133 COnSOLIdATed FInAnCIAL STATeMenTS132 COnSOLIdATed FInAnCIAL STATeMenTS MONCLER GROUP 2023

For the purposes of IFRS 8 Operating segments , the activity car- ried out by the Group can be identified in the operating segments referring to the Moncler business and the Stone Island business. These operating segments were aggregated into a single report- able segment, consistent with the core principle of IFRS 8, as the segments have similar economic characteristics and share com- mon features, i.e.:

the nature of the products; the nature of the production processes; the type of customers; the distribution channels.

7.1 COMMITMENTS

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

7.2 GUARANTEES GIVEN

As at 31 december 2023 the Group had given the following guar- antees:

GUARANTEES AND BAILS GIVEN

(Euro/000) 31/12/2023 31/12/2022 Guarantees and bails given for the benefit of: Third parties/companies 56,615 53,817 Total guarantees and bails given 56,615 53,817

Guarantees pertain mainly to lease agreements for the new stores.

As the Group operates globally, it is subject to legal and tax risks which may arise during the performance of its ordinary activities. Based on information available to date, the Group believes that at the date of preparation of this document there are no further poten- tial liabilities in addition to those already recorded in the provisions accrued in the Consolidated Financial Statements.

The Group s financial instruments include cash and cash equivalents, loans, receivables and trade payables and other current receivables and payables and non-current assets as well as derivatives.

The Group is exposed to financial risks related to its oper- ations: market risk (mainly related to exchange rates and interest rates), credit risk (associated with both regular client relations and financing activities), liquidity risk (with particular reference to the availability of financial resources and access to the credit market and financial instruments) and capital risk.

Financial risk management is carried out by Headquarters, which ensures primarily that there are sufficient financial resources to meet the needs of business development and that resources are properly invested in income-generating activities.

The Group uses derivative instruments to hedge its exposure to specific market risks, such as the risk associated with fluctua- tions in exchange rates and interest rates, on the basis of the poli- cies established by the Board of directors.

9.1 MARKET RISK

FOReIGn exCHAnGe RATe RISK The Group operates internationally and is exposed to foreign ex- change rate risk primarily related to the U.S. dollar, the Japanese Yen and the Chinese Renminbi and to a lesser extent to the Hong Kong dollar, the British Pound, Korean Won, Canadian dollars, the Swiss Franc, Taiwan dollars, Singapore dollars, Australian dol- lars, Mexican Pesos, norwegian Kroner, new Zealand dollars and Swedish Kroner.

The Group regularly assesses its exposure to financial mar-

6 SEGMENT INFORMATION

7 COMMITMENTS AND GUARANTEES GIVEN

8 CONTINGENT LIABILITIES

9 INFORMATION ABOUT FINANCIAL RISKS

ket risks and manages these risks through the use of derivative financial instruments, in accordance with its established risk man- agement policies.

The Group s policy permits derivatives to be used only for managing the exposure to fluctuations in exchange rates connect- ed with future cash flows and not for speculative purposes.

during 2023, the Group put in place a policy to hedge the ex- change rates risk on transactions with reference to the major cur- rencies to which it is exposed: USd, JPY, CnY, HKd, GBP, KRW, CAd, CHF, TWd, SGd, AUd, Mxn, nOK, nZd and SeK.

The instruments used for these hedges are mainly Currency Forward Contracts and Currency Option Contracts.

The Group uses derivative financial instruments as cash flow hedges for the purpose of redetermining the exchange rate at which forecasted transactions denominated in foreign currencies will be accounted for.

Counterparties to these agreements are major and diverse fi- nancial institutions.

