131 CONSOLIDATED FINANCIAL STATEMENTS130 CONSOLIDATED FINANCIAL STATEMENTS MONCLER GROUP 2022
5.16 SHAREHOLDERS EQUITY
Changes in shareholders equity for 2022 and the comparative peri- od are included in the consolidated statements of changes in equity.
As at 31 December 2022 the subscribed share capital con- stituted 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 2022 4,858,416 treasury shares were held, equal to 1.8% of the share capital, for a total value of EUR 186.2 million.
The legal reserve and premium reserve pertain to the parent company Moncler S.p.A.
In 2022 the Parent Company distributed dividends to the Group Shareholders for a gross unit amount of EUR 0.60 per ordi- nary share, for an amount of EUR 161.3 million of which EUR 161.0 million paid in 2022 (EUR 121.3 million distributed in 2021, of which EUR 120.7 million paid in 2021).
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 re- classification 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 2021 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. It also includes the purchase of treasury shares, net of the amount used to service the Performance shares plans.
The caption FTA reserve includes the effects of the initial ap- plication of the IFRS 16.
The caption other reserves includes other comprehensive in- come comprising the exchange rate translation reserve of financial statements reported in foreign currencies, the reserve for hedging interest rate risks and exchange rates risks and the reserve for ac- tuarial gains/losses. The translation reserve includes the exchange differences emerging from the conversion of the financial state- ments of the foreign consolidated companies. The hedging 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 before Tax effect Value after Value before Tax effect Value after tax effect tax effect tax effect tax effect Reserve as at 01/01/2021 (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 31/12/2021 869 0 869 (14,628) 3,495 (11,133)
Reserve as at 01/01/2022 869 0 869 (14,628) 3,495 (11,133) Changes in the period (12,383) 0 (12,383) 13,895 (3,321) 10,574 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 31/12/2022 (11,514) 0 (11,514) (733) 174 (559)
EARNING PER SHARE Earning per share for the years ended 31 December 2022 and 31 December 2021 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 2022 as there were no significant dilutive effects arising from stock based compensation plans.
It should be noted that, for the diluted earnings per share cal- culation, the treasury share method has been applied, prescribed by IAS 33 paragraph 45 for stock-based compensation plans.
Earnings per share 2022 2021 Net result of the period (Euro/000) 606,697 393,533 Average number of shares related to parent s Shareholders 268,974,283 265,570,691 Earnings attributable to Shareholders (Unit of Euro) 2.26 1.48 Diluted earnings attributable to Shareholders (Unit of Euro) 2.24 1.47
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.
7.1 COMMITMENTS
The Group does not have significant commitments arising from op- erating lease contract or other contractual cases that do not fall within the scope of IFRS 16.
7.2 GUARANTEES GIVEN
As at 31 December 2022 the Group had given the following guar- antees:
GUARANTEES AND BAILS GIVEN
(Euro/000) 31/12/2022 31/12/2021 Guarantees and bails given for the benefit of: 53,817 36,403 Third parties/companies Total guarantees and bails given 53,817 36,403
Guarantees pertain mainly to lease agreements for the new stores.
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 poten- tial liabilities in addition to those already recorded in the provisions accrued in the Consolidated Financial Statements.
The Group s financial 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 oper- ations: market risk (mainly related to exchange rates and interest rates), credit risk (associated with both regular client relations and financing 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 resources 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 exposure to specific market risks, such as the risk associated with fluctua- tions in exchange rates and interest rates, on the basis of the poli- cies 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 Japanese Yen and the Chinese Renminbi and to a lesser extent to the Hong Kong Dollar, the British Pound, Korean Won, Canadian Dollars, the Swiss Franc, Taiwan Dollars, Singapore Dollars, Australian Dol- lars, Mexican Pesos, Norwegian Kroner, New Zealand Dollars and Swedish Kroner.
The Group regularly assesses its exposure to financial mar- ket risks and manages these risks through the use of derivative
6 SEGMENT INFORMATION
7 COMMITMENTS AND GUARANTEES GIVEN
8 CONTINGENT LIABILITIES
9 INFORMATION ABOUT FINANCIAL RISKS