Dear Shareholders,

 

The year 2016 marked another important milestone in the success story of Moncler. The Group’s revenues this year exceeded one billion euros, which is a major achievement for all of us, and we did it while remaining true to our core values.
In 2003 I acquired a brand that had a unique history and heritage. I was absolutely convinced that it could become something special, so my team and I worked hard together to drive forward this innovative project.
The idea I had in mind was simple, and it is that simplicity and authenticity which I believe are the key to Moncler’s success. We wanted a brand that was firmly anchored to its origins but at the same time contemporary and innovative, always able to pioneer new ways of blending form and function. We were looking for a top-quality product that exists beyond “fashion”, because the real luxury is in things that last, that are always contemporary regardless of what happens to be in vogue.
We wanted Moncler to become a modern clothing icon and to achieve this we needed to convey our uniqueness in a new way. I believe that over the years we really have pushed back the frontiers. We have embraced global growth, while always maintaining firm control and focus. “To develop a global brand without filters with the market, while remaining true to ourselves” – that has always been my motto.
When we started working on this project, Moncler was essentially an Italian brand with a distribution network only wholesale and revenues in the tens of millions. Now, in 2016, Moncler has posted revenues of 1.040 billion euros, EBITDA of 355 million euros (34% of revenues) and net profit of 196 million euros – all while paying off every last cent of debt. At the end of the year we recorded a net cash position of 106 million euros. The Group is now present in over 70 countries, 86% of revenues are generated outside Italy, and our retail network includes as many as 190 stores, which contribute 73% of consolidated revenues. But the most important goal for me is not the numbers, which are of course fundamental, but a direct consequence of our strategic decisions. My overriding objective, and the greatest source of pride for me today, has always been the strength of the Moncler brand, loved by clients all around the world and seen as a synonym for quality, innovation and reliability.
Now, as always, new challenges await us: ever higher mountains that we must be ready to climb!
The coming years will be very important for our Group. Plenty of projects are in the pipeline. We are developing a technological hub to continue to guarantee the premium quality and constant innovation that clients expect from Moncler. And we are designing innovative new collections, not only in the jacket segment but in other segments complementary to our core business. The ability to convey all our values to clients, satisfy their expectations and anticipate their needs. Clients have always been our most important stakeholder and all our decisions are guided by the desire to put them at the heart of what we do.
I believe that today what is increasingly important for companies and business owners is not just achieving results, but how those results are achieved. At Moncler we intend to continue doing business responsibly and with a view to creating shared and sustainable value.
Recent years have been marked by a background of uncertainty and volatility, which I expect to persist in the near term. This is why I believe it is essential, now more than ever, for a company to be flexible and streamlined in its decision-making processes. I am convinced that Moncler can be confident about its future, but we must remain focused. In particular, we need to continue to attract talent – human capital is fundamental. Over the years we have built an excellent, tight-knit team of determined, enthusiastic people at Moncler. We would not be announcing these results today if it were not for the 3200 employees who make up our Group. It is also thanks to them, to their extraordinary ability, continuing hard work and great passion, that I believe Moncler will continue to grow in 2017 and create value for all of you, who put your trust in our project every day.

Our Business Story

Since 2003, Moncler’s goal has been to pursue a sustainable and responsible development of its brand in the global luxury goods sector, in harmony and in line with the uniqueness of its heritage. Moncler strategy is strictly related to the Group’s philosophy and values and is based on six pillars.

 

Identity and unique positioning
The Moncler brand has a unique heritage which is its main asset and the entire strategy permeates through it. Heritage, quality, uniqueness and consistency define and characterise every Moncler product, a brand that withstands the tides of fashion, because real luxury today is having a high quality product that lasts.

 

A global brand without filters with the market
In recent years Moncler has pursued a strategy of growth underpinned by two fundamental principles, clearly outlined and firmly embraced by its Chairman and CEO, Remo Ruffini: to become a global brand and have no filters with the market. Today, 86% of Moncler’s turnover is generated outside Italy. This has been achieved by keeping a firm control on business and by reaching out directly to customers, wholesale, retail and digital.

 

Selective expansion of the product range

Thanks to its strong tradition and the credibility it has built over the years, Moncler has consolidated its position as worldwide leader in the premium down jacket segment. The Group is now selectively expanding outside its core business into complementary market segments –segments where it has, or is able to achieve, instant recognition and in-depth know-how. “Creating special garments with a specialist’s approach” is the motto that drives Moncler and will continue to steer it in the future.

