FY-22Results Presentation

Milan, March 9th 2023
1

March 9th 2023

AgendaPatrizio Bertelli
Opening Remarks and Business Update
Lorenzo Bertelli
Key Marketing and ESG Initiatives
Andrea Bonini
FY-22 Financial Review
Andrea Guerra
FY-23 Priorities and Closing Remarks
Q&A Session

2

March 9th 2023

Opening Remarks

Our brands are experiencing strong momentum and the Group continues to evolve•Prada and Miu Miu brand appeal and disciplined
execution drove excellent performance, despite
challenging macroeconomic environment•Strong and high-quality organic revenue growthand profitability improvement at both Prada andMiu Miu•

Margin targets achieved; progress towards allcommitments set at Nov-2021 Capital Markets Day•

Accelerated strategic investments in store network,industrial and IT infrastructure•

Fundamental governance changes to evolve PradaGroup and ease succession•

Strengthened positioning and organisation toaccelerate strategy execution

3March 9th 2023

Highlights

Margin targets achieved; strong progress against remaining revenue target

Net Revenues€4.2 bln+25% reported+21% constant fx

Retail Sales€3.7 bln+28% reported+24% constant fxLeather Goods +18%
Ready to Wear +27%
Footwear +29%

Retail sales, constant fx

Nov-2021
Capital Markets Day
Medium-TermTargets:Revenues~€4.5bln
Sales Density
30 – 40% increase

Gross Margin
78.8%€3.3 bln

EBIT Adj. Margin
20.1%€845 mln

Net Cash Position€535 mln

4

Gross Margin
78%
EBIT Margin~20% of revenues

March 9th 2023

PradaContinued brand strength supported growth across product categories and geographies•

Sustained brand momentum due to constantand coherent dialogue with clients•

Broad-based Retail growth, above market
average, driven by like-for-like, full price sales•

Focus on client experience• 110 store renovation projects• Improved merchandising• Significant growth in clienteling sales•

Strong performance across all categories
thanks to classic and new products•

Successful launch of Eternal Gold, first 100%
recycled gold fine jewellery collection, andPrada Paradoxe fragrance•

Further strengthened management teamwith appointment of Gianfranco D’Attis asBrand CEO5March 9th 2023

Miu Miu

Brand momentum and execution drove growth acceleration•

Investments in brand relevance, nurturingawareness and growth of client base•Stronger brand identity, sustained by ‘viral’products (ballet flats, micro-skirt, Miu WanderBag) and successful fashion shows•

Revenue growth driven by retail like-for-likeand e-commerce, with sharp acceleration insecond half•

Focus on store productivity on a broadly
stable store perimeter•New store format roll-out supporting sales
growth across categories and immersive
client journey

6

March 9th 2023

AgendaPatrizio Bertelli
Opening Remarks and Business Update
Lorenzo Bertelli
Key Marketing and ESG Initiatives
Andrea Bonini
FY-22 Financial Review
Andrea Guerra
FY-23 Priorities and Closing Remarks
Q&A Session

7March 9th 2023

Bold Brand Heat

Excellent results confirmed

Q4-22: Leading brand momentum
Both brands in the top 5

1st Place The Lyst Index

Place The Lyst Index
th4 Lyst ‘Brand of the Year’+33%
prada.com
website traffic (1)miumiu.com
website traffic (1)visitsFY-22 vs FY-21+43%
visitsFY-22 vs FY-21(1)

Source Adobe Analytics(2)

Source Adobe Analytics - Growth of search traffic to website, including natural and paid search (not limited to Google)

8+26%
Share of Searcheffectiveness (2)FY-22 vs FY-21+37%
Share of Searcheffectiveness (2)FY-22 vs FY-21

March 9th 2023

Prada: Enlarged Client Base and Market Share
Fashion and cultural leadership

Prada Eternal Gold

Prada Paradoxe• First 100% certified recycled gold
collection, 100% traceablediamonds• Very high visibility of launch event
in London• Traceability through the Aura
Blockchain Consortium´s platform• Debut campaign celebrated
exceptional personalities such as
Amanda Gorman• Emma Watson as face of thecampaign and director of the PradaParadoxe film
• Social media: total reach ~21 mln

Successful Pradatalent strategy

Engaging experiences withevents in Fashion, Art and Music• Kendall Jenner at the Met Gala inPrada as best performing post forengagement on proprietarychannels (4.2 mln impressions)• Prada was the first luxury brand tohost a physical runway show in
China in 2022, with Prada Repeat
show in August• South Asian and Korean talentstrategy to blend local and global
visibility• Prada Mode featured a new edition ofPharmacy by Damien Hirst in Dubai• Triangle Bag influencer activation
targeting a cross-gender target• Social media total reach: over 66
mln• Prada Extends music format stops inTokyo and Miami• >39 mln engagements on
Instagram (+8% vs 2021) and 31
mln IG followers (+11% vs 2021)

