Hong Kong Exchange 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.

Via A. Fogazzaro n. 28, Milan, Italy
Registry of Companies of Milan, Italy: No. 10115350158(Incorporated under the laws of Italy as a joint-stock company)(Stock Code: 1913)

ANNOUNCEMENT
OF THE CONSOLIDATED RESULTS FOR THE THREE
MONTHS ENDED APRIL 30, 2012

- Group’s net revenues were Euro 686.7 million, up by 47.9% comparedwith the three months ended April 30, 2011
- Retail net sales were Euro 569.7 million, up by 49.0% compared withthe three months ended April 30, 2011
- the number of Directly Operated Stores (DOS) reached 395- Retail Same Store Sales Growth was 19% compared with the threemonths ended April 30, 2011
- EBITDA was Euro 200.1 million (representing a margin of 29.1% on net
revenues), up by 77.2% compared with the three months ended April
30, 2011- Group’s net income amounted Euro 121.7 million, up by 111.0%
compared to Euro 57.7 million for the three months ended April 30,
2011- Positive net financial position at Euro 122.4 million as at April 30,
2012- Net operating cash flow for the three months ended April 30, 2012,
was Euro 180.8 million

Consolidated results for the three months ended April
30, 2012
The Board of Directors (the “Board”) of PRADA S.p.A. (the “Company”) is
pleased to announce the unaudited Consolidated results of the Company andits subsidiaries (collectively, the “Group”) for the three months ended April
30, 2012, together with the comparative figures for the three months endedApril 30, 2011.
1

Key financial information
threemonthsended
April 30
2011
unaudited

twelvemonthsended
January
31, 2012
auditedthree
monthsended
April 30
2012
unaudited% changeon
April 30
2011

464,292
112,944
80,13478,07857,6750.02
7,566

2,555,606
759,252
628,935
602,908
431,9290.17
8,067

686,734
200,097
164,782
166,242
121,718
0.05
8,843

47.9%
77.2%
105.6%
112.9%
111.0%
104.3%
16.9%

24.3%
17.3%

29.7%
24.6%

29.1%
24.0%

Key Statement of financial position
information(amounts in thousands of Euro)

April 30
2011
unaudited

January 31
2012
auditedApril 30
2012
unaudited% changeon
January 31
2012

Non-current assets
Net operating working capital
Net invested capital
Net financial position third parties
surplus/(deficit)
Shareholders’ equity – Group
Capital expenditure of the period
Net operating cash flows of the period

1,583,477
288,840
1,589,760

1,826,065
357,648
1,817,327

1,849,455
337,628
1,839,229

1.3%
-5.6%
1.2%

Key Income statement information(amounts in thousands of Euro)Net revenues
EBITDAEBIT
Income before tax
Net income of the Group
Earning per share
Average headcount (persons)
EBITDA %EBIT %(375,827)

15,804122,422674.6%

1,209,324
45,176
98,793

1,822,743
278,856
479,954

1,948,993
55,250180,797

6.9%

Highlights for the three months ended April 30, 2012
In the three months ended April 30, 2012, PRADA Group recorded net
revenues of Euro 686.7 million. The increase over Euro 464.3 million posted in
the three months ended April 30, 2011, was 47.9%.
This remarkable performance was achieved thanks to the contribution of both
the retail channel, which gained a 49% growth compared with the threemonths ended April 30, 2011, and the wholesale channel, which also scored a
41.5% increase. In terms of geography, all regions contributed to theexcellent sales performance with double digit paces of increase.
EBITDA for the three months ended April 30, 2012, totaled Euro 200.1 million,
a 77.2% increase over the same period of 2011. In terms of margin, EBITDA
raised to 29.1% of net revenues from 24.3% recorded in the three months
ended April 30, 2011, highlighting an important positive operation leverage.
Group’s net income for the three months ended April 30, 2012, amounted toEuro 121.7 million, or 17.7% on net revenues, resulting in a 111% increaseover the same period of 2011.
The strong free cash flows generated in the three months ended April 30,
2012, allowed the Group to strengthen further its positive net financial
position which stood at Euro 122.4 million at the reporting date.

