MODERN SLAVERY ACT 2015
PRADA GROUP STATEMENT- 2016 financial period INTRODUCTION
This document was approved by the Board of Directors of PRADA spa on June 29, 2017 anddescribes the measures taken by the Prada Group to ensure the absence of any form ofslavery, forced labor and human trafficking within its organization and outside along its
own supply chain as required by the UK “Modern Slavery Act 2015”. The content of thisstatement refers to the fiscal year ended January 31, 2017.

THE PRADA GROUP
The Prada Group operates in the luxury goods industry with the Prada, Miu Miu, Church’sand Car Shoe brands in the design, production and distribution of luxury handbags, leather
goods, footwear, apparel and accessories. The Group also operates in the eyewear andfragrance industries under specific licensing agreements and, with the recent acquisition(2014) of Pasticceria Marchesi 1824, has made its entry into the food sector. As of January
31, 2017, the Group’s products are sold in 70 countries around the world through 620 directly
operated stores and a select network of luxury department stores, independent retailers,
franchise stores and on-line distributors (e-tailers).
Prada spa, the parent company, is a joint-stock company, registered and domiciled inItaly. At the date of this report, 80% of the share capital is owned by PRADA Holding spa, acompany domiciled in Italy, while the remaining shares are floating on the Main Board of
the Hong Kong Stock Exchange.

THE SUPPLY CHAIN
The Group’s business model is based on a value chain that combines production process
technologies with artisanal skills.
The production of the Group is entrusted to 18 manufacturing facilities located in Europe(15 of them in Italy) and to a network of external producers carefully selected for theircraftsmanship, quality and reliability. All stages of the production process are directly
managed and controlled: from the choice to purchasing materials, even for external
suppliers, to the coordination of internal and external production. This integration between
the manufacturing cycle phases enables the Group to translate its innovative fashionconcepts into commercial products while maintaining productive flexibility and technicalcontrol over know-how as well as quality and ethical standards throughout the supply chain.
In recent years, the Group has made important investments to strengthen the industrial
division and the control over the value chain. This was achieved by internalizing a
number of production processes, particularly the more technically complex ones, throughthe realization of new production sites and the acquisition of manufacturing companies
formerly suppliers of the Group. These investments, that have increased the volume of thework operated internally, have expanded for more than 400 units the industrial division(from 2,114 units in 2015 to 2,544 in 2016), extending to the new workforce the high quality
standards that the Group assures to its employees.
In 2016, the Group collaborated with about 9001 raw materials and semi-manufactured
products suppliers. About 49% of them have worked with Prada for more than 10 years
and over 80% are Italian suppliers; the percentage rises to about 90% if the European Union
area is considered. The remaining part is mainly represented by Asian suppliers and outof these, the two main ones are international operators, also listed on the Hong Kong
Stock Exchange, with whom the Group has been working since about 10 years. A key partof the strategy is to establish long-term relationships with suppliers in order to develop arelationship of mutual trust and transparency.
The supply chain of the Prada Group is completed with operators not related to theproduction cycle, among which – quoted for materiality - the suppliers of commercial
spaces, logistic services, media spaces, and services providers located in the countries inwhich the Group operates with its retail activities.
The Prada Group believes that the risk of modern slavery within its organization isalmost non-existent, while it deemed that same risk as overall low along its industrial
supply chain. The geographic location of the suppliers selected by the Group, as well as
the profound knowledge of the same in term of duration and quality of the establishedpartnerships, reduces the risk of preconditions that could lead to modern slavery, forcedlabor and human trafficking.

1 To the end of this analysis, only suppliers that worked with the Group in 2016 totaling transactions higher than Euro 30 thousand weretaken into account. Taken together, these suppliers totaled more than 98% of the value of raw materials and external manufacturingservices purchased by the Group in the year

POLICIES AND ETHICAL PRINCIPLES
The Board of Directors considers respect for ethical principles to be the foundation of theenterprise’s success and represents an important expression of its image and reputation.
The Prada Group believes and act in:-compliance with legislative and regulatory provisions in all countries
in which it operates;-

legitimacy, loyalty, correctness and transparency;-

respect of the privacy;-

respect for the value of the person and our human resources;-

respect for competition, as a crucial instrument in the development of theeconomic system;-

respect for the environment and raising awareness about its protection.

Since 2007, these principles have been given formal expression in the PRADA Group’s Codeof Ethics. The Code sets out the guiding principles of the organization, being one of themain pillars of the Group’s governance model, and is also supported by a set of proceduresin order to turn these values into daily actions. The adoption and application of the Code ofEthics is essential for the achievement of the Company’s primary objective, consisting in thecreation of value for shareholders, employees, customers and for the community as a whole.
The Code of Ethics is promoted internally through the publication of the document on thecorporate intranet, by its distribution to the new collaborators as well as being the base ofbusiness relationships with all suppliers.

RISK ASSESSMENT AND DUE DILIGENCE
In the last years the Prada Group placed particular focus on the identification andevaluation of the enterprise risks, as well as on the improvement of a system of procedures
aimed at mitigating and managing the risks consistently with Group’s objectives.
Within this framework, the Company identified the main risks related to its supply chain,including the working conditions of suppliers’ employees. To mitigate this risk, in 2016
the Group started to renew the “Group’s qualified vendor list” procedure to redefine theresponsibilities and operational behaviors required to evaluate ethical, technical andeconomic reliability. Moreover, further controls to start and continue a supply relationshipare also set out by the procurement policy as risks of non-compliance are mitigatedthrough additional checks and assumptions of responsibility.

Specifically for ethical issues, the accreditation and maintenance of a supplier’s
qualification is based on the collection of documents, attestations and self-certifications
that ensure compliance with the law on remuneration, social security, taxation, health andsafety, environment, privacy and governance model. Finally, the subscription to the Codeof Ethics is a fundamental prerequisite for working with Prada.
This information is subject to periodic updates and systematic checks to ensure veracity
and consistency. Such controls, operated by purchasing structures or business areas
focused on various topics are made on a sample basis or when a problem is encountered.
The procedure may include further inquiries in case of lack of self-certification ofcompliance with labour, safety in the workplace and social security contribution laws.
These types of controls are coupled with visits by industrial divisions to suppliers (almost
daily for the most important ones) that, in addition of ensuring compliance with technicaland commercial agreements, provide further comfort regarding working conditions.
In the case of non-compliance which can be remedied, the supplier may be temporarilysuspended, while for more serious cases of non-compliance with ethical, technical andeconomic requirements, contract resolution might be immediate.

OUTLOOK
The Prada Group, aware of the growing focus on human rights issues throughout thesupply chain, is convinced of the need to constantly update the assessment of this risk tohandle any potential changes in its suppliers.

Milan (Italy), June 29, 2017

By Order of the Board

PRADA S.p.A.
Mr. Carlo Mazzi
Chairman