Hong Kong Exchanges 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.

PRADA spa
(Stock Code: 1913)

ANNOUNCEMENT
OF THE INTERIM RESULTS
FOR THE SIX MONTHS ENDED JULY 31, 2017

- Net sales were Euro 1,442.6 million, -5.7% compared with the six
months ended July 31, 2016;- Royalties were Euro 26.1 million, +4.7% compared with the six months
ended July 31, 2016;- EBIT was Euro 166.8 million, or 11.4% on net revenues;- Group’s net income was Euro 115.7 million, or 7.9% on net revenues;- Net financial position is standing negative at Euro 223.4 million as at
July 31, 2017 after the payment of dividends to the shareholders of
PRADA spa for Euro 307.1 million.

1

Consolidated results for the six months ended July 31,
2017
The Board of Directors (the “Board”) of PRADA S.p.A. (the “Company”, or“PRADA spa”) announces the unaudited Consolidated results of the Company
and its subsidiaries (collectively, the “Group”) for the six months ended July
31, 2017, together with the unaudited comparative figures for the same six
months period ended July 31, 2016. The following financial information has
been prepared in accordance with the International Financial ReportingStandards (“IFRS”) as adopted by the European Union. The Consolidated
results of the Group for the year ended January 31, 2017, were audited by
Deloitte & Touche S.p.A.

Key financial informationsix
monthsended
July 312017(unaudited)

twelvemonthsended
January 31
2017(audited)sixmonthsended
July 312016(unaudited)

1,468,636
279,553
19.1%
166,837
11.4%
115,7420.045
105,615
208,156

3,184,069
653,44820.5%
431,18113.5%
278,3290.109
251,507631,850

1,554,172
329,99121.2%
213,701
13.8%
141,9230.055
108,085
266,728-5.5%-15.3%-21.9%-18.4%-18.4%-22.0%

12,094

12,326

12,228-1.1%

Key statement of financial positionindicators(amounts in thousands of Euro)

as at
July 312017(unaudited)

as atJanuary 31
2017(audited)

as atJuly 312016(unaudited)change vsJanuary 31
2017

Net operating working capital
Net invested capital
Net financial position surplus/(deficit)
Group’ shareholders’ equity

552,685
3,022,362(223,427)
2,776,345

556,351
3,086,089
18,4413,080,502

674,446
3,166,777(251,727)
2,894,984(3,666)(63,727)(241,868)(304,157)

Key economic figures(amounts in thousands of Euro)Net revenues
EBITDAEBITDA %EBITEBIT %Net income of the Group
Earnings per share (Euro)
Capital expenditure
Net operating cash flows
Average number of employees

2%change vsJuly 312016

Highlights for the six months ended July 31, 2017
The net revenues for the six months ended July 31, 2017 were Euro 1,468.6
million, down by 5.5% compared to the same period of last year. The sales
performance for the period had conflicting trends, with some markets
recovering and others contracting.
In terms of profitability, the decline in sales volumes was compensated for bya better mix, especially regarding the ratio of full-price sales to discounted
sales. The gross margin benefited from this and improved from the same
period of the previous year.
With respect to business initiatives, an important e-commerce plan was
introduced for all the Group's brands that include an omnichannel growthstrategy focusing on gradual expansion of the online sales channel in terms ofmerchandising and territorial coverage, plus new versions of the websites.
Digital initiatives also involved advertising and communications, with thecreation of special content and the acquisition of online space and media
tools intended to create synergy among the three distribution channels.
Investments were continued in the manufacturing area to boost internal
production volumes, thereby ensuring that a greater number of production
processes achieve the high standards that have always characterized theoutput of the Group's production facilities. The investments of the periodalso targeted the retail network. The plan to bring Miu Miu stores into linewith the brand's new look progressed, and special projects for Prada stores
were carried out, such as new store layouts and extension of the “resort”
concept to seaside stores.
The recent overhauling of processes and cost structure enabled to keep
operating expenses consistent with those of the prior reporting period.
EBIT for the six months ended July 31, 2017 was Euro 166.8 million, or 11.4%
of net revenues, down from the Euro 213.7 million, or 13.8% of net revenues,of the same period of the previous year.
The Group’s net income was Euro 115.7 million, or 7.9% as a percentage ofnet revenues, whereas it was 9.1% for the same six-month period of 2016.
The net operating working capital at July 31, 2017 is Euro 552.7 million,
practically unchanged from January 31, 2017. The net financial indebtedness
amounts to Euro 223.4 million, after the dividend payment of Euro 307.1
million and a reduction of Euro 40.6 million resulting from the exchange
rates fluctuation.

