MONCLER ANNUAL REPORT AT 31 DECEMBER 2020BOARD OF DIRECTORS REPORT 3736

to maintain, albeit with revised weight, the qualitative ones linked to strategic and operational activities and projects.

The system aimed at encouraging the achievement of di- stinctive results has also been modified through mechanisms that reward over performance, increasing the value of the reward that can be obtained when exceeding the assigned objectives, starting from a certain threshold.

The remuneration package offered to employees is com- pleted by a series of benefits, which include life insurance, pension and welfare plans, and information and prevention programs.

Investment in young people, which has always been a distinctive trait of Moncler, is also reflected in the large number of internship contracts transformed into employment contracts. In Italy, where the highest number of interns is concentrated, 26% of those concluded in 2020 led to actual employment contracts. This percentage slightly decreased compared to 2019 (30%) also due to the particular situation spread following the Covid-19 health emergency. Moncler s focus on talent is also reflected in training.

The Company is starting a real academy project: MAKE, Moncler Academy for Knowledge and Excellence. MAKE is a learning ecosystem for the development of people in terms of knowledge and skills, but also in terms of mental approach and way of working. MAKE s goal is to enable people to successfully face the changes that growth, technology and globalisation constantly create, to maintain Moncler s level of competitiveness and fuel the innovative spirit that has always distinguished it. The project, born in 2019, began to materialise some major chapters in 2020: launch, in November, of the learning platform, MAKE -

Platform . The platform, which has identified Learning is everywhere as the pay-off, is a place open to all employees filled with training content, e-learning courses, articles, webinars and discussion communities;

development of the Makers Lab program: one of the central programs of the MAKE project is the MakersLab . The Subject Matter Expert (Makers) of the Company share, in dedicated training session, their knowledge on specific activities, processes and tools;

Cultural Awareness Program: the program, developed as part of the Diversity & Inclusion initiatives, was designed in order to promote the understanding and the mutual respect of the cultures in the Moncler network, and to address proper and effective behaviours and ways to communicate with colleagues and partners from different cultures.

Persisted the commitment to complete of some mandatory training: GDPR, Italian Law 231, Health and Safety, Code of Ethics were the main courses held globally. Noteworthily, a specific online course on Covid-19 was designed and delivered to all employees with the aim of ensuring an informed and conscious return in office in terms of rules and risks.

In order to maintain OHSAS 18001 Health and Safety certification, Moncler continued to promote training programs during 2020, aimed at reinforcing and spreading the culture of human health and safety, creating awareness of risks in the workplace and providing the necessary information for their correct identification and management, as well as promoting responsible behaviour by all employees.

During 2020, Moncler further consolidated its partnership with the Italian association ValoreD, participating in inter- company courses, programs and workshops. In 2020, the Group provided over 121,795 hours of total training.

In the retail sector, Moncler continued to invest in pro- jects aimed at enhancing the professionalism of the Client Advisors with initiatives ranging from product technicality training (raw materials, manufacturing process of shoes, bags and eyewear), to knowledge of the Brand and its history, up to the development of relational and managerial skills with the aim of spreading a service and a selling ceremony able to make the customer experience unique and distinctive. The Moncler Genius project training activity continued also with specific e-learning modules Genius pills for each collection launch. The training activities for the staff of the main mono-brand stores in the wholesale channel were also carried on. The fourth and renewed edition of MONVoice the employees satisfaction survey aimed at identifying the positioning of the Company along two macro-areas: the engagement and the enablement of employees was launched at the end of 2020. Three new dimensions were analysed: the first one is linked to the Covid-19 pandemic to

understand how people feel about the decision taken by the Company in this particular period of time;

the second dimension deals with diversity and inclusion with the objective to collect the point of view and suggestions of employees on these important theme, on which the Company is committed to take concrete actions;

the third dimension concerns the corporate values and, in particular, seeks to investigate in which values people identify the most themselves, in which they recognise their manager and the top management.

In 2020, Moncler employed 4,091 average full-time equivalent (FTE) staff, 4,398 headcounts of whom around 48% were

HUMAN CAPITAL

Moncler has always believed that human capital is a crucial resource for creating long-term value and has invested attention, energy and resources in selecting the best talent, in encouraging professional and personal growth and in promoting welfare within the Company.

The Group has clear policies in place to provide a healthy, safe working environment, which is stimulating and rewards merit, where each person feels free to best express their abilities, potential and talent and where everyone s diversity is valued.

This objective was pursued also during 2020, a year in which the health emergency linked to the Covid-19 pandemic required a further effort, also at personnel management level, not only to ensure the safety of all employees of the Group but also to support their motivation, energy and cohesion.

Moncler seeks to identify and attract people who, besides their strong technical, professional, and management skills, demonstrate accordance with the values of the Group as well as the ability to work with dynamism, flexibility and striving for innovation in an ever-changing international environment.

The recruitment process is increasingly focussed on people with an international and heterogenous profile with a broad and diverse educational background and business culture, as well as on expertise and experience that are in line with the Group s future challenges.

Identifying and retaining the best talent is of crucial impor- tance to Moncler. To this end, the Group has a performance assessment system in place that measures the skills people use to achieve their set targets.

Knowledge, problem solving and business impact are the meta-dimensions taken into consideration in the assessment system. Their integration with the corporate values, of which each employee must be an ambassador and promoter, make the system functional to the personnel and business development, placing itself at the basis of the remuneration review process and providing a solid base of fairness, equal opportunities, meritocracy and competitiveness on the market. The annual

remuneration reviews process is based also on these criteria. The remuneration system includes: short-term variable remuneration systems, such as

annual MBO (Management By Objectives) for Executives, Managers and Professionals, primarily based on the achievement of measurable economic, qualitative and quantitative targets linked to activities and strategic process of the business, according to Balanced Scorecard principles;

team and individual sales commission systems that reward excellence, quality service and business development for the employees of the distribution network;

long-term incentive systems, such as Performance Share plans, for top management and key roles, which express a particular impact on the business, regardless of the organisational level. These systems are linked to long-term performance conditions and to ESG indicators witnessing management s commitment to sustainability issues. The long-term incentive systems are an important component of the pay mix, and even represent the predominant part of Total Compensation at top management level.

In light of the change in the global economic scenario and the evolution of the Covid-19 pandemic, the Chairman and CEO has publicly committed himself to devote his fixed remuneration to charitable initiatives of organisations and institutions involved in the Covid-19 emergency and to renounce, as well as the other Executive Directors, to any variable compensation for 2020. In addition, the value of all the Company s MBOs was reduced by 30%. Furthermore, in 2020 the usual structure of the indicators underlying the MBO system was modified in order to give maximum weight to the financial objectives and