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 YEARENDED JANUARY 31, 2012
FINANCIAL HIGHLIGHTS--Group’s net revenues were Euro 2,555.6 million recording an
increase of 24.9% compared with the year ended January 31, 2011
Retail net sales were Euro 1,964.5 million, up by 37.6% comparedwith the year ended January 31, 2011
the number of Directly Operated Stores (DOS) reached 388
Retail like-for-like growth was 23% compared with the year ended
January 31, 2011
EBITDA was Euro 759.3 million (representing a margin of 29.7% on
net revenues)
Group’s net income amounted Euro 431.9 million, an increase of
72.2% compared to Euro 250.8 million for the year ended January
31, 2011
Positive net financial position at Euro 15.8 million as at January
31, 2012
Net operating cash flow for the year was Euro 480.0 million
5 Euro/cents proposed dividend per share

Consolidated results for the year ended January 31,
2012
The Board of Directors (the “Board”) of PRADA S.p.A. (the “Company”) is
pleased to announce the audited Consolidated results of the Company and its
subsidiaries (collectively, the “Group”) for the year ended January 31, 2012
together with the audited comparative figures for the year ended January
31, 2011. The following financial information has been prepared inaccordance with the International Financial Reporting Standards (“IFRS”) as
adopted by the European Union. The consolidated results of the Group for1the year ended January 31, 2012 and January 31, 2011 have been audited by
Deloitte & Touche spa.

Highlights for the year ended January 31, 2012
In 2011, the PRADA Group successfully pursued its strategy of growth on theworldwide luxury goods market, combining one of the highest sales growth in
the sector with a further, significant increase in profitability. The expansion
program has led to the opening of 75 new stores across 17 different countries,
including Russia and the United Arab Emirates for the first time. In pursuit ofthese results, the Group has continued to invest in sustaining the prestige ofits brands with traditional promotional activities and new projects andpartnerships with the world of art, cinema and architecture: groundbreaking
agreements have been reached with the Conseil Economique, Social etEnvironnemental to use the Palais d’Iéna in Paris and with the Fondazione
Musei Civici di Venezia to organize art events at Cà Corner della Regina. The
events organized in Paris, Shanghai, Los Angeles and Tokyo have received
important international coverage that helped to communicate the uniquenature of the products and the strong identity of the brands.
Consolidated net revenues for the year ended January 31, 2012 amounted toEuro 2,555.6 million, an increase of 24.9% compared to the figure of Euro
2,046.7 million recorded in prior year. Sales growth was driven by the retailchannel which achieved 37.6% growth compared to the year ended January
31, 2011, thanks to the opening of new stores and like-for-like growth.
EBITDA for the year ended January 31, 2012 totaled Euro 759.3 million withan increase of 41.7% compared to the year ended January 31, 2011. Sales
growth combined with the reduced incidence of operating expenses meantthat EBITDA increased significantly as a percentage of net revenues, from
26.2% in last financial year to 29.7% in this year.
The consolidated income statement for the year ended January 31, 2012
reports Group’s net income of Euro 431.9 million, 72.2% more than in theyear ended January 31, 2011. Earnings per share improved from Euro 0.10 toEuro 0.17 per share.
June 24, 2011 saw the successful completion of an IPO that led to 19% of theshares in PRADA spa being listed on the Hong Kong Stock Exchange. The
operation involved the sale of existing and newly issued shares and raised a
net amount of Euro 206.6 million for the Group. The Prada Group IPO was thelargest consumer goods IPO in the world during the year and, thanks to its
innovative content, it received the prestigious IFR “IPO of the Year” World
Award and the IFR “IPO of the Year” Asia Pacific Markets. Prada shares havebeen included in the FTSE Asia Pacific (ex Japan) index and, consequently, in
the FTSE All World index, as well as in the S&P Global Luxury index.
Cash flows generated by the IPO and, above all, by ordinary activities enabled
the Group not only to cover in full its investing activities for the year but, atJanuary 31, 2012, to achieve a positive net financial position of Euro 15.8
million. At January 31, 2011, the Group had a negative net financial positionof Euro 408.6 million.

2

Consolidated Income Statement for the year ended January 31,
2012
year ended
January 31
2012%year ended
January 31
2011%

2,555,606(727,581)

100.0%-28.5%

2,046,651(658,763)

100.0%-32.2%

1,828,025

71.5%

1,387,888

67.8%(1,199,090)-46.9%(969,501)-47.4%

628,935

24.6%

418,387

20.4%(26,027)-1.0%(30,158)-1.5%

602,90823.6%

388,22919.0%(166,483)-6.5%(134,678)-6.6%

436,42517.1%

253,551

12.4%

-

-

-

-

436,42517.1%

253,551

12.4%

-

-

-

-

4,496

0.2%

2,732

0.1%

4,496

0.2%

2,732

0.1%

-

-

-

-

431,92916.9%

250,81912.3%

431,92916.9%

250,819

12.3%

Depreciation, amortization andimpairment

130,3175.1%

117,543

5.7%

EBITDA

759,25229.7%

535,930

26.2%(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 discontinued operations– non-controlling interests
Net income from continuing operations– non-controlling interests
Net income – non-controlling interests
Net income from discontinued operations– Group
Net income from continuing operations– Group
Net income - Group

Basic and diluted earnings per share (inEuro per share)

7

0.170

3

0.100

Consolidated Statement of Financial Position for the year
ended January 31, 2012
January 31
2012

January 31
2011362,284
266,404
374,782894
12,864
100,275
1,117,503

96,572
274,175
280,409
7,379
36,31770,225
4,948
770,025

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

536,717869,119
1,753
141,378
44,8832,140
1,595,990

2,943,568

2,366,015

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

194,240
1,148
581
233,825
107,592
5,279
5,019
111,482
659,166

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

303,408
2,509
34,83352,72552,71150,207318
496,711

Total Liabilities

1,112,601

1,155,877

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

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

250,000
743,543(40,012)250,819
1,204,350

8,224

5,788

Total Liabilities and Shareholders’ Equity

2,943,568

2,366,015

Net current assets
Total assets less current liabilities

400,9192,226,984

110,859
1,706,849(amounts in thousands of Euro)

