consolidated annual report and accounts of the marcolin group at 31 ...

CONSOLIDATED ANNUAL REPORT AND ACCOUNTS
OF THE MARCOLIN GROUP AT 31 DECEMBER, 2009

Consolidated Annual Report
and Accounts
of the Marcolin Group
at 31 December, 2009
MARCOLIN S.p.A.
Registered head office:
Via Noai 31 – Frazione Vallesella –
32040 Domegge di Cadore (BL) - Italy
Share capital: Euro 32,312,475.00
fully paid-up
Economic Admin. Index n. 64334
Tax code and Belluno Companies
Register no. 01774690273
VAT no. 00298010257
Management and offices:
Località Villanova 4
32013 Longarone (BL) – Italy
Tel: +39.437.777111
Fax +39.437.777282
www.marcolin.com

BRAND PORTFOLIO

FRAME
YOUR
STYLE

COVER GIRL

DSQUARED 2

FERRARI

HOGAN

HOGANWORLD.COM

JOHN GALLIANO

JUST CAVALLI

KENNETH COLE NEW YORK

KENNETH COLE REACTION

MISS SIXTY

misssixty.com

MONTBLANC

The distinctive sign of discreet elegance: the new Montblanc Eyewear Collection.

REPLAY

ROBERTO CAVALLI

TIMBERLAND

TOD’S

TOM FORD

WEB

CONTENTS
36 Corporate bodies and officers
37 Marcolin Group structure
38 Financial communications
38 Stock market performance
40 Shareholder composition
41 Corporate Governance
41 Direction and Coordination Activities
41 Non-EU subsidiaries
42 Marcolin Group Management Report
56 Consolidated Balance Sheet
57 Consolidated Income Statement
58 Statement of changes in consolidated equity
61 Consolidated cash flow statement
67 Explanatory notes to consolidated accounts
MARCOLIN S.p.A. separate financial statements
105 Marcolin S.p.A. Management Report
116 Balance sheet
117 Income statement
117 Statement of changes in consolidated equity
118 Cash flow statement
121 Illustrative notes for Marcolin S.p.A. separate financial statements
163 Declaration concerning the statutory and consolidated financial statements
pursuant to Article 81-ter of CONSOB Regulation no.11971.
Marcolin Group
41

Consolidated Annual Report and Accounts as at 31 December 2009
CORPORATE BODIES AND OFFICERS
BOARD OF DIRECTORS (1)
Chairman Giovanni Marcolin Coffen (2)
Managing Director and General Manager Massimo Saracchi (2)
Director Antonio Abete (3)
Director Luigi Abete
Director Emanuele Alemagna (4)
Director Maurizio Boscarato (4)
Director and Deputy Chairman Cirillo Coffen Marcolin (2)
Director Maurizio Coffen Marcolin (2)
Director Diego Della Valle
Director Emilio Macellari
Director Carlo Montagna
Director Stefano Salvatori (4)
Director
INTERNAL AUDIT COMMITTEE
Vito Varvaro
Stefano Salvatori
Emanuele Alemagna
Maurizio Boscarato
REMUNERATION COMMITTEE
Chairman
Stefano Salvatori
Emanuele Alemagna
Emilio Macellari
BOARD OF STATUTORY AUDITORS
Chairman
(1)
Chairman Diego Rivetti
Standing statutory auditor Mario Cognigni
Standing statutory auditor Rossella Porfido
Standing statutory auditor Rino Funes
Standing statutory auditor
INDEPENDENT AUDITING FIRM
Deloitte & Touche S.p.A. (5 )
Ornella Piovesana
FINANCIAL REPORTING OFFICER
Sandro Bartoletti (6 )
(1) The term of office lasts until the date of the Shareholders’ Meeting called to approve year-end accounts as at 31 December, 2010 (pursuant to resolution of the Shareholder’s
Meeting on 29 April, 2008);
(2) Executive directors;
(3) Appointed by resolution of the Shareholders’ Meeting on 28 April 2009. The term of office lasts until the date of the General Shareholders’ Meeting called to approve
year-end accounts at 31 December, 2010;
(4) Independent directors;
(5) Term of mandate: financial years 2008 – 2016 (pursuant to resolution of the Shareholders’ Meeting on 29 April, 2008);
(6) Appointed by resolution of the Shareholders’ Meeting on 29 April 2008. The term of office lasts until the date of the Shareholders’ Meeting called to approve year-end
accounts at 31 December, 2010.
NATURE OF POWERS CONFERRED ON INDIVIDUAL DIRECTORS:
The widest powers of management and representation of the Company, within specific limits, have been conferred on the Managing
Director Massimo Saracchi.
42

Marcolin Group structure
0,10%
Marcolin Iberica SA
Spain
Marcolin Portugal Lda
Portugal
Marcolin Benelux Sprl
Belgium
Marcolin UK Ltd
England
Marcolin Deutschland Gmbh
Germany
Marcolin Gmbh
Switzerland
Marcolin do Brasil Ltda
Brazil
Marcolin Japan Co. Ltd
Japan
F initec Srl
Italy
100,00%
99,82%
99,98%
99,88%
100,00%
100,00%
99,90%
40,00%
40,00%
MARCOLIN S.p.A.
100,00%
Marcolin
International B.V.
14,60%
23,11%
100,00%
Marcolin USA. Inc.
U.S.A.
Marcolin France S.a.s.
France
Marcolin Asia Ltd
Hong Kong
85,40%
76,89%
Marcolin Group
43

Consolidated Annual Report and Accounts as at 31 December 2009
Financial communications
Marcolin S.p.A. constantly maintains contact with its shareholders, investors, and analysts, through the Investor
Relations office which guarantees continuous information about the Group for the financial markets.
On the official website www.marcolin.com, in the Investor Relations section, economic-financial data is available,
as well as the company presentation and periodic publications, official press releases, and real-time
stock updates.
Stock market performance
1,9
1,8
1,7
1,6
1,5
1,4
1,3
1,2
1,1
1,0
0,9
Based on data from Borsa Italiana S.p.A.
Official price
2.1.2009 13.2.2009 27.3.2009 13.5.2009 24.6.2009 5.8.2009 16.9.2009 28.10.2009 9.12.2009
The shares of Marcolin SpA have been listed on Milan’s electronic equity market (Mercato Telematico Azionario
– MTA) since July 1999.
The above chart shows the stock’s performance from 1 January 2009 to 31 December, 2009.
44
Official Prezzo Ufficiale price

2009 began negatively on an international level, with a risk of holding the financial system after the significant
decreases that marked 2008. In the first few months of the year, the markets dropped further, reaching record
lows before showing constant signs of an increase as from the second half of the year.
Production showed signs of improving, also thanks to the physical and monetary stimuli introduced in 2008
and the greater stability of the financial system, together with the great liquidity on the financial markets. This
laid the basis for an important recovery of the share markets, despite the fact that trust has not entirely been
restored and 2010 still looks to be rather uncertain.
Most of the markets ended the year recovering part of 2008 losses, with Milan having gained 19%. In this context,
the Marcolin stock has recorded a 46% increase on 2008, with the sector indicator having improved by
17%.
Please recall that at end 2007, the stock value was 1.85, and the stock is therefore gradually re-approaching
the levels of two years ago.
CONSOLIDATED STOCK MARKET INFORMATION 2009
Result per share (euro) 0,115
Shareholders’ equity per share (euro) 0,92
Year-end price (euro) 1,48
Maximum price (euro) 1,82
Minimum price (euro) 1,02
Price per share / Result per share 12,87
Price per share / Consolidated shareholders’ equity per share 1,60
Market capitalization at DEC 31, 2009 92.134.334
Average number of outstanding shares 25.584
Number of shares representing the share capital 62.139.375
Marcolin Group
45

Consolidated Annual Report and Accounts as at 31 December 2009
SHAREHOLDER COMPOSITION (based on voting rights)
*Members of the Marcolin family
The shareholder Giovanni Marcolin Coffen owns shares directly and indirectly via INMAR S.r.l.
The shareholder Diego Della Valle owns shares via the company DDV Partecipazioni Srl.
The shareholder Andrea Della Valle owns shares via the company ADV Partecipazioni Srl.
The shareholder Luigi Abete owns shares via the company LUAB Partecipazioni S.r.l.
Share capital consists of 62,139,375 ordinary shares with a par value of € 0.52 each for a total amount of
€ 32,312,475.00.
The above figures represent updates received up to 22.03.10.
46
Treasury stock
1,096%
Luigi Abete
9,658%
Market
18,068%
Andrea Della Valle
20,300%
Coffen Giovanni Marcolin*
14,753%
Diego Della Valle
20,300%
Zandegiacomo Maria Giovanna*
1,918%
Coffen Marcolin Cirillo*
4,251%
Coffen Marcolin Maurizio*
4,251%
Coffen Monica*
5,404%

Corporate Governance
Marcolin S.p.A. adheres to the Corporate Governance code created by the Italian Stock Exchange’s Corporate
Governance Committee, completed in March 2006, including later amendments and adjustments.
The company has defined an articulate and homogenous system of rules of conduct with regards to the organisational
structure and relationships with company stakeholders, characterised by principles of good governing,
in order to maximise values for shareholders and guarantee transparency.
On the website www.marcolin.com, in the Investor Relations section, information is available regarding the
company corporate governance system, including the corporate charter.
For more detailed information regarding corporate governance, please refer to the report created pursuant to
the laws and regulations in force, which provides complete information about the methods of enforcing the
corporate governance system and adhesion to the Corporate Governance Code. This document will be deposited
with Borsa Italiana S.p.A. in accordance with the law and will also be available for consultation in the
Investor Relations section on the website www.marcolin.com.
Information in accordance with Art. 123-bis of the Consolidated Finance Act
At the same time as approving the financial statements, the Board of Directors of Marcolin S.p.A. also approved
the annual corporate governance report. This report supplies information on the shareholders in accordance
with the provisions of subsection 1 of Art. 123-bis of the Consolidated Finance Act, in addition to illustrating
the corporate governance system in accordance with the information required by subsection 2 of the stated
Art. 123-bis and the principals of governance recommended by the above-specified Code of Self-Regulation.
These are as implemented by Marcolin S.p.A.. The annual report on corporate governance is made available
to the public together with the financial statements documents. It is available for consultation in the Investor
Relations section of the website www.marcolin.com.
Direction and Coordination Activities
Marcolin S.p.A. is not subject to direction and coordination activities on the part of companies or organisations
and defines its strategic, general, and operational plans in full autonomy.
Non-EU Subsidiaries
Marcolin Group
The administrative body of Marcolin S.p.A., a company which controls a company constituted and regulated
by the laws of a country which does not belong to the European Union, attests to the existence of the conditions
found in article 35 of CONSOB regulation no. 16191/2007, letters a)-c). In particular, it has ascertained
that the non-EU subsidiaries:
have provided the controlling company’s auditors with all the information necessary to conduct control activities
on the annual and intra-annual accounting;
have an administrative-accounting system adequate to regularly provide the controlling company’s management,
controlling body and auditors with economic, equity and financial data necessary for preparation of the
consolidated financial statements.
47

Consolidated Annual Report and Accounts as at 31 December 2009
Marcolin Group Management Report for the year ending on 31 st December 2009
The Annual Financial Statements at 31.12.09 - comprising the consolidated balance sheet for the Marcolin Group and
the separate balance sheet for Marcolin s.p.A. -–as a financial report called for under article 154-ter of Legislative Decree
58/1998 (Consolidated Finance Act), was prepared in conformance with the valuation and measurement criteria established
by the international accounting standards IAS/IFRS, adopted by the European Commission, according to the procedure
indicated in article 6 of the European Parliament Regulation no. 1606/2002 and the Council of 19 July 2002,
relative to application of international accounting standards, as well as the indications provided through implementation
of Legislative Decree no. 38/2005.
Directors’ comments on management trend
To Our Shareholders
In 2009, the international economic context was marked by the continuation of the market crisis that had begun in 2008
and continued to negatively affect consumption and investments worldwide. This, even if some signs of a reprieve can now
be seen, that allow us to believe that the most acute phase of the crisis has perhaps been overcome.
In this difficult climate, Marcolin distinguished itself by its ability to achieve positive results, in confirmation of the signs
shown in 2008. The Marcolin Group has, in fact, been able to respond effectively to the international crisis, through internal
reorganisations and efficiency improvements, as well as its success in bringing new brands to market.
The results attained during the year ended on 31st December 2009 include a significant net profit up on last year, turnover
that is basically stable, and an important improvement in the net financial position.
On a general level, the main factors and events that marked the year 2009 for the Marcolin Group can be summarised
as follows:
- turnover that basically held fast on last year, despite the difficult macroeconomic context;
- significant net profits, recorded for the second year running and in excess of those reported for last year;
- Ebit and Ebitda that, net of non-recurring items, are slightly down on last year, due to the greater incidence of the guaranteed
minimums on license agreements and investments made in order to fully exploit the launch of the new brands
acquired;
- a significant improvement of the net financial position, thanks to the careful management of working capital;
the significant reduction of warehouse value, obtained thanks to a greater efficiency of the planning process and the
sale of stock;
- the renewal of licences which are key to company revenue and profitability: Tom Ford, Roberto Cavalli and Just Cavalli,
licenses held to be fundamental to the Group;
- an excellent start for the new licensed brands: Tod’s, Hogan and Dsquared2;
- the new licence agreement for the production and worldwide distribution of Swarovski brand sunglasses and spectacle
frames.
In greater detail, net profits as of 31st December 2009 amount to 7,080 thousand euros (as compared with net profits of
6,124 thousand euros as of 31st December 2008), whilst turnover amounts to 180,321 thousand euros, down by 3.5%
as compared with 31st December 2008 (186,845 thousand euros).
The decrease in the Group’s revenues at a constant exchange rate was 4.4%.
With regards to the operating result (Ebit) and the Ebitda value, we should point out that in 2008, non-recurring proceeds
were reported in relation to the closure of the subsidiary Cébé, deriving from the release of the risk reserve set up during
previous years, and excess results, in addition to windfall gains for an amount of 3.6 million euros. As such, in order to
allow for a more correct, homogenous reading of the trend of company margins, we need to compare these parameters
net of these non-recurring positive effects.
48

Given the above, the economic results for 2009 are marked by a basic maintenance of margins, as will be better specified
further on in the report. Ebit value as of 31 st December 2009 amounts to 9,388 thousand euros as compared with
the 9,626 thousand euros as of 31 st December 2008 (net of the above non-recurrent effects) and Ebitda is 15,126 thousand
euros as compared with the 16,655 thousand euros as of 31 st December 2008 (again, net of the above-specified
non-recurring effects).
We would also point out that, in calculating the Ebitda performance indicator, according to the literal definition of the term,
and therefore considering the operative result (Ebit) prior to amortisation and depreciation, as of 31 st December 2009, the
value would be 13,990 thousand euros. This is compared with a value (net of the non-recurring effects specified above,
deriving from the closure of Cébé) as of 31 st December 2008, amounting to 13,810 thousand euros, thereby showing an
increase of +1.3%.
These positive results have been achieved despite the recognition of significant costs sustained during the year in relation
to structural and marketing investments for the development of existing brands in the portfolio and to support the
launch and promotion of the latest licences acquired.
ANALYSIS OF THE MAIN ECONOMIC INDICATORS
The following table summarises the Group’s key operating indicators:
L'EBITDA is (EBIT) before Amortisation and Depreciation.
Marcolin Group
Year Net Change % EBITDA % EBIT % Net % EPS
sales of net sales of net sales result of net sales
(euro/000.000) (euro)
2005 154,0 (11,2)% (3,0) (2,0)% (13,0) (8,4)% (16,7) (10,8)% (0,373)
2006 157,4 2,3% 4,3 2,8% (7,3) (4,6)% (13,3) (8,4)% (0,291)
2007 182,3 15,8% 9,5 5,2% (1,2) (0,7)% (6,9) (3,8)% (0,112)
2008 186,8 2,5% 20,3 10,8% 13,2 7,1% 6,1 3,3% 0,100
2009 180,3 (3,5)% 15,1 8,4% 9,4 5,2% 7,1 3,9% 0,115
We should point out that during 2009, some costs were reclassified that had previously been posted amongst the financial
expenses and which, according to the accounting standards applied, are more correctly to be considered as costs for
general and administrative services. The relevant amount has therefore been posted to this latter item of the balance
sheet. In order to allow for comparison of the values in relation to previous years, the items of the income statement concerned
by the reclassification have been recalculated in application of the new criteria.
Consolidated income statement
(euro/000)
DEC 31, 2009 % of net sales DEC 31, 2008 % on sales
Net sales 180.321 100,0% 186.845 100,0%
Gross profit 102.092 56,6% 103.470 55,4%
Operating profit - EBIT 9.388 5,2% 13.226 7,1%
Financial income and expenses (2.137) (1,2)% (4.471) (2,4)%
Net result before taxes 7.251 4,0% 8.755 4,7%
Net result 7.080 3,9% 6.124 3,3%
EBITDA 15.126 8,4% 20.255 10,8%
Net income from sales made by the Group at 31.12.09 was €180.321 thousand (€186,845 thousand at 31.12.08), with
a fall of €6,524 thousand compared with the same period last year. In percentage terms the change was 3.5% (-4.4%
with constant exchange rates).
49

Consolidated Annual Report and Accounts as at 31 December 2009
The trend of turnover should be assessed as absolutely positive, considering the particularly difficult international economic
context, and the fact that the deliveries of the products for the new Tod's and Hogan line began with significant volumes
only as from October 2009.
The data in the table shows the significant increase in revenue achieved in the domestic market (+11.6%), while the area
which has suffered most from the negative economic climate has been the rest of Europe. In particular, the most marked
falls were experienced in the Spanish and Russian markets.
In the Rest of the World zone, the Group recorded turnover largely in line with the previous year (-1.2%), despite the fall
in the United Arab Emirates in particular, which has been offset by the upward sales trends in Australia and Brazil.
As regards the North American (US) market, revenue remains largely stable (-1.7%) at current exchange rates, with a decrease
of -6.8% at constant exchange rates.
The results realised as a whole by the Group, shown in the above table from the consolidated income statement, highlight
an improvement in the industrial gross result and a reduction of operative margins as compared with the same period for
last year. Please recall that margins, net of non-recurrent proceeds in relation to Cébé as specified above (amounting 3.6
million euros), remains basically stable.
More specifically:
- gross operating profit was 56.6% of revenue and is an improvement compared to 55.4% at 31.12.08;
- Ebit represents 5.2% of turnover and amounts to 9,388 thousand euros, as compared with a value as of 31st December
2008 amounting to 9,626 thousand euros (5.2% of turnover), net of non-recurring proceeds in relation to Cébé. The
value as of 31st December 2008 shown in the table, gross of these non-recurring effects, amounts to 13,226 thousand
euros (7.1% of turnover);
- Ebitda amounts to 15,126 thousand euros (equal to 8.4% of turnover) as compared with a value as of 31st December
2008, net of non-recurring proceeds in relation to Cébé, equal to 16,655 thousand euros (8.9% of turnover). The value
as of 31st December 2008 shown in the table, gross of these non-recurring effects, amounts to 20,255 thousand euros
(10.8% of turnover);
- net profit was Euro 7,080 thousand (3.9% of sales), compared with a Euro 6,124 thousand (3.3% of sales) at 31.12.08.
An increase in the efficiency of the planning and manufacturing processes during the year has led to an improved gross
industrial result, which was partially offset by the adoption of more aggressive sales policies, in terms of Customer discounts
offered in response to the demands of the market, which has been negatively influenced by the reduction in demand.
Additional negative effects on margins were experienced, principally as a result of
the greater impact of the guaranteed minimum royalties on the licence contracts;
50
Net sales by geographic area DEC 31, 2009ssssss DEC 31, 2008ssssss Increase (decrease)
(euro/000) Turnover % on total Turnover % on total Turnover Change
- Italy 40.515 22,5% 36.314 19,4% 4.201 11,6%
- Europe 62.965 34,9% 72.567 38,8% (9.602) (13,2)%
- U.S.A. 39.603 22,0% 40.278 21,6% (675) (1,7)%
- Rest of the World 37.238 20,7% 37.686 20,2% (448) (1,2)%
Total 180.321 100,0% 186.845 100,0% (6.524) (3,5)%

Marcolin Group
investments made, in structural terms as well as in commercial activities, in order to profit fully from the launch of the newly
acquired brands.
With regard to the greater impact of the guaranteed minimum royalties, we can report that a series of measures have been
put in place, and are still taking effect, in order to reduce them.
The trend of financial management was distinctly improved on 31st December 2008, with a negative balance of 2,137
thousand euros as compared with a negative figure of 4,471 thousand euros, and therefore with a reduction in costs of
2,334 thousand euros. This has been obtained thanks to:
- the decrease in interest expense on loans of the parent company Marcolin S.p.A. (amounting to 1,551 thousand euros)
mainly by effect of the decrease of interest rates of reference;
- the improvement of exchange differences (amounting to 758 thousand euros), in particular with reference to the Brazilian
subsidiary.
It is also worth noting the economic benefit deriving from the registration of prepaid tax (amounting to 2,490 thousand
euros), resulting from the possibility of posting the tax losses generated in the previous financial year by Marcolin USA,
rendered possible by the fact that the United States subsidiary has started to regularly produce profit, thus creating the
conditions required for this entry.
51

Consolidated Annual Report and Accounts as at 31 December 2009
CAPITAL AND FINANCIAL SITUATION
Details of the net financial position at 31 December, 2009 compared with that of the previous year are shown below:
The overall net financial position of the Marcolin Group improved appreciably on the previous year, by 8,908 thousand
euros, as a result of the cash flow generated by operating activities and used in part by the investment activities.
The cash flow generated by operating activities amounted to 14,524 thousand euros and has benefited from the significant
proceeds from the disposal of warehouse stocks.
Net investments used cash for a total of 5,561 thousand euros, mainly by effect of the development of a new property,
which is currently under construction. This allows for the focus of all Group delivery activities, consequently improving
the logistic and after-sales service and having the structures and spaces available for internal management of the strategic
finishing stage.
Please see the cash flow statement for further details.
During 2009, the parent company Marcolin S.p.A. began negotiations with some credit institutes for the supply of new
long-term loans, in order to support investments in production. These negotiations were completed in 2009 and the first
few months of 2010.
As concerns the year in question, we would point out that Marcolin S.p.A. has subscribed the following loans:
- in October a loan agreement for 15 million euros, unsecured, with the Cassa di Risparmio del Veneto (Intesa San Paolo
Group);
- in December, a loan agreement for 10 million euros, with mortgage guarantee on the new property currently under construction,
with Mediocredito Italiano (Intesa San Paolo Group).
Please refer to the comments specified in the explanatory notes for details of these loan operations.
With reference to the breakdown of the year’s borrowings, as compared with the situation as of 31st December 2008, we
can see an increase in available funds of 11,192 thousand euros. This is a temporary effect due to the partial use of the
above new loans, the resources of which were used in January 2010.
We would also point out that during the course of the year, the parent company Marcolin S.p.A. repaid the principal on
existing loans for a total of € 12,995 thousand.
52
Net financial position DEC 31, 2009 DEC 31, 2008
(euro/000)
Cash 198 99
Cash equivalents 24.153 13.060
Short term borrowings (9.322) (4.228)
Current portion of long term borrowings (9.614) (12.995)
Long term borrowings (29.254) (28.682)
Total (23.839) (32.747)

In order to round off analysis of the composition of the Group’s financial position, we note that the year-end net debt/equity
ratio improves further and was 0.41 (vs. 0.65 as at 31.12.08).
Consolidated financial highlights
(euro/000)
Year Net financial position Shareholders’ equity Gearing*
2005 (46.178) 36.693 1,26
2006 (32.060) 52.119 0,62
2007 (36.236) 43.854 0,83
2008 (32.747) 50.074 0,65
2009 (23.839) 57.445 0,41
*Gearing is the ratio between Net financial position and Net equity
Marcolin Group
Details of the value of the net working capital, compared with the figures for the previous financial year, are illustrated in
the following table:
Net working capital
(euro/000)
DEC 31, 2009 DEC 31, 2008
Inventory 38.318 52.216
Trade and other receivables 62.302 58.522
Trade payables (32.755) (34.660)
Other current assets and liabilities (12.851) (14.617)
Total 55.014 61.462
With reference to the different items that make up the net working capital, we note:
- the significant reduction, as compared with last year, of inventories for 13,899 thousand euros, due to the greater efficiency
of the planning process and the sale of stock; the change is mainly in relation to finished products and is accompanied
by a significant drop in the average inventory turnaround time;
- the increase of the value of trade receivables and others, for 3,780 thousand euros, with a slight improvement in the
index of average days for collection, despite the particularly difficult period. This was also without noting any losses
above the company's historical average. We should also note that during the last quarter of the year, a 9% increase in
turnover was reported as compared with the same period last year;
- the decrease in the value of trade payables for 1,905 thousand euros, traceable to the lesser production purchases made
during the period, despite the increased index in relation to average payment terms of suppliers.
53

Consolidated Annual Report and Accounts as at 31 December 2009
Summary balance sheet figures were as shown below:
Please refer to the illustrative notes for the associated comments.
54
Balance sheet Marcolin Group DEC 31, 2009 DEC 31, 2008
(euro/000)
Assets
Non current assets 30.851 26.214
Current assets 125.567 124.425
Total Assets 156.418 150.639
Shareholders’ equity
Group Shareholders’ equity 57.445 50.074
Liabilities
Non current liabilities 33.835 33.537
Current liabilities 65.138 67.027
Total Liabilities and Net equity 156.418 150.639

Significant events after balance-sheet date and expected business progress
2010 has begun brightly for Marcolin Group. The excellent results achieved by the collections launched during January
and February, which have been very well received by the market, have enabled the Group to record a significant increase
in orders compared to the same period of the previous year. The launch of the new John Galliano licence has also been
encouraging, thanks to the highly original range presented.
On 16 February 2010, the licence renewal was formalised until 31 December 2015 for the design, production and worldwide
distribution of Tom Ford brand spectacle frames and sunglasses.
At the beginning of March, the licence agreement for producing and distributing Kenneth Cole New York and Kenneth Cole
Reaction spectacle frames and sunglasses was renewed early and is now set to run until 2014. Our relationship with Kenneth
Cole Productions, the company of the New York stylist of the same name, represents one of Marcolin Group’s longest
established partnerships and this may be considered one of the key brands for the Group, especially for the North
American market.
With reference to the financial structure, we would point out that on 21st January 2010, the parent company Marcolin Sp.A.
signed a loan agreement with the Banca Nazionale del Lavoro S.p.A. (BNP Paribas Group), for an amount of 10 million
euros. This is an unsecured loan with a duration of five years. This agreement represents the last step in the Marcolin refinancing
process, which is now equipped with all financial means necessary to support its production and commercial
investment plan.
With regards to the foreseeable outlook, we believe that the international macroeconomic context for 2010 will be far from easy.
However, during the coming year, the Marcolin Group will be able to make its production investments operative, developed
with a view to improving the logistical and after-sales services offered to customers and to centralising some strategic
stages to production, all with the forecast positive returns in terms of efficiency.
During 2010, the Group will also focus on improving its competitiveness in all its operating markets. Quality, product cost
and productivity will continue to be the drivers in 2010, which will see targeted action taken to grow international sales,
supported by a competitive and comprehensive licence portfolio.
Considering, therefore, that our Company has thus far only materialised a limited part of its effective potential, if we continue
to pursue the direction we have been taking for the last two years or so, we are convinced that we will be able to
offer our shareholders increasing results and satisfaction.
Main risks and uncertainties to which Marcolin S.p.A. and the Marcolin Group are exposed
Marcolin Group
Risks connected to the general conditions of the economy
The Marcolin Group’s economic, capital, and financial situation are influenced by various factors that influence the macroeconomic
framework found in the various countries in which the Group operates, including levels of consumer and company
trust. 2009 began negatively on an international level, with a risk of holding the financial system after the significant
decreases that marked 2008. In the first few months of the year, the markets dropped further, reaching record lows before
showing constant signs of an increase as from the second half of the year.
Production has shown some signs of improvement, also thanks to the tax and monetary incentives introduced in 2008.
The growth prospects for Italy and the economies of the major advanced countries remain, however, modest and exposed
to the uncertainties linked to the re-absorption of economic support policies.
In the case that this situation of serious weakness and uncertainty remains past the short-term, the Group's activities, stra-
55

Consolidated Annual Report and Accounts as at 31 December 2009
tegies, and prospective could be negatively impacted, with consequent negative impacts to the Group's economic, capital,
and financial situation.
The generally negative economic context could additionally see the effect of an increase of the credit risk to which the
Group is subject, relative to exposure towards its clients, who may have increased difficulties in making payments. With
regards to this, the Group, in the field of its commercial risk management policies, is taking all possible actions to guarantee
recovery of trade receivables.
Risks connected to needs for financial tools
The evolution of the Group’s financial situation depends on numerous conditions. These include, in particular, reaching
preset objectives, as well as the performance of general economic conditions, the financial markets, and the sectors in
which the Group operates.
The Marcolin Group plans to meet its needs, deriving from its maturing financial debts and planned investments, through
cash flows deriving from operations management, available liquidity, and renewal or refinancing of bank loans.
Even in the current difficult market context, the Group believes it will be able to maintain an adequate capacity to generate
financial resources through operations management. However, significant and sudden reductions in sales volumes
could have negative effects on the operations management's ability to generate cash flow.
Risks connected to fluctuations in foreign exchange and interest rates
The Marcolin Group operates in various markets throughout the world and is hence exposed to market risks connected
to fluctuations in foreign exchange interest rates. Exposure to foreign exchange rate risks is mainly connected to the varied
geographic distribution of productive and commercial activities. In particular, the Group is mainly exposed to fluctuations
in the US dollar, relative to the supplies received from Asia and to sales made in the American market.
In regards to risks connected to variations in interest rates, it is important to note that the Marcolin Group uses various
types of financing, intended to cover the needs of its industrial activities, mainly with variable interest rates. Hence, variations
in interest rate levels can lead to increases or decreases in the cost of financing. Due to this, in its risk management
policies, the Marcolin Group attempts to face risks due to unfavourable foreign exchange and interest rate changes
through hedges.
Despite these hedging instruments, sudden and significant fluctuations in foreign exchange and interest rates could lead
to negative impacts on the Group's economic and financial results. An analytical description of the Group's risks and hedging
instruments with regards to this aspect is provided in the illustrated notes.
Risks connected to the Group's capacity to negotiate and maintain its licensing contracts
The markets in which the Group operates are highly competitive in terms of product quality and innovation, as well as economic
conditions.
Additionally, the Group’s success is partially due to its capacity to introduce products with innovative design, continuously
searching for new materials and productive processes, as well as its ability to adapt to consumers' changing tastes,
anticipating changes in fashion and reacting quickly to such changes.
The Group has signed multi-year licensing contracts which allow it to produce and distribute vision frames and sunglasses
under third-party proprietary trademarks. It is also constantly working to renew existing licences and research new
licences which allow the Group to maintain its long-term prospects.
In the case that the Group was not able to maintain or renew its licensing contracts with its current licensing companies,
due to market conditions, or if it was not able to stipulate new licensing contracts with other successful brands, the prospects
of growth and economic results for Marcolin Group could be negatively influenced.
Additionally, all licensing contracts call for minimum guaranteed annual royalties in favour of the licensing company, which
hence must be paid even in the case of changes of revenues under certain thresholds (so-called guaranteed minimum),
with consequent possible negative effects on the group's financial and economic results.
56

