MONCLER ANNUAL REPORT AT 31 DECEMBER 2020CONSOLIDATED FINANCIAL STATEMENTS 105104

4.6. OPERATING RESULT

In 2020, the operating result of the Moncler Group amounted to 368.8 million euros, compared to 491.8 million euros in 2019. The operating margin was 25.6%, compared to 30.2% in 2019, with a significant improvement in the second half of the year.

4.7. FINANCIAL INCOME AND EXPENSES

The caption is broken down as follows:

4.8. INCOME TAX

The income tax effect on the consolidated income statement is as follows:

Deferred taxes in 2020 include the release deriving from the realignment of the Moncler trademark s tax value to the statutory value. For the breakdown of deferred tax assets and liabilities by nature, please see paragraph 5.4. The reconciliation between the theoretical tax burden by applying the theoretical rate of the parent company, and the effective tax burden is shown in the following table:

Deferred taxes in 2020 mainly includes the benefit deriving from the release of deferred tax liabilities resulting from the realign- ment of Moncler trademark s tax value to the statutory value.

(Euro/000) 2020 2019

Interest income and other financial income 759 1,238

Foreign currency differences - positive 0 0

Total financial income 759 1,238

Interests expenses and other financial (2,002) (1,591)

Foreign currency differences - negative (1,038) (564)

Total financial expenses (3,040) (2,155)

Total net excluded interests on lease liabilities (2,281) (917)

Interests on lease liabilities (21,021) (20,155)

Total net (23,302) (21,072)

(Euro/000) 2020 2019

Current income taxes (130,998) (140,911)

Deferred tax income (expenses) 85,845 28,879

Income taxes charged in the income statement (45,153) (112,032)

Reconciliation theoretic-effective tax rate (Euro/000)

Taxable Amount 2020

Tax Amount 2020

Tax rate 2020

Taxable Amount 2019

Tax Amount 2019

Tax rate 2019

Profit before tax 345,519 470,727

Income tax using the Company's theoretic tax rate (82,925) 24.0% (112,974) 24.0%

Temporary differences (20,872) 6.0% (33,410) 7.1%

Permanent differences (8,467) 2.5% (2,068) 0.4%

Other differences (18,734) 5.4% 7,541 (1.6)%

Deferred taxes recognized in the income statement 85,845 (24.8)% 28,879 (6.1)%

Income tax at effective tax rate (45,153) 13.1% (112,032) 23.8%

4.9. PERSONNEL EXPENSES

The following table lists the details of the main personnel expenses by nature, compared with those of the previous year:

Personnel costs fell by 6% in the period, with a slight increase in term of percentage on revenues, from 11.3% in 2019 to 12% in 2020, due to the effect of the pandemic on revenues and the company s decision to maintain employees basic salaries unchanged for the greater part of the year, net of government contributions to support employment in light of the Covid-19 emergency. The remuneration related to the members of the Board of Directors is commented separately in the related-party section (note 10.1). The costs related to the stock based compensation plans, equal to 31.0 million euros in 2020 (29.4 million euros in 2019) are separately commented in note 10.2. The following table analyses the number of employees (full-time-equivalent) in 2020 compared to the prior year:

The actual number of employees of the Group as at 31 December 2020 was 4,398 unit (4,569 as at 31 December 2019).

4.10. DEPRECIATION AND AMORTISATION

Depreciation and amortisation are broken down as follows:

The increase in both depreciation and amortisation was mainly due to investments made for the new store openings or the relo- cation/expansion of already existing stores, in IT and for the expansion/automation of the italian logistic hub. The amortisation related to the right of use amounted to 120.8 million euros (101.1 million euros in 2019), as explained in para- graphs 5.3. Please refer to comments made in notes 5.1 and 5.3 for additional details related to investments made during the year.

(Euro/000) 2020 2019

Wages and salaries and Social security costs (161,874) (172,100)

Accrual for employment benefits (10,943) (11,814)

Total (172,817) (183,914)

Average FTE by area FTE 2020 2019

Italy 1,027 962

Other European countries 1,655 1,631

Asia and Japan 1,102 1,076

Americas 308 306

Total 4,092 3,975

(Euro/000) 2020 2019

Depreciation of property, plant and equipment (185,302) (157,532)

Amortization of intangible assets (15,674) (13,591)

Total Depreciation and Amortization (200,976) (171,123)