MONCLER ANNUAL REPORT AT 31 DECEMBER 2020SEPARATE FINANCIAL STATEMENTS 177176
The following tables summarise the weight of related-party transactions on the financial statements as at and for the years ended 31 December 2020 and 2019:
8.2. STOCK-BASED COMPENSATION PLANS
The Financial Statements at 31 December 2020 reflects the values of the Stock Option Plans approved in 2015, the Per- formance Shares Plan approved in 2016, in 2018 and in 2020.
The costs related to stock-based compensation plans are equal to 7.959 thousand euros in the 2020, compared with 6.402 thusand euros in 2019. With regard to Stock Option Plan approved in 2015, please note that: The 2015 Plan provided for a vesting period which end-
ed with the approval of the Consolidated Financial Statements as at 31 December 2017. The exercise of the options granted was on condition that the specific per- formance goals related to Group s consolidated EBITDA were achieved. Please note that these performance goals have been achieved;
The options could be exercised within 30 June 2020 at the latest;
The exercise price of the options was equal to 16.34 eu- ros and allows for the subscription of shares in the ratio of one ordinary share for every option exercised;
The fair value of 2015 Plan was estimated at the grant date using the Black-Scholes method, based on the fol- lowing assumptions: share price at the grant date of the options 16.34
euros; estimated life of options equal to the period from
the grant date to the following estimated exercise: 31 May 2019;
dividend yield 1%; fair value per tranches 3.2877 euros.
There are no effect on the income statement of 2020, while the increase of the net equity for the exercise of the vested options of the Plan amounted to 1,116 thousand euros.
As at 31 December 2020 there aren t options still in cir- culation.
On 20 April 2016, the Shareholders Meeting of Moncler ap- proved the adoption of a Stock Grant Plan entitled 2016-2018
Performance Shares Plan ( 2016 Plan ) addressed to Execu- tive Directors and/or Key Managers, and/or employees, and/or collaborators, and/or external consultants of Moncler S.p.A. and of its subsidiaries, which have strategically relevant roles or are otherwise capable of making a significant contribution, with a view to pursuing Group s strategic objectives.
The object of the Plan is the free granting of the Moncler shares in case certain performance targets are achieved at the end of the vesting period of 3 years.
The performance targets are expressed base on the earn- ing per share index ( EPS ) of the Group in the vesting period, adjusted by the conditions of over/under performance.
The proposed maximum number of shares serving the Plan is equal to No. 3,800,000 resulting from a capital increase and/or from the allocation of treasury shares.
The Plan provides for a maximum of 3 cycles of attribu- tion; the first attribution cycle, approved during 2016, ended with the assignment of 2,856,000 Moncler Rights, the second attribution cycle approved on 29 June 2017 assigned 365,500 Moncler Rights. As regards the first allocation cycle, the plan ended in 2019; for further information please refer to 2019 Annual Report. As regards the second allocation cycle: The 3-year vesting period ended with the approval of the
Draft Financial Statements as at 31 December 2019. The performance targets were met, together with the
over-performance condition. Therefore, No. 388,800 shares (including No. 64,800 sha-
res deriving from over-performance) were assigned to the beneficiaries through a share capital increase (No. 304,800 shares) and the allocation of treasury shares (No. 84,000 shares).
As at 31 December 2020 there aren t rights still in circulation. The effect on the income statement on the year 2020 amounted to 191 thousand euros.
On 16 April 2018 the Shareholders Meeting of Moncler ap- proved the adoption of a Stock Grant Plan entitled 2018-2020 Performance Shares Plan ( 2018 Plan ) addressed to Executive Directors and/or Key Managers, and/or employees, and/or col- laborators, and/or external consultants of Moncler S.p.A. and
(Euro/000)
31 December 2020
Revenues Operating expenses
Financial expenses
Financial income
Trade receivables
Other current
assets Trade
payables
Other payables,
current
Total financial
debt
Total financial
receivables
Total related parties 237,971 (7,198) (79) 332 135,820 269 (42) (9,787) 0 54,439
Total financial statement 238,601 (79,689) (352) 420 136,078 1,707 (16,154) (15,679) (1,316) 54,439
Weight % 99.7% 9.0% 22.4% 79.0% 99.8% 15.8% 0.3% 62.4% 0.0% 100.0%
(Euro/000)
31 December 2019
Revenues Operating expenses
Financial expenses
Financial income
Trade receivables
Other current
assets Trade
payables
Other payables,
current
Total financial
debt
Total financial
receivables
Total related parties 272,386 (9,965) (413) 156 60,330 20,305 (11) (14,284) 0 18,940
Total financial statement 273,340 (82,886) (565) 162 60,840 22,454 (19,002) (18,876) (1,605) 18,940
Weight % 99.7% 12.0% 73.1% 96.3% 99.2% 90.4% 0.1% 75.7% 0.0% 100.0%
of its subsidiaries, which have strategically relevant roles or are otherwise capable of making a significant contribution, with a view of pursuing the Group s strategic objectives.
