167 SePARATe FInAnCIAL STATeMenTS166 SePARATe 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 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at acquisition or manu- facturing cost, not revalued net of accumulated depreciation and impairment losses ( impairment ). Cost includes original purchase price and all costs directly attributable to bringing the asset to its working condition for its intended use.

dePReCIATIOn depreciation of property, plant and equipment is calculated and recognised in the income statement on a straight-line basis over the estimated useful lives as reported in the following table:

Category Depreciation period Land no depreciation Buildings From 25 to 33 years Plant and equipment From 8 to 12 years Fixtures and fittings From 5 to 10 years electronic machinery and equipment From 3 to 5 years Leasehold improvements Useful life of improvements Rights of use Lease period Other fixed assets depending on market conditions generally within the expected to the entity

Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will take ownership of the asset by the end of the lease term.

depreciation methods, useful lives and residual value are re- viewed at each reporting period and adjusted if appropriate.

GAIN/LOSSES ON THE DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT Gains and losses on the disposal of property, plant and equipment represent the difference between the net proceeds and net book value at the date of sale. disposals are accounted when the rele- vant transaction becomes unconditional.

2.2 INTANGIBLE ASSETS

BRAndS Separately acquired brands are shown at historical cost. Brands acquired in a business combination are recognised at fair value at the acquisition date.

Brands have an indefinite useful life and are carried at cost less accumulated impairment. Brands are not amortised but sub- ject to impairment test performed annually or more frequently if events or changes in circumstances indicate that the carrying val- ue may not be recoverable.

For further details please refer to note 2.5 Impairment of non-financial assets .

InTAnGIBLe ASSeTS WITH A deFInITe USeFUL LIFe Software (including licenses and separately identifiable external de- velopment costs) is capitalised as intangible asset at purchase price, plus any directly attributable cost of preparing that asset for its in- tended use. Software and other intangible assets that are acquired by the Group and have definite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses.

2 MATERIAL ACCOUNTING PRINCIPLES1.3 IMPACT OF CLIMATE CHANGE ISSUES

The Group defined a climate strategy aimed at reducing green- house gas (GHG) emissions, with the intention of positively contrib- uting to the global goal of combating climate change, in line with the requirements of the Paris Agreement on climate. This strategy, inte- grated into the Group s business model, includes medium and long- term objectives.

In particular, the Group committed to reducing absolute CO2e emissions by 70% within Scope 1 and Scope 2 by 2030 (in line with the 1.5°C ambition) and by 52% within Scope 3 (in line with the Well-Below 2°C ambition) per unit of product sold com- pared to 2021.

Furthermore, Moncler Group committed to achieving net ze- ro emissions (net Zero1) along the entire value chain by 2050.

These objectives have been formally approved by the Sci- ence Based Targets initiative (SBTi)2 and deemed consistent with the contribution required of companies to limit the maximum in- crease in global temperature compared to pre-industrial levels.

The main actions undertaken to achieve these objectives include: use of electricity from renewable sources (both purchased

and self-generated); implementation of energy efficiency activities (Building Man-

agement System - BMS, lighting systems, more efficient heat- ing and cooling, improvement of building thermal insulation, and promotion of environmental standards for buildings);

adoption of low-impact environmental vehicles in the Group s car fleet;

obtaining Leed certifications for new stores3 and all new cor- porate buildings.

For Scope 3 emissions: the progressive introduction of preferred materials in col-

lections; promotion of regenerative agriculture projects; decarbonization of the supply chain through energy efficien-

cy measures and the adoption of renewable energy sources.

The actions described above are reflected and will be reflected in the Group s Consolidated Financial Statements in terms of new in- vestments and recurring operations (e.g., purchase of origin guar- antee certificates, purchase of certified raw materials, etc.). The Group voluntarily reports on non-financial aspects in both the non-Financial Statement and the CdP Climate Change question- naire, addressing climate change-related business risks as per the requirements of the european Securities and Market Authority (eS- MA) and the recommendations of the Task Force on Climate-relat- ed Financial disclosures (TCFd) of the Financial Stability Board: Governance, Strategy, Risk Management, Metrics, and Objectives.

The impact of climate change has also been evaluated in rela- tion to estimates and assessments made in the financial statements. Medium-term impacts have been taken into account in the business plan projections, which form the basis for the impairment test.

As of the reporting date, there are no significant effects on the figures presented in the Financial Statements.

Furthermore, to strengthen the Group s commitment to eSG issues, starting from 2020 Performance Share plan, an eSG Perfor- mance Indicator focused on carbon neutrality has been introduced for all directly managed Group locations worldwide (offices, stores, logistics hub, production sites), on reducing single-use fossil ori- gin plastic, and on recycling nylon production waste, taking into ac- count the Group s inclusion in the dow Jones Sustainability World and europe indices.

1 Achieving net Zero involves the overall balance between greenhouse gas (GHG) emissions produced and those absorbed by ecosystems, through neutralisation mechanisms. Specifically, to contribute to net Zero, compa- nies must reduce emissions and neutralise residual emissions.

2 Promoted by CdP, United nations Global Compact, World Resources In- stitute (WRI) and World Wide Fund for nature (WWF), the Science Based Targets initiative establishes and promotes best-practice in defin- ing science-based targets, as well as assessing companies objectives.

3 excluding Shop-in-shop.