FY-2021
RESULTS PRESENTATION

Milan, March 14th 2022
1

March 14th 2022

AgendaPatrizio Bertelli – CEOBusiness Update
Lorenzo Bertelli – Marketing Director and Head of CSR
Key ESG and Marketing Initiatives
Alessandra Cozzani – CFO
FY-2021 Financial Review

Paolo Zannoni – Executive Chairman
OutlookQ&A Session

2

March 14th 2022

AgendaPatrizio Bertelli – CEOBusiness Update
Lorenzo Bertelli – Marketing Director and Head of CSR
Key and ESG Marketing Initiatives
Alessandra Cozzani – CFO
FY-2021 Financial Review

Paolo Zannoni – Executive Chairman
OutlookQ&A Session

3

March 14th 2022

2021 Strategic Progress (1/2)
On track

Prada Group’s
Distinctive Vision• Continued to evolve coherently
with the market, reinterpretingluxury• Relevant, sustainable andimpactful

Style, Quality,
And Unique Products

Focus onDirect Distribution• Strong growth across all
categories• Strengthened direct channels andinvested in store network• Increased product value andbroadened price architecture• Special pop-up: 68 Prada and
12 Miu Miu in FY-21• Introduced new categories• Outstanding online growth

4

March 14th 2022

2021 Strategic Progress (2/2)
On trackIndustrial Know-Howand Vertical Integration• Increased vertical integration• Reduced complexity• Invested in manufacturing sites
and capabilities

Increased Commitment
to Sustainability

Investment in People andTechnology infrastructure• Two new Board members withstrong sustainability credentials• Continued to invest in humanresources and new talents• Substantial Board-level genderparity• Technology and IT transformation
programme ongoing• Scope 1 & 2 emissions reduction
on track

5

March 14th 2022

Results Highlights - Revenues
Strong growth in 2021
• Retail sales up +15% vs. FY-19, with a marked
acceleration in Q4 at +24%

• Relevance with domestic consumers globally• Remarkable performance in Asia, Americas,Middle East. Europe also above 2019
• Acceleration across all product categories• Outstanding online growth: FY-21 online sales
5x FY-19 level• Total revenues up +8% vs. FY-19
notwithstanding voluntary meaningful wholesalerationalisation

6March 14th 2022

Results Highlights - Profitability & Cash Flow
Excellent progress in 2021
• Gross margin at 75.7% for FY-21,
with H2 at 76.8%• EBIT margin at 14.5% for FY-21,
with H2 at 17.4%• Strong operating cash flow (€ 751 mln)
with further improvement in net working
capital driven by supply chain excellence• Positive net financial position of € 238 mln atyear-end

7

March 14th 2022

2022 Priorities
Continue long-term strategy for growth• Constantly adapt to highly complex and fastevolving environment• Continue to increase product content, quality
and uniqueness• Reinforce dialogue with younger generations
and customer engagement• Further invest in digital and in our retail network
to enhance the customer experience• Streamline manufacturing processes
and shorten supply chain• Integrate ESG strategy fully within the business

8

March 14th 2022

AgendaPatrizio Bertelli – CEOBusiness Update
Lorenzo Bertelli – Marketing Director and Head of CSR
Key and ESG Marketing Initiatives
Alessandra Cozzani – CFO
FY-2021 Financial Review
Paolo Zannoni – Executive Chairman
OutlookQ&A Session

9

March 14th 2022

Prada: pioneer in marketing and communications
Highly successful brand moments and campaigns

Innovative fashion
show formats.
Excellent
performance

Successful Prada
Men’s advertising
campaign featuringTom Holland

TikTok Prada Bucket New interpretation
Hat Challengeof gaming

First-of-its-kind
NFT collaboration• 9.5 bn views• adidas for Pradare-source• Prada FW22
Menswear show
Mentions: 72k+ 42% vs FW21

• #2 searched• Engagement rate:
women’s product+181% vs avg 2021
brand in Q4-21
LYST ranking• Prada Linea
Rossa Riders
Republic®
in partnershipwith Ubisoft• Prada FW22
Womenswear show
Mentions: 63k+132% vs FW21

10March 14th 2022

Miu Miu: high visibility marketing and communications
Coherent with brand DNA

Miu Miu successful
fashion show format
Partnership with New
Balance to further
support the Miu Miu
exposure

