Long-term borrowings include the non-current portion of long- term bank loans, long-term financial lease liabilities arising from the application of IFRS 16 and financial liabilities payable to non- bank third parties. Financial lease liabilities amounted to EUR 710 million (EUR 640 million in 2020) and are detailed in the following table:

FINANCIAL LEASE LIABILITIES

(Euro/000) 31 December 2021 31 December 2020 Short-term financial lease liabilities 125,597 102,791 Long-term financial lease liabilities 584,679 537,506 Total 710,276 640,297

The changes in financial lease liabilities during 2021 are reported in the following table:

(Euro/000) IFRS 16 Ex IAS 17 Financial lease liabilities 1 January 2021 640,251 46 640,297 Acquisitions 115,445 72 115,517 Disposals (146,148) (153) (146,301) Financial expenses 19,469 6 19,475 Changes in consolidation area 66,272 236 66,508 Translation adjustement 14,780 0 14,780 31 December 2021 710,069 207 710,276

The following table shows the breakdown of the long-term bor- rowings in accordance with their maturity date:

AGEING OF THE LONG-TERM BORROWINGS

(Euro/000) 31 December 2021 31 December 2020 Within 2 years 139,137 101,932 From 2 to 5 years 289,848 262,618 Beyond 5 years 195,747 198,294 Total 624,732 562,844

The following table shows the breakdown of the long-term bor- rowings, excluded financial lease liabilities, in accordance with their maturity date:

AGEING OF LONG-TERM BORROWINGS EXCLUDED LEASE LIABILITIES

(Euro/000) 31 December 2021 31 December 2020 Within 2 years 18,026 7,551 From 2 to 5 years 22,027 17,787 Beyond 5 years 0 0 Total 40,053 25,338

The non-discounted cash flows referring to the lease liabilities are shown below.

AGEING OF THE LEASE LIABILITIES NOT DISCOUNTED

(Euro/000) 31 December 2021 31 December 2020 Within 1 year 149,378 125,094 From 1 to 5 years 432,758 352,442 Beyond 5 years 210,691 231,189 Total 792,827 708,725

Long-term bank loans include outstanding amounts to be repaid to banks relating to unsecured loans taken out by the acquired Stone Island companies.

Finally, the caption other short-term loans includes also the negative fair value, equal to EUR 19.0 million (compared to EUR 0.8 million negative as at 31 December 2020), related to the con- tracts to hedge the exchange rate risk. Please refer to note 9.3 for more details.

The net financial position is detailed in the following table:

NET FINANCIAL POSITION

(Euro/000) 31 December 2021 31 December 2020 A. Cash 932,718 923,498 B. Cash equivalents 0 0 C. Other current financial assets 722 4,793 D. Liquidity (A)+(B)+(C) 933,440 928,291 E . Current financial DEBT (151,793) (47,632) F. Current portion of non-current financial debt (137,398) (102,791) G. Current financial indebtedness (E)+(F) (289,191) (150,423) H. Net current financial indebtedness (G)+(D) 644,249 777,868 I. Non current financial debt (594,392) (537,506) J. Debt instruments 0 0 K. Non-current trade and other payables (30,340) (25,338) L. Non-current financial indebtedness (I)+(J)+(K) (624,732) (562,844) M. Total financial indebtedness (H)+(L) 19,517 215,024

Net financial position as defined by the new ESMA Guidelines of 4 March 2021 (Consob Warning notice no. 5/21 to the Consob Communication DEM/6064293 of 28 July 2006).

5.16 SHAREHOLDERS EQUITY

Changes in shareholders equity for 2021 and the comparative period are included in the consolidated state- ments of changes in equity.

As at 31 December 2021 the subscribed share capital constitut- ed by 273,682,790 shares was fully paid and amounted to EUR 54,736,558 with a nominal value of EUR 0.20 per share.

As at 31 December 2021 4,106,680 treasury shares were held, equal to 1.5% of the share capital, for a total value of EUR 146.5 million.

The legal reserve and premium reserve pertain to the parent company Moncler S.p.A.

In 2021 the Parent Company distributed dividends to the Group Shareholders for an amount of EUR 121.3 million. In 2020 the Parent Company did not distribute dividends.

The changes in share capital and share premium reserve derive from the reserved share capital increase relating to the transaction with the shareholders of Sportswear Company S.p.A. (n. 15.330.166 ordinary shares at a value of EUR 37.51 per share).

The change in the IFRS 2 reserve is due to the accounting treatment of the performance share plans, i.e., to the recognition of the figurative cost for the period relating to these plans and the reclassification to retained earnings of the cumulative figurative cost of the plans already closed.

The change in retained earnings mainly relates to the allo- cation of 2020 result, the dividend distributions, the above-men- tioned reclassification of the IFRS 2 reserve and the adjustment to the market value of the financial liabilities to non-banking third parties.

The caption FTA reserve includes the effects of the initial application of the IFRS 16.

CONSOLIDATED FINANCIAL STATEMENTS140 141CONSOLIDATED FINANCIAL STATEMENTS MONCLER GROUP

2021