FY-23
Results Presentation

Milan, March 7th 2024
1

March 7th 2024

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2March 7th 2024

AgendaPatrizio Bertelli - Chairman and Executive Director
Highlights
Lorenzo Bertelli - Marketing Director and Head of CSR
Key Marketing Initiatives and ESG Update
Andrea Guerra - Group CEO
Business Update
Andrea Bonini - Group CFO
FY-23 Financial Review
Andrea Guerra - Group CEO
Priorities for FY-24 and Closing Remarks
Q&A Session

3

March 7th 2024

Very positive Q4 ends a year of strong progress andresults, fully delivering on ambitions

Strong and high-quality
growth, with consistentdelivery

Very satisfactory, abovemarket performance atboth Prada and Miu Miu

Continued profitability
improvement coupledwith substantial
investment behind thebrandsNet Revenues€4.7 bln+17% constant fx

Prada +12%
Miu Miu +58%
Retail, constant fx

EBIT Margin
22.5%€1,062 mln

Acceleration of capex
plan for the growth oftomorrow

Capex€371 mln (1)Solid progress on the strategic, organisational and digital evolution of the Group(1) Excludes real estate investments

4

March 7th 2024

AgendaPatrizio Bertelli - Chairman and Executive Director
Highlights
Lorenzo Bertelli - Marketing Director and Head of CSR
Key Marketing Initiatives and ESG Update
Andrea Guerra - Group CEO
Business Update
Andrea Bonini - Group CFO
FY-23 Financial Review
Andrea Guerra - Group CEO
Priorities for FY-24 and Closing Remarks
Q&A Session

5

March 7th 2024

PradaContinued to capitalise on strengthened brand desirability

Distinctive brand experiences worldwide:
Pradasphere II, Prada Mode,
Prada Frames, Prada Caffè

Exclusive collaborations andground-breaking partnerships
continue to excite• Continued excellent reception of Prada
Menswear and Womenswear fashion shows
throughout the year

• Over a century of Prada’s history and culture on
display at Start Museum in Shanghai for the
Pradasphere II exhibition• Strong talent strategy to support brand visibility
worldwide with involvement of personalities
such as Benedict Cumberbatch, Hunter
Schafer, Jake Gyllenhaal, Emma Watson,
Scarlett Johansson, Letitia Wright, Li Xian• 9th and 10th iteration of Prada Mode presented
with Tokyo Metropolitan Government at the Teien
Art Museum and at the cultural venue KOTE in
Seoul; 4th iteration of Prada Extends in Bangkok• Innovative partnership with Axiom Space on
NASA’s lunar spacesuits for Artemis III mission,leveraging Prada’s decades of technologicalknow-how

Impactful fashion shows
and campaigns drive interest• 2023 Prada Frames symposium “Materials in Flux”
held in prestigious M+ Museum in Hong Kong

• Enhancing Prada Linea Rossa brandpositioning in the sport ecosystem: “Adidas
Football for Prada“ collection and partnerships
with Redbull athletes• Prada Caffè success: new brand experience inLondon and Shanghai

6March 7th 2024

Miu Miu
Continued brand evolution

Brand resonancekeeps rising

Growth fueled byboth iconic and viral products• Miu Miu sparks: highly acclaimed fashion shows
combined with powerful campaigns featuring its
talents’ club including Emma Corrin, Sydney
Sweeney, Gigi Hadid, Cailee Spaeny, Momo,
Lexi Liu• Introduction of new bags Arcadie and Ivy• Excellent reception of the brand iconic event
formats such as Miu Miu Club in Malibu andTokyo and Miu Miu Select appointments in
London, NY, Taipei and Nanjing• Ready-to-Wear strong reception of all collection
drops• Second successful drop of New Balance X Miu
Miu and acclaimed new collab Church’s X Miu
Miu

7

Miu Miu Women’s Tales
project enhanced• Reveal of the new Miu Miu Women’s Tales
Committee at 2023 Venice Film Festival; thisgroup of distinguished film-world thought
leaders will drive the evolution of the project• 25th and 26th episodes unveiled throughout
the year with successful events

March 7th 2024

ESG Focus 2023

for PLANET

CLIMATE
58% reduction of Scope 1 & 2 GHG emissions (vs 2019baseline), fully on track to achieve 2026 Science-Based Target
thanks to:• -42% natural gas consumption• 87% green electricity purchased at global scale• 18 owned photovoltaic plants• 71% green company’s car fleet

