SEPARATE FINANCIAL STATEMENTS176 177SEPARATE FINANCIAL STATEMENTS MONCLER GROUP

2021

1. GENERAL INFORMATION

1.1 MONCLER S.P.A.

Moncler S.p.A. (the Company or Moncler ) is a company es- tablished and domiciled in Italy, with its registered office locat- ed at Via Stendhal 47 Milan, Italy, and registration number of 04642290961.

The Company is de facto indirectly controlled by Remo Ruffini through Ruffini Partecipazioni Holding S.r.l., a company incorporated under the Italian law, wholly owned by Remo Ruffini. Ruffini Partecipazioni Holding S.r.l. controls Ruffini Partecipazio- ni S.r.l., a company incorporated under the Italian law, which, as at 31 December 2021, holds 19.9% of the share capital of Moncler S.p.A.

It is the Parent Company for the Moncler Group (hereinafter referred to as the Group ) and 47 other subsidiaries.

The Company s principal activities are the study, design, production and distribution of clothing for men, women and chil- dren and related accessories under the Moncler brand name.

The Moncler Group companies run their businesses in ac- cordance with the guidelines and the strategies set up by Mon- cler s Board of Directors.

The Company also prepares the Consolidated Financial Statements and the Management Report in a single document as permitted by. 40/2 bis, letter. B Legislative Decree 127/91.

1.1.1 PARTIAL DEMERGER OF SPORTSWEAR COMPAY S.P.A. IN MONCLER S.P.A.

The deed of the partial demerger of Sportswear Company S.p.A. ( SPW ) to Moncler S.p.A. has been executed on 9 December 2021. This demerger is part of the broader integration between Moncler and SPW and the subsequent reorganization of the Mon- cler Group and will enable greater operational, functional and eco- nomic efficiency of the Moncler Group.

As a result of this demerger, the assets of SPW that will be transferred to Moncler in connection with the demerger are the Stone Island brand and the set of assets and contracts that com- pose the SPW Style and Marketing business divisions.

The accounting effective date of this transaction is 30 De- cember 2021. A statement of demerged assets and liabilities is provided below.

(Euro/000) Demerged assets and liabilities Tangible assets 182 Right of use assets 4,751 Lease liabilties (4,813) Trade accounts payable (941) Other current assets/(liabilities) (254) Total (1,075)

In order to allow the transferred shareholders equity to remain un- changed at the effective date of the demerger, the total amount of the assets and liabilities transferred was financially settled.

Following the demerger, the value of the Stone Island brand (EUR 775.5 million), originally included in the value of the invest- ment, was reclassified in the item Brands within intangible assets and the corresponding deferred tax liabilities were exposed (EUR 216.4 million).

1.2 BASIS FOR THE PREPARATION OF THE SEPARATE FINANCIAL STATEMENTS

1.2.1 RELEVANT ACCOUNTING PRINCIPLES

The 2021 separate financial statements ( financial statements ) have been prepared in accordance with International Financial Reporting Standards ( IFRS ) issued by the International Ac- counting Standards Board ( IASB ) and endorsed by the European Union. IFRS also includes all International Accounting Standards ( IAS ) and interpretations of the International Financial Report- ing Interpretations Committee ( IFRIC ), previously known as the Standing Interpretations Committee ( SIC ).

The financial statements include the statement of financial position, the income statement, the statement of comprehensive income, the statement of changes in equity, the statement of cash flows and the explanatory notes to the financial statements.

1.2.2 PRESENTATION OF THE FINANCIAL STATEMENTS

The Company presents its income statement by destination, the method that is considered most representative for the business at hand. This method is in fact consistent with the internal reporting and management of the business.

With reference to the statement of financial position, a basis of presentation has been chosen which makes a distinction be- tween current and non-current assets and liabilities, in accord- ance with the provisions of paragraph 60 and thereafter of IAS 1.

The statement of cash flows is prepared under the indirect method.

1.2.3 BASIS FOR MEASUREMENT

The financial statements have been prepared on the historical cost basis except for the measurement of certain financial instru- ments (i.e. derivative measured at fair value in accordance with IF- RS 9) and on a going concern basis.

The financial statements are presented in thousand euros, which is the functional currency of the markets where the Compa- ny mainly operates.

The explanatory notes have been prepared in thousands of Euros unless stated otherwise.

1.2.4 DIRECTORS ASSESSMENT ON THE ASSUMPTION OF BUSINESS CONTINUITY

Based on the results of the current year and forecasts for future years, the management believes that there are no factors render- ing business continuity uncertain. In particular, the Group s fi- nancial strength and its cash and cash equivalents at the end of the year guarantee a high level of financial independence to sup- port Moncler s operational needs and development programmes. For 2021, business operations are fully guaranteed, both in terms of product offerings across the various markets and distribution channels and in the ability to manage and organise business ac- tivities.

1.2.5 USE OF ESTIMATES AND VALUATIONS

The preparation of the financial statements and the related ex- planatory notes in conformity with IFRS requires that manage- ment makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent as- sets and liabilities at the reporting date. The actual results could differ from those estimates.

The estimates and underlying assumptions are reviewed periodically and any variation is reflected in the income statement in the period in which the estimate is revised if the revision affects only that period or even in subsequent periods if the revision af- fects both current and future periods.

In the event that management s estimate and judgment have a significant impact on the amounts recognised in the finan- cial statements or in case that there is a risk of future adjustments