2

Consolidated Income Statement for the three months endedApril 30, 2012%

three
monthsended
April 30
2011
unaudited%

686,734(190,308)

100.0%-27.7%

464,292(123,096)

100.0%-26.5%

496,42672.3%

341,19673.5%(331,644)-48.3%(261,062)-56.2%

164,782

24.0%

80,134

17.3%

1,460

0.2%

(2,056)-0.4%

166,24224.2%

78,07816.8%(42,956)-6.3%(19,558)-4.2%

123,286

18.0%

58,520

12.6%

-

-

-

-

123,286

18.0%

58,520

12.6%

1,568

0.2%

845

0.2%

1,568

0.2%

845

0.2%

121,718

17.7%

57,675

12.4%

121,718

17.7%

57,675

12.4%

Depreciation, amortization andimpairment

35,315

5.1%

32,810

7.1%

EBITDA

200,09729.1%

112,944

24.3%(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

5Income before taxes
Taxation

6

Net income for the year from continuing
operations
Net income for the year from discontinued
operations
Net income for the year
Net income from continuing operations– Non-controlling interests
Net income – Non-controlling interests
Net income from continuing operations– Group
Net income - Group

Basic and diluted earnings per share (inEuro per share)

7

three
monthsended
April 30
2012
unaudited

0.05

3

0.02

Consolidated Statement of financial position for the threemonths ended April 30, 2012
Note

April 30
2012
unaudited

January 31
2012
audited98472,785
233,087
372,4652,139

362,284
266,404
374,782894

10

15,557

12,864

12

113,981
1,210,014

100,275
1,117,503

11
11733,577
860,963
18,354
178,287
58,274
1,849,455

713,870863,526
15,631
175,736
57,302
1,826,065

3,059,469

2,943,568

158,561
5,464
267,924
143,7746,993
1,193
101,888685,797

165,485
4,361
283,538
117,770
15,2001,453
128,777
716,584

189,640969
37,015
55,10150,25381,390559
414,927

178,442
1,100
35,89856,92147,66575,656335
396,017

Total Liabilities

1,100,724

1,112,601

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

255,882
1,588,246(16,853)
121,718
1,948,993

255,882
1,152,171(17,239)431,929
1,822,743

9,752

8,224

Total Liabilities and Shareholders’ equity

3,059,469

2,943,568

Net current assets
Total assets less current liabilities

524,217
2,373,672

400,9192,226,984(amounts in thousands of Euro)
AssetsCurrent assets
Cash and cash equivalents
Trade receivables, net
Inventories
Derivative financial instruments - current
Receivables from and prepayments to parent
company and 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
Total non-current assets

18
13

Total Assets
Liabilities and Shareholders’ equity
Current liabilities
Bank overdrafts and short-term loans
Payables to parent company and related parties
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
Provisions for contingencies and commitments
Deferred tax liabilities
Other non-current liabilities
Derivative financial instruments non-current
Total non-current liabilities

14
15

16

17
18

Shareholders’ equity – Non-controlling interests

4Statement of changes in the Group’s equity(amounts in thousands of Euro, except for number of shares)(amounts inthousands of Euro)

Number ofsharesShare
CapitalSharepremium Translation
reserve
reserve

Other
reserves

Net
profitShareholders’Equity Group

Balance atFebruary 1, 2011

250,000,000

250,000

209,298(40,012)534,245

250,819

1,204,350

-

-

-

-

250,819 (250,819)-

2,500,000,000

-

-

-

-

-

-

58,824,000
-

5,882
-

200,749--(35,000)-

206,631(35,000)---

22,773(7,940)431,929446,7622,558,824,000

255,882

410,047(17,239)

742,124

431,929

1,822,743

-

-

-

-

431,929 (431,929)

-

-

-

-

386

4,146

121,718

126,250

2,558,824,000

255,882

410,047(16,853)

1,178,199

121,718

1,948,993

Allocation of 2010 net
profitConversion of sharesfrom Euro 1.0 toEuro 0.1
Issue of new shares
Dividends
Comprehensive
income for the year
Balance atJanuary 31, 2012
Allocation of 2011 net
profitComprehensive
income for the year
Balance atApril 30, 2012

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

Statement of consolidated comprehensive income
three months
ended
April 30
2012
unaudited

three months
ended
April 30
2011
unaudited

123,286

58,520345
345(29,023)(29,023)

Change in Cash Flow Hedge reserve
Tax impact
Change in Cash Flow Hedge reserve less tax impact

2,897
(793)
2,104

15,212(4,121)
11,091

Change in Fair Value reserve
Tax impact

2,723
(681)