Basic Instincts: Miu Miu SS22
advertising campaign featuring
Hailey Bieber

Viral Mini-Skirt:•

Most in demand item of thecollection•

Outstanding visibility in media
exposure and celebrities•

Dedicated independent fan
pages and social media
accounts• Engagement rate:+8,3% vs avg 2021

• Mentions:+88% vs SS21

11March 14th 2022

Brand heat and leadership: Prada & Miu Miu FY 2021

Prada.com
website traffic1+59%

miumiu.com
website traffic1+13%

Share of Searcheffectiveness2+55%

Share of Searcheffectiveness2+35%

Among thehottest brands

visits YOY

2021 vs 2020

Top

3Entering
the ranking

Q4 2021 Lyst Index

visits YOY

2021 vs 2020

#20

Q4 2021 Lyst Index

1 Source Adobe Analytics
2 Source Adobe Analytics - Growth of search traffic to website, including natural and paid search (not limited to Google)

12March 14th 2022

ESG Agenda
Three pillars across Group activities

We commit to shape ouroperations to reduce ourfootprint

We commit to an inclusive,
creative and fair workplace

We commit to share
our values and to build asustainable society• Mitigate our impact
on climate change• Champion diversity andpromote inclusion• Contribute to culturaldebate• Preserve theecosystems• Foster creativity andknowhow preservation• Further sustainability
literacy• Embrace circularthinking• Ensure wellbeing andfair workplace• Inspire scientificevolution

WITH PARTNERS
We commit to engage with our partners to strengthen our sustainability path
13

March 14th 2022

Continued ESG focus
Concrete actions and progressMaterials Innovation

Diversity & Inclusion

Governance

Climate Strategy• ESG Board Committee
formalized• SBTs business ambition
for 1.5°C (*)• Re-Nylon: achieved
full conversion• Substantial gender
parity at Board level• Pamela Culpepper andAnna Maria Rugarli
appointed to the Boardand already focused on
ESG progress• Scope 1 & 2 emissions
reduction on track,
identification of scope
3 reduction actions• New strategic
membership with
Textile Exchange• First luxury fashion
Group to join The
Valuable 500• Full certification by
Leather Working Groupby 2023

• Progress on DE&I
agenda (**)• Carbon neutral for
scope 1 & 2 emissions
by mid-2022• Leading position in
LEED green buildingcertifications(**) Diversity, Equity and Inclusion(*) Science based targets initiatives

14

March 14th 2022

AgendaPatrizio Bertelli – CEOBusiness Update
Lorenzo Bertelli – Marketing Director and Head of CSR
Key and ESG Marketing Initiatives
Alessandra Cozzani – CFO
FY-2021 Financial Review
Paolo Zannoni – Executive Chairman
OutlookQ&A Session

15

March 14th 2022

Key Financials Summary
Solid growth and continued profitability improvement

FY Revenues:€3,366m (+41% vs. 20 / +8% vs. 19) *FY EBIT:€489m

FY Operating Cash Flow **:€ 751mRetail Revenues (€m) and growth (%) *EBIT (€m) and margin (%)

Net Financial Position (€m) ***+15%+40%

2.931
2.931
2.931

2.636
2.636
2.636

9.5%

0.8%

2.115
2.115
2.115

14.5%

238
238 238499499489307307307

2020 20
FY-19 FY-20
FY-20 FY-21
FY-21
FY-19
FY-20
FY-21
FY-19

FY-19 FY-20
FY-20 FY-21
FY-21
FY-19
FY-20
FY-21
FY-19-311-311-311-406-406-406
FY-19 FY-20
FY-20 FY-21
FY-21FY-19FY-20
FY-21FY-19(**) Generated by operating activities(*) at constant exchange rates (%)(***) (Net debt) / Net Cash position

16March 14th 2022

Net sales by Channel
Retail sales well above 2019 levels more than offsetting wholesale rationalisation€ mln / % change same FX

FY 21

FY 21 vs.
FY 20

FY 21 vs.
FY 19

Retail

2,931

+40%

+15%

Wholesale

386

+41%

-29%

Total

3,317+40%+8%

Wholesale
10%
DFS
2%

Retail88%

Retail• Excellent performance driven by full price sales• 10% of stores closed on average during the period (17% in H1 and 3% in H2)• Outstanding growth in online sales (5x FY-19 and strong double digit vs. FY-20)• Stable retail network: 635 DOS end of December 2021, +2 net vs. FY-20

