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Moncler places great importance on the selection and recruitment of personnel, as well as on their performance evaluation and engagement, and is steadfast in its belief that creating long-term value is closely linked to human capital. Moncler seeks to identify and attract the best talent, people who stand out, not only for their strong technical, professional, and management skills, but also for their personal qualities, energy, flexibility, identification with Group values and, last but not least, their positive and effective interpersonal style and ability to adapt to an ever-changing environment. Driven by the Group’s growth and geographic expansion, the recruitment process is increasingly focusing on people with an international profile and a broad and

diverse cultural and educational background, as well as on expertise and experience suited to meet the Group’s future challenges.

The interest drawn by the Company and its appeal as an employer are reflected in the significant number of job applications it receives every year. In 2019, about 21,000 résumés were submitted via the corporate website, in line with the trend in previous years. The recruitment process follows the procedure set out in the Personnel Search and Recruitment Policy, also with the aim of enhancing equal opportunities and empowering internal resources. In 2019, Internal Job Posting was also launched globally. Through the corporate intranet MONCamp, interested employees can apply

for open positions that best match their profile, experience and aspirations. The system contributes to spreading a culture of global mobility within the Group, and represents a fundamental lever of job rotation, international mobility and development policies. In the initial start-up phase, approximately 7% of positions at Italian corporate offices were covered by Internal Job Posting.

COLLABORATIONS WITH ACADEMIA

Moncler has long-standing relationships with the best training colleges, universities and business schools, and collaborating with them is of great importance to the Company. Joint initiatives include internships for students and new graduates, project development, participation in work groups, and visits to Company premises. Employer branding activities are a great opportunity to showcase the Company and its continual developments, increase its appeal, and reach out to a large number of talented people. Every year, Moncler offers various internships to young people with high potential, giving them the opportunity to experience the Company and its business as they train. In 2019, about 100 internships were offered in Italy, ranging from alternating school-work programmes to curricular and extracurricular internships. With regard to curricular and extracurricular

internships, 30% of those held in 2019 led to actual employment contracts. Also in 2019, managers from the Pattern Making department continued their work with students on the Modelling and Tailoring master’s programme at the Istituto Secoli in Milan, supporting them in the various stages of developing a men’s collection, from sourcing materials and accessories up to the final fashion show.

In 2019, Moncler consolidated its partnership with the Milan University Cattolica del Sacro Cuore for its master’s in Luxury Goods Management (EMLUX). As part of this initiative, members of Moncler’s management hold courses on omnichannel and digital subjects, present business cases, and propose project activities. Finally, in 2019, Moncler organised a series of meetings with students from partner schools, including workshops, business cases, and

recruitment sessions, with programmes tailored to each school. The main institutions with which the Company collaborated were: Glion Institute of Higher Education, Les Roches International School of Hotel Management, Ecole Hotelière de Lausanne, Cattolica University, Bocconi University, Ca’ Foscari University, the University of Padua, the Polytechnic of Milan, Istituto Secoli, European Institute of Design (IED), Domus Academy, CUOA, Istituto Marangoni, NABA and the Milan Fashion Institute.

TRAINING

Training plays a key role in the development of talent. It is an important tool for enhancing and strengthening individual skills while also disseminating the Company’s values and strategy, thus supporting cultural and organisational growth.

In 2019, a sum of over 886,000 euros was invested in training and over 103,000 hours of training (about 7% more than in 2018) were delivered to some 4,600 employees, of whom 71% were women. Of the employees who participated in training activities, up 18% from 2018, 57% were white-collars, 25% workers, 10% professionals, 6% managers, and 2% executives and senior executives, in line with the breakdown of employees by professional categories.

The average hours per capita, amounted to 23, in line with 2018. In particular, the average hours per capita for women were 25, while those for men were 18.

