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Equity-method investees (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Changes in Carrying Amount of Equity-method investees

Changes in the carrying amount of equity-method investees for the years ended December 31, 2019 and 2018 are analysed as follows.


	Natuzzi Trading Shanghai			Nars Miami LLC		Salena S.r.l.		Other			Total
Balance as at December 31, 2017		—			45		—		34			79
Acquisition of non-controlling interests		48,024			—		—		—			48,024
Elimination of intercompany profit		(7,350	)		—		—		—			(7,350	)
Share of profit/(loss) for the year		(295	)		39		—		(34	)		(290	)
Share of other comprehensive income		(246	)		—		—		—			(246	)
Effect of translation adjustments		—			3		—		—			3

Balance as at December 31, 2018		40,133			87		—		—			40,220
Share of profit for the year		992			19		—		—			1,011
Share of other comprehensive income		111			—		—		—			111

Balance as at December 31, 2019		41,236			106		—		—			41,342

Schedule of Fair Values of Identifiable Assets and Liabilities and Cash Flow Deriving from Transaction of Subsidiary

The fair values of the identifiable assets and liabilities of Natuzzi Trading Shanghai as at the date control was lost were the following:


Assets
Property, plant and equipment			541
Intangible assets			9,397
Other non-current assets			271
Deferred tax assets			167
Inventories			851
Trade receivables			243
Other current receivables			388
Restricted cash for capital contribution			35,000
Cash and cash equivalents			4,886

Total assets (a)			51,744

Liabilities
Deferred tax liabilities			2,349
Trade payables			992
Other payables			3,710
Liabilities for current income tax			31

Total liabilities (b)			7,082

Total identifiable net assets at fair value c = (a-b)			44,662
49% interest measured at fair value (c x 49%)			21,884
Goodwill arising on the transaction			26,140

Fair value of the retained 49% interest			48,024

Details of the net cash flows deriving from the transaction are as follows:


Cash received for the disposal of the 23.54% interest	30,000
Chinese withholding tax	(2,958	)
Cash and cash equivalents of Natuzzi Trading Shanghai	(4,886	)

Net cash flows as per cash flows statement	22,156

Summary of Reconciliation of Fair Value of Retained Interest at the date of loss of control with carrying amount in Consolidated Statement of Financial Position

The following table shows the reconciliation of the fair value of the retained interest in Natuzzi Trading Shanghai at the date of loss of control with the carrying amount as at December 31, 2018 included in the consolidated statement of financial position.


Fair value at the date of loss of control			48,024
Elimination of intercompany profit from licensing Natuzzi trademarks			(7,350	)
Group’s share of profit for the year	311
Elimination of amortisation of Natuzzi’s trademarks	153
Elimination of intercompany profit on inventories	(597	)
Amortisation of intangibles assets	(216	)
Reversal of deferred tax liabilities	54

Group’s share of loss for the year, net of equity method adjustments	(295	)	(295	)

Group’s share of other comprehensive income			(246	)

Carrying amount as at December 31, 2018			40,133

The following table shows the reconciliation of the carrying amount of the retained interest in Natuzzi Trading Shanghai as at December 31, 2018 with the carrying amount as at December 31, 2019 included in the consolidated statement of financial position.


Carrying amount as at December 31, 2018			40,133
Group’s share of profit for the year	1,684
Elimination of amortisation of Natuzzi’s trademarks	368
Elimination of intercompany profit on inventories	(671	)
Amortisation of intangibles assets	(519	)
Reversal of deferred tax liabilities	130

Group’s share of profit for the year, net of equity method adjustments	992		992
Group’s share of other comprehensive income			111

Carrying amount as at December 31, 2019			41,236

Schedule of Cash and Cash Equivalents, Bank Overdrafts and Borrowings

As at December 31, 2019 and 2018 cash and cash equivalents, bank overdrafts and borrowings, lease liabilities current and

non-current

are set out below.


	31/12/19			31/12/18
Cash and cash equivalents		37,049			32,845
Bank overdrafts and borrowings		—			(360	)
Lease liabilities current		(1,982	)		—
Lease liabilities non-current		(5,004	)		—

Total, net		30,063			32,485

Summarized Statement of Financial Position and Profit or Loss of Joint Venture

Summarised statement of financial position of Natuzzi Trading Shanghai and Group’s share in equity as at December 31, 2019 and 2018


	31/12/19			31/12/18
Current assets		48,910			42,288
Non-current assets		23,166			15,785
Current liabilities		(25,663	)		(20,328	)
Non-current liabilities		(5,004	)		—

Equity		41,409			37,745
Group’s share in equity – 49%		20,290			18,495
Intangible assets		3,870			4,389
Goodwill		26,140			26,140
Elimination of intercompany profit from licensing Natuzzi’s trademarks		(6,829	)		(7,197	)
Elimination of intercompany profit on inventories		(1,268	)		(597	)
Deferred tax liabilities		(967	)		(1,097	)

Group’s carrying amount of the investment		41,236			40,133

Summarised statement of profit or loss of Natuzzi Trading Shanghai and Group’s share of profit for the year ended December 31, 2019 and for the period July 27, 2018 – December 31, 2018


	2019			2018
Revenue		52,714			13,836
Cost of sales		(33,754	)		(8,197	)
Other income and expenses, net		41			919
Selling expenses		(13,570	)		(5,141	)
Administrative expenses		(1,883	)		(632	)
Net finance income		1,194			350

Profit before tax		4,742			1,135
Income tax expense		(1,304	)		(500	)

Profit for the period		3,438			635
Other comprehensive profit/(loss)		227			(503	)

Total comprehensive profit for the period		3,665			132
Group’s share of profit for the period – 49%		1,684			311
Elimination of amortisation of Natuzzi’s trademarks		368			153
Elimination of intercompany profit on inventories		(671	)		(597	)
Amortisation of intangible assets		(519	)		(216	)
Deferred tax liabilities		130			54

Group’s share of profit/(loss) for the period, net of equity method adj.		992			(295	)
Group’s share of other comprehensive income/(loss) for the period		111			(246	)

Group’s share of total comprehensive income/(loss) for the period		1,103			(541	)