33 bOaRD OF DIREcTORS REPORT32 MONCLER GROUP 2022bOaRD OF DIREcTORS REPORT

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 extensive experience and continuous research and de- velopment has enabled the company to gain unique expertise in this area, both in terms of knowledge of down as raw material and in terms of garment manu- facturing 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 quali- ty. 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 as- sess its compliance with 11 key parameters, set in accordance with the strict- est international standards and the stringent quality requirements imposed by the company. In 2022, a total of around 1,600 tests were performed.

but for the company, quality is more than this: the origin of its down and the respect for animal welfare are also fundamental for Moncler. When sourc- ing and purchasing raw materials, Moncler considers these aspects as import- ant as the quality of the material itself. Since 2016, all Moncler down is certified with the DIST internal protocol. (Please refer to dist.moncler.com)

The cut-make-trim phase is conducted both by third party manu- facturers (façon manufacturers) and in the Moncler manufacturing plant in Romania that currently employs more than 1,300 people. This hub was established in 2015, then was moved in 2016 to its current location, which has been expanded in 2022 to significant- ly increase 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 oversees these suppliers directly by conducting audits designed to check aspects related to product quality, brand protection and compliance with current laws, Moncler code of Ethics (updated in 2017) and the Supplier code of conduct (approved in 2016). For the production, the brand uses 130 suppliers, split between façon and finished products manufacturers: the first 30 suppliers cover about 80% of the value of supply2.

MONcLER DISTRIbUTION Moncler is present in all major markets both through the retail chan- nel, consisting of directly operated stores (DOS3), the online store and the e-concessions, and through the wholesale channel, represent- ed by multi-brand doors, shop-in-shops in luxury department stores, airport locations and online luxury multi-brand retailers (e-tailers).

Moncler s strategy is aimed at the control of the distribution channel, not only retail but also wholesale and digital, which is op- erated through a direct organisation.

as of 31 December 2022, the network of mono-brand Mon- cler boutiques counted 251 directly operated stores (DOS), +14 units compared to 31 December 2021. Some of the most import- ant stores opened in the year include Dusseldorf, Madrid, Miami Design District, Shanghai Swire, Seoul Galleria, chengdu SKP, Ni- igata Isetan, in addition to some important relocations/expansions including Macau Galaxy. The brand operates 63 wholesale shop- in-shops (SiS).

2 based on Orders Value. 3 Including free standing stores, concessions, travel retail stores

and factory outlets.

MONCLER BRAND: MONOBRAND STORE NETWORK

MONCLER 31/12/2022 31/12/2021 Net openings 2022 asia 125 117 8 EMEa 88 84 4 americas 38 36 2 RETAIL 251 237 14 WHOLESALE 63 64 -1

Moncler also continues to develop its digital channel. Following the internalization of the .com site completed in 2021 and the subse- quent implementation of the new front-end concept of the platform, the evolution continues with constant updates, in order to improve the experience and the customer journey inspired by the world of entertainment, guaranteeing smooth navigation with dedicated contents and services. These also include customization through the new Moncler by Me service launched in 2022.

MONcLER MaRKETING aND cOMMUNIcaTION Moncler was born in the mountains. born to protect, to keep warm. born to deal with extremes. a dynamic company by nature. at a time when the fashion world still recognized a two-season calen- dar as its only marketing model, Moncler broke old patterns. Since the launch of Moncler Genius in 2018, the Group has successful- ly delivered the industry s most compelling response to an increas- ingly digital world, where consumer expectations are shaped at the speed of Instagram. It strove towards increasingly ambitious goals, sought out more voices and embraced its boldest side always with exacting precision. The marketing of Moncler has been revo- lutionised: monthly collections launches by visionary designers are transmitted from the feed straight to consumers with dedicated ed- itorial plans. This approach has demanded absolute coordination between all departments and functions within marketing and in the whole company.

The future of the brand will take shape through distinctive ini- tiatives for each brand s dimension: Moncler Collection, Moncler Grenoble and Moncler Genius.

In 2022 Moncler celebrated its 70th anniversary, with an ex- traordinary event in Milan s most iconic location, Piazza Duomo kicking off a calendar of 70 days of events and experiences on a global level. consistent with its continuous pursuit of the extraordi- nary, Moncler delivered a live performance with a strong visual and emotional impact: 700 dancers, 200 musicians, 100 choralists and 952 models, for a total of 1,952 people (a homage to the brand s birth year), choreographed by the renowned Sadeck berrabah (Sa- deck Waff). In order to continue to engage and connect ita com- munities, Moncler opened the event to an enormous audience of nearly 18,000 people. The Moncler Maya down jacket was the star of the celebrations and the key theme of the following 70 days. This iconic garment for the brand, revisited for an anniversary version in 13 special colours, was then reinterpreted by seven designers from the brand s past, present and future: Thom browne, Hiroshi Fuji- wara, Rick Owens, Pierpaolo Piccioli, Francesco Ragazzi, Giambat- tista Valli and Pharrell Williams. The seven reinterpretations of the Moncler Maya 70 jacket were presented through photographer Pla- ton s shots and shared with various communities around the world through a travelling exhibition, from New York to London to Seoul. an immersive experience involving videos and archive garments that recounted the most important moments in Moncler s history through multi-sensory technology, including a virtual event in chi- na via Wechat.

The film The brand of Extraordinary featuring artist and Grammy award-winner alicia Keys was also shown on the brand s digital channels for the occasion and aired for the first time on Italian TV on 26th September. Moncler s first TV film presents a series of iconic images that depict the brand s history. From its alpine origins in 1952, to equipping the legendary Italian expedition to the summit of K2 in 1954, to creating the uniforms of the French ski team that won the gold medal at the 1968 Winter Olympics in Grenoble. a se- quence of unforgettable moments that tell the story of the brand s stylistic evolution.