Training hours were provided through classroom activities in 90% of cases. Although e-learning still accounts for only 10% of the total, it has increased compared to previous years, thus confirming the investment that the Company is making in training also in terms of diversification of methods and opportunities of learning. There was a greater variety of activities than in the past, with an increase in managerial training and the launch of language courses. In general, the number of hours dedicated to vocational training accounted for 69% of the total, while those on health and safety amounted to 22%. In 2019, around 400 people received human rights training, for a total of 2,100 hours. In particular, in America, a course was provided on the subject of sexual harassment in the workplace, which mainly involved the sales force, while a programme on cultural awareness was launched in corporate offices in Italy. The cultural awareness sessions were developed to promote respect for geographical diversity and provide guidelines on correct and effective conduct and communication methods to be followed with colleagues from different cultures. The first session focused on Chinese culture. Ended in April 2019, MONCampus, the first internal Academy programme, is aimed primarily at young talents of the Italian corporate offices and is managed by internal teachers to increase knowledge about the Moncler value chain. Students and trainers took part in lectures, learning trips and project work for twelve months, focusing

on strategic topics, including sustainability and the corporate agenda. During the closing ceremony, the students presented their project work to top management, who committed to financing the most effective ones. The first edition of the Moncler Academy for Technical Excellence (MATE) was also held in 2019. In collaboration with some schools in Veneto and with the support of a specialised partner, a specialised training project dedicated to sample production was launched, involving 80 fifth grade students during the presentation phase, from which 10 were selected and invited to the Company, receiving 248 hours of training, of which 200 on the job. In parallel, 3 internal tutors were trained with 12 hours of Train the Trainers training. The course started in April and ended in October. This project was a pilot for a format that the Company will extend to other technical activities over the next few months and years, including prototyping, quality and production controls.

In line with the Company’s digital development, training is aimed at experiences that blend the traditional classroom with new digital technologies, providing for effectiveness and practicality, as well as greater and faster dissemination. In fact, from 2018, some training initiatives have been launched only in e-learning mode. Globally, courses on the new GDPR (General Data Protection Regulation) and Cyber Security were provided to all employees, as well as a series of product-specific courses. For employees in Italy, an online course on the Organisation, Management and Control Model was also provided, with a specific focus on anti-corruption, and one on the Code of Ethics, specifically to understand and share Moncler’s principles and guiding values and including human rights aspects.

Moncler also further consolidated its partnership with the Italian association Valore D, giving some employees at its corporate offices in Italy the opportunity to participate in a number of in-house courses and workshops. These courses were designed to promote organisational models and develop a corporate culture of collaboration and dialogue between different generations, genders, and cultures, as well as to facilitate the use of innovative and flexible tools devised to increase the wellbeing and motivation of the staff involved. The courses were organised by professional category. The training aimed at

young talent focused on strategic intelligence, how to approach the career growth path for those just starting their working life and the development of entrepreneurial spirit for young women. For middle management, the courses focused on work life balance, when taking on roles with increasing responsibility. Courses were also provided on professional growth for female middle managers, through inter-company means. Finally, managers were involved in training activities focused on managing complex and diversified teams.

Throughout the year, Moncler continued to offer training programmes at both the corporate offices in Italy and the production site in Romania. These were mainly devised to strengthen and spread a culture of personal health and safety, raise awareness of risks in the workplace while providing information on risk identification and management, and encouraging responsible behaviour among all employees. The Company provided approximately 22,000 hours of training on health and safety.

Since 2018, the Pattern Making School was created at the production site in Romania, with the aim of enhancing the skills of the Company’s staff and thus strengthening some departments, such as pattern making, CAD, development and placement. The school yields clear benefits in economic and time-to-market terms, as well as in terms of staff loyalty and employment opportunities. In 2019, the training, which began in March 2018, of 6 Romanian students finished and they were taken on by the children’s department in March. A new training programme on women’s outerwear began for another 10 students, and in July a course on the use of CAD began.

At retail level, instead, Moncler continued to invest in a number of initiatives aimed at boosting the professionalism of sales personnel. Training programmes covered multiple topics, ranging from technical product knowledge (of both raw materials and the production processes for footwear, handbags, and sunglasses), to understanding the Brand and its history and the development of interpersonal and managerial skills, with a view to promoting a service model and sales style that make the shopping experience unique and distinctive.

TRAINING INVESTMENTS
TYPE OF TRAINING
REMUNERATION

Moncler’s remuneration system is designed to attract, motivate, and retain people with the professional skills required to grow the Company’s business. It is based on the principles of fairness, equal opportunities, meritocracy and competitiveness on the market.

