MONCLER ANNUAL REPORT AT 31 DECEMBER 2020BOARD OF DIRECTORS REPORT 7170

RESEARCH AND DEVELOPMENT

Since the Moncler Group s success depends in part on the image, prestige and recognition of the Brand, and in part on the ability to manufacture a set of collections in line with market trends, the Company conducts research and development in order to design, create and implement new products and new collections. Research and development costs are expensed in the income statement as they occur on an accrual basis.

RECONCILIATION BETWEEN NET RESULT AND SHAREHOLDERS EQUITY OF THE PARENT COMPANY AND THE GROUP S AMOUNTS

The reconciliation between the Group s net result and shareholders equity at the end of the period and the parent Company Moncler s S.p.A. net result and shareholders equity is detailed in the following table:

SECONDARY OFFICES

The Company does not have any secondary offices.

Reconciliation between result and new equity of the Parent and the Group

Result 2020

Net Equity 31/12/20

Result 2019

Net Equity 31/12/19

Parent Company balance 173,930 747,358 157,650 543,177

Inter-group dividends (2,314) 0 (37,214) 0

Share of consolidated subsidiaries net of book value of relates equity interest 118,781 888,199 272,055 766,269

Allocation of the excess cost resulting from the acquisition of the subsidiaries and the corresponding Equity (541) 157,998 (236) 158,539

Elimination of the intercompany profit and losses 10,599 (107,762) (33,154) (118,361)

Translation adjustments 0 (18,183) 0 (2,878)

Effects of other consolidation entries (104) (40,562) (416) (40,458)

Total Group shares 300,351 1,627,048 358,685 1,306,288

Minority interest 15 89 10 80

Total 300,366 1,627,137 358,695 1,306,368

OTHER INFORMATION