Risks connected to supplier relationships
The Group uses third-party producers and suppliers for production and/or processing of some of its products. These producers
and suppliers, mainly found in Asia and Italy, are subject to verifications and controls by the Group, in order to verify
that they respect adequate qualitative and service standards, including aspects related to time and method of delivery.
The use of third-party producers and suppliers leads to additional risk, such as the risk of ceding or ending of contractual
agreements, of problems connected to the quality level of supplies and services provided, and in delays in delivery
of commissioned goods. Delays or defects in the products provided by third-parties, as well as the interruption or conclusion
of the associated contracts, without searching for adequate alternative sources, could lead to a negative impact on the
Group's activities, economic results, and financial situation.
Human resources
At Marcolin, the value of its human resources is a critical factor in its success, and training of its staff constitutes an investment
in the development of the Group’s activities.
At 31 December, 2009, the Group had 962 employees, divided as follows:
Employees - Final number
Category DEC 31, 2009 DEC 31, 2008
Managers 23 22
First line managers 68 70
Employees 453 449
Workers 418 431
Total 962 972
Marcolin Group
Collective bargaining agreements
With regards to collective bargaining in terms of salaries, we note that during the course of the year the norms and economic
parts of the national contract were renewed.
Stock Option plans
On 29 April, 2008, the General Shareholders’ Meeting of Marcolin S.p.A. approved the proposal to allocate a compensation
plan based on financial instruments in favour of the Managing Director and General Manager, Massimo Saracchi, pursuant
to article 114-bis of Legislative Decree 58/1998 (hereafter the “Plan”).
To that regard, the Shareholders decided:
1. to approve the adoption of the stock option plan destined for the Managing Director of Marcolin S.p.A., Massimo Saracchi
(the Beneficiary), to be performed through the allocation, free of charge, of 500,000 personal and non-transferable
stock option rights to acquire ordinary Marcolin S.p.A. shares, in accordance with the methods and terms illustrated
in the informative document created by the Directors, pursuant to article 94-bis of CONSOB Issuance Rules, and in the
Directors' illustrative report, and in particular, states that:
- the exercise, on the part of the Beneficiary, of the assigned stock option rights will be subordinated (i) to the condition
that the Beneficiary hold the role of Managing Director at the end of the three-year maturity period of the rights and (ii)
performance of Group objectives of an economic and/or financial nature, the determination of which is remanded to the
Board of Directors;
- the Company, upon written request from the Beneficiary, can extinguish its obligations to the Beneficiary, by corresponding
to such a sum in money equal to (i) the difference between the unit value of the Shares and the Strike Price at
the date the request to exercise the stock options is made, (ii) multiplied by the number of options that can be exercised;
57

Consolidated Annual Report and Accounts as at 31 December 2009
2. to provide to the Board of Directors, and in this case the Chairman, all powers necessary or opportune to exercise the
stock option plan.
No constraints on ceding the Shares acquired due to exercising the stock options are called for.
For additional and more detailed information, please refer to the informational document prepared pursuant to article 84bis
of the Issuance Rules, deposited and made available to the public in accordance with the law.
Research & development activities
Research and development activities at the parent company, Marcolin S.p.A., are implemented through two divisions: the
first division aims to work in close partnership with licence-holders to come up with new collections, hone style, research
new materials and develop collections related to sunglasses/vision eyewear; the second, which works closely with the former,
handles product development and industrialisation.
Over the course of the financial year 2009, the company continued with its research and development activities.
Intra-group transactions and transactions with associated parties
With regards to operations performed with associated parties, including intra-group operations, we note that these cannot
be defined as either atypical or unusual, as they are part of the normal activities of the Group’s companies. Such transactions
take place under normal market conditions, taking into account the nature of the goods and services supplied.
Detailed information on relationships with associated parties, including those required by CONSOB Communication of 28
July, 2006, can be found respectively in the Explanatory Notes to the Consolidated Annual Report and Accounts, and in
the Explanatory Notes to the Separate Annual Report and Accounts for Marcolin S.p.A.
Treasury shares
At 31 December, 2009, Marcolin S.p.A. held 681,000 of its own shares in its portfolio, for a nominal counter value of
€354,120. The value in the balance sheet, valued at purchase cost, is equal to €947 thousand. Treasury shares held by
the company accounts for approximately 1.10% of Marcolin SpA’s share capital.
No Group company owns shares of the parent company Marcolin S.p.A.
Protection of personal data
With regards to the activities called for by Legislative Decree 196/03, titled "Protection of Personal Data Code," activities
intended to evaluate the data protection system in the Group’s companies that are subject to such legislation have begun.
These activities found that the requirements called for by the norms in terms of protection the personal data managed by
these companies are substantially met, including writing of the Security Planning Document.
Secondary offices
Marcolin S.p.A.’s registered offices are in via Noai 31, Domegge di Cadore (BL), Frazione Vallesella. Its administrative and
management offices are located in Longarone (BL), Localita’ Villanova, 4.
58

Comparison between the results and the equity of the parent company with the balances for the consolidated financial statements.
The following table provides a comparison between the result achieved and equity held by the parent company at 31 December,
2009, and the similar figures of the Group for the same period.
(euro/000) Net Equity Net result
Marcolin S.p.A. 63.735 1.144
Difference between holding company’s
Participations and net equity of subsidiaries (4.366) 6.240
Intercompany adjustments (2.294) 471
Intercompany dividends 0 (240)
Net equity method adjustment (186) (115)
Opening consolidation difference/
Extraordinary differences (247) (255)
Deferred taxes 803 (165)
Marcolin Group 57.445 7.080
Longarone, 25 March, 2010
Chairman of the Board of Directors
COFFEN GIOVANNI MARCOLIN
Marcolin Group
59

MARCOLIN GROUP
CONSOLIDATED BALANCE SHEET

Consolidated Annual Report and Accounts as at 31 December 2009
Consolidated balance sheet Marcolin Group
62
(euro/000) Note DEC 31, 2009 Of which DEC 31, 2008 Of which
related parties related parties
ASSETS
NON CURRENT ASSETS
Property, Plant And Equipment 5 17.425 14.800
Intangible Assets 6 3.150 4.131
Goodwill 6 2.243 2.322
Investments 7 372 759
Deferred tax assets 8 7.031 3.406
Other non current assets 9 630 796
Total non current assets 30.851 26.214
CURRENT ASSETS
Inventory 10 38.318 52.216
Trade and other receivables 11 62.302 470 58.522 787
Other current assets 12 596 527
Cash and cash equivalents 13 24.351 13.159
Total current assets 125.567 470 124.425 787
Total assets 156.418 470 150.639 787
SHAREHOLDERS’ EQUITY 14
Share capital 31.958 31.958
Additional paid in capital 24.517 24.517
Legal reserve 1.776 1.703
Other reserves (1.770) (2.064)
Retained earnings (losses) (6.117) (12.164)
Profit (loss) for the period 7.080 6.124
Minority interests 0 0
TOTAL SHAREHOLDERS’ EQUITY 57.445 50.074
LIABILITIES
NON CURRENT LIABILITIES
Long term borrowings 15,19 29.254 28.682
Long term provisions 16 3.784 4.039
Deferred tax liabilities 8 769 772
Other non current liabilities 17 28 44
Total non current liabilities 33.835 33.537
CURRENT LIABILITIES
Trade payables 18 32.755 2.209 34.660 1.603
Short term borrowings 19 18.936 17.224
Short term provisions 20 4.490 4.864
Income taxes 31 1.917 2.401
Other current liabilities 21 7.040 7.878
Total current liabilities 65.138 2.209 67.027 1.603
TOTAL LIABILITIES 98.973 2.209 100.564 1.603
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 156.418 2.209 150.639 1.603

Consolidated income statement
Marcolin Group
(euro/000) Note DEC 31, 2009 Of which % DEC 31, 2008 Of which %
related parties related parties
NET SALES 23 180.321 997 100,0% 186.845 1.493 100,0%
COST OF SALES 24 (78.229) (1.355) (43,4)% (83.375) (2.569) (44,6)%
GROSS PROFIT 102.092 56,6% 103.470 55,4%
Selling and marketing costs 25 (80.704) (1.440) (44,8)% (79.062) (290) (42,3)%
General and administrative expenses 26 (15.755) (8,7)% (17.095) (9,1)%
Other income and expenses 28 2.750 1,5% 4.740 2,5%
Other non recurrent operating income and expenses 29 1.005 0,6% 1.173 0,6%
OPERATING PROFIT - EBIT 9.388 5,2% 13.226 7,1%
FINANCIAL INCOME AND EXPENSES 30 (2.137) (1,2)% (4.471) (2,4)%
NET RESULT BEFORE TAXES 7.251 4,0% 8.755 4,7%
Income taxes 31 (171) (0,1)% (2.630) (1,4)%
Minority interests 0 0% 0 0%
NET RESULT 7.080 3,9% 6.124 3,3%
EPS (in euro) 32 0,115 0,100
EPS DILUTED (in euro) 32 0,114 0,099
Statement of Comprehensive Income DEC 31, 2009 DEC 31, 2008
NET RESULT 7.080 6.124
Currency translation 186 274
Net gain (loss) of cash flow hedge 17 (277)
NET COMPREHENSIVE INCOME 7.283 6.122
63

Consolidated Annual Report and Accounts as at 31 December 2009
Statement of changes in consolidated equity
64
(euro/000) Share Additional Legal Other Retained Income Minorities Total
capital paid reserve reserves earnings (loss) for interest
in capital (losses) the period
DEC 1,2008 31.958 26.315 1.703 (2.156) (7.075) (6.891) 0 43.854
Earnings (losses)
stock option reserve 0 0 0 94 0 0 0 94
Net comprehensive income 0 (1.798) 0 (3) (5.094) 13.016 0 6.122
DEC 31, 2008 31.958 24.517 1.703 (2.064) (12.164) 6.124 0 50.074
DEC 1,2009 31.958 24.517 1.703 (2.064) (12.164) 6.124 0 50.074
Earnings (losses)
stock option reserve 0 0 0 91 0 0 0 91
Net comprehensive income 0 0 73 203 6.051 956 0 7.283
DEC 31, 2009 31.958 24.517 1.776 (1.770) (6.117) 7.080 0 57.445

Consolidated cash flow statement
Marcolin Group
(euro/000) Note 2009 2008
OPERATING ACTIVITIES:
Income (loss) for the period 7.080 6.124
Depreciation and Amortisation 5,6 4.501 4.184
Provisions 10,11,20 6.305 7.082
Impairment 0 0
Income taxes 31 171 2.630
Interest expenses 30 2.229 3.154
Other non-cash items 5,6,1,16,20, Mov. PN (647) 220
Operating profit before working capital changes 19.639 23.395
(Increase) decrease trade receivables 11 (5.157) 4.025
(Increase) decrease other receivables 12 97 150
(Increase) decrease inventory 10 9.870 (6.048)
(Decrease) increase other payables 18 (1.905) (2.849)
(Decrease) increase trade payables 21 (854) (2.404)
(Utilisation) of provisions 20,16 (1.425) (2.010)
(Decrease) increase tax payables 31 6.146 1.348
Other non-cash items 31 (4.796) (3.356)
Income taxes paid 31 (5.669) (1.918)
Interest paid 30 (1.422) (2.907)
Cash flows provided (used) by working capital changes (5.115) (15.969)
Cash flows provided by operating activities 14.524 7.425
INVESTING ACTIVITIES
(Purchase) of property, plant and equipment 5 (6.049) (2.458)
Proceeds from the sale of property, plant and equipment 5 818 713
(Purchase) of intangible assets 6 (330) (2.191)
Cash flows (used) in investing activities (5.561) (3.936)
FINANCING ACTIVITES
Increase (decrease) short term borrowings 15,19 (2.076) (3.778)
Borrowings:
- Increase 15,19 28.150 16.157
- Decrease 15,19 (24.145) (13.647)
Changes in reserves Mov. PN 182 270
Cash flows (used) in financing activities 2.111 (998)
Cash and cash equivalents increase (decrease) 13,15 11.073 2.491
Effect of exchange rates on cash 13,15 119 (121)
Cash and cash equivalents at beginning of year 13.159 10.789
Cash and cash equivalents at year end 24.351 13.159
65

Explanatory Notes to the Consolidated Accounts of the Marcolin Group
at 31 December, 2009
PREAMBLE
The Explanatory Notes set out below form an integral part of the Consolidated Annual Report & Accounts of the Marcolin
Group.
1. GENERAL INFORMATION
Marcolin S.p.A. (hereinafter referred to as the “Parent Company”) is a company incorporated under Italian law, registered
in the Belluno Companies Register with no. 01774690273 and whose shares are traded in Italy on the electronic
equity market (Mercato Telematico Azionario) organised and managed by Borsa Italiana SpA.
Marcolin S.p.A. is the parent company of the Marcolin Group, which operates in Italy and abroad in the production and
marketing of eyewear and sunglasses.
The addresses of the Company’s registered office and of the locations where its main activities take place are shown on
the introductory page of the Annual Report.
2. ACCOUNTING STANDARDS
Basis of preparation
The 2009 consolidated financial statements have been prepared according to the International Accounting Standards
(“IFRS”) issued by the International Accounting Standards Board (“IASB”) and approved by the European Union, as Regulation
no. 1606 issued by the European Parliament and the European Council in July 2002 provided for the compulsory
application of the IAS/IFRS to the consolidated accounts of companies listed on the EU regulated marketed as from
2005. The IFRS are also deemed to include all the revised international accounting standards (“IAS”) and all the interpretations
of the International Financial Reporting Interpretations Committee (“IFRIC”), previously called the Standing Interpretations
Committee (“SIC”).
These accounts have been prepared with a view to business continuity, using the accrual basis of accounting.
The statutory accounts have been prepared based on the principle of historic cost, amended as required for the evaluation
of several financial instruments, with the exception of some revaluations performed in previous financial years.
The currency of the economic area in which the Group mainly operates is the euro and, since figures are shown in thousands
of euro, rounding differences may emerge in the totals.
Basis of presentation
Marcolin Group
In preparing the formats of the documents forming the consolidated year-end accounts, the Marcolin Group has applied
the following policies:
- Balance sheet
Balance-sheet assets and liabilities have been separately classified as current and non-current as envisaged by IAS 1.
More specifically, an asset must be classified as current when it meets one of the following criteria, i.e. when it is:
(a) Held for collection, sale or consumption during the entity’s normal operating cycle;
(b) Held primarily for the purpose of trading;
(c) Assumed to be traded within 12 months after balance-sheet date;
(d) Cash or a cash equivalent.
All other assets have been classified as non-current.
A liability must be classified as current when it meets one of the following criteria -- i.e. when it is:
(a) Expected to be settled within an entity’s normal operating cycle;
(b) Held primarily for the purpose of trading;
(c) Due to be settled within 12 months after balance-sheet date;
67

Consolidated Annual Report and Accounts as at 31 December 2009
(d) A liability for which the entity does not have an unconditional right to defer settlement of the liability beyond 12
months.
All other liabilities have been classified as non-current.
Moreover, on the basis of IFRS 5, where existing, those assets (and related liabilities) whose book value will be recovered
mainly on sale rather than on continuing use have been classified as “Assets held for sale” and “Liabilities relating
to assets held for sale”.
- Income statement
Costs have been classified by function, separately indicating the costs of sales and distribution and administration
costs, since it is believe that this method, based on the business sector in which the company is active, provides readers
with more meaningful and relevant information than the alternative classification of costs by nature.
- Statement of changes in equity
The statement was prepared presenting items in individual columns with reconciliation of the opening and closing balances
of each item forming equity.
- Cash flow statement
Presentation of cash flows of operating activities is based on the indirect method, since this is considered to be the approach
most appropriate for the business sector in which the company operates. Based on this approach, the net result
is adjusted for the effects of non-cash transactions on investment and finance transactions.
Basis of consolidation
The scope of consolidation includes companies directly and indirectly controlled. Below we provide a list of investments
consolidated on a 100% line-by-line basis and, for the sake of full information, a list of those recognised at equity. This
method requires that investment initially be recognised at cost and that this amount be subsequently increased or decreased
to recognise the investor’s relevant share of profit or loss after acquisition date, as well as the effects of other equity
movements.
68

LIST OF INTERESTS
Marcolin Group
Company Headquarters Currency Share capital Consolidation % ownership
(euro) method Direct Indirect
Marcolin Asia Ltd. Hong Kong USD 198.863 Line-by-line - 100,00%
Marcolin Benelux Sprl Faimes EUR 280.000 Line-by-line 99,98% -
Marcolin do Brasil Ltda Jundiai BRL 9.575.240 Line-by-line 99,90% 0,10%
Marcolin (Deutschland) GmbH Ludwigsburg EUR 300.000 Line-by-line 100,00% -
Marcolin GmbH Fullinsdorf (CH) CHF 200.000 Line-by-line 100,00% -
Marcolin Iberica SA Barcellona EUR 487.481 Line-by-line 100,00% -
Marcolin International BV Amsterdam EUR 18.151 Line-by-line 100,00% -
Marcolin Portugal Lda S. Joao do Estoril EUR 420.000 Line-by-line 99,82% -
Marcolin (UK) Ltd Newbury GBP 850.000 Line-by-line 99,88% -
Marcolin Usa Inc New York USD 536.500 Line-by-line 85,40% 14,60%
Marcolin France Sas Parigi EUR 1.054.452 Line-by-line 76,89% 23,11%
Marcolin Japan Co Ltd Tokyo JPY 99.000.000 Equity 40,00% -
Finitec Srl Longarone EUR 54.080 Equity 40,00% -
We would point out that the only change to the consolidation area of the Marcolin Group took place in October 2009, with
the completion of the liquidation of the company Cébé Sport S.A..
The consolidation method adopted is as follows: Companies are consolidated on a 100% line-by-line basis when the
Group exercises control over them (“subsidiary companies”) by virtue both via direct or indirect ownership of the majority
of shares with voting rights and via exercise of dominant influence expressed by the power to govern, even indirectly,
the company’s financial and operating policies, obtaining related benefits from the same, also regardless of equity ownership.
Any potential voting rights exercisable as at balance-sheet date are considered for the purpose of determining
control. Subsidiary companies are consolidated as from the date when control is acquired and are deconsolidated as
from the date when such control ceases to exist.
Business combinations by virtue of which control of a company is acquired are accounted for applying the purchase method,
based on which the assets and liabilities acquired are initially measured at their fair value on acquisition date. If positive,
the difference between the acquired assets’ and liabilities’ purchase cost and fair value is allocated to goodwill; if
negative it is recognised in the income statement. Purchase cost is determined on the basis of fair value, as at acquisition
date, of assets given, liabilities incurred, and equity instruments issued, and all other related costs.
During consolidation amounts stemming from transactions between consolidated subsidiaries, in particular receivables
and payables outstanding at the end of the period, costs and revenues, and finance expense and income, are eliminated.
Similarly, significant profits and losses made between subsidiaries consolidated on a 100% line-by-line basis are eliminated.
Any minority interest’s share of equity or of earnings is shown separately in a separate item in the statement of consolidated
equity called Minority Interest.
Dividends distributed by companies consolidated on a 100% line-by-line basis are eliminated from the income statement,
which instead incorporates the relevant companies’ results.
69

Consolidated Annual Report and Accounts as at 31 December 2009
Translation of foreign-currency financial statements
Financial statements presented in a different currency are translated into euro according to IASs/IFRSs as follows:
Assets and liabilities are translated at the current exchange rates in force on balance-sheet date;
Revenues and costs, plus income and charges, are translated at the average exchange rate for the period considered to
be a reasonable approximation of the actual exchange rates at which the individual transactions took place;
• Foreign exchange rate changes arising from translation of opening shareholders' equity and the changes taking place
in the year are charged to the item "Reserve for translation differences” included in the item "Other reserves".
The following table shows the exchange rates applied for translation:
Property, plant, and equipment
Property, plant, and equipment are initially recorded at their acquisition or production cost, inclusive of pertinent ancillary
costs incurred to bring assets to working condition for their intended use, excluding land and buildings owned by the
Parent Company for which the deemed cost model has been used, on the transition date, based on the market value determined
through appraisal performed by an independent and qualified appraiser.
Tangible assets are shown net of depreciation and of any impairment of value, with the exception of land, which is not depreciated.
Costs borne for ordinary and/or programmed maintenance and repairs go directly into the income statement in the financial
year when they are incurred. Costs concerning the extension, modernisation or upgrading of owned or leased third-party
assets are capitalised to the extent that they can be separately classified as an asset or part of an assets. The amount initially
recognised undergoes systematic straight-line depreciation, calculated on the basis of assets’ useful life.
If the asset depreciated is composed of items that can be identified separately, whose useful life differs significantly from
that of the other items of the fixed assets, depreciation is calculated separately for each of the items forming the asset according
to the principle of component approach. Profits and losses deriving from the sale of assets or groups of assets are
determined by comparing the sale price with the relevant net book value.
Capital grants relating to tangible assets are recorded as deferred revenues and credited to the income statement over the
depreciation period of the assets concerned.
Finance expenses relating to purchase of a fixed asset are charged to the income statement unless they are directly attributable
to the acquisition, construction or production of an asset justifying capitalisation.
Assets acquired by virtue of a finance lease are recognised as tangible assets set against the related liability. Lease cost
is broken down into finance expense – charged to the income statement – and repayment of principal – recognised as
reduction of the relevant financial liability.
Leases in which the lessor does not substantially transfer all the risks and benefits connected with ownership of the assets
are classified as operating leases. The costs of operating leases are shown line by line in the income statement for
the duration of the lease contract.
70
Currency Final exchange rate Average exchange rate
DEC 31, 2009 DEC 31, 2008 Change 2009 2008 Change
English pound GBP 0,888 0,953 (6,8)% 0,891 0,796 11,9%
Swiss franc CHF 1,484 1,485 (0,1)% 1,510 1,587 (4,9)%
US dollar USD 1,441 1,392 3,5% 1,395 1,471 (5,2)%
Brazilian real BRL 2,511 3,244 (22,6)% 2,767 2,674 3,5%
Hong Kong Dollar HKD 11,171 10,786 3,6% 10,811 11,454 (5,6)%
Japanese Yen JPY 133,160 126,14 5,6% 130,337 152,454 (14,5)%

Depreciation is calculated on a straight-line basis on assets’ estimated useful life, according to the depreciation rates indicated
below:
Category Rate
Buildings 3%
Non operating machinery 10%
Depreciable equipments 40%
Operating machines 15,5%
Office furniture 12%
Stand 27%
Electronic machines 20%
Vehicles 25%
Trucks 20%
Marcolin Group
Intangible fixed assets
Intangible assets consist of controllable, non-monetary assets without physical substance that are clearly identifiable and
able to generate future economic benefits. These assets are recognised at purchase and/or production cost, inclusive of
directly attributable expenses to bring the asset to working condition for use, net of cumulative amortisation (except for
assets with an indefinite useful life) and of any impairment of value. Amortisation starts when the asset is available for use
and is systematically spread over the asset’s useful life.
If any indications emerge suggesting impairment of value, the asset’s recoverable value is estimated, charging any impairment
loss to the income statement. If the reasons for previous write-down cease to exist, carrying value is written back
recognising this as income in the income statement, within the limits of what the asset’s net carrying value would have
been if there had been no impairment loss and the asset had been amortised.
Goodwill
Goodwill is the excess of purchase cost over fair value of the share of the subsidiary company’s equity as at acquisition
date, or of the business branch acquired. Goodwill deriving from the acquisition of subsidiary companies is posted in the
“Goodwill” account and is not amortised but subjected to annual testing – unless there are specific indicators making interim
testing necessary – to ascertain the existence of impairment of value (i.e. impairment testing). Gains or losses on
the sale of an entity are calculated considering the goodwill value of the entity sold.
Trademarks and licences
Trademarks and licences are recognised at cost. They have a finite useful life and are measured at cost net of cumulative
amortisation. Amortisation is calculated on a straight-line base so as to allocate the cost of trademarks and licences
according to their residual possibility of use.
If impairment is found over and above the amortisation already charged, the asset would be consequently written down;
if the reasons for write-down cease to exist in future financial years, the value is written back to the net book value that
the asset would have had if the write-down had not been made or if amortisation had been made.
Trademarks are amortised on a straight-line basis over their estimated useful life, ranging from 15 to 20 years.
Software
Software licences acquired are capitalised on the basis of the costs incurred for their purchase and the costs necessary to
make them serviceable. Amortisation is calculated on a straight-line basis over their estimated useful life (from 3 to 5 years).
Costs associated with software programmes’ development and maintenance are posted as costs when they are incurred.
71

Consolidated Annual Report and Accounts as at 31 December 2009
Direct costs include the cost of employees who develop the software.
Research & development costs
Research and development costs for new products and/or processes are expensed when they are incurred when the requirements
laid down by IAS 38 regarding their capitalisation do not exist.
Impairment of asset value
In the presence of specific indications of loss of value, tangible and intangible assets are subject to impairment testing.
For the purposes of impairment testing, assets are allocated to the smallest cash generating units (CGUs) that it is possible
to identify and compared with operating cash flows discounted to present value generated by such units.
Testing consists of estimation of the asset’s recoverable value and comparison of the latter with its net carrying value. If
an asset’s recoverable value is lower than its carrying value, the latter is reduced to recoverable value. This reduction is
an impairment loss that is charged to the income statement.
For assets that are not subject to depreciation and amortisation, and for intangible assets not yet available for use, impairment
testing is performed at least annually, irrespective of the presence of specific indicators.
The requisites and approach applied by the Group for restoring the value of an asset previously written down, excluding
that of goodwill, which cannot be written back – are those envisaged by IAS 36 (Impairment of Assets).
Financial derivatives
Derivative financial instruments are used only with the intention of hedging, in order to reduce Group exposure to exchange
rate and interest rate risks. All financial derivatives are measured at fair value, as provided for by IAS 39. In accordance
with IAS 39, financial derivatives may only be entered in the accounts according to the hedge accounting method
when, on commencement of hedging, the formal designation and documentation on the hedging relationship exists, it is
presumed that hedging will be highly effective, the efficacy can be reliably measured and the hedging itself is highly effective
during the various accounting periods for which it is designated.
If the hedge is effective, the following accounting policies apply:
Fair value hedge – If a financial derivative is designated as a hedge for exposure to variations in the fair value of an asset
or a liability shown in the financial statements attributable to a particular risk which may affect the income statement, the
profit or loss deriving from the subsequent valuations of the fair value of the hedging instrument are recognised in the income
statement. The item covered is adjusted to the fair value for the portion of risk covered and, as a counter value, there
is a profit or loss in the income statement.
Cash flow hedge – if a derivative financial instrument is designed to hedge exposure to the variability of future cash flows
of an asset or liability booked in the financial statements, the actual portion of the fair value changes of the derivative financial
instrument is recorded in shareholders' equity. The cumulative profit or loss is transferred from the equity and
entered in the income statement in the same period as that in which the transaction hedged took place. The profit or
loss associated with a hedge (or part of a hedge) that has become ineffective is entered in the income statement immediately.
If a hedge instrument or a hedge account is closed, but the transaction hedged has not yet been realised,
the cumulative profits or losses, recognised in equity up till then, are shown in the income statement at the time the relevant
transaction takes place. If the transaction hedged is no longer considered likely, the profits or losses not yet realised
and outstanding in the equity are booked to the income statement immediately. If hedge accounting cannot be
applied, the profits or losses deriving from the valuation at fair value of the financial derivative are recognised in the income
statement immediately.
Inventories
Inventories are measured at the lowest between average purchase or production cost and relevant presumed realisable
value based on market trends. Presumed realisable value is calculated on the estimate of selling price in normal market
conditions net of direct selling costs.
72