As a listed company, Moncler’s Remuneration Policy for Group directors and key executives is in line with the recommendations set forth in the Corporate Governance Code for Italian Listed Companies issued by Borsa Italiana. The Policy was defined with contributions from the Human Resources Department, the Nomination and Remuneration Committee, Board of Directors, and the Group’s shareholders at the Annual Shareholders’ Meeting (see the Report on Remuneration, available in the “Governance” section at www.monclergroup.com).

Remuneration for Company employees takes into consideration specific criteria, including market standards, internal fairness, characteristics of roles and responsibilities, and individual expertise, with every effort made to ensure the highest levels of objectivity to prevent any form of bias or discrimination.

For several years now, Moncler has implemented an annual salary review process based on two principles: performance and talent. Based on annual assessments and business results, as well as potential shown, managers can propose salary raises for their employees. These raises are then discussed in steering committees. The approved proposals take into account individual merit, the contribution to creating value for the Company, fairness and competitiveness on the market.

In every country in which it operates, Moncler offers entry-level salaries equal to or above the minimum wage provided for by law or collective bargaining agreements, with no substantial difference between

genders, as confirmed by the findings of an analysis conducted in 2019 on the entire Group workforce, including the production site in Romania. The spread of a global mobility culture within the Group led the Company to develop the Global Mobility Policy in 2019, which defines the corporate commitments in ensuring fair, competitive, incentivising and coherent financial packages for Expatriates. The salary structure of 94% of professionals, managers, executives and senior executives includes both fixed and variable components, balanced on the basis of the contribution to the Company’s strategic objectives. The variable component may be short-term (Management By Objectives for store managers and corporate employees, sales commissions for retail personnel, at both team and individual level, and performance bonuses for people employed at the corporate offices in Trebaseleghe, Padua) or comprise long-term incentives. The Management By Objectives (MBO) system focuses mainly on quantitative targets related to overall Company performance (including EBITDA) and to specific functions and roles. These quantitative targets are mainly economic and financial in nature, whereas the qualitative targets relate to strategic and operational activities and projects.

As an incentive to achieve outstanding results, there are mechanisms in place to reward over-performance, with higher bonuses offered when performance targets are exceeded by a certain threshold.

Within the MBO system, social and environmental targets related to the fulfilment of the Sustainability Plan are set for everyone involved in the implementation of the plan itself. Likewise, responsible sourcing objectives are assigned to some key roles in the Company. All members of the Strategic Committee, including the Chairman and the CEO, also have a percentage of their

MBO linked to the achievement of sustainability objectives for the Company.

Finally, to empower managers in improvement activities related to the results of the people satisfaction survey, MONVoice, the MBOs set for 2019 included an indicator to evaluate the improvement of the result in certain areas of the survey, considered particularly relevant for the Company, such as employee engagement and development opportunities.

Until today, Moncler has relied on Performance Share plans as a long-term incentive system for roles considered key, up to managerial level. These plans enable linking the incentives for Group managers and key staff to the actual performance of the company, steering people towards strategies that focus on medium and long-term targets, aligning the interests of beneficiaries with those of shareholders and investors and developing policies to attract and retain talented professionals.

Three stock option plans and two performance share plans have been introduced since the Company’s listing on the stock exchange in 2013:

Stock Option Plan 2014-2018 Top Management and Key People, for senior management and key officers in the organisation;

Stock Option Plan 2014-2018 Italian Corporate Structures, for all employees at Italian corporate offices with a permanent employment contract;

2015 Performance Stock Option Plan, for key officers in the organisation;

2016-2018 Performance Share Plan, for senior management and key officers in the organisation;

2018-2020 Performance Share Plan, for senior management and key officers in the organisation.

See also the 2019 Report on Remuneration, available in the Governance section at www.monclergroup.com.

