MONCLER ANNUAL REPORT AT 31 DECEMBER 2020CONSOLIDATED FINANCIAL STATEMENTS 121120

No new medium/long-term loans were taken out during 2020. Finally, the caption other short-term loans includes also the negative fair value, equal to 0.8 million euros (compared to 3.0 mil- lion euros negative as at 31 December 2019), related to the contracts to hedge the exchange rate risk. Please refer to note 9.3 for more details. The net financial position is detailed in the following table:

Net financial position as defined by the CESR Recommendation of 10 February 2005 (referred to by the Consob Communication of 28 July 2006).

5.16. SHAREHOLDERS EQUITY

Changes in shareholders equity for 2020 and the comparative period are included in the consolidated statements of changes in equity. As at 31 December 2020 the subscribed share capital constituted by 258,352,624 shares was fully paid and amounted to 51,670,524.80 euros with a nominal value of 0.20 euros per share. As at 31 December 2020 5,585,803 treasury shares were held, equal to 2.2% of the share capital, for a total value of 184.7 million euros. The legal reserve and premium reserve pertain to the parent company Moncler S.p.A. In 2020 the Parent Company didn t distribute dividends to the Group Shareholders (100.8 million euros in 2019).

The increase of the share capital and the share premium reserve arised from the exercise of n. 68,300 vested options (for the same number of shares) in relation to the Stock Option Plan approved by the Shareholders Meeting of Moncler S.p.A. dated 23 April 2015 at the exercise price of 16.34 euros per share and the free capital increase in execution of the Performance Shares Plan approved in 2016 (No. 304,800 shares).

The change in the IFRS 2 reserve is due to the accounting treatment of the stock option and performance share plans, i.e., to the recognition of the figurative cost for the period relating to these plans and the reclassification to retained earnings of the cumulative figurative cost of the plans already closed. The change in retained earnings mainly relates to the allocation of 2019 result, the above-mentioned reclassification of the IFRS 2 reserve and the adjustment to the market value of the financial liabilities to non-banking third parties. The caption FTA reserve includes the effects of the initial application of the IFRS 16.

The caption other reserves includes other comprehensive income comprising the exchange rate translation reserve of fi- nancial statements reported in foreign currencies, the reserve for hedging interest rate risks and exchange rates risks and the reserve for actuarial gains/losses. The translation reserve includes the exchange differences emerging from the conversion of the financial statements of the foreign consolidated companies. The hedging reserve includes the effective portion of the net differences accumulated in the fair value of the derivative hedge instruments. Changes to these reserves were as follows:

Net financial position (Euro/000) 31 December 2020 31 December 2019

A. Cash in hand 1,452 1,747

B. Cash at banks and cash equivalents 922,046 757,326

C. Available for sale securities 0 0

D. Liquidity (A)+(B)+(C) 923,498 759,073

E .Current financial assets 4,793 3,120

F. Payable to banks, current (15) (3)

G. Current portion of long-term debt 0 0

H. Short-term financial lease liabilities (102,791) (105,523)

I. Other current financial debt (47,617) (21,255)

J. Current financial debt (F)+(G)+(H)+(I) (150,423) (126,781)

K. Net current financial debt (E)+(D)+(J) 777,868 635,412

L. Payable to bank, non-current 0 0

M. Bonds issued 0 0

N. Long-term financial lease liabilities (537,506) (533,794)

O. Other non-current payables (25,338) (78,203)

P. Non-current financial debt (L)+(M)+(N)+(O) (562,844) (611,997)

Q. Net financial debt (K)+(P) 215,024 23,415

EARNING PER SHARE

Earning per share for the years ended 31 December 2020 and 31 December 2019 is included in the following table and is based on the relationship between net income attributable to the Group and the average number of shares, net of treasury shares owned. The diluted earnings per share is in line with the basic earnings per share as at 31 December 2020 as there were no significant dilutive effects arising from stock based compensation plans. It should be noted that, for the diluted earnings per share calculation, the treasury share method has been applied, prescribed by IAS 33 paragraph 45 for stock-based compensation plans.

Other comprehensive income (Euro/000)

Cumulative translation adj. reserve Other OCI items

Value before tax effect Tax effect

Value after tax effect

Value before tax effect Tax effect

Value after tax effect

Reserve as at 1 January 2019 (6,071) 0 (6,071) (4,243) 1,004 (3,239)

Changes in the period 3,195 0 3,195 2,006 (476) 1,530

Translation differences of the period 0 0 0 0 0 0

Reversal in the income statement of the period 0 0 0 0 0 0

Reserve as at 1 December 2019 (2,876) 0 (2,876) (2,237) 528 (1,709)

Reserve as at 1 January 2019 (2,876) 0 (2,876) (2,237) 528 (1,709)

Changes in the period (15,307) 0 (15,307) 3,668 (895) 2,773

Translation differences of the period 0 0 0 0 0 0

Reversal in the income statement of the period 0 0 0 0 0 0

Reserve as at 31 December 2020 (18,183) 0 (18,183) 1,431 (367) 1,064

Earnings per share 2020 2019

Net result of the period (Euro/000) 300,351 358,685

Average number of shares related to parent's Shareholders 252,674,625 251,723,961

Earnings attributable to Shareholders (Unit of Euro) 1.19 1.42

Diluited earnings attributable to Shareholders (Unit of Euro) 1.18 1.42