189 SePARATe FInAnCIAL STATeMenTS188 SePARATe FInAnCIAL STATeMenTS MONCLER GROUP 2023

The Company is subject to risks which may arise during the perfor- mance of its ordinary activities. Based on information available to date, management believes that there currently are no contingent liabilities that need to be accrued in the financial statements.

The Company s financial instruments include cash and cash equiva- lents, loans, receivables and trade payables and other current receiv- ables and payables and non-current assets as well as derivatives.

The Company is mostly exposed to interest rate risk, liquidi- ty risk and capital risk.

MARKET RISK

EXCHANGE RATE RISK The Company operated mostly with companies in euros and, as such, the exposure to exchange rate risk is limited. As at 31 decem- ber 2023, a small portion of the Company s assets and liabilities (i.e. trade receivables and payables) were denominated in a currency different from its functional currency.

INTEREST RATE RISK The Company s exposure to interest rate risk during 2023 is connect- ed mostly to changes in interest rates relate to outstanding loans.

As at 31 december 2023 the Company had no bank loans and therefore there were no interest rate hedges, consequently any changes in interest rates at the year-end date would not have signif- icant effects on the result of the year.The Company is not exposed to changes in currency interest rates.

CREDIT RISK The Company has no significant concentrations of credit risk with companies that are not part of the Group. The maximum exposure to credit risk is represented by the amount reported in the finan- cial statements.

As far as the credit risk arising from other financial assets (in- cluding cash, short-term bank deposits and some financial deriv- ative instruments) is concerned, the credit risk for the Company arises from default of the counterparty with a maximum exposure equal to the carrying amount of financial assets recorded in the fi- nancial statements.

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 financial market.

Management believes that the financial resources available today, along with those that are generated by the current opera- tions will enable the Company to achieve its objectives and to meet its investment needs and the repayment of its debt at the agreed upon maturity date.

OPERATING AND CAPITAL MANAGEMENT RISKS In the management of operating risk, the Company 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 trans-

actions; 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 Compa- ny s objectives are aimed at the going concern issue in order to ensure a fair economic return to shareholders and other stakehold-

6 CONTINGENT LIABILITY

7 INFORMATION ABOUT FINANCIAL RISKS

ers while maintaining a good rating in the capital debt market. The Company manages its capital structure and makes adjustments in line with changes in general economic conditions and with the strategic objectives.

8.1 RELATED-PARTY TRANSACTIONS

Set out below are the transactions with related parties deemed relevant for the purposes of the Related-party procedure adopt- ed by the Group.

The Related-party procedure is available on the Compa- ny s website (www.monclergroup.com, under Governance/Cor- porate documents ).

Transactions with subsidiaries are of a commercial nature and are conducted at market conditions similar to those conducted with third parties and are detailed as follows:

INTERCOMPANY BALANCES 31/12/2023

(Euro/000) Receivables Payables Net value Industries S.p.A. 177,980 (602,919) (424,939) Sportswear Company S.p.A. 11,740 (51,527) (39,787) Stone Island Retail S.r.l. 450 0 450 Stone Island distribution S.r.l. 2,494 (4,084) (1,590) Other Group companies 58 (628) (570) Total 192,722 (659,158) (466,436)

INTERCOMPANY TRANSACTIONS 2023

(Euro/000) Revenues Expenses/Other Net value revenues net Industries S.p.A. 403,713 (25,625) 378,088 Sportswear Company S.p.A. 65,597 (2,950) 62,647 Other Group companies 0 (777) (777) Total 469,310 (29,352) 439,958

Moncler S.p.A. granted to the subsidiary Industries S.p.A. a license to use the Moncler brand and to the subsidiary Sportswear Com- pany S.p.A. a license to use the Stone Island brand. Based on the license agreements, the Company is remunerated through pay- ments of royalties.

The total amount of royalties for fiscal year 2023 amounted to eUR 469.3 million (eUR 414.5 million in 2022).

Please note that Moncler S.p.A. is part of the Group s fiscal and VAT consolidation and is responsible with Industries S.p.A., Sportswear Company S.p.A., Stone Island Retail S.r.l. and Stone Is- land distribution S.r.l. for taxes payable and the related interests.

Compensation paid to the members of the Board of direc- tors in 2023 are eUR 8,917 thousand (eUR 7,380 thousand in 2022).

Compensation paid to the members of the Board of Auditors in 2023 are eUR 183 thousand (eUR 142 in 2022).

In 2023 the costs relating to Performance Shares (described in note 8.2) referring to members of the Board of directors amount to eUR 9,032 thousand (eUR 5,083 thousand in 2022).

There are no other related-party transactions.

8 OTHER INFORMATION