MODERN SL AVERY STATEMENTFOR THE FINANCIAL PERIOD 2022

— Introduction
This document, whose content refers to the fiscal year of 12 months ended December 31, 2022, was approved by the
Board of Directors of Prada S.p.A. on May 11, 2023 and describes the measures taken by the Prada Group (hereinafteralso "the Group" or "Prada") to ensure, as required by the UK "Modern Slavery Act 2015 - Section 54", the absence ofany form of “modern slavery, forced labor and human trafficking” within its organization and along its supply chain.
This statement is also made on behalf of the following companies controlled by the Prada Group: Prada Retail UK Ltd andChurch & Co Ltd.

MODERN SLAVERY STATEMENT FOR THE FINANCIAL PERIOD 2022

1

— Prada Group€4.2
Billion2022 Revenues

612
DOS

at December 31, 2022

The Prada Group operates in the luxury goods
industry with the Prada, Miu Miu, Church's and Car
Shoe brands in the design, production and distributionof luxury handbags, leather goods, footwear, appareland accessories. The Group also operates in theeyewear and fragrance industries under specificlicensing agreements and, with the acquisition of
Pasticceria Marchesi 1824, has made its entry into
the food industry, where it is positioned at the highest
levels of quality. Finally, in 2021, to fully develop its
potential, the Luna Rossa brand also becomes partof the Prada Group following the acquisition of Luna
Rossa Challenge S.r.l..

13,768
Employees

at December 31, 2022

24

Industrial sites
at December 31, 2022

and franchise stores. Also at December 31, 2022, theGroup’s headcount amounted to 13,768 employees,
39% of which were in Italy where 21 out of 24 Group’s
industrial sites are localized.
Prada S.p.A., the parent company, is a joint-stockcompany with limited liabilities, domiciled in Italy
and listed on the Main Board of the Hong Kong Stock
Exchange. At December 31, 2022, 79.98% of theshare capital of Euro 255,882,400.00 is owned by
Prada Holding S.p.A., a company domiciled in Milan(Italy), while the remaining shares are floating.

As of December 31, 2022, the Group’s products are
sold in 70 countries around the world through 612
Directly Operated Stores (DOS) and a select networkof luxury department stores, independent retailers

MODERN SLAVERY STATEMENT FOR THE FINANCIAL PERIOD 20222

— Ethical principles

partners, by being a prerequisite for the establishmentof all contractual relationships.

The Prada Group’s strategic choices have always been
guided by a desire for lasting success that benefits
all its stakeholders, be they shareholders, employees,
customers or the communities in which the Group
operates. Prada S.p.A.’s Board of Directors is in factcommitted to conducting the business responsibly, tobuilding an inclusive and safe work environment for
all, in the conservation of the environment and in theprotection of the communities in which the Group
operates.

The Code of Ethics is also a reminder of the Group’s
ethical whistleblowing system that enables anyone, bethey internal or external stakeholder of the Group, toreport a violation or suspected breach of the Codeand its principles; at the end of 2022, an Ethics
Committee has been set up to receive, process andassess on a case-by-case basis any alert received
through the whistleblowing channels.

Sustainability, increasingly rooted in corporate
strategy, together with a continuous and transparent
dialogue with stakeholders, are key factors to reaffirm
the identity of the Group and support the competitiveedge of the company, as well as to face changes andcontemporary and future challenges and grant a longterm sustainable development.
Also for this reason, at the beginning of 2019, Prada
S.p.A. Board of Directors approved the Sustainability
Policy, in which the Group declares its commitment
to operate in full respect of the value of the individualand for the human and workers' rights, enshrined
both in the regulations of the countries in which
it operates and in the international covenants anddeclarations - such as the United Nations Universal
Declaration of Human Rights, the International Labor
Organization (ILO) Declaration on Fundamental
Principles and Rights at Work, and the Organization
for Economic Co-operation and Development (OECD)
Guidelines for Multinational Enterprises.

