Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited takeno responsibility for the contents of this announcement, make no representation as to its
accuracy or completeness and expressly disclaim any liability whatsoever for any loss
howsoever arising from or in reliance upon the whole or any part of the contents of thisannouncement.

PRADA S.p.A.
(Stock Code: 1913)

ANNOUNCEMENT
OF THE CONSOLIDATED RESULTS
FOR THE SIX-MONTH PERIODENDED JUNE 30, 2023-

The Prada Group reported net revenues of Euro 2,232.4 million, up by 20.5% atconstant exchange rates compared to the first six months of 2022;-

Retail sales up 21.1% compared to the first half of 2022, at constant exchange rates;-

All regions except the Americas showed double-digit growth over the first half of 2023
(at constant exchange rates: Japan +49.2%, Asia Pacific +25.3%, Europe +24.2%,
Middle East +13.5%, Americas -1%);-

Gross margin climbed to 80.3% of net revenues from the 77.7% of the first half of
2022;

-

EBIT: Euro 491.4 million, corresponding to 22.0% of net revenues, up by 61.2% fromthe first six months of 2022 (Euro 304.8 million, 16.0% of net revenues);-

Net financial position positive for Euro 282.9 million at June 30, 2023, after paymentof 2022 dividends

1

Presentation of the Prada Group
Prada S.p.A. (“Prada” or the “Company”), together with its subsidiaries(collectively the “Group” or the “Prada Group”), is listed on the Hong Kong Stock
Exchange (HKSE code: 1913). The Group is a leading business in the luxury
goods industry, where it operates with the Prada, Miu Miu, Church’s and Car
Shoe brands producing and distributing leather goods, footwear and apparel. It
also operates in the food sector with the Marchesi 1824 brand, in the mostprestigious sailing races with Luna Rossa and in the eyewear and fragrance
industries under licensing agreements.
The Group owns 25 production facilities (22 in Italy, 1 in the United Kingdom, 1
in France and 1 in Romania) and its products are sold in 70 countries worldwide
primarily through 603 directly operated stores (“DOS”) at June 30, 2023. The
Group’s products are also sold directly through the brands’ e-commerce activity
and indirectly in selected high-end department stores, independent retailers invery exclusive locations, and important e-tailers.
The Company is a joint-stock company (with limited liability), registered anddomiciled in Italy. Its registered ofﬁce is at via Fogazzaro 28, Milan. At June 30,
2023, 79.98% of the share capital was owned by Prada Holding S.p.A., a
company domiciled in Italy, and the remainder consisted of floating shares listedon the Main Board of the Hong Kong Stock Exchange.

Basis of presentation
The financial information presented herein refers to the group of companies
controlled by the Company, the operating parent company of the Prada Group,
and is based on the unaudited consolidated results for the six-month period
ended June 30, 2023.
This announcement has been prepared consistently with the accounting
standards and policies used to prepare the 2022 Annual Report, since none of
the new standards and amendments to existing standards that became effective
during the period had a material impact on the figures and disclosures provided.
At the date of presentation of this document, there were no differences between
the International Financial Reporting Standards (“IFRS”) approved by theEuropean Union (“EU”) and applicable to the Prada Group, and those issued by
the International Accounting Standard Board (“IASB”), except for the following
amendments to existing standards that have not been endorsed yet.

2New standards and amendments to existing standards issued by the IASB,
endorsed by the European Union and applicable to the Prada Group fromJanuary 1, 2023.
New standards and amendments to existing standards
IFRS 17 Insurance contracts
Amendments to IAS 1 Presentation of Financial Statements and IFRS
Practice Statement 2: Disclosure of Accounting policies
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimatesand Errors: Definition of Accounting Estimates
Amendments to IAS 12 Income taxes: deferred tax related to assets andliabilities arising from a single transaction
Amendments to IFRS 17 Insurance contracts: Initial application of IFRS 17
and IFRS 9 – Comparative information (issued on 9 December 2021)

Effective date forPrada GroupEU endorsement date

January 1, 2023

Endorsed in November 2021

January 1, 2023

Endorsed in March 2022

January 1, 2023

Endorsed in March 2022

January 1, 2023

Endorsed in August 2022

January 1, 2023

Endorsed in September 2022

Amendments to existing standards issued by the IASB, but not yet endorsed by
the European Union as of June 30, 2023.
Amendments to existing standards
Amendments to IAS 12 Income taxes: International Tax Reform –Pillar Two Model Rules
Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback(issued on 22 September 2022)
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial
Instruments: Disclosures: Supplier Finance Arrangements(Issued on 25 May 2023)
Amendments to IAS 1 Presentation of Financial Statements:
Classification of Liabilities as Current or Non-current –Deferral of Effective Date - Non-current Liabilities with Covenants

Date of possible
application

EU endorsement date

January 1, 2023

Not endorsed yet

January 1, 2024

Not endorsed yet

January 1, 2024

Not endorsed yet

January 1, 2024

Not endorsed yet

On 23 May 2023, the IASB issued the “Amendments to IAS 12 Income taxes:
International Tax Reform – Pillar Two Model Rules” with the objective to
introduce a mandatory temporary exception to the requirements in IAS 12
Income Taxes (“IAS 12”) to recognise and disclose information about deferred
tax assets and liabilities arising from the OECD’s Pillar Two Model Rules. The
temporary exception will be applicable immediately upon the issue of theAmendments and retrospectively in accordance with IAS 8 from January 1,
2023. EFRAG assessed that the Amendments meet the technical endorsement
criteria of the IAS Regulation and recommended its endorsement but theendorsement process by the European Union is not formally complete.
Since it is unclear whether the application of the current requirement of IAS 12
to Pillar Two income taxes create additional temporary differences, whether toremeasure deferred taxes and which tax rate to use to measure deferred taxes,
the Group applied judgment and concluded, in accordance with IAS 8, that notaccounting for deferred taxes related to Pillar Two income taxes represents themost relevant and reliable accounting policy. This policy results in accountingthat is consistent with the above Amendments whose endorsement process isstill on going.

3Key financial information
six months
ended
June 30
2023

Key economic figures(amounts in thousands of Euro)Net revenues
EBIT Adjusted (*)% incidence on net revenues
EBIT (**)% incidence on net revenues
Net income / (loss) of the Group
Earnings / (losses) per share (Euro)Net operating cash flow (***)

six months
ended
June 30
2022(unaudited)(unaudited)

2,232,379
491,41922.0%
491,41922.0%
305,168
0.119
181,753

1,900,942
330,80217.4%
304,802
16.0%
188,2640.074
158,202(*) Non-IFRS measure equal to EBIT less other non-recurring income / (expenses)(**) Non-IFRS measure equal to earnings before interest and taxation(***) Non-IFRS measure equal to net cash flow from operating activities less repayment of lease liability

Key indicators(amounts in thousands of Euro)

June 30
2023

December 31
2022

723,262
5,427,546
282,887
3,501,416

690,573
5,073,699
534,900
3,482,217(unaudited)

Net operating working capital
Net invested capital (right of use assets included)
Net financial surplus / (deficit) (*)
Group shareholders’ equity(audited)(*) Non-IFRS measure equal to short-term and long-term financial payables due to third parties and related parties, net of cash and cash
equivalents and short-term and long-term financial receivables due from third parties and related parties

