4.7 FINANCIAL INCOME AND EXPENSES

The caption is broken down as follows:

(Euro/000) 2021 2020 Interest income and other financial income 3,061 759 Total financial income 3,061 759 Interests expenses and other financial charges (3,750) (2,002) Foreign currency differences - negative (1,332) (1,038) Total financial expenses (5,082) (3,040) Total net excluded interests on lease liabilities (2,021) (2,281) Interests on lease liabilities (19,587) (21,021) Total net (21,608) (23,302)

4.8 INCOME TAX

The income tax effect on the consolidated income statement is as follows:

(Euro/000) 2021 2020 Current income taxes (178,961) (130,998) Deferred tax (income) expenses 14,902 85,845 Income taxes charged in the income statement (164,059) (45,153)

Deferred taxes in 2020 included the release deriving from the realignment of the Moncler trademark s tax value to the statuto- ry value.

For the breakdown of deferred tax assets and liabilities by nature, please see paragraph 5.4.

The reconciliation between the theoretical tax burden by applying the theoretical rate of the parent company, and the ef- fective tax burden is shown in the following table:

RECONCILIATION THEORETIC-EFFECTIVE TAX RATE

(Euro/000) Taxable Tax Amount Tax Taxable Tax Amount Tax rate Amount 2021 2021 rate 2021 Amount 2020 2020 2020 Profit before tax 557,612 345,519 Income tax using the Company s (133,827) 24.0% (82,925) 24.0% theoretic tax rate Temporary differences (18,810) 3.4% (20,872) 6.0% Permanent differences (2,193) 0.4% (8,467) 2.5% Other differences (24,131) 4.3% (18,734) 5.4% Deferred taxes recognized 14,902 (2.7)% 85,845 (24.8)% in the income statement Income tax at effective tax rate (164,059) 29.4% (45,153) 13.1%

Deferred taxes in 2020 mainly included the benefit deriving from the release of deferred tax liabilities resulting from the realign- ment of Moncler trademark s tax value to the statutory value.

4.9 PERSONNEL EXPENSES

The following table lists the details of the main personnel expens- es by nature, compared with those of the previous year:

(Euro/000) 2021 2020 Wages and salaries and Social security costs (216,920) (161,874) Accrual for employment benefits (15,956) (10,943) Total (232,876) (172,817)

During the period, personnel expenses increased by 34.8%, from EUR 172.8 million in 2020 to EUR 232.9 million in 2021. This in- crease incorporates the effects of the inclusion of Stone Island in 2021, while 2020 had benefited from government contributions to support employment for the Covid-19 emergency.

The remuneration related to the members of the Board of Directors is commented separately in the related-party section (note 10.1).

The costs related to the stock based compensation plans, equal to EUR 28.6 million in 2021 (EUR 31.0 million in 2020) are separately commented in note 10.2. The following table analyses the number of employees (full-time-equivalent) in 2021 compared to the prior year:

AVERAGE FTE BY AREA

FTE 2021 2020 Italy 1,395 1,027 Other European countries 1,720 1,655 Asia and Japan 1,167 1,102 Americas 353 307 Total 4,635 4,091

The actual number of employees of the Group as at 31 December 2021 was 5,290 unit (4,398 as at 31 December 2020).

4.10 DEPRECIATION AND AMORTISATION

Depreciation and amortisation are broken down as follows:

(Euro/000) 2021 2020 Depreciation of property, plant and equipment (208,276) (185,302) Amortization of intangible assets (38,243) (15,674) Total Depreciation and Amortization (246,519) (200,976)

The increase in both depreciation and amortisation was mainly due to investments made for the new store openings or the relo- cation/expansion of already existing stores, in IT, logistic and op- eration.

The amortisation related to the right of use amounted to EUR 137.5 million (EUR 120.8 million in 2020), as explained in paragraphs 5.3.

Please refer to comments made in notes 5.1 and 5.3 for ad- ditional details related to investments made during the year.

5. COMMENTS ON THE CONSOLIDATED STATEMENT OF FI- NANCIAL POSITION

5.1 GOODWILL, BRANDS AND OTHER INTANGIBLE ASSETS

BRANDS AND OTHER INTANGIBLE ASSETS

(Euro/000) 31 December 2021 31 December 2020 Gross Accumulated Net value Net value value amortization and impairment Brands 999,354 0 999,354 223,900 Key money 68,576 (53,557) 15,019 15,104 Software 105,728 (59,298) 46,430 37,004 Other intangible assets 31,455 (29,145) 2,310 2,147 Assets in progress 6,961 0 6,961 4,153 Goodwill 603,417 0 603,417 155,582 Total 1,815,491 (142,000) 1,673,491 437,890

CONSOLIDATED FINANCIAL STATEMENTS128 129CONSOLIDATED FINANCIAL STATEMENTS MONCLER GROUP

2021