The publication in 2022 of the Human Rights Policy
allowed to further articulate certain undertakings
formalized in the Code of Ethics, highlighting theGroup’s commitment to respect all human rights not
only within its own operations, but also to promote theadherence to the same principles among its suppliersor business partners. Respect for and protectionof human rights, for all Group employees andemployees in the supply chains of its brands, is central
to the Group’s ethical commitments and strategic
choices. The Policy includes the principles set out
in the Universal Declaration of Human Rights, thefundamental conventions of the International Labour
Organization, the United Nations Guiding Principles
on Business and Human Rights and the United Nations
Global Compact.
The Prada Group takes a cross-functional approachto governance over human rights, integrated into
its overall governance structure for sustainability.
Specifically, human rights governance spans various
departments, starting with Human Resources, DE&I,
CSR, Internal Audit and Industrial department.

The Board of Directors considers respect for ethicalprinciples to be the foundation of the enterprise’s
success and represents an important expression of
Prada’s image and reputation. Since 2007, the PradaGroup’s founding values and principles have been
given formal expression in its Code of Ethics: updated
in 2022, the Code is communicated to all employees,
collaborators and business partners and specifies
that these principles apply to both Group’s companies
and suppliers, by a set of procedures that turnthese values into daily actions. The Group promotes
knowledge of the Code through various means suchas online publications, direct communications andinternal trainings, and by procedure, as part of the
supply or commercial agreement with most of the

MODERN SLAVERY STATEMENT FOR THE FINANCIAL PERIOD 2022

3

— Industrial strategy
The Prada Group's competitive advantage also derives
from its distinctive manufacturing tradition, developed
through the buildup of its production premises, theprogressive expansion of its manufacturing skills andenhanced control over its supplier network.
In recent years, thanks to investments of more thanEuro 140 million since 2019, the Prada Group's
industrial strategy has focused on strong vertical
integration of the supply chain, progressive insourcingof sensitive phases of the production process and theacquisition of key capabilities. These decisions havehighlighted the great advantages in terms of speed of
response to rapid market changes and the ability toadapt the business model, given that competitivenessis increasingly based on such factors.
The Prada Group relies on a high degree of autonomy
also thanks to investments in the expansion of its
facilities and an important hiring plan; the Group,in fact, has realized all its prototypes internally formany years and in the past few years it has gradually
insourced its leather cutting phases followed by the
handbag and footwear assembly processes.

MODERN SLAVERY STATEMENT FOR THE FINANCIAL PERIOD 2022

Control of all raw materials and finished products
is now managed in-house, as well as the logistics offinished products.
Vertical integration, internalization and innovation
effectively ensure more control over value creation,
an extremely important aspect even from asustainability standpoint, not just for the processes
but especially in terms of responsible supply chain
management.
Thanks to the acceleration recorded in recent years
in the selection process of the industrial supply chain,
the Group works with the best suppliers, in their own
right leaders and reference points in their sectors.
In most cases, these are long-term relationships,
initiated and maintained following a rigorous selection
process, whose strict parameters are intended
to ensure the highest standards of technical andeconomical, as well as ethical reliability. The PradaGroup has always valued long-term relationships
built on steady interactions, which are also crucial formutual growth.

4

— Supply chain profile
The Prada Group's business model is based on a value
chain that combines artisanal skills with the industrialorganization of production and distribution processes.
As of December 31, 2022, the production of the Groupis entrusted to 24 manufacturing facilities located inEurope (21 of them in Italy) and to a network of external
producers carefully selected for their craftsmanship,
quality and reliability. All stages of the production
process are controlled by Prada’s technicians in order toensure, in addition to quality standards of the products,
also the compliance of the entire supply chain with theprinciples of the Code of Ethics that all suppliers must
subscribe.
In 2022, the Group collaborated with about 880 raw
materials and semi-manufactured products direct
suppliers. Overall, approximately 87% of the Group's
industrial suppliers are located in Italy and about 54%of them have been working with the Prada Group for
more than 10 years; from the beginning a strategic
choice for Prada, which has always considered acompetitive leverage to root its supply chain in thoseterritories where the manufacturing sector represents an
excellence appreciated all over the world.

Geographical distribution of the
supply chain

5%
EUThe supply chain of the Prada Group is completed with
operators not related to the production cycle, among
which – as an example - the suppliers of commercial
spaces, logistic services, media spaces, and services
providers linked to the management of stores in the
countries where the Group operates with its retail
activities; suppliers that, generally, are represented bylarge and primary companies.
The Prada Group believes that the risk of modern
slavery within its organization is non-existent, while itdeemed that same risk as overall low along its externalindustrial supply chain. The geographic location of the
suppliers selected by the Group, as well as the profoundknowledge of the same in terms of duration and qualityof the established partnerships, combined with thesystematic control of the quality of the production at
the suppliers’ sites, reduces the risk of conditions or
pre-conditions such as to constitute circumstances ofmodern slavery, forced labor and human trafficking.

