97 COnSOLIdATed FInAnCIAL STATeMenTS96 COnSOLIdATed FInAnCIAL STATeMenTS MONCLER GROUP 2023

1.1 THE GROUP AND ITS CORE BUSINESS

The parent company Moncler S.p.A. is a company established and domiciled in Italy, with its registered office located at Via Stendhal 47 Milan, Italy, and registration number of 04642290961.

Moreover, the parent company Moncler S.p.A. is de-facto in- directly controlled by Remo Ruffini through Ruffini Partecipazioni Holding S.r.l. (RPH) and double R S.r.l. (dR): more specifically, Remo Ruffini owns the entire share capital of RPH, a company controlling dR which, in turn, as of 31 december 2023 holds a shareholding representing 23.7% of the share capital of Moncler S.p.A.

The Consolidated Financial Statements as at and for the year ended 31 december 2023 include the Parent Company and its sub- sidiaries (hereafter referred to as the Group ).

To date, the Group s core businesses are the creation, pro- duction and distribution of clothing for men, women and children, shoes, leather goods and other accessories under the Moncler and Stone Island brand name.

1.2 BASIS FOR THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

1.2.1 RELEVANT ACCOUNTING PRINCIPLES

The 2023 Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards ( IFRS ) issued by the International Accounting Standards Board ( IASB ) and endorsed by the european Union. IFRS also includes all International Accounting Standards ( IAS ) and interpretations of the Internation- al Financial Reporting Interpretations Committee ( IFRIC ), previous- ly known as the Standing Interpretations Committee ( SIC ).

The Consolidated Financial Statements include the consol- idated income statement, the consolidated statement of compre- hensive income, the consolidated statement of financial position, the consolidated statement of changes in equity, the consolidated statement of cash flows and the explanatory notes to the Consoli- dated Financial Statements.

1.2.2 PRESENTATION OF THE FINANCIAL STATEMENTS

The Group presents its consolidated income statement by desti- nation, the method that is considered most representative for the business at hand. This method is in fact consistent with the internal reporting and management of the business.

With reference to the consolidated statement of financial posi- tion, a basis of presentation has been chosen which makes a distinction between current and non-current assets and liabilities, in accordance with the provisions of paragraph 60 and thereafter of IAS 1.

The consolidated statement of cash flows is prepared under the indirect method.

In accordance with the provisions of IAS 24, related-party trans- actions with the Group and their impact, if significant, on the consoli- dated statement of financial position, consolidated income statement and consolidated statement of cash flows are reported below.

The consolidated financial statements are presented in thou- sands of euros while, unless otherwise indicated, the data con- tained in the explanatory notes are presented in millions of euros.

1.2.3 BASIS FOR MEASUREMENT

The Consolidated Financial Statements have been prepared on the historical cost basis, except for the measurement of certain finan- cial instruments (i.e. derivatives) as required by IFRS 9, and on a go- ing concern basis.

The Consolidated Financial Statements are presented in thousand euros, which is the functional currency of the markets where the Group mainly operates.

1.2.4 DIRECTORS ASSESSMENT ON THE ASSUMPTION OF BUSINESS CONTINUITY

Based on the results of the current year and forecasts for future years, the management believes that there are no factors rendering

business continuity uncertain. In particular, the Group s financial strength and its cash and cash equivalents at the end of the year guarantee a high level of financial independence to support Mon- cler s operational needs and development programmes. For 2024, business operations are fully guaranteed, both in terms of product offerings across the various markets and distribution channels and in the ability to manage and organise business activities.

1.2.5 USE OF ESTIMATES AND VALUATIONS

The preparation of the Consolidated Financial Statements and the related explanatory notes in conformity with IFRS requires that management makes estimates and assumptions that affect the re- ported amounts of assets and liabilities and disclosure of contin- gent assets and liabilities at the reporting date. The estimates and related assumptions are based on historical experience and oth- er relevant factors. The actual results could differ from those es- timates. The estimates and underlying assumptions are reviewed periodically and any variation is reflected in the consolidated in- come statement in the period in which the estimate is revised if the revision affects only that period or even in subsequent periods if the revision affects both current and future periods.

In the event that management s estimate and judgment have a significant impact on the amounts recognised in the Consolidat- ed Financial Statements or in case that there is a risk of future ad- justments on the amounts recognised for assets and liabilities in the period immediately after the reporting date, the following notes will include the relevant information.

The estimates pertain mainly to the following captions of the Con- solidated Financial Statements:

impairment of non-current assets and goodwill; impairment of trade receivables (bad debt provision); allowance for returns; impairment of inventories (obsolescence provision); recoverability of deferred tax assets; provision for losses and contingent liabilities; lease liabilities and right of use assets; incentive systems and variable remuneration; IAS 29 hyperinflation; financial liabilities for the purchase of minority interests; IFRIC 23: uncertainty over income tax treatments.

IMPAIRMenT OF nOn-CURRenT ASSeTS And GOOdWILL non-current assets include property, plant and equipment, intangi- ble assets with indefinite useful life and goodwill, investments and other financial assets.

Management periodically reviews non-current assets for im- pairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. When a review for impair- ment is conducted, the recoverable amount is estimated based on the present value of future cash flows expected to derive from the asset or from the sale of the asset itself, at a suitable discount rate.

When the recoverable amount of a non-current asset is less than its carrying amount, an impairment loss is recognised imme- diately in profit or loss and the carrying amount is reduced to its re- coverable amount determined based on value-in-use calculation or its sale s value in an arm s-length transaction, with reference to the most recent Group business plan.

IMPAIRMenT OF TRAde ReCeIVABLeS The bad debt provision represents management s best estimate of the probable loss for unrecoverable trade receivables. For the de- scription of the criteria applied to estimate the bad debt provision, please refer to paragraph 2.10 Financial instruments - Trade receiv- ables, financial assets and other current and non-current receivables.

ALLOWAnCe FOR ReTURnS The allowance for returns reflects management s best estimate of the asset arising from expected product returns and the associat- ed liability for future refunds.

IMPAIRMenT OF InVenTORY The Group manufactures and sells mainly clothing goods that are

1 GENERAL INFORMATION ABOUT THE GROUP