Breakdown of difference

between

statutory and effective

tax

rates:

The effective tax rate is as follows:


	For the years ended December 31,
(Euro thousands)	2022			2021			2020



Loss before tax		(239,880	)		(72,121	)		(137,260	)
Total income tax benefits / (expenses)		129			(4,331	)		1,603

Effective tax rate		0.05	%		(6.01	%)		1.17	%

The reconciliation between the Group’s theoretical tax and its income taxes is

presented

in the table below:


	For the years ended December 31,
(Euro thousands)	2022			2021			2020


Loss before tax		(239,880	)		(72,121	)		(137,260	)
Group’s weighted theoretical tax (calculated in absolute values on the basis of subsidiaries’ pre-taxable income/loss)		57,651			18,420			37,964
Tax effect on:
Differences between foreign tax rates and the theoretical applicable tax rate and tax holidays		(2,458	)		832			5,921
Taxes relating to prior years		111			1,629			5,117
Deferred tax assets not recognized		(55,686	)		(25,462	)		(48,189	)
Other tax items		511			250			790

Total income tax benefits / (expenses)		129			(4,331	)		1,603

Deferred tax assets and deferred tax liabilities

Deferred taxes reflect the net tax effect of temporary differences between the book value and the taxable amount of

assets

and liabilities

Breakdown for deferred

tax

assets and deferred

tax

liabilities


(Euro thousands)	At December 31, 2021		Increase from business combination		Recognized in profit or loss			Recognized in other comprehensive loss			Exchange difference and other			At December 31, 2022


Deferred tax assets arising on :
Employee benefits		2,266		—		(295	)		(371	)		—			1,600
Property plant and equipment		692		—		193			—			—			885
Deferred tax assets on rental contracts; if any		2,529		—		1,349			—			130			4,008
Intangible assets		3,262		—		(815	)		—			—			2,447
Inventories		3,945		—		1,250			—			—			5,195
Provisions and accrued expenses		1,803		—		810			—			—			2,613
Receivables and other assets		402		—		(243	)		—			—			159
Tax losses		1,940		—		(1,473	)		—			(276	)		191
Other		231		—		21			—			(53	)		199

Total deferred tax assets		17,070		—		797			(371	)		(199	)		17,297

Deferred tax liabilities arising on:
Intangible assets		51,994		—		1,213			—			—			53,207
Receivables and other assets		945		—		(806	)		—			—			139
Other		1,240		—		72			—			2			1,314

Total deferred tax liabilities		54,179		—		479			—			2			54,660


(Euro thousands)	At December 31, 2020		Increase from business combination		Recognized in profit or loss			Recognized in other comprehensive loss		Exchange difference and other			At December 31, 2021

Deferred tax assets arising on:
Employee benefits		2,028		—		196			42		—			2,266
Property plant and equipment		117		—		583			—		(8	)		692
Deferred tax assets on rental contracts; if any		4,711		570		(3,060	)		—		308			2,529
Intangible assets		1,213		2,049		—			—		—			3,262
Inventories		1,143		3,078		(276	)		—		—			3,945
Provisions and accrued expenses		1,673		103		27			—		—			1,803
Receivables and other assets		395		521		(514	)		—		—			402
Tax losses		2,156		—		(308	)		—		92			1,940
Other		172		153		(94	)		—		—			231

Total deferred tax assets		13,608		6,474		(3,446	)		42		392			17,070

Deferred tax liabilities arising on:
Intangible assets		51,131		863		—			—		—			51,994
Receivables and other assets		1,436		—		(491	)		—		—			945
Other		717		3		520			—		—			1,240

Total deferred tax liabilities		53,284		866		29			—		—			54,179

Each company in the Group decides to recognize deferred tax assets by assessing whether the conditions exist for the future recoverability of such assets by taking into account the basis of the most recent forecasts. Deferred tax assets and deferred tax liabilities of individual companies are offset where they may be legally offset and management has the intention to settle them through netting.

The following table provides the details of tax losses carried forward for which no deferred tax assets were recognized:


	At December 31,
(Euro thousands)	2022		2021

Expiry within 5 years		57,616		76,457
Expiry over 5 years		154,293		141,342
No expiration		712,965		569,948

Total tax losses carried forward		924,874		787,747

The Group’s management updated the deferred tax assets recognized on tax loss carry forward taking into consideration, for their recoverability, the macroeconomic scenario and the business developments of each of the Group’s companies.