Highlights of the first six months of 2023
In the first half of 2023 Prada Group achieved solid performance driven bystrong brand identity, creativity and disciplined execution amidst an everchanging global macroeconomic scenario.
Group’s net revenues grew by 20.5% at constant exchange rates compared to
first half of 2022, with retail sales marking double-digit growth across all
product categories.
At brand level, Prada retail net sales increased by 17.7% in the first six monthsof 2023, reporting a growth of +14.7% in the second quarter, a more moderate
but solid pace compared to the +21.1% of the first quarter, on a high basis ofcomparison with the exception of China. Miu Miu retail net sales grew at 50.1%
in the semester, with the second quarter in further acceleration at +57.3% versus
the +41.9% of the first quarter, an excellent performance supported by thehigher exposure to China and Asia.
Both gross margin (80.3%) and EBIT margin (22.0%) showed further expansion,
notwithstanding higher investments behind the brands. The net financial
position remained robust, providing comfortable headroom to fund future
strategic initiatives.
With respect to Prada, over the period the focus has been on nurturing thedesirability of the brand, whose Menswear FW23 / SS24 and Womenswear
4

FW23 shows confirmed excellent reception across all audiences. Through thehighly successful “The Glass Age” campaign, the iconic Galleria bag has been
reinterpreted and celebrated; at the same time, the introduction of novelties
continued across all categories with the ongoing and broad-based success of thebrand’s collections. Contributing to the dialogue with growing audiences, in thesecond quarter, Prada and Adidas unveiled the "adidas Football for Prada"collection. Throughout the semester, the brand also realised a number ofsuccessful activations, including dedicated events for the Eternal Gold finejewellery collection, Prada Extends in Bangkok, Prada Mode in Tokyo, and theopening of the very impactful Prada Caffè at Harrods.
As for Miu Miu, the standout performance was supported by the highly
successful FW23 fashion show, the launch of the SS23 campaign withexceptional personalities, and continued investment to amplify the brandawareness to a growing client base. The “matelassé” leather and its dedicatedcampaigns resonated strongly, as demonstrated by the success of Wander andrecently launched Arcadie bags; likewise, the second drop of the New Balancex Miu Miu sneakers created strong commercial response, increasing the brandvisibility. Miu Miu consolidated formats, like the Miu Miu Women’s Tales as wellas Miu Miu Select, also contributed to foster the relationship with the community
on a global scale. The brand strategy remains focused on reinforcing brandcodes, with a constant flow of contemporary collections that fuel desirability
across all product categories.
Adding to the client engagement initiatives of the brands, the Group continued
to invest in the retail network upgrade at pace, with c.70 renovation projects
completed in the semester, instrumental to elevate the client experience in store
and to increase productivity.
On the industrial front, the focus has been on expanding capacity and reinforcing
the strategic control of the know-how. In this context, the Group also announced
the acquisition of a minority stake in Luigi Fedeli e Figlio S.r.l., an Italian familybusiness globally recognised for the excellence of its knitwear and fine yarns.
Additionally, in March the Group unveiled an ambitious hiring plan concentrated
on the regions of Tuscany, Umbria and Marche, which will add 400 resources by
the end of the year. More than half of the professionals will be trained internallyby the Prada Group Academy, as part of the Group’s mission to preservecraftmanship know-how.
Prada Group’s focus on vertical integration was also reflected in the progress
made with building an increasingly responsible business model, throughout the
key areas of supply chain transparency, raw materials traceability, Scope 3 CO2emissions reduction, chemicals management in industrial processes and a wider
Water Conservation programme.
Moreover, the Group’s ongoing commitment to the ocean through the SEA
BEYOND project continues, with the announcement on June 27 of a newenhanced partnership with IOC-UNESCO. Specifically, Prada Group will donate
1% of the proceeds of the Prada Re-Nylon collection to enrich educational5

programme and extend the scope of SEA BEYOND towards two new areas offocus: support for ocean-related scientific research and humanitarian projects.
Finally, with the onboarding of Andrea Guerra as Prada Group CEO in January,
the Group further strengthened its governance, thus enhancing its ability to
execute the strategy while also easing the generational transition.

6

Consolidated statement of profit or loss for the six months
ended June 30, 2023 (includes Non-IFRS Measures)(amounts in thousands ofEuro)

six months
ended % on
June 30
net
2023 revenues(unaudited)

six months
ended % on
June 30
net
2022 revenues(unaudited)changeNet sales (Note 1)
Royalties
Net revenues

2,184,896
47,4832,232,379

97.9%
2.1%
100%

1,872,418
28,524
1,900,942

98.5%
1.5%
100%

312,478
18,959331,437

16.7%
66.5%
17.4%

Cost of goods sold(438,984)-19.7%(423,451)-22.3%(15,533)

3.7%

Gross margin

1,793,395

80.3%

1,477,491

77.7%

315,904

21.4%(72,489)-3.2%(68,581)-3.6%(3,908)

5.7%(187,274)-8.4%(155,168)-8.2%(32,106)

20.7%(894,587)-40.1%(795,510)-41.8%(99,077)

12.5%(147,626)-6.6%(127,430)-6.7%(20,196)15.8%(1,301,976)-58.3%(1,146,689)-60.3%(155,287)

13.5%

Recurring operating income /(loss) – EBIT Adjusted

491,41922.0%

330,80217.4%

160,617

48.6%

Other non-recurring income/ (expenses)--(26,000)-1.4%

26,000-100%

Operating income / (loss) –EBIT

491,41922.0%

304,802

16.0%

186,61761.2%(19,292)-0.9%(8,584)-0.5%(10,708)

124.7%(27,342)-1.2%(18,887)-1.0%(8,455)

44.8%

226

0.0%

119

0.0%

107

89.9%

(46,408)-2.1%(27,352)-1.4%(19,056)

69.7%

Income / (loss) before
taxation

445,01119.9%

277,450

14.6%

167,561

60.4%

Taxation(138,381)-6.2%(88,033)-4.6%(50,348)

57.2%

Net income / (loss) for theperiod306,630

13.7%

189,41710.0%

117,213

61.9%

Net income / (loss) - Noncontrolling interests

1,462

0.1%

1,153

0.1%

309

26.8%

Net income / (loss) – Group305,168

13.7%

188,2649.9%

116,904

62.1%

Product design anddevelopment costs
Advertising andcommunications costs
Selling costs
General andadministrative costs
Total operating expenses

Interest and other financial
income / (expenses), net
Interest expenses onlease liability
Dividends from investments
Total financial income /(expenses)

7%changeConsolidated statement of financial position
June 30
2023

December 31
2022

4
5

766,271
325,296784,525
34,2681,091,622
331,915
760,457
22,483

6

2,358

2,373

7

254,573
2,167,291

215,9172,424,767

88
9

1,590,172
827,069
2,082,146
32,782379,917
136,981
5,585

1,577,125
817,8092,011,474
26,974
373,090
139,402
5,812

1,125

1,125

5,055,777
7,223,068

4,952,811
7,377,578

420,389
131,991
5,045
386,559
133,0025,946
244,428
1,327,360

392,126
160,847
3,568
401,799
277,656
11,565242,306
1,489,867

1,768,803
349,71456,32347,024
43,168109,435
2,374,467
3,701,827

1,715,451
395,656
67,571
51,48640,855
115,670
2,386,689
3,876,556

Share capital
Total other reserves
Translation reserve
Net income / (loss) for the period
Net equity attributable to owners of the GroupNet equity attributable to Non-controlling interests
Total net equity

255,882
2,843,377
96,989305,168
3,501,416
19,825
3,521,241

255,8822,648,496
112,646465,1933,482,217
18,8053,501,022

Total liabilities and total net equity

7,223,068

7,377,578

Net current assets
Total assets less current liabilities

839,931
5,895,708

934,900
5,887,711(amounts in thousands of Euro)

Note

AssetsCurrent assets
Cash and cash equivalents
Trade receivables, net
Inventories, net
Derivative financial instruments – current
Receivables due from, and advance payments to,related parties - current
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Right of use assets
Investments in equity instruments
Deferred tax assets
Other non-current assets
Derivative financial instruments – non-current
Receivables due from, and advance payments to,related parties – non-current
Total non-current assets
Total assets

