129 COnSOLIdATed FInAnCIAL STATeMenTS128 COnSOLIdATed FInAnCIAL STATeMenTS MONCLER GROUP 2023

The item Tax litigations includes the provision carried out in the 2022 for the possible repayment of the research and development tax credit referring 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 eligibility for the benefit.

The caption other non current contingencies includes costs for restoring stores, costs associated with ongoing disputes and product warranty costs.

5.14 PENSION FUNDS AND AGENTS LEAVING INDEMNITIES

The changes in the funds are depicted in the following table:

EMPLOYEES PENSION FUNDS

(Euro/000) 01/01/2023 Increase Decrease Translation Other 31/12/2023 differences movements Pension funds (6,618) (1,791) 567 171 16 (7,655) Agents leaving indemnities (5,418) (1,037) 1,966 0 0 (4,489) Total (12,036) (2,828) 2,533 171 16 (12,144)

EMPLOYEES PENSION FUNDS

(Euro/000) 01/01/2022 Increase Decrease Translation Other 31/12/2022 differences movements Pension funds (6,773) (1,712) 1,316 1 550 (6,618) Agents leaving indemnities (5,681) (276) 539 0 0 (5,418) Total (12,454) (1,988) 1,855 1 550 (12,036)

The pension funds pertain mainly to the Italian entities of the Group. Following the recent welfare reform, beginning on 1 January 2007, the liability has taken the form of a defined contribution plan. There- fore, the amount of pension fund (TFR) accrued prior to the applica- tion of the reform and not yet paid to the employees as at the date of the Consolidated Financial Statements is considered as a defined benefit plan, changes in which are shown in the following table:

EMPLOYEES PENSION FUNDS - MOVEMENTS

(Euro/000) 31/12/2023 31/12/2022 net recognized liability - opening (4,337) (4,956) Changes in consolidation area 0 0 Interest costs (163) (27) Service costs (866) (741) Payments 558 837 Actuarial Gains/(Losses) 16 550 Net recognized liability - closing (4,792) (4,337)

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 3.10% Inflation rate 2.25% nominal rate of wage growth 2.25% Labour turnover rate 11.88% Probability of request of advances of TFR 3.00% 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% (162) discount rate -0.5% 172 Rate of payments Increases x (+0.5%) 3 Rate of payments decreases x (-0.5%) (3) Rate of Price Inflation Increases (+0.5%) 116 Rate of Price Inflation decreases (-0.5%) (114) Rate of Salary Increases (+0.5%) 29 Rate of Salary decreases (-0.5%) (28) Increase the retirement age (+1 year) (3) decrease the retirement age (-1 year) 4 Increase longevity (+1 year) (0) decrease longevity (-1 year) 0

5.15 FINANCIAL LIABILITIES

Financial liabilities are detailed in the following table:

BORROWINGS

(Euro/000) 31/12/2023 31/12/2022 Bank overdraft and short-term bank loans 0 0 Short-term portion of long-term bank loans 1,514 7,429 Short-term financial lease liabilities 167,659 163,194 Other short-term loans 15,230 23,447 Short-term borrowings 184,403 194,070 Long-term portion of long-term bank loans 0 2,264 Long-term financial lease liabilities 637,672 674,285 Other long-term borrowings 26,516 42,160 Long-term borrowings 664,188 718,709 Total 848,591 912,779

Short-term borrowings include bank overdraft and short-term bank loans, the current portion of long-term bank loans, short-term fi- nancial lease liabilities arising from the application of IFRS 16 and, under other short-term loans, mainly the current portion of financial liabilities payable to non-banking third parties.

Long-term borrowings include long-term financial lease lia- bilities arising from the application of IFRS 16 and financial liabili- ties payable to non-bank third parties.

Financial lease liabilities amounted to eUR 805.3 million (eUR 837.5 million in 2022) and are detailed in the following table:

FINANCIAL LEASE LIABILITIES

(Euro/000) 31/12/2023 31/12/2022 Short-term financial lease liabilities 167,659 163,194 Long-term financial lease liabilities 637,672 674,285 Total 805,331 837,479

The changes in financial lease liabilities during 2023 are reported in the following table:

(Euro/000)  IFRS 16 Ex IAS 17 Financial lease liabilities 1 January 2023 837,397 82 837,479 Acquisitions 153,757 139 153,896 disposals (200,719) (77) (200,796) Financial expenses 28,992 10 29,002 Changes in consolidation area 0 0 0 Translation adjustment (14,250) 0 (14,250) 31 December 2023 805,177 154 805,331