Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited
take no responsibility for the contents of this announcement, make no representation as toits 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 spa
(Stock Code: 1913)

ANNOUNCEMENT
OF THE CONSOLIDATED RESULTS FOR THE THREE
MONTHS ENDED APRIL 30, 2013
- Net revenues were Euro 782.3 million, recording an increase of 13.9%
compared with the three months ended April 30, 2012
- Retail net sales were Euro 678.7 million, up by 19.1% compared withthe three months ended April 30, 2012
- Retail Same Store Sales Growth was 8% compared with the threemonths ended April 30, 2012
- EBITDA was Euro 240.8 million, up by 20.4% compared with the threemonths ended April 30, 2012, and representing a margin of 30.8% on
net revenues- Group’s net income amounted Euro 138.2 million, up by 13.5%
compared to Euro 121.7 million for the three months ended April 30,
2012- Net financial position as at April 30, 2013, was positive and improved
further to Euro 360.5 million- Net operating cash flow for the three months ended April 30, 2013,
was Euro 244.6 million

1Consolidated results for the three months ended April
30, 2013
The Board of Directors (the “Board”) of PRADA S.p.A. (the “Company” or“PRADA spa”) is pleased to announce the unaudited Consolidated results of
the Company and its subsidiaries (collectively, the “Group”) for the threemonths ended April 30, 2013, together with the unaudited comparative
figures for the three months ended April 30, 2012.

Key financial information
threemonthsended
April 30
2012
unaudited

twelvemonthsended
January
31, 2013
auditedthree
monthsended
April 30
2013
unaudited

686,734
200,097
164,782
166,242
121,718
8,843
0.048

3,297,219
1,052,469
889,781883,616
625,681
9,427
0.245

782,294
240,825
195,719
189,845
138,158
10,121
0.054

29.1%
24.0%

31.9%
27.0%

30.8%
25.0%

Key information from the Statement offinancial position(amounts in thousands of Euro)

as at
April 30
2012
unaudited

as atJanuary
31, 2013
auditedas atApril 30
2013
unauditedchange vsJanuary 31
2013

Net operating working capital
Net invested capital
Net financial position surplus/(deficit)
Group shareholders’ equity
Capital expenditure
Net operating cash flows

337,628
1,839,229
122,422
1,948,993
55,250180,797

317,7142,017,844
312,648
2,320,022
351,129759,272

287,265
2,122,017
360,516
2,468,116
178,252
244,553(30,449)
104,173
47,868148,094-

Key information from the Income
statement(amounts in thousands of Euro)Net revenues
EBITDAEBIT
Income before tax
Net income of the Group
Average headcount (persons)
Earnings per share
EBITDA %EBIT %%
change vsApril 30
2012

13.9%
20.4%
18.8%
14.2%
13.5%
14.5%
12.5%

Highlights for the three months ended April 30, 2013
The net revenues recorded in the three months ended April 30, 2013, wereEuro 782.3 million, a double-digit growth of +13.9% compared to Euro 686.7
million achieved in the same period of 2012. The increase at constantexchange rates was +15.2% while the Same Stores Sale Growth (SSSG) was+8%.
The business expansion was achieved thanks to the performance of the retailchannel that, posting net sales of Euro 678.7 million in the three months
ended April 30, 2013, contributed 87.9% to the Group’s total.
The EBITDA for the three months ended April 30, 2013, totaled Euro 240.8
million, up by +20.4% over Euro 200.1 million posted in the same threemonths period of 2012. In terms of profitability the EBITDA margin improved
to 30.8% of total net revenues (29.1% in the three months ended April 30,2012).

2

In the three months ended April 30, 2013, the Group’s net income amounted
to Euro 138.2 million, or 17.7% on net revenues, posting an increase of +13.5%
over Euro 121.7 million achieved in the same period of last year.
The cash flows generated from operations in the three months ended April
30, 2013, allowed to sustain the capital expenditure program as well as totake the Group’s positive net financial position to stand at Euro 360.5 million.

Consolidated income statement for the three months endedApril 30, 2013
three
months
% on
ended
Net
April 30
revenues
2013
unauditedthreemonths
% on
ended
Net
April 30
revenues
2012
unaudited782,294(206,436)

100.0%-26.4%

686,734(190,308)

100.0%-27.7%

575,85873.6%

496,42672.3%(380,139)-48.6%(331,644)-48.3%

195,71925.0%

164,78224.0%

5(6,162)

-0.8%

1,460

0.2%

5

288

-

-

-

189,84524.3%

166,24224.2%(47,958)-6.1%(42,956)-6.3%

Net income from continuing operations

141,88718.1%

123,286

18.0%

Net income for the period

141,88718.1%

123,286

18.0%

3,729

0.5%

1,568

0.2%

Net income – Group138,158

17.7%

121,718

17.7%

Depreciation, amortization andimpairment

45,106

5.8%

35,315

5.1%

EBITDA

240,82530.8%

200,09729.1%(amounts in thousands of Euro)Net revenues
Cost of goods sold

Note

3

Gross margin
Operating expenses

4

EBIT
Interest and other financial
income/(expenses), net
Dividends received from third parties
Income before taxes
Taxation

