Zegna Investor Day Presentation Deck slide image

Zegna Investor Day Presentation Deck

CAPITAL MARKETS DAY Non-IFRS Financial Measures (1) Relates to legal costs of €7,532 thousand incurred in 2022 by the Thom Browne Segment in connection with a legal dispute between adidas and Thom Browne, primarily in relation to the use of trademarks. For additional information see "Item 8.A-Consolidated Statements and Other Financial Information-Legal Proceedings" in Zegna's Annual Report on Form 20-F for the fiscal year ended December 31, 2022. This amount is recorded within the line item "purchased, outsourced and other costs" in the consolidated statement of profit and loss. (2) Relates to transaction costs of €2,289 thousand incurred in 2022 in connection with acquisitions, primarily for consultancy and legal fees related to the TFI Acquisition. This amount is recorded within the line item "purchased, outsourced and other costs" in the consolidated statement of profit and loss and is related to Corporate. (3) Relates to severance indemnities incurred by the Zegna Segment of €2,199 thousand, recorded within the line item "personnel costs" in the consolidated statement of profit and loss. (4) Costs related to the Business Combination of €2,137 thousand relate to the grant of equity awards to management in 2021 with vesting Ermenegildo Zegna Group — FINANCIALS explanatory notes subject to the public listing of the Company's shares and certain other performance and/or service conditions. This amount is recorded within the line item "personnel costs" in the consolidated statement of profit and loss and relates to the Zegna Segment for €1,101 thousand, to the Thom Browne Segment for €98 thousand and to Corporate for €938 thousand. For additional information please refer to Note 40- Shared-based payments of the Consolidated Financial Statements for the year ended December 31, 2022. (5) Net impairment of leased and owned stores includes (i) impairment of €2,369 thousand related to right-of-use assets, (ii) reversals of impairment of €756 thousand related to property plant and equipment and (iii) impairment of €26 thousand. Impairment and reversals of impairment of leased and owned stores are recorded within the line item "depreciation, amortization and impairment of assets" in the consolidated statement of profit and loss and relate entirely to the Zegna Segment for the periods presented, with the exception of impairment of €820 thousand relating to the Thom Browne Segment. (6) Relates to a donation of €1,000 thousand to the United Nations High Commissioner for Refugees ("UNHCR") to support initiatives related to © COPYRIGHT ERMENEGILDO ZEGNA GROUP 2023 05.12.23 the humanitarian emergency in Ukraine. This amount is recorded within the line item "other operating costs" in the consolidated statement of profit and loss and is related to Corporate. (7) Net (income)/costs related to lease agreements relate entirely to the Zegna Segment and include: (i) proceeds of €6,500 thousand received from new tenants in order for Zegna to withdraw from existing lease agreements of commercial properties (recorded within the line item "other income" in the consolidated statement of profit and loss) and (ii) €950 thousand for reversals of previously recognized provisions in respect of a legal claim related to a lease agreement in the US (recorded within "write downs and other provisions" in the consolidated statement of profit and loss), partially offset by (ii) €606 thousand for losses related to a sublease agreement in the US (recorded within "other operating costs" in the consolidated statement of profit and loss). 148
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