PRESERVE THE ECOSYSTEM• >75% of leather and textile suppliers involved
in ZDHC program• defined new targets on leather and viscose interms of certifications
CIRCULAR THINKING• 100% recycled gold for Eternal Gold jewlery
second collection• 100% textile waste recycled

Working on Scope 3 GHG emissions reduction to meet 2029
Science-Based Target:• defined targets to transition key raw materials to lower impact
solutions (cotton and synthetic fibers)• first LCA on iconic materials (Re-Nylon) and products• >75% recycled paper for packaging• invested in SAF certificates to contribute to aviation industry
decarbonisation
8

March 7th 2024

ESG Focus 2023

for PEOPLE

for CULTURE

GENDER EQUALITY• 63% women in total workforce• >50% women across all functions and geographies• 44% women in top and senior management

SEA BEYOND EDUCATIONAL PROGRAM• Significant increase in funding to support SEA
BEYOND with a dedicated portion of the proceedsfrom the Prada Re-Nylon Collection. Additional
resources have allowed SEA BEYOND to expand its
scope beyond education and explore two new
ocean-related areas of focus: support to scientificresearch and humanitarian projects

PRADA GROUP INDUSTRIAL ACADEMY• 143 young people trained and around 80% hired in Group’s
production area
WORLDWIDE TRAINING• Design team involved in eco-design and sustainability
training activities• New CPO appointed in September 2023

9

March 7th 2024

AgendaPatrizio Bertelli - Chairman and Executive Director
Highlights
Lorenzo Bertelli - Marketing Director and Head of CSR
Key Marketing Initiatives and ESG Update
Andrea Guerra - Group CEO
Business Update
Andrea Bonini - Group CFO
FY-23 Financial Review
Andrea Guerra - Group CEO
Priorities for FY-24 and Closing Remarks
Q&A Session

10

March 7th 2024

Prada•A very important and successful year: strengthened brand desirability,
reinforced and evolved organisation and solid execution•

Continued affirmation of Prada’s creative codes and cultural relevance in theindustry, with remarkable market response to all shows and collections•

Another year of double-digit, above-market growth; very consistentdelivery of like-for-like performance over 12 consecutive quarters•

Well-balanced product category mix driving growth and resilience-

Icons and newness in Leather Goods; better coverage ofstrategic price points-

Clean and clear identity, exceptional dynamism in RTW•

Solid progress on retail execution metrics with still significant room for
improvement•

Uncompromised focus on quality and long-term sustainability ofgrowth-Acceleration of investments for the growth of tomorrow

11

March 7th 2024

Miu Miu•

Remarkable results built on foundations laid in the past few years
across brand, product, distribution and organisation•

Excellent brand momentum globally, with growing awareness anddesirability•

Trend-setting creative vision and powerful identity translating into
strong commercial response across all categories-

Multiple successful launches in Leather Goods, ongoing
focus to re-establish strong brand recognition in bags-

Strong performance of RTW collections, continuous unveiling of«viral» products-

Committed to build solid core in Footwear•

Like-for-like performance translated into significant uplift inproductivity and brand profitability•

Vast opportunity ahead continuing on the path of retail execution andconsidered footprint expansion

12

March 7th 2024

AgendaPatrizio Bertelli - Chairman and Executive Director
Highlights
Lorenzo Bertelli - Marketing Director and Head of CSR
Key Marketing Initiatives and ESG Update
Andrea Guerra - Group CEO
Business Update
Andrea Bonini - Group CFO
FY-23 Financial Review
Andrea Guerra - Group CEO
Priorities for FY-24 and Closing Remarks
Q&A Session

13

March 7th 2024

Key Financials
Sustained and high-quality growth, continued profitability improvement
FY-23 Net Revenues€4,726 mln (+13% vs. FY-22 / +17% at constant fx)
Retail Sales (€ mln) and growth (%) (1)FY-23 EBIT
€1,062 mln

FY-23 Cash Flow from Operations€1,265 mln

EBIT / EBIT Adj. (2) (€ mln) and margin (%)

Cash Flow from Operations (3) andNet Financial Position (€ mln) (4)

+46%
14.8%

+17%

20.1%

22.5%

238

535

4,190

197

1,265

3,737
1,062

2,931

965
833

845

499

FY-21

FY-22

FY-23

(1) At constant fx (%) (2) EBIT Adjusted for FY-21 and FY-22

FY-21

FY-22

FY-23

FY-21

FY-22

FY-23

(3) Cash flow from operating activities, less repayment of lease liabilities (4) (Net debt) / Net cash position