The exposure of contingent assets and liabilities denominated in currencies is detailed in the following table (the euro amount of each currency):

DETAILS OF THE BALANCES EXPRESSED IN FOREIGN CURRENCY

31/12/2023 (Euro/000) Euro JP Yen US Dollar CN Yuan HK Dollar CH Franc GB Pound KR Won CA Dollar Other Total Cash and cash equivalent 577,531 117,177 48,184 113,717 17,433 12,250 16,745 47,383 7,403 40,976 998,799 Financial assets 78,308 0 0 0 0 0 0 0 0 0 78,308 Trade receivable 101,951 46,566 12,349 110,865 1,052 316 7,991 31,807 4,819 7,892 325,608 Other current assets 17,311 3,717 2,802 10,324 (118) 244 1,962 1,549 432 3,678 41,901 Other non-current assets 8,785 11,486 2,256 11,148 6,178 393 1,532 1,331 939 5,445 49,493 Total assets 783,886 178,946 65,591 246,054 24,545 13,203 28,230 82,070 13,593 57,991 1,494,109 Trade payables (357,784) (54,493) (36,062) (50,308) (5,113) (7,345) (7,134) (5,766) (3,614) (10,967) (538,586) Borrowings (408,964) (30,575) (167,234) (67,889) (16,727) (38,375) (50,693) (3,016) (11,384) (53,734) (848,591) Other current payables (97,597) (6,404) (18,725) (7,703) (1,652) (1,416) (5,876) (6,740) (496) (6,303) (152,912) Other non-current payables (103) 0 0 0 0 0 0 0 0 0 (103) Total liabilities (864,448) (91,472) (222,021) (125,900) (23,492) (47,136) (63,703) (15,522) (15,494) (71,004) (1,540,192) Total, net foreign positions (80,562) 87,474 (156,430) 120,154 1,053 (33,933) (35,473) 66,548 (1,901) (13,013) (46,083)

DETAILS OF THE BALANCES EXPRESSED IN FOREIGN CURRENCY

31/12/2022 (Euro/000) Euro JP Yen US Dollar CN Yuan HK Dollar CH Franc GB Pound KR Won CA Dollar Other Total Cash and cash equivalent 429,795 89,626 63,264 103,026 11,232 14,413 18,023 84,038 22,624 46,213 882,254 Financial assets 10,777 0 0 0 574 0 0 0 0 0 11,351 Trade receivable 94,246 60,210 19,710 72,701 1,468 757 8,578 28,247 4,722 5,911 296,550 Other current assets 27,164 3,292 1,433 10,686 895 115 1,746 618 279 1,124 47,352 Other non-current assets 7,625 12,701 2,383 11,920 6,088 461 1,178 1,122 906 2,479 46,863 Total assets 569,607 165,829 86,790 198,333 20,257 15,746 29,525 114,025 28,531 55,727 1,284,370 Trade payables (339,545) (41,566) (32,272) (39,655) 2,071 (3,889) (7,369) (5,243) (1,812) (13,145) (482,425) Borrowings (444,813) (47,651) (176,309) (79,695) (30,181) (38,978) (25,817) (4,905) (9,818) (54,612) (912,779) Other current payables (76,011) (7,019) (18,585) (5,001) (636) (803) (7,387) (6,342) (584) (5,995) (128,363) Other non-current payables (112) 0 0 (3) 0 0 (2) 0 0 0 (117) Total liabilities (860,481) (96,236) (227,166) (124,354) (28,746) (43,670) (40,575) (16,490) (12,214) (73,752) (1,523,684) Total, net foreign positions (290,874) 69,593 (140,376) 73,979 (8,489) (27,924) (11,050) 97,535 16,317 (18,025) (239,314)

At the reporting date, the Group had outstanding hedges for eUR 205.0 million (eUR 202.5 million as at 31 december 2022) against receivables still to be collected and outstanding hedges for eUR 552.3 million (eUR 583.9 million as at 31 december 2022) against future revenues; the Group also had outstanding hedges in place on trade payables in foreign currency for euro 10.1 million (7.2 million at 31 december 2022) against payables still to be paid and hedg- es for euro 10.0 million (euro 13.8 million at 31 december 2022) against future costs.