annual financial report courtesy translation convenience international readers contents letter shareholders corporate details corporate governance bodies december brunello cucinelli group december group structure december distribution network report operations board directors company philosophical strategic report company information summary data december group results year analysis revenues revenues geographical area revenues distribution channel revenues product line end customer analysis consolidated income statement ebitda results operating costs depreciation amortization net financial expense net profit analysis balance sheet financial items net working capital fixed assets non current assets liabilities investments net financial debt shareholders equity annual financial report annual financial report reconciliation shareholders equity net profit parent company consolidated shareholders equity net profit information corporate governance performance company share listed borsa italiana milan euronext stock exchange significant events related party transactions information significant companies outside certification per art paragraph market regulation adopted resolution december main risks uncertainties research development public grants environmental risks financial risk management significant events december management outlook consolidated sustainability statement december idea humanistic capitalism human sustainability general disclosures environmental information social information governance information consolidated financial statements december financial statements december consolidated statement financial position december consolidated income statement december consolidated statement comprehensive income december consolidated cash flow statement december consolidated statement changes shareholders equity december explanatory notes consolidated financial statements december basis preparation scope consolidation accounting standards changes accounting standards new accounting standards changes estimates reclassifications translation financial statements currency euro translation foreign currency items comments main items consolidated statement financial position comments main items consolidated income statement financial risk management information related party transactions significant events december compensation board directors board statutory auditors disclosure pursuant article duodecies issuers regulation balances transactions deriving atypical unusual operations certification per art bis legislative decree dated february consolidated law finance article ter consob reg dated may amended certification consolidated sustainability statement independent auditors report consolidated financial statements independent auditors report limited review consolidated sustainability reporting annual financial report annual financial report letter shareholders dear shareholders would like begin customary letter sincere thanks behalf casa moda rewarded particularly positive results including reaching milestone twelve years since listing stock exchange would possible without trust chose place company together years undertaken long exciting journey numerous challenges faced rewarded feelings togetherness hope remain truly grateful today back decision embrace humanistic dream dream pursued every day present also looks future cherished idea planning next years generations come inherit world choose safeguard today opportunity meet celebrate beautiful journey evening gratitude september milan together esteemed analysts journalists bankers industrialists sup ported time listing right present day meeting gave chance remember value listing inextricably linked value dignity every shape form experience allowed grow experience unforgettable moments great humanity enabled share world humanistic ideas support truly historic moment casa moda result attribute choices inspiration root ideals humanistic capitalism human sustainability always guided profound values like respect human dignity beauty creation value labour skilled manual work physical spiritual dimension aesthetic enhancement spaces part lives natural landscapes work environments continue inspire journey could possibly forget mention great theme artisan trades crucially important theme skilled manual work duty protect dignify recognising great value economic moral believe values like everlasting sources nourishment work driving instil quality uniqueness humanity everything create solomeo steadfastness determination like think precisely humanistic values led receiving series prestigious awards consider important recognition way working creating last sep tember milan received visionary award cnmi sustainable fashion awards shortly october new york awarded prestigious wwd john fairchild honor lifetime achieve ment award influential women wear daily magazine recognition ongoing success based excellence made italy craftsmanship perennial focus mastery creativity craftsmanship exclusivity dignity man november received important good business award assigned bloomberg china year ahead event values humanistic capitalism human sustainability shape every aspect company craftsmanship new frontiers technological innovation like define artificial human intelligence particularly honoured received awards apart representing fascinating tribute way business dedicated distinctive taste designer year award con ferred china men magazine stunning location puyuan neiman marcus fashion award designer year received london british proud awards contribute recognising first value beating heart com pany great expertise artisans daily creativity valued collaborators foundations supporting creations ability express excellence culture mutual respect trust grace strive promote solomeo believe value awards also naturally embraces artisan workshops suppliers built lasting positive relationships based mutual esteem desire create something new innovative every day always respecting great traditional manufacturing trades already mentioned idea planing years come aspect inherent philosophy company year major investments reflect desire expand company foundations growth desire strengthen brand appeal outskirts solomeo vast site previously occupied industrial complex derelict build new structure allow significantly expand factory industrial estate home company headquarters solomeo valley volved pleasant peripheries project new production facility also housed restored building enabling avoid exploiting undeveloped land also make human footprint beautiful harmonious large windows allow staff work bright airy welcoming spaces moment enjoy views sky inspired beauty creation well expansion factory solomeo work also underway new production facilities located penne abruzzo gubbio veritable centres excellence dedicated production men outerwear tailored suits important ensure create factories welcoming well designed spacious accordance beautiful factory principles always inspired terms design creation work spaces human dignity ultimate goal every action goes hand hand dignity labour wish enhance protect especially manual labour artisan trades feel duty safeguard pass future generations believe manufacturing something country truly proud remarkable heritage recognised esteemed world thus culture work espe cially artisan trades important part mix terms human sustainability way business goes hand hand advanced training offer launched school contemporary high craftsmanship arts dedicated young people eager learn traditional craftsmanship trades attention devote younger generations evolution traditional crafts mutual influence digital world manual skills represents important sensitivity towards ture looking skilled trades give substance growth prestige made italy craftsmanship around world explore themes digital development important every aspect contemporary life may organised second universal symposium soul economics picking developing conversation initiated first edition held three day symposium attended numerous personalities top international experts artificial intelligence many others dialogue leading experts fields humanism art science nature gave chance reflect great existential themes modern civilisation like relationship ethics artificial intelligence humanism technology annual financial report annual financial report time spent fascinating minds like call young leonardos third millennium underlined one fundamental values adopted guide times great change techno logical innovation blessing creation must welcomed nurtured light humanistic val ues order boost fruitfulness expressions human genius also making fairer firmly believe care attention tradition goes hand hand serene propensity growth must always seize best century offers guided fear hope highest ideals convictions mind mid july launched new brunello cucinelli powered website culmination three years study work pleased positive feedback numerous experts field study advanced application artificial intelligence declared new website veritable invention past months packed full events give confidence inspiration busy calendar awaits casa moda honoured pleased excellent sales results spring summer collection achieved invaluable help multibrand clients enthusias tic response specialist press recent order intake new men women fall winter collections also positive echoing equally positive comments received response respective presentations profoundly grateful full year results mindful essential value growth line vision development gracious attentive great theme balance reasons believe look confidently future envisaging years beautiful balanced growth around healthy profits would like devote one final thought beloved young people sentinels future like call would like try pass message great faith would like urge courage replace fear hope courage look sky take inspiration wonder cre ation would like encourage humanity young hopes turn backs neighbour look kindness affection convinced difficult moments encounter life even touch smile another human help restore inner serenity confident world younger generations succeed safeguarding universal values humanity managing guide wisely towards tempus novum like dawn bright future solomeo march brunello cucinelli chairman board directors corporate details registered office parent company brunello cucinelli viale parco dell industria solomeo hamlet corciano perugia legal data parent company approved share capital subscribed paid share capital perugia business registry corporate website http investor brunellocucinelli com eng annual financial report annual financial report corporate governance bodies december board directors brunello cucinelli chairman riccardo stefanelli managing director ceo luca lisandroni managing director ceo camilla cucinelli executive director vice president carolina cucinelli executive director vice president alessio piastrelli director giovanna manfredi director andrea pontremoli director ramin arani independent director maria cecilia manna independent director stefano domenicali independent director guido barilla independent director chiara dorigotti independent director katia riva independent director lead independent director maria cecilia manna control risk committee maria cecilia manna chairperson chiara dorigotti katia riva remuneration appointments committee chiara dorigotti chairperson ramin arani katia riva board statutory auditors paolo prandi chairperson dante valobra standing auditor anna maria fellegara standing auditor isabella ippolita soldani alternate auditor myriam amato alternate auditor independent auditors pricewaterhousecoopers financial reporting officer dario pipitone appointed ordinary shareholders meeting april remain office shareholders meeting called approve financial statements year ending december vice president designate board directors meeting july following changes articles association approved extraordi nary shareholders meeting april opted board directors meeting july replace independent non executive director emanuela bonadiman tendered resignation june brunello cucinelli group december brunello cucinelli retail spain brunello cucinelli gmbh sas brunello cucinelli france resort pinturicchio dorica vestis brunello cucinelli suisse brunello cucinelli hellas logistica distribuzione max vannucci brunello cucinelli austria gmbh sprl brunello cucinelli belgium brunello cucinelli europe brunello cucinelli sichuan fashion ltd brunello cucinelli hong kong ltd brunello cucinelli japan ltd sam brunello cucinelli monaco brunello cucinelli canada ltd brunello cucinelli macau fashion ltd brunello cucinelli singapore pte ltd ooo brunello cucinelli rus brunello cucinelli taiwan ltd brunello cucinelli middle east llc brunello cucinelli england ltd sarl brunello cucinelli france brunello cucinelli kuwait readymade novelty clothes retail wll brunello cucinelli usa inc market service inc brunello cucinelli remaining percentage held brunello cucinelli remaining percentage held brunello cucinelli europe percentage ownership held virtue voting agreements minority shareholder annual financial report annual financial report group structure december company name location brunello cucinelli corciano solomeo hamlet italy brunello cucinelli europe corciano solomeo hamlet italy dorica vestis corciano solomeo hamlet italy pinturicchio corciano solomeo hamlet italy max vannucci corciano italy logistica distribuzione milan italy brunello cucinelli austria gmbh vienna austria sprl brunello cucinelli belgium brussels belgium brunello cucinelli england ltd london united kingdom sarl brunello cucinelli france paris france sas brunello cucinelli france resort paris france brunello cucinelli gmbh düsseldorf germany brunello cucinelli hellas athens greece sam brunello cucinelli monaco principality monaco ooo brunello cucinelli rus moscow russia brunello cucinelli retail spain madrid spain brunello cucinelli suisse lugano switzerland brunello cucinelli canada ltd vancouver canada brunello cucinelli usa inc ardsley usa market service inc new york usa brunello cucinelli sichuan fashion ltd chengdu china brunello cucinelli hong kong ltd hong kong china brunello cucinelli macau fashion ltd macao china brunello cucinelli japan ltd tokyo japan brunello cucinelli singapore pte ltd singapore brunello cucinelli taiwan ltd taipei china brunello cucinelli middle east llc dubai united arab emirates brunello cucinelli kuwait readymade novelty clothes retail wll kuwait city kuwait distribution network group offers products market number different distribution channels standpoint end customer group present market retail distribution channel distribution channel group sells directly end customer directly operated stores called dos directly operated stores hard shops spac located inside department stores managed group responsibility directly employed staff december directly operated stores dos numbered along hard shops within department stores wholesale distribution channel distribution channel group sells independent partners result case resellers group customers end customer channel therefore includes single brand stores operated third parties commercial distribu tion agreements single brand wholesale independent multi brand points sale dedicated shop shops department stores multi brand wholesale group avails network agents distributors sales number single brand multi brand wholesale customers december single brand wholesale boutiques summary provided brunello cucinelli group single brand sales network december compared situation december distribution channel december december retail wholesale following table sets existing sales points december geographical area italy europe americas asia total total brunello cucinelli stores annual financial report annual financial report report operations board directors report operations board directors annual financial report report operations board directors company philosophical strategic report product work important respects based luxury always thought speaking luxury means speaking beauty child lived countryside constant contact purest form beauty creation every morning every evening would observe cyclical nature seasons returned year year always eternal word beauty one first appear bible think beautiful good meaning convinced exist measure fond words greeks embraced guide kalòs kai agathòs beautiful good katà metron according measure sometimes think beauty universal rule serene life rule like one side coin flip side aesthet ics reasons believe also direct dynamic effective link aesthetics governs beauty ethics guide behaviour according moral values fascinated dostoevsky prophecy beauty save world annual financial report report operations board directors like beauty even cannot explained according reason perhaps precisely golden dust madness poets one see truth fruitful product beauty every day reminded link beauty truth aristotle argued truth turn wonder even though philosopher love philosophy great thinkers taught thousand things according plato starting physical beauty beauty gods laws one finally reaches beauty knowledge thomas great saint stated simply something produces pleasure beauty another great thinker kant maintained beauty without concept purpose stir gentle pleasure regarding luxury stated luxury found human beings good taste satisfies variety capacity judgement provides many employment enlivens whole social life developed idea gentle luxury faithful expression idea creations style gentleness one greatest factors happiness believe allows follow good demon reason ancient greeks called happiness eudamonia gentle luxury concept close beauty easy find exclusive definition see luxury symbol luxury appears symbolic something binds beauty gentle luxury simply friend welcomes sincere smile someone reaches creativity genius without excess finding beauty simplicity hospitality everyone right pace always welcome awareness value respecting others gentle luxury universal value well represented women hence idea contextual figurative representation many women whose glorious deeds immortalised history idea taken form poster almost contemporary tapestry brings together nine evocative female figures across ages including sappho famous poet lived centuries theano greek philosopher disciple probably wife pythagoras hypatia philosopher mathematician alexandria lived centuries idea testimony expresses hope simplicity feeling gratitude women contributed greatness culture arts humanity brunello cucinelli chairman board directors annual financial report report operations board directors company information brunello cucinelli casa moda company incorporated italian law registered office solomeo viale parco dell industria listed euronext milan stock exchange borsa italiana business casa moda focused creation production sale brunello cucinelli branded clothing accessories lifestyle make women men children total look collections always conceived expression ethical human values cultivated hamlet solomeo brand internationally recognised benchmark made italy excellence point reference luxury goods sector ability combine timeless qualities derived selection finest materials craftsmanship exclusivity contemporary creativity attentive market trends technological innovations company based founding values respect human dignity beauty creation pur sues growth line principles balance harmony sustainability constant attention rhythms mankind nature brunello cucinelli casa moda universally recognised prime example humanistic capitalism combining safeguarding traditions appreciation thinking souls work greater good company promotion important projects aimed beautifying creation legacy left future generations annual financial report report operations board directors year enchanting year thanks great results achieved casa moda turnover amounted million thanks positive sales recorded course whole year quarter quarter company succeeded meeting set objectives sales final weeks year particularly direct sales channel allowed exceed even optimistic growth expectations reviewed start december increase revenues constant exchange rates represents excellent sales result also testifies important consolidation brand image operating income amounted million increase compared previous year net profit amounted million representing growth results show solid income state ment structure ebit margin healthy profit ratio balance sheet financial position equally solid net financial debt core business million december plus significant level investments reaching million impact sales essential preserving contemporaneity company brand exclusivity results fully confirmed sustainability idea gracious growth develops gradually always remaining faithful principles humanistic capitalism human sustainability also believe brand enjoying positive moment perspective style exclusivity craftsmanship remain committed ever outstanding customer care strive pass way working according measure utmost respect every living approach fosters authentic enduring relationships enhancing quality products overall experience every client resounding satisfaction sales performance matched optimism regarding brand prospects believe well supported identifying features business model include exclusive network direct boutiques constantly work ensure always offer clients modern attractive spaces collaborators chance showcase quality style collections also taking role genuine ambassadors lifestyle values brand dynamic wholesale channel geographically well distributed balanced thanks long term plan ning shared valued clients turn show great dynamism profound sense trust strong ties brand balanced distribution turnover within different international geographical areas excellent balance terms contribution men women collections show con sistent growth communication style measured elegant reflecting core values brand order create meaningful authentic bond end customers special relationship strengthened also series events like describe artisan constant synergistic contribution product categories clothing accessories fragrance eyewear towards definition unique identity taste single positioning terms quality price annual financial report report operations board directors believe virtue principles casa moda addition producer clothing distinctive taste qualifies champion unique recognisable lifestyle idea expressed right attention spaces ways brand presents geographical areas prime ample aspect stream messages thanks received customers praise quality products voice appreciation time spent together experience offered boutiques addition growing attention paid consumers luxury goods behaviour companies produce working conditions factory floor moral perspective levels pay requirements workplaces increasingly reflected history reality brand embraced aspects foundation concepts humanistic capitalism human sustainability promoted earliest days company particularly honoured trust loyalty customers embrace new sensitivity looking dynamics luxury sector top flight customers propensity purchase remained changed perhaps even increased comes absolute luxury products fair price note increasingly widespread conscious attentive quest special exclusive type product constant increase demand rare products exquisite craftsmanship creating unique goods finest artisanal quality whose value endures time always one key objectives casa moda growing demand type product dovetails perfectly creative production prospects therefore seems brand enjoying highly fruitful period terms style exclusivity craftsmanship way tries convey valued clients idea way working accord ing measure utmost respect every living therefore glimpse great opportunities lie ahead allows look future great confidence also years envisage growth region dynamics markets collections constant praise new customers essential contribution customers already loyal brand boosted structural increase demand exclusive special contemporary products evenly distributed across markets americas asia europe addition importance local customers positive contribution tourism characterised throughout diverse mix nationalities crucially important element balance brand geographical distribution highly significant growth markets americas asia europe distribution channels retail channel wholesale channel europe company recorded turnover million total sales solid growth area limited major cities also driven numerous resort locations brand maintains presence thanks affectionate local clientèle increasingly diversified tourism annual financial report report operations board directors americas revenues amounted million incidence total turnover growth north america confirms strong demand exclusivity unique garments desired ever increasing number clients asia recorded sales worth million amounting total revenues excellent results middle east south korea japan china confirmed trend steady growth also thanks particularly positive final quarter numerous factors contributed excellent results asia including exclusive distribution clientèle growing appreciation artisanal quality garments increasingly solid positioning brand highest luxury segment regards performance various distribution channels ended excellent result retail channel double digit growth every quarter last quarter comparable performance physical channel also excellent geographical areas december total network stood boutiques furthermore number hard shops december one new space counted months around double digit growth reported digital channel benefited launch mid july new brunello cucinelli powered website welcomed enthusiastically numerous specialists perts field artificial intelligence also excellent results wholesale channel continues central brand strat egy maintaining fundamental role preserving contemporaneity thanks expertise seriousness taste multibrand clients able present collections within stunning spaces spring summer fall winter collections recorded excellent sales significant restock ing year looking sales new spring summer collections start order intake fall winter collections favourable annual financial report report operations board directors international recognition year ended brought two major international awards october new york brunello cucinelli awarded prestigious wwd john fairchild honor illustrious lifetime achievement award bestowed annually renowned american journal women wear daily one influential fashion publications world fully acknowledges outstanding made italy craftsmanship solomeo based casa moda brunello cucinelli chosen recipient edition award light ongoing success company continual innovations perennial focus mastery creativity craftsmanship exclusivi dignity man well philanthropic efforts well future generations cultivated years solomeo based company brunello cucinelli commented event follows profoundly honoured receive prestigious prize awarded years illustrious figures within global fashion industry like consider first foremost tribute dignity labour together collaborators strive cultivate day company solomeo upon receiving wonderful news first thoughts went family collaborators past present creativity grace meticulous work made success possible believe beauty begins beautiful human relationships sense think creations ambassadors annual financial report report operations board directors highest quality raw materials craftsmanship also certain way living working immensely grateful wwd invaluable contribution fostering knowledge appreciation italian taste worldwide esteemed james fallon profound connoisseur beauty spiritual growth always promotes humanity amanda smith ceo fairchild media person great sensitivity grace expertise final thought goes beloved young people sentinels century remind soul always source great thinking addition november year ahead event bloomberg china bestowed brunello cucinelli good business award values humanistic capitalism human sustainabil ity principles always shaped every aspect solomeo based company craftsmanship new frontiers technological innovation human artificial intelligence brunello cucinelli fond calling invites explore fearlessly awards follow highly prestigious acknowledgements received brunello cucinelli recent years neiman marcus award distinguished service field fashion conferred march famous dallas luxury department store designer year also bestowed last year authoritative men magazine china designer year award conferred upon brunello cucinelli authoritative british magazine awards great honour brand celebrate objectives achieved years terms recognition appreciation brunello cucinelli taste specialist press many customers world exclusivity product creation balance exclusivity safeguarding brand casa moda positioned exclusive segment absolute luxury always supported manding clientèle search contemporary products outstanding quality market perception exclusivity key element value seized interpreted order respond demands modern consumers goods firmly believe brand image exclusivity closely linked carefully protected exquisite craftsmanship collections promotion italian lifestyle safeguarding brand means preserving allure discreet communication consistent company identifying values also means careful selection prime sales locations paying constant attention curating company spaces digital presence accordance essential principles sobriety set apart today seeing growing demand high end products numerous sectors context strategy avoiding overexposure product protecting brand identity strengthened allure appeal annual financial report report operations board directors high craftsmanship founding mission casa moda create products outstanding prestige finest artisanal craftsmanship embodying idea exclusivity reflected selection materials production techniques goal make creations designed last passed future generations believe luxury goods customers today looking products characterised exceptional crafts manship expression authenticity refinement modern contemporary aesthetic addition increasing focus sustainability important topic future consolidated demand garments highest quality designed longevity mind every stage creative process behind brunello cucinelli collections involves showcases expert craftsman ship creating virtuous creative cycle driven collaboration highly skilled artisans creative teams synergy allowed place product centre vision based intrinsic quality carve solid positioning brand absolute luxury segment order guarantee quality longevity creations customers opportunity garments repaired refurbished thus prolonging product life approach strengthens bond trust choose products also helps reduce waste hope every garment fruit timeless expert craftsmanship passed next generation handiwork excellence success collections coupled positive sales results high praise sector experts fore highlighted particularly distinctive segment product range artisanal garments highly sophisticated manufacture annual financial report report operations board directors fruit painstaking research experimentation creations characterised complex production techniques unique craftsmanship characteristics also reflected end value customers choose products fully appreciate exceptional quality exclusivity fine balance craftsmanship economic sustainability use entirely manual production techniques advanced innovative methods endows garment unique inimitable quality making piece distinctive one importance ready wear increased exposure visibility daily life led people pay increasing attention image boost ing centrality ready wear segment accounts group total revenues believe priority given product positioning luxury sector enabled brand respond effectively widespread desire dress well requirement shared experi enced customers also younger generations believe ready wear range casa moda oriented towards contemporary elegance enhanced carefully studied looks association distinctive lifestyle allows offer modern customers comprehensive innovative experience time pay great attention renewing shop window displays personalising proposal based specific characteristics market aspects without doubt contributed significantly constant increase number customers recorded past year annual financial report report operations board directors balance synergy sales channels fundamental aspect quality sales balance different distribution channels retail wholesale various geographical areas italy europe americas asia product categories including balance women men collections key element complementarity wholesale retail channels allowed brand treat even distant markets domestic respond growing demand major cities smaller towns luxury resorts multibrand channel recorded another extremely dynamic year positive performance important luxury multibrand speciality stores geographical areas results achieved benefited partners need meet ever stronger demand consequent delivery demands production depart ments managed guarantee far retail channel concerned company continues invest exclusivity network boutiques select new openings expansions repositionings strategic locations balance women men collections casa moda constantly perfecting brand style seeking harmonious balance men women collections bid maintain unique distinctive recognisability regardless prod uct gender stylistic identity reflects savoir faire distinctive aesthetic brunello cucinelli brand distinguishing feature offering absence discreet presence sportier garments logo balanced unmistakeable signature style handcrafted details refined production techniques meticulous combination elements represent essence style praise bestowed collections course year specialist press clients friends brand gives great joy particularly proud positive feedback rec ognise offering fresh contemporary elegance succeeds combining refinement modernity commerce global showcase today physical digital channels complementary ever essential order achieve well structured development distribution disseminate brand image values worldwide commerce conceived digital flagship store featuring vast product range playing vital role showcasing collections company creativity brand lifestyle constant updating platform user experience enables offer intuitive interface consistent identity supported customer care service based solomeo thanks approach company aims offer online shopping experience aligns physical stores characterised care attention warmth dedicated every customer annual financial report report operations board directors idea hospitality concept hospitality always fundamental value casa moda always aimed welcome customers guests offering gracious attention make feel ease share sincere serene human interaction spaces try convey sense hospitality offer hamlet solomeo boutiques years company devoted special attention developing boutique network space expression peaceful welcoming atmosphere combining pleasure familiar domestic vibe ability empathetically communicate philosophy allure solomeo products customer boutiques equipped small bars depending availability different locations generous seating bookcases areas strictly intended sales dedicated relaxation customers guests way strive convey concept hospitality understood italy hamlet solomeo believe essential associate experience inside boutiques authentic sensations idea gracious humanly sustainable luxury inspiration boutiques idea cosy home store managers play role hosts brand ambassadors paying attention details contribute homey warm ambiance annual financial report report operations board directors even smallest boutiques strive create space accommodate small bar refreshments area sign customer care time expression distinctly italian lifestyle celebrates pleasure meeting socialising coffee small refreshment visual merchandising inherent part complete lifestyle offer value store staging carefully curated spaces visual merchandising activities represents fundamental aspect brand image believe visual merchandising plays important role promoting aesthetic perception collections environments perfect harmony also conveying brand philosophy consistent harmonious manner spaces around world store staging aims recreate familiar ambiance hospitality italian homes according possibilities space carefully combined culture hosts sales point company takes special care ensure spaces host collections single brand multi brand product range perceived freshly contemporary coordinated dynamic display regularly renewed attentive needs individual location care digital boutique philosophy guides organisation physical boutique network also point reference image relationship management digital channel digital boutique constantly monitored appear aligned boutique layout also enhanced production specially designed terials especially images videos believe way digital image increasingly important complementary image disseminated physical boutiques also remains fresh stimulating constantly updated capable responding best possible manner demands customers search new products special offers annual financial report report operations board directors try convey sensitivity skill pursue bricks mortar boutiques digi tal world aid people call humanist artisans web ideal meeting point savoir faire new generations knowledge tradition according humanist approaches solomeo brand publications product ranges communications attempt create pleasant time comprehensive experience keeping values demonstrated boutiques around world casa cucinelli experience desire share fundamental value hospitality guiding principle behind casa cucinelli project guiding principle creation casa cucinelli based expression kind familiar relaxed hospitality enshrined meeting space conveys idea lifestyle name casa cucinel intended immediately evoke feelings familiarity well distinctive brand immediately convey certain italian taste casa cucinelli intended host friends collaborators intimate events social receptions receive guests home spaces casa cucinelli include large social lounge library books original language kitchen flavours blended wines stored well series different spaces location designed promote specific values host culture annual financial report report operations board directors great care taken furnishings scrupulous choice rarest precious materials har monious distribution spaces unique antiques recovered restored contemporary perspective finishes refined materials elements revolve around value time exclusive experience intention openly harmoniously convey experience time understood italian lifestyle especially solomeo according approach believe allows best promote value products relationship customers artisan events increasingly important dimension relationship customers represented called artisan events allow establish consolidate bond trust appreciate want connect brand added value event lies limited number guests choice allows create unique per sonalised experiences dedicate right amount time space guest last least create profound harmony genius loci culture location among events particularly fond memories evenings dedicated themes friendship conviviality held shanghai dubai los angeles well two day initiative castello solomeo welcomes paulée inspired ancient annual harvest festival held france annual financial report report operations board directors rounded customary end year convivial meetings esteemed investors case cuc inelli paris london new york milan thank invaluable contribution reflect big issues dominated past year consider together near future gratitude dinner milan stock exchange september held decided call gratitude dinner milan stock exchange way thanking friends borsa italiana esteemed analysts journalists bankers industrialists listed companies well dear investors kept faith accompanied course past years since listing april company floated stock market share price honour great value attributed listed stock market years company always tried remain true ethical founding values values humanistic capitalism human sustainability enhancement craftsmanship forms pursuit harmony creation healthy sustainable growth brunello cucinelli commented evening follows decided public years ago dream mind respect moral economic dignity human work particular artisan trades yesterday evening palaeozoic mezzanotte milan aim dedicate evening gratitude friends borsa italiana esteemed alysts journalists bankers industrialists dear investors supported confidence annual financial report report operations board directors years experience listing provided indelible memories great humanity enabled meet many people share idea rooted humanistic capitalism human sus tainability pursuing healthy balanced decent profit possible would like sincerely thank feel like temporary custodians enterprise looks world solomeo attempt imagine next hundred years sincere gratitude humanistic capitalism human sustainability vision human sustainability drives company harmoniously embraces different spheres environ mental economic cultural spiritual moral technological spheres closely connected others creating multicoloured picture shade plays specific role within broader company strategy brunello cucinelli explained like think sustainability inclusive material spiritual values concrete place vironment economy technology culture spirit morals live together convinced way act sustainable complete way spite technology live immersed nature leibniz put nature make leaps relationships things continuity disruption reason imagine environmental economic technological cultural spiritual moral sustainability artisanal dimension harmonious production humanistic ideals always core choices made activities undertaken company values expressed constant safeguarding dignity labour general every individual deep respect human resources accompanied pursuit healthy balanced development human beings continue play central role constantly pursuing balance fair profit gracious growth casa moda also always strived ensure workplaces reflect attention economic moral dignity company founding ideals conviction nobility work must also guaranteed particular attention workplaces dignity labour centrality company values company development course also aided growing number human resources group currently direct employees number expect increase line expansion plans approximately half human resources operate italy largely specialised production craftsmanship remaining half mainly dedicated commercial activities work various countries around world course company continued devote utmost attention principles humanistic capitalism human sustainability line respect core values company continues pursue fair profit fair growth fair balance annual financial report report operations board directors company concept fair profit also implies fully recognising central role played directly involved manual work particular esteemed workers artisans craftsmanship manual skills constitute cornerstone made italy appreciated world examples excellence highest level making manual work modern attractive thus key objective young people entering labour market coming years particular moment time restoring moral economic dignity skilled manual work absolute priority company well valuable way helping safeguard manufacturing sector economic dignity love beautiful factory pursuit balanced profit translates practical terms devoting attention fair pay esteemed artisans workers company salaries monetary payment noble way achieving another equally lofty goal similarly safeguarding dignity labour also means paying particular atten tion workplaces casa moda always devoted great attention beauty welcoming ambiance orderly nature production spaces vision inspiration behind design beautiful factory solomeo characterised harmonious interiors overlooking fountains green spaces conviction beautiful orderly space favours genius creativity helps produce virtuous cycle esteem responsibility amiability value factory extends far beyond function centre production efficiency also viewed space cultivate outstanding creativity craftsmanship highest quality coincidence brunello cucinelli likes recall words leonardo del vecchio italian entrepreneur business founder insisted addition functional factory must also beautiful annual financial report report operations board directors safeguarding production chain relationships partners throughout company worked hard guarantee constant supply raw materials cultivating rela tionships based collaboration respect mutual understanding thanks superb responsiveness short italian supply chain succeeded managing increase production efficiently delighted continuous growth network small craft enterprises façonisti artisanal nature network remains unchanged firmly believe close relationship territorial human represents added value quality collections allure brand positioning fully line idea luxury absolute importance fundamental role casa moda always attributed italy highlighted approximately artisan workshops around located umbria together rectly managed manufacturing units contribute creation collections offering enhancing creativity product quality goods reliability timeliness deliveries artisan workshops contribute achieving complement genuine manual skills collections needle thread scissors increased even recent years years company established solid relationship mutual trust esteem façonisti considered veritable strategic partners fully integrated manufacturing process work closely house team creatives workers guarantee highest possible quality craftsmanship every garment collections annual financial report report operations board directors course year company manufacturing capacity strengthened thanks dimen sional growth small craft enterprises already collaborate increasing amount time façonisti work given multiple clients finally thanks new highly specialised work shops begun working investment projects handicraft industry balanced growth industrial spaces purchase restoration castle solomeo lay ruins first expansion valley opposite hamlet course years continuous harmonious evolution company prem ises developed tune company philosophy landscape solomeo nestles every stage development guided strong ties local area attention harmony nature people development new manufacturing facilities expansion plans solomeo factory integrate seamlessly project aimed enhancing suburbs places renewed beauty humanity constant respect land sustainable development investment projects handicraft industry short long term growth plans supported major investment plan aimed bringing significant increase manufacturing artisan production capacity investments guarantee manufacturing capacity next decade supporting plans aimed doubling turnover company always held principle produce twice many garments need twice many hands firmly believes industry craftsmanship must mutually beneficial thus supports handicraft industry production efficiency technological innovation hand hand values techniques traditional craftsmanship creation manufacturing model enhances uniqueness artisan quality also achieved taking training new staff specialised production highest quality thanks approach company confident able maintain essential traits recognised great attention quality craftsmanship taste expansion solomeo factory company major investment plans include building new complex part significant expansion solomeo factory proceeding timeline perfectly step expectations new manufacturing logistics centre built reclaimed land site former industrial complex derelict redevelopment project allow avoid using undeveloped land instead redeveloping countryside around hamlet solomeo line company long standing annual financial report report operations board directors preference improving enhancing existing structures preserving protecting landscape company expects project deliver significant increase manufacturing capacity compared current situation thus providing staff even space enhancing manual activities new beautiful factories penne gubbio respect land local area major investment directed towards development new manufacturing facilities dedicated tirely production men outerwear tailored suits within districts specialised italian artisan tailoring beautiful factories penne abruzzo gubbio umbria factories penne gubbio designed welcoming beautifully built spacious line concept beautiful factory long inspired company design construction workspaces accommodate collaborators fundamental element project far concerned addition new specialised human sources setting truly enhances dignity human beings taking new workers specialised pro duction highest quality indeed essential order tackle long term growth plan integrity solid footing maintaining essential traits believe distinguish company market great attention quality craftsmanship taste annual financial report report operations board directors case headquarters solomeo based redevelopment former industrial factories new production facilities also follow clear functional vision laser focused employee well ing respect land local area commenting project beautiful factory gubbio got underway first half brunello cucinelli said gubbio also building small facility magnificent panoramic views medieval citadel work harmony creation confident value beautiful well made garments made italy leave legacy perhaps times come theme sell special garments rather whose masterful hands making little masterpieces second universal symposium soul economics solomeo regard technological sustainability attribute particular importance second universal sympo sium soul economics solomeo took place may solomeo picking first edition held may annual financial report report operations board directors three day symposium provided opportunity reflect length great existential themes modern civilisation like relationship ethics artificial intelligence humanism tech nology event attended large number leading international experts artificial intelligence fields including humanism art science nature guests included reid hoffman world renowned entrepreneur acknowledged one founding fathers generative artificial intelligence awarded honorary phd human sciences university perugia seminal contribution development new technological frontier humanity profoundly grateful commendable contribution attendees discussion including laurene powell jobs philanthropist founder president emerson collective nicholas thompson ceo atlantic james manyika svp google technology society fei fei director stanford institute human centered artificial intelligence refik anadol world renowned artist michael evans president alibaba arvind krishna ceo ibm uzodinma iweala prominent african writer kevin scott cto microsoft pieter van der ceo adyen jacqueline novogratz prominent philanthropist ceo acumen brunello cucinelli commented event follows three day second universal symposium soul economics solomeo memorable experience beloved hamlet hosted top international experts fields humanism art science nature laurene powell jobs welcomed kind godmother symposium many esteemed friends including nicholas thompson reid hoffman james manyika fei fei refik anadol michael evans arvind krishna uzodinma iweala kevin scott pieter van der jacqueline novogratz believe days remembered forever attendees experience fostering human spiritual growth hope symposium enlighten read charter sum marising contributions often reiterated technological innovation blessing creation know combine humanistic values think help increase fruitfulness expressions human creative genius annual financial report report operations board directors humanistic projects school arts crafts theme manual skills core element within casa moda broader strategy sustainability basis company established school contemporary high craftsmanship arts solomeo trains young artisans future young people learned age old traditional crafts hand knitting tailoring found employment company network external workshops thus preserving renewing manufacturing excellence region theme training generational turnover actually crucial topic company always tried champion made italy production model centred around top quality materials excellent crafts manship thus express thoughts words way create unique garments mastered necessary artisan techniques school allows company cultivate tradition considered fundamental part italianness par industrial projects company considers school true investment future great long term project designed artisans future learning play valuable role skilled custodians manual creativity fruits company reaped work irreplaceable source great pride annual financial report report operations board directors himalayan regenerative fashion living lab himalayan regenerative fashion living lab project collaboration circular bioeconomy alliance cba sustainable market initiative smi continues demonstrate company deep commitment sustainable fashion development circular economy commitment expressed preservation traditional cashmere value chains strong focus protecting biodiversity november casa moda honour taking part event organised cba james palace london presence majesty king charles iii along experts companies investors conversation centred around accelerate transition towards companies respectful nature various sectors occasion opportunity present update important project developed alayan region joint brainchild brunello cucinelli federico marchetti solomeo based company continue involved firmly established goal ensuring production output mindful humankind well without ever forgetting need safeguard nature planet live annual financial report report operations board directors ceo riccardo stefanelli honour speaking majesty king charles able show first items produced cashmere himalayan areas involved project collected ladakh region ceo commented like first day undertook significant commitment behest king charles today deeply honoured able offer contribution noble cause grateful splendidly organised special event privilege pleasure able illustrate first highly prestigious audience majesty milestones achieved pro ject first phase able handle first garments made thanks project hugely exciting name human sustainability always inspired company solomeo continue best contribute himalayan regenerative fashion living lab project truly believe sure shine new light humanity path annual financial report report operations board directors brunello cucinelli contemporary lifestyle brand believe excellent results prestigious awards achieved course past year consolidate brand ability interpret promote distinctive contemporary lifestyle proposal character ised highly recognisable taste lifestyle based idea elegance always fresh understated refined exquisite quality based high levels craftsmanship unwavering passion stylistic research reference universe today even complete thanks enhancement brand offering presented new creations thanks introduction contemporary licenses launched lating product categories eyewear fragrances important integration looks lifestyle eyewear collection october partnership agreement signed essilorluxottica came force january led launch second collection time fall winter season major joint endeavour creative teams solomeo agordo consolidates respectful fruitful understanding two manufacturers stemming mutual esteem fondness brought brunello cucinelli leonardo del vecchio together men good natured kindly friendship led painstaking research development project conducted complete harmony synergy aimed producing creations representing well made italy annual financial report report operations board directors brunello cucinelli say launch eyewear collection last march leonardo del vecchio confessed one day dear brunello know whether glasses make beautiful know really like without doubt crafted best way possi ble observed impressive outcome collaboration essilorluxottica launch new eyewear collection help reflect remarks leonardo possessed ability inspire enthusiasm colleagues including highly esteemed friend francesco milleri exceptional compassion fostered connection mutual respect friendliness amongst teams plato said beauty splendour truth anticipate eyeglasses resulting heartfelt partnership valued principles truth beauty motivated design find intriguing consider ideals offer unique interpretation worldwide concept gentle luxury represents beauty moderation concept embodies elegance excessive rather manifests deliberate respectful authenticity new fragrances second line fragrances launched market december adds six new perfumes gen der neutral labelling form new olfactory collection called incanti poetici new products form part high end market segment distribution strategy consistent core principles exclusivity quality presentation fragrances proposal sector specialists september welcomed world top multi brands solomeo presenting characteristics new line together euroitalia extremely pleased initial feedback market sector experts alike seem recognise effort company gone order create highly distinctive product different ingredients conveys level craftsmanship always characterised garments ready wear collections new line joins first two fragrances presented march pour homme pour femme created idea offering stylistic equivalent cashmere crewneck sweaters elegant timeless style annual financial report report operations board directors right outset met favourable reaction multi brands always important end customers ready wear collections gradual addition new lines ready wear range contributed expansion offer increasingly complete lifestyle capable responding many growing demands market new lines added represent major step towards completing total look proposal men wom core concept brand vision creation ready wear collections remain cornerstone brand stylistic identity inspired growing demand clothing understated refined immaculate capable com bining contemporary elegance formulation comfortable relaxed style essential qualities distinctive brunello cucinelli taste always seeks point encounter indoor outdoor work free time values artisan quality fine materials comfort lightness remain fact centre attention focus projected towards future makes possible interpret according contemporary canons dressing well new order focused balance tailoring infor mality sophistication ease pursuit elegance based sartorial foundations time conveys contemporary appeal informs women collection increasingly includes elements expressing feminine casual tailoring men collection focus special attention several years thanks distinctive range outerwear including suits jackets alongside expertly measured casual elements really pleased presentation new stylistic proposals continues associated special moment partly thanks friendly relaxed atmosphere believe created together trade press customers new fall winter collections recently presented received favourable comments customers industry insiders combined praise latest designs recognition line oriented towards contemporary casual balanced elegance offer balanced recognisable complete taste interpretation authentic italian lifestyle mains foundation goal collections collections stop simply proposing individual creations instead interpret enhance carefully developed combinations increasingly way offering veritable reinterpretation classic element well definitive iconic expression brunello cucinelli taste alongside definition look growing selection special highly exclusive elements result unique craftsmanship terms expertise creativity women collection opera tops made entirely hand hand knitted crochet joined special series called couture knitwear result sophisticated embroidery create original effects thus reinterpret concept knitting men collection addition introduction knitwear significant hand knitted component special garments include outerwear high content craftsmanship produced precious materials finally new production techniques enhance value knitwear unusual elements casual style annual financial report report operations board directors women fall winter collection craftsmanship tailoring interpreted daily version mulating urban side atmospheres provide updated reading key also timeless classics cavallo blazers waterproof capes ribbons poplin shirts shiny lavallières reference order world eques trianism equestrian cut trousers worn one several harmoniously offbeat notes feminine flats english overtones prince wales checks tweeds tartan made unique unexpected elements stitched denim collar stands belts emphasise waist sparkling embroidered bezels looks tend combine separates formality casual style alternating continuous fruitful dialogue colour also brings two fundamental poles collection dialogue light natural tones panama high light traditional designs well intense shades burgundy dark brown annual financial report report operations board directors men fall winter collection various elements men wardrobe rediscover original identity offer inspiration contemporary balanced mix perfectly cohesive always sum parts garment contributes fine balance rich colours stand thanks carefully chosen combination pairing refined details lightness two essential characteristics collec tion daily life thanks connections synergies renewed elegance suits colourful sweaters refined jackets worn denim trousers soft coats laid back allure every look sums style finds perfect balance precision dynamism outerwear garments light soft thanks quality materials enhanced exquisite details knitwear expresses handcrafted three dimensionality elevated new buttoned yarns sophisticated jacquard patterns colour combinations remain linchpin every outfit enhancing intensity amaranth pumpkin radicchio sapphire cloud alongside timeless neutral hues annual financial report report operations board directors girls boys collections represent natural extension women men collections whose distinctive characters models redesigned mini version also adding number specific elements reinterpret brunello cucinelli taste younger wearers quality materials work manship perfectly line main collections constructions details meet requirements comfort dynamism ease use ideal children distinctive expression brand contem porary style boys girls collections aim express magic wonder children joy living carefree fundamental harmonised feelings lightness freedom fun annual financial report report operations board directors introduction financial report december prepared according legislative decree amend well consob issuers regulation report prepared accordance international financial reporting standards ifrs issued international accounting standards board iasb endorsed european union summary data december tables show consolidated summary economic data december compared corresponding previous year consolidated statement financial position reclassified sources applica tions december comparative figures december iii cash flow operating activities investment activities financing activities well amount incurred investments december comparative figures december summary consolidated income statement euro year ended december revenues revenues change change revenues ebitda operating income profit taxes net profit statement financial position reclassified sources uses euro situation december december change change net working capital fixed assets non current assets liabilities net invested capital net financial debt financial lease liabilities shareholders equity sources financing annual financial report report operations board directors summary data euro situation december december change change net cash flow generated used operating activities net cash flow generated used investment activities net cash flow generated used financing activities total cash flow total investments alternative performance indicators order allow better assessment management performance brunello cucinelli group uses alternative performance indicators identified accounting measures ifrs indicators determined accordance provisions guidelines alternative performance indicators issued esma adopted consob communication december definition alternative performance indicators used financial report follows ebitda represented operating income depreciation amortization commercial net working capital calculated sum inventories trade receivables net trade payables net working capital calculated sum commercial net working capital balance posi tive negative balance sheet items classified current assets current liabilities exclusion financial items net invested capital total non current assets current assets less non current liabilities current liabilities excluding items financial nature included balance net financial debt current financial assets cash cash equivalents current non current payables towards banks current non current financial liabilities current financial lease receivables current financial liabilities leases non current financial liabilities leases liabilities derivative financial instruments cover ing current non current interest rate risk net financial debt calculated accordance consob reminder april investments refer gross increases intangible assets including key money property plant equipment investment property net increases non current financial assets annual financial report report operations board directors seasonality sales subject significant seasonal cyclical changes total annual sales various quarters year group activities suffer lack perfect uniformity flow revenues costs deriving mainly businesses furthermore luxury market group operates characterised level sales channels sea sonal factors impact economic results first seasonality linked sales methods wholesale distribution channels result greater revenues first third quarters financial year fact shipments determine greater sales months january march spring summer collection months july september fall win ter collection although international customers usually require shipments latter second quarter well regard retail channel group sales saw concentration revenues mainly last quarter year period characterised sale products highest unit value consequently evident group interim results may contribute uniformly formation economic financial results year annual financial report report operations board directors group results year analysis revenues group consolidated turnover year amounted thousand thanks positive sales results achieved throughout year increase year constant exchange rates meaning using average exchange rates used revenues would thousand equal enchanting year thanks great results achieved casa moda revenue growth growth constant exchange rates terms turnover strengthened brand image december constant exchange rates december december revenues geographical area attach great value balance brand geographical distribution highly significant growth markets americas asia italy europe believe following factors specifically contributed achievement great results full acknowledgement exclusivity positioning brand quality high level craftsmanship collections proposal deemed possess wealth innovation creativity great trust shown customers appeal brand also new clients pleasant familiar atmosphere feel pervades sales spaces annual financial report report operations board directors revenues geographic area december compared december presented euro year ended december change change revenues revenues europe italy americas asia total following analysis increase revenues geographical area europe european market revenues amounted thousand increase compared relative weight results european continent good proving solid major cities also exclusive resort locations brand maintains presence healthy growth achieved across markets thanks loyal local customers constant presence tourism increasingly diversified origin december single brand network direct single brand wholesale consisted boutiques italy italy turnover amounted thousand compared relative weight mentioned european market strong demand local customers strength ened growth international tourism december single brand network direct single