3

Consolidated statement of Profit or Loss for the six months
ended July 31, 2017

(amounts in thousands of Euro)Net revenues
Cost of goods soldsix months
ended
% on
July 31
Net
2017 revenues(unaudited)

Note

3

six months
ended
% on
July 31
Net
2016 revenues(unaudited)

1,468,636(379,995)

100.0%-25.9%

1,554,172(432,231)

100.0%-27.8%

1,088,641

74.1%

1,121,941

72.2%(921,804)-62.7%(908,240)-58.4%

166,837

11.4%

213,701

13.8%

(890)

-0.1%

(6,756)

-0.4%

357

0.0%

558

0.0%

166,304

11.3%

207,503

13.4%(50,222)-3.4%(62,206)-4.1%

116,082

7.9%

145,297

9.3%

340

0.0%

3,374

0.2%

Net income – Group

115,7427.9%

141,923

9.1%

Depreciation, amortization andimpairment

112,716

7.7%

116,290

7.5%

EBITDA

279,553

19.1%

329,991

21.2%

Gross margin
Operating expenses

4

EBIT
Interest and other financial
income/(expenses), net
Dividends from investments

5

Income before taxes
Taxation

6

Net income for the period
Net income – Non-controlling interests

Basic and diluted earnings per share (inEuro per share)

7

0.045

4

0.055

Consolidated statement of financial position(amounts in thousands of Euro)

Note

AssetsCurrent assets
Cash and cash equivalents
Trade receivables, net
Inventories
Derivative financial instruments – current
Receivables from, and advance payments to,related parties - current
Other current assets
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
Total Assets

8
9

as at
July 312017(unaudited)

as atJanuary 31
2017(audited)

669,730
266,795
562,620
20,416722,214285,504
526,941
7,045

10

9,425

14,96412

215,150
1,744,136

253,375
1,810,043

11
11

1,490,151
915,913
9,311
237,478
111,9252,620
2,767,398
4,511,534

1,542,684
921,800
11,775247,266
123,361
2,846,886
4,656,929

359,206
5,058
276,730
49,737
11,320132,451
834,502151,211
5,542
256,094
65,467
13,634
144,827
636,775

529,428
60,21577,546
34,109169,4367,363
878,097
1,712,599

547,628
67,211
82,32331,140179,072
8,250
915,624
1,552,399

Share capital
Total other reserves
Translation reserve
Net income for the period
Equity attributable to owners of Group
Equity attributable to Non-controlling interests
Total Equity

255,882
2,381,085
23,636
115,7422,776,345
22,5902,798,935

255,8822,401,500
144,791
278,3293,080,502
24,0283,104,530

Total Liabilities and Total Equity

4,511,534

4,656,929

Net current assets
Total assets less current liabilities

909,634
3,677,032

1,173,268
4,020,154

13

Liabilities and Shareholders’ Equity
Current liabilities
Bank overdrafts and short-term loans
Payables to related parties - current
Trade payables
Tax payables
Derivative financial instruments - current
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term financial payables
Post-employment benefits
Provision for risks and charges
Deferred tax liabilities
Other non-current liabilities
Derivative financial instruments non-current
Total non-current liabilities
Total Liabilities

14
15
16

17

5

Statement of changes in consolidated shareholders’ equity(amounts in thousands of Euro, except for number of shares)
EquityEquityNonattributacontrolble toling
owners ofinterestsGroup(amounts inthousands of Euro)

Number of
SharesShare
CapitalTranslation
Reserve

Fair Value
Share
Cash flow
Total
Actuarial Available for
Otherpremium
hedge
Other
Reservesalereserves
reserve
reserve
Reserves
Reserve