Duration of collaborative relationships
with suppliers

21%

8%

5-10 years

Extra EU

87%
Italy

MODERN SLAVERY STATEMENT FOR THE FINANCIAL PERIOD 2022

54%
> 10 years

25%< 5 years5

— Supply chain
responsible
management
As already anticipated, for the Prada Group, theselection of its suppliers is fundamental not only forreaching the highest standards of product excellence,but also for creating long-term value. In fact, througha collaborative and transparent approach, the Group
has always worked with its suppliers to implement
work, health, safety and environmental standards in theworkplace and, therefore, to transmit its high ethicalstandards.
This collaboration favors long-term relationships and isbased on regular dealings, to share mutual growth anda common strategic objective, reducing the risk of noncompliance with the Group's Code of Ethics and thecurrent regulations. Another fundamental factor is theproximity of the supply chain to the Prada Group; thevicinity enables Prada to perform a constant monitoring
activity, even daily for the main suppliers, for the
purpose of control and risk management.
The location of the supply chain in Italy is also important
for the working conditions of the employees, as they
are governed by the collective bargaining agreements
currently in force. The Italian Collective Bargaining
Agreement (CCNL) supplements the law and is
stipulated at a national level between trade unions
and associations representing companies. The CCNL
regulates the rights, guarantees and obligations of all
workers in terms of pay and regulatory provisions, suchas guaranteed minimum wages, working hours, vacation
time, seniority treatment, treatment of overtime,
holiday and night-time work (with the related pay
increases), the duration of the trial period and notice
period, sick leave, maternity leave, accident leave andthe disciplinary code. The CCNL is negotiated andrenewed every three years, thus allowing for wage
and regulatory adjustments in line with economic andlegislative changes in Italy.
In the past few years, Prada has directed efforts towardraising awareness in the purchasing structures of more
responsible management of the industrial supply chain.
To this end, in early 2017 the Group adopted a Qualified
Vendor List procedure to define the responsibilities
and operational criteria required to evaluate the ethical,

MODERN SLAVERY STATEMENT FOR THE FINANCIAL PERIOD 2022

technical and economical reliability of its suppliers.
The list is part of the controls needed to initiate andcontinue with the supply relationship, as set out in the
procurement policy, which calls for mitigating risks
of non-compliance through additional checks andaccountability.
With respect to ethical issues, the accreditation andmaintenance of a supplier's qualification are confirmed
through requested documents, attestations and selfcertifications that ensure compliance with the laws
on remuneration, social security, taxes, occupational
health and safety, the environment, privacy and thegovernance model. Finally, the Code of Ethics must be
signed in order to work with Prada.
The Code of Ethics - revised in 2022 - enshrines thefundamental ethical principles for the Prada Group,
which in turn inspire other policies and documents
such as the Human Rights Policy and the Supplier
Code of Conduct - both formalized in 2022 - thatfurther reinforce respect for human rights, for all
Group employees and those in supply chains. Throughthe implementation of the Code, the Group requires
its suppliers to commit to high ethical standards andrespect for human rights in their production sites andamong their subcontractors, as well as aspects related
to environmental protection (e.g. legal compliance,
chemical use, waste management and wastewater
treatment) and raw material sourcing (e.g. biodiversity,
animal welfare, traceability).
This information asset undergoes systematic first-leveland second-level controls, including interim ones,
to ensure that the information is updated, true andconsistent. Such controls, which involve documents
and are performed by the procurement structures orbusiness areas specialized in the various topics, are also
conducted upon notification of potential situations ofcrisis, breaches or anomalies; in these circumstances,the procedure involves additional analysis, targeted
controls or an immediate encounter with the parties
involved. The procedure, initially applied to suppliersin the manufacturing area, has now been implemented
with the engineering and logistics suppliers and isgradually being extended to the other business areas.
Although the Prada Group considers the risk of
non-compliance throughout its direct supply chain
to be low, thanks to its geographical location and theduration and quality of the relationships established,6it is aware that first-tier suppliers use subcontracting,and of the reputational and legal risks associated with
that, including in terms of human rights infringement
and child labour. For this reason, in 2019 the Groupset up internally a task force dedicated to tightening
the controls over the supply chain and respond to thegrowing demand for transparency and accountability
in the sourcing and production practices. The Group
formalized then in 2020 the inspecting activity with adedicated procedure.
The work team consists of representatives of theadministrative, occupational safety, compliance andhuman resource functions and assists production
division managers with controls at supplier and/or subsupplier premises, reviewing documents and checking
the observance of the Group's ethical principles andproper application of labour, tax, occupational safety
and environmental regulations.
The inspection plan includes a risk assessment,
conducted in the first phase by the various managers,
also according to the composition of the industrial
supply chain in terms of supply and subcontracting, andany critical issues detected by them or by the functions
responsible for the second-level controls during theperiodic inspections required by the Qualified Vendor
List procedure.