Note

AssetsCurrent assets
Cash and cash equivalents
Trade receivables, net
Inventories
Derivative financial instruments - current
Receivables from parent company - related parties
Other current assets
Assets held for sale
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

9
8

10
10

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

11

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 in thousandsof Euro)Number ofsharesShare
CapitalSharepremium Translation
Other
Net profit
reserve
reserve reserves

Shareholders’Equity Group

Balance atFebruary 1, 2010

250,000,000

250,000

209,298(45,671)

100,163

1,047,903

-

-

-

-

100,163 (100,163)

-

-

-

-

- (111,000)(4)-(111,000)
(4)

-

-

-

-

1,134

-

1,134

-

-

-

5,659

9,839

250,819

266,317250,000,000

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

Allocation of 2009 net
profitDividends
Other movements
Transactions with
non-controllingshareholders
Comprehensive income
for the year
Balance atJanuary 31, 2011
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

534,113

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
year ended
January 31
2012year ended
January 31
2011

Net income for the period – Consolidated

436,425

253,551

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

23,20423,204

5,608
5,608

Change in Cash Flow Hedge reserve
Tax impact
Change in Cash Flow Hedge reserve less tax impact(10,432)
2,795(7,637)8,814(2,456)
6,358

Change in Actuarial reserve
Tax impact

(705)
443

4,553
(1,058)Change in Actuarial reserve less tax impact

(262)

3,495

Change in Fair Value reserve
Tax impact
Change in Fair Value reserve less tax impact

(77)
19
(58)

-

451,672

269,012

4,910

2,695

446,762

266,317(amounts in thousands of Euro)

Consolidated comprehensive income for the period
Comprehensive income for the period – Non-controlling
Interests
Comprehensive 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)
Non-current assets
Current assets excluding financial assets
Current liabilities excluding financial liabilities
Net working capital
Assets held for saleLong-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
Shareholders’ equity and net financial payables

6

January 31
2012

January 31
2011

1,826,065
753,809546,072
207,737
123,656
35,89856,921
1,817,327
1,822,743
8,224
1,830,968
179,542(193,182)(13,640)
1,817,327

1,595,990
634,462459,047
175,415
4,948
103,236
34,83352,725
1,585,559
1,204,350
5,788
1,210,138
305,91769,504375,421
1,585,559

Net Financial Position(amounts in thousands of Euro)

January 31
2012

January 31
2011Long term debt
Obligations under finance leases

178,442
1,100

303,4082,509

Long term financial payables

179,542

305,917

Short term financial payables and bank overdrafts
Payables to parent company and related parties
Receivables from parent company and related parties
Obligations under finance leases
Payables to other shareholders
Cash and cash equivalents

165,485
3,574(1,411)
1,453(362,284)

194,240
281(34,044)5,019
581(96,572)

Short term financial payables/(receivables),net of cash and cash equivalents(193,183)

69,504

Total financial payables/(receivables), net(13,641)

375,421

Total financial payables/(receivables), excluding
receivables/payables with parent company and related parties
and other shareholders(15,804)

408,604

n.a.
29.17

0.76
17.77

NFP/EBITDA ratio
EBITDA/ net financial charges ratio

Summarized Statement of Consolidated Cash Flows
year ended
January 31
2012year ended
January 31
2011

Net cash flows from operating activities

479,954367,712

Cash flows generated (utilized) by investing activities(257,147)(191,606)

Cash flows generated (utilized) by financing activities

40,410(169,266)

Change in cash and cash equivalents, net of bank overdrafts

263,217

6,840(amounts in thousands of Euro)

7

Notes to the consolidated results for the year ended
January 31, 20121.

Presentation of PRADA GroupPRADA spa (the “Company”), together with its subsidiaries (jointly the“Group”), is a world leader in the design, production and distribution ofluxury handbags, leather goods, footwear, apparel, accessories, eyewear,
fragrances and mobile phones.
Through its Directly Operated Stores network (DOS) and a select number of
independent customers, the Group operates on all major international
markets.
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 Statements of the PRADA spa Group as of January
31, 2012, including the “Consolidated Statement of Financial Position”, the“Consolidated Income Statement”, the “Statement of Consolidated
Comprehensive Income”, the “Summarized Statement of Consolidated Cash
Flows“ and the “Statement of changes in the Group’s Equity”, have been
prepared in accordance with the International Financial Reporting Standards(“IFRS”) issued by the International Accounting Standards Board (“IASB”) as
adopted by the European Union.
At the date of presentation of these Consolidated Financial Statements, there
was no difference between IFRS as adopted by the European Union andapplicable to the PRADA Group and those issued by the IASB.
“IFRS” also refers to all International Accounting Standards (“IAS”) and allinterpretations of the International Financial Reporting Interpretations
Committee (“IFRIC”), previously called the Standing Interpretations
Committee (SIC).
The Group has prepared the Consolidated Statement of Financial Position
classifying separately current and non-current assets and liabilities. All thedetails needed for more complete information are provided in the Notes.
The Consolidated Income Statement is classified by destination.
Cash flow information is provided in the Summarized Statement ofConsolidated Cash Flows which has been performed under the indirect
method.
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.

Operating segment

IFRS 8 requires that detailed information be provided for each “operating
segment” that makes up the business. An operating segment is intended as abusiness division whose operating results are regularly reviewed by top
management so that they can make decisions about the resources to beallocated to the segment and assess its performance.
The Group’s matrix-based organizational structure - whereby responsibility is
assigned cross-functionally in relation to brands, products, distribution
channels and geographical areas, together with the complementary nature of
the production processes of the various brands and the many relationships
between the different business segments – means that operating segmentsthat meet the IFRS 8 definition cannot be identified, as top management isonly provided with income statement results on a Group wide level. For thisreason, the business has been considered as a single operating segment as thisbetter represents the specific characteristics of the PRADA Group businessmodel.
Detailed information on net revenues by brand, geographical area, productand distribution channel is provided below. It is also reported in the Financial
review where it is accompanied by further information on the Group’s
operating results.

