GROUP STRATEGY

Moncler Group has, as strategic objective, the development of its brands in an authentic way while enhancing their strong uniqueness, also through a constant contamination of diverse entrepreneurial and managerial cul- tures as well as business knowledge and technical know-how.

Moncler Group strategy is underpinned by four pillars.

BECOME A LEADER IN THE NEW LUXURY SEGMENT The Moncler Group with its two brands Moncler and Stone Island represents the expression of a new concept of luxury, far from the traditional stereotypes, which em- braces the search for experientiality, inclusivity, sense of belonging to a community and contamination of different worlds including those of art, culture, music and sport. United by beyond fashion, beyond luxury philosophy, Moncler and Stone Island in- tend to consolidate in the new luxury segment, strengthening their ability to interpret the evolving cultural codes of the new generations.

BUILD A GLOBAL GROUP ABLE TO FULLY ENHANCE ITS BRANDS POTENTIAL AT GLOBAL LEVEL Under the guidance of Remo Ruffini, Moncler has followed a growth strategy inspired by two key principles: to become a global Brand and to be more direct to consumers. The Moncler Group aims at sharing, with its brands knowledge and experience to fully capture their growth potentials globally, maintaining their unique positioning while strengthening their direct to consumers approach.

DEVELOP ALL DISTRIBUTION CHANNELS WITH AN OMNICHANNEL APPROACH, SUPPORTED BY A STRONG DIGITAL CULTURE Engaging directly with clients through every channel and touch point, involving them, understanding their expectations even when unspoken and creating unique and distinctive experiences in its stores, are the cornerstones of the relationship that the Group strives to develop with its community to never stop surprising it. The Group is pursuing a strategy of integrated development of its distribution channels knowing that thinking, defining and implementing its strategy digitally is fundamental to sus- tain future growth.

FOLLOW A SUSTAINABLE GROWTH PATH TO CREATE VALUE FOR ALL STAKEHOLDERS Moncler has been progressively strengthening its commitment to long-term, sustain- able and responsible growth, fully integrated into the strategy and now totally fully shared by Stone Island as well. The Group s plan is based on five strategic priorities: climate action, circular economy, fair sourcing, enhancing diversity, and giving back to local communities.

BUSINESS MODEL

Moncler Group s integrated and fl exible business model is geared towards having direct control of the phases that add the greatest value, putting the pursuit of ever-increasing quality and the satisfaction of consumers at the heart of all its work.

MONCLER BRAND

MONCLER COLLECTIONS Moncler s success is based on a unique brand strategy aimed at developing innovative products that are strongly anchored to the history of the Brand. The journey, which began in 2003 when Remo Ruffini acquired the Group, has always been coherent and pursued without compromise. Heritage, uniqueness, quality, cre- ativity and innovation are the terms used in Moncler to define the concept of luxury .

The Moncler collections are divided into three parallel di- mensions: Moncler Collections, Moncler Grenoble and Moncler Genius.

The Moncler Men s, Women s and Enfant Collections were born from the fusion of research, innovation and luxury express- ing the brand s DNA: they meet the needs of different consumers, multiple uses and lifestyles.

In Moncler Grenoble, the Brand s DNA is even stronger and more defined. Moncler Grenoble has become a technology and style innovation lab for the sporty consumer with an interest in performance, design and innovation. The Moncler Grenoble col- lections are split into High Performance, products guaranteeing maximum performance, Performance & Style, for the sporty con- sumer who also cares about design, and Après-Ski for the con- sumer who is looking for style with a sporting edge.

Moncler Genius One House, Different Voices collections take on a strategic relevance. They bring together different inter- pretations and visions of the Brand under the same roof , gener- ating a new synergetic creative energy, while always remaining true to the Brand s uniqueness.

The Moncler collections are rounded off with footwear and leather goods (bags, backpacks and accessories) lines and a sun- glasses and eyeglasses line (Moncler Lunettes), besides the per- fume for men and women, launched in October 2021.

Moncler s team of fashion designers is subdivided by collec- tions and it works under the close supervision of Remo Ruffi ni, who sets design guidelines and oversees their consistent implemen- tation across all collections and product categories. The Moncler Style Department is assisted by the Merchandising and Product Development teams, which help create the collections and trans- form the designers creative ideas into the fi nal product.

MONCLER PRODUCTION Moncler s products are designed, manufactured and distribut- ed according to a business model featuring direct control of all phases where the greatest value is added.

Moncler directly manages the creative phase, the purchase of raw materials, as well as the development of prototypes, while the cut-make-trim phase of the production stage is partly man- aged internally and partly assigned to third party manufacturers (façon manufacturers).

The purchase of raw materials is one of the main areas of the value chain. All raw materials must comply with the highest qual- itative standards in the industry, be innovative and able to offer advanced functional and aesthetic features. Moncler only buys the best white goose down from Europe, North America and Asia. While textiles and garment accessories (buttons, zips, etc.) are purchased mainly in Italy and Japan.

Moncler currently uses more than 370 suppliers of raw ma- terials: the top 40 suppliers account for circa 80% of the value of suppliers.

BOARD OF DIRECTORS REPORT32 33 MONCLER GROUP

2021BOARD OF DIRECTORS REPORT