MODERN SL AVERY STATEMENTFOR THE FINANCIAL PERIOD 2023

— Introduction
This document, whose content refers to the fiscal yearof 12 months ended December 31, 2023, was approvedby the Board of Directors of Prada S.p.A. on April
24, 2024 and describes the measures taken by thePrada Group (hereinafter also "the Group" or "Prada")
to ensure, as required by the UK "Modern Slavery
Act 2015 - Section 54", the absence of any 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 and Church & Co Ltd.

MODERN SLAVERY STATEMENT FOR THE FINANCIAL PERIOD 2023

1

— The Prada Group€4.7

BillionRevenues 2023

14,876
Employees

at December 31, 2023

606

26

Directly Operated StoresIndustrial sites

at December 31, 2023

at December 31, 2023

The Prada Group is a global leader in the luxury
industry and a pioneer in its unconventional dialogue
with contemporary society across diverse culturalspheres.
Home to prestigious brands as Prada, Miu Miu,Church’s, Car Shoe, Marchesi 1824 and Luna Rossa,
the Group remains committed to enhancing their value
by increasing their visibility and desirability over time.
Promoting creativity and sustainable growth, the Group
offers its brands a shared vision that gives each of themthe opportunity to stand out and express their essence.
With 26 owned factories and over 14,800 employees,
the Group designs and produces ready-to-wear,
leather goods, footwear and jewellery collections,and distributes its products in more than 70
countries, through 606 Directly Operated Stores(DOS), e-commerce channels and selected e-tailers
and department stores. Prada Group also operates
in the eyewear and beauty sectors through licensing
agreements with industry leaders.
Prada S.p.A. is listed on the Hong Kong Stock
Exchange as 1913.

MODERN SLAVERY STATEMENT FOR THE FINANCIAL PERIOD 2023

2

— Ethical principles
The Prada Group’s strategic choices have always been
guided by the desire to achieve sustainable success forthe benefit of all its stakeholders, be they shareholders,
employees, customers or the communities in which theGroup operates. Prada S.p.A.’s Board of Directors is infact committed to conducting the business responsibly,
to building an inclusive and safe work environment
for all, in the conservation of the environment and in
the protection of the communities in which the Groupoperates.
Sustainability, increasingly rooted in corporate strategy,
together with a continuous and transparent dialogue
with stakeholders, are key factors to reaffirm theidentity 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, PradaS.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 bothin the regulations of the countries in which it operates
and in the international covenants and declarations such as the United Nations Universal Declaration of
Human Rights, the International Labor Organization(ILO) Declaration on Fundamental Principles andRights at Work, and the Organization for Economic
Co-operation and Development (OECD) Guidelines forMultinational Enterprises.
The Board of Directors considers respect for ethicalprinciples to be the foundation of the enterprise’s
success and represents an important expression ofPrada’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 thatthese principles apply to both Group’s companies andsuppliers, by a set of procedures that turn these values
into daily actions. The Group promotes knowledgeof the Code through various means such as online
publications, direct communications and internal
trainings, and by procedure, as part of the supply
or commercial agreement with most of the partners,

MODERN SLAVERY STATEMENT FOR THE FINANCIAL PERIOD 2023

by being a prerequisite for the establishment of allcontractual relationships.
Overall, the Group Code of Ethics aims to promotecompliance and to ensure the correct application oflaws, regulations and key principles. In fact, the Codecontains the guiding principles of the organization andembeds its core pillars of sustainability – Planet, Peopleand Culture – which were set out in the Sustainability
Policy and formalized in the Group’s Sustainability
Strategy.
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 Code andits principles; an Ethics Committee receives, processes
and assesses on a case-by-case basis any alert received
through the whistleblowing channels.
The formalization 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
the adherence to the same principles among its
suppliers or business partners. Respect for andprotection of human rights, for all Group employees
and employees in the supply chains of its brands, iscentral to the Group’s ethical commitments andstrategic choices. The Policy includes the principles set
out in the Universal Declaration of Human Rights, thefundamental conventions of the International LabourOrganization, the United Nations Guiding Principles
on Business and Human Rights and the United Nations
Global Compact, which the Group joined in December
2023.
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.

