The cut-make-trim phase is conducted both by third party man- ufacturers (façon manufacturers) and in the Moncler manufactur- ing plant in Romania, initially established in 2015 and then moved to its current location in 2016, that currently employs more than 1,100 people, and which will undergo in 2022 an important ex- pansion and automation project with the aim of significantly increasing its production capacity. Investments in R&D also con- tinue to automate some stages of outerwear production, reducing processing times.

The third-party suppliers (façon manufacturers) working for Moncler are mainly located in Eastern European countries, which are currently able to ensure quality standards that are among the highest in the world for the production of down jackets. Moncler su- pervises these suppliers directly by conducting audits designed to check aspects regarding product quality, brand protection and compliance with current laws, Moncler Code of Ethics (updated in 2017) and Supplier Code of Conduct (approved in 2016).

For the production, 115 suppliers are used, divided be- tween façon and finished products manufacturers: the first 35 suppliers cover about 80% of the value of supply2.

MONCLER DISTRIBUTION Moncler is present in all major markets both through the retail channel, consisting of directly operated stores (DOS3), the online store and the e-concessions, and through the wholesale channel, represented by multi-brand doors, shop-in-shops in luxury de- partment stores, airport locations and online luxury multi-brand retailers (e-tailers). Moncler s strategy is aimed at the control of the distribution chan- nel, not only retail but also wholesale and digital, where it operates through a direct organisation.

As of 31 December 2021, Moncler s mono-brand distribu- tion network consisted of 64 wholesale stores (shop-in-shops, SiS), an increase of one unit compared to 31 December 2020 and of 237 retail directly operated stores (DOS), an increase of 18 units compared to 31 December 2020, including the openings

2 Based on Orders Value. 3 Including free standing stores, concessions, travel retail stores and factory

outlets.

DOWN

Throughout its history, down has been at the heart of Moncler outerwear, and has gradually come to be identified with the Brand itself.

A combination of lengthy experience and continuous research and development has enabled the Company to gain unique expertise in this area, both in terms of knowledge of down as a raw material and of the garment manufacturing process.

Moncler ensures that all its suppliers comply with the highest quality standards. Over the years, these standards have been and indeed remain a key point of product differentiation: only the best fine white goose down is used in the Brand s garments.

Fine-down content and fill power are the main indicators of down quality. Moncler down contains at least 90% fine-down and boasts a fill power equal to or greater than 710 (cubic inches per 30 grams of down), resulting in a warm, soft, light and uniquely comfortable garment.

Each batch of down is subjected to a two-step checking procedure to assess its compliance with 11 key parameters, set in accordance with the strictest international standards and the stringent quality requirements imposed by the Company. In 2021, a total of around 1,000 tests were performed.

But for the Company, quality is more than this: the origin of its down and the re- spect for animal welfare are also fundamental for Moncler. When sourcing and pur- chasing raw materials, Moncler considers these aspects as important as the quality of the material itself. Since 2016, all Moncler down is certified with the DIST internal protocol.

of the second flagship store in Milan, in Galleria Vittorio Emanu- ele II a new place for the community where the experience be- comes immersive involving all the senses including taste and in Chengdu Swire characterised by a new and young retail con- cept with spaces contaminated by other worlds such as that of art thanks to the collaboration with the emerging Chinese artist Gan Jian to create an audio-visual work of art exclusively for the store. Moreover, during the year, some of the existing retail stores were relocated in new spaces with a larger surface, including the en- largement of the iconic boutique in Rome in Piazza di Spagna and the relocation of the flagship store in Los Angeles in the presti- gious shopping neighbourhood of Beverly Hills.

31/12/2021 31/12/2020 Net Openings FY 2021 Asia 117 104 13 EMEA 84 80 4 Americas 36 35 1 RETAIL 237 219 18 WHOLESALE 64 63 1

During the year, Moncler accelerated on digital transformation and, in line with an increasingly integrated digital vision aimed at personalising the experience and strengthening the relationship with the customer, completed the gradual internalisation project of the e-commerce (.com) started in 2020 in the United States and Canada and ended in 2021 with EMEA in May, Japan in July and China in October. Furthermore, in May the new .com platform with a renewed concept was launched where the experience is at the centre of an ever more tailored customer journey inspired by the world of entertainment, guaranteeing fluid navigation with cus- tomised contents and services including product personalisation features.

MONCLER MARKETING AND COMMUNICATION Our purpose inspires us to keep changing, whilst always retain- ing the essence that makes us unique. It s our reason to be: to un- leash the extraordinary in everybody. Remo Ruffini, Moncler Chairman and CEO.

Moncler is a company born in the mountains. Born to pro- tect, to keep warm. Born to face extremes. A company whose dynamic nature makes it impossible to stand still. So when the fashion world accepted only a two-season calendar as a market- ing template, Moncler had to break the mould. Since the launch of Moncler Genius in 2018, the Brand has created the fashion in- dustry s most compelling answer to a post-internet world where consumer expectation is shaped at the speed of Instagram. It has pushed for higher peaks, brought other voices in, and embraced its brave nature, always with great rigour.

The marketing of Moncler has been revolutionised: monthly collections launches by visionary designers are transmitted from the feed straight to the home with dedicated editorial plans. This approach has demanded absolute coordi- nation between all departments and functions within market- ing and in the whole Company.

2021 saw a further evolution of the Moncler Genius proj- ect, which for the first time connected worlwide through MON- DOGENIUS: an immersive digital experience into the culture of the Brand. MONDOGENIUS took global communities of Mon- cler on a journey through five cities, sharing the creative vi- sions of 11 designers, all under one show. Opening the event was, live from Milan, Moncler s global partner and 15-time GRAMMY® Award-winning singer, songwriter and produc- er Alicia Keys, who interacted with singer and actress Victoria Song, who was live herself from Shanghai. The show streamed via a dedicated microsite (https://mondogenius.moncler.com) as well as more than 30 platforms including social media, e-tailers, websites and media outlets, giving all audiences the possibility to access this extraordinary journey that, by uniting communities and generations from all over the world, created a reason to belong to the Moncler universe. MONDOGENIUS achieved exceptional engagement results with 510 million vid- eo views and a reach of 4.2 billion.

Moncler Genius has attracted a new community of Gen-

BOARD OF DIRECTORS REPORT34 35 MONCLER GROUP

2021BOARD OF DIRECTORS REPORT