Interim Financial Report 2015 Index The PRADA Group 3 Financial - PDF document

Interim Financial Report 2015

Index The PRADA Group 3 Financial Review 9 Corporate Governance 25 Interim condensed consolidated financial statements 35 Notes to the Interim condensed consolidated financial statements 41

Patrizio Bertelli Miuccia Prada 2 PRADA Group Interim Financial Report 2015

The PRADA Group PRADA Group Interim Financial Report 2015 - The PRADA Group 3

Corporate Information Registered office Via A. Fogazzaro, 28 20135 Milan, Italy Head Office Via A. Fogazzaro, 28 20135 Milan, Italy Place of business in Hong Kong 36/F, Gloucester Tower registered under Part 16 of the The Landmark, 11 Pedder Street Hong Kong Companies Ordinance Central, Hong Kong Company website www.pradagroup.com Hong Kong Stock Exchange 1913 Identification Number Board of Directors Carlo Mazzi (Chairman) Miuccia Prada Bianchi (Chief Executive Officer) Patrizio Bertelli (Chief Executive Officer) Donatello Galli (Executive Director) Alessandra Cozzani (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) Carlo Mazzi Giancarlo Forestieri Nomination Committee Gian Franco Oliviero Mattei (Chairman) Carlo Mazzi Sing Cheong Liu Board of Statutory Auditors Antonino Parisi (Chairman) Roberto Spada (Standing member) David Terracina (Standing member) 4 PRADA Group Interim Financial Report 2015 - The PRADA Group

Supervisory Board David Terracina (Chairman) (Leg. Decr. 231/2001) Gian Franco Oliviero Mattei Franco Bertoli Main Shareholder PRADA Holding S.p.A. Via A. Fogazzaro, 28 20135 Milan, Italy Joint Company Secretaries Patrizia Albano Via A. Fogazzaro, 28 20135 Milan, Italy Ying-Kwai Yuen (Fellow member, HKICS) 36/F, Gloucester Tower The Landmark, 11 Pedder Street Central, Hong Kong Authorized Representatives Carlo Mazzi in Hong Kong Via A. Fogazzaro, 28 20135 Milan, Italy Ying-Kwai Yuen (Fellow member, HKICS) 36/F, Gloucester Tower The Landmark, 11 Pedder Street Central, Hong Kong Alternate Authorized Sing Cheong Liu Representative to Carlo Mazzi House 7 Severn Hill in Hong Kong 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 S.p.A. Via Tortona, 25 20144 Milan, Italy PRADA Group Interim Financial Report 2015 - 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 /R ETAIL PRADA Dongguan 100% Pellettieri d’Italia srl PRADA USA Corp PRADA Australia pty ltd 100% 100% 100% Trading Co ltd Milan New York Sydney Dongguan P RODUCTION D ISTRIBUTION /S ERVICES /R ETAIL R ETAIL S ERVICES IPI Logistica srl PRADA Korea ltd 100% Post Developement Corp 100% 100% Milan San Francisco Seoul S ERVICES R ETAIL R EAL E STATE PRADA Singapore pte ltd 49% PAC srl in liquidazione Church Holding UK ltd 100% 100% Milan Northampton Singapore (I N LIQUIDATION ) H OLDING R ETAIL PRADA Retail Tannerie Limonges sas TRS Hawaii Ilc 60% 55% 100% Malaysia sdn bhd Honolulu Isle Kuala Lumpur P RODUCTION DFS R ETAIL 100% Church & Co ltd 55% TRS Guam Partnership PRADA Japan Co ltd 100% Northampton Tokyo Guam M ANUFACTURING / DFS R ETAIL D ISTRIBUTION /S ERVICES PRADA Retail Mexico Travel Retail Shops 100% 55% S. de R.L. de C.V. Okinawa kk Mexico City Tokyo R ETAIL DFS Church’s English Shoes 100% 100% Church & Co (USA) ltd 100% TRS Saipan Partnership PRADA (Thailand) Co ltd 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 Brussels Macau Stockholm Hong Kong R ETAIL DFS R ETAIL R ETAIL 100% Church France sas TRS New Zealand ltd 100% Church & Co (Footwear) ltd 100% Kenon ltd 55% Northampton Paris Wellington London R ETAIL DFS T RADEMARKS R EAL E STATE PRADA India Fashion 100% 100% Church Singapore pte ltd Church Italia srl 100% TRS Singapore pte ltd Private ltd 55% Singapore Milan Singapore Mumbai R ETAIL D ISTRIBUTION /R ETAIL /S ERVICES DFS D ORMANT 100% PRADA Vietnam Limited 100% Church Netherlands bv Church Spain sl 100% PRADA Asia Pacifjc ltd Liability Company 100% Amsterdam Madrid Hong Kong Hanoi O UTLET /R ETAIL R ETAIL D ISTRIBUTION /R ETAIL /S ERVICES R ETAIL Church Footwear ab Church Ireland Retail ltd Macau Branch 100% PT Prada Indonesia 100% 100% Stockholm Dublin Jakarta Macau R ETAIL R ETAIL R ETAIL D ISTRIBUTION Church Denmark aps Church Austria gmbh PRADA Taiwan ltd 100% 100% 100% Copenhagen Vienna Hong Kong R ETAIL R ETAIL S ERVICES Church Footwear 100% Taipei Branch (Shanghai) Co ltd Taipei Shanghai R ETAIL R ETAIL PRADA Trading 100% (Shanghai) Co ltd Shanghai D ORMANT PRADA Fashion Commerce 100% (Shanghai) Co ltd Shanghai R ETAIL PRADA Macau Co ltd 100% Macau R ETAIL 6 PRADA Group Interim Financial Report 2015 - The PRADA Group

