations returns excluding revenue components royalties cash flow hedging effect revenues rental income investment properties etc cumulative ebitda three year period first plan cycle three year period second plan cycle defined operating profit shown financial statements amortization depreciation write downs tangible intangible assets right use assets average roic three year period defined net income period reported salvatore ferragamo group annual consolidated financial statements reporting year divided average adjusted net invested capital latter represented net invested capital excluding right use assets assets classified investment property applicable first plan cycle net cash flow difference adjusted net financial debt surplus end three year period adjusted net financial debt surplus end applicable second cycle esg represents level achievement targets related environmental social sustainability group operations targets reference first cycle climate metrics renewable energy company locations worldwide gender pay gap measurement employees salvatore ferragamo subsidiaries north america korea china salvatore ferragamo annual report december iii uni pdr certification certification effective adoption gender equality management sys tem main areas culture strategy governance processes opportunities growth inclusion women business gender pay equity parental protection work life balance targets reference second cycle metric supply chain increase supply chain transparency mapping leather suppliers tier acquiring esg information focus social aspects governance measurement gender pay gap certification result definition roadmap implementation initiatives bridge gap iii engagement measuring employee engagement improving number initial rights determined board directors subject favorable opinion nomina tion remuneration committee basis indicator equal multiple percentage fixed remuner ation recipient dividing monetary amount average official price shares days preceding january year cycle plan begins moreover end vesting period cycle plan recipient granted free charge additional number rights calculated basis initial rights accrued cumulative amount divi dends per share distributed shareholders salvatore ferragamo period first day vesting period day preceding date grant shares inclusive allocation shares dependent continued relationship notice period absence particularly serious violations group code ethics leading termination employment shares number corresponding total number rights allocated recipients means communication salvatore ferragamo later thirtieth calendar day following date approval consolidated financial statements last year cycle shares awarded free charge plan using treasury shares arising purchases authorized shareholders meeting pursuant articles ter italian civil code changes period number rights receive shares assigned december december outstanding start year assigned period iii canceled period exercised period expired period outstanding end period vii exercisable end period average price period indicated since plan free assignment shares salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting changes stock grant reserve fair value thousands euro number fair value number fair value rights receive shares assigned employees salvatore ferragamo start year assigned year canceled year end period rights receive shares assigned employees subsidiaries start year assigned year canceled year end period total rights receive shares assigned start year assigned year canceled year end period regard first cycle vesting period starting date plan took place october following completion verifications preparation communication plan recipients identified board directors formal acceptance recipients plan rights assigned recipients initially identified among employees salvatore fer ragamo following subsidiaries ferragamo usa inc ferragamo mexico ferragamo brasil roupas acessorios ltda ferragamo japan ferragamo korea ltd ferragamo hong kong ltd ferragamo fashion trading shanghai ltd ferragamo retail taiwan limited ferragamo retail limited cember recipients plan rights granted owing departure seven employees subsidiaries four employees salvatore ferragamo member board directors among recipients plan based forecast data prepared company management represents best estimate group make economic conditions expected three year period first plan cycle timates achievement economic financial performance targets esg indicators vised adjusting relevant costs also respect required accounting standards case non market condition therefore number rights exercised end plan estimated stock grant reserve december reflects adjustment regard second cycle vesting period starting date plan took place december following completion verifications preparation communication plan recipients identified board directors formal acceptance recipients plan rights assigned recipients identified among employees salvatore ferragamo following subsidiaries ferragamo usa inc ferragamo brasil roupas acessorios ltda ferragamo japan ferragamo korea ltd ferragamo hong kong ltd ferragamo fashion trading shanghai ltd salvatore ferragamo annual report december december recipients plan working company member board directors among recipients plan fair value measurement fair value measurement rights assigned based financial market conditions valid measure ment date using methodology consistent risk neutral approach typical plans order quantify additional rights purpose estimating average stock value december december stochastic simulation monte carlo method used based appropriate assumptions allowed define substantial number alternative scenarios timeframe considered particular scenario projection share price carried starting initial value according brownian geometric movement expected dividends included estimated fair value measurement measurement assignment date assignment october share price assignment date euro expected volatility outflow rate rate return salvatore ferragamo shares reasonable estimate based historical volatility calculated reference measurement date derived interest rate swap curve measurement date reference maturity plan main assumptions evaluation performance restricted shares plan assignment date relative second cycle follows measurement assignment date assignment december share price assignment date euro expected volatility outflow rate rate return salvatore ferragamo shares reasonable estimate based historical volatility calculated reference measurement date derived interest rate swap curve measurement date reference maturity plan segment reporting paragraph ifrs requires annual report contain consolidated financial statements separate financial statements holding company segment reporting presented reference consolidated financial statements salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting transactions related parties section describes transactions related parties years ended december par ticular following table shows overall values transactions related parties excluding transactions subsidiaries detailed paragraph december thousands euro revenues operating costs net income financial charges right use assets trade receivables assets trade payables liabilities lease liabilities holding company ferragamo finanziaria company exercises management coordination salvatore ferragamo related companies palazzo feroni finanziaria lungarno alberghi ferragamo foundation companies connected members board directors dal borro club swan racing borro società agricola borro tuscan bistro rubino sole studio halldis italia related parties riccardo ferragamo angiolo anichini massimo ferragamo giovanna ferragamo directors statutory auditors managers strategic responsibilities directors statutory auditors managers strategic responsibilities total company total ratio salvatore ferragamo annual report december december thousands euro revenues operating costs net income financial charges right use assets trade receivables assets trade payables liabilities lease liabilities holding company ferragamo finanziaria company exercises management coordination salvatore ferragamo related companies palazzo feroni finanziaria lungarno alberghi ferragamo foundation