 

Pursuit of direct relationships, to keep customers amazed
Dealing directly with customers, engaging them and understanding their expectations, even when latent and unexpressed, are the keystones of the relationship that Moncler seeks to build with its consumers, never failing to amaze them.

 

Development of the digital channel
Moncler believes that the digital channel is a fundamental and essential tool for brand communication and global business growth.

 

Sustainable growth that creates value for all stakeholders
The Brand has progressively strengthened its commitment to long-term sustainable growth, with a view to meeting stakeholders’ expectations and creating shared value.

2003  Remo Ruffini acquires the brand Moncler

2005  Private equity fund Mittel S.p.A. and Progressio S.g.r. S.p.A make their entrance in Moncler

2007  The first urban Moncler Directly Operated Stores (DOS)

2008  The Carlyle private equity fund made its entry into Moncler

2009  Moncler establishes a joint venture in Japan, Moncler Japan Corp.

2011  Eurazeo, through its vehicle ECIP M, finalises the acquisition of a 45% stake in Moncler

2013  Moncler (MONC IM; MONC MI) debuts on the Italian stock exchange

2015  Moncler establishes a joint venture in Korea, Moncler Shinsegae Inc.

2016  The Group’s revenues surpass one billion euros

 

PHILOSOPHY

The philosophy of the Moncler brand is intrinsically tied to its unique history. Over the years the brand has been involved in ambitious climbing expeditions and pioneering initiatives. Long associated with the world of sport, the mountains, active life and nature in its truest forms, Moncler has constantly and faithfully founded its philosophy and values on simple, solid principles, summed up in the words of its Chairman and Chief Executive Officer, Remo Ruffini.

THERE IS NO PRESENT OR FUTURE WITHOUT A PAST. MONCLER PRODUCTS ARE SYNONYMOUS WITH EXCELLENCE IN QUALITY THAT DOES NOT CHANGE WITH FASHION

Moncler has a unique heritage and positioning. With over 60 years of history, the brand injects its DNA into innovative, versatile products that withstand the tides of fashion, making them “timeless”. Products that draw inspiration from values tied to the love of sport and nature, renowned for their elegance and excellent quality. Moncler has a business model integrated and focused on quality control. Its value chain manages and coordinates directly the phases with higher value added. Promoting responsibility in the supply chain is part of this process.

THE CLIENT IS OUR MAIN STAKEHOLDER

Moncler has always put the client at the heart of all strategic decisions – even more so since the launch of the “retail excellence” project in 2016. Moncler stores have always been the face of the brand, reflecting its uniqueness. Moncler brand values and philosophy are clearly expressed through its physical presence: the Brand is in leading multibrand shops and luxury department stores, retail stores are located in the most prestigious shopping streets and holiday resorts, and Moncler’s distinctive store concept embodies the Brand DNA yet never stands still.

MONCLER IS A GLOBOPHONIC COMPANY: IT HAS A GLOBAL VISION WITH A DOMESTIC STRATEGY

Moncler has a policy of directly overseeing operations in the regions where the brand is present, with local management and organizations that act in strict coordination with the Parent Company. Moncler operates through headquarters and five regional organizations (Regions): Europe, Asia Pacific, Japan, Korea and the Americas. Moncler firmly believes in the importance of strengthening and consolidating its presence in each of these areas and has long promoted the hiring of local managers and people able to understand and analyse trends in each single market.

IN ORDER TO COMMUNICATE A UNIQUE PRODUCT, YOU MUST HAVE A UNIQUE COMMUNICATION STRATEGY

Moncler’s communication strategy is innovative and never banal. It always conveys the uniqueness of the product and the values of the brand in a distinctive and unequivocally identifying way.

THERE CAN BE NO GROWTH WITHOUT RESPONSIBILITY AND RESPECT

We judge the value of our results also by the way we achieve them. There can be no long-term growth without responsibility and respect. Some years ago Moncler has taken the decision to integrate sustainability issues into its business model and into its business decisions.

I WANT TO BE AMAZED BY THE TALENT OF OTHERS

For Moncler, people have always been a strategic asset. Motivation, determination and innovation are qualities that the Company supports and nurtures constantly. Helping people to grow and develop is a fundamental part of the Group’s philosophy. Moreover, it is a clear objective for senior management, led by Remo Ruffini, who has built a cohesive, highly experienced and motivated team with a proven track record of delivering significant results.