Moncler : H1 2017 Financial Results

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MONCLER S.P.A.: THE BOARD OF DIRECTORS APPROVES THE HALF-YEAR FINANCIAL REPORT AS OF 30 JUNE 20171

MONCLER: DOUBLE-DIGIT REVENUE GROWTH CONTINUED (+18%) NET INCOME AT 42 MILLION EUROS, UP 25%

• Consolidated Revenues: 407.6 million euros, up 17% at constant exchange rates and 18% at current exchange rates, compared to 346.5 million euros in the first half of 2016
• Adjusted EBITDA2: 97.0 million euros compared to 78.3 million euros in the first half of 2016; EBITDA margin of 23.8%
• Adjusted EBIT2: 73.3 million euros compared to 59.0 million euros in the first half of 2016 (18.0% margin)
• Net Income, Group share: 41.8 million euros, up 25% compared to 33.6 million euros in the first half of 2016; net income margin of 10.3%
• Net Cash: 130.2 million euros at 30 June 2017 compared to 105.8 million euros at 31 December 2016 and net debt of 84.9 million euros at 30 June 2016
• Board of Directors has approved the extension of the Moncler Japan Corp.joint-venture agreement for additional 5 years (until 31 December 2023), with a gradual buyback of the minority stake by the aforementioned company

*** Remo Ruffini, Moncler's Chairman and Chief Executive Officer, commented: "This is the fourteenth consecutive quarter of double-digit growth for Moncler since it was listed in 2013. Group revenues grew by a further 20% in the second quarter of 2017, driven by positive contributions from all regions and channels. This has been achieved thanks to the solidity and strength of our Brand, while preserving the sustainability of our growth. To be able to develop so consistently reflects not only Moncler's uniqueness and the valuable work undertaken by everyone here, but also our ability to continuously reinvent ourselves, to look ahead and make key decisions - sometimes boldly - that bear fruit over time".

***

1

This note applies to all pages: rounded figures.

2 Before non-cash costs related to stock based compensation.

Milan, 26 July 2017 - The Board of Directors of Moncler S.p.A., which met today, has examined and approved the Half-Year Financial Report as of 30 June 2017.

Consolidated Revenues Analysis

In the first half of 2017, Moncler recorded revenues of 407.6 million euros, an increase of 17% at constant exchange rates and 18% at current exchange ratescompared to revenues of 346.5 million euros in the same period of 2016.

Revenues by Region

First Half 2017 First Half 2016 YoY growth %

exchange rates	exchange rates
Italy	58,202	14.3%	54,172	15.6%	+7%	+7%
EMEA (excl. Italy)	127,431	31.3%	105,845	30.5%	+20%	+24%
Asia & Rest of the World	159,623	39.1%	133,920	38.7%	+19%	+17%
Americas	62,387	15.3%	52,525	15.2%	+19%	+16%
Total Revenues	407,643	100.0%	346,462	100.0%	+18%	+17%

(Euro/000) % (Euro/000) %

At current

At constant

In Italy, revenues rose 7%, driven by good results in all distribution channels. In particular, the retail channel has benefited from a solid organic growth, further accelerating in the second quarter.

In EMEA, Moncler's revenues grew 24% at constant exchange rates, driven by outstanding performances in both channels and across all main markets. Growth in the United Kingdom and France remains particularly strong.

In Asia & Rest of the World, revenues increased 17% at constant exchange rates. In Japan both distribution channels continued to record double-digit growth, driven by the very good performance of the Spring/Summer collections and Moncler's strong brand perception in the market. In APAC Moncler recorded very strong results, largely supported by a good organic growth across the main markets, particularly in the second quarter of the year. Outstanding results were achieved in Korea, where the Brand continues to benefit from good organic growth and the ongoing development of the retail network.

In the Americas, revenues grew 16% at constant exchange rates, supported by double-digit growth in both channels, and by the continued development of the mono-brand stores network. The US and Canada both recorded good performances.

Revenues by Distribution Channel

First Half 2017 First Half 2016 YoY growth %

exchange rates	exchange rates
Retail	299,477	73.5%	245,885	71.0%	+22%	+21%
Wholesale	108,166	26.5%	100,577	29.0%	+8%	+8%
Total Revenues	407,643	100.0%	346,462	100.0%	+18%	+17%

(Euro/000) % (Euro/000) %

At current

At constant

In the first six months of 2017, revenues from the retail channelreached 299.5 million euros compared to

245.9 million euros in the same period of 2016, representing an increase of 21% at constant exchange rates, thanks to solid organic growth and the continued development of the network of mono-brand retail stores (DOS).

In the first six months of 2017, the Group achieved Comparable Store Sales Growth3of 14%.