Wholesale• Selective approach to traditional wholesale and e-tailers

17

March 14th 2022

Retail sales trend
Strong acceleration vs. 2019

24%

18%

13%

3%% average
store closed

Q1-21

Q2-21

Q3-21

Q4-21

22%

13%

3%

2%

18

March 14th 2022

Retail sales by Geography
Outstanding growth in US, Asia and ME, good rebound in EU and JP€ mln / % change same FX

FY-21

FY 21 vs.
FY 20

FY 21 vs.
FY 19

Asia Pacific1,192+29%+30%

Europe749+35%-11%

Americas572+103%+69%

Japan297+16%-17%

Middle East

121+62%

+43%

Total

2,931

+40%

+15%

Middle East
4%

Japan
10%

APAC
41%

Americas20%Europe26%

Asia Pacific• Very solid double digit growth on a 2-year stack notwithstanding
renewed restrictions in August and December• Sustained demand in key markets throughout the period vs. 2019:
China +56%, Korea +90%, Taiwan +61%
Europe• Solid rebound in H2-21 driven by local customers• Turned positive in Q4-21 above 2019 levels, in spite of renewed
COVID-19 restrictions

Japan• Covid-19 restrictions highly impacting sales in the first 9 months• Gradual recovery, returning to 2019 sales levels in Q4-21Americas• Sharp increase troughout the year
• Strong progress across all countries: US, Canada and Latin America
19Middle East
• Strong growth driven by locals and some resumption in tourism
March 14th 2022

Retail sales organic growth vs. 2019 by Geography
Outstanding growth in US, Asia and ME, good rebound in EU and JP
Asia PacificEuropeAmericas

JapanMiddle East

82%

60%
53%35%
28%
25%

2%
H1-21

H2-21

H1-21

H2-21

H1-21

H2-21
H1-21

H2-21

H1-21

H2-21

-10%
-24%
-29%

20

March 14th 2022

Retail sales by ProductAcceleration across all categories – all growing double digit in H2-21 vs. 2019
€ mln / % change same FX

FY 21

FY 21 vs.
FY 20

FY 21 vs.
FY 19

Leather Goods

1,530+31%+7%

Ready to Wear826

+53%+36%

Footwear521+49%+16%

Other

54+70%

-5%

Total

2,931

+40%+15%

Other2%

Shoes
18%

RTW
28%

Leather Goods
52%

Leather Goods• High demand from iconic and new bags lines• Outstanding growth from accessories• Well balanced growth across multiple price points and materials
Ready to Wear
• Superior performance testifying design leadership• Success of Prada and Miu Miu collections• Progress in high-performance fashion sportswear: Linea Rossa, Adidas/Prada Re-nylonFootwear• Lifestyle and new collections drove a sharp acceleration in H2-2121

March 14th 2022

Retail sales by Brand
Outstanding performance of the Prada brand, Miu Miu turnaround on track€ mln / % change same FX

FY 21

FY 21 vs.
FY 20

FY 21 vs.
FY 19

Prada

2,537+44%+21%

Miu Miu

347+20%-7%

Church’s

30+11%-41%

Other (*)

17+67%-9%Total

2,931+40%+15%

Church's1%

Other1%

Miu Miu
12%

Prada87%(*) includes Marchesi and Car Shoe

Prada
• Robust growth on a 2-year basis, accelerating QoQ• Double digit growth across all categories relative to 2019 in both semesters
Miu Miu• Sequential improvement across the year vs. 2019
• Outstanding performance in RTW, strong double-digit growth vs. 2019
• Success of denim collections / Upcycled by Miu Miu collaboration with Levi’s
Church’s• Heavily impacted by the unfavourable geographic exposure (~80% sales generated in EU)
22

March 14th 2022

Gross margin development
Margins at record high+5.2%

+2.9%

-0.3%

76.8%

74.3%

72.1%

71.7%

+470 bps vs. 19+260 bps vs. 19

H1-2019-0.5%

productchannelcountry

FX

H2-2019

H1-2021•

Gross margin increased to ~ 77% in H2•

Driven by richer product mix, channel / country mix and scale

23

productchannelcountryFX

H2-2021

March 14th 2022

Operating costs
Effective cost management, increasing investments in A&P€ mln+87+732,058

G&A

FY-21

2,013-48+63

FY-19

Selling

A&P-12+432,058
949+13+161
1,723

FY-20•

Selling

A&PPD

PD

G&A

FY-21

Total opex increased by:+19% vs. 2020 (+20% at constant fx)+2% vs. 2019 (+4% at constant fx)
24

