MONCLER ANNUAL REPORT AT 31 DECEMBER 2020CONSOLIDATED FINANCIAL STATEMENTS 113112

The taxable amount on which deferred tax assets have been calculated is detailed in the following table:

Deferred tax assets (liabilities) (Euro/000)

Opening balance - 1 January

2019

Taxes charged to the income

statement

Taxes accounted for

in Equity

Effect of currency

translation

First time adoption

IFRS16 Other

movements

Closing balance -

31 December 2019

Tangible and intangible assets 6,910 2,904 0 167 8,622 165 18,768

Inventories 66,902 20,463 0 1,389 0 (3,967) 84,787

Trade receivables 3,930 (49) 0 (22) 0 (1) 3,858

Derivatives 478 0 (52) 0 0 1 427

Employee benefits 3,354 (324) 46 50 0 (21) 3,105

Provisions 4,785 2,552 0 80 0 4,070 11,487

Trade payables 2,869 1,132 0 14 0 (94) 3,921

Other temporary items 2,680 36 0 20 0 4 2,740

Tax loss carried forward (10) 89 0 0 0 (38) 41

Tax assets 91,898 26,803 (6) 1,698 8,622 119 129,134

Tangible and intangible assets (67,117) 1,570 0 (99) 0 6 (65,640)

Financial assets 51 0 0 0 0 1 52

Inventories (555) (198) 0 0 0 0 (753)

Derivatives 350 0 (470) 0 0 0 (120)

Trade payables 0 11 0 0 0 (8) 3

Other temporary items (2,835) 693 0 0 0 (110) (2,252)

Tax liabilities (70,106) 2,076 (470) (99) 0 (111) (68,710)

Net deferred tax assets (liabilities) 21,792 28,879 (476) 1,599 8,622 8 60,424

Deferred tax assets and liabilities (Euro/000)

Taxable Amount 2020

Closing balance - 31 December 2020

Taxable Amount 2019

Closing balance - 31 December 2019

Tangible and intangible assets 79,586 21,041 69,778 18,768

Inventories 392,633 97,143 349,296 84,787

Trade receivables 12,787 3,235 16,594 3,858

Derivatives 1,596 384 1,778 427

Employee benefits 8,798 2,029 11,648 3,105

Provisions 63,928 15,589 39,125 11,487

Trade payables 17,483 4,857 13,938 3,921

Other temporary items 21,761 5,039 11,650 2,740

Tax loss carried forward 5,662 1,515 183 41

Tax assets 604,234 150,832 513,990 129,134

Tangible and intangible assets (15,654) (3,596) (236,978) (65,640)

Financial assets (1,254) (300) 213 52

Inventories (3,819) (1,065) (2,699) (753)

Derivatives (3,659) (879) (500) (120)

Trade payables 23 7 13 3

Other temporary items (1,740) (515) (8,950) (2,252)

Tax loss carried forward 25 (48) 0 0

Tax liabilities (26,078) (6,396) (248,901) (68,710)

Net deferred tax assets (liabilities) 578,156 144,436 265,089 60,424

5.5. INVENTORY

As at 31 December 2020 Inventory amounted to 202.8 million euros (208.9 million euros as at 31 December 2019) and is broken down as follows:

Inventory (gross amount) increased by approximately 38.8 million euros (+11.1%) and largely included raw materials and finished products for the forthcoming seasons.

The obsolescence provision was calculated using management s best estimate based on the season needs and the inventory balance based on passed sales trends through alternative channels and future sales volumes. This assumption is expressed dif- ferently for the Regions in which the Group operates, taking into account the characteristics of each market. The change in the obsolescence provision is summarised in the following table:

5.6. TRADE RECEIVABLES

As at 31 December 2020 Trade receivables amounted to 174.1 million euros (167.9 million euros as at 31 December 2019) and they are as follows:

Trade receivables are related to the Group s wholesale business and they include balances with a collection time not greater than three months. During 2020 and 2019, there were no concentration of credit risk greater than 10% associated to individual customers. Please refer to note 9.1 for information regarding the exposure of trade receivables to currency risks.

Inventory (Euro/000) 31 December 2020 31 December 2019

Raw materials 88,252 82,158

Work-in-progress 14,197 26,111

Finished products 284,437 239,836

Inventory, gross 386,886 348,105

Obsolescence provision (184,116) (139,237)

Total 202,770 208,868

Obsolescence provision movements (Euro/000)

1 January 2020 Accrued Used

Translation Difference

31 December 2020

Obsolescence provision (139,237) (61,291) 13,419 2,993 (184,116)

Total (139,237) (61,291) 13,419 2,993 (184,116)

Obsolescence provision movements (Euro/000)

1 January 2019 Accrued Used

Translation Difference

31 December 2019

Obsolescence provision (103,648) (36,981) 2,038 (646) (139,237)

Total (103,648) (36,981) 2,038 (646) (139,237)

Trade receivables (Euro/000) 31 December 2020 31 December 2019

Trade account receivables 185,043 177,518

Allowance for doubtful debt (10,699) (9,462)

Allowance for discounts (200) (137)

Total, net value 174,144 167,919