MONCLER ANNUAL REPORT AT 31 DECEMBER 2020CONSOLIDATED FINANCIAL STATEMENTS 131130

10.2. STOCK-BASED COMPENSATION PLANS

The Consolidated Financial Statements at 31 December 2020 reflects the values of the Stock Option Plan approved in 2015 and of the Performance Shares Plans approved in 2016, in 2018 and in 2020.

The costs related to stock-based compensation plans in 2020 are equal to 31.0 million euros compared to 29.4 million euros in 2019. With regard to Stock Option Plan approved in 2015, please note that: The 2015 Plan provided for a vesting period ended with the

approval of the Consolidated Financial Statements as at 31 December 2017. The exercise of the options granted was on condition that the specific performance goals related to Group s consolidated EBITDA were achieved. Please note that these performance goals have been achieved;

The options could be exercised within 30 June 2020 at the latest;

The exercise price of the options was equal to 16.34 eu- ros and allowed for the subscription of shares in the ratio of one ordinary share for every option exercised;

The fair value of 2015 Plan was estimated at the grant date using the Black-Scholes method, based on the fol- lowing assumptions: share price at the grant date of the options 16.34

euros; estimated life of options equal to the period from

the grant date to the following estimated exercise: 31 May 2019;

dividend yield 1%; fair value per tranches 3.2877 euros.

There were no effect on the income statement of 2020, while the increase of the net equity for the exercise of the vested options of the Plan amounted to 1,116 thousand euros.

As at 31 December 2020 there aren t options still in cir- culation.

On 20 April 2016, the Shareholders Meeting of Moncler ap- proved the adoption of a Stock Grant Plan entitled 2016- 2018 Performance Shares Plan ( 2016 Plan ) addressed to Executive Directors and/or Key Managers, and/or employ- ees, and/or collaborators, and/or external consultants of Moncler S.p.A. and of its subsidiaries, which have strate- gically relevant roles or are otherwise capable of making a significant contribution, with a view to pursuing Group s strategic objectives.

The object of the Plan is the free granting of the Moncler shares in case certain performance targets are achieved at the end of the vesting period of 3 years.

The performance targets are expressed base on the earn- ing per share index ( EPS ) of the Group in the vesting period, adjusted by the conditions of over/under performance.

The proposed maximum number of shares serving the Plan is equal to No. 3,800,000 resulting from a capital increase and/or from the allocation of treasury shares.

The Plan provides for a maximum of 3 cycles of attribu- tion; the first attribution cycle, approved during 2016, ended with the assignment of 2,856,000 Moncler Rights, the second attribution cycle approved on 29 June 2017 assigned 365,500 Moncler Rights.

As regards the first allocation cycle, the plan ended in 2019; for further information please refer to 2019 Annual Report. As regards the second allocation cycle: The 3-year vesting period ended with the approval of the

Draft Financial Statements as at 31 December 2019. The performance targets were met, together with the

over-performance condition. Therefore, No. 388,800 shares (including No. 64,800

shares deriving from over-performance) were assigned to the beneficiaries through a share capital increase (No. 304,800 shares) and the allocation of treasury shares (No. 84,000 shares).

As at 31 December 2020 there aren t options still in circula- tion. The effect on the income statement in 2020 amount- ed to 0.7 million euros.

On 16 April 2018 the Shareholders Meeting of Moncler approved the adoption of a Stock Grant Plan entitled 2018- 2020 Performance Shares Plan ( 2018 Plan ) addressed to Executive Directors and/or Key Managers, and/or employees, and/or collaborators, and/or external consultants of Moncler S.p.A. and of its subsidiaries, which have strategically rele- vant roles or are otherwise capable of making a significant contribution, with a view of pursuing the Group s strategic objectives.

The object of the Plan is the free granting of the Moncler shares in case certain performance targets are achieved at the end of the vesting period of 3 years.

The performance targets are expressed base on the earn- ing per share index ( EPS ) of the Group in the vesting period, adjusted by the conditions of over/under performance.

The proposed maximum number of shares serving the Plan is equal to n. 2,800,000 resulting from the allocation of treasury shares.

The Plan provides for a maximum of 3 cycles of attribu- tion; the first attribution cycle, approved during 2018, ended with the assignment of 1,365,531 Moncler Rights. The second attribution cycle, approved during 2019, ended with the as- signment of 341,514 Moncler Rights.

