Moncler Group | Annual Report 2024 Board of Directors’ Report 74 Moncler Group | Annual Report 2024 Board of Directors’ Report 75

Risks related to the evolution of the

regulatory framework

The Moncler Group operates in a complex international context

and is subject, in the various jurisdictions in which it operates,

to laws and regulations that are constantly monitored with regard

to the health and safety of workers, environmental protection,

rules on the manufacture and composition of products, consumer

protection, personal data protection, industrial and intellectual

property rights protection, rules on competition and on suppliers

management, tax and customs rules, and in general all the relevant

regulatory provisions.

The Group operates in accordance with applicable provisions

of law and has established processes that ensure knowledge

of the specif ic local regulations in the contexts in which it operates

and of the regulatory changes that are gradually made. However,

since legislation on certain matters, for example taxation,

is characterised by a high degree of complexity, an interpretation

other than that applied by the Group may still have a signif icant

impact on economic results. In this regard, the Moncler Group is

involved in a programme to negotiate advance pricing agreements

with the tax authorities of the main countries in which the Group

operates, some f inalised and some still in progress.

In addition, the enactment of new legislation or amendments

to existing legislation that impose more stringent standards

— for example with regard to product compliance — may entail,

by way of example, costs of adapting the production methods

or characteristics of the products or may limit the Group's

operations, with negative consequences for its f inancial performance.

Risks associated with exchange rate performance

The Moncler Group also operates on international markets

in currencies other than the euro, mainly the Chinese Yuan

Renminbi, Japanese Yen, US Dollar, Korean Won and British

Pound. It is therefore exposed to risk arising from the f luctuation

of exchange rates, to an extent equal to the amount

of transactions (mainly revenues) not covered by transactions

of the opposite sign expressed in the same currency The Group

has a strategy in place aimed at gradually hedging the risks

associated with exchange rate trends limited to transaction

risks and has adopted a strict policy on currency risk that

sets the minimum hedging limit per currency at the beginning

of each sales campaign at 75 and the minimum hedging limit

per currency at the end of the sales campaign at 90

However due in part to translation risk deriving from

the conversion into euro of the f inancial statements of foreign

companies expressed in local currency signif icant changes

in exchange rates may entail changes positive or negative

in the Groups results and f inancial position

For further information see the specif ic section of the Notes

to the Financial Statements 91

Risks associated with interest rate performance

The Group does not avail itself of signif icant lines of credit as it

is fully able to f inance its own operations. In addition, the Group

has the option of using loans from third parties, specif ically

banks. If it chose to use such loans, it would be subject to the risk

of interest rate changes. In order to hedge part of the risk

relating to an increase in rates, the Group may carry out hedging

activities. However, any signif icant f luctuations in interest

rates could lead to an increase in f inancial expenses, with negative

consequences for the Group's results.

For further information, see the specif ic section of the Notes

to Financial Statements 9.1.

Credit risks

The Moncler Group operates in accordance with credit

m

onitoring policies aimed at reducing the risks arising from the

insolvency of its wholesale customers. These policies are

based on preliminary analysis of the reliability of customers and

on guaranteed forms of insurance cover and/or payment

methods. In addition, the Group does not have signif icant

credit concentrations.

However, the emergence of signif icant delinquency by certain

customers could still result in losses on receivables, with negative

consequences for the Group's results. The Moncler Group

monitors and manages its exposure to wholesale customers with

signif icant positions with particular care, including by applying

for and obtaining bank guarantees and cash deposits in advance

of shipments.

For further information, see the specif ic section of the Notes

to the Financial Statements 9.2.

Liquidity risks

The Group implements f inancial planning activities aimed

at reducing liquidity risk, including in view of the seasonal nature

of the business, particularly for the Moncler brand. Based

on evolving f inancial needs, where necessary, lines of credit

are planned with the banking system to meet these needs

according to a corresponding distinction between shortterm

and longterm lines of credit

In addition to face the risk of loss of available capital the

Group follows strict rules to spread its deposits and cash

and cash equivalents in a balanced manner over an adequate

number of highly rated banks while avoiding concentration

and using only very low free f inancial products

For further information see the specif ic section of the Notes

to the Financial Statements 93

Risks associated with technological innovation

The Moncler Group pays particular attention to the

technological innovation of its processes and collections, as well

as to the constant improvement of its customers' experience.

In this context, inadequate technological innovation could result

in the loss of a competitive advantage over other companies

operating in the sector. Conversely, the introduction of new

technologies, such as the adoption of artif icial intelligence tools,

in addition to opportunities, could generate some new risks that

the Group should adequately identify and manage.