Interim Financial Report 2013 Index The PRADA Group 3 Financial - PDF document

Interim Financial Report 2013

Index The PRADA Group 3 Financial Review 9 Corporate Governance 25 Interim condensed consolidated financial statements 31 Notes to the Interim condensed consolidated financial statements 37

Patrizio Bertelli Miuccia Prada 2 PRADA Group Interim Financial Report 2013

The PRADA Group PRADA Group Interim Financial Report 2013 - The PRADA Group 3

Corporate Information Registered office Via A. Fogazzaro, 28 20135 Milan, Italy Headquarters office Via A. Fogazzaro, 28 20135 Milan, Italy Place of business in Hong Kong 36/F, Gloucester Tower registered under Part XI of the The Landmark, 11 Pedder Street Hong Kong Companies Ordinance Central, Hong Kong Company website www.pradagroup.com Hong Kong Exchange Stock Code 1913 Board of Directors Miuccia Prada Bianchi (appointed on May 22, 2012) (Chairperson and Executive Director) Patrizio Bertelli (Chief Executive Officer and Executive Director) Carlo Mazzi (Deputy Chairman and Executive Director) Donatello Galli (Chief Financial Officer and Executive Director) Marco Salomoni (Non-Executive Director) Gaetano Micciché (Non-Executive Director) Gian Franco Oliviero Mattei (Independent Non-Executive Director) Giancarlo Forestieri (Independent Non-Executive Director) Sing Cheong Liu (Independent Non-Executive Director) Audit Committee Gian Franco Oliviero Mattei (Chairman) Giancarlo Forestieri Sing Cheong Liu Remuneration Committee Gian Franco Oliviero Mattei (Chairman) Marco Salomoni Giancarlo Forestieri Nomination Committee Gian Franco Oliviero Mattei (Chairman) Marco Salomoni Sing Cheong Liu Board of Statutory Auditors Antonino Parisi (Chairman) (appointed on May 22, 2012) Roberto Spada (Standing member) David Terracina (Standing member) Supervisory Board David Terracina (Chairman) (Legislative Decree 231/2001) Gian Franco Oliviero Mattei Franco Bertoli 4 PRADA Group Interim Financial Report 2013 - The PRADA Group

Main Shareholder PRADA Holding bv Keizersgracht 313 3 rd Floor 1016 EE Amsterdam - The Netherlands Joint Company Secretaries Patrizia Albano Via A. Fogazzaro, 28 20135 Milan, Italy Ying-Kwai Yuen (Fellow member, HKICS) Flat A, 20 th Floor Block 4, Sceneway Garden 8 Sceneway Road Kowloon, Hong Kong Authorized Representatives Donatello Galli in Hong Kong Via Elba, 10 20144 Milan, Italy Ying-Kwai Yuen (Fellow member, HKICS) Flat A, 20 th Floor Block 4, Sceneway Garden 8 Sceneway Road Kowloon, Hong Kong Alternate Authorized Sing Cheong Liu Representative in Hong Kong House 7 Severn Hill to Donatello Galli 4 Severn Road The Peak Hong Kong Hong Kong Share Registrar Computershare Hong Kong Investor Services Limited Shops 1712-1716 17 th Floor, Hopewell Centre 183 Queen’s Road East Wanchai, Hong Kong Auditor Deloitte & Touche spa Via Tortona, 25 20144 Milan, Italy PRADA Group Interim Financial Report 2013 - The PRADA Group 5