Marcolin Group
Purchase cost has been used for products purchased for resale and for materials directly or indirectly used, purchased and
used in the production process, whereas, for finished products or semi-finished products in process, production cost is used.
To determine purchase cost we have taken into account the price effectively paid, inclusive of directly attributable ancillary
costs, including: freight costs and customs duties net of trade discounts.
In production cost, besides the cost of materials used, as defined above, we have included direct and indirect manufacturing
costs.
Obsolete or slow-moving inventories are written down according to their possibility of use or realisation.
Financial assets – Receivables and borrowings
Trade receivables, current financial receivables and other current receivables, except for assets deriving from financial derivatives
and all financial assets for which prices on an active market are not available and whose fair value cannot be determined
reliably, are valued, if they have a prefixed maturity, at amortised cost calculated using the effective-interest
method. When the financial assets do not have a prefixed maturity, they are valued at cost. Receivables maturing after
more than a year, not accruing interest or accruing interest below the market rate are discounted by applying the market
rates and are entered in non-current assets. Valuations are regularly made in order to check whether there is any objective
evidence that the financial assets taken individually or within a group of assets may have fallen in value. If such evidence
exists, impairment is shown as a cost in the income statement for the period.
With regard to trade receivables in particular, adjustment to realisation value is effected by means of an adjustment fund
set up when there is an objective indication that the Group will not be able to collect the receivable at the original value.
Cash & banks
Cash and cash equivalents include cash, demand deposits held with banks, other highly liquid short-term investments,
i.e. with an original duration of up to three months, and entered for amounts actually available at the year end.
Assets held for sale and related liabilities
These items should include non-current assets (or groups of assets and liabilities for sale) whose carrying value will be
recovered mainly through sale rather than through continuing use. Assets held for sale (or a disposal group) are valued
at the lower of their net carrying value and the fair value net of costs of sale.
If these assets (or a group held for sale) cease to be classified as an asset held for sale, the amounts are neither reclassified
nor resubmitted for comparative purposes with the classification in the balance sheet of the most recent year presented.
Equity
Share capital
Share capital consists of the parent company’s subscribed and paid-up capital.
Costs strictly related to the issue of new shares are posted as a direct reduction of Equity net of the deferred tax effect.
Treasury shares
Treasury shares are shown as a deduction of the Group’s equity. Treasury shares’ original cost and revenues stemming
from any subsequent sales of the same are shown as changes in equity. The own shares reserve in the portfolio recorded
in previous financial years is classified in the undivided profits reserve.
Stock options
The Group offers additional benefits to the Parent Company's Managing Director through a stock options plan approved over
the course of 2008. In accordance with IFRS 2 - Stock Options, these plans represent a component in the beneficiary’s retribution.
Hence, the cost is represented by the fair value of the stock option at the date it is assigned, and it is recorded at the
economic cost during the period between the date they are assigned and the date they mature, with the counter value registered
directly to equity. Variations in the fair value of the options after the date they are assigned do not effect initial value.
73

Consolidated Annual Report and Accounts as at 31 December 2009
Employee benefits
Employee benefits that are paid out upon or after cessation of the employment relation via defined-benefit programmes
(as is the Italian employee severance indemnity system) are recognised at the time when the right to such benefits accrues.
Liabilities relating to defined-benefit programmes are calculated on the basis of actuarial valuations and are posted on an
accrual basis consistently with the employee service necessary to obtain the benefits concerned. Our actuarial valuations
have been made by independent experts.
Gains and losses stemming from actuarial valuations are posted in the income statement regardless of their value, without
using the so-called “corridor approach”.
The employee severance indemnity fund, a peculiarity of the Italian entity, falls within the definition of defined-benefit programmes.
As from 1 January 2007 and only for companies with at least 50 employees, Financial Law 2007 (the law of 27
December, 2006, no. 296, with associated implementing decrees) brought significant changes to the regulation of employee
severance indemnity, including with regard to the possibility of the employee to choose how to allocate accruing indemnity.
In particular, new severance pay flows may be assigned by the worker to pre-selected pension forms or kept within
the company (in which case the latter will pay the severance pay contributions into a treasury account held at the INPS).
In light of these changes, the legislation must now consider a defined benefits plan exclusively for the amounts accrued
before 01 January, 2007 (and not yet paid at the balance sheet date), while after this date, it will be assimilated with a
defined benefits plan.
The changes that occurred in the reference laws led to variations in the actuarial assumptions used for valuating liabilities
regarding funds matured through 31 December, 2006.
The effects of these variations were recorded in 2007, which was the first year the accounting effects of this reform were
in effect, as well as its relative expenses (the so-called curtailment effect).
Provisions for risks and charges
Provisions for risks and charges comprise provisions stemming from present obligations (either legal or constructive) to
third parties as a result of a past event, settlement of which is likely to require an outflow of financial resources, the amount
of which can be reliably estimated.
Provisions are posted for an amount that is the best discounted estimate of the amount the company should pay to settle
the obligation or to transfer it to third parties as at balance-sheet date.
Changes in estimates are reflected in the income statement for the period when the change occurred.
The risks for which the existence of a liability is only possible are identified in the section relating to commitments and guarantees
without making any provision.
Trade and other non-financial payables
Payables whose due dates are consistent with normal terms of trade are not discounted to present value and are recorded
at their face value.
Financial liabilities
Loans are initially recognised at cost, corresponding to the liability’s fair value net of the costs of its arrangement. After
the initial recording, these are valued at the amortised cost; any difference between the amount financed (net of the costs
of incurring the loan) and the par value is posted in the income statement throughout the life of the loan, using the effective
interest method. If there is a change in expected cash flows and management is able to estimate them reliably, the
value of borrowings is recalculated to reflect any changes expected in cash flows.
Loans are classified among current liabilities if they mature in less than 12 months after balance-sheet date and if the Group
does not have an unconditional right to defer their payment for at least 12 months.
Loans are removed from the balance sheet when they are extinguished or when all risks and costs associated with them
have been transferred to third parties.
74

Revenues and income
Revenues are measured at fair value net of return sales, discounts, allowances, and bonuses.
More specifically, the Group recognises revenues from the sale of goods in accounts when all risks and rewards of the
goods’ ownership are actually transferred to customers according to the terms of the sales agreement. These revenues
are recognised net of an allocation which represents the best estimate of the profit lost due to customers returning merchandise.
This allocation is based on specific historic figures.
Revenue arising from performance of services is recognised with reference to the state of completion of the transaction
at the balance sheet date.
Interest income is calculated on a time proportion basis and according to the effective yield of the asset to which such income
refers.
Dividends are recognised when the shareholder’s right to receive payment is established. This normally corresponds to
the shareholders’ resolution on dividend distribution at the Annual General Meeting.
Costs
Costs are posted according to the principles of relevance and economic accrual.
Marcolin Group
Financial income and expenses
Interest is recognised on an accruals basis based on the effective-interest method, i.e. using the interest rate that renders
all inflows and outflows constituting a specific transaction financially equivalent.
Translation of foreign currency amounts
Transactions in currency other than the Euro are converted to the local currency using exchange rates in force at the
transaction date. Foreign exchange differences arising in the period go through profit or loss.
Foreign currency receivables and payables are adjusted to the exchange rate in force as at balance-sheet date, recognising
the whole amount of positive or negative foreign exchange differences in the income statement among finance income
and expense.
Income taxes
Income taxes include all taxes calculated on Group companies’ taxable income, in compliance with legislative requirements
in force in the individual countries concerned. Income taxes are recognised in the income statement, with the exception
of those concerning items directly debited or credited to equity, in which case the tax effect is recognised directly in equity.
Deferred taxes are calculated based on the temporary differences generated between the value of the assets and liabilities
included in the company accounts and the value attributed to those assets/liabilities for tax purposes.
Deferred tax assets and liabilities are measured at the tax rates that are expected to be applicable, according to the respective
regulations in countries where the Group is active, in the financial years when temporary differences will be utilised
or extinguished.
Deferred tax assets (prepaid taxes) are recognised to the extent that it is likely that future taxable profit will be made against
which they will be able to be recovered. The carrying value of deferred tax assets is reviewed at each balance-sheet date
and, if necessary, is reduced to the extent that it is no longer probable that sufficient taxable profit will be made to allow partial
or total recovery of the assets. Any such reductions are reversed if the conditions causing them cease to exist.
Other taxes not relating to income, such as property and capital taxes, are included in operating accounts.
Earnings per share
Earnings per share are calculated by dividing the Group’s net business result by the weighted average number of ordinary
shares outstanding during the financial year, excluding treasury shares.
75

Consolidated Annual Report and Accounts as at 31 December 2009
Recording of revenues
Revenues are recorded net of returns, discounts, vouchers, and prizes, as well as taxes directly connected with the sales
of goods and provision of services.
Revenues from sales are recorded when the company has transferred significant risks and returns connected to ownership
of the goods and the amount of revenue can be reliably determined.
Revenue of a financial nature is recorded based on temporal competency.
Seasonality of revenues
It should be noted that sales in the eyewear sector are mainly concentrated in the first half of the year.
76

Marcolin Group
NEW IFRS AND IFRIC INTERPRETATIONS
Accounting standards, amendments and interpretations applied as from 1st January 2009
The following is a brief description of the standards that have been applied for the first time in the financial statements
for 2009.
IFRS 8 - Operating Sectors: the new standard is applicable as from 1st January 2009 in lieu of IAS 14 – Segment reporting.
It requires the segment reporting to be based on elements used by the management to make its operative decisions.
The adoption of this standard has not had any effect on the financial statements as the Group has, in fact, determined
that the operative sectors are the same as those established previously according to IAS 14 – Segment Reporting.
IAS 1 - Presentation of the interim report: the new version of the standard requires the company to present the changes
from transactions with shareholders in the statement of changes to the net equity, whilst all other transactions with third
parties must, instead, be posted in a single comprehensive income statement, or, alternatively in two separate statements
(income statement and comprehensive income statement or total income statement). With reference to the income statement,
the Group has opted for the presentation of two separate statements: the income statement and the total income
statement. In 2009, transactions with non-shareholders reported in this statement concerned changes to the cash flow
hedge reserve and the effects of the change into euros of the financial statements pertaining to subsidiaries and drawn
up in a foreign currency.
The following accounting standards, amendments and interpretations, applicable as from 1st January 2009, have not, on
the other hand, proved to be relevant as they govern situations and cases that are not relevant for the Group as of the date
of these financial statements:
- IAS 23 amended - Financial Charges;
- Amendment to IFRS 2 – Share-based payment – Vesting conditions and cancellations;
- Amendment to IAS 32 – Financial instruments: Presentation and IAS 1 – Presentation of Financial Statements – Financial
instruments;
- Improvement to IAS 16 – Property, plant and equipment;
- Improvement to IAS 19 – Employee benefits;
- Improvement to IAS 20 – Accounting for government grants and disclosure of government assistance;
- Improvement to IAS 28 – Investments in associates;
- Improvement to IAS 29 – Financial reporting in hyperinflated economies;
- Improvement to IAS 36 – Impairment of assets;
- Improvement to IAS 38 – Intangible assets;
- Improvement to IAS 39 – Financial instruments: Recognition and measurement;
- Improvement to IAS 40 – Investment property;
- Amendment to IAS 32 – Financial instruments: presentation and IAS 1 – Presentation of financial statements - Puttable
instruments and instruments with obligations arising on liquidation;
- Amendment to IFRS 7 – Financial instruments: enhancing disclosures about fair value measurements;
- IFRIC 13 – Customer loyalty programmes;
- IFRIC 15 – Agreements for the construction of real estate;
- IFRIC 16 – Hedges of a net investment in a foreign operation.
77

Consolidated Annual Report and Accounts as at 31 December 2009
Accounting standards, amendments and interpretations not yet applicable and not adopted in advance
The Company has not opted for early adoption of the following Standards, Interpretations and Updates to standards already
published and compulsory in future years:
78
IAS/IFRS Standard or IFRIC Interpretation date of date of Effects
issue enforcement (n.a. not applicable
n.r. nor relevant)
IFRS 3 - Business Combinations JAN 2008 JAN 2010 N.r. 2009
IAS 27 - Consolidated and Separate Financial Statements
IFRS 5 - Non-Current Assets Held for Sale
and Discontinued Operations
IAS 39 - Financial Instruments:
2008 JAN 2010 N.a. 2009
Recognition and Measurement
IFRIC 17 - Distributions of
JUL 2008 JAN 2010 N.a. 2009
Non-cash Assets to Owners
IFRIC 18 - Transfers of Assets
NOV 2008 JAN 2010 N.a. 2009
from Customers
AMENDMENTS TO IFRS ("improvement")
NOT ADOPTED:
IFRS 2 - Share-based Payment
JAN 2009 JAN 2010 N.r. 2009
IFRS 5 - Non-current Assets held for sale and Discontinued Operations
IFRS 8 - Operating Segments
IAS 1 - Presentation of Financial Statements
IAS 7 - Statement of Cash Flows
IAS 17 - Leases
IAS 36 - Impairment of Assets
IAS 38 - Intangible Assets
IAS 39 - Financial Instruments: Recognition and Measurement
IFRIC 9 - Reassessment of Embedded Derivatives
IFRS 2 - Share based payment:
Group Cash-settled Share-based
APR 2009 JAN 2010 N.a. 2009
Payment transactions JUN 2009 JAN 2010 N.a. 2009
IAS 32 - Classification of Rights Issues OCT 2009 JAN 2011 N.a. 2009
IAS 24 - Related Party Disclosures NOV 2009 JAN 2011 N.a. 2009
IFRS 9 - Financial Instruments
IFRIC 14 - Prepayments
NOV 2009 JAN 2013 N.a. 2009
of a Minimum Funding Requirement NOV 2009 JAN 2010 N.a. 2009
IFRIC 19 - Extinguishing Financial
Liabilities with Equity Instruments NOV 2009 JAN 2010 N.a. 2009

3. FINANCIAL RISK FACTORS
Market risks
Management of financial risks is an integral part of the Marcolin Group’s activities and is performed centrally by the parent
company, based on guidelines covering some specific areas, i.e. hedging of foreign exchange risks and of risks stemming
from fluctuations in interest rates.
The Group seeks to minimise the impact of such risks on its results also via use of some derivative instruments. Consistently
with its chosen strategy, the company undertakes derivative transactions for the sole economic purpose of hedging.
If, however, according to application of the appropriate accounting standards (IAS 39 – Financial Instruments:
Recognition and Management) such transactions cannot be technically recognised in accounts as hedging transactions,
they are not qualified as hedging transactions.
Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk (particularly as regards the US dollar), centralised
management of which is entrusted to the Parent Company. The latter has the task, via its internal facilities, of examining
and monitoring the evolution of the amounts of the various foreign currency items and, consequently, of evaluating
possible stipulation of appropriate contracts for hedging purposes via negotiation of the same on the derivatives market.
This method makes it possible to maintain a balance of the key currency positions and based on sensitivity analysis of
the change in exchange rates, it is held that a change in exchange rates does not significantly impact the Group’s consolidated
financial statements.
In fact, the company has adopted a specific policy for foreign exchange risk management.
Interest rate risk
Interest-rate risk is split into fair value risk and cash flow risk.
The Group is exposed predominantly to cash-flow risk originating from financial loans at variable interest rates.
Note the matters shown in the section related to the risk of liquidity as regards the quantity analysis of the exposure to
cash-flow risk of the Group, related to interest rates on loans.
For details of the loans in question, see paragraphs 15 and 19 of this document.
The Group manages the risk of fluctuations in interest rates through the use of derivative contracts, generally interest rate
swaps, which allow for mitigating the variations in interest rates.
Details of the derivative contracts existing at year-end are as follows.
Covering contracts for the interest rate risk
(euro/000)
Marcolin Group
Type Institute Notional Currency Expiration date Mark to Market
Interest Rate Swap Efibanca 7.000 EUR 27.06.2012 (334)
Collar con knockout su cap Cassa di Risparmio del Veneto 3.979 EUR 31.12.2010 (80)
(ex Banca Intesa)
79

Consolidated Annual Report and Accounts as at 31 December 2009
Sensitivity analysis on interest rates
A sensitivity analysis on the interest rate was conducted, assuming a parallel and symmetric shift up and down of 50
basis points of the Euribor/Swap Eur interest rate curves, published by provider Bloomberg related to 31 December, 2009
and 31 December, 2008. In this way, the impact on the income statement and shareholders' equity that changes would
have had could be estimated.
The analysis did not include financial instruments not significantly exposed to changes in interest rates, such as shortterm
trade receivables and payables
Interest amounts on loans incurred with banks were recalculated based on the above-mentioned assumptions and the
position in the year, re-determining the higher/lower financial charges calculated on an annual basis.
As regards interest rate derivatives, the interest pertaining to the year was recalculated based on the assumptions above.
At year-end, derivative contracts were valued at the fair value using the interest rate curves modified based on the aforementioned
assumptions. For derivative contracts hedging cash flow, the opposite value of the fair value assessment is represented
by the specific shareholders' equity reserve, assuming full effectiveness of the report, while for the hedging
derivatives, the value of the assessment to fair value is represented by the income statement.
For cash and cash equivalents, the average balance for the period was calculated considering the values in the financial
statements at the start and end of the year. On the amount calculated in this way, the income statement was affected by
an increase/decrease in the interest rate of 50 basis points beginning on the first day of the period.
The sensitivity analysis, conducted according to the above criteria, indicates that the Group is exposed to interest rate risk
in relation to expected cash flows. If interest rates rise by 50 basis points, the income statement would show a negative
change equal to € 55 thousand (€ -48 thousand in 2008) caused mainly by the increase in financial charges relating to
bank borrowings, which is only partly offset by the improvements in the interest rate of derivatives, the positive revaluation
of trading derivatives and the higher interest income relating to cash. Contrariwise, shareholders' equity would increase
by € 38 thousand (€71 thousand in 2008) due to the revaluation of hedge derivatives on cash-flow.
If interest rates fall by 50 basis points, the income statement would show a positive change equal to € 20 thousand (€52
thousand in 2008) caused mainly by the decrease in financial charges generated by bank borrowings, partly offset by the
worsening of the interest rate on derivatives, the positive revaluation of trading derivatives and the lower interest income
relating to cash. Contrariwise, shareholders' equity would increase by € 38 thousand (€71 thousand in 2008) due to the
revaluation of hedge derivatives on cash-flow.
80

Credit risk
The Group has no significant concentration of credit risk. Assets are recognised in accounts net of any write-down calculated
based on the risk of counterparty non-performance determined based on the information available on the client’s
solvency and historic data.
Guidelines have been implemented for managing customer credit to ensure that sales are undertaken only with reasonably
reliable and solvent parties, also via the creation of given and differentiated credit exposure ceilings.
Below is the schedule with the breakdown of receivables by key areas in which the company operates in order to evaluate
country risk.
Receivables by geographical area
(euro/000)
DEC 31, 2009 DEC 31, 2008
Italy 22.747 18.723
Rest of Europe 17.340 17.472
North America 8.555 8.516
Rest of the World 13.660 13.812
Total 62.302 58.522
Marcolin Group
Liquidity risk
Prudent management of the liquidity risk implies maintenance of an adequate level of cash and cash equivalents and the
availability of funds obtainable via adequate credit lines. Due to the dynamic nature of its business, the Group gives preference
to flexibility in funding via the use of credit lines. At present, the Group believes it has sufficient access to funds
from available income and credit lines to meet the financial needs of ordinary business requirements. The types of credit
lines available and the base rate on the reference date are shown below in paragraph 19 of the present document.
Liquidity analysis
Liquidity analysis regards loans, derivatives, and trade payables. Loans incurred have been indicated by time period, with
capital repayments and non-discounted interest. Future interest flows are determined based on the forward interest rates
taken from the curve of spot rates published by Bloomberg at year-end.
As regards derivatives, expected cash flows were considered based on the same market variables.
None of the cash flows included in the table were subject to discounting.
For the assessment of the fair value of loans incurred, future cash flow was estimated on the basis of forward interest rate
implicit in the interest rate relative to the valuation date and, as regards calculation of the coupon in progress, of the most
recent fixing available of the Euribor.
The values calculated using this method were discounted based on the discount factors related to the various expiration
dates of the cash flow mentioned above.
The derivatives used by the Group are classified as OTC (over the counter) derivatives and therefore, there is no officially
recognised public price formed on the trading markets. To value these derivatives, the company used, respectively, discounted
cash flow and Black & Scholes methods for interest rate swap and for the Cap and Floor, fed with input data
published by Bloomberg.
81

Consolidated Annual Report and Accounts as at 31 December 2009
4. USE OF ESTIMATES
Preparation of the consolidated year-end accounts makes it necessary for management to make estimates that could affect
the carrying value of some assets and liabilities and reported costs and revenues, as well as disclosures concerning
potential assets/liabilities as at balance-sheet date.
Estimates mainly refer to valuation of the recoverability of intangible assets, definition of tangible assets’ useful lives, the
recoverability of receivables (by prepaid taxes as well) and warehouse stock, and recognition or measurement of provisions.
Estimates and assumptions are based on data reflecting the present status of information to hand.
The estimates and assumptions causing a significant risk of changes in the carrying values of assets and liabilities are:
- Goodwill
The Group annually checks to see whether goodwill has to be subjected to impairment testing in accordance with accounting
standards.
Recoverable values have been calculated based on determination of “value in use”. These calculations require the use
of estimates of the future economic performance of the CGUs to which the goodwill refers, and on the discounting rate
and prospective growth rate to be applied to the prospective cash flows.
- Write-down of non-current assets
In accordance with the accounting standards and policies applied by the Group, non-current assets are subjected to
testing to see whether value has been impaired, when indicators suggest that net carrying value exceeds relevant recoverable
value, consisting of the higher of fair value (net of selling costs) and value in use. Verification of the effective
materiality of such indicators requires directors to make subjective evaluations based on information available inside the
Group and on market information, as well as on management’s knowledge. In the presence of potential impairment of
value, the Group calculates this using valuation techniques deemed to be appropriate. Proper identification of indicators
of the existence of potential impairment of value and estimates to calculate it depend on factors that may vary over
time, affecting the valuations and estimates made by directors.
82
Financial payables Loans Derivatives Commercial TOTAL
(euro/000) payables
within 3 months 2.365 0 33.982 36.347
from 3 to 6 months 7.061 102 959 8.122
from 3 to 12 months 7.549 139 (281) 7.407
from 1 to 3 years 25.232 219 0 25.451
from 3 to 5 years 4.674 9 0 4.683
over 5 years 251 0 0 251
TOTAL 31.12.2008 47.133 469 34.660 82.262
within 3 months 155 0 29.093 29.248
from 3 to 6 months 9.701 188 3.109 12.998
from 3 to 12 months 9.772 184 553 10.509
from 1 to 3 years 21.363 48 0 21.411
from 3 to 5 years 7.358 0 0 7.358
over 5 years 3.001 0 0 3.001
TOTAL 31.12.2009 51.350 420 32.755 84.525

- Deferred income tax
Recognition of deferred tax assets is based on expectations of income in future financial years. Assessment of expected
income for the purposes of recognition of deferred taxes depends on factors that may vary over time and have significant
effects on the assessment of deferred tax assets.
5. PROPERTY, PLANT AND EQUIPMENT
These assets featured the following breakdown and changes:
Marcolin Group
PROPERTY, PLANT AND EQUIPMENT Land and Plant and Industrial and Other Assets under Total
(euro/000) buildings machinery commercial tangible construction
equipment assets
Opening 2008 9.446 2.611 2.148 1.411 321 15.936
Increases 15 588 1.244 564 47 2.458
Decreases (121) (66) (323) 99 0 (411)
Amortisation (572) (623) (1.311) (759) 0 (3.265)
Translation difference 287 0 1 (11) 1 278
Other movements (25) 0 35 136 (342) (196)
Net value at end of 2008 9.029 2.510 1.794 1.440 27 14.800
Opening 2009 9.029 2.510 1.794 1.440 27 14.800
Increases 1.100 253 1.053 1.183 2.460 6.049
Decreases (38) (292) (7) (1.246) 0 (1.582)
Amortisation (547) (309) (1.321) 402 0 (1.775)
Translation difference 1 0 0 3 0 4
Impairment (98) 0 0 0 0 (98)
Other movements 4 0 39 (4) (12) 28
Net value at end of 2009 9.451 2.162 1.559 1.779 2.475 17.425
Investments made during the year amounted to 6,049 thousand euros (2,458 thousand for 2008). These mainly refer to
the Parent company for the development of a new property that will allow for a centralisation of the Group’s delivery activities,
thereby improving the logistics and after-sales service and increasing production capacity.
This investment relates to the purchase of land for 1,100 thousand euros and advances for 2,435 thousand euros already
paid for the construction of the new building.
Furthermore, the parent company Marcolin S.p.A. has purchased commercial and industrial equipment for 1,053 thousand
euros and plants and machines for 253 thousand euros.
The item ‘Other assets’ is up by 1,183 thousand euros, mainly following investments made for the renewal of the fair
stand for 688 thousand euros.
The sales of the item ‘Other assets’ mainly refer to Marcolin S.p.A. for the sale of the trade fair stand that was no longer
in use.
The item ‘Amortisation’, net of uses for sales, amounting to a total of 1,775 thousand euros (3,265 thousand in 2008),
consists of uses of the depreciation fund for sales of goods of 1,433 thousand euros and depreciation for 3,208 thousand
euros.
83

Consolidated Annual Report and Accounts as at 31 December 2009
The Amortisation is posted as follows:
- for 2,109 thousand euros (2,086 thousand in 2008) amongst the items of sales cost;
- for 771 thousand euros (754 thousand in 2008) amongst distribution costs;
- for 329 thousand euros (425 thousand in 2008) amongst general and administrative costs.
The item ‘impairment’ relates to the adjustment to market value of the property owned by Marcolin Switzerland, following
the estimate made by an external expert. This estimate expresses a fair value of 146 thousand Swiss francs (98 thousand
euros) less than the book value.
The properties owned by the parent company were also expertly assessed at end 2009. For these, no differences were
reported between the fair value and the book value.
The gross value of property, plant and equipment and the value of the associated depreciation reserve at December, 2009
are shown in the following table:
6. INTANGIBLE ASSETS AND GOODWILL
These assets featured the following breakdown and changes:
84
PROPERTY, PLANT AND EQUIPMENT Land and Plant and Industrial and Other Assets Total
(euro/000) buildings machinery commercial tangible under
equipment assets construction
Historical cost 17.998 12.417 15.670 8.987 2.475 57.548
Accumulated amortisation (8.547) (10.255) (14.112) (7.208) 0 (40.123)
Net book value 9.451 2.162 1.559 1.779 2.475 17.425
INTANGIBLE ASSETS Industrial and Concessions, Other Total Goodwill
AND GOODWILL other patent rights licenses and
(euro/000) trademarks
Opening 2008 1.682 1.196 65 2.942 2.195
Increases 139 1.802 6 1.947 0
Amortisation (752) (148) (19) (918) 0
Translation difference (15) 39 3 26 127
Other movements 186 (71) 18 133 0
Net value at end of 2008 1.239 2.818 74 4.131 2.322
Opening 2009 1.239 2.818 74 4.131 2.322
Increases 293 18 19 330 0
Decreases (1) 0 0 (1) 0
Amortisation (803) (465) (23) (1.291) 0
Translation difference 4 (21) (2) (19) (78)
Other movements 10 (10) 0 0 0
Net value at end of 2009 741 2.340 68 3.150 2.243

During the year, investments were made for 330 thousand euros (1,947 thousand in 2008), mainly for investments made
by the parent company for the implementation and update of software.
Amortisation, of a total of € 1,291 thousand (€ 918 thousand in 2008), was booked for € 187 thousand (€ 180 thousand
in 2008) in the item cost of goods sold, for € 895 thousand (€ 538 thousand in 2008) in the item distribution costs
and for the remaining € 210 thousand (€ 199 thousand in 2008) in the item overheads and administration.
The gross value and accumulated depreciation of intangible assets and goodwill are shown in the table below:
Marcolin Group
INTANGIBLE ASSETS Industrial and Concessions, Other Total Goodwill
AND GOODWILL other patent rights licenses and
(euro/000) trademarks
Historical cost 6.071 7.285 267 13.623 8.050
Accumulated amortisation (5.330) (4.945) (199) (10.473) (5.807)
Net book value 741 2.340 68 3.150 2.243
The goodwill amortisation fund refers to amortisation calculated up until the date of transition to the international accounting
standards.
The item concessions, licenses and trademarks includes the Web brand. This activity, acquired in November 2008 and
whose purchase value has been specifically and expertly estimated by an independent professional, given that it is a transaction
with an associated party, is subjected to amortisation. The value as of 31st December 2009 has also been subjected
to impairment testing on the basis of the Group plans with regards to the development and margins of Web brand
production. From this calculation, it is held that there has been no loss of value with reference to this asset.
The item goodwill is relative to the previous acquisition of an American company by Marcolin USA, which was subjected
to an appropriate impairment test based on determination of the enterprise value of the CGU to which it refers, consisting
of the American subsidiary. The test structure and parameters utilized are described below.
Impairment test structure
The impairment test, according to the requirements of IAS 36, is performed at least once a year, with reference to intangible
assets with an indefinite useful life, and with reference to other types of assets, is performed in the presence of external
or internal indicators that may cause the belief that a loss of value exists.
In particular, for preparation of the financial statements for the year 2009, there were not indicators that suggested the
presence of a loss of value with reference to tangible assets.
With regards specifically to the goodwill booked in the current consolidated financial statements with reference to assets
in the US market, the verification of a loss of values was performed with regards to the totality of the American subsidiary.
It was hence retained opportune to estimate the value in use of the CGU identified with the company Marcolin USA based
on the parameters specified below.
The use value, which is provided as a comparison with the book value of the asset has been estimated on the basis of forecast
future cash flow, in line with the economic and financial forecasts prepared by the Group with reference to 2010.
In view of the continuing conditions of great uncertainty that mark the current macroeconomic scenario, the Directors held
it appropriate to limit the forecast to just one year, for this year too.
The approved budget for financial year 2010 takes into account the economic crisis that took hold during 2008. However,
it should be noted that the estimates are based on valuations relative to future events that could occur with effects
different from those that are expected, causing the possibility of changes, possibly significant, with respect to the foreca-
85