As at 31 December 2020 there were still in circulation 1,232,638 rights related to the first cycle of attribution (the effect on the income statement in 2020 amounted to 18.1 million euros) and 295,404 rights related to the sec- ond cycle of attribution (the effect on the income state- ment in 2020 amounted to 3.6 million euros).

On 11 June 2020, the Ordinary Shareholders Meeting has approved, pursuant to art. 114-bis of the Consolidated Law on Finance, the adoption of a Stock Grant Plan denom- inated 2020 Performance Shares Plan addressed to Exec- utive Directors, Key Managers, employees and collabora- tors, therein including Moncler s external consultants and of its subsidiaries.

The object of the Plan is the free granting of the Moncler shares in case certain Performance Targets are achieved at the end of the vesting period of 3 years.

The Performance Targets are expressed base on the following index of the Group in the Vesting Period, adjust- ed by the conditions of over/under performance: (i) Net Income, (ii) Free Cash Flow and (iii) ESG (Environmental So- cial Governance).

The proposed maximum number of shares serving the Plan is equal to n. 2,000,000 resulting from capital increase and/or allocation of treasury shares.

The Plan provides for a maximum of 3 cycles of attribution; as regards the first attribution cycle, on 11 June 2020 the Board of Directors resolved the granting of 1,350,000 Moncler Rights. As at 31 December 2020 there are still in circulation 1,252,977 rights related to the first cycle of attribution (the effect on the income statement of 2020 amounts to 7.1 million euros). As stated by IFRS 2, these plans are defined as Equity Settled. For information regarding the plan, please see the company s website, www.monclergroup.com, in the Governance/Share- holders Meeting section.

10.3. SUBSIDIARIES AND MINORITY INTERESTS

Following are the financial information of the subsidiaries that have significant minority interests.

Profit/(Loss) attributable to minority differs from consolidated Profit/(Loss) attributable to minority since the data are presented gross of intercompany eliminations.

10.4. SIGNIFICANT NON-RECURRING EVENTS AND TRANSACTIONS

In addition to the extraordinary impact on the Group s financial data generated by the Covid-19 pandemic, already commented per single item of this consolidated annual report, we point out that, on 11 June 2020, the Ordinary Shareholders Meeting has approved, pursuant to art. 114-bis of the Consolidated Law on Finance, the adoption of a Stock Grant Plan denominated «2020 Per- formance Shares Plan addressed to Executive Directors, Key Managers, employees and collaborators, therein including Moncler s external consultants and of its subsidiaries. The Board of Directors held at the end of the Ordinary and Extraordinary Sharehold- ers Meeting resolved to implement the Stock Grant Plan and, consequently, approved the plan s implementation regulation and resolved the granting of 1,350,000 shares to 106 beneficiaries. The description of the stock based compensation plans and the related costs are included in note 10.2.

The Board of Directors of Moncler S.p.A., on 6 December 2020, approved unanimously the project of integration of Sports- wear Company S.p.A., owner of the Stone Island brand, into Moncler. The terms of the transactions are governed by a framework agreement signed between Moncler S.p.A., on one hand, and Rivetex S.r.l., on the other, (a company referable to Carlo Rivetti, owner of a stake equal to 50.10% of Sportswear Company S.p.A. s capital) and other shareholders of Sportswear Company S.p.A., referable to the Rivetti family, owners of a stake equal to 19.90% of Sportswear Company S.p.A. s capital. This transaction will be finalized in 2021.

Summary of subsidiary's financial information (Euro/000)

31 December 2020

Assets Liabilities Net equity Revenues Profit/(Loss)

Profit/(Loss) attributable to

minority

White Tech Sp.zo.o. 354 56 298 188 51 15

Summary of subsidiary's financial information (Euro/000)

31 December 2019

Assets Liabilities Net equity Revenues Profit/(Loss)

Profit/(Loss) attributable to

minority

White Tech Sp.zo.o. 310 44 266 183 34 10

Cash Flow 2020 (*) (Euro/000) White Tech Sp.zo.o.

Operating Cash Flow 97

Free Cash Flow 106

Net Cash Flow 88

Cash Flow 2019 (*) (Euro/000) White Tech Sp.zo.o.

Operating Cash Flow 16

Free Cash Flow 6

Net Cash Flow 9

(*) Amounts showed according to the Cash Flow Statements included in the Directors Report