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— 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 210 million since 2019, the Prada Group's
industrial strategy has been focused on strong vertical
integration of the supply chain, the progressive
insourcing of sensitive phases of the production
process and the acquisition of key capabilities,
including technical skills. 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 competitiveness isincreasingly based on such factors.
The Prada Group relies on a greater degree ofmanufacturing autonomy thanks to these investmentsin the expansion of its facilities and an important hiring
plan; the Group, in fact, has realized all its prototypes
internally for many years and in the past few years
it has gradually insourced its leather cutting phases
for handbags and footwear followed by the assemblyprocesses. Quality control of all raw materials andfinished products is now managed in-house, as well as
the worldwide logistics of finished products.
Vertical integration, internalization and innovation
effectively ensure more control over value creation, anextremely important aspect even from a sustainability
standpoint, not just for the processes but especially interms of responsible supply chain management.

MODERN SLAVERY STATEMENT FOR THE FINANCIAL PERIOD 2023

— Building responsible
supply chains
For the Prada Group, the selection of its suppliers
is fundamental not only for reaching the highest
standards of product excellence, but also for creating
long-term value. In fact, through a collaborative andtransparent approach, the Group has always prompted
its suppliers to implement work, health, safety andenvironmental standards in the workplace and totransmit its high ethical standards.
This collaboration builds and favors long-term
relationships and is based on regular dealings, to sharemutual growth and a common strategic objective,
and to reduce the risk of non-compliance with theGroup's Code of Ethics and applicable regulations. In
addition, the proximity of the supply chain facilitates
relationships and the monitoring of key suppliers tosupport risk control and management.
In 2023, the Group worked with over 900 industrial
suppliers, among raw material producers andmanufacturers. Approximately 86% of them are locatedin Italy and about 52% have been working with thePrada Group for more than 10 years.
83% of the Group's raw material suppliers are locatedin Italy, 5% in other European Union countries and theremaining 12% in other non-EU countries. In manycases they are long-established partners: about 65% ofthem have been working with the Group for more than
10 years, and around 23% for a period of time between
5 to 10 years.
With reference to manufacturing suppliers, 90% arelocated in Italy, 6% in the rest of the European Unionand the remaining 4% in non-EU countries. Around
40% of them have been working with the Group for
more than 10 years and around 31% for a period oftime between 5 to 10 years.

4Localization of raw material suppliers 1

Localization of manufacturing suppliers  25%EU

4%

Extra EU

12%

6%
EU

Extra EU

83%

90%

The location of the supply chain in Italy is also
important for the working conditions of the employees,
as they are governed by Italian laws and the collective
bargaining agreements currently in force. The ItalianCollective Bargaining Agreement (CCNL) supplements
the law and is stipulated at a national level between
trade unions and associations representing companies.

use of subcontractors by first-tier suppliers brings
additional reputational and legal risks, including interms of human rights infringement and child labour.

The CCNL regulates the rights, guarantees andobligations of all workers in terms of pay and regulatory
provisions, such as 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 and the disciplinary code. The CCNL
is negotiated and renewed every three years, thus
allowing for wage and regulatory adjustments in linewith economic and legislative changes in Italy.
Although the Prada Group considers the risk of noncompliance in its direct supply chain to be lower, the12

In the past few years, Prada has directed efforts towardraising awareness in the purchasing structures for a
responsible management of the industrial supply chain.
To this end, in 2017 the Group adopted a Qualified
Vendor List procedure to define the responsibilities
and operational criteria required to evaluate the ethical,
technical and economical reliability of its suppliers.
With respect to ethical issues, the accreditationand maintenance of a supplier's qualification are
firstly confirmed through the request of documents,attestations and self-certifications that ensurecompliance with the laws on remuneration, socialsecurity, taxes, occupational health and safety, theenvironment, privacy and the governance model.
Finally, the Code of Ethics must be signed in order towork with Prada.