14

March 7th 2024

Net Revenues by Channel
Consistent delivery of high-quality like-for-like Retail growth€ mln% at constant fx

FY-22

Retail

FY-23

FY-23
vs.
FY-22

Q4-23
vs.
Q4-22

3,737

4,190

+17%

+17%

Wholesale

388

433

+13%

+32%

Royalties

76

104

+36%

-6%

Total

4,201

4,726

+17%

Wholesale
9%

+18%

•

Retail- Growth of +17% in FY-23 driven by full price like-for-like sales- Positive contribution from both average price and full price volumes throughout the year
- Strong performance in Q4 (+17%)•

Wholesale- Continued selective approach resulting in flat performance with independent customers- Strong rebound in duty-free channel•

Strong Royalty growth supported by both eyewear and fragrances•

Negative FX impact of 465 bps on performance at current exchange rates
15

Royalties2%

Retail89%

March 7th 2024

Retail Sales by Brand
Above-market growth at both Prada and Miu Miu€ mln% at constant fx

FY-22

Prada

FY-23

FY-23
vs.
FY-22

Q4-23
vs.
Q4-22

3,252

3,488

+12%

+10%

Miu Miu

432

649

+58%

+82%

Church’s

33

29

-13%

+3%

Other

(1)

Total

20

24

+19%

+20%

3,737

4,190

+17%

+17%

Church's
1%

Other
1%

Miu Miu
15%

Prada
83%

• High-quality growth at Prada, driven by full price like-for-like sales- Solid growth across categories, genders and age groups- Acceleration in Q4 vs. Q3 across all categories• Excellent organic performance at Miu Miu- Broad-based growth across all categories and regions- Strong trend continued in Q4, further benefitting from acceleration in China• Good progression through the year at Church’s with positive like-for-like performance (negative impact from store
network reduction)(1) Includes Marchesi and Car Shoe

16

March 7th 2024

Retail Sales by Geography
Double-digit growth across all regions with Americas flat
€ mln
% at constant fx

FY-22

Asia Pacific

FY-23

FY-23
vs.
FY-22

Q4-23
vs.
Q4-22

1,232

1,446

+24%

+32%

Europe

1,187

1,312

+14%

+7%

Americas

782

767

0%

+4%

Japan

369

484

+44%

+38%

Middle East

167

180

+10%

+8%

Total

3,737

4,190

+17%

+17%

MiddleEast 4%

Japan
12%
APAC
35%
Americas18%

Europe31%• Strong growth in Asia Pacific, against a volatile basis of comparison during the year
- Re-acceleration in Q4 particularly in Mainland China, HK and Macau, helped by easier comps with solid
underlying trends• Double-digit growth in Europe supported by both domestic and tourist spending- Significant growth in H1, and Q1 in particular, with more normalised but solid performance thereafter• Americas end the year flat, with a sequential improvement in Q4, supported by some repatriation of spending• Japan reported outstanding growth in FY-23, largely driven by local clients and increasingly by tourists• Solid performance in Middle East, including in Q4, notwithstanding intensified geopolitical headwinds
17

March 7th 2024

Profitability
Continued profitability improvement coupled with substantial investments
€ mln

FY-22

% on Net
Revenues

FY-23% on Net
Revenues

FY-23
vs. FY-22

Gross Margin

3,312

78.8%

3,802

80.4%

+15%

Selling

1,704

40.6%

1,873

39.6%

+10%

Advertising and Comm.

359

8.5%

420

8.9%

+17%

Product Design and Dev.

137

3.3%

151

3.2%

+10%

G&A

266

6.3%

297

6.3%

+12%

Total Operating Costs (1)

2,467

58.7%

2,740

58.0%

+11%

EBIT

845

20.1%

1,062

22.5%

+26%

Net Income

465

11.1%

671

14.2%

+44%

•
•
•

Gross Margin 80.4%, +160 basis points yoy, sustained by average price, channel mix and scale
OPEX +11% reported, +15% constant fx mainly driven by marketing spend, variable component and labour
cost
EBIT of €1,062 mln (+26% vs. FY-22) and Net Income of €671 mln (+44% vs. FY-22)(1) Excludes other non-recurring income and expenses for FY-22

18

March 7th 2024

CapexAccelerated investments including strategic real estate
753
€ mln
Real Estate
Corporate, IT & Industrial
382