brand wholesale consisted boutiques americas american market recorded turnover thousand increase compared last year sales impact annual financial report report operations board directors growth north america reaffirms certifies great potential continue see region search exclusivity uniqueness desire dress special garments new increas ingly desired growing number customers december single brand network direct single brand wholesale consisted boutiques asia asian market revenues amounted thousand increase compared account ing sales recorded highly significant robust growth throughout scope question china japan south korea middle east high value sales china confirmed terms growth continuity results increases turn reported quarters year particularly positive revenues last part year approximately double digit year year growth among success factors essential mention exclusive distribution growing appreciation customers increasingly attentive artisan quality garments well increasingly consistent acknowledgement positioning brand highest luxury segment together logo ready wear offering strong demand local customers together constant balanced contribution tourism positive effect results south korea japan solid results reported middle east contribution local customers numbers gradually growing international presence december single brand network direct single brand wholesale consisted boutiques revenues distribution channel following table sets revenues earned group analysed distribution channel euro year ended december change change revenues revenues retail wholesale total annual financial report report operations board directors retail retail channel grew compared relative percentage impact sales rising compared ended outstanding result retail channel double digit growth quarters year increase fourth quarter thanks increase sales comparable basis positive contribution selected openings total network consisted boutiques december compared network boutiques june number hard shops december one new space counted months comparable performance physical channel geographical areas solid approximately double digit growth recorded digital channel benefited growing tention corresponding increase traffic following launch new brunello cucinelli website mid july three years study work great satisfaction positive comments numerous specialists field study advanced application artificial intelligence declared new website veritable invention wholesale wholesale channel grew compared accounting sales also pleased results wholesale channel consider excellent wholesale contin ues central strategy maintaining fundamental role preserving contemporaneity brand thanks seriousness taste multi brand customers present collections within stunning spaces spring summer fall winter collections recorded great sales thanks appreciation end customers significant restocking year fall winter collections noted slightly earlier demand deliveries compared last year especially finally contribution initial deliveries new spring summer collection posi tive start order intake fall winter collections equally favourable annual financial report report operations board directors revenues product line end customer following presentation brunello cucinelli group revenues december december analysed type end customer product line december december men women december december apparel accessories analysis consolidated income statement following table provides summary financial data december december euro year ended december change change revenues revenues revenues costs raw materials consumables costs services payroll costs operating costs revenues ebitda depreciation amortization operating income net financial income expenses equity investments profit taxes taxes net profit annual financial report report operations board directors ebitda results december ebitda amounted thousand equal revenues thousand december equal revenues operating income amounted thousand equal revenues thousand december equal revenues profit taxes amounted thousand equal revenues thousand december equal revenues net profit amounted thousand equal revenues thousand december equal revenues operating costs percentage production costs costs raw materials consumables cost outsourced work dropped december compared december euro year ended december change change revenues revenues costs raw materials consumables change inventories outsourced work total result first margin december thousand compared thousand december increase absolute value thousand thanks also evolution sales mix channels areas products opening new production facilities italy production men outerwear tailored suits within districts excellence artisan tailoring reference process internalisation certain processes production exclusive top quality garments would like point lower incidence production costs nevertheless entails incurring higher operating costs mainly staff noted profit taxes result year december benefited important contribution capital gain related sale minority stake associated company cariaggi lanificio annual financial report report operations board directors concurrent evolution network development new commercial initiatives consolida tion operations operating costs percentage payroll costs december amounted revenues com pared december payroll costs december amounted thousand increase value compared figure previous year thousand euro year ended december change change revenues revenues payroll costs increase payroll costs mainly attributable development human resources structure cost accrued reference stock grant plan stock grant plan fte full time equivalent amounts december compared decem ber includes increase production workers part project expand artisan structure connection opening new production facilities italy production men outerwear tailored suits year ended december change executives managers office sales staff blue collar workers total workforce following table provides summary main income statement items relate revenues euro year ended december change change revenues revenues lease expense advertising marketing costs transport duties commissions accessory charges credit card charges annual financial report report operations board directors brief commentary dynamics characterised operating costs described costs leases amounted thousand december compared thousand december item mainly refers lease contracts variable consideration included scope ifrs details provided lease expense cost leases relative lease contracts included scope ifrs compared euro year ended december change change revenues revenues lease expense cost leases included ifrs total excluding therefore effects application ifrs balance rental costs december amounted thousand equal revenues compared thousand equal revenues december growth related new openings relocations including miami design district may inauguration new location boutique ven ice well important extensions existing surfaces worth mentioning presence network boutiques hospitality spaces small bars different formats bookshops boutiques casa cucinelli spaces areas meeting customers partners journalists analysts investors attempt fully express lifestyle ideas advertising commercial expenses thousand revenues december compared thousand revenues december continue attach great importance following previous year investments communication believe benefit allure brand consolidate positioning absolute luxury segment called artisan events allow establish consolidate bond trust appreciate wish connect brand events limited number guests allow create unique personalised experiences dedicate right amount time space guest last least create profound harmony genius loci culture location transport duties equal thousand december revenues compared thousand december revenues item presents slight increase terms percentage compared previous year mainly due growth turnover various geographical areas cost item onerous commissions accessory charges related remuneration paid agent networks whose percent age revenues stable december december annual financial report report operations board directors commissions use credit cards amounting thousand december compared thousand december substantially stable terms percentage incidence revenues revenues years regard remaining income statement items following aspects noted items included costs services amounted total thousand december compared thousand december increase thousand compared previous year mainly due structural aspects increase spaces business carried increasing costs maintenance security significant increase costs inherent development digital activities increase expenses outsourced services miscellaneous consultancy international travel people development creativity implementation management item operating costs revenues negative balance amounting thousand cember compared negative balance amounting thousand december recording substantial reduction terms percentage turnover considered years revenues december compared revenues december item mainly includes non income taxes fees social benefit charitable charges provision adjust allowance cover expected losses receivables miscellaneous operating expenses depreciation amortization net financial expense net profit depreciation amortization december amounted thousand thousand compared thousand mainly due new leases amortization rights use amounted thousand including amortisation key money thousand december depreciation amortization amounted thousand thousand relating key money details depreciation amortization effects inherent item deriving application ifrs leasing contracts december december provided euro year ended december change change revenues revenues depreciation amortization exclusion effects ifrs application total shown table excluding effects application ifrs relating lease contracts depre ciation amortization amounted thousand revenues compared thousand revenues annual financial report report operations board directors net financial expense december amounted thousand compared thousand thousand completeness information noted positively impacted capital gain realised sale minority interest referring also notes consolidated financial statements separate statement financial come expense details following table shows result financial management detailing breakdown financial income expense ordinary management therefore related loans management bank accounts income expenses effect application ifrs currency exchange rates well fair value derivative contracts financial effects deriving valuation company assets well effects financial income expenses equity investments euro year ended december change change revenues revenues net loan interest expense net income expense financial expenses income ordinary operations lease financial expenses income foreign exchange losses gains leases financial expenses income lease operations foreign exchange losses gains financial expenses income derivative instruments hedging currency risk gain loss participations total net financial expenses income december financial expense ordinary management inclusive effects fair value adjustment financial instruments covering interest rate risk amounted thousand compared thousand previous year recording increase change mainly due increase net financial debt support significant investments partially offset effects deriving fair value adjust ment obligations deriving agreements minority shareholders financial expenses income leasing equal thousand december compared thousand december recording increase thousand item represents ordi nary recurring financial component includes payable receivable interest determined based leasing liabilities assets increase item mainly reflects effect new leases new openings renewals existing boutique network instead regards item foreign exchange losses gains leasing mainly comprised unrealised gains losses exchange rates determined conversion euro current exchange rate end year financial liabilities leases expressed currency therefore reflects trend foreign currencies respect euro annual financial report report operations board directors regard result foreign exchange management net negative value foreign exchange losses equal thousand recorded compared net negative value foreign exchange losses thousand december change due net effect foreign exchange gains losses realised unrealised resulting performance euro course presented slight weakening cur rencies mainly dollar group operates due nature item strongly conditioned dynamics exchange rates managed group order limit oscillation risk also stipulation derivatives contracts details please refer paragraph financial risk management notes consolidated nancial statements therefore please note previously commented reference foreign exchange losses gains leases prospective economic effects item direct consequence euro situation evaluated individual dates reference impact charges deriving interest rate exchange rate hedging transactions amounted thousand december compared thousand previous year mainly financial expens determined fair value adjustment exchange rate derivatives valuation also influenced short medium term expectations expressed exchange rate curves used therefore nature subject fluctuations individual years note balance item gains losses equity investments december relates valuation investments associated companies using equity method december item included capital gain realised sale minority interest held cariaggi lanificio light profit taxes december amounted thousand increase compared result recorded december thousand net profit year amounted thousand increase previous year breakdown net profit group share non controlling interests compared figure previous year follows euro december december net profit attributable parent company shareholders net profit attributable non controlling interests net profit annual financial report report operations board directors analysis balance sheet financial items provided comments main items group consolidated statement financial position december reclassified sources applications comparative figures december net working capital following table provides analysis net working capital brunello cucinelli group decem ber december euro december december trade receivables inventories trade payables commercial net working capital net current assets liabilities net working capital commercial net working capital december increased thousand compared figure december change due variety factors follows balance trade receivables increased compared december amount equal thousand percentage incidence trade receivables revenues recorded decrease compared previous year december compared december albeit presence positive sales consequent increase reported turnover particular regard growth wholesale channel indicating extremely healthy situation consider receivables sound payable without particular problems prudently set aside provision write downs thousand recording year losses receivables income statement use provision total thousand equal revenues december provision bad debts equalled thousand thousand december amount consider suitable order cover expected losses receivables amount inventories equal thousand due effect considerable increase business increased organically compared december thousand incidence inventory value december equal level deem healthy rela tion collection offering december reflected sales growth well expectations beginning period annual financial report report operations board directors following table breaks inventories brunello cucinelli group december december euro december december raw materials finished semi finished goods inventory write provision inventories balance trade payables equal thousand december compared thou sand december increase equal thousand note also group change payment terms towards suppliers collaborators consultants increase balance item mainly attributable investments production logistics made last quarter compared period previous year details see following section investments report operations board rectors net current assets liabilities negative balance december thousand com pared negative balance approximately thousand december change mainly attributable fair value adjustment derivative instruments hedging currency risk partially offset variation balance tax receivables payables details refer comments notes consolidated financial statements annual financial report report operations board directors fixed assets non current assets liabilities following table provides analysis fixed assets non current assets liabilities december december euro december december intangible assets right use property plant equipment non current financial lease receivables non current financial assets investment property net non current assets liabilities fixed assets net non current assets liabilities fixed assets net non current assets liabilities amounted thousand december compared thousand december representing net increase thousand details changes individual items shown table year see notes con solidated financial statements main changes noted net increase balance item right use thousand compared december amounting thousand december mainly due expansion retail network renewal lease contracts certain boutiques note item represents right use assets underlying respective leases key money con sidered initial direct costs lease arrangement net increase property plant equipment thousand compared december amount ing thousand december main increases attributable progress project double solomeo factory built outskirts hamlet former industrial complex entirely reclaimed redeveloped investments dedicated creating new factory gubbio umbria developing factory penne abruzzo production men outerwear tailored suits within districts excellence artisan tailoring works furnishings related opening expansion directly operated wholesale shops improvements made existing boutiques showrooms around world casa cucinelli spaces increase thousand compared december net non current assets liabili ties mainly attributable variation balances deferred tax assets deferred tax liabilities annual financial report report operations board directors investments group made investments intangible assets amounting thousand property plant equipment amounting thousand investment property amounting thousand net increases non current financial assets amounted thousand following table shows investments type category made group december december euro december december investments intangible assets investments property plant equipment investment property investments non current financial assets total investments item also includes investments key money paid january classified item right use accordance ifrs net guaranteed deposits balance payments made net repayments received shown table investments amounted thousand million attributable commercial investments million investments production logistics digital million investments investment property following table provides details investments made group year ended december year ended december broken type described euro december december commercial investments investments production logistics investments digital investment property total investments annual financial report report operations board directors commercial investments equal support selected openings major expansions prestigious bouquets contributing growth sales areas network single brand stores dedicated spaces luxury department stores renewal expansion showrooms worldwide addition supporting development initiatives multi brand stores investments production logistics equal thousand support top quality craftsmanship products thanks constant renewal production equipment kept constantly date combining innovation processes superb handiwork make suitable logistical structures available managing related activities constant attention maintaining comfortable work environments investments technical fixed assets include continuation project double solomeo factory built outskirts hamlet former industrial complex entirely reclaimed redeveloped investments dedicated creating new factory gubbio umbria developing factory penne abruzzo production men outerwear tailored suits within districts excellence artisan tailoring investments digital also specific platforms evolving markets assuming increasing portance december amounted thousand investments non current financial assets relate property complexes well building land solomeo managed aim restored subsequently leased annual financial report report operations board directors net financial debt net financial debt required consob reminder april compliance esma guide lines disclosure obligations pursuant prospectus regulation follows euro december december cash cash equivalents means equivalent cash cash equivalents current financial assets current financial assets leases cash cash equivalents current financial debt current financial debt leases current portion non current financial debt current financial debt net current financial debt non current financial debt non current financial debt leases debt instruments trade payables non current payables non current financial debt total financial debt net financial debt core business payables leases december financial debt brunello cucinelli group amounted thousand thousand related debt generated accounting lease contracts pursuant ifrs december financial debt amounted thousand thousand relating lease contracts excluding balances attributable application ifrs financial debt december amounted thousand increase thousand december contributing major vestment plan worth million payment dividends total million net working capital dynamics first half group took new medium long term loans total thousand repaying total thousand according ordinary amortization schedules note item non current financial debt also includes debt loans minority shareholders subsid iaries amounting thousand annual financial report report operations board directors shareholders equity following table provides details shareholders equity december december euro december december share capital reserves net profit attributable parent company shareholders shareholders equity attributable parent company shareholders shareholders equity attributable non controlling interests shareholders equity share capital parent company december amounted thousand fully paid consist ing ordinary shares shareholding structure brunello cucinelli december compiled communica tions sent company consob communications market set shareholder ordinary capital foro delle arti fmr llc shareholders total description changes shareholders equity refer balance sheet indicated note notes consolidated financial statements annual financial report report operations board directors reconciliation shareholders equity net profit parent company consolidated shareholders equity net profit following reconciliation shareholders equity net profit parent company consolidat shareholders equity net profit year december december euro december december shareholders equity result shareholders equity result financial statements parent company difference shareholders equity consolidated companies book value equity investments elimination effects intercompany transactions elimination dividends net investments foreign operations tax effects consolidation adjustments group total shareholders equity net profit attributable non controlling interests total consolidated financial statements information corporate governance pursuant article bis consolidated law finance tuf company required prepare nual report corporate governance ownership structures containing general description governance system adopted brunello cucinelli group ownership structure including main governance prac tices applied characteristics risk management internal control system relation financial reporting process report related year ended december approved board directors meeting march consulted corporate governance section company website www brunellocucinelli annual financial report report operations board directors performance company share listed borsa italiana milan euronext stock exchange december final trading day year closing price brunello cucinelli share compared per share set ipo compared closing value market capitalisation december thousand following table provides details company share price performance january december euro date ipo price minimum price aug maximum price mar closing price dec capitalisation dec number outstanding shares dec free float dec highs lows recorded daily trading accordingly coincide official reference prices day number outstanding shares include treasury shares held parent company date annual financial report jan jan jan feb feb feb mar mar mar apr apr apr may may may may jun jun jun jul jul jul aug aug aug sep sep sep oct oct oct nov nov nov dec dec dec share price euros annual financial report report operations board directors significant events purchase assignment treasury shares performance stock grant plan august board directors parent company implementation resolution approved shareholders meeting held april concerning stock grant plan granted man date mediobanca banca credito finanziario start program purchase treasury shares behalf parent company independent manner compliance applicable regulations dictated resolution approved shareholders meeting program purchasing treasury shares carried making use safe harbour pursuant art regulation program completed total purchase treasury shares parent company march date annual financial report shares assigned free charge executive rectors employees top positions company subsidiaries execution stock grant plan stock grant plan march board directors brunello cucinelli approved stock grant plan submitted subsequent approval ordinary shareholders meeting april plan provides free allocation company shares executive directors employees company subsidiaries certain performance targets achieved opting new director additions membership control risk committee muneration appointments committee july board directors brunello cucinelli favourable opinion remuner ation appointments committee resolution approved board statutory auditors pursuant art italian civil code articles association regard gender quotas opted katia riva company new non executive director replace independent non executive rector emanuela bonadiman resigned june noted occasion renewal board directors resolution shareholders meeting april emanuela bonadiman taken minority slate presented number institutional investors aegis assogestioni appointment katia riva company board directors accepted invitation formulated assogestioni managers committee letter dated july submitted relevant nomination independent evaluation board directors ascertained grounds ineligibility incompatibility katia riva meets requirements integrity independence laid current legislation corporate governance code also ascertained katia riva possessed adequate knowledge experi ence remuneration policies financial risk management matters katia riva accepted appointment remain office next shareholders meeting addition following resignation emanuela bonadiman former chair remuneration appoint ments committee former member control risk committee board directors brunello cucinelli support remuneration appointments committee appointed katia riva member control risk committee remuneration appointments committee chiara dorigotti also appointed chair remuneration appointments committee annual financial report report operations board directors purchase treasury shares performance stock grant stock grant december board directors parent company implementation resolution proved shareholders meeting held april granted mandate mediobanca banca credito finanziario start program purchase treasury shares behalf parent company purpose stock grant plan stock grant plan independent manner compliance applicable regulations dictated resolution approved shareholders meeting program purchasing treasury shares carried making use safe harbour pursuant art regulation program completed total purchase treasury shares parent company december following purchase date present annual financial report parent company holds treasury shares equal shares making share capital related party transactions reference made notes consolidated financial statements detailed description related party transactions conducted pursuant consob resolution march acknowledged group enter major material transactions related parties significantly affected group financial situation net profit year information significant companies outside brunello cucinelli parent company directly indirectly controls companies brunello cucinelli usa inc brunello cucinelli sichuan fashion ltd brunello cucinelli japan ltd brunello cinelli rus brunello cucinelli england ltd brunello cucinelli middle east llc established regulated law states members european union significant companies outside defined consob resolution regards companies note prepare financial statements purpose preparing consolidated financial statements balance sheet income statement companies made available shareholders brunello cucinelli accordance relevant regulations brunello cucinelli acquired laws governance powers corporate bodies significant companies outside provide auditor parent company information necessary audit annual interim accounts said parent company suitable administra tive accounting system regularly provide management controlling body auditor parent company economic equity financial data necessary preparation consolidated finan cial statements annual financial report report operations board directors order comply regulatory obligations board statutory auditors brunello cucinelli verified suitability administrative accounting system regularly provide management auditor brunello cucinelli economic equity financial data necessary preparation consol idated financial statements effectiveness flow information meetings auditor financial reporting officer certification per art paragraph market regulation adopted resolution december brunello cucinelli controlled right foro delle arti specifically foro delle arti owns ordinary shares voting right issuer equal share capital thereof issuer subject management coordination parent company foro delle arti information subject please refer report corporate governance ownership structure proved board directors march may consulted governance section company website www brunellocucinelli main risks uncertainties market risks risks related high level competition market brunello cucinelli group operates luxury market particular absolute luxury sector brunello cucinelli group operates highly competitive therefore cannot excluded coming years new brands brands currently located segments luxury market might position segment thus becoming direct competitors company risks associated international sale brunello cucinelli group products group sells products world particularly europe north america japan china group presence various international markets exposes risks associated among things geopolitical macroeconomic conditions countries operates possible changes sales could affected various events market instability occurrence natural disasters socio political upheavals terrorist attacks coups etat wars occurrence events could negatively affect demand luxury goods given country cause contraction tourism possible negative effects group business growth prospects annual financial report report operations board directors risks associated changes national international regulatory framework brunello cucinelli group operates various jurisdictions operates group subject regulations applicable products manu factures sells particular importance among regulations consumer protection industrial intellectual property rights competition health safety workers environment issuance new regulations amendments current legislation could force brunello cucinelli group adopt stricter standards could entail costs adapting production product characteristics limit brunello cucinelli group operations consequent negative effect growth prospects spe cifically regard commercial distribution countries italy brunello cucinelli group products could subject application duties protectionist rules governing importation products nations operating risks risks related continuity craftsmanship artisanal skills one distinctive characteristics brunello cucinelli brand products high level craftsmanship inher ent production made possible also thanks constant internal training performed company years experience acquired brunello cucinelli group promotes development artisanal production techniques regional level possible future number specialised people engaged type production could diminish risks associated availability raw materials cashmere particular increase price main raw materials used brunello cucinelli group yarns particularly cashmere yarns fabrics leather availability cashmere subject several factors fall within brunello cucinel group sphere control easily predictable example climatic conditions regions mainly mongolia raw cashmere comes changes goat farming policies producing countries goat diseases epidemics could affect availability cashmere consequently price decrease availability cashmere raw materials increase demand consequent increase price brunello cucinelli group may encounter supply difficulties medium term forced bear increase costs incurred purchase raw materials risks associated retail sale group products risks associated management currently existing doss directly operated stores mainly related possible difficulties renewing existing lease agreements greater costs rent revocation non newal commercial licences necessary decreases sales regard opening new doss noted increase costs associated new openings may accompanied adequate revenue growth competitive landscape group operates possibility expanding dos network depends ability obtain availability econom ically sustainable conditions spaces located positions deemed strategic group among retail operators strong competition secure commercial spaces located prestigious locations important cities world reason searching new spaces group may compete retail operators including belonging sector similar greater economic financial capacities annual financial report report operations board directors risks related relations third party manufacturers façonisti brunello cucinelli group products produced using third party manufacturers respect brunello cucinel group italy known façonisti relations company third party manufactur ers maintains long term commercial relationships governed multi year agreements based orders entrusted collections individual seasons line industry practice termination relations short period time significant number façonisti repeated fail ure comply production calendar however shared could negative effects brunello cucinelli group business furthermore cannot excluded façonisti may future default terminate collaboration relationship company without notice risks related defence industrial intellectual property rights protection brunello cucinelli brand intellectual property rights fundamental posi tioning luxury market especially absolute luxury sector group competes value brand could compromised protection protection design brunello cucinelli brand products impracticable particularly difficult company invests significantly ensure protection trademark intellectual property rights well design successful products worldwide cannot excluded actions tak may prove ineffective preventing imitations group trademark products moreover group wishes expand business countries brunello cucinelli trademark yet registered previous use registration trademark trademarks confused third parties could result limitation impediment group business countries finally laws many foreign countries protect intellectual property rights intensity italian law laws countries risks related perception new trends sector brunello cucinelli group operates characterised changes sometimes even sudden ones customer trends tastes lifestyles purchasing therefore brunello cucinelli group subject risk always able perceive fashion trends adequately interpret styling design development phases final product circumstance could therefore compromise success collections cyber risks brunello cucinelli group business also view growing organisational complexity technological innovation sector exposed risks cyber attacks aimed compromising business continuity improper collection confidential data order strengthen actions implemented mitigate risks order continuously align manage ment experts internal committee called security committee established years aim supervising business processes risk cyber attacks identifying appropriate mitigation tools addition consolidation business continuity ict field continuous monitoring services tools introduced supported modern technologies assistance highly specialised technological partners technological activities vapt vulnerability assessment penetration test accompanied contin uous training plans personnel aimed increasing awareness subject cybersecurity ultimate objective standardise extend level monitoring control group companies employees annual financial report report operations board directors description overall internal control risk management system managed controlled refer specific description report corporate governance ownership structures approved board directors march consulted corporate website www brunellocucinelli governance section research development investing research development crucial brunello cucinelli group order create new products meet needs customers also consolidate know developed years also important search testing materials creation prototypes public grants financial year parent company brunello cucinelli italian subsidiaries benefited following concessions contribution exemptions introduced covid health emergency subsequently extended considered state aid totalling thousand contribution exemptions italian law total thousand art bonus tax credit article italian decree law totalling thousand environmental risks brunello cucinelli groups considers prevention management risks able jeopardise attainment company objectives ability continue going concern strategic priority within overall risk profile company therefore identified main risks related climate change environmental issues may implications impact business risks identified arising environmental damage attributable organisation operations inefficient resource manage ment risks arising occurrence natural events earthquakes floods etc related climate change terms physical risks frequent extreme weather events gradual climate change terms transition risks related transition low carbon economy resulting government pol icies however considering group sector operation group current exposure consequences climate change considered low terms probability well terms ability influence strategies financial cash flows information environmental risk management see consolidated sustainability statement annual financial report report operations board directors financial risk management financial risks managed basis guidelines established board directors aim ensure liability structure remains balanced composition assets maintain adequate levels solvency group exposed various types financial risks connected core business specifically group simultaneously exposed market risk interest rate risk exchange rate risk liquidity risk credit risk tax risk interest rate risk interest rate risk risk fair value future cash flows financial instrument change due changes market interest rates market interest rate fluctuations influence level net financial expense market value financial assets liabilities group exposed risk increase financial costs income statement result unfavourable change interest rates changes market interest rates affect cost loans return forms use therefore level group financial income expenses also fair value group policy hedge exposure medium long term portion debt market risk arising interest rate changes manage risk company uses derivative instruments interest rate swaps exchange rate risk exchange rate risk risk fair value future cash flows exposure change due changes exchange rates group operates internationally therefore exposed risks arising exchange rate fluctuations impact profits value shareholders equity furthermore due fact company prepares consolidated financial statements euros fluctuations exchange rates used convert financial statements subsidiaries originally expressed foreign currency could significantly influence results net financial debt consolidated shareholders equity pressed euros group financial statements financial ratios company exposed exchange rate risk currencies sales made group companies third party customers risk exists eventuality market value revenues euro may decrease event adverse fluctuations exchange rate thereby preventing desired margin achieved limit exposure currency risk deriving business activities company enters derivative contracts forward exchange contracts predetermine conversion rate range conversion rates future dates forward contracts stipulated seasonal price lists foreign currency defined basis estimated sales expiry date derivative set expected collection date sales invoices particular company sets selling prices euro calculates corresponding prices foreign currency applying contracted forward exchange rate annual financial report report operations board directors liquidity risk liquidity risk risk related unavailability financial resources necessary meet commitments assumed group financial needs short term main factors determine group level liquidity one hand resources generated absorbed operating investment activities hand maturity renewal status payables liquidity financial commitments market conditions group manages liquidity risk strictly controlling items making working capital particular receivables customers payables suppliers company strives obtain good cash generation order settle trade payables without jeopardising short term cash requirements avoid criticalities strains available cash credit risk credit risk risk counterparty fulfil obligations financial instrument commercial contract thus leading financial loss credit risk group exposure potential losses arising failure counterparties meet ligations group exposure commercial credit risk refers sales wholesale channel sales retail channel risk limited sales managed landlord owner bricks mortar mall direct manager receipts within boutiques remaining turnover comes pure retail sales channel payment cash credit debit card group generally prefers business customers established consolidated relation ship time group policy carry checks relative credit class customers requesting extended payment terms using information obtainable specialised agencies observing ana lysing customer economic financial figures addition balances constantly monitored year order ensure timely action reduce risk loss annual financial report report operations board directors tax risk december group consisted companies located various countries around world group companies italian foreign subject audits tax returns tax obligations tax authorities various countries tax risk limitation measures put place management verify adequacy correctness tax obligations obviously cannot completely exclude risk tax assessments group adopted transfer pricing transactional net margin method group centralised risks assets principal brunello cucinelli group companies carrying dis tribution mainly retail exception companies also operate wholesale trade con sidered entities performing routine functions thus consequently entitled receive remuneration activities line independent companies engaged similar functions remuneration must aligned functions perform risks incurred measured periodically benchmark analysis detailed analysis representation financial risk management well information required ifrs please also refer detailed notes consolidated financial statements annual financial report report operations board directors significant events december significant events affecting group operations closure present annual financial report management outlook sales first part positive interesting sell spring summer collec tions confirms superb feedback received presentations last september order intake new fall winter collections shown particularly positive results invalu able comments specialist press men presentation held january florence pitti magine milan well women milan fashion week february impressive performance first quarter year coupled conclusion planning selected exclusive openings expansions boutiques scheduled increases visibility strengthens solidity growth forecasts great opportunities lie ahead brand exclusive positioning promising prospects geographical areas various distribution channels mean therefore decidedly confirm goal turnover growth approximately healthy balanced profits major project double production capacity already underway leads forecast investment impact around three year period end envision completed network tailors beautiful factories solomeo carrara penne gubbio level investment return normal expected impact turnover around per figure recorded path part sustainable growth project consolidating long term vision imagining growth lead doubling turnover brunello cucinelli chairman board directors riccardo stefanelli chief executive officer product operations area luca lisandroni chief executive officer markets area annual financial report consolidated sustainability report consolidated sustainability report annual financial report consolidated sustainability report idea humanistic capitalism human sustainability general disclosures preparation criteria strategy governance management impacts risks opportunities mdr policies casa moda mdr actions policies casa moda mdr metrics casa moda mdr targets casa moda environmental information climate change governance strategy management impacts risks opportunities metrics targets pollution management impacts risks opportunities metrics targets water marine resources management impacts risks opportunities metrics targets biodiversity strategy management impacts risks opportunities metrics targets resource use circular economy management impacts risks opportunities metrics targets annual financial report consolidated sustainability report european taxonomy social information workforce strategy management impacts risks opportunities metrics targets entity specific workplaces strategy management impacts risks opportunities metrics targets value chain workers strategy management impacts risks opportunities metrics targets affected communities strategy management impacts risks opportunities metrics targets consumers end users strategy management impacts risks opportunities metrics targets governance information business conduct governance management impacts risks opportunities metrics targets entity specific generational transition strategy management impacts risks opportunities annual financial report consolidated sustainability report idea humanistic capitalism human sustainability dreamed company would profitable upholding ethics dignity without causing harm people offence creation least little possible concept humanistic capitalism human sustainability represent idea company must generate profits simultaneously operating according principles ethics dignity morals human sustainability constitutes concrete area environment economics culture spirit morals technology coexist harmony approach behaviour takes care protects limiting valorisation promotion human dignity extends aspects living harmony creation guided objective causing harm limit far possible six forms human sustainability environmental sustainability economic sustainability cultural sus tainability spiritual sustainability moral sustainability technological sustainability six forms correlated long standing ideals characterise life work company expression values formalised five decalogues guide daily activities actions undertaken concept humanistic capitalism human sustainability evolved consolidated years numerous initiatives carried ultimate aim generating value casa moda also plurality stakeholders company interacts consolidated sustainability report first edition consolidated sustainability report prepared compliance esrs european sus tainability reporting standards according specified italian leg decree implements corporate sustainability reporting directive hereafter also csrd report structured follows general information esrs criteria defined preparation governance sustainability strategy furthermore chapter illustrates double materiality methodology based sustain ability issues relevant casa moda defined environmental information covers topics concerning climate change pollution water marine resources biodiversity ecosystems use resources circular economy also includes reporting regarding taxonomy regulation regulation social information issues covered regarding workforce workers value chain affect communities consumers end users governance information approach casa moda illustrated concerning business conduct two relevant issues identified entity specific also described concerning specific aspects value organisation work sites end social information chapter generational transition end informational governance chapter detailed index esrs disclosure obligations available page document annual financial report consolidated sustainability report general information preparation criteria general basis preparation sustainability statements brunello cucinelli sustainability report prepared consolidated basis reporting scope coin cides consolidated financial statements consolidated financial statements include par ent company brunello cucinelli italian foreign subsidiaries together identified brunello cucinelli group companies brunello cucinelli europe logistica distribuzione market ser vice inc included scope reference contribute towards reporting quanti tative social environmental data document employees reporting covers entire value chain within limits available information mapping impacts risks opportunities concentrated company operations time upstream value chain starting activities production extraction raw materials subsequent phases transformation processing including upstream logistical flows downstream value chain wholesale distribution channel end customers including downstream logistic flows company points make use option omit specific information document corresponding intellectual property know results innovation disclosures relation specific circumstances time periods adopted document coincide adopted esrs specifically short term year medium term years long term beyond years metrics regarding calculation scope emissions due fact precise data available estimation made methodology described section gross scopes total ghg emissions purposes reporting prospective information compliance esrs information included following consolidated sustainability report described based hypotheses related events could happen future possible future actions group due uncertainty connected occurrence future event regarding actual occurrence well concerns scope timing occurrence deviations final values prospective information could significant strategy sbm strategy business model value chain business casa moda focused creation production sale brunello cucinelli branded clothing accessories lifestyle make women men children total look collections always conceived expression ethical human values cultivated hamlet solomeo brand internationally recognised benchmark made italy excellence point reference luxury product casa moda collection prohibited specific markets reference annual financial report consolidated sustainability report goods sector ability combine timeless qualities derived selection finest materials craftsmanship exclusivity contemporary creativity attentive market trends technological innovations total look men women expanded addition ready wear collection eyewear fragrances collection company category customers geographical markets presented respectively paragraphs report operations board directors distribution network company information analysis revenues revenues divided geographical area information regarding business model refer report operations board directors foundations business model casa moda remain firmly anchored distinctive elements identify position brand within ultra high end luxury range elevated extremely high quality supply raw materials excellence craftsmanship manual work exclusive prêt porter fer symbol authentic made italy exclusive offer excellence continues together maintenance values part company dna dignity profit special relationships territory brunello cucinelli casa moda universally recognised prime example humanistic capitalism combining safeguarding traditions appreciation persons work greater good com pany promotion important projects aimed beautifying territories company operates legacy left future generations group human resources equalled details pertaining number employees single geographical area refer section workforce group companies operate retail trade sector nace section classified high climatic impact revenues generated energy consumption attributed activities revenues correspond reported note revenues notes consolidated financial statements details regarding allocation total revenues financial statements significant esrs sectors refer paragraph operating segments notes consolidated financial statements sustainability plan harmony creation company stated sustainability strategy sustainability plan harmony creation updated approved board directors hereafter also bod july plan systematises strategies concerning human sustainability defined alignment support industrial plan objectives identified relative qualitative quantitative targets short medium long term result intention cause harm creation try cause little possible awareness greatest current challenges plan accounts context casa moda operates demands main shareholders projects already way field human sustainability framework defined united nations agenda related sustainable development goals sdgs sectors high climatic impact listed sections section nace defined delegated regulation commission sustainability plan inherent products casa moda geographical areas operates utilised sales channels annual financial report consolidated sustainability report plan organised six pillars represent six forms human sustainability linked one precepts decalogue enduring ideals life work define ultimate goal group sets respect pillar like consider beacon lights way achieving qualitative quantitative objectives targets defined short medium long term figure structure sustainability plan harmony creation forms human sustainability enduring ideals life work plan sections combating climate change procurement management raw materials regenerative approach sustainable supply chain management point use resources necessary natural make careful use universe point iii always act loyal guardians creation environmental sustainability brand identity made italy quality craftsmanship point work support fair proﬁtability harmony proﬁt giving back community economic sustainability support local communities surrounding point viii believe universalism act displaying great respect civilisations cultural sustainability dignity beauty workplaces point love respect mother earth cultivate land according nature welcome fruits greatest gif point fond young people pass hope dream bright future awaiting spiritual sustainability diversity inclusion fairness health safety protection human rights dignity work governance ethical business conduct human privacy point believe moral dignity human point seek harmony fair work human privacy point vii commemorate forefathers tey taught respect law story written words moral sustainability digitalisation artificial intelligence point welcome fair change order experience best time technological sustainability sustainability plan subject annual monitoring outcomes presented discussed meeting company board directors evaluated council human sustainability humanistic capitalism hand update plan terms redefinition relevant objectives targets take place every two years value chain company responsible design production sale collections physical digital retail channel wholesale channel process started creativity phase style design office creative team comprised people work together tailors daily basis creative process involves fining style collections designing products choosing materials accordance quality sustainability standards approved designed models transmitted company prototype department highly specialised workplace masters technicians set validated prototypes creates basis developing samples collection annual financial report consolidated sustainability report products produced laboratories small craft enterprises represent external production system phase repeated rigorous quality checks carried directly company sure absolute quality finished product laboratories process raw materials carefully searched selected company first level supply chain therefore comprised mainly two categories suppliers raw materials artisan companies produce final product starting yarns fabrics accessories components production phase incoming outgoing logistical flows permit controls performed semi finished product upstream raw material suppliers people cultivate raise extract raw materials nec essary creating products relative packaging company purchases abroad downstream chain instead comprised mainly channels sale collections physical digital retail channel wholesale channel end customer uses products represents final link value chain entire downstream value chain logistical flows differ depending customer geographical areas figure value chain casa moda forestry raw materials plant origin viscose cultivation raw materials vegetable origin cotton extraction synthetic raw materials textiles packaging breeding animals wool cashmere leather extraction raw materials component accessories metals prototyping quality solomeo laundry warehouses corporate locations digital channel group owned retail channel business activities human resources artisan workshops production finished products raw material suppliers geopolitical macroeconomic contex group value chain represented logistics upstream downstream operations wholesale channel end customer use phase sbm interests views stakeholders managing relationship stakeholders want kept date group strategy commitments activities order also gather feedback increasingly conscious manner annual financial report consolidated sustainability report figure stakeholders engagement guidelines involve collaborate monitor inform iti sit fin tio fin cia human relations stakeholders channels dialogue company approach dialogue stakeholders defined human relations policy ref mdr policies casa moda aims define principles values must guide moments dia logue stakeholders direct methods involvement identify internal functions responsible engagement relative reporting process make human relations policy operative formalised stakeholder engagement plan following objectives promote strategic continuous stakeholder engagement identify areas improvement plan best solutions terms involvement initiatives differentiated category stakeholder provide mechanism evaluating opportunities engagement arisen stakeholder category classified company management according four guidelines strategic importance make possible identify best dialogue channels use reinforce communication group stakeholders addition informal ordinary methods dialogue since company organized hoc occa sions every year directly involve representatives various stakeholder categories based mainly topics human sustainability involved representatives human resources schools universi ties professional associations artisan companies raw material suppliers financial regional community ref sections processes engaging workforce workers representatives impacts processes engaging value chain workers impacts processes engaging annual financial report consolidated sustainability report affected communities impacts processes engaging consumers end users impacts also developed tools support monitoring engagement activity aim mapping activities carried assessing effectiveness engagement function semi annual basis results semi annual summary shared aggregate council human sustaina bility humanistic capitalism well administration management control bodies listening stakeholder requests collected information channels well procedures described allow company continuously include evaluations stakeholders internal decision making strategic processes stakeholders also involved annually process developing double materiality analysis results analyses reported ceo bod final approval sbm material impacts risks opportunities interaction strategy business model relevant impacts risks opportunities hereafter also iros refer esrs standard topic two entity specific disclosures work sites generational transition iros mainly social nature secondly environmental identified impacts connected business model taken con sideration analysis defining company strategies among impacts emerged potential nature prevail equally distributed among concern operations value chain impacts risks within value chain require continuous management collaboration suppliers artisan laboratories social environmental point view aimed constant consolidation relations also includes high degree control purchased raw materials mitigate negative impact due greenhouse gas emissions group developed carbon strategy whose targets approved science based target initiative sbti initiatives requalification safeguarding territories generate positive impacts italy abroad also increasing allure exclusivity brand generating opportunities terms reputation promote commercial development positioning brand within exclusive high end market main impacts level operations concern employees garments mainly produced external production structure environmental impacts level operations modest addition guaranteeing legislative compliance company undertakes implement additional virtuous measures extent control multiple risks derive internal issues risks related corruption generational transition violation integrity personal data failure respect parameters accessibility inclusion towards end customers specific internal controls therefore defined implemented terms dedicated resources govern ance structures dedicated projects casa moda also identified positive impact risk connected specific disclosures positive impact concerns increase employee wellbeing promoting beauty workplaces rele vant principle company philosophy guarantees operational activities offices well production departments carried well kept visually appealing workplaces risk concerns potential compromising brand positioning result inadequate management generational transi tion governance level casa moda started analysis dedicated identifying possible financial effects related risks opportunities sustainability identified relevant analysis shows risks opportunities involve financial effect annual financial report consolidated sustainability report relevant topics impacts risks opportunities detailed table list relevant topics impacts risks opportunities description potential actual impact value chain time period sub topic sub sub topic reference negative impacts generation greenhouse gas due production transformation raw materials used collections actual upstream long term climate change mitigation generation greenhouse gas due upstream downstream transport distribution raw materials semi finished goods necessary collections actual upstream downstream long term increase ghg emissions deriving high levels energy consumption company premises points sale potential operations medium term climate change mitigation energy risks disruption business continuity warehouse operations business support activities due extreme natural events short term adaptation climate change worsening financial conditions related internal factors involve failure comply commitments taken regarding financial esg aspects long term climate change mitigation regulatory changes concerning fight climate change green deal fit absence company governance strategy concerning climate medium term compromise image reputation brunello cucinelli brand due failure reach objectives climate change mitigation long term annual financial report consolidated sustainability report description potential actual impact value chain time period sub topic sub sub topic reference negative impacts water pollution due inadequate management water discharges small craft enterprises suppliers potential upstream medium term water pollution pollution caused use chemicals particular hazardous ones along supply chain including company potential upstream operations medium term substances concern risks compromise image reputation brunello cucinelli brand due supplier small craft enterprise activities violate applicable standards additional commitments taken group terms pollution medium term water pollution substances concern description potential actual impact value chain time period sub topic sub sub topic reference negative impacts insufficient consumption water resource along supply chain including company potential upstream operations medium term water consumption inefficient management water withdrawals particular water stressed areas along supply chain including company potential upstream operations medium term water withdrawals water pollution due inadequate management water discharges small craft enterprises suppliers potential upstream medium term water discharges risks compromise image reputation brunello cucinelli brand due supplier small craft enterprise activities violate applicable standards additional commitments taken group terms consumption water resources medium term water consumption annual financial report consolidated sustainability report description potential actual impact value chain time period sub topic sub sub topic reference positive impacts positive impacts local biodiversity conditions territories himalayas regenerative agriculture project himalayan regenerative fashion living lab ongoing actual upstream medium term impacts dependencies terms ecosystem services negative impacts negative impacts biodiversity resulting cultivation breeding deforestation practices production cellulose viscose obtained necessary production raw materials used collections actual upstream long term soil degradation desertification soil sealing opportunity reputational benefits greater attractiveness towards investors means positive external effects generated regenerative agriculture project himalayan regenerative fashion living lab whose significance international upstream medium term impacts dependencies terms ecosystem services description potential actual impact value chain time period sub topic sub sub topic reference positive impacts implementation solutions promote circularity particular reference longevity garments repair recovery production scraps actual upstream downstream long term inflows resources including use resources outflows resources connected products services negative impacts negative impacts caused inefficient management waste along supply chain including company terms excessive production poor attention recovery recycling operations potential upstream operations long term waste risks compromise image reputation brunello cucinelli brand due supplier small craft enterprise activities violate applicable standards additional commitments taken group terms pollution medium term waste annual financial report consolidated sustainability report description potential actual impact value chain time period sub topic sub sub topic