The object of the Plan is the free granting of the Moncler shares in case certain performance targets are achieved at the end of the vesting period of 3 years.
The performance targets are expressed base on the earn- ing per share index ( EPS ) of the Group in the vesting period, adjusted by the conditions of over/under performance.
The proposed maximum number of shares serving the Plan is equal to n. 2,800,000 resulting from the allocation of treasury shares.
The Plan provides for a maximum of 3 cycles of attribu- tion; the first attribution cycle, approved during 2018, ended with the assignment of 1,365,531 Moncler Rights. The second attribution cycle, approved during 2019, ended with the as- signment of 341,514 Moncler Rights.
As at 31 December 2020 there were still in circulation 1,232,638 rights related to the first cycle of attribution and 295,504 rights related to the second cycle of attribution. With reference to Moncler S.p.A., as at 31 December 2020 there were still in circulation 292,595 rights related to the first cycle of attribution and 114,906 rights related to the second cycle of attribution. The effect on the income statement on the year 2020 amounted to 6,566 thousand euros.
On 11 June 2020, the Ordinary Shareholders Meeting has approved, pursuant to art. 114-bis of the Consolidated Law on Finance, the adoption of a Stock Grant Plan denomi- nated «2020 Performance Shares Plan addressed to Execu- tive Directors, Key Managers, employees and collaborators, therein including Moncler s external consultants and of its subsidiaries.
The object of the Plan is the free granting of the Moncler shares in case certain Performance Targets are achieved at the end of the vesting period of 3 years.
The Performance Targets are expressed base on the following index of the Group in the Vesting Period, adjust- ed by the conditions of over/under performance: (i) Net Income, (ii) Free Cash Flow and (iii) ESG (Environmental So- cial Governance).
The proposed maximum number of shares serving the Plan is equal to n. 2,000,000 resulting from capital increase and/or allocation of treasury shares.
The Plan provides for a maximum of 3 cycles of attribution; as regards the first attribution cycle, on 11 June 2020 the Board of Directors resolved the granting of 1,350,000 Moncler Rights.
As at 31 December 2020 there were still in circulation 1,252,977 rights related to the first cycle of attribution. With reference to Moncler S.p.A., as at 31 December 2020 there were still in circulation 207,126 rights. The effect on the income statement on the year 2020 amounted to 1,102 thousand euros. As stated by IFRS 2, these plans are defined as Equity Settled.
For information regarding the plan, please see the company s website, www.monclergroup.com, in the «Gov- ernance/Shareholders Meeting» section.
8.3. SIGNIFICANT NON-RECURRING EVENTS AND TRANSACTIONS
In addition to the extraordinary impact on the Group s finan- cial data generated by the Covid-19 pandemic, already com- mented per single item of this consolidated annual report, we point out that, on 11 June 2020, the Ordinary Shareholders Meeting has approved, pursuant to art. 114-bis of the Con- solidated Law on Finance, the adoption of a Stock Grant Plan denominated «2020 Performance Shares Plan addressed to Executive Directors, Key Managers, employees and collabora- tors, therein including Moncler s external consultants and of its subsidiaries. The Board of Directors held at the end of the Ordinary and Extraordinary Shareholders Meeting resolved to implement the Stock Grant Plan and, consequently, ap- proved the plan s implementation regulation and resolved the granting of 1,350,000 shares to 106 beneficiaries. The description of the incentive loyalty plans and the relat- ed costs are included in note 8.2.
The Board of Directors of Moncler S.p.A., on 6 Decem- ber 2020, approved unanimously the project of integration of Sportswear Company S.p.A., owner of the Stone Island brand, into Moncler. The terms of the transactions are governed by a framework agreement signed between Moncler S.p.A., on one hand, and Rivetex S.r.l., on the other, (a company referable to Carlo Rivetti, owner of a stake equal to 50.10% of Sportswear Company S.p.A. s capital) and other shareholders of Sports- wear Company S.p.A., referable to the Rivetti family, owners of a stake equal to 19.90% of Sportswear Company S.p.A. s capital. This transation will be finalized in 2021.
8.4. ATYPICAL AND/OR UNUSUAL TRANSACTIONS
It should be noted that during 2020 the Company did not enter into any atypical and/or unusual transactions.
8.5. FINANCIAL INSTRUMENTS
The following table shows the carrying amount and fair values of financial assets and financialliabilities, including their levels in the fair value hierarchy for financial instru- ments measured at fair value. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasona- ble approximation of fair value.
