Style and operations

Collection structure

This refers to the composition of a collection in terms of its segments, which may differ in products, size, goals and timing. Given the different characteristics and positioning of the Benetton brands, the collection structure may vary from brand to brand and from collection to collection, in order to ensure the required flexibility for an optimal response to market requirements.

Color Project

This is an advanced system, one of the first in the world, able to guarantee scientifically that a certain shade is faithfully reproduced on different types of fabric.

Commercial network

Benetton Group commercial network includes stores mainly managed by independent partners for the distribution of Benetton products in 120 countries. The relationship with the partners consists in the sale of goods and the authorization to use the brand name, free of charge, as signage in the stores.


Display area fitted out using a specific concept, developed to bring out a collection's key features.

Evergreen collection

This is a collection consisting of a very select range of articles that clearly communicate the brand’s personality, while defining its values and market positioning. Articles therefore remain in the collection for at least 18 months. Replenishable on-line.

Lead time

Time period from the collection of the orders to the products shipment.

Manufacturing delocalization

Benetton Group works throughout the world in the search for specific competencies and international industrial districts in which to take its know-how, so as to guarantee the quality of products and the satisfaction of customers. As such, manufacturing has evolved into a “network of skills”, which depends on the best industrial capabilities available in the international marketplace.

Mature markets

These are the areas in Continental Europe where the Benetton Group boasts a historic presence and where new consumer segments can be reached thanks to growing diversification of the products offered by our brands.


Reassortments include replenishments of products included in the collection, mainly in terms of colors and sizes.

Sisley Young

A brand dedicated to children aged 8 to 12 with a heavy emphasis on fashion.

Store Concept

The evolution in retail space design is reflected in the new, innovative concepts proposed for each of the brands: United Colors of Benetton, Sisley and Playlife.

Time to market

Time period from the idea and design of the products to the arrival on the market (delivery to stores).

Administration and finance

Business combination

The bringing together of separate entities or businesses into one for the purposes of financial reporting.

Capital employed

It is used to indicate the total resources employed and includes the following: working capital, property, plant and equipment and intangible assets, assets held for sale, equity investments and other assets and liabilities.


Acronym for Cash Generating Unit. This is the smallest identifiable group of company assets that generates cash inflows that are independent of the cash inflows from other assets.

Dividend yield

Ratio between the last dividend per share paid and the price per share. This ratio is used as immediate expression of the stock return. For Benetton Group dividend yield, see Key performance indicators, where the ratio is calculated as dividend paid (referred to the previous year) and price at period end.


Acronym for Earnings Before Interest, Taxes, Depreciation and Amortization, EBITDA is a measurement of operating profit before non-monetary items and is equal to operating income (EBIT) plus depreciation, amortization, and other non-monetary costs.


Acronym for Earnings Per Share. The EPS indicates the ratio between net income/(loss) for the year and number of shares outstanding.


Acronym for Enterprise Value, value of the company: EV represents the sum between market capitalization and net debt.


Acronym for Economic Value Added. This performance indicator is calculated as a difference between NOPAT and average cost of capital employed, which is intended as capital employed multiplied by WACC (Weighted Average Cost of Capital). EVA therefore represents a measure of residual operating profitability, i.e. net of the return on capital employed.

Fair value

Fair value is the amount for which an asset could be exchanged, or a liability extinguished, in an arm's-length transaction between knowledgeable, willing parties.

Free cash flow

This item on the statement of cash flows represents the sum of cash flows generated by operating and investing activities.

Gross operating profit

This item on the statement of income by function of cost is equal to revenues less materials and subcontracted work, payroll and related costs, industrial depreciation and amortization, and other manufacturing costs.


Acronyms for International Accounting Standards and International Financial Reporting Standards, respectively, adopted by Benetton Group.

Impairment testing

The activity by which the Group determines whether there is, as of the closing date of each financial reporting period, objective evidence that an asset has undergone a long-term loss in value, including a measurement of the asset’s recoverable value.

Net debt

This balance sheet item summarizes the Group's financial position and includes:
- financial liabilities: bank loans and overdrafts, bonds, short-term financial payables, medium/long-term loans (short and long-term portions), lease financing (short and long-term portions);
- financial assets: cash and banks, securities, financial receivables (short and medium/long-term).
This item complies with recommendations by CESR (Committee of European Securities Regulators) and CONSOB (Italy's securities regulator).

Net investment/(divestment)

Investments in and divestments of property, plant and equipment, intangible assets, equity investments, and other net non-operating investments.


Acronym for Net Operating Profit After Taxes.
This is calculated as operating profit less the tax that pertains to it.

Operating investments

Investments in property, plant, and equipment and intangible assets excluding those allocated to property, plant, and equipment or intangible assets as a result of business combinations.

Pay out ratio

Ratio between dividends and net income/(loss) for the year which represents the percentage of net income distributed to the shareholders as dividend.


This statement of income item includes: sales of core products, miscellaneous sales, royalty income, and other revenues, less discounts.