6

Net income – Non-controlling interests

Basic and diluted earnings per share (inEuro per share)

7

0.054

3

0.048

Consolidated statement of financial position(amounts in thousands of Euro)
AssetsCurrent assets
Cash and cash equivalents
Trade receivables, net
Inventories, net
Derivative financial instruments – current
Receivables from and advance payments toparent company and other related parties
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Associated undertakings
Deferred tax assets
Other non-current assets
Derivative financial instruments non-current
Total non-current assets

Note

as at
April 30
2013
unaudited

as atJanuary 31
2013
audited98

610,542
251,890357,334
18,413571,746
304,525
343,80243,06010

23,56819,493

12

118,201
1,379,948

104,823
1,387,449

11
11

1,002,745
879,101
18,866
171,844
73,324524
2,146,404

857,299
878,750
23,024
176,057
61,682
1,018
1,997,830

3,526,352

3,385,279

172,427

175,570

13

Total Assets
Liabilities and Shareholders’ equity
Current liabilities
Bank overdrafts and short-term loans
Payables to parent company and other relatedparties
Trade payables
Current tax liabilities
Derivative financial instruments – current
Obligations under finance leases - current
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term financial payables
Obligations under finance leases non-current
Post-employment benefits
Provision for risks and charges
Deferred tax liabilities
Other non-current liabilities
Derivative financial instruments non-current
Total non-current liabilities

14

6,217

5,599

15

321,959
129,317
3,218
491
104,737
738,366

330,613
97,148912
575
131,645742,062

72,848472
49,65347,55147,29587,435
199
305,453

78,830518
45,53846,91455,63684,905384
312,725

Total Liabilities

1,043,819

1,054,787

Share capital
Other reserves
Translation reserve
Net profit for the period
Total Shareholders’ equity – Group

255,882
2,091,601(17,525)
138,158
2,468,116

255,882
1,480,747(42,288)625,6812,320,022

14,417

10,470Total Liabilities and Shareholders’ equity

3,526,352

3,385,279

Net current assets
Total assets less current liabilities

641,582
2,787,986

645,387
2,643,217

16

17

Shareholders’ equity – Non-controlling interests

4Statement of changes in consolidated shareholders’ equity(amounts in thousands of Euro, except for number of shares)(amounts inthousands of Euro)

Number of
SharesBalance at January
31, 2012 (audited)

2,558,824,000

Allocation of 2011
net profit
Dividends
Capital injection in
subsidiaries
Comprehensive
income for the year
(recycled to P&L)
Comprehensive
income for the year
(not recycled to
P&L)
Balance at January
31, 2013 (audited)
Allocation of 2012
net profit
Dividends
Comprehensive
income for the year
(recycled to P&L)
Comprehensive
income for the year
(not recycled to
P&L)
Balance at April 30,
2013 (unaudited)

Share
Share
premium
Capitalreserve

Cash Actuarial
flow
gain
hedge (losses)
reserve reserve

255,882(4,173)410,047(1,192)Available
Translati
Otherfor saleon Net profit
reserves
reserve
reserve(58)

747,548

431,929(17,239)

Equityattributa
Nonble tocontrolling
ownersinterestsof theGroup431,929 1,822,744- (431,929)

-

Total
Equity8,224 1,830,968

-

-

-

-

-

-

-

-

-

-

-

- (127,941)-- (127,941)(5,576) (133,517)

-

-

-

-

-

-

-

-

-

-

1,166

1,166

-

-

-

24,321

-

5,544

-

(25,049)625,681

630,497

6,656

637,153

-

-

-

-

(5,278)

-

-

-

-

(5,278)-(5,278)2,558,824,000

255,882

410,047

20,148(6,470)5,486 1,051,536(42,288)

-

-

-

-

-

-

625,681

-

-

-

-

-

-

-

-

-

(11,709)

-

-

-

-

-

-

2,558,824,000

255,882

410,047

8,439(6,470)625,681 2,320,022-

10,470 2,330,492- (625,681)

-

-

-

-

-

-

-

-

-

(3,118)-24,763

138,158

148,094

3,947

152,041

-

-

-

-

-

-

-

2,368 1,677,217(17,525)

138,158 2,468,116

Under Italian law, the Company is required to allocate a portion of its net
profit to non-distributable reserves and to provide additional information on
the distribution of earnings for the period.