9Net revenues analysis(amounts in thousands of Euro)

year ended
January 31
2012year ended
January 31
2011%changeNet sales by geographical area
Italy
EuropeAmericas
Asia PacificJapan
Other countries
Total

445,611 17.6%
540,131 21.4%
392,677 15.6%
872,992 34.6%
256,693 10.2%
15,2260.6%
2,523,330 100.0%

393,285 19.5%
450,463 22.3%
326,780 16.2%
613,803 30.4%
220,924 11.0%
11,8090.6%
2,017,064 100.0%

13.3%
19.9%
20.2%
42.2%
16.2%
28.9%
25.1%

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

1,999,345 79.2%
441,054 17.5%
59,224
2.3%
17,039
0.7%
6,668
0.3%
2,523,330 100.0%

1,586,840 78.7%
353,038 17.5%
53,028
2.6%
17,935
0.9%
6,223
0.3%
2,017,064 100.0%

26.0%
24.9%
11.7%
-5.0%
7.2%
25.1%

Net sales by product line
Clothing
Leather goods
Footwear
Other
Total

512,585 20.3%
1,426,537 56.5%
560,108 22.2%
24,1001.0%
2,523,330 100.0%

483,564 24.0%
1,013,877 50.3%
503,120 24.9%
16,5030.8%
2,017,064 100.0%

6.0%
40.7%
11.3%
46.0%
25.1%

1,964,499

77.9%

1,427,356

70.8%

37.6%

558,83122.1%

589,708

29.2%

-5.2%

Net sales by distribution channel
DOS (including outlet stores)
Independent customers, franchises and relatedparties
Total

2,523,330 100.0%

2,017,064 100.0%

25.1%

Net sales
Royalties
Total net revenues

2,523,330 98.7%
32,2761.3%
2,555,606 100.0%

2,017,064 98.6%
29,5871.4%
2,046,651 100.0%

25.1%
9.1%
24.9%

10

Prada brand sales(amounts in thousands of Euro)

year ended
January 31
2012year ended
January 31
2011%changeNet sales by geographical area
Italy
EuropeAmericas
Asia PacificJapan
Other countries
Total

349,852 17.5%
411,552 20.6%
334,469 16.7%
710,157 35.5%
181,720
9.1%
11,5950.6%
1,999,345 100.0%

302,025 19.0%
341,544 21.5%
281,178 17.7%
496,156 31.3%
157,061
9.9%
8,876
0.6%
1,586,840 100.0%

15.8%
20.5%
19.0%
43.1%
15.7%
30.6%
26.0%

Net sales by product line
Clothing
Leather goods
Footwear
Other
Total

434,461 21.7%
1,141,097 57.1%
402,348 20.1%
21,4391.1%
1,999,345 100.0%

419,464 26.4%
786,244 49.6%
366,392 23.1%
14,7400.9%
1,586,840 100.0%

3.6%
45.1%
9.8%
45.4%
26.0%

1,562,233

78.1%

1,119,962

70.6%

39.5%

437,11221.9%

466,878

29.4%

-6.4%

Net sales by distribution channel
DOS (including outlet stores)
Independent customers, franchises and relatedparties
Total

1,999,345 100.0%

1,586,840 100.0%

26.0%

Net sales
Royalties
Total net revenues

1,999,345 98.5%
31,3411.5%
2,030,686 100.0%

1,586,840 98.3%
27,914
1.7%
1,614,754 100.0%

26.0%
12.3%
25.8%

11

Miu Miu brand sales(amounts in thousands of Euro)

year ended
January 31
2012year ended
January 31
2011%changeNet sales by geographical area
Italy

67,103

15.2%

61,337

17.4%

9.4%

EuropeAmericas86,17854,915

19.5%
12.5%

70,13743,190

19.9%
12.2%

22.9%
27.1%

Asia Pacific155,84135.3%

112,722

31.9%

38.3%

Japan

73,91816.8%

63,341

17.9%

16.7%

Other countries
Total

3,099
0.7%
441,054 100.0%

2,311
0.7%
353,038 100.0%

34.1%
24.9%

Net sales by product line
Clothing

77,251

17.5%

63,258

17.9%

22.1%

Leather goods

282,03364.0%

224,337

63.6%

25.7%

Footwear
Other

79,109
2,661

17.9%
0.6%

63,681
1,762

18.0%
0.5%

24.2%
51.0%

Total

441,054 100.0%

353,038 100.0%

24.9%

354,22780.3%

264,375

74.9%

34.0%

86,82719.7%

88,663

25.1%

-2.1%

Net sales by distribution channel
DOS (including outlet stores)
Independent customers, franchises andrelated parties
Total

441,054 100.0%

353,038 100.0%

24.9%

Net sales

441,054353,038

24.9%

Royalties
Total net revenues

828
0.2%
441,882 100.0%

12

99.8%

99.6%

1,458
0.4% -43.2%
354,496 100.0% 24.7%

Church’s brand sales(amounts in thousands of Euro)

year ended
January 31
2012year ended
January 31
2011%changeNet sales by geographical area
Italy
EuropeAmericas
Asia PacificJapan
Other countries
Total

16,509 27.9%
34,271 57.9%
2,402
4.0%
4,789
8.1%
1,052
1.8%
201
0.3%
59,224 100.0%

15,307 28.9%
7.9%
31,435 59.3%
9.0%
1,966
3.7% 22.2%
3,622
6.8% 32.2%
511
0.9% 105.9%
187
0.4%
7.5%
53,028 100.0% 11.7%

Net sales by product line
Clothing
Leather goods
Footwear
Total

762
1.3%
1,702
2.9%
56,760 95.8%
59,224 100.0%

551
1.0%
1,432
2.7%
51,045 96.3%
53,028 100.0%

38.3%
18.9%
11.2%
11.7%

38,346

64.7%

34,683

65.4%

10.6%

20,87835.3%

18,345

34.6%

13.8%

Net sales by distribution channel
DOS (including outlet stores)
Independent customers, franchises and relatedparties
Total