Consolidated Annual Report and Accounts as at 31 December 2009
sted data considered here. The value in use was determined as the sum of the actual value of cash flows predicted for
2010 and the terminal value determined based on the forecast data.
Due to the generalized conditions of uncertainty, it was held to be prudent to use a growth rate of zero in determining the
terminal value.
With reference to the Web brand, updated forecast data was used, as prepared by management, with reference to a medium-term
timescale (until 2015). Forecasts have therefore been prepared for the residual period of amortisation of the
asset, using assumptions held to be prudent, and which reflect the expected brand life cycle and, in particular, a decrease
in volumes, margins and investments after the initial launch phase forecast for the medium-term.
For discounting of the cash flows, a rate of 7.28%, net of the tax effect, was used, which reflects current market valuations
for the cost of money and the specific risks connected with operations activities.
The test results found that no losses of value exist with reference to the goodwill.
Furthermore, three sensitivity analyses were carried out on the impairment test, simulating, respectively, a growth rate
change from zero to 1% and a change in discounting rates of 0.5% down, and up by 1% and 1.5%. None of these scenarios
led to results in which write-downs would be necessary.
7. INTERESTS
This item, in total amounting to 372 thousand euros, refers to the associates Fintec S.r.l. for 277 thousand euros and Marcolin
Japan Co. Ltd. For 95 thousand euros.
Information on interests in associated companies is shown below.
Finitec S.r.l. galvanises and paints eye glasses and is the parent company’s supplier for such operations.
The year loss pertaining to the Group amounts to 69 thousand euros. This is after having adapted the statutory financial
statements of the associate to the Group’s accounting standards.
The value of the net capital pertaining to the company Marcolin Japan Co. Ltd. goes from a balance of 132 thousand euros
to a value of 95 thousand euros, following the negative year result attained by the associate and altered exchange rate.
86
INTEREST IN ASSOCIATES
(euro/000)
Finitec S.r.l. Share Capital 54.080 EUR DEC 31, 2009 DEC 31, 2008
Assets 2.482 2.679
Liabilities 1.087 1.113
Shareholders’ equity 1.395 1.567
Net sales 1.583 2.766
Income (loss) for the period (284) 87
% ownership 40% 40%
Marcolin Japan Co. Ltd. Share Capital 99.000.000 JPY DEC 31, 2009 DEC 31, 2008
Assets 2.422 2.952
Liabilities 2.184 2.622
Shareholders’ equity 238 330
Net sales 2.663 2.335
Income (loss) for the period (76) 24
% ownership 40% 40%

8. DEFERRED TAX ASSETS AND LIABILITIES
As of 31st December 2009, the item 'deferred tax assets’ had a balance of 7,031 thousand euros, up by 3,625 thousand
euros on December 2008.
The item is mainly due to the parent company, for temporary differences, amounting to 4,506 thousand euros, and to Marcolin
USA that has booked, for the year, assets in relation to temporary differences and tax benefits linked to tax losses
generated in previous years, for 2,490 thousand euros. This posting was made during the year insofar as it was made possible
by the fact that the US subsidiary had begun to produce regular income.
With regards to deferred tax liabilities, the balance amounts to 769 thousand euros (772 thousand euros as of 31.12.2008)
due to temporary differences between the tax-recognised values and the values posted on the accounts.
9. OTHER NON-CURRENT ASSETS
This item consists mainly of the value of receivables arising from a barter credit transaction executed by the Marcolin USA
subsidiary, which was concluded by means of the sale of goods, undertaken in previous financial years, in exchange for
advertising services to be received in future. The contract expires in February 2011 and there is the option of transferring
the credit within Group companies. It is held that this asset is entirely recoverable by means of the acquisition of services
within the terms of contract validity.
10. INVENTORIES
Details of inventories are shown below.
Inventories
(euro/000) DEC 31, 2009 DEC 31, 2008
Finished goods 36.811 46.143
Raw material 10.289 10.226
Work in progress 7.623 8.334
Gross inventory 54.723 64.703
Inventory provision (16.405) (12.486)
Net inventory 38.318 52.216
Marcolin Group
By comparing stock values, we can see a significant reduction in inventories overall as compared with last year, amounting
to 13,898 thousand euros (on the net inventory values), traceable to the greater efficiency of the planning process
and the sale of stock accompanied by a significant drop in the average number of days for stock rotation.
More in detail, we have seen:
- a decrease in the value of finished products and goods amounting to 9,332 thousand euros;
- a value of raw materials that is basically unchanged as compared with last year;
- a decrease in the value of products under construction for 712 thousand euros.
The value of the inventories impairment reserve as of 31st December 2009 increases by 3,919 thousand euros, mainly
by effect of the prudent assessments of the inventories of raw materials and semi-worked products.
87

Consolidated Annual Report and Accounts as at 31 December 2009
11. TRADE AND OTHER RECEIVABLES
Details of trade and other receivables are as follows:
The balance of the value of net trade receivables increases for 1,969 thousand euros on last year, with a slight improvement
in the index of average days for collection, despite the particularly difficult period. This was also without noting any
losses above the company's historical average. We should also note that during the last quarter of the year, a 9% increase
in turnover was reported as compared with the same period last year. The amount of receivables stated on the financial
statements has not been discounted, as all receivables are due in the short-term.
With a view to providing the information requested under IFRS 7, below is a detail of the trade receivables "falling due",
split by geographical area:
88
Trade and other receivables DEC 31, 2009 DEC 31, 2008
(euro/000)
Gross receivables 63.008 61.191
Provision for bad debts (4.533) (4.330)
Net trade receivables 58.475 56.861
Tax receivables 3.320 1.109
Other receivables 508 552
Total other receivables 3.827 1.661
Total 62.302 58.522
Receivables not overdue by gepgraphical area
(euro/000)
DEC 31, 2009 DEC 31, 2008
Italy 19.092 13.583
Rest of Europe 11.110 11.074
North America 5.913 5.741
Rest of the World 11.595 10.605
Total 47.709 41.004

The following table provides a breakdown of due dates for trade receivables that are not subjected to protest.
Ageing commercial receivable not protested Gross value Provision Net value
(euro/000)
DEC 31, 2008
Not overdue 41.178 (50) 41.128
Overdue less than 3 months 7.068 (140) 6.929
Overdue from 3 to 6 months 3.422 (547) 2.876
Overdue over 6 months 7.298 (2.383) 4.915
Total 58.967 (3.119) 55.848
DEC 31, 2009
Not overdue 47.709 (92) 47.617
Overdue less than 3 months 5.278 (145) 5.133
Overdue from 3 to 6 months 3.432 (520) 2.911
Overdue over 6 months 3.800 (1.613) 2.187
Total 60.219 (2.370) 57.848
In some markets where the Group operates, company policy dictates that receivables are collected beyond the expiration
date foreseen by contract without this leading to financial difficulties or liquidity problems on the part of customers. Hence,
there are balances relative to receivables from clients which were not subject to write-downs, even if the terms of expiration
for payment had already occurred.
The table below illustrates the balance of these commercial receivables, divided into uniform time classes.
Trade receivables overdue and not written-down
(euro/000)
DEC 31, 2009 DEC 31, 2008
Overdue less than 3 months 5.133 5.463
Overdue over 3 months 5.098 4.006
Total 10.231 9.469
For the sake of full disclosure, below is an illustration of the maturity of the receivables submitted to protest.
Ageing protested receivable Gross value Provision Net value
(euro/000)
DEC 31, 2008
Overdue less than 12 months 466 (441) 25
Overdue over 12 months 721 (703) 18
Total 1.187 (1.144) 43
DEC 31, 2009
Overdue less than 12 months 278 (269) 9
Overdue over 12 months 2.080 (1.894) 186
Total 2.358 (2.163) 195
Marcolin Group
89

Consolidated Annual Report and Accounts as at 31 December 2009
Below is an explanation of the changes in the allowance for doubtful accounts.
The allowance for doubtful accounts increases by 203 thousand euros as compared with last year. We would point out
that the use of this mainly refers to the subsidiary Marcolin USA, to the parent company and to Marcolin France. During
last year, uses mainly referred to positions traceable to Cébé by effect of the closure.
Note also that the amounts reported with trade receivables are not subject to guarantees.
12. OTHER CURRENT ASSETS
This item mainly comprises prepaid expenses relating to insurance premiums and rents paid on an advance basis.
13. CASH & CASH EQUIVALENTS
The item represents the value of cash balances and of highly liquid financial instruments, i.e. with an original maturity of
less than three months.
The increase of 11,192 thousand euros, as shown from the cash flow statement noting the use of cash and cash equivalents
for investments and for repayments of loans and the effect of the supply of new loans resolved in favour of the parent
company at year end.
We would point out that part of the balance was used in January 2010.
14. EQUITY
The Parent Company’s share capital amounts to € 32,312,475.00 and is composed of 62,139,375 ordinary shares with
a par value of € 0.52 each.
Marcolin S.p.A. holds 681,000 treasury shares in portfolio with an overall equivalent value of € 947 thousand, used to reduce
the share capital by a nominal value of € 354 thousand and the remaining € 593 to reduce the treasury reserve included
in the profits carried forward.
For details of changes in the items forming the equity, refer to the relevant table.
Stock option reserve
The stock option reserve is calculated in accordance with IFRS 2 principles. In fact, adoption of a stock option plan
brings with it the necessity of recording for accounting purposes a cost equal to the fair value of the options at the date
of allocation. This cost is recognised in the income statement for the duration of the period in which the conditions for use
of such options matures, and a counter value is placed in the associated equity reserve.
At 31 December, 2009, the second financial year in which this reserve is booked, it amounted to €186 thousand, with a
counter value booked to the income statement for the year at an equivalent amount, completely traceable to the stock option
plan approved over the course of 2008 for the Managing Director of the Parent Company.
90
Provision for bad debts 2009 2008
(euro/000)
Opening 4.330 5.172
Allowance 1.429 1.164
Utilisation (1.165) (1.908)
Reclassification and other movements (49) (83)
Translation difference (12) (15)
Total 4.533 4.330

15. MEDIUM- AND LONG-TERM BORROWINGS
The balance as of 31st December 2009 of the long-term loans (including the relevant short-term share), is represented
almost entirely by loans supplied by Cassa di Risparmio del Veneto S.p.A. (ex Banca Intesa), by Efibanca S.p.A. (lead bank
of a pool of lending institutes) and by new loans taken out during the year with the bank institutes Cassa di Risparmio del
Veneto S.p.A. and Mediocredito Italiano (both from the Intesa San Paolo Group). For details, please see note 19 ‘Shortterm
loans’.
Please note that the loan taken out with Mediocredito Italiano for a total amount of 10 million euros, was used for 2 million
euros as of 31st December 2009.
At year end, the amount of residual debt for this item totalled 48.2 million euros.
Below the composition of the net financial position is illustrated. For more information please refer to that indicated above
in the Management Report.
Net financial position DEC 31, 2009 DEC 31, 2008
(euro/000)
Cash 198 99
Cash equivalents 24.153 13.060
Short term borrowings (9.322) (4.228)
Current portion of long term borrowings (9.614) (12.995)
Long term borrowings (29.254) (28.682)
Total (23.839) (32.747)
16. LONG-TERM PROVISIONS
The item is totally represented by the employee severance indemnity fund (TFR) posted in the financial statements of the
parent company. It expresses the balance of the employee defined benefit plan to be supplied at the time of, or subsequent
to termination of the employment. It is represented entirely of liabilities posted on the financial statements pertaining
to the parent company, accrued as of 31.12.2006. In actual fact, the TFR accrued as from 1st January 2007 is
treated as a defined benefit plan and as such, with payment of the contributions to welfare funds (public and/or private),
the Group complies with all relevant obligations.
The changes in the aforesaid provisions are shown below:
Long term provisions - Staff leaving indenities
(euro/000)
Opening 4.039
Utilization (306)
Interest 177
Actuarial loss (gain) (127)
DEC 31, 2009 3.784
Marcolin Group
91

Consolidated Annual Report and Accounts as at 31 December 2009
The following table shows the various parameters assumed for the relevant actuarial calculation:
17. OTHER NON-CURRENT LIABILITIES
This item consists mainly of the value of accrued liabilities and deferred income falling due more than 12 months after
balance-sheet date.
18. TRADE PAYABLES
The following table details trade payables by geographical area:
The decrease in the value of trade payables for 1,905 thousand euros is due to the lesser purchases of production made
during the period. We would also point out an increase of the index in relation to the average days of payment to suppliers.
The amount of trade payables seen in the balance sheet were not subject to discounting, as the amount booked in the
balance sheet represents a reasonable representation of the fair value in consideration of the fact that there are no payables
with deadlines past short-term.
19. SHORT-TERM BORROWINGS
The value shown represents the balance of short-term borrowings and other financial liabilities that mature within 12
months after balance-sheet.
92
Actuarial assumptions 2009
mortality rate: Table RG48
disabilty rate: Table INPS
personnel turnover rate: 5,00%
severance prepaiments: 2,00%
discount rate: 4,10%
wages increase rate: 3,00%
inflation rate: 2,00%
Payables by gepgraphical area 31.12.2009 31.12.2008
(euro/000)
Italy 19.945 18.482
Rest of Europe 2.703 3.447
North America 869 1.080
Rest of the world 9.239 11.651
Total 32.755 34.660

In the following table we detail the characteristics of the main loans issued to the Group:
Bank Currency Starting Residual Expiration Interest Notes
Amount Amount date rate
Cassa di Risparmio EUR (credit line) 6.672.074 dec 31, 2010 Euribor "Stand by" credit line "revolving" type,
del Veneto 25.000.000 6 months dated FEB 16, 2006. Refundable in 8
(ex banca Intesa) * + 1% half-year instalments from JUN 30, 2007.
* These loans envisage contractual covenants as detailed in the explanatory notes to the accounts of Marcolin Group.
We point out that all loans in place were granted at arm’s length market conditions without provision of collateral.
Marcolin Group
EFIBANCA * EUR (credit line) 21.214.286 jun 27, 2012 Euribor A "Term Loan Facility" of 15.000.000 and a
30.000.000 6 months "Stand by Facility" loan of 15.000.000, dated
+ 1,30% JUN 27, 2007. Paid out the "Term Loan Facility"
line, refundable in 10 half-year instalments from
DEC 27, 2007 and part - payment of the "Stand by
Facility" line of 6.000.000, refundable in 7 half-year
instalments from JUN 27, 2009.
Ministero delle EUR 793.171 563.548 jun 26, 2016 1,012% Subsidized loan in accordance with the Law no.
attività produttive 46, 1982, refundable in 10 year instalments
(Innovazione Tecnologica) from JUN 26, 2007.
Unicredit Corporate CHF 3.500.000 3.500.000 may 12, 2010 1,85% Short term borrowings dated JAN 29, 2008.
Banking
Cassa di Risparmio EUR (credit line) 15.000.000 mar 31, 2015 Euribor Loan dated OCT 26, 2010, refundable in 10
del Veneto 15.000.000 6 months half-year instalments from SEP 30, 2010.
(ex banca Intesa) * + 1,70%
Mediocredito EUR 2.000.000 2.000.000 sep 30, 2019 Euribor Real-estate loan dated DEC 22, 2009,
italiano 3 months refundable in 34 quarterly instalments
from JUN 30, 2011.
Contractual agreements in relation to loans granted to Marcolin S.p.A. by the Cassa di Risparmio del Veneto (Intesa San
Paolo Group), by Efibanca and by Mediocredito Italiano (Intesa San Paolo Group), include a series of obligations concerning
operative and financial aspects. In particular, several financial economic indexes (“covenants”) need to be observed,
calculated in the consolidated financial statements at the end of each year. The agreement signed with Cassa di Risparmio
del Veneto (Intesa San Paolo Group) also envisages compliance with the parameters at the end of the six-month period
of each year.
If these parameters are not observed, the conditions under which the loan agreements will continue will have to be negotiated,
or the relevant changes made to the aforesaid parameters. Otherwise, the amounts granted may have to be repaid
early.
The covenants are calculated on the main financial economic indicators (EBITDA, net financial position and equity). At
31 December, 2009 and over the course of the financial year, the covenants were respected in their entirety.
The following table contains details of the maturity of the financial liabilities, whose value is entered either in current liabilities
or in non-current liabilities.
93

Consolidated Annual Report and Accounts as at 31 December 2009
The following is a disclosure on derivatives in place as of 31st December 2009. We would specify that the contracts in
place were drawn up by the parent company Marcolin S.p.A..
Financial liabilities measured at fair value booked to the income statement.
On 28 April, 2006, the parent company stipulated a derivatives contract on interest rates (IRS) with the Cassa di Risparmio
del Veneto (formerly Banca Intesa) in order to protect itself against risk related to variations in interest rates. This contract
refers to the variable interest rate financing obtained from the institute.
The fair value of the derivatives instrument at 31 December, 2009 was negative by €80 thousand (negative by €116
thousand at 31 December, 2008).
This derivative, while created in order to cover the risk associated with interest rate variations, was not considered as a
hedge accounting item for accounting purposes for IAS, as it calls for a Knock Out barrier, which impedes effective hedging
according to IAS 39.
Financial liabilities measured at fair value booked to equity.
On 30 July, 2007, a derivatives contract on interest rates (IRS) was stipulated with Efibanca in order to cover risks related
to interest rate variations on financing provided by Efibanca.
This instrument was classified and accounted for by the Company as a hedging instrument in that it respects the provisions
of IAS 39. In fact:
- it was contractually established, at the moment the financing was provided, to cover at least 50% of the notional value
of said financing;
- the maturity of the derivative contract corresponds to that of the hedged financing;
- the set dates for calculation of Euribor are the same as those for the derivative instrument and the underlying financing.
The instrument’s fair value at 31 December, 2009 was negative by €334 thousand, of which €229 thousand short-term,
and €105 thousand long-term. Fair value at 31 December, 2008 was negative by €351 thousand. Fair value variations
were booked to equity in an associated reserve (see the table with regard to movements for equity items).
During the year, total financial charges deriving from periodic liquidation of reciprocal positions on two interest rate derivative
instruments amounted to €316 thousand.
94
Borrowings Bank loans Bank Other financial TOTAL
(euro/000) and overdrafts borrowings institutions
within 1 year 1.723 15.417 83 17.223
between 1 and 3 years 0 23.678 185 23.863
between 3 and 5 years 0 4.413 160 4.574
over 5 years 0 0 246 246
DEC 31, 2008 1.723 43.508 674 45.906
within 1 year 0 18.847 89 18.936
between 1 and 3 years 0 19.644 178 19.821
between 3 and 5 years 0 6.471 179 6.650
over 5 years 0 2.618 165 2.783
DEC 31, 2009 0 47.579 611 48.190

20. CURRENT PROVISIONS
Below we show a table containing the most significant changes occurring during the financial year:
The item Provisions for termination indemnities and similar obligations consists of provisions for agent indemnities payable
upon cessation, the amount of which has been discounted to present value.
The Other provisions amount consists of provisions made against the risk of customer return sales (€ 3,431 thousand)
and of risk provisions for other liabilities arising from present legal or constructive obligations (€ 470 thousand).
21. OTHER CURRENT LIABILITIES
Below we show the detail of other liabilities:
The item ‘other current liabilities’ mainly consists of:
- payables due to staff, which records a decrease of 888 thousand euros;
- payables due to welfare institutes, which records an increase of 149 thousand euros.
Marcolin Group
SHORT TERM PROVISIONS Provision for Other provisions TOTAL
(euro/000) severance indemnities
Opening 2009 495 4.370 4.864
Allowance 147 659 806
Utilisation (47) (846) (893)
Actuarial loss (gain) 8 0 8
Translation difference 0 (69) (69)
Other movements (14) (212) (226)
Closing 2009 589 3.901 4.490
OTHER CURRENT LIABILITIES DEC 31, 2009 DEC 31, 2008
(euro/000)
Payables to personnel 4.682 5.570
Social security payables 1.846 1.697
Royalties 194 333
Other accrued expenses and deferred income 318 279
Total 7.040 7.877
95

Consolidated Annual Report and Accounts as at 31 December 2009
22. COMMITMENTS AND GUARANTEES
Below we show details of the main commitments and guarantees of Group companies:
The item consisted mainly of a surety of € 374 thousand issued to the bank issuing a low-rate loan under Italian Law
394/81.
We also point out that contracts are in place for the use of trademarks owned by third parties for the production and sale
of eyewear and sunglasses.
These contracts require payment by the Marcolin Group of guaranteed minimum royalties throughout their duration. As
at 31 December, 2009 the total of these future commitments amounted to € 222 million (€ 94 million in 2007), of which
€ 39 million falling due within the next 12 months. We would point out that the increase of future commitments as compared
with last year relates to the signing of new license agreements with durations spanning several years, and the renewal
of others already held in the Group's brand portfolio.
Details of the rent and leasing commitments are shown below, in accordance with IAS 17:
Commitments in relation to rent and leasing charges mainly relate to a lease agreement for the premises of the American
branch and the parent company in relation to the lease of a property used as a logistics centre.
96
Contingencies (euro/000) 2009 2008
Guarantees to third parties 1.473 1.465
Commitments 2009 2008
(euro/000)
Rents
Within one year 1.058 676
From one to five years 1.845 2.415
Over five years 97 0
Total 3.000 3.090
Operating leases
Within one year 314 35
From one to five years 95 23
Over five years 0 0
Total 410 58
Total commitments 3.410 3.148

INCOME STATEMENT
23. NET SALES
The breakdown of net sales as at 31 December, 2009 was as follows:
Marcolin Group
CONSOLIDATED INCOME STATEMENT DEC 31, 2009 % of net sales DEC 31, 2008 % of net sales
(euro/000)
NET SALES 180.321 100,0% 186.845 100,0%
COST OF SALES (78.229) (43,4)% (83.375) (44,6)%
GROSS PROFIT 102.092 56,6% 103.470 55,4%
Selling and marketing costs (80.704) (44,8)% (79.062) (42,3)%
General and administrative expenses (15.755) (8,7)% (17.095) (9,1)%
Other income and expenses 2.750 1,5% 4.740 2,5%
Other non recurrent operating income and expenses 1.005 0,6% 1.173 0,6%
OPERATING PROFIT - EBIT 9.388 5,2% 13.226 7,1%
FINANCIAL INCOME AND EXPENSES (2.137) (1,2)% (4.471) (2,4)%
NET RESULT BEFORE TAXES 7.251 4,0% 8.755 4,7%
Income taxes (171) (0,1)% (2.630) (1,4)%
Minority interests 0 0,0% 0 0,0%
NET RESULT 7.080 3,9% 6.124 3,3%
EPS 15.126 8,4% 20.255 10,8%
Net sales by geographic area DEC 31, 2009 DEC 31, 2008 Increase (decrease)
(euro/000) Turnover % on total Turnover % on total Turnover Change
- Italy 40.515 22,5% 36.314 19,4% 4.201 11,6%
- Europa 62.965 34,9% 72.567 38,8% (9.602) (13,2)%
- U.S.A. 39.603 22,0% 40.278 21,6% (675) (1,7)%
- Rest of the World 37.238 20,7% 37.686 20,2% (448) (1,2)%
Total 180.321 100,0% 186.845 100,0% (6.524) (3,5)%
97

Consolidated Annual Report and Accounts as at 31 December 2009
24. COST OF SALES
The following table shows the detailed breakdown of cost of sales:
The value of cost of sales, in absolute terms, was reduced by €5,146 thousand (-€ 1,987 thousand in 2008), with a consequent
reduction in the percentage of impact of revenues equal to 1.2%, from 44.6% to 43.4%.
This improvement is a consequence of the greater efficiency of the planning processes and industrial production, although
has been partially reduced following the adoption of more aggressive sales policies in terms of discounts granted
to customers, in order to meet market demands negatively affected by the drop in demand.
25. DISTRIBUTION & MARKETING COSTS
Below we show the detailed breakdown of distribution & marketing costs:
The item increases by a total of 1,641 thousand euros, or 2.1%, mainly due to the greater incidence of minimum guarantees
on license agreements. The increase is partially offset by the reduction of the item Other distribution costs and
marketing.
98
Cost of sales DEC 31, 2009 DEC 31, 2008 Increase %
(euro/000) (decrease)
Purchase of material and finished goods 37.508 52.223 (14.715) (28,2)%
Changes in inventory 13.056 (2.253) 15.309 (679,4)%
Personnel expenses 14.743 14.656 87 0,6%
Outworks 6.090 11.404 (5.315) (46,6)%
Amortisation and depreciation 2.296 2.267 29 1,3%
Other expenses 4.536 5.077 (542) (10,7)%
Total 78.229 83.375 (5.146) (6,2)%
Selling and marketing costs DEC 31, 2009 DEC 31, 2008 Increase %
(euro/000) (decrease)
Personnel expenses 21.264 20.887 377 1,8%
Commissions 8.675 8.803 (127) (1,4)%
Amortisation and depreciation 1.665 1.292 372 28,8%
Royalties 24.563 21.379 3.184 14,9%
Advertising and PR 12.709 12.920 (211) (1,6)%
Other costs 11.828 13.782 (1.954) (14,2)%
Total 80.704 79.062 1.641 2,1%

26. GENERAL & ADMINISTRATIVE COSTS
Breakdown of general overheads and administrative costs:
The total value of the item in question, as compared with last year, drops by 1,340 thousand euros. In greater detail, we
can see a decrease in the item of 'other costs’ for 1,185 thousand euros. This item includes:
- directors’ fees;
- legal and administrative consulting;
- EDP costs;
- other services.
We should point out that during 2009, some costs were reclassified that had previously been posted amongst the financial
expenses and which are more correctly to be considered as costs for general and administrative services. The relevant
amount has therefore been posted to this latter item. The item of the income statement concerned by this
reclassification has also be recalculated for 2008, with an effect amounting to 602 thousand euros.
Pursuant to Article 149-duodecies of the Regulation, we note here that the consideration pertaining to the year 2009 due
to the independent auditors for the parent company, and to the bodies pertaining to its network for the subsidiaries, for
the accounting audit service amounted to €304 thousand.
27. MARCOLIN GROUP EMPLOYEES
Details of the overall number of employees engaged by the various Group companies are shown below:
Marcolin Group
General and administrative expenses DEC 31, 2009 DEC 31, 2008 Increase %
(euro/000) (decrease)
Personnel expenses 5.130 5.566 (438) (7,9)%
Bad debt provsion 1.429 1.164 265 22,7%
Amortisation and depreciation 640 624 15 2,4%
Other costs 8.556 9.740 (1.185) (12,2)%
Total 15.755 17.095 (1.340) (7,8)%
Employees - Average number
Category 2009 2008
Managers 23 22
First line managers 69 66
Employees 459 442
Workers 419 430
Total
Employees - Final number
970 960
Category DEC 31, 2009 DEC 31, 2008
Managers 23 22
First line managers 68 70
Employees 453 449
Workers 418 431
Total 962 972
99

Consolidated Annual Report and Accounts as at 31 December 2009
28. OTHER REVENUES AND COSTS
The details of Other operating revenues and costs were as shown below:
The balance of this item is positive for 2,750 thousand euros, down from 31st December 2008 by 1,990 thousand euros.
Last year, the positive effect on the total of the item ‘other revenues' was mainly due to the release of the funds for future
risks and charges in relation to Cébé (now Marcolin France Sas), allocated during previous years to face up to the restructuring
of assets in relation to Cébé, whose closure was completed in 2008.
29. NON-RECURRENT OPERATIVE COSTS AND REVENUES
Below is the schedule with a detail of each item:
The item non-recurrent operative costs and revenues presents a positive balance for 1,005 thousand euros, with a decrease
of 168 thousand euros as compared with 2008.
The item non-recurrent revenues mainly concerns the revenues deriving from the sale of the Cébé brand by the subsidiary
Marcolin France Sas, realising a capital gains of 600 thousand euros. In 2008, this item mainly included out-ofperiod
assets deriving from the closure of Cébé assets.
100
Other income and expenses DEC 31, 2009 DEC 31, 2008
(euro/000)
Transport refund 1.315 1.413
Release of provision 884 2.630
Other income 884 1.270
Total other income 3.084 5.313
Loss on credits (3) 0
Loss on investments (331) (573)
Total other (expenses) (334) (573)
Total 2.750 4.740
Non-recurring operating income and expenses DEC 31, 2009 DEC 31, 2008
(euro/000)
Non-recurring income 1.378 1.811
Non-recurring expenses (373) (638)
Total 1.005 1.173

30. FINANCE INCOME AND EXPENSE
The detail of the item Finance income and expense is as follows:
Financial income and expenses DEC 31, 2009 DEC 31, 2008
(euro/000)
Financial income 1.856 3.335
Financial expenses (3.993) (7.806)
Total financial income and expenses (2.137) (4.471)
Finance income is described in detail in the following table:
Financial income DEC 31, 2009 DEC 31, 2008
(euro/000)
Interest income 169 223
Other income 73 248
Gains on exchage rate differences 1.614 2.864
Total financial income 1.856 3.335
Finance expense is described in detail in the following table:
Financial expenses DEC 31, 2009 DEC 31, 2008
(euro/000)
Interest expenses (1.776) (3.062)
Other expenses (53) (518)
Cash discounts (765) (819)
Losses on exchage rate differences (1.398) (3.407)
Total financial expenses (3.993) (7.806)
Marcolin Group
The item financial income and expense has an overall negative balance of 2,137 thousand euros as compared with a negative
value of 4,471 as of 31st December 2008. The significant improvement has been obtained thanks to the following:
- the decrease in interest expense (of 1,286 thousand euros) with reference to loans of the parent company Marcolin
S.p.A. mainly by effect of the decrease of interest rates of reference;
- the improvement of exchange differences (amounting to 758 thousand euros), in particular with reference to the Brazilian
subsidiary.
As explained in the comment to the general and administrative costs, some costs previously ascribed to financial expense
have been reclassified to that item. In order, therefore, to guarantee comparability of data, a similar reclassification has
been applied to the 2008 data, for an amount of 602 thousand euros.
101

Consolidated Annual Report and Accounts as at 31 December 2009
31. INCOME TAX
The breakdown of deferred taxes and income tax for the year was as follows:
In relation to carrying forward of tax losses, we note that deferred tax assets for a total of €9.2 million were not recorded
(€9 million in 2008), which can mainly be traced to fiscal losses suffered by Cébé and Marcolin USA.
It is also worth noting part of prepaid tax assets have been posted during the year (amounting to 2,490 thousand euros),
resulting from temporary differences and the possibility of posting the tax losses generated in the previous financial year
by Marcolin USA, rendered possible by the fact that the United States subsidiary has started to regularly produce profit,
thus creating the conditions required for this entry.
For current taxes, the tax burden was determined according to the taxable income arising from the year’s result, taking
into account use of any prior tax losses and applying the statutory tax rates in force in each country.
102
Deferred taxes 2009 2008
(euro/000)
Non current assets 47 209
Current assets 3.666 2.365
Provisions 828 833
Tax losses carried forward 2.490 0
Deferred tax assets 7.031 3.406
Non current assets (1.518) (1.567)
Current assets 748 795
Provisions 0 0
Deferred tax liabilities (769) (772)
Total deferred tax 6.262 2.634
Net deferred taxes movements 2009 2008
(euro/000)
Net deferred taxes at 1 January
Positive (negative) deferred taxes 2.634 1.238
Credit (debit) to Income Statements 3.627 1.397
Credit (debit) to Net Equity 0 0
Other movements 0 0
Translation differences 0 (1)
Net deferred taxes at 31 December 6.262 2.634

