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

Hong Kong Exchanges 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 f or any loss howsoever arising f rom or in reliance upon t he whole or any part of t he cont ent s of t his announcement . PRADA spa (Stock Code: 1913) ANNOUNCEMENT OF THE CONSOLIDATED RESULTS FOR THE THREE MONTHS ENDED APRIL 30, 2014 - Net revenues were Euro 777.7 million, recording a decrease of 0.6% compared with the three months ended April 30, 2013 - Retail net sales were Euro 697.8 million, up by 2.8% compared wit h the three months ended April 30, 2013 (+7.7% at const ant exchange rates) - EBITDA was Euro 213.9 million, representing a margin of 27.5% on net revenues (30.8% in the t hree months ended April 30, 2013) - Group’ s net income amounted t o Euro 105.3 million, compared t o Euro 138.2 million for the three months ended April 30, 2013 - Positive net financial position at Euro 349.1 million as at April 30, 2014 - Net operating cash flow for the three months ended April 30, 2014, was Euro 178.3 million 1

Consolidated results for the three months ended April 30, 2014 The Board of Direct ors (t he “ Board” ) of PRADA S .p.A. (the “ Company” or “ PRADA spa” ) announces the unaudit ed Consolidated results of the Company and it s subsidiaries (collect ively, the “ Group” ) for the three months ended April 30, 2014. Key financial information three twelve three % months months months Key information from the Income change vs ended ended ended statement April 30 Apr 30 Jan 31 Apr 30 (amounts in thousands of Euro) 2013 2014 2014 2013 (unaudited) (audited) (unaudited) Net revenues 777,740 3,587,347 782,294 -0.6% EBITDA 213,947 1,143,186 240,825 -11.2% EBITDA % 27.5% 31.9% 30.8% - EBIT 156,342 939,237 195,719 -20.1% EBIT % 20.1% 26.2% 25.0% - Income before tax 150,757 922,896 189,845 -20.6% Net income of the Group 105,331 627,785 138,158 -23.8% Earnings per share (Euro) 0.041 0.245 0.054 -23.8% Capital expenditure 116,653 611,227 178,252 - Net operating cash flows 178,334 769,437 244,553 - Average headcount (persons) 11,665 10,816 10,121 15.3% as at as at as at Key information from the Statement of Apr 30 Jan 31 Apr 30 change vs financial position 2014 2014 2013 Jan 31 (amounts in thousands of Euro) (unaudited) (audited) (unaudited) 2014 Net operating working capital 393,159 409,774 287,265 (16,615) Net invested capital 2,443,611 2,405,650 2,122,017 37,961 Net financial position surplus/(deficit) 349,050 295,890 360,516 53,160 Group shareholders’ equity 2,774,452 2,687,554 2,468,116 86,898 Highlights for the three months ended April 30, 2014 In t he t hree months ended April 30, 2014, the consolidat ed net revenues amounted to Euro 777.7 million, slight ly below Euro 782.3 million post ed in t he same t hree months period of 2013. These performances were achieved in a general context of unfavorable exchange rates (at constant exchange rates net revenues grew up 3.8% ) and cont ingent fact ors such as t he expected and significant decline in the wholesale deliveries and tough comparable basis. The retail channel, leveraging on a net work of 551 Directly Operated S tores (DOS ) at April 30, 2014, generated the business development of the period and balanced the contract ion planned in the wholesale compared to t he same t hree months of 2013. The profitability achieved at gross margin level was 74% , slightly improving compared t o 73.6% reached in t he same period of last year. The EBITDA t ot aled Euro 213.9 million, down 11.2% compared t o Euro 240.8 million recorded in the three mont hs ended April 30, 2013. In terms of 2

profitabilit y, the EBITDA margin decreased from 30.8% to 27.5% due to the higher incidence of the operat ive expenses. Likewise, the EBIT for the three months ended April 30, 2014, decreased to Euro 156.3 million, or 20.1% as a percent age of net revenues, from Euro 195.7 million, or 25% as a percentage of net revenues, recorded in the first quarter of 2013. The Group’ s net income amount ed to Euro 105.3 million compared to Euro 138.2 million generated in the three months ended April 30, 2013. The capital expenditures for the three months ended April 30, 2014, t ot aled Euro 116.7 million, mainly aimed to further expand the ret ail network. Despite the spending for invest ments during t he three months period, the Group’ s operations managed t o generate a free cash flow that allowed t he positive financial position t o stand at Euro 349.1 million at April 30, 2014, an increase of Euro 53.2 million from Euro 295.9 million at January 31, 2014. 3