10

Liabilities and shareholders’ equity
Current liabilities
Short-term lease liability
Short-term financial payables and bank overdrafts
Payables due to related parties - current
Trade payables
Tax payables
Derivative financial instruments - current
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term lease liability
Long-term financial payables
Long-term employee benefits
Provision for risks and charges
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities

11
12
13

14

8

(unaudited)(audited)

Consolidated statement of changes in equity(amounts in thousands of Euro, except number of shares)
EquityTranslation
reserve

Actuari Fair value
Share
Cash flow
investmentsalin equity
premium
hedge
reserv
instruments
reserve
reserveereserveNetequityNet equity attributa
attributable ble toto owners of
NonGroup
controllinginterests

Other
reserves

Total otherreserves

Net
incomefor theperiod(10,992) 2,118,855

2,496,324

294,254(amounts inthousands of Euro)

Number ofsharesSharecapitalBalance at Dec. 31,
2021 (audited)

2,558,824,000

255,882

67,434410,047

-

-

-

-

-

-

-

294,254294,254 (294,254)

-

-

-

-

-

-

-

-

-

-

(179,118)(179,118)-(179,118)-(179,118)

-

-

-

-

-

-

-

9,044

9,044

-

9,044

-

9,044

-

-

91,059

-

3,668

-

-

-

3,668

188,264

282,991

1,993

284,984

-

-

-

-

-

-

(273)

-

(273)

-

(273)

-

(273)

2,558,824,000

255,882

158,493410,047(11,265) 2,243,035

2,623,899

188,264

3,226,538

-

-

-

-

-

-

-

-

-

-

-

(599)

(599)

-

-

-

-

-

-

-

2,866

2,866

-

2,866

-

2,866

-

-

(45,847)-

22,270---22,270276,929

253,352

2,633

255,985

-

-

-

-

- (1,399)

860

-

(539)

-

(539)

29

(510)

2,558,824,000

255,882

112,646

410,047

10,060 (7,107)(10,405) 2,245,901

2,648,496

465,1933,482,217

-

-

-

-

-

-

-

465,193

465,193 (465,193)

-

-

-

-

-

-

-

-

-

-

(281,471)(281,471)-(281,471)(250)(281,721)

-

-

-

-

-

-

-

2,409

2,409

-

2,409

-

2,409

-

-

(15,657)

-

7,451

-

-

-

7,451

305,168

296,962

1,270

298,232

-

-

-

-

-

-

1,299

-

1,299

-

1,299

-

1,299

2,558,824,000

255,882

96,989410,047(9,106) 2,432,032

2,843,377

305,168

3,501,416

Allocation of 2021
net loss
Dividends
Monetary revaluation
IAS 29Comprehensive
income/(loss) for theperiod (recyclable to
P&L)
Comprehensive
income/(loss) for theperiod (notrecyclable to P&L)
Balance at June 30,
2022 (unaudited)
Dividends
Monetary revaluation
IAS 29Comprehensive
income/(loss) for theperiod (recyclable to
P&L)
Comprehensive
income/(loss) for theperiod (notrecyclable to P&L)
Balance at Dec. 31,
2022 (audited)
Allocation of 2022
net loss
Dividends
Monetary revaluation
IAS 29Comprehensive
income/(loss) for theperiod (recyclable to
P&L)
Comprehensive
income/(loss) for theperiod (notrecyclable to P&L)
Balance at June 30,2023 (unaudited)(15,878) (5,708)(12,210) (5,708)

17,511 (7,107)

93,113,894

Total netequity14,749 3,128,643

16,742 3,243,280

18,805 3,501,022

19,825 3,521,241

Consolidated statement of cash flows for the six months
ended June 30, 2023
(amounts in thousands of Euro)six months
ended
June 30
2023(unaudited)

six months
ended
June 30
2022(unaudited)

445,011

277,450

221,203

221,466

108,869

102,981

Income / (loss) before taxation
Profit or loss adjustments
Depreciation of the right of use assets
Depreciation and amortisation of property, plant and equipment
and intangible assets
Impairment of the right of use assets
Impairment of property, plant and equipment and intangible assets
Non-monetary financial (income) / expenses
Interest expenses on lease liability
Other non-monetary (income) / expenses
Balance sheet changes
Other non-current assets and liabilities
Trade receivables, net
Inventories, net
Trade payables
Other current assets and liabilities
Cash flows from operating activities
Interest paid (net), including interest paid on lease liability – third parties
Taxes paid
Net cash flows from operating activities

3,917
2,510
35,662
27,342
17,2988,000
19,844(13,699)
18,88718,017(26,038)(2,179)(56,615)(7,591)(49,045)
720,344(21,918)(304,922)
393,504(8,595)16,092(62,917)(24,291)(35,493)537,742(23,572)(139,495)
374,675

Purchases of property, plant and equipment and intangible assets
Disposals of property, plant and equipment and intangible assets
Earn-out paid to a related party
Dividends from investments
Net cash flow utilised by investing activities(149,204)229(148,975)(88,597)411(5,000)119(93,067)

Dividends paid to shareholders of Prada S.p.A.
Dividends paid to Non-controlling shareholders
Repayment of lease liability
Loans to related parties
Loans from related parties
Repayment of short-term portion of long-term borrowings – third parties
Change in short-term borrowings – third parties
Capital injection to associates
Net cash flows utilised by financing activities(266,818)(250)(211,751)
1,500(47,335)(24,032)(4,509)(553,195)(169,793)(216,473)(2,200)(136,519)
4,383(520,602)

Change in cash and cash equivalents, net of bank overdrafts
Foreign exchange differences
Opening cash and cash equivalents, net of bank overdraft
Closing cash and cash equivalents, net of bank overdraft(308,666)(16,620)
1,091,557
766,271(238,994)
40,878
981,786
783,67010

Consolidated statement of comprehensive income for thesix months ended June 30, 2023
(amounts in thousands of Euro)six months
ended
June 30
2023(unaudited)

six months
ended
June 30
2022(unaudited)

Net income / (loss) for the period

306,630

189,417

Change in translation reserve
Tax impact
Change in translation reserve less tax impact(15,849)(15,849)

91,89991,899Change in cash flow hedge reserve
Tax impact
Change in cash flow hedge reserve less tax impact

9,820(2,369)
7,451

4,756
(1,088)
3,668

1,299
1,299

(273)
(273)

-

-

299,531284,711

1,270

1,993

298,261

282,718

A)

B)

Items recyclable to P&L:

Item not recyclable to P&L:

Change in fair value in equity instruments reserve
Tax impact
Change in fair value in equity instruments reserve less tax impact
Change in actuarial reserve
Tax impact
Change in actuarial reserve less tax impact
Comprehensive income / (loss) for the period - Consolidated
Comprehensive income / (loss) for the period – Non-controlling interests
Comprehensive income / (loss) for the period – Group11

Notes to the Interim Consolidated Financial Statements forthe six months ended June 30, 2023
1. Analysis of net revenues(amounts in thousands of Euro)Net revenues
Retail net sales (Directly Operated Storesand e-commerce)
Wholesale net sales (independent
customers and franchisees)
Royalties
Total net revenues

six months
ended
June 30
2023(unaudited)

six months
ended
June 30
2022(unaudited)%%changechangecurrent constant
exc.rates exc.rates

1,974,710 88.5%

1,677,950 88.3%

17.7%

21.1%

210,186 9.4%

194,468 10.2%

8.1%

8.5%

47,483 2.1%
2,232,379 100%

28,524 1.5%
1,900,942 100%

66.5%
17.4%

66.5%
20.5%

Retail net sales by brand
Prada
Miu Miu
Church's
Other
Total retail net sales

1,667,909 84.5%
285,160 14.4%
12,665 0.6%
8,976 0.5%
1,974,710 100%

1,457,314 86.9%
196,483 11.7%
16,223 1.0%
7,930 0.5%
1,677,950 100%

14.5%
45.1%
-21.9%
13.2%
17.7%

17.7%
50.1%
-20.6%
13.6%
21.1%

Retail net sales by geographical area
Asia Pacific
EuropeAmericasJapan
Middle East
Total retail net sales