-

Change in Fair Value reserve less tax impact

2,042

-

127,777

40,5881,527

613

126,250

39,975(amounts in thousands of Euro)Net income for the period – Consolidated
Change in Translation reserve
Tax impact
Change in Translation reserve less tax impact

Consolidated comprehensive net income for the period
Comprehensive net income for the period – Noncontrolling interests
Comprehensive net income for the period - GroupNet invested capital
The following table contains the Statement of financial position adjusted inorder to provide a better picture of the composition of Net invested capital.
(amounts in thousands of Euro)

April 30
2012
unaudited

January 31
2012
auditedNon-current assets
Current assets excluding items of financial position
Current liabilities excluding items of financial position
Net working capital
Long-term liabilities, including deferred taxation
Post-employment benefits
Provisions for risks
Net invested capital
Shareholders’ equity – Group
Shareholders’ equity – Non controlling interests
Total consolidated shareholders’ equity
Long term financial payables
Short term financial payables, net of cash and cash equivalents
Net financial position deficit/(surplus)
Shareholders’ equity and net financial position

1,849,455
735,818
521,726
214,092
132,20237,015
55,101
1,839,229
1,948,993
9,752
1,958,745
190,609(310,125)(119,516)
1,839,229

1,826,065
753,809546,072
207,737
123,656
35,89856,921
1,817,327
1,822,743
8,224
1,830,967
179,542(193,182)(13,640)
1,817,327

6

Net Operating Working Capital(amounts in thousands of Euro)

April 30
2012
unaudited

January 31
2012
audited

Trade receivables, net
Inventories, net
Trade payables

233,087
372,465(267,924)

266,404
374,782(283,538)

Total

337,628

357,648(amounts in thousands of Euro)

April 30
2012
unaudited

January 31
2012
auditedLong term debt
Obligations under finance leases(189,640)(969)(178,442)(1,100)Long term financial payables(190,609)(179,542)

Short term financial payables and bank overdrafts
Financial payables to related parties
Financial receivables from related parties
Obligations under finance leases
Payables to other shareholders
Cash and cash equivalents(158,561)(4,317)
1,411(1,193)472,785(165,485)(3,574)
1,410(1,453)362,284

Short term net financial receivables/(payables),net of cash and cash equivalents

310,125

193,182

Net financial position surplus/(deficit)

119,516

13,640Net financial position surplus/(deficit), third parties(i.e. excluding receivables and payables with related parties)

122,422

15,804

n.a.

29.17

Net financial position

EBITDA/ net financial charges ratio

Summarized Statement of consolidated cash flows
three months
ended
April 30
2012
unaudited

three months
ended
April 30
2011
unaudited

Net cash flows from operating activities

180,797

98,793

Cash flows generated (utilized) by investing activities(76,507)(61,368)

Cash flows generated (utilized) by financing activities

15,634(32,714)

Change in cash and cash equivalents, net of bank overdrafts

119,924

4,711(amounts in thousands of Euro)

7

Notes to the consolidated results for the three months
ended April 30, 20121.

Presentation of PRADA GroupPRADA Group is a world leader in the design, production and distribution ofluxury handbags, leather goods, footwear, apparel, accessories, eyewear,
fragrances. Through its Directly-Operated–Stores network (DOS) and a selectnumber of wholesalers, the Group operates on all major international
markets.
The Company is a joint-stock company, incorporated and domiciled in Italy.
Its registered office is in via Fogazzaro 28, Milan, Italy.

2.

Basis of preparation

The Notes to the consolidated results for the three months ended April 30,
2012 refer to the Group of companies controlled by PRADA spa (the"Company"), holding company of the PRADA Group (the "Group") and are
based on the consolidated results of the Group at April 30, 2012. The
financial information at April 30, 2012 was prepared on a consistent basiswith respect to the Consolidated financial statements of the PRADA Group at
January 31, 2012 while the financial information at April 30, 2011 was
prepared on a consistent basis with respect to the Consolidated financial
statements of the PRADA Group at January 31, 2011. Both Consolidated
financial statements at January 31, 2011 and at January 31, 2012 wereprepared in accordance with the International Financial Reporting Standards(“IFRS”), issued by the International Accounting Standard Board (“IASB”) as
adopted by the European Union, applicable at the time such statements wereprepared.
No significant changes occurred between the IFRS applicable to the PRADA
for the periods under comparison.
The IFRS adopted by the European Union are similar, as applicable to the
PRADA Group, to those issued by the IASB.
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”).
The Group has prepared the Consolidated statement of financial position
classifying separately current and non-current assets and liabilities.
The Consolidated income statement is presented by destination.
The Consolidated financial statements have been prepared on a going
concern basis and are presented in Euro, which is the functional currency of
the Company.

