Moncler - Annual report 2020

MONCLER ANNUAL REPORT AT 31 DECEMBER 2020ATTACHMENTS 203202

The Board oversaw the adequacy of the instructions given by the Company to its subsidiaries pursuant to Article 114 paragraph 2 TUIF, in order to duly obtain the information required to fulfil the disclosure obligations provided for by law and by Regulation (EU) No. 596/2014. The Board of Statutory Auditors met the Supervisory Body which was set up pursuant to Legislative Decree 231/2001, and whose task is to oversee the functioning and observance of the 231 Model and of the Code of Ethics. It also obtained information about the performance of its activities from the half- yearly reports issued by the Supervisory Body (SB) itself on 24 July 2020 and on 16 February 2021. It appears that the SB has overseen the efficiency, efficacy and adequacy of the Organisational Model in terms of preventing and combating the crimes governed by Legislative Decree 231/2001; on the recipients observance of the requirements of the Model; on the updating of the Model, by making proposals to the Company Bodies and by implementing the staff training programme. The Supervisory Body did not report any critical issues following its activity. The Board of Statutory Auditors met its counterpart from the subsidiary Industries SpA, and on 10 March 2021 it obtained the report provided by that Board, which did not reveal any issue that would require a mention in this report. 4.Oversight of the adequacy of the internal control and risk management system, and of the

administration and accounting system;monitoring of the financial and non-financial

reporting process

4.1 Internal control and risk management system (ICRMS) The Report on Corporate Governance and Ownership Structure describes the main characteristics of the system for internal control and risk management. The ICRMS is the set of rules, procedures and organisational structures, which operates in order to allow the effective functioning of the Company and of the Group and in order to identify, manage and monitor the main risks to which they are exposed.The ICRMS is an integrated system that involves the whole of the organisational structure;the bodies of the Company and its departments, including the control functions, are required to make a coordinated and interdependent contribution to the functioning of this system. The Board of Statutory Auditors oversaw the adequacy of the ICRMS adopted by the Company and the Group and checked that it functioned correctly. In particular, the Board of Statutory Auditors:

i) noted the adequacy rating given by the Board of Directors in relation to the ICRMS, after consulting the control, Risks And Sustainability Committee ; in this regard, refer to the Report on Corporate Governance and Ownership Structure;

ii) examined the semi-annual report of the Control, Risks And Sustainability Committee provided to assist the Board of Directors;

iii) examined the documents summarising the assessment of the adequacy and efficacy of the ICRMS, prepared by the Internal Audit Function;

iv) attended all the meetings of the Control, Risks and Sustainability Committee, obtaining information about any project the Committee considered appropriate to arrange or request in response to specific issues;

v) obtained knowledge of the trend in the organisational structures and activities performed by the Internal Audit and Compliance Functions;

vi) examined the reports on the work done by the Internal Audit and Compliance Functions which were brought to the attention of the Control, Risks and Sustainability Committee and of the Board of Directors;

vii) verified the autonomy, independence and functionality of the Internal Audit Function, and maintained and implemented adequate, regular connections with that function;

viii) examined the Audit Plan prepared by Internal Audit and approved by the Board of Directors, observed the compliance with the Plan and received information on the results of the audits and on the effective implementation of any mitigating or corrective actions;

ix) noted the semi-annual assessment of adequacy given for the ICRMS of the Internal Audit Function, and obtained information from the Director in charge of the Internal Control and Risk Management System and the managers of the company departments involved in that system;

x) noted the developments in the Group s regulatory system; xi) examined the updates made to the Audit Plan and the Compliance Plan during the course of

the year in consideration of the Covid-19 emergency, also in the wake of the outcome of the Covid-19 risk assessment;

xii) obtained information about the setting-up of the Task Force, with the involvement of the Compliance Function which was appointed by the Company to manage the emergency, and to draft and update the Anti Covid-19 Protocols and guidelines adopted by Moncler for the safe management of operations at the corporate offices and in all the stores of the Group.

In light of the above, nothing has emerged that would lead this Board to consider that the Company s overall system of internal controls and risk management is inadequate.

4.2 Administration and accounting system, and the financial reporting process With regard to the accounting and administration system and the financial reporting process, the Board of Statutory Auditors, among its other activities, monitored the work of the managers responsible, also pursuant to law 262/2005, and the work of the Internal Audit Function with the aim of continuously assessing the adequacy and concrete functioning of the system in practice. The Report on Corporate Governance and Ownership Structure describes the main characteristics of the system. The exchange, with the managers of the auditing firm, of information which is relevant in the performance of their respective duties pursuant to Article 150 paragraph 3 TUIF, did not reveal any issue which requires a mention in this report.