715,724 36.2%
582,112 29.5%
361,073 18.3%
223,587 11.3%
92,214 4.7%
1,974,710 100%

590,478 35.2%
486,001 29.0%
359,791 21.4%
161,470 9.6%
80,210 4.8%
1,677,950 100%

21.2%
19.8%
0.4%
38.5%
15.0%
17.7%

25.3%
24.2%
-1.0%
49.2%
13.5%
21.1%

Retail net sales by product category
Leather goods
Ready to wear
Footwear
Other
Total retail net sales

924,814 46.8%
609,495 30.9%
373,920 18.9%
66,481 3.4%
1,974,710 100%

851,182 50.7%
461,395 27.5%
320,160 19.1%
45,213 2.7%
1,677,950 100%

8.7%
32.1%
16.8%
47.0%
17.7%

11.7%
36.1%
20.3%
49.8%
21.1%

12

2. Number of stores
June 30, 2023

December 31, 2022

June 30, 2022

Owned

Franchises

Owned

Franchises

Owned

Franchises

Prada
Miu Miu
Church’s
Car Shoe
Marchesi 1824

426
141
28
2
6

22
6
-

422
145
37
2
6

21
5
-

421
146
52
2
6

22
5
-

Total

603

28

612

26

627

27

June 30, 2023

December 31, 2022

June 30, 2022

Owned

Franchises

Owned

Franchises

Owned

Franchises

EuropeAsia Pacific
AmericasJapan
Middle East

200
192
102
86
23

25
3

209
190
104
86
23

21
5

219
195
105
86
22

22
5

Total

603

28

612

26

627

27

3. Earnings and dividends per share
Earnings per share basic and diluted
Earnings (losses) per share are calculated by dividing the net profit (or net loss)
attributable to the Group’s shareholders by the weighted average number ofordinary shares outstanding.
six months
ended
June 30
2023(unaudited)

six months
ended
June 30
2022(unaudited)Group net income / (loss) in Euro
Weighted average number of ordinary shares in issue

305,167,809
2,558,824,000

188,264,166
2,558,824,000

Basic and diluted earnings / (losses) per share in Euro,
calculated on weighted average number of shares

0.119

0.074

Dividends paid
During the six-month period ended June 30, 2023, the Company distributed
dividends of Euro 281,470,640, as approved at the General Meeting held on
April 27, 2023 for the approval of the financial statements for the year ended
December 31, 2022.
The dividends net of withholding taxes (Euro 266.8 million) were paid during theperiod under review, whereas the withholding tax (Euro 14.7 million), calculated
by applying the ordinary Italian tax rate to the entire amount of the dividends
13distributed to the beneficial owners of the Company’s shares held through theHong Kong Central Clearing and Settlement System, was paid in July 2023.

4. Trade receivables, net
June 30
2023

December 31
2022

Trade receivables – third parties
Allowance for bad and doubtful debts
Trade receivables – related parties

332,964(9,197)
1,529

342,110(11,595)
1,400

Total

325,296

331,915(amounts in thousands of Euro)(unaudited)(audited)

The change in the allowance for bad and doubtful debts is detailed below:
June 30
2023

December 31
2022

Opening balance

11,595

10,990Exchange differences
Increases
Reversals
Utilisation

(242)
767
(339)
(2,584)

90
741
(136)
(90)

Closing balance

9,197

11,595(amounts in thousands of Euro)(unaudited)(audited)

An aging analysis of the trade receivables, before the allowance for bad anddoubtful debts, is shown below:(amounts inthousands of Euro)

June 30
2023(unaudited)

Overdue (days)

Not
overdue1 ≤ 3031 ≤ 60

61 ≤ 9091 ≤ 120> 120

Trade receivables

334,493274,671

29,578

5,896

3,584

3,156

17,608Total
June 30, 2023

334,493274,671

29,578

5,896

3,584

3,156

17,608(amounts inthousands of Euro)

December 31
2022(audited)

Overdue (days)

Not
overdue1 ≤ 3031 ≤ 60

61 ≤ 9091 ≤ 120> 120

Trade receivables

343,510272,142

39,132

6,297

4,459

1,211

20,269

Total
December 31, 2022

343,510272,142

39,132

6,297

4,459

1,211

20,26914

An aging analysis of the trade receivables net of the allowance for bad anddoubtful debts is shown below:(amounts inthousands of Euro)

June 30
2023(unaudited)

Overdue (days)

Not
overdue1 ≤ 3031 ≤ 60 61 ≤ 90

91 ≤ 120> 120

Trade receivables
less allowance forbad and doubtful
accounts

325,296

273,342

29,488

5,871

3,551

3,102

9,942

Total
June 30, 2023

325,296

273,342

29,488

5,871

3,551

3,102

9,942

61 ≤ 90 91 ≤ 120> 120(amounts inthousands of Euro)

Dec. 312022(audited)

Overdue (days)

Not
overdue1 ≤ 3031 ≤ 60

Trade receivables lessallowance for bad anddoubtful accounts

331,915

270,542

39,060

5,833

4,453

1,209

10,818

Total
December 31, 2022

331,915

270,542

39,060

5,833

4,453

1,209

10,818

5. Inventories, net
June 30
2023

December 31
2022

Raw materials
Work in progress
Finished products
Return assets
Allowance for obsolete and slow-moving inventories

111,551
38,872
724,365
10,959(101,222)

108,450
30,109699,849
10,493(88,444)

Total

784,525

760,457(amounts in thousands of Euro)(unaudited)(audited)

The changes in the allowance for obsolete and slow-moving inventories are as
follows:
Rawmaterials

Finishedproducts

Total
allowance forobsolete andslow-moving
inventories

Opening balance (audited)

32,22256,22288,444

Exchange differences
Increases
Utilisation

1
6,000
-

(63)
7,167
(327)

(62)
13,167(327)

Closing balance (unaudited)

38,22362,999101,222(amounts in thousands of Euro)15

6. Receivables due from, and advance payments to, related parties current
June 30
2023

December 31
2022

Financial receivables
Other receivables and advances

2,200
158

2,200
173

Total

2,358

2,373

June 30
2023

December 31
2022

VAT
Taxation and other tax receivables
Other assets
Prepayments
Guarantee deposits

43,62061,06816,085
128,677
5,123

39,627
70,7759,230
86,617
9,668

Total

254,573

215,917(amounts in thousands of Euro)(unaudited)(audited)

7. Other current assets(amounts in thousands of Euro)(unaudited)(audited)

8. Capital expenditure
The changes in the net carrying amount of property, plant and equipment forthe six months ended June 30, 2023 are shown below:(amounts inthousands of Euro)

Opening balance(audited)

Additions
Depreciation
Disposals
Exchange differences
Other movements
Impairment
Revaluation IAS 29
Closing balance(unaudited)

AssetsLeasehold
Furniture
Other
under
improve& fittings tangibles construct
ments
ion

Land andbuildings

Production
plant andmachinery

811,599

60,478292,979

288,698

61,39061,981 1,577,125

946(9,677)(1,228)
(310)
3,161
(167)
-

5,681
(6,147)
(52)
43
5,098
(3)
-

47,173(46,974)(949)(10,037)
11,939(956)
557

18,750(20,509)(94)(2,340)
6,441
(221)
(5)

4,326
(5,121)
(181)
(239)
36
(3)
43

44,710(1,326)(1,753)(26,538)(1,029)2

804,324

65,098

293,732

290,720

60,251

76,047 1,590,172

16

Total net
carrying
amount121,586(88,428)(3,830)(14,636)
137(2,379)597

The changes in the net carrying amount of intangible assets for the six months
ended June 30, 2023 are shown below:(amounts inthousands of Euro)

