5.6 TRADE RECEIVABLES

As at 31 December 2021 Trade receivables amounted to EUR 234.3 million (EUR 174.1 million as at 31 December 2020) and they are as follows:

TRADE RECEIVABLES

(Euro/000) 31 December 2021 31 December 2020 Trade account receivables 248,237 185,043 Allowance for doubtful debt (13,871) (10,699) Allowance for discounts (92) (200) Total, net value 234,274 174,144

The increase in respect to 2020 is mainly due to Stone Island ac- quisition.

Trade receivables are related to the Group s wholesale busi- ness and they include balances with a collection time not greater than three months. During 2021 and 2020, there were no concen- tration of credit risk greater than 10% associated to individual customers. Please refer to note 9.1 for information regarding the exposure of trade receivables to currency risks. The change in the allowance for doubtful debt and sales return is detailed in the following tables:

DOUBTFUL DEBT AND DISCOUNTS ALLOWANCE

(Euro/000) 1 January 2021 Changes in Accrued Used Translation 31 December 2021 consolidation area Difference Allowance for doubtful debt (10,699) (2,016) (1,721) 635 (70) (13,871) Allowance for discounts (200) 0 0 114 (6) (92) Total (10,899) (2,016) (1,721) 749 (76) (13,963)

DOUBTFUL DEBT AND DISCOUNTS ALLOWANCE

(Euro/000) 1 January 2020 Changes in Accrued Used Translation 31 December 2020 consolidation area Difference Allowance for doubtful debt (9,462) 0 (1,364) 69 58 (10,699) Allowance for discounts (137) 0 (72) 0 9 (200) Total (9,599) 0 (1,436) 69 67 (10,899)

The allowance for doubtful debt was calculated in accordance with management s best estimate based on the ageing of accounts re- ceivable as well as the solvency of the most aged accounts and also taking into consideration any balances turned over into col- lection proceedings. Trade receivables written down are related to specific balances that were past due and for which collection is uncertain. In addition, the bad debt provision includes an esti- mate of the expected loss relating to trade receivables in bonis , increased in 2021 to take into account the changed economic context. The fund also covers any risk of revocation on trade re- ceivables mainly related to North American customers.

5.7 CASH AND CASH EQUIVALENT

As at 31 December 2021 the caption cash and cash equivalent amounted to EUR 932,7 million (EUR 923.5 mil- lion as at 31 December 2020) and included cash and cash equivalents as well as the funds available at banks.

The amount included in the Consolidated Financial Statements represents the fair value at the date of the financial statements. The credit risk is very limited since the other parties are class A fi- nancial institutions.

The consolidated statement of cash flows includes the changes in cash and cash in bank as well as the bank overdrafts.

The following table shows the reconciliation between cash and cash in bank with those included in the consolidated statement of cash flows:

CASH AND CASH EQUIVALENTS INCLUDED IN THE STATEMENT OF CASH FLOWS

(Euro/000) 31 December 2021 31 December 2020 Cash on hand and at banks 932,718 923,498 Bank overdraft and short-term bank loans (130,003) (15) Total 802,715 923,483

5.8 FINANCIAL CURRENT ASSETS

The caption financial current assets refers to the receivables aris- ing from the market valuation of the derivatives on exchange rates hedges.

5.9 OTHER CURRENT AND NON-CURRENT ASSETS

(Euro/000) 31 December 2021 31 December 2020 Prepayments and accrued income - current 12,117 10,310 Other current receivables 15,641 10,776 Other current assets 27,758 21,086 Prepayments and accrued income - non-current 70 110 Security / guarantees deposits 35,989 33,036 Investments in associated companies 36 36 Other non-current receivables 987 341 Other non-current assets 37,082 33,523 Total 64,840 54,609

Other current receivables mainly comprise the receivable due from the tax authority for value added tax.

Deposits are mostly related to the amounts paid on behalf of the lessee as a guarantee to the lease agreement.

The caption investments in associated companies includes the 22.5% interest in the company 3B Restaurant S.r.l. (same % in 2020), which deals with catering.

There are no differences between the amounts included in the Consolidated Financial Statements and their fair values.

5.10 TRADE PAYABLES

As at 31 December 2021 Trade payables amounted to EUR 349.0 million (EUR 211.9 million as at 31 Decem- ber 2020) and included current payables due to suppliers for goods and services. These payables pertained to amounts that are payable within the upcoming year and did not include amounts that will be paid after 12 mon- ths.

In 2021 and 2020 there were no outstanding positions associated to individual suppliers that exceed 10% of the total value.

There are no differences between the amounts included in the Consolidated Financial Statements and their respective fair values.

Please refer to note 9.1 for an analysis of trade payable de- nominated in foreign currencies.

5.11 OTHER CURRENT AND NON-CURRENT LIABILITIES

OTHER CURRENT AND NON-CURRENT LIABILITIES

(Euro/000) 31 December 2021 31 December 2020 Deferred income and accrued expenses - current 1,595 695 Advances and payments on account to customers 18,079 12,641 Employee and social institutions 53,018 31,603 Tax accounts payable, excluding income taxes 33,711 17,329 Other current payables 18,876 21,742 Other current liabilities 125,279 84,010 Deferred income and accrued expenses - non-current 163 142 Other non-current liabilities 163 142 Total 125,442 84,152

CONSOLIDATED FINANCIAL STATEMENTS136 137CONSOLIDATED FINANCIAL STATEMENTS MONCLER GROUP

2021