ANNOUNCEMENT OF THE CONSOLIDATED RESULTS FOR THE NINE MONTHS ENDED - PDF document

Hong Kong Exchange and Clearing Limit ed and The S t ock Exchange of Hong Kong Limit ed t ake no responsibilit y for t he cont ent s of t his announcement , make no represent at ion as t o it s accuracy or complet eness and expressly disclaim any liabilit y what soever for any loss howsoever arising from or in reliance upon t he whole or any part of t he cont ent s of t his announcement . Via A. Fogazzaro n. 28, Milan, It aly Regist ry of Companies of Milan, It aly: No. 10115350158 (Incorporat ed under t he laws of It aly as a j oint -st ock company) (Stock Code: 1913) ANNOUNCEMENT OF THE CONSOLIDATED RESULTS FOR THE NINE MONTHS ENDED OCTOBER 31, 2011 FINANCIAL HIGHLIGHTS - Group’ s net revenues were Euro 1,730.4 million recording an increase of 24.9% compared with t he nine months period ended Oct ober 31, 2010 - Retail net sales were Euro 1,338 million, up by 35.6% compared with t he nine months period ended October 31, 2010 - the number of Directly Operated S tores reached 365 - Retail like-for-like growth was 23% compared with the nine months period ended October 31, 2010 - EBITDA was Euro 486.5 million (representing a margin of 28.1% on net revenues) - Group’ s net income amounted Euro 273.2 million, an increase of 74.5% compared t o Euro 156.5 million for the nine months ended Oct ober 31, 2010 - Net Financial Debt at Euro 110.1 million - Net operating cash flow for the nine months period was Euro 293 million Consolidated results for the nine months ended October 31, 2011 The Board of Direct ors (the “ Board” ) of PRADA S .p.A. (t he “ Company” ) is pleased to announce t he Consolidated results of t he Company and it s subsidiaries (collect ively, the “ Group” ) for the nine months ended October 31, 2011 together with the comparative figures for the nine mont hs ended 31 Oct ober 2010. 1

Key financial information % change October 31 January October 31 Key Income statement information on 2010 31, 2011 2011 (amounts in thousands of Euro) October unaudited audited unaudited 2010 Net revenues 1,385,513 2,046,651 1,730,379 24.9% Total EBITDA 330,299 535,930 486,507 47.3% Total EBIT 248,811 418,387 392,317 57.7% Income before tax 231,101 388,229 374,458 62.0% Net income of the Group 156,497 250,819 273,165 74.5% Average headcount (persons) 7,094 7,199 7,880 11.1% EBITDA % 23.8% 26.2% 28.1% EBIT % 18.0% 20.4% 22.7% % change Key Statement of financial position October 31 January October 31 on information 2010 31, 2011 2011 January (amounts in thousands of Euro) unaudited audited unaudited 2011 Non-current assets 1,540,470 1,595,990 1,698,856 6.4% Net operating working capital 285,481 320,718 376,357 17.3% Net invested capital 1,563,495 1,585,559 1,754,647 10.7% Net financial debt (third parties) 428,816 408,604 110,070 -73.1% Group shareholders’ equity 1,132,048 1,204,350 1,639,144 36.1% Investments 139,104 206,860 178,100 Net operating cash flows 232,509 367,712 292,966 Highlights for the nine months ended October 31, 2011 In the nine months period ended October 31, 2011 PRADA Group recorded net revenues of Euro 1,730.4 million, a 24.9% increase over Euro 1,385.5 million posted in t he same period of 2010. The ret ail network was again t he key growth driver. The 39.4% sales increase recorded in the t hird quart er raised t he nine months retail performance to an increase of 35.6% , up by 33.4% recorded in the first six months. EBITDA of t he reported period t ot aled Euro 486.5 million and improved it s incidence on net revenues from 23.8% to 28.1% . The higher profit ability was mainly boosted by channel mix, higher production margins and scale effect s. Increase in operating expenses, as a consequence of the expansion of the business, part ially offset the improvement. Group’ s net income amounted to Euro 273.2 million, an increase of 74.5% compared t o Euro 156.5 million posted in the same period of 2010. On June 24, 2011 the Company’ s shares were successfully listed t hrough an IPO on the Hong Kong S tock Exchange. The new shares issued as part of the IPO process enabled the Group to raise new funds amounting to Euro 206.6 million, net of the costs directly att ributable to t he t ransact ion. Thus, despit e a slight reduct ion due to exchange fluctuations (Euro 7 million) and dividends distribut ed to S hareholders (Euro 35 million), the Group’ s equit y st rengt hened further t o stand at Euro 1,639.1 million at October 31, 2011. The capital inj ection and the free cash flows enabled the Group to further lower its net financial debt (Euro 110.1 million at October 31, 2011) as well 2