Opening balance(audited)

Additions
Amortisation
Disposals
Exchange differences
Other movements
Impairment
Closing balance(unaudited)

Trademarks
and otherintellectual
propertyrightsGoodwill

185,743

513,681135

85,803

1,648

30,799817,809398(5,225)
1,072
-

-

122
(173)
3
(1)
-

1,750
(13,842)(92)(25)
11,172(131)(1,201)-

26,650(20)(7)(11,190)-

28,920(20,441)
(112)
1,043
(19)
(131)

181,988513,68186

84,635447

46,232827,069

Store
lease
Softwareacquisitions

Other
Total net
Assetsintangicarrying
in progressbles
amountImpairment test

As required by IAS 36 "Impairment of Assets”, intangible assets with indefinite
useful lives are not amortised, but they are tested for impairment at least once
per year. The Group does not report intangible assets with indeﬁnite useful lives
apart from goodwill. At June 30, 2023, the goodwill recognised in the
consolidated financial statements is Euro 513.7 million, and it is allocated to thefollowing cash generating units (“CGUs”):
June 30
2023

December 31
2022

Italy Wholesale
Asia Pacific and Japan Retail
Italy Retail and Pasticceria Marchesi 1824
Germany and Austria Retail
United Kingdom Retail
Spain RetailFrance and Montecarlo RetailNorth America Retail and Wholesale
Production Division

78,355
311,936
33,825
5,064
9,300
1,400
11,70048,00014,101

78,355
311,936
33,825
5,064
9,300
1,400
11,70048,00014,101

Total Goodwill

513,681513,681(amounts in thousands of Euro)(unaudited)(audited)

No indications of impairment emerged during the reporting period. However,since values in use and fair values are measured on the basis of estimates andassumptions, management cannot guarantee that the value of goodwill or othertangible or intangible assets will not be subject to impairment in the future.
For the Church’s CGU, in 2022 the identification of a trigger event related to thebeginning of the reorganization process has led to the partial writedown of the17brand. As a result of this and in relation to the business performance in the firstpart of 2023, a monitoring activity was carried out in order to identify any further
potential impairment on the CGU. Based on the activities carried out, no further
impairment losses were identified.
For the Russia CGU, the review of the estimated recoverable amount of theproperties owned, which in substance represents the residual value of the noncurrent assets allocated to the CGU, was updated since the trigger events thatat December 31, 2022 had resulted in a Euro 43.5 million writedown of the
CGU's fixed assets are still ongoing. The assessment was updated by a leading
independent firm of the sector, which estimated the fair value of the twobuildings using the Comparative Method of valuation, based on a comparison of
the real estate being appraised to other comparable assets recently sold oroffered on the same market.
The carrying amount recognized at June 30, 2023 is consistent with the related
fair value. Translated at the June 30, 2023 exchange rate, the net invested
capital of the CGU is Euro 19.9 million, of which Euro 21.9 million refers to thetwo buildings owned and the remainder to items of net working capital. The
reduction in value of the net invested capital compared to the previous period(Euro 29.9 million, translated at the December 31, 2022 exchange rate) is
attributable to the depreciation for the period and, largely, to the impact of theexchange rate. With respect to the estimated recoverable amount of thebuildings, the current volatility in the Russian financial system has createdsignificant uncertainty in the real estate industry. The scarce liquidity in capital
markets means more difficulties than those present in normal market conditionsin the event of selling assets in the short term. This circumstance entailed using
a high level of judgment to estimate the recoverable amount of the assets tested.
Therefore, management cannot guarantee that the value of the buildings ownedin Russia will not be subject to additional fluctuations (impairment losses orwritedown reversals) in the future.

9. Right of use assets
The changes in the net carrying amount of the right of use assets for the six
months ended June 30, 2023 are shown below:(amounts in thousands of Euro)

Real Estate

Other

Total net
carrying amountOpening balance (audited)

2,007,660

3,814

2,011,474

New contracts, initial direct costs and remeasurements
Depreciation
Contracts termination
Exchange differences
Impairment
Revaluation IAS 29

347,482(220,129)23(55,818)(3,917)
2,309

1,875
(1,074)(74)(5)-

349,357(221,203)(51)(55,823)(3,917)
2,309

Closing balance (unaudited)

2,077,610

4,536

2,082,146

18

The increase in “new contracts, initial direct costs and remeasurements” isattributable to lease renewals (primarily in Asia and Europe) and theremeasurement of lease liabilities to adjust them to the indexes typically used in
the real estate industry (mainly the consumer price index).
The foreign exchange differences for the period affected the change in the rightof use assets considerably, as a result of the appreciation of the Euro against
the main currencies of the countries in which the Group operates.
The “other” right of use assets of Euro 4.5 million include plant, machinery,
vehicles and hardware.

10. Other non-current assets
June 30
2023

December 31
2022

Guarantee deposits
Prepayments for commercial agreements
Pension fund surplus
Deferred rental income
Other long-term assets

67,16647,993
6,640
111
15,07164,21650,0806,426
231
18,449Total

136,981

139,402(amounts in thousands of Euro)(unaudited)(audited)

The guarantee deposits refer primarily to security deposits paid under retailleases.

11. Payables due to related parties - current
June 30
2023

December 31
2022

Financial payables
Other payables

5,032
13

3,568
-

Total

5,045

3,568

June 30
2023

December 31
2022

Trade payables – third parties
Trade payables – related parties

383,187
3,372

396,159
5,640

Total

386,559

401,799(amounts in thousands of Euro)(unaudited)(audited)

12. Trade payables(amounts in thousands of Euro)(unaudited)19(audited)An aging analysis of the trade payables at the reporting date is shown below:(amounts inthousands of Euro)

June 30
2023(unaudited)

Overdue (days)

Not
overdue1 ≤ 3031 ≤ 60

61 ≤ 9091 ≤ 120> 120

Trade payables

386,559

343,499

16,092

4,000

5,874

1,564 15,530

Total
June 30, 2023

386,559

343,499

16,092

4,000

5,874

1,564 15,530(amounts inthousands of Euro)

December 31
2022(audited)

Overdue (days)

Not
overdue1 ≤ 3031 ≤ 60

61 ≤ 9091 ≤ 120> 120

Trade payables

401,799

330,287

47,5136,587

436

2,538 14,438

Total
December 31, 2022

401,799

330,287

47,5136,587

436

2,538 14,438

June 30
2023

December 31
2022

Payables for capital expenditure
Accrued expenses and deferred income
Other payables

70,766
21,946
151,716

73,24928,971140,086

Total

244,428

242,306

13. Other current liabilities(amounts in thousands of Euro)(unaudited)(audited)

14. Provision for risks and charges
The changes in the provisions for risks and charges are summarized below:
Provision
for litigation

Provision fortax disputes

Other
provisions

Total

Opening balance (audited)

884

4,601

46,001

51,486

Exchange differences
Reversals
Utilised
Increases

1
(45)
(70)
60

(96)
(337)
(400)
646

(2,158)(450)(2,323)710(2,253)(832)(2,793)
1,416

Closing balance (unaudited)

830

4,414

41,78047,024(amounts in thousands of Euro)

