45 BOARd OF dIReCTORS RePORT44 BOARd OF dIReCTORS RePORT MONCLER GROUP 2023

Key requirements that must be met at all levels of the supply chain include:

down must be derived exclusively from farmed geese and as a by-product of the food chain;

no live-plucking or force-feeding of animals is permitted.

Moncler s down supply chain is particularly vertically integrated and includes various types of entities: white geese farms, slaugh- terhouses, the companies responsible for washing, cleaning, sort- ing and processing the raw materials. Moreover, the supply chain includes façon manufacturers, which, using the down, manufacture finished products. All suppliers must comply scrupulously with the Protocol, to ensure the traceability of the raw materials, respect for animal welfare and the highest possible quality throughout the down supply chain: from the farm to the down injection into the garments.

The Protocol, defined taking into consideration the peculiar- ities of the supply chain structure, was the outcome of open, con- structive engagement with a multi-stakeholder forum, established in 2014 that meets annually to review and reinforce the protocol. The forum considered the expectations of all the various stake- holders and ensured a scientific and comprehensive approach to the issue of animal welfare and product traceability. Starting from 2023, the Protocol has been integrated with three specific mod- ules on human rights, environment, and the dIST down recycling procedure. The Protocol assesses animal welfare in an innovative way. Alongside a traditional approach that focuses on the farming environment, the dIST, following the european Union guidelines, also evaluates animal welfare through careful observation of An- imal-Based Measures (ABM8).

Moncler is constantly involved in the on-site auditing process to certify compliance with the dIST Protocol. To ensure maximum au- dit impartiality:

audits are commissioned and paid directly by Moncler and not by the supplier;

certification is conducted by a qualified third-party organisa- tion whose auditors are trained by veterinarians and animal husbandry experts from the department of Veterinary Medi- cine at the University of Milan;

the certification body s work is in turn audited by an accred- ited external organisation.

The presence of certified down in Moncler garments is guaranteed by the dIST down certified label.

In 2023, 156 audits were conducted by third-parties along the entire supply chain.

As another important step towards a more circular economy, Moncler started recycling dIST-certified down through an innova- tive mechanical process that requires 70% less water compared to traditional down recycling processes.

Stone Island is also committed to ensuring that the down used in its products is obtained with respect for animal welfare. The Company purchases only certified duck down according to the Re- sponsible down Standard (RdS) protocol.

Starting from 2023, all down suppliers of the Group will are compliant with the social and environmental requirements verified through audits.

2023 was another volatile year from a macroeconomic and geopo- litical perspective.

The continuation of the conflict between Russia and Ukraine and the outbreak of the conflict between Israel and Palestine, which began on 7 October 2023, intensified geopolitical tensions and the nervousness of global financial markets.

Speculation regarding the pace of interest rate cuts to be im- plemented by central banks also exacerbated volatility on the finan- cial markets throughout the year and resulted in an end-of-year rally as falling inflation data in the last months of 2023 fuelled expecta- tions on earlier-than-expected rate cuts.

On the back of this rally, the major share indices ended the year recording double-digit gains, particularly in the Western world.

The global index (S&P Global Index, BMI) was up 32%. In eu- rope the euroSTOxx50 was up 19%, the FTSe MIB ended the year

8 The Animal-Based Measures are indicators of the real welfare of an animal, determined through the direct observation of its capacity to adapt to specific farming environments. The measures include physi- ological, pathological and behavioural indicators.

MONCLER AND THE FINANCIAL MARKETS

at +28% and in the United States the S&P 500 came in at +24%. In Asia, instead, markets struggled on the back of deteriorat-

ing local macroeconomic data. In Hong Kong the Hang Seng Index (HSI) closed down -14%, in China the Shanghai Stock exchange in- dex (SSe Composite) declined by 18%. Japan was an exception, with the nIKKeI 225 up 28%.

As for the luxury sector, 2023 was a year of two halves: during the first part of the year, the performance of the companies in the in- dustry as well as investor sentiment were boosted by the re-open- ing in China after the severe Covid-19 restrictions implemented by the government in the fourth quarter of 2022 and the very resil- ient luxury demand among european customers, which continued to surprise on the upside.

In the second half of the year, starting over summer, the sec- tor experienced a moderation of growth after the super cycle that characterised the three years post pandemic, with a visible normal- isation in consumption trends particularly in europe and in the US. The online channel also saw a sharp deterioration.

All of this resulted in many companies in the sector, including Moncler, experiencing the first earnings downgrades by research houses since the Covid-19 times. These earnings downgrades were cumulatively up to a low double-digit percentage for the large- cap stocks, and this was reflected in share price trends, which saw a major correction particularly post summer.

Taking everything into account, the sector was up only 1% in 2023, underperforming the MSCI europe (+21%) and the FTSe MIB (+28%).

Moncler sits in the higher end of the spectrum, posting the fourth largest performance (+13%) after Hermès, Cucinelli, and Tod s.

Share performance 1 year (2023) 2 years (2023-2022) 5 years (2023-2019) Hermès 32.8% 24.9% 295.8% Cucinelli 28.2% 46.0% 194.8% Tod s 12.7% -30.7% -17.3% Moncler 12.5% -13.0% 92.5% Zegna 10.5% 10.4% n.a. LVMH 7.9% 0.9% 184.1% Prada 1.2% -10.5% 73.1% Richemont -3.5% -15.5% 83.7% Swatch -13.1% -18.1% -20.3% Kering -16.1% -43.6% -3.1% Ferragamo -26.0% -45.8% -30.8% Burberry -30.2% -22.1% -18.4% Luxury goods sector average 1.4% -9.8% 75.8% FTSE MIB 28.0% 11.0% 65.6%

(source: FACTSeT at 31 december 2023)