59,224 100.0%

53,028 100.0%

11.7%

Net sales
Royalties
Total net revenues

59,224 99.8%
107
0.2%
59,331 100.0%

53,028 99.8%
101
0.2%
53,129 100.0%

11.7%
5.9%
11.7%

13

Car Shoe brand sales(amounts in thousands of Euro)

year ended
January 31
2012year ended
January 31
2011

var.
%

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

10,294 60.4%
3,383 19.9%857
5.0%
2,174 12.8%
0.0%
331
1.9%
17,039 100.0%

12,509 69.7% -17.7%
3,353 18.7%
0.9%
353
2.0% 142.8%
1,275
7.1% 70.5%
110.1% -100.0%434
2.4% -23.7%
17,935 100.0%-5.0%

Net sales by product line
Leather goods
Footwear
Total

1,658
9.7%
15,381 90.3%
17,039 100.0%

1,760
9.8%
16,175 90.2%
17,935 100.0%

-5.8%
-4.9%
-5.0%

7,747

45.5%

6,027

33.6%

28.5%

9,292

54.5%

11,90866.4%-22.0%Net sales by distribution channel
DOS (including outlet stores)
Independent customers, franchises and relatedparties
Total

17,039 100.0%

17,935 100.0%-5.0%

Net sales
Total net revenues

17,039 100.0%
17,039 100.0%

17,935 100.0%
17,935 100.0%

-5.0%
-5.0%

14

Number of stores
At January 31, 2012
Owned
Franchises

At January 31, 2011
Owned
Franchises

Prada
Miu Miu
Car Shoe
Church’s

245
94
6
43

20
6
-

207
71
5
36

27
6
-

Total

388

26

319

33

At January 31, 2012
Owned
Franchises

At January 31, 2011
Owned
Franchises

ItalyEuropeAmericas
Asia PacificJapan
Middle East

44
115
47
115
65
2

5
6
1
14
-

37
88
34
104
56
-

5
13
13
2

Total

388

26

319

33

4.

Operating Expenses(Amounts in thousands of Euro)

year ended
January 31
2012% of netrevenues

year ended
January 31
2011% of netrevenues

103,120
129,184
802,770
164,016

4.0%
5.1%
31.4%
6.4%

97,164
85,119642,507
144,711

4.7%
4.2%
31.4%
7.1%

1,199,090

46.9%

969,501

47.4%

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

5.

Interest and other financial expenses, net
year ended
January 31
2012year ended
January 31
2011

Interests expenses on borrowings
Interest income
Exchange gains / (losses) – realized
Exchange gains/ (losses) – unrealized
Other financial income / (expenses)
Revaluations (write-down) of investments(16,843)
2,689(1,158)(6,116)(4,599)-(18,002)
1,306(5,318)657(4,580)(4,221)

Total(26,027)(30,158)(amounts in thousands of Euro)

15

6.

Taxationyear ended
January 31
2012year ended
January 31
2011

Current taxation
Deferred taxation

194,805(28,322)

166,810(32,132)

Income taxes

166,483

134,678(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 toshareholders by the weighted average number of ordinary shares in issue.
year ended
January 31
2012Group net income in Euro
Weighted average number of ordinary shares in issue
Earnings per share in Euro, calculated on weighted average
number of shares

year ended
January 31
2011

431,928,921
250,818,884
2,535,777,885 2,500,000,000
0.170

0.100

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. In
accordance with IAS 33, the number of shares in issue in 2010 was
retrospectively adjusted for the purposes of the calculation of earnings per
share.

Dividends per share
During the year ended January 31, 2012, the Company distributed dividendsof Euro 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 parent company PRADA Holding bv while theremaining amount was paid in April 2011.
During the year ended January 31, 2011, the Company distributed dividends
totaling Euro 80 million as approved by the Shareholders’ Meeting held on
April 28, 2010 to approve the Financial Statements for the year ended
January 31, 2010. Some Euro 52.1 million of the dividend liability arising wasoffset against receivables due from parent company PRADA Holding bv while
the remaining amount was paid on July 27, 2010. On January 27, 2011, a
Shareholders’ Meeting approved a further dividend distribution of Euro 31
million and it was paid in full the same day.

16

8.

Inventories(amounts in thousands of Euro)
Raw materials
Work in progress
Finished products
Allowance for obsolete and slow moving
inventories
Total

January 31
2012

January 31
2011

66,575
17,187360,379

63,672
17,186263,341(69,359)(63,790)374,782

280,409

The increase in inventories of finished products is consistent with the higher
volume of production necessary to supply the expanded DOS network as wellas with the growth of the business in general.
Movements on the allowance for obsolete and slow moving inventories areanalyzed as follows:Rawmaterials

Finished
Products

Total

Balance at January 31, 2011

31,622

32,16863,790Exchange differences
Increases
Decreases
Other movements

1
131(2,000)
-

21
7,233
183

22
7,364
(2,000)183

Balance at January 31, 2012

29,75439,60569,359(amounts in thousands of Euro)

9.

