183 SEPARATE FINANCIAL STATEMENTS182 SEPARATE FINANCIAL STATEMENTS MONCLER GROUP 2022

The actuarial valuation of employee termination benefits (TFR) is based on the Projected Unit Credit Cost method. Reported below are the main economic and demographic assumptions utilised for actuarial valuations.

Assumptions Discount rate 2.65% Inflation rate 2.80% Nominal rate of wage growth 2.80% Labour turnover rate 19.00% Probability of request of advances of TFR 3.80% Percentage required in case of advance 70.00% Life Table - Male M2019 (*) Life Table - Female F2019 (*)

(*) Table ISTAT - resident population

The following table shows the effect of variations, within reason- able limits, in key actuarial assumptions on defined benefit plan ob- ligations at year end.

SENSITIVITY ANALYSIS

(Euro/000) Variation Discount rate (+0.5%) (41) Discount rate (-0.5%) 42 Rate of payments Increases x (+0.5%) 1 Rate of payments Increases x (-0.5%) (1) Rate of Price Inflation Increases (+0.5%) 32 Rate of Price Inflation Decreases (-0.5%) (31) Rate of Salary Increases (+0.5%) 15 Rate of Salary Decreases (-0.5%) (14) Increase the retirement age (+1 year) 0 Decrease the retirement age (-1 year) (0) Increase longevity (+1 year) 0 Decrease longevity (-1 year) (0)

4.13 PROVISIONS NON-CURRENT

The item Provisions non-current includes the provision for the pos- sible repayment of the research and development tax credit refer- ring to the years 2015-2019 by virtue of Resolution No. 41 of 26 July 2022, in which the Italian Revenue Agency revises its position on el- igibility for the benefit.

4.14 FINANCIAL LIABILITIES

BORROWINGS

(Euro/000) 31/12/2022 31/12/2021 Short-term financial lease liabilities 1,146 1,077 Intra-group short-term borrowings 444,115 38,610 Short-term borrowings 445,261 39,687 Long-term financial lease liabilities 4,986 5,686 Intra-group long-term borrowings 50,000 327,000 Long-term borrowings 54,986 332,686 Total 500,247 372,373

Borrowings amounted to EUR 500,247 thousand (EUR 372,373 thousand in 2021) and refer to the financial debt with Industries S.p.A. and with Sportswear Company S.p.A. and to the financial lease liabilities.

Financial lease liabilities are detailed in the following table:

FINANCIAL LEASE LIABILITIES

(Euro/000) Short-term financial lease liabilities 1,146 Long-term financial lease liabilities 4,986 Total 6,132

There are no differences between the amounts included in the Con- solidated Financial Statements and their fair values.

4.10 TRADE PAYABLES

As at 31 December 2022, the caption trade payables pertains mostly to marketing and communication services.

TRADE PAYABLES

(Euro/000) 31/12/2022 31/12/2021 Trade payables, third parties 41,138 29,984 Trade payables, intra-group 7,276 2,409 Total 48,414 32,393

Details of the transactions with subsidiaries are provided in the note 8.1 on related parties

4.11 OTHER CURRENT LIABILITIES

As at 31 December 2022, the caption other current liabilities in- cluded the following:

OTHER CURRENT LIABILITIES

(Euro/000) 31/12/2022 31/12/2021 Directors and audit related payables 3,752 3,631 Amounts payable to employees and consultants 4,079 4,269 Employees taxation payables 1,158 1,399 Other current liabilities 7,857 2,710 Other current liabilities, intra-group 23,919 11,649 Total 40,765 23,658

As at 31 December 2022 the caption other current liabilities, in- tra-group mainly included the amounts related to the fiscal and VAT consolidation and in 2021 it included the amounts related to VAT consolidation. For additional information please see note 8.1.

4.12 EMPLOYEES PENSION FUND

As at 31 December 2022, the caption includes the employee pen- sion fund as detailed in the following table:

EMPLOYEES PENSION FUNDS - MOVEMENTS

(Euro/000) 31/12/2022 31/12/2021 Net recognized liability - opening 1,658 1,619 SPW Incorporation 0 45 Interest costs 10 5 Service costs 615 547 Payments (435) (566) Actuarial (Gains)/Losses (23) 8 Net recognized liability - closing 1,825 1,658