MONCLER ANNUAL REPORT AT 31 DECEMBER 2020 211210 GLOSSARY

GLOSSARY

AMERICAS

North and South America.

APAC

Greater China, South-East Asia, Australia and New Zealand.

ASIA

APAC, Japan and Korea.

AUDIT

Systematic and documented assessment (by an independent body) to verify compliance with the requirements of a given law/standard of reference.

CAGR

Compounded Annual Growth Rate.

COMPARABLE STORE SALES GROWTH (CSSG)

Sales growth in DOS (excluding outlets) which have been opened for at least 52 weeks and in the online store; stores that have been extended and/or relocated are excluded from the calculation.

CONCESSION

Directly operated mono-brand retail store located on the premises of a department store/shopping mall. Rents in con- cession stores are variable.

CORPORATE OFFICE

Corporate organisational units tasked with setting strategy and guidelines for the coordination and control of all opera- tions on behalf of Group subsidiaries and branches.

DEPARTMENT STORE

Large retail establishment with an extensive assortment in variety and range of goods, organised into separate depart- ments.

DIGITAL

The digital division includes five departments: D-Commerce, D-Marketing, D-Experience and D-Strategy&Culture, which aim at guiding the digital transformation and spreading its culture.

DIRECT TO CONSUMER

Approach by which a company sells its products directly to customers, bypassing any intermediary.

DOS

Directly Operated Store, including free-standing stores, con- cessions, travel retail stores and factory outlets.

DOORS

Wholesale stores, both multi-brand and mono-brand, where the brand is present.

EBIT

Earnings Before Interest and taxes (Operating results).

EBITDA

Earnings before Interest, Taxes, Depreciation and Amortisation.

EMEA

Europe, United Kingdom, Middle East and Africa.

E-TAILER

A wholesale business carried out via electronic transactions on the internet.

FAÇON MANUFACTURER

Third party supplier carrying out cut-make-trim phase (façon) of the production cycle according to the so-called in- dustrialised method.

FASHION WEEK

Fashion industry event lasting approximately one week, when stylists, brands and fashion houses show their new collec- tions, allowing buyers and media to observe the latest trends.

FLAGSHIP STORE

A mono-brand retail store which by its size and/or location conveys the philosophy and image of the brand.

FREE STANDING STORE

A retail store that is located directly on a street, i.e. not in a department store or shopping mall.

FULL TIME EQUIVALENT (FTE)

Average annual number of employees equivalent to full-time workers.

IFRS 16

Accounting principle that requires companies to recognise in their accounts the right-to-use of leased assets and the related liability corresponding to the obligation to make lease pay- ments. Assets and liabilities arising from leases are measured on a present value basis.

KEY MONEY

An amount of money paid by the assignee to the assignor of lease agreements in retail properties, representing the good- will connected to the prestige of a specific location.

MONO-BRAND STORE

A shop that exclusively sells products of a specific brand.

MULTI-BRAND STORE

A shop that sells products of different brands.

NEW LUXURY

A concept that embraces the search for experientiality, inclu- sivity, a sense of belonging to a community and the mixing of diverse meanings and worlds including those of art, culture, music and sport.

OHSAS 18001

Voluntary standard published by the British Standards Insti- tutions, defining the requirements of occupational health and safety management systems.

OUTLET

A shop that sells products and collections from previous years and seasons at discount price.

PHYGITAL

Combination of the physical and digital channels to provide an unique and interactive customer experience.

RETAIL

Distribution channel for the sale of products managed directly by the Group through Directly Operated Stores (DOS) or its own e-commerce website (www.moncler.com).

SELECTIVE DISTRIBUTION

A distribution system in which a brand sells its products only to selected vendors based on criteria aimed at preserving its reputation and in which the selected distributors undertake not to resell those products to vendors not included in the network distribution of the brand.

SHOP-IN-SHOP

A dedicated selling space located in and managed by a depart- ment stores.

SRI (SOCIALLY RESPONSIBLE INVESTOR)

Financial operator who integrates standard financials with en- vironmental, social, and governance considerations.

STAKEHOLDER

Every entity that has a legitimate interest in the activity of an organisation and influences or is influenced by the organisa- tion s decisions.

SUPPLY CHAIN

Distribution processes that begin with the supply of raw mate- rials or components and end with the customer, encompassing all phases of production, wholesale and retail.

TRAVEL RETAIL STORE

Point of sale located in places where there is a high flow of travelers, such as airports and train stations.

WHOLESALE

Distribution channel consisting in mono-brand and mul- ti-brand stores, which buy products from the company and resell them to the final clients.

WHOLESALE MONO-BRAND STORE

Shop-in-shops (SIS) and all stores that are not directly man- aged by the company.