PRADA spa

PRESS RELEASEPRADA SPA APPROVES GROUP RESULTS TO 31 JULY 2017
Extensive Group restructuring continues
Positive results from Ready-to-Wear and high-end Leather Goods new collections
Rapid progress in digital transformation
Patrizio Bertelli: "We are in a phase of profound change; we are committed to growth but wewill always remain true to our identity"

Highlights
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Total net revenues of €1,469 million, down 5.5% on H1 2016o Very good performance in RTW for both Prada and Miu Miu
o Excellent results in all markets for the new Leather Goods collections – work
continues to widen the offer at all price ranges
o Reduced use of markdown saleso Positive business results in both eyewear and fragranceso Considerable headway in the implementation of the digital strategy: the ecommerce retail sales channel is growing while collaboration with strategic e-tailer
partners is widened
Gross Margin growing thanks to the substantial reduction in markdown sales
Cost structure under control despite major investments in digital and communications
EBITDA of €279.6 million at 19.1% of net revenues (21.2% in the first half of 2016)
EBIT of €166.8 million at 11.4% of net revenues (13.8% in the first half of 2016)
Net Income of €116 million at 7.9% of net revenues (9.1% in the first half of 2016)
Strong operating cash flow generation of €208 million (from €267 million in H1 2016) andnet working capital in line with 2016 levels

Patrizio Bertelli, CEO“The complex task of restructuring our operating processes, which is aimed at providing the Group
with the tools needed to access an increasingly competitive market, is progressing well; however,more remains to be done.
Having one of the best known and most respected international brands, with undisputed leadership indesign and innovation, means we have to make choices in the pursuit of growth that privilege thepreservation of the cultural and stylistic fundamentals that our brand identity is based on.
The positive trends in Ready-to-Wear, which has been growing over many seasons, are confirmed aswell as in the new products in the Leather goods segment which have had an excellent reception in allmarkets. We remain committed to creating a balanced offer in terms of price ranges.
Our digital transformation continues apace, enhanced by the launch of e-commerce in all markets,including China. Meanwhile our dedicated team has expanded significantly to complete the digitalpresence of Group brands and to pursue the important aim of offering a seamless online and off-line
shopping experience.
The extensive overhaul of Prada Group’s cost structure creates operating leverage that will allow
Group profits to benefit rapidly from revenue growth. In the meantime, we will continue to protect cash
generation by keeping Net Working Capital and investments under control.
We are confident that our action plan is the best way to return to steady growth in revenues andmargins, albeit aware that benefits may take longer than expected. Our cash flow and Balance Sheetremain solid, allowing us to focus on value creation for shareholders over a broad time horizon."

Results for First Half 2017
Milan, 8 September 2017 The Board of Directors of Prada S.p.A meeting on the above date, has
examined and approved the consolidated financial results for the six month period to July 31st, 2017.
Net revenues - Revenues in the period totalled €1,469 million, a decline of 5.5% (5.7% at constantFX) compared to the same period in 2016
Geographical breakdown:Asia Pacific bucked the trend with revenues in line with H1 2016, up 0.4% (down 0.6% atconstant FX). Greater China delivered a positive performance, with sales up 5.2% atconstant exchange rate and growth also seen across Macau and Hong KongThe Americas market contained the decline compared with 2016, with sales down just 3.7%
(down 5.8% at constant FX). A positive performance for the period was seen in both Mexicoand CanadaThe European market was down 7.7% (down 6.6% at constant FX), penalised by the strengthof the euro, especially in the second quarter, as well as the stabilization of the UK marketMarket conditions in Japan remained unchanged, with sales declining by 14.2% at current
and constant exchange rates, highlighting weak consumption by both domestic customers
and tourists

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The Middle East registered a negative trend down 11.7% (down 13.1% at constant FX), due
to ongoing geopolitical tension which impacted tourist flows within the region

Economic and financial results – The cost review program, launched last year and applied to all
operating processes, has continued to deliver concrete results, despite the increased costs insupport of the digital and communications strategy.
Gross Margin has grown to 74.1% (from 72.2% in the previous six months) and benefits from
improved quality of sales, supported by reduction in markdown sales
The sales network optimization plan continued: the Group opened 6 sales outlets and closed 13,
during the period. As of July 31, 2017, the group's retail network consisted of 613 DOS

EBITDA amounted to €279.6 million, representing a margin of 19.1% of sales (21.2% for H1 2016)
EBIT of €166.8 million, representing a margin of 11.4% (13.8% for H1 2016)
Net income of €116 million, representing 7.9% of consolidated revenues (9.1% in 2016)
The Group generated strong operating cash flow of €208 million (from €267 million in H1 2016)
during the period. Net working capital remains unchanged compared to FY levels, despite a slightincrease in inventory, ready for more efficient restocking of retail inventory.
Investments for the period amounted to €105.6 million and were allocated both to enhancing theretail network, where the Group has completed 100 projects aimed at bringing the image of thestores in-line with new design concepts, and to the strengthening of the supply chain to further
develop the Group's industrial and logistics capabilities.
Net Financial Position at 31st July 2017 was negative at €223 million following the payment ofdividends amounting €307 million.
For further information, please contact:
Prada Press Office+39.02.541921
ufficio.stampa@prada.com

PRADA Group
The PRADA Group (HKSE Code: 1913) is a world leader in the luxury goods sector where it operates
with the Prada, Miu Miu, Church’s and Car Shoe brands in the production and distribution of luxury
handbags, leather goods, footwear, apparel and accessories. In 2014, Prada acquired 80% ofMarchesi srl, owner of the historic Milanese patisserie founded in 1824. The Group also operates,under licensing agreements, in the eyewear and fragrance sectors. Its products are sold in 70
countries worldwide through a network that includes 613 directly operated stores (DOS) (as at July31st, 2017) and a select network of luxury department stores, independent retailers and franchisestores.