Income taxes 2009 2008
(euro/000)
Current taxes 3.630 3.920
Deferred taxes (3.627) (1.547)
Taxes relating to prior period 168 257
Total income taxes 171 2.630
Tax rate reconciliation 2009 2008
(euro/000)
Income (loss) before taxes 7.251 8.755
Tax expected 2.836 3.124
Taxes relating to prior periods 168 284
Permanent differences (1.133) 2.683
Utilisation previous years losses (2.495) (4.440)
Taxes on operations 794 980
Total income taxes 171 2.631
Marcolin Group
The theoretical year tax rate settles at 39.11% (35.68% in 2008), whilst the effective tax rate amounts to 2.36% (30.05%
in 2008) by effect of the stated posting during the year of positive tax effects deriving from previous years.
Please note that payable for current taxes at 31 December, 2009 amounted to €1,917 thousand (€2,401 thousand at
31 December, 2008) against an allocation during the year of €3,630 thousand.
32. EARNINGS PER SHARE
Base earnings per share (EPS) are given by the ratio of parent company shareholder earnings to the weighted average
number of ordinary share outstanding during the financial year, with the exclusion of treasury shares.
The result per share is as follows:
Income (Loss) per share DEC 31, 2009 DEC 31, 2008
Income (Loss) for the period (euro) 7.080.037 6.124.136
Number of shares 62.139.375 62.139.375
Treasury stock 681.000 681.000
Net number of shares 61.458.375 61.458.375
Income (Loss) per share 0,115 0,100
Diluted income (Loss) per share 0,114 0,099
The diluted profits have been calculated by dividing the period result by the number of shares in circulation, net of treasury
stock, increased by the shares involved in the stock option plan.
103

Consolidated Annual Report and Accounts as at 31 December 2009
33. FINANCIAL INSTRUMENTS BY TYPE
The financial instruments are shown by uniform classes in the table below which shows the fair value in accordance with IFRS 7.
For the assessment of the fair value of loans incurred, future cash flow was estimated on the basis of forward interest rate
implicit in the interest rate curve at year end and, as regards calculation of the coupon in progress, of the most recent fixing
available of the Euribor.
The values calculated using this method were discounted based on the discount factors related to the various expiration
dates of the cash flow mentioned above.
The derivatives used are classified as OTC (over the counter) derivatives and therefore, there is no officially recognised public
price formed on the trading markets. To value these derivatives, the company used, respectively, discounted cash flow
and Black & Scholes methods for interest rate swap and for the Cap and Floor, fed with input data published by Bloomberg.
The derivates shown in the table are classified amongst loan liabilities (note no. 19).
104
Classes of financial assets Trade Derivatives
(euro/000) receivables
2008
Loans and receivables 56.074 0
Assets at fair value through the profit and loss 0 51
Investments hold to maturity 0 0
Available for sale 0 0
Total value 56.074
Fair value n/a 51
2009
Loans and receivables 58.043 0
Assets at fair value through the profit and loss 0 0
Investments hold to maturity 0 0
Available for sale 0 0
Total value 58.043 0
Fair value n/a
Classes of financial liabilities Trade Derivatives Loans
(euro/000) payable
2008
Liabilities at fair value through the profit and loss 0 116 0
Derivatives used for hedging 0 351 0
Other financial liabilities 34.660 0 45.439
Available for sale 0 0 0
Total value 34.660 45.439
Fair value n/a 467 n/a
2009
Liabilities at fair value through the profit and loss 0 80 0
Derivatives used for hedging 0 334 0
Other financial liabilities 32.755 0 47.776
Available for sale 0 0 0
Total value 32.755 47.776
Fair value n/a 414 n/a

Marcolin Group
TRANSACTIONS WITH SUBSIDIARY COMPANIES BOOKED AT EQUITY, RELATED AND ASSOCIATED COMPANIES
31 December 2009 Expenses Revenues Receivables Payables Relation
(euro/000)
Finitec S.r.l. 1.355 2 934 3 Associated
Marcolin Japan 223 379 112 431 Associated
Tod's S.p.A. 1.216 616 1.163 36 Correlated
INFORMATION ON ABNORMAL AND UNUSUAL TRANSACTIONS AND TRANSACTIONS WITH RELATED PARTIES.
With regard to the suggestions of the CONSOB in its Circulars nos. DAC/98015375 of 27 February 1998 and DEM/6064293
of 28 July 2006, the necessary information on atypical and unusual transactions and transactions with related parties is
provided below.
Atypical and unusual transactions
No abnormal and/or unusual transactions were reported, between Group companies, during the course of 2009, nor were
there any extraordinary business activities, or activities that might have a significant effect on the economic, capital or financial
situation of Marcolin S.p.A. and the Group.
Transactions with related parties
Relations with Group companies are mainly commercial and established under market conditions.
During 2009, the Group had supply relations with the company Tod’s S.p.A. by virtue of the license agreement signed with the
company and traceable to the shareholders Diego Della Valle (Director of Marcolin S.p.A.) and Andrea Della Valle, as detailed
in the above table.
In view of the foregoing, it is believed that the aforesaid transactions did not have a significant effect on the economic results
and on the capital and financial situation of the group.
Non-recurrent significant events and operations
No significant non-recurrent events or operations occurred that had effects upon the Group’s equity, economic, and financial
situation over the course of 2009, beyond those that have already been noted in the associated items in the Consolidated
Income Statement.
105

Consolidated Annual Report and Accounts as at 31 December 2009
SEGMENT REPORTING
The following information specifically regards the geographical areas in which the Group operates. The geographical areas
have been identified as primary segments of business. The methods used to identify primary business segments have been
selected also in consideration of the Group’s operating policies. More specifically, these policies are based on grouping
by geographical area defined according to the location of the registered head offices of the companies of the Group. Consequently,
the sales indicated on the basis of this segmentation are calculated according to invoicing origin and not according
to end-use market.
As at balance-sheet no secondary segmentation had been identified.
106
Segmental Information ITALY FRANCE REST OF EUROPE NORTH AMERICA OTHER & MARCOLIN GROUP
by Region CONSOLIDATION
(euro/000) 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
Net sales 112.626 120.550 17.660 20.468 31.220 34.193 45.902 45.902 (27.087) (37.335) 180.321 183.778
Intersegment sales 23.735 40.311 0 (552) 20 16 62 62 (23.817) (39.837) - -
Net sales third parties 88.891 80.239 17.660 21.020 31.200 34.177 45.841 45.841 (3.270) 2.502 180.321 183.778
Gross profit 44.422 44.264 8.983 9.114 15.312 16.678 28.224 28.224 5.152 2.687 102.092 100.967
in % of net sales 39,4% 36,7% 50,9% 44,5% 49,0% 48,8% 61,5% 61,5% (19,0)% (7,2)% 56,6% 54,9%
Operating profit 4.696 6.316 139 (3.178) (196) 275 4.403 4.403 346 5.059 9.388 12.874
Share of P/(L) of
associates and
net equity method (114) 8 (114) 8
Assets 156.236 146.301 6.521 16.689 24.280 21.426 18.956 18.956 (49.575) (46.955) 156.418 156.418
Investment in Associates 372 372 372 372
Liabilities (23.490) 44.958 4.769 13.027 18.801 8.775 11.127 11.127 87.766 21.086 98.973 98.973
Capital expenditure 6.074 2.879 1 683 167 161 120 289 16 393 6.379 4.405
Amortization
and depreciation (2.642) (4.258) (147) (1.139) (747) (507) (71) (1.078) (2.131) (47) (5.738) (7.029)
Other non cash items (2.480) (3.368) (221) 4.180 (3.624) (256) (110) 373 3.309 0 (3.125) 929

Marcolin Group
107

MARCOLIN S.P.A.
SEPARATE FINANCIAL STATEMENTS
AT 31 DECEMBER 2009

Marcolin S.p.A.
Marcolin S.p.A. Management Report for the year ending on 31st December 2009
The Annual Financial Statements at 31 December, 2009, including the balance sheet for the financial year, as a financial
report called for under article 154-ter of Legislative Decree 58/1998 (Consolidated Finance Act), was prepared in conformance
with the valuation and measurement criteria established by the international accounting standards IAS/IFRS,
adopted by the European Commission, according to the procedure indicated in article 6 of the European Parliament Regulation
no. 1606/2002 and the Council of 19 July 2002, relative to application of international accounting standards, as
well as the indications provided through implementation of Legislative Decree no. 38/2005.
Directors’ comments on management trend
Shareholders,
As already described in the Management Report of the Marcolin Group as of 31st December 2009, to which we would
refer you for more in-depth explanations, the international macroeconomic context for 2009 was marked by a general recession
in the world economy and the severe international financial markets crisis that continues to negatively affect consumption
and investments on a world level.
In this difficult scenario, Marcolin S.p.A. in any case stood out for having attained positive results, and successfully gained
the right stimuli from the international crisis, both to reorganise internally and improve efficiency, and to introduce
new brands onto the market with great success.
For Marcolin S.p.A., the year 2009 was characterised by the following important events:
- turnover that is slightly down on last year, despite the difficult macroeconomic context;
- a positive net result, recorded for the second year running;
- an improvement of the net financial position, thanks to the careful management of working capital;
- the significant reduction of warehouse value, obtained thanks to a greater efficiency of the planning process and the
sale of stock;
- the renewal of licences which are key to company revenue and profitability: Tom Ford, Roberto Cavalli and Just Cavalli,
licenses held to be fundamental to the company;
- an excellent start for the new licensed brands: Tod’s, Hogan and Dsquared2;
- the new licence agreement for the production and worldwide distribution of Swarovski brand sunglasses and spectacle
frames.
The financial year ending at 31 December, 2009 records, in fact, profits of €1,144 thousand (with respect to a loss of
€1,461 thousand at 31 December, 2008) and turnover of €112,626 thousand, down 6.6% on 31st December 2008
(€120,550 thousand).
111

Consolidated Annual Report and Accounts as at 31 December 2009
The following table summarises Marcolin S.p.A.’s key economic indicators
We should point out that during 2009, some costs were reclassified that had previously been posted amongst the financial
expenses and which, according to current accounting standards, have been more correctly considered as costs for
general and administrative services. The relevant amount has therefore been posted to this latter item of the balance
sheet. In order to allow for comparison of the values in relation to previous years, the items of the income statement concerned
by the reclassification have been recalculated in application of the new criteria.
The Group’s net sales dropped by €7,924 thousand compared with the same period in the previous year. This amounts
to an decrease of 6.6%. The trend of turnover should be assessed as absolutely positive, considering the particularly difficult
international economic context, and the fact that the deliveries of the products for the new Tod's and Hogan line began
with significant volumes only as from October 2009.
112
Year Net Change % EBITDA % EBIT % Net % EPS
sales of net sales of net sales result of net sales
(euro/000.000) (euro)
2005 85,2 (13,4)% 5,9 7,0% (10,7) (12,6)% (12,0) (14,1)% (0,269)
2006 87,8 3,1% 8,6 9,8% (6,4) (7,3)% (11,0) (12,5)% (0,241)
2007 110,8 26,1% 9,7 8,8% 2,7 2,4% (1,8) (1,6)% (0,029)
2008 120,6 8,8% 11,0 9,1% 6,5 5,4% 1,5 1,2% 0,024
2009 112,6 (6,6)% 7,4 6,5% 47,0 41,7% 1,1 1,0% 0,019
Consolidated income statement DEC 31, 2009 % of net sales DEC 31, 2008 % of net sales
(euro/000)
Net sales 112.626 100,0% 120.550 100,0%
Gross profit 44.422 39,4% 44.264 36,7%
Operating profit - EBIT 4.696 4,2% 6.466 5,4%
Financial income and expenses (2.204) (2,0)% (2.845) (2,4)%
Net result before taxes 2.493 2,2% 3.621 3,0%
Net result 1.144 1,0% 1.461 1,2%
EBITDA 7.364 6,5% 11.017 9,1%
Net sales by geographic area DEC 31, 2009ssssss DEC 31, 2008ssssss Increase (decrease)
(euro/000) Turnover % on total Turnover % on total Turnover Change
- Italy 40.515 36,0% 35.712 29,6% 4.804 13,5%
- Europe 37.690 33,5% 45.315 37,6% (7.625) (16,8)%
- U.S.A. 9.585 8,5% 12.434 10,3% (2.849) (22,9)%
- Rest of the World 24.836 22,1% 27.089 22,5% (2.253) (8,3)%
Total 112.626 100,0% 120.550 100,0% (7.924) (6,6)%

Marcolin S.p.A.
With regards to the breakdown of sales according to geographic area, we have seen an increase in turnover on the domestic
market (+13.5%), whilst the rest of Europe suffered the negative outlook more greatly (+16.8%) as did the Rest
of the World (-8.3%). More specifically, the most marked decreases have been seen on the Spanish, Russian and Arab
Emirates markets, whilst positive trends have been recorded for sales in Australia and Brazil.
With regards to the U.S.A. market, we have seen a 22.9% decrease in sales also in relation to the fact that the American
subsidiary acquired greater product volumes last year, which it has therefore not required this year.
In analysing the sales towards subsidiaries, we would particularly point out the increase in sales towards the Belgian branches
(+8.6%) and Portuguese branches (+5.6%) and the drop towards the Spanish (-31.8%) and American (-22%) subsidiaries.
2009 closed with a gross industrial result of 39.4% of sales as compared with 2008’s 36.7%. This therefore booked an
improvement of 2.7%, thanks to a greater efficiency of the planning processes and industrial production. This positive effect
has been partially offset by the adoption of more aggressive sales policies, in terms of Customer discounts offered in
response to the demands of the market which has been negatively influenced by the fall in demand.
With regards to the Ebitda, for the purpose of allowing for a homogenous comparison, we would specify that in 2009, part
of the financial receivables owing from the French subsidiary (ex Cébé S.A. now Marcolin France S.a.s.) for 1.7 million
euros, was restored. At the time this value had been fully impaired, but recovery became possible in 2009 by virtue of the
positive economic result realised by the subsidiary. As such, in order to allow for a more standardised reading of the
Ebitda performance indicator trend in 2009 as compared with 2008, we have recalculated the Ebitda for 2009, excluding
these non-recurrent effects.
2009 ended with a positive EBITDA (considering the above-stated non-recurrent effects) of 9.1 million euros (11 million
as at 31 December 2008), corresponding to 8.1% of revenues (as against 9.1% impact on revenues at the end of 2008).
The Ebitda then recalculated, considering the non-recurrent effects, records a positive value for 7,364 thousand euros
(11,016 thousand euros as of 31st December 2008), which represents 6.5% of the turnover (9.1% in 2008), with a decrease
in absolute terms of 3,653 thousand euros.
Operating profit (EBIT) was €4,696 thousand (equal to 4.2% of revenues), with respect to a total of €6,466 thousand at
31 December, 2008 (5.4%).
Margins suffered, and mainly the following factors:
- the greater impact of the guaranteed minimum royalties on the licence contracts;
- the investments realised in relation to both the structure and commercial activities, in order to exploit
the launch of the new brands acquired, to the full.
With regard to the greater impact of the guaranteed minimum royalties, we can report that a series of measures have been
put in place, and are still taking effect, in order to reduce them.
The financial income and expense record an improvement of 641 thousand euros thanks to the decrease of interest expense
on loans, mainly by effect of the decreased interest rates of reference.
113

Consolidated Annual Report and Accounts as at 31 December 2009
Capital and Financial Situation
Details of the net financial position at 31 December, 2009 compared with that of the previous year are shown below:
The overall net financial position improved appreciably on the previous year, by 4,944 thousand euros, as a result of the
cash flow generated by operating activities and used in part by the investment activities.
The net financial position, inclusive of financial receivables due from the subsidiaries (Marcolin Svizzera and Marcolin
International BV and Marcolin France), as of 31st December 2009, was 27,849 thousand euros and as of 31st December
2008 was 34,564 thousand euros, thereby showing an improvement of 6,715 thousand euros.
The cash flow generated by operating activities amounted to 13,623 thousand euros and has benefited from the significant
proceeds from the disposal of warehouse stocks.
Net investments used cash for a total of 8,326 thousand euros, mainly by effect of the development of a new property.
This allows for the focus of all Group delivery activities, consequently improving the logistic and after-sales service and
having the structures and spaces available for internal management of the strategic finishing stage.
Please see the cash flow statement for further details.
During 2009, the parent company Marcolin S.p.A. began negotiations with some credit institutes for the supply of new
long-term loans, in order to support investments in production. These negotiations were completed in 2009 and the first
few months of 2010.
As concerns the year in question, we would point out that Marcolin S.p.A. has subscribed the following loans:
- in October a loan agreement for 15 million euros, unsecured, with the Cassa di Risparmio del Veneto (Intesa San Paolo
Group);
in December, a loan agreement for 10 million euros, with mortgage guarantee on the new property currently under construction,
with Mediocredito Italiano (Intesa San Paolo Group).
Please refer to the comments specified in the explanatory notes for details of these loan operations.
With reference to the breakdown of the year’s borrowings, as compared with the situation as of 31st December 2008,
we can see an increase in available funds of 7,258 thousand euros. This is a temporary effect due to the partial use of
the above new loans, the resources of which were used in January 2010.
During the course of the year, the parent company Marcolin S.p.A. repaid the principal on existing loans for a total of €
12,995 thousand.
114
Net financial position DEC 31, 2009 DEC 31, 2008
(euro/000)
Cash 24 23
Cash equivalents 11.924 4.667
Short term borrowings (9.318) (4.222)
Current portion of long term borrowings (9.614) (12.995)
Long term borrowings (29.254) (28.654)
Total (36.237) (41.181)

In order to round off analysis of the composition of Marcolin S.p.A.’s financial position, we note that the year-end net
debt/equity ratio was 0.57 (vs. 0.66 at 31 December, 2008).
Marcolin SpA financial highlights
(euro/000)
Year Net financial position Shareholders’ equity Gearing*
2005 (47.255) 44.481 1,06
2006 (33.863) 63.077 0,54
2007 (38.936) 61.204 0,64
2008 (41.181) 62.483 0,66
2009 (36.237) 63.735 0,57
Marcolin S.p.A.
Details of the value of the net working capital, compared with the figures for the previous financial year, are illustrated in
the following table:
Net working capital
(euro/000)
DEC 31, 2009 DEC 31, 2008
Inventory 29.424 41.312
Trade and other receivables 51.085 55.196
Trade payables (31.215) (34.559)
Other current assets and liabilities (7.680) (8.578)
Total 41.614 53.370
With reference to the different items that make up the net working capital, we note:
- the decrease, as compared with last year, of inventories for 11,888 thousand euros, due to the greater efficiency of the
planning process and the sale of stock; the change is mainly in relation to finished products and is accompanied by
a significant drop in the average inventory turnaround time;
- the decrease in the value of trade receivables for 4,110 thousand euros accompanied by a significant improvement in
the indicator of average collection time, despite the particularly difficult period and without reporting any losses above
the historic company average;
- the decrease in trade payables for 3,344 thousand euros, traceable to the lesser production purchases made during
the period, despite the increased index in relation to average payment terms of suppliers.
- the decrease in other current assets and liabilities for 898 thousand euros, mainly due to the decreased payable for
current taxes (716 thousand euros).
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Consolidated Annual Report and Accounts as at 31 December 2009
Summary balance sheet figures were as shown below:
Please refer to the illustrative notes for the associated comments.
Shareholdings held by members of the Boards of Directors and the Statutory Auditors, general managers and executives with
strategic responsibilities (Art. 79 Consob regulation, resolution 11971 of 14 May, 1999)
In compliance with Attachment 3C, outline 3 of Consob Regulation 11971 of 14 May 1999, note below the list of shareholdings
in Marcolin S.p.A. held by directors, auditors and managers with strategic responsibilities at the year-end date
of 31 December, 2009.
116
Balance sheet Marcolin Group DEC 31, 2009 DEC 31, 2008
(euro/000)
Assets
Non current assets 63.716 56.073
Current assets 92.732 101.529
Total Assets 156.448 157.603
Shareholders’ equity 63.735 62.483
Liabilities
Non current liabilities 34.612 34.433
Current liabilities 58.101 60.686
Total Liabilities and Net equity 156.448 157.603
Name Participated N. of shares N. of shares N. of N. of shares
companies held prior year purchased shares held at
sold year end
Abete Luigi Marcolin S.p.A. 4.570.928 1.430.443 6.001.371
Della Valle Diego Marcolin S.p.A. 12.614.279 12.614.279
Coffen Giovanni Marcolin Marcolin S.p.A. 9.167.646 9.167.646
Marcolin France S.a.s. 1 quota 1 quota
Coffen Marcolin Cirillo Marcolin S.p.A. 2.641.853 2.641.853
Marcolin Asia Ltd. 1 quota 1 quota
Marcolin UK Ltd. 1 quota 1 quota
Marcolin France S.a.s. 2 quote 2 quote
Marcolin Portugal Lda 1 quota 1 quota
Coffen Marcolin Maurizio Marcolin S.p.A. 2.641.853 2.641.853
Marcolin France S.a.s. 1 quota 1 quota
Marcolin Benelux S.p.r.l. 1 quota 1 quota

SIGNIFICANT EVENTS AFTER BALANCE-SHEET DATE AND EXPECTED BUSINESS PROGRESS
On 16 February 2010, the licence renewal was formalised until 31 December 2015 for the design, production and worldwide
distribution of Tom Ford brand spectacle frames and sunglasses.
With reference to the financial structure, we would point out that on 21st January 2010, Marcolin Sp.A. signed a loan
agreement with the Banca Nazionale del Lavoro S.p.A. (BNP Paribas Group), for an amount of 10 million euros. This is
an unsecured loan with a duration of five years. This agreement represents the last step in the Marcolin refinancing process,
which is now equipped with all financial means necessary to support its production and commercial investment
plan.
With regards to the foreseeable outlook, we believe that the international macroeconomic context for 2010 will be far from
easy.
However, during the coming year, the Company will be able to make its production investments operative, developed with
a view to improving the logistical and after-sales services offered to customers and to centralising some strategic stages
to production, all with the forecast positive returns in terms of efficiency.
During 2010, the Company will also focus on improving its competitiveness in all its operating markets. Quality, product
cost and productivity will continue to be the drivers in 2010, which will see targeted action taken to grow international
sales, supported by a competitive and comprehensive licence portfolio.
Please refer to the comment specified in the Management Report pertaining to the Marcolin Group as of 31st December
2009 for further details.
MAIN RISKS AND UNCERTAINTIES FOR MARCOLIN S.P.A.
In relation to the analysis of the main risks and uncertainties to which Marcolin S.p.A. is subjected, and in particular for
risks related to the general conditions of the economy, the need for financial means, the changes in interest and exchange
rates, the capacity to negotiation and maintain license agreements and relations with suppliers, please refer to that detailed
in the Management Report pertaining to the Marcolin Group as of 31st December 2009.
Human resources
At Marcolin, the value of its human resources is a critical factor in its success, and training of its staff constitutes an investment
in the development of activities.
At 31 December, 2009, the Group had 607 employees, divided as follows:
Employees - Final number
Category DEC 31, 2009 DEC 31, 2008
Managers 12 12
First line managers 14 13
Employees 164 163
Workers 417 418
Total 607 606
Marcolin S.p.A.
Collective bargaining agreements
With regards to collective bargaining agreements, we would point out that the national employment contract in place as
of year end was renewed in February 2010, until 31st December 2012.
117

Consolidated Annual Report and Accounts as at 31 December 2009
Stock Option plans
On 29 April, 2008, the General Shareholders’ Meeting of Marcolin S.p.A. approved the proposal to allocate a compensation
plan based on financial instruments in favour of the Managing Director and General Manager, Massimo Saracchi,
pursuant to article 114-bis of Legislative Decree 58/1998 (hereafter the “Plan”).
To that regard, the Shareholders decided:
1. to approve the adoption of the stock option plan destined for the Managing Director of Marcolin S.p.A., Massimo Saracchi
(the Beneficiary), to be performed through the allocation, free of charge, of 500,000 personal and non-transferable
stock option rights to acquire ordinary Marcolin S.p.A. shares (the Options), in accordance with the methods and terms
illustrated in the informative document created by the Directors, pursuant to article 94-bis of CONSOB Issuance Rules,
and in the Directors' illustrative report, and in particular, states that:
the exercise, on the part of the Beneficiary, of the assigned stock option rights will be subordinated (i) to the condition
that the Beneficiary hold the role of Managing Director at the end of the three-year maturity period of the rights and (ii)
performance of Group objectives of an economic and/or financial nature, whose determination is remanded to the Board
of Directors;
- the Company, upon written request from the Beneficiary, can extinguish its obligations to the Beneficiary, by corresponding
to such a sum in money equal to (i) the difference between the unit value of the Shares and the Strike Price
at the date the request to exercise the stock options is made, (ii) multiplied by the number of options that can be exercised;
2. to provide to the Board of Directors, and in this case the Chairman, all powers necessary or opportune to exercise the
stock option plan.
No constraints on ceding the Shares acquired due to exercising the stock options are called for.
For additional and more detailed information, please refer to the informational document prepared pursuant to article 84bis
of the Issuance Rules, deposited and made available to the public in accordance with the law.
Research & development activities
research and development is implemented through two divisions: the first division aims to work in close partnership with
licence-holders to come up with new collections, hone style, research new materials and develop collections related to
sunglasses/vision eyewear; the second, working with the former, handles product development and industrialisation.
Over the course of the financial year 2009, the company continued with its research and development activities.
Intra-group transactions and transactions with associated parties
With regards to operations performed with associated parties, including intra-group operations, we note that these cannot
be defined as either atypical or unusual, as they are part of the normal activities of the Group’s companies. Such transactions
take place under normal market conditions, taking into account the nature of the goods and services supplied.
Detailed information on relations with associated parties, including that required by the Consob Communication dated
28th July 2006, is presented in the Explanatory Notes.
Treasury shares
At 31 December, 2009, Marcolin S.p.A. held no. 681,000 own shares in its portfolio, for a nominal counter value of
€354,120. The value in the balance sheet, valued at purchase cost, is equal to €947 thousand. Treasury shares held
by the company accounts for approximately 1.10% of Marcolin SpA’s share capital.
No Group company owns shares of the parent company Marcolin S.p.A.
Protection of personal data
With regards to the activities called for by Legislative Decree 196/03, titled "Protection of Personal Data Code," activities
intended to evaluate the data protection system in the Group’s companies that are subject to such legislation have begun.
These activities found that the requirements called for by the norms in terms of protection the personal data managed
118

y these companies are substantially met, including writing of the Security Planning Document.
Secondary offices
Marcolin S.p.A.’s registered offices are in via Noai 31, Domegge di Cadore (BL), Frazione Vallesella. Its administrative
and management offices are located in Longarone (BL), Localita’ Villanova, 4.
Other events and news
There have been no other significant events which could have had a relevant influence on business performance or modified
the company’s capital, financial and business structure.
Proposal for coverage of the year’s loss
To Our Shareholders
the financial statements at 31 December, 2009, which we provide for your approval, show a positive net profit for the year
of €1,143,662.60 of which we propose to place €57,183.13 in the Legal Reserve and €1,086,479.47 in Profit Carried
Forward.
Longarone, 25 March, 2010
Chairman of the Board of Directors
COFFEN GIOVANNI MARCOLIN
Marcolin S.p.A.
119

MARCOLIN S.P.A.
BALANCE SHEET

Consolidated Annual Report and Accounts as at 31 December 2009
Balance sheet
122
(euro) Note DEC 31, 2009 Of which DEC 31, 2008 Of which
related parties related parties
ASSETS
NON CURRENT ASSETS
Property, plant and equipment 8 14.209.957 11.295.798
Intangible assets 9 2.261.976 2.793.233
Goodwill 0 0
Investments 10 34.349.494 31.991.994
Deferred tax assets 34 4.506.407 3.374.953
Other non current assets 12 8.388.527 8.388.527 6.617.458 6.617.458
TOTAL NON CURRENT ASSETS 63.716.361 56.073.436
CURRENT ASSETS
Inventories 13 29.423.541 41.311.645
Trade and other receivables 14 51.085.324 18.473.612 55.195.521 26.556.185
Other current assets 15 274.686 331.603
Cash and cash equivalents 16 11.948.395 4.690.329
TOTAL CURRENT ASSETS 92.731.946 101.529.097
TOTAL ASSETS 156.448.307 157.602.532
SHAREHOLDERS’ EQUITY 18
Share capital 31.958.355 31.958.355
Additional paid in capital 24.517.276 24.517.276
Legal reserve 1.775.962 1.702.893
Other reserves 8.227.615 8.119.301
Retained earnings (losses) (3.887.445) (5.275.693)
Profit (loss) for the period 1.143.663 1.461.316
TOTAL SHAREHOLDERS’ EQUITY 63.735.426 62.483.449
LIABILITIES
NON CURRENT LIABILITIES
Long term borrowings 19 29.254.129 28.654.131
Long term provisions 20 3.783.587 4.039.181
Deferred tax liabilities 34 1.573.790 1.739.612
Other non current liabilities 0 0
TOTAL NON CURRENT LIABILITIES 34.611.507 34.432.924
CURRENT LIABILITIES
Trade payables 21 31.214.774 4.838.867 34.558.922 7.584.465
Short term borrowings 22 18.931.594 17.217.644
Short term provisions 23 2.667.958 2.626.039
Income taxes 24 1.303.293 2.018.929
Other current liabilities 25 3.983.755 4.264.626
TOTAL CURRENT LIABILITIES 58.101.374 60.686.160
TOTAL LIABILITIES 92.712.881 95.119.083
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 156.448.307 157.602.532

