The change in deferred tax assets and liabilities, without taking into consideration the right of offset of a given tax jurisdiction, is detailed in the following table:

DEFERRED TAX ASSETS (LIABILITIES) (Euro/000) Opening balance Changes in Taxes charged Taxes Effect of Other Closing balance 1 January 2021 consolidation area to the income accounted currency movements 31 December 2021 statement for in Equity translation Tangible and intangible assets 21,041 1,499 362 0 493 22 23,417 Inventories 97,143 6,831 8,946 0 4,029 27 116,976 Trade receivables 3,235 300 (934) 0 18 0 2,619 Derivatives 384 55 5 2,332 0 0 2,776 Employee benefits 2,029 14 (346) (12) 9 1 1,695 Provisions 15,589 348 1,034 0 (109) 1 16,863 Trade payables 4,857 0 1,321 0 23 (1) 6,200 Other temporary items 5,039 628 2,111 0 (122) 858 8,514 Tax loss carried forward 1,515 0 (1,274) 0 11 0 252 Tax assets 150,832 9,675 11,225 2,320 4,352 908 179,312 Tangible and intangible assets (3,596) (78) 3,478 0 (362) (221,989) (222,547) Financial assets (300) (76) (8) 0 0 0 (384) Inventories (1,065) 0 (37) 0 0 0 (1,102) Derivatives (879) 0 (150) 879 0 0 (150) Provisions 0 0 0 0 0 0 0 Trade payables 7 0 (51) 0 (2) 0 (46) Other temporary items (568) 12 445 663 (1) (1,943) (1,392) Tax loss carried forward 5 0 0 0 0 (5) 0 Tax liabilities (6,396) (142) 3,677 1,542 (365) (223,937) (225,621) Net deferred tax assets (liabilities) 144,436 9,533 14,902 3,862 3,987 (223,029) (46,309)

DEFERRED TAX ASSETS (LIABILITIES) (Euro/000) Opening balance Changes in Taxes charged Taxes Effect of Other Closing balance 1 January 2020 consolidation area to the income accounted currency movements 31 December 2020 statement for in Equity translation Tangible and intangible assets 18,768 0 3,603 0 (743) (587) 21,041 Inventories 84,787 0 15,758 0 (3,966) 564 97,143 Trade receivables 3,858 0 (538) 0 (85) 0 3,235 Derivatives 427 0 0 (43) 0 0 384 Employee benefits 3,105 0 (1,012) 25 (89) 0 2,029 Provisions 11,487 0 4,814 0 (712) 0 15,589 Trade payables 3,921 0 968 0 (32) 0 4,857 Other temporary items 2,740 0 2,084 0 193 22 5,039 Tax loss carried forward 41 0 1,471 0 3 0 1,515 Tax assets 129,134 0 27,148 (18) (5,431) (1) 150,832 Tangible and intangible assets (65,640) 0 61,810 0 233 1 (3,596) Financial assets 52 0 (352) 0 0 0 (300) Inventories (753) 0 (312) 0 0 0 (1,065) Derivatives (120) 0 0 (759) 0 0 (879) Trade payables 3 0 (3) 0 7 0 7 Other temporary items (2,252) 0 (2,451) (118) 4,253 0 (568) Tax loss carried forward 0 0 5 0 0 0 5 Tax liabilities (68,710) 0 58,697 (877) 4,493 1 (6,396) Net deferred tax assets (liabilities) 60,424 0 85,845 (895) (938) 0 144,436

The taxable amount on which deferred tax assets have been cal- culated is detailed in the following table:

DEFERRED TAX ASSETS AND LIABILITIES

(Euro/000) Taxable Closing balance Taxable Closing balance Amount 2021 31 December 2021 Amount 2020 31 December 2020 Tangible and intangible assets 86,248 23,417 79,586 21,041 Inventories 446,472 116,976 392,633 97,143 Trade receivables 10,608 2,619 12,787 3,235 Derivatives 11,569 2,776 1,596 384 Employee benefits 6,488 1,695 8,798 2,029 Provisions 57,346 16,863 63,928 15,589 Trade payables 28,815 6,200 17,483 4,857 Other temporary items 33,749 8,514 21,761 5,039 Tax loss carried forward 982 252 5,662 1,515 Tax assets 682,277 179,312 604,234 150,832 Tangible and intangible assets (806,583) (222,547) (15,654) (3,596) Financial assets (965) (384) (1,254) (300) Inventories (3,819) (1,102) (3,819) (1,065) Derivatives 625 (150) (3,659) (879) Trade payables (185) (46) 23 7 Other temporary items (2,197) (1,392) (1,740) (515) Tax loss carried forward 0 0 25 (48) Tax liabilities (813,124) (225,621) (26,078) (6,396) Net deferred tax assets (liabilities) (130,847) (46,309) 578,156 144,436

5.5 INVENTORY

As at 31 December 2021 Inventory amounted to EUR 263.5 mil- lion (EUR 202.8 million as at 31 December 2020) and is broken down as follows:

INVENTORY

(Euro/000) 31 December 2021 31 December 2020 Raw materials 98,688 88,252 Work-in-progress 52,335 14,197 Finished products 342,148 284,437 Inventories, gross 493,171 386,886 Obsolescence provision (229,650) (184,116) Total 263,521 202,770

Inventory (gross amount) increased by approximately EUR 106.3 million (+27.5%), mainly due to the effect of Stone Island acquisi- tion. Excluding this effect, inventory mainly included raw materi- als and finished products for the forthcoming seasons.

The obsolescence provision was calculated using manage- ment s best estimate based on the season needs and the inven- tory balance based on passed sales trends through alternative channels and future sales volumes. This assumption is expressed differently for the Regions in which the Group operates, taking in- to account the characteristics of each market. The change in the obsolescence provision is summarised in the following table:

OBSOLESCENCE PROVISION - MOVEMENTS

(Euro/000) 1 January 2021 Changes in Accrued Used Translation 31 December 2021 consolidation area Difference Obsolescence provision (184,116) (17,928) (40,834) 16,347 (3,119) (229,650) Total (184,116) (17,928) (40,834) 16,347 (3,119) (229,650)

OBSOLESCENCE PROVISION - MOVEMENTS

(Euro/000) 1 January 2020 Changes in Accrued Used Translation 31 December 2020 consolidation area Difference Obsolescence provision (139,237) 0 (61,291) 13,419 2,993 (184,116) Total (139,237) 0 (61,291) 13,419 2,993 (184,116)

CONSOLIDATED FINANCIAL STATEMENTS134 135CONSOLIDATED FINANCIAL STATEMENTS MONCLER GROUP

2021