129 Be FAIR128 Be FAIR MONCLER GROUP 2023

VALUe OF ORdeRS BY GeOGRAPHICAL AReA

Where possible, the Group employs local suppliers located near its main sites to benefit from logistical advantages, reduce their related greenhouse gas (GHG) emissions, generate income and create em- ployment opportunities in the communities where the Group operates.

Most suppliers (approximately 90%) are based2 in the eMeA Region, primarily in Italy.

The Group distributes its purchasing expenditure, in order to avoid situations of dependence on its suppliers that could repre- sent a risk for the business. With regard to concentration, the top 40 suppliers account for more than 50% of the value of orders. The Group is careful to promptly identify critical situations that could cause potential supply disruptions and mitigate the related risk.

The Group periodically identifies its critical suppliers to in- volve them in targeted actions and initiatives. This identification process is based on a risk-based approach that takes into account, the economic value of the orders commissioned, quality, delivery times, financial dependence of the supplier, and the Group s abili- ty to ensure the supply of goods and services if it has to replace a supplier quickly. In addition, specific sustainability parameters are assessed, such as: the potential risk relating to human rights in the reference country, the sourcing of key raw materials with potential social and environmental impacts and the supply of strategic pro- cesses for the Group, with a particular focus on raw materials of an- imal origin and on the relevance to the business.

At present, the majority of workers at the Group s critical suppliers are women (approximately 68%), and the percentage of migrant workers is approximately 5%.

SUPPLY CHAIN EXCELLENCE Moncler has been implementing its Supply Chain Excellence pro- gramme for years. It aims to bring the supply chain to a level of excellence by developing the operational and industrial area ac- cording to an advanced model, functional to coping with a con- stantly changing market.

People and their contributions are the cornerstones of the entire programme. All company departments are involved in work- ing groups. Today s critical factors of success were analysed, along with those needed for the future, and specific projects were there- fore launched, all with the aim of achieving operational excellence in terms of quality, time to market, sustainability, reliability, flexi- bility and efficiency.

2% Americas

44% Italy

16% Asia

38% eMeA (excl. Italy)

The main initiatives in 2023 included: Collection Excellence: the Product Lifecycle Management

PLM platform was extended to all product lines and cat- egories. All information relating to the development of the collections is now in a single environment shared by all the functions involved in the process, fostering its sharing and efficiency. In 2023, the platform s operational functions were further refined, with particular advantages above all in moni- toring and managing workflows.

Supply Chain Collaboration: the project aims to create a platform for collaboration to enable Moncler to increase vis- ibility and control of all phases of production, with advan- tages in terms of responsiveness and operational flexibility. Through devices and applications provided to the affected suppliers, the platform facilitates efficient, timely communi- cation between Moncler and its façon manufacturers, signifi- cantly improving integrated supply chain management and thus the efficiency of raw material warehouses, production planning and logistics. Launched in a pilot phase in 2023, the project already covers around 30% of suppliers production volumes. The project will be further expanded in 2024, ex- tending in terms of operating scope to cover more than 90% of suppliers production volumes.

Data-based scientific approach: in order to constantly im- prove supply chain management processes, each quarter the management team meets to monitor operating perfor- mance based on a set of indicators that analyse the perfor- mances of the various operating areas of Supply Chain & Operation processes. The quarterly monitoring and analysis cycle allows for a proactive approach to continuous improve- ment. Through this process, the company can constantly op- timise processes, improve the quality of services offered and reduce operating costs.

Continuous improvement of garment quality: the process of honing internal technical skills continued to ensure con- stant oversight of the design, industrialisation, pre-produc- tion and production phases, whether performed internally or by suppliers. This approach entails a constantly increasing focus on the quality of upstream process execution that will help reduce possible non-conformities of finished products. Over time, an approach based on the monitoring and analy- sis of performance has been consolidated: detailed study of production data makes it possible to quickly identify areas for improvement and always pursue the finest quality. To this end, a pre-testing process has been set up directly at suppli- ers premises. This allows the language and quality standards to be brought directly into the production phase and enables swift repairs and greater quality control throughout the pro- duction process.

Shipment tracking: the project involves accurate tracking of shipments, from raw materials to distribution of the finished product, to obtain timely information on the progress of the various phases, including through an ad hoc report. In 2023, the project sought to optimise shipments of raw materials to façon manufacturers, reducing the variability of delivery times. In 2024, it will be extended to the transport of finished products to the logistics hub.

3D Project: In 2018 Moncler started to integrate 3d tech- nology into its product development process. digital design minimises the need for physical samples, reducing waste, development times and prototype production costs. This makes it possible to digitally adjust the fit, find the right pro- portion for each size and check the rendering of different fab- rics, colours and patterns.

Zero Waste Project: all obsolete materials (fabrics, compo- nents, etc.) in the Moncler brand s main warehouse began to be classified and verified starting in 2021. This activity al- lowed to have a timely view of inventories, making them avail- able for the production of new collections, thus reducing the generation of waste.

Early Product Engineering Programme: companies with a strong propensity for innovative design, such as Mon- cler, tend to experience issues of various kinds close to the launch of the sample collection into production, with a con-