61 bOaRD OF DIREcTORS REPORT60 MONCLER GROUP 2022bOaRD OF DIREcTORS REPORT

STONE ISLaND bRaND: REVENUE bY cHaNNEL

STONE ISLAND FY 2022 FY 202112 % vs 2021 % vs 2021 % vs 2019 EUR 000 % EUR 000 % rep FX cFx cFx DTc 149,153 37.2% 76,678 24.7% +95% +93% +157% Wholesale 251,979 62.8% 233,346 75.3% +8% +7% +33% REVENUES 401,132 100.0% 310,024 100.0% +29% +28% +63%

The wholesale channel, which continues to represent the majority of the brand revenues (63% of total), with EUR 252.0 million sales in 2022, grew by 7% cFX compared with 2021 pro-forma, driven by a good success of the collections across all markets, and despite the conversions into retail occurred during the year.

The DTc channel (representing 37% of the total revenues) reported sales of EUR 149.2 million, +93% cFX compared with 2021 pro-forma, driven by the already-mentioned conversion of Korea and Japan and the solid double-digit performance in EMEa and americas. The direct online channel registered a strong dou- ble-digit growth.

Even excluding the impact from the conversions from whole- sale to DTc performed during the year, growth would have been double-digit in both channels both in full year and in Q4.

2022 data reflects the 12-month consolidation of Stone Island re- sults (vs. 9-month in 2021 as consolidation occurred on 1 april 2021). These difference impacts the comparability of the data among the years.

In 2022, the Group consolidated gross margin reached EUR 1,987.8 million, equal to 76.4% of revenues compared to 76.6% in 2021.

In 2022, selling expenses were EUR 757.4 million, 29.1% of revenues substantially in line compared to 28.8% in 2021.

General and administrative expenses were EUR 284.0 mil- lion, equal to 10.9% of revenues compared to 11.4% in 2021.

The selling, general and administrative expenses include stock-based compensation costs equal to EUR 37.0 million in 2022 (EUR 28.6 million in 2021).

Marketing expenses were EUR 171.9 million, representing 6.6% of revenues compared to 6.9% recorded in 2021.

EbIT was equal to EUR 774.5 million, 29.8% margin, com- pared to EUR 603.113 million in 2021 (29.5% margin in 2021).

In 2022, net financial expenses were EUR 27.2 million, com- pared to EUR 21.6 million in 2021, mainly related to lease liabilities ex IFRS 16.

Taxes include the one-off positive impact of the Stone Island brand value realignment for EUR 92.3 million. Net of this effect, the tax rate would have been substantially in line with the previous year.

Group net result was then equal to EUR 606.7 million com- pared with EUR 411.4 million in 2021.

MONcLER GROUP cONSOLIDaTED baLaNcE SHEET aND caSH FLOW aNaLYSIS Following is the reclassified consolidated statement of financial position as of 31 December 2022 and 31 December 2021.

(EUR/000) 31/12/2022 31/12/2021 brands 999,354 999,354 Goodwill 603,417 603,417 Fixed assets 388,325 327,846 Right-of-use assets 773,517 656,196 Net working capital 191,674 148,842 Other assets/(liabilities) 4,470 (232,305) INVESTED CAPITAL 2,960,757 2,503,350 Net debt/(net cash) (818,223) (729,587) Lease liabilities 837,397 710,069 Pension and other provisions 39,297 23,774 Shareholders equity 2,902,286 2,499,094 TOTAL SOURCES 2,960,757 2,503,350

MONcLER GROUP INcOME STaTEMENT RESULTS

NET WORKING caPITaL Net working capital increased to EUR 191.7 million, equivalent to 7.4% of revenues compared to 7.0% as of 31 December 2021, demonstrating the strict control over working capital at both brands.

(EUR/000) 31/12/2022 31/12/2021 Payables (482,425) (348,953) Inventory 377,549 263,521 Receivables 296,550 234,274 NET WORKING CAPITAL 191,674 148,842 % on LTM revenues 7.4% 7.0%

NET FINaNcIaL POSITION The net financial position as of 31 December 2022 was positive and equal to EUR 818.2 million compared to EUR 729.6 million as of 31 December 2021. as required by the accounting standard IFRS 16, as of 31 December 2022, the Group accounted lease liabilities of EUR 837.4 million compared to EUR 710.1 million as of 31 Decem- ber 2021.

(EUR/000) 31/12/2022 31/12/2021 cash 882,254 932,718 Net financial debt (net of financial credit) (64,031) (203,131) NET DEBT 818,223 729,587 Lease liabilities 837,397 710,069

Following is the reclassified consolidated statement of cash FY 2022 and FY 2021.

(EUR/000) FY 2022 FY 2021 EBIT 774,547 603,065 D&a 105,644 88,803 Other non-current assets/(liabilities) 14,570 11,810 change in net working capital (42,832) 92,301 change in other curr./non-curr. assets/(liabilities) (212,342) 51,844 capex, net (167,099) (124,681) OPERATING CASH FLOW 472,488 723,142 Net financial result (3,977) (2,139) Taxes (140,786) (170,685) FREE CASH FLOW 327,725 550,318 Dividends paid (160,960) (120,679) Stone Island transaction - (551,157) changes in equity and other changes (78,129) (4,170) NET CASH FLOW 88,636 (125,688)

Net Financial Position - beginning of Period 729,587 855,275 Net Financial Position - End of Period 818,223 729,587 CHANGE IN NET FINANCIAL POSITION 88,636 (125,688)

Net cash flow in 2022 was equal to EUR 88.6 million following the payment of EUR 161.0 million of dividends, EUR 48.4 million of buy- back and EUR 124.1 million of extraordinary tax payment for the Stone Island brand tax value realignment.

NET caPITaL EXPENDITURE In 2022, net capital expenditure was EUR 167.1 million, increasing from EUR 124.7 million in 2021, with the main investments related to the expansion of the retail network, IT projects and the enlarge- ment of the production facility in bacau, Romania.

(EUR/000) 31/12/2022 31/12/2021 Distribution 99,428 75,976 Infrastructure 67,670 48,705 NET CAPEX 167,098 124,681 % on revenues 6.4% 6.1%

13 Net of Purchase Price allocation (PPa) and other transaction costs related to the Stone Island deal in H1 2021.