BENEFIT

Remuneration packages offered to employees feature a wide range of benefits, from life insurance and pension plans to information and prevention programmes aimed at improving the wellbeing of people. Moncler offers employee benefits based on their professional category, irrespective of type of employment contract (permanent/temporary, full-time/part-time). Benefits are provided according to international guidelines, with possible variations depending on country-specific policies. In Italy, the Corporate Welfare Plan was continued. It is aimed at all staff, including managers, working at Italian corporate offices under a permanent contract or apprenticeship contract, effective at 31 December each year. This two-year initiative, devised to ensure greater care and attention to the wellbeing

of Moncler’s true strategic asset, namely its people, provides for a wide range of benefits and services, some of which are also offered to employees’ families, including the reimbursement of school expenses, vouchers, leisure and sports activities, and wellness packages, as well as co-pay arrangements for supplementary pension funds.

Since May 2018, Moncler has been a member of Sanimoda, a supplementary healthcare fund for workers in the fashion industry in Italy, which provides healthcare services complementary to those of the Italian national health service. In 2019, a total of 710 employees registered with the fund.

During the year, the Company’s system of welfare initiatives included nurseries and infant schools for the children of employees at the corporate offices in Trebaseleghe,

Padua, the cost of which was covered entirely by the Company. The chosen schools offer the opportunity to enrol up to 27 children of Moncler employees. Moreover, Moncler has committed to creating a nursery school for the children of employees at the production site in Romania, by 2022, which can accommodate up to 60 children.

Finally, since 2018, a benefits plan has been in place for UK and Korean employees, providing access to a range of value-enhancing goods and services, including childcare, computer purchasing, legal advice and health and wellness packages.

MAIN BENEFITS OFFERED
DEVELOPMENT

Identifying and retaining the best talent is of crucial importance. In order to enhance and develop that talent, for some years now, Moncler has adopted the PIUMA Leadership Model, a performance assessment system, which measures the skills people use to achieve their set targets. Based on a solid methodology, it measures performance by assessing the level of knowledge, problem solving and impact on the business, then comparing it with the standard expected for the specific role. This helps verify how well employees fit into their role, while identifying potential training and development plans.

The assessment is underpinned by a series of values that everyone in the Company is expected to adopt and promote: integrity, passion, identification with the Company’s culture, the ability to establish relationships built on trust, global vision, performance excellence, innovation and talent development.

Conceived to improve business performance, the assessment system has a medium/long-term perspective, and is thus one of the key processes for managing and developing people, identifying succession plans, and retaining the best talent within the Company. As such, it is the basis of the

salary review process. The assessment process requires managers to appraise their respective teams annually, using a digital platform developed in 2017. Assessments are then reviewed and finalised by a committee of senior executives, who compare and calibrate them to ensure objectivity and fairness. The final step of the process involves an open discussion on the assessment between manager and employee, addressing the results achieved and the areas identified for improvement.

The assessment process applies to all organisational roles worldwide. The process has not yet been extended to the production site in Romania.

In 2019, 2,354 employees were assessed, 7% more than the year before, accounting for 92%10 of the eligible workforce.

Since 2018, has been introduced the self-assessment module in the performance assessment process, to enable employees to compare their perception of their performance with the Company’s, thus making the sharing phase between manager and employee more productive.

In 2018, the PIUMA Leadership Model for the retail channel was also redesigned. The model is based on the same

principles applied to the corporate model, but is adapted to the specific aspects of the retail context. Again, the process includes a self-assessment stage. During 2019, the entire population, both corporate and retail, was assessed and assesses itself on the basis of a single model applied in two different ways.

In 2019, the Company launched a study for the adoption of a performance assessment system model for employees at the production site in Romania, with methods that are consistent with the needs of such a significant population in terms of numbers and specificity.

Moncler firmly believes that a skilled and competent workforce can enhance the value of its human capital and contribute to increasing employee satisfaction, thus improving the Company’s overall performance. As part of this effort, the Group promotes specific employee development programmes tailored to the needs of the Regions, the various corporate functions and distribution channels.

EMPLOYEE ENGAGEMENT

Moncler sees employee dialogue and engagement as key to fostering the motivation and satisfaction of its people, thus creating strong long-term relationships. To this end, the Engagement & Internal Communication department, within the People & Organization function, is tasked with developing strategies, actions and tools to engage personnel, fostering a company culture.