The provisions for risks and charges represent Directors’ best estimate of the
maximum outflow of resources needed to settle liabilities deemed probable. In
the Directors’ opinion, based on the information available to them, the total
20

amount accrued for risks and charges at the reporting date is adequate inrespect of the liabilities that could arise from them.
Since 2016, Prada Asia Pacific Ltd (a retail subsidiary wholly owned by Prada
S.p.A.) has been providing Prada S.p.A. with commercial services to support its
wholesale distribution business in Asia Pacific, for remuneration (in place until
2021) disclosed, as early as the 2016 tax year, to the Italian Tax Authority
through the submission of an advance pricing agreement application and various
explanatory documents.
The Italian Tax Authority started discussions on the topic on October 2022 and,in order not to have the 2016 fiscal year time barred, on April 28, 2023, it issued
two tax notices (IRES and IRAP) in which it challenged in full the deductibility of
the remuneration paid to Prada Asia Pacific Ltd in the 2016 fiscal year, setting
higher taxes amounting to c. Euro 10.8 million and interest amounting to c. Euro
2.3 million, while recognising (i) the possibility for Prada S.p.A. to deduct theamount that, in the opinion of the Italian Tax Authority, it should have recognised
to Prada Asia Pacific Ltd, without however quantifying it, and (ii) the nonapplication of penalties, by virtue of the correctness of the Transfer pricing
contemporaneous documentation prepared by Prada S.p.A..
Prada S.p.A. has filed an appeal against these tax notices within the legal
deadlines and discussions with the Italian Tax Authority are still ongoing. The
Company, also supported by the opinion of a leading Tax consultancy firm, at
this stage believes that there is no basis for recording a tax liability in relation tothis case.
The other risk provisions amount to Euro 41.8 million at June 30, 2023 and referprimarily to contractual obligations to restore leased commercial properties totheir original condition.

21

Management discussion and analysis for the six months
ended June 30, 2023
(growth percentages at constant exchange rates, unless differently specified)
The Prada Group generated net revenues of Euro 2,232.4 million in the six
months ended June 30, 2023, up by 20.5% compared to the first six months of2022. Exchange rate fluctuations reduced the increase by 3.1%, to 17.4%.
During the first six months of 2023, retail sales rose by double digits against thesame period of 2022, with a +21.1% increase driven by the organic growth offull-price sales, which benefited from an increase in both average prices andvolumes sold. Over the period, retail sales accounted for 89% of total net
revenues, therefore in line with 2022 levels.
At June 30, 2023, the Group operated 603 stores, following 14 openings and 23
closures over the period.
Sales in the wholesale channel rose by 8.5% compared to the corresponding
period of 2022, in particular due to the recovery of duty-free sales.
Royalty income grew by 66.5% compared to the first six months of 2022, aperformance driven by the strong contribution of both eyewear and fragrances.

BrandsAt brand level Prada remained on a sound trajectory while Miu Miu reported aremarkably strong performance.
Prada net retail sales increased by 17.7% in the first six months of 2023,
reporting a growth of +14.7% in the second quarter, a more moderate but solid
pace compared to the +21.1% of the first quarter, on a high basis of comparison
with the exception of China.
As for Miu Miu, net retail sales rose by 50.1%, with the second quarter in further
acceleration at +57.3% versus the +41.9% of the first quarter, an excellent
outcome supported by the higher exposure to China and Asia, and driven by
growth across all markets and all product categories, thanks in part to the retailrenovation plan underway.
Net revenues by brand are Euro 1,880.4 million for Prada, Euro 326.6 million
for Miu Miu, Euro 15.5 million for Church’s and Euro 9.8 million for the otherbrands.

Markets
Over the period the Group delivered double-digit growth across all regions,excluding Americas.
In Asia Pacific, net retail sales rose by 25.3%, benefiting in particular from therecovery in China and a favorable comparison with 2022 data, particularly in
April and May.
In Europe, retail sales rose by 24.2%, supported by healthy local demand andhigh level of tourism.
22

Retail sales in the Americas fell by 1%. However, the North American client
cluster, that has been showing strength for a prolonged period, continued to
grow throughout the semester, including in the second quarter.
As for Japan, retail sales rose by 49.2%, benefiting from recent investments in
the retail network, solid domestic spending and progressive recovery of tourism
flows.
Retail sales in the Middle East also delivered solid growth reporting +13.5%.

Products
The Group reported double-digit growth across all product categories
compared with the first six months of 2022.
Leather Goods recorded retail sales growth of +11.7%, assisted by both novel
and iconic products. Ready to wear remained the fastest growing category(+36.1%) thanks to both Prada and Miu Miu, while footwear performance of+20.3% against 2022 was driven by the contribution of lifestyle products,
sneakers and formal items.

Operating results
The gross margin for the six months ended June 30, 2023 corresponded to80.3% of the net revenues, up substantially from the 77.7% of the corresponding
period in 2022. Higher average prices, a better sales mix in terms of distribution
channels and greater absorption of production overheads are the key drivers of
this improvement, together with subsiding inflationary pressures.
Operating expenses totaled Euro 1,302 million, up by Euro 129.3 million versus
2022, which included non-recurring expenses of Euro 26 million. The increase
is attributable primarily to higher variable costs ensuing from the sales increase,more communication activities, higher personnel expenses and other generaland administrative costs.
The operating income for the period, or EBIT, was Euro 491.4 million (22% of
net revenues), compared to the Euro 304.8 million (16%) of the first six monthsof 2022.

Financial expenses and taxation
The net financial expenses of Euro 46.4 million are Euro 19 million higher thanin 2022 (Euro 27.4 million). The increase is attributable largely to higher foreignexchange losses and interest expense on lease liabilities, offset in part by lower
costs associated with the net financial surplus, which improved from the same
period of 2022.
The net income tax for the six months ended June 30, 2023 is Euro 138.4
million, corresponding to 31.1% of the profit before tax.

Net income
The net income for the period is Euro 306.6 million (13.7% of net revenues),
versus Euro 189.4 million (10%) reported in 2022.
23

Net invested capital
The following table reclassifies the Statement of Financial Position to provide
information on the composition of net invested capital:
June 30
2023

December 31
2022

Right of use assets
Non-current assets (excluding deferred tax assets), net
Trade receivables, net
Inventories, net
Trade payables
Net operating working capital
Other current assets (excluding items of financial position)
Other current liabilities (excluding items of financial position)
Other current assets / (liabilities), net
Provision for risks
Post-employment benefits
Other long-term liabilities
Deferred taxation assets / (liabilities), net
Other non-current assets / (liabilities), net
Net invested capital

2,082,146
2,544,595
325,296784,525(386,559)
723,262
279,997(374,413)(94,416)(47,024)(56,323)(61,443)
336,749
171,959
5,427,546

2,011,474
2,517,042
331,915
760,457(401,799)
690,573229,575(522,553)(292,978)(51,486)(67,571)(65,590)332,235
147,588
5,073,699

Shareholder's equity – Group
Shareholder's equity – Non-controlling interests
Total consolidated shareholders' equity
Long-term financial payables, net
Short-term financial, net surplus / (deficit)
Net financial surplus / (deficit)
Net financial surplus / (deficit) to consolidated shareholders'equity ratio(3,501,416)(19,825)(3,521,241)(348,589)
631,476
282,887(3,482,217)(18,805)(3,501,022)(394,531)
929,431534,900-8%-15.3%

Long-term lease liability
Short-term lease liability
Total lease liability
Net financial surplus / (deficit), including lease liability
Shareholders’ equity and net financial surplus / (deficit),
including lease liability(1,768,803)(420,389)(2,189,192)(1,906,305)(1,715,451)(392,126)(2,107,577)(1,572,677)(5,427,546)(5,073,699)(amounts in thousands of Euro)(unaudited)(audited)

The net invested capital at June 30, 2023 is Euro 5,428 million, with equity ofEuro 3,521 million and lease liabilities of Euro 2,189 million; the net financial
position at the end of the period is a surplus of Euro 282.9 million.
Right of use assets increased by Euro 70.7 million, mainly as a result of increases
for new leases, remeasurements of existing leases and revaluations totaling
Euro 296 million, net of depreciation of Euro 221.2 million and writedowns ofEuro 3.9 million regarding leases in Russia.
The non-current assets (net) rose by Euro 28 million (Euro 2,545 million at June30, 2023 versus Euro 2,517 million at December 31, 2022).
The capital expenditures for the period amount to Euro 150.5 million, against
depreciation, amortisation and impairment losses of Euro 111.4 million.