companies connected members board directors dal borro club swan racing borro società agricola borro tuscan bistro rubino windows italy sole studio halldis italia related parties riccardo ferragamo giovanna ferragamo directors statutory auditors managers strategic responsibilities directors statutory auditors managers strategic responsibilities total company total ratio sales purchases related parties carried normal market prices outstanding balances end period backed guarantees generate interest settled cash bank guarantees issued favor palazzo feroni finanziaria thousand euro favor lungarno alberghi thousand euro favor ferragamo finanziaria thousand euro concerned leasing properties owned said companies guarantees given received relating receivables payables related parties company make allocations provision bad debt respect amounts due related parties please note company recognized provision bad debt respect receivables due subsidiary ferragamo retail india private limited amounting thousand euro december details please refer note trade receivables salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting comments tables holding company ferragamo finanziaria italian tax consolidation regime salvatore ferragamo participates together ferragamo finanziaria consolidating entity current assets included thousand euro mainly referring ires net credit relating advances paid unused end year furthermore salvatore ferragamo one outstanding lease contract ferragamo finanziaria con cerning lease industrial shed adjacent osmannoro facility parent company converted design prototyping laboratory development leather goods since falls within scope ifrs lease accounted recognizing right use asset depreciated lease term corresponding lease liability related companies transactions mainly refer trade transactions affected revenues operating costs trade receivables payables include mainly sale products leases fall within scope ifrs accounted accordingly recognizing right use assets lease liabilities depreciation expense financial charges otherwise lease payments recognized profit loss straight line basis lease term relevant payables included trade payables rendering services particular following transactions noted palazzo feroni finanziaria revenues relevant receivables largely refer administrative services right use assets lease liabilities operating costs finance expense largely refer leases headquar ters florence stores italian chain mostly fall within scope ifrs lungarno alberghi revenues related accounts receivable refer product sales right use assets lease liabilities operating costs financial charges largely refer lease space used store italian dtc chain falls within scope ifrs ferragamo foundation costs related accounts payable refer thousand euro services provided management salvatore ferragamo historical archive thousand euro thousand euro donations support institutional activities foundation thousand euro salvatore ferragamo annual report december companies connected members board directors transactions mainly refer trade transactions affected revenues operating costs trade receivables payables include mainly sale products leases fall within scope ifrs accounted accordingly recognizing right use assets lease liabilities depreciation expense financial charges otherwise lease payments recognized profit loss straight line basis lease term relevant payables included trade payables rendering services related parties respect related parties costs relevant payables refer cost incurred primarily company cooperative relationship place year directors statutory auditors managers strategic responsibilities information directors statutory auditors please refer note fees paid directors statutory auditors managers strategic responsibilities listed following table full name role giacomo ferragamo chief transformation sustainability officer pierre giorgio sallier tour chief financial officer financial reporting manager costs related managers strategic responsibilities refer cost incurred company connection existing employment relationship including variable bonus applicable imputed cost performance restricted shares plan amounted thousand euro compared thousand euro typically managers strategic responsibilities receive non monetary benefits cars mobile phones insurance policies salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting intragroup transactions following tables show overall values thousands euro transactions subsidiaries thousands euro company trade receivables current financial assets trade payables current financial liabilities ferragamo deutschland gmbh ferragamo france ferragamo suisse ferragamo monte carlo ferragamo belgique ferragamo espana ferragamo limited ferragamo austria gmbh ferragamo retail nederland total europe ferragamo hong kong ltd ferragamo retail hong kong ltd ferragamo australia pty ltd ferragamo japan ferragamo moda shanghai ltd ferragamo retail india private limited ferragamo retail taiwan limited ferragamo retail macau limited ferragamo fashion trading shanghai ltd ferragamo korea ltd ferragamo singapore pte ltd ferragamo thailand limited ferragamo malaysia sdn bhd total asia pacific ferragamo usa inc group total north america ferragamo mexico ferragamo chile ferragamo argentina ferragamo brasil roupas acessorios ltda total central south america total salvatore ferragamo annual report december thousands euro company revenues sales revenues services including royalties income financial income total ferragamo deutschland gmbh ferragamo france ferragamo suisse ferragamo monte carlo ferragamo belgique ferragamo espana ferragamo limited ferragamo austria gmbh ferragamo retail nederland total europe ferragamo hong kong ltd ferragamo retail hong kong ltd ferragamo australia pty ltd ferragamo japan ferragamo moda shanghai ltd ferragamo retail india private limited ferragamo retail taiwan limited ferragamo retail macau limited ferragamo fashion trading shanghai ltd ferragamo korea ltd ferragamo singapore pte ltd ferragamo thailand limited ferragamo malaysia sdn bhd total asia pacific ferragamo usa inc group total north america ferragamo mexico ferragamo chile ferragamo argentina ferragamo brasil roupas acessorios ltda total central south america total salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting thousands euro company purchases finished products raw materials accessories consumables costs services operating costs financial charges total ferragamo deutschland gmbh ferragamo france ferragamo suisse ferragamo monte carlo ferragamo belgique ferragamo espana ferragamo limited ferragamo austria gmbh ferragamo retail nederland total europe ferragamo hong kong ltd ferragamo retail hong kong ltd ferragamo australia pty ltd ferragamo japan ferragamo moda shanghai ltd ferragamo retail india private limited ferragamo retail taiwan limited ferragamo retail macau limited ferragamo fashion trading shanghai ltd ferragamo korea ltd ferragamo singapore pte ltd ferragamo thailand limited ferragamo malaysia sdn bhd total asia pacific ferragamo usa inc group total north america ferragamo mexico ferragamo chile ferragamo argentina ferragamo brasil roupas acessorios ltda total central south america total salvatore ferragamo annual report december fees paid directors statutory auditors directors thousands euro full name position held term office end term office fees non monetary benefits salaries bonuses incentives fees stock grant position held committee member total leonardo ferragamo chair angelica visconti deputy chair marco gobbetti ceo general manager giacomo ferragamo director patrizia michela giangualano director umberto tombari director laura donnini director niccolò ferragamo director sara ferrero director ernesto greco director fabio gallia director annalisa loustau elia director frédéric biousse director total upon approval financial statements mutual agreement termination employment effective date approval draft financial statements march car mobile phone insurance policies accommodation statutory auditors thousands euro full name position held term office end term office fees position held fees fees received subsidiaries grand total andrea balelli chair paola caramella acting statutory auditor