Moncler - Annual report 2021

INTRODUCTION

In accordance with Article 40, paragraph 2 bis of the Legislative Decree 127 of 09/04/91, the Parent Company has prepared the Directors Report as a single document for both the separate ﬁ nancial statements of Moncler S.p.A. and the Group consolidated ﬁ nancial statements.

PERFORMANCE OF THE MONCLER GROUP

All consolidated performance and balance sheet ﬁ gures reported and discussed below include the ﬁ scal year 2021 results for the Moncler brand and the results consolidated from 1 April for the Stone Island brand, net of the impacts on the Income Statement of the acquisition of the latter. These impacts refer to the allocation of part of the excess price to the order backlog that generated in the year a EUR 20.2 million amortisation and the costs related to the acquisition equal to EUR 3.6 million.

The table below shows the details of how the price consideration, net of the acquired assets, relating to the acquisition of Stone Is- land (Purchase Price Allocation - PPA) was allocated.

STONE ISLAND PURCHASE PRICE ALLOCATION

(EUR/000) Total price 1,150,000 Net equity value acquired (129,015) EXCESS PRICE 1,020,985 Trademark 775,454 Order backlog 20,226 Deferred Tax assets (221,995) Goodwill 447,300 PURCHASE PRICE ALLOCATION 1,020,985

Below is the reconciliation statement of the adjustments to the Consolidated Income Statement for the FY 2021 due to the impact of the Purchase Price Allocation (PPA) and the other costs associ- ated with the transaction.

(EUR/000) Fiscal Year % on revenues PPA and transaction adj Fiscal Year % on revenues 2021 reported 2021 adj REVENUES 2,046,103 100.0% - 2,046,103 100.0% YoY performance +42% +42% GROSS MARGIN 1,566,906 76.6% - 1,566,906 76.6% Selling expenses (608,495) (29.7%) 20,226 (588,269) (28.8%) General & Administrative (237,109) (11.6%) 3,619 (233,490) (11.4%) expenses Marketing expenses (142,082) (6.9%) - (142,082) (6.9%) EBIT 579,220 28.3% 23,845 603,065 29.5% Net financial (21,608) (1.1%) - (21,608) (1.1%) EBT 557,612 27.3% 23,845 581,457 28.4% Taxes (164,059) (8.0%) (6,011) (170,070) (8.3%) Tax Rate 29.4% 29.2% Non-controlling interests (20) (0.0%) - (20) (0.0%) NET INCOME 393,533 19.2% 17,834 411,367 20.1%

ECONOMIC RESULTS Following is the consolidated income statement for FY 2021, FY 2020 and FY 2019.

(EUR/000) FY 2021 adj % on revenues FY 2020 % on revenues FY 2019 % on revenues REVENUES 2,046,103 100.0% 1,440,409 100.0% 1,627,704 100.0% YoY performance +42% -12% +15% GROSS MARGIN 1,566,906 76.6% 1,089,634 75.6% 1,265,280 77.7% Selling expenses (588,269) (28.8%) (463,583) (32.2%) (488,759) (30.0%) General & Administrative expenses (233,490) (11.4%) (173,444) (12.0%) (171,570) (10.5%) Marketing expenses (142,082) (6.9%) (83,786) (5.8%) (113,152) (7.0%) EBIT 603,065 29.5% 368,821 25.6% 491,799 30.2% Net financial (21,608) (1.1%) (23,302) (1.6%) (21,072) (1.3%) EBT 581,457 28.4% 345,519 24.0% 470,727 28.9% Taxes (170,070) (8.3%) (45,153) (3.1%) (112,032) (6.9%) Tax Rate 29.2% 13.1% 23.8% Non-controlling interests (20) (0.0%) (15) (0.0%) (10) (0.0%) NET INCOME 411,367 20.1% 300,351 20.9% 358,685 22.0%

CONSOLIDATED REVENUE In 2021, Moncler Group reached consolidated revenue of EUR 2,046.1 million up 44% cFX compared to the same period of 2020 and +28% cFX compared to 2019. 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. As- suming Stone Island consolidated since 1 January 2021, Group revenue would have been equal to EUR 2,134.2 million, with a con- tribution from the Stone Island brand equal to EUR 310.0 million.