reference positive impacts increase employee wellbeing promoting company welfare payment correct wage potential operations medium term adequate wages development human resources defining continuous improvement skill learning courses actual operations medium term skill training development negative impacts limited attention aspects work life balance potential operations medium term work life balance occupational accidents diseases performing work activities related interference specific risks location reference human resources casa moda actual operations medium term health safety negative impacts female employees terms limited possibilities personal professional growth due presence pay gap women men potential operations long term gender equality equal pay equal work insufficient satisfaction regarding expectations personal professional growth human resources potential operations medium term skill training development lack respect values diversity inclusion equal opportunities casa moda potential operations medium term employment inclusion people disabilities diversity compromise privacy availability integrity personal human resource data due internal factors non conformity procedures governance applications terms privacy external factors suppliers responsible processing data casa moda data controller potential operations medium term privacy risks difficulties finding specific resources skills market attracting mainly related increasing market demand flexibility medium term work life balance risk losing key skills knowledge medium term work life balance labour law disputes medium term health safety undermining employee motivation due failed reduced application diversity inclusion values company negative consequences reaching company objectives operations medium term gender equality equal pay equal work employment inclusion people disabilities diversity annual financial report consolidated sustainability report description potential actual impact value chain time period sub topic sub sub topic reference internal skill knowledge level aligned needs organisation traced back training phase core business operations medium term skill training development inability group meet requests data subjects failure meet legal deadlines deletion access data rectification data withdrawal consent upstream operations downstream short term privacy penalties compensation damage deriving compromise privacy integrity availability personal data due external factors suppliers responsible processing data data controller upstream operations downstream short term penalties compensation damage deriving compromise privacy integrity availability personal data due internal factors upstream operations downstream short term description potential actual impact value chain time period sub topic sub sub topic reference negative impacts occupational accidents diseases performing work activities workers supply chain potential upstream medium term health safety failure respect principles equal opportunity diversity inclusion reference inclusion persons disabilities along supply chain potential upstream short term employment inclusion people disabilities diversity violation human rights fundamental labour rights along supply chain particular reference phenomena child labour potential upstream short term child labour violation human rights fundamental labour rights along supply chain particular reference phenomena forced mandatory labour potential upstream short term forced labour risks compromise image reputation brunello cucinelli brand due supplier small craft enterprise activities violate applicable standards additional commitments taken group terms health safety short term health safety annual financial report consolidated sustainability report description potential actual impact value chain time period sub topic sub sub topic reference compromise image reputation brunello cucinelli brand due supplier small craft enterprise activities violate applicable standards additional commitments taken group protect principles equality opportunities diversity inclusion short term employment inclusion people disabilities diversity compromise image reputation brunello cucinelli brand due supplier small craft enterprise activities violate applicable standards additional commitments taken group terms forced mandatory labour child labour short term child labour forced labour description potential actual impact value chain time period sub topic sub sub topic reference positive impacts positive impacts local economy territories himalayas regenerative agriculture project himalayan regenerative fashion living lab ongoing actual upstream medium term impacts related territory support redevelopment region promotion local artistic cultural heritage actual upstream operations downstream long term development promotion quality craftsmanship reside territory deriving exclusivity allure brand actual upstream operations downstream long term opportunity reputational benefits deriving lasting support activities local territories communities upstream downstream long term impacts related territory annual financial report consolidated sustainability report description potential actual impact value chain time period sub topic sub sub topic reference negative impacts failed partial protection privacy personal data customers consumers potential downstream short term privacy protection children risks penalties compensation damage deriving compromise privacy integrity availability personal data due external factors suppliers responsible processing data data controller upstream operations downstream short term privacy penalties compensation damage deriving compromise privacy integrity availability personal data due internal factors upstream operations downstream short term litigation customers associations class action operations downstream short term health safety responsible business practices negative effects group deriving products manufactured items lifestyle line comply brunello cucinelli quality standards potentially harmful end customer operations downstream short term health safety inability group meet requests data subjects failure meet legal deadlines deletion access data rectification data withdrawal consent operations downstream short term protection children partial accessibility shops people motor disabilities operations downstream short term non discrimination access products services description potential actual impact value chain time period sub topic sub sub topic reference negative impacts failure observe along supply chain practices necessary guarantee respect animal welfare potential upstream medium term animal welfare harm interests investors due market abuses potential operations medium term accidents positive impacts positive current long term impact artisan laboratories collaborate group relation business volumes higher rest market casa moda generates generated also periods crisis actual upstream short term management supplier relations annual financial report consolidated sustainability report description potential actual impact value chain time period sub topic sub sub topic reference risks acts corruption relations public authorities inspection agencies customs agency revenue office private authorities suppliers intermediaries medium term company culture compromise image reputation brunello cucinelli brand due supplier small craft enterprise activities violate applicable standards additional commitments taken group ensure animal welfare medium term animal welfare offence abuse privileged information insider trading medium term accidents specific impact risk opportunity disclosures workplaces description potential actual impact value chain time period sub topic sub sub topic reference positive impacts increase employee wellbeing promoting beauty workplaces actual operations medium term generational transition description potential actual impact value chain time period sub topic sub sub topic reference risks compromise brand positioning result inadequate management generational transition medium term annual financial report consolidated sustainability report resilience company strategy model company performed qualitative analysis resilience company model regards ability face relevant impacts risks take advantage relevant opportunities initial analysis covers one year period line industrial plan analysis compatibility objectives industrial plan company risk profile respect global sector trends result demonstrates solid level resilience respect impacts risks opportunities ability mitigate negative impacts continue realising positive impacts analysed consider ation objectives industrial plan sustainability plan including sbti targets results erm risk profile analysis compatibility objectives industrial plan particular impacts related climate change monitored within scope trajectory emissions validated sbti impacts related supply chain environmental social managed supplier qualification selection processes business strategy based absolute quality fashion garments guarantees positive impacts thanks maximum durability repair service offered com pany impacts related employees training privacy diversity workplaces managed using multiple activity flows whose resources provided industrial plan company resilience risks assessed least year bod internal control risk management system ref esrs iro company carried following activities order assess ability manage risks annual risk assessment involvement company risk owners main group subsidi aries vertical analysis compatibility short term strategic objectives risk profile defined means risk assessment global sector trends period possible risks emerging trends vertical analysis risks connected climate change aimed assessing company ability face physical climate risks different scenarios take advantage possible insights regarding transition risks opportunities based analyses performed bod find elements would make believe audit risk management system effective adequate regard characteristics company risk profile company ability take advantage opportunities assessed basis consistent approval industrial plan includes projects relative economic resources able provide continuity numerous initiatives casa moda known reference ethical luxury signif icant reputational benefits derive annual financial report consolidated sustainability report governance gov role administrative management supervisory bodies corporate governance system divided following bodies administrative bodies board directors management bodies chief executive officers ceos chief financial officer cfo control bodies board statutory auditors external auditors addition bodies supervisory board pursuant legislative decree annual financial report consolidated sustainability report figure corporate governance structure shareholders meeting brunello cucinelli riccardo stefanelli luca lisandroni camilla cucinelli carolina cucinelli giovanna manfredi andrea pontremoli stefano domenicali ramin arani maria cecilia manna katia riva chiara dorigotti guido barilla alessio piastrelli control risk committee board directors remuneration appointments committee chiara dorigotti katia riva ramin arani independent members board statutory auditors paolo prandi dante valobra anna maria fellegara isabella ippolita soldani myriam amato external auditor board committees proactive advisory role executive director cfo non executive director independent alternate auditor standing auditor deputy chairperson chief executive officer key chairperson independence refers definition contained article ter legislative decree corporate governance code borsa italiana male representation independent directors male representation management bodies riccardo stefanelli luca lisandroni dario pipitone male representation maria cecilia manna chiara dorigotti katia riva independent members annual financial report consolidated sustainability report responsibilities group governance bodies regard impacts risks opportunities stated procedure defining double materiality process pursuant esrs procedure collecting data necessary purposes consolidated sustainability reporting pursuant legislative decree interpreted specifically multiple company policies particular human relations policy environmental policy always act loyal guardians creation human sustainabil ity policy harmony creation diversity inclusion anti corruption policies administrative management supervisory bodies internal managerial functions responsible implementation chief executive officers responsible process identifying assessing impacts risks opportunities connected sustainability issues regarding company value chain company directors actively participate assessing iros board directors final responsibility approving results double materiality analysis following functions participate process administration finance control reporting cfo human sustainability reporting ceos erm internal audit reporting board directors board statutory auditors according specified art legislative decree pervises observance provisions decree reports annual report shareholders meeting external auditors verify compliance double materiality process pursuant esrs relation sustainability objectives board directors ultimately responsible approval objectives contained sustainability plan council human sustainability humanistic capitalism performs investigative propositional advisory support role ensuring coordination monitoring preparation proposals updating content sustainability plan chief executive officers ceos contribute towards process performing preliminary technical vali dation objectives submitted bod final approval governance structure guarantees integrated decision making process bod holds final strategic responsibilities supported technical expertise investigative contributions bodies responsibilities regarding sustainability distributed among various administrative management super visory bodies particular reference executive chairman chief executive officers cfo directors members board statutory auditors well external auditors members board directors include chief executive officers also currently include managers company independent directors many years experience expertise fashion luxury sector listed companies furthermore level internal company functions human sustainability team specifically dedicated managing sustainability topics proactive advisory role benefits bod internal advisory committees within scope implementation sustainability plan human sus tainability team coordinates monitors progress objectives targets set plan consultation corporate functions directly involved reporting chief executive officers company also relied network expert sustainability advisors many years details technical specific skills member please refer cvs published company investor relations website following link https investor brunellocucinelli com governance board directors annual financial report consolidated sustainability report gov information provided sustainability matters addressed undertaking administrative management supervisory bodies bod chief executive officers cfo board statutory auditors informed least annually relevant impacts risks opportunities means information flows managed enterprise risk management internal audit function human sustainability team furthermore latter also provides annual disclosures bodies regarding results effectiveness policies actions metrics objectives starting internal audit team support consultants also carries annual session direct involvement least one ceo performs deep analysis strategic risks also emerging ones impact group industrial plan short term gov integration sustainability related performance incentive schemes incentive systems remuneration policies connected sustainability issues regulated within com pany remuneration report specifically remuneration policy company directors top management statutory auditors proved shareholders meeting following proposal board directors assisted remuneration appointments committee accordance recommendations italian stock exchange corporate governance code remuneration policy provides payment fixed remuneration variable remuneration manage ment objectives mbo performance metrics related sustainability added definition variable components intended chief executive officers remuneration policy distinguishes short term components annual time frame connected reaching short term per formance objectives also non economic nature esg consisting primarily cash remuneration well medium long term components connected reaching medium long term performance objectives objectives least months consisting also financial instruments equity based short term var iable remuneration envisaged ceos associated economic performance turnover human sustainability goals gov statement due diligence company implements due diligence activities objective identifying assessing managing negative impacts environment people well risks deriving aspects reference activities well related value chain following table shows disclosure requirements sustainability reporting well fundamental ements due diligence process company remuneration report consulted online following link https investor brunellocucinelli com annual financial report consolidated sustainability report table due diligence fundamental elements due diligence paragraphs sustainability statement integrate due diligence governance strategy company 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 involve stakeholders fundamental phases due diligence sbm interests views stakeholders identify assess negative impacts gov role administrative management supervisory bodies sbm material impacts risks opportunities interaction strategy business model iro description processes identify assess material impacts risks opportunities intervene address negative impacts actions resources relation climate change policies actions resources related pollution actions resources related water marine resources actions resources related biodiversity ecosystems actions resources related resource use circular economy processes remediate negative impacts channels workers raise concerns taking action material impacts workforce approaches mitigating material risks pursuing material opportunities related workforce effectiveness actions 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 processes remediate negative impacts channels affected communities raise concerns taking action material impacts affected communities approaches managing material risks pursuing material opportunities related affected communities effectiveness actions 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 annual financial report consolidated sustainability report fundamental elements due diligence paragraphs sustainability statement monitor effectiveness measures communicate energy consumption mix gross scopes total ghg emissions pollution air water soil substances concern substances high concern water consumption impact metrics related biodiversity ecosystems change resource inflows resource outflows characteristics undertaking employees characteristics non employee workers undertaking workforce diversity metrics adequate wages persons disabilities training skills development metrics health safety metrics work life balance compensation metrics incidents complaints severe human rights impacts confirmed incidents corruption bribery gov risk management internal controls sustainability reporting casa moda defined internal control management system risks connected sustain ability reporting process system updated based reporting requirements defined csrd esrs benefits company experience terms risk control management acquired within context preparing sustainability reports prior csrd obligation two interconnected procedures defined within scope sustainability reporting process govern ance procedure collecting data necessary purposes sustainability reporting pursuant legislative decree procedure defining double materiality process pursuant esrs regulate processes definition collection preparation approval sustainability disclosure subject reporting potential risks related reporting processes identified casa moda concern quality accuracy completeness data failure observe deadlines compliance regulations reference data collection validation process includes three control levels first performed data owners contact persons performing operations second performed administration finance control team human sustainability team also means reconciliation company information sources third performed internal audit team whose checks subject specific reporting administrative control bodies specific reference calculation organisation carbon footprint includes analysis called scope related value chain company already subjecting ghg emission inventory limited assurance third parties many years company started significant group wide digitalisation process purpose transforming company processes information systems also apply sustainability reporting processes annual financial report consolidated sustainability report management impacts risks opportunities iro description processes identify assess material impacts risks opportunities process identifying impacts risks opportunities based analyses carried multiple cate gories documentary sources macrotrends sector reports economic financial results group consolidated non financial statement nfs esg rating group risk rating esrs tcfd tnfd frame work selection peers regulatory sources furthermore value chain casa moda analysed mapping categories actors part sector measurement relevance type relation casa moda specific activity performed geographical location identified impact identified consideration connections risks opportunities derive furthermore impact risk opportunities identified long list associated one sub sub topics defined esrs sustainability topics covered esrs nature effective potential area value chain falls connected geographic factors relative business reports case upstream downstream impacts time period effects correlation human rights identified every impact time period financial effects organisation identified every risk opportunity process assessing impacts risks opportunities carried involvement compa management well stakeholder categories management involved interviews concerning area responsibility impacts risks opportunities connected sub sub topic health safety workforce evaluated rspp involved stakeholders selected accordance company stakeholder engagement plan methodological requirements esrs con cerns one expert stakeholder university professor recognised sustainability experience representative sample human resources financial community requested assess impacts risks opportunities latter assessed expert stakeholder financial community based areas responsibility employees assessed impacts connected workforce tools used face face focus groups digital interviews surveys management well stake holders possibility add long list impacts risks opportunities identifying additional ones relevance impacts assessed using metric based probability severity parameters three separate dimensions severity analysed extent scope case negative impacts irreparable nature impact traced area reference environment person etc specific metrics correspond severity impact calculated average values extent scope applicable irreparable nature case impacts regarding human rights stricter materiality threshold applied places weight severity respect probability occurrence probability assessed relation potential positive negative impacts risks identified assessed using enterprise risk management erm processes annual risk assessments process regulated erm guidelines approved bod integrated double materiality analysis required relative procedure according methodology defined company assessment process based interviews risk owners performed internal audit team support specialised consultants interviews risks identified assessed risk owners inherent level regardless internal control system used company regard ing probability extent accordance metrics approved ceos based economic nancial criteria well qualitative criteria task force climate related financial disclosure task force nature related financial disclosure annual financial report consolidated sustainability report risk identification assessment include aspects connected topics mapped esrs correla tion also terms causality topics impacts already mapped owners owners addressed internal audit team risk assessment together teams identified double materiality procedure methods defined therein possible correlation subject validation responsible risk owners opportunities extent connected esg topics identified assessed double materiality process based qualitative metrics mainly based reputational criteria well quantitative metrics based economic financial criteria administration finance control function responsible risks prioritised end risk assessment activities consideration residual level risk risks related sustainability included prioritisation without prevalence attributing priority treatment nevertheless based erm guidelines risk assessment residual level exceeds risk appetitive determined company category management reference required immediately define plan aims return risk profile within limits defined bod company adopted procedure performing double materiality analysis regulates method integrating identification assessment impacts risks opportunities integration based collaboration administration finance control internal audit human sustainability teams also point view erm process foresees validation risk assessment owners cludes possible correlation identified risks impacts impacts also among causes consequences risk mapped risk register identification assessment opportunities limited opportunities connected esg topics specified esrs results double materiality analysis led identification relevant information provide report iro disclosure requirements esrs covered undertaking sustainability statements esrs standard disclosure obligation description disclosure obligation list information specified transversal thematic standards deriving legislative acts page reference section reason exclusion general basis preparation sustainability statements disclosures relation specific circumstances gov role administrative management supervisory bodies gender diversity board paragraph letter percentage independent members board directors paragraph letter annual financial report consolidated sustainability report esrs standard disclosure obligation description disclosure obligation list information specified transversal thematic standards deriving legislative acts page reference section reason exclusion gov information provided sustainability matters addressed undertaking administrative management supervisory bodies gov integration sustainability related performance incentive schemes gov statement due diligence gov risk management internal controls sustainability reporting sbm strategy business model value chain involvement activities connected activities fossil fuel sector paragraph involvement activities connected production chemicals paragraph participation activities connected controversial weapons paragraph iii applicable involvement activities connected cultivation production tobacco paragraph applicable sbm interests views stakeholders sbm material impacts risks opportunities interaction strategy business model iro description processes identify assess material impacts risks opportunities iro disclosure requirements esrs covered undertaking sustainability statements policies mdr policies adopted manage material sustainability matters actions mdr actions resources relation material sustainability matters metrics mdr metrics relation material sustainability matters annual financial report consolidated sustainability report esrs standard disclosure obligation description disclosure obligation list information specified transversal thematic standards deriving legislative acts page reference section reason exclusion targets mdr tracking effectiveness policies actions targets esrs gov integration sustainability related performance incentive schemes transition plan climate change mitigation transition plan reach climate neutrality paragraph undertakings excluded paris aligned benchmarks paragraph esrs sbm material impacts risks opportunities interaction strategy business model esrs iro description processes identify assess material climate related impacts risks opportunities policies related climate change mitigation adaptation actions resources relation climate change policies targets related climate change mitigation adaptation ghg emission reduction targets paragraph energy consumption mix energy consumption fossil sources disaggregated sources high climate impact sectors paragraph energy consumption mix paragraph energy intensity associated activities high climate impact sectors paragraphs gross scopes total ghg emissions gross ghg emissions intensity paragraphs ghg removals ghg mitigation projects financed carbon credits applicable casa moda use carbon credits internal carbon pricing applicable casa moda use internal carbon pricing system annual financial report consolidated sustainability report esrs standard disclosure obligation description disclosure obligation list information specified transversal thematic standards deriving legislative acts page reference section reason exclusion anticipated financial effects material physical transition risks potential climate related opportunities phase esrs iro description processes identify assess material pollution related impacts risks opportunities policies related pollution actions resources related pollution targets related pollution pollution air water soil amount pollutant listed annex prtr regulation european pollutant release transfer register emitted air water soil paragraph substances concern substances high concern anticipated financial effects pollution related impacts risks opportunities phase except period reference casa moda operating expenses opex capital expenditures capex conjunction major deposits incidents esrs iro description processes identify assess material water marine resources related impacts risks opportunities policies related water marine resources water marine resources paragraph dedicated policy paragraph applicable sustainable oceans seas paragraph applicable actions resources related water marine resources targets related water marine resources annual financial report consolidated sustainability report esrs standard disclosure obligation description disclosure obligation list information specified transversal thematic standards deriving legislative acts page reference section reason exclusion water consumption total water recycled reused paragraph total water consumption per net revenue operations paragraph anticipated financial effects water marine resources related impacts risks opportunities phase transition plan consideration biodiversity ecosystems strategy business model esrs sbm material impacts risks opportunities interaction strategy business model esrs iro description processes identify assess material biodiversity ecosystem related impacts risks opportunities paragraph paragraph paragraph policies related biodiversity ecosystems sustainable land agriculture practices policies paragraph applicable sustainable oceans seas practices policies paragraph applicable policies address deforestation paragraph actions resources related biodiversity ecosystems targets related biodiversity ecosystems annual financial report consolidated sustainability report esrs standard disclosure obligation description disclosure obligation list information specified transversal thematic standards deriving legislative acts page reference section reason exclusion impact metrics related biodiversity ecosystems change company identified sites located near biodiversity sensitive areas negatively affecting furthermore casa moda directly contribute impact drivers land use change freshwater use change sea use change anticipated financial effects material biodiversity ecosystem related risks opportunities phase esrs iro description processes identify assess material resource use circular economy 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 non recycled waste paragraph hazardous waste radioactive waste paragraph anticipated financial effects resource use circular economy related impacts risks opportunities phase esrs sbm interests views stakeholders annual financial report consolidated sustainability report esrs standard disclosure obligation description disclosure obligation list information specified transversal thematic standards deriving legislative acts page reference section reason exclusion esrs sbm material impacts risks opportunities interaction strategy business model risk incidents forced labour paragraph risk incidents child labour paragraph policies related workforce human rights policy commitments paragraph due diligence policies issues addressed fundamental international labour organisation conventions paragraph processes measures preventing trafficking human beings paragraph workplace accident prevention policy management system paragraph processes engaging workers workers representatives impacts processes remediate negative impacts channels workers raise concerns grievance complaints handling mechanisms paragraph taking action material impacts workforce approaches mitigating 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 employee workers undertaking workforce diversity metrics collective bargaining coverage social dialogue non material topic adequate wages social protection non material topic persons disabilities annual financial report consolidated sustainability report esrs standard disclosure obligation description disclosure obligation list information specified transversal thematic standards deriving legislative acts page reference section reason exclusion training skills development metrics health safety metrics number fatalities number rate work related accidents paragraph number days lost injuries accidents fatalities illness paragraph work life balance metrics compensation metrics pay gap total compensation unadjusted gender pay gap paragraph excessive ceo pay ratio paragraph incidents complaints severe human rights impacts incidents discrimination paragraph non respect ungps business human rights oecd paragraph specific disclosure workplaces esrs sbm interests views stakeholders esrs sbm material impacts risks opportunities interaction strategy business model significant risk child labour forced labour value chain paragraph policies related value chain workers human rights policy commitments paragraph policies related value chain workers paragraph non respect ungps business human rights principles oecd guidelines paragraph due diligence policies issues addressed fundamental international labour organisation conventions paragraph processes engaging value chain workers impacts processes remediate negative impacts channels value chain workers raise concerns annual financial report consolidated sustainability report esrs standard disclosure obligation description disclosure obligation list information specified transversal thematic standards deriving legislative acts page reference section reason exclusion taking action material impacts value chain workers approaches managing material risks pursuing material opportunities related value chain workers effectiveness action human rights issues incidents connected upstream downstream value chain paragraph targets related managing material negative impacts advancing positive impacts managing material risks opportunities esrs sbm interests views stakeholders esrs sbm material impacts risks opportunities interaction strategy business model policies related affected communities processes engaging affected communities impacts processes remediate negative impacts channels affected communities raise concerns 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 annual financial report consolidated sustainability report esrs standard disclosure obligation description disclosure obligation list information specified transversal thematic standards deriving legislative acts page reference section reason exclusion esrs sbm interests views stakeholders esrs sbm material impacts risks opportunities interaction strategy business model policies related consumers end users policies related consumers end users paragraph non respect ungps business human rights principles oecd guidelines paragraph 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 human rights issues incidents paragraph targets related managing material negative impacts advancing positive impacts managing material risks opportunities gov role administrative management supervisory bodies esrs iro description processes identify assess material impacts risks opportunities corporate culture business conduct policies united nations convention corruption paragraph protection whistle blowers paragraph applicable management supplier relations annual financial report consolidated sustainability report esrs standard disclosure obligation description disclosure obligation list information specified transversal thematic standards deriving legislative acts page reference section reason exclusion prevention detection corruption bribery confirmed incidents corruption bribery fines violation anti corruption anti bribery laws paragraph standards anti corruption anti bribery paragraph political influence lobbying activities non material topic payment practices non material topic entity specific generational transition mdr policies casa moda casa moda broad structured policy system protection environment main stakeholder categories line ethical business conduct code ethics lies base entire body internal policies defines rules values prin ciples form basis group operations takes role guiding behaviours actions stakeholders adoption application code ethics essential achievement company primary objective creation value group stakeholders integral part reference ethical framework brunello cucinelli model formalising coherent system organisational management control principles provisions procedures company policies presented information policies casa moda refer governance section website following link https investor brunellocu cinelli com services archive governance human sustainability policies must brought attention stakeholders including employees group companies suitable communication channels including publication corporate website corporate intranet translated pertinent languages guarantee effective dissemination properly informed stakeholders required comply principles contained therein annual financial report consolidated sustainability report figure presentation company policies contents objectives approved represents philosophical framework casa moda embodied commitments group defined internally relations external stakeholders also constitute cornerstones strategy expressed sustainability plan sense policy represents frame reference management processes impacts risks opportunities field sustainability policy human sustainability policy harmony creation human relations policy scope application policy addressed group regions functions identified responsible engagement different categories stakeholders considered direct recipients contents employees end customers wholesale customers media public administration regulatory bodies trade associations schools universities community territory small craft enterprises suppliers community shareholders investors financial analysts financial institutions recipients human sustainability policy act name behalf group interest example corporate bodies members employees collaborators raw material suppliers small craft enterprises consultants partners council humanistic capitalism human sustainability directly responsible implementation coordination monitoring updating contents policy policy approved board directors ultimate responsibility strategic decisions projects sustainability lies board directors role defining guiding group sustainability policies implementation activities group committed periodically monitoring effectiveness stakeholder engagement processes assessing particular following dimensions commitment objectives iii inclusiveness terms internal functions categories stakeholders involved operational methods engagement level stakeholder participation monitoring senior level responsible council humanistic capitalism human sustainability directly responsible implementation coordination monitoring updating contents policy approved board directors holds ultimate responsibility strategic decisions projects sustainability issues reference regulations united nations general assembly resolution iii universal declaration human rights res iii december united nations general assembly resolution transforming world agenda sustainable development res september united nations framework convention climate change paris agreement global compact principles june organizzazione per organisation economic operation development oecd guidelines multinational enterprises may international labour organisation conventions fundamental labour rights principles universal declaration human rights conventions fundamental labour rights principles international labour organisation ilo stakeholder engagement standard esrs csrd specific reference principle stakeholder inclusiveness workforce workers value chain affected communities consumers end users climate change pollution water marine resources biodiversity ecosystems resource use circular economy workforce workers value chain affected communities business conduct adopted based core value sharing permeates company philosophy working method embraces subjects involved within value creation chain aim implementing strategic approach capable preserving lasting human relations policy contains principles values must guide moments dialogue stakeholders represents frame reference management sustainability impacts risks opportunities connected management relations stakeholders pertaining casa moda multiplicity heterogeneity categories stakeholders interact requires use tools channels dialogue take account specificities interests type stakeholder communication involvement mainly developed informal dialogue channels based direct relations relevant corporate functions individual stakeholders frequency dialogue varies depending type stakeholder channel activated may annual occasions discussion well interactions characterised daily continuity capable adapting needs stakeholders informal channels dialogue complemented periodic formalised moments engagement focus groups questionnaires reference esrs annual financial report consolidated sustainability report contents objectives adopted board directors august policy identifies fight climate change one main areas environmental action terms climate change mitigation adaptation particular reference calculation carbon footprint climate strategy reduction targets validated sbti committed ensuring environmental protection always recognised core principle business activities policy defines main guidelines around specific actions strategies defined achieve environmental objectives policy environmental sustainability policy always act loyal guardians creation diversity inclusion policy scope application policy applies companies brunello cucinelli group well relations third parties entertained acting name behalf companies brunello cucinelli group covers company activities direct indirect reference supply chain casa moda committed monitoring alignment partners regulated policy possible direct suppliers requested implement checks respect suppliers main stakeholders affected policy producers suppliers raw materials craft workshops human resources collaborators consultants council humanistic capitalism human sustainability directly responsible implementation coordination monitoring updating contents policy pursuant article gdpr data controller responsible implementing appropriate technical organisational measures ensure demonstrate compliance gdpr controller means company specifically senior management company board directors ceo law highest level responsible regulatory compliance regard protection personal data data controller reserves right amend simply update content part full also due changes applicable legislation monitoring senior level responsible council humanistic capitalism human sustainability directly responsible implementation coordination monitoring updating contents policy approved board directors holds ultimate responsibility strategic decisions projects sustainability issues monitoring impacts casa moda activities subject specific reporting within consolidated sustainability reporting reference regulations united nations rio declaration environment development ten principles global compact principles vii viii united nations agenda responsible development sustainable development goals sdgs sdgs affordable clean energy responsible consumption production climate action life land paris agreement green deal oecd guidelines multinational enterprises responsible business conduct universal declaration human rights united nations convention discrimination international labour organisation ilo sustainable development goals sdgs gender equality goal reduced inequalities workforce workers value chain climate change pollution water marine resources biodiversity ecosystems resource use circular economy adopted structured five pillars dignity work culture diversity inclusive leadership equal opportunities inclusive communication pillar policy defines specific actions committed implementing committed ensuring principles commitments expressed within policy underpin entire professional life collaborators employees non employees extended group relations outside world aim promoting universality privacy policy system policy applies business regions well entire value chain area confidentiality data protection personal data stakeholders identified recipients policy employees customers suppliers art legislative decree regulation workforce consumers end users policy system deals processing personal data based principles correctness lawfulness transparency purpose limitation storage minimisation accuracy integrity confidentiality principle accountability personal data therefore processed accordance legal provisions regulation confidentiality obligations therein processing personal data means operation automated otherwise applied data collecting storing modifying consulting using sharing comparing limiting deleting reference esrs annual financial report consolidated sustainability report mdr actions policies casa moda actions casa moda related current year reported specific disclosure sections esrs mdr metrics casa moda metrics document identified precise names descriptions depending cases detailed information provided applied methodologies significant assumptions adopted limits methodologies details regarding individual metrics provided specific disclosure sections esrs metrics related group ghg emissions inventory validated external body furthermore metrics year references used evaluate services effectiveness rela tion relevant impacts risks opportunities mdr targets casa moda new sustainability plan casa moda entitled harmony creation created based qualitative quantitative short medium long term objectives targets ref sbm strate business model value chain purpose plan continue defining strategic objectives sustainability taking account context casa moda operates demands main stakeholders framework defined united nations agenda correlated sustainable development goals sdgs annual financial report consolidated sustainability report alignment framework reference targets casa moda presented explained detail dedicated sections present individual esrs figure presentation company targets absolute value scope emissions represents base year target equals absolute value scope emissions represents base year target equals fabric packaging purchased casa moda derives project recovery production scraps paper cardboard packaging purchased casa moda fsc certified suppliers involved compilation questionnaire represent group raw materials audit activity involved small craft enterprises esrs unit measurement target description ongoing relative relative target year scope sbti target reduction ghg scope emissions compared sbti target reduction ghg scope emissions compared operations upstream operations downstream relative relative fabric packaging least fabric packaging produced within direct management production scrap disposal project paper cardboard packaging least purcha sed fsc certified upstream operations upstream operations absolute absolute realisation additional workshops theme diversity inclusion extension group privacy model least additional foreign regions operations operations relative involvement raw material suppliers account group raw materials completion qualitative quantitative self assessment questionnaire personnel section upstream operations business conduct absolute realisation workshops anti corruption ethical business conduct operations relative audit activities least group small craft enterprises upstream operations climate change circular economy workforce workers value chain annual financial report consolidated sustainability report environmental information climate change governance esrs gov integration sustainability related performance incentive schemes reference remuneration members administrative management supervisory bodies casa moda took account climate related considerations defining variable short term component remuneration structure chief executive officers specifically climate related esg targets represented preparation ghg inventory assurance third parties preparation climate change section carbon disclosure project cdp questionnaire strategy transition plan climate change mitigation within scope sustainability plan harmony creation casa moda decided develop transition plan climate change mitigation currently line set forth group carbon strategy casa moda defined specific virtuous targets reduction direct scope indirect scope emissions generated group targets fined line actions necessary containing warming climate according defined paris agreement approved science based targets initiative sbti esrs sbm material impacts risks opportunities interaction strategy business model analysis risks related climate change become crucial component company management strategy result double materiality analysis performed casa moda physical transition risks indicated table defined managed suitable manner lead negative effects locally well globally pointing need effective adaptation mitigation policies strategies table physical transition climate related risks significant climate related risk physical risk transition risk disruption business continuity warehouse operations business support activities due extreme natural events drought heavy rains flooding landslides worsening financial conditions related internal factors involve failure comply commitments taken regarding financial esg aspects regulatory changes concerning fight climate change green deal fit absence company governance strategy concerning climate perception external stakeholders principles sustainability sufficiently distributed within group annual financial report consolidated sustainability report consideration casa moda performed resilience analysis regarding climate change period end beginning basing scenarios applicable group business model analysis based scientifically recognised sources ipcc reports coher ent guidelines network greening financial system ngfs analysis also considered shared socioeconomic pathways ssp ssp ssp define different macroeconomic technological political contexts ssp sustainability aligned iea net zero sustainable development global cooperation rapid abandon ment fossil fuels ssp middle road gradual transition moderate climate policy ssp fossil fuelled development economic growth based fossil fuels low regulation time periods considered medium term long term result analysis demonstrated company strongly capable managing negative effects deriving possible physical risks related climate change therefore following analysis nec essary change company strategy reference physical climate risks analysis performed based scenarios rcp rcp identified ipcc order evaluate possible consequences business regarding business continu ity light chronic acute physical risks along supply chain related specifically production sites italian artisan companies specifically identified physical risks landslide risk regions umbria tuscany flood risk regions tuscany veneto heat waves drought heavy rain solomeo site production facilities penne specifically identified physical risks heat waves drought heavy rain iii logistics site located united states usa specifically identified physical risks heavy rain storms also serious problems related coldwaves occurred past terms dependency strategic materials cashmere cotton specifically cotton droughts represent main acute climate risk threatening yield quality fibres concerns cashmere dzud climatic phenomenon affects central asia hot dry summers followed severe winters rep resents main acute climate risk threatening survival animals quality fibres management impacts risks opportunities esrs iro description processes identify assess material climate related impacts risks opportunities process adopted identifying evaluating impacts risks opportunities related described detail esrs iro thanks process described therein casa moda examined connections intergovernmental panel climate change rcp scenario strong mitigation line heating limited approximately useful evaluating transition risks associated ambitious policies european green deal fit esg regulations rcp high emission scenario representative trajectory without effective mitigation useful evaluating long term acute chronic physical risks annual financial report consolidated sustainability report identified impacts dependencies risks opportunities result impacts complete table double materiality results instead present section sbm material impacts risks opportunities interaction strategy business model esrs table list impacts risks opportunities relevant topic climate change description potential actual impact value chain time period sub topic sub sub topic reference negative impacts generation greenhouse gas due production transformation raw materials used collections actual upstream long term climate change mitigation generation greenhouse gas due upstream downstream transport distribution raw materials semi finished goods necessary collections actual upstream downstream long term increase ghg emissions deriving high levels energy consumption company premises points sale potential operations medium term energy risks disruption business continuity warehouse operations business support activities due extreme natural events short term adaptation climate change worsening financial conditions related internal factors involve failure comply commitments taken regarding financial esg aspects long term climate change mitigation regulatory changes concerning fight climate change green deal fit absence company governance strategy concerning climate medium term compromise image reputation brunello cucinelli brand due failure reach objectives climate change mitigation long term although evaluations performed formal consultation affected communities environmental topics covered document climate change pollution water marine sources biodiversity ecosystems resource use circular economy casa moda maintained constant dialogue territory communities always considered priority precise moral duty actively contribute towards improving quality life economic social cultural civil medical scientific development areas operates targeted initiatives collaborations support wellbeing growth local communities assets analysed sites facilities casa moda direct suppliers supply chain annual financial report consolidated sustainability report policies related climate change mitigation adaptation human sustainability policy harmony creation ref mdr policies casa moda defines philosophic framework reference casa moda affirming awareness significance current environmental challenges reiterating objective acting limiting generation negative impacts far possible furthermore order guarantee full observation company values point view reducing environmental impact improving energy efficiency casa moda environmental sustainability policy always act loyal guardians creation approach regarding policy please refer section mdr policies casa moda particular cited policies define commitments related mitigation climate change energy objective acting limiting generation negative impacts far possible reduction energy consumption greenhouse gas emissions cited policies currently define commitments related adaptation climate change annual financial report consolidated sustainability report environmental sustainability policy always act loyal guardians creation policy formalises casa moda commitment pay maximum attention balance giving taking relations creation order guarantee new generations live world ensure better possibilities today valorisation adoption regenerative approach regarding diversities creation commitment protecting creation italian artisan processing selected raw materials highest quality gracious use resources attempt minimise scraps waste using necessary production purposes adoption conduct preferences regarding consumption energy renewable sources healthy parsimonious use water resource importance recovery responsibility build territory hosts renovating restoring old pre existing buildings preserving land rather depleting maximum attention climate change constantly monitoring direct indirect emissions generated order reduce progressively policy identifies macro categories impacts generated directly well indirectly direct impacts relate energy consumption fuel consumption owned vehicles water withdrawals discharges associated mainly activities laundry department solomeo generated waste indirect impacts related purchase raw materials consumption energy water raw materials connected work performed external artisan laboratories including generation waste energy consumption franchising multi brand customers logistics practices farming breeding necessary production raw materials equally environmental risks also include physical transitional risks related climate change reputational risks deriving environmental factors relative opportunities mainly reflected terms reputational benefits greater attractiveness customers investors virtue positive external effects generated territories reference demonstrated attention towards reducing environmental impacts throughout life cycle particular reference supply chain casa moda committed monitoring alignment partners regulated policy possible direct suppliers requested implement checks suppliers therefore terms impact along entire value chain casa moda requests supply chain identify analyse prioritise environmental risks order adopt necessary measures time order prevent reduce expected impact please note environmental sustainability policy casa moda include invasive alien species direct impacts furthermore currently policies adopted regarding sustainability oceans seas policies address deforestation annual financial report consolidated sustainability report actions resources relation climate change policies casa moda continued various projects initiatives targeted towards constant com mitment reduce impact planet people particular construction continued company new production hub near solomeo according criteria necessary obtaining leed certification leadership energy environmental design construction project places particular attention selection utilised materials use renewable energy photovoltaic wellbeing people quality working conditions facilities envi ronmental landscape requalification territory initiative contributes towards reaching objectives defined group environmental policy ways act loyal guardians creation monitors effectiveness table overview climate change actions actions performed actions planned continuation construction new production hub near solomeo according guidelines leed certification continuation construction new production hub penne according guidelines leed certification start company carpooling service start use biodiesel hvo reduced emissions impact vehicles company fleet compatible use progressive replacement company fleet vehicles lower emissions impact continuation construction new production hub near solomeo according guidelines leed certification end work construction new production hub penne obtainment leed certification continuation construction new production hub gubbio according guidelines leed certification continuation company carpooling service use biodiesel hvo reduced emissions impact vehicles company fleet compatible use progressive replacement company fleet vehicles lower emissions impact metrics targets targets related climate change mitigation adaptation awareness current environmental trends commitment combat climate change puts aspect monitoring managing defining emissions reducing objectives central position orienting strategic choices actions implemented upcoming years according emissions approach longer consumption approach always commitment improving global climate integral part culture purpose indispensable principle adopted production model based high level manual skills craftsmanship guarantees low emissions plan reducing emissions reflects commitment objective contributing towards maintaining increase global warming within limit defined paris agreement implementation initiatives conditioned resource constraints leed voluntary certification programme applied type building commercial residential concerns application construction methodologies oriented towards sustainability building performance entire life cycle design construction based efficiency indicators environmental point view terms wellbeing people living working inside annual financial report consolidated sustainability report company defined objectives reducing greenhouse gas emissions ghg order manage cli mate related impacts risks opportunities compliance existing regulatory framework objec tives defined basis calculation carbon footprint performed compliance ghg protocol subsequently validated sbti addition described paragraph mdr targets casa moda reference made information validated targets presented casa moda foresee reduction ghg scopes emissions compared reduction ghg scope emissions compared reduction ghg scopes emissions compared achieving net zero outlined sbti net zero standard taking part business ambition net zero unfccc race zero campaign initiatives targets published sbti website constantly monitored casa moda also annual calculation group ghg inventory reduction targets foresee use offset credits exception net zero target residual emissions neutralised using removal credits energy consumption mix table summarises energy consumption highlighting different energy sources used table energy consumption mix unit measurement consumption fuel coal coal products mwh consumption fuel crude oil oil products mwh consumption fuel natural gas mwh consumption fuels non renewable sources mwh consumption electricity heat steam cooling fossil sources purchased acquired mwh total consumption energy fossil sources mwh fossil source share total energy consumption consumption nuclear sources mwh nuclear source share total energy consumption consumption fuels renewable sources including biomass also includes industrial urban waste biological origin biogas renewable hydrogen etc mwh consumption electricity heat steam cooling renewable sources purchased acquired mwh consumption self produced renewable energy without use fuels mwh total consumption energy renewable sources mwh renewable source share total energy consumption total energy consumption mwh data regarding consumption natural gas electricity heat steam cooling fossil fuels purchased acquired partially estimated furthermore consumption natural gas fuels expressed mwh following conversion made line defra conversion factors annual financial report consolidated sustainability report reference self produced energy please refer table table energy production renewable non renewable sources unit measurement energy production non renewable sources mwh energy production renewable sources mwh reference energetic intensity mwh mln table energy intensity total energy consumption relation net revenues unit measurement total energy consumption mwh net revenues mln energy intensity mwh mln gross scopes total ghg emissions ges emissions total calculated brunello cucinelli group attributable activities brunello cucinelli value chain expressed tons carbon dioxide equivalent gross scope direct ghg emissions ghg scope gross scope indirect ghg emissions associated consumption electricity purchased grid ghg scope gross scope indirect ghg emissions ghg scope related value chain upstream downstream brunello cucinelli table total ghg emissions unit measurement emissions total ghg emissions location based total ghg emissions market based energy intensity calculated ratio total energy consumption value revenues year euro million sector high climatic impact used determining energy intensity one related retail trade sector revenues correspond reported note revenues notes consolidated financial statements possible limitations indicated explicitly text calculation include biogenic emissions annual financial report consolidated sustainability report scope gross ghg emissions ghg scope direct emissions ghg scope derive stationary combustion mobile combustion process emis sions fugitive emissions regards scope emissions preliminary data used calculation correspond indicated maintenance reports air conditioners part group assets previously described energy consumptions scope ghg emissions covered emission share exchange regulatory systems ets emission trading scheme table scope total ges emissions unit measurement emissions emissions totals scope gross ghg emissions ghg scope indirect emissions ghg scope derive energy consumptions facilities coming external supply electricity calculation indirect emissions electricity consumption ghg scope performed using location based approach well market based approach location based method calculates emissions deriving consumption electricity coming grid applying average national emissions factors production electricity market based method considers renewable purchased electricity following approach emis sions factor equal zero applied share renewable energy purchased guarantees origin certificates remaining purchased energy calculated using emissions factor considers residual market mix reflecting share energy produced non renewable sources primary data used calculation corresponds previously reported consumption electricity esrs energy consumption mix brunello cucinelli group acquired guarantees origin consumption deriving production commercial operations italy foreign locations purchase instruments made possible avoid approx tco ghg emissions generated group following table shows scope emissions according location based market based methodology table scope total ges emissions unit measurement emissions emissions purchase electricity location based purchase electricity market based reported ghg emissions related entire perimeter companies controlled operatively brunello cucinelli corresponds group consolidated scope emission factors methodology scope scope ghg emissions calculated following standards requirements guidelines provided ghg protocol corporate standard version following emission factors used calculating emissions scope emission factors supplied department