MONCLER ANNUAL REPORT AT 31 DECEMBER 2020SEPARATE FINANCIAL STATEMENTS 163162

The changes in property, plant and equipment from for 2020 and 2019 is included in the following tables: As at 31 December 2020

As at 31 December 2019

The changes related to the right of use assets arising from the application of the IFRS 16 are reported here below:

Gross value Property, plant and equipment (Euro/000)

Land and buildings

Plant and Equipment

Leasehold improvements

Other fixed assets

Assets in progress and advances Total

1 January 2020 1,710 5 4 295 108 2,122

Acquisitions 119 0 0 164 92 375

Disposals (200) 0 0 0 0 (200)

Other movements, including transfers 0 0 0 0 (184) (184)

31 December 2020 1,629 5 4 459 16 2,113

Accumulated depreciation and impairment PPE (Euro/000)

Land and buildings

Plant and Equipment

Leasehold improvements

Other fixed assets

Assets in progress and advances Total

1 January 2020 (228) (5) (1) (171) 0 (405)

Depreciation (315) 0 (1) (94) 0 (410)

Disposals 103 0 0 0 0 103

Other movements, including transfers 0 0 0 0 0 0

31 December 2020 (440) (5) (2) (265) 0 (712)

Gross value Property, plant and equipment (Euro/000)

Land and buildings

Plant and Equipment

Leasehold improvements

Other fixed assets

Assets in progress and advances Total

1 January 2019 0 5 4 201 61 271

Acquisitions 1,116 0 0 20 108 1,244

Disposals 0 0 0 (25) 0 (25)

First time adoption IFRS16 594 0 0 99 0 693

Other movements, including transfers 0 0 0 0 (61) (61)

31 December 2019 1,710 5 4 295 108 2,122

Accumulated depreciation and impairment PPE (Euro/000)

Land and buildings

Plant and Equipment

Leasehold improvements

Other fixed assets

Assets in progress and advances Total

1 January 2019 0 (5) 0 (109) 0 (114)

Depreciation (228) 0 (1) (69) 0 (298)

Disposals 0 0 0 7 0 7

Other movements, including transfers 0 0 0 0 0 0

31 December 2019 (228) (5) (1) (171) 0 (405)

Right of use assets (Euro/000)

Land and buildings

Other fixed assets Total

1 January 2020 1,482 55 1,537

Acquisitions 119 107 226

Disposals (97) 0 (97)

Depreciation (315) (68) (383)

31 December 2020 1,189 94 1,283

4.4. INVESTMENTS IN SUBSIDIARIES

Investments in subsidiaries are detailed in the following table:

Financial information related to the subsidiaries are detailed in the following table:

With reference to Industries S.p.A., it should be noted that the investment carrying value includes also the higher value rec- ognised during its acquisition and attributable to the goodwill entirely allocated to Moncler business. At the reporting date, management found that there was no risk of impairment of the carrying amount, however lower than the net equity of the sub- sidiary, is fully recoverable given the positive performance of Moncler business and the current outlook; these assumptions are also supported by the impairment test performed on the consolidated cash generating unit of the Moncler business described in the Consolidated Financial Statements of the Moncler Group. The increase of the carrying value of the investment arises from the accounting treatment of the stock option plans and performance shares adopted by the Company and described in note 8.2. Furthermore, the market capitalisation of the Company, based on the average price of Moncler share in 2020, shows a positive difference with respect to the net equity, indirectly confirming the value of the goodwill attributable to the Moncler business. Please refer to the Consolidated Financial Statements for a complete list of the Group companies directly and indirectly con- trolled by the Company.

4.5. DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES

Deferred tax assets and deferred tax liabilities are offset only when there is a law within a given tax jurisdiction which provides for such right to offset. The balances were as follows as at 31 December 2020 and 31 December 2019:

Investments in subsidiaries (Euro/000) Country

% ownership Carrying amount

31 December 2020 31 December 2019 31 December 2020 31 December 2019

Industries S.p.A. Italia 100% 100% 312,663 291,296

Total 312,663 291,296

Summary of subsidiary's financial information (Euro/000)

31 December 2020

Assets Liabilities Net equity Revenues Profit/(Loss)

Industries S.p.A. 1,444,336 611,970 832,366 933,489 57,663

Total 1,444,336 611,970 832,366 933,489 57,663

Summary of subsidiary's financial information (Euro/000)

31 December 2019

Assets Liabilities Net equity Revenues Profit/(Loss)

Industries S.p.A. 1,284,607 528,658 755,949 1,060,821 173,097

Total 1,284,607 528,658 755,949 1,060,821 173,097

Deferred taxation (Euro/000) 31 December 2020 31 December 2019

Deferred tax assets 1,429 457

Deferred tax liabilities (2,410) (64,865)

Net amount (981) (64,408)