Income statement
Marcolin S.p.A.
(euro) Note DEC 31, 2009 Of which % DEC 31, 2008 Of which %
related parties related parties
NET SALES 27 112.625.719 36.100.904 100,0% 120.550.182 48.787.977 100,0%
COST OF SALES 28 (68.204.007) (2.537.152) (60,6)% (76.286.478) 1.870.795 (63,3)%
GROSS PROFIT 44.421.712 39,4% 44.263.704 36,7%
Selling and marketing costs 29 (40.888.063) (1.933.375) (36,3)% (37.154.627) (971.994) (30,8)%
General and administrative expenses 30 (8.108.738) (7,2)% (9.576.492) (7,9)%
Other income and expenses
Other non recurrent operating
32 8.727.850 3.757.288 7,7% 8.577.480 7,1%
income and expenses 30 543.529 0,5% 355.693 0,3%
OPERATING PROFIT - EBIT 4.696.289 4,2% 6.465.758 5,4%
Financial income and expenses 33 (2.203.786) 154.902 (2,0)% (2.845.095) (317.141) (2,4)%
NET RESULT BEFORE TAXES 2.492.504 2,2% 3.620.663 3,0%
Income taxes 34 (1.348.841) (1,2)% (2.159.347) (1,8)%
NET RESULT 1.143.663 1,0% 1.461.316 1,2%
Statement of Comprehensive Income DEC 31, 2009 DEC 31, 2008
NET RESULT 1.143.663 1.461.316
NET GAIN (LOSS)
OF CASH FLOW HEDGE 16.840 (276.519)
NET COMPREHENSIVE INCOME 1.160.503 1.184.798
Statement of changes in equity
(euro/000) Share Additional Legal Other Retained Income Total
capital paid reserve reserves earnings (loss) for
in capital (losses) the period
DEC 1,2008 31.958 26.315 1.703 8.301 (5.276) (1.798) 61.204
Earnings (losses) stock option reserve 0 0 0 94 0 0 94
Net Comprehensive Income 0 (1.798) 0 (277) 0 3.259 1.185
DEC 31, 2008 31.958 24.517 1.703 8.119 (5.276) 1.461 62.483
DEC 1,2009 31.958 24.517 1.703 8.119 (5.276) 1.461 62.483
Earnings (losses) stock option reserve 0 0 0 91 0 0 91
Net Comprehensive Income 0 0 73 17 1.388 (318) 1.161
DEC 31, 2009 31.958 24.517 1.776 8.228 (3.887) 1.144 63.735
123

Consolidated Annual Report and Accounts as at 31 December 2009
Cash flow statement
124
(euro/000) Note 2009 2008
OPERATING ACTIVITIES:
Income (loss) for the period 1.144 1.461
Depreciation and Amortisation 5,6 3.559 3.488
Provisions 9,10,15,18 2.665 10.778
Fair value investment 7 26 417
Income taxes 30 1.349 2.266
Interest expenses 27 1.811 2.495
Other non-cash items 15,27 513 713
Operating profit before working capital changes 11.066 21.619
(Increase) decrease trade receivables 10,27 4.775 (10.150)
(Increase) decrease other receivables 8,11 (1.714) (364)
(Increase) decrease inventory 9 8.555 (4.716)
(Decrease) increase other payables 17 (3.344) (436)
(Decrease) increase trade payables 20 (281) 869
(Utilisation) of provisions 15,19 (651) (879)
(Decrease) increase tax payables 604 (1.318)
Other non-cash items 0 (550)
Income taxes paid (3.965) (531)
Interest paid (1.421) (2.843)
Cash flows provided (used) by working capital changes 2.557 (20.918)
Cash flows provided by operating activities 13.623 701
INVESTING ACTIVITIES
(Purchase) of property, plant and equipment 5 (5.845) (2.073)
Proceeds from the sale of property, plant and equipment 5 132 (129)
(Purchase) of intangible assets 6 (230) (1.936)
(Purchase) disposal of investments 7 (2.384) 1.304
Cash flows (used) in investing activities (8.326) (2.834)
FINANCING ACTIVITES
Increase (decrease) short term borrowings 14,18 (2.044) (518)
Borrowings:
- Increase 14,18 28.150 16.157
- Decrease 14,18 (24.145) (13.647)
Changes in reserves 0 0
Cash flows (used) in financing activities 1.960 1.992
Cash and cash equivalents increase (decrease) 7.258 (141)
Cash and cash equivalents at beginning of year 4.690 4.832
Cash and cash equivalents at year end 11.948 4.690

ILLUSTRATIVE NOTES FOR MARCOLIN S.P.A.
SEPARATE FINANCIAL STATEMENTS
ON 31 DECEMBER, 2009

Illustrative notes for Marcolin S.p.A. separate financial statements as
of 31st December 2009
Marcolin S.p.A.
PREAMBLE
The Explanatory Notes set out below form an integral part of the Separate Accounts of Marcolin S.p.A. and have been prepared
in accordance with the accounting documents updated to 31 December, 2009. The report on the operations of Marcolin
S.p.A. has also been prepared.
1. GENERAL INFORMATION
Marcolin SpA is a company incorporated under Italian law, registered in the Belluno Companies Register with no.
01774690273 and whose shares are traded in Italy on the electronic equity market (Mercato Telematico Azionario) organised
and managed by Borsa Italiana SpA.
Marcolin S.p.A. is the parent company of the Marcolin Group, which operates in Italy and abroad in the production and
marketing of eyewear and sunglasses.
The addresses of the Company’s registered office and of the locations where its main activities take place are shown on
the introductory page of the Annual Report.
Pursuant to Article 2497-bis of the Italian Civil Code, we note that Marcolin S.p.A. is not subject to direction and coordination
activities on the part of any entity, as it is the Parent Company.
2. ACCOUNTING STANDARDS
Basis of preparation
The 2009 financial statements have been prepared according to the International Accounting Standards (“IFRS”) issued
by the International Accounting Standards Board (“IASB”) and approved by the European Union, as Regulation no. 1606
issued by the European Parliament and the European Council in July 2002 provided for the compulsory application of the
IAS/IFRS to the consolidated accounts of companies listed on the EU regulated marketed as from 2005. The IFRS are also
deemed to include all the revised international accounting standards (“IAS”) and all the interpretations of the International
Financial Reporting Interpretations Committee (“IFRIC”), previously called the Standing Interpretations Committee
(“SIC”).
The accounting policies adopted are uniform with the policies used a year earlier, except for the changes brought by the
introduction of IFRS 7.
These accounts have been prepared with a view to business continuity, using the accrual basis of accounting.
The statutory accounts have been prepared based on the principle of historic cost, amended as required for the evaluation
of several financial instruments, with the exception of some revaluations performed in previous financial years.
The currency in the economic area in which the company mainly operates is the euro.
Basis of presentation
In conformance with the requirements in CONSOB Deliberation no. 15519 of 27 July, 2006 "Provisions with regards to financial
statements implemented with article 9, paragraph 3, of Legislative Decree no. 38 of 28 February, 2005” with regards
to the preparation of formats for the documents which make up the separated financial statements, Marcolin S.p.A.
has adopted the following criteria:
- Balance sheet
Balance-sheet assets and liabilities have been separately classified as current and non-current as envisaged by IAS 1.
More specifically, an asset must be classified as current when it meets one of the following criteria, i.e. when it is:
(a) Held for collection, sale or consumption during the entity’s normal operating cycle;
(b) Held primarily for the purpose of trading;
(c) Assumed to be traded within 12 months after balance-sheet date;
(d) Cash or a cash equivalent.
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Consolidated Annual Report and Accounts as at 31 December 2009
All other assets have been classified as non-current.
A liability must be classified as current when it meets one of the following criteria -- i.e. when it is:
(a) Expected to be settled within an entity’s normal operating cycle;
(b) Held primarily for the purpose of trading;
(c) Due to be settled within 12 months after balance-sheet date;
(d) A liability for which the entity does not have an unconditional right to defer settlement of the liability beyond 12
months.
All other liabilities have been classified as non-current.
Moreover, on the basis of IFRS 5, those assets (and related liabilities) whose book value will be recovered mainly on sale
rather than on continuing use have been classified as “Assets held for sale” and “Liabilities relating to assets held for
sale”.
- Income statement
Costs have been classified by function, separately indicating the costs of sales and distribution and administration costs,
since it is believe that this method, based on the business sector in which the company is active, provides readers with
more meaningful and relevant information than the alternative classification of costs by nature.
- Statement of changes in equity
The statement was prepared presenting items in individual columns with reconciliation of the opening and closing balances
of each item forming equity.
- Cash flow statement
Presentation of cash flows of operating activities is based on the indirect method, since this is considered to be the approach
most appropriate for the business sector in which the company operates. Based on this approach, the net result
is adjusted for the effects of non-cash transactions on investment and finance transactions.
Property, plant, and equipment
Property, plant, and equipment are initially recorded at their acquisition or production cost, inclusive of pertinent ancillary
costs incurred to bring assets to working condition for their intended use, excluding land and buildings owned by the
Parent Company for which the deemed cost model has been used, on the transition date, based on the market value determined
through appraisal performed by an independent and qualified appraiser.
Tangible assets are shown net of depreciation and of any impairment of value, with the exception of land, which is not depreciated.
Costs borne for ordinary and/or programmed maintenance and repairs go directly into the income statement in the financial
year when they are incurred. Costs concerning the extension, modernisation or upgrading of owned or leased third-party
assets are capitalised to the extent that they can be separately classified as an asset or part of an assets. The amount initially
recognised undergoes systematic straight-line depreciation, calculated on the basis of assets’ useful life.
If the asset depreciated is composed of items that can be identified separately, whose useful life differs significantly from
that of the other items of the fixed assets, depreciation is calculated separately for each of the items forming the asset according
to the principle of component approach. Profits and losses deriving from the sale of assets or groups of assets are
determined by comparing the sale price with the relevant net book value.
Capital grants relating to tangible assets are recorded as deferred revenues and credited to the income statement over the
depreciation period of the assets concerned.
Finance expenses relating to purchase of a fixed asset are charged to the income statement unless they are directly attributable
to the acquisition, construction or production of an asset justifying capitalisation.
Assets acquired by virtue of a finance lease are recognised as tangible assets set against the related liability. Lease cost
128

is broken down into finance expense – charged to the income statement – and repayment of principal – recognised as
reduction of the relevant financial liability.
Leases in which the lessor does not substantially transfer all the risks and benefits connected with ownership of the assets
are classified as operating leases. The costs of operating leases are shown line by line in the income statement for
the duration of the lease contract.
Depreciation is calculated on a straight-line basis on assets’ estimated useful life, according to the depreciation rates indicated
below:
CATEGORY Rate
Buildings 3%
Light construction equipment 10%
Non operating machinery 10%
Non operating plastic machinery 10%
Depreciable equipments 40%
Operating machines 15,5%
Operating plastic machines 15,5%
Office furniture 12%
Stand 27%
Electronic machines 20%
Vehicles 25%
Trucks 20%
Marcolin S.p.A.
Intangible fixed assets
Intangible assets consist of controllable, non-monetary assets without physical substance that are clearly identifiable and
able to generate future economic benefits. These assets are recognised at purchase and/or production cost, inclusive of
directly attributable expenses to bring the asset to working condition for use, net of cumulative amortisation (except for
assets with an indefinite useful life) and of any impairment of value. Amortisation starts when the asset is available for use
and is systematically spread over the asset’s useful life.
If any indications emerge suggesting impairment of value, the asset’s recoverable value is estimated, charging any impairment
loss to the income statement. If the reasons for previous write-down cease to exist, carrying value is written back
recognising this as income in the income statement, within the limits of what the asset’s net carrying value would have
been if there had been no impairment loss and the asset had been amortised.
Goodwill
Goodwill represents the excess of purchase cost as compared with the fair value of the asset acquired. Goodwill is not amortised
but subjected to annual testing – unless there are specific indicators making interim testing necessary – to ascertain
the existence of impairment of value (i.e. impairment testing). Profits and losses deriving from the sale of assets to
which the goodwill refers, are determined considering the value of the relevant goodwill.
Trademarks and licences
Trademarks and licences are recognised at cost. They have a finite useful life and are measured at cost net of cumulative
amortisation. Amortisation is calculated on a straight-line base so as to allocate the cost of trademarks and licences
according to their residual possibility of use.
If impairment is found over and above the amortisation already charged, the asset would be consequently written down;
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Consolidated Annual Report and Accounts as at 31 December 2009
if the reasons for write-down cease to exist in future financial years, the value is written back to the net book value that
the asset would have had if the write-down had not been made or if amortisation had been made.
Trademarks are amortised on a straight-line basis over their estimated useful life, ranging from 15 to 20 years.
Software
Software licences acquired are capitalised on the basis of the costs incurred for their purchase and the costs necessary
to make them serviceable. Amortisation is calculated on a straight-line basis over their estimated useful life (from 3 to 5
years). Costs associated with software programmes’ development and maintenance are posted as costs when they are incurred.
Direct costs include the cost of employees who develop the software.
Research & development costs
Research and development costs for new products and/or processes are expensed when they are incurred when the requirements
laid down by IAS 38 regarding their capitalisation do not exist.
Impairment of asset value
In the presence of specific indications of loss of value, tangible and intangible assets are subject to impairment testing.
For the purposes of impairment testing, goodwill is allocated to the smallest cash generating units (CGUs) that it is possible
to identify and compared with operating cash flows discounted to present value generated by such units.
Testing consists of estimation of the asset’s recoverable value and comparison of the latter with its net carrying value. If
an asset’s recoverable value is lower than its carrying value, the latter is reduced to recoverable value. This reduction is
an impairment loss that is charged to the income statement.
For assets that are not subject to depreciation and amortisation, and for intangible assets not yet available for use, impairment
testing is performed at least annually, irrespective of the presence of specific indicators.
The requisites and approach applied by the Company for restoring the value of an asset previously written down, excluding
that of goodwill, which cannot be written back – are those envisaged by IAS 36 (Impairment of Assets).
Financial derivatives
Derivative financial instruments are used only with the intention of hedging, in order to reduce company exposure to exchange
rate and interest rate risks. All financial derivatives are measured at fair value, as provided for by IAS 39. In accordance
with IAS 39, financial derivatives may only be entered in the accounts according to the hedge accounting method
when, on commencement of hedging, the formal designation and documentation on the hedging relationship exists, it is
presumed that hedging will be highly effective, the efficacy can be reliably measured and the hedging itself is highly effective
during the various accounting periods for which it is designated.
If the hedge is effective, the following accounting policies apply:
Fair value hedge – If a financial derivative is designated as a hedge for exposure to variations in the fair value of an asset
or a liability shown in the financial statements attributable to a particular risk which may affect the income statement, the
profit or loss deriving from the subsequent valuations of the fair value of the hedging instrument are recognised in the income
statement. The item covered is adjusted to the fair value for the portion of risk covered and, as a counter value, there
is a profit or loss in the income statement.
Cash flow hedge – if a derivative financial instrument is designed to hedge exposure to the variability of future cash flows
of an asset or liability booked in the financial statements, the actual portion of the fair value changes of the derivative financial
instrument is recorded in shareholders' equity. The cumulative profit or loss is transferred from the equity and entered
in the income statement in the same period as that in which the transaction hedged took place. The profit or loss
associated with a hedge (or part of a hedge) that has become ineffective is entered in the income statement immediately.
If a hedge instrument or a hedge account is closed, but the transaction hedged has not yet been realised, the cumulative
profits or losses, recognised in equity up till then, are shown in the income statement at the time the relevant transaction
130

Marcolin S.p.A.
takes place. If the transaction hedged is no longer considered likely, the profits or losses not yet realised and outstanding
in the equity are booked to the income statement immediately. If hedge accounting cannot be applied, the profits or losses
deriving from the valuation at fair value of the financial derivative are recognised in the income statement immediately.
Inventories
Inventories are measured at the lowest between average purchase or production cost and relevant presumed realisable
value based on market trends. Presumed realisable value is calculated on the estimate of selling price in normal market
conditions net of direct selling costs.
Purchase cost has been used for products purchased for resale and for materials directly or indirectly used, purchased
and used in the production process, whereas, for finished products or semi-finished products in process, production cost
is used.
To determine purchase cost we have taken into account the price effectively paid, inclusive of directly attributable ancillary
costs, including: freight costs and customs duties net of trade discounts.
In production cost, besides the cost of materials used, as defined above, we have included direct and indirect manufacturing
costs.
Obsolete or slow-moving inventories are written down according to their possibility of use or realisation.
Financial assets – Receivables and borrowings
Trade receivables, current financial receivables and other current receivables, except for assets deriving from financial derivatives
and all financial assets for which prices on an active market are not available and whose fair value cannot be determined
reliably, are valued, if they have a prefixed maturity, at amortised cost calculated using the effective-interest
method. When the financial assets do not have a prefixed maturity, they are valued at cost. Receivables maturing after
more than a year, not accruing interest or accruing interest below the market rate are discounted by applying the market
rates and are entered in non-current assets. Valuations are regularly made in order to check whether there is any objective
evidence that the financial assets taken individually or within a group of assets may have fallen in value. If such evidence
exists, impairment is shown as a cost in the income statement for the period.
With regard to trade receivables in particular, adjustment to realisation value is effected by means of an adjustment fund
set up when there is an objective indication that the Company will not be able to collect the receivable at the original value.
Cash & banks
Cash and cash equivalents include cash, demand deposits held with banks, other highly liquid short-term investments,
i.e. with an original duration of up to three months, and entered for amounts actually available at the year end.
Assets held for sale and related liabilities
These items should include non-current assets (or groups of assets and liabilities for sale) whose carrying value will be
recovered mainly through sale rather than through continuing use. Assets held for sale (or a disposal group) are valued
at the lower of their net carrying value and the fair value net of costs of sale.
If these assets (or a group held for sale) cease to be classified as an asset held for sale, the amounts are neither reclassified
nor resubmitted for comparative purposes with the classification in the balance sheet of the most recent year presented.
Equity
Share capital
Share capital consists of the subscribed and paid-up capital.
Costs strictly related to the issue of new shares are posted as a direct reduction of Equity net of the deferred tax effect.
Treasury shares
Treasury shares are shown as a deduction of equity. Treasury shares’ original cost and revenues stemming from any sub-
131

Consolidated Annual Report and Accounts as at 31 December 2009
sequent sales of the same are shown as changes in equity. The own shares reserve in the portfolio recorded in previous
financial years is classified in the undivided profits reserve.
Stock options
Marcolin S.p.A. offers additional benefits to the Parent Company's Managing Director through a stock options plan approved
over the course of 2008. In accordance with IFRS 2 - Stock Options, these plans represent a component in the
beneficiary’s retribution. Hence, the cost is represented by the fair value of the stock option at the date it is assigned, and
it is recorded at the economic cost during the period between the date they are assigned and the date they mature, with
the counter value registered directly to equity. Variations in the fair value of the options after the date they are assigned
do not effect initial value.
Employee benefits
Employee benefits that are paid out upon or after cessation of the employment relation via defined-benefit programmes (as
is the Italian employee severance indemnity system) are recognised at the time when the right to such benefits accrues.
Liabilities relating to defined-benefit programmes are calculated on the basis of actuarial valuations and are posted on an accrual
basis consistently with the employee service necessary to obtain the benefits concerned. Our actuarial valuations have
been made by independent experts.
Gains and losses stemming from actuarial valuations are posted in the income statement regardless of their value, without
using the so-called “corridor approach”.
The employee severance indemnity fund, a peculiarity of the Italian entity, falls within the definition of defined-benefit programmes.
As from 1 January 2007 and only for companies with at least 50 employees, Financial Law 2007 (the law of 27
December, 2006, no. 296, with associated implementing decrees) brought significant changes to the regulation of employee
severance indemnity, including with regard to the possibility of the employee to choose how to allocate accruing indemnity.
In particular, new severance pay flows may be assigned by the worker to pre-selected pension forms or kept within the
company (in which case the latter will pay the severance pay contributions into a treasury account held at the INPS).
In light of these changes, the legislation must now consider a defined benefits plan exclusively for the amounts accrued before
01 January, 2007 (and not yet paid at the balance sheet date), while after this date, it will be assimilated with a defined
benefits plan.
The changes that occurred in the reference laws led to variations in the actuarial assumptions used for valuating liabilities
regarding funds matured through 31 December, 2006.
The effects of these variations were recorded in 2007, which was the first year the accounting effects of this reform were in
effect, as well as its relative expenses (the so-called curtailment effect).
Provisions for risks and charges
Provisions for risks and charges comprise provisions stemming from present obligations (either legal or constructive) to
third parties as a result of a past event, settlement of which is likely to require an outflow of financial resources, the amount
of which can be reliably estimated.
Provisions are posted for an amount that is the best discounted estimate of the amount the company should pay to settle
the obligation or to transfer it to third parties as at balance-sheet date.
Changes in estimates are reflected in the income statement for the period when the change occurred.
The risks for which the existence of a liability is only possible are identified in the section relating to commitments and guarantees
without making any provision.
Trade and other non-financial payables
Payables whose due dates are consistent with normal terms of trade are not discounted to present value and are recorded
at their face value.
132

Financial liabilities
Loans are initially recognised at cost, corresponding to the liability’s fair value net of the costs of its arrangement. After
the initial recording, these are valued at the amortised cost; any difference between the amount financed (net of the costs
of incurring the loan) and the par value is posted in the income statement throughout the life of the loan, using the effective
interest method. If there is a change in expected cash flows and management is able to estimate them reliably, the
value of borrowings is recalculated to reflect any changes expected in cash flows.
Loans are classified among current liabilities if they mature in less than 12 months after balance-sheet date and if the company
does not have an unconditional right to defer their payment for at least 12 months.
Loans are removed from the balance sheet when they are extinguished or when all risks and costs associated with them
have been transferred to third parties.
Revenues and income
Revenues are measured at fair value net of return sales, discounts, allowances, and bonuses.
More specifically, the Group recognises revenues from the sale of goods in accounts when all risks and rewards of the
goods’ ownership are actually transferred to customers according to the terms of the sales agreement. These revenues
are recognised net of an allocation which represents the best estimate of the profit lost due to customers returning merchandise.
This allocation is based on specific historic figures.
Revenue arising from performance of services is recognised with reference to the state of completion of the transaction
at the balance sheet date.
Interest income is calculated on a time proportion basis and according to the effective yield of the asset to which such income
refers.
Dividends are recognised when the shareholder’s right to receive payment is established. This normally corresponds to
the shareholders’ resolution on dividend distribution at the Annual General Meeting.
Costs
Costs are posted according to the principles of relevance and economic accrual.
Marcolin S.p.A.
Financial income and expenses
Interest is recognised on an accruals basis based on the effective-interest method, i.e. using the interest rate that renders
all inflows and outflows constituting a specific transaction financially equivalent.
133

Consolidated Annual Report and Accounts as at 31 December 2009
Translation of foreign currency amounts
Transactions in currency other than the Euro are converted to the local currency using exchange rates in force at the
transaction date. Foreign exchange differences arising in the period go through profit or loss.
Foreign currency receivables and payables are adjusted to the exchange rate in force as at balance-sheet date, recognising
the whole amount of positive or negative foreign exchange differences in the income statement among finance income
and expense.
Income taxes
Income taxes are recognised in the income statement, with the exception of those concerning items directly debited or
credited to equity, in which case the tax effect is recognised directly in equity.
Deferred taxes are calculated based on the temporary differences generated between the value of the assets and liabilities
included in the company accounts and the value attributed to those assets/liabilities for tax purposes.
Deferred tax assets and liabilities are measured at the tax rates that are expected to be applicable, in the financial years
when temporary differences will be utilised or extinguished.
Deferred tax assets (prepaid taxes) are recognised to the extent that it is likely that future taxable profit will be made
against which they will be able to be recovered. The carrying value of deferred tax assets is reviewed at each balance-sheet
date and, if necessary, is reduced to the extent that it is no longer probable that sufficient taxable profit will be made to
allow partial or total recovery of the assets. Any such reductions are reversed if the conditions causing them cease to
exist.
Other taxes not relating to income, such as property and capital taxes, are included in operating accounts.
Recording of revenues
Revenues are recorded net of returns, discounts, vouchers, and prizes, as well as taxes directly connected with the sales
of goods and provision of services.
Revenues from sales are recorded when the company has transferred significant risks and returns connected to ownership
of the goods and the amount of revenue can be reliably determined.
Revenue of a financial nature is recorded based on temporal competency.
Seasonality of revenues
It should be noted that sales in the eyewear sector are mainly concentrated in the first half of the year.
134

NEW IFRS AND IFRIC INTERPRETATIONS
Marcolin S.p.A.
Accounting standards, amendments and interpretations applied as from 1st January 2009
The following is a brief description of the standards that have been applied for the first time in the financial statements
for 2009.
IFRS 8 - Operating Sectors: the new standard is applicable as from 1st January 2009 in lieu of IAS 14 – Segment reporting.
It requires the segment reporting to be based on elements used by the management to make its operative decisions.
The adoption of this standard has not had any effect on the financial statements as the Company has, in fact, determined
that the operative sectors are the same as those established previously according to IAS 14 – Segment Reporting.
IAS 1 - Presentation of the interim report: the new version of the standard requires the company to present the changes
from transactions with shareholders in the statement of changes to the net equity, whilst all other transactions with third
parties must, instead, be posted in a single comprehensive income statement, or, alternatively in two separate statements
(income statement and comprehensive income statement or total income statement). With reference to the income statement,
the Company has opted for the presentation of two separate statements: the income statement and the total income
statement. In 2009, transactions with non-shareholders reported in this statement concerned only changes to the
cash flow hedge reserve and the effects of the change into euros of the financial statements pertaining to subsidiaries and
drawn up in a foreign currency.
The following accounting standards, amendments and interpretations, applicable as from 1st January 2009, have not, on
the other hand, proved to be relevant as they govern situations and cases that are not relevant for the Company as of the
date of these financial statements:
− IAS 23 amended - Financial Charges;
− Amendment to IFRS 2 – Share-based payment – Vesting conditions and cancellations;
− Amendment to IAS 32 – Financial instruments: Presentation and IAS 1 – Presentation of Financial Statements – Financial
instruments;
− Improvement to IAS 16 – Property, plant and equipment;
− Improvement to IAS 19 – Employee benefits;
− Improvement to IAS 20 – Accounting for government grants and disclosure of government assistance;
− Improvement to IAS 28 – Investments in associates;
− Improvement to IAS 29 – Financial reporting in hyperinflated economies;
− Improvement to IAS 36 – Impairment of assets;
− Improvement to IAS 38 – Intangible assets;
− Improvement to IAS 39 – Financial instruments: Recognition and measurement;
− Improvement to IAS 40 – Investment property;
− Amendment to IAS 32 – Financial instruments: presentation and IAS 1 – Presentation of financial statements - Puttable
instruments and instruments with obligations arising on liquidation;
− Amendment to IFRS 7 – Financial instruments: enhancing disclosures about fair value measurements;
− IFRIC 13 – Customer loyalty programmes;
− IFRIC 15 – Agreements for the construction of real estate;
− IFRIC 16 – Hedges of a net investment in a foreign operation.
135

Consolidated Annual Report and Accounts as at 31 December 2009
Accounting standards, amendments and interpretations not yet applicable and not adopted in advance
The Company has not opted for early adoption of the following Standards, Interpretations and Updates to standards already
published and compulsory in future years:
136
IAS/IFRS Standard or IFRIC Interpretation date of date of Effects
issue enforcement (n.a. not applicable
n.r. nor relevant)
IFRS 3 - Business Combinations JAN 2008 JAN 2010 N.r. 2009
IAS 27 - Consolidated and Separate Financial Statements
IFRS 5 - Non-Current Assets Held for Sale
and Discontinued Operations
IAS 39 - Financial Instruments:
2008 JAN 2010 N.a. 2009
Recognition and Measurement
IFRIC 17 - Distributions of
JUL 2008 JAN 2010 N.a. 2009
Non-cash Assets to Owners
IFRIC 18 - Transfers of Assets
NOV 2008 JAN 2010 N.a. 2009
from Customers
AMENDMENTS TO IFRS ("improvement")
NOT ADOPTED:
IFRS 2 - Share-based Payment
JAN 2009 JAN 2010 N.r. 2009
IFRS 5 - Non-current Assets held for sale and Discontinued Operations
IFRS 8 - Operating Segments
IAS 1 - Presentation of Financial Statements
IAS 7 - Statement of Cash Flows
IAS 17 - Leases
IAS 36 - Impairment of Assets
IAS 38 - Intangible Assets
IAS 39 - Financial Instruments: Recognition and Measurement
IFRIC 9 - Reassessment of Embedded Derivatives
IFRS 2 - Share based payment:
Group Cash-settled Share-based
APR 2009 JAN 2010 N.a. 2009
Payment transactions JUN 2009 JAN 2010 N.a. 2009
IAS 32 - Classification of Rights Issues OCT 2009 JAN 2011 N.a. 2009
IAS 24 - Related Party Disclosures NOV 2009 JAN 2011 N.a. 2009
IFRS 9 - Financial Instruments
IFRIC 14 - Prepayments
NOV 2009 JAN 2013 N.a. 2009
of a Minimum Funding Requirement NOV 2009 JAN 2010 N.a. 2009
IFRIC 19 - Extinguishing Financial
Liabilities with Equity Instruments NOV 2009 JAN 2010 N.a. 2009