environment food rural affairs defra furthermore emissions factors supplied ispra italian institute environmental protection research used annual financial report consolidated sustainability report scope location based emission factors supplied terna specific case calculations related usa values values supplied green used scope market based emission factors supplied terna association issuing bodies aib specific case calculations related usa values values supplied green used scope gross ghg emissions ghg scope scope indirect ghg emissions amounted tonnes represent predominant share group overall carbon footprint majority emissions attributed three main categories purchase goods services capital goods transport distribution materials products represent scope emissions regards group scope emissions year reference additional category included emissions calculation capital goods reasons comparisons historical data possible disclosure table scope total ges emissions emissions purchased goods services capital goods energy consumption included scope scope emissions transport distribution purchased goods waste generated operations business travel employee commuting transport distribution sold goods franchises multibrand investments totals scope ghg emissions calculated following standards requirements guidelines provided ghg protocol corporate standard version categories apply business activities casa moda categories material group annual financial report consolidated sustainability report calculation methodologies main estimates limitations models sources emission factors used reported table methodologies calculating scope ges emissions calculation method emission factors purchased goods services multiplication quantities purchased material emission factor selected ecoinvent database emissions leather deriving animal breeding hoc emission factor selected technical report united nations organisation industrial development emissions small craft enterprises energy consumption data multiplied defra mattm aib emission factors taking incidence brunello cucinelli revenues account small craft enterprises provide data emissions reproportioned based total number employees year reporting greenhouse gas ghg emissions related purchase services total expense multiplied epa emission factors defra department environmental food rural affairs epa united states environmental protection agency association issuing bodies aib mattm capital goods value related ghg emissions associated capital goods calculated based values following financial statement items land buildings leasehold improvements plant machinery industrial commercial equipment historic collection assets fixed assets construction payments account values converted usd multiplied corresponding eps emission factors obtaining final value tonnes epa united states environmental protection agency annual financial report consolidated sustainability report energy consumption included scope scope emissions generation fuel multiplication fuel consumption defra emission factors related pre combustion processes generation electricity multiplication electricity consumption national defra emission factors related pre combustion processes connected fuel used generation electricity electricity transmission distribution losses multiplication electricity consumption defra emission factors related transmission distribution losses occur national grid defra department environmental food rural affairs terna association issuing bodies aib green mattm transport distribution purchased goods emissions data collected directly suppliers calculated based information shared directly carriers provide data emissions reproportioned based weight transported year reporting defra department environmental food rural affairs waste generated operations multiplication quantity waste defra emission factors related type waste disposal method defra department environmental food rural affairs business travel plane train multiplication distance travelled specific defra emission factors based travel information provided travel companies internal management systems private jet multiplication distance travelled specific emission factors provided defra car multiplication distance travelled defra emission factors defra department environmental food rural affairs employee commuting multiplication travelled days work site year defra emission factors per type vehicle means transport utilised commuter data collected using specific questionnaire defra department environmental food rural affairs annual financial report consolidated sustainability report transport distribution sold goods emissions data collected directly suppliers calculated based information shared directly carriers provide data emissions reproportioned based weight transported year reporting defra department environmental food rural affairs franchises multibrand multiplication energy consumption index reference surface area number days open emission factors follows emissions generated consumption electricity calculated using green aib emission factors emissions generated consumption natural gas calculated using emission factors listed mattm additional emissions generated types fuel calculated using defra emission factors terna association issuing bodies aib green mattm investments energy consumption fuel consumption multiplied respective emission factors percentage corresponding shareholding total emissions attributed brunello cucinelli defra department environmental food rural affairs association issuing bodies aib mattm annual financial report consolidated sustainability report reference emissions intensity tco mln location based tco mln mar ket based table emissions intensity total emissions relation net revenues unit measurement total ghg emissions location based tco total ghg emissions market based tco net revenues mln intensity location based tco mln intensity market based tco mln emissions intensity calculated ratio total emissions direct indirect value revenues year euro million revenues correspond reported note revenues notes consolidated financial statements annual financial report consolidated sustainability report pollution management impacts risks opportunities esrs iro description processes identify assess material pollution related impacts risks opportunities casa moda carries activities headquarters solomeo locations different countries operates comprised mainly boutiques processes house laundry located solomeo use limited carefully managed quantity chemicals regards direct suppliers mainly located italy specifically production garments casa moda entrusted artisan laboratories process adopted identifying evaluating impacts risks opportunities related described detail esrs iro thanks process described therein casa moda examined connections identified impacts dependencies risks opportunities result impacts complete table double materiality results instead present section sbm material impacts risks opportunities interaction strategy business model esrs table list impacts risks opportunities relevant topic pollution description potential actual impact value chain time period sub topic sub sub topic reference negative impacts water pollution due inadequate management water discharges small craft enterprises suppliers potential upstream medium term water pollution pollution caused use chemicals particular hazardous ones along supply chain including company potential upstream operations medium term substances concern risks compromise image reputation brunello cucinelli brand due supplier small craft enterprise activities violate applicable standards additional commitments taken group terms pollution medium term water pollution substances concern policies related pollution concrete commitments made casa moda regarding pollution divided following policies environmental sustainability policy always act loyal guardians creation human sus tainability policy harmony creation please refer section mdr policies casa moda information particular cited policies define commitments related water pollution constant monitoring use chemicals proceeding necessary point view gradual phase considered potentially harm ful collaboration direct suppliers assets analysed sites facilities casa moda direct suppliers supply chain annual financial report consolidated sustainability report particular reference pollution company activities present relevant risks regarding accidents emergency situations able cause significant harm related pollution regards activities value chain stipulating contract suppliers company shares framework agreement processes remediate negative impacts channels value chain work ers raise concerns contains rules conduct must comply including related observance current laws regulations pollution actions resources related pollution environmental provisions require working respect creation adopting behaviour takes care protects environment observance environmental regulations standards provided applicable laws line company strategy continuation previous years casa moda shared following regulations standards suppliers contract phase standards regulate use fabric tannery industry certain materials substances protection health people environment reach regulation european union use chemical substances californian law proposition chinese standards restricted substances list rsl defined company shared suppliers starting continuously updated rsl aims regulate progressively reduce use chemical sub stances used processing materials may harmful human health environment thus ensure greater safety final product directive called general product safety directive compliance standards controlling fire risk mechanical risk particular concern garments boys girls collections metrics targets targets related pollution company intention expand periodic preventive checks raw materials ensure compliance product safety standards respect use chemicals considered potentially harmful therefore specifically regulated addition casa moda performs testing activities check products comply current regulations company undertakes guarantee compliance rules conduct code ethics also sup pliers raw materials small craft enterprises required sign stipulating agreement furthermore also framework agreement must signed defines rules behaviour commitments duties respected annual financial report consolidated sustainability report pollution air water soil solomeo site subject possession single environmental authorisation water air matrices fact due business activities carried site could potentially involved release polluting substances specific reference two matrices purpose casa moda monitors activities analyses pollutants emitted solomeo site annual basis analyses carried certify polluting substances released air pollutants released water exceed applicable threshold value indicated annex regulation ground included matrices potentially affected site activities substances concern substances high concern line business activities conducted casa moda substances concern leave casa moda systems form emissions products parts products services reference supply chain upon stipulation framework agreement direct suppliers group commit observing rsl shared casa moda prepared line current regulations management substances concern high concern annual financial report consolidated sustainability report water marine resources management impacts risks opportunities esrs iro description processes identify assess material water marine resources lated impacts risks opportunities concerns water withdrawals impact limited operation laundry solomeo headquar ters located water stressed area reference laundry activities water drawn wells owned company specifically recovery storage rain water concerns water consumption addition laundry activities also consumption water civil use offices shops group specifically regard italy water withdrawn solomeo site remaining offices shops country comes public waterworks reference water discharges total amount water including discharges associated laundry activities flows public sewers process adopted identifying evaluating impacts risks opportunities related described detail esrs iro thanks process described therein casa moda examined connections identified impacts dependencies risks opportunities result impacts complete table double materiality results instead present section sbm material impacts risks opportunities interaction strategy business model esrs table list impacts risks opportunities relevant topic water marine resources description potential actual impact value chain time period sub topic sub sub topic reference negative impacts insufficient consumption water resource along supply chain including company potential upstream operations medium term water consumption inefficient management water withdrawals particular water stressed areas along supply chain including company potential upstream operations medium term water withdrawals water pollution due inadequate management water discharges small craft enterprises suppliers potential upstream medium term water discharges risks compromise image reputation brunello cucinelli brand due supplier small craft enterprise activities violate applicable standards additional commitments taken group terms consumption water resources medium term water consumption assets analysed sites facilities casa moda direct suppliers supply chain annual financial report consolidated sustainability report policies related water marine resources please refer section mdr policies casa moda information concerning environ mental sustainability policy always act loyal guardians creation human sustainability policy harmony creation define concrete commitments casa moda terms water marine resources particular cited policies specify commitments related responsible economical use water well water withdrawals particular reference connected laundry activities currently cited policies specific information concerning water withdrawals actions resources related water marine resources aware importance water resources group pays great attention management ensure increas ingly responsible consumption second consecutive year row casa moda publicly reported commitments tained results regarding topic water resources questionnaire climate disclosure project cdp water security year reference scoring confirmed construction new group production sites follows guidelines leed standard requires particular increasingly responsible efficient consumption management water resources furthermore solomeo site subject possession single environmental authorisation casa moda contract company specialised chemical biological water analyses per forms checks frequency higher required regulation guaranteeing constant mon itoring furthermore periodic maintenance carried reverse osmosis system used solomeo site water recovery metrics targets targets related water marine resources impacts water matrix limited operation laundry solomeo headquarters civil use company committed observing legally mandatory parameters purpose chem ical biological sampling analysis waste water performed periodically order check compliance legal limits required legislative decree water consumption following table shows group water consumption data total water consumption annual financial report consolidated sustainability report table water consumption unit measurement total water consumption water consumption areas water risk water consumption areas high water stress water volume recycled water reused water total water volume total volume stored water changes stored water reference water intensity mln table water intensity total water consumption relation net revenues unit measurement total water consumption net revenues mln water intensity mln water consumption data estimated shops commercial offices abroad sites italy note order ensure truthful representation water withdrawals locations consumption litres per person per day considered components indicated water consumption represent total shown include share related consumption non water stressed areas reference made water drawn well water intensity calculated ratio total water consumption value revenues year euro million revenues correspond reported note revenues notes consolidated financial statements annual financial report consolidated sustainability report biodiversity ecosystems strategy transition plan consideration biodiversity ecosystems strategy business model resilience analysis casa moda included impacts identified group including related biodiversity time periods taken consideration analysis short term moment process involving topics company stakeholders started information description resilience analysis strategy business model casa moda please refer section esrs sbm material impacts risks opportunities interaction strategy business model related topic climate change esrs sbm material impacts risks opportunities interaction strategy business model company identified sites located near biodiversity sensitive areas negatively affecting specifically italian production sites located areas classified according natura network protected particular reference solomeo site casa moda contributed years progressive requalification surrounding territory well creation various parks site nearby contribute towards preservation continuous renewal local biodiversity nature activities connected operations artisan industrial generate rel evant environmental impacts natural habitats soil desertification degradation sealing endangered species regarding activities carried along upstream value chain potential impacts identified related soil degradation sealing desertification hand casa moda committed actively contributing towards ambitious project himala yan regenerative fashion living lab aimed restoring degraded landscapes recovering traditional artisan skills areas western eastern himalayas facing global challenges related climate change loss biodiversity order support local cashmere cotton silk economies informa tion please refer chapter affected communities management impacts risks opportunities esrs iro description processes identify assess material biodiversity ecosystem related impacts risks opportunities process adopted identifying evaluating impacts risks opportunities related described detail esrs iro thanks process described therein casa moda examined connections identified impacts dependencies risks opportunities result impacts complete table double materiality results instead present section sbm material impacts risks opportunities interaction strategy business model esrs annual financial report consolidated sustainability report table list impacts risks opportunities relevant topic biodiversity ecosystems description potential actual impact value chain time period sub topic sub sub topic reference positive impacts positive impacts local biodiversity conditions territories himalayas regenerative agriculture project himalayan regenerative fashion living lab ongoing actual upstream medium term impacts dependencies terms ecosystem services negative impacts negative impacts biodiversity resulting cultivation breeding deforestation practices production cellulose viscose obtained necessary production raw materials used collections potential upstream long term soil degradation desertification soil sealing opportunity reputational benefits greater attractiveness towards investors means positive external effects generated regenerative agriculture project himalayan regenerative fashion living lab whose significance international upstream medium term impacts dependencies terms ecosystem services impacts related biodiversity taken consideration purpose analysing resilience strategy business model furthermore regard analysis resilience climate change considered phenomenon related biodiversity threats survival species casa moda depends strategic raw materials light available information including classification among non protected areas according natura network company concluded currently measures mitigating biodiversity required policies related biodiversity ecosystems full awareness operations generate direct indirect environmental impacts governance casa moda requires clear precise identification starting point controlling monitoring also requires intervention necessary actions improvement paying particular attention key concept impact identification priority areas impact guided identification relevant risks opportunities reference environmental matrices significant casa moda according approach concerns analysis entire value chain company committed reducing consumption soil much possible building projects carried according principle respect land occupied valorisation surrounding peripheries according ideal pleasant peripheries fact real estate choices made company always careful oriented towards land clearance covery preexisting buildings full respect local natural urban territory implementing building solutions reflect genius loci impact also aesthetic point view information environmental impacts activities casa moda please refer paragraph esrs iro description processes identify assess material impacts risks opportunities annual financial report consolidated sustainability report addition policy guides strategy casa moda concerns topics connected growing traceability fabric products order provide information customers design fabrication production products collected contribution value chain fashion industry please refer section mdr policies casa moda information concerning environ mental sustainability policy always act loyal guardians creation human sustainability policy harmony creation define concrete commitments casa moda terms water marine resources currently cited policies contain references topics soil desertification sealing actions resources related biodiversity ecosystems way understanding environmental sustainability casa moda expressed first con scious protection common good inestimable value represented planet richness biodiversity also particular attention maximum possible respect resources natural cycles company faces potential impacts deriving supply raw materials starting form design phase also committed contributing towards continuous internal increase awareness knowledge biodiversity purpose collaborates local associations communities national interna tional level also committed implementing regenerative agricultural practices use made biodiversity compensation measures particular measures implement terms biodiversity ecosystems however casa moda established definition policy dedicated exclusively topic biodi versity metrics targets targets related biodiversity ecosystems currently targets related biodiversity ecosystems defined within dedicated policy annual financial report consolidated sustainability report resource use circular economy management impacts risks opportunities esrs iro description processes identify assess material resource use circular econ omy related impacts risks opportunities process adopted identifying evaluating impacts risks opportunities related described detail esrs iro thanks process described therein casa moda examined connections identified impacts dependencies risks opportunities result impacts complete table double materiality results instead present section sbm material impacts risks opportunities interaction strategy business model esrs table list impacts risks opportunities relevant topic resource use circular economy description potential actual impact value chain time period sub topic sub sub topic reference positive impacts implementation solutions promote circularity particular reference longevity garments repair recovery production scraps actual upstream downstream long term inflows resources including use resources outflows resources connected products services negative impacts negative impacts caused inefficient management waste along supply chain including company terms excessive production poor attention recovery recycling operations potential upstream operations long term waste risks compromise image reputation brunello cucinelli brand due supplier small craft enterprise activities violate applicable standards additional commitments taken group terms pollution medium term waste policies related resource use circular economy garments produced casa moda designed based concept longevity design line concept garments produced transcend time seasons made last long possible time passed future generations placing importance value appeal safeguarding make possible group provides customers exclusive free charge repair service offered globally without time constraint objective continuing ensure longevity garments time assets analysed sites facilities casa moda direct suppliers supply chain annual financial report consolidated sustainability report concerns production products mainly natural fibres used cashmere wool cotton linen furthermore terms renewable resources company promoting progressive transition towards electrification supply electricity renewable sources casa moda committed ensuring high degree care continuous proposals solutions low environmental impact regarding packaging internal logistics well sales use materials certified origin recycled materials furthermore constantly monitors use chemicals gradually phasing necessary considered potentially hazardous collaboration raw material suppliers furthermore group committed obtaining growing traceability fabric products objective providing customers design fabrication production products collected con tribution entire value chain fashion industry finally regards waste group prioritises recovery material energy respect disposal prac tices also along value chain please refer section mdr policies casa moda information two policies formalise commitment casa moda environmental sustainability policy always act loyal guardians creation human sustainability policy harmony creation particular cited policies define commitments regarding supply consumption raw materials maximisation value resources management waste progressive abandonment virgin resources increase recycled resources use renewable resources actions resources related resource use circular economy careful selection highest quality raw materials supply based solid relationship trust breeders suppliers scrupulous attention phases producing garments also key elements obtaining efficient use resources order avoid waste obtain highest quality durability brunello cucinelli products purpose casa moda manufacturers products extremely close collaboration suppliers raw materials artisan laboratories aims define shared path improvement guarantee highest environmental standards addition assessing performance suppliers terms sustainability collaborates projects recycling production scraps order reduce waste specifically reference scraps generated processing fabric year reference project recovery production scraps continued involves small crafts enterprises engaged cutting complete cycle phases vision transformed actions described table targeted mainly towards operations upstream value chain italy phase production purchase internal logistics impacts suppliers wholesale retail customers end customers business partners logistics companies particular company started path calculating environmental impact strategic raw materials specifically year reference ten suppliers raw materials involved intention acquiring specific information concerning materials currently make collections casa moda annual financial report consolidated sustainability report implemented future actions contribute towards reaching targets defined group environmental policy table overview actions regarding use resources circular economy actions performed actions planned garments repaired continuation project recovery production scraps increase fabric packaging deriving processing waste start testing processes production paper packaging deriving processing scraps calculation environmental impact strategic raw materials cashmere cotton leather involvement ten suppliers continuation worldwide free garment repair service continuation project recovery production scraps study new types packaging deriving processing scraps packaging hung garments purchase trunks made fully recycled paper cardboard packaging semi manufactured products testing prototypes high density recyclable polystyrene boxes useful life years detailed study main product certifications present market related raw materials strategic casa moda metrics targets targets related resource use circular economy line company philosophy value appeal safeguarding reuse company activities production product based company defined targets connected manage ment waste flow resources inflows outflows managing impacts risks opportunities related resource use circular economy please refer section mdr targets casa moda information resource inflows high quality brunello cucinelli products intrinsically connected careful selection materials main attributable two macro categories raw materials used production garments yarns fabrics leathers composition accessories chain zip zip metre buttons automatic ribbons labels buckles rivets metal material packaging addition materials company purchases stones metals jewellery reference raw materials used men women boys girls collections yarns clude cashmere finest wools mohair camel lightweight wool linen silk cotton also fabrics denim leathers materials mainly used packaging paper cardboard plastic biological origin recycled paper hangers wood fabric fabric cotton containers also used better storage certain products shoes bags accessories also designed later reuse retail customer implementation initiatives conditioned resource constraints ecological thresholds taken consideration defining targets cascade principle apply group resource inflows annual financial report consolidated sustainability report name sustainability gifts shipped via commerce channel opted box produced fsc certified sources inner box designed kept reused time thanks also self assem bling structure allows flattened stored little space furthermore bags used packaging longer made virgin plastic fossil origin obtained biomass sources compostable ready wear collection integrated eyewear fragrances collections eyeglasses perfumes purchased produced license agreements leading italian partners present inter nationally following table shows inflow materials products technical biological consider biolog ical natural origin technical able enter biosphere natural origin include cashmere wool cotton leather reference collections paper cardboard packaging cotton fabric packaging linen clay lifestyle technical ones include example polyester polyamide reference collections polyester brass composition accessories plastic packaging polyester fabric packaging table inflows materials products materials unit measurement technical natural origin biological leather yarn fabrics composition accessories total products unit measurement technical natural origin biological packaging fabric packaging lifestyle stones metals total products certification recycled origin unit measurement total recycled fsc certified recycled origin packaging fabric packaging possible trace following quantity material technical biological back origin possible trace following quantity material technical biological back origin possible trace following quantity material technical biological back origin possible trace following quantity material technical biological back origin reference made paper cardboard packaging see previous footnote annual financial report consolidated sustainability report data shown derives internal management systems based direct measurements furthermore regard resource inflows include buildings used headquarters production logistics equipment plants machinery used production logistics shop furnishings resource outflows following tables provide detailed information regarding resource outflows including waste connected relevant impacts risks opportunities data shown derives internal management systems based direct measurements table percentage recyclable content packaging unit measurement paper cardboard plastic cotton fabric packaging polyester fabric packaging table total quantity waste produced operations unit measurement total quantity produced waste hazardous waste diverted disposal hazardous waste directed disposal total hazardous waste non hazardous waste diverted disposal non hazardous waste directed disposal total quantity non recycled waste percentage non recycled waste information found consolidated financial statements ref property plant equipment annual financial report consolidated sustainability report table waste produced type method disposal unit measurement diverted disposal directed disposal total non hazardous waste paper cardboard components removed discarded equipment different item toner muds produced biological treatment industrial waste waters different indicated item dryer filters paper cardboard packaging wooden packaging mixed material packaging plastic packaging wood edible oils greases fabric products screening residues waste processed textile fibres aqueous liquid waste mentioned item bulky waste urban waste otherwise specified spent printer cartridges hazardous waste sludge solid waste containing solvents packaging containing residues hazardous substances metal packaging contaminated absorbent materials materials containing asbestos mineral motor oils fluorescent tubes waste management casa moda takes place compliance single environmental act legislative decree reference possible provide detailed quantities regarding various recovery operations preparation reuse recycling recovery operations waste subjected annual financial report consolidated sustainability report european taxonomy regulation taxonomy regulation hereinafter taxonomy regulation estab lishes uniform system classification economic activities considered environmentally sustainable published june official journal european union came force july regulatory tool issued european commission aims promote implementation european green deal help europe achieve climate neutrality directing investments towards activities projects environmentally sustainable capable significantly contributing achievement envi ronmental targets set european union regulation directed towards companies obligated prepare sustainability reporting according new directive known corporate sustainability reporting directive csrd implemented italy legislative decree companies required report percentage turnover share capital expenditure capex share operating expenditure opex associated economic activities considered eligible according climate delegated act since also according environmental delegated act furthermore continuation previous years necessary evaluate alignment taxonomy first two targets related climate change mitigation ccm adaptation climate change cca starting reporting year mandatory perform alignment analysis also four targets defined environmental delegated act sustainable use protection water marine resources wtr transition circular economy pollution prevention control ppc protection restoration biodiversity ecosystems bio delegated acts provide criteria defining certain economic activity contributes substantially pursuit one six targets defined acts cause significant harm target particular agreement regulation considered ecosustainable therefore aligned activity must satisfy requirements well significantly contribute least one six environ mental targets defined regulation activity considered aligned fact following criteria must met meet substantial contribution criteria defined regulation type activity identified scientific basis specific objectives criteria describe conditions met order contribute substantially achievement objectives significant harm dnsh objectives significantly impacted respect minimum social safeguards recognising importance human rights international standards regulation final version adopted june entered force january delegated regulation comple mentary delegated act adopted july entering force january commission amended climate delegated act introducing activities related technical screening criteria energy generation nuclear natural gas delegated regulation published made number amendments climate delegated act terms new activities terms technical screening criteria regulation adopted june entering force january annual financial report consolidated sustainability report criterion substantial contribution dnsh criteria defined according high level classification technical screening criteria eligibility alignment analysis casa moda line carried previous year year reporting brunello cucinelli group updated analysis economic activities order assess possible eligibility six envi ronmental objectives taxonomy analysis conducted emerged revenue lines could considered eligible respect climate delegated act environmental delegated act reference capital expenditure annex delegated regulation par instead related purchase products deriving eligible taxonomy aligned economic activities economic activities identified assessed permissible respect targets climate change mitigation sustainable use protection water marine resources transition circular economy pollution prevention control regard target mitigation climate change following eligible activities identified transport motorbikes passenger cars light commercial vehicles reference purchase hire vehicles infrastructure personal mobility cycle logistics reference construction pavement pedestrians ellera corciano construction new buildings reference construction new buildings gubbio penne renovation existing buildings reference refurbishment shops offices buildings installation maintenance repair energy efficiency equipment reference implementation thermal insulation systems buildings installation maintenance efficiency ventilation air con ditioning systems replacement traditional lighting systems lamps smart lighting systems led lamps installation maintenance repair technologies renewable energies reference installa tion photovoltaic plant pinturicchio acquisition ownership buildings reference rental buildings eligible activity identified respect sustainable use protection water marine resources municipal wastewater treatment reference construction sewers drain pipes regard pollution prevention control following eligible activity also identified remediation contaminated sites areas reference remediation asbestos new facility poppi finally following eligible activities identified respect transition circular economy construction new buildings reference construction new buildings gubbio penne renovation existing buildings reference refurbishment shops offices buildings particular activities listed points climate delegated act well economic activities listed delegated acts adopted pursuant articles regulation related purchase goods economic activities taxono aligned individual measures enable target activities achieve low carbon emissions greenhouse gas savings provided measures implemented made operational within months annual financial report consolidated sustainability report demolition buildings structures reference demolition buildings pinturicchio provision data driven solutions software reference purchase information sys tems managing orders shipments collecting processing data related equipment products infrastructure furthermore compliance provisions climate delegated act environmental delegated act brunello cucinelli group subsequently evaluated alignment eligible economic activities targets climate change mitigation transition circular economy sustainable use protection water marine resources pollution prevention control verifying compliance following criteria criteria substantial contribution criteria significant harm dnsh minimum social safeguards substantial contribution purposes assessing alignment economic activities considered eligible respect targets identified compliance substantial contribution criteria verified activity ccm transport motorbikes passenger cars light commercial vehicles following analysis conducted group purchase rental vehicles belonging category intended transport persons maximum capacity seats intended transport goods maximum mass exceeding evaluated aligned criterion substantial contribution satisfy limits specific emissions activity ccm infrastructure personal mobility cycle logistics following analysis conducted group determined construction pavement pedestrians activity aligned criterion substantial contribution activity ccm construction new buildings following analysis conducted group activity constructing new buildings gubbio penne evaluated aligned criterion substantial contribution following conservative prudent approach absence specific information concerning reduction primary energy requirement respect current regulations activity ccm renovation existing buildings following analysis conducted group activity restructuring buildings offices shops evaluated aligned criterion substantial contribution following conservative prudent proach absence specific information concerning type restructuring performed capacity promote reduction primary energy requirement articles regulation annual financial report consolidated sustainability report activity ccm installation maintenance repair energy efficiency equipment following analysis conducted group part activities aimed energy efficiency buildings evaluated third parties aligned criterion substantial contribution points mainly concerns replacement traditional lighting systems lamps smart lighting systems led lamps well work improve energy performance buildings benefit greater thermal insulation well installation replacement air conditioning climate control systems efficient technologies analysis documentation received relation remaining part initiative considered eligible activity following conservative prudential approach absence specific information necessary evaluating complete alignment activity criterion sub stantial contribution activity evaluated non aligned activity ccm installation maintenance repair technologies renewable energies following analysis conducted group activity performed related installation pho tovoltaic panels penne site pinturicchio evaluated aligned criterion substantial contribution activity ccm acquisition ownership buildings following analysis conducted group relation purchase rental real estate following con servative prudential approach absence sufficient information regarding year construction buildings relevant energy class activity considered non aligned activity ppc remediation contaminates sites areas following analysis conducted group remediation asbestos evaluated aligned criterion substantial contribution absence specific information regarding surveys performed preparation intervention management waste produced generated remediation activity activity construction new buildings following analysis conducted group activities related construction new buildings considered aligned criterion substantial contribution following conservative prudential proach sufficient information available concerning handling waste generated construc tions quantity virgin raw materials used global warming potential gwp life cycle building construction activity renovation existing buildings following analysis conducted group concerning restructuring buildings sites offices group shops following conservative prudential approach absence sufficient evi dence regarding type disposal waste produced restructuring process type materials used activity considered non aligned activity demolition buildings structures following analysis conducted group concerning demolition buildings pinturicchio gubbio following conservative prudential approach absence sufficient evidence regarding type disposal waste produced demolition process activity considered non aligned annual financial report consolidated sustainability report activity provision data driven solutions software following analysis conducted group concerning purchase information systems remote collection processing data related equipment products infrastructure activity considered aligned activity wtr treatment urban waste water following analysis conducted group concerning creation drain pipes buildings pin turicchio carrara construction sewers following conservative prudential approach absence sufficient evidence regarding type work performed technical specifications pipes activity considered non aligned significant harm dnsh eligible economic activity respect targets identified brunello cucinelli group sub sequently assessed compliance significant harm dnsh criteria order ensure economic activities cause significant harm environmental objectives activity ccm transport motorbikes passenger cars light commercial vehicles reference activity following analyses carried adaptation climate change every activity must satisfy requirements outlined appendix climate delegated act require analysis identification assessment vulnerability physical climate risks acute chronic nature listed section appendix affect activity according specific procedures defined delegated act including creation plan aptation group performed analysis climate risk physical transitional facilities production logistics sites well supply chain however plan adaptation identified risks defined therefore group considers activity non aligned transition circular economy relation activity waste hierarchy compliant waste management system must place fleet use maintenance end life phases includes recycling reusing batteries electronic components especially essential raw materials well making sure vehicles reusable recyclable least weight reusable recoverable least weight respectively according established criteria defined annex directive european parliament council relation type proval motor vehicles regard reusability recyclability recoverability group considers activity aligned pollution prevention control activity requires vehicles comply certain parameters regarding conformity type approval emission efficiency according conservative prudential approach absence sufficient evidence allow full assessment compliance criterion group considers activity non aligned activity ccm infrastructure personal mobility cycle logistics reference activity following analyses carried adaptation climate change every activity must satisfy requirements outlined appendix climate delegated act require analysis identification assessment vulnerability physical climate risks acute chronic nature listed section appendix affect activity according specific procedures defined delegated act including creation plan article regulation annual financial report consolidated sustainability report aptation group performed analysis climate risk physical transitional facilities production logistics sites well supply chain however plan adaptation identified risks defined therefore group considers activity non aligned sustainable use protection water marine resources mandatory activity meet criteria set appendix climate delegated act requires analysis risks environ mental degradation associated preservation water quality prevention water stress environmental impact assessment accordance directive european parliament council according conservative prudential approach absence sufficient evidence allow full assessment compliance criterion group considers activity non aligned transition circular economy relation activity order promote circularity essential precautions taken building phase restrict amount non hazardous construction demolition waste generated site minimum waste directed towards recycling recovery processes believed date pavement construction cannot considered line criteria pollution prevention reduction measures must taken construction phases reduce noise dust pollutant emissions therefore considered criterion met therefore activity considered aligned protection restoration biodiversity ecosystems activity must adhere standards outlined appendix climate delegated act include conducting environmental impact assessment eia putting place required compensation mitigation measures safeguard environment according conservative prudential approach regards investments made concerning con struction pavement pedestrians absence sufficient elements allow complete assessment compliance criterion group considers activity non aligned activity ccm construction new buildings adaptation climate change every activity must satisfy requirements outlined appendix climate delegated act require analysis identification assessment vulnerability physical climate risks acute chronic nature listed section appendix affect activity according specific procedures defined delegated act including creation plan aptation group performed analysis climate risk physical transitional facilities production logistics sites well supply chain however plan adaptation identified risks defined therefore group considers activity non aligned sustainable use protection water marine resources order fulfil requirements water con sumption activity hydraulic equipment must installed ensure flows discharges minimise waste water resources believed date technical information sufficient group cautiously consider construction activities line criteria transition circular economy relation activity order promote circularity essential precautions taken building phase restrict amount non hazardous construction demolition waste generated site minimum waste directed towards recycling recovery processes concerns construction activities performed believed activities cannot considered aligned criteria pollution prevention control activity requires construction activity carried materials components used activities limited content formaldehyde volatile directive european parliament council dated december assessment effects certain public private projects environment dated january annual financial report consolidated sustainability report organic carcinogenic compounds contain chemicals listed appendix climate delegated act accordance conservative prudential approach despite fact conducting activities construction new buildings group committed complying regulations force concerning substances used absence sufficient evidence substantiate precise analyses required criterion group considers activity non aligned protection restoration biodiversity ecosystems activity requires compliance criteria stated appendix climate delegated act include conducting environmental impact sessment eia putting place required compensation mitigating measures relation investments made connected construction new buildings penne gubbio adopting conservative prudential approach absence sufficient information would permit complete assessment criterion met activity considered non aligned activity ccm renovation existing buildings reference activity following analyses carried adaptation climate change every activity must satisfy requirements outlined appendix climate delegated act require analysis identification assessment vulnerability physical climate risks acute chronic nature listed section appendix affect activity according specific procedures defined delegated act including creation plan aptation group performed analysis climate risk physical transitional facilities production logistics sites well supply chain however plan adaptation identified risks defined therefore group considers activity non aligned sustainable use protection water marine resources order fulfil requirements water con sumption activity hydraulic equipment must installed ensure flows discharges minimise waste water resources believed date technical information sufficient group cautiously consider shop building renovation activities line criteria transition circular economy relation activity order promote circularity essential precautions taken reconstruction phase restrict amount non hazardous construction demolition waste generated site minimum waste directed towards recycling recovery processes believed date sufficient information consider activities restructuring buildings shops aligned criterion pollution prevention control necessary materials used restructuring process satis criteria stated appendix climate delegated act regarding use types chemical pollutants regard investments made concerning restructuring shops buildings absence suitable plan adaptation identified risks group considers activity non aligned activity ccm installation maintenance repair energy efficiency equipment reference activity following analyses carried adaptation climate change every activity must satisfy requirements outlined appendix climate delegated act require analysis identification assessment vulnerability physical climate risks acute chronic nature listed section appendix affect activity according specific procedures defined delegated act including creation plan aptation group performed analysis climate risk physical transitional facilities production logistics sites well supply chain however plan adaptation identified risks defined therefore group considers activity non aligned pollution prevention control regards activity criteria set appendix climate delegated act require activity involve manufacture placing market use certain annual financial report consolidated sustainability report types chemical pollutants given group commitment carrying business activities respecting current regulations substances used according specified current regulations requirement material suppliers observe reach regulation activity considered aligned activity ccm installation maintenance repair technologies renewable energies reference activity following analyses carried adaptation climate change every activity must satisfy requirements outlined appendix climate delegated act require analysis identification assessment vulnerability physical climate risks acute chronic nature listed section appendix affect activity according specific procedures defined delegated act including creation plan aptation group performed analysis climate risk physical transitional facilities production logistics sites well supply chain however plan adaptation identified risks defined therefore group considers activity non aligned activity ccm acquisition ownership buildings rental buildings adaptation climate change every activity must satisfy requirements outlined appendix climate delegated act require analysis identification assessment vulnerability physical climate risks acute chronic nature listed section appendix affect activity according specific procedures defined delegated act including creation plan aptation group performed analysis climate risk physical transitional facilities production logistics sites well supply chain however plan adaptation identified risks defined therefore group considers activity non aligned respect analysis alignment target pollution prevention control analyses carried activity assessed eligible indicated activity ppc remediation contaminated sites areas climate change mitigation regarding activity necessary remediation activities must involve degradation territories high levels carbon remediation plan includes measures target towards reducing scope scop greenhouse gas emissions connected remediation process concerning investments made connected remediation asbestos adopting conservative prudential approach absence sufficient evidence substantiate precise analyses required criterion activity considered non aligned adaptation climate change every activity must satisfy requirements outlined appendix climate delegated act require analysis identification assessment vulnerability physical climate risks acute chronic nature listed section appendix affect activity according specific procedures defined delegated act including creation plan aptation group performed analysis climate risk physical transitional facilities production logistics sites well supply chain however plan adaptation identified risks defined therefore group considers activity non aligned sustainable use protection water marine resources relation activity necessary perform analysis risks environmental degradation related preservation water quality prevention water stress based activities carried believed date technical information sufficient group cautiously consider remediation activities line criteria transition circular economy activity requires remediation process measures plemented limiting production waste support circularity least waste annual financial report consolidated sustainability report rected towards recycling recovery processes considering investment remediation activity carried believed activity cannot considered aligned criteria protection restoration biodiversity ecosystems requires compliance criteria stated appendix climate delegated act include conducting environmental impact assessment eia putting place required compensation mitigating measures relation investment made connected remediation asbestos adopting conservative prudential approach absence sufficient information would permit complete assessment criterion met activity considered non aligned respect analysis alignment target transition circular economy analyses carried eligible activities indicated activity construction new buildings climate change mitigation activity requires primary energy requirements exceed thresh old defined requirements nearly zero energy building nzeb relation investments made connected construction new buildings adopting conservative prudential approach absence sufficient information would permit complete assessment criterion met activity considered non aligned adaptation climate change every activity must satisfy requirements outlined appendix climate delegated act require analysis identification assessment vulnerability physical climate risks acute chronic nature listed section appendix affect activity according specific procedures defined delegated act including creation plan aptation group performed analysis climate risk physical transitional facilities production logistics sites well supply chain however plan adaptation identified risks defined therefore group considers activity non aligned sustainable use protection water marine resources relation activity necessary per form analysis risks environmental degradation related preservation water quality prevention water stress based activities carried believed date technical information sufficient group cautiously consider activities constructing new buildings line criteria pollution prevention control activity requires building components materials used construction activities contain chemicals listed appendix climate delegated act even though group adopts conservative prudential approach despite fact conducting construc tion activities committed complying regulations force concerning substances used absence sufficient evidence substantiate precise analyses required criterion group considers activity non aligned protection restoration biodiversity ecosystems activity requires compliance criteria stated appendix climate delegated act include conducting environmental impact sessment eia putting place required compensation mitigating measures relation investments made connected construction new buildings penne gubbio adopting conservative prudential approach absence sufficient information would permit complete assessment criterion met activity considered non aligned activity renovation existing buildings climate change mitigation regarding activity group believes activities restructuring shops buildings aligned restructured buildings used extraction transport storage production fossil fuels annual financial report consolidated sustainability report adaptation climate change every activity must satisfy requirements outlined appendix climate delegated act require analysis identification assessment vulnerability physical climate risks acute chronic nature listed section appendix affect activity according specific procedures defined delegated act including creation plan aptation group performed analysis climate risk physical transitional facilities production logistics sites well supply chain however plan adaptation identified risks defined therefore group considers activity non aligned sustainable use protection water marine resources order fulfil requirements water con sumption activity hydraulic equipment must installed ensure flows discharges minimise waste water resources believed date technical information sufficient group cautiously consider renovation activities shops buildings line criteria pollution prevention control activity requires restructuring activity carried materials components used activities limited content formaldehyde volatile organic carcinogenic compounds contain chemicals listed appendix climate delegated act accordance conservative prudential approach despite fact conducting restructuring activities group committed complying regulations force concerning sub stances used absence sufficient evidence substantiate precise analyses required criterion group considers activity non aligned activity demolition buildings structures climate change mitigation activity requires management greenhouse gas emissions foam contained foam laminated panels removed demolition activities relation invest ments made connected demolition building pinturicchio site gubbio adopting conservative prudential approach absence sufficient information would permit com plete assessment criterion met activity considered non aligned adaptation climate change every activity must satisfy requirements outlined appendix climate delegated act require analysis identification assessment vulnerability physical climate risks acute chronic nature listed section appendix affect activity according specific procedures defined delegated act including creation plan aptation group performed analysis climate risk physical transitional facilities production logistics sites well supply chain however plan adaptation identified risks defined therefore group considers activity non aligned sustainable use protection water marine resources relation activity necessary per form analysis risks environmental degradation related preservation water quality prevention water stress based activities carried believed date technical information sufficient group cautiously consider activities demolition buildings line criteria pollution prevention reduction measures must taken demolition phases reduce noise dust pollutant emissions therefore considered criterion met therefore activity considered aligned protection restoration biodiversity ecosystems requires compliance criteria stated appendix climate delegated act include conducting environmental impact assessment eia putting place required compensation mitigating measures relation investments made demolition activity adopting conservative prudential approach absence sufficient information would permit complete assessment criterion met activity con sidered non aligned annual financial report consolidated sustainability report activity provision data driven solutions software adaptation climate change every activity must satisfy requirements outlined appendix climate delegated act require analysis identification assessment vulnerability physical climate risks acute chronic nature listed section appendix affect activity according specific procedures defined delegated act including creation plan aptation group performed analysis climate risk physical transitional facilities production logistics sites well supply chain however plan adaptation identified risks defined therefore group considers activity non aligned sustainable use protection water marine resources according requirements activity necessary perform analysis risks environmental degradation related preservation water quality prevention water stress based activities carried believed date technical information sufficient group cautiously consider activity line criteria pollution prevention control activity requires equipment systems used complies requirements directive regarding design regard investments made purchase systems activities carried europe according current regulations activity considered aligned finally respect analysis alignment sustainable use protection water marine sources analyses carried activity assessed eligible indicated activity wtr treatment urban waste water climate change mitigation activity requires assessment direct greenhouse gas emissions created centralised waste water system inclusive collection sewer network treatment concerns investments made connected construction sewers adopting conservative prudential approach absence sufficient evidence substantiate precise analyses required criterion activity considered non aligned adaptation climate change every activity must satisfy requirements outlined appendix climate delegated act require analysis identification assessment vulnerability physical climate risks acute chronic nature listed section appendix affect activity according specific procedures defined delegated act including creation plan aptation group performed analysis climate risk physical transitional facilities production logistics sites well supply chain however plan adaptation identified risks defined therefore group considers activity non aligned pollution prevention control activity requires observance current legislation concerning pollutants deriving discharges water bodies adoption measures avoiding limiting harmful overflow rainwater accordance conservative prudential approach despite fact con ducting treatment activities group committed complying regulations force absence sufficient evidence substantiate precise analyses required criterion group considers activity non aligned protection restoration biodiversity ecosystems activity requires compliance criteria stated appendix climate delegated act include conducting environmental impact assess ment eia putting place required compensation mitigating measures relation invest ments made connected treatment urban waste water pinturicchio construction sewers adopting conservative prudential approach absence sufficient information would permit complete assessment criterion met activity considered non aligned annual financial report consolidated sustainability report minimum social safeguards brunello cucinelli group verified compliance minimum social safeguards define minimum protection measures ensure economic activity carried respect human bour rights line oecd guidelines multinational enterprises united nations guiding principles business human rights including international labour organisation ilo declaration fundamental principles rights work eight fundamental ilo conventions well international bill human rights assessment also took account interpretative guidance issued platform sustainable finance psf advisory body established pursuant article regulation document final report minimum safeguards published october well european commission communiqué june respect indicators negative sustainability effects document drafted aim providing essential information support companies investors manage practicalities minimum guarantee requirements however represent official legal interpretation analysis conformity minimum social safeguards included following nine categories human rights policies human rights due diligence risk assessment management human rights impacts reporting human rights aspects grievance mechanisms consumer interests anti corruption competition taxation carrying activities brunello cucinelli group operates requires employees external collabora tors business partners operate compliance code ethics defines set rules conduct principles values guide company operations order guarantee correct functioning integrity reputation business activities code ethics approved board directors applies binding manner stake holders considered relevant company integral part organisation management control model pursuant legislative decree company shares code ethics interested parties publishing corporate website corporate intranet