Balance at January
31, 2016 (audited)

2,558,824,000

255,882

138,547410,047(7,100)(8,161)

Allocation of 2015
net income

-

-

-

-

-

-

-

Dividends

-

-

-

-

-

-

- (281,471) (281,471)

-

-

-

-

-

-

-

(1,283)

-

-

-

-

-

-

-

-

-

(27,645)-(14,130)

-

-

-

-

-

-

(2,264)2,558,824,000

255,882

110,902410,047(21,230)(10,425)

-

-

-

-

-

-

-

-

-

-

-

(337)

(337)

-

-

-

-

-

-

-

-

-

-

-

905

905

-

-

-

-

-

-

-

(725)

(725)

-

(725)

529

(196)

-

-

33,889-13,333-(2,103)-

11,230136,406

181,525

2,863

184,388

-

-

-

-

-

4,718

-

-

4,718

-

4,718

2

4,720

Balance at January
31, 2017 (audited)

2,558,824,000

255,882

144,791

410,047(7,897)(5,707)(1,656)

2,006,713

2,401,500

278,3293,080,502

24,0283,104,530

Allocation of 2016
net income

-

-

-

-

-

-

-

278,329

278,329(278,329)---

Dividends

-

-

-

-

-

-

-

(307,059)(307,059)-(307,059)(451)(307,510)

-

-

-

-

-

-

-

-

-

-

-

335

335

-

-

-

-

-

-

-

-

-

-

-

89

89

-

-

(121,155)-

10,212-(1,903)

4

8,313

115,742

2,900(1,411)

1,489

-

-

-

-

-

2

-

-

2

-

2

-

2

2,558,824,000

255,882

23,636410,047

2,315(5,705)(3,559)1,977,987

2,381,085

115,7422,776,345

22,5902,798,935

Transactions with
non-controllinginterests
Capital injection in
subsidiaries
Comprehensive
income for the six
months(recyclable to P&L)
Comprehensive
income for the six
months(not recyclable to
P&L)
Balance at July 31,
2016 (unaudited)
Dividends
Share Capital
Increase
Transactions with
non-controllinginterests
Comprehensive
income for the six
months(recyclable to P&L)
Comprehensive
income for the six
months(not recyclable to
P&L)

Transactions with
non-controllinginterests
Capital injection in
subsidiaries
Comprehensive
income for the six
months(recyclable to P&L)
Comprehensive
income for the six
months(not recyclable to
P&L)
Balance at July 31,2017 (unaudited)6

933 1,959,304 2,355,023

Net
income330,888 3,080,340

Total
Equity17,037 3,097,377

-

-

-

-

(281,471)(369)(281,840)(1,283)-(1,283)(249)(1,532)

-

-

-

-

109

109

(486)

-

(14,616)

141,923

99,662

3,538

103,200--(2,264)-(2,264)-(2,264)

330,888

330,888 (330,888)

447 2,007,438 2,386,277

141,923 2,894,984

20,066 2,915,050

Summarized statement of consolidated cash flowssixmonthsended
July 312017(unaudited)sixmonthsended
July 312016(unaudited)

Net cash flows from operating activities

208,156

266,728

Cash flows generated/(utilized) by investing activities(104,303)(114,675)

Cash flows generated/(utilized) by financing activities(107,039)(156,243)(3,186)(4,190)(amounts in thousands of Euro)

Change in cash and cash equivalents, net of bank overdrafts

Statement of consolidated comprehensive income
sixmonthsended
July 312017(unaudited)

twelvemonthsended
January 31
2017(audited)sixmonthsended
July 312016(unaudited)

116,082

284,190145,297(122,894)(122,894)

6,784
6,784

(27,480)(27,480)

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

13,477(3,265)
10,212

(914)
117
(797)

(18,080)
3,950(14,130)

Change in Fair Value reserve
Tax impact
Change in Fair Value reserve less tax impact(2,475)572(1,903)(3,452)863(2,589)

(648)
162
(486)