giovanni crostarosa guicciardi acting statutory auditor total upon approval financial statements fees refer amounts due position chair member supervisory body pursuant italian legislative decree please note members board statutory auditors received fees group companies noted directors statutory auditors severance indemnities envisaged salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting commitments risks breakdown commitments risks follows thousands euro december december sureties guarantees provided third parties third parties interests company sureties guarantees provided third parties third parties interests group companies guarantees provided company third parties interests group companies total sureties guarantees provided third parties interests company consist bank sureties guarantees leases sureties guarantees provided third parties interests group companies represent sureties guarantees leases entered group companies including guarantee million dollars equal thousand euro relating lease ferragamo usa group guarantees provided company third parties interests group companies mainly favor banks guarantee credit lines may used locally public funds disclosure per article paragraphs italian law pursuant article paragraph italian law requirement disclose explanatory notes sums money received financial year way grants contributions paid assignments economic benefits kind public administrations entities referred paragraph article salvatore ferragamo receive grants contributions paid assignments economic benefits kind public administrations accordance article quater italian law decree converted relevant amendments law february respect funds received please refer information national state aid register per article italian law december significant non recurring events transactions company carry significant non recurring transactions significant non recur ring events occurred transactions arising atypical unusual transactions company undertake atypical unusual transactions transactions due importance size counterparties involved subject transaction means determining transfer price timing event may give rise doubts correctness completeness information pro vided financial statements conflicts interest safeguarding company equity protection minority interests salvatore ferragamo annual report december information direct indirect subsidiaries salvatore ferragamo direct indirect subsidiaries salvatore ferragamo december detailed company name location currency share capital december controlling interest notes direct indirect ferragamo retail nederland amsterdam netherlands euro ferragamo france paris france euro ferragamo deutschland gmbh munich germany euro ferragamo austria gmbh vienna austria euro ferragamo limited london united kingdom pound sterling ferragamo suisse mendrisio switzerland swiss franc ferragamo belgique brussels belgium euro ferragamo monte carlo principality monaco euro ferragamo espana madrid spain euro ferragamo usa inc new york united states dollar ferragamo canada inc vancouver canada canadian dollar fer international inc new york united states dollar sator realty inc new york united states dollar ferragamo mexico mexico city mexico mexican peso ferragamo chile santiago chile chilean peso ferragamo argentina buenos aires argentina argentine peso ferragamo brasil roupas acessorios ltda sao paulo brazil brazilian real ferragamo hong kong ltd hong kong china hong kong dollar ferragamo japan tokyo japan japanese yen ferragamo australia pty ltd sydney australia australian dollar ferrimag limited hong kong china hong kong dollar ferragamo fashion trading shanghai ltd shanghai china dollar ferragamo moda shanghai ltd shanghai china dollar ferragamo retail limited hong kong china hong kong dollar ferragamo retail taiwan limited taipei taiwan new taiwanese dollar ferragamo retail macau limited macau china macau pataca ferragamo retail india private limited new delhi india indian rupee ferragamo korea ltd seoul south korea south korean ferragamo singapore pte ltd singapore singapore dollar ferragamo thailand limited bangkok thailand baht ferragamo malaysia sdn bhd kuala lumpur malaysia malaysian ringgit ferragamo usa inc ferragamo hong kong ltd ferrimag limited non operating company salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting significant events occurred december february company marco gobbetti reached mutual agreement termination employ ment administrative relationship effective date approval draft financial statements march announced market date addition announced marco gobbetti entitled receive salary fixed remuneration til date termination maintain certain fringe benefits december marco gobbetti paid within days termination relationships total gross amount thousand euro termina tion employment relationship gross amount thousand euro waivers granted relation ecution termination relationships including particular waiver sti restricted shares lti special award bonuses iii reference governance company period march date appointment new chief executive officer executive powers conferred chair propose distribution delegated powers supported transition advisory committee composed experts consolidated experience sector already worked top management positions within company namely james ferragamo ernesto greco michele norsa take role chairman special advisor consolidate new phase sustainable devel opment brand founding values building work done far aim entering new phase renewal process accelerating implementation strengthening fundamental link brand heritage announcement made february marco gobbetti officially resigned administrative positions company effective march accordance mutual termination agreement reached parties time marco gobbetti duties responsibilities towards company ended accordance mutual termination agreement board directors met day determined opting new member necessary leaving relevant decisions shareholders meeting scheduled april meeting proposal chair favorable opinion nomination remuner ation committee board directors also made certain decisions regarding corporate offices redistributing delegated powers remain effect new chief executive officer identified efficient effective search process specifically executive chair leonardo ferragamo directors james ferragamo ernesto greco granted management powers support chair advisory committee composed directors delegated powers chairman special advisor michele norsa remains confirmed communi cated february light new structure accordance recommendation corporate governance code article board directors regulation patrizia michela giangualano appointed lead independent director meeting held march board directors inter alia approved draft separate financial statements december consolidated financial statements december direc tors report operations containing ferragamo group sustainability report prepared accordance new provisions introduced corporate sustainability reporting directive csrd implemented italian legislative decree european sustainability reporting standards esrs prepared efrag issued european commission delegated regulation approved corporate governance report prepared company pursuant article bis consolidated salvatore ferragamo annual report december law finance iii approved favorable opinion nomination remuneration committee remuneration policy report fees paid prepared pursuant article ter consolidated law finance article quater annex scheme bis consob regulation amended article corporate governance code listed companies approval next shareholders meeting details please refer documentation made available company website https group ferragamo com section governance shareholders meetings resolved call ordinary extraordinary share holders meeting salvatore ferragamo april confirmed appointment cfo financial reporting officer sustainability reporting officer proposal approve financial statements allocation profit board directors salvatore ferragamo relation results achieved proposes approve separate financial statements cover loss totaling euro using extraordinary reserve salvatore ferragamo annual report december board directors report consolidated financial statements separate financial statements consolidated