The change in property, plant and equipment is included in the following tables:

As at 31 December 2021

GROSS VALUE PROPERTY, PLANT AND EQUIPMENT

(Euro/000) Land and Plant and Fixtures Leasehold Other fixed Assets in progress Total buildings Equipment and fittings improvements assets and advances 1 January 2021 790,863 33,273 127,187 263,157 31,079 23,617 1,269,176 Acquisitions 133,700 7,988 11,627 29,733 4,016 43,145 230,209 Disposals (8,689) (3,600) (3,564) (7,673) (1,021) (2,315) (26,862) Changes in consolidation area 86,248 9,728 7,148 15,365 1,124 2,179 121,792 Translation adjustement 23,084 (148) 4,412 9,161 596 345 37,450 Other movements, (264) 196 7,930 23,363 1,445 (37,561) (4,891) including transfers 31 December 2021 1,024,942 47,437 154,740 333,106 37,239 29,410 1,626,874

ACCUMULATED DEPRECIATION AND IMPAIRMENT PPE

(Euro/000) Land and Plant and Fixtures Leasehold Other fixed Assets in progress Total buildings Equipment and fittings improvements assets and advances 1 January 2021 (192,835) (12,268) (83,671) (155,703) (21,712) 0 (466,189) Depreciation (138,992) (5,726) (17,037) (41,624) (4,897) 0 (208,276) Disposals 5,109 214 3,233 6,730 659 0 15,945 Changes in consolidation area (13,348) (7,401) (5,212) (8,115) (768) 0 (34,844) Translation adjustement (10,319) (85) (3,782) (6,497) (415) 0 (21,098) Other movements, 910 0 159 (77) (82) 0 910 transfers 31 December 2021 (349,475) (25,266) (106,310) (205,286) (27,215) 0 (713,552)

As at 31 December 2020

GROSS VALUE PROPERTY, PLANT AND EQUIPMENT

(Euro/000) Land and Plant and Fixtures Leasehold Other fixed Assets in progress Total buildings Equipment and fittings improvements assets and advances 1 January 2020 699,688 22,960 119,019 246,730 26,525 19,740 1,134,662 Acquisitions 141,183 4,357 15,575 25,453 4,739 21,251 212,558 Disposals (12,758) (323) (3,328) (4,385) (200) (409) (21,403) Translation adjustement (23,574) (74) (5,016) (9,788) (403) (363) (39,218) Other movements, (13,676) 6,353 937 5,147 418 (16,602) (17,423) including transfers 31 December 2020 790,863 33,273 127,187 263,157 31,079 23,617 1,269,176

ACCUMULATED DEPRECIATION AND IMPAIRMENT PPE

(Euro/000) Land and Plant and Fixtures Leasehold Other fixed Assets in progress Total buildings Equipment and fittings improvements assets and advances 1 January 2020 (101,758) (8,531) (73,555) (126,798) (17,480) 0 (328,122) Depreciation (121,643) (3,931) (15,925) (39,230) (4,573) 0 (185,302) Disposals 6,698 167 2,179 4,297 92 0 13,433 Translation adjustement 7,889 27 3,556 6,102 249 0 17,823 Other movements, 15,979 0 74 (74) 0 0 15,979 including transfers 31 December 2020 (192,835) (12,268) (83,671) (155,703) (21,712) 0 (466,189)

The changes related to the right of use assets arising from the ap- plication of the IFRS 16 are reported here below:

RIGHT OF USE ASSETS

(Euro/000) Land and buildings Other fixed assets Total 1 January 2021 589,507 1,291 590,798 Acquisitions 128,990 1,295 130,285 Disposals (3,562) (278) (3,840) Depreciation (137,924) (956) (138,880) Changes in consolidation area 64,947 71 65,018 Translation adjustement 12,812 3 12,815 31 December 2021 654,770 1,426 656,196

Excluding Stone Island acquisition effect, the increases in 2021 refer to new lease agreements for the opening or relocation of re- tail stores and the renewal of existing lease agreements, mainly in the European and Chinese markets.

In addition to the above mentioned effect arising from the application of the IFRS 16, the changes in property plant and equipment in 2021 show an increase in the items fixture and fit- tings, leasehold improvements and assets in progress and ad- vances: all of these items are mainly related to the development of the distribution network, the relocation/expansion of already ex- isting stores and the investments in logistic and operation.

Please refer to the Directors report for an analysis of invest- ments made during the year.

The business performance recorded in the periods under analysis and the updated forecasts of future trends are consist- ent with the assumptions made when testing the recoverability of the value of the rights of use during the preparation of the Annu- al Consolidated Financial Statements as at 31 December 2020. Therefore, no potential indicators of impairment were identified and no specific impairment tests were performed on these items.

5.4 DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES

Deferred tax assets and deferred tax liabilities are offset only when there is a law within a given tax jurisdiction that provides for such right to offset. The balances were as follows as at 31 Decem- ber 2021 and 31 December 2020:

DEFERRED TAXATION

(Euro/000) 31 December 2021 31 December 2020 Deferred tax assets 179,312 150,832 Deferred tax liabilities (225,621) (6,396) Net amount (46,309) 144,436

The increase in the item Deferred tax liabilities is mainly due to the recognition of deferred tax liabilities on the Brand arising from the above-mentioned Purchase Price Allocation.

In view of the nature of the net deferred tax assets and the expectation of future taxable income under the new Business Plan, no indicators have been identified regarding the non-re- coverability of the deferred tax assets recognised in the financial statements.

CONSOLIDATED FINANCIAL STATEMENTS132 133CONSOLIDATED FINANCIAL STATEMENTS MONCLER GROUP

2021