8

3.

Net revenues analysis

Net revenues analysis for the three months period ended April
30, 2012
three months
ended
April 30
2012
unaudited

three months
ended%
April 30
2011 change
unaudited

Net sales by geographical area
Italy
EuropeAmericas
Asia PacificJapan
Other countries
Total

110,065 16.3%
148,018 22.0%
86,460 12.8%
252,772 37.6%
70,664 10.5%
5,298
0.8%
673,277 100.0%

71,633 15.7% 53.7%
94,370 20.7% 56.8%
64,485 14.2% 34.1%
172,022 37.8% 46.9%
50,933 11.2% 38.7%
2,060
0.4% 157.2%
455,503 100.0% 47.8%

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

541,539 80.4%
107,338 15.9%
16,304
2.4%
6,301
0.9%
1,795
0.4%
673,277 100.0%

353,379 77.6% 53.2%
82,054 18.0% 30.8%
13,663
3.0% 19.3%
4,378
1.0% 43.9%
2,029
0.4% -11.5%
455,503 100.0% 47.8%

Net sales by product line
Clothing
Leather goods
Footwear
Other
Total

113,837 16.9%
417,256 62.0%
134,694 20.0%
7,490
1.1%
673,277 100.0%

87,769 19.3%
263,698 57.9%
98,788 21.7%
5,248
1.1%
455,503 100.0%

29.7%
58.2%
36.3%
42.7%
47.8%

569,652

84.6%

382,271

83.9%

49.0%

103,625

15.4%

73,232

16.1%

41.5%

673,277 100.0%

455,503 100.0%

47.8%

673,277 98.0%
13,4572.0%
686,734 100.0%

455,503 98.1%
8,789
1.9%
464,292 100.0%

47.8%
53.1%
47.9%

(amounts in thousands of Euro)Net sales by distribution channelDOS
Independent customers, franchises and relatedparties
Total
Net sales
Royalties
Total net revenues

9Number of stores
April 30
2012
DOS
franchises

January 31
2012
DOS
franchises

April 30
2011
DOS
franchises

Prada
Miu Miu
Church’s
Car Shoe

251
95
43
6

19
6
-

245
94
43
6

20
6
-

212
77
36
5

25
6
-

Total

395

25

388

26

330

31

April 30
2012
DOS
franchises

January 31
2012
DOS
franchises

April 30
2011
DOS
franchises

ItalyEuropeAmericas
Asia PacificJapan
Middle East

45
119
49
116
64
2

5
6
14
-

44
115
47
115
65
2

5
6
1
14
-

38
90
39
105
58
-

5
13
13
-

Total

395

25

388

26

330

31

4.

Operating expenses
three months
ended
April 30
2012
unaudited% on netrevenues

three months
ended
April 30
2011
unaudited% on netrevenues

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

25,36635,290228,105
42,883

3.7%
5.1%
33.2%
6.2%

21,41630,367
171,331
37,948

4.6%
6.5%
36.9%
8.2%

Total

331,64448.3%

261,062

56.2%(amounts in thousands of Euro)

10

5.

Interest and other financial expenses, net
three months
ended
April 30
2012
unaudited

three months
ended
April 30
2011
unaudited

Interests expenses on borrowings
Interest income
Exchange gains /(losses) – realized
Exchange gains/(losses) – unrealized
Other financial income/(expenses)(2,498)
1,155
3,318
411
(926)

(4,217)
266
1,321
1,413
(839)

Total

1,460

(2,056)three months
ended
April 30
2012
unaudited

three months
ended
April 30
2011
unaudited

Current taxation
Deferred taxation

45,730(2,774)

19,432
126

Income taxes

42,956

19,558(amounts in thousands of Euro)

6.

Taxation(amounts in thousands of Euro)

7.