9March 9th 2023

Miu Miu: Strong Brand Momentum
Balancing iconic codes and newness

Miu Miu SS23 boosted
brand momentum

Miu Miu “Brand of the Year”
by Lyst• Casting strategy embodied Miu
Miu’s spirit, including Bella Hadid,
Emily Ratajkowski, ÍsadóraBarney, Lindsey Wixson, Miranda
July and FKA Twigs• Miu Miu crowned brand of theyear 2022 according to Lyst

• Renewed artists collaboration Shuang Li - to amplify themessage beyond fashion
boundaries• Ballet flats most desired product• Brand search on Google+34% YoY• Mini-skirt most appreciatedproduct both by fashion critics andcelebrities on global scale

10Miu Miu Matelassé: showcasing
brand heritage storytelling

Local activations and signatory
events to connect with agrowing Miu Miu community• Reaffirming and renewing thedistinctive codes of Miu Miu
leather goods• Distinctive formats (Miu MiuSelect, Miu Miu Club andMiu Miu Tales)• Wander Bag successfully
combined iconic material with anew product shape• Growing “Miu Miu community”
cross-borders• Strong cultural experiences in linewith Group DNA

March 9th 2023

Client Experience Enhancement Boosting Performance“Human Touch” combined with Technology• “Human Touch”: investment in, and evolution of, thein-store customer experience with strong focus on
how store staff connect and engage with clients;
Client Advisors at the centre of retail value proposition• Clienteling: focus on store staff outreach andinteractions with clients to maximise traffic andcommercial performance• Client Value: investment in clients with tailored andengaging initiatives to maximise loyalty and lifetime
value beyond the store• Personalisation: greater attention on how topersonalise the client experience across multiple
touchpoints, including product11March 9th 2023

ESG is a Long-term Value DriverStrengthening governance• Sustainability Committee driving progress on
strategic objectives such as climate change
mitigation and DE&I
• Established dedicated Operating Committee
to ensure ESG topics are embedded at an
operational level across the business• Identified strategic figures in key
departments to lead on unlocking biggest
sustainability challenges• Updated Code of Ethics and Anti-Corruption
Policy, new Policy on Human Rights andSuppliers Code of Conduct, open
Whistleblowing platform

12March 9th 2023

ESG is a Long-term Value Driver
Concrete actions and progress

PlanetPeopleCulture• New commitment on Biodiversity
enhanced by raw materials
traceability• Designed robust Diversity, Equityand Inclusion (DE&I) roadmap, tobe implemented in 2023

• Improved engagement from key
departments through targetedsustainability training• Scope 1 & 2 emissions reductiontargets sustained by clear andstrong initiatives• Continued engagement and active
contribution of Prada Group
employees on sustainability topics
through Drivers of Change
programme• Sea Beyond programme inpartnership with UNESCO
continued, with strengthened
ambitions in 2023

• Re.Crea Consortium to manage
products end-of-life, in partnershipwith other Italian brands• Participation in The Fashion Pactled Collective Virtual Power
Purchase Agreement (CVPPA)
initiative to encourage adoption ofrenewable electricity• Prada Group's North American
subsidiary sealed strategic
partnerships with prominent
non-governmental entities anduniversities to improve access toopportunities in fashion

13

March 9th 2023

AgendaPatrizio Bertelli
Opening Remarks and Business Update
Lorenzo Bertelli
Key Marketing and ESG Initiatives
Andrea Bonini
FY-22 Financial Review
Andrea Guerra
FY-23 Priorities and Closing Remarks
Q&A Session

14

March 9th 2023

Key Financials

Excellent growth, strong profitability and NFP improvement
FY-22 Net Revenues€4,201 mln (+21% vs. 21 / +32% vs. 19) (1)FY-22 EBIT Adj.
€845 mln (2)FY-22 Net Operating Cash Flow (3)€696 mln

Retail Sales (€ mln) and growth (%) (1)

EBIT / EBIT Adj. (€ mln) and margin (%)

Net Financial Position (€ mln) (4)

+45%

14.8%
Adj.

20.1%
Adj.

