Zegna Investor Day Presentation Deck slide image

Zegna Investor Day Presentation Deck

NON-IFRS FINANCIAL MEASURES Ermenegildo Zegna Group Explanatory Notes (1) Costs related to the Business Combination include: (a) €114,963 thousand relating to share-based payments for listing services recognized as the excess of the fair value of Zegna ordinary shares issued as part of the Business Combination and the fair value of IIAC's identifiable net assets acquired. This amount is related to the Zegna segment; (b) €37,906 thousand for the issuance of 5,031,250 Zegna ordinary shares to the holders of IIAC class B shares to be held in escrow. This amount is recorded within the Zegna segment; (c) €34,092 thousand for transaction costs related to the Business Combination incurred by Zegna, including costs for bank services, legal advisors and other consultancy fees. This amount is related to the Zegna segment; (d) €10,916 thousand for the Zegna family's grant of a one-time €1,500 gift to each employee of the Zegna group as result of the Company's listing on NYSE completed on December 20, 2021. This amount is related to the Zegna segment for €10,120 thousand and to the Thom Browne segment for €796 thousand; (e) €5,380 thousand relating to grant of performance share units, which each represent the right to receive one Zegna ordinary share, the Group's Chief Executive Officer, other Zegna directors, key executives with strategic responsibilities and other employees of the Group, all subject to certain vesting conditions. This amount is related to the Zegna segment for €5,141 thousand and to Thom Browne segment for €239 thousand; (f) €1,236 thousand related to the fair value of private warrants issued, pursuant to the Business Combination, to certain Zegna non-executive directors. This amount is related to the Zegna segment. (g) €566 thousand related to the write-off of non-refundable prepaid premiums for directors' and officers' insurance. This amount is related to the Zegna segment (2) Costs related to lease agreements for the year ended December 31, 2021, are related to Zegna segment and include (i) €12, 192 thousand of provisions relating to a lease agreement in the US following an unfavorable legal claim judgment against the Group, (ii) €1,492 thousand of legal expenses related to a lease agreement in Italy and (iii) €1,829 thousand in accrued property taxes related to a lease agreement in the UK. (3) Zegna incurred costs for severance indemnities of €8,996 thousand. (4) Primarily includes impairments of right-of-use assets for €5,981 thousand and impairments of property plant and equipment for €654 thousand. In particular, the impairment of right-of-use assets and property, plant and equipment primarily relates to the impairment of DOSs of Zegna segment. (5) Other adjustments are related to Zegna segment and include €6,006 thousand related to losses incurred by Agnona subsequent to the Group's sale of a majority stake in Agnona in January 2021, for which the Group was required to compensate the company in accordance with the terms of the related sale agreement, as well as €144 thousand relating to the write down of the Group's remaining 30% stake in Agnona (both of which are recorded within the line item "write downs and other provisions" in the consolidated statement of profit and loss), partially offset by other income of €1,266 thousand relating to the sale of rights to build or develop airspace above a building in the United States (this amount is recorded within the line item "other income" in the consolidated statement of profit and loss). 17/05/22 135
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