sustainability reporting disclosure pursuant article duodecies issuers regulation thousands euro type services subject supplied service recipient notes total fees audit parent company independent auditors parent company services parent company independent auditors parent company network parent company independent auditors parent company total item primarily refers certification consolidated non financial statement certifications research development credit florence march behalf board directors chair leonardo ferragamo salvatore ferragamo annual report december statement pursuant article bis italian legislative decree february consolidated law finance undersigned marco gobbetti capacity chief executive officer pierre giorgio sallier tour capacity financial reporting manager salvatore ferragamo certify also taken account provisions article bis paragraphs italian legislative decree february adequacy relation company structure effective application administrative accounting procedures preparation separate financial statements period january december adequacy administrative accounting procedures preparation separate financial state ments assessed basis internal control integrated framework issued com mittee sponsoring organizations treadway commission generally accepted model interna tionally also certified separate financial statements december prepared accordance applicable international accounting standards endorsed european union pursuant regulation european parliament council dated july subsequent integrations correspond accounting books records suitable provide true fair representation financial conditions results operations cash flows company directors report operations includes reliable analysis operating performance results well situation company together description main risks uncertainties exposed florence march chief executive officer marco gobbetti financial reporting manager pierre giorgio sallier tour report board statutory auditors report board statutory auditors shareholders meeting pursuant article italian legislative decree dear shareholders board statutory auditors salvatore ferragamo hereinafter also referred ferragamo company pursuant article italian legislative decree tuf stands testo unico della finanza consolidated law finance shall report shareholders meeting convened approval financial statements supervisory activities carried year well potentially material omissions reprehensible events addition board statutory auditors shall also make proposals regarding financial statements approval well matters within area responsibility report concerns work performed board statutory auditors year ended december hereinafter also referred report separate financial statements closed loss million euro compared profit million euro previous year consolidated level group loss amounted million euro compared profit million euro previous year introduction year ended december board statutory auditors performed supervisory activities required law accordance standards conduct recommended italian national board accountants auditors consiglio nazionale dei dottori commercialisti degli esperti contabili consob regulations corporate controls guidance corporate governance code approved january corporate governance committee activities described formally recorded minutes meetings board statutory auditors held meetings held date report throughout year board statutory auditors alternated person meetings also held company headquarters remote videoconferences appointment board statutory auditors board statutory auditors office reporting date appointed based slate voting system accordance law bylaws also taking account provisions gender balance shareholders meeting april consists andrea balelli chair paola caramella acting statutory auditor giovanni crostarosa guicciardi acting statutory auditor meeting also appointed substitute statutory auditors roberto coccia antonietta donato supervisory activities pursuant article tuf pursuant article tuf board statutory auditors supervises compliance law bylaws adherence principles sound management adequacy company organizational structure far matters within area responsibility concerned internal control system administrative accounting system well latter reliability presenting fairly company operations implementation corporate governance rules set codes conduct issued regulated market operators trade associations company formally adopted public disclosures adequacy instructions company gives subsidiaries pursuant article paragraph tuf supervision compliance law bylaws board statutory auditors acquired information necessary performance supervisory duties assigned attending body presence least one member meetings board directors board committees hearings company group management iii meetings independent auditors particular specific reference board committees board statutory auditors always attended meetings control risks committee acts also committee responsible transactions related parties corporate sustainability nomination remuneration committee events materially impacted financial performance financial position cash flows year board statutory auditors obtained information operations carried transactions materially impacted company financial performance financial position cash flows well group strategic guidelines directors monthly basis board statutory auditors provide reasonable assurance transactions authorized conducted company comply law bylaws manifestly imprudent risky conflict interest contrary decisions shareholders meeting compromise integrity corporate assets addition atypical unusual transactions specifically board statutory auditors reports following significant transactions events occurred april following shareholders meeting appointed current board directors marco gobbetti confirmed chief executive officer company addition line previous term powers granted chair leonardo ferragamo deputy chair angelica visconti meeting pierre tour appointed financial reporting manager pursuant article bis tuf may existence requirements integrity independence directors verified establishment board committees approved june board directors approved modern slavery statement approved appointment new head internal audit effect august august board directors approved update strategic plan approved consolidated half year report june iii approved organizational governance guidelines tax compliance framework tax compliance model interpretative risk management policy updated audit plan october resolved opt director pursuant article italian civil code convene ordinary extraordinary shareholders meeting november october board directors appointed pierre tour former cfo financial reporting manager manager charge certifying sustainability report accordance article bis paragraph ter tuf approved update organizational model pursuant legislative decree december board directors approved budget sustainability plan update organizational model pursuant legislative decree proposal derogate company remuneration policy relation short term incentive plan sti plan addition following significant transactions events occurred reporting date reported january board directors approved regulation manager charge certifying sustainability report pursuant article bis paragraph ter tuf february mutual agreement reached company marco gobbetti termination employment administrative relationship effective date approval draft financial statements march board directors approved draft separate financial statements consolidated financial statements december accompanied sustainability report pursuant italian legislative decree approved final sheets concerning variable remuneration related short term incentive head internal audit iii approved remuneration policy report fees paid noted resignation tendered ceo date approved period march appointment new ceo redistribution management powers chair directors ernesto greco giacomo james ferragamo appointed lead independent director pursuant recommendation lett corporate governance code article board directors regulation confirmed pierre tour already group cfo financial reporting manager manager charge certifying sustainability report accordance provisions article bis paragraph ter tuf