Retail

276

155

107

216

169

FY-2 2••••

FY-2 3~130 renovation and relocation projects, accounting for ~80% of Retail capex
6 net closures vs. FY-22 (26 openings and 32 closures); 606 DOS end of FY-23€48 mln Industrial Capex and €75 mln IT Capex
Real Estate Capex includes €366 mln investment in 724 5th Avenue, NY (1)(1) Net of lease termination

19

March 7th 2024

Net Operating Working Capital
Further improvement over Net Sales

735

€ mln

691

Trade Receivables
Inventory

405

332

Trade Payables% of Net Sales (1)

760

783

-402

-453

FY-22

FY-23

17%

16%

(1) Net Revenues excluding Royalties

20

March 7th 2024

Net Financial Position€ mln

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

535

Consolidated Profit / (Loss) before taxation

971

Depreciation and Amortisation

241

Net Working Capital-90

Tax paid-487

Capital Expenditures and Investments-759

Dividends

-281

Other

67

Closing Net Financial Position Surplus / (Deficit) - 31/12/2023

197•

For FY-23 the Board of Directors propose a dividend per share of €0.137, equal to total dividendof €351 mln(1) (~ 52% pay-out ratio)(1) Considering 2,558,824,000 shares outstanding at 31 December 2023

21

March 7th 2024

AgendaPatrizio Bertelli - Chairman and Executive Director
Highlights
Lorenzo Bertelli - Marketing Director and Head of CSR
Key Marketing Initiatives and ESG Update
Andrea Guerra - Group CEO
Business Update
Andrea Bonini - Group CFO
FY-23 Financial Review
Andrea Guerra - Group CEO
Priorities for FY-24 and Closing Remarks
Q&A Session

22

March 7th 2024

Priorities for FY-24 and Closing Remarks
Ambition to deliver solid, sustainable and above-market growth

Very positive performance in FY-23, delivering on our ambitions andmarking a further significant evolution for Prada GroupFY-24 priority remains fostering the desirability of our brands and continuingon the path towards retail excellence• Ambition to further step up marketing and retail investments, remaining
vigilant and reactive to the environment• Continue to leverage the strong identity, unique creativity and dynamismof our brands, with new and existing clients• Unwavering focus on retail KPIs, continuing to improve retail execution of all
our brands• Continue on the path of brand verticalisation, empowering theirorganisations
We are mindful of persisting geopolitical and macro-economic uncertainty
and of the high comparison baseAs with 2023, while quarterly growth trajectory may not be linear through theyear, we retain our firm ambition to deliver solid, sustainable and abovemarket growth

23

March 7th 2024

AgendaPatrizio Bertelli - Chairman and Executive Director
Highlights
Lorenzo Bertelli - Marketing Director and Head of CSR
Key Marketing Initiatives and ESG Update
Andrea Guerra - Group CEO
Business Update
Andrea Bonini - Group CFO
FY-23 Financial Review
Andrea Guerra - Group CEO
Priorities for FY-24 and Closing Remarks
Q&A Session

24

March 7th 2024

APPENDIX

25

March 7th 2024

Condensed P&L
€ mln

FY-22

FY-23

Net revenues

4,201

100%

4,726

100%

COGS

-889

-21.2%-925-19.6%

Gross profit

3,312

78.8%

3,802

80.4%

Selling-1,704-40.6%-1,873-39.6%

Advertising and communication

-359

-8.5%

-420

-8.9%

Product design and development

-137

-3.3%

-151

-3.2%

G&A

-266

-6.3%

-297

-6.3%

Operating expenses-2,467-58.7%-2,740-58.0%EBIT Adj.

845

20.1%

1,062

22.5%

Non-recurring items

-69

-1.6%

EBIT

776

18.5%

1.062

22.5%

Total financial expenses

-65

-1.5%

-90

-1.9%

EBT

711

16.9%

971

20.6%

Income taxes

-242

-5.8%

-298

-6.3%

Minority income

4

0.1%

2

0.1%

Group net income / (Loss)

465

11.1%

671

14.2%

26

March 7th 2024

Condensed Balance Sheet€ mln

31 Dec 2022

31 Dec 2023

Right of use

2,011

2,025

Non current assets (excl deferred tax assets)

2,517

3,007

Net operating working capital

691

735

Other current assets / (liabilities), net

-293

-146

Other non current assets / (liabilities), net

148

171

Net invested capital

5,074

5,791

Consolidated shareholders’ equity

3,501

3,877

Net financial position (surplus) / deficit

-535

-197

Long term lease liability

1,715

1,700

Short term lease liability

392

411

Total

5,074

5,791

27

March 7th 2024