5-14,417 2,482,533

Summarized statement of consolidated cash flows
three months
ended
April 30
2013
unaudited

three months
ended
April 30
2012
unaudited

Net cash flows from operating activities

244,553

180,797

Cash flows generated/(utilized) by investing activities(205,793)(76,507)

Cash flows generated/(utilized) by financing activities(10,172)

15,634

Change in cash and cash equivalents, net of bank overdrafts

28,588

119,924(amounts in thousands of Euro)Statement of consolidated comprehensive income
three months
ended
April 30
2013
unaudited

twelve months
ended
January 31
2013
audited141,887

633,277

Change in Translation reserve
Tax impact
Change in Translation reserve less tax impact

24,981
24,981(25,989)(25,989)

Change in Cash Flow Hedge reserve
Tax impact
Change in Cash Flow Hedge reserve less tax impact(16,147)
4,438(11,709)33,530(9,209)24,321

Change in Fair Value reserve
Tax impact
Change in Fair Value reserve less tax impact(4,157)
1,039(3,118)

7,391(1,847)
5,544-(6,369)1,091(5,278)152,041

631,875

3,497

6,656

148,094625,219(amounts in thousands of Euro)Net income for the period – ConsolidatedA) Items recycled to P&L:

B) Item not recycled to P&L
Change in Actuarial reserve
Tax impact
Change in Actuarial reserve less tax impact
Consolidated comprehensive income for the period
Comprehensive income for the period – Non-controlling
Interests
Comprehensive income for the period – Group6

Notes to the consolidated results for the three months
ended April 30, 2013
1.

Presentation of PRADA GroupPRADA spa (the “Company”), together with its subsidiaries (jointly the“Group”), is listed on the Hong Kong Stock Exchange (stock code: 1913). It is
one of the world leaders in the luxury goods sector where it operates with
the Prada, Miu Miu, Church’s and Car Shoe brands in the design, production
and distribution of luxury handbags, leather goods, footwear, apparel andaccessories. The Group also operates, under licensing agreements, in theeyewear, fragrances and mobile telephone sectors. Its products are sold in
more than 70 countries worldwide through a network that included 462
Directly Operated Stores (DOS) at April 30, 2013, and a selected network ofluxury department stores, independent retailers and franchise stores.
The Company is a joint-stock company, registered and domiciled in Italy. Its
registered office is in Via Fogazzaro 28, Milan, Italy.

2.

Basis of preparation

The consolidated financial information for the three months ended April 30,
2013, included in this Announcement refers to the Group of companies
controlled by PRADA spa (the "Company"), holding company of the PRADA
Group (the "Group"), and are based on its consolidated results. Such
consolidated results for the three months ended April 30, 2013, wereprepared on a consistent basis compared to the Consolidated financial
statements of the Group for the twelve months ended January 31, 2013, withthe exception of new and revised IFRS issued by the IASB and endorsed by theEuropean Union that are effective for the PRADA Group starting from thecurrent period’s financial information.
IFRS also refer to all the International Accounting Standards (“IAS”) and all
the interpretations of the International Financial Reporting Interpretation
Committee (“IFRIC”), previously named the Standing Interpretations
Committee (“SIC”).

New standards and amendments issued by the IASB, endorsedby the European Union and applicable to the PRADA Groupeffective from the current financial period- Amendments to “IAS 19 Employee benefits”;- “IFRS 13 Fair Value measurement”;- Amendments to “IAS 12 Income Taxes”;- Amendments to “IFRS 7 Financial Instruments: Disclosures”;- “IFRIC Interpretation 20 Stripping Costs in the Production Phase of a
Surface Mine”.

7

These new IFRS and amendments do not have any significant impact on the
consolidated financial results of the PRADA Group for the three months
ended April 30, 2013.
On December 29, 2012, the European Union endorsed the “IFRS 10
Consolidated Financial Statements”, the “IFRS 11 Joint Arrangements”, the“IFRS 12 Disclosure of Interests in Other Entities”, the Amendments to “IAS
28 Investment in Associates and Joint Ventures” and the Amendments to “IAS
27 Separate Financial Statements” that, according to IASB, are effectivefrom January 1, 2013, but, because of the timing of the endorsement process
in the European Union, are applicable to the PRADA Group from February 1,
2014. The early adoption of these new IFRS and amendments would not have
had any significant impact on the Consolidated financial information of the
Prada Group for the three months ended April 30, 2013.

8

3.

Net revenues analysis

Net revenues for the three months period ended April 30, 2013
three months
ended
April 30
2013
unaudited

three months
ended%
April 30
2012 change
unaudited

Net sales by geographical area
Italy
EuropeAmericas
Asia PacificJapan (including Hawaii)
Middle East
Other countries
Total

101,363 13.1%
158,325 20.5%
94,155 12.2%
315,564 40.8%
79,032 10.2%
22,831
3.0%
1,301
0.2%
772,571 100.0%

110,065 16.3% -7.9%
148,018 22.0%
7.0%
76,625 11.3% 22.9%
252,772 37.6% 24.8%
80,499 12.0% -1.8%
3,715
0.6% 514.6%
1,583
0.2% -17.8%
673,277 100.0% 14.7%

