125 CONSOLIDATED FINANCIAL STATEMENTS124 CONSOLIDATED FINANCIAL STATEMENTS MONCLER GROUP 2022

Trade receivables are related to the Group s wholesale business and they include balances with a collection time not greater than three months. During 2022 and 2021, there were no concentration 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 re- turn is detailed in the following tables:

DOUBTFUL DEBT AND DISCOUNTS ALLOWANCE

(Euro/000) 01/01/2022 Changes in Accrued Used Translation 31/12/2022 consolidation area Difference Allowance for doubtful debt (13,871) 0 (1,601) 540 (77) (15,009) Allowance for discounts (92) 0 (36) 0 (4) (132) Total (13,963) 0 (1,637) 540 (81) (15,141)

DOUBTFUL DEBT AND DISCOUNTS ALLOWANCE

(Euro/000) 01/01/2021 Changes in Accrued Used Translation 31/12/2021 consolidated 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)

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 un- certain. In addition, the bad debt provision includes an estimate of the expected loss relating to trade receivables in bonis , increased in 2022 to take into account the changed economic context. The fund also covers any risk of revocation on trade receivables mainly related to North American customers.

5.7 CASH AND CASH EQUIVALENT

As at 31 December 2022 the caption cash and cash equivalent amounted to EUR 882.3 million (EUR 932.7 million as at 31 Decem- ber 2021) and included cash and cash equivalents as well as the funds available at banks.

The amount included in the Consolidated Financial State- ments represents the fair value at the date of the financial state- ments. The credit risk is very limited since the other parties are class A financial 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) 31/12/2022 31/12/2021 Cash on hand and at banks 882,254 932,718 Bank overdraft and short-term bank loans 0 (130,003) Total 882,254 802,715

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.

5.5 INVENTORY

As at 31 December 2022 Inventory amounted to EUR 377.5 million (EUR 263.5 million as at 31 December 2021) and is broken down as follows:

INVENTORY

(Euro/000) 31/12/2022 31/12/2021 Raw materials 134,521 98,688 Work-in-progress 60,714 52,335 Finished products 424,143 342,148 Inventories, gross 619,378 493,171 Obsolescence provision (241,829) (229,650) Total 377,549 263,521

Inventory (gross amount) increased by approximately EUR 126.2 million (+25.6%) and mainly included raw materials and finished products for the forthcoming seasons.

The obsolescence provision was calculated using manage- ment s best estimate based on the season needs and the inventory balance based on passed sales trends through alternative chan- nels and future sales volumes. This assumption is expressed dif- ferently for the Regions in which the Group operates, taking into account the characteristics of each market.

The change in the obsolescence provision is summarised in the following table:

OBSOLESCENCE PROVISION - MOVEMENTS

(Euro/000) 01/01/2022 Other Accrued Used Translation 31/12/2022 movements Difference Obsolescence provision (229,650) (427) (41,416) 28,824 840 (241,829) Total (229,650) (427) (41,416) 28,824 840 (241,829)

OBSOLESCENCE PROVISION - MOVEMENTS

(Euro/000) 01/01/2021 Other Accrued Used Translation 31/12/2021 movements Difference Obsolescence provision (184,116) (17,928) (40,834) 16,347 (3,119) (229,650) Total (184,116) (17,928) (40,834) 16,347 (3,119) (229,650)

5.6 TRADE RECEIVABLES

As at 31 December 2022 Trade receivables amounted to EUR 296.6 million (EUR 234.3 million as at 31 December 2021) and they are as follows:

TRADE RECEIVABLES

(Euro/000) 31/12/2022 31/12/2021 Trade account receivables 311,691 248,237 Allowance for doubtful debt (15,009) (13,871) Allowance for discounts (132) (92) TOTAL, NET VALUE 296,550 234,274