In the fourth quarter the Group reached revenue equal to EUR 868.9 million up 30% cFX compared to the fourth quarter of 2020 and up 40% cFX compared to 2019. This result includes Moncler brand revenues equal to EUR 803.3 million, and Stone Is- land brand revenue equal to EUR 65.6 million.

In order to understand the performance of the business ex- cluding the effects of the Covid-19 pandemic, we compare in the fol- lowing paragraphs 2021 revenues with pre-pandemic results (2019).

MONCLER GROUP: REVENUE BY BRAND

GRUPPO MONCLER Fiscal Year 2021 Fiscal Year 2020 % vs 2020 % vs 2019 EUR/000 % EUR/000 % rep FX cFX cFX Moncler 1,824,166 89.2% 1,440,409 100.0% +27% +28% +14% Stone Island 221,936 10.8% - - - - - REVENUES 2,046,103 100.0% 1,440,409 100.0% +42% +44% +28%

ANALYSIS OF MONCLER BRAND REVENUE In 2021, Moncler brand revenues were equal to EUR 1,824.2 mil- lion, up 14% cFX growth compared to 2019. In the fourth quar- ter, the Brand revenue amounted to EUR 803.3 million increasing +30% cFX compared to Q4 2019. This strong and constant ac- celeration of the Brand throughout 2021, especially in the fourth quarter, was driven by the effective implementation of the busi- ness strategies, the success of the collections and the develop- ment of the DTC channel, in particular the online direct.

MONCLER: REVENUE BY GEOGRAPHY

MONCLER Fiscal Year 2021 Fiscal Year 2020 % vs 2020 % vs 2019 EUR/000 % EUR/000 % rep FX cFX cFX Asia 894,817 49.1% 717,860 49.8% +25% +26% +27% EMEA 624,469 34.2% 501,883 34.9% +24% +25% -3% Americas 304,881 16.7% 220,666 15.3% +38% +43% +20% REVENUES 1,824,166 100.0% 1,440,409 100.0% +27% +28% +14%

In 2021, revenues in Asia (which includes APAC, Japan and Korea) were EUR 894.8 million, +27% cFX growth compared to 2019. In the fourth quarter, Asia grew 39% cFX compared to 2019, acceler- ating thanks to the continued excellent performance of China and Korea and the growth of Japan. In particular, the Chinese main- land continued to post almost triple-digits revenue growth also in the fourth quarter. Korea continued to record strong results, out- performing the region s average, while Japan returned to record double-digit growth rates, as opposed to previous quarters, also thanks to the easing of pandemic containment measures.

In EMEA, revenues in the fourth quarter continued to accel- erate, surpassing pre-pandemic levels by 16%. All channels and countries contributed to this result, and in particular the direct on- line channel continued to benefit from strong double-digit growth rates. Physical retail also recorded positive performance, thanks to the strong and growing demand of local customers. This per- formance was achieved despite the continued lack of tourists, es- pecially those outside the region, which have historically been a very important driver for the luxury goods sector. The wholesale channel also recorded solid growth. At country level, growth was driven in particular by the German and Nordic markets, but with a marked improvement in all countries, starting from Italy, which in the year generated about a quarter of the revenues of the region. Total EMEA revenues for the year amounted to EUR 624.5 million (-3% cFX compared to 2019).

Americas registered a sharp acceleration in the fourth quar- ter up 31% cFX compared to the last quarter of 2019, bringing total

64 65 MONCLER GROUP

2021BOARD OF DIRECTORS REPORT BOARD OF DIRECTORS REPORT