-

3,277
(821)
2,456

(2,409)145(2,264)

Consolidated comprehensive income for the period

1,497

290,044

100,937

Comprehensive income for the period – Noncontrolling Interests(1,411)

6,403

3,538

86

283,641

97,399(amounts in thousands of Euro)Net income for the period – ConsolidatedA) Items recyclable to P&L:
Change in Translation reserve
Tax impact
Change in Translation reserve less tax impactB) Item not recyclable to P&L:
Change in Actuarial reserve
Tax impact
Change in Actuarial reserve less tax impact

Comprehensive income for the period – Group7

Notes to the consolidated results for the six months
ended July 31, 2017
1.

Presentation of Prada GroupPRADA spa (the “Company”), together with its subsidiaries (jointly the“Group”), is listed on the Hong Kong Stock Exchange (HKSE code: 1913). It is
one of the world leaders in the luxury goods sector where it operates with
the Prada, Miu Miu, Church’s and Car Shoe brands in the design, production
and distribution of luxury handbags, leather goods, footwear, apparel andaccessories. The Group also operates in the eyewear and fragrance industries
under specific licensing agreements stipulated with industry leaders, andwith the recent acquisition (2014) of Pasticceria Marchesi 1824, it has madeits entry into the food industry. Its products are sold in 70 countries
worldwide through a network that included 613 Directly Operated Stores(DOS) at July 31, 2017, and a select network of luxury department stores,
independent retailers and franchise stores.
The Company is a joint-stock company, registered and domiciled in Italy. Its
registered office is in Via Antonio Fogazzaro 28, Milan, Italy.

2.

Basis of preparation

The financial information for the six months ended July 31, 2017 included inthis Announcement refers to the Group of companies controlled by PRADA
spa, holding company of the PRADA Group (the "Group"), and is based on its
unaudited Interim condensed consolidated financial statements for the six
month period ended July 31, 2017. These results were prepared inaccordance with the criteria adopted at January 31, 2017 with the exceptionof the revised IFRS principles below reported.
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”).
New standards and amendments issued by the IASB, endorsed by theEuropean Union and applicable to the Prada Group from February 1, 2017.
No new principles have been adopted by the European Union, therefore the
IFRS standards adopted in the preparation of this document are the same as
those used in the preparation of the Consolidated financial statements as atJanuary 31, 2017.

8

New standards and amendments issued by the IASB, endorsed by theEuropean Union but not yet applicable to the Prada Group as effective forfinancial years beginning on January 1, 2018.
New standards
IFRS 9 Financial Instruments
IFRS 15 Revenues from Contracts with
Customers

Effective date for
the Prada GroupEU endorsement status

January 1, 2018

Endorsed on November 2016

January 1, 2018

Endorsed on September 2016

New Standards, changes and operational guidelines issued by the IASB, notyet endorsed by the European Union at the date of this Interim consolidated
financial statements.
New standards
IFRS 14 Regulatory Deferral Accounts
IFRS 16 Leases
IFRS 17 Insurance Contracts
Amendments to existing standards
IFRS 10 and IAS 28: Sale orassignment of assets
IAS 12 Recognition of Deferred Tax
Assets for Unrealised Losses
IAS 7 Statement of Cash Flows
2014–2016 Cycle that impacted IFRS
1, IAS 28, IFRS12
Clarification on IFRS 15 Revenues fromContracts with Customers

Effective date for
the Prada GroupEU endorsement status

January 1, 2016 (*)
January 1, 2019
January 1, 2021
Effective date for
the Prada GroupNot yet endorsed
Not yet endorsed
Not yet endorsed

February 1, 2016

Not yet endorsed

January 1, 2017 (*)

Not yet endorsed

EU endorsement status

January 1, 2017 (*)

Not yet endorsed

January 1, 2017 (*)

Not yet endorsed

January 1, 2018

Not yet endorsed

IFRS 2 Share-based Payments

January 1, 2018

Not yet endorsed

IAS 40 Investment Property

January 1, 2018

Not yet endorsed

IFRIC 22 Interpretation on transactions
January 1, 2018
involving an advance in foreign
Not yet endorsed
currency
IFRIC 23 Interpretation regarding theJanuary 1, 2019
Not yet endorsed
accounting of income taxes(*) Changes issued by the IASB effective from January 1, 2017 (IFRS 14, IAS 12, IFRS 7, Cycle 20142016) have not yet terminated the EU approval process on July 31, 2017. However, the Directors
consider their impact not material.