board statutory auditors also reports financial year performed functions supervisory body pursuant article legislative decree members appointed members body examined matters addressed said decree found significant reprehensible issues events held regular meetings representatives independent auditors mutually exchange data information material discharge respective duties accordance article paragraph tuf regard material data information disclosed report receive complaints per article italian civil code issued opinions remuneration directors holding specific positions accordance article paragraph italian civil code expressed mandatory opinion appointment financial reporting officer pursuant article bis tuf issued opinions called non audit fees non audit services rendered independent auditors accordance applicable laws company internal procedure examining specifically impact independence nothing report regard addition concerning company bodies functions board statutory auditors reports board directors held meetings control risks committee met times times acting related party transactions committee nomination remuneration committee held meetings times acting nomination committee supervisory body per italian legislative decree held meetings supervision compliance principles sound management adequacy organizational structure board statutory auditors obtained information supervised within scope responsibilities adequacy company organizational structure adherence principles sound management direct observation well gathering information heads corporate departments meeting independent auditors mutually exchange material data information board statutory auditors nothing report regard considers company organizational structure essentially suitable needs group well ensuring compliance principles sound management assessed supervised adequacy administrative accounting system well reliability presenting fairly company operations obtaining information heads relevant departments examining business documents analyzing work independent auditors board statutory auditors nothing report regard board statutory auditors ascertained directors statutory auditors receive adequate supporting documents items agenda board directors meetings reasonable advance notice based information acquired board statutory auditors acknowledges management makes decisions informed reasonable manner directors aware risks impacts transactions carried board statutory auditors find significant atypical unusual transactions including intragroup transactions well intragroup non intragroup related party transactions addition board statutory auditors also assessed adequacy information disclosed directors report operations lack significant atypical unusual transactions supervision actual implementation corporate governance rules pursuant article paragraph lett bis tuf concerning supervision board statutory auditors actual implementation corporate governance rules set codes conduct issued regulated market operators trade associations company formally adopted public disclosures board statutory auditors supervised actual implementation corporate governance rules set codes conduct company formally adopted public disclosures pursuant article bis tuf company prepared annual report corporate governance ownership structure corporate governance report accordance corporate governance report format edition approved corporate governance committee december approved board directors march includes information company ownership structure company actual corporate governance practices iii key characteristics existing risk management internal control systems including far separate consolidated financial reporting process concerned functioning shareholders meeting main powers rights shareholders exercise information required esrss corporate governance taking account new sustainability reporting requirements article italian legislative decree composition functioning governing control bodies relevant committees well disclosures required article bis tuf assessments carried directors regarding recommendations formulated chair corporate governance committee sent among others chairs control bodies listed companies december adoption implementation remuneration policy directors managers strategic responsibilities accordance corporate governance code lti share plan called performance restricted shares aimed group managers line provisions corporate governance code implementation share plan called restricted shares implementation procedure commissioning services independent auditors within ferragamo group year addition board statutory auditors acknowledges accordance requirements article paragraph tuf guidance provided italian national board accountants auditors well corporate governance code verified whether members met independence professional expertise competence honesty requirements per applicable laws found criteria procedures adopted board directors annual assessment independence independent directors properly implemented board directors conducted analysis based substantiated evidence consistent decisions concerning identification ferragamo related parties assessment independence carried year board comments make regard iii supervised process aimed adopting policy remuneration directors managers strategic responsibilities line provisions corporate governance code supervision adequacy instructions company gives subsidiaries pursuant article paragraph tuf listed issuers give instructions necessary subsidiaries disclose information required meet disclosure requirements accordance law subsidiaries provide requested disclosures timely manner board statutory auditors supervised adequacy instructions given subsidiaries found company able promptly regularly meet disclosure requirements accordance law including gathering information heads organizational functions regularly meeting independent auditors mutually exchange material data information board statutory auditors nothing report regard addition boards directors subsidiaries generally include among members directors managers parent company vested executive powers thus ensuring coordinated management adequate flow information supported appropriate accounting records intragroup related party transactions accordance article bis italian civil code well consob resolution march containing provisions transactions related parties related party transactions regulation amended march ferragamo board directors favorable opinion related party transactions committee consists independent directors appointed purpose specific resolution board directors accordance article paragraph said regulation adopted related party transaction procedure subsequently last updated august pursuant article said regulation certify procedure adopted company consistent principles set regulation published company website https group ferragamo com based acquired information several transactions related parties carried within group third parties far know based also supervisory work transactions related parties carried essentially accordance said procedure regulation main transactions related parties authorized concerned agreements lungarno alberghi accommodation guests events milan fashion week payment additional fixed annual remuneration chair board directors deputy chair iii framework agreement related party identified accommodation guests milan fashion week events signing consultancy agreement director additional intragroup transactions examined appear part ordinary course business concern commercial services well exchange administrative financial organizational services transactions carried arm length terms determined accordance standard parameters reflecting actual use services concerned interest company transactions non intragroup related parties examined also appear part ordinary course business fall within day day operating activities relevant financing activities concluded arm length standard terms transactions related parties disclosed explanatory notes separate consolidated financial statements along relevant economic impact opinion said transactions carried interest company supervision pursuant italian legislative decree pursuant article italian legislative decree amended