Trade receivables, net

The Group manages the credit risk and reduces its negative effects throughits commercial and financial strategy. Credit risk management is performedby controlling and monitoring the reliability and solvency of customers and is
carried out by the Group’s Commercial Department.
At the same time, the fact that the total receivables balance is not highly
concentrated on individual customers and the fact that net sales are evenly
spread around the world lead to a reduced risk of financial losses.
Trade receivables are detailed as follows:
January 31
2012

January 31
2011

Trade receivables – third parties
Trade receivables – associated companies
Trade receivables – related parties

247,577
18,827

255,455
1,924
16,796

Total

266,404

274,175(amounts in thousands of Euro)

The decrease in trade receivables is mainly due to the selective policy
adopted for sales to independent customers and to the delayed shipment of17

products towards the end of the year, mainly because of particularly bad
weather in Italy and ongoing industrial action by road freight transporters.
January 31
2012

January 31
2011

Third parties trade receivables, grossAllowance for bad and doubtful debts

259,258(11,681)266,376(10,537)

Total third parties trade receivables, net

247,577

255,839(amounts in thousands of Euro)

The allowance for doubtful debts was determined on a specific basis
considering all information available at the date the financial statements
were prepared. It is revised periodically to bring receivables as close as
possible to their fair value.
Movements during the period may be analyzed as follows:
January 31
2012

January 31
2011

Opening balance

10,537

11,308Exchange differences
Increase
Utilized
Reversals

198
2,369
(866)
(557)

204
1,345
(2,069)(251)

Closing balance

11,681

10,537(amounts in thousands of Euro)The following table contains a summary of total receivables before theallowance for doubtful debts at the reporting date:1 < 30Overdue (days)
31 < 60
61 < 90

226,300

18,991

12,096

278,085

226,300

18,991

12,096

January 31
2011

Current

1 < 30Overdue (days)
31 < 60 61 < 90

Trade receivables

284,713238,248

18,543

7,438

Total

284,713238,248

18,543

7,438

January 31
2012

Current

Trade receivables

278,085

Total(amounts inthousands of Euro)(amounts inthousands of Euro)18

91 < 120

> 120

5,031

2,167

13,500

5,031

2,167

13,50091 < 120

> 120

4,176

342

15,966

4,176

342

15,966

The following table contains a summary, by due date, of trade receivables
less the allowance for doubtful accounts at the reporting date:1 < 30Overdue (days)
31 < 60 61 < 90

225,313

18,944

12,056

266,404

225,313

18,944(amounts inthousands of Euro)

January 31
2011

Current

Trade receivables
less allowance for
doubtful accounts

274,175

Total

274,175(amounts inthousands of Euro)

January 31
2012

Current

Trade receivables
less allowance for
doubtful accounts

266,404

Total

91 < 120

> 120

4,864

2,044

3,183

12,056

4,864

2,044

3,183

1 < 3031 < 60

Overdue61 < 90

91 < 120> 120

237,819

18,463

7,390

4,083

239

6,181

237,819

18,463

7,390

4,083

239

6,181

10. Capital expenditure
Changes in the net book value of “Property, plant and equipment” in theyear ended January 31, 2012 are as follows:
Production Leasehold
Furniture
plant and
improve& fittingsmachineryments(amounts inthousands of Euro)Land andbuildings

Balance at January
31, 2010

106,458

13,520160,747

56,204

19,42061,616417,965

10,479(4,295)-

7,609(6,319)(128)

83,165(49,923)(85)

26,437(15,861)(169)

11,930(6,646)(56)

58,446(309)

198,066(83,044)
(747)

1,122

7

5,814

1,880

144

2,195

11,162

31,838-353-

24,115(3,721)

3,889
(271)

(92)
(5)

(60,710)(2,081)(607)(6,078)145,602

15,042

220,112

72,10924,69559,157536,71740,806(5,055)-

7,030(6,635)(4)

110,797(62,899)(61)

29,329(18,691)(183)

18,825(5,850)(63)

51,820(15)

258,607(99,130)
(326)

1,443

28

14,637

2,405

325

3,501

22,339

288
-

15
-

24,011(2,273)

3,885
(470)

2,091
(41)

(30,627)(1,216)(337)(4,000)183,084

15,476304,324

88,38439,982

82,620713,870

Additions
Depreciation
Disposals
Exchangedifferences
Other movements
Impairment
Balance at January
31, 2011
Additions
Depreciation
Disposals
Exchangedifferences
Other movements
Impairment
Balance at January
31, 2012

19

Other Assets under
tangible construction

Total net
book value

Changes in the net book value of “Intangible assets” in the year ended
January 31, 2012 are as follows:(amounts inthousands of Euro)

Trademarks

Goodwill

Balance at January
31, 2010

328,154503,889

42,452

5,764

12,244816

893,319

184(11,110)
-

-

1,529
(8,358)-3,339(2,955)(2)

1,599(5,987)
-

2,143
(3)

8,794
(28,410)(5)(4,769)

57

183

23

-

19

(4,487)

1
-

-

281
-

216
-

23
(10)

(603)
-

(82)
(10)

312,460

503,946

36,087

6,385

7,869

2,372

869,119166(11,025)--

14,393(8,354)-

4,178(3,067)(4)

128(4,726)
(1)

1,384
-

20,249(27,172)
(5)

1,707

274

358

16

-

12

2,367

-

-

190
-

1,071
(1)

-

(2,278)(14)(1,017)(15)

303,308504,220

42,674

8,578

3,270

1,476

863,526

Additions
Amortization
Disposals
Exchangedifferences
Other movements
Impairment
Balance at January
31, 2011
Additions
Amortization
Disposals
Exchangedifferences
Other movements
Impairment
Balance at January
31, 2012

Store Lease
Development Assets in
SoftwareAcquisitions
costs progress

Total net
book value

11. Trade payables
January 31
2012

January 31
2011

Trade payables – third parties
Trade payables – related parties
Trade payables – associated companies

280,808
2,730-

231,128
2,675
22

Total

283,538

233,825(amounts in thousands of Euro)

The increase in trade payables is due to the growth of the Group business ingeneral.

20

The following table summarizes trade payables by maturity date.
(amounts inthousands of Euro)

Overdue61 < 90

January 31
2012

Current

1 < 3031 < 60

Trade payables

283,538

251,483

17,392

5,507

Total

283,538

251,483

17,392

5,507

January 31
2011

Current

1 < 30Trade payables

233,825

210,700

Total

233,825

210,700(amounts inthousands of Euro)

21

91 < 120

> 120

2,553

2,131

4,472

2,553

2,131

4,472

31 < 60

Overdue61 < 90

91 < 120

> 120

9,450

4,086

2,557

1,731

5,301

9,450

4,086

2,557

1,731

5,301

Management Discussion and Analysis for the year ended
January 31, 2012
Net revenues
Consolidated net revenues for the year ended January 31, 2012 amounted toEuro 2,555.6 million, 24.9% higher than the Euro 2,046.7 million recorded in
the year ended January 31, 2011. At constant exchange rates, there was a
26.4% increase.