adoption code ethics also made known relations group external collaborators customers suppliers etc use specific contractual clauses specific sanctions provided breach code ethics line principles code ethics board directors adopted human sustainability pol icy harmony creation diversity inclusion policy policies represent additional tools brunello cucinelli group implemented guarantee commitment respecting values human rights prevent episodes discrimination could compromise right equal opportunity foster inclusive diverse corporate culture group additionally commits offering targeted training programmes staff aforementioned topics minimising language barriers workplace promoting recruitment personnel different nationalities protected categories article regulation annual financial report consolidated sustainability report furthermore brunello cucinelli group established council human sustainability humanis tic capitalism objective disseminating sustainability principles particular focus ethical environmental social aspects including human rights order guarantee equal opportunities value include people group respecting dignity freedom autonomy individual group adopted policies based meritocracy recognition fair remuneration evidence group focus issues ratio women basic salary average wages men refer paragraph compensation metrics pay gap total compensation section workforce included chapter social information additional tools ethical business management include whistleblowing procedure regulates process reporting potential conduct breach model code ethics policies adopted internally group also committed ensuring dialogue stakeholders defined human relations policy published investor relations website approved board directors ensures respon sible inclusive communication key stakeholders regard safeguarding interests customers group additionally dedicated overseeing pro duction procedures operating accordance prevailing regulations pertaining quality safety products furthermore ensures adherence stipulations general data protection regulation gdpr disclosing privacy policy customers via website anti bribery policy available online group affirms commitment combating forms corruption unlawful practices furthermore brunello cucinelli demonstrates strong dedication advocating range anti corruption training initiatives endeavours aim enhance knowledge regarding corrup tion concerns potential hazards employees organisation may encounter proper protocols reporting suspected illicit activities group operates national international market full compliance national antitrust tax regulations group successfully executed certain controls prevent instances non compliance pertaining human rights corruption taxation matters additionally customer complaints received concerning violations regulations brunello cucinelli undertakes ensure rules conduct contained also complied suppli ers raw materials small craft enterprises required sign code stipulating form agreement within particular framework mandatory suppliers affix signatures regulations stipulating obligations responsibilities established organisation management control model anti bribery policy whistleblowing procedure additionally bound human sustainability policy harmony creation diversity inclusion policy ongoing small craft enterprises audit process implemented assess mitigate risks related ethical social environmental issues within supply chain nevertheless company maintains conservative prudential approach concludes existing pro cedures implemented throughout group particular suppliers small craft enterprises although satisfactory line market corporate standards fail completely satisfy every criterion essential acknowledging alignment identified eligible activities annual financial report consolidated sustainability report disclosure taxonomy kpis accordance delegated regulation issued european commission economic activities assessed eligible aligned technical requirements defined taxonomy brunello cucinelli group calculated relevant share turnover capital expenditure capex operating expenditure opex specifically calculation turnover amount revenues deriving sale products provision services considered compliance ias par directive defines regards denominator net turnover revenues deriving sale products provision services net vat returns additional taxes capex take account sum additions tangible intangible balance sheet items including capitalised assets related rights use arising ifrs opex take account sum operating expenses associated maintenance production facil ities day day servicing company assets short term leasing analyses conducted revenue items identified could associated permissible economic activities respect climate delegated act environmental delegated act therefore com pared total turnover thousand ineligible share basis provisions paragraph delegated regulation group considers value denominator kpi relating opex required regulation amounting thou sand corresponding approximately group total opex material business model reason group carry analyses calculation numerator kpi kpi reference capex even case group considered investments aligned cli mate delegated act environmental delegated act amounts still identified regarding eligible economic activities respect two delegated acts particular investments associated following activities transport motorbikes passenger cars light commercial vehicles reference purchase hire vehicles infrastructure personal mobility cycle logistics reference construction pavement pedestrians ellera corciano construction new buildings reference construction new buildings gubbio penne renovation existing buildings reference refurbishment shops offices buildings installation maintenance repair energy efficiency equipment reference implementation thermal insulation systems buildings installation maintenance efficiency ventilation air con ditioning systems replacement traditional lighting systems lamps smart lighting systems led lamps installation maintenance repair technologies renewable energies reference installa tion photovoltaic plant pinturicchio acquisition ownership buildings reference rental buildings reference environmental delegated act investments associated following activities municipal wastewater treatment reference construction sewers drain pipes remediation contaminated sites areas reference remediation asbestos new facility poppi construction new buildings reference construction new buildings gubbio penne annual financial report consolidated sustainability report renovation existing buildings reference refurbishment shops offices buildings demolition buildings structures reference demolition buildings pinturicchio provision data driven solutions software reference purchase information sys tems managing orders shipments collecting processing data related equipment products infrastructure accounting policy according annexes delegated regulation required calculate percentage turnover capex opex associated eligible aligned assets fulfil regulatory obligation mentioned previous paragraphs group identified eligible activities calculated three kpis required regulation also assessed alignment activities technical screening criteria provided climate delegated act environmental delegated act analyses conducted order adhere disclosure obligations delegated regulation described indicating methodologies applied accounting items considered calculating three kpi turnover accordance delegated regulation group considered following values calculation turnover ratio denominator net turnover sale goods provision services deducting sales discounts vat directly related turnover order avoid possible double counting intercompany items eliminated contribute determination kpi result denominator thousand kpi corresponds item revenues presented note revenue group con solidated financial statements line provisions ias par numerator share net turnover taken account calculation denominator associated eligible aligned activities assessment approach taken involved identifying general accounting potential revenue components associated eligible economic activities year brunello cucinelli group assessed directly performed activities eligible therefore numerator turnover indicator zero capex purpose calculating denominator kpi relating capex considered additions incurred reporting period relating tangible assets land buildings leasehold improvements plant machin ery commercial industrial equipment assets fixed assets construction historical collection intangible assets concessions licences trademarks fixed assets construction payments count right use assets rou buildings motor vehicles investment property investment property including additions arising business combinations year approach used extraction mentioned figures involved timely analysis general accounts showing invest ments made year companies within scope consolidation accordance delegated regulation group considered following values calculation capex denominator calculation denominator group considered increases plant property equipment accounted accordance accounting standard ias note annual financial report intangible assets accounted accordance accounting standard ias note nual financial report increases rights use accounted accordance accounting standard ifrs note annual financial report investment property accordance accounting annual financial report consolidated sustainability report standard ias note annual financial report analysis returned total value referring financial year thousand numerator purpose determining numerator capex related purchase outputs eligible economic activities taxonomy aligned individual measures enable activities reduce emission profile considered regard group included following values numerator kpi referring data consolidated financial statements accordance accounting standards ias property plant equipment ifrs leases ias intangible assets activity municipal wastewater treatment additions plant property equipment related plants regulated accounting standard ias activity remediation contaminated sites areas additions tangible assets related plants regulated accounting standard ias activity construction new buildings additions plant property equipment related plants regulated accounting standard ias activity renovation existing buildings additions property plant equipment related plants regulated accounting standard ias activity demolition buildings structures additions property plant equip ment related plants regulated accounting standard ias activity provision data driven solutions software additions intangible assets related software regulated accounting standard ias activity transport motorbikes passenger cars light commercial vehicles increases motorcycle rights use regulated accounting standard ifrs increases property plant equipment regulated accounting standard ias activity infrastructure personal mobility cycle logistics additions property plant equipment related plants regulated accounting standard ias activity construction new buildings additions plant property equipment related plants regulated accounting standard ias activity renovation existing buildings additions property plant equipment relation plants regulated accounting standard ias activity installation maintenance repair energy efficiency equipment additions prop erty plant equipment relation plants regulated accounting standard ias activity installation maintenance repair technologies renewable energies additions property plant equipment relation plants regulated accounting standard ias activity acquisition ownership buildings additions rights use regulated accounting standard ifrs additions property plant equipment relation plants regulat accounting standard ias additionally emphasised retrieval data pertaining aforementioned categories executed promptly utilising information contained general accounts currently use companies included scope consolidation annual financial report consolidated sustainability report opex accordance delegated regulation group considered following values calculation opex denominator calculation denominator detailed analysis group chart accounts carried identifying items associated cost categories expressly mentioned delegated regulations specifically short term lease costs related maintenance repairs incurred operation buildings equipment costs related employees involved maintenance repair activities also maintenance commis sioned third party companies taken account category costs associated day day servicing assets costs associated reorganisation facilities buildings costs capitalised specifically related performance design aesthetic conception activities aimed study new products outcome analyses resulted value thousand representing approximately total operating expenses stipulated delegated regulation therefore opex kpi considered non material numerator light guidance provided european commission disclosure delegated act annex determined would inappropriate provide indication value numerator relevant kpi denominator accounts approximately overall operational expenditure low value aforementioned ratio expression reduced rel evance cost categories required taxonomy tend reward asset intensive business models compared business model cost external processing personnel advertising commercial costs transport representative expressions operating costs clarification provided answer question faq published european commission february annual financial report consolidated sustainability report table share turnover derived products services associated economic activities taxonomy aligned disclosure financial year year criteria substantial contribution dnsh significant harm criteria economic activities code turnover share turnover climate change mitigation adaptation climate change water marine resources circular economy pollution biodiversity ecosystems climate change mitigation adaptation climate change water marine resources circular economy pollution biodiversity ecosystems minimum social safeguards share turnover taxonomy aligned taxonomy eligible qualifying activity category transition activity category yes yes yes yes yes yes yes yes yes yes yes yes yes yes activities eligible taxonomy environmentally sustainable activities taxonomy aligned turnover environmentally sustainable activities taxonomy aligned enabling transitional activities taxonomy eligible environmentally sustainable activities taxonomy aligned turnover activities taxonomy eligible environmentally sustainable activities taxonomy aligned turnover activities taxonomy eligible activities taxonomy eligible turnover activities taxonomy eligible total annual financial report consolidated sustainability report table share capital expenditure products services associated economic taxonomy aligned activi ties disclosure financial year year criteria substantial contribution dnsh significant harm criteria economic activities code capex share capex climate change mitigation adaptation climate change water marine resources circular economy pollution biodiversity ecosystems climate change mitigation adaptation climate change water marine resources circular economy pollution biodiversity ecosystems minimum social safeguards share capex taxonomy aligned taxonomy eligible qualifying activity category transition activity category yes yes yes yes yes yes yes yes yes yes yes yes yes yes activities eligible taxonomy environmentally sustainable activities taxonomy aligned capex environmentally sustainable activities taxonomy aligned enabling transitional activities taxonomy eligible environmentally sustainable activities taxonomy aligned municipal wastewater treatment wtr remediation contaminated sites areas ppc demolition buildings structures provision data driven solutions software transport motorbikes passenger cars light commercial vehicles ccm infrastructure personal mobility cycle logistics ccm construction new buildings ccm renovation existing buildings ccm installation maintenance repair energy efficiency equipment ccm installation maintenance repair technologies renewable energies ccm acquisition ownership buildings ccm capex activities taxonomy eligible environmentally sustainable activities taxonomy aligned capex activities taxonomy eligible activities taxonomy eligible capex activities taxonomy eligible total includes eligible activities present reporting year percentage value total capex taxonomy eligible environmentally sustainable equal sum percentages reported rows annual financial report consolidated sustainability report share capex total capex taxonomy aligned objective taxonomy eligible objective ccm cca wtr ppc bio table share operating expenses arising products services associated economic activities taxono aligned disclosure financial year year criteria substantial contribution dnsh significant harm criteria economic activities code opex share opex climate change mitigation adaptation climate change water marine resources circular economy pollution biodiversity ecosystems climate change mitigation adaptation climate change water marine resources circular economy pollution biodiversity ecosystems minimum social safeguards share opex taxonomy aligned taxonomy eligible qualifying activity category transition activity category yes yes yes yes yes yes yes yes yes yes yes yes yes yes activities eligible taxonomy environmentally sustainable activities taxonomy aligned opex environmentally sustainable activities taxonomy aligned enabling transitional activities taxonomy eligible environmentally sustainable activities taxonomy aligned opex activities taxonomy eligible environmentally sustainable activities taxonomy aligned opex activities taxonomy eligible activities taxonomy eligible opex activities taxonomy eligible total basis provisions paragraph delegated regulation group considers value denominator kpi relating opex required regulation material business model reason group carry analyses calculation numerator kpi opex annual financial report consolidated sustainability report table activities related nuclear fossil gases complementary delegated act delegated regulation line activities related nuclear energy company carries finances exposure research development demonstration implementation innovative systems generating electricity produce energy starting nuclear processes minimum quantity waste fuel cycle company carries finances exposure construction safe operation new nuclear plants generation electricity process heat also purposes district heating industrial processes production hydrogen improvement safety aid best technologies available company carries finances exposure safe operation existing nuclear plants generate electricity process heat also district heating industrial processes production hydrogen starting nuclear energy improvement safety activities related fossil gases company carries finances exposure construction operation plants production electricity use fossil gaseous fuels company carries finances exposure construction requalification operation plants combined generation heating cooling electricity use fossil gaseous fuels company carries finances exposure construction requalification operation plants generation heat produce heating cooling using fossil gaseous fuels annual financial report consolidated sustainability report social information workforce strategy esrs sbm interests views stakeholders group integrates requests stakeholders decision making process significant manner con stantly promoting provided opinions contributions feedback direct impact definition targets content company sustainability strategy confirming commitment towards open dialogue importance approach confirmed human relations policy ref mdr policies casa moda reinforced engagement activities line stakeholder engagement plan given variety heterogeneity involved stakeholders group adopts instruments dialogue channels suitable promoting direct discussion company functions stakeholders con tinuous dynamic dialogue makes possible focus stakeholder requests company deci sion making process promoting respect human rights interests involved actors esrs sbm material impacts risks opportunities interaction strategy business model core company philosophy leads company always placing human centre everything respecting moral economic dignity workers casa moda could produce relevant impacts taken consideration report particular following types employees present group executives managers white collar sales white collar sales blue collar concerns instead types workers employees reference made self employed workers contingent physical persons vat workers provided third party companies temporary employees trainees interns school contemporary high craftsmanship arts solomeo process adopted identifying evaluating impacts risks opportunities related described detail esrs iro thanks process described therein casa moda examined connections identified impacts dependencies risks opportunities result impacts complete table double materiality results instead present section sbm material impacts risks opportunities interaction strategy business model esrs annual financial report consolidated sustainability report table list impacts risks opportunities relevant topic workforce description potential actual impact value chain time period sub topic sub sub topic reference positive impacts increase employee wellbeing promoting company welfare payment correct wage potential operations medium term adequate wages development human resources defining continuous improvement skill learning courses actual operations medium term skill training development negative impacts limited attention aspects work life balance potential operations medium term work life balance occupational accidents diseases performing work activities related interference specific risks location reference human resources casa moda actual operations medium term health safety negative impacts female employees terms limited possibilities personal professional growth due presence pay gap women men potential operations long term gender equality equal pay equal work insufficient satisfaction regarding expectations personal professional growth human resources potential operations medium term skill training development lack respect values diversity inclusion equal opportunities casa moda potential operations medium term employment inclusion people disabilities diversity compromise privacy availability integrity personal human resource data due internal factors non conformity procedures governance applications terms privacy external factors suppliers responsible processing data casa moda data controller potential operations medium term privacy risks difficulties finding specific resources skills market attracting mainly related increasing market demand flexibility medium term work life balance risk losing key skills knowledge medium term work life balance labour law disputes medium term health safety undermining employee motivation due failed reduced application diversity inclusion values company negative consequences reaching company objectives medium term gender equality equal pay equal work employment inclusion people disabilities diversity internal skill knowledge level aligned needs organisation traced back training phase core business medium term skill training development annual financial report consolidated sustainability report description potential actual impact value chain time period sub topic sub sub topic reference inability group meet requests data subjects failure meet legal deadlines deletion access data rectification data withdrawal consent short term privacy penalties compensation damage deriving compromise privacy integrity availability personal data due external factors suppliers responsible processing data data controller short term penalties compensation damage deriving compromise privacy integrity availability personal data due internal factors short term particular concerns negative impacts please refer table table nature negative impacts workforce nature impact negative impact sub sub topic generalised systemic limited attention aspects work life balance negative impacts female employees terms limited possibilities personal professional growth due presence pay gap women men insufficient satisfaction regarding expectations personal professional growth human resources lack respect values diversity inclusion equal opportunities casa moda work life balance gender equality equal pay equal work skill training development employment inclusion people disabilities connected single incidents occupational accidents diseases performing work activities related interference specific risks location reference human resources casa moda lack respect values diversity inclusion equal opportunities casa moda compromise privacy availability integrity personal human resource data due internal factors non conformity procedures governance applications terms privacy external factors suppliers responsible processing data casa moda data controller health safety diversity privacy details please refer mapping impacts risks opportunities provided esrs iro disclo sure requirements esrs covered undertaking sustainability statements annual financial report consolidated sustainability report management impacts risks opportunities policies related workforce principles values characterise culture business model guide relationship human resources regulated code ethics specifically concerns labour rights code ethics based respect personality dignity every individual valorisation meritocracy recognition fair compensation offer path promotes professional skills valorisation innovative entrepreneurial spirit everyone well definition roles responsibilities delegations access information member organization able suitably intentionally make decisions responsible interest company group also objective preventing discrimination harassment abuse type promoting principal equal opportunities aspects work relationship act accordance united nations guiding principles business human rights oecd guid ing principles ten principles united nations global compact ungc context adhere requirements modern slavery act published investor site order oppose forms exploitation furthermore started whistleblowing procedure offers safe reserved channel reporting violations concerning human rights working conditions code ethics based broad structured policy system adopted casa moda protect workforce specifically system made diversity inclusion policy human sustainability policy harmony creation human relations policy privacy policy system particular policies define commitments related suitable salaries work life balance health safety gender equality equal pay equal work skill training development employment inclusion people disabilities diversity privacy annual financial report consolidated sustainability report diversity inclusion policy diversity inclusion policy formalises commitment understanding welcoming valuing uniqueness person organisational management processes promote inclusion respect listening valorising employees regardless gender identity age different physical psychophysical abilities visible sexual orientation different cultures nationalities social economic origins ethnicities religions belong identify specifically structure policy divided five pillars whereby commit encouraging greater inclusion areas diversity currently representative business gender identity age different physical mental abilities sexual orientation multiculturalism dignity work inclusive communication culture diversity equal opportunities inclusive leadership policy concerns workforce overall paying particular attention vulnerable categories female workers persons disabilities particular concerns women promote gender balance top positions relative responsibilities enhance company welfare plans support inclusion create career paths account diversity committed closing pay gap men women furthermore regards persons disabilities ensure selection methods account different physical mental abilities promote one one assessment system considers also aspects concerning protection inclusion diversity provide working methods meet needs everyone especially vulnerable categories guarantee workplaces increasingly accessible safe persons disabilities specific tools technical supports particular concern sales points define plans retaining different talents inclusive permit everyone feel part community gain increasing awareness key aspects regarding diversity inclusion launched internal training course consolidated past two years annual financial report consolidated sustainability report specifically learning course continued regarding topics diversity inclusion made available employees group platform starting content developed customised entirely enhance corporate culture subject furthermore training workshops dedicated topics diversity inclusion started support learning training continued specifically moments exchange occurred concerns topics relationship generations gender gap use inclusive language create climate fosters positive interactions people ensures one feels excluded also taking significant measures reduce language barriers within workplace casa moda mandatory objective acting prevent forms discrimination prejudice harassment workplace verbal physical visual otherwise even done consciously create hostile environment individual discriminatory episodes occurred alignment defined human relations policy mdr policies casa moda strategic assessment carried point view extent dependency influence stakeholders company decided continue activity direct engagement stakeholders involving representative sample workforce also ref processes engaging workers workers representatives impacts reference right privacy also privacy policy system intended entire workforce casa moda well suppliers customers please refer section mdr policies casa moda information concerning policies cited define concrete commitments casa moda regarding workforce policy processes engaging workers workers representatives impacts regards involvement human resources casa moda takes place directly work force regulated principles enshrined human relations policy ref mdr policies casa moda functions involved processes connected responsibilities described section sbm interests views stakeholders particular july hoc days organised carried according lego serious play facilitation method tool based serious play possible foster development crea tive thinking increase sense collaboration engaging participants interactive fun reflective manner annual financial report consolidated sustainability report objectives underpinning engagement activities organised july first foremost consistent principles enshrined human relations policy source inspiration dialogue stakehold ers particular purpose engagement active listening expectations requests suggestions concerning group regard sustainability involvement double materiality analysis process reinforcement dialogue relationship created time human resources wider point view involvement normally takes place phase evaluating effective ness mitigation measures process consists analysing collecting opinions participants actions adopted casa moda reduce negative impacts thereby evaluating implemented strategies involvement takes place every year company guarantees fair involvement entire company population adopting approaches entire workforce order ensure inclusive representative process furthermore depth examination priority sustainability topics casa moda involved sample employees worker representatives involvement took place using anonymous questionnaire results submitted management order identify potential areas improvement make company sustainability strategy increasingly effective reinforce commitment increasingly sustainable development reference internal sharing resulted dialogue different categories stake holders reference functions requested collect requests expressed stakeholders perform initial assessment prioritisation entering information database every six months shared human sustainability team latter responsible transmitting analysed council human sustainability human istic capitalism assessment engagement activities organised human resources showed active participation strong consistency perception satisfaction part participants regards specific involvements concerning diversity topic reference made activities organised alignment diversity inclusion policy ref policies related workforce finally conflicts interest took place within workforce processes remediate negative impacts channels workers raise concerns casa moda implemented various processes remedy negative impacts numerous channels workers raise concerns tools summarised analysed described detail following sections management method applies types stakeholder involvement workforce information therefore applies also sections value chain workers affected communities consumers end users annual financial report consolidated sustainability report figure relation process channel relevant sub sub topic whistleblowing procedure adequate wages work life balance health safety gender equality equal pay work equal value training skills developmen employment inclusion persons disabilities diversity privacy company adopted whistleblowing procedure updated force since company included training activities sustainability plan concerning ethical business conduct corruption privacy completed also support supervisory body pursuant legislative decree activities started effectively face face line initiatives regard latter company learning development function prepared training module together dedicated whistleblowing made available employees via sympo learning platform publication accompanied informative email degree completion learning course whistleblowing monitored information please refer paragraph corporate culture business conduct policies figure relation process channel relevant sub sub topic adequate wages work life balance gender equality equal pay work equal value training skills development employment inclusion persons disabilities diversity diversity inclusion policy specific grievance procedures one one talks human resources department annual financial report consolidated sustainability report addition whistleblowing procedure event critical issues negative incidents reported stake holders company puts place organisational technical procedural measures necessary remedy occurred particular diversity inclusion policy ref mdr policies casa moda policies related workforce provides right report problematic unacceptable behaviours violate principles defined document policy addressed right also moral obligation report problematic behaviour breach principles outlined document reports may made two main ways channels informally directly contacting one department manager also office formally including anonymously email address provided whistleblowing procedure pursuant legislative decree cases whistleblower guaranteed protection retaliatory discriminatory act whether direct indirect every breach policy shall give rise disciplinary procedure involves different levels measures depending seriousness breach dismissal termination employment contract company serious cases local level specific grievance procedures also place china russia united arab emirates line provisions current employee handbooks unlike whistleblowing procedures involve direct anonymous contact departments furthermore dedicated email address available contact team finally case critical issues communicated one one discussions human sources department solutions include updates employee handbook targeted measures start coaching mentoring programs figure relation process channel relevant sub sub topic personnel evaluation processes training skills development particular reference training development skills addition aforementioned channels integral part development programs also personnel assessment processes based constant interaction constructive discussion manager employees relation work per formed aspects life human resources casa moda annual financial report consolidated sustainability report activity contextualised within functional aspects geographical areas group operates particular manager support headquarters human resources department engages one one dialogue staff reviewing activities carried sharing results achievements medi long term objectives assessments qualitative quantitative review staff members various regions process managed sharing evaluation forms set individual objectives along self assessment section addition manager review type review linked individual salary reward mechanisms rather opportunity exchange set future goals indeed form contains dedicated section resource oppor tunity indicate needs future planning take input account followed final sharing feedback managers resources involved often participation human resources department feedback employee receives conclude performance review rather start process pave way future development figure relation process channel relevant sub sub topic health safety prevention protection service manager reports store manager regards health safety italy house prevention protection service manager rspp charge identifying workplace hazards constant inspections particularly production departments european non european locations analysed hazards critical situations terms occupational health safety reported relevant store manager informs either local managers directly human resources department italy annual financial report consolidated sustainability report figure relation process channel relevant sub sub topic data protection officer privacy policy privacy finally channels mentioned human resources use raise concerns privacy protection personal data compliance european legislation protection personal data company taken appropriate measures minimise exposure risks arising non compliance laws deriving compro mising data result loss theft destruction alteration information collected company prepared specific tools allow human resources send requests reports concerning data protection privacy figures include data protection officer dpo privacy whose dedicated contact addresses provided company privacy notice ref mdr policies casa moda channels made known employees manage requests concerning processing personal data year reference complaints received concerning data protection privacy requests concerning protection personal data privacy rights data subjects recorded traced register data subject requests sent dedicated addresses analysed iden tify involved data right exercised following structured process includes registration analysis involvement responsible functions updating procedure response timeframe indicated law company developed privacy management dedicated channels training initiatives mandatory courses regarding gdpr including specific training data breaches available nine languages induction meetings continued new hires targeted training sessions retail corporate staff increase awareness data security course cyber security awareness made available sympo mandatory employees information available via corporate intranet taking action material impacts workforce approaches mitigating material risks pursuing material opportunities related workforce effectiveness actions human resources engine casa moda ensure value continuity time therefore promotion dignity wellbeing everyone enhancing individual skills personalities aware ness value everyone knowledge always priority objective company pursues annual financial report consolidated sustainability report daily management relationship human resources based internal strategic operational organisation involves significant cooperation managers head office solomeo various regions operations specifically coordination relationship company collaborations development strategic lines concerning various aspects life company responsibility human resourc committee operating level human resources manager manages supervises processes order implement guidelines committee activities included life cycle people company terms attraction selection organisation management training development responsibility function director appointed main regions report functionally human resources department located solomeo headquarters hierarchically chairman managing director various local structures role implement key aspects corporate culture human resource management defined solomeo taking account peculiarities various national systems particular company implemented actions specified table initiatives con tribute towards reaching targets defined diversity inclusion policy code ethics specific reference sections valorisation human resources dignity wellbeing individual table overview actions concerning workforce actions performed actions programmed training courses diversity inclusion contribution aimed support access books cinema theatre training courses scholastic services italy well majority foreign sites bonus culture flourishes provision supplementary insurance policy employees italy supplement benefits provided category fund ccnl sanimoda fondo est provides employees including families additional prevention packages benefits additional training courses regarding diversity inclusion distribution bonus culture flourishes presence supplementary insurance policy supplement benefits provided category fund furthermore concerns training skill development casa moda committed pursuing fol lowing actions near future continued support development managerial skills different organisational levels training strategic sharing orient people translate service leadership model coherent decisions behaviours support individual growth coaching promote interfunctional collaboration joint methodological workshops departments resources dedicated managing impacts governance structures dedicated functions relative economic resources assigned internal external cost initiatives included company operations particular attention employees global level implementation initiatives conditioned resource constraints far health care prevention concerned insurance provided category fund currently place italian offices fasi aimed ecutives sanimoda aimed employees covered ccnl abbigliamento confezioni brunello cucinelli remaining employees artisan factories max vannucci pinturicchio dorica vestis whereas resources covered ccnl commercio access fondo est additional health insurance cover included addition two aforementioned trade funds also cover operations major operations additional ceiling made available fund cover costs operations employees families annual financial report consolidated sustainability report promote generational integration cultural awareness actions diversity day specific workshops inclusive communication bias stereotypes continue involvement retail population training programs concerning relations custom valorise central importance human relation promote development verbal non verbal communication skills using theoretical neuropsychological model reference topic health safety use equipment forklifts electric pallet trucks main source risk identified safety workers involved therefore order reduce use equipment part shelves purposely set heights added benefit allowing natural light work areas employees regularly informed health safety work specific communications training generic specific applicable employee handbooks addition mandatory training activities non mandatory training courses also implemented include example training regarding gonomics physiotherapy dedicated professional categories drivers warehouse employees inspectors employees brunello cucinelli finally regard privacy protection personal data figure dpo established order monitor observance regulations provide assistance management risks related personal data processing dpo also entrusted central coordination privacy related activities carried various group companies creation human privacy committee also made pos sible optimise company organisational structure privacy level better defining role dpo relationships ceos company functions also ensure greater involvement offices decision making powers regarding issues inherent privacy data protection regard human privacy committee dpo listening advisory role regarding specific agenda items identified actions defined necessary compliance gdpr dpo submits atten tion human privacy committee ceos approval company monitors assesses efficiency identified actions initiatives undertaken promote workforce using qualitative tools continuous dialogue individuals structured collection feedback periodic moments exchange methods make possible determine sig nificant elements resulting effects initiatives implemented relation identified material iro direct possible corrective improving actions metrics targets targets related managing material negative impacts advancing positive impacts managing material risks opportunities including results obtained discussions human resources company defined targets garding diversity inclusion topic well topic suitable salaries health safety order manage impacts risks opportunities connected workforce please refer section mdr targets casa moda information annual financial report consolidated sustainability report characteristics undertaking employees quantitative details regarding workforce casa moda presented extracted reprocessed group internal management systems group human resources counted people majority company workforce concentrated italy human resources women men table number employees based gender gender unit measurement number employees men women communicated total employees table number company employees countries company least employees represent least total number employees country unit measurement number employees italy france united kingdom canada mainland china japan hong kong middle east dubai russia usa employee one group companies brunello cucinelli hired permanent contract suspended therefore contract ended end year including december order temporarily hired another group branch employee must counted reference workforce company hired fixed term contract max vannucci therefore resource question included overall number employees december aforesaid company neither counted turnover concerns suspen sion counted workforce company origin differentiation employees workers employees casa moda please refer esrs sbm impacts risks opportunities interaction strategy business model number employees presented number persons fte full time equivalent equals december reported paragraph operating costs report operations board directors gender specified directly employees table considers countries sites employees represent least total workforce result follow ing countries included austria belgium germany greece monaco spain switzerland kuwait macao singapore taiwan annual financial report consolidated sustainability report furthermore human resources employed permanent contract work full time table number employees based type contract divided gender unit measurement women men communicated total number employees number employees permanent contract number employees fixed term contract number employees variable hours number full time employees number part time employees table number employees based type contract divided region unit measurement italy europe non europe total number employees number employees permanent contract number employees fixed term contract number employees variable hours number full time employees number part time employees year people left casa moda negative turnover group equalled variable hours refers number employees non guaranteed hours refers employees minimum fixed number work ing hours per day week month guaranteed must available work according needs organisation following cases included termination count contracts ended due expiration temporary contracts personnel hired meet temporary needs maternity leave seasonal work ended due expiration methods managing two particular cases described employee retires next day rehired must included count total terminations employees whose contract terminated due resignation retirement december year reporting must included calcu lation terminations took place year resources instead increase total number resources december company workforce counted turnover rate following year negative turnover calculated comparing employees permanent contract employees fixed term contract voluntary basis result dismissal retirement left group respect total number employees december annual financial report consolidated sustainability report characteristics non employee workers undertaking workforce concerns workers employees self employed workers workers provided companies perform labour recruitment provision personnel activities table number workers employees unit measurement number self employed workers number workers provided companies provide labour recruitment provision personnel services total diversity metrics reference executives managers women men represent company population table distribution gender top management level number percentage unit measurement women men communicated total executives managers number employees percentage executives managers concerns distribution age majority company population lies within age range following human resources age age table distribution employees age range employees unit measurement years years years total differentiation employees workers employees casa moda please refer esrs sbm impacts risks opportunities interaction strategy business model top management considers following contractual categories casa moda executives managers annual financial report consolidated sustainability report adequate wages adequately remunerate human resources adopt policies based meritocracy fair remuneration according roles responsibilities delegations given principle uniqueness person pinning company organisation related values equity inclusion company remuneration policies aim understand enhance include people group analysed salaries paid company collected depth data countries erate mapped countries minimum wage considering case remuneration suitable light company compliance laws countries without minimum wage adopted reference parameter line wage indicator foundation order compare remuneration offered casa moda analysis shows wages applied within group exceed reference parameters confirming commitment guaranteeing fair remuneration resources persons disabilities protect value different physical mental abilities ensuring working environment support ive needs whether visible invisible employees people fall vulnerable categories women men table number employees disabilities gender unit measurement women men communicated total persons disabilities number employees percentage persons disabilities wage indicator foundation global independent non profit organisation collects analyses shares independent accessible information labour market countries vulnerable categories include employees belong protected categories specified law furthermore respect provisions law promotes insertion integration working world persons disabilities targeted support placement services annual financial report consolidated sustainability report training skills development metrics annual performance review process line objectives fixed management performed involving almost entire company population exception production area details please refer following table table percentage performance reviews performed employee category employee category unit measurement total executives managers women men communicated white collar sales women men communicated white collar sales women men communicated blue collar women men communicated concerns instead training hours training provided average around training hours per employee group level regards italy brunello cucinelli included since periodic performance review companies max vannucci dorica vestis pinturicchio hours workers employed counted order provide significant overview ratio hours training total number employees annual financial report consolidated sustainability report table hours training employee category hours training employee category unit measurement women men communicated executives managers total executives managers total hours training gender average hours training gender white collar sales total white collar sales total hours training gender average hours training gender white collar sales total white collar sales total hours training gender average hours training gender blue collar total blue collar total hours training gender average hours training gender total employees gender total hours training gender average hours training gender health safety metrics company currently certified workplace health safety management system group level general precautions control measures adopted ensure risk accidents remains low far italy concerned company population concentrated assessment monitoring reporting workplace hazards may constitute injury risk carried risk assessment doc ument rad periodically updated assessments made potential occupational health safety risks make possible identify preventive improvement solutions may either organisational form training injuries took place among employees among workers employees respectively overall rate recordable work related injuries equal table provides snapshot accidents occurred respective rates year progress annual financial report consolidated sustainability report table number rate work related accidents unit measurement employees number work related accidents number hours worked rate work related accidents workers employees number work related accidents number hours worked rate work related accidents furthermore deaths occurred within workforce casa moda including category workers employees company continuously monitors risk occupational diseases even extent small case work related illness also days lost due accidents work work related illness employees work life balance metrics following table shows number employees entitlement leave family reasons including ternity leave paternity leave parental leave leave caregivers make use year reference table number employees entitlement leave family reasons unit measurement women men communicated total employees entitlement leave number employees percentage employees entitlement leave work related injury rate calculated follows casa moda divides corresponding number cases total number hours worked employees multiplied work related injury rate calculated follows casa moda divides corresponding number cases total number hours worked workers employees multiplied case occurred pinturicchio number days lost due accidents work work related illness collected italian sites brunello cucinelli dorica vestis max vannucci pinturicchio countries right leave guaranteed company population kuwait japan usa annual financial report consolidated sustainability report table number employees made use leave family reasons unit measurement women men communicated total employees took leave number employees percentage employees took leave compensation metrics pay gap total compensation average gender pay gap shown group calculated considering average pay difference men women level classification white collar sales white collar sales blue collar categories substantial alignment even base salaries overall compensation women slightly lower men gap larger executive managers category table gender pay gap employees professional category unit measurement gross hourly pay total annual pay executives managers white collar sales white collar sales blue collar ratio highest fixed remuneration median annual remuneration group ployees table makes reference following types leave maternity leave paternity leave parental leave leave caregivers pursuant national legisla tion collective bargaining agreements cases early maternity leave example due health problems considered calculation employees used family leave year requirement worker refrain work protect conditions health child possible calculate hourly base pay employees pinturicchio work home therefore variable pay based work performed month furthermore possible find data employees brunello cucinelli usa inc brunello cucinelli singapore pte ltd concerns base hourly pay well concerns total annual remuneration furthermore exchange rate foreign currencies euros average rate year used reference made base salary reference made gross annual salary including additional component received year annual financial report consolidated sustainability report incidents complaints severe human rights impacts manage incidents discrimination presented complaints formal channels described section processes remediate negative impacts channels value chain workers raise concerns well whistleblowing procedure ref corporate culture business conduct policies report complaint handled maximum confidentiality constantly monitor fines penalties guarantee timely identification management fines penalties recorded discrimination furthermore serious incidents occurred involv ing human rights workforce resulting penalties fines compensation regard table episodes reported discrimination presented complaints unit measurement total number episodes discrimination number complaints presented using whistleblowing channel total amount fines penalties compensation damage due complaints severe incidents concerning human rights year report presented using whistleblowing procedure corrective action plans implemented currently report resolved annual financial report consolidated sustainability report entity specific workplaces strategy esrs sbm material impacts risks opportunities interaction strategy business model workplaces human resources work always important element dedicated continue dedicating constant attention process adopted identifying evaluating impacts risks opportunities related described detail esrs iro thanks process described therein casa moda examined connections identified impacts dependencies risks opportunities result impacts complete table results double materiality analysis instead present section sbm terial impacts risks opportunities interaction strategy business model esrs particular reference positive impact identified relevant shows one hand great attention placed locations working conditions order reflect economic moral dignity foundation company significant attention stakeholders towards aspect considered identifying element company philosophy table list impacts risks opportunities relevant topic workplace description potential actual impact value chain time period sub topic sub sub topic reference positive impacts increase employee wellbeing promoting beauty workplaces actual operations medium term management impacts risks opportunities mdr policies casa moda policy system includes promotes respect dignity beauty workplaces fundamental aspect company philosophy please refer section mdr policies casa moda information human sustain ability policy harmony creation mdr actions resources work underpinned belief order promote people wellbeing vital ensure fair balance work free time dedicated individual everyone enjoy right disconnect time committed ensuring everyone work takes place well kept visually appealing well liveable workplaces considering also different physical mental abilities present annual financial report consolidated sustainability report case offices boutiques also production departments regard working hours solomeo one hour half lunch break believe necessary everyone work right amount time able dedicate rest day solomeo employees clock lunch break allows employees use company restaurant outdoor areas return homes lunch families work environment addition complying regulatory hygiene safety standards compa aim represent architecture company premises sense transparency openness towards outside world encouraging exchanges human resources leading higher quality work comfort terms personal wellbeing fact indicators constantly monitored air quality internal temperature natural light focus aesthetics indoor outdoor spaces ensures every employee opportunity working day raise eyes look park outside company sky local area beautiful factory reimagines traditional factory setting transforming space offers better working conditions terms wellbeing providing workers atmosphere mutual respect esteem ignite greater creativity metrics targets mdr tracking effectiveness policies actions targets casa moda define measurable targets regard confirms intention continue initiatives directed towards beautification work environments line company philosophy con sidering essential element dignity valorisation human resources annual financial report consolidated sustainability report value chain workers strategy esrs sbm interests views stakeholders group integrates requests stakeholders decision making process significant manner con stantly promoting provided opinions contributions feedback direct impact definition targets content company sustainability strategy confirming commitment towards open dialogue importance approach confirmed human relations policy ref mdr policies casa moda reinforced engagement activities line stakeholder engagement plan given variety heterogeneity involved stakeholders group adopts instruments dialogue channels suitable promoting direct discussion company functions stakeholders con tinuous dynamic dialogue makes possible focus stakeholder requests company deci sion making process promoting respect human rights interests involved actors esrs sbm material impacts risks opportunities interaction strategy business model types value chain workers presented section sbm strategy business model value chain esrs context casa moda suppliers raw materials small craft enterprises represent categories workers primary importance within value chain actors play crucial role quality sustainability products well social economic impact business model purchase raw materials company works companies proven reliability mul year partnership developed based strong complementarity knowledge mutual respect today collaborate raw material suppliers support brunello cucinelli collection represented clothing accessories suppliers operate italian territory located europe particular spain france great britain japan receive supply denim regards cashmere main supplier cariaggi lanificio located marche consolidated relation years leather mainly sourced italian tanneries primarily located tuscany campania veneto fine hides come french tanneries iberian peninsula reference instead external production structure today medium small sized artisan com owned group annual financial report consolidated sustainability report panies used continuous manner selected basis skills traditions territory half work exclusively company value short production chain case supply raw materials mainly purchased italian suppliers located exclusively italy approximately artisan companies located umbria artisan companies umbria collaborate continuously remaining company works laboratories districts excellence specific types processing tuscany marche abruzzo lazio lombardy veneto greater distance companies jeopardise value based relational proximity try establish constantly process adopted identifying evaluating impacts risks opportunities related described detail esrs iro thanks process described therein casa moda examined connections identified impacts dependencies risks opportunities result impacts complete table double materiality results instead present section sbm material impacts risks opportunities interaction strategy business model esrs annual financial report consolidated sustainability report table list impacts risks opportunities relevant topic workers value chain description potential actual impact value chain time period sub topic sub sub topic reference negative impacts occupational accidents diseases performing work activities workers supply chain potential upstream medium term health safety failure respect principles equal opportunity diversity inclusion reference inclusion persons disabilities along supply chain potential upstream short term employment inclusion people disabilities diversity violation human rights fundamental labour rights along supply chain particular reference phenomena child labour potential upstream short term child labour violation human rights fundamental labour rights along supply chain particular reference phenomena forced mandatory labour potential upstream short term forced labour risks compromise image reputation brunello cucinelli brand due supplier small craft enterprise activities violate applicable standards additional commitments taken group terms health safety short term health safety compromise image reputation brunello cucinelli brand due supplier small craft enterprise activities violate applicable standards additional commitments taken group protect principles equality opportunities diversity inclusion short term employment inclusion people disabilities diversity compromise image reputation brunello cucinelli brand due supplier small craft enterprise activities violate applicable standards additional commitments taken group terms forced mandatory labour child labour short term child labour forced labour particular concerns negative impacts please refer table annual financial report consolidated sustainability report table nature negative impacts related workers value chain nature impact negative impact sub sub topic generalised systemic occupational accidents diseases performing work activities workers supply chain failure respect principles equal opportunity diversity inclusion reference inclusion persons disabilities along supply chain failure respect principles equal opportunity diversity inclusion reference inclusion persons disabilities along supply chain violation human rights fundamental labour rights along supply chain particular reference phenomena child labour violation human rights fundamental labour rights along supply chain particular reference phenomena child labour health safety employment inclusion people disabilities diversity child labour forced labour analysis risk related child forced bonded labour company value chain limited italy considering direct suppliers operate mainly national territory strictness italian regulations concerning protection labour significantly reduces exposure risks management impacts risks opportunities policies related value chain workers casa moda broad structured policy system concerns suppliers small craft enterprises please refer section mdr policies casa moda depth information regarding diversity inclusion policy human sustainability policy harmony creation human relations policy define concrete commitments regarding workers value chain casa moda particular cited policies define commitments related health safety employment inclusion people disabilities diversity child labour forced labour currently cited policies include explicit references topic human trafficking processes engaging value chain workers impacts regards involvement suppliers small craft enterprises casa moda takes place directly workers value chain regulated principles enshrined human relations policy ref mdr policies casa moda wider point view involvement normally takes place phase evaluating effectiveness mitigation measures process consists analysing collecting opinions participants actions adopted casa moda reduce negative impacts thereby evaluating implemented strate gies involvement takes place every year annual financial report consolidated sustainability report relationship developed individual collective meetings including annual convention dedicated sharing results expectations reinforcing topics related company values philosophy within scope managing relationship suppliers purpose increasingly precise monitoring compliance level maturity regarding esg group started progressive process mapping suppliers raw materials collecting primary qualitative