Net sales by brand
Prada
Miu Miu
Church's
Car Shoe
Other
Total

638,838 82.6%
112,659 14.6%
16,763
2.2%
3,733
0.5%
578
0.1%
772,571 100.0%

541,539 80.4% 18.0%
107,338 15.9%
5.0%
16,304
2.4%
2.8%
6,301
0.9% -40.8%
1,795
0.4% -67.8%
673,277 100.0% 14.7%

Net sales by product line
Clothing
Leather goods
Footwear
Other
Total

108,045 14.0%
538,376 69.7%
118,220 15.3%
7,930
1.0%
772,571 100.0%

113,837 16.9% -5.1%
417,256 62.0% 29.0%
134,694 20.0% -12.2%
7,490
1.1%
5.9%
673,277 100.0% 14.7%

Net sales by distribution channelDOS
Independent customers and franchises
Total

678,709 87.9%
93,862 12.1%
772,571 100.0%

569,652 84.6%
103,625 15.4%
673,277 100.0%

Net sales
Royalties

772,571
9,723

673,277
13,457

Total net revenues

782,294 100.0%(amounts in thousands of Euro)

9

98.8%
1.2%

19.1%
-9.4%
14.7%

98.0% 14.7%
2.0% -27.8%

686,734 100.0%

13.9%

Number of stores
April 30
2013
DOS
franchises

January 31
2013
DOS
franchises

April 30
2012
DOS
franchises

Prada
Miu Miu
Church’s
Car Shoe

284
126
45
7

22
7
-

283
126
45
7

20
5
-

251
95
43
6

19
6
-

Total

462

29

461

25

395

25

April 30
2013
DOS
franchises

January 31
2013
DOS
franchises

April 30
2012
DOS
franchises

ItalyEuropeAmericas
Asia PacificJapan (including
Hawaii)
Middle East
Africa

48
136
62
131

5
6
18

48
137
66
130

5
6
14

45
119
49
116

5
6
14

71

-

66

-

64

-

11
3

-

11
3

-

2
-

-

Total

462

29

461

25

395

25

4.

Operating expenses
three months
ended
April 30
2013
unaudited% on netrevenues

three months
ended
April 30
2012
unaudited% on netrevenues

Product design and development costs
Advertising and communications costs
Selling costs
General and administrative costs

28,13538,767
269,001
44,236

3.6%
5.0%
34.4%
5.7%

25,36635,290228,105
42,883

3.7%
5.1%
33.2%
6.2%

Total

380,13948.6%

331,644

48.3%(amounts in thousands of Euro)

5.

Interest and other financial expenses, net
three months
ended
April 30
2013
unaudited

three months
ended
April 30
2012
unaudited

Interests expenses on borrowings
Interest income
Exchange gains /(losses) – realized
Exchange gains/(losses) – unrealized
Other financial income/(expenses)
Dividends received from third parties(1,379)1,103(843)(3,725)(1,318)288(2,498)
1,155
3,318
411
(926)
-

Total

(5,874)

1,460(amounts in thousands of Euro)

10

6.

Taxation
three months
ended
April 30
2013
unaudited

three months
ended
April 30
2012
unaudited

Current taxation
Deferred taxation

45,7272,231

45,730(2,774)

Income taxes

47,95842,956(amounts in thousands of Euro)

7.

Earnings and dividends per share

Earnings per share
Earnings per share are calculated by dividing the net income attributable toGroup’s shareholders by the weighted average number of ordinary shares inissue.
three months three months
ended
ended
April 30
April 3020132012
unauditedunauditedGroup’s net income in Euro
Weighted average number of ordinary shares in issue
Earnings per share in Euro, calculated on weighted average
number of shares

138,157,640
121,718,180
2,558,824,000 2,558,824,000
0.054

0.048

Dividends per share
During the period ended April 30, 2013, PRADA spa did not distribute any
dividend, but the Board of Directors of the Company held on April 5, 2013,
recommended for the financial statements ended January 31, 2013, a final
dividend of Euro 230,294,160 (or 9 Euro/cents per share) and the Annual
General Meeting held on May 23, 2013, approved such dividend distribution.
In accordance with “IAS 10 Events after the Balance Sheet Date” the Euro
230.3 million dividends payable was not recognized as a liability at April 30,
2013.
During the period ended January 31, 2013, the Company distributed dividendsof Euro 127,941,200, as approved by the Annual General Meeting held on May
22, 2012, to approve the financial statements for the year ended January 31,
2012. The payment of the dividends and the related Italian withholding tax,
arising, where applicable, from the application of the Italian ordinary
withholding tax rate to the dividends, was completed by January 31, 2013.

11

8.

Inventories, net
as atApril 30
2013
unaudited

as atJanuary 31
2013
auditedRaw materials
Work in progress
Finished products
Allowance for obsolete and slow moving inventories

93,37525,018313,579(74,638)

79,55924,620314,244(74,621)

Total

357,334

343,802(amounts in thousands of Euro)The level of inventories increased just because of the raise in raw materials
stocked, as in line with the needs of the seasonal phasing of the production
cycles.