Dividends and earnings per share

Dividends per share
After the reporting period, the Annual General Meeting held in Hong Kong on
May 22, 2012, approved the payment for the year ended January 31, 2012, ofa final dividend of Euro 5/cents per share for a total amount of Euro 127.9
million.
During the period ended April 31, 2011, the Company distributed dividends ofEuro 35 million as approved by the Shareholders’ Meeting held on March 28,
2011 to approve the Financial Statements for the year ended January 31,
2011. Some Euro 32.5 million of the dividend liability arising was offset
against receivables due from the parent company PRADA Holding bv while theremaining amount was paid in April 2011.

11

Earnings per share(amounts in thousands of Euro)

three months
ended
April 30
2012
unaudited

three months
ended
April 30
2011
unauditedGroup net income in Euro
Weighted average number of ordinary shares in issue

121,718,180
2,558,824,000

57,675,234
2,500,000,000

0.05

0.02

Earnings per share in Euro, calculated on weighted
average number of shares

On May 26, 2011, a Shareholders’ Meeting of PRADA spa resolved to change
the par value of the Company’s shares from Euro 1 to Euro 0.1 each. For the
purposes of calculation the earnings per share in accordance with IAS33 thenumber of shares in issue in 2010 was retrospectively adjusted.

8.

Inventories(amounts in thousands of Euro)

Raw materials
Work in progress
Finished products
Allowance for obsolete and slow moving
inventories
Total

April 30
2012
unaudited

January 31
2012
audited81,635
21,163
340,283

66,575
17,187360,379(70,616)(69,359)

372,465374,782

Inventories were almost unchanged compared to January 31, 2012. The
increase of raw materials is in line with the needs of the production cycles
typical of this time of the year.

9.

Trade receivables, net

Trade receivables are detailed as follows:
April 30
2012
unaudited

January 31
2012
audited

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

225,857
18,832(11,602)259,258
18,827(11,681)

Total

233,087

266,404(amounts in thousands of Euro)

The decrease in trade receivables is mainly due to the collection of thewholesale deliveries.

1210. Receivables from and prepayments to parent company
and related parties
Receivables from parent companies and related companies are detailed
below:(amounts in thousands of Euro)

April 30
2012
unaudited

January 31
2012
audited

1,411
692
1,445

1,410
654
1,646

Financial receivables – other related parties
Other receivables – PRADA Holding bv
Other receivables – other related parties
Other receivables – other companies controlled by
PRADA Holding bv
Prepayments – other related companies

157

154

11,852

9,000

Total

15,557

12,864

11. Capital expenditure
Changes in the net book value of Property, plant and equipment in the period
ended April 30, 2012, are as follows:
Production Leasehold
Furniture
plant and
improve& fittingsmachineryments(amounts inthousands of Euro)Land andbuildings

Balance at January
31, 2012 (audited)

183,084

15,476304,324

88,38439,982

82,620713,870

10,375(1,460)(4)

1,474(1,702)-

17,639(18,804)-

5,099(5,560)(3)887(1,613)(3)

18,210-53,684(29,139)
(10)

55

24

(3,125)

(179)

(43)

(679)

(3,947)

2,544
-

-

20,089
(57)

3,368
(120)

167
-

(26,848)
(24)

(680)
(201)

194,594

15,272320,066

90,98939,37773,279733,577

Additions
Depreciation
Disposals
Exchangedifferences
Other movements
Impairment
Balance at April 30,
2012 (unaudited)

13

Other Assets under
tangible construction

Total net
book value

Changes in the net book value of Intangible assets in the period ended April
30, 2012 are as follows:(amounts inthousands of Euro)

Trademarks

Goodwill

Balance at January
31, 2012 (audited)

303,308504,220

42,674

8,578

3,270

1,476

863,52651(2,743)--(2,014)
-

346
(755)
-

(462)
-

1,169
-

1,566
(5,974)
-

1,552

249

100

(15)

-

-

1,886

-

-

(28)
-

79
-

-

(92)
-

(41)
-

302,168

504,469

40,732

8,233

2,808

2,553

860,963

Additions
Amortization
Disposals
Exchangedifferences
Other movements
Impairment
Balance at April 30,
2012 (unaudited)

Store Lease
Development Assets in
SoftwareAcquisitions
costs progress

Total net
book value

12. Other current assets
Other current assets are detailed as follows:
April 30
2012
unaudited

January 31
2012
auditedVAT
Income tax and other tax receivables
Other assets
Prepayments and accrued income
Deposits