quantitative data completely digitalised manner furthermore annual audits carried artisan laboratories collab orate group ref management supplier relations furthermore casa moda dedicated function managing daily supplier activities processes remediate negative impacts channels value chain workers raise concerns preventive prudential point view order avoid occurrence negative impacts stipu lating contract company shares framework agreement contains rules conduct must observed well specific commitments duties particular provisions related social aspects concern proper classification fair remuneration employees compliance applicable laws regulations health safety workplace social security insurance welfare pay tax fiscal matters recognition freedom association workers prevention protection staff discrimination abuse harassment prohibition use child labour forced labour within scope supplier small craft enterprise rules conduct provisions included safety workers well regarding forced labour child labour concerns safety workers taking account specific risks present sector suppliers required ensure healthy safe work environ ment workers avoid incidents injuries caused connected handling work equipment suppliers must also systems place identify avoid neutralise health health safety employees respect applicable standards framework agreement also refers observance code ethics company model combating active passive corruption also included requirements responsibilities suppliers artisan workshops fact indicated anti corruption policy ref corporate culture business conduct policies group reserves right end contractual relationship third parties whose business conduct practices contrast contained policy integral part model partners also subject company whistleblowing procedure ref corporate culture business conduct policies aimed regulating reports regarding illicit conduct reports possible irregular commissive omissive conduct represents could represent violation incitement violation laws regulations code ethics model therefore duty recipients procedure report conduct believe could cause type harm group using reporting channels provided company annual financial report consolidated sustainability report order strengthen commitment monitoring promotion sustainable practices along entire value chain starting supplemented contract documents shared partners human sustainability policy harmony creation diversity inclusion policy must reviewed result business conduct aligned principles must adopted taking action material impacts value chain workers approaches managing material risks pursuing material opportunities related value chain workers effectiveness action management relations raw material suppliers small craft enterprises attributed inter nally production management works close contact third party manufacturer supplier information office selection phase always step fundamental importance casa moda continuation previous years line company strategy suppliers selected basis high quality reliability innovative ability materials furthermore observance regulation reference committed guaranteeing selection processes take place compliance principles laws protection competition ensuring maximum transparency efficiency process based promotion equal participation opportunities impartiality assessment supplier meets requirements regards year casa moda concentrated actions specified table table overview actions regarding workers value chain actions performed actions planned stipulation contract new suppliers company shared framework agreement audit group small craft enterprises suppliers raw materials involved compilation section dedicated personnel present qualitative quantitative self assessment questionnaire sharing framework agreement stipulating contract new suppliers study system implementation due diligence processes according csddd directive metrics targets targets related managing material negative impacts advancing positive impacts managing material risks opportunities company defined specific targets supply chain please refer section mdr targets casa moda information resources dedicated managing impacts governance structures dedicated functions relative economic resources assigned internal external cost actions refer upstream value chain particular reference suppliers raw materials small craft enterprises mainly italy minimum extent european non european regions implementation initiatives conditioned resource constraints indicated actions contribute towards reaching corporate sustainability due diligence directive csddd annual financial report consolidated sustainability report affected communities strategy esrs sbm interests views stakeholders group integrates requests stakeholders decision making process significant manner con stantly promoting provided opinions contributions feedback direct impact definition targets content company sustainability strategy confirming commitment open dialogue importance approach confirmed human relations policy ref mdr policies casa moda reinforced engagement activities line stakeholder engagement plan given variety heterogeneity involved stakeholders group adopts instruments dialogue channels suitable promoting direct discussion company functions stakeholders contin uous dynamic dialogue makes possible focus stakeholder requests company decision mak ing process promoting respect human rights interests involved actors esrs sbm material impacts risks opportunities interaction strategy business model casa moda always believed growth path company taken continue develop sustainable respectful manner also thanks spirit sites exists always keeping ideal safeguarding intact group therefore recognises responsibility regarding territory local communities host company activities collaborates specific development projects including himalayan regions assam ladakh particular reference positive impacts identified relevant result activities related hamlet solomeo specific reference activities connected industrial park beauty park school contemporary high craftsmanship arts himalayan regenerative fashion living lab project process adopted identifying evaluating impacts risks opportunities related described detail esrs iro thanks process described therein casa moda examined connections identified impacts dependencies risks opportunities result impacts complete table double materiality results instead present section sbm material impacts risks opportunities interaction strategy business model esrs annual financial report consolidated sustainability report table list impacts risks opportunities relevant topic affected communities description potential actual impact value chain time period sub topic sub sub topic reference positive impacts positive impacts local economy territories himalayas regenerative agriculture project himalayan regenerative fashion living lab ongoing actual upstream medium term impacts related territory support redevelopment region promotion local artistic cultural heritage actual upstream operations downstream long term development promotion quality craftsmanship reside territory deriving exclusivity allure brand actual upstream operations downstream long term opportunity reputational benefits deriving lasting support activities local territories communities upstream downstream long term impacts related territory management impacts risks opportunities policies related affected communities code ethics defines rules values principles underpinning operations brunello cucinelli subsidiaries acts guide behaviour actions stakeholders relevant com pany ref mdr policies casa moda document underlines group responsibilities regard community support territory company operates attention needs community territories works contrib uting promotion quality life economic social cultural civil development offering constant support cultural activities local associations please refer section mdr policies casa moda information human rela tions policy human sustainability policy harmony creation cited policies prepared accordance guiding principles united nations contain commitments regarding impacts related territory processes engaging affected communities impacts engagement local communities developed periodic meetings representatives local associations moments discussion essential understanding real needs territory process regulated standards established human relations policy ref mdr policies casa moda annual financial report consolidated sustainability report functions involved processes connected responsibilities described section sbm interests views stakeholders processes remediate negative impacts channels affected communities raise concerns even double materiality analysis indicate relevant negative impacts reference topic affected communities ref esrs sbm impacts risks opportunities interaction strategy business model casa moda provided dedicated channels order remedy critical issues could arise future collect concerns offer assistance channels include whistleblowing channel informal communication company functions guaranteed constant dialogue information please refer paragraph corporate culture business conduct policies adopted channels guarantee possibility talking whistleblowers including anonymous ones involved stakeholders today company adopted specific training monitoring initiatives evaluate knowledge whistleblowing channels affected communities taking action material impacts affected communities approaches managing material risks pursuing material opportunities related affected communities effectiveness actions forty years life solomeo company business activity always accom panied constant dedication support restoration development hamlet general umbrian territory supporting growth local community context following actions performed increase offered courses relative number participants school contemporary high craftsmanship arts well implementation training courses support small entrepreneurship start second phase himalayan regenerative fashion living lab project part sustainable markets initiative fashion taskforce continuation evaluation impact generated great works main operations car ried casa moda support territory local communities applying social return investment sroi methodology manual skills high craftsmanship founding elements casa moda therefore school contemporary high craftsmanship arts hamlet solomeo established representing place technical knowledge craftsmanship mastery well ethics dignity sense responsibility handed generation generation based example italian renaissance workshops school contemporary high craftsmanship arts founded purpose encouraging young people understand true value manual work leave precious traditions international level casa moda joined made economic commitment support project himalayan regenerative fashion living lab developed result partnership fashion task force sustainable markets initiative smi established king charles iii united kingdom circular bioeconomy alliance cba casa moda participating project first desire revive contemporary manner traditional artisan knowledge rooted one noble beautiful lands himalayas intention contribute creation benefits future generations annual financial report consolidated sustainability report project reached significant target first shipment pashmina local cooperative volved pastors first products produced using raw material creations presented king charles iii united kingdom important conference organised circular bioeconomy alliance cba prestigious james palace london november project himalayan regenerative fashion living lab continue order consolidate relations communities changpa nomad pastors support local cashmere production chain beginning depth analysis carried aimed measuring evaluating positive pacts terms social benefits communities concerned generated initiatives implemented casa moda aware value actions naturally goes far beyond kind numerical measurement understand social value casa moda contributes benefit territory social return investment sroi calculation selected analysis method calculation sroi ratio based formula subtracts costs sustained casa moda stakeholders social value generated project result divided invested capital analysis continued focus great works created years solomeo umbria internationally problems incidents reported concerning human rights relation local communities territory metrics targets targets related managing material negative impacts advancing positive impacts managing material risks opportunities casa moda defined specific targets local communities territory information concerning sustainability plan refer paragraph sbm strategy business model value chain sustainability plan harmony creation annual financial report consolidated sustainability report consumers end users strategy esrs sbm interests views stakeholders group integrates requests stakeholders decision making process significant manner con stantly promoting provided opinions contributions feedback direct impact definition targets content company sustainability strategy confirming commitment open dialogue importance approach confirmed human relations policy ref mdr policies casa moda reinforced engagement activities line stakeholder engagement plan considering variety heterogeneity involved stakeholders group adopts instruments dia logue channels suitable promoting direct discussion company functions stakeholders continuous dynamic dialogue makes possible focus stakeholder requests company deci sion making process promoting respect human rights interests involved actors esrs sbm material impacts risks opportunities interaction strategy business model focus company places individual natural continuation relationships cus tomer relationship created time customers focused approach aware uniqueness every individual characterised care respect integrity end customers casa moda people desire search exclusivity fine products highest quality distinctive recognisable style expression luxury defined gentile respect trust connects casa moda customers objective always guar anteeing maximum transparency company provides access precise easy understand information regarding products services specific dialogue channels labels accompany prod ucts provided compliance current regulations digital dimension given level care quality courtesy always characterised com pany based solomeo special relationship cultivated day customers digital dimension demonstration continuous active sharing values casa moda aims protect privacy customers without evading personal sphere works safeguard personal data specific reference safeguarding privacy minors line company strategy jective reducing potential risks connected managing type data personal information collected specific category furthermore even collections include also boys girls lines casa moda advertising campaigns dedicated casa moda collections regardless dedicated adults children created produced aim ensuring maximum safety intended purpose guaranteed mate rials used free potentially harmful substances process adopted identifying evaluating impacts risks opportunities related described annual financial report consolidated sustainability report detail esrs iro thanks process described therein casa moda examined connections identified impacts dependencies risks opportunities result impacts complete table double materiality results instead present section sbm material impacts risks opportunities interaction strategy business model esrs table list impacts risks opportunities relevant topic consumers end users description potential actual impact value chain time period sub topic sub sub topic reference negative impacts failed partial protection privacy personal data customers consumers potential downstream short term privacy protection children risks penalties compensation damage deriving compromise privacy integrity availability personal data due external factors suppliers responsible processing data data controller short term privacy penalties compensation damage deriving compromise privacy integrity availability personal data due internal factors short term litigation customers associations class action short term health safety responsible business practices negative effects group deriving products manufactured items lifestyle line comply brunello cucinelli quality standards potentially harmful end customer short term health safety inability group meet requests data subjects failure meet legal deadlines deletion access data rectification data withdrawal consent short term protection children partial accessibility shops people motor disabilities short term non discrimination access products services main instruments company uses evaluate risks end customers exposed double materiality analysis erm process well constant monitoring applicable regulatory changes particular concerns negative impacts please refer table annual financial report consolidated sustainability report table nature negative impacts consumers end users nature impact negative impact sub sub topic generalised systemic failed partial protection privacy personal data customers consumers privacy details please refer mapping impacts risks opportunities provided esrs iro disclo sure requirements esrs covered undertaking sustainability statements management impacts risks opportunities policies related consumers end users company bases behaviour also relations customers principles transparency reliability correctness integrity professionalism legality impartiality quality addition constant search quality garments casa moda committed ensuring products meet expectations requirements market compliance current laws particular attention safety furthermore group condemns use advertising communication tool aimed towards deceiving customers way quantity quality source origin offered products services prohibits practice misleading elusive incorrect advertising communi cations guaranteeing maximum transparency correctness regard company strictly observes provisions code ethics house procedures concerning relations customers providing accurate complete truthful information regarding contractual conditions terms including necessary privacy statement based courteous moderate non invasive communicative approach respects human dignity particular attention placed suggestions complaints received customers adopting behaviour based availability respect courtesy privacy line company vales principles therefore group committed ensuring maximum attention placed suggestions complaints received customers therefore provide timely feedback reports collected dedicated communication channels actively contribute towards orienting corporate decisions aim pre venting managing identified potential impacts please refer section mdr policies casa moda information concerning human relations policy provides guidelines practices dialogue end customers casa moda particular human relations policy prepared compliance guidelines united nations defines commitments regarding privacy non discrimination access products services sponsible business practices currently cited policy contain specific information concerning health safety security person protection children annual financial report consolidated sustainability report processes engaging consumers end users impacts relationship end customers developed face face meetings boutiques casa cucinelli sales spaces trunk shows dedicated events digital presence user experience corporate commerce website social media customised experiences solomeo customer ser vice newsletter instant messages phone calls video calls addition traditional channels mail telephone recent years fact new communication chan nels activated allow immediate dialogue customer care customer including live chat within online boutique instant messaging channels whatsapp wechat despite recog nised usefulness technologies individual remains cornerstone relationship customers also pleased see growing preference among customers tools promote human connection fact customers always select going boutique interacting customer care synchronous communication channels process dialoguing end customers regulated standards established human relations policy ref mdr policies casa moda processes remediate negative impacts channels consumers end users raise concerns casa moda adopted specific measures preventing potential negative impact defined adopted measures suitable mitigating risks deriving possible regulatory non compliance compromise personal data following loss theft destruction alteration collected information compliance european standard data protection company guarantees safeguarding privacy protection personal data customers thanks support data protection officer dpo furthermore order report concerns related privacy casa moda provided tools privacy policy whistleblowing channel information concerning privacy please refer paragraph processes remediate negative impacts channels workers raise concerns information concerning whistleblowing refer corporate culture business conduct policies casa moda guarantees support customers worldwide crm customer care channels use boutiques customary induction meetings continued new crm resources well boutique staff store managers client advisors one one talks conducted corporate offices considered strategic terms processing personal data end customers furthermore channels monitored performance analysis house crm channels indicated company offers customer care service different languages operates sites located solomeo new york shanghai allows guarantee service aligned needs cus tomers different time zones geographical areas guaranteeing functionality different fices approach tone voice contacts end customers world furthermore whistleblowing channel provides secure confidential method reporting violations incorrect behaviours accessed publicly directly corporate website ref corporate culture business conduct policies annual financial report consolidated sustainability report taking action material impacts consumers end users approaches managing terial risks pursuing material opportunities related consumers end users effectiveness actions casa moda adopted specific measures concerning privacy protection personal data end customers implementing structured model includes training privacy report monitoring request management initiatives involve company operations impact downstream value chain end customers worldwide indicated actions contribute towards reaching objectives defined group sustainability plan fully compliant gdpr process managing reports concerning privacy constantly monitored critical issues identified confirming effectiveness implemented system mitigate relevant risks concerning privacy specific training developed offices directly volved managing personal data customers regard non discrimination access products services measures required regulation implemented order ensure inclusive purchasing experience function dpo performs central role preventing relevant negative impacts line privacy policy ref mdr policies casa moda serious problems incidents reported concerning human rights connected end customers information privacy protection personal data refer paragraphs related confidentiality protection personal data covered chapter workforce metrics targets targets related managing material negative impacts advancing positive impacts managing material risks opportunities casa moda fixed specific targets concern end customers information concerning sustainability plan refer paragraph sbm strategy business model value chain sustainability plan harmony creation annual financial report consolidated sustainability report governance information business conduct governance gov role administrative management supervisory bodies role corporate governance fundamental proper responsible performance company activities ensuring creation sustainable shared value long term company corporate governance system complies called traditional model made following bodies shareholders meeting board directors bod board statutory auditors external auditors addition supervisory board pursuant legislative decree board directors plays central role company organisation responsible defining pur suing strategic targets group ensuring existence controls necessary monitoring performance pursuant art articles association board directors responsible ordinary extraordinary management company purpose granted widest powers administration exception reserved law articles association shareholders meeting addition powers law according articles association reserved board direc tors including responsibilities indicated paragraph four art italian civil code board directors following responsibilities definition strategic industrial financial plans com pany group approval forecast budget company group approval agreements making decisions strategic nature regarding brunello cucinelli well companies part group also monitors update measures adopted within scope human sustainability performs functions examining periodic reports particular upon approval strategic plans board also promotes dialogue shareholders relevant stakeholders bod currently members whose term office started appointment shareholders meet ing april remain office approval company financial statements decem ber members supervisory board appointed time remain office effective date bod directors appointed according principles diversity guaranteeing gender balance competence managerial professional including international nature valorising dif ferent physical psychophysical abilities well different age groups seniorities independence annual financial report consolidated sustainability report shareholders meeting introduced discipline increased voting rights april stakeholders involved process appointing selecting members board directors inviting present slates candidates submitted shareholders meeting entrepreneur brunello cucinelli holds role executive chairman company well creative director strategic supervision functions management representation powers aimed real isation coordination supervision strategic direction company group chairman supported camilla cucinelli carolina cucinelli appointed vice chairman company july two people hold position chief executive officer ceo company ric cardo stefanelli luca lisandroni two chief executive officers different duties responsibilities riccardo stefanelli charge activities production operations area including production logistics quality control property management research development luca lisandroni charge mar kets therefore presides distribution network retail wholesale commerce marketing activities members board directors currently office include managers company independent directors many years experience expertise fashion luxury sector listed companies carrying functions board directors assisted two board committees provide advice make proposals specifically preliminary analysis control risk committee crc supports assessments decisions bod concerning internal control risk management system icrms least occasion bod approval annual semi annual financial reports committee must report board activities specifically opinion adequacy icrms moreover together financial reporting officer assists bod preparing approving compa accounting documents notably assessing correct application accounting standards crc also operates related party transactions committee particular remuneration appointments committee periodically assesses suitability concrete application remuneration policy presents proposals opinions bod regarding remuneration formulates opinions bod regarding optimal composition latter committees introduction increased voting rights made possible company encourage medium long term investments promote stability shareholding group providing shareholders intend invest longer term greater say company decisions furthermore board directors believes increased voting rights mechanism suitable countering negative effects resulting possible volatility stock connected short termism annual financial report consolidated sustainability report council human sustainability humanistic capitalism set aim integrating sus tainability business operations definition strategies including based analysis materiality factors may affect generation value long term investigative functions propositional advisory nature evaluation decision making processes concerning sustainability issues task support board directors coordinating activities disseminating culture human sustainability humanistic capitalism within group specifically council responsible bringing attention board directors board com mittees policies based principles human sustainability sustainable success take account particular ethics protection human rights care protection environment balanced relationship creation protection promotion diversity board statutory auditors responsible supervising compliance law articles sociation compliance principles proper administration current board statutory auditors appointed shareholders meeting april term office end approval company financial statements december establishment council human sustainability humanistic capitalism mile stone formalising management sustainability group council type steering committee mixed structure formed employees directors company well company chairman brunello cucinelli chairs council council human sustainability humanistic capitalism also directly responsible implementing coordinating monitoring updating contents human sustainability policy well implement ing sustainability plan promotes continuous integration national international best practices company sustainability governance environmental social governance factors corporate strategies monitoring group positioning respect financial markets sustainability issues initiatives aimed local communities stakeholders operational level council supported cross functional working team sustainability human sustainability team also plays proactive advisory role area council bod within scope implementation sustain ability plan coordinates monitors progress objectives targets set plan consultation corporate functions directly involved reporting chief executive officers ceos ultimate responsibility strategic decisions sustainability initiatives lies bod management impacts risks opportunities esrs iro description processes identify assess material impacts risks opportunities process adopted identifying evaluating impacts risks opportunities related described detail esrs iro thanks process described therein casa moda examined connections identified impacts dependencies risks opportunities result impacts complete table double materiality results instead present section sbm material impacts risks opportunities interaction strategy business model esrs annual financial report consolidated sustainability report table list impacts risks opportunities relevant topic business conduct description potential actual impact value chain time period sub topic sub sub topic reference negative impacts failure observe along supply chain practices necessary guarantee respect animal welfare potential upstream medium term animal welfare harm interests investors due market abuses potential operations medium term accidents positive impacts positive current long term impact artisan laboratories collaborate group relation business volumes higher rest market casa moda generates generated also periods crisis actual upstream short term management supplier relations risks acts corruption relations public authorities inspection agencies customs agency revenue office private authorities suppliers intermediaries medium term company culture compromise image reputation brunello cucinelli brand due supplier small craft enterprise activities violate applicable standards additional commitments taken group ensure animal welfare medium term animal welfare offence abuse privileged information insider trading medium term accidents corporate culture business conduct policies line commitment casa moda promote ethical business culture developed corruption policy tool guarantees ethical business management application principles compliance laws honesty transparency correctness good faith policy expresses corporate provisions aimed combating corruption promoting dissemination responsible aware culture preventing discouraging commission unlawful conduct levels employees informed adoption anti corruption policy furthermore procedures pursuant art bis consolidated law finance tuf also referenced model published company intranet available group employees specific training yet provided anti corruption policy job training regarding specific procedures pursuant law legislative decree anti corruption policy well model referenced also contracts main suppliers external collaborators including small craft enterprises company objective also communicate contents principles model bound employment relationships contribute even occasionally toward achieving targets casa moda virtue contractual relationships annual financial report consolidated sustainability report according specified model company relation offences specified articles legislative decree functions company greatest risk corruption bribery excluding cases private parties chief executive officers administration finance control human resources production facility management legal corporate affairs incidents occurred regard commitment casa moda promote business culture also seen adoption clear transparent mechanisms identifying reporting managing concerns regarding illegal behav iour behaviour aligned company code conduct similar internal regulations particular whistleblowing procedure represents central instrument casa moda regulates possibility everyone physical legal persons contractual relationships company report complaints improper conduct conflicting principles provisions con tained company documents reports may made anonymously name latter recommended order allow effective efficient investigation always ensuring complete protection whistleblower anyone cooperating investigation acts retaliation internal audit manager appointed person receive reports manage duty involve supervisory board required case internal audit manager one people involved report platform permits forwarding report directly board statutory auditors multiple channels provided reporting mail physical letter registered letter whistleblow ing notification application accessed corporate governance whistleblowing section group investor site anac web portal etc report management model adopted company guarantees users channels including workers protected retaliation model extended subsidiaries adopted whistleblowing procedure pursuant applicable regulations bod receives reports regarding actions facts abstractly qualified relevant information flows supervisory body pursuant legislative decree bod report relevant critical issues pursuant legislative decree information flows internal audit function control risk committee board statutory auditors bod critical issues may communicated highest governing body ceos competent tablishment maintenance icrms per corporate governance code well information flows coming directly indirectly corporate functions particular communication training activities related model adapted according recip ients implemented according principles completeness clarity accessibility continuity permit full awareness company provisions must observed well ethical rules must inspire conduct everyone training takes place periodic meetings organised supervisory board company employees could potentially commit type predicate offence consideration occasions also allow depth examination impact relevant regulations company busi ness annual financial report consolidated sustainability report finally even though specific policies concerning animal welfare available casa moda attributes great value traceability production chain constant dialogue local communities relation ship trust created time suppliers latter perform periodic inspections farms monitor quality standards ensure compliance best raw material selection practices ref environmental poli policies related climate change mitigation adaptation management supplier relations purchase raw materials company works companies proven reliability authentic multi year partnership developed based strong complementarity knowledge mutual respect reference instead external production structure short production chain promoted located exclu sively italy comprised small medium sized artisan companies selected based skills tradition territory half work exclusively casa moda years group witnessed progressive growth size laboratories collabo rates well increase share work reserved group artisan companies work multiple customers artisan laboratories recorded time growth business volumes group exceeds rest market well stability production orders also period pandemic crisis concerns payment practices business partners group makes payments suppliers compli ance times defined contractual agreements careful selection phase basis solid trust based relationship connects casa moda suppliers furthermore contract stipulation company shares framework agreement contains rules conduct must observed well specific commitments duties regarding environmental social issues line group values principles ref esrs sbm impacts risks opportunities interaction strategy business model objective reinforcing processes managing relationship raw material suppli ers casa moda started activity targeted mapping order collect primary qualitative quan titative data concerns furthermore completely digitalised process aims monitor compliance level maturity also environmental social ethical point view project started continued involves suppliers covering approximately raw materials furthermore guarantee precise monitoring environmental footprint raw materials activities performed check emission impact sample involved suppliers included suppliers reference small craft enterprises workshop supplier information function continu ing usual activities checking compliance point view continuous constant monitoring increased workforce purpose guarantee necessary increase constant monitoring production chain annual financial report consolidated sustainability report small craft enterprises audited year small craft enterprises currently work still within audit scope december remaining small craft enterprises audit interrupted following termi nation business relationship confirmation effectiveness activities carried thanks new structure new non con formities found added already identified previous year total positions analysed collaborative spirit characterises compliance activity makes possible identify agree plans remediation year small craft enterprises relative non conformities com pletely resolved one cases fact relationship first temporarily suspended reacti vated february thanks implementation effective plan remediation small craft enterprise cases instead non conformity discovered made necessary stop collaboration relationship remaining cases depth progressive assessment still progress determine adjustment path proposed small craft enterprises satisfies necessary compliance criteria prevention detection corruption bribery system preventing identifying managing allegations cases corruption bribery regulated whistleblowing procedure whose reporting mechanism detailed information found paragraph company promotes knowledge whistleblowing policy recipients publication company website furthermore order promote knowledge policy human resources office group ensure distributed effectively possible publishing company intranet specified sustainability plan company designed started new training program con cerning ethical business conduct privacy anti corruption combining face face training learning instruments also direct participation supervisory body pursuant legislative decree specifically starting whistleblowing course made available group sympo elearning platform aims make employees aware ethical conduct prevention corruption reporting illegal acts showing user use channel submitting reports absolute protection confidentiality whistleblower annual financial report consolidated sustainability report following table shows number functions risk included training programs percentage participation respect total functions table functions risk training unit measurement number functions risk included training programs total functions risk percentage functions risk considered training programs metrics targets confirmed incidents corruption bribery group operates national international market full compliance national antitrust regulations annual monitoring processes carried casa moda identify cases non com pliance regarding corruption also thanks controls implemented group also convictions violations law confirmed incidents corruption bribery year progress please refer section mdr targets casa moda information members administrative management supervisory bodies involved training programs annual financial report consolidated sustainability report entity specific generational transition strategy esrs sbm material impacts risks opportunities interaction strategy business model management generational transition within corporate governance represents fundamental topic casa moda whose philosophy contemplates ability continue generating value long term process adopted identifying evaluating impacts risks opportunities related described detail esrs iro thanks process described therein casa moda examined connections identified impacts dependencies risks opportunities result impacts complete table double materiality results instead present section sbm material impacts risks opportunities interaction strategy business model esrs company strategy concerning generational transition directed towards guaranteeing harmonious transition coherent founding values casa moda careful forward looking planning company adopts succession model balances experience innovation ensuring brand conti nuity conserving distinctive identity intention manage generational transition following two main pillars first called generational pact makes possible replace key management figures advance guaranteeing competitiveness stability market time second called safeguarding pact ensures unity management entrepreneurial vision casa moda future table list impacts risks opportunities relevant topic generational transition topic generational transition description potential actual impact value chain time period sub topic sub sub topic reference risks compromise brand positioning result inadequate management generational transition operations medium term management impacts risks opportunities mdr policies governance report provides detailed information generational transition illustrating strat egies structures adopted casa moda guarantee harmonious transition coherent founding values information please refer governance report published investor website casa moda annual financial report consolidated sustainability report mdr actions resources board directors defined guidelines program called generational transition aims facilitate succession positions responsibility important offices make company organisational structure selection hiring training new generation managers objective program train young prepared highly motivated employees thereby fulfilling purposes conserving company knowledge providing continuity company management program requires company employee manager office participate training initia tives tutoring programs favour workers office among identify second charge following three year probationary period become office manager investiture young employee role second charge guarantee future appointment fact program foresees appointment candidate manage office takes place manager reaches age process applies also selection candidates positions ceo chief executive officer cfo chief financial officer coo chief operating officer particular without prejudice authority board directors concerning delegation duties candidate position ceo must selected within company management end probationary period possible suitably test aptitude skills candidate role high amount responsibility unlike positions mandatory handover position age apply ceo company time preserve unity company management time brunello cucinelli established irrevocable trust transferring entire share equals share capital foro delle arti esperia trust company banca esperia group trust established ensure entrepreneur ial initiatives started entrepreneur brunello cucinelli transferred future descendants aid trustee responsible implementing intentions full continuity activities carried guaranteeing unity cohesion company management direct beneficiaries trust daughters camilla carolina cucinelli document also foresees appointment committee experts comprised five members two daughters aid trustee mainly advisory role trust also ensures continuation non profit activities social cultural interest promoted entrepreneur compliance philosophy life love italy commitment territory umbria trust change rules corporate governance assigned powers responsibilities within brunello cucinelli annual financial report consolidated financial statements financial statements december annual financial report consolidated financial statements consolidated statement financial position december euro notes december related parties december related parties non current assets right use intangible assets property plant equipment investment property non current financial lease receivables non current financial assets deferred tax asset non current derivative financial assets total non current assets current assets inventories trade receivables tax receivables receivables current assets current financial lease receivables current financial assets cash cash equivalents current derivative financial assets total current assets total assets shareholders equity annual financial report consolidated financial statements euro notes december related parties december related parties shareholders equity attributable parent company shareholders share capital share premium reserve reserves net profit attibutable parent company shareholders total shareholders equity attributable parent company shareholders shareholders equity attributable non controlling interest capital reserves attributable non controlling interests net profit attributable non controlling interests total shareholders equity attributable non controlling interest total shareholders equity non current liabilities employee benefit liabilities provisions risks charges non current payables towards banks non current financial lease liabilities non current financial liabilities non current liabilities deferred tax liabilities non current derivative financial liabilities total non current liabilities current liabilities trade payables current payables towards banks current financial lease liabilities current financial liabilities income tax payables current liabilities current derivative financial liabilities total current liabilities total liabilities total shareholders equity liabilities annual financial report consolidated financial statements consolidated income statement december euro year ended notes december related parties december related parties revenues costs raw materials consumables costs services payroll costs operating expenses operating income costs capitalized depreciation amortization impairment assets accruals total operating costs operating income financial expenses financial income profit taxes income taxes net profit net profit attibutable parent company shareholders net profit attributable non controlling interests basic earnings per share euro per share diluted earnings per share euro per share annual financial report consolidated financial statements consolidated statement comprehensive income december euro year ended notes december december net profit items comprehensive income items comprehensive income later reclassified income statement cash flow hedge tax effect effect changes cash flow hedge reserve translation differences foreign financial statements profit losses net investment foreign operation tax effect items comprehensive income later reclassified income statement remeasurement defined benefit plans ias tax effect total comprehensive income net tax total comprehensive income net tax attributable parent company shareholders non controlling interests annual financial report consolidated financial statements consolidated cash flow statement december euro year ended notes december december cash flow operating activities net profit adjustments reconcile net income period cash flows generated used operating activities income tax depreciation amortization provisions employee benefit liabilities provisions risks charges bad debts impairment assets change non current liabilities gain loss disposal fixed assets gain loss participations non monetary items ifrs interest expense interest lease liabilities interest income interest lease assets payment employee benefit liabilities payments provisions risks charges net change deferred tax assets liabilities change fair value financial instruments changes operating assets liabilities change trade receivables change inventories change trade payables interest expense paid interest lease liabilities paid interest income received interest lease assets received income taxes paid change current assets liabilities net cash flow provided used operating activities annual financial report consolidated financial statements euro year ended notes december december cash flow investing activities investments property plant equipment investments intangible assets investments non current financial assets investments property changes scope consolidation disinvestments non current financial assets disposal property plant equipment net cash flow provided used investing activities cash flow financing activities long term loans received repayment long term loans net change short term financial debt net change long term financial debt lease liabilities payments lease receivables collections dividends paid purchase treasury shares net cash flow provided used financing activities total cash flow period effect exchange rate changes cash cash equivalents cash cash equivalents beginning period cash cash equivalents end period annual financial report consolidated financial statements consolidated statement changes shareholders equity december euro notes share capital legal reserve additional paid capital translation reserve reserves net profit total shareholders equity attributable parent company shareholders total shareholders equity attributable non controlling interests total shareholders equity balance january net profit items consolidated statement comprehensive income total comprehensive result allocation profit year dividends paid stock grant reserve assignment treasury shares purchase treasury shares changes balance december euro notes share capital legal reserve additional paid capital translation reserve reserves net profit total shareholders equity attributable parent company shareholders total shareholders equity attributable non controlling interests total shareholders equity balance january net profit items consolidated statement comprehensive income total comprehensive result allocation profit year dividends paid deconsolidation brunello cucinelli denmark aps stock grant reserve assignment treasury shares changes balance december annual financial report consolidated financial statements explanatory notes consolidated financial statements december annual financial report consolidated financial statements basis preparation content form consolidated financial statements consolidated financial statements brunello cucinelli group prepared going concern basis compliance international financial reporting standards ifrs issued international counting standards board iasb endorsed european union force date financial statements ifrs understood also reviewed international accounting standards ias interpretations international financial reporting interpretations committee ifric previously known standing interpretations committee sic notes consolidated financial statements supplemented additional information quested consob measures issued implement article italian legislative decree resolutions july communication dem july pur suant article issuers regulation document november applicable italian civil code consolidated financial statements december prepared accordance article ter italian legislative decree well relevant provisions consob comprise consol idated statement financial position consolidated income statement consolidated statement compre hensive income consolidated cash flow statement consolidated statement changes shareholders equity well notes march board directors brunello cucinelli approved draft consolidated financial statements ordered made available public manner within time envisaged provisions laws regulations force consolidated financial statements audited pricewaterhousecoopers accordance legislative decree execution shareholders resolution april consolidated financial statements presented euro currency used parent company brunello cucinelli figures rounded thousands euro unless otherwise indicated items consolidated statement financial position presented order liquidity non current assets consist items expected recovered months current assets consist items expected recovered months non current liabilities consist items expected settled twelve months including provisions risks charges employees termination indemnities current liabilities include payables expected settled group normal operating cycle months following end year format consolidated income statement classifies revenues costs nature consolidated cash flow statement prepared using indirect method presented accordance ias classifying cash flows operating activities investment activities financing activities consolidated financial statements prepared basis historical cost principle taking account value adjustments appropriate exception items according ifrs must measured fair value annual financial report consolidated financial statements note reference consob resolution july communication dem july financial statements present information significant related party transactions order provide complete disclosure income expense arising non recurring events transactions significant shown separately comments provided management financial disclosures scope consolidation consolidated financial statements present financial position results cash flows parent compa brunello cucinelli italian foreign subsidiaries together identified brunello cucinelli group december consolidated financial statements prepared basis accounting situations com pany subsidiaries suitably adjusted comply ifrss control obtained group exposed rights variable returns involvement vestee ability affect returns power investee specifically group control entity following power investee meaning existing rights give current ability direct relevant tivities activities significantly affect investee returns exposure rights variable returns involvement investee ability use power investee affect amount returns group holds less majority voting rights similar rights considers facts cir cumstances relevant establishing whether controls investee including contractual agreements holders voting rights rights resulting contractual agreements group voting rights potential voting rights group reassesses whether controls investee facts circumstances indicate changes one three elements control group consolidates subsidiary date gains control subsidiary date control ceases assets liabilities revenues expenses subsidiary acquired disposed period included group consolidated statement comprehensive income date gains control date longer exerts control intercompany balances transactions including unrealised profits losses deriving transactions companies brunello cucinelli group eliminated acquisitions subsidiaries recognised purchase method involves allocation cost business combination fair value assets liabilities contingent liabilities acquired acquisition date inclusion result acquired company acquisition date end period annual financial report consolidated financial statements profits equity attributable non controlling interests represent part profit loss equity relating net assets held parent company shareholders shown consolidated income statement consolidated statement comprehensive income consolidated statement financial position sepa rately result equity group december brunello cucinelli group stakes joint ventures defined contractual arrangement whereby two parties undertake economic activity subject joint con trol pursuant ifrs far equity investments associate companies concerned companies group holds least voting rights exercises significant influence financial operating policies control joint control december group holds equity investment share capital cariaggi lanificio registered office cagli italy share capital thousand following table provides summary information company subsidiaries associate companies december consisting company name registered office percentage share capital held directly indirectly brunello cucinelli group company name location currency share capital currency controlling interest direct indirect equity investments subsidiaries brunello cucinelli europe corciano solomeo hamlet italy euro max vannucci corciano italy euro pinturicchio corciano solomeo hamlet italy euro logistica distribuzione milan italy euro dorica vestis corciano solomeo hamlet italy euro brunello cucinelli austria gmbh vienna austria euro sprl brunello cucinelli belgium brussels belgium euro brunello cucinelli england ltd london united kingdom pound sterling sarl brunello cucinelli france paris france euro sas brunello cucinelli france resort paris france euro brunello cucinelli gmbh düsseldorf germany euro brunello cucinelli hellas athens greece euro sam brunello cucinelli monaco principality monaco euro ooo brunello cucinelli rus moscow russia rouble brunello cucinelli retail spain madrid spain euro brunello cucinelli suisse lugano switzerland swiss franc brunello cucinelli canada ltd vancouver canada canadian dollar annual financial report consolidated financial statements company name location currency share capital currency controlling interest direct indirect brunello cucinelli usa inc ardsley usa dollar market service inc new york usa dollar brunello cucinelli sichuan fashion ltd chengdu china renminbi brunello cucinelli hong kong ltd hong kong china hong kong dollar brunello cucinelli macau fashion ltd macao china mop hong kong dollar brunello cucinelli japan ltd tokyo japan japanese yen brunello cucinelli singapore pte ltd singapore singapore dollar brunello cucinelli taiwan ltd taipei china taiwan dollar brunello cucinelli middle east llc dubai united arab emirates dirham brunello cucinelli kuwait readymade novelty clothes retail wll kuwait city kuwait kuwaiti dinar equity investments associate companies cariaggi lanificio cagli italy euro percentage ownership held virtue voting agreements minority shareholder scope consolidation saw entry dorica vestis small workshop group holds share capital addition indicated group purchased residual minority share brunello cucinelli hellas independent third party minority share brunello cucinelli japan ltd also independent third party operations concerned companies already consolidated line line basis based check performed group result generate variation pre existing scope consolidation sake completeness finally noted company raffaello merged incorpo ration company pinturicchio annual financial report consolidated financial statements accounting standards introduction consolidated financial statements prepared accordance general criteria reliable truthful presentation group financial position results operations cash flows compliance general principles going concern accrual basis accounting consistency presentation relevance aggregation prohibition offsetting comparability information discretional assessments significant accounting estimates accordance applicable accounting standards preparation consolidated financial statements brunello cucinelli group requires directors company make discretionary assessments estimates assumptions based complex subjective judgements historical experience factors believed reasonable respect present circumstances knowledge available balance sheet date use accounting estimates affects carrying amount assets liabilities disclo sure contingent assets liabilities balance sheet date well amount revenues expenses reporting period actual results may differ estimated due uncertainty surrounding assumptions conditions estimates based estimates associated assumptions revised ongoing basis main processes used making discretionary estimates measurements relate recognition measurement following items depreciation amortization rights use intangible assets property plant equipment depreciation amortization rights use intangible asset property plant equipments finite useful life require discretionary estimates made directors estimates reviewed every balance sheet date ensure carrying amounts reflect best estimates costs incurred group case significant variations amounts revised updated right use asset lease liability ifrs following initial application ifrs significant accounting estimates made respect identification lease term particular reference measurement effects renewal option end non cancellable period assessment commercial practice regarding prop erty leases existing various legislations determination discount rate leases containing implicit interest rate particular group calculated incremental borrowing rate ibr used discount future lease payments iden tifying country portfolio lease agreements similar features determining relative ibr rate risk free instrument respective country lease agreement stipulated based various contractual deadlines increased group credit spread annual financial report consolidated financial statements deferred tax assets deferred tax assets recognised deductible temporary differences carrying amounts assets liabilities financial statements corresponding tax bases unused tax losses extent probable sufficient taxable profit available losses utilised rectors required make discretionary assessment determine amount deferred tax assets recognised based estimate likely timing amount future taxable profits recoverable amount non financial assets recoverability non financial assets tested events changes circumstances indicate carry ing amount recoverable events may lead write non financial assets changes business plans changes market prices may result lower operating performance least annually goodwill intangible assets indefinite useful life order evaluate indication asset may lost value company management considers information coming external information sources well internal information sources decision whether recognise impairment loss quantification impairment loss depend management assessment complex uncertain factors including changes discount rates impact inflation forecasts global regional supply demand conditions impact legislative regulatory changes etc definition cgus identification appropriate level grouping cgus purpose assessing recoverability non financial assets requires management judgement fact cgus defined considering among things ways management controls operating activities legal entities makes decisions keeping company assets activities operational disposing expected cash flows used determine recoverable amount quantified light information available time estimate basis subjective judgements performance future variables prices costs demand growth rates production profiles discounted using rate takes account risk inherent asset concerned regard impairment test see paragraph impairment notes consolidated financial statements employees termination indemnities supplementary termination indemnity provision valuation employees termination indemnities agents termination indemnity provision done using actuarial valuations valuations require assumptions made discount rates future wage creases employees termination indemnities staff turnover mortality rates long term nature plans estimates subject degree uncertainty allowance bad doubtful debts allowance bad doubtful debts represents management best estimate amount required adjust receivables estimated realisable value basis information available date preparation financial statements group uses simplified approach recognises expected losses trade receivables basis residual duration establishing criterion determining allowance based past loss experience individual group companies adjusted also take account specific forecasting factors relating creditors economic environment amount expected losses sensitive changes circumstances expected economic conditions annual financial report consolidated financial statements value adjustments inventories provision inventory write downs reflects management estimate expected loss value materials products past seasons taking account expected use realisable value determination value provision also takes account donation programme related brunello cucinelli humanity project derivative financial instruments measurement derivative instruments recognised assets liabilities requires use estimates assumptions way fair value determined risk inherent derivative contracts hedge cur rency risk interest rate risk managed illustrated specific paragraph derivatives notes estimates assumptions considered reviewed constantly effects changes recognised immediately financial statements estimates assumptions made directors support corporate functions appropri ate independent professionals reviewed periodic basis share based payments share based payments require estimates made respect fair value instruments granted likelihood realising vesting conditions attached estimates made management periodically updated business combinations goodwill business combinations recorded using acquisition method consideration transferred business combination determined date control assumed equal fair value assets transferred liabilities incurred equity instruments issued acquirer consideration transferred also includes fair value contractually agreed contingent consideration assets liabilities contingent occurrence future events costs directly attributable transaction recognised income statement incurred date control acquired shareholders equity investee companies determined attributing individual identifiable elements assets liabilities fair value except cases ifrs provisions establish different measurement criterion difference consideration paid fair value net assets acquired positive recognised goodwill negative recognised income statement case assumption control total portion shareholders equity non controlling interests determined basis share current values attributed assets liabilities date assumption control excluding goodwill attributable control assumed stages acquisition cost termined adding fair value previously held equity interest acquiree amount paid additional stake difference fair value investment previously held carrying amount recognised income statement furthermore upon assumption control amounts previously recognised comprehensive income recognised income statement another shareholders equity item reversal income statement envisaged values acquiree assets liabilities determined provisionally period business combination completed recognised values adjusted retrospectively later months annual financial report consolidated financial statements acquisition date take account new information facts circumstances existed acquisition date purpose consistency analysis acquisition date goodwill acquired business combination allocated individual cash generating units group groups cash generating units bene fit synergies