At the date of this Consolidated financial statements, the Directors did notfinish the necessary analyzes to estimate the impacts of the new standards,
changes and operating guidelines not yet applicable to the Prada Group.
However, in view of the significance of commercial lease contracts for theGroup, it is reasonable to conclude that the impact of "IFRS 16 Leases" will
be material.

93.

Net revenues analysis

Net revenues(amounts in thousands of Euro)Net Sales
Royalties
Net revenues

six months
ended
July 312017(unaudited)

six months
ended
July 312016(unaudited)%change1,442,556 98.2%
26,0801.8%
1,468,636 100.0%

1,529,267 98.4%
24,905
1.6%
1,554,172 100.0%

-5.7%
4.7%
-5.5%

six months
ended
July 312017(unaudited)

six months
ended
July 312016(unaudited)%changeNet sales analysis(amounts in thousands of Euro)Net sales by geographical area
EuropeAmericas
Asia PacificJapan
Middle East
Other countries
Total Net Sales

553,631 38.4%
210,370 14.6%
462,951 32.1%
164,438 11.4%
49,208
3.4%
1,958
0.1%
1,442,556 100.0%

599,568 39.2% -7.7%
218,492 14.3% -3.7%
461,215 30.2%
0.4%
191,726 12.5% -14.2%
55,702
3.6% -11.7%
2,564
0.2% -23.6%
1,529,267 100.0% -5.7%

Net sales by brand
Prada
Miu Miu
Church's
Other
Total Net Sales

1,176,843 81.6%
224,371 15.6%
33,769
2.3%
7,573
0.5%
1,442,556 100.0%

1,233,596 80.7% -4.6%
249,152 16.3% -9.9%
39,747
2.6% -15.0%
6,772
0.4% 11.8%
1,529,267 100.0% -5.7%

Net sales by product line
Leather goods
Footwear
Clothing
Other
Total Net Sales

826,906 57.3%
310,340 21.5%
273,766 19.0%
31,5442.2%
1,442,556 100.0%

893,468 58.4%
343,641 22.5%
262,395 17.2%
29,7631.9%
1,529,267 100.0%

-7.4%
-9.7%
4.3%
6.0%
-5.7%

1,177,059

81.6%

1,276,587

84.0%

-7.8%

265,497

18.4%

252,680

16.0%

5.1%

1,529,267 100.0%-5.7%

Net sales by channel
Net Sales of Directly Operated Stores (DOS)Net Sales to independent customers andfranchisees
Total Net Sales

1,442,556 100.0%

10Number of storesas atJuly 312017
DOS
franchises

as atJanuary 31
2017
DOS
franchises

as atJuly 312016
DOS
franchises

Prada
Miu Miu
Church’s
Car Shoe
Marchesi

385
165
55
5
3

25
9
-

387
171
54
5
3

25
9
-

388
173
54
5
2

23
8
-

Total

613

34

620

34

622

31

as at
July 312017
DOS
franchises

as atJanuary 31
2017
DOS
franchises

as atJuly 312016
DOS
franchises

EuropeAmericas
Asia PacificJapan
Middle East and Africa

219
112
181
79
22

4
25
5

220
113
187
78
22

4
25
5

224
115
184
77
22

4
22
5

Total

613

34

620

34

622

31

% on netrevenues

4.

Operating expenses
six months
ended
July 312017(unaudited)% on netrevenues

six months
ended
July 312016(unaudited)

Product design and development costs
Advertising and promotion expenses
Selling expenses
General and administrative costs

66,786
82,587
679,606
92,825

4.5%
5.6%
46.3%
6.3%

63,70375,984
678,158
90,395

4.1%
4.9%
43.6%
5.8%

Total

921,804

62.7%

908,240

58.4%(amounts in thousands of Euro)

The detail of the operating expenses was restated compared to the 2016 Interim Report so as to provide a better
representation of the results of the revision of short-term incentives to employees.

