31 bOaRD OF DIREcTORS REPORT30 MONCLER GROUP 2022bOaRD OF DIREcTORS REPORT

The Moncler Group has, as main strategic objective, the develop- ment of its brands in an authentic way while enhancing their strong uniqueness, also through a constant contamination of diverse en- trepreneurial and managerial cultures as well as business knowl- edge and technical know-how.

The 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 embraces the search for experientiality, inclusivity, sense of belonging to a community and contami- nation of different worlds including those of art, culture, music and sport. United by beyond fashion, beyond luxury philosophy, Moncler and Stone Island intend 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 knowledge and experience with both its brands to fully capture their growth potential 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 key to sustain future growth.

FOLLOW a SUSTaINabLE GROWTH PaTH TO cREaTE VaLUE FOR aLL STaKEHOLDERS Moncler has been progressively strengthening its commitment to a long-term, sustainable and responsible growth, fully integrated into the Group s strategy and entirely embraced 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.

GROUP STRaTEGY Moncler Group s integrated and flexible business model is geared towards having direct control of the phases adding the greatest val- ue, putting the pursuit of ever-increasing quality and the satisfac- tion 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 Re- mo Ruffini acquired the Group, has always been coherent and pur- sued without compromise. Heritage, uniqueness, quality, creativity and innovation are the terms used in Moncler to define the concept of luxury .

The Moncler collections are divided into three parallel dimen- sions: 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 expressing the brand s DNa: they meet the needs of different consumers, em- bracing 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 per- formance, design and innovation. The Moncler Grenoble Fall Winter collections 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. Day namic is the Spring Summer outdoor collection developed in the name of functionality and style.

Moncler Genius One House, Different Voices collections bring together different interpretations and visions of the brand un- der the same roof , generating a new synergetic creative energy, while always remaining true to the brand s uniqueness.

Transversal to the three brand s dimensions, the footwear collection with the launch of the new family of Trailgrip products takes on from this year an increasingly significant role in the brand s product offering, being developed taking into consideration not on- ly the brand codes but also different potential usages. The Moncler collections are completed by the offering of bags, backpacks, ac- cessories and eyewear, in addition to the perfumes introduced at the end of 2021.

Moncler s team of fashion designers is divided by collection and works under the close supervision of Remo Ruffini, who sets design guidelines and oversees their consistent implementation across all collections and product categories. The Moncler Style Department is assisted by the Merchandising and Product Devel- opment teams, which help create the collections and transform the designers creative ideas into final products.

MONcLER PRODUcTION Moncler s products are designed, manufactured and distributed 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. The two main product categories, outerwear and knitwear, are partly man- aged internally and partly assigned to third party manufacturers (façon manufacturers) that take care of the cut-make-trim phase, while for accessories and shoes Moncler uses third parties manu- facturers.

The purchase of raw materials is one of the main areas of the value chain. all raw materials must comply with the highest qualitative standards in the industry, be innovative and able to of- fer 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 pur- chased mainly in Italy and Japan.

Moncler currently uses more than 370 suppliers of raw mate- rials: the top 50 suppliers account for approximately 80% of the val- ue of suppliers.

bUSINESS MODEL