combination regardless whether assets liabilities group assigned units groupings units unit group units goodwill allocated represents lowest level within group goodwill monitored internal management purposes broader segments identified basis group sector reporting format determined basis ifrs operating sectors goodwill part cash generating unit called group cash generating units part inter nal business unit sold goodwill associated asset sold included carrying amount asset determine gain loss arising sale goodwill sold circumstances measured basis relative values asset sold portion unit held sale concerns subsidiary difference sale price net assets plus accumulated translation differences goodwill recognised income statement equity investments associate companies associate company group exercises significant influence significant influence means power participate determining financial operating policies investee without control joint control thereover considerations made determine significant influence similar required determine control subsidiaries group investments associate companies valued using equity method equity method investment associate initially recognised cost carrying amount investment increased decreased recognise investor share investee profits losses realised acquisition date goodwill pertaining associate included carrying amount investment subject separate impairment test statement profit loss year reflects group share associate profit loss year changes components consolidated statement comprehensive income relating investees presented part group consolidated statement comprehensive income furthermore associate company recognises change direct charge shareholder equity group recognises share group recognises share applicable consolidated statement changes shareholders equity unrealised gains losses arising transactions group associate companies eliminated proportion share held associate companies group aggregate share associate profit loss year recognised statement profit loss year operating income loss represents net profit loss tax share associate shareholders annual financial report consolidated financial statements financial statements associate companies prepared date group financial statements necessary financial statements adjusted bring line group accounting standards subsequent application equity method group assesses whether necessary recognise impairment investment associate companies group assesses financial statement date wheth objective evidence investments associates impaired case group calculates amount loss difference recoverable amount associate carrying amount associate financial statements recognises difference statement profit loss year item effects valuation investments using equity method upon loss significant influence associate group measures recognises residual investment fair value difference carrying value investment date loss significant influence fair value residual investment consideration received recognised income statement operations common control business combinations involving entities common control merely reorganizational nature recognised going concern basis financial statements companies involved without recognising economic effects intangible assets intangible assets capitalised acquisition cost probable use asset generate future economic benefits cost measured reliably intangible assets acquired business combinations recorded fair value defined acquisition date value reliably determined internally generated intangible assets capitalised related expenditure reflected income statement period expenditure incurred intangible assets finite useful life amortised straight line basis estimated useful life subject impairment tests whenever indications possible impairment following rules scribed residual useful life reviewed end year frequently necessary changes expected useful life manner future economic benefits related intangible asset achieved group recognised modifying period amortization method treated changes account ing estimates amounts amortization intangible assets defined life recognised income statement cost category consistent function intangible asset intangible asset eliminated time disposal date buyer gains control future economic benefit expected flow use disposal profit loss deriving elimination asset calculated difference net consideration disposal book value asset included income statement annual financial report consolidated financial statements estimate useful life intangible assets finite useful life follows years trademarks software licenses intangible fixed assets concessions licences trademarks item classified intangible assets includes costs incurred registration group trade marks research development costs research costs allocated income statement year incurred development costs incurred given project recognised intangible assets group demonstrate technical possibility completing intangible asset available use sale intention complete asset capacity intention use sell manner asset generate future economic benefits income sale products services cost savings benefits deriving use asset availability resources complete asset ability reliably measure cost attributable asset development initial recognition developed assets measured decreased cost accumulated amortization pairment losses amortization assets begins development complete asset available use developed assets amortised regard period expected benefits development period asset audited annually impairment property plant equipment property plant equipment acquired separately recognised historical cost including ancillary costs direct attributable necessary putting asset service use purchased cost includes costs replacing part machinery systems incurred comply recogni tion criteria regard buildings historical cost represented fair value determined date transition ifrs january permitted ifrs shown net depreciation impairment losses property plant equipment acquired business combinations recognised fair value determined acquisition date costs improvements modernisation transformation tangible assets recognised assets probable increase expected future economic benefits asset annual financial report consolidated financial statements maintenance repair costs likely enhance prolong residual life assets recog nised year incurred otherwise capitalised property plant equipment shown net accumulated depreciation impairment losses determined described depreciation calculated straight line basis estimated useful life asset company estimate period asset used depreciation property plant equipment begins asset ready use location condition necessary capable operating manner intended value depreciated represented carrying amount reduced presumed net disposal value end useful life significant reasonably determinable changes depreciation schedule aris ing revision useful life asset residual value manner economic benefits asset obtained recognised prospectively non removable leasehold improvements depreciated shorter useful life improvements lease term estimate useful life main classes tangible assets follows years buildings leasehold improvements based duration lease plant machinery industrial commercial equipment assets components property plant equipment different useful lives components accounted separately land whether free annexed buildings recognised separately depreciated indefinite useful life book value property plant equipment subjected verification order detect possible pairment events changes situation indicate carrying amount cannot recovered following rules described book value item property plant equipment significant component initially recognised eliminated time disposal date buyer gains control future eco nomic benefit expected flow use disposal profit loss emerges time accounting elimination asset calculated difference net book value asset consideration received recognised income statement item eliminated accounting annual financial report consolidated financial statements collection archive collection company holds one garment item considered significant saleable products used source inspiration style office creating new collections assets classified property plant equipment recorded historical production cost depre ciated years increases value assets recorded income statement item increases fixed assets internal works investment property according ias tangible assets held income operations classified special class called investment property accounted cost assets included category consist land buildings parts buildings held owner lessee financial operating lease agreement purpose leasing types properties classified separately properties owned investment property shown net accumulated depreciation impairment losses useful life group investment property years book value investment property subjected audit order detect possible impairment events changes situation indicate carrying amount cannot recovered losses accounted income statement item impairment assets accruals losses value restored reasons generated cease exist investment properties eliminated financial statements sold date buyer gains control investment permanently unusable future economic benefits expected flow sale amount consideration taken account determining gain loss arising cancellation investment property determined accordance requirements determining price transaction ifrs non current assets held sale non current assets held sale classified book value asset recovered mainly sale rather continuous use occur asset must available immediate sale current condition subject conditions customary sale assets sale must highly likely non current assets held sale initially recognised lower carrying amount classified held sale fair value net selling costs annual financial report consolidated financial statements leases signing contract group evaluates whether contains lease words contract confers right control use identified asset period time return consideration right exists contract gives lessee right manage asset obtain substantially economic benefits arising use group lessee group adopts single recognition measurement model leases except short term leases leases low value assets group recognises lease payment liabilities right use assets represent right use asset underlying contract right use assets group recognises right use assets date lease commences meaning date underlying asset available use right use assets measured cost less accumulated depreciation impairment losses adjusted remeasurement lease liability right use asset ini tially measured amount lease liability plus initial direct costs lease payments prior commencement less incentives received right use assets depreciated straight line basis effective date end useful life right use asset lease term determined taking account non cancellable period contract reasonable certainty also periods covered extension options related non exercise early termination options lease transfers ownership underlying asset lessee end lease term cost right use asset reflects fact lessee exercise purchase option lessee must depreciate right use asset effective date end useful life underlying asset financial closing date group assesses whether indications loss value rights use indications emerge impairment test performed lease liability date commencement lease group measures lease liability present value lease payments due lease yet paid date payments consist fixed payments including substance fixed payments less lease incentives receivable variable lease payments depend index rate amounts expected payable lessee residual value guarantees lease payments also include exercise price purchase option group reasonably certain exercise payments terminating lease lease term assumes group exercise lease termination option variable lease payments depend index rate recognised costs period unless incurred production inventories event condition generated payment occurs calculating present value payments due group uses marginal rate financing start date implicit interest rate easily determinable effective date amount lease liability increased take account interest lease liabilities decreases take account payments made carrying amount lease payables redetermined event changes lease revision contractual terms modification payments also redetermined event changes valuation purchase option underlying asset changes future payments resulting change index rate used determine payments annual financial report consolidated financial statements iii short term leases leases underlying asset low value group elected recognition exemption short term leases leases term months less date commencement containing purchase option group additionally elected recognition exemption low value leases underlying asset office equipment value considered immaterial lease payments short term leases low value leases recognised straight line basis profit loss lease term group lessor leasing contracts substantially leave risks rewards linked ownership asset group classified operating leases lease income operating leases must recognised straight line basis throughout lease term included among revenues income statement due operational nature initial negotiating costs added book value leased asset recognised basis duration contract basis rental income unexpected rents recognised revenues period accrue leases substantially transfer risks rewards ownership underlying asset classified nance leases finance leases exist group recognises receivable equal net investment lease consolidated statement financial position recognises finance income lease term basis reflects constant periodic rate return net investment lease interest rate used value net investment lease interest rate implicit lease case sub lease interest rate implicit sub lease cannot readily determined group uses discount rate main lease adjusted initial direct costs associated sub lease measure net investment sub lease impairment financial closing date group assesses whether indications loss value intangible assets right use property plant equipment non current financial assets indicators emerge impairment test performed carrying value assets exceeds recoverable value written reflect recovera ble value recoverable value higher fair value net cost disposal asset cash gen erating unit net cost sale value use determined individual asset except asset generates cash flows largely independent generated assets asset groups case group estimate recoverable value individual cash generating unit hereinafter also cgu asset belongs represented smallest identifiable set assets generate cash inflows largely independent generated assets determining value use group discounts present value expected future cash flows arising use cash generating unit material reasonably determinable disposal end useful life net disposal costs using pre tax discount rate reflects market assessments time value money risks specific asset annual financial report consolidated financial statements specifically discount rate used weighted average cost capital wacc adjusted specific country risk cash generating unit valued located waccs differentiated according riskiness expressed countries business operates expected cash flows determined basis reasonable supportable assumptions representing best estimate future economic conditions occur remaining useful life cash generating unit giving greater weight external indications purposes estimating value use future cash flows taken business plans approved board directors represent group best possible estimate based financial conditions plan period plan projections usually cover period three years long term growth rate used estimate terminal value asset unit determined basis average recent research financial community company future cash flows estimated referring current conditions estimates therefore take account benefits future restructuring operations company yet implemented future investments optimization business units book value asset cgu including goodwill attributed higher recoverable value asset suffered value impairment therefore written recoverable value impairment loss allocated first goodwill amount excess impairment loss goodwill allocated pro rata carrying amount assets constituting cash generating unit amount recoverable amount assets finite useful lives value impairments operational assets recognised income statement cost category consistent function impaired asset closing date group also assess whether indications previous value impairments reduced indicators exist estimate recoverable value value previously written asset may restored changes estimates used determine recoverable value asset final recognition loss value case book value asset changed recoverable value value thus increased may exceed book value would determined net depreciation loss value recorded previous years recovery value recorded income income statement recovery value recognised depreciation asset adjusted future years order distribute modified book value net residual values straight line basis remaining useful life impairment goodwill may recovered reason annual financial report consolidated financial statements financial instruments recognition valuation financial instrument contract gives rise financial asset one entity financial liability equity instrument another entity financial assets initial recognition valuation upon initial recognition financial assets classified appropriate according subsequent measurement method namely amortised cost fair value recognised consolidated statement comprehensive income fair value recognised income statement classification financial assets initial recognition depends characteristics contractual cash flows financial assets business model group uses management exception trade receivables contain significant financing component group applied practical expedient group initially measures financial asset fair value plus transaction costs case financial asset fair value income statement trade receivables contain significant financing component group applied practical expedient measured transaction price determined accordance ifrs subsequent valuation purposes subsequent measurement financial assets classified four categories financial assets amortised cost debt instruments financial assets fair value recognised consolidated statement comprehensive income reclassi fication accumulated gains losses debt instruments financial assets fair value recognised consolidated statement comprehensive income without rever sal accumulated gains losses time elimination equity instruments financial assets fair value recognised income statement financial assets amortised cost debt instruments financial assets classified category meet following requirements asset held business model whose objective asset purpose collecting contractual cash flows contractual terms asset provide cash flows consisting solely principal interest payments principal amount repaid mainly trade receivables financial assets assets trade receivables contain significant financial component recognised price defined related transaction determined accordance ifrs revenues contracts customers financial assets amortised cost subsequently measured using effective interest method subject impairment gains losses recognised income statement asset eliminated modified revalued group financial assets amortised cost include trade receivables security deposits annual financial report consolidated financial statements financial assets fair value oci debt instruments financial assets classified category meet following requirements asset held within context business model whose objective reached collecting contractual cash flows well sell ing asset contractual terms asset provide cash flows consisting solely principal interest payments principal amount repaid assets initially recognised balance sheet fair value plus incidental costs directly attrib utable transactions generated debt instrument assets measured fair value oci interest income changes due exchange differences impairment losses together adjustments recognised income statement calculated way financial assets measured amortised cost remaining changes fair value recognised oci upon elimination cumulative change fair value recognised oci reclassified income statement group debt instrument assets measured fair value oci include investments listed debt instruments included non current financial assets investments equity instruments initial recognition group may irrevocably choose classify equity investments equity instruments recognised fair value oci meet definition equity instruments accordance ias financial instruments presentation held trading classification determined indi vidual instrument gains losses achieved financial assets never reversed income statement dividends recognised income statement right payment approved except group benefits revenues recovery part cost financial asset case gains recognised oci equity instruments recorded fair value oci subject impairment tests group chosen irrevocably classify unlisted investments category financial assets fair value recognised income statement financial instruments fair value changes recognised income statement recognised consol idated statement financial position fair value net changes fair value recognised statement profit loss year category includes derivative instruments listed investments group irrevocably chosen classify fair value oci dividends listed investments recognised income statement profit loss year right payment established embedded derivative contained non derivative hybrid contract financial liability main non nancial contract separate main contract accounted separate derivative economic characteristics risks associated closely correlated main contract separate instrument terms embedded derivative would meet definition derivative brid contract measured fair value recognised income statement embedded derivatives measured fair value changes fair value recognised income statement restatement occurs change terms contract significantly changes cash flows otherwise expected reclassi fication financial asset category fair value income statement annual financial report consolidated financial statements derecognition financial asset applicable part financial asset part group similar financial assets first derecognised removed group consolidated statement financial position rights receive cash flows asset extinguished group transferred right receive cash flows asset third party assumed contractual obligation pay full without delay substantially transferred risks rewards ownership financial asset substantially transferred retained risks rewards asset transferred control cases group transferred rights receive cash flows asset entered agree ment maintains contractual rights receive cash flows financial asset assumes contractual obligation pay cash flows one beneficiaries pass throughs shall assess whether extent retained risks rewards inherent possession substantially transferred retained risks benefits lost control asset continues recognised group financial statements extent residual involvement asset case group also rec ognises associated liability transferred assets associated liabilities valued reflect rights obligations remain attributable group entity residual involvement guarantee transferred asset involvement measured basis lesser amount asset maximum amount consideration received entity may repay impairment group records write expected losses financial assets represented debt instruments held fair value recognised income statement specifically impairment provisions apply financial assets measured amortised cost fair value recognised consolidated statement comprehensive income whereas financial assets measured fair value recognised income statement excluded group uses simplified approach recognises expected losses trade receivables basis residual duration establishing criterion determining allowance based past loss experience individual group companies adjusted also take account specific forecasting factors relating creditors economic environment absence reasonable expectation recovery trade receivables fully written financial liabilities recognition initial valuation financial liabilities classified upon initial recognition financial liabilities fair value income state ment mortgages loans derivatives designated hedging instruments financial liabilities initially recognised fair value plus directly attributable transaction costs case mortgages loans payables group financial liabilities include trade payables payables mortgages loans including bank overdrafts financial derivatives annual financial report consolidated financial statements subsequent valuation purposes subsequent valuation financial liabilities classified two categories financial liabilities fair value recognised income statement financial liabilities amortised cost financing loans financial liabilities fair value recognised income statement financial liabilities fair value changes recognised income statement include liabilities held trad ing financial liabilities initially recognised fair value changes recognised income statement liabilities held trading assumed aim extinguishing transferring short term category also includes derivatives entered group designated hedging instru ments hedging relationship defined ifrs embedded derivatives separated main contract classified financial instruments held trading unless designated effective hedging instruments gains losses liabilities held trading recognised statement profit loss year financial liabilities recognised fair value income statement date first recognition criteria ifrs met initial recognition group designate financial liabilities fair value income statement financial liabilities amortised cost financing loans initial measurement financing measured using amortised cost criteria using method effective interest rate gains losses recognised income statement liability extinguished well amortization process amortised cost calculated taking account discount premium acquisition fees costs form integral part effective interest rate amortization effective interest rate included among financial expenses statement profit loss year category generally includes receivables interest bearing loans derecognition financial liability derecognised obligation underlying liability extinguished cancelled fulfilled existing financial liability replaced another provider substantially different conditions conditions existing liability substantially modified exchange modification treated derecognition original liability accompanied recognition new liability differences accounting values recorded statement profit loss year offsetting financial instruments financial asset financial liability offset net balance shown consolidated statement financial position current legal right offset recognised amounts intention settle net residual realise asset time settle liability annual financial report consolidated financial statements derivatives hedge accounting initial recognition subsequent valuation group uses derivative financial instruments including foreign currency forward contracts interest rate swaps hedge currency exchange risks interest rate risks respectively derivative financial instru ments initially recognised fair value date derivative contract entered subsequently remeasured fair value derivatives carried financial assets fair value positive financial liabilities fair value negative hedge accounting purposes three types hedges fair value hedge hedging exposure changes fair value asset recognised liability unrecognised irrevocable commitment cash flow hedge hedging exposure variability cash flows attributable particular risk associated recognised assets liabilities highly probable planned transaction foreign cur rency risk unrecognised irrevocable commitment hedges net investment foreign operation inception hedging transaction group formally designates documents hedging relationship intends apply hedge accounting risk management objectives strategy pursued documentation includes identification hedging instrument hedged item nature risk group assess whether hedging relationship meets requirements hedge effectiveness including analysis sources hedge ineffectiveness hedging relationship determined hedging relationship meets eligibility criteria accounting hedging transactions meets following hedging effectiveness requirements economic relationship hedged item hedging instrument effect credit risk prevail changes value resulting aforementioned eco nomic relationship hedging ratio hedging relationship resulting amount hedged item group actually hedges amount hedging instrument group actually uses hedge amount hedged item transactions meet qualifying criteria hedge accounting accounted follows fair value hedges change fair value hedging derivatives recognised income statement change fair value hedged item attributable hedged risk recognised part carrying amount hedged item also recognised consolidated statement comprehensive income regard fair value hedges related items accounted amortised cost adjustment book value amortised statement profit loss year residual period hedge using effective interest method amortization thus determined may begin soon adjustment exists may extend beyond date hedged item ceases adjusted result changes fair value attributable risk hedged hedged item derecognised unamortised fair value recognised immediately income statement annual financial report consolidated financial statements unrecognised irrevocable commitment designated hedged item subsequent cumulative chang fair value attributable hedged risk accounted assets liabilities corresponding gains losses recognised statement profit loss year cash flow hedging portion profit loss hedged instrument relating effective hedging portion recognised consolidated statement comprehensive income cash flow hedge reserve ineffective portion recognised directly income statement cash flow hedge reserve adjusted lesser cumulative gain loss hedging instrument cumulative change fair value hedged item group uses forward contracts currencies hedge exposure exchange rate risk relating planned transactions commitments already established ineffective portion forward exchange contracts recognised financial income expenses group designates spot component forward contracts hedging instrument forward compo nent cumulatively recognised consolidated statement comprehensive income separate item amounts accumulated among components consolidated statement comprehensive income account depending nature underlying hedged transaction hedged transaction subsequently results recognition non financial component amount accumulated shareholders equity removed separate component shareholders equity included cost carrying amount hedged asset liability considered reclassification items recognised oci period also applies case hedged planned transaction non financial asset non financial liability subse quently becomes irrevocable commitment fair value hedge accounting applies cash flow hedge amount accumulated oci reclassified income statement reclassi fication adjustment period periods hedged cash flows impact income statement cash flow hedge accounting discontinued amount accumulated oci must remain future cash flows hedged expected occur otherwise amount must immediately reclassified income statement year reclassification adjustment suspension hedged cash flow occurs accumulated amounts remaining oci must accounted depending nature underlying transac tion described hedges net investment foreign operation hedges net investment foreign operation including hedges monetary item accounted part net investment accounted manner similar cash flow hedges gains losses hedging strument recognised among components consolidated statement comprehensive income effective portion hedge remaining ineffective portion recognised statement profit loss year upon disposal foreign asset cumulative value comprehensive gains losses transferred statement profit loss year annual financial report consolidated financial statements inventories inventories measured lower purchase production cost determined using weighted average cost method net realisable value purchase cost inclusive ancillary costs related purchases period production cost includes costs direct allocation portion indirect costs reasona bly attributable products net realisable value estimated sales price less estimated costs completion estimated costs execute sale necessary provision made materials products taking account expected use realisable value cash cash equivalents cash cash equivalents consist cash hand short term demand deposits latter case origi nal term longer three months cash cash equivalents recorded financial statements nominal value spot exchange rate end year foreign currency provisions risks charges provisions risks charges recognised probable existence present obligation either legal constructive result past event probable outflow resources embodying economic benefits required settle obligation iii reliable estimate made amount obligation provisions recorded value representing best estimate amount company would rationally pay settle obligation transfer third parties balance sheet date group considers provision risks charges partially completely reimbursed example case risks covered insurance policies compensation recognised distinctly separately assets practically certain case cost provision presented income statement net amount recognised compensation effect discounting monetary value significant provisions updated using pre tax discount rate reflect specific liability risks discounting carried increase provision due passing time reported financial expense provisions periodically updated reflect changes estimates costs timing discount rate revisions charged income statement item previously accounted provision annual financial report consolidated financial statements share based payments accordance ifrs total amount current value stock grants allocation date recognised full statement profit loss year balancing entry special shareholders equity reserve case vesting period certain conditions achievement targets must met grantees become entitled right cost recognised statement profit loss year determined basis current value shares grant date spread relevant service period employees termination indemnities post employment benefit plans whether formal classified defined benefit plans defined con tribution plans depending characteristics italian legislation article italian civil code provides date employee termi nates employment contract company receives severance indemnity called tfr calcula tion indemnity based certain items form annual remuneration employee year work appropriately revalued length employment relationship according italian civil law indemnity reflected financial statements according calculation method based indemnity accrued employee financial statement date hypothesising employees terminated employment contracts date international financial reporting interpretations committee ifric international accounting stand ards board iasb addressed issue italian tfr concluded application ias must calculated according methodology called projected unit credit method pucm according amount acquired benefit liability must reflect expected date resignation must discounted actuarial assumptions effects take account regulatory changes introduced italian legislature provided option employee allocate tfr accrued july inps supplementary pension funds net obligation group deriving defined benefit plans calculated estimating amount future benefit employees accrued exchange work done current previous years benefit discounted calculate present value actuarial gains losses related defined benefit plans accumulated previous year reflecting effects deriving changes actuarial assumptions used recognised full consolidated statement comprehensive income actuarial valuation liability entrusted independent actuary group obligation deriving defined contribution plans limited payment contributions state asset manager legally separate entity called fund determined basis contributions due annual financial report consolidated financial statements revenues costs revenues contracts customers ifrs requires revenues recognised amount reflects consideration entity pects entitled exchange transfer goods services customer group applied ifrs mandatory effective date january using method full retro spective application applying ifrs group considered following points sale goods revenues sale goods recognised control goods passes customer generally occurs wholesale channel time shipment retail channel time delivery goods customers sales usually paid directly cash register via credit card commerce channel customer gets control shipped goods geographical areas group sells products department stores act agents charge back group fees services rendered rental premises promotional events marketing etc relation value goods sold end customer fact contracts department store considered main party responsible fulfilling promise supply goods end customer moreover department store discretionary power define price goods sold customers consequently types contracts application ifrs provided presentation actual revenues sales separate indication costs services rendered department store latter services distinct sale products end customers group noted recognition revenues occurs control asset transferred customer generally upon delivery asset revenue recognition point time variable consideration right return group recognises right return residual ancillary cases respect ordinary perfor mance commercial relationship customers contract customer provides right return goods group uses expected value method estimate goods returned accordance ifrs revenues presented net returns also include estimate made take account returns arise end financial year related revenues financial year royalties royalty revenues recognised accrual basis accordance terms amounts envisaged licence agreement generally based sales volumes annual financial report consolidated financial statements public grants public grants recognised reasonably certain received conditions relating met grants related cost components recognised revenues systematically distributed financial years proportionate recognition costs intend offset grant lated asset recognised revenue straight line basis expected useful life specific asset group receives non monetary contribution asset grant recorded nominal value released income statement straight line basis expected useful life asset question costs costs recognised related goods services sold consumed allocated future useful lives cannot determined accordance ias advertising research costs fully allocated income statement service rendered delivered group costs recorded basis nature considering principles applicable ifrs financial income expenses financial income expenses include financial items recognised income statement period accrual basis including interest expense accrued borrowings calculated using effective interest method foreign exchange gains losses gains losses derivative financial instruments accordance previously defined accounting policies interest arising accounting treatment leased assets ifrs employee related provisions ias income taxes income taxes period include determination current deferred taxation recognised full income statement included result period except generated trans actions transferred current another period changes consolidated statement comprehensive income directly shareholder equity case related deferred taxes also recognised directly shareholder equity current taxes current taxes reflect estimate tax burden determined applying regulations force countries brunello cucinelli group operates liability current taxes calculated using rates force substantially approved reporting date current tax payables classified consolidated statement financial position net advance tax paid annual financial report consolidated financial statements deferred taxes deferred taxes calculated deductible temporary differences deferred tax assets taxable deferred tax liabilities resulting reporting date tax values taken reference assets liabilities values reported financial statements deferred tax assets recognised extent probable sufficient future taxable profit avail able temporary deductible differences carried forward tax assets liabilities utilised value deferred tax assets reported financial statements reviewed closing date financial statements reduced extent longer probable sufficient taxable profits available future allow part credit used unrecognised deferred tax assets reviewed annually closing date financial statements recognised extent become probable taxable profit sufficient allow deferred tax assets recovered deferred tax assets liabilities measured according tax rates expected applied year assets realised liabilities extinguished considering rates force already enacted substantially enacted reporting date deferred tax assets liabilities charged directly income statement exception relating items recognised directly shareholders equity case relevant deferred taxes recognised con sistently without charged income statement deferred tax assets liabilities offset legal right offset current tax assets current tax lia bilities deferred taxes refer tax entity tax authority deferred tax assets liabilities classified non current assets liabilities earnings loss per share basic profit loss per share calculated dividing group profit loss group weighted average number shares circulation period calculate diluted profit loss per share weighted average number shares circulation modified assuming conversion potential shares dilutive effect net result also adjusted take account effects conversion net taxes profit loss diluted share coincide basic profit since outstanding shares options ordinary shares annual financial report consolidated financial statements operating segments purposes ifrs operating segments group business conducted single operating segment ifrs defines operating segment component undertakes entrepreneurial activities generate revenues costs whose operational results periodically reviewed highest decision making level separate financial statement information available group identified single operating segment linked concept brand group identifies single brand brunello cucinelli representation consistent way management makes decisions allocates resources defines communications strategy annual financial report consolidated financial statements changes accounting standards new accounting standards changes estimates reclassifications new accounting standards interpretations amendments adopted group group early adopted new standard interpretation amendment issued yet effective various changes applied first time impact group consolidated finan cial statements supplier finance arrangements amendments ias ifrs may iasb issued amendments ias statement cash flows ifrs financial instruments supplementary information clarify characteristics reverse factoring agreements request dis closure agreements disclosure requirements included amendments intended assist users financial statements understanding effects entity liabilities cash flows exposure liquidity risk reverse factoring arrangements changes impact group consolidated financial statements amendments ifrs lease liability sale leaseback changes frs specify requirements seller lessor uses determine liabilities leasing derive sale lease back transaction make sure seller lessor non record profit loss refers right use changes impact group consolidated financial statements amendments ias classification liabilities current non current january october iasb published amendments paragraphs ias specify requirements classifying liabilities current non current changes clarify meant right postponement maturity right subordination must exist close financial year classification impacted likelihood entity exercise subordination right derivative embedded convertible liability equity instrument maturity liability impact classification addition requirement introduced disclose liability arising loan agreement clas sified non current entity right subordination conditional compliance covenants within twelve months changes impact group consolidated financial statements annual financial report consolidated financial statements international tax reform pillar two model rules amendments ias december organisation economic operation development oecd published doc ument tax challenges arising digitalisation economy global anti base erosion model rules pillar two regulates reform international taxation rules objective introducing minimum tax equal profits realised multinational groups december council european union adopted directive order incorporate globe rules member states required incorporate pillar two directive guidelines gradual application measures starting changes ias introduced response cited beps pillar two rules regulations oecd include temporary mandatory exemption recognition disclosure requirements deferred taxes deriv ing implementation jurisdictions regulations pillar two rules disclosure requirements involved entities help users financial statements better understand impacts income taxes derive legislation particular prior effective date entry force taking current group structure account also based values inspired legality transparency correctness honesty production activities fully concentrated italy financial year called temporarily simplification measure transitional cbbr safe harbour applied almost jurisdictions group operates group estimated allocated top tax application globe rules pillar two reg ulation single jurisdiction temporary simplification transitional cbbr safe harbour apply amount taxes significant accounting standards amendments interpretations issued yet effective standard interpretations date preparation group consolidated financial statements already issued yet force illustrated group intends adopt standard inter pretations applicable come force ifrs presentation disclosure financial statements april iasb issued ifrs replaces ias presentation financial statements ifrs troduces new requirements presentation income statement including specific totals subtotals furthermore entities classify costs revenues income statement four categories operating investing financing income taxes discontinued operations first three categories new standard also requires providing disclosure based new definition performance indicators defined management management defined performance measures mpms cost revenue subtotals includes new provisions aggregation disaggregation financial information based roles identified primary financial statements pfs notes furthermore changes introduced ias statement cash flow include change starting point determining cash flows operating activities based indirect method profit loss operational profit loss removal right classify cash flows dividends interest furthermore consequential changes made multiple accounting standards annual financial report consolidated financial statements ifrs changes standards effective financial years start january anticipated application permitted providing disclosed ifrs applied retrospec tively group currently working identify impacts changes financial statements accompanying notes ifrs subsidiaries without public accountability disclosures may iasb issue ifrs allows eligible entities opt reduction disclosure require ments continuing apply provisions recognition measurement presentation specified ifrs accounting standards eligible end financial year entity must subsidiary defined ifrs may public accountability must parent company final intermediate prepares consolidated financial statements available public prepared accordance ifrs accounting standards ifrs become effective financial years start january possibility vanced application group shares listed publicly group eligible application ifrs annual financial report consolidated financial statements translation financial statements currency euro translation foreign currency items consolidated financial statements presented euros functional presentation currency adopted company required ias amounts represented thousands euros group entity establishes functional currency uses measure items included indi vidual financial statements transactions foreign currency initially recognised exchange rate referring functional currency transaction date monetary assets liabilities denominated foreign currency translated functional currency exchange rate ruling closing date financial statements exchange differences recognised income statement non monetary items measured historic cost foreign currency translated exchange rates date initial recognition transaction financial statements foreign companies consolidated translated euros using current change rate method exchange rate balance sheet date used translation bal ance sheet items historical exchange rates shareholders equity items average exchange rate year income statement items translation differences recognised directly shareholders equity presented separate reserve sale foreign company cumulative exchange differences shareholders equity recognised income statement following table shows exchange rates used calculating amounts euro expressed eign currency financial statements subsidiaries currency amount per euro average exchange rates closing exchange rates december december december december dollar swiss franc japanese yen renminbi pound sterling hong kong dollar canadian dollar rouble singapore dollar taiwan dollar dirham kuwaiti dinar annual financial report consolidated financial statements comments main items consolidated statement financial position impairment financial closing date required ias internal procedures group assesses whether indications loss value non current assets million december particular right use million december also includes compensation paid lessee accordance industry practice order take lease contract store located strategic position called key money intangible assets million december property plant equipment euro million december investment property euro million december non current financial assets euro million december impairment test structure impairment test starts identification cash generating unit cgu group cgus goodwill property plant equipment intangible assets finite useful lives group allocated assessment complex requires application technical professional judgement management taking account organizational structure type business way management controls operations company group makes decisions whether keep operational dispose assets group assets services generate economic benefits line previous years absence organizational structural changes group level management identified individual legal entities controlled group set assets pertaining individual legal entities con trolled group smallest group assets capable generating cash flows largely independent generated assets groups assets accordance impairment procedure group performed analysis targeted towards assessing presence impairment indicators december management identify impairment indicators annual financial report consolidated financial statements note right use composition right use assets december comparative figures december follows euro december december change right use buildings right use equipment right use tangible fixed assets total right use assets details cost accumulated depreciation net book value right use assets december comparative figures december follows euro december december cost accumulated depreciation net value cost accumulated depreciation net value right use buildings right use equipment right use tangible fixed assets total right use assets right use assets december amounted thousand mainly relate leases spaces group boutiques showrooms residual extent leases offices logistics equipment assets item also includes key money paid group classified initial direct cost leases according ifrs following tables show changes net book value right use assets years ended december december euro right use buildings right use equipment right use tangible fixed assets total right use assets balance january increases net decreases translation differences changes scope consolidation depreciation amortization balance december annual financial report consolidated financial statements euro right use buildings right use equipment right use tangible fixed assets total right use assets balance january increases net decreases translation differences value adjustments depreciation amortization balance december main increases recognised relate new lease agreements signed financial year expansion retail network renewal lease agreements certain single brand boutiques note intangible assets composition intangible assets december comparative figures december follows euro december december change concessions licences trademarks similar rights fixed assets construction advances total intangible assets details cost accumulated amortization net book value intangible assets december com parative figures december follows euro december december cost accumulated depreciation net value cost accumulated depreciation net value concessions licences trademarks similar rights intangible fixed assets fixed assets construction advances total intangible assets intangible assets amounted thousand december consisted principally concessions licenses trademarks similar rights software used digital activities support business renovation modernization group technological platforms particular commerce website digital sales annual financial report consolidated financial statements following tables show changes net book value intangible assets years ended december december euro concessions licences trademarks similar rights fixed assets construction advances total intangible assets balance january increases translation differences reclassifications changes scope consolidation depreciation amortization balance december euro concessions licences trademarks similar rights intangible fixed assets fixed assets construction advances total intangible assets balance january increases translation differences reclassifications depreciation amortization balance december capital expenditures amounted thousand thousand relating project upgrade information technology digital systems accounted thousand items concessions licenses trademarks similar rights thousand items fixed assets construction advances note property plant equipment composition property plant equipment december comparative figures december follows euro december december change land buildings leasehold improvements plant machinery industrial commercial equipment assets fixed assets construction advances total property plant equipment annual financial report consolidated financial statements details historical cost accumulated depreciation net book value property plant equipment december comparative figures december follows euro december december cost accumulated depreciation net value cost accumulated depreciation net value land buildings leasehold improvements plant machinery industrial commercial equipment assets fixed assets construction advances total property plant equipment property plant equipment december amounted thousand mainly comprised value buildings used production logistics main office improvements made leased stores well equipment plants machinery useful production logistics store furnishings following table sets changes net book value property plant equipment year ended december december euro land buildings leasehold improvements plant machinery industrial commercial equipment assets fixed assets construction advances total property plant equipment balance january increases net decreases translation differences value adjustments reclassifications changes scope consolidation depreciation amortization balance december annual financial report consolidated financial statements euro land buildings leasehold improvements plant machinery industrial commercial equipment assets fixed assets construction advances total property plant equipment balance january increases net decreases translation differences value adjustments reclassifications depreciation amortization balance december brunello cucinelli group made investments property plant equipment thousand consisting following investments total thousand items land buildings mainly related purchase land area surrounding hamlet solomeo purchase land build new production facility production men outerwear tailoring suits gubbio district excellence artisan tailoring well improvements made buildings owned thousand leasehold improvements principally due openings expansion dos wholesale points sale improvements existing boutiques showrooms throughout world thousand thousand recognised plant machinery mainly referring new machinery production thousand industrial commercial equipment mainly investments made production site solomeo thousand assets mainly referring investments furniture furnishings sales points well ordinary development upgrading activities furniture furnishings vehicles equipment historic collection headquarters solomeo additional investments recorded fixed assets construction advances thousand including continuation project double solomeo factory built outskirts hamlet former industrial complex entirely reclaimed redeveloped investments dedicated creating new factory gubbio umbria developing factory penne abruzzo production men outerwear tailored suits within districts excellence artisan tailoring industry investments digital amounted thousand refer property plant equipment annual financial report consolidated financial statements note investment property composition investment property december comparative figures december follows euro december december change investment property total investment property item amounting thousand relates property complexes building land located solomeo also managed aim subsequently leased table shows changes net book value investment property year ended december euro total investment property balance january increases decreases depreciation amortization balance december note current non current financial assets leases item includes active subleases identified financial leases classified accounted financial assets investment item follows december euro non current current total december financial assets leases total financial assets leases changes years ended december december follows euro total financial assets leases balance january increases new leases increases interest income decreases payments received balance december annual financial report consolidated financial statements euro total financial assets leases balance january increases new leases increases interest income decreases payments received balance december note non current financial assets composition non current financial assets december comparative figures decem ber follows euro december december change guarantee deposits financial receivables equity investments associate companies total non current financial assets non current financial assets equal thousand december balance mainly refers guarantee deposits related sums paid brunello cucinelli group connection stip ulation lease agreements single brand shops increased due new lease agreements renewal current rental contracts single brand boutiques showrooms item also includes thousand relative investment associate company cariaggi lanificio investment specified accounting standard ias investments associated companies evalu ated using shareholders equity method recording increase value thousand note inventories composition inventories december comparative figures december follows euro december december change raw materials consumables work progress semi finished goods finished goods merchandise inventory write provision total inventories information item please refer report operations board directors annual financial report consolidated financial statements note trade receivables trade receivables december amounted thousand compared thousand december comment changes net working capital see report operations board directors trade receivables represent amounts due supply goods services collectible short term means carrying amount effectively fair value date preparation con solidated financial statements amount receivables financial statements written reasonable estimate impairment arising specific non collectability risk identified receivables well pected loss value changes allowance bad doubtful debts year ended december compared previous year follows euro value january changes scope consolidation allocations uses exchange differences value december allocations year included item impairment assets accruals income state ment losses recorded receivables income statement total thousand together uses provision bad debts represented revenues year previous year situation regarding overdue balances illustrated usual ageing table situation december overdue days days days total even though sales positive resulting increase turnover recorded financial year particular concern growth wholesale channel increased percentage pact trace receivables revenues decreased compared previous financial year december compared december demonstrates extremely healthy situation annual financial report consolidated financial statements note tax receivables composition tax receivables december comparative figures december follows euro december december change ires regional production tax receivables irap regional production tax receivables tax receivables total tax receivables tax receivables december equals thousand mainly reference tax receivables income taxes recognised parent company resulting larger advances paid year note receivables current assets composition receivables current assets december comparative figures december follows euro december december change tax receivables credit card receivables accrued income prepaid expenses advances suppliers receivables total receivables current assets tax receivables amounted thousand december compared thousand cember item refers mainly vat credit recorded parent company subsidiaries credit card receivables amounted thousand december compared thousand december amount refers payments received credit cards occurred end year yet credited current accounts accrued income prepaid expenses attributable various types advance payments sum marised following types advance payments rents included scope application ifrs utilities insurance premiums increasing importance fees relating digital management concerning latter advance fees amounted thousand december advances suppliers mainly refer payments made providers services related important brand events production chain particular regard small craft enterprises connection external processing carried group products annual financial report consolidated financial statements note current financial assets current financial assets amounted thousand december whereas equalled thousand december refers short term financial assets including receivables financial nature securi ties residually accrued interest income note cash cash equivalents composition cash cash equivalents december comparative figures december follows euro december december change bank postal deposits cash hand cheques total cash cash equivalents amounts readily converted cash liable constraints restrictions subject insignificant risk change value brunello cucinelli group believes credit risk related cash cash equivalents limited item mostly refers deposits various leading domestic foreign banks reference made consolidated cash flow statement details sources applications generated changes cash cash equivalents period ended december compared previous year note derivative financial instruments brunello cucinelli group enters certain derivative contracts hedge interest rate risk bank debt exchange risk sales made currencies euro parent company takes contracts hedging purposes group financial management policy permit trading financial instruments speculative purposes derivative financial instruments meeting requirements international accounting standards accounted using hedge accounting chang fair value derivative financial instruments qualifying hedge accounting international accounting standards recognised income statement relevant reporting period interest rate currency derivatives used company counter otc instruments meaning negotiated bilaterally market counterparties determination relative current value based valuation techniques use input parameters rate curves foreign exchange rates etc observable market level fair value hierarchy envisaged ifrs annual financial report consolidated financial statements following noted outstanding derivative financial instruments december financial instruments measured fair value included level identical situation transfers level level vice versa transfers level levels vice versa derivatives measured taking reference interest rates yield curves observable commonly quoted intervals details composition current non current derivative financial assets current non current derivative financial liabilities december set comparative figures december euro december december change current assets derivative instruments hedging currency risk current assets derivative instruments hedging interest rate risk current assets derivative instruments hedging interest rate risk accounted using hedge accounting current assets derivative instruments hedging interest rate risk accounted using hedge accounting total current derivative financial assets non current assets derivative instruments hedging currency risk non current assets derivative instruments hedging interest rate risk non current assets derivative instruments hedging interest rate risk accounted using hedge accounting non current assets derivative instruments hedging interest rate risk accounted using hedge accounting total non current derivative financial assets current liabilities derivative instruments hedging currency risk current liabilities derivative instruments hedging interest rate risk current liabilities derivative instruments hedging interest rate accounted using hedge accounting current liabilities derivative instruments hedging interest rate accounted using hedge accounting total current derivative financial liabilities non current liabilities derivative instruments hedging currency risk non current liabilities derivative instruments hedging interest rate risk non current liabilities derivative instruments hedging interest risk accounted using hedge accounting non current liabilities derivative instruments hedging interest rate risk accounted using hedge accounting total non current derivative financial liabilities annual financial report consolidated financial statements contractual characteristics derivative financial instruments used hedge interest risk relative fair values december december follows euro december december current portion non current portion current portion non current portion derivative assets liabilities total fair value irs contractual characteristics derivative financial instruments used hedge currency risk relative fair value december december follows euro negative fair value positive fair value december december december december derivative assets liabilities total fair value foreign currency forward contracts following table shows book value financial instruments existence current loans non current loans shown balance sheet comparing fair value euro december fair value december book value current non current loans required ifrs calculation made credit value adjustment debit value adjustment outstanding derivative financial instruments result obtained material terms recognising effects consolidated financial statements note capital reserves share capital december amounted thousand fully paid consisting ordinary