4. COMMENTS ON THE CONSOLIDATED INCOME STATEMENT

4.1 REVENUES

REVENUES BY BRAND

(Euro/000) 2021 % 2020 % Total revenues 2,046,103 100.0% 1,440,409 100.0% Moncler 1,824,166 89.2% 1,440,409 100.0% Stone Island 221,936 10.8% 0 0.0%

In 2021, Moncler Group reached consolidated revenue of EUR 2,046.1 million up 42.1% compared to the same period of 2020. These results include Moncler brand revenue equal to EUR 1,824.2 million and Stone Island brand revenue, consolidated since 1 April, equal to EUR 221.9 million.

ANALYSIS OF MONCLER BRAND REVENUES In 2021, Moncler brand revenues were equal to EUR 1,824.2 mil- lion, up 26.6% growth compared to 2020. This strong and constant acceleration of the Brand throughout 2021 further strengthened in the fourth quarter supported by the effectiveness of the strat- egies implemented, the success of the collections and the devel- opment of the DTC channel, in particular of the direct online.

REVENUES BY GEOGRAPHY Sales are broken down by geographical area as reported in the fol- lowing table:

(Euro/000) 2021 % 2020 % Variation % Variation Asia 894,817 49.1% 717,860 49.8% 176,957 24.7% EMEA 624,469 34.2% 501,883 34.9% 122,586 24.4% Americas 304,881 16.7% 220,666 15.3% 84,215 38.2% Total 1,824,166 100.0% 1,440,409 100.0% 383,758 26.6%

In 2021, revenues in Asia (which includes APAC, Japan and Korea) were equal to EUR 894.8 million registering a +24.7% growth com- pared to the same period of 2020, thanks to the continued excel- lent performance of China and Korea.

In EMEA, revenues increased +24.4%. All channels and countries contributed to this result, in particular the direct online channel. The wholesale channel also recorded solid growth.

The Americas posted a +38.2% growth compared to 2020, thanks mainly to the DTC channel.

REVENUES BY CHANNEL Revenues by distribution channels are broken down as follows:

(Euro/000) 2021 % 2020 % Total revenues 1,824,166 100.0% 1,440,409 100.0% of which: - Wholesale 394,947 21.7% 350,913 24.4% - DTC 1,429,219 78.3% 1,089,496 75.6%

Revenues are made through two main distribution channels, DTC and wholesale. The DTC channel includes stores that are direct- ly managed by the Brand (free-standing stores, concessions, e-commerce and factory outlet), while the wholesale channel in- cludes stores managed by third parties that sell Moncler products either in single-brand spaces (i.e. shop-in-shop) or inside mul- ti-brand stores (both physical and online).

In 2021, the DTC channel recorded revenues of EUR 1,429.2 million growing +31.2% compared to 2020.

The wholesale channel registered revenues equal to EUR 394.9 million with a 12.5% growth compared to 2020.

ANALYSIS OF MONCLER BRAND REVENUE In 2021 (1 January 31 December), Stone Island generated EUR 310.0 million revenues, of which EUR 221.9 million generated since 1 April and consolidated in Moncler Group.

EMEA is the most important region for Stone Island, con- tributing to 77% of the revenues in the consolidated period. Asia contributed 13% of Stone Island revenues for the consolidated period and Americas the remaining 10%.

The wholesale channel represented 71% of total revenue in the consolidated period with very good performances in all mar- kets. Significant also the development of the DTC channel, both physical and digital.

4.2 COST OF SALES

In 2021, cost of sales increased by EUR 128.4 million in abso- lute terms (+36.6%), going from EUR 350.8 million in 2020 to EUR 479.2 million in 2021. Cost of sales as a percentage of sales has decreased, going from 24.4% in 2020 to 23.4% in 2021.

4.3 SELLING EXPENSES

In 2021 selling expenses amounted to EUR 608.5 million (EUR 463.6 million in 2020), increasing EUR 144.9 million between 2020 and 2021.

Selling expenses in 2021 represented 29.7% of revenues com- pared to 32.2% in 2020. The Group recorded a reduction in the in- cidence of selling expenses thanks to a greater control over costs relating to the management of the stores, in particular in terms of rents and personnel.

Selling expenses mainly include rent costs excluded from the application of the IFRS 16 for EUR 143.6 million (EUR 110.7 million of total rent costs in 2020), personnel costs for EUR 136.9 million (EUR 107.3 million in 2020) costs for depreciation of the right of use for EUR 126.4 million (EUR 113.1 million in 2020) and other amortisation and depreciation for EUR 66.3 million (EUR 62.6 million in 2020).

During the year, the Group continued the negotiations with main landlords to review rents, in light of the effects of the Cov- id-19 pandemic. The economic benefits, equal to EUR 14.4 mil- lion (EUR 26.2 million in 2020), have been reflected in the results of the period and were recognised under this item according to the practical expedient introduced by the amendment to IFRS 16 published in 2020.

The item also includes costs related to stock-based com- pensation plans for EUR 5.4 million (EUR 6.1 million in 2020).

4.4 GENERAL AND ADMINISTRATIVE EXPENSES

In 2021, general and administrative expenses amounted to EUR 237.1 million, up EUR 63.7 million when com- pared to last year.

General and administrative expenses represented 11.6% of turn- over, in respect to 12.0% in 2020.

The item also includes costs related to stock-based com- pensation plans for EUR 23.2 million (EUR 24.9 million in 2020).

4.5 MARKETING EXPENSES

Marketing expenses were EUR 142.1 million, representing 6.9% of revenues in respect to 5.8% recorded in 2020, when market- ing expenses were significantly reduced as a consequence of the pandemic.

4.6 OPERATING RESULT

In 2021, the operating result of the Moncler Group amounted to EUR 579.2 million, compared to EUR 368.8 million in 2020, repre- senting an EBIT margin of 28.3% (25.6% in 2020).

CONSOLIDATED FINANCIAL STATEMENTS126 127CONSOLIDATED FINANCIAL STATEMENTS MONCLER GROUP

2021