At the same time, the Company is enhancing its control and doors selection on the wholesale, a channel of strategic importance for Stone Island, with the aim of further elevating the positioning of the Brand itself.

In FY 2021, the wholesale channel accounted for 75% of revenues while the remaining 25% was generated by direct- ly managed stores and the online channel. As of 31 Decem- ber 2021, the Stone Island s mono-brand distribution network consisted of 58 wholesale mono-brand stores (shop-in-shops) and 30 retail directly operated stores (DOS). Five DOS were opened during the year, including the Paris Galeries LaFay- ette, New York Bloomingdale s and Shanghai iAPM stores.

31/12/2021 30/06/2021 Asia 4 4 EMEA 20 20 Americas 6 6 RETAIL 30 30 WHOLESALE 58 56

STONE ISLAND MARKETING, COMMUNICATION AND DIGITAL MEDIA The image is the product , is the absolute protagonist in every marketing activity, starting from communication.

Over the years, the Brand has created a strong and rec- ognisable iconography entrusted to the multiculturalism ex- pressed by the faces of the models and the direct photo shoot on a white background where the garments are perfectly legi- ble.

The detailed description of the fabric and the treatment of each individual garment are also present in the advertising campaigns.

Stone Island s tone of voice is direct and informative. Without adjectives, it is closer to the rigour of industrial design than to the world of fashion and lifestyle: a solid brand visual identity is also expressed in the videos.

The product remains at the centre not only of marketing activities but also of installations, special projects in flagship stores and pop-ups with clients of international importance.

Both website and social media reflect the clean and in- dustrial aesthetics of Stone Island.

The social media of reference is Instagram, flanked by the main platforms: Facebook, Twitter, Pinterest, YouTube and Vimeo, in addition to Chinese social media: WeChat, Weibo and Little Red Book.

Stone Island has a very active fan base that interacts in- tensely with the official account and that promotes the Brand through many spontaneous fan-based groups on social net- works.

Over time Stone Island got closer to the music world, an important brand s communication tool with STONE ISLAND PRESENTS, since 2015, a project for international music events featuring high profile talents from the electronic music scene and more and with STONE ISLAND SOUND, founded in 2020, a project that supports contemporary music productions with the aim of promoting local communities while building an ideal world sound map.

STONE ISLAND THE COLAB The common thread that runs through the history of Stone Island s collaborations is that they take place with mutual respect between collaborators. This was the case for the ante litteram collabora- tions launched already in 2019, which the Company had with Adi- das and New Balance; further strengthened with other important collaborations with Supreme from 2014 to today, Nike from 2016 to 2019, Head Porter from 2015 to 2020, Persol in 2020 and from 2021, a new long-term partnership with New Balance.

BRAND PROTECTION

The Moncler Group dedicates energy and resources to safeguard- ing the value, uniqueness and authenticity of its products and to defend its intellectual and industrial property rights (IP), which are key elements for customer protection.

The Intellectual Property & Brand Protection internal depart- ment oversees administrative activities to protect the distinctive trademarks of its brands in countries and in product categories of current and potential commercial interest, as well as the forms and elements characterising the products, product s and pro- cess s inventions, and copyright.

Enforcement of IP rights and the fight against counterfeit- ing involve a wide range of activities, such as training and coor- dinating customs authorities, filing the relevant applications in the various countries, monitoring and taking investigative action in the physical and online market, removing illegal content from the web, organising raids and seizures with the local authorities in many countries and taking civil, criminal and administrative ac- tions. Although the pandemic persisted even in 2021, the Group has performed a significant number of training sessions for Italian and foreign customs officers and enforcement authorities. In par- ticular, in 2021, 30 and 17 training sessions were carried out for the Moncler brand and the Stone Island respectively.

In 2021, the constant activity to fight against counterfeit re- sulted in a total of 3,200 cases of seizure for the Moncler brand and almost 500 cases for the Stone Island brand, removing from the market approximately 143,500 and nearly 84,000 finished products respectively, as well as nearly 144,600 and 23,600 counterfeit accessories/branded items (such as logos and labels intended for the production of garments and accessories in in- fringement of the Group s IP rights).

Increasing attention is paid to the digital channel by both companies, which monitor and undertake enforcement activi- ties on search engines, marketplaces, websites and social net- works every day. For Stone Island, nearly 21,000 online auctions of counterfeit products, around 360 sites in violation and nearly 5,100 posts, accounts and sponsored advertisements on major social networks were removed during 2021. For Moncler, in 2021, almost 61,000 auctions of counterfeit products were shut down, 440 sites were obscured, approximately 23,000 links to sites sell- ing non-original products were delisted from main search engines and nearly 67,000 posts, ads and accounts promoting fake Mon- cler products through social networks were removed.

With a view to strengthening the strategy of the fight against online counterfeiting, Moncler continues its plan for the establish- ment of civil cases for counterfeiting in the United States against sellers who promote at an international level the sale of counter- feit products on digital platforms, thus giving a strong deterrent signal to counterfeiters.

Willing to increase customer protection even further, in 2021 Moncler enhanced its authenticity-traceability system, now actively characterised by a unique alphanumeric code and NFC (Near Field Communication) tag, allowing the end consumer to immediately re- ceive feedback on the nature of the garment purchased by scanning the NFC with a smartphone or tablet and keeping the verifi cation mode active on the code.moncler.com website, managed direct- ly by Moncler. Where necessary, Moncler prepares expert reports for deceived customers attempting to recover the amount paid for a counterfeit product from their electronic payment service provid- ers. Similarly, since Spring/Summer 2014, Stone Island has been using the Certilogo® technology and experience to provide clients with the opportunity to verify the authenticity of Stone Island and Stone Island Shadow Project products. Starting in Autumn/Winter 2020-2021, this technology has been also extended to Stone Island Junior garments, allowing for all garments the generation of an anti-counterfeiting report that can be used with payment institu- tions to obtain credit for the purchase of an unauthentic garment.

In addition, with the aim of raising awareness and internally training the departments most involved, the Group has formalised Brand Protection procedures aimed at regulating the verifica- tion methods of stylistic contents and communication in a broad sense to reduce risks, including the reputational one, by internally carrying out about ten dedicated training session.

BOARD OF DIRECTORS REPORT38 39 MONCLER GROUP

2021BOARD OF DIRECTORS REPORT