9.

Trade receivables, net

Trade receivables are detailed as follows:
as atApril 30
2013
unaudited

as atJanuary 31
2013
audited

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

231,971(11,488)
31,407286,390(11,547)
29,682

Total

251,890

304,525(amounts in thousands of Euro)The reduction in trade receivables, typical of this part of the year, wasrelated to the collection of the wholesale deliveries.

10. Receivables from and advance payments to parent
company and other related parties
Receivables from and advance payments to parent company and otherrelated parties are detailed below:
as atApril 30
2013
unaudited

as atJanuary 31
2013
auditedFinancial receivables from other related parties
Other receivables from PRADA Holding bv
Other receivables from other comp. controlled by PRADA Holding bv
Other receivables from other related parties
Advance payments to other related parties

1,414
280
4
2,099
19,771

1,413
249
3
2,652
15,176

Total

23,56819,493(amounts in thousands of Euro)

Advance payments to other related parties included Euro 17 million ofadvance payments made to Luna Rossa Challenge NZ ltd and Luna Rossa
Challenge srl in accordance with the contracts signed for sponsorship of the12

Luna Rossa yacht in relation to its participation in the XXXIV edition of theAmerica’s Cup. The remaining Euro 2.8 million essentially consisted ofadvances paid to Progetto Prada Arte srl and Stichting Fondazione Prada for
cultural initiatives to be undertaken after the reporting period.

11. Capital expenditure
Changes in the net book value of Property, plant and equipment in the period
ended April 30, 2013, are as follows:
Production Leasehold
Furniture
plant and
improve& fittingsmachineryments(amounts inthousands of Euro)Land andbuildings

Balance at January
31, 2013 (audited)

211,580

17,448373,043

110,310

39,413

105,505

857,299

109,156(1,817)-1,500(1,856)(33)

5,933(25,547)-

12,859(7,140)-796(1,649)(23)

42,056(14)

172,300(38,009)
(70)

2,694

12

6,794

1,907

171

468

12,046

6,079
-

48
-

5,101
(68)

3,788
(211)

174
-

(15,726)
(6)

(536)
(285)

327,692

17,119365,256

121,51338,882132,283

1,002,745

Additions
Depreciation
Disposals
Exchangedifferences
Other movements
Impairment
Balance at April 30,
2013 (unaudited)

Other Assets under
tangible construction

Total net
book value

Changes in the net book value of Intangible assets in the period ended April
30, 2013, are as follows:(amounts inthousands of Euro)

Trademarks

Goodwill

Balance at January
31, 2013 (audited)291,105

503,987

65,763

7,988

1,677

8,230

878,750105(2,713)--

2,876(2,953)
-

113
(864)
-

(231)
-

2,864
-

5,958
(6,761)
-

803

134

263

8

-

29

1,237

-

-

3,737
-

1,674
-

-

(5,444)
(50)

(33)
(50)

289,300

504,121

69,686

8,919

1,446

5,629

879,101

Additions
Amortization
Disposals
Exchangedifferences
Other movements
Impairment
Balance at April 30,
2013 (unaudited)

Store Lease
Development Assets in
SoftwareAcquisitions
costs progress

13

Total net
book value12. Other current assets
Other current assets are detailed as follows:
as atApril 30
2013
unaudited

as atJanuary 31
2013
auditedVAT
Income tax and other tax receivables
Other assets
Prepayments and accrued income
Deposits

25,10022,206
17,37851,897
1,620

25,072
20,54016,731
41,266
1,214

Total

118,201

104,823

as at
April 30
2013
unaudited

as atJanuary 31
2013
auditedGuarantee deposits
Deferred rental income
Other receivables

56,958
5,771
10,59550,898
2,410
8,374

Total

73,324

61,682(amounts in thousands of Euro)

13. Other non-current assets
Other non-current assets are detailed as follows:(amounts in thousands of Euro)

14. Payables to parent company and other related parties
Payables to parent company and other related parties are detailed asfollows:
as atApril 30
2013
unaudited

as atJanuary 31
2013
auditedFinancial payables to other related parties
Other payables to PRADA Holding bv
Other payables to other companies controlled by
PRADA Holding bv
Other payables to other related parties

5,202
119

5,018
120

-

3

896

458

Total

6,217

5,599

(amounts in thousands of Euro)14

15. Trade payables
Trade payables are detailed as follows:(amounts in thousands of Euro)

as at
April 30
2013
unaudited

as atJanuary 31
2013
audited

Trade payables – third parties
Trade payables – related parties

312,683
9,276

323,894
6,719

Total

321,959

330,613

as at
April 30
2013
unaudited

as atJanuary 31
2013
auditedPayables for capital expenditure
Accrued expenses and deferred income
Other payables

29,963
10,94863,82657,9699,810
63,866

Total

104,737

131,645

16. Other current liabilities
Other current liabilities are detailed as follows:(amounts in thousands of Euro)

17. Provisions for risks and charges
Movements in provisions for risks and charges are summarized as follows:
Provision
for litigation

Provision fortax disputes

Other
provisions

Total

1,775

27,467

17,672

46,914

Exchange differences
Reversals
Uses
Increases

15
(8)
(22)
-

(38)
371

306
(79)
(29)
121

283
(87)
(51)
492

Balance at April 30, 2013
(unaudited)

1,760

27,80017,991

47,551(amounts in thousands of Euro)
Balance at January 31, 2013
(audited)

During the three months ended April 30, 2013, there were neither significant
development regarding the outstanding litigations at January 31, 2013, nor
new controversy occurred during the period so as to considerably adjust theestimates made to account for Provisions for risks and charges at January 31,
2013.