5.

Interest and other financial income/(expenses), net(amounts in thousands of Euro)Interest expenses on borrowings
Interest expenses IAS 19
Interest income
Exchange gains / (losses) – realized
Exchange gains/ (losses) – unrealized
Other financial income / (expenses)
Total

11

six months
ended
July 312017(unaudited)

six months
ended
July 312016(unaudited)(7,157)2,882(2,372)
6,638
(881)

(7,722)
(89)
2,008
2,943
(2,615)(1,281)(890)(6,756)

6.

Taxation
six months
ended
July 312017(unaudited)

six months
ended
July 312016(unaudited)

Current taxation
Deferred taxation

52,771(2,549)49,047
13,159

Income taxes

50,222

62,206(amounts in thousands of Euro)

7.

Earnings and dividends per share, basic and diluted

Earnings per share
Earnings per share are calculated by dividing the net income of the period
attributable to Group’s shareholders by the weighted average number ofordinary shares in issue.

Group net income in Euro
Weighted average number of ordinary shares in issue
Basic and Diluted earnings per share in Euro, calculated onweighted average number of shares

six months
ended
July 312017(unaudited)

six months
ended
July 312016(unaudited)

115,741,559
2,558,824,000

141,923,268
2,558,824,000

0.045

0.055

Dividend per share
During the six months ended July 31, 2017, the Company distributed
dividends of Euro 307,058,880, as approved by the Shareholders’ Meeting
held on May 31, 2017, to approve the financial statements for the year ended
January 31, 2017.
The payment of the dividends and the related Italian withholding tax
liability, arising from the application of the Italian ordinary withholding tax
rate to the whole amount of dividends paid to beneficial owners of theCompany shares held through the Hong Kong Central Clearing and Settlement
System, was completed by July 31, 2017.

8.

Trade receivables, net
as atJuly 312017(unaudited)

as atJanuary 31
2017(audited)

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

255,210(6,483)18,068268,223(6,654)23,935

Total

266,795

285,504(amounts in thousands of Euro)

12The trade receivables fell by Euro 18.7 million due to exchange differencesand differences occurred in the timing of collection of some receivable.
Movements of the allowance for doubtful debts during the period were as
follows:
as atJuly 312017(unaudited)

as atJanuary 31
2017(audited)

Opening balance

6,654

6,546

Exchange differences
Increases
Reversals
Utilization

(182)
390
(23)
(356)

(78)
578
(202)
(190)

Closing balance

6,483

6,654

(amounts in thousands of Euro)The following table contains a summary of total receivables by due date
before the allowance for doubtful debts:
as atJuly 312017(unaudited)

Not
overdue1 ≤ 3031 ≤ 60

61 ≤ 9091 ≤ 120≥ 121

Trade receivables

273,278

238,441

10,712

6,823

4,436

1,544

11,322

Total

273,278

238,441

10,712

6,823

4,436

1,544

11,322as at(amounts inJanuary 31
thousands of Euro)2017(audited)

Not
overdue1 ≤ 3031 ≤ 60

61 ≤ 9091 ≤ 120≥ 121(amounts inthousands of Euro)

Overdue (days)

Overdue (days)

Trade receivables

292,158

226,210

22,631

16,259

5,766

3,193

18,099

Total

292,158

226,210

22,631

16,259

5,766

3,193

18,09913

The following table contains a summary of trade receivables by due dateafter the allowance for doubtful debts:(amounts inthousands of Euro)

as at
July 31Not
2017 overdue(unaudited)

Overdue (days)
1 ≤ 3031 ≤ 60 61 ≤ 90

91 ≤ 120≥ 121

Trade receivables
less allowance for
doubtful accounts

266,795

238,322

10,712

6,823

4,436

1,544

4,958

Total

266,795

238,322

10,712

6,823

4,436

1,544

4,958

(amounts inthousands of Euro)

as at
January 31
Not2017 overdue(audited)

Overdue (days)
1 ≤ 3031 ≤ 60

61 ≤ 9091 ≤ 120≥ 121

Trade receivables
less allowance for
doubtful accounts

285,504

225,905

22,613

16,259

5,766

3,193

11,768

Total

285,504

225,905

22,613

16,259

5,766

3,193

11,7689.