italian legislative decree board statutory auditors referred internal audit committee shall notify audited entity governing body audit findings well submit additional report per article regulation said body along observations monitor financial reporting process monitor effectiveness internal control internal audit risk management systems monitor statutory audit annual consolidated financial statements verify monitor independence statutory auditors independent auditors pursuant articles bis ter quater said decree well articles regulation concerning especially adequacy non audit services provided audited entity accordance article said regulation oversee procedure selection statutory auditors independent auditors recommend statutory auditors independent auditors appointed pursuant article regulation board statutory auditors worked control risks committee established within board directors order coordinate respective duties avoid potential overlaps regard practice introduced ferragamo inviting entire board statutory auditors meetings control risks committee makes relations fluid facilitates coordination exchange information two bodies even activities control risks committee refer issues specific relevance purposes italian legislative decree supervisory matters mentioned concerning specifically activities set italian legislative decree statutory auditing report following disclosure audit findings additional report per article regulation governing body pursuant article italian legislative decree board statutory auditors notified governing body audit findings well submitted additional report per article regulation issued independent auditors today date supervision financial reporting process board statutory auditors ascertained existence rules procedures concerning preparation disclosure financial information regard corporate governance report reflects guidelines internal control risk management system well appropriate financial reporting methods procedures board statutory auditors help financial reporting manager examined procedures concerning preparation company separate financial statements consolidated financial statements well interim financial reports addition board statutory auditors obtained evidence process allowing financial reporting manager well competent director issue certifications required article bis tuf board statutory auditors learned administrative accounting procedures preparation financial statements financial disclosures overseen financial reporting manager together ceo certifies adequacy actual implementation purposes preparing separate consolidated financial statements well half year report march ceo financial reporting manager issued certifications consolidated separate financial statements required article bis tuf according templates complying provisions article ter consob regulation amended supplemented therefore board statutory auditors considers financial reporting process adequate nothing report shareholders meeting supervision effectiveness internal control internal audit risk management systems board statutory auditors including together control risks committee regularly met pro tempore head internal audit informed findings audits aimed verifying adequacy operation internal control system accordance law well corporate procedures processes implementation relevant plans improvement addition board statutory auditors received audit plan approved board directors january control risks committee board statutory auditors issued favorable opinion meeting held january well regular updates progress plan potential corrective actions addition received report head internal audit year well control risks committee report six monthly basis company adopts integrated risk management model line erm enterprise risk management standards best practices inspired framework issued committee sponsoring organizations treadway commission coso erm enterprise risk management system regulated erm framework policy approved board directors meeting january framework defines methods guidelines identifying assessing managing main business risks well organizing control measures protect erm process supports senior management analysis risks direct indirect impact achievement strategic sustainability objectives involves top management risk owners assessment risk exposures regular basis accordance policy group risks assessed six monthly basis using structured approach combines qualitative quantitative criteria group internal control risk management function assists management analyzing countermeasures controls place implemented ensure effectiveness mitigating risk context erm committee established chaired ceo coordinated group internal control risk management function participation risk owners committee analyses verifies group risk map assesses risks interactions ensures effective strategies place reduce significant exposures erm committee meets least every three months whenever risk reports submitted control risks committee board directors finally noted entry force corporate sustainability reporting directive csrd implemented italy italian legislative decree expanded reporting requirements compared previous nfrd introducing new transparency standards environmental social governance esg performance aim strengthening corporate sustainability responsibility therefore board statutory auditors considers overall internal control system essentially adequate nothing report shareholders meeting supervision statutory audit annual consolidated financial statements accounting procedures audited accordance law audit firm kpmg shareholders meeting april appointed independent auditors years board statutory auditors held regular meetings audit firm kpmg mutually exchange information perform respective duties including pursuant article paragraph tuf based meetings held material issues report concerning auditing activities significant deficiencies integrity internal control system far specifically financial reporting process concerned today kpmg issued report separate financial statements consolidated financial statements prepared accordance international financial reporting standards issued international accounting standard board iasb endorsed european union well compliance provisions issued implementation article legislative decree furthermore report kpmg issued opinion compliance single disclosure format esef provisions delegated regulation opinion consistency directors report operations information corporate governance report financial statements report include objections requests additional disclosures report consolidated financial statements independent auditors declare ascertained directors approved consolidated sustainability report independence audit firm specifically concerning provision non audit services concerning annual review independence requirements board statutory auditors states received written confirmation audit firm submission additional report issued today accordance article regulation board statutory auditors supervised independence audit firm received evidence regular basis non audit services assigned assigned pursuant specific regulatory provisions independent auditors ferragamo group consolidated financial statements show kpmg rendered following services group including network entity reference period audit services non audit services total euro salvatore ferragamo ferragamo group total board statutory auditors believes fees proportionate extent complexity characteristics work carried non audit services relevant fees compromise independence audit firm board statutory auditors also ensured duties assigned audit firm among cannot assigned pursuant aforementioned regulation relation independent auditors board statutory auditors reports aforementioned additional report kpmg reveal deficiencies internal control system relation financial reporting process reported auditing body cases actual alleged non compliance laws regulations statutory provisions emerged consolidated sustainability report public interest entity pie ferragamo required publish consolidated sustainability report starting line provisions legislative decree implementing corporate sustainability reporting directive csrd regulation requires dual approach