15

Management Discussion and Analysis for the threemonths ended April 30, 2013
Net revenues
In the three months ended April 30, 2013, the PRADA Group recorded net
revenues of Euro 782.3 million, a double-digit growth of +13.9% compared toEuro 686.7 million posted in the three months ended April 30, 2012. At
constant exchange rates the growth was +15.2%.

Distribution channels
The business expansion achieved by the Group was substantially supportedby the enduring positive contribution of the retail channel which, counting
on a total of 462 Directly Operated Stores (DOS) as at April 30, 2013, posted
net sales of Euro 678.7 million and scored a progress of +19.1% on Euro 569.7
million recorded in the three months ended April 30, 2012. At constantexchange rates the growth was +20.8% and on a Same Store Sales Growth(SSSG) basis it was +8%. The contribution to total net sales climbed up to
87.9% from 84.6% related to the same period of 2012.
In these first three months of 2013 the Group opened a net of 1 store (2openings and 1 closing).
The wholesale channel, contributing for the remaining 12.1% of total net
sales, recorded a downturn of 9.4% compared to the same three months of2012. As expected, business curtailment occurred in Italy and Europe, while
new accounts and signs of recovery in the US market mitigated the shrinkage
in the channel in the first three months of the year.

Markets
In terms of geographical areas, the three months ended April 30, 2013,
showed different trends.
The Asia Pacific market recorded net sales of Euro 315.6 million, up by+24.8% compared to the three months ended April 30, 2012 (+23.1% atconstant exchange rates). Thanks to the performances of both the retail andwholesale channels, the contribution of the region to the consolidated net
sales rose from 37.6% to 40.8%. In particular, the DOS owned by the Groupscored a +6% SSSG while new wholesale accounts, essentially the 4 DOS
opened in franchising in South Korea, Singapore and Taiwan in the threemonths ended April 30, 2013, fueled further the pace of growth of theregion. The Greater China area (China, Hong Kong and Macau) recorded net
sales for Euro 200.9 million, an increase of +24.3% over Euro 161.6 million
posted in the same period of last year (+22.9% at constant exchange rates
and +9% SSSG).
In the three months ended April 30, 2013, Europe’s net sales totaled Euro
158.3 million and grew +7% (+8.2% at constant exchange rates) compared toEuro 148.0 million posted in the three months ended April 30, 2012. The
expansion achieved by the retail channel (+18.2% as reported, +19.7% at
16

constant exchange rates and +9% on a SSSG basis) was lowered by thepersistent selective strategy over the wholesale business in the region.
The Italian market posted net sales of Euro 101.4 million in the first threemonths of the year, down by 7.9% compared to the same period of 2012. The
reduction essentially arose from the wholesale channel that decreased by
35.9% as a result of timing differences in deliveries and, same as Europe, theongoing selective strategy, in a persistent difficult market condition for thischannel which is more oriented to the domestic demand. The domestic
market was anyway well balanced by the performance of the retail channel
that managed to gain a +9.1% increase over the three months ended April 30,
2013, notably +8% on a SSSG basis.
Net sales in the Americas amounted to Euro 94.2 million and achieved a+22.9% expansion compared to Euro 76.6 million posted in the three months
ended April 30, 2012 (almost unchanged at constant exchange rates). The
retail channel, contributing most of the net sales of the area and counting on
a total of 62 DOS at April 30, 2013, generated a +26.7% increase compared tothe same period of 2012 (+7% SSSG). During the period, the expansion
project in South America went on with the opening of the first Prada store in
Rio de Janeiro, Brazil. The wholesale channel delivered a growth of +9.9%
compared to the same period of 2012 (almost unchanged at constantexchange rates).
In the three months ended April 30, 2013, the Japanese market generated
net sales of Euro 79.0 million recording a 1.8% slowdown just because of theweakening of the Japanese Yen. In fact, at constant exchange rates, thearea delivered a +12.2% growth, even more appreciable on a SSSG basis witha +11% increase.
Increasingly important, the Middle East market with its 11 DOS as at April 30,
2013, raised net sales of Euro 22.8 million and recorded a triple-digit growthover the same period of the previous year.