Use of the corporate intranet site MONCamp has been consolidated over the years as a tool to share information and news, and enhance networking among colleagues. The MONCamp news section is based on a specific editorial plan, and features news about products, events and people, as well as interviews with employees from different functions and organisational levels, thus enhancing knowledge, sharing, and the sense of belonging to the world of Moncler. Consolidated and enhanced from a ‘social’ perspective, the platform has become a crucial element of communication among employees, particularly those in retail, who use it to share sales experiences, build client relationships and promote local events.

For the second year in 2018, the Group conducted the people satisfaction survey MONVoice, which aims at offering a snapshot of the Company’s positioning in terms of employees’ engagement and employees’ enablement. By analysing the individual elements of each of these aspects, Moncler was able to identify both its strengths and the areas to be addressed to improve its overall positioning. The analysis highlighted a number of clear areas of excellence, including “pride in being a part of Moncler”, “quality and attention to clients”, and “confidence in its own manager”. One of the main suggestions received through the survey was in particular “collaboration and communication between departments.”

In order to start a process of improvement

for people starting from the people themselves, in 2019, the results were immediately shared worldwide through dedicated newsletters for the corporate population and, at the same time, more indepth meetings were held with both the Chairmen and Heads of the People & Organization functions of each Region and, at the corporate headquarters, with all the managers of the various corporate functions. These results sharing activities were fundamental within the process in order to deepen the understanding of the results emerging at country and individual function level, which subsequently led to the definition of improvement actions and projects.

In December 2019, the third edition of MONVoice was launched, involving 3,640 people worldwide with a questionnaire of 45 questions reaching an employee engagement rate of 60% (5% more than in 2017). Among the main areas of excellence that emerged were: “quality and attention to clients” and “clear strategic direction”. Collaboration and communication between departments continue to be areas to be strengthened.

Moncler believes that employee opinion surveys are useful not only to have a clear picture of employee satisfaction levels, but also to identify corrective measures to meet the expectations and needs of the entire organisation.

In 2019, the Thank Boss It’s Friday! breakfast was also launched, allowing a group of employees taking part voluntarily to share insights and offer suggestions to top management with a view to open dialogue.

Steadfast in its belief that company volunteering is not only an instrument of social responsibility, but also a means of creating a culture that is attentive to diversity and solidarity, at the end of 2018 Moncler presented an articulated volunteering plan to the Italian employees at its corporate offices. The plan, which began in Italy in January 2019,

involved a collaboration with six non-profit organisations for activities tranging from the environment to childcare. Each employee can take advantage of two days a year to devote to the proposed volunteer activities and will also have the opportunity to choose from different organisations, different types of activities and different days. In 2019, employees participated in various voluntary activities for a total of approximately 3,200 hours worldwide.

Also in 2019, the Korean team participated with an entire day’s work in the International Coastal Cleanup Day event, an international day dedicated to coastal cleaning, during the World Environment Day, led by the motto “Our Ocean, One Future – Moncler, We Care”. Before starting the volunteer activity, an orientation and awareness session was organised on the seriousness of pollution, plastic and suffering of marine animals, which raised everyone’s awareness of the importance of reducing disposable products.

In China, Moncler employees took part in voluntary initiatives with the Rainbow Rain Children’s Intelligence Training Centre in Shanghai to raise awareness and spread information about the main issues relating to autism, increasing knowledge and skills to effectively deal with the disorder and support families.

In 2019, the Japan team took part in a volunteer activity promoted by the Food Angel organisation in Hong Kong, embracing the “Waste Not, Hunger Not, With Love” mission against food waste. The organisation is committed to collaborating with companies from different sectors to use food surpluses in preparing food for the most needy. Again, in Japan, employees were involved in the initiative to clean the area around the Aoyama store following the “Vogue Fashion’s Night Out”.