considering company impact society environment impact sustainability factors company accordance regulations ferragamo group consolidated sustainability report year ended december approved resolution board directors march included annual report december prepared required ensure understanding group business performance results impact generated board statutory auditors plays central role monitoring adequacy effective functioning internal control risk management system particular reference also sustainability issues new provisions introduced csrd context board statutory auditors monitored compliance regulatory obligations sustainability reporting verified company implemented suitable procedures processes ensure reliability transparency non financial information end board interacted corporate functions responsible overseeing esg issues control risks committee internal audit function information collected centralized process ferragamo group functions coordinated finance function consolidated data coming subsidiaries addition board statutory auditors monitored integration esg factors company business models risk management systems promoting constant alignment national international best practices particular attention also paid company involvement double materiality analysis required csrd assessment company impact environment society well risks opportunities sustainability issues may create business board statutory auditors actively involved processes verification assurance sustainability information also collaboration independent auditors included assessing reliability data analyzing methodologies used measure esg impacts consistency reported information international sustainability standards finally board statutory auditors fostered ongoing dialog governance bodies relevant stakeholders promote proactive integrated approach sustainability thereby contributing transparency credibility company esg reporting concerning specifically examination sustainability report board statutory auditors supervised compliance provisions italian legislative decree within responsibilities assigned law regard board statutory auditors states pursuant article paragraph directive amended csrd directive march company appointed kpmg perform limited audit ferragamo group consolidated sustainability report board statutory auditors received regular updates groundwork preparation consolidated sustainability report today kpmg issued report certifying information contained sustainability report complies provisions decree governing basis preparation article paragraph legislative decree disclosure requirements set article regulation today kpmg issued report compliance separate financial statements hereinafter also referred financial statements consolidated financial statements stated verified consolidated sustainability report prepared board statutory auditors find violations relevant regulatory provisions therefore considers process preparing sustainability report adequate nothing report shareholders meeting separate financial statements consolidated financial statements directors report operations ferragamo draft financial statements approved company board directors resolution march prepared accordance ias ifrs international accounting standards issued international accounting standards board iasb endorsed european union well legislation enacting article italian legislative decree concerning specifically separate financial statements december consolidated financial statements december directors report operations board statutory auditors reports separate financial statements consolidated financial statements prepared accordance structure reporting formats required applicable laws financial statements accompanied directors report operations summarizes main risks uncertainties well describes company outlook report complies applicable laws consistent resolutions governing body well information financial statements addition includes adequate disclosures operations carried year intragroup transactions accordance ifrs section containing related party transaction disclosures included explanatory notes financial statements company also prepared corporate governance report pursuant article bis tuf remuneration report pursuant article ter tuf board statutory auditors received financial statements time filing company registered office along report verified rationality assessments made consistency international accounting standards verified consistency financial statements events information aware result work carried therefore nothing report regard far board statutory auditors aware directors depart provisions per article italian civil code preparing financial statements ferragamo board directors accordance joint document issued bank italy consob isvap march independently approved procedure results impairment test ahead approval draft financial statements ensuring compliance ias information findings assessments carried reported explanatory notes financial statements proposal shareholders meeting financial statements december conclusion board statutory auditors within scope responsibilities noted information financial statements december considering observations included report proposes shareholders meeting approve financial statements presented board directors group remuneration policy board statutory auditors raises objection remuneration policy submitted binding resolution shareholders meeting final remarks board statutory auditors issues report concerning information obtained supervisory activities performed board statutory auditors find omissions reprehensible events irregularities circumstances reported document supervisory authority florence march board statutory auditors andrea balelli chair paola caramella acting statutory auditor giovanni crostarosa guicciardi acting statutory auditor independent auditor report kpmg revisione organizzazione contabile viale niccolò machiavelli firenze telefono email fmauditaly kpmg pec kpmgspa pec kpmg ancona bari bergamo bologna bolzano brescia catania como firenze genova lecce milano napoli novara padova palermo parma perugia pescara roma torino treviso trieste varese verona società per azioni capitale sociale euro registro imprese milano monza brianza lodi codice fiscale milano partita iva vat number sede legale via vittor pisani milano italia kpmg una società per azioni diritto italiano parte del network kpmg entità indipendenti affiliate kpmg international limited società diritto inglese independent auditors report translated english solely convenience international readers accordingly original italian version authoritative independent auditors report pursuant article legislative decree january article regulation april shareholders salvatore ferragamo report audit separate financial statements opinion audited separate financial statements salvatore ferragamo company comprise statement financial position december income statement statements comprehensive income changes equity cash flows year ended notes thereto include material information accounting policies opinion separate financial statements give true fair view financial position salvatore ferragamo december financial performance cash flows year ended accordance ifrs accounting standards issued international accounting standards board endorsed european union well italian regulations implementing article legislative decree basis opinion conducted audit accordance international standards auditing isa italia responsibilities standards described auditors responsibilities audit separate financial statements section report independent company accordance ethics independence rules standards applicable italy audits financial statements believe audit evidence obtained sufficient appropriate provide basis audit opinion key audit matters key audit matters matters professional judgement significance audit separate financial statements current year matters addressed context audit separate financial statements whole forming opinion thereon provide separate opinion matters salvatore ferragamo independent auditors report december measurement finished products notes separate financial statements note statement compliance ifrs basis presentation note inventories key audit