PRADA Group Structure PRADA spa Milan H OLDING /M ANUFACTURING /D ISTRIBUTION /S ERVICES 100% 100% Artisans Shoes srl PRADA Hong Kong pd ltd PRADA Canada Corp PRADA Far East bv 66.7% 100% Montegranaro Hong Kong Toronto Amsterdam P RODUCTION S ERVICES D ISTRIBUTION /R ETAIL S UB -H OLDING /O UTLET PRADA Dongguan 60% Pellettieri d’Italia srl 100% PRADA USA Corp PRADA Australia Pty ltd 100% 100% T rading Co ltd New York Milan Sydney Dongguan P RODUCTION D ISTRIBUTION /S ERVICES /R ETAIL R ETAIL S ERVICES 100% IPI Logistica srl Post Developement Corp 100% PRADA Korea ltd 100% Milan Seoul San Francisco S ERVICES R EAL E STATE R ETAIL SPACE Caffè srl Church Holding UK ltd Space USA Corp PRADA Singapore Pte ltd 100% 100% 100% 100% Milan Northampton New York Singapore S ERVICES S UB -H OLDING O UTLET R ETAIL PRADA Retail PAC srl in liquidazione TRS Hawaii Ilc 49% 55% 100% Malaysia Sdn Bhd Milan Honolulu Kuala Lumpur (I N LIQUIDATION ) DFS R ETAIL 100% Church & Co ltd 55% TRS Guam Partnership PRADA Japan Co ltd 100% Northampton Guam Tokyo M ANUFACTURING / DFS R ETAIL D ISTRIBUTION /S ERVICES PRADA Retail Mexico Travel Retail Shops 100% 55% s de rm de cv Okinawa KK Mexico City Tokyo R ETAIL DFS Church’s English Shoes 100% Church & Co (USA) ltd TRS Saipan Partnership PRADA (Thailand) Co ltd 100% 100% Switzerland sa 55% New York Saipan Bangkok Lugano R ETAIL DFS R ETAIL R ETAIL 100% Church Japan Company ltd Church UK Retail ltd TRS Hong Kong ltd PRADA New Zealand ltd 100% 100% 55% Tokyo Northampton Hong Kong Wellington R ETAIL R ETAIL DFS R ETAIL Church Hong Kong 100% Church’s English Shoes sa Macau Branch PRADA Sweden AB 100% 100% Retail ltd Bruxelles Macau Stockholm Hong Kong R ETAIL DFS R ETAIL R ETAIL 100% Church & Co (Footwear) ltd Church France sas TRS New Zealand ltd Kenon ltd 100% 100% 55% Northampton Paris Wellington London T RADEMARKS R ETAIL DFS R EAL E STATE TRS Singapore pte ltd 100% Church Singapore pte ltd Church Italia srl 100% 55% Singapore Milan Singapore DFS R ETAIL D ISTRIBUTION /R ETAIL Church Netherlands bv Church Spain sl 100% 100% PRADA Asia Pacifjc ltd 100% Amsterdam Madrid Hong Kong O UTLET R ETAIL D ISTRIBUTION /R ETAIL /S ERVICES 100% Church Footwear AB Church Ireland Retail ltd 100% Macau Branch ltd Stockholm Dublin Macau R ETAIL R ETAIL R ETAIL 100% Church Austria gmbh PRADA Taiwan ltd 100% Wien Hong Kong R ETAIL S ERVICES 100% Church Footwear Taipei Branch (Shanghai) Co ltd Taipei Shanghai R ETAIL R ETAIL 100% PRADA China ltd Hong Kong D ORMANT PRADA Trading 100% (Shanghai) Co ltd Shanghai R ETAIL Space Hong Kong ltd 100% Hong Kong O UTLET PRADA Fashion Commerce 100% (Shanghai) Co ltd Shanghai R ETAIL 6 PRADA Group Interim Financial Report 2013 - The PRADA Group