March 14th 2022

EBIT bridge
Sharp profitability improvement in H2€ mln+29-71+209
324+124

150+26-69

166

156+58+107% vs. 2019+50% vs. 2020+10% vs. 2019

H1-19EBIT
Margin10%Revenues

Gross
MarginOpex

H1-21

H2-1911%9%25Revenues

GrossMarginOpex

H2-21

17%

March 14th 2022

CapexInvest in our retail network, supply chain and IT backbone
€ mln
216

71

Corporate, IT & Industrial
122
Real estate
Retail59
61

8661

FY-2
FY-200••

FY-2
FY-211

2 net openings~ 120 renovation and relocation projects
26

March 14th 2022

Net Operating Working Capital
Supply chain excellence
€ mln
602

667

290

329

666

663

Trade Payables
Trade Receivables
Inventory-290

•
•-390

FY-20

FY-21

FY 2 0FY 2 1Significant improvement in NWC, closing the year at 18% on sales, well below 2019 level
Trade payables up due to increasing production activities
27

March 14th 2022

Net Financial Position€ mln

Opening Net financial position surplus / (deficit) - 31/12/2020(311)

Consolidated Net Result

295

Net Working Capital

72

Depreciation and Amortization / other non monetary items

388

Investments-219

Dividends

-91

Other

104

Closing Net financial position surplus / (deficit) - 31/12/2021

238

28

March 14th 2022

AgendaPatrizio Bertelli – CEOBusiness Update
Lorenzo Bertelli – Marketing Director and Head of CSR
Key and ESG Marketing Initiatives
Alessandra Cozzani – CFO
FY-2021 Financial Review
Paolo Zannoni – Executive Chairman
OutlookQ&A Session

29

March 14th 2022

Outlook
Deliver long-term strategy for growth2021 was a turning point for Prada
Decisive actions to evolve the businessdelivered strong growth and increased
profitability
Robust start to 2022, long-term strategy
well on track
On course to meet our medium-term targets

The Group will continuously monitor, reactand adapt to increasingly complex businessenvironment

30

March 14th 2022

Q&A session

31

March 14th 2022

APPENDIX32March 14th 2022

Condensed P&L€mFY 2019

FY 2020

FY 2021

Net Revenues

3,226

100%

2,423

100%

3,366

100%

COGS

-906

-28.1%-679-28,0%

818-24,3%

Gross Margin

2,320

71.9%

1,743

72.0%

2,547

75.7%

Selling-1,470-45.6%-1,260-52.0%

1,421-42.2%

Advertising & Promotion

-231

-7.2%

-207

-8.5%

294

-8.7%

Design and Product Development

-127

-3.9%

-102

-4.2%

115

-3.4%

G&A

-184

-5.7%

-154

-6.4%

227

-6.7%

Operating expenses-2,013-62.4%-1,723-71.1%-2,058-61.1%

EBIT

307

9.5%

200.8%

489

14.5%

Total Financial expenses

-72

-2.2%

-72

-3.0%

-68

-2.0%

EBT

235

7.3%

-52

-2.1%

422

12.5%

Income Taxes

23

0.7%

-3-0.1%

-127

-3.8%

Minority Income

20,1%

00.0%

10.0%

Group Net income / (Loss)

256

7.9%

-54

-2.2%

294

8.8%

Total D&A

-690

-21.4%-669-27.6%-631-18.7%EBITDA

997

30.9%

689

28.4%

1,120

33.3%

33

March 14th 2022

Condensed Balance Sheet€m

31 Dec 201931 Dec 2020

31 Dec 2021

Right of use

2,363

2,054

1,956

Non current assets (excl deferred tax assets)

2,671

2,507

2,490

Net operating working capital

703

667

602

Other current assets / (liabilities), net-6

25-163

Other non current assets / (liabilities), net

79

4251

Net invested capital

5,809

5,296

4,936

Consolidated shareholders’ equity

2,989

2,852

3,129

Net financial position (surplus) / deficit

406

311

-238

Long term lease liability

2,006

1,730

1,627

Short term lease liability

410

404

418

Total

5,809

5,296

4,936

Operating cash flow

362

262

751

Net working Capital / Sales

22%

28%

18%

Capex

302

122216

Debt / Equity

14%

11%

negative

34

March 14th 2022