Moncler Group | Annual Report 2024 Consolidated Financial Statements 394 Moncler Group | Annual Report 2024 Consolidated Financial Statements 395
As far as the currency transactions are concerned,
it should be noted that a + / -1% change in their exchange rates
would have the following ef fects:
With reference to the provisions of IFRS 13, it should be pointed
out that the category of f inancial instruments measured
at fair value are mainly attributable to the hedging of exchange
rates risk. The valuation of these instruments is based
on the discounting of future cash f lows considering the exchange
rates at the reporting date (level 2 as explained in the section
related to principles).
Interest rate risk
The Group's exposure to interest-rate risk is mainly related
to cash and cash equivalents and it is centrally managed.
9.2 Credit risk
The Group has no signif icant concentrations of f inancial assets
(trade receivables and other current assets) with a high credit
risk. The Group's policies related to the management of f inancial
assets are intended to reduce the risks arising from non
solvency of wholesale customers. Sales in the retail channel
are made through cash and credit cards. In addition, the amount
of loans outstanding is constantly monitored, so that the Group's
exposure to bad debts is not signif icant and the percentage
of writeof fs remains low. The maximum exposure to credit risk
for the Group at 31 December 2024 is represented by the carrying
amount of trade receivables reported in the Consolidated
Financial Statements
As far as the credit risk arising from other f inancial assets
other than trade receivables including cash and shortterm bank
deposits is concerned the theoretical credit risk for the Group
arises from default of the counterparty with a maximum exposure
equal to the carrying amount of f inancial assets recorded
in the Consolidated Financial Statements as well as the nominal
value of guarantees given for third parties debts or commitments
indicated in note 7 of the Explanatory Notes The Group
operates with banks and f inancial institutions of primary standing
and has policies that limit the amount of credit exposure
in dif ferent banks
9.3 Liquidity risk
Liquidity risk arises from the ability to obtain f inancial resources
at a sustainable cost in order for the Group to conduct its daily
business operations. The factors that inf luence this risk are related
to the resources generated/absorbed by operating activities,
by investing and f inancing activities and by availability of funds
in the f inancial market.
Following the dynamic nature of the business, the Group
has centralised its treasury functions in order to maintain
the f lexibility in f inding f inancial sources and maintain
the availability of credit lines. The procedures in place to mitigate
the liquidity risk are as follows:
•centralised treasury management and f inancial planning.
Use of a centralised control system to manage the net
f inancial position of the Group and its subsidiaries;
•
obtaining adequate credit lines to create an adequate
debt structure to better use the liquidity provided
by the credit system;
•
continuous monitoring of future cash f lows based
on the Group budget.
Management believes that the f inancial resources available today,
along with those that are generated by the current operations
will enable the Group to achieve its objectives and to meet
its investment needs and the repayment of its debt at the agreed
upon maturity date
It should also be noted that with reference to the provisions
of IFRS 13 f inancial liabilities relating to commitment
to purchase minority interests are accounted for at fair value
based on valuation models primarily attributable to level 3
as explained in the section related to the basis for measurement
DETAILS OF THE TRANSACTIONS EXPRESSED IN FOREIGN CURRENCY
EUR/000 JP Yen US Dollar CN Yuan HK Dollar KR Won GB Pound Other
Effect of an exchange rate increase amounting to +1%
Revenue 3,485 3,595 6,088 636 2,878 892 2,370
Operating prof it 2,270 1,785 3,558 314 1,647 429 889
Effect of an exchange rate decrease amounting to -1%
Revenue(3,416)(3,524)(5,968)(623)(2,821)(874)(2,323)
Operating prof it(2,225)(1,750)(3,488)(307)(1,615)(420)(871)
It is reported in the following table an analysis
of the contractual maturities (including interests) for f inancial
liabilities and for derivative f inancial assets.
9.4 Operating and capital management risks
In the management of operating risk, the Group's main objective
is to manage the risks associated with the development
of business in foreign markets that are subject to specif ic laws
and regulations.
The Group has implemented guidelines in the following areas:
•appropriate level of segregation of duties;
•reconciliation and constant monitoring
of signif icant transactions;
•documentation of controls and procedures;
•technical and professional training of employees;
•periodic assessment of corporate risks and identif ication
of corrective actions.
As far as the capital management risk is concerned the Groups
objectives are aimed at the going concern issue in order
to ensure a fair economic return to shareholders and other
stakeholders while maintaining a good rating in the capital debt
market The Group manages its capital structure and makes
adjustments in line with changes in general economic conditions
and with the strategic objectives
Contractual cash f lows
NON DERIVATIVE FINANCIAL LIABILITIES Total book
value
Total within 1 year 1–2 years 2–5 years more than 5
years
EUR/000
Bank overdraft 6 6 6 0 0 0
Self-liquidating loans 0 0 0 0 0 0
Financial debt to third parties 0 0 0 0 0 0
Unsecured loans 0 0 0 0 0 0
Financial lease liabilities 924,205 924,205 178,284 143,122 300,550 302,249
Contractual cash f lows
DERIVATIVE FINANCIAL ASSETS AND LIABILITIES Total book
value
Total within 1 year 1–2 years 2–5 years more than 5
years
EUR/000
Interest rate swap hedging 0 0 0 0 0 0
Forward contracts on exchange rate hedging 4,799 4,799 4,799 0 0 0
— Outf lows 9,446 9,446 9,446 0 0 0
— Inf lows(4,648)(4,648)(4,648)0 0 0