matter audit procedures addressing key audit matter separate financial statements december include finished products million net allowance inventory write million determining allowance finished products write complex accounting estimate entailing high level judgement affected many factors including characteristics company business sector market performance fashion trends age collection stock pricing policies sales ability different distribution channels reason believe measurement finished products key audit matter audit procedures included understanding process measurement finished products assessing design implementation material controls checking changes inventories year considering finished products expected life cycle based age analysing documents discussing assumptions adopted calculate allowance finished products write relevant internal departments order understand assumptions underlying expectations finished products sold comparing assumptions historical figures company operating environment assessing appropriateness disclosures provided notes finished products matters management coordination required law company disclosed key figures latest financial statements company manages coordinates notes separate financial statements opinion separate financial statements salvatore ferragamo extend data responsibilities company directors board statutory auditors collegio sindacale separate financial statements directors responsible preparation separate financial statements give true fair view accordance ifrs accounting standards issued international accounting standards board endorsed european union well italian regulations implementing article legislative decree within terms established italian law internal control determine necessary enable preparation financial statements free material misstatement whether due fraud error directors responsible assessing company ability continue going concern appropriate use going concern basis preparation separate financial statements adequacy related disclosures use basis accounting appropriate unless directors believe conditions liquidating company ceasing operations exist realistic alternative collegio sindacale responsible overseeing within terms established italian law company financial reporting process salvatore ferragamo independent auditors report december auditors responsibilities audit separate financial statements objectives obtain reasonable assurance whether separate financial statements whole free material misstatement whether due fraud error issue auditors report includes opinion reasonable assurance high level assurance guarantee audit conducted accordance isa italia always detect material misstatement exists misstatements arise fraud error considered material individually aggregate could reasonably expected influence economic decisions users taken basis separate financial statements part audit accordance isa italia exercise professional judgement maintain professional scepticism throughout audit also identify assess risks material misstatement separate financial statements whether due fraud error design perform audit procedures responsive risks obtain audit evidence sufficient appropriate provide basis opinion risk detecting material misstatement resulting fraud higher one resulting error fraud may involve collusion forgery intentional omissions misrepresentations override internal control obtain understanding internal control relevant audit order design audit procedures appropriate circumstances purpose expressing opinion effectiveness company internal control evaluate appropriateness accounting policies used reasonableness accounting estimates related disclosures made directors conclude appropriateness directors use going concern basis accounting based audit evidence obtained whether material uncertainty exists related events conditions may cast significant doubt company ability continue going concern conclude material uncertainty exists required draw attention auditors report related disclosures separate financial statements disclosures inadequate modify opinion conclusions based audit evidence obtained date auditors report however future events conditions may cause company cease continue going concern evaluate overall presentation structure content separate financial statements including disclosures whether separate financial statements represent underlying transactions events manner achieves fair presentation communicate charged governance identified appropriate level required isa italia regarding among matters planned scope timing audit significant audit findings including significant deficiencies internal control identify audit also provide charged governance statement complied ethics independence rules standards applicable italy communicate relationships matters may reasonably thought bear independence applicable measures taken eliminate threats safeguards applied matters communicated charged governance determine matters significance audit separate financial statements current year therefore key audit matters describe matters auditors report salvatore ferragamo independent auditors report december information required article regulation april parent shareholders appointed perform statutory audit separate consolidated financial statements years ending december december declare provide prohibited non audit services referred article regulation remained independent company conducting statutory audit confirm opinion separate financial statements expressed herein consistent additional report collegio sindacale capacity audit committee prepared accordance article regulation mentioned report legal regulatory requirements opinion compliance provisions commission delegated regulation company directors responsible application provisions commission delegated regulation regard regulatory technical standards specification single electronic reporting format esef separate financial statements december included annual financial report performed procedures required standard auditing italia order express opinion compliance separate financial statements commission delegated regulation opinion separate financial statements december prepared xhtml format compliance provisions commission delegated regulation opinion statement pursuant article bis ter legislative decree article bis legislative decree company directors responsible preparation directors report report corporate governance ownership structure december consistency reports related separate financial statements compliance applicable law performed procedures required standard auditing italia order express opinion consistency directors report certain specific information presented report corporate governance ownership structure required article bis legislative decree separate financial statements express opinion consistency directors report excluding section includes consolidated sustainability statement certain specific information presented report corporate governance ownership structure required article bis legislative decree applicable law issue statement material misstatements directors report certain specific information presented report corporate governance ownership structure required article bis legislative decree salvatore ferragamo independent auditors report december opinion directors report specific information presented report corporate governance ownership structure required article bis legislative decree consistent company separate financial statements december moreover opinion excluding section includes consolidated sustainability statement directors report specific information presented report corporate governance ownership structure required article bis legislative decree prepared compliance applicable law reference statement required article ter legislative decree based knowledge understanding entity environment obtained audit nothing report opinion compliance applicable law extend section directors report includes consolidated sustainability statement conclusion compliance section legislation governing preparation disclosure requirements article regulation included assurance report prepared accordance article bis legislative decree florence march kpmg signed original andrea rossi director audit