35,887
5,151
20,802
49,071
3,070

37,372
6,597
15,33739,049
1,920

Total

113,981

100,275

April 30
2012
unaudited

January 31
2012
auditedGuarantee deposits
Deferred rental income
Other receivables

50,6842,573
5,017

49,526
2,893
4,883

Total

58,27457,302(amounts in thousands of Euro)

13. Other non-current assets
Other non-current assets are detailed as follows:(amounts in thousands of Euro)14

14. Payables to parent companies and related parties
Payables to parent companies and related parties are detailed as follows:
April 30
2012
unaudited

January 31
2012
auditedFinancial payables – other related parties
Other payables – PRADA Holding bv
Other payables – other related parties
Other payables – other companies controlled by
PRADA Holding bv

4,317
8
883

3,574
528

256

259

Total

5,464

4,361

(amounts in thousands of Euro)

April 30
2012
unaudited

January 31
2012
audited

Trade payables – third parties
Trade payables – related parties

264,939
2,985

280,808
2,730

Total

267,924

283,538

April 30
2012
unaudited

January 31
2012
auditedPayables for capital expenditure
Accrued expenses and deferred income
Other payables

31,022
14,04856,81857,844
12,94457,989Total

101,888

128,777(amounts in thousands of Euro)

15. Trade payables
Trade payables are detailed as follows:

16. Other current liabilities
Other current liabilities are detailed as follows:(amounts in thousands of Euro)15

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

Provision fortax disputes

Other
provisions

Total

Balance at January 31, 2012
(audited)

1,618

37,335

17,96856,921

Exchange differences
Reversals
Uses
Increases

(520)
-

(681)
(181)
(43)
355

(313)
(507)
70

(994)
(181)
(1,070)425

Balance at April 30, 2012
(unaudited)

1,098

36,785

17,21855,101(amounts in thousands of Euro)

Provisions for risks and charges represent the Directors’ best estimate of
maximum contingent liabilities. No significant events have occurred since
January 31, 2012, that resulted in changes in estimates.

18. Deferred tax assets and liabilities
Deferred tax assets and liabilities are detailed by nature as follows:
April 30
2012
unaudited
DeferredDeferredtax
tax
assetsliabilities(amounts in thousands of Euro)

January 31
2012
auditedDeferred Deferredtax
tax
assets liabilities

Inventories
Receivables and other assets
Useful life of non-current assets
Deferred taxes due to acquisitions
Provision for risks / accrued expenses
Non deductible / taxable charges / income
Tax loss carried forward
Derivative financial instruments
Long term employee benefits
Other

81,648545
63,511
14,155
4,213
6,802
759
6,498
156

1,590
14,314
28,690
1,988
783
2,046
842

86,126
1,103
58,695
12,928
3,566
4,788
1,552
6,674
304

1,575
14,03228,556
267
535
2,015
685

Total

178,287

50,253

175,736

47,66516

Management Discussion and Analysis for the threemonths ended April 30, 2012
Net revenues
Group’s net revenues for the three months ended April 30, 2012, totaled
Euro 686.7 million, a rise of 47.9% over Euro 464.3 million recorded in thethree months ended April 30, 2011. At constant exchange rates revenues
increased by 41.5%.

Distribution channels
In the first quarter of 2012 Group’s net sales generated by the retail channel
amounted to Euro 569.7 million performing an increase of 49% compared to
the first quarter of 2011. At constant exchange rate the increase was 41.7%
while at Same Store Sales Growth (SSSG)1 was 19%.
A net of 65 shops have been opened since April 30, 2011, out of which 7 (8openings and 1 closing) in the first three months of 2012. Among these it isworth mentioning the opening of Prada Stoleshnikov in Moscow, the largest
ever operating in terms of square meters in Russia, and the first 2 stores inSouth and Central America, one in Sao Paolo, Brazil, and one in Mexico City.
Furthermore, the unveil of the restored Prada flagship store in Old Bondstreet in London, that was not counted among new openings, represented an
important sign of the Group’s strategy of preserving the appeal and glamourof its retail chain.
Wholesale channel achieved an increase of 41.5% over the three months
ended April 30, 2011, totaling net sales for Euro 103.6 million. At constantexchange rate the growth was 39.4%. This channel partially benefited from ashift in deliveries occurred at the end of the last financial year, whenparticular adverse weather conditions and an unexpected strike intransportation in Italy caused some shipment delays.

