135 COnSOLIdATed FInAnCIAL STATeMenTS134 COnSOLIdATed FInAnCIAL STATeMenTS MONCLER GROUP 2023

As far as the currency transactions are concerned, it should be not- ed that a + / -1% change in their exchange rates would have the fol- lowing effects:

DETAILS OF THE TRANSACTIONS EXPRESSED IN FOREIGN CURRENCY (Euro/000) JP Yen US Dollar CN Yuan HK Dollar KR Won GB Pound Other Effect of an exchange rate increase amounting to +1%               Revenue 3,165 3,404 5,291 588 2,800 802 2,047 Operating profit 1,987 1,779 3,300 315 1,633 408 763 Effect of an exchange rate decrease amounting to -1%               Revenue (3,229) (3,472) (5,398) (600) (2,857) (818) (2,088) Operating profit (2,027) (1,815) (3,367) (321) (1,666) (417) (778)

With reference to the provisions of IFRS 13, it should be pointed out that the category of financial instruments measured at fair value are mainly attributable to the hedging of exchange rates risk. The valua- tion of these instruments is based on the discounting of future cash flows considering the exchange rates at the reporting date (level 2 as explained in the section related to principles).

InTeReST RATe RISK The Group s exposure to interest-rate risk is mainly related to cash and cash equivalents and it is centrally managed.

As at 31 december 2023, there was limited hedging on inter- est rates, given the limited exposure to financial institutions.

9.2 CREDIT RISK

The Group has no significant concentrations of financial assets (trade receivables and other current assets) with a high credit risk. The Group s policies related to the management of financial assets are intended to reduce the risks arising from non solvency of whole- sale customers. Sales in the retail channel are made through cash and credit cards. In addition, the amount of loans outstanding is constantly monitored, so that the Group s exposure to bad debts is not significant and the percentage of writeoffs remains low. The maximum exposure to credit risk for the Group at 31 december 2023 is represented by the carrying amount of trade receivables reported in the Consolidated Financial Statements.

As far as the credit risk arising from other financial assets oth- er than trade receivables (including cash and short-term bank de- posits) is concerned, the theoretical credit risk for the Group arises from default of the counterparty with a maximum exposure equal to the carrying amount of financial assets recorded in the Consoli- dated Financial Statements, as well as the nominal value of guaran- tees given for third parties debts or commitments indicated in note 7 of the explanatory notes. The Group s policies limit the amount of credit exposure in different banks.

9.3 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.

Following the dynamic nature of the business, the Group has cen- tralised its treasury functions in order to maintain the flexibility in finding financial sources and maintain the availability of credit lines. The procedures in place to mitigate the liquidity risk are as follows:

centralised treasury management and financial planning. Use of a centralised control system to manage the net financial position of the Group and its subsidiaries;

obtaining adequate credit lines to create an adequate debt structure to better use the liquidity provided by the credit system;

continuous monitoring of future cash flows based on the Group budget.

Management believes that the financial resources available today, along with those that are generated by the current operations will enable the Group to achieve its objectives and to meet its invest- ment needs and the repayment of its debt at the agreed upon ma- turity date.

It should also be noted that, with reference to the provisions of IFRS 13, financial liabilities relating to commitment to purchase minority interests are accounted for at fair value based on valuation models primarily attributable to level 3, as explained in the section related to principles.

It is reported in the following table an analysis of the contrac- tual maturities (including interests), for financial liabilities.

NON DERIVATIVE FINANCIAL LIABILITIES

(Euro/000)   Contractual cash flows Total book value Total within 1-2 years 2-5 years more than 1 year 5 years Bank overdraft 0 0 0 0 0 0 Self-liquidating loans 0 0 0 0 0 0 Financial debt to third parties 0 0 0 0 0 0 Unsecured loans 1,514 1,514 1,514 0 0 0 Financial lease liabilities 805,331 805,331 167,659 140,392 275,082 222,198

DERIVATIVE FINANCIAL LIABILITIES

(Euro/000)   Contractual cash flows Total book value Total within 1-2 years 2-5 years more than 1 year 5 years Interest rate swap hedging 0 0 0 0 0 0 Forward contracts on exchange rate hedging (5,312) (5,312) (5,312) 0 0 0 - Outflows 4,391 4,391 4,391 0 0 0 - Inflows (9,703) (9,703) (9,703) 0 0 0

9.4 OPERATING AND CAPITAL MANAGEMENT RISKS

In the management of operating risk, the Group 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 Group s ob- jectives are aimed at the going concern issue in order to ensure a fair economic return to shareholders and other stakeholders while main- taining a good rating in the capital debt market. The Group manages its capital structure and makes adjustments in line with changes in general economic conditions and with the strategic objectives.

10.1 RELATED PARTY TRANSACTIONS

Set out below are the transactions with related parties deemed rel- evant for the purposes of the Related-party procedure adopted by the Group.

The Related-party procedure is available on the Company s website (www.monclergroup.com, under Governance/Corporate documents ).

Transactions and balances with consolidated companies have been eliminated during consolidation and are therefore not commented here.

10 OTHER INFORMATION