Inventories, net
as atJuly 312017(unaudited)

as atJanuary 31
2017(audited)

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

107,61336,853465,370(47,216)

103,679
26,368444,049(47,155)

Total

562,620526,941(amounts in thousands of Euro)

The inventory increased from Euro 526.9 million to Euro 562.6 million. The
difference of Euro 35.7 million consisted of Euro 21.3 million of finishedproducts and Euro 14.4 million of raw materials and work in progress. The
increase coincides with a retail restocking phase.
Movements on the allowance for obsolete and slow moving inventories areanalyzed as follows:(amounts in thousands of Euro)
Balance at January 31, 2017 (audited)
Exchange differences
Increases
Utilization
Balance at July 31, 2017 (unaudited)14

Rawmaterials

Finishedproducts

Total

25,676

21,47947,155

-

(73)
261
(127)

(73)
261
(127)

25,676

21,54047,216

10. Receivables from, and advance payments to, relatedparties – current
Receivables from, and advance payments to, related parties current are
detailed as follows:(amounts in thousands of Euro)

as at
July 312017(unaudited)

as atJanuary 31
2017(audited)

Prepaid sponsorship
Other receivables and advances

3,259
6,166

8,741
6,223

Receivables from and advances to related parties - current

9,425

14,964

11. Capital expenditure
Changes in the net book value of Property, plant and equipment in the period
ended July 31, 2017, are as follows:(amounts inthousands ofEuro)

Land andbuildings

Balance atJanuary 31,2017 (audited)

656,524

36,987

507,871

182,844

82,66875,790 1,542,684

3,465(8,128)(8)

4,446(3,893)(471)

22,872(57,708)
(155)

8,394
(17,468)
(202)

2,034
(5,285)(5)50,390-91,602(92,482)(841)(9,194)(47)(25,668)(7,594)(571)(2,177)(45,251)

13

323

22,6782,702

117(27,011)(1,178)--(2,570)(1,721)

(80)

(11)

(4,382)642,672

37,345467,320

166,955

78,878Additions
Depreciation
Disposals
Exchangedifferences
Other
movements
Impairment
Balance at July
31, 2017(unaudited)

Production Leasehold
AssetsFurniture
Other
plant and improveunder& fittings tangibles
machineryments
construction

15

Total net
carrying
amount96,981 1,490,151

Changes in the net book value of Intangible assets in the period ended July
31, 2017, are as follows:
Development
Assets Total net
costs andin carrying
otherprogress amountintangibles(amounts inthousands ofEuro)

TradeStore Lease
Goodwill
Softwaremarks
Acquisitions

Balance atJanuary 31, 2017
(audited)

248,444518,597

88,98625,09912,907

27,767

921,800

1,156(5,519)--(5,211)-

3,793(3,718)-418(1,403)-8,644-

14,011(15,851)-(1,656)(328)(2,089)

(15)

(1)

(22)

(4,111)

-

-

1

4,687

9

(4,633)

64

242,425

518,269

81,687

29,846

11,93031,756915,913Additions
Amortization
Disposals
Exchangedifferences
Other movements
Balance at July
31, 2017(unaudited)

12. Other current assets
as atJuly 312017(unaudited)

as atJanuary 31
2017(audited)

VAT
Income tax and other tax receivables
Other assets
Prepayments
Deposits

44,18374,082
23,88765,682
7,316

48,582
117,244
27,21855,676
4,655

Total

215,150

253,375

as atJuly 312017(unaudited)

as atJanuary 31
2017(audited)

Guarantee deposits
Deferred rental income
Pension fund surplus
Other long-term assets

68,986
14,0989,854
18,98777,007
16,807
10,233
19,314

Total

111,925

123,361(amounts in thousands of Euro)

13. Other non-current assets(amounts in thousands of Euro)16

14. Payables to related parties - current
as atJuly 312017(unaudited)

as atJanuary 31
2017(audited)

Financial payables
Other payables

4,524
534

4,934
608

Payables to related parties - current

5,058

5,542

(amounts in thousands of Euro)The financial payables due to related parties regard two interest-free loans
granted by the non-controlling shareholders of the Group’s subsidiaries in the
Middle East.