PRADA Hellas PRADA Stores srl 80% PRADA sa 100% 100% Marchesi Angelo srl 100% Sole Partner llc Milan Milan Luxembourg Athens R ETAIL /S ERVICES T RADEMARK C ONFECTIONERY R ETAIL 100% PRADA Czech Republic sro PRADA Monte-Carlo sam Swiss Branch 100% 10% Prague Monaco Lugano R ETAIL R ETAIL S ERVICES PRADA Portugal PRADA Austria gmbh Montenapoleone 9 srl PRADA Company sa 100% 100% 90% 100% Unipessoal lda Vienna Milan Luxembourg Lisbon R ETAIL S ERVICES S ERVICES R ETAIL PRADA Rus llc PRADA Spain sl 100% 100% Moscow Madrid R ETAIL R ETAIL PRADA Bosphorus Deri 100% PRADA Germany gmbh 100% Mamüller ltd Sirketi Munich Istanbul R ETAIL /S ERVICES R ETAIL PRADA Middle East fzco 100% PRADA Retail UK ltd 60% Jebel Ali Free Zone-Dubai London D ISTRIBUTION /S ERVICES R ETAIL 49% PRADA Emirates llc Ireland Branch Dubai Dublin R ETAIL R ETAIL PRADA Kuwait wll PRADA Retail France sas 49% 100% Kuwait City Paris R ETAIL R ETAIL PRADA Brasil Importação e Comércio 100% de Artigos de Luxo ltda São Paulo R ETAIL PRADA Ukraine llc 100% Kiev R ETAIL 100% PRADA Kazakhstan llp Almaty R ETAIL 100% PRADA Maroc (Sarlau) Casablanca R ETAIL Maroc Branch Marrakech R ETAIL PRADA Retail 100% South Africa (pty) ltd Sandton R ETAIL 100% PRADA Retail spc Doha R ETAIL PRADA Saudi Arabia ltd 75% Jeddah R ETAIL 100% PRADA Switzerland sa Lugano R ETAIL PRM Services 100% S. de R.L. de C.V. Mexico City S ERVICES PRADA Panama sa 100% Panama R ETAIL PRADA Retail Aruba nv 100% Aruba R ETAIL 100% PRADA Denmark aps Copenhagen R ETAIL PRADA Group Interim Financial Report 2015 - The PRADA Group 7

8 PRADA Group Interim Financial Report 2015 - The PRADA Group

Financial Review PRADA Group Interim Financial Report 2015 - Financial Review 9

The Financial review of the Board of Directors refers to the Group of companies controlled by PRADA spa (the "Company"), operating 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, 2015, prepared in accordance with “IAS 34 Interim Financial Reporting” and the IFRS as adopted by the European Union. This Financial review must be read together with the 2015 unaudited Interim condensed consolidated financial statements. Consolidated income statement six months six months ended July 31 ended July 31 (amounts in thousands of Euro) % % 2015 2014 (unaudited) (unaudited) Retail 1,552,393 85.1% 1,442,161 82.3% Wholesale 248,963 13.6% 288,739 16.5% Royalties 23,077 1.3% 20,415 1.2% Net revenues 1,824,433 100.0% 1,751,315 100.0% Cost of goods sold (498,520) -27.3% (493,715) -28.2% Gross margin 1,325,913 72.7% 1,257,600 71.8% Operating expenses (1,032,699) -56.6% (884,442) -50.5% EBIT 293,214 16.1% 373,158 21.3% Interest and other financial expenses, net (9,073) -0.5% (9,492) -0.5% Dividends from investments 1,562 0.1% 455 - Income before taxation 285,703 15.7% 364,121 20.8% Taxation (94,139) -5.2% (113,075) -6.5% Net income for the period 191,564 10.5% 251,046 14.3% Net income - non-controlling interests 2,971 0.2% 6,198 0.3% Net income - Group 188,593 10.3% 244,848 14.0% Depreciation, amortization and impairment 146,840 8.0% 119,677 6.8% EBITDA 440,054 24.1% 492,835 28.1% Basic and diluted earnings per share 0.074 0.096 (in Euro per share) 10 PRADA Group Interim Financial Report 2015 - Financial Review