101 COnSOLIdATed FInAnCIAL STATeMenTS100 COnSOLIdATed FInAnCIAL STATeMenTS MONCLER GROUP 2023

The accounting principles set out below have been applied consis- tently for fiscal year 2023 and the prior year.

2.1 BASIS OF CONSOLIDATION

The Consolidated Financial Statements comprise those of the Par- ent Company and its subsidiaries, of which the Parent owns, di- rectly or indirectly, a majority of the voting rights and over which it exercises control, or from which it is able to benefit by virtue of its power to govern the subsidiaries financial and operating policies.

The financial results of the subsidiaries are prepared for the same reporting period as the Parent Company, using consistent ac- counting policies.

Subsidiaries are consolidated from the date on which con- trol is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group. Where the Group loses control of a subsidiary, the Consolidated Finan- cial Statements include the results for the portion of the reporting period during which the Parent Company had control. In the Con- solidated Financial Statements, non-controlling interests are pre- sented separately within equity and in the statement of income. Changes in the parent s ownership interest, that do not result in a loss of control or changes that represent acquisition of non-con- trolling interests after the control has been obtained, are account- ed for as changes in equity.

In preparing the Consolidated Financial Statements, the ef- fects, the balances as well as the unrealised profit or loss recognised in assets resulting from intra-group transactions are fully eliminated.

InVeSTMenTS In ASSOCIATeS Investments in associates are accounted for using the equity meth- od whereas the initial recognition is stated at acquisition cost and adjusted thereafter for the post-acquisition change in the investor s share of net assets. On acquisition of the investment any differ- ence between the cost of the investment and the investor s share of the net fair value of the associate s assets and liabilities is includ- ed in the carrying amount of the investment. If the investor s share of losses of the associate equals or exceeds its interest in the asso- ciate, the investor s interest is reduced to zero and additional loss- es are provided for and a liability is recognised to the extent that the investor has incurred a legal obligation or has the intention to make payments on behalf of the associate.

2.2 FOREIGN CURRENCY

Items included in the financial statements of each of the Group s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency).

TRAnSACTIOnS In FOReIGn CURRenCIeS Foreign currency transactions are recorded by applying the spot exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies, which are held at year- end, are translated into the functional currency at the exchange rate ruling at the reporting date. exchange differences arising on the settlement on the translation of monetary transactions at a rate different from those at which they were translated at initial recog- nition are recognised in the consolidated income statement in the period in which they arise.

TRAnSLATIOn OF THe ReSULTS OF OVeRSeAS BUSIneSSeS Assets and liabilities of overseas subsidiaries included in the Con- solidated Financial Statements are translated into the Group s reporting currency of euros at the exchange rate ruling at the re- porting date. Income and expenses are translated at the average exchange rate for the reporting period, as it is considered to ap- proximate at best the actual exchange rate at the transaction date. differences arising on the adoption of this method are recognised separately in other comprehensive income and are presented in a separate component of equity as translation reserve until disposal of the foreign operation. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and li-

2 SUMMARY OF MATERIAL ACCOUNTING PRINCIPLES USED IN THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

abilities of the foreign operation and translated at the exchange rate ruling at the reporting date.

The main exchange rates used to convert into euro the Consolidated Financial Statements of foreign subsidiaries as at and for the years ended 31 december 2023 and 31 december 2022 are as follows:

Average rate Rate at the end of the period Year 2023 Year 2022 As at 31/12/2023 as at 31/12/ 2022 Aed 3,971000 3,867320 4,058100 3,917100 AUd 1,628800 1,516690 1,626300 1,569300 BRL 5,401000 5,439900 5,361800 5,638600 CAd 1,459500 1,369500 1,464200 1,444000 CHF 0,971800 1,004710 0,926000 0,984700 CnY 7,660000 7,078800 7,850900 7,358200 CZK 24,004300 24,565900 24,724000 24,116000 dKK 7,450900 7,439560 7,452900 7,436500 GBP 0,869790 0,852761 0,869050 0,886930 HKd 8,465000 8,245100 8,631400 8,316300 HUF 381,852700 391,286000 382,800000 400,870000 JPY 151,990000 138,027000 156,330000 140,660000 KRW 1,412,880000 1,358,070000 1,433,660000 1,344,090000 KZT 493,570000 485,587000 502,480000 492,900000 MOP 8,718900 8,492690 8,890300 8,565800 Mxn 19,183000 21,186900 18,723100 20,856000 MYR 4,932000 4,627900 5,077500 4,698400 nOK 11,424800 10,102610 11,240500 10,513800 nZd 1,762200 1,658200 1,750400 1,679800 PLn 4,542000 4,686100 4,339500 4,680800 ROn 4,946700 4,931310 4,975600 4,949500 RUB 92,599400 72,634900 100,550600 76,076500 SeK 11,478800 10,629600 11,096000 11,121800 SGd 1,452300 1,451160 1,459100 1,430000 TRY 25,759700 17,408790 32,653100 19,964900 TWd 33,698300 31,322300 33,874000 32,760300 UAH 39,540000 34,010500 41,996000 39,037000 USd 1,081300 1,053050 1,105000 1,066600

2.3 BUSINESS COMBINATIONS

Business combinations are accounted under the acquisition method. Under this method, the identifiable assets acquired and the li-

abilities assumed are measured initially at their acquisition-date fair values. The costs incurred in a business combination are account- ed as expenses in the periods in which the services are rendered.

Goodwill is determined as the excess of the aggregate of the considerations transferred, of any non-controlling interests and, in a business combination achieved in stages, the fair value of pre- viously held equity interest in the acquiree compared to the net amounts of fair value of assets transferred and liabilities assumed at the acquisition date. If the fair value of the net assets acquired is greater than the acquisition cost, the difference is recognised di- rectly in the statement of income at the acquisition date. non-con- trolling interests could be measured either at their fair value at the acquisition date or at the non-controlling interests proportionate share of the identifiable net assets. The election of either method is done for each single business combination.

If the initial accounting for a business combination is incom- plete by the end of the reporting period in which the combination occurred, the Group shall report in the financial statements pro- visional amounts for the items for which the accounting is incom- plete. during the measurement period, that shall not exceed one year from the acquisition date, the provisional amounts are ret- rospectively adjusted to reflect new information obtained about facts and circumstances that existed at the acquisition date and, if known, would have affected the measurement of assets and liabili- ties recognised at that date.