as t o finance t he capital expenditure program (Euro 187.8 million in t he nine months of 2011). Consolidated Income Statement for the nine months ended October 31, 2011 nine nine months months ended ended (amounts in thousands of Euro) Notes % % October October 31, 2011 31, 2010 unaudited unaudited Retail 1,338,022 77.3% 986,704 71.2% Wholesale 368,554 21.3% 376,454 27.2% Royalties 23,803 1.4% 22,355 1.6% Net revenues 3 1,730,379 100% 1,385,513 100% Cost of goods sold (494,730) -28.6% (457,571) -33.0% Gross margin 1,235,649 71.4% 927,942 67.0% Operating expenses 4 (843,332) -48.7% (679,131) -49.0% EBIT 392,317 22.7% 248,811 18.0% Interest and other financial expenses, net 5 (17,859) -1.0% (17,710) -1.3% Income before taxation 374,458 21.6% 231,101 16.7% Taxation 6 (98,469) -5.7% (73,075) -5.3% Net income from continuing operations 275,989 15.9% 158,026 11.4% Net income from continuing operations pertaining to 2,824 0.2% 1,529 0.1% Non-Controlling Interests Group net income from continuing operations 273,165 15.8% 156,497 11.3% Total Group net income 273,165 15.8% 156,497 11.3% Amortization, Depreciation and Impairment 94,190 5.4% 81,488 5.9% EBITDA 486,507 28.1% 330,299 23.8% Basic earnings per share (in Euro per share) 7 0.108 0.063 Diluted earnings per share (in Euro per share) 7 0.108 0.063 3

Consolidated Income Statement for the three months ended October 31, 2011 three three months months ended ended (amounts in thousands of Euro) % % October October 31, 2011 31, 2010 unaudited unaudited Retail 502,650 84.3% 360,526 80.3% Wholesale 86,523 14.5% 82,231 18.3% Royalties 6,924 1.2% 6,262 1.4% Net revenues 596,097 100% 449,019 100% Cost of goods sold (165,632) -27.8% (134,897) -30.0% Gross margin 430,465 72.2% 314,122 70.0% Operating expenses (291,527) -48.9% (237,535) -52.9% EBIT 138,938 23.3% 76,587 17.1% Interest and other financial expenses, net (6,258) -1.0% 1,902 0.4% Income before taxation 132,680 22.3% 78,489 17.5% Taxation (37,892) -6.4% (24,386) -5.4% Net income from continuing operations 94,788 15.9% 54,103 12.0% Net income from continuing operations pertaining 1,155 0.2% 649 0.1% to Non-Controlling Interests Group net income from continuing operations 93,633 15.7% 53,454 11.9% Total Group net income 93,633 15.7% 53,454 11.9% Amortization, Depreciation and Impairment 32,564 5.5% 28,492 6.3% EBITDA 171,502 28.8% 105,079 23.4% 4

Consolidated Statement of Financial Position October January (amounts in thousands of Euro) Notes 31, 2011 31, 2011 unaudited audited Assets Current assets Cash and cash equivalents 280,981 96,572 Trade receivables, net 9 233,331 274,175 Inventories 8 385,038 280,409 Derivative financial instruments - current 4,867 7,379 Receivables from parent company and related parties 10 5,880 36,317 Other current assets 12 102,363 70,225 Assets held for sale - 4,948 Total current assets 1,012,460 770,025 Non-current assets Property, plant and equipment 11 622,224 536,717 Intangible assets 11 865,209 869,119 Associated undertakings 1,753 1,753 Deferred tax assets 18 158,367 141,378 Other non-current assets 13 50,344 44,883 Derivative financial instruments - non current 959 2,140 Total non-current assets 1,698,856 1,595,990 Total Assets 2,711,316 2,366,015 Liabilities and Shareholders’ equity Current liabilities Bank overdrafts and short-term loans 168,428 194,240 Payables to parent company and related parties 14 367 1,107 Other shareholders’ loans 573 581 Trade payables 15 242,012 233,866 Current tax liabilities 111,139 107,592 Derivative financial instruments - current 3,062 5,279 Obligations under finance leases - current 2,391 5,019 Other current liabilities 16 110,523 111,482 Total current liabilities 638,495 659,166 Non-current liabilities Long-term debt 218,955 303,408 Obligations under finance leases - non current 1,277 2,509 Long term employee benefits 35,741 34,833 Provisions for risks and charges 17 55,790 52,725 Deferred tax liabilities 18 48,674 52,711 Other non-current liabilities 66,885 50,207 Derivative financial instruments - non current 85 318 Total non-current liabilities 427,407 496,711 Total Liabilities 1,065,902 1,155,877 Shareholders’ equity Share capital 255,882 250,000 Other reserves 1,157,067 743,543 Translation reserve (46,970) (40,012) Net profit for the period 273,165 250,819 Total Shareholders’ Equity – Group 1,639,144 1,204,350 Shareholders’ Equity – Non Controlling Interests 6,270 5,788 Total Liabilities and Shareholders’ Equity 2,711,316 2,366,015 Net current assets 373,965 110,859 Total assets less current liabilities 2,072,821 1,706,849 5