Consolidated income statement for the three months ended April 30, 2014 three three months months % on % on ended ended (amounts in thousands of Euro) Note Net Net April 30 April 30 revenues revenues 2014 2013 (unaudited) (unaudited) Net revenues 3 777,740 100.0% 782,294 100.0% Cost of goods sold (202,243) -26.0% (206,436) -26.4% Gross margin 575,497 74.0% 575,858 73.6% Operating expenses 4 (419,155) -53.9% (380,139) -48.6% EBIT 156,342 20.1% 195,719 25.0% Interest and other financial 5 (6,040) -0.8% (6,162) -0.8% income/(expenses), net Dividends received from third parties 455 0.1% 288 - Income before taxes 150,757 19.4% 189,845 24.3% Taxation 6 (41,332) -5.3% (47,958) -6.1% Net income from continuing operations 109,425 14.1% 141,887 18.1% Net income for the period 109,425 14.1% 141,887 18.1% Net income – Non-controlling interests 4,094 0.5% 3,729 0.5% Net income – Group 105,331 13.6% 138,158 17.7% Depreciation, amortization and 57,605 7.4% 45,106 5.8% impairment EBITDA 213,947 27.5% 240,825 30.8% Basic and diluted earnings per share 7 0.041 0.054 (in Euro per share) 4

Consolidated statement of financial position as at as at April 30 January 31 (amounts in thousands of Euro) Note 2014 2014 (unaudited) (audited) Assets Current assets Cash and cash equivalents 688,372 568,414 Trade receivables, net 9 236,004 308,405 Inventories, net 8 503,885 449,903 Derivative financial instruments - current 11,064 13,984 Receivables from, and advance payments to, parent company and other related parties - 10 3,778 5,993 current Other current assets 12 138,612 114,897 Total current assets 1,581,715 1,461,596 Non-current assets Property, plant and equipment 11 1,234,064 1,230,192 Intangible assets 11 940,142 901,289 Associated undertakings 23,077 21,186 Deferred tax assets 195,968 201,245 Other non-current assets 13 71,008 69,867 Derivative financial instruments non-current 1,141 1,430 Receivables from, and advance payments to, parent company and other related parties – non- 10 8,368 1,487 current Total non-current assets 2,473,768 2,426,696 Total Assets 4,055,483 3,888,292 Liabilities and Shareholders’ equity Current liabilities Bank overdrafts and short-term loans 63,539 61,909 Payables to parent company and other related 14 4,366 4,894 parties - current Trade payables 15 346,730 348,534 Current tax liabilities 150,490 132,145 Derivative financial instruments - current 5,000 3,803 Obligations under finance leases - current 481 524 Other current liabilities 16 144,314 154,666 Total current liabilities 714,920 706,475 Non-current liabilities Long-term financial payables 271,921 207,950 Obligations under finance leases non-current 13 19 Post-employment benefits 65,219 63,279 Provision for risks and charges 17 51,785 52,660 Deferred tax liabilities 43,273 42,671 Other non-current liabilities 101,323 98,982 Derivative financial instruments non-current 1,088 1,469 Payables to parent company and other related 14 13,281 13,247 parties – non-current Total non-current liabilities 547,903 480,277 Total Liabilities 1,262,823 1,186,752 Share capital 255,882 255,882 Other reserves 2,479,872 1,853,325 Translation reserve (66,633) (49,438) Net profit for the period 105,331 627,785 Total Shareholders’ equity – Group 2,774,452 2,687,554 Shareholders’ equity – Non-controlling interests 18,208 13,986 Total Liabilities and Shareholders’ equity 4,055,483 3,888,292 Net current assets 866,795 755,121 Total assets less current liabilities 3,340,563 3,181,817 5