24

six months
ended
June 30
2023(unaudited)

six months
ended
June 30
2022(unaudited)

Retail
Production, logistics and corporate

94,65055,856

62,05135,145

Total

150,506

97,196(amounts in thousands of Euro)

Capital expenditures relate primarily to store restyling and relocation projects,
as well as the advancement of the technological and digital roadmap in theretail, manufacturing and corporate areas and continued investments in the
production facilities to strengthen the supply chain.
The net operating working capital at June 30, 2023 is Euro 723.3 million, up by
Euro 32.7 million from December 31, 2022. The increase is largely attributable
to the increase in inventories to support the sales growth.
The other current liabilities (net) amount to Euro 94.4 million at June 30, 2023,
down by Euro 198.6 million from December 31, 2022, essentially due to the
reduced current tax liability resulting from the payment of the prior period's
income taxes.
The other non-current assets (net) of Euro 172 million at June 30, 2023 present
an increase of Euro 24.4 million from December 31, 2022, referring mainly tothe reduction of liabilities regarding long-term employee benefits due to thepayments made in the period.

25

Net financial position
The following table provides composition of the net financial position:
June 30
2023

December 31
2022

Bank borrowing – non-current(349,714)(395,656)

Financial payables and bank overdrafts - current
Financial payables to related parties - current
Total financial payables – current(131,991)(5,032)(137,023)(160,847)(3,568)(164,415)

Total financial payables(486,737)(560,071)

Cash and cash equivalents
Financial receivables from related parties - non-current
Financial receivables from related parties - current

766,271
1,125
2,228

1,091,622
1,125
2,224

Total cash and cash equivalents and financial receivables

769,624

1,094,971

Net financial surplus / (deficit)

282,887

534,900(amounts in thousands of Euro)(unaudited)(audited)

The net operating cash flow for the six-month period, after fixed lease payments(Euro 211.8 million), was a surplus of Euro 181.8 million. After the cash outflows
for investing activities (Euro 149 million) and dividend payments (Euro 267.1
million), and considering the foreign exchange differences (Euro 13.9 million)
resulting from the performance of the main currencies against the Euro, the net
financial surplus was Euro 282.9 million at the end of the period.
June 30
2023(amounts in thousands of Euro)

June 30
2022(unaudited)(unaudited)

Cash flow from operating activities

720,344537,742

Cost of net financial debt: interest paid
Lease liability: interest paid
Tax paid

5,424(27,342)(304,922)(4,685)(18,887)(139,495)

Net cash flow from operating activities

393,504

374,675

Repayment of lease liability(211,751)(216,473)

Net operating cash flow

181,753

158,202

Net cash flow utilised by investing activities(148,975)(93,067)

32,77865,135

Free cash flow

The total amount of undrawn lines of credit at June 30, 2023 is Euro 792 million,
consisting of Euro 427 million of committed lines and Euro 365 million of
uncommitted lines (of which Euro 100 million of uncommitted commercial
facilities).
All financial covenants were fully complied with at June 30, 2023 and they are
expected to be met in the next 12 months as well.
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The following table sets forth the lease liability:
June 30
2023

December 31
2022

Long-term lease liability
Short-term lease liability

1,768,803
420,389

1,715,451
392,126

Total

2,189,192

2,107,577(amounts in thousands of Euro)(unaudited)(audited)

The lease liability increased from Euro 2,108 million at December 31, 2022 toEuro 2,189 million at June 30, 2023, primarily as a result of remeasurements
for lease extensions or modifications (Euro 350.3 million) net of the paymentsof the period (Euro 211.8 million) and the exchange differences for the period(Euro 56.7 million) resulting from the appreciation of the Euro against the maincurrencies in the countries where the Group operates.
The lease liability is concentrated in Japan, the U.S.A. and Italy.
The net financial indebtedness, including the lease liability, is Euro 1,906 million
at June 30, 2023 (Euro 1,573 million at December 31, 2022).

Events after the reporting date
There have been no significant events to report.

Outlook
The Group will continue to act with a long-term perspective, investing behindthe brands while maintaining maximum focus on retail execution andproductivity. For the current year, management retains the ambition to deliversolid, sustainable and above-market growth, considering a more challenging
basis of comparison in the third quarter, and a fourth quarter 2022 that wasagain impacted by new Covid restrictions in Asia. The organisation will remain
vigilant and nimble to deal with different macroeconomic and demand scenariosthat may materialise ahead.

Corporate Governance Practices
The Company is committed to maintaining the highest standards of corporate
governance to create long-term sustainable value for all its stakeholders,
including its shareholders.
The corporate governance model adopted by the Company consists of a set ofrules, standards and structured procedures aimed at establishing efficient andtransparent operations within the Group, to protect the rights of the Company’s
shareholders, to enhance shareholders’ value and to uphold the Group’s
credibility and reputation. The corporate governance model adopted by theCompany complies with the applicable laws and regulations in Italy, where theCompany is incorporated, as well as the principles of the Corporate Governance27

Code (the “Code”) contained in Appendix 14 of the Rules Governing the Listingof Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”).

Compliance with the Code
The Board of Directors of the Company (the “Board”) has reviewed theCompany’s corporate governance practices and it is satisfied that such practices
have complied with the code provisions set out in the Code throughout the six
months from January 1, 2023, to June 30, 2023 (the “Reviewed Period”).

The Board
The Board is responsible for setting up the overall strategy, as well as reviewing
the operation and financial performance of the Company and the Group. The
Board is currently made up of eleven directors, of which six are Executive
Directors and five are Independent Non-Executive Directors.
During the Reviewed Period, the Board held three meetings on January 26,
March 9 and May 11, 2023.
The Board has established the Audit and Risk Committee, the Remuneration
Committee, the Nomination Committee and the Sustainability Committee, eachchaired by an Independent Non-Executive Director, in compliance with theCode. The Terms of Reference and composition of the first three Board
Committees are published on the websites of both the Company and The Stock
Exchange of Hong Kong Limited (the “Stock Exchange”). The Terms ofReference of the Board Committees are no less exacting than those set out in
the Code.

Audit and Risk Committee
The Company has established an Audit and Risk Committee in compliance with
Rule 3.21 of the Listing Rules, where at least one member possesses related
financial management expertise to discharge the responsibility of the Audit andRisk Committee. The Audit and Risk Committee consists of three Independent
Non-Executive Directors, namely, Mr. Yoël Zaoui (Chairman), Ms. Marina Sylvia
Caprotti and Mr. Maurizio Cereda.
The primary duties of the Audit and Risk Committee are to assist the Board inproviding an independent view on the independence, adequacy, effectivenessand efficiency of the internal audit function, Company’s financial reporting
process and its internal control and risk management system, to oversee theexternal audit processes, the internal audit process and financial controls
activity, to implement the Company’s risk management functions, to assess theCompany’s business model and strategies, to examine the work plan of internal
audit, to review the relationship with the external auditors by reference to thework performed by the external auditors, as well as their independence, fees
and terms of engagement, and to perform any other duties and responsibilities
assigned to it by the Board.
During the Reviewed Period, the Audit and Risk Committee held four meetings,
respectively on January 25, February 27, March 8, and May 10, 2023, with anattendance rate of 91.67%, mainly to review, with senior management, the28Group’s internal and external auditors and the Board of Statutory Auditors, thesignificant internal and external audit findings and financial matters as required
under the Audit and Risk Committee’s Terms of Reference, and to make relevant
recommendations to the Board. The Audit and Risk Committee’s activities
covered, among others, the financial year 2023 budget, the audit plan for theyear 2023, the 2022 Sustainability Report, the findings of both the internal andexternal auditors, internal controls, risk assessment, annual review of theGroup’s continuing connected transactions for the year 2022, tax and legal
updates (including management of data privacy matters and review ofextraordinary transactions), and the financial reporting matters (including theannual results for the year ended December 31, 2022 and the unaudited
financial results for the first quarter ended March 31, 2023), before
recommending them to the Board for approval.
The Audit and Risk Committee held a further meeting on July 26, 2023 to,among others, review the interim results for the period ended June 30, 2023,
before recommending them to the Board for approval.

