MONCLER ANNUAL REPORT AT 31 DECEMBER 2020BOARD OF DIRECTORS REPORT 6968

BUSINESS OUTLOOK

2021 will be the year in which Stone Island joins Moncler, an important moment in the history and for the strategy of the Group.

2021 will be also the second year of the Covid-19 pandemic, a year in which the virus will probably continue to affect global economies and demand for luxury goods. Indeed, it is likely, also given the uncertainty for the vaccination timeline, that the measures to limit the spread of the virus could remain in place for a good part of the year with possible negative impacts both on local traffic and, above all, on tourists flows.

In 2021 the Group will continue to work to maintain an agile, flexible and reactive organisational structure, pursuing the implementation of the following strategic lines and with a great focus on the integration of Stone Island in Moncler.

CONSOLIDATION IN THE NEW LUXURY SECTOR

With Stone Island, the Group strengthens its ability to interpret the evolving cultural codes of younger generations to continue to develop in the new luxury segment, a concept characterised by experientiality, inclusivity, sense of belonging to a community and cross-fertilisation as well as the mixing of diverse meanings and worlds including those of art, culture, music and sport. United by their beyond fashion, beyond luxury philosophy, the two Brands bring together their entrepreneurial, managerial and creative cultures, their technical product and sustainability know-how fully respecting their identity and autonomy.

Over the next few months, the Group will begin to implement the guidelines of the integration plan of Sportwear Company (company that owns the Stone Island brand) in Moncler.

STRENGTHENING OF THE DIGITAL CULTURE

Think, define and implement our strategy in a digital world is an increasingly fundamental goal for Moncler who believes in the importance of the contamination across divisions and in particular, we believe that digital is not only an important tool to generate revenues but, above all, is the way we are going to implement our present and future strategy. During 2021, Moncler will conclude the important e-commerce internalization project in all the countries where it operates and will launch a new website with a completely renewed experience.

INTERNATIONAL DEVELOPMENT, CONSOLIDATION AND DIRECT CONTROL OF CORE MARKETS

Over the years, Moncler has followed a clear strategy of international growth, while always keeping strong control of the business. With the Moncler brand, the Group wants to continue selectively developing the international markets while consolidating presence in its core markets through the reinforcement of its retail mono-brand stores network, the controlled expansion of its stores average selling surface and the strengthening of its digital channel. At the same time, the Group will begin to work with the Stone Island brand to increase control in its main markets and start an international development to strengthen the business especially in Asia and the Americas.

SUSTAINABLE BUSINESS DEVELOPMENT

Moncler has always followed a strategy of sustainable and responsible business development, in line with stakeholders expectations and coherent with its long-term strategy. An approach based not only on the commitment to set ever tougher challenges, but also on the knowledge that every action has an impact on the society and the environment where we operate. During 2021, Moncler will continue to implement the actions and projects necessary to pursue the objectives included in the Sustainability Plan Moncler Born to Protect focusing on 5 pillars: climate change, circular economy, responsible sourcing, enhancing diversity and giving back to local communities.