14.5%

18.5%

+24%
9.5%

3,737
845

2,931

535

2,636
776

238

499
307

489-406

FY-19//

FY-21

FY-22

FY-19//

FY-21

FY-22

FY-19//

FY-21

FY-22

At constant fx (%)
EBIT Adjusted excludes other non-recurring income and expenses (for FY-22, €42 mln writedown of non-current assets in Russia, €19m writedown of the Church’s brand and €8 mln for settlement of a litigation)(3) Net cash flow from operating activities, less repayment of lease liabilities (4) (Net debt) / Net cash position
(1)

(2)

15

March 9th 2023

Net Revenues by Channel

Excellent retail performance throughout the year
FY-22

H1-22
vs.
H1-21

H2-22
vs.
H2-21

FY-22
vs.
FY-21

FY-22vs.
FY-19

Retail

3,737

+26%

+22%

+24%

+45%

Wholesale388-3%-1%

-2%

-30%

Royalties

76+22%+85%+55%

+80%

Total

4,201+22%+20%+21%+32%€ mln% at constant fx

Wholesale9%Royalties
2%

Retail89%•Retail- Strong retail performance driven by like-for-like, full price sales- Positive contribution from both average price and full price volumes- Acceleration on a 3-year stack basis across the year (H1 +38%, H2 +51%)- Online penetration stable at 7% of Retail sales•

Wholesale- Revenues from independent clients growing low single-digit, in line with selective approach- DFS channel negatively impacted by Covid restrictions•Royalties- Sharp growth supported by both fragrances and eyewear
16March 9th 2023

Retail Sales by GeographyRemarkable growth across all regions ex Asia, impacted by China
FY-22

H1-22vs.
H1-21

H2-22vs.
H2-21

FY-22vs.
FY-21

FY-22vs.
FY-19

Asia Pacific1,232-7%+3%-2%+29%

Europe1,187+89%+44%+63%+48%

Americas782+41%+9%+22%+106%

Japan369+28%+32%+31%+9%Middle East

167

+24%+22%+23%+76%

Total

3,737

+26%

+22%+24%+45%€ mln% at constant fx

MiddleEast 4%Japan
10%APAC
33%Americas
21%Europe32%• Asia Pacific region returned to moderate growth in H2- Decline in China offset by growth in South Korea and particularly buoyant South East Asia
• Outstanding performance in Europe driven by both tourism and domestic consumption• Americas growth moderated in H2 due to increasingly strong comparatives and outbound tourist flows- Strong trend in the North American cohort across the year
• Solid growth in Japan, with accelleration in H2, and Middle East17March 9th 2023

Retail Sales by ProductContinued double digit growth across all categories€ mln% at constant fx

Leather Goods

FY-22

H1-22vs.
H1-21

H2-22vs.
H2-21

FY-22vs.
FY-21

FY-22vs.
FY-19

1,862+18%+19%+18%+28%

Ready to Wear

1,086+32%+24%+27%+75%

Footwear691+39%+22%+29%+52%

Other98+86%+71%+77%+72%

Total

3,737+26%+22%+24%+45%

Other
3%

Shoes
18%
Leather Goods
50%
RTW
29%

•

Leather Goods- Elevated, richer product collections- Successful introduction of new products (e.g. Prada Flou and Miu Wander) and continued
growth of classics•RTW- Highly appreciated new collections for both Prada and Miu Miu•Footwear- Strong growth driven by both formal and lifestyle products

18March 9th 2023

Retail Sales by Brand

Ongoing brand momentum drives strong double-digit growth at both Prada and Miu Miu
FY-22

H1-22vs.
H1-21

H2-22vs.
H2-21

FY-22vs.
FY-21

FY-22vs.
FY-19

Prada

3,252+28%+22%+25%+52%

Miu Miu

432+14%+27%+20%+14%

Church’s

29+29%-20%-2%-43%

Other (1)24+87%+18%+39%+26%

Total

3,737

+26%+22%+24%+45%€ mln% at constant fx

Church's Other1%1%
Miu Miu
12%

Prada86%•Prada- Continued strong retail performance across all categories- All regions except Asia up double digit, with significant improvement in store productivity- Balanced growth across customer gender and age groups•Miu Miu- Sharp acceleration in H2 with remarkable performances in all geographies- Successful introduction of new products drove double digit growth across all categories in H1 and H2•

Church’s- Business reorganisation, from manufacturing to retail, aimed at further integration and higher productivity(1)

Includes Marchesi and Car Shoe

19

March 9th 2023

Gross Margin Development

310 bps increase driven by average price, channel and scale

3.1%

78.8%

Avg. Price
Channel Mix
Scale
Cost Inflation
FX / Hedging

FY-22

75.7%

FY-21

20

March 9th 2023

Operating Expenses

OPEX decline as a % of Net Revenues by 210 bps€ mln

Operating costs (1)FY-21% on Net
Revenues

FY-22% on Net
Revenues

FY-22
vs. FY-21

Selling

1,421

42.2%

1,704

40.6%

+20%

Advertising & Promotion

294

8.7%

359

8.5%

+22%

Design and ProductDevelopment

115

3.4%

137

3.3%

+19%

G&A

217

6.5%

266

6.3%

+22%

Total

2,048

60.8%

2,467

58.7%+20%

EBIT Adj.