MAKE: MONCLER ACADEMY FOR KNOWLEDGE AND EXCELLENCE

MONCampus highlighted the great potential of training opportunities, which prompted the Company to invest resources in putting togeth – er a proper Academy project: MAKE, Moncler Academy for Knowledge and Excellence. It is a learning ecosystem for the development of people in terms of knowledge and skills, but also in terms of mental approach and ways of working. In a constantly growing competitive global con – text, which is being accelerated by technology, it is necessary to learn how to act quickly, in an agile way and with high adaptability. MAKE’s objective is to empower people to successfully face this scenario, maintaining Moncler’s level of competitiveness and fuelling the innovative spirit that has always set it apart. Beginning with the needs of the business, MAKE’s objective is to build a learning culture where, on the one hand, people are responsible for their own development and able to identify their needs with leaders being the sponsors of this development and on the other, develop the ability to learn from their daily work, to under – stand that “learning is in everything I do”.

To achieve this ambitious result, MAKE will have numerous programmes, some already starting at the beginning of 2020, as well as a technical infrastructure that meets the project objectives. To ensure that the training themes are a re – flection of the business needs, a fundamental programme features top management as the main protagonist. Through various steps, top management is urged to identify the needs, in terms of knowledge and skills, required to achieve the medium and long-term objectives that the company has set itself in the business plan. Starting from this, strategic and leader – ship training programmes for the managerial population will be developed. MAKE will also include team coaching pro – grammes, which will involve both functional and project teams, who will be encouraged to learn from solid actions, stopping and rework – ing them where necessary with the support of a facilitator. There will be a further functional level of learn – ing. Starting from the existing situation, we will invest in developing the necessary knowledge to increase the level of competence of each function, once again to allow the

achievement of the set objectives. With the experience of MONCampus, the Learn – ing & Development team learned how pooling together knowledge and skills is of great val – ue for those who learn, but also for those who share their experience. For this reason, one of the central programmes of the project will be the MakersLab: Subject Matter Experts will share their knowledge on specific activities, processes and tools with others. Meet and Talks, lectures, workshops and webinars are some of the ways this will be carried out. To enable all this, a Digital Learning Environ – ment is in the planning stage. This will bring more traditional course management together with the right level of innovation and flexibility to support the Moncler learning community.

NEW WAYS OF WORKING

The context in which the Company operates is characterised by great speed and constant change, which has a significant impact on people’s behaviour and, consequently, on the way they work. With this in mind, Moncler launched the New Ways of Working project. Beginning with employee requests in the MONVoice survey, Moncler focused on defining an activity plan to respond to emerging needs on the issues of flexibility, improving the effectiveness of activities and processes, and a better work life balance.

All employees then took part in a detailed survey, which highlighted some priority areas including the management of human resources, use of digital technologies, organisation and layout of spaces, conduct and leadership styles. Once the main development areas of the project were identified, a remote working pilot was begun, and productivity indicators were identified to measure the increase in terms of efficiency, with respect to the new organisational methods and to enhance existing

technology, in support of new interaction methods. At the same time as the launch of the New Ways of Working project, the Milan office (via Solari) refurbishment began, to create new spaces that would facilitate the new ways of working, including open spaces, modular meeting rooms and spaces for individual activities. The project will continue in 2020, with an experimental phase assessment and any deci – sions to be developed.

INVOLVEMENT IN PREVENTATIVE INITIATIVES

The year 2019 was rich of initiatives for employees at corporate offices in Italy, with several initiatives taking place, such as marathons. On 6 and 27 October, Moncler and its employees participated in two events of major impor tance for cancer research and prevention, the Milan Pink Parade and the Venice Marathon.

The Pink Parade was held in collaboration with the Umberto Veronesi Foundation and saw more than 8,000 people take part, including a team of Moncler runners. For the occasion, Moncler employees had the opportunity to receive free breast screening, in an initiative offered by the mobile clinic of the Italian Diagnostic Centre.

While the Venice Marathon was held in collaboration with the association Piccoli Punti for melanoma prevention and saw the presence of a total of about 10,000 participants, including more than 130 Moncler runners.

NOTE

6 Data refer to all employees, also including who left the Group, involved in at least one training course.

7Includes the Moncler Corporate Welfare Plan, as well as kindergartens and other childcare services.

8Includes benefits such as a Company car, transport allowance or accommodation.

9Includes free admission to gyms, fitness courses and other initiatives.

10Percentage calculated on the total workforce with permanent contract at 2018, which served as the benchmark for the 2019 assessment process.

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