XML 79 R66.htm IDEA: XBRL DOCUMENT

Employees' leaving entitlement (Tables)

12 Months Ended

Dec. 31, 2022

Disclosure of information about defined benefit plans [abstract]

Summary of Changes to Employees' Leaving Entitlement

Changes to employees’ leaving entitlement occurring during 2022 and 2021 are analysed as follows:


		31/12/22				31/12/21
Balance at beginning of year			15,588				15,747
Current service cost			80				103
Interest expense			151				51
Benefits paid			(446	)			(940	)
Actuarial losses/(gains)			(2,309	)			627
Balance at end of year			13,064				15,588

Summary of Assumptions Used in Determining Present Value of Defined Benefit Obligation Related to Employee Benefit Obligation

The principal assumptions used in determining the present value of such defined benefit obligation (“DBO”) related to the employee benefit obligation are reported as follows:


		31/12/22		31/12/21
Annual discount rate		3.63%		0.98%
Annual future salary increase rate		2.30%		1.75%
Annual inflation rate		2.30%		1.75%
Annual DBO increase rate		3.23%		2.81%
Mortality		RG48 mortality tables published by the General State Accounting
Inability		National Institute for Social Security tables, by age and sex
Retirement		100% upon achievement of AGO requisites
Annual frequency of turnover		2.00%		2.00%
Annual frequency of DBO advances		2.00%		2.00%

Summary of Quantitative Sensitivity Analysis for Significant Assumptions

A quantitative sensitivity analysis for significant assumptions impacting the DBO as at December 31, 2022 and 2021 is reported as follows:


		31/12/22				31/12/21
+1% on turnover rate			70				(118	)
-1% on turnover rate			(76	)			130
+0.25% on annual inflation rate			175				232
-0.25% on annual inflation rate			(172	)			(227	)
+0.25% on annual discount rate			(268	)			(362	)
-0.25% on annual discount rate			276				375

Schedule of Expected Payments or Contributions to Defined Benefit Plan

The following are the expected payments of the employees’ leaving entitlement in future years:


		31/12/22				31/12/21
Within 1 year			1,027				769
Between 2 and 5 years			2,857				3,223

Schedule of Options Granted to Key Officer Beneficiaries

.


Grant date/beneficiaries		Number of equity-based instruments		Vesting conditions		Contractual life of the options
Three key officers having strategic functions – July 15, 2022		562,512 ADSs equivalent to 2,812,560 ordinary shares		Continuous service status until the vesting date		From 1 to 6 years

In particular, the number of ordinary shares of Natuzzi S.p.A. that each of the three beneficiaries can subscribe for pursuant to the relevant award agreements is broken down below and shown in terms of ADS equivalent.


Vesting Date		Beneficiary 1				Beneficiary 2				Beneficiary 3				Total
15/Aug/22			36,533				6,583				44,000				87,116
31/May/23			54,800				9,874				33,000				97,674
31/May/24			54,800				9,874				38,338				103,012
31/May/25			73,067				13,165				5,338				91,570
31/May/26			73,067				13,165				5,338				91,570
31/May/27			73,067				13,165				5,338				91,570
Total			365,334				65,826				131,352				562,512

The date by which the options can be exercised is December 31, 2027 for beneficiaries 1 and 2 and December 31 of each vesting year up to December 31, 2027 for beneficiary 3. In particular, beneficiary 3 has been granted two sets of stock options with different exercise prices: the first set vesting through December 31, 2024 and granting such beneficiary the right to subscribe for up to 550,000 ordinary shares of Natuzzi S.p.A. (equivalent to 110,000 ADSs) and the second set vesting through December 31, 2027 and granting such beneficiary the right to subscribe for up to 106,760 ordinary shares of Natuzzi S.p.A. (equivalent to 21,352 ADSs)

Summary of Inputs Used in Measurement of Fair Values at Grant Date of Equity Settled Share-based Payment Plans

:


Input data		Beneficiary 1				Beneficiary 2				Beneficiary 3 (sub 1)				Beneficiary 3 (sub 2)
Fair value of the ADS option at grant date		$	4.3900			$	4.3000			$	4.5300			$	3.3700
EURUSD exchange rate at grant date		n.a.				n.a.					1.0059			n.a.
Closing price of the ADS at grant date		$	8.8700			$	8.8700			$	8.8700			$	8.8700
Currency of the exercise price		U.S. dollar				U.S. dollar				Euro				U.S. dollar
Exercise price		$	14.5950			$	15.3450			$	5.0295			$	15.6000
Expected volatility of the stock price (weighted-average)			67.73	%			67.73	%			67.73	%			67.73	%
Expected volatility of the EURUSD exchange rate		n.a.				n.a.					7.27	%		n.a.
Expected life (weighted-average) *		2.72 years				2.72 years				0.51 years				0.59 years
Expected dividends			—				—				—				—
Risk-free interest rate (based on government bonds)			2.80	%			2.80	%			2.80	%			2.80	%

(*) average of the different vesting dates.

Schedule of Number and Weighted-Average Exercise Prices of Share Options

:


		Number of options (ADS)				Weighted-average exercise price (ADS)
Outstanding as at January 1, 2022			—				—
Granted during the year			562,512			$	12.85
Forfeited during the year			—				—
Exercised during the year			44,000			$	5.03
Outstanding as at December 31, 2022			518,512			$	13.51
Exercisable as at December 31, 2022			43,116			$	14.71

There are no further options granted during the year in addition to those granted on 15 July 2022. Furthermore, since the Group did not have a stock option plan in 2021 and 2020, no comparative information has been provided