For the purposes of this analysis, only raw material suppliers with a purchase of more than Euro 30 thousand in 2023 have been considered.
For the purposes of this analysis, only manufacturing suppliers with a purchase of more than Euro 30 thousand in 2023 have been considered.

MODERN SLAVERY STATEMENT FOR THE FINANCIAL PERIOD 2023

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The Code of Ethics - updated 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 Suppliers
Code of Conduct - both formalized in 2022 - thatfurther reinforce respect for human rights, for all
Group employees and for suppliers. Through theimplementation of the Code, the Group requires itssuppliers 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 wastewatertreatment) and raw material sourcing (e.g., biodiversity,animal welfare, traceability).

of the supply relationship, other control activities areenvisaged, such as on-site or remote audits, dependingon the assessment associated with the type of supplierand the geography in which they operate.
With the aim of covering suppliers representing 80%of the Group's turnover, in the period 2019-2023, thecontrol activity covered approximately 480 first andsecond-tier suppliers.
For the first time, in 2023 the Prada Group publishedon its corporate website www.pradagroup.com
a list, regularly updated, of its raw material andmanufacturing suppliers which, together with its own
industrial facilities, account for almost 40% of its total
production value.

Information provided by suppliers is subject to firstand second level controls, including interim ones, toensure that the information is updated, accurate andconsistent. These controls are performed by theprocurement structures or business areas specialized
in the various topics, are also conducted upon
notification of potential breaches or anomalies; inthese circumstances, the procedure involves additionalanalysis, targeted controls or immediate action with theparties involved.
In addition to the controls described above, since2019, the Group has engaged its suppliers with regularinspections. When needed, a corrective action plan
(Remediation Plan) is shared with the supplier. In theevent of serious non-compliance or the inability of thesupplier to ensure a positive response within a certain
timeframe, relationships can also be terminated.
During 2023, the procedure has been updated tointroduce a more structured and comprehensive
governance, which will be implemented from 2024 andwill also improve the coverage of supply chain controls.
Also in 2023, as part of its digital and processtransformation programs, the Group invested instrengthening its supplier management and monitoring
system - the Vendor Management Portal - which will
become operational in the first half of 2024. The
selection of all the Group's suppliers will be managed
through the new system and suppliers will be regularly
monitored through a vendor rating system to ensuretransparency in purchasing practices, compliance withthe Group's policies and alignment with sustainability
objectives. In order to manage risk from the outset

MODERN SLAVERY STATEMENT FOR THE FINANCIAL PERIOD 2023

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— Training activities— Outlook

In 2023, 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 programis to create a corporate culture on sustainability ingeneral and the Group's long-term commitment tothese issues.

The Prada Group is committed to identifying
opportunities for continuous improvement and tostrengthening systems and controls for the respect ofhuman rights throughout the supply chain, regularlyassessing the adequacy of the procedural framework.
In addition, the Group is constantly reviewing andrationalizing its industrial suppliers to increasinglyminimize its risk profile.

Dedicated courses have been organized to involve thevarious corporate functions on the main issues andto train the industrial area on the ethical issues mostrelevant to the responsible management of supply
chains, in particular the risks associated with humanrights abuses and modern slavery, thereby acquiring
new knowledge and skills, but also the necessary
sensitivity to manage relations with industrial suppliersin an increasingly responsible manner.
In addition, during 2023, specific groups of employees
received an e-learning course, available in different
languages, on the general principles of human rights
and the Group’s commitments in this area.

In 2024, the control activities on suppliers willcontinue to efficiently monitor and mitigate the risks
associated with supply chain management, as well as
the training activities deemed essential to create a
corporate culture on sustainability issues. Furthermore,already in 2023, the Group improved the system forselecting, managing and monitoring its suppliers; thismeasure will allow the supply chain to be more closely
monitored in 2024, in order to promote transparency
in purchasing practices, compliance with the Group's
policies and alignment with sustainability objectives.
The Group will work proactively to continuously
improve responsible business practices by seeking newways to promote respect for human rights, a common
and collaborative approach with suppliers and business
partners.

Approved by the Board of Directorsof Prada S.p.A.
Milan (Italy), April 24, 2024

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