Distribution channels
Net sales generated by the retail channel, amounting to Euro 1,964.5
million, increased by 37.6% compared to prior year (+39.2% at constantexchange rates). The exceptional growth achieved confirms thedetermination shown by the Group during the year in pursuing its expansion
program with the opening of 75 new DOS. The growth achieved is all themore impressive if analyzed at constant exchange rates and assuming thesame number of stores: in fact, like-for-like growth amounted to 23% andwas steady throughout the year.
In contrast, the wholesale channel showed a 5.2% decrease in net sales
compared to prior year. This decrease essentially regarded the Italian andEuropean markets as the Group continued to be more selective about its
authorized accounts and relevant deliveries, and because of a different
pattern of shipments due to the particularly bad weather in Italy at the endof the year and the accompanying industrial action by hauliers that caused
some delays. At constant exchange rates, the decrease was slightly smaller(-3.9%).
As a result of the above factors, the contribution by the retail channel
towards total net sales rose from 70.8% to 77.9%.

Markets
For the third consecutive year, the Asia Pacific market was confirmed as
leader both in absolute terms and for growth: it generated net revenues ofEuro 873 million in the year ended January 31, 2012, a 42.2% increase
compared to the year ended January 31, 2011 (+45.1% at constant exchange
rates, +33% like-for-like). Its contribution to consolidated net revenues rosefrom 30.4% to 34.6%.
Net sales on the Asia Pacific market were generated almost entirely by theretail network (+45% compared with the year ended January 31, 2011, +48%
at constant exchange rates and +33% like-for-like) which included some 115
stores in Asia Pacific as at January 31, 2012. The Greater China area (China,
Hong Kong and Macau) achieved the highest like-for-like growth of 40%. Eightof the eighteen new DOS opened on the Asia Pacific market are located in
China.
Net sales on the European market amounted to Euro 540.1 million, 19.9%
more than in the year ended January 31, 2011 (+20.5% at constant exchange

22rates). The outstanding growth achieved by the DOS (+43%, +44% at constantexchange rates, +19% like-for-like) was offset partially by a decrease in thewholesale channel compared to the year ended January 31, 2011. The 28
new stores opened during the year included the first nine shops in Moscow.
The Italian market generated total sales of Euro 445.6 million, 13.3% morethan in the year ended January 31, 2011. As for the rest of the European
market, the excellent growth achieved in the retail channel (+45%, +28%
like-for-like) contrasts with the reduction in sales in the wholesale channel.
The Group’s strategic interest in further developing the domestic market led
to the opening of seven new DOS, among which the first in Padova andPalermo.
The North American market has continued to grow. Since the first half of theyear, both the retail channel and the wholesale channel have shown
excellent results. For the whole year, the retail channel grew by 25% (+32%
at constant exchange rates) while the wholesale channel increased by 12%(+17% at constant exchange rates). Growth in the retail channel was driven
by both existing stores (16% like-for-like growth) and newly opened stores (8new stores were opened in 2011). The consumer spending recovery in USA
was the fundamental reason for increased sales through department stores.
In Japan, net sales totaled Euro 256.7 million with excellent growth of
16.2%, also at constant exchange rates (+11.9%) and assuming the same
number of stores (like-for-like growth +1%). These results confirm the solid,
resistant nature of the Japanese market notwithstanding the dramatic
events of March 2011 which affected the state of an economy alreadystagnant. The importance of Japan to the PRADA Group is confirmed by theretail expansion program which has seen a further increase from 56 to 65
DOS in the country. The new Miu Miu flagship store in the Ginza Echigoya
district of Tokyo, one of the world’s most exclusive shopping areas, stands
out among the newly opened stores.
Following the rationalization of the distribution network in the Middle East,
the Other Countries area has seen its net sales increase by 29% to Euro 15.2
million. In 2011, the Group opened its first two stores in Dubai, United ArabEmirates.

Products
The increase in net sales was achieved in all product segments. Leather
goods recorded the highest growth of 40.7% (+42.3% at constant exchange
rates), mainly thanks to the higher incidence of the retail channel and theconfirmed appeal of these products to Asian consumers. Clothing wasaffected by the decline in the wholesale channel but achieved a recovery inthe second half of the year, compared to the first half of the year, andended with a 6% increase compared with the year ended January 31, 2011(+7.3% at constant exchange rates).

BrandsThe Prada brand achieved stronger sales growth than the other brands
compared to the year ended January 31, 2011 (+26%), increasing its

23

contribution towards net sales from 78.7% to 79.2%. This sales performancelargely reflects the excellent results already described at Group level.
Among the successful collections presented, we would highlight thesensation caused by the Prada Woman S/S 2011 collection which wasmemorable also for its colorful advertising campaign.
The Prada brand was followed by Miu Miu which contributed 17.5% of theGroup’s net revenues, ending the year 2011 with growth of 24.9% (+26.1% atconstant exchange rates). The American market confirmed its great
appreciation for this brand and sales there increased by 27.1% compared to
the year ended January 31, 2011. In April 2011, Miu Miu also launched its
new e-store, confirming its avant-garde spirit.
The Church’s brand once again achieved double figure growth, driven byboth the retail channel (+11.4% at constant exchange rates) and thewholesale channel (+14.7% at constant exchange rates). During the year, thefirst Church’s store wholly dedicated to the Women’s collection was opened
on New Bond Street, London.
Despite expansion in the retail channel (one new DOS was opened in London
in 2011), Car Shoe suffered from a decrease in the wholesale channel,
partially because of the aforementioned late shipments occurred at year-end
and also because of a different planning in deliveries according tocustomers’ needs. The brand’s total sales fell by 5% compared to the year
ended January 31, 2011.