Markets
European market achieved the best performance reaching a 56.8% increase
compared to the three months ended April 30, 2011, and contributing 22% toGroup’s net sales with Euro 148.0 million. At constant exchange rate theincrease was 55%. Retail channel, boosted by travellers, scored a 61.7%
increase thanks to the brilliant 31% SSSG and thanks to 29 new Directly
Operated Stores (DOS) opened since April 30, 2011. Wholesale also
performed well, increasing by 40.7% over the three months ended April 30,
2011.
Italy, totaling Euro 110.1 million, performed similarly with an overall 53.7%
brilliant net sales expansion compared to the three months ended April 30,
2011. Retail channel increased by 48.7%, with a 17% SSSG and a net of 7 new
DOS since April 30, 2011. Deliveries to independent customers, partiallybenefitting from the shipment delay occurred at the end of the 2011 year,
1

The expression “Same Store Sales Growth” replaces the expression “Like-For-Like” even if no changes occurred
into the calculation criteria. The formula still compares same operating stores at constant exchange rates.

17

increased by 62.5%.
The Asia Pacific market confirmed the remarkable trends highlighted inrecent years posting a 46.9% increase compared to the three months endedApril 30, 2011. In this first quarter the region contributed with Euro 252.8
million, or 37.6% to Group’s net sales. At constant exchange rates theincrease was 37.1% while 22% was the SSSG. A net of 11 new DOS have been
opened since April 30, 2011 in this market. The Greater China growth (PRC,
Hong Kong and Macau) was in line with the entire region performance scoring
a 24% SSSG compared to the three months ended April 30, 2011 (53.7% theincrease as reported and 42.1% at constant exchange rates). Net sales in thearea were Euro 161.6 million in the three months ended April 30, 2012.
Net sales in Americas were Euro 86.5 million, a 34.1% increase over the same
period of last year. At constant exchange rate the growth was 26.1%. Net
sales generated by DOS network gained a 39.2% increase which took benefit
from a 13% SSSG and a net of 10 new DOS opened since April 30, 2011. Net
sales to department stores increased by 17.1% and by 10.6% at constantexchange rates over the same period of 2011.
In Japan net sales totaled Euro 70.7 million recording an excellent 38.7%
growth. A net of new 6 DOS and a 3% SSSG contributed to sales expansion in
the region. At constant exchange rates, net sales raised by 27.7% comparedto the three months period ended April 30, 2011.
The Other countries net sales boosted thanks to the Middle East region,
where in 2011 the Group opened its first two stores in Dubai, United ArabEmirates. In the three months ended April 30, 2012, net sales were Euro 5.3
million recording an increase of 157.2% over the same period of 2011 (149.8%
at constant exchange rates).

Products
In the three months ended April 30, 2012, all products were generating
growth supported by Group’s distinctive and renowned innovation and stylecontent.
Leather goods, totaling Euro 417.3 million, showed once again the highest
pace of growth contributing 62% of Group net sales for the three months
ended April 30, 2012.
Footwear recorded a 36.3% increase compared to the three months endedApril 30, 2011, reaching Euro 134.7 million.
Ready-to-wear, despite a dilution in terms of weight on Group’s net sales,
posted a remarkable 29.7% increase over the same period of 2011.

BrandsCompared to the three months ended April 30, 2011, Prada brand achieved
the strongest growth among the Group’s brands (53.2% as reported and 46.4%
at constant exchange rates), posting net sales for Euro 541.5 million in thethree months ended April 30, 2012. Being the brand contributing 80.4% ofconsolidated net sales in the first quarter of 2012, and covering all markets
and product mixes, its performances resulted even better than those already18

highlighted at Group’s level.
Miu Miu net sales totaled Euro 107.3 million in the three months ended April
30, 2012, recording an increase of 30.8% (24.6% at constant exchange rates)
compared to the three months period ended April 30, 2011. All markets,channels and product categories achieved a double digit pace of growth.
Church’s brand also achieved good performances compared to the threemonths period ended April 30, 2011, mainly thanks to the wholesale channel.
Car Shoe net sales increased by 43.9% over the same period of 2011. Like
Church’s the wholesale channel delivered the development.

Royalties
The licensed products business contributed net revenues of Euro 13.5 million(Euro 8.8 million in the three months ended April 30, 2011). The increased
royalties’ income (53.1%) was mainly due to the new licensing agreement
signed with LG Electronics for the sale of a new mobile phone. Building on
the partnership’s previous successes, the premium handset combines highend technology with a design embodying superior style.