Products
In the three months ended April 30, 2013, the Leather goods contribution to
the consolidated net sales climbed up to 69.7% from 62% contributed thesame period of last year. Net sales generated by this product category wereEuro 538.4 million, +29% compared to Euro 417.3 million posted in the threemonths ended April 30, 2012. In all geographical areas the Leather goods
scored double-digit growth rates at constant exchange rates.
Essentially because of the reduction in the wholesale business, the Footwear
product category, delivering net sales of Euro 118.2 million in the threemonths ended April 30, 2013, decreased by 12.2% over Euro 134.7 million
recorded in the same period of 2012 (-11.4% at constant exchange rates).
Same as Footwear, but to a lesser extent, the trend in the wholesale
business affected the performance of the Ready-to-wear that recorded net
sales of Euro 108.0 million in the three months ended April 30, 2013, andposted a decrease of 5.1% compared to the same period of last year (-3.8% atconstant exchange rates).

17

Conversely, the trend in retail for both Footwear and Ready-to-wear was
slightly positive.

BrandsThe Group’s business expansion was mainly sustained by the Prada brandwhich scored net sales of Euro 638.8 million, a +18% double-digit growthcompared to the three months ended April 30, 2012 (+19.1% at constantexchange rates). In the three months ended April 30, 2013, the Prada brandcontribution to total net sales climbed up to 82.6% from 80.4% recorded in
the same three months of 2012. The business development was totally
generated in the retail channel that compensated the slowdown recorded in
the wholesale channel.
In the three months ended April 30, 2013, Miu Miu brand generated net sales
totaling Euro 112.7 million, +5% compared to Euro 107.3 million posted in
the three months ended April 30, 2012 (+7.4% at constant exchange rates).
The current market conditions together with the under representation of thebrand in fast growing markets mitigated the development in the quarter.
Thanks to the wholesale channel and markets such as Americas and Europe,
the Church’s brand posted net sales of Euro 16.8 million, up by +2.8%
compared to the same three months period of 2012 (+4.7% at constantexchange rates).
Car Shoes net sales amounted to Euro 3.7 million and heavily declined
compared to Euro 6.3 million posted in the three months ended April 30,
2012, due in part to different delivering to wholesale.

Royalties
The business of the licensed products contributed net revenues of Euro 9.7
million compared to Euro 13.5 million posted in the three months endedApril 30, 2012, the latter being boosted by the royalties coming from thelicensing agreement with LG Electronics for the sale of the PRADA Phone by
LG 3.0Operating results
For the three months ended April 30, 2013, the consolidated EBITDA
amounted to Euro 240.8 million, recording an increase of +20.4% comparedto Euro 200.1 million reported in the same period of 2012. As a percentage
on consolidated net revenues, the EBITDA increased from 29.1% for the threemonths ended April 30, 2012, to 30.8% in the current period. The
improvement in the operating profitability was first achieved at gross marginlevel, mainly thanks to a more favorable mix of sales in terms of channel,
product and geography, then slightly diluted following to the higher amountof operating expenses incurred in the first three months of 2013 compared tothe same period of 2012.
The consolidated operating expenses for the three months ended April 30,
2013, totaled Euro 380.1 million, up by +14.6% compared to the same periodof 2012. The selling expenses contributed the most to the increase, as18

impacted by the fast expansion of the retail network occurred in the second
half of the 2012 financial year. The growth of the business in general and ahigher media spending made the rest of the increase.
As a result of the above, the consolidated EBIT achieved for the threemonths ended April 30, 2013, amounted to Euro 195.7 million, up by +18.8%
compared to the Euro 164.8 million gained in the same period of 2012. As apercentage on net revenues, the EBIT grew from 24% in the first threemonths of 2012 to 25%.
The Group’s net result raised to Euro 138.2 million in the three months
ended April 30, 2013, up by +13.5% compared to the same period of lastyear, despite the negative contribution of financial income/expenses mainly
attributable to exchange rate losses of Euro 4.6 million versus a gain of Euro
3.7 million in the same period of 2012.

Net invested capital
The following table contains the Statement of financial position reclassified
in order to provide a better picture of the composition of the Net invested
capital.
(amounts in thousands of Euro)

as at
April 30
2013
unaudited

as atJanuary 31
2013
auditedNon-current assets (excluding deferred tax assets)
Trade receivables, net
Inventories, net
Trade payables
Net operating working capital
Other current assets (excluding financial position items)
Other current liabilities (excluding financial position items)
Other current assets/(liabilities), net
Provisions for risks
Post-employment benefits
Other long-term liabilities
Deferred taxation, net
Other non-current assets/(liabilities), net
Net invested capital
Shareholders’ equity – Group
Shareholders’ equity – Non Controlling Interests
Total consolidated Shareholders’ equity
Long term financial payables
Short term financial , net surplus/(deficit)
Net financial position surplus/(deficit)
Shareholders’ equity and Net financial position

1,974,560
251,890357,334(321,959)
287,265
158,768(238,288)(79,520)(47,551)(49,653)(87,634)
124,550(60,288)
2,122,017(2,468,116)(14,417)(2,482,533)(73,320)
433,836
360,516(2,122,017)