The wholesale channelrecorded revenues of 108.1 million euros compared to 100.6 million euros in the first six months of 2016, an increase of 8% at constant exchange rates, driven by good results in the United Kingdom, Japan and Canada.

Mono-brand Stores Distribution Network

As at 30 June 2017, Moncler's mono-brand distribution networkconsisted of 191 retail directly operated stores(DOS), an increase of 1 unit compared to 31 December 2016, and 46 wholesale shop-in-shops (SiS), an increase of 4 units compared to 31 December 2016. In the second quarter, Moncler opened one shop-in-shop.

30/06/2017 31/12/2016 Net Openings First Half 2017

Retail Mono-brand	191	190	1
Italy	18	19	(1)
EMEA (excl. Italy)	55	55	-
Asia & Rest of the World	94	93	1
Americas	24	23	1

Wholesale Mono-brand 46 42 4

Analysis of Consolidated Operating and Net Results

In the first half of 2017, the consolidated gross margin was 308.4 million euros, equivalent to 75.6% of revenues compared to 74.1% in the same period of 2016. This improvement was mainly attributable to growth in the retail channel.

Selling expenses were 154.0 million euros, equivalent to 37.8% of revenues compared to 37.2% in the same period of 2016. This increase is largely related to the retail channel development.General and administrative expenses were 51.1 million euros, with a slightly lower proportion of sales compared to the same period last year and equal to 12.5% of revenues compared to 12.7% in the first half of 2016.Advertising expenses were

1. million euros, representing 7.3% of revenues compared to 7.2% in the first half of 2016. Adjusted EBITDA4rose to97.0 million euros, compared to 78.3 million euros in the first six months of 2016, resulting in an EBITDA margin of 23.8% compared to 22.6% in the first half of 2016.

   3 Comparable Store Sales Growthis based on 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.

   4

   Before non-cash costs related to stock-based compensation.

   In the first semester of 2017, depreciation and amortisation rose to 23.7 million euros representing 5.8% of sales compared to 19.3 million euros in the first semester of 2016 (5.6% of sales). This increase is largely attributable to the retail development.

   Adjusted EBIT4was 73.3 million euros, compared to 59.0 million euros in the first six months of 2016, resulting in an EBIT margin of 18.0% (17.0% in the first half of 2016). Including costs related to stock-based compensation,EBIT was 63.3 million euros, an increase of 18% compared to 53.5 million euros in the first half of 2016, representing an EBIT margin of 15.5% (15.4% in the first half of 2016).

   Stock-based compensation include non-cash costs related to Moncler stock options and performance shares plans was equal to 10.0 million euros compared to 5.5 million euros in the first semester of 2016.

   Net Income, Group share was 41.8 million euros, equivalent to 10.3% of revenues, an increase of 25% compared to 33.6 million euros in the same period of 2016.

   Consolidated Balance Sheet and Cash Flow Analysis

   Net financial position at 30 June 2017 was positive and equal to130.2 million euros compared to 105.8 million euros at 31 December 2016, and net debt of 84.9 million euros at 30 June 2016. Net working capital was 64.4 million euros, compared to 108.1 million euros at 31 December 2016 and 79.0 million euros at 30 June 2016, equivalent to 5.8% of last-twelve-months revenues, compared to 8.5% as of 30 June 2016. This improvement has been largely driven by better management of inventories and receivables. Net capital expenditure was 34.4 million euros in the first six months of 2017, compared to 28.9 million euros in the same period of 2016. The increase is mainly due to investments in the retail network and some important relocations and expansions. Free cash flow in the first half of 2017 was positive and equal to39.6 million euros, compared to 13.2 million euros in the same period of 2016.

   In the first half of 2017, Moncler distributed 45.5 million euros of dividends compared to 34.9 million euros in the same period of 2016. Moncler recorded a positive change in equity equal to 30.3 million euros, also following the exercise of 4.0 million stock options related to the 2014-2016 plans for a total value of 41.0 million euros.

   Other Resolutions

   • The Board of Directors of Moncler S.p.A. (the "Company") has approved today an amendment (the "Amendment") to the Joint Venture Agreement entered into with Yagi Tsusho Limited ("Yagi") on 12 October 2008, as subsequently amended (the "JV Agreement") , for the incorporation of Moncler Japan Corporation ("Moncler Japan"), of which the Company owns - through its subsidiary Industries

     S.p.A. - 51% of the share capital, while the remaining 49% is owned by Yagi. The Amendment provides for:

     • the extension of the term of the JV Agreement, upon the occurrence of certain conditions, for additional 5 years after its current expiration term of 31 December 2018; thus, until 31 December 2023;

     • the amendment of the terms and conditions of the purchase option recognised to the Company and of the related option to sell recognised to Yagi on its entire stake of 49% of the share capital of Moncler Japan, by stating that such options could be exercised, respectively, by and towards