Operating results
EBITDA for the three months ended April 30, 2012, amounted to Euro 200.1
million, 77.2% more than the three months ended April 30, 2011, rising from
24.3% to 29.1% of net revenues. The increase in profitability was gained
mainly thanks to the growth in revenues and leveraging on operating
expenses, despite a dilution experienced at delivery margin level.
Operating expenses increased in absolute terms from Euro 261.1 million in
the three months ended April 30, 2011, to Euro 331.6 million in the threemonths ended April 30, 2012, mainly as a consequence of the businessexpansion. However, their incidence on net revenues decreased from 56.2%
to 48.3%.
In the three months ended April 30, 2012, EBIT also improved totaling Euro
164.8 million, more than 105.6% compared to Euro 80.1 million recorded in
the three months ended April 30, 2011. EBIT margin went from 17.3% to 24%
of Group’s net revenues, as the increase in depreciation and amortization
charges was less than that of net revenues.
Group’s net income amounted to Euro 121.7 million in the three months
ended April 30, 2012, recording an increase of 111% compared to the threemonths ended April 30, 2011.

Net Invested Capital
At April 30, 2012, Net invested capital stood at Euro 1,839.2 million. The
increase of Euro 21.9 million was substantially due to the change in the noncurrent portion of assets where investments in tangible assets, made in
relation to the retail network expansion program, contributed the most.

19Group’s net equity increased from Euro 1,822.7 million at January 31, 2012,
to Euro 1,949 million at April 30, 2012, essentially for the net result of thethree months period. However, it must be mentioned that the Annual
General Meeting held in Hong Kong on May 22, 2012, which was after thereporting period, approved the payment for the year ended January 31,
2012, of a final dividend of Euro 5/cents per share for a total amount of Euro
127.9 million.

Analysis of Net Operating Working CapitalThe decrease in Net operating working capital mainly arises from thedecrease of the receivables that is in line with the seasonality of thewholesale.

Net Financial Position
The Group’s Net financial position has seen a longstanding balance of net
indebtedness transformed into a positive net financial position since January
31, 2012. As at April 30, 2012, the positive net financial position strengthened
further to Euro 122.4 million, essentially because of the free cash flows
generated in this three months period.
The increase in long term bank debt is mainly due to new fund raised inJapanese Yen.
The Directors believe that the positive net financial position has to befavorably considered taking into account the present situation of the financial
markets.

Analysis of capital expenditure
The change in Property, plant and equipment and Intangible assets taken
together is largely due to capital expenditure for the three months period(Euro 55.3 million) less depreciation, amortization and impairment (Euro 35.3
million) and the translation effect (Euro 2.1 million). The Group’s capital
expenditure for the three months period was allocated for Euro 36.8 million
in the retail area, for Euro 13.4 million in the production and logistics (mainly
for the acquisition of two facilities in Italy) and for Euro 5.1 million in thecorporate area.

Outlook
The excellent results achieved in the first quarter of 2012 are a stimulus for
the Group to continue in pursuing its strategy, focused on products’
excellence and on a balanced worldwide expansion of the retail network.
Although we have seen these encouraging outcomes, we must consider - at
the same time - the rising risks deriving from the uncertain international
economic environment, in order to be ready to take any necessary actions tosafeguard our assets and preserve our long term growth strategy.
We remain confident in the strengths of our brands and our execution
capabilities and will focus on further reinforce our cash flows generation andfinancial flexibility.
20

Corporate governance practices
Audit Committee
The Audit Committee, which comprises three independent non-executive
directors, on June 7, 2012, reviewed the unaudited consolidated results of
the Company and its subsidiaries for the three months ended April 30, 2012.

Compliance with the Corporate Governance Code of the Listing
Rules
The Board reviewed the Company’s corporate governance practices and issatisfied that the Company complied with the code provisions set out in the
Corporate Governance Code contained in Appendix 14 of the Listing Rules
during the three months ended April 30, 2012.

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 three months ended April
30, 2012.

Publication of Announcement on consolidated results for thethree months ended April 30, 2012
This Quarterly Results Announcement is published on the Company’s website
at www.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 7, 2012

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 nonexecutive directors are Mr. Gian Franco Oliviero MATTEI, Mr. Giancarlo
FORESTIERI and Mr. Sing Cheong LIU.

21