187 SEPARATE FINANCIAL STATEMENTS186 SEPARATE FINANCIAL STATEMENTS MONCLER GROUP 2022

In view of the realignment of the Moncler trademark s tax value to the statutory value, as required by Law Decree 104/2020 (the so- called August Decree), art. 110, par. 8, the Retained earnings re- serve has been appointed as deferred tax reserve for an amount equal to EUR 217,150,636.

The caption OCI ( Other Comprehensive Income ) reserve includes the actuarial risks related to the employee pension fund.

Changes in that reserve are as follows: OTHER COMPREHENSIVE INCOME

(Euro/000) Employees pension fund - actuarial valuation Fair value IRS 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 (231) 38 (193) 0 0 0 Reclassification to Other reserves 0 0 0 0 0 0 Changes in the period (8) 0 (8) 0 0 0 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 (239) 38 (201) 0 0 0 Reserve as at 01/01/2022 (239) 38 (201) 0 0 0 Reclassification to Other reserves 0 0 0 0 0 0 Changes in the period 23 0 23 0 0 0 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 (216) 38 (178) 0 0 0

5.1 COMMITMENTS

The Company does not have significant commitments arising from operating lease contract or other contractual cases that do not fall within the scope of IFRS 16.

5.2 GUARANTEES GIVEN

As at the date of the financial statements, the Company had no guarantees toward the Group companies nor third parties.

The Company is subject to risks which may arise during the perfor- mance of its ordinary activities. Based on information available to date, management believes that there currently are no contingent liabilities that need to be accrued in the financial statements.

5 COMMITMENTS AND GUARANTEES GIVEN

6 CONTINGENT LIABILITY

The Company s financial instruments include cash and cash equiv- alents, loans, receivables and trade payables and other current receivables and payables and non-current assets as well as deriv- atives.

The Company is mostly exposed to interest rate risk, liquidi- ty risk and capital risk.

MARKET RISK

EXCHANGE RATE RISK The Company operated mostly with companies in euros and, as such, the exposure to exchange rate risk is limited. As at 31 Decem- ber 2022, a small portion of the Company s assets and liabilities (i.e. trade receivables and payables) were denominated in a currency different from its functional currency.

INTEREST RATE RISK The Company s exposure to interest rate risk during 2022 is con- nected mostly to changes in interest rates relate to outstanding loans.

As at 31 December 2022 the Company had no bank loans and therefore there were no interest rate hedges, consequently any changes in interest rates at the year-end date would not have signif- icant effects on the result of the year.

The Company is not exposed to changes in currency inter- est rates.

CREDIT RISK The Company has no significant concentrations of credit risk with companies that are not part of the Group. The maximum exposure to credit risk is represented by the amount reported in the financial statements.

As far as the credit risk arising from other financial assets (in- cluding cash, short-term bank deposits and some financial deriv- ative instruments) is concerned, the credit risk for the Company arises from default of the counterparty with a maximum exposure equal to the carrying amount of financial assets recorded in the fi- nancial statements.

LIQUIDITY RISK Liquidity risk arises from the ability to obtain financial resources at a sustainable cost in order for the Group to conduct its daily busi- ness operations. The factors that influence this risk are related to the resources generated/absorbed by operating activities, by in- vesting and financing activities and by availability of funds in the fi- nancial market.

Management believes that the financial resources available today, along with those that are generated by the current opera- tions will enable the Company to achieve its objectives and to meet its investment needs and the repayment of its debt at the agreed upon maturity date.

OPERATING AND CAPITAL MANAGEMENT RISKS In the management of operating risk, the Company s main objective is to manage the risks associated with the development of business in foreign markets that are subject to specific laws and regulations.

The Group has implemented guidelines in the following areas: appropriate level of segregation of duties; reconciliation and constant monitoring of significant transac-

tions; documentation of controls and procedures; technical and professional training of employees; periodic assessment of corporate risks and identification of

corrective actions.

As far as the capital management risk is concerned, the Company s objectives are aimed at the going concern issue in order to ensure a fair economic return to shareholders and other stakeholders while maintaining a good rating in the capital debt market. The Company manages its capital structure and makes adjustments in line with changes in general economic conditions and with the strategic ob- jectives.

7 INFORMATION ABOUT FINANCIAL RISKS