Acronym for Return On Equity, which represents the ratio between net income/(loss) for the year and average shareholders’ equity. The ROE measures the return on shareholders’ equity after remunerating the other sources of capital and indicates the return for the shareholders.


Acronym for Return On Invested Capital, which represents the ratio between operating profit and average capital employed. The ROIC measures the return on the capital employed to service both shareholders and creditors.


Acronym for Weighted Average Cost of Capital, WACC represents the average cost of the different sources of capital of the company, both as debt and equity. WACC is commonly used as discount rate for the operating cash flow of a company and to calculate EVA.

Working capital

It is used to indicate the capital used in the company’s ordinary operations and includes trade receivables, inventories, and the net of other receivables and payables, less trade payables.



Acronym for American Depositary Receipt. The ADR is a negotiable certificate that represents ownership of shares in a non-US company. In 1989 Benetton Group was listed on the New York Stock Exchange, NYSE, through a Level III Program. Each Benetton ADR represents two Benetton ordinary shares. On September 12, 2007 the Parent Company's Board of Directors decided to request the voluntary delisting and deregistration of the ADS quoted on the NYSE. The delisting/deregistering of the Benetton stock from the New York Stock Exchange came into effect on January 21, 2008, as a result of which the company's ADRs have been kept under a Level I program.

ADR – Level I Program

The Benetton Group's ADRs continue to be traded on the Over-the-Counter (OTC) market.


Acronym for Committee on Uniform Securities and Identification Procedures, standards body which creates and maintains a classification system for securities. The Cuspid is a nine-character number that uniquely identifies a particular security in the US. Benetton Group ADR CUSPID is 081795403.

Free float

Percentage of shares in a listed company that are freely available to the investing public, meaning they are not held by a strategic reference shareholder. In the case of Benetton Group, Edizione S.r.l., a company entirely under the control of the Benetton family, is regarded as the reference shareholder.


Acronym for International Securities Identification Number, a unique international code which identifies a securities issue. Each country has a national numbering agency which assigns ISIN numbers for securities in that country. Benetton ordinary shares ISIN is IT0003106777.

Issuer or the Company or the Parent Company

Benetton Group S.p.A.


Acronym for Stock Exchange Daily Official List number, a code used by the London Stock Exchange to identify foreign stocks (London Stock Exchange). Benetton Group ordinary shares Sedol is 7128563, while for Benetton Group ADR it is 2091671.

Corporate Governance

Board of Directors

Main governing body for the administration of a company. The functionality of the Board of Directors is disciplined by the Statutory Report of the company itself.
The Board of Directors of Benetton Group S.p.A. is invested with the widest possible powers for the ordinary and extraordinary administration of the Company. The Board of Directors can delegate its powers to one or more of the Directors who will exercise them, jointly or severally, in conformity with decisions taken by the Board of Directors. The Board of Directors may also entrust part of its authority to an Executive Committee made up of certain Board members.

Board of Statutory Auditors

Internal body of a company, which is responsible for the control of the company management activities. The Statutory Auditors monitor the compliance of the other governing bodies, in particular the Board of Directors, with the law and the statutory report. Benetton Board of Statutory Auditors consists of three standing members and two alternate members, who can be re-appointed. The members remain in office for three financial years to the date of the Shareholders’ Meeting for the approval of the latest financial year results.


The Corporate Governance Code for listed companies approved in December 2011 by the Corporate Governance Committee and promoted by Borsa Italiana S.p.A. (the Italian Stock Exchange).

Code of Ethics

Official document adopted by the Company and its direct and indirect subsidiaries, which contains a set of principles guiding the conduct of the Group's business and that of the parties who operate on its behalf.

CONSOB Issuer Regulations

The Regulations for issuers, published by CONSOB (Italy's Stock Exchange Commission) in its resolution 11971/1999 and subsequent amendments thereto.

CONSOB Market Regulations

The Regulations for markets, issued by CONSOB in its resolution 16191/2007 and subsequent amendments thereto.

Corporate Governance

Set of rules and relations referring to the company administration, ownership structure and management efficiency to reach the company targets.

Instructions accompanying the Stockmarket Regulations

The Instructions accompanying the Regulations of Markets organized and managed by Borsa Italiana S.p.A.


The Corporate Governance Report that listed companies are required to prepare under art. 123-bis of TUF and art. 89-bis of the CONSOB Issuer Regulations.

Stock option plan

Document which governs the award of stock options for the subscription of shares at a predetermined price (exercise price) at or by a certain date (Vesting period).
In September 2004, Benetton Board of Directors, in application of the powers authorized by the Extraordinary Shareholders’ Meeting, approved a capital increase to service a stock option plan for Benetton top management, subject to achievement of the objectives for creation of accumulated value envisaged in the 2004-2007 Guidelines. In September 2006, the first tranche of options under the Plan was allocated to management, while it was also agreed to cancel the second tranche.

Stockmarket Regulations

The Regulations of Markets organized and managed by Borsa Italiana S.p.A.


Italian Legislative Decree no. 58 of February 24, 1998 (Italy's Consolidated Law on Finance).



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