100% 100% PRADA Hellas PRADA Stores srl PRADA sa 100% Sole Partner llc Luxembourg Milan Athens R ETAIL /S ERVICES T RADEMARK R ETAIL 100% 100% PRADA Czech Republic sro PRADA Montecarlo sam Swiss Branch Prague Monaco Lugano R ETAIL R ETAIL S ERVICES PRADA Portugal 100% 100% PRADA Austria gmbh PRADA Company sa 100% Unipessoal lda Wien Luxembourg Lisbon R ETAIL S ERVICES R ETAIL 100% PRADA Rus llc PRADA Spain sl 100% Car Shoe sa 100% Moscow Madrid Luxembourg R ETAIL R ETAIL T RADEMARK PRADA Bosphorus Deri PRADA Germany gmbh 100% 100% Mamüller ltd Sirketi Munich Istanbul R ETAIL /S ERVICES R ETAIL 100% PRADA Middle East fzco Space sa Car Shoe Italia srl 60% 100% Jebel Ali Free Zone-Dubai Lugano Milan D ISTRIBUTION /S ERVICES O UTLET D ISTRIBUTION /R ETAIL Car Shoe PRADA Emirates llc PRADA Retail UK ltd 49% 100% 100% Singapore pte ltd Dubai London Singapore R ETAIL R ETAIL R ETAIL Car Shoe PRADA Kuwait wll Ireland Branch 49% 100% Hong Kong ltd Dublin Kuwait City Hong Kong R ETAIL R ETAIL R ETAIL PRADA Retail France sas Car Shoe UK ltd 100% 100% Paris London R ETAIL R ETAIL PRADA Brasil Importação e Comércio 100% de Artigos de Luxo ltda Sãu Paulo R ETAIL PRADA Ukraine llc 100% Kiev R ETAIL 100% PRADA Kazakhstan llp Almaty R ETAIL PRADA Maroc (Sarlau) 100% Casablanca R ETAIL PRADA Retail spc 100% Doha R ETAIL PRADA Switzerland sa 100% Ginevra R ETAIL ERFICO sa 100% Ginevra R ETAIL PRADA Group Interim Financial Report 2013 - The PRADA Group 7

8 PRADA Group Interim Financial Report 2013 - The PRADA Group

Financial Review PRADA Group Interim Financial Report 2013 - Financial Review 9

The Financial review of the Board of Directors refers to the Group of companies controlled by PRADA spa (the "Company"), holding company of the PRADA Group (the "Group") and is based on the unaudited Interim condensed consolidated financial statements of the Group for the six months ended July 31, 2013, prepared in accordance with IAS 34 and the IFRS as adopted by the European Union. This Financial review must be read together with the Interim condensed consolidated financial statements. Consolidated income statement six months six months ended July 31 ended July 31 (amounts in thousands of Euro) % % 2013 2012 (unaudited) (unaudited) Retail 1,422,460 82.3% 1,229,966 79.5% Wholesale 285,124 16.5% 294,721 19.0% Royalties 20,481 1.2% 22,686 1.5% Net revenues 1,728,065 100.0% 1,547,373 100.0% Cost of goods sold (460,407) -26.6% (440,872) -28.5% Gross margin 1,267,658 73.4% 1,106,501 71.5% Operating expenses (809,320) -46.8% (711,619) -46.0% EBIT 458,338 26.5% 394,882 25.5% Interest and other financial income/(expenses), net (15,194) -0.9% (2,911) -0.2% Dividends received from third parties 284 - - - Income before taxation 443,428 25.7% 391,971 25.3% Taxation (130,609) -7.6% (102,756) -6.6% Net income from continuing operations 312,819 18.1% 289,215 18.7% Net income for the period 312,819 18.1% 289,215 18.7% Net income from continuing operations – 4,580 0.3% 2,806 0.2% non-controlling interests Net income – Non-controlling interests 4,580 0.3% 2,806 0.2% Net income from continuing operations – Group 308,239 17.8% 286,409 18.5% Net income – Group 308,239 17.8% 286,409 18.5% Depreciation, amortization and impairment 92,715 5.4% 74,491 4.8% EBITDA 551,053 31.9% 469,373 30.3% Basic and diluted earnings per share 0.120 0.112 (in Euro per share) 10 PRADA Group Interim Financial Report 2013 - Financial Review