most important portion of the industrial supply chain isrooted, focusing on both first and second tier suppliers
for all three industrial divisions: leather goods, footwear
and clothing.
Due to the health emergency, control activities slowed
down but, since 2021, have been carried out regularly
with the aim of covering suppliers representing 80% of
the Group's turnover. In the period 2019-2022, there
were approximately 340 first and second-tier suppliers
involved, and the Group took corrective action on
supply relationships where it found serious irregularities
with respect to its ethical standards.
The breaches found and reported to first-tier suppliers
for the necessary corrective actions are linked to theirsub-contracting relationships and mainly concernedsocial security and tax aspects, the workplace,occupational safety and the work force employed interms of contractual conditions and actual working
hours. The Prada Group is constantly committed
to identifying corrective actions, depending on thenature of the irregularities detected, to accompany its
industrial supply chain on a path of improvement, notonly in terms of quality, but also in terms of ethicalstandards.

The analysis performed during the inspections, which
follow a six-month schedule, completes other controls
carried out in previous phases and those foreseen by
the Qualified Vendor List procedure, thus strengthening
the control over the industrial supply chain, ensuring
compliance with the Code of Ethics and current
regulations.
The results of the inspections are reported to thevarious managers so that a corrective action plan
(Remediation Plan) can be drawn up in the event ofbreaches or partial breaches of the criteria standards,
and corrective actions are identified that the suppliermust implement over a period of time that varies
according to the irregularity found. In the event ofserious breach, or the supplier's inability to ensure a
positive outcome in the prescribed time, termination of
the supply relationship is evaluated.
Since 2019, with the aim of bringing the monitoring andmanagement of the supply chain to the Group's levelsof excellence, the task force operates in Italy, where the

MODERN SLAVERY STATEMENT FOR THE FINANCIAL PERIOD 2022

7

— Training— Outlook

In 2022, the Prada Group continued its commitment
to the important path of education on social andenvironmental sustainability issues, which began in
2021. The main objective of the educational program is
to create a corporate culture on sustainability in generaland the Group's long-term commitment to these issues.

The Prada Group is committed to identify opportunities
for continuous improvement and to strengthen systems
and controls for the respect of human rights across the
supply chain, regularly assessing the adequacy of theprocedural framework. Furthermore, Prada undertakes
a constant review and rationalization of its industrial
suppliers to increasingly minimize its risk profile.

Dedicated courses have been organized to involve
the various corporate functions on the main issues
and to train the industrial area on the ethical issues
most relevant to the responsible management of
manufacturing supply chains, in particular the risks
associated with human rights abuses and modern slavery,
thereby acquiring new knowledge and skills, but also thenecessary sensitivity to manage relations with industrial
suppliers in an increasingly responsible manner.
In addition, a training course on the general principles ofhuman rights was designed and developed in 2022 andwill be made available to the Group’s employees in 2023.

During 2023, the control activities on suppliers willcontinue in order to promptly and efficiently monitor
and mitigate the risks associated with the supply
chain management, as well as the training activities
deemed essential to create a corporate culture aroundsustainability matters.
The Group will work proactively for the continuous
enhancement of responsible business practices bysearching new ways to encourage the respect of humanrights, a shared approach with suppliers and business
partners.

Approved by the Board of Directors of Prada S.p.A.
Milan (Italy), May 11, 2023

MODERN SLAVERY STATEMENT FOR THE FINANCIAL PERIOD 20228