3. FINANCIAL RISK FACTORS
Market risks
Management of financial risks is done based on guidelines covering some specific areas, i.e. hedging of foreign exchange
risks (above all vis-à-vis the US dollar) and of risks stemming from fluctuations in interest rates.
The company seeks to minimise the impact of such risks on its results also via use of some derivative instruments. Consistently
with its chosen strategy, the company undertakes derivative transactions for the sole economic purpose of hedging.
If, however, according to application of the appropriate accounting standards (IAS 39 – Financial Instruments:
Recognition and Management) such transactions cannot be technically recognised in accounts as hedging transactions,
they are not qualified as hedging transactions.
Foreign exchange risk
The Company operates internationally and is exposed to foreign exchange risk (particularly as regards the US dollar). The
company has the task, via its internal facilities, of examining and monitoring the evolution of the amounts of the various
foreign currency items and, consequently, of evaluating possible stipulation of appropriate contracts for hedging purposes
via negotiation of the same on the derivatives market.
This method makes it possible to maintain a balance of the key currency positions and based on sensitivity analysis of
the change in exchange rates, it is held that a change in exchange rates does not significantly impact the Company’s financial
statements.
In fact, the Company has adopted a specific policy for foreign exchange risk management.
Interest rate risk
Interest-rate risk is split into fair value risk and cash flow risk.
The Company is mainly exposed to cash flow risk, originating from financial loans at floating interest rates.
Note the matters shown in the section related to the risk of liquidity as regards the quantity analysis of the exposure to
cash-flow risk of the Company, related to interest rates on loans.
For details on the loans in force, see paragraph 19 of this document.
The Company handles interest-rate oscillation risks through the use of derivative contracts, typically interest rate swap,
which make it possible to reduce the variability of the interest rate.
Details of the derivative contracts existing at year-end are as follows.
Covering contracts for the interest rate risk
(euro/000)
In the section dealing with financial liabilities more details can be found regarding these derivative instruments.
Marcolin S.p.A.
Type Institute Notional Currency Expiration date Mark to Market
Interest Rate Swap Efibanca 7.000 EUR 27.06.2012 (334)
Collar con knockout su cap Cassa di Risparmio del Veneto 3.979 EUR 31.12.2010 (80)
(ex Banca Intesa)
Sensitivity analysis on interest rates
A sensitivity analysis on the interest rate was conducted, assuming a parallel and symmetric shift up and down of 50
basis points of the Euribor/Swap Eur interest rate curves, published by provider Bloomberg related to 31 December, 2009
and 31 December, 2008. In this way, the impact on the income statement and shareholders' equity that changes would
have had could be estimated.
The analysis did not include financial instruments not significantly exposed to changes in interest rates, such as short-
137

Consolidated Annual Report and Accounts as at 31 December 2009
term trade receivables and payables
Interest amounts on loans incurred with banks were recalculated based on the above-mentioned assumptions and the
position in the year, re-determining the higher/lower financial charges calculated on an annual basis.
As regards interest rate derivatives, the interest pertaining to the year was recalculated based on the assumptions above.
At year-end, derivative contracts were valued at the fair value using the interest rate curves modified based on the aforementioned
assumptions. For derivative contracts hedging cash flow, the opposite value of the fair value assessment is represented
by the specific shareholders' equity reserve, assuming full effectiveness of the report, while for the hedging
derivatives, the value of the assessment to fair value is recorded on the income statement.
For cash and cash equivalents, the average balance for the period was calculated considering the values in the financial
statements at the start and end of the year. On the amount calculated in this way, the income statement was affected by
an increase/decrease in the interest rate of 50 basis points beginning on the first day of the period.
The sensitivity analysis, conducted according to the above criteria, indicates that the Company is exposed to interest rate
risk in relation to expected cash flows. If interest rates rise by 50 basis points, the income statement would show a negative
change equal to € 55 thousand (€ -48 thousand in 2008) caused mainly by the increase in financial charges relating
to bank borrowings, which is only partly offset by the improvements in the interest rate of derivatives, the positive
revaluation of trading derivatives and the higher interest income relating to cash. Contrariwise, shareholders' equity would
increase by € 38 thousand (€71 thousand in 2008) due to the revaluation of hedge derivatives on cash-flow.
If interest rates fall by 50 basis points, the income statement would show a positive change equal to € 20 thousand (€52
thousand in 2008) caused mainly by the decrease in financial charges generated by bank borrowings, partly offset by the
worsening of the interest rate on derivatives, the positive revaluation of trading derivatives and the lower interest income
relating to cash. Contrariwise, shareholders' equity would increase by € 38 thousand (€71 thousand in 2008) due to the
revaluation of hedge derivatives on cash-flow.
Credit risk
The Company does not feature significant concentration of credit risk. Assets are recognised in accounts net of any writedown
calculated based on the risk of counterparty non-performance determined based on the information available on
the client’s solvency and historic data.
Guidelines have been implemented for managing customer credit to ensure that sales are undertaken only with reasonably
reliable and solvent parties, also via the creation of given and differentiated credit exposure ceilings.
Below is the schedule with the breakdown of receivables by key areas in which the Company operates in order to evaluate
country risk.
138
Receivables by geo,graphical area
(euro/000)
DEC 31, 2009 DEC 31, 2008
Italy 22.747 18.727
Rest of Europe 15.858 17.535
North America 4.294 7.673
Rest of the World 8.186 11.262
Total 51.085 55.196

Liquidity risk
Prudent management of the liquidity risk implies maintenance of an adequate level of cash and cash equivalents and the
availability of funds obtainable via adequate credit lines. Due to the dynamic nature of the business in which it is active,
the Company gives preference to flexibility in funding via use of lines of credit. At the current state, the Company believes
it has sufficient access to funds from available income and lines of credit to meet the financial needs for ordinary activities.
The types of credit lines available and the base rate on the reference date are shown below in paragraph 19 of the
Explanatory Notes to the Annual Report and Accounts.
Liquidity analysis
Liquidity analysis regards loans, derivatives, and trade payables. Loans incurred have been indicated by time period, with
capital repayments and non-discounted interest. Future interest flows are determined based on the forward interest rates
taken from the curve of spot rates published by Bloomberg at year-end.
As regards derivatives, expected cash flows were considered based on the same market variables.
None of the cash flows included in the table were subject to discounting.
For the assessment of the fair value of loans incurred, future cash flow was estimated on the basis of forward interest rate
implicit in the interest rate relative to the valuation date and, as regards calculation of the coupon in progress, of the most
recent fixing available of the Euribor.
The values calculated using this method were discounted based on the discount factors related to the various expiration
dates of the cash flow mentioned above.
The derivatives used by the Company are classified as OTC (over the counter) derivatives and therefore, there is no officially
recognised public price formed on the trading markets.
Financial payables Loans Derivatives Commercial TOTAL
(euro/000) payables
within 3 months 2.365 0 33.982 36.347
from 3 to 6 months 7.061 102 959 8.122
from 3 to 12 months 7.549 139 (281) 7.407
from 1 to 3 years 25.232 219 0 25.451
from 3 to 5 years 4.674 9 0 4.683
over 5 years 251 0 0 251
TOTAL 31.12.2008 47.133 468 34.660 82.262
within 3 months 155 0 29.093 29.248
from 3 to 6 months 9.701 188 3.109 12.998
from 3 to 12 months 9.772 184 553 10.509
from 1 to 3 years 21.363 48 0 21.411
from 3 to 5 years 7.358 0 0 7.358
over 5 years 3.001 0 0 3.001
TOTAL 31.12.2009 51.350 420 32.755 84.525
Marcolin S.p.A.
To value these derivatives, the company used, respectively, discounted cash flow and Black & Scholes methods for interest
rate swap and for the Cap and Floor, fed with input data published by Bloomberg.
139

Consolidated Annual Report and Accounts as at 31 December 2009
4. USE OF ESTIMATES
rying Preparation of the year-end accounts makes it necessary for management to make estimates that could affect the car
value of some assets and liabilities and reported costs and revenues, as well as disclosures concerning potential assets/liabilities
as at balance-sheet date.
Estimates mainly refer to valuation of the recoverability of intangible assets, definition of tangible assets’ useful lives, the
recoverability of receivables (by prepaid taxes as well) and warehouse stock, and recognition or measurement of provisions.
Estimates and assumptions are based on data reflecting the present status of information to hand.
The estimates and assumptions causing a significant risk of changes in the carrying values of assets and liabilities are:
- Write-down of non-current assets
In accordance with the applied accounting standards and policies, non-current assets are subjected to testing to see whether
value has been impaired, when indicators suggest that net carrying value exceeds relevant recoverable value, consisting
of the higher of fair value (net of selling costs) and value in use. Recoverable values have been calculated based
on determination of “value in use”. These calculations require the use of estimates of the future economic performance,
the discounting rate and prospective growth rate to be applied to the prospective cash flows. Verification of the effective
materiality of such indicators requires directors to make subjective evaluations based on information available inside the
Company and on market information, as well as on management’s knowledge. In the presence of potential impairment
of value, the Company calculates this using valuation techniques deemed to be appropriate. Proper identification of indicators
of the existence of potential impairment of value and estimates to calculate it depend on factors that may vary over
time, affecting the valuations and estimates made by directors.
- Deferred income tax
Recognition of deferred tax assets is based on expectations of income in future financial years. Assessment of expected
income for the purposes of recognition of deferred taxes depends on factors that may vary over time and have significant
effects on the assessment of deferred tax assets.
5. PROPERTY, PLANT AND EQUIPMENT
These assets featured the following breakdown and changes:
140
PROPERTY, PLANT AND EQUIPMENT Land and Plant and Industrial and Other Assets under Total
(euro/000) buildings machinery commercial tangible construction
equipment assets
Opening 2008 6.656 2.545 1.727 917 304 12.149
Increases 10 587 1.213 276 27 2.113
Decreases 0 0 0 (5) 0 (5)
Amortisation (453) (623) (1.249) (428) 0 (2.752)
Other movements (15) 0 35 73 (304) (211)
Net value at end of 2008 6.198 2.510 1.727 833 27 11.295
Opening 2009 6.198 2.510 1.727 833 27 11.295
Increases 1.100 253 1.024 1.033 2.435 5.845
Decreases 0 (1) 0 (131) 0 (132)
Amortisation (448) (600) (1.269) (481) 0 (2.798)
Other movements 0 0 12 0 (12) 0
Net value at end of 2009 6.849 2.163 1.495 1.253 2.451 14.210

Investments made during the year amounted to 5,845 thousand euros (2,113 thousand for 2008). Much of these refer
to the development of a new property that will allow for a centralisation of the Group’s delivery activities, thereby improving
the logistics and after-sales service and increasing production capacity. This investment relates to the purchase of
land for 1,100 thousand euros and advances for 2,435 thousand euros already paid for the construction of the new building.
Furthermore, industrial and commercial equipment was purchased for 1,024 thousand euros, and plants and machinery
for 253 thousand euros. The item ‘Other assets’ is up by 1,033 thousand euros, mainly following investments made for
the renewal of the fair stand for 688 thousand euros.
The sales of the item ‘Other assets’ refer to the sale of the trade fair stand that was no longer in use.
The gross value of property, plant and equipment and the value of the associated depreciation reserve at December, 2009
are shown in the following table:
6. INTANGIBLE ASSETS
These assets featured the following breakdown and changes:
Marcolin S.p.A.
PROPERTY, PLANT AND EQUIPMENT Land and Plant and Industrial and Other Assets Total
(euro/000) buildings machinery commercial tangible under
equipment assets construction
Historical cost 13.406 12.417 15.140 5.460 2.451 48.874
Accumulated amortisation (6.556) (10.255) (13.646) (4.207) (34.664)
Net book value 6.849 2.163 1.495 1.253 2.451 14.210
INTANGIBLE ASSETS Industrial and Concessions, Total
AND GOODWILL other patent rights licenses and
(euro/000) trademarks
Opening 2008 1.284 6 1.290
Increases 139 1.800 1.939
Amortisation 0 0 0
Translation difference (615) (17) (632)
Other movements 186 10 196
Net value at end of 2008 994 1.799 2.793
Opening 2009 994 1.799 2.793
Increases 230 0 230
Amortisation 0 0 0
Translation difference (660) (101) (761)
Other movements 0 0 0
Net value at end of 2009 564 1.698 2.262
During the year, investments were made for 230 thousand euros (1,939 thousand in 2008), mainly for the implementation
and update of software.
At 31 December, 2009 there are no intangible assets with an indefinite useful life, nor values recorded as goodwill.
141

Consolidated Annual Report and Accounts as at 31 December 2009
The purchase cost and accumulated amortisation of intangible assets posted as a direct deduction of costs, are shown
in the following table:
The item concessions, licenses and trademarks includes the Web brand. This activity, acquired in November 2008 and
whose purchase value has been specifically and expertly estimated by an independent professional, given that it is a transaction
with an associated party, is subjected to amortisation. Amortisation is applied over an estimated useful life of 18
years. The value as of 31st December 2009 has also been subjected to impairment testing on the basis of the Group plans
with regards to the development and margins of Web brand production. From this calculation, it is held that there has been
no loss of value with reference to this asset. For a description of the criteria used to carry out the test, please see that reported
below as comments to the investments.
7. INTERESTS
The detailed report on investments and their movement during the financial year is as follows:
The investment concerning Marcolin International BV has been impaired to the book value and a fund has been allocated
for future risks, for a value of 846 thousand euros (note no. 19).
Please note that in 2009, the share capital of the subsidiary Marcolin do Brasil Ltda was increased by 2,384 million euros
(7,066 million Brazilian real), through the renunciation of some trade payables that are no longer demandable.
142
PROPERTY, PLANT AND EQUIPMENT Industrial Concessions, Total
(euro/000) and other licenses and
patent rights trademarks
Historical cost 5.296 2.326 7.622
Accumulated amortisation (4.733) (628) (5.361)
Net book value 564 1.698 2.262
Subsidiaries Value at Depreciation Revaluation Capital Value at
(euro/000) DEC 31, 2008 increase DEC 31, 2009
Marcolin (Deutschland) GmbH 769 0 0 0 769
Marcolin (UK) Ltd 1.029 0 0 0 1.029
Marcolin Iberica S.A. 826 0 0 0 826
Marcolin GmbH (Svizzera) 0 0 0 0 0
Marcolin Portugal Lda 414 0 0 0 414
Marcolin Benelux S.p.r.l. 495 0 0 0 495
Marcolin do Brasil Ltda 1.156 0 0 2.384 3.540
Marcolin Usa Inc. 25.373 0 0 0 25.373
Marcolin France S.a.s. 1.346 0 0 0 1.346
Marcolin Intern. B.V. 0 0 0 0 0
Total 31.408 0 0 2.384 33.792

With reference to some cash generating units (CGU), identified with the subsidiaries, the company conducted a test based
on performance indicators at year-end and based on calculating the enterprise value, determined by estimated expected
cash flows. This test did not reveal any lasting loss of value.
Information on interests in associated companies is shown below.
Finitec S.r.l. galvanises and paints eye glasses and is the company’s supplier for such operations.
Interest in the two associated companies is valued at cost in conformance with IAS 28.13.
Marcolin S.p.A.
Associated company Value at Depreciation Revaluation Capital Value at
(euro/000) DEC 31, 2008 increase DEC 31, 2009
FINITEC Srl 258 0 0 0 258
Marcolin Japan Co Ltd 325 (26) 0 0 299
Total 583 (26) 0 0 557
INTEREST IN ASSOCIATES
(euro/000)
Finitec S.r.l. Share Capital 54.080 EUR DEC 31, 2009 DEC 31, 2008
Assets 2.482 2.679
Liabilities 1.087 1.113
Shareholders’ equity 1.395 1.567
Net sales 1.583 2.766
Income (loss) for the period (284) 87
% ownership 40% 40%
Marcolin Japan Co. Ltd. Share Capital 99.000.000 JPY DEC 31, 2009 DEC 31, 2008
Assets 2.422 2.952
Liabilities 2.184 2.622
Shareholders’ equity 238 330
Net sales 2.663 2.335
Income (loss) for the period (76) 24
% ownership 40% 40%
Impairment test structure
The impairment test, according to the requirements of IAS 36, is performed at least once a year, with reference to intangible
assets with an indefinite useful life, and with reference to other types of assets, is performed in the presence of external
or internal indicators that may cause the belief that a loss of value exists. In the separate balance sheet, no assets
with an undefined useful life have been posted, and for preparation of the financial statements for the year 2009, there
were not indicators that suggested the presence of a loss of value with reference to tangible assets. With reference to the
intangible assets, as previously mentioned, please recall that the Web brand is subjected to amortisation and has been
duly expertly assessed as of the date of purchase. On this basis, in addition to its congruity with Group plans with regards
to development and other production margins to Web trademarks, it was held that no loss of value existed with reference
to said asset. For the performance of the impairment test on the Web brand, updated forecast data was used, as prepa-
143

Consolidated Annual Report and Accounts as at 31 December 2009
red by management, with reference to a medium-term timescale (until 2015). Forecasts have therefore been prepared
for the residual period of amortisation of the asset, using assumptions held to be prudent, and which reflect the expected
brand life cycle and, in particular, a decrease in volumes, margins and investments after the initial launch phase forecast
for the medium-term.
With regards to equity interests recorded to the separate balance sheet, it was held to be opportune to verify the presence
of a loss of value in the case that impairment indicators were found. It was hence retained opportune to estimate the
value in use of the CGU identified with the subsidiary, based on the parameters specified below.
The value in use, which is compared with the accounting value of the investments, was estimated based on future financial
cash flows congruent with the economic and financial forecasts of the Group with reference to financial year 2010.
In fact, in consideration of the highly uncertain conditions that characterise the current macroeconomic situation, the Directors
found it opportune to limit financial predictions to a single financial year. The approved budget for financial year
2010 takes into account the economic crisis that took hold during the second half of 2008. However, it should be noted
that the estimates are based on valuations relative to future events that could occur with effects different from those that
are expected, causing the possibility of changes, possibly significant, with respect to the forecasted data considered here.
The value in use was determined as the sum of the actual value of cash flows predicted for 2010 and the terminal value
determined based on the forecast data, which was appropriately modified to take into account the effects of normalisation
in order to estimate a balanced cash flow. Due to the generalized conditions of uncertainty, it was held to be prudent
to use a growth rate of zero in determining the terminal value. For discounting of the cash flows, a rate of 7.68% was used,
which reflects current market valuations for the cost of money and the specific risks connected with operations activities.
Additionally three sensitivity analyses were performed on the impairment test, simulating respectively, a variation in the
growth rate from 0 to 1%, and a variation in the discounting rate of 0.5%, 1% and 1.5%.
None of these scenarios led to results in which write-downs would be necessary.
8. OTHER NON-CURRENT ASSETS
This item represents the value of receivables arising from loans granted by Marcolin S.p.A. to subsidiaries for a total value
of € 8,389 thousand and more specifically, for a value of € 4,290 thousand to the subsidiary Marcolin International BV,
for € 2,359 thousand to the subsidiary Marcolin GmbH (Switzerland), and for € 1,739 thousand to the subsidiary Marcolin
France S.a.s.. As compared with last year, the increase of this item of the financial statement is due to the receivable
owing from the subsidiary Marcolin France, by virtue of the restoration of part of the financial receivables in place during
previous years, that had been impaired. This amount was received in January 2010.
Pursuant to the requirements in article 43 paragraph 1 no. 13 of the EEC IV Directive 78/660, we note that at 31 December,
2009 no financing provided to members of administrative, management, or control bodies were in existence, nor were there
any commitments made with guaranty effects with any members of administrative, management, or control bodies, to Directors,
or to statutory auditors.
144

9. INVENTORIES
Details of inventories are shown below.
Inventories DEC 31, 2009 DEC 31, 2008
(euro/000)
Finished goods 24.199 32.106
Raw material 10.289 10.226
Work in progress 7.623 8.334
Gross inventory 42.111 50.666
Inventory provision (12.687) (9.354)
Net inventory 29.424 41.312
By comparing stock values, we can see a significant reduction in inventories overall as compared with last year, amounting
to 11,888 thousand euros (on the net inventory values), traceable to the greater efficiency of the planning process
and the sale of stock accompanied by a significant drop in the average number of days of stock.
More in detail, we have seen:
- a decrease in the value of finished products and goods amounting to 7,907 thousand euros;
- a value of raw materials that is basically unchanged as compared with last year;
- a decrease in the value of works under construction for 712 thousand euros.
The value for the reserve for inventory impairment increased by € 3,333 thousand as of 31st December 2009.
The increase of the inventories impairment fund is due to the impairment policy adopted for all classes of inventories, on
the basis of the recoverable value with use taken from past experience as from last year.
10. TRADE AND OTHER RECEIVABLES
Details of trade and other receivables are as follows:
Trade and other receivables
(euro/000)
DEC 31, 2009 DEC 31, 2008
Gross receivables 54.394 60.024
Provision for bad debts (5.230) (5.135)
Net trade receivables 49.164 54.889
Tax receivables 1.745 72
Other receivables 177 235
Total other receivables 1.921 307
Total 51.085 55.196
Marcolin S.p.A.
The balance of net trade receivables is down by 5,275 thousand euros as compared with last year, in relation to the reduced
turnover and significant improvement of the index of average collection days, despite the particularly difficult period
and without reporting losses in excess of the company historic average.
The amount of receivables stated on the financial statements has not been discounted, as there are no long-term credits
or credits whose realisation is forecast beyond the short-term.
145

Consolidated Annual Report and Accounts as at 31 December 2009
With a view to providing the information requested under IFRS 7, below is a detail of the trade receivables "falling due",
split by geographical area:
In compliance with the provisions of IFRS 7, the table below illustrates the expiration date of the trade receivables not subjected
to protest. The value of the allowance for doubtful accounts remained substantially unchanged with respect to the
previous financial year.
In some markets where Marcolin S.p.A. operates, company policy dictates that receivables are collected beyond the expiration
date foreseen by contract without this leading to financial difficulties or liquidity problems on the part of customers.
Hence, there are balances relative to receivables from clients which were not subject to write-downs, even if the
terms of expiration for payment had already occurred.
The table below illustrates the balance of these commercial receivables, divided into uniform time classes.
146
Receivables not overdue by geographical area DEC 31, 2009 DEC 31, 2008
(euro/000)
Italy 18.991 13.521
Rest of Europe 8.698 14.034
North America 4.158 5.216
Rest of the World 7.270 6.363
Total 39.118 39.135
Ageing commercial receivable not protested Gross value Provision Net value
(euro/000)
DEC 31, 2008
Not overdue 39.135 0 39.135
Overdue less than 3 months 3.359 0 3.359
Overdue from 3 to 6 months 8.786 (362) 8.424
Overdue over 6 months 7.845 (3.874) 3.971
Total DEC 31, 2008 59.125 (4.236) 54.889
DEC 31, 2009
Not overdue 19.448 0 19.448
Overdue less than 3 months 4.978 0 4.978
Overdue from 3 to 6 months 3.562 (339) 3.222
Overdue over 6 months 5.931 (4.086) 1.845
Total DEC 31, 2009 33.918 (4.425) 29.493
Trade receivables overdue and not written-down
(euro/000)
DEC 31, 2009 DEC 31, 2008
Overdue less than 3 months 4.978 3.359
Overdue over 3 months 5.068 12.395
Total 10.046 15.754

For the sake of full disclosure, below is an illustration of the maturity of the receivables submitted to protest. We would
point out that the net book value of these receivables is null due to the impairment applied.
Ageing protested receivable Gross value Provision Net value
(euro/000)
DEC 31, 2008
Overdue less than 12 months 270 (270) 0
Overdue over 12 months 630 (630) 0
Total DEC 31, 2008 899 (899) 0
DEC 31, 2009
Overdue less than 12 months 87 (87) 0
Overdue over 12 months 718 (718) 0
Total DEC 31, 2009 805 (805) 0
Below is an explanation of the changes in the allowance for doubtful accounts.
Provision for bad debts
(euro/000)
2009 2008
Opening 1.818 1.679
Allowance (1.300) 400
Utilisation (346) (261)
Reclassification and other movements 1.740 0
Total 1.912 1.818
We should point out that during the year, part of a financial payable due from the ex French subsidiary, ex Cébé S.a.s.
(now Marcolin France S.a.s.) has been restored for 1,740 thousand euros. This had been entirely impaired and has been
restored by reducing the relevant fund by the same amount.
The original value of the financial receivable was 8,475 thousand euros and is posted in the item 'Other non-current assets'.
It has been entirely impaired with the posting of the relevant fund in the same item of the financial statements.
As such, the year allocations, excluding the above-stated effect, amounted to 440 thousand euros, in line with last year.
Note also that the amounts reported with trade receivables are not subject to guarantees.
Marcolin S.p.A.
147

Consolidated Annual Report and Accounts as at 31 December 2009
Details of receivables from subsidiaries
We should point out that during the year, receivables due from the subsidiary Marcolin do Brasil Ltda, decreased by 2,384
thousand euros, for the stated conversion to the share capital.
11. OTHER CURRENT ASSETS
This item mainly comprises prepaid expenses relating to insurance premiums and rents paid on an advance basis.
12. CASH & CASH EQUIVALENTS
The item represents the value of cash balances and of highly liquid financial instruments, i.e. with an original maturity of
less than three months.
As compared with the situation as of 31st December 2008, we note an increase of cash and cash equivalents amounting
to 7,258 thousand euros. This is a temporary effect due to the partial use of the new, above-stated loans, whose resources
were used in January 2010.
13. EQUITY
Marcolin S.p.A.’s share capital amounts to € 32,312,475.00 and is composed of 62,139,375 ordinary shares with a par
value of € 0.52 each.
Marcolin S.p.A. holds 681,000 treasury shares in portfolio with an overall equivalent value of € 947 thousand, used to reduce
the share capital by a nominal value of € 354 thousand and the remaining € 593 to reduce the treasury reserve included
in the profits carried forward.
For details of changes in the items forming the equity, refer to the relevant table attached to the Management Report.
148
Receivables from subsidiaries DEC 31, 2009 DEC 31, 2008
(euro/000)
Marcolin (Deutschland) GmbH 2.314 2.055
Marcolin (UK) Ltd 1.352 446
Marcolin Iberica S.A. 993 1.189
Marcolin GmbH (Svizzera) 599 470
Marcolin Portugal Lda 2.733 2.486
Marcolin Benelux S.p.r.l. 1.387 1.155
Marcolin Usa Inc. 4.256 7.654
Marcolin Internantional B.V. 1.189 1.084
Marcolin Asia Ltd. 1 155
Marcolin do Brasil Ltda 1.247 4.060
Marcolin France Sas 1.933 4.229
Total 18.004 24.982

Description Value Possible Available Previous
utilization reserve years allocations
- Losses - Other
(euro/000) coverage reasons
Equity 31.958
Share premium reserve 24.517 A-B-C* 24.517 12.803
Legal reserve 1.776 B 0
Fair value reserve land and buildings (FTA) 2.931 A-B 2.931
FTA reserve 5.445 0
Stock Option reserve 186 A-B-C 186
Cash Flow Hedge reserve (334)
Losses carried forward (3.887)
Total 62.592 27.634 12.803 0
Amount not to be distributed ex art. 2426, comma 1 n. 5 c.c. 0
Amount not to be distributed ex art. 2431 c.c. 4.616
Residual amount which can be distributed 23.018
Bound amount ex art. 109 comma 4 lettera b) del T.U.I.R. 0
* Available quota to distribute e 19.828 thousand
Marcolin S.p.A.
Legenda:
A – to capital increase B - to losses coverage C – to shareholders’ distribution D – other
Among the variations which occurred during the financial year, we note, in addition to the period result, the positive adjustment
to the cash flow hedge reserve, relative to derivatives on interest rates stipulated with Efibanca for €17 thousand
and the effects on the stock option reserve totalling €91 thousand, covered in the total economic result.
Stock option reserve
The stock option reserve is in accordance with IFRS 2 principles. In fact, adoption of a stock option plan brings with it
the necessity of recording for accounting purposes a cost equal to the fair value of the options at the date of allocation.
This cost is recognised in the income statement for the duration of the period in which the conditions for use of such options
matures, and a counter value is placed in the associated equity reserve.
As of 31st December 2009, this item amounts to 186 thousand euros. This year, a cost of 91 thousand euros was reported
on the income statement and entirely refers to the share of the stock option plan resolved in 2008, in the favour of the
Managing Director of the parent company, and which matured in 2009.
149

Consolidated Annual Report and Accounts as at 31 December 2009
14. MEDIUM- AND LONG-TERM BORROWINGS
The balance of long-term loans at 31 December, 2009 is represented almost entirely by loans distributed by Cassa di Risparmio
del Veneto, Mediocredito Italiano (both Intesa San Paolo Group) and Efibanca S.p.A. (head of a consortium of financial credit
institutions). For the details, see point 18, Short-term loans.
As already mentioned previously in the Management Report, we would point out that during the year, Marcolin S.p.A. subscribed
the following loans:
- in October a loan agreement for 15 million euros, unsecured, with the Cassa di Risparmio del Veneto (Intesa San Paolo Group);
in December, a loan agreement for 10 million euros, with mortgage guarantee on the new property currently under construction,
with Mediocredito Italiano (Intesa San Paolo Group).
Note that the contract sealed with a group of banks headed by Efibanca S.p.A., was signed on 27 June, 2007 for a maximum
of € 30 million, split into two equal portions of € 15 million each, the first of which was provided in the form of an unsecured
loan and the second as a stand-by line of credit.
At 31 December, 2009 the loan with Efibanca S.p.A., amounted to € 21.2 million.
Below the composition of the net financial position is illustrated. For more information please refer to that indicated above in the
Management Report.
The increase of short-term loans is due to the loan to Cassa di Risparmio del Veneto, previously posted amongst the long-term
loans, but which is now due on 31st December 2010.
150
Net financial position DEC 31, 2009 DEC 31, 2008
(euro/000)
Cash 24 23
Cash equivalents 11.924 4.667
Short term borrowings (9.318) (4.222)
Current portion of long term borrowings (9.614) (12.995)
Long term borrowings (29.254) (28.654)
Total (36.237) (41.181)
Net financial position DEC 31, 2009 DEC 31, 2008
(euro/000)
A Cash 24 23
B Cash equivalents (detail) 11.924 4.667
C Securities held for trading 0 0
D Liquidity (A+B+C) 11.948 4.690
E Current financial receivables 0 0
F Current bank payable 5.927 4.222
G Non current debt - current portion I Current financial debt (F+G) 13.005 12.995
I Current financial debt (F+G) 18.932 17.218
J Net current financial debt (I-E-D) (6.983) (12.527)
K Non current bank loans 29.254 28.654
L Issued bonds 0 0
M Other non current debt 0 0
N Non current financial debt (K+L+M) 29.254 28.654
O Net financial debt (J+N) (36.237) (41.181)