1,821,773
304,525
343,802(330,613)
317,714
165,962(230,285)(64,323)(46,914)(45,538)(85,289)
120,421(57,320)2,017,844(2,320,022)(10,470)(2,330,492)(79,348)
391,996
312,648(2,017,844)

At April 30, 2013, the Net invested capital stood at Euro 2,122.0 million, up
by Euro 104.2 million compared to January 31, 2013, when it was equal toEuro 2,017.8 million. The increase arose from the strengthening in the Noncurrent assets, partially offset by the reduction in the Net operating working
capital and other assets and liabilities. The Non-current assets, essentially
tangible and intangible assets, increased following to the capital expenditure
19

for the three months period (Euro 178.3 million) and the currencies
translation effect (Euro 13.3 million), net of the depreciation andamortization (Euro 45 million). The reduction in the Net operating working
capital was driven by the collection of the receivables relating to thewholesale business.
The Shareholders’ equity of the Group increased from Euro 2,320 million at
January 31, 2013, to Euro 2,468.1 million at April 30, 2013, essentiallybecause of the Group’s net income for the three months ended April 30,
2013, totaling Euro 138.2 million, and the positive impact of the translation
into Euro of the net assets denominated in foreign currencies. According to
IFRS, the dividend payable on the 2012 financial statements amounting toEuro 230.3 million approved by the Annual General Meeting of PRADA spa
held on May 23, 2013, was not included in these Condensed consolidated
financial statements as occurred after the reporting date.

Net financial position surplus/(deficit)(amounts in thousands of Euro)

as at
April 30
2013
unaudited

as atJanuary 31
2013
auditedLong-term debt
Obligations under finance leases(72,848)(472)(78,830)(518)

Long-term financial payables(73,320)(79,348)

Bank overdraft and short term loans
Payables to related parties
Receivables from related parties
Obligations under finance leases
Cash and cash equivalents(172,427)(5,202)
1,414(491)
610,542(175,570)(5,018)1,413(575)
571,746

Short-term net financial surplus/(deficit)

433,836

391,996

Net financial position surplus/(deficit)

360,516

312,648

The free cash flow for the three months ended April 30, 2013, amounted toEuro 38.8 million and resulted from the generation of cash from operations
for Euro 244.6 million and the utilization of funds for investing activities ofEuro 205.8 million. The surplus funds gained in the three months allowed torise further the positive net financial position to Euro 360.5 million, up by
47.9 million from Euro 312.6 million at January 31, 2013.

Analysis of capital expenditure
The capital expenditure in Property, plant and equipment and Intangible
assets for the three months ended April 30, 2013, was allocated to thestrengthening of the retail channel for Euro 160 million, to the production
and logistics activities for Euro 4 million and to the corporate area for Euro 14
million. In particular, the retail network development included the purchaseof a prestigious real estate in Old Bond Street, London, already operating as a
Prada brand DOS under a lease agreement.
20Outlook
The Group recorded another very positive quarter amid uncertain market
conditions, due to enduring macroeconomic volatility.
The Management will remain focused on the development of the Group’s
worldwide retail operations with a close attention to cost and working
capital management in order to preserve cash flow generation.

Corporate Governance Practices
Audit Committee
The Audit Committee, which comprises three independent non-executive
directors, on June 11, 2013, reviewed the unaudited consolidated results of
the Company and its subsidiaries for the three months ended April 30, 2013.

Compliance with the Corporate Governance Code of the Listing
Rules
The Board has reviewed the Company’s corporate governance practices andis satisfied that the Company has complied with the applicable codeprovisions set out in the Corporate Governance Code contained in Appendix
14 of the Listing Rules during the three months ended April 30, 2013.
Co

Purchase, Sale, or Redemption of the Company’s Listed
Securities
Neither the Company nor any of its subsidiaries has purchased, sold orredeemed any of the Company’s listed securities during the three months
ended April 30, 2013.

Publication of Announcement on consolidated results for thethree months ended April 30, 2013This announcement on the unaudited consolidated results for the threemonths ended April 30, 2013, is published on the Company’s website atwww.pradagroup.com and on the Hong Kong Exchanges and Clearing
Limited’s website at www.hkexnews.hk.

By Order of the Board
PRADA S.p.A.
Mr. Carlo Mazzi
Deputy Chairman
Milan (Italy), June 11, 201321

As at the date of this announcement, the Company’s executive directors are Ms.
Miuccia PRADA BIANCHI, Mr. Patrizio BERTELLI, Mr. Carlo MAZZI and Mr. Donatello
GALLI; the Company’s non-executive directors are Mr. Marco SALOMONI and Mr.
Gaetano MICCICHÈ and the Company’s independent non-executive directors are Mr.
Gian Franco Oliviero MATTEI, Mr. Giancarlo FORESTIERI and Mr. Sing Cheong LIU.

22