shares shareholders equity december amounted thousand thousand compared december details changes shareholders equity periods ended december december found consolidated statement changes shareholders equity share premium reserve amounts stated net listing costs incurred deducted shareholders equity pro rata ratio number new shares issued number shares existence following ipo accordance ias annual financial report consolidated financial statements equity reserves december comparative figures december follows euro december december change legal reserve extraordinary reserve revaluation reserve cash flow hedge reserve ifrs first time adoption reserve reserve effects ias translation reserve stock grant reserve reserve shares consolidated retained profits losses total reserves change extraordinary reserve equalling thousand mainly attributed destination previous year profits approved shareholders meeting april well value treasury shares purchased year parent company execution stock grant plan assigned free charge executive directors employees company subsidiaries details refer following paragraph significant events report operations board directors negative change cash flow hedge reserve thousand reflects items presented con solidated statement comprehensive income translation reserve consists accumulated exchange differences arising translation foreign financial statements expressed currency euro well exchange differences generated intercompany loans settlement planned likely occur foreseeable future classified recognised initially separate component shareholders equity accordance paragraph ias net investment foreign operation reference stock grant reserve march board directors brunello cucinelli approved stock grant plan submitted subsequent approval ordinary shareholders meeting april stock grant plan provides free allocation shares executive directors employees company subsidiaries certain performance targets achieved financial year total purchase treasury shares parent company com pleted based mandate granted mediobanca banca credito finanziario parent company board directors august implementation shareholders resolution april date annual financial report shares assigned free charge executive directors employees top positions company subsidiaries execution stock grant plan march board directors brunello cucinelli approved stock grant plan submitted subsequent approval ordinary shareholders meeting april annual financial report consolidated financial statements stock grant plan provides free allocation company shares executive directors employees company subsidiaries certain performance targets achieved financial year also total purchase treasury shares parent company completed based mandate granted mediobanca banca credito finanziario parent company board directors december implementation shareholders resolution april allocated stock grant plan stock grant plan service date annual financial report parent company holds treasury shares equal shares making share capital required ifrs equity settled stock grant plans measured fair value recognised income statement among costs period provision services beneficiaries offset shareholders equity reserve determination fair value stock grants made grant date reflecting market conditions existing date reserve shares reflects value treasury shares held company date annual financial report information informational documents regarding plan refer company website www brunel locucinelli section governance shareholders equity attributable non controlling interests thousand december com pared thousand previous year represents minority interests group subsidiaries note employees termination indemnities item consists termination indemnity due employees group italian companies liability set aside law discounted present value means described ias table shows changes employees termination indemnities december compared chang previous year euro present value obligation beginning year revaluation employee termination indemnity benefits paid changes scope consolidation financial income expense exchange differences remeasurement defined benefit plans ias present value obligation year end item remeasurement defined benefit plans ias reflects items presented consolidated statement comprehensive income annual financial report consolidated financial statements main assumptions used calculation present value italian employees termination indemnity follows financial assumptions december december annual discount rate inflation rate expected staff turnover rate advances rate demographic assumptions december december mortality table retirement age years turnover rate termination severance indemnity tfr advances december december advance rate turnover rate note group performed sensitivity analysis actuarial assumptions used determine liability december specifically conditions change discount rate used would result decrease balance liability equal thousand change would result increase balance liability equal thousand workforce following table sets average number employees category expressed terms full time equiv alent december december executives managers office sales staff blue collar workers total workforce annual financial report consolidated financial statements note provisions risks charges provisions risks charges mainly relate agents supplementary termination indemnity provision cal culated accordance italian legislation article bis italian civil code discounted present value required ias following table sets changes provisions risks charges period ended december comparative figures year ended december euro agents supplementary termination indemnity value january allocations actuarial losses gains agents supplementary termination indemnity balance year end provisions risks value january exchange differences allocations uses provisions risks value year end total provisions risks charges changes uses relate early termination contractual relationship agents adjustment agents supplementary termination indemnity provision existing contractual relationships discount rate used actuarial calculation provision agents severance indemnity decem ber compared previous financial year note non current payables towards banks non current payables towards banks consists long term loans following table provides details brunello cucinelli group outstanding loans december showing portion due within months years years euro balance december share within next year share within years share years total medium long term loans total non current payables towards banks calculated annual basis making reference consolidated financial statements brunello cucinelli financial covenants refer net financial debt shareholders equity ratio net finan cial debt ebitda ratio december financial covenants met annual financial report consolidated financial statements reference made liquidity risk section financial risk management paragraph notes consolidated financial statements details repayment plan outstanding loans finally note payables specified encumbered collateral company assets note current non current lease liabilities application ifrs accounting standard led recognition financial liability consisting present value residual future payments balance december breaks follows euro non current current total december financial liabilities leases total financial liabilities leases changes years ended december december follows euro total financial liabilities leases balance january increases new leases decreases early termination leases changes scope consolidation increases interest expense decreases payments made foreign exchange gains losses translation differences balance december euro total financial liabilities leases balance january increases new leases decreases early termination leases increases interest expense decreases payments made foreign exchange gains losses translation differences balance december annual financial report consolidated financial statements net financial debt following table provides details structure net financial debt brunello cucinelli group december compared situation december restated accordance format required consob reminder april compliance esma guidelines disclosure obligations pursuant prospectus regulation euro december december cash cash equivalents means equivalent cash cash equivalents current financial assets current financial assets leases cash cash equivalents current financial debt current financial debt leases current portion non current financial debt current financial debt net current financial debt non current financial debt non current financial debt leases debt instruments trade payables non current payables non current financial debt total financial debt net financial debt core business payables leases comment see report operations board directors annual financial report consolidated financial statements required ias statement cash flows following table sets changes liabilities deriving financing activities euro december monetary flows non monetary flows december exchange rate changes changes fair value changes scope consolidation non current bank debt non current financial liabilities current portion non current debt current non current lease liabilities current financial payables current financial assets current financial liabilities leases cash cash equivalents net financial debt noted column monetary flows indicates flows consolidated cash flow statement column mainly refers effects reclassification non current portion current portion outstanding loans well respect row current non current financial lia bilities leases amount generated effects increases decreases discounted interest relating contracts falling within scope ifrs note non current financial liabilities item non current financial payables amounting thousand december refers loan payable share minority shareholder subsidiaries brunello cucinelli middle east llc brunello cucinelli kuwait readymade novelty clothes retail wll loans proportional part given group euro december december change non current financial liabilities total non current financial payables annual financial report consolidated financial statements note non current liabilities non current liabilities amounted thousand december compared thousand december balance refers completely rediscount tax credit investment capital goods entered parent company euro december december change non current deferred income total non current liabilities note trade payables composition trade payables december comparative figures december follows euro december december change trade payables third party suppliers total trade payables trade payables represent amounts due supply goods services comment changes net working capital see report operations board directors note current payables towards banks composition current payables towards banks december comparative figures decem ber follows euro december december change current portion medium long term loans bank advances received invoices accrued interest liabilities total current bank debt current portion medium long term loans refers portion bank loans falling due within next year amounts due banks advances relate advances trade receivables financing operations details refer indicated report operations board directors annual financial report consolidated financial statements note current financial liabilities current financial liabilities december amounted thousand compared thousand last year euro december december change current financial liabilities total current financial payables note income tax payables income tax payables december amounted thousand compared thousand december item mainly includes income tax payables income taxes recorded group foreign subsidiaries euro december december change current ires regional production tax payables current irap regional production tax payables income tax payables total income tax payables note current liabilities composition current liabilities december comparative figures december follows euro december december change payables agents payables employees social security payables payables italian companies withholding tax irpef withholdings payables current taxes income vat payables accrued expenses deferred income advances customers payables total current liabilities annual financial report consolidated financial statements amounts due agents relate accrued commissions payable brunello cucinelli group agents yet paid closing date year amounts due employees consist balances payable december wages salaries settled first days january accrual vacation leave vested yet taken social security payables refer contributions wages salaries paid december wages salaries accrued end december paid first days january taxes withheld italian companies consist end year balances irpef withholding taxes paid january vat payables relate mainly balances group foreign companies advances customers refer advances group companies receive shipment goods customers retail wholesale mainly foreign note taxes deferred tax assets liabilities composition deferred tax assets liabilities december comparative figures decem ber follows euro december december change deferred tax assets deferred tax liabilities balance deferred tax assets mainly attributable tax effect related elimination intercompa margins inventories recognition deferred tax assets write reserve inventory deferred taxation recorded temporary differences generated accounting rents deferred tax assets recognised extent probable sufficient future taxable profit avail able temporary deductible differences carried forward tax assets liabilities utilised annual financial report consolidated financial statements breakdown net deferred taxes december december follows migliaia euro year ended december statement financial position shareholders equity income statement exchange differences changes scope consolidation changes amortization intangible assets depreciation property plant equipment reserve doubtful debts fair value derivatives deferred rent ias employee termination indemnity ias agent severance indemnity elimination intercompany margins inventories elimination effects intercompany capital gains prepaid taxes tax losses unrealised exchange gains losses taxed cash transactions sale brunello cucinelli suisse shares employees ifrs leases inventory write others gross deferred tax asset depreciation property plant equipment fair value derivatives net investments foreign operations others gross deferred tax liabilities cost revenue deferred taxes deferred taxes recognised shareholders equity exchange differences changes scope consolidation net deferred tax assets liabilities represented statement financial position follows deferred tax assets deferred tax liabilities net deferred tax assets annual financial report consolidated financial statements income taxes composition income tax charge consolidated income statement years ended december december follows euro december december change current taxes net deferred taxes prior year taxes total income taxes consolidated income statement income taxes consolidated statement comprehensive income total income taxes reconciliation nominal actual rates brunello cucinelli group years decem ber december follows euro year ended december profit taxes ires rate force year theoretical tax charge income taxes different rates irap effect different tax rates foreign companies prior year taxes variations total taxes income statement actual tax rate annual financial report consolidated financial statements comments main items consolidated income statement note revenues composition revenues december comparative figures december follows euro december december change revenues revenues earned sale clothing accessories provision services brunello cucinelli group detailed comment see report operations board directors revenues may broken geographical area follows euro year ended december impact impact change change europe italy americas asia total revenues may broken distribution channel follows euro year ended december impact impact change change retail wholesale total accordance accounting standard ifrs group recognises revenues sale products point time reference made report operations board directors comments revenue per formance annual financial report consolidated financial statements note costs raw materials consumables composition costs raw materials consumables year ended december compara tive figures year ended december follows euro december december change costs raw materials consumables change inventories total costs raw materials consumables reference made report operations board directors comments item note costs services composition costs services december comparative figures december follows euro december december change outsourced work advertising marketing costs transport duties lease expense commissions accessory charges credit card charges outsourcing training miscellaneous consultancy service contracts maintenance security services electricity telephone gas water postal expenses directors statutory auditors fees insurance digital maintenance support general expenses total costs services main costs services commented report operations board directors ref erence made finally note costs services also include amount thousand relating expenses digital nature general expenses amounts thousand december compared thousand december increase thousand physically attributable increase business annual financial report consolidated financial statements results increase spaces carry activity well increase international travel people development creativity management implementation activities combined significant persisting increase flight hotel tariffs addition outsourcing training miscellaneous consultancy service contracts shown table includes residual amount equal thousand relocation costs paid parent company paid indirectly parent company foro delle arti company specialised transport sector result given indirect nature relationship amount indicated paragraph concerning related party transactions notes consolidated financial statements note payroll costs composition payroll costs year ended december comparative figures situation december follows euro december december change wages salaries social security contributions employee termination indemnity payroll costs total payroll costs note payroll costs include cost accrued december overall equal thousand respect stock grant plan stock grant plan details afore mentioned transactions reference made section significant events report operations board directors note consolidated financial statements reference made report operations board directors comment payroll costs annual financial report consolidated financial statements note operating expenses composition operating expenses december comparative figures december follows euro december december change taxes duties losses bad debts socially useful expenses donations operating costs total operating expenses item operating expenses amounts thousand december thousand compared thousand december note operating income composition operating income december comparative figures december follows euro december december change operating income total operating income operating income item equals thousand mainly refers rent income spaces used com mercial partners included scope application ifrs contributions reimbursements received year note costs capitalized increase thousand work capitalised mainly relates production costs incurred develop historical collections costs internal sit group boutique value december amounted thousand annual financial report consolidated financial statements note depreciation amortization composition depreciation amortization december comparative figures december follows euro december december change depreciation right use assets amortization intangible assets depreciation property plant equipment depreciation investment property total depreciation amortization increase depreciation amortization charge linked investments made group reference made report operations board directors comments depreciation amortization trends note impairment assets accruals impairment assets accruals thousand december thousand december refer provisions provision bad debts provisions supplementary termi nation indemnity provision adjustments net residual carrying amount tangible assets recorded upon expansion group boutiques note financial expenses composition financial expenses december comparative figures december follows euro december december change lease interest expense mortgage interest expense interest expense advances bank interest expense realised exchange losses unrealised exchange losses exchange losses leasing financial expense derivatives miscellaneous financial expense total financial expenses annual financial report consolidated financial statements comment trend item please see report operations board directors financial expenses item analysed together financial income item note financial income composition financial income december comparative figures december follows euro december december change lease interest income bank interest income realised exchange gains unrealised exchange gains exchange gains leasing financial income derivatives income equity investments income total financial income equity investments comment trend item please see report operations board directors financial income item analysed together financial expenses item note basic diluted earnings per share basic earning per share calculated dividing result weighted average number ordinary shares brunello cucinelli group circulation year also taking account weighted average effect treasury shares held company financial year reference diluted earnings per share show difference basic earnings per share diluted earnings per share convertible bonds financial instruments dilutive effects following table shows result financial year attributable shareholders parent company share information used calculation basic diluted earnings per share december december net profit attributable parent company shareholders number ordinary shares end year weighted average number ordinary shares used calculate basic earnings per share weighted average number ordinary shares used calculate diluted earnings per share basic earnings per share euro diluted earnings per share euro annual financial report consolidated financial statements note commitments risks december group commitments mainly attributable leases new points sale amount million also note assets owned brunello cucinelli group lent third parties mainly related operating chines electronic equipment lent charge workshops outside companies use produce supply apparel services amount thousand financial risk management brunello cucinelli group exposed various types financial risks connected core business specifically group simultaneously exposed market risk interest rate risk exchange rate risk liquidity risk credit risk financial risks managed basis guidelines established board directors aim ensure liability structure remains balanced composition assets maintain adequate levels solvency widely used financing instruments medium long term loans multi year amortization plan cover investments fixed assets short term loans bank overdrafts finance working capital furthermore brunello cucinelli group subscribes financial instruments hedge risks fluctuations interest rates could affect burden medium long term financial debt exchange rates could influence group economic performance average cost borrowing linked trend month month euribor rates plus spread depends financing instrument used company rating brunello cucinelli group uses derivative financial instruments hedge interest rate risk exchange risk trading derivatives speculative purposes envisaged following paragraphs various risks analysed individually necessary applying sensitivity anal ysis highlight potential impact final results deriving hypothetical fluctuations parameters reference required ifrs analyses based simplified scenarios applied final data reference periods nature cannot considered indicators real effects future changes reference parameters due different capital financial structure different market conditions reflect interrelationships complexity reference markets annual financial report consolidated financial statements interest rate risk brunello cucinelli group exposed changes interest rates limited floating rate debt instru ments brunello cucinelli group sensitivity interest rate risk managed due regard overall exposure part general policy optimising financial resources group seeks balance resorting less expensive forms financing group policy hedge exposure medium long term portion debt market risk arising interest rate changes manage risk company uses derivative instruments interest rate swaps december positions relating interest rate swap derivative instruments hedging risk associated potential increase cost service payables banks due fluctuation market rates notional value positions amounted million positive equivalent value approx imately thousand december positions relating interest rate swap derivative instruments hedging risk associated potential increase cost service payables banks due fluctuation market rates notional value positions amounted million positive equivalent value approx imately thousand short term portion payables banks mainly serves finance need working capital subject hedging interest risk cost bank borrowing linked euribor rate period plus spread depends type credit line used margins applied comparable best market standards interest rate risk brunello cucinelli group exposed mainly derives outstanding financial payables brunello cucinelli group main sources exposure interest rate risk attributable short medium long term loans derivative instruments group adopted precise hedging policy potential impacts income statement comparison attributable interest rate risk follows potential change financial differential charges related derivative instruments outstanding potential change fair value existing derivative instruments potential changes fair value effective component existing hedging derivatives produce impacts shareholders equity annual financial report consolidated financial statements brunello cucinelli group estimated potential impacts consolidated income statement shareholders equity financial year calculated respect situation end financial year impacts comparison calculated respect situation end financial year produced simulation change yield curve interest rates using internal valuation models based generally accepted logic specifically loans impacts estimated simulating parallel change basis points interest rate yield curve applied cash flows settled comparison derivative instruments simulating parallel change basis points interest rate yield curve regard situation december parallel shift yield curve interest rates equal basis points would produce increase financial expenses financial year equal thousand offset thousand increase differentials collected existing derivatives parallel shift yield curve interest rates equal basis points would produce decrease financial expenses equal thousand offset thousand reduction differentials collected existing derivatives regard situation december parallel shift yield curve interest rates equal basis points would produce increase financial expenses financial year equal approxi mately thousand offset approximately thousand increase differentials collected existing derivatives parallel shift yield curve interest rates equal basis points would pro duce decrease financial expenses equal approximately thousand offset approximately thousand reduction differentials collected existing derivatives interest december loans residual debt impact income statement bps impact income statement bps loans payable total loans derivative instruments residual notional impact income statement bps impact income statement bps cash flow hedging derivative instruments total derivatives total annual financial report consolidated financial statements interest december loans residual debt impact income statement bps impact income statement bps loans payable total loans derivative instruments residual notional impact income statement bps impact income statement bps cash flow hedging derivative instruments total derivatives total regard situation december parallel shift yield curve interest rates equal basis points would produce increase asset value existing hedging derivative instruments equal thousand impact shareholders equity parallel shift yield curve interest rates equal basis points would produce decrease asset value existing derivative instruments equal approximately thousand impact solely shareholders equity regard situation december parallel shift yield curve interest rates equal basis points would produce increase asset value existing hedging derivative instruments equal approximately thousand impact shareholders equity parallel shift yield curve interest rates equal basis points would produce decrease asset value existing derivative instruments equal approximately thousand impact solely shareholders equity sensitivity fair value derivatives december notional value fair value net fair value bps change net fair value bps impact income statement bps impact shareholders equity bps net fair value bps change net fair value bps impact income statement bps impact shareholders equity bps cash flow hedging derivative instruments total annual financial report consolidated financial statements sensitivity fair value derivatives december notional value fair value net fair value bps change net fair value bps impact income statement bps impact shareholders equity bps net fair value bps change net fair value bps impact income statement bps impact shareholders equity bps cash flow hedging derivative instruments total assumptions regarding extent changes market parameters used simulation shocks formulated basis analysis historical evolution parameters month horizon exchange rate risk brunello cucinelli group exposed currency risk currencies primarily dollar sales made affiliates third party customers cost structure primarily concentrated euro area risk exists eventuality market value revenues euro may decrease event adverse fluctuations exchange rate thereby preventing desired margin achieved due geographical composition corporate structure subsidiaries located different countries different currencies group exposed exchange rate risk related intercompany cash flows mainly dividends loans capital transactions finally group exposed called translation risk risk implies assets liabilities consol idated companies whose functional currency different euro may different market values euros depending exchange rate fluctuations amount reflected translation reserve sharehold ers equity group monitors performance exposure hedging transactions place balance sheet date limit exposure currency risk deriving business activities brunello cucinelli group enters derivative contracts forward exchange contracts predetermine conversion rate range conver sion rates future dates forward contracts stipulated seasonal price lists foreign currency defined basis estimated sales expiry date derivative set expected collection date sales invoices particular group sets selling prices euros calculates corresponding prices foreign currency applying exchange rate average hedges made forward contracts starting company adopted cash flow hedge accounting account derivative contracts hedging currency risk arising foreign currency business transactions deemed highly probable consequently fective component change fair value derivatives negotiated hedge highly probable foreign currency transactions allocated specific reserve shareholders equity hedged transaction takes place amounts recognised reserve reclassified revenues income statement ineffective component change fair value recognised financial income expenses income statement accordance methods adopted accounting hedged items changes fair value subsequent occurrence hedged transactions recognised financial income expenses income statement annual financial report consolidated financial statements aim company financial policy prevent results operations affected fluctua tions exchange rates stipulation date forward contracts time invoicing subsequent collection group reclassified increase revenues thousand previously recognised cash flow hedge reserve group reclassified decrease revenues thousand previously recognised cash flow hedge reserve potential effects consolidated income statement comparative purposes arising currency risk write write asset liability items expressed foreign currency change fair value outstanding derivatives hedging asset liability items expressed foreign currency change fair value ineffective component outstanding derivatives highly probable transactions foreign currency potential effects shareholders equity comparative purposes arising currency risk change fair value effective component outstanding derivatives highly probable transactions foreign currency brunello cucinelli group estimated potential effects consolidated income statement shareholders equity calculated reference situation end comparative purposes produced shock exchange rate market reference currencies group significant exposure closing date using internal assessment models based generally accepted principles annual financial report consolidated financial statements exposure balance sheet items foreign currency exposure sensitivity assets liabilities equity income statement euro dollar exchange rate dollar trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro dollar exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro swiss franc exchange rate chf trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro swiss franc exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro british pound exchange rate gbp trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro british pound exchange rate forward sales notional value annual financial report consolidated financial statements exposure balance sheet items assets liabilities equity income statement euro japanese yen exchange rate jpy trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro japanese yen exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro hong kong dollar exchange rate hkd trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro hong kong dollar exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro canadian dollar exchange rate cad trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro canadian dollar exchange rate forward sales notional value annual financial report consolidated financial statements exposure balance sheet items assets liabilities equity income statement euro renminbi exchange rate cny trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro renminbi exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro rouble exchange rate rub trade balances total gross exposure balance sheet items exposure balance sheet items assets liabilities equity income statement euro singapore dollar exchange rate sgd trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro singapore dollar exchange rate forward sales notional value annual financial report consolidated financial statements exposure balance sheet items assets liabilities equity income statement euro taiwan dollar exchange rate twd trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro taiwan dollar exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro dirham exchange rate aed trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro uae dirham exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro kuwait dinar exchange rate kwd trade balances total gross exposure balance sheet items annual financial report consolidated financial statements foreign currency exposure sensitivity exposure balance sheet items assets liabilities equity income statement euro dollar exchange rate dollar trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro dollar exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro swiss franc exchange rate chf trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro swiss franc exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro british pound exchange rate gbp trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro british pound exchange rate forward sales notional value annual financial report consolidated financial statements exposure balance sheet items assets liabilities equity income statement euro japanese yen exchange rate jpy trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro japanese yen exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro hong kong dollar exchange rate hkd trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro hong kong dollar exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro canadian dollar exchange rate cad trade balances total gross exposure balance sheet items annual financial report consolidated financial statements exposure arising highly probable future transactions notional changes shareholders equity euro canadian dollar exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro renminbi exchange rate cny trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro renminbi exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro rouble exchange rate rub trade balances total gross exposure balance sheet items exposure balance sheet items assets liabilities equity income statement euro singapore dollar exchange rate sgd trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro singapore dollar exchange rate forward sales notional value annual financial report consolidated financial statements exposure balance sheet items assets liabilities equity income statement euro taiwan dollar exchange rate twd trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro taiwan dollar exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro dirham exchange rate aed trade balances total gross exposure balance sheet items exposure arising highly probable future transactions notional changes shareholders equity euro dirham exchange rate forward sales notional value exposure balance sheet items assets liabilities equity income statement euro kuwait dinar exchange rate kwd trade balances total gross exposure balance sheet items assumptions regarding range changes market parameters used simulate shocks formulated basis analysis historical trend parameters reference day horizon line expected length exposure annual financial report consolidated financial statements liquidity risk brunello cucinelli group manages liquidity risk strictly controlling items making working capital particular trade receivables trade payables group strives obtain good cash generation order settle trade payables without jeopardising short term cash requirements avoid criticalities strains available cash following tables provide stratification outstanding liabilities relating financial struments residual maturity situation december financial liabilities trade payables derivative instruments total principal interest maturity within months years years years years due years total situation december financial liabilities trade payables derivative instruments total principal interest maturity within months years years years years due years total estimate future expected expenses implicit loans future expected differentials implied derivatives determined based yield curve interest rates dates reference december december annual financial report consolidated financial statements credit risk credit risk group exposure potential losses arising failure counterparties meet ligations brunello cucinelli group exposure commercial credit risk refers sales made wholesale channel represents revenues december remaining turnover refers sales retail channel payment made cash credit debit card brunello cucinelli group generally prefers business customers established consolidated relationship time group policy carry checks relative credit class customers requesting extended payment terms using information obtainable specialised agencies observing analysing figures performance established customers addition balances constantly monitored year order ensure timely action reduce risk loss confirmation pol icy reference made changes provision bad debts years ended december december set note consolidated financial statements specifically note percentage ratio sum utilizations provision bad debts bad debt losses compared revenues support prudent sound mindset credit management carrying amount trade receivables financial statements stated net provision bad debts basis risk counterparty fail meet obligations determined considering available information solvency customer historical data following tables provide ageing trade receivables years overdue situation december days days days total information related party transactions following tables provide details transactions balances related parties companies indicated identified related parties directly indirectly connected brunello cucinelli group shareholders reference pursuant consob resolution march acknowledged group enter major material transactions related parties significantly affected group financial situation net profit year annual financial report consolidated financial statements transactions part normal operations brunello cucinelli group companies carried exclusive interest group applying contractual conditions consistent theoretically achievable negotiations third parties details brunello cucinelli group transactions balances related parties december follows euro revenues costs raw materials consumables costs services payroll costs operating income financial income property plant equipment intangible assets non cur rent financial assets trade receiva bles trade payables current liabilities cariaggi lanificio gruppo cucinelli brunello cucinelli family directors executives strategic responsibilities foro delle arti solomei castello solomeo brunello cucinelli foundation oratorio interreligioso clinica medicina rigenerativa solomeo prime service italia zephyr total related parties total consolidated financial statements proportion annual financial report consolidated financial statements following table sets balances december arising application standard ifrs related party transactions euro right use liabilities non current financial liabilities leases liabilities current financial liabilities leases depreciation amortization financial expenses foro delle arti total related parties total consolidated financial statements proportion specifically commercial relationships enzo cucinelli brother brunel cucinelli holds share capital mainly relate net value investments furnishing points sale company premises cariaggi lanificio parent company trade relations company cariaggi lanificio essentially concern purchase yarn production furthermore based relationship associa tion parent company cariaggi lanificio value interest recorded oth non current financial assets well financial income deriving valuation equity investment shareholders equity method required accounting standards ias gruppo cucinelli association conducts surveillance buildings located solomeo used group business noted brunello cucinelli group associates brunello cucinelli family remuneration deriving employment relationship fees office director parent company brunello cucinelli family members directors executives strategic responsibilities includes remuneration paid executives strategic responsibilities employment relationship emoluments position directors parent company including emoluments ceos well balances december relating stock grant plan stock grant plan foro delle arti company brunello cucinelli chairman chief executive officer holds parent company december transactions mainly refer residual net book value instrumental buildings acquired previous financial years balances relating con tracts force parties also refer leases buildings used company conducting operations area close company headquarters amounts involved set table include effects applying accounting standard ifrs solomei relations solomei shares held arti ceos refer implementation development maintenance brunello cucinelli innovative website based arti ficial intelligence annual financial report consolidated financial statements castello solomeo company owned foro delle arti chairman brunello cucinelli relations company castello solomeo mainly refer supply high quality oil wine mainly used artisan events held group support allure brand fondazione brunello cucinelli oratorio interreligioso clinica medicina rigenerativa solomeo prime service italia zephyr insignificant amounts mainly regarding charge backs services performed significant events december reference made report operations board directors significant events occurring reporting date consolidated financial statements annual financial report consolidated financial statements compensation board directors board statutory audi tors amount remuneration due members board directors brunello cucinelli december equal total thousand compensation accruing board statutory auditors brunello cucinelli december amounted thousand table shows compensation due members board directors year ended decem ber brunello cucinelli direct indirect subsidiaries board directors euro year ended december full name office held term office expiry remuneration fees participation committees non monetary benefits bonuses incentives remuneration remuneration received subsidiaries overall total brunello cucinelli chairman jan dec riccardo stefanelli director chief executive officer jan dec luca lisandroni director chief executive officer jan dec giovanna manfredi director jan dec camilla cucinelli director jan dec carolina cucinelli director jan dec alessio piastrelli director apr dec stefano domenicali independent director jan dec andrea pontremoli independent director jan dec ramin arani independent director jan dec maria cecilia manna independent director jan dec emanuela bonadiman independent director jan june guido barilla independent director jan dec chiara dorigotti independent director jan dec katia riva independent director july dec approval financial statements note amounts stated include salaries received employee income annual financial report consolidated financial statements table summarises remuneration paid members board statutory auditors year ended december board statutory auditors euro year ended december full name office held term office expiry remuneration overall total paolo prandi chairperson jan dec anna maria fellegara standing auditor jan dec dante valobra standing auditor jan dec approval financial statements disclosure pursuant article duodecies issuers regulation type service euro service provided recipient total fees audit auditor parent company parent company services auditor parent company parent company subtotal audit network parent company auditor subsidiary auditors subsidiary subtotal total balances transactions deriving atypical unusual operations pursuant consob communication dem july noted atypical unusual transactions defined said communication solomeo march brunello cucinelli chairman board directors riccardo stefanelli chief executive officer product operations area luca lisandroni chief executive officer markets area annual financial report certification per art bis legislative decree dated february consolidated law finance article ter consob reg dated may amended undersigned luca lisandroni chief executive officer markets area riccardo stefanelli chief executive officer product operations area dario pipitone financial reporting officer brunello cucinelli hereby certify taking account provisions article bis para graphs legislative decree february adequacy respect company effective application administrative accounting procedures preparation annual consolidated financial statements period january december significant aspects arose applying administrative accounting procedures preparation annual consolidated financial statements december also certify annual consolidated financial statements prepared accordance international accounting standards recognised european community per regulation european parliament council july agree balances books account accounting records suitable providing true fair view financial position results cash flows issuer well set companies included consolidation report operations board directors includes fair review development per formance operations position issuer undertakings included consolidation taken whole together description principal risks uncertainties exposed solomeo march luca lisandroni chief executive officer markets area riccardo stefanelli chief executive officer prod uct operations area dario pipitone financial reporting officer certification consolidated sustainability report undersigned luca lisandroni chief executive officer markets area chief executive officer product operations area dario pipitone financial reporting office brunello cucinelli hereby certify pursuant art bis para ter italian leg decree february consolidated sustainability report included report operations board directors prepared compliance reporting standards applied pursuant directive european parlia ment council june legislative decree september specifications adopted pursuant article regulation european parlia ment council june solomeo march luca lisandroni chief executive officer markets area riccardo stefanelli chief executive officer product operations area dario pipitone financial reporting officer annual financial report report independent auditors annual financial report independent auditor report accordance article legislative decree january article regulation brunello cucinelli spa consolidated financial statements december annual financial report independent auditor report accordance article legislative decree january article regulation shareholders brunello cucinelli spa report audit consolidated financial statements opinion audited consolidated financial statements brunello cucinelli group group comprise consolidated statement financial position december consolidated income statement statement comprehensive income consolidated statement changes equity consolidated statement cash flows year ended notes consolidated financial statements including material accounting policy information opinion consolidated financial statements give true fair view financial position group december result operations cash flows year ended accordance ifrs accounting standards issued international accounting standards board adopted european union well regulations issued implement article legislative decree basis opinion conducted audit accordance international standards auditing isa italia responsibilities standards described auditor responsibilities audit consolidated financial statements section report independent brunello cucinelli spa company pursuant regulations standards ethics independence applicable audits financial statements italian law believe audit evidence obtained sufficient appropriate provide basis opinion key audit matters key audit matters matters professional judgment significance audit consolidated financial statements current period matters addressed context audit consolidated financial statements whole forming opinion thereon provide separate opinion matters annual financial report consolidated financial statements key audit matters auditing procedures performed response key audit matters recognition measurement right use assets note right use consolidated financial statements december right use assets related financial liabilities recognised accordance ifrs leases totalled euro million euro million respectively relate mainly leases group boutiques showrooms amortisation financial charges period related items totalled euro million euro million respectively connection lease liabilities ifrs provides limited exceptions recognition rights use non current assets corresponding entry financial liabilities reflects present value future lease payments right use asset amortised income statement term lease agreement financial liability repaid together financial charges lease payments furthermore accordance ias impairment assets reference financial statements december management determined indicators potential impairment right use assets present based impairment testing procedure approved board directors recognition measurement right use assets key audit matter consideration complexity item due large number lease agreements diverse contractual clauses place require high degree judgement developing assumptions underlying recognition obtained understanding internal control recognition lease contracts validated controls considered relevant understood evaluated reasonableness accounting policies assumptions used management recognition lease contracts accordance ifrs performed tests details sample basis clauses lease contracts key assumptions particular reference definition term lease effect extension options used management recognition measurement financial statement items analysis supporting evidence support valuation modelling experts pwc network performed independent estimation discount rates used management determine financial liabilities related lease contracts entered year moreover understood evaluated procedure adopted management december identify indicators impairment right use assets finally evaluated completeness adequacy disclosures provided consolidated financial statements annual financial report consolidated financial statements responsibilities directors board statutory auditors consolidated financial statements directors responsible preparation consolidated financial statements give true fair view accordance ifrs accounting standards issued international accounting standards board adopted european union well regulations issued implement article legislative decree terms prescribed law internal control determine necessary enable preparation consolidated financial statements free material misstatement whether due fraud error directors responsible assessing group ability continue going concern preparing consolidated financial statements appropriate application going concern basis accounting disclosing matters related going concern preparing consolidated financial statements directors use going concern basis accounting unless either intend liquidate brunello cucinelli spa cease operations realistic alternative board statutory auditors responsible overseeing terms prescribed law group financial reporting process auditor responsibilities audit consolidated financial statements objectives obtain reasonable assurance whether consolidated financial statements whole free material misstatement whether due fraud error issue auditor report includes opinion reasonable assurance high level assurance guarantee audit conducted accordance international standards auditing 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 conducted accordance international standards auditing isa italia exercised professional judgement maintained professional scepticism throughout audit furthermore identified assessed risks material misstatement consolidated financial statements whether due fraud error designed performed audit procedures responsive risks obtained 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 obtained understanding internal control relevant audit order design audit procedures appropriate circumstances purpose expressing opinion effectiveness group internal control evaluated appropriateness accounting policies used reasonableness accounting estimates related disclosures made directors concluded 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 annual financial report consolidated financial statements required draw attention auditor report related disclosures consolidated financial statements disclosures inadequate modify opinion conclusions based audit evidence obtained date auditor report however future events conditions may cause group cease continue going concern evaluated overall presentation structure content consolidated financial statements including disclosures whether consolidated financial statements represent underlying transactions events manner achieves fair presentation obtained 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 consolidated financial statements communicated charged governance identified appropriate level required isa italia regarding among matters planned scope timing audit significant audit findings including significant deficiencies internal control identified audit also provided charged governance statement complied regulations standards ethics independence applicable italian law communicated relationships matters may reasonably thought bear independence applicable actions taken eliminate related risks safeguards applied matters communicated charged governance determined matters significance audit consolidated financial statements current period therefore key audit matters described matters auditor report additional disclosures required article regulation april shareholders brunello cucinelli spa general meeting engaged perform statutory audit company consolidated financial statements years ending december december declare provide prohibited non audit services referred article paragraph regulation remained independent company conducting statutory audit confirm opinion consolidated financial statements expressed report consistent additional report charged governance capacity audit committee prepared pursuant article aforementioned regulation annual financial report consolidated financial statements report compliance laws regulations opinion compliance provisions commission delegated regulation directors brunello cucinelli spa responsible application provisions commission delegated regulation concerning regulatory technical standards specification single electronic reporting format esef european single electronic format hereinafter commission delegated regulation consolidated financial statements december included annual report performed procedures specified auditing standard italia order express opinion compliance consolidated financial statements provisions commission delegated regulation opinion consolidated financial statements december prepared xhtml format marked significant respects compliance provisions commission delegated regulation opinions statement accordance article paragraph letters bis ter legislative decree article bis paragraph legislative decree directors brunello cucinelli spa responsible preparing report operations report corporate governance ownership structure brunello cucinelli group december december including consistency relevant consolidated financial statements compliance law performed procedures required auditing standard italia order express opinion consistency report operations specific information included report corporate governance ownership structure referred article bis paragraph legislative decree consolidated financial statements express opinion compliance law report operations excluding section consolidated sustainability reporting specific information included report corporate governance ownership structure referred article bis paragraph legislative decree issue statement material misstatements report operations specific information included report corporate governance ownership structure referred article bis paragraph legislative decree opinion report operations specific information included report corporate governance ownership structure referred article bis paragraph legislative decree consistent consolidated financial statements brunello cucinelli group december annual financial report moreover opinion report operations excluding section consolidated sustainability reporting specific information included report corporate governance ownership structure referred article bis paragraph legislative decree prepared compliance law reference statement referred article paragraph letter ter legislative decree issued basis knowledge understanding company environment obtained course audit nothing report opinion compliance law extend section report operations relating consolidated sustainability reporting conclusions compliance section rules governing preparation compliance disclosure requirements established article regulation expressed report prepared accordance article bis legislative decree pescara april pricewaterhousecoopers spa signed stefano amicone partner independent auditor report translated english language solely convenience international readers accordingly original text italian language authoritative annual financial report independent auditor limited assurance report consolidated sustainability report brunello cucinelli spa independent auditor limited assurance report consolidated sustainability annual financial report independent auditor limited assurance report consolidated sustainability report accordance article bis legislative decree january shareholders brunello cucinelli spa conclusion accordance articles paragraph legislative decree september hereinafter also decree undertaken limited assurance engagement consolidated sustainability report brunello cucinelli group hereinafter also group year ended december prepared accordance article decree presented specific section consolidated report operations based procedures performed nothing come attention causes believe consolidated sustainability report brunello cucinelli group year ended december prepared material respects accordance reporting criteria adopted european commission pursuant directive european sustainability reporting standards hereinafter also esrs information set section titled european taxonomy consolidated sustainability report prepared material respects accordance article regulation june hereinafter also taxonomy regulation basis conclusion conducted 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 auditor responsibilities limited assurance conclusion consolidated sustainability report section report independent accordance principles ethics independence applicable assurance engagements consolidated sustainability reporting italian law firm applies international standard quality management isqm italia requires firm design implement operate system quality management including policies annual financial report procedures regarding compliance ethical requirements professional standards applicable legal regulatory requirements believe evidence obtained sufficient appropriate provide basis conclusion matters comparative information consolidated sustainability report year ended december contains specific section titled european taxonomy comparative information referred article taxonomy regulation relation year ended december subjected assurance procedures responsibilities directors board statutory auditors brunello cucinelli spa consolidated sustainability report directors responsible developing implementing procedures adopted identify information included consolidated sustainability report accordance provisions esrs hereinafter materiality assessment process describing procedures section titled iro description processes identifying evaluating material impacts risks opportunities consolidated sustainability report directors also responsible preparing consolidated sustainability report contains information identified materiality assessment process accordance provisions article decree including compliance esrs compliance article taxonomy regulation information set section titled european taxonomy responsibility involves designing implementing maintaining terms prescribed law internal control determine necessary enable preparation consolidated sustainability report accordance article decree free material misstatement whether due fraud error responsibility also involves selecting applying appropriate methods processing information well developing hypotheses estimates specific items sustainability information reasonable circumstances board statutory auditors responsible overseeing terms prescribed law compliance decree inherent limitations preparation consolidated sustainability report purpose reporting forward looking information accordance esrs directors required prepare information basis assumptions described consolidated sustainability report future events possible future actions group annual financial report uncertainty connected future event terms occurrence extent timing occurrence variances actual results forward looking information may significant disclosure provided company scope emissions subject greater inherent limitations compared scope emissions poor availability relative accuracy information used define qualitative quantitative information scope emissions related value chain auditor responsibilities limited assurance conclusion consolidated sustainability report objectives plan perform procedures obtain limited assurance whether consolidated sustainability report free material misstatement whether due fraud error issue limited assurance report contains conclusion misstatements arise fraud error considered material individually aggregate could reasonably expected influence decisions users taken basis consolidated sustainability report part engagement designed achieve limited assurance accordance standard sustainability assurance engagements ssae italia exercised professional judgement maintained professional scepticism throughout engagement responsibilities include performing risk assessment procedures identify disclosures material misstatement whether due fraud error likely arise designing performing procedures verify disclosures material misstatement likely arise risk detecting material misstatement resulting fraud higher one resulting error fraud may involve collusion forgery intentional omissions misrepresentations override internal control directing supervising performing limited assurance engagement consolidated sustainability report assuming full responsibility conclusion consolidated sustainability report summary work performed engagement designed obtain limited assurance involves performing procedures obtain evidence basis conclusion procedures performed based professional judgement included inquiries primarily personnel brunello cucinelli spa responsible preparation information presented consolidated sustainability report analyses documents recalculations procedures designed obtain evidence considered useful performed following main procedures understood group business model strategies environment operates reference sustainability issues annual financial report understood processes underlying generation collection management qualitative quantitative information included consolidated sustainability report understood process implemented group identify assess material impacts risks opportunities accordance double materiality principle related sustainability issues based information thus obtained considered whether contradictory items emerged could point existence sustainability issues considered company materiality assessment process identified disclosures material misstatement likely arise defined performed procedures based professional judgement address risks material misstatement identified understood process implemented group identify eligible economic activities determine whether aligned accordance provisions taxonomy regulation verified related disclosures consolidated sustainability report reconciled information reported consolidated sustainability report information reported consolidated financial statements accordance applicable financial reporting framework accounting information used preparation consolidated financial statements management accounting information verified structure presentation disclosures included consolidated sustainability report accordance esrs obtained management representation letter pescara april pricewaterhousecoopers spa signed stefano amicone partner independent auditor report translated english language solely convenience international readers accordingly original text italian language authoritative

