The caption other reserves includes other comprehensive income comprising the exchange rate translation reserve of financial statements reported in foreign currencies, the reserve for hedg- ing interest rate risks and exchange rates risks and the reserve for actuarial gains/losses. The translation reserve includes the exchange differences emerging from the conversion of the finan- cial statements of the foreign consolidated companies. The hedg- ing reserve includes the effective portion of the net differences accumulated in the fair value of the derivative hedge instruments. Changes to these reserves were as follows:

OTHER COMPREHENSIVE INCOME

(Euro/000) Cumulative translation adj. reserve Other OCI items Value effect Tax effect Value after Value before Tax effect Value after before tax tax effect tax effect tax effect Reserve as at 1 January 2020 (2,876) 0 (2,876) (2,237) 528 (1,709) Changes in the period (15,307) 0 (15,307) 3,668 (895) 2,773 Translation differences of the period 0 0 0 0 0 0 Reversal in the income statement of the period 0 0 0 0 0 0 Reserve as at 31 December 2020 (18,183) 0 (18,183) 1,431 (367) 1,064

Reserve as at 1 January 2021 (18,183) 0 (18,183) 1,431 (367) 1,064 Changes in the period 19,052 0 19,052 (16,059) 3,862 (12,197) Translation differences of the period 0 0 0 0 0 0 Reversal in the income statement of the period 0 0 0 0 0 0 Reserve as at 31 December 2021 869 0 869 (14,628) 3,495 (11,133)

EARNING PER SHARE Earning per share for the years ended 31 December 2021 and 31 December 2020 is included in the following table and is based on the relationship between net income attributable to the Group and the average number of shares, net of treasury shares owned.

The diluted earnings per share is in line with the basic earn- ings per share as at 31 December 2021 as there were no signif- icant dilutive effects arising from stock based compensation plans.

It should be noted that, for the diluted earnings per share calculation, the treasury share method has been applied, pre- scribed by IAS 33 paragraph 45 for stock-based compensation plans.

Earnings per share 2021 2020 Net result of the period (Euro/000) 393,533 300,351 Average number of shares related to parent s Shareholders 265,570,691 252,674,625 Earnings attributable to Shareholders (Unit of Euro) 1.48 1.19 Diluited earnings attributable to Shareholders (Unit of Euro) 1.47 1.18

6. SEGMENT INFORMATION

For the purposes of IFRS 8 Operating segments , the activity car- ried out by the Group can be identified in the operating segments referring to the Moncler business and the Stone Island business. These operating segments were aggregated into a single report- able segment, consistent with the core principle of IFRS 8, as the segments have similar economic characteristics and share com- mon features, i.e.: the nature of the products; the nature of the production processes; the type of customers; the distribution channels.

7. COMMITMENTS AND GUARANTEES GIVEN

7.1 COMMITMENTS

The Group does not have significant commitments arising from operating lease contract or other contractual cases that do not fall within the scope of IFRS 16.

7.2 GUARANTEES GIVEN

As at 31 December 2021 the Group had given the following guar- antees:

GUARANTEES AND BAILS GIVEN

(Euro/000) 31 December 2021 31 December 2020 Guarantees and bails given for the benefit of: 36,403 27,230 Third parties/companies Total guarantees and bails given 36,403 27,230

Guarantees pertain mainly to lease agreements for the new stores.

8. CONTINGENT LIABILITIES

As the Group operates globally, it is subject to legal and tax risks which may arise during the performance of its ordinary activities. Based on information available to date, the Group believes that at the date of preparation of this document there are no further po- tential liabilities in addition to those already recorded in the provi- sions accrued in the Consolidated Financial Statements.

9. INFORMATION ABOUT FINANCIAL RISKS

The Group s fi nancial instruments include cash and cash equivalents, loans, receivables and trade payables and other current receivables and payables and non-current assets as well as derivatives.

The Group is exposed to financial risks related to its operations: market risk (mainly related to exchange rates and interest rates), credit risk (associated with both regular client relations and fi- nancing activities), liquidity risk (with particular reference to the availability of financial resources and access to the credit market and financial instruments) and capital risk.

Financial risk management is carried out by Headquarters, which ensures primarily that there are sufficient financial resourc- es to meet the needs of business development and that resources are properly invested in income-generating activities.

The Group uses derivative instruments to hedge its expo- sure to specific market risks, such as the risk associated with fluctuations in exchange rates and interest rates, on the basis of the policies established by the Board of Directors.

9.1 MARKET RISK

FOREIGN EXCHANGE RATE RISK The Group operates internationally and is exposed to foreign ex- change rate risk primarily related to the U.S. Dollar, the Japa- nese Yen and the Chinese Renminbi and to a lesser extent to the Hong Kong Dollar, the British Pound, Korean Won, Canadian Dol- lars, the Swiss Franc, Taiwan Dollars, Singapor Dollars and Aus- tralian Dollars.

The Group regularly assesses its exposure to financial mar- ket risks and manages these risks through the use of derivative financial instruments, in accordance with its established risk management policies.

The Group s policy permits derivatives to be used only for managing the exposure to fluctuations in exchange rates con- nected with future cash flows and not for speculative purposes.

CONSOLIDATED FINANCIAL STATEMENTS142 143CONSOLIDATED FINANCIAL STATEMENTS MONCLER GROUP

2021