15. LONG-TERM PROVISIONS
The item expresses the balance of the value of the defined benefit plan, which is distributable at the same time or subsequent
to the termination of the employment relationship, and is totally represented by the employee severance indemnity
reserve accrued as at 31 December 2006.
Note that the severance indemnity accruing from 01 January, 2007 is treated as a defined contribution plan. Therefore,
the company discharges its obligations with payment of the contributions to the severance reserves (public or private).
The changes in the aforesaid provisions are shown below:
Long term provisions - Staff leaving indenities
(euro/000)
Opening 4.039
Utilization (306)
Interest 177
Actuarial loss (gain) (127)
DEC 31, 2009 3.784
The following table shows the various rates assumed and the other actuarial hypotheses used for the relevant actuarial
calculation:
Actuarial assumptions 2009
mortality rate: Table RG48
disabilty rate: Table INPS
personnel turnover rate: 5,00%
severance prepaiments: 2,00%
discount rate: 4,10%
wages increase rate: 3,00%
inflation rate: 2,00%
16. OTHER NON-CURRENT LIABILITIES
There were no other non-current liabilities.
Marcolin S.p.A.
151

Consolidated Annual Report and Accounts as at 31 December 2009
17. TRADE PAYABLES
The following table details trade payables by geographical area:
the decrease in trade payables for 3,344 thousand euros, traceable to the lesser production purchases made during the
period, despite the increased index in relation to average payment terms of suppliers.
The amount of trade payables seen in the balance sheet were not subject to discounting, as the amount booked in the
balance sheet represents a reasonable representation of the fair value in consideration of the fact that there are no payables
with deadlines past short-term.
152
Payables by geographical area
(euro/000)
DEC 31, 2009 DEC 31, 2008
Italy 19.904 19.107
Rest of Europe 3.587 3.641
North America 684 2.778
Rest of the World 7.040 9.032
Total 31.215 34.559

18. SHORT-TERM BORROWINGS
The value shown represents the balance of short-term borrowings and other financial liabilities that mature within 12
months after balance-sheet.
In the following table we detail the characteristics of the main loans issued to the company:
Bank Currency Starting Residual Expiration Interest Notes
Amount Amount date rate
Cassa di Risparmio EUR (credit line) 6.672.074 dec 31, 2010 Euribor "Stand by" credit line "revolving" type,
del Veneto 25.000.000 6 months dated FEB 16, 2006. Refundable in 8
(ex banca Intesa) * + 1% half-year instalments from JUN 30, 2007.
* These loans envisage contractual covenants as detailed in the explanatory notes to the accounts of Marcolin Group.
Marcolin S.p.A.
EFIBANCA * EUR (credit line) 21.214.286 jun 27, 2012 Euribor A "Term Loan Facility" of 15.000.000 and a
30.000.000 6 months "Stand by Facility" loan of 15.000.000, dated
+ 1,30% JUN 27, 2007. Paid out the "Term Loan Facility"
line, refundable in 10 half-year instalments from
DEC 27, 2007 and part - payment of the "Stand by
Facility" line of 6.000.000, refundable in 7 half-year
instalments from JUN 27, 2009.
Ministero delle EUR 793.171 563.548 jun 26, 2016 1,012% Subsidized loan in accordance with the Law no.
attività produttive 46, 1982, refundable in 10 year instalments
(Innovazione Tecnologica) from JUN 26, 2007.
Unicredit Corporate CHF 3.500.000 3.500.000 may 12, 2010 1,85% Short term borrowings dated JAN 29, 2008.
Banking
Cassa di Risparmio EUR (credit line) 15.000.000 mar 31, 2015 Euribor Loan dated OCT 26, 2010, refundable in 10
del Veneto 15.000.000 6 months half-year instalments from SEP 30, 2010.
(ex banca Intesa) * + 1,70%
Mediocredito EUR 2.000.000 2.000.000 sep 30, 2019 Euribor Real-estate loan dated DEC 22, 2009,
italiano 3 months refundable in 34 quarterly instalments
from JUN 30, 2011.
The contractual agreements relating to the loans granted to Marcolin S.p.A. by Cassa di Risparmio del Veneto, Mediocredito
Italiano (both Intesa San Paolo Group) and Efibanca S.p.A. include a series of obligations relating to operational and financial
aspects. In particular, several financial economic indexes (“covenants”) need to be observed, calculated in the
consolidated financial statements at the end of each year. The first of the two agreements with Cassa di Risparmio del Veneto
also entails compliance with the parameters at the end of the six-month period of each year.
If these parameters are not observed, the conditions under which the loan agreements will continue will have to be negotiated,
or the relevant changes made to the aforesaid parameters. Otherwise, the amounts granted may have to be repaid
early.
The covenants are calculated on the main financial economic indicators (EBITDA, net financial position and equity). At
31 December, 2009 and over the course of the financial year, the parameters were respected in their entirety.
We would point out that the agreement with Mediocredito Italiano is guaranteed by a mortgage on the new building currently
under construction, whilst all other loans in place have been granted at market conditions, without the issue of security
guarantees.
153

Consolidated Annual Report and Accounts as at 31 December 2009
The following table contains details of the maturity of the financial liabilities, whose value is entered either in current liabilities
or in non-current liabilities.
Information follows with regards to derivative financial instruments existing at 31 December, 2009., their characteristics,
and a comparison to the previous financial year.
Financial assets measured at fair value booked to the income statement.
No values are booked to this item.
Financial liabilities measured at fair value booked to the income statement.
On 28 April, 2006, Marcolin S.p.A. stipulated a derivatives contract on interest rates (IRS) with the Cassa di Risparmio
del Veneto (formerly Banca Intesa) in order to protect itself against risk related to variations in interest rates. This contract
refers to the variable interest rate financing obtained from the institute.
The fair value of the derivatives instrument at 31 December, 2009 was negative by €80 thousand (negative by €116
thousand at 31 December, 2008).
This derivative, while created in order to cover the risk associated with interest rate variations, was not considered as a
hedge accounting item for accounting purposes for IAS, as it calls for a Knock Out barrier, which impedes effective hedging
according to IAS 39.
Financial liabilities measured at fair value booked to equity.
On 30 July, 2007, a derivatives contract on interest rates (IRS) was stipulated with Efibanca in order to cover risks related
to interest rate variations on financing provided by Efibanca.
This instrument was classified and accounted for by the Company as a hedging instrument in that it respects the provisions
of IAS 39. In fact:
- it was contractually established, at the moment the financing was provided, to cover at least 50% of the notional value
of said financing;
- the maturity of the derivative contract corresponds to that of the hedged financing;
- the set dates for calculation of Euribor are the same as those for the derivative instrument and the underlying financing.
154
Borrowings Bank loans Bank Other financial Total
(euro/000) and overdrafts borrowings institutions
within 1 year 1.723 15.417 77 17.217
between 1 and 3 years 0 23.678 157 23.835
between 3 and 5 years 0 4.413 160 4.573
over 5 years 0 0 246 246
DEC 31, 2008 1.723 43.508 641 45.872
within 1 year 0 18.845 87 18.932
between 1 and 3 years 0 19.644 178 19.821
between 3 and 5 years 0 6.471 179 6.650
over 5 years 0 2.618 165 2.783
DEC 31, 2009 0 47.577 609 48.185

The instrument’s fair value at 31 December, 2009 was negative by €334 thousand, of which €229 thousand short-term,
and €105 thousand long-term. Fair value at 31 December, 2008 was negative by €351 thousand. Fair value variations
were booked to equity in an associated reserve (see the table with regard to movements for equity items).
During the year, total financial charges deriving from periodic liquidation of reciprocal positions on two interest rate derivative
instruments amounted to € 316 thousand.
19. CURRENT PROVISIONS
Below we show a table containing the most significant changes occurring during the financial year:
The item Provisions for termination indemnities and similar obligations consists of provisions for agent indemnities payable
upon cessation, the amount of which has been discounted to present value.
The Other provisions amount consists of provisions made against the risk of customer return sales (€ 916 thousand), the
value of the provisions made for other liabilities deriving from current legal or constructive obligations (€ 316 thousand),
as well as risk provisions for losses due to equity investments deriving from measurement at fair value of the subsidiary
Marcolin International BV (€ 846 thousand).
20. OTHER CURRENT LIABILITIES
Below we show the detail of other liabilities:
Marcolin S.p.A.
SHORT TERM PROVISIONS Provision for Other provisions Total
(euro/000) severance indemnities
Opening 2009 495 2.131 2.626
Allowance 147 231 378
Utilisation and other movements (53) (284) (336)
Closing 2009 589 2.079 2.668
OTHER CURRENT LIABILITIES DEC 31, 2009 DEC 31, 2008
(euro/000)
Payables to personnel 2.416 2.817
Social security payables 1.486 1.357
Other accrued expenses and deferred income 82 90
Total 3.984 4.264
The item Other current liabilities mainly consists of payables to personnel, which are down by 401 thousand euros, and
payables to social security institutions which saw an increase of € 129 thousand.
155

Consolidated Annual Report and Accounts as at 31 December 2009
21. COMMITMENTS AND GUARANTEES
Below we show details of the Company’s main commitments and guarantees:
The item consisted mainly of a surety of € 761 thousand issued to the bank issuing a low-rate loan under Italian Law
394/81.
We also point out that contracts are in place for the use of trademarks owned by third parties for the production and sale
of eyewear and sunglasses.
These contracts require payment by Marcolin S.p.A. of guaranteed minimum royalties throughout their duration. As at 31
December, 2009 the total of these future commitments amounted to € 222 million (€ 133 million in 2007), of which €
37 million falling due within the next 12 months. We would point out that the increase of future commitments as compared
with last year relates to the signing of new license agreements with durations spanning several years, and the renewal
of other brands already held in the Company’s portfolio.
156
Contingencies 2009 2008
(euro/000)
Guarantees to third parties 1.473 1.465
Guarantees to Group companies 4.522 9.053
Total contingencies 5.995 10.518

INCOME STATEMENT
22. NET SALES
The breakdown of net sales in financial year 2009 was as follows:
The incidence of revenues Italy on the total sales increases on last year and amounts to 36%. At the same time, there is
a decrease in the incidence of the Rest of Europe, from 37.6% to 33.5%.
23. COST OF SALES
The following table shows the detailed breakdown of cost of sales:
Marcolin S.p.A.
Net sales by geographic area DEC 31, 2009ssssss DEC 31, 2008ssssss Increase (decrease)
(euro/000) Turnover % on total Turnover % on total Turnover Change
- Italy 40.515 36,0% 35.712 29,6% 4.804 13,5%
- Europe 37.690 33,5% 45.315 37,6% (7.625) (16,8)%
- U.S.A. 9.585 8,5% 12.434 10,3% (2.849) (22,9)%
- Rest of the World 24.836 22,1% 27.089 22,5% (2.253) (8,3)%
Total 112.626 100,0% 120.550 100,0% (7.924) (6,6)%
Cost of sales DEC 31, 2009 DEC 31, 2008 Increase %
(euro/000) (decrease)
Purchase of material and finished goods 30.776 45.751 (14.976) (32,7)%
Changes in inventory 11.096 (1.243) 12.339 (992,3)%
Personnel expenses 14.417 14.344 73 0,5%
Outworks 6.088 11.396 (5.307) (46,6)%
Amortisation and depreciation 2.296 2.267 29 1,3%
Other expenses 3.531 3.772 (241) (6,4)%
Total 68.204 76.286 (8.082) (10,6)%
The value of the cost of sales, in absolute terms, decreases by 8,082 thousand euros, with a reduction of the percentage
incidence on sales equal to 2.6%, thanks to a greater efficiency of planning processes and industrial production. This positive
effect has been partially offset by the adoption of more aggressive sales policies, in terms of Customer discounts offered
in response to the demands of the market which has been negatively influenced by the fall in demand.
157

Consolidated Annual Report and Accounts as at 31 December 2009
24. DISTRIBUTION & MARKETING COSTS
Below we show the detailed breakdown of distribution & marketing costs:
The item increases by a total of 3,733 thousand euros (or 10%), mainly due to the greater incidence of minimum guarantees
on license agreements. The increase is partially offset by the reduction of the item Other distribution costs and
marketing.
With regard to the greater impact of the guaranteed minimum royalties, we can report that a series of measures have been
put in place, and are still taking effect, in order to reduce them.
25. GENERAL & ADMINISTRATIVE COSTS
Breakdown of general overheads and administrative costs:
The total value of the item in question increased with respect to the previous period by €1,283 thousand, mainly due to
minor write-downs on receivables.
As already mentioned, the dynamics of this item derives from the fact that during the year, part of a financial payable due
from the French subsidiary, (ex Cébé S.a.s. now Marcolin France S.a.s.) has been restored for 1,739 thousand euros. This
had been entirely impaired and has been restored by releasing the fund for the same amount. Without this effect, the year
receivable impairment amounts to 440 thousand euros.
An increase in other costs is also reported for 325 thousand euros, mainly by virtue of the costs sustained for consulting
(136 thousand euros), EDP expenses (219 thousand euros) and other general area services (227 thousand euros). This
is offset by a decrease in travel expenses (-282 thousand euros).
Pursuant to Article 149-duodecies of the Regulation, we note here that the consideration pertaining to the year 2009 due
to the independent auditors for the accounting audit service amounted to €155 thousand.
158
Selling and marketing costs DEC 31, 2009 DEC 31, 2008 Increase %
(euro/000) (decrease)
Personnel expenses 5.204 5.012 191 3,8%
Commissions 4.774 4.681 93 2,0%
Amortisation and depreciation 875 719 156 21,7%
Royalties 13.668 10.062 3.606 35,8%
Advertising and PR 10.968 10.172 796 7,8%
Other costs 5.400 6.508 (1.108) (17,0)%
Total 40.888 37.155 3.733 10,0%
General and administrative expenses DEC 31, 2009 DEC 31, 2008 Increase %
(euro/000) (decrease)
Personnel expenses 3.036 2.939 97 3,3%
Bad debt provsion (1.300) 400 (1.700) (425,0)%
Amortisation and depreciation 392 397 (5) (1,3)%
Other costs 5.981 5.656 325 5,7%
Total 8.109 9.392 (1.283) (13,7)%

26. MARCOLIN S.p.A. EMPLOYEES
Details of the overall number of employees engaged are shown below:
Employees - Average number
Category 2009 2008
Managers 12 12
First line managers 14 14
Employees 164 158
Workers 418 417
Total 608 601
Employees - Final number
Category DEC 31, 2009 DEC 31, 2008
Managers 12 12
First line managers 14 13
Employees 164 163
Workers 417 418
Total 607 606
27. OTHER REVENUES AND COSTS
The details of Other operating revenues and costs were as shown below:
Other income and expenses DEC 31, 2009 DEC 31, 2008
(euro/000)
Transport refund 1.488 1.868
Release of provision 281 0
Other income 7.098 8.539
Total other income 8.867 10.407
Loss on credits 0 (621)
Loss on investments (140) (1.208)
Total other (expenses) (140) (1.829)
Total 8.728 8.577
Marcolin S.p.A.
The balance of this item is positive for 8,728 thousand euros, with a positive change of 150 thousand euros as compared with
last year. The item ‘other revenues’ includes the re-debiting of advertising royalties to branches for 5,696 thousand euros.
159

Consolidated Annual Report and Accounts as at 31 December 2009
28. OTHER REVENUES AND NON-RECURRENT COSTS
The details of Other non-recurrent revenues and costs were as shown below:
The balance of this item is positive for 544 thousand euros, with a positive change of 188 thousand euros as compared
with last year.
29. FINANCE INCOME AND EXPENSE
The detail of the item Finance income and expense is as follows:
Finance income is described in detail in the following table:
Finance expense is described in detail in the following table:
160
Non-recurring operating income and expenses DEC 31, 2009 DEC 31, 2008
(euro/000)
Non-recurring income 612 538
Non-recurring expenses (68) (182)
Total 544 356
Financial income and expenses DEC 31, 2009 DEC 31, 2008
(euro/000)
Financial income 1.000 2.424
Financial expenses (3.204) (5.269)
Total financial income and expenses (2.204) (2.845)
Financial income DEC 31, 2009 DEC 31, 2008
(euro/000)
Interes income 155 318
Other income 6 122
Gains on exchage rate differences 840 1.983
Total financial income 1.000 2.424
Financial expenses DEC 31, 2009 DEC 31, 2008
(euro/000)
Interest expenses (1.775) (2.994)
Other expenses (51) (518)
Cash discounts (51) (55)
Losses on exchage rate differences (1.327) (1.702)
Total financial expenses (3.204) (5.269)

The item financial income and expense presents a total balance, negative for 2,204 thousand euros, as compared with a
negative value of 2,845 as of 31st December 2008. The considerable improvement has been obtained thanks to a decrease
of interest expense (of 1,219 thousand euros) on loans, mainly due to the decrease in interest rates of reference
and the reduced average borrowings.
Please refer to the comments on the item General and administrative costs for the reclassification of some costs that had
previously been booked amongst the financial expenses. This reclassification has led to a decrease in the item for 184
thousand euros for 2008.
30. INCOME TAX
For current taxes, the tax burden was determined according to the taxable income arising from the year’s result, taking
into account use of any prior tax losses and applying the statutory tax rates in force in each country.
Below is the report on reconciliation of the tax burden:
IRES - Define
(euro/000)
Profit (loss) before taxes 2.492.504
Theoretical Fiscal Charge 27,50% 685.439
Temporary differences to be taxed in following years 0
Differences to be deducted in following years 5.999.747
Previous years temporary differences cancellation (3.615.643)
Permanent differences not to be cancelled in following years 1.417.410
Loss of the prior year
Total differences 3.801.514
Taxable income 6.294.018
Income taxes 27% 1.684.984
Effective tax rate 68%
IRAP- Define
(euro/000)
Differences between value and cost of production 26.069.920
(except not considerable items)
Reclassification 0
Deduction for subordinate employment (7.722.393)
Theoretical taxable 18.347.527
Theoretical Fiscal Charge 3,90% 715.554
Temporary differences to be taxed in following years 0
Differences to be deducted in following years 363.059
Previous years temporary differences cancellation (424.988)
Permanent differences not to be cancelled in following years (5.640.571)
Total differences (5.702.501)
Taxable income 20.367.420
Current taxes 3,90% 794.329
Incidence of real taxable 4,33%
Marcolin S.p.A.
161

Consolidated Annual Report and Accounts as at 31 December 2009
The breakdown of deferred taxes and income tax for the year was as follows:
162
Deferred tax assets/liabilities 2008 2009
(euro/000)
Deferred tax
Depreciation and amortization Non current assets 0 0
Not realized active exchange differences Current assets 163 47
Fair value land and buildings Non current assets 291 314
Agents' severance indemnity Non current liabilities 0 0
Buildings Current liabilities 1.229 1.157
Buildings leasing 0 0
Revaluation treasury stock Non current assets 47 47
Instalment contributions and donations (year 2002) Current assets 9 9
Total 1.740 1.574
Deferred tax assets
Cash contributions and fees Current assets 141 150
Entertainment expenses Current assets 74 40
Write-down receivable Current assets 424 459
Not realized passive exchange differences Current liabilities 163 36
Deductible allowance ex art 108 Non current assets 48 24
Agents' severance indemnity Current assets 155 185
Other devaluation and provisions Allocation 613 552
Stock option Current assets 26 51
Inventories IRES Current assets 1.599 2.879
CFC Current assets 131 131
Write-down goodwill IAS compliant Current assets 0 0
Total 3.375 4.506
Net value (1.635) (2.933)

31. FINANCIAL INSTRUMENTS BY TYPE
The financial instruments are shown by uniform classes in the table below which shows the fair value in accordance with IFRS 7.
For the assessment of the fair value of loans incurred, future cash flow was estimated on the basis of forward interest rate
implicit in the interest rate curve at year end and, as regards calculation of the coupon in progress, of the most recent fixing
available of the Euribor.
The values calculated using this method were discounted based on the discount factors related to the various expiration
dates of the cash flow mentioned above.
The derivatives used are classified as OTC (over the counter) derivatives and therefore, there is no officially recognised public
price formed on the trading markets. To value these derivatives, the company used, respectively, discounted cash flow and Black
& Scholes methods for interest rate swap and for the Cap and Floor, fed with input data published by Bloomberg.
Classes of financial assets Trade Derivatives
(euro/000) receivables
2008
Loans and receivables 54.889 0
Assets at fair value through the profit and loss 0 51
Investments hold to maturity 0 0
Available for sale 0 0
Total value 54.889
Fair value n/a 51
2009
Loans and receivables 49.164 0
Assets at fair value through the profit and loss 0 0
Investments hold to maturity 0 0
Available for sale 0 0
Total value 49.164
Fair value n/a
Marcolin S.p.A.
Classes of financial liabilities Trade Derivatives Loans
(euro/000) payable
2008
Liabilities at fair value through the profit and loss 0 116 0
Derivatives used for hedging 0 351 0
Other financial liabilities 34.559 0 45.405
Available for sale 0 0 0
Total value 34.559 467 45.405
Fair value n/a 467 n/a
2009
Liabilities at fair value through the profit and loss 0 80 0
Derivatives used for hedging 0 334 0
Other financial liabilities 31.215 0 47.772
Available for sale 0 0 0
Total value 31.215 414 47.772
Fair value n/a 414 n/a
163

Consolidated Annual Report and Accounts as at 31 December 2009
COSTS AND REVENUES TOWARDS ASSOCIATED COMPANIES
Costs and revenue to subsidiary and related companies are shown below.
RELATIONS WITH ASSOCIATED AND AFFILIATED COMPANIES
INFORMATION ON ABNORMAL AND UNUSUAL TRANSACTIONS AND TRANSACTIONS WITH RELATED PARTIES
With regard to the suggestions of the CONSOB in its Circulars nos. DAC/98015375 of 27 February 1998 and DEM/6064293
of 28 July 2006, the necessary information on atypical and unusual transactions and transactions with related parties is
provided below.
Atypical and unusual transactions
No abnormal and/or unusual transactions were reported, between Group companies, during the course of 2009, nor were
there any extraordinary business activities, or activities that might have a significant effect on the economic, capital or financial
situation of Marcolin S.p.A.
Transactions with related parties
Relations with Group companies are mainly commercial and established under market conditions.
During 2009, Marcolin S.p.A. had supply relations with the company Tod’s S.p.A., through the shareholders Diego Della
Valle (Director of Marcolin S.p.A.) and Andrea Della Valle, for a total amount of € 616 thousand (€ 142 thousand in 2008).
164
Company Revenues from sales Other Financial income Cost of raw materials, Service DEC 31,
(euro/000) and services income from financial auxiliary materials, expenses 2009
receivables spare parts and goods
Company:
Marcolin Asia Ltd. 70 7 0 42 0 36
Marcolin & Co. S.p.A. 0 0 0 0 922 (922)
Marcolin (Deutschland) GmbH 2.427 118 0 0 92 2.453
Marcolin GmbH 900 69 50 0 0 1.018
Marcolin Iberica S.A. 4.909 134 0 0 33 5.010
Marcolin Benelux S.p.r.l. 1.952 116 0 4 81 1.984
Marcolin Portugal Lda 1.953 144 0 18 6 2.073
Marcolin (UK) Ltd 3.082 166 0 1 106 3.141
Marcolin Usa Inc. 9.585 288 0 191 0 9.681
Marcolin International BV 0 0 105 0 0 105
Marcolin France SAS 8.513 2.258 0 5 176 10.590
Marcolin do Brasil Ltda 1.783 149 0 0 0 1.931
Total 35.173 3.448 155 260 1.415 37.100
(euro/000) Expenses Revenues Receivables Payables Relation
Finitec S.r.l. 1.355 2 934 3 Associated
Marcolin Japan 223 379 112 431 Associated
Tod's S.p.A. 1.216 616 1.163 36 Correlated

It also booked costs for royalties in relation to license agreements for the brands Tod’s and Hogan, for 1,216 thousand
euros.
In view of the foregoing, it is believed that the aforesaid transactions did not have a significant effect on the economic results
and on the capital and financial situation of the Company.
Non-recurrent significant events and operations
Marcolin S.p.A.
No significant non-recurrent events or operations occurred that had effects upon the Company’s equity, economic, and
financial situation over the course of 2009.
OTHER INFORMATION
In compliance with Attachment 3C, Template 1 of CONSOB Regulation no. 11971 of 14 May, 1999, below we list remuneration
for directors, statutory auditors, general managers and managers with strategic responsibilities, posted on the basis
of temporal applicability.
165

166
Name Details of office held Office from To Emoluments Other Benefits
Coffen Giovanni Marcolin Chairman of Board of Directors
of Marcolin S.p.A. APR 29, 2008 Approval 2010 Fin. Stats. 150
Saracchi Massimo Managing Director of Marcolin S.p.A. APR 29, 2008 Approval 2010 Fin. Stats. 550
General Director of Marcolin S.p.A. DEC 10, 2007 205
Abete Antonio Director of Marcolin S.p.A. APR 28, 2009 Approval 2010 Fin. Stats. 13
Abete Luigi Director of Marcolin S.p.A. APR 29, 2008 Approval 2010 Fin. Stats. 20
Alemagna Emanuele Director of Marcolin S.p.A. APR 29, 2008 Approval 2010 Fin. Stats. 35
Boscarato Maurizio Director of Marcolin S.p.A. APR 29, 2008 Approval 2010 Fin. Stats. 25
Coffen Marcolin Cirillo Director of Marcolin S.p.A. APR 29, 2008 Approval 2010 Fin. Stats. 250
Coffen Marcolin Maurizio Director of Marcolin S.p.A. APR 29, 2008 Approval 2010 Fin. Stats. 402 13
Della Valle Diego Director of Marcolin S.p.A. APR 29, 2008 Approval 2010 Fin. Stats. 20
Macellari Emilio Director of Marcolin S.p.A. APR 29, 2008 Approval 2010 Fin. Stats. 25
Montagna Carlo Director of Marcolin S.p.A. APR 29, 2008 Approval 2010 Fin. Stats. 20
Salvatori Stefano Director of Marcolin S.p.A. APR 29, 2008 Approval 2010 Fin. Stats. 35
Varvaro Vito Director of Marcolin S.p.A. APR 29, 2008 Approval 2010 Fin. Stats. 20
Managers with strategic responsability 1.625
* Emoluments gross of social charges
Name Details of office held Office from To Emoluments Other Benefits
Cognigni Mario Auditor Marcolin S.p.A. APR 29, 2008 Approval 2010 Fin. Stats. 25
Rivetti Diego Chairman of the Board APR 29, 2008 Approval 2010 Fin. Stats. 37
of Statutory Auditors
Porfido Rossella Auditor Marcolin S.p.A. APR 29, 2008 Approval 2010 Fin. Stats. 24

Pursuant to the requirements in article 43 paragraph 1 no. 13 of the EEC IV Directive 78/660, we note that at 31 December,
2009 no financing provided to members of administrative, management, or control bodies were in existence, nor were there
any commitments made with guaranty effects with any members of administrative, management, or control bodies, to Directors,
or to statutory auditors.
STOCK OPTION PLANS
In compliance with Attachment 3C, Template 2 of CONSOB Regulation no. 11971 of 14 May, 1999, below we list stock
options allocated to the Managing Director and General Manager:
(a) (b)
Massimo Saracchi
General Director
AD
Options outstanding
at the
beginning of the year
(1) (2) (3)
Numbers Average Average
of exercise maturity
options price
Options allotted
during the year
(4) (5) (6)
Numbers Average Average
of exercise maturity
options price
INFORMATION RELATED TO DIRECT AND INDIRECT PARTICIPATION
Options exercised
during the year
(7) (8) (9)
Numbers Average Average
of exercise market
options price price
Options
overdue
in the year
(10)
Numbers
of options
Marcolin S.p.A.
Options outstanding
at the end
of the year
(11)=1+4+7-10 (12) (13)
Numbers Average Average
of exercise expirated
options price
500.000 1,53 2014 500.000 1,53 2014
Company Headquarters Currency Share Net Result of % ownership
(euro) capital Equity the period Direct Indirect
Marcolin Asia Ltd. Hong Kong HKD 1.539.785 4.474.903 551.413 - 100,00%
Marcolin Benelux Sprl Faimes EUR 280.000 (30.329) (165.643) 99,98% -
Marcolin do Brasil Ltda Jundiai BRL 9.575.240 13.251.291 3.798.139 99,90% 0,10%
Marcolin (Deutschland) GmbH Ludwigsburg EUR 300.000 (530.222) (550.779) 100,00% -
Marcolin GmbH Fullinsdorf (CH) CHF 200.000 88.316 (383.914) 100,00% -
Marcolin Iberica SA Barcellona EUR 487.481 3.887.196 50.080 100,00% -
Marcolin International BV Amsterdam EUR 18.151 (967.432) (121.202) 100,00% -
Marcolin Portugal Lda S. Joao do Estoril EUR 420.000 1.107.143 46.955 99,82% -
Marcolin (UK) Ltd Newbury GBP 850.000 1.734.343 224.375 99,88% -
Marcolin Usa Inc New York USD 536.500 29.090.693 7.754.290 85,40% 14,60%
Marcolin France Sas Parigi EUR 1.054.452 1.751.197 0 76,89% 23,11%
Marcolin Japan Co Ltd Tokyo JPY 99.000.000 31.666.353 (9.924.681) 40,00% -
Finitec Srl Longarone EUR 54.080 1.395.312 (283.924) 40,00% -
167

ANNEX 3C-ter
Declaration of the consolidated financial statements in accordance with Article 81-ter
of Consob Regulation no. 11971 of 14 May 1999 as amended.
The undersigned: Massimo Saracchi Managing Director and Dr. Sandro Bartoletti, the Financial Reporting Officer of Marcolin
S.p.A. declare, in consideration of the matters set forth by Article 154-bis, sections 3 and 4, of Leg. Decree 58 of 24
February:
• the adequacy in relation to the characteristics of the company and
• the actual application of
the administrative and accounting policies for forming the separate and consolidated financial statements for the period
from 1 January to 31 December, 2009.
In addition, note that the statutory and consolidated financial statements:
a) correspond to the results of the accounting ledgers and accounting entries;
b) have been drawn up in compliance with the International Financial Reporting Standards adopted by the European
Community, as well as the measures issued in implementation of Art. 9 of Leg. Decree 38/2005, and to the best of their
knowledge, provide a clear and true representation of the capital and financial situation and the economic results of the
issuer and the group of companies included in its consolidation.
Longarone, 25 March, 2010
Massimo Saracchi Sandro Bartoletti
Managing Director Corporate Financial
Reporting Manager
169

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04/2010
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