165 SePARATe FInAnCIAL STATeMenTS164 SePARATe FInAnCIAL STATeMenTS MONCLER GROUP 2023

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 financial statements and the related ex- planatory notes in conformity with IFRS requires that manage- ment makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent as- sets and liabilities at the reporting date. The actual results could differ from those estimates.

The estimates and underlying assumptions are reviewed pe- riodically and any variation is reflected in the income statement in the period in which the estimate is revised if the revision affects on- ly 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 financial statements or in case that there is a risk of future adjustments on the amounts recognised for assets and liabilities in the period im- mediately 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 with indefinite useful lives and investments;

provision for losses and contingent liabilities. Incentive systems and variable remuneration.

ReCOVeRABLe AMOUnT OF nOn-CURRenT ASSeTS WITH IndeFInITe USeFUL LIVeS And InVeSTMenTS ( IMPAIRMenT ) Management periodically reviews non-current assets, assets held for sale and investments in subsidiaries for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. When a review for impairment is conducted, the recoverable amount is estimated based on the present value of fu- ture 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 immediately in the income statement and the carrying amount is reduced to its recoverable amount determined based on val- ue-in-use calculation or its sale s value in an arm s length trans- action, with reference to the most recent Group business plan.

PROVISIOn FOR LOSSeS And COnTInGenT LIABILITIeS The Group could be subject to legal and tax litigations arising in the countries where it operates. Litigation is inevitably subject to risk and uncertainties surrounding the events and circumstances asso- ciated with the claims and associated with local legislation and ju- risdiction. In the normal course of business, management requests advice from the Group legal consultants and tax experts. The rec- ognition of a provision is based on management s best estimate when an outflow of resources is probable to settle the obligation and the amount can be reliably estimated. In those circumstances where the outflow of resources is possible or the amount of the ob- ligation cannot be reliably measured, the contingent liabilities are disclosed in the notes to Consolidated Financial Statements.

InCenTIVe SYSTeMS And VARIABLe ReMUneRATIOn For the description of the determination of the fair value of share- based incentive payments for the Moncler Group management, please see paragraph 2.9.

1.1 MONCLER S.P.A.

Moncler S.p.A. (the Company or Moncler ) is a company estab- lished and domiciled in Italy, with its registered office located at Via Stendhal 47 Milan, Italy, and registration number of 04642290961.

The Company is de-facto indirectly controlled by Remo Ruf- fini 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.

It is the Parent Company for the Moncler Group (hereinafter referred to as the Group ) and 55 other subsidiaries.

The main activity of the Company is the Moncler and Stone Is- land brands management, including increasing awareness through dedicated communication and marketing campaigns.

The Moncler Group companies run their businesses in accor- dance with the guidelines and the strategies set up by Moncler s Board of directors.

The Company also prepares the Consolidated Financial State- ments and the Management Report is a single document as permit- ted by. 40/2 bis, letter. B Legislative decree 127/91.

1.2 BASIS FOR THE PREPARATION OF THE SEPARATE FINANCIAL STATEMENTS

1.2.1 RELEVANT ACCOUNTING PRINCIPLES

The 2023 separate financial statements ( financial statements ) have been prepared in accordance with International Financial Re- porting Standards ( IFRS ) issued by the International Accounting Standards Board ( IASB ) and endorsed by the european Union. IF- RS also includes all International Accounting Standards ( IAS ) and interpretations of the International Financial Reporting Interpreta- tions Committee ( IFRIC ), previously known as the Standing Inter- pretations Committee ( SIC ).

The financial statements include the statement of financial position, the income statement, the statement of comprehensive income, the statement of changes in equity, the statement of cash flows and the explanatory notes to the financial statements.

1.2.2 PRESENTATION OF THE FINANCIAL STATEMENTS

The Company presents its income statement by destination, 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 statement of financial position, a ba- sis of presentation has been chosen which makes a distinction be- tween current and non-current assets and liabilities, in accordance with the provisions of paragraph 60 and thereafter of IAS 1.

The statement of cash flows is prepared under the indi- rect method.

1.2.3 BASIS FOR MEASUREMENT

The financial statements have been prepared on the historical cost basis except for the measurement of certain financial instruments (i.e. derivative measured at fair value in accordance with IFRS 9) and on a going concern basis.

The financial statements are presented in thousand euros, which is the functional currency of the markets where the Compa- ny mainly operates.

The explanatory notes have been prepared in thousands of euros unless stated otherwise.

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 Companies s finan- cial strength and its cash and cash equivalents at the end of the year

1 GENERAL INFORMATION