119 CONSOLIDATED FINANCIAL STATEMENTS118 CONSOLIDATED FINANCIAL STATEMENTS MONCLER GROUP 2022

million (EUR 137.5 million in 2021), as explained in paragraph 5.3. Please refer to comments made in notes 5.1 and 5.3 for addi-

tional details related to investments made during the year.

5.1 GOODWILL, BRANDS AND OTHER INTANGIBLE ASSETS

BRANDS AND OTHER INTANGIBLE ASSETS

(Euro/000) Gross value Accumulated Net value Net value 31/12/2022 amortization 31/12/2021 and impairment Brands 999,354 0 999,354 999,354 Licence rights 12 (12) 0 0 Key money 75,563 (60,521) 15,042 15,019 Software 138,061 (76,521) 61,540 46,430 Other intangible assets 32,760 (30,484) 2,276 2,310 Assets in progress 8,494 0 8,494 6,961 Goodwill 603,417 0 603,417 603,417 Total 1,857,661 (167,538) 1,690,123 1,673,491

Intangible assets changes are shown in the following tables:

As at 31 December 2022

GROSS VALUE BRANDS AND OTHER INTANGIBLE ASSETS

(Euro/000) Brands Licence Key money Software Other Assets in Goodwill Total rights intangible progress assets and advances 01/01/2022 999,354 0 68,576 105,728 31,455 6,961 603,417 1,815,491 Acquisitions 0 0 3,883 26,186 922 7,622 0 38,613 Disposals 0 0 (116) (170) 0 (336) 0 (622) Changes in consolidation area 0 0 0 0 0 0 0 0 Translation adjustement 0 0 106 (124) (2) (2) 0 (22) Other movements, 0 12 3,114 6,441 385 (5,751) 0 4,201 including transfers 31/12/2022 999,354 12 75,563 138,061 32,760 8,494 603,417 1,857,661

ACCUMULATED AMORTIZATION AND IMPAIRMENT BRANDS AND OTHER INTANGIBLE ASSETS

(Euro/000) Brands Licence Key money Software Other Assets in Goodwill Total rights intangible progress assets and advances 01/01/2022 0 0 (53,557) (59,298) (29,145) 0 0 (142,000) Amortization 0 0 (3,724) (17,514) (925) 0 0 (22,163) Disposals 0 0 94 131 0 0 0 225 Changes in consolidation area 0 0 0 0 0 0 0 0 Translation adjustement 0 0 (249) 118 0 0 0 (131) Other movements, 0 (12) (3,085) 42 (414) 0 0 (3,469) including transfers 31/12/2022 0 (12) (60,521) (76,521) (30,484) 0 0 (167,538)

5 COMMENTS ON THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2021

GROSS VALUE BRANDS AND OTHER INTANGIBLE ASSETS

(Euro/000) Brands Licence Key money Software Other Assets in Goodwill Total rights intangible progress assets and advances 01/01/2021 223,900 0 56,837 77,839 10,888 4,153 155,582 529,199 Acquisitions 0 0 0 13,734 931 6,239 0 20,904 Disposals 0 0 0 (121) (587) 0 0 (708) Changes in consolidation area 775,454 0 10,799 6,799 20,226 3 447,835 1,261,116 Translation adjustement 0 0 940 76 (19) 2 0 999 Other movements, 0 0 0 7,401 16 (3,436) 0 3,981 including transfers 31/12/2021 999,354 0 68,576 105,728 31,455 6,961 603,417 1,815,491

ACCUMULATED AMORTIZATION AND IMPAIRMENT BRANDS AND OTHER INTANGIBLE ASSETS

(Euro/000) Brands Licence Key money Software Other Assets in Goodwill Total rights intangible progress assets and advances 01/01/2021 0 0 (41,733) (40,835) (8,741) 0 0 (91,309) Depreciation 0 0 (3,927) (13,313) (21,003) 0 0 (38,243) Disposals 0 0 0 51 586 0 0 637 Changes in consolidation area 0 0 (7,211) (5,144) 0 0 0 (12,355) Translation adjustement 0 0 (686) (57) 13 0 0 (730) Other movements, 0 0 0 0 0 0 0 0 including transfers 31/12/2021 0 0 (53,557) (59,298) (29,145) 0 0 (142,000)

The increase in the caption software pertained to the investments in information technology to support the business and the corpo- rate functions.

Please refer to the Directors report for additional information related to investments made during the year.

5.2 IMPAIRMENT OF INTANGIBLE ASSETS WITH AN INDEFINITE USEFUL LIFE AND GOODWILL

The captions Brands, Other intangible fixed assets with an indef- inite useful life and Goodwill deriving from previous acquisitions have not been amortised, but have been tested for impairment by management.

The impairment tests on the Moncler brand and on the Stone Island brand were performed by comparing its carrying value with that derived from the discounted cash flow method applying the Royalty Relief Method, based on which the cash flows are linked to the recognition of a royalty percentage applied to revenues that the brand is able to generate.

The recoverable amount of Moncler goodwill and of Stone Is- land goodwill have been tested based on the asset side approach which compares the value in use of the cash-generating unit with the carrying amount of its net invested capital.

For the 2022 valuation of the Moncler brand and goodwill, the expected cash flows and revenues are based on the 2023 Budget approved by the Board of Directors on 2 February 2023, for the year 2024 on the 2022-2024 Business Plan approved by the Board of Di- rectors on 24 February 2022 and for the years from 2025-2027 on the basis of management estimates consistent with the expected development plans.

For the 2022 valuation of the Stone Island brand and good- will, the expected cash flows and revenues are based on the 2023 Budget approved by the Board of Directors on 2 February 2023 and for the years from 2024-2027 on the basis of management esti- mates consistent with the expected development plans.

The g rate used was 2.5%. The discount rate was calculated using the Weighted Average

Cost of Capital (WACC), by weighting the expected rate of return on invested capital, net of hedging costs from a sample of companies within the same industry. The calculation took into account fluctua- tion in the market as compared to the previous year and the result- ing impact on interest rates. The weighted average cost of capital