Royalties
The licensed products business contributed net revenues of Euro 32.3 million(Euro 29.6 million in the year ended January 31, 2011). The increased
royalties income compared to the year ended January 31, 2011 was due – aswell as to higher sales of eyewear and fragrances – to a new licensing
agreement signed with Korean car manufacturer Hyundai for the sale of alimited edition version of its Genesis model. The decline in Miu Miu royalties
income registered up to the end of the third quarter of 2011 was reversed in
the final quarter of the year with the launch of a new eyewear collection.

Operating results
EBITDA for the 2011 financial year amounted to Euro 759.3 million, 41.7%
more than in the 2010 financial year, while rising from 26.2% to 29.7% of net
revenues. The increased profitability was largely due to the excellent resultsin terms of gross margin which, in turn, benefited from a more favorable mixof sales in terms of distribution channel, geographical area and product. The
economies of scale achieved in relation to fixed costs were partiallyabsorbed by increased spending on media space.
Operating costs increased from Euro 969.5 million in the year ended January
31, 2011 to Euro 1,199.1 million in the year ended January 31, 2012. They
decreased from 47.4% of net revenues in 2010 to 46.9% in 2011 (decrease
almost unchanged at constant exchange rates). Product design anddevelopment costs increased slightly compared to the year ended January
31, 2011. They include both the design phase – i.e. research and testing of24

shapes, fabrics, leather and production techniques plus definition of thedesign concept - and the product development phase, involving planning ofproducts, production of prototypes and manufacture of the products
themselves. The increase in advertising and communications costs isessentially due to higher media advertising and events expenses. Selling costs
increased from Euro 642.5 million in the year ended January 31, 2011 to Euro
802.8 million in the year ended January 31, 2012. They remained unchanged
at 31.4% of net revenues notwithstanding the opening of 46 new DOS in thesecond half of the year 2011 out of a total of 75 new DOS opened in the year
as a whole. In order to provide further information on the income statement
structure, we note that operating expenses include depreciation,amortization and impairment adjustments for both property, plant andequipment and intangible assets for a total amount of Euro 121.3 million(Euro 109.5 million in the year ended January 31, 2011), personnel costs ofEuro 362.8 million (Euro 303.5 million in the year ended January 31, 2011),
fixed rent of Euro 170.1 million (Euro 148.8 million in the year ended January
31, 2011) and variable rent of Euro 187.9 million (Euro 140.5 million in theyear ended January 31, 2011).
The improvement in EBIT, from 20.4% in the year ended January 31, 2011 to
24.6% of net revenues in the year ended January 31, 2012, also benefited
from the fact that depreciation and amortization charges increased by lessthan net revenues.
Net financial expenses have decreased by Euro 4.1 million compared to prioryear. The cost of bank borrowing has fallen compared to year ended January
31, 2011. The benefit resulting from the lower level of borrowing waspartially offset by a shift in the borrowing mix towards medium and longterm debt compared to prior year. Moreover, the repayment of short-term
Euro borrowing shielded the Group from the impact of the higher spreads
seen mainly in the short-term portion of the interest rate curve. The increase
in interest income essentially relates to the deployment of liquidity which
was generally higher than in the year ended January 31, 2011, mainly thanks
to the proceeds from the IPO. The write-down of investments recorded in2010 reflects the fair value measurement of the Fragrance & Skincare sl
joint-venture which was classified as an asset held for sale at January 31,
2011.
The income statement reports net income for the Group of Euro 431.9 million(Euro 250.8 million in the year ended January 31, 2011). The lower tax charge
for the year, essentially because of accruals for tax disputes recorded in
2010, has led to net income of 16.9% of net revenues with an exceptional
increase of 72.2% compared to the year ended January 31, 2011.
Notwithstanding the share capital increase subscribed in relation to the IPO
on Hong Kong Stock Exchange, earnings per share have increased from Euro
0.10 to Euro 0.17 per share.

Net Invested Capital
At January 31, 2012, net invested capital stood at Euro 1,817.3 million. It
had a similar breakdown at all three reporting dates analyzed. The

25

additional value generated during 2011 was largely attributable toinvestments made in relation to the Group’s expansion program.
The share capital increase subscribed in 2011, as a result of the IPO
completed on June 24, 2011, and, above all, the outstanding operating andfinancial results achieved in recent years, have formed the basis for theGroup’s solid balance sheet structure. At January 31, 2012, the Group
reported net cash and cash equivalents of Euro 13.6 million while Group
Shareholders’ Equity stood at Euro 1,822.7 million.

Analysis of Net Operating Working Capital
The increase in net operating working capital is due to the higher volume ofbusiness. The reduction in the wholesale business is reflected in the lower
level of trade receivables.

Net Financial Position
The Group’s net financial position has seen a longstanding balance of net
indebtedness transformed into a positive net financial position at January 31,
2012.
Cash flows generated by operating activities and the share capital increase
have enabled the Group not only to finance its major capital investment
program (Euro 257.2 million), pay dividends (Euro 6.4 million) and repay debt
falling due (Euro 156.8 million) but, above all, to accumulate sufficientliquidity to enable it to report a positive net financial position of Euro 15.8
million at January 31, 2012.
Given the current state of volatility and uncertainty on bank borrowing
markets, in particular, management believes that this position of liquidity
will assure the Group sufficient financial flexibility, also in view of planned
dividend payments and the major investment program planned for 2012.

Analysis of capital expenditure
The increase in property, plant and equipment is largely due to capital
expenditure for the year (Euro 278.9 million) and the effect of translation
into Euro (Euro 24.7 million) less depreciation and amortization (Euro 126.3
million) and impairment adjustments (Euro 4.0 million). The Group’s capital
expenditure for the year was allocated as follows: Euro 191.2 million in theretail area, Euro 57.8 million in the production and logistics area and Euro29.9 million in the corporate area.