Remuneration Committee
The primary duties of the Remuneration Committee are to makerecommendations to the Board on the Company’s policy and structure for the
remuneration package of Directors and senior management, and theestablishment of a formal and transparent procedure for developing policies onsuch remuneration. The recommendations of the Remuneration Committee arethen submitted to the Board for consideration and adoption, where appropriate.
The Remuneration Committee consists of two Independent Non-Executive
Directors, Ms. Marina Sylvia Caprotti (Chairwoman) and Mr. Yoël Zaoui, and the
Executive Director and Executive Deputy Chairman, Mr. Paolo Zannoni.
During the Reviewed Period, the Remuneration Committee held two meetings,
respectively on January 25 and March 6, 2023, with an attendance rate of 100%
to review the remuneration of Mr. Paolo Zannoni, Ms. Miuccia Prada Bianchi and
Mr. Patrizio Bertelli, as Directors with special offices, before recommending itto the Board for approval, as well as to review the aggregate basic remunerationof the Board, to be resolved upon by the Annual General Meeting, and for themembers of the Board Committees, before recommending it to the Board forapproval.

Nomination Committee
The primary duties of the Nomination Committee are to determine the policy forthe nomination of Directors and to make recommendations to the Board forconsideration and, where appropriate, adoption on the structure, size andcomposition of the Board itself, on the selection of new Directors and on the
succession plans for Directors. In discharging its duties, the Nomination
Committees has considered the Board Diversity Policy and the Directors’
Nomination Policy.

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The Nomination Committee consists of two Independent Non-Executive
Director, Mr. Maurizio Cereda (Chairman) and Ms. Marina Sylvia Caprotti, andone Executive Director, Mr. Lorenzo Bertelli.
During the Reviewed Period, the Nomination Committee held two meetings on,
respectively, January 18, and March 1, 2023, with an attendance rate of 100%
to recommend to the Board the appointment of Mr. Andrea Guerra as an
Executive Director, in replacement of the Non-Executive Director, Mr. Stefano
Simontacchi, as well as to review the proposal for the appointment of Mr.
Patrizio Bertelli as the new Chairman of the Board, to verify the independenceof the Independent Non-Executive Directors, the composition and the size of
the Board for the Year 2022.

Sustainability Committee
The Sustainability Committee assists and supports the Board with proposing andadvisory functions in its assessments and decisions on sustainability, meaning
the processes, initiatives, and activities, aimed at overseeing the Company’scommitment to sustainable development along the value chain and strategy.
Moreover, the Committee supports the preparation and review of non-financial
reports, including the annual Sustainability Report, and communications
concerning sustainability to be submitted to the Board for approval.
The Sustainability Committee consists of two Independent Non-Executive
Directors, Ms. Pamela Yvonne Culpepper (Chairwoman) and Ms. Anna Maria
Rugarli, and one Executive Director, Mr. Lorenzo Bertelli.
During the Reviewed Period, the Sustainability Committee held a meeting on
March 2, 2023, with an attendance rate of 100%, to provide updates on
progresses and achievements in ESG, approve the Sustainability Report for theYear 2022, and the industrial roadmap for supporting sustainability in theGroup’s operations.
The Sustainability Committee held a further meeting on July 12, 2023 to, among
others, provide further updates on the latest initiatives and achievements in
ESG, as well as on the industrial roadmap to support sustainability ofoperations, and to discuss the ESG results to be included in the presentation of
the interim results for the period ended June 30, 2023.

Board of Statutory Auditors
Under Italian law, a joint-stock company is required to have a board of statutory
auditors, appointed by the shareholders for a term of three financial years, withthe authority to supervise the Company on its compliance with the applicablelaw, regulations, its By-laws, the principles of proper management and, inparticular, on the adequacy and functioning of the organizational, administrative
and accounting structure adopted by the Company.
The Board of Statutory Auditors consists of Mr. Antonino Parisi (Chairman), Mr.
Roberto Spada, and Mr. David Terracina. The alternate statutory auditors are
Ms. Stefania Bettoni and Ms. Fioranna Negri.
During the Reviewed Period, the Board of Statutory Auditors held threemeetings.
30

Organismo di Vigilanza (Supervisory Body)
In compliance with Italian Legislative Decree 231 of June 8, 2001 (the “Decree”),
the Company established an “Organismo di Vigilanza” whose primary duty is toensure the functioning, effectiveness and enforcement of the Company’s
Organization, Management and Control Model, adopted by the Company
pursuant to the same Decree. The “Organismo di Vigilanza” has three members
appointed by the Board and selected among qualified and experienced
individuals. The “Organismo di Vigilanza” consists of Ms. Stefania Chiaruttini(Chairwoman), Mr. Yoël Zaoui, Independent Non-Executive Director, and Mr.
Roberto Spada, Statutory Auditor.

Dividends
The Company may distribute dividends subject to the approval of theshareholders in a shareholders’ general meeting.
No dividends have been declared or paid by the Company in respect of the
Reviewed Period.
On March 9, 2023, the Board recommended for the financial year 2022 thepayment of a final dividend of Euro 0.11 per share, representing a total dividendof Euro 281,470,640. The shareholders approved the distribution and paymentof the final dividend at the annual general meeting held on April 27, 2023. The
dividend was paid on May 19, 2023, while the relevant withholding tax was paidin July 2023.

Directors’ Securities Transactions
The Company has adopted a set of written procedures governing Directors’securities transactions on terms no less exacting than those set out in the Model
Code for Securities Transactions by Directors of Listed Issuers as set out inAppendix 10 of the Listing Rules (the “Model Code”). In response to specificenquiries by the Company, all Directors confirmed that they complied with therequired standard set out in the Model Code and the Company’s procedures at
all applicable times during the Reviewed Period. There was no incident of noncompliance during the Reviewed Period.
The Company has also adopted a set of written procedures governing securities
transactions carried out by the relevant employees who are likely to possess
inside information in relation to the Company and its securities. This set ofprocedures is on terms no less exacting than those set out in the Model Code.

Purchase, Sale or Redemption of the Company’s Listed
Securities
Neither the Company nor any of its subsidiaries purchased, sold or redeemed
any of the Company’s listed securities during the Reviewed Period.

31

Publication of Interim Results Announcement and Interim
Report
The interim results announcement of the Company is published on the websitesof Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk and theCompany at www.pradagroup.com. The interim report will be available on thesame websites and dispatched to the shareholders of the Company in due
course.
By Order of the Board
Prada S.p.A.
Mr. Paolo Zannoni

Executive Deputy Chairman

Milan (Italy), July 27, 2023
As at the date of this announcement, the Company’s executive directors are Mr. Patrizio
BERTELLI, Mr. Paolo ZANNONI, Ms. Miuccia PRADA BIANCHI, Mr. Andrea GUERRA,
Mr. Andrea BONINI and Mr. Lorenzo BERTELLI; and the Company’s independent nonexecutive directors are Mr. Yoël ZAOUI, Ms. Marina Sylvia CAPROTTI, Mr. Maurizio
CEREDA, Ms. Pamela Yvonne CULPEPPER and Ms. Anna Maria RUGARLI.

32