499

14.8%

845

20.1%

+69%

•OPEX increase (+20% reported, +17% constant fx) mainly driven by variable component, marketinginvestments and store events, labour costs and decrease in COVID contributions•

EBIT Adjusted up by 69%, 530 basis points yoy improvement to 20.1%(1)

Excludes other non-recurring income and expenses

21

March 9th 2023

CapexAccelerated investments in Retail, IT and Industrial Infrastructure
276
€ mln
Corporate, IT & Industrial
Real Estate

217

107

Retail72

59
169
86

FY-2 1FY-2 2•~170 renovation and relocation projects, accounting for ~80% of Retail capex•

23 net closures vs. FY-21 (17 openings and 40 closures) / 612 DOS end of Dec 2022•€43 mln Industrial Capex and €53 mln IT Capex

22March 9th 2023

Net Operating Working Capital
NWC slightly declines over Net Sales

691
602

€ mln
Trade Receivables

332
329

Inventory
Trade Payables

760

663

% of Net Sales (1)(1)-390-402

FY-21

FY-22

FY-21

FY-22

18%

17%

Net Revenues excluding Royalties

23March 9th 2023

Net Financial Position

Strong balance sheet with Net Cash of €535 mln€ mln

Opening Net Financial Position Surplus / (Deficit) - 31/12/2021

238

Consolidated Net Result

469

Net Working Capital-112

Depreciation and Amortisation+283

Capital Expenditures and Investments-250

Dividends-180

Other87

Closing Net Financial Position Surplus / (Deficit) - 31/12/2022

535

•

(1)

For FY-22 the Board of Directors propose a dividend per share of € 0.11, equal to total dividendof €281 mln (1) (~ 60% pay-out ratio)
Considering 2,558,824,000 shares outstanding at 31 December 2022

24

March 9th 2023

AgendaPatrizio Bertelli
Opening Remarks and Business Update
Lorenzo Bertelli
Key Marketing and ESG Initiatives
Andrea Bonini
FY-22 Financial Review
Andrea Guerra
FY-23 Priorities and Closing Remarks
Q&A Session

25

March 9th 2023

Priorities for FY-23

Vast growth potential achievable through disciplined execution• Continue to invest behind brand desirability– Amplify Prada’s potential– Enlarge Miu Miu’s brand awareness and client base• Execute with discipline; build retail excellence to drive
productivity– “360°” approach– Omnichannel and clienteling acceleration– Upgrade existing store network and selective openings• Prioritise Leather Goods for both Prada and Miu Miu– Nurture newness and existing productswith “icon” potential• Further accelerate industrial and IT investments• Continue to deliver solid growth, above market average– Cost and capital allocation discipline

26

March 9th 2023

AgendaPatrizio Bertelli
Opening Remarks and Business Update
Lorenzo Bertelli
Key Marketing and ESG Initiatives
Andrea Bonini
FY-22 Financial Review
Andrea Guerra
FY-23 Priorities and Closing Remarks
Q&A Session

27

March 9th 2023

APPENDIX

28

March 9th 2023

Condensed P&L€ mln

FY-21

FY-22

Net revenues

3,366

100%

4,201

100%

COGS

-818

-24.3%-889-21.2%

Gross profit

2,547

75.7%

3,312

78.8%

Selling-1,421-42.2%-1,704-40.6%

Advertising & promotion

-294

-8.7%

-359

-8.5%

Design and product development

-115

-3.4%

-137

-3.3%

G&A

-217

-6.5%

-266

-6.3%

Operating expenses-2,048-60.8%-2,467-58.7%EBIT Adj.

499

14.8%

845

20.1%

Non-recurring items

-10

-0.3%

-69

-1.6%

EBIT

489

14.5%

776

18.5%

Total financial expenses

-68

-2.0%

-65

-1.5%

EBT

422

12.5%

711

16.9%

Income taxes

-127

-3.8%

-242

-5.8%

Minority income

10.0%

40.1%

Group net income / (Loss)

294

8.8%

465

11.1%

Total D&A

-631

-18.7%

-734

17.5%

29

March 9th 2023

Condensed Balance Sheet€ mln

31 Dec 2021

31 Dec 2022

Right of use

1,956

2,011

Non current assets (excl deferred tax assets)

2,490

2,517

Net operating working capital

602

691

Other current assets / (liabilities), net

-163

-293

Other non current assets / (liabilities), net

51

148

Net invested capital

4,936

5,074

Consolidated shareholders’ equity

3,129

3,501

Net financial position (surplus) / deficit-238-535Long term lease liability

1,627

1,715

Short term lease liability

418

392

Total

4,936

5,074

Net operating cash flow

751

696

Net working capital / Net sales

18%

17%

Capex

217

276

Negative

Negative

Debt / Equity

30

March 9th 2023