Outlook for 2012
The results reported for the year ended January 31, 2012 confirm theGroup’s ability to achieve strong growth while continuing to become more
profitable.
In 2012, the absolute importance of the strategy centered on the retailchannel will be confirmed both by seeking continually to improve existing
stores and through another major program to open new stores, mainly in fast
growing markets and markets new to the Group (Brazil, UAE, Morocco,
Ukraine). The program of new store openings will also extend to more26

mature markets where there is an increasingly significant flow of foreign
travelers.
The Group will continue to be committed to stylistic innovation and toquality products, communications and distribution. It will draw on theprestige of its brands to achieve continued high growth rates in a
medium/long term context that is still positive for the luxury goods sector.
Nonetheless, the current macroeconomic environment is still characterized
by uncertainty and volatility which, especially in the short term, could havenegative repercussions for performance on certain markets. In light of thissituation, as in the past, the Group will maintain adequate control over theuse of resources and ensure that it is flexible enough to be able to react topossible changes in the situation. This will ensure it preserves its ability togenerate cash and to continue with its investment program.

27

Corporate governance practices
The Company is committed to maintaining a high standard of corporate
governance practices and fulfilling its commitment to effective corporate
governance. The corporate governance model adopted by the Company
consists of a set of rules and standards with the aim of establishing efficientand transparent operations within the Group, to protect the rights of theCompany’s shareholders and to enhance shareholder value. The corporate
governance model adopted by the Company is in compliance with theapplicable regulations in Italy, as well as the principles of the Code on
Corporate Governance Practices (the “Code”) contained in Appendix 14 of
the Rules Governing the Listing of Securities on The Stock Exchange of Hong
Kong Limited (the “Listing Rules”).

Audit Committee
The Company has established an Audit Committee in compliance with Rule3.21 of the Listing Rules where at least one member possesses appropriate
professional qualifications in accounting or related financial management
expertise in discharging the responsibility of the Audit Committee. The
membership of the Audit Committee consists of three Independent Nonexecutive Directors, namely, Mr. Gian Franco Oliviero Mattei (Chairman), Mr.
Giancarlo Forestieri and Mr. Sing Cheong Liu. The primary duties of the Audit
Committee are to assist the Board in providing an independent view of theeffectiveness of the Company’s financial reporting process, internal control
and risk management system, to oversee the external audit process and theinternal audit process carried out by the internal audit department of theCompany and to perform other duties and responsibilities as are assigned tothe audit committee by the Board.
The Audit Committee has held a meeting on March 29, 2012 to review theannual results for the year ended January 31, 2012 before recommending itto the Board for approval.

Compliance with the Code on Corporate Governance Practices
The Board has reviewed the Company’s corporate governance practices andis satisfied that the Company’s corporate governance practices havecomplied with the code provisions set out in the Code during the period fromthe time of its listing on June 24, 2011 to January 31, 2012 (the “Review
Period”).

Directors’ securities transactions
The Company has adopted written procedures governing Directors’ securities
transactions on terms no less exacting than the standard set out in the Model
Code for Securities Transactions by Directors of Listed Issuers (the “Model
Code”) contained in Appendix 10 of the Listing Rules. Specific written
confirmations have been obtained from each Director to confirm compliancewith the Model Code throughout the Review Period. There was no incident of
non-compliance during the Review Period.

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The Group has also adopted written procedures governing securities
transactions carried out by the relevant employees who are likely to be inpossession of unpublished price-sensitive information of the Group. The
terms of these procedures are no less exacting than the standard set out inthe Model Code.

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 Review Period.

Annual General Meeting
The Annual General Meeting of the Company will be held on Tuesday, May
22, 2012.
Notice of the Annual General Meeting will be published on the Company’s
website at www.pradagroup.com and on the Hong Kong Exchanges andClearing Limited’s website at www.hkexnews.hk in due course.

Final dividend
The Board recommends a final dividend of 5 Euro/cents per share. The
payments shall be made in Euro to the shareholders recorded on the
Company’s shareholder register held at the Company’s registered office in
Milan (Italy) and in Hong Kong dollars to the shareholders recorded in theshareholders register held in Hong Kong. The relevant exchange rate will be
the opening buying T/T rate of Hong Kong dollars to Euros as announced by
the Hong Kong Association of Banks (www.hkab.org.hk) on the day of
approval of the dividend by the shareholders.
Subject to the shareholders approving the recommended final dividend, such
dividend will be payable on or about Tuesday, July 3, 2012.

Closure of register of members
In order to qualify for attending and voting at the annual general meeting of
the Company, all transfers accompanied by the relevant share certificate(s)must be lodged with the Company’s Hong Kong share registrar,
Computershare Hong Kong Investor Services Limited, at Shops 1712-16, 17th
Floor, Hopewell Center, 183 Queen’s Road East, Wanchai, Hong Kong, notlater than 4:30 p.m. on Thursday, May 17, 2012. The shareholders register of
the Company will be closed from Friday, May 18, 2012 to Tuesday, May 22,
2012, both days inclusive, during which no share transfer can be registered.
The shareholders registered on the Company’s shareholder register on
Tuesday, May 22, 2012 will be allowed to attend and vote at the annual
general meeting of the Company.
In order to qualify for the payment of the proposed final dividend, alltransfers accompanied by the relevant share certificate(s) must be lodged
with the Company’s Hong Kong share registrar, Computershare Hong Kong
Investor Services Limited, at Shops 1712-16, 17th Floor, Hopewell Center,
183 Queen’s Road East, Wanchai, Hong Kong, not later than 4:30 p.m. on

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Monday, May 28, 2012. The shareholders register of the Company will beclosed from Tuesday, May 29, 2012 to Wednesday, May 30, 2012 both days
inclusive, during which no share transfer can be registered. The final
dividend will be paid to shareholders recorded on the Company’s shareholder
register on Wednesday, May 30, 2012.

Publication of Annual Results Announcement and Annual Report
This Annual Results Announcement 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. The annual report will be publishedon the same websites and dispatched to shareholders in due course.

By Order of the Board
PRADA S.p.A.
Mr. Carlo Mazzi
Deputy Chairman
Milan (Italy), March 29, 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.

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