15. Trade payables(amounts in thousands of Euro)

as at
July 312017(unaudited)

as atJanuary 31
2017(audited)

Trade payables – third parties
Trade payables – related parties

266,962
9,768

241,901
14,193

Total

276,730

256,094

The following table contains a summary of trade payables by due date:as atJuly 312017(unaudited)

Not
overdue1 ≤ 3031 ≤ 60

61 ≤ 9091 ≤ 120≥ 121

Trade payables

276,730

251,090

13,618

3,315

1,064

734

6,909

Total

276,730

251,090

13,618

3,315

1,064

734

6,909

as at
January 31
2017(audited)

Not
overdue1 ≤ 3031 ≤ 60

61 ≤ 9091 ≤ 120≥ 121

Trade payables

256,094

221,125

15,884

4,670

2,955

582

10,878

Total

256,094

221,125

15,884

4,670

2,955

582

10,878(amounts inthousands of Euro)(amounts inthousands of Euro)

Overdue (days)

Overdue (days)

16. Other current liabilities
as atJuly 312017(unaudited)

as atJanuary 31
2017(audited)

Payables for capital expenditure
Accrued expenses and deferred income
Other payables

46,557
20,38665,50856,63918,63669,552

Total

132,451

144,827(amounts in thousands of Euro)17

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

Provision fortax disputes

Other
Provisions

Total

Balance at January 31, 2017
(audited)

1,788

24,90555,63082,323

Exchange differences
Reversals
Utilized
Increases

(43)
(351)
(2)
152

(96)
(51)
20

(3,462)(73)(2,665)
1,794(3,601)(475)(2,667)
1,966

Balance at July 31, 2017
(unaudited)

1,544

24,77851,22477,546(amounts in thousands of Euro)

Provisions represent the Directors’ best estimate of maximum contingent
liabilities at the reporting date. In the Directors’ opinion and based on theinformation available to them as supported by the opinions of independent
experts, the total amount provided for risks and charges is reasonableconsidering the liabilities that might arise. During the six months ended July
31, 2017, there were no significant developments regarding litigation ongoingat January 31, 2017. Moreover, no new contingencies requiring significant
adjustment to the provisions for risks and charges reported at July 31, 2017,
emerged.

18

Management Discussion and Analysis for the six months
ended July 31, 2017 (unaudited)
Distribution channels
Retail sales for the six months ended July 31, 2017 were Euro 1,177.1
million, down by 7.8% from the same period of 2016 (-8% at constantexchange rates). Thirteen stores were closed down in the six-month period (4Prada, 8 Miu Miu and 1 Church’s) and six new stores were opened (2 Prada, 2
Miu Miu and 2 Church’s).
Sales in the wholesale channel grew by 5.1% compared to the same period of
the prior year (+4.5% at constant exchange rates), mainly as a result ofhigher sales to franchisees and primary selected online retailers ("e-tailers").

Markets
The Asia Pacific market reported growth of 0.4% (-0.6% at constant exchange
rates). The Greater China region generated net sales of Euro 301.9 million,
up by 4.5% at current exchange rates and by 5.2% at constant exchange
rates, whereas other countries in the region experienced declines. Overall in
the region, sales increased for clothing and leather goods, whereas footwear
sales decreased.
Net sales in Europe fell by 7.7% at current exchange rates compared with thesame six-month period of the prior year (-6.6% at constant exchange rates).
The stronger Euro at the end of the period adversely affected tourist
spending. Clothing sales increased, whereas footwear and leather good sales
declined.
Net sales in the American market fell by 3.7% at current exchange rates (5.8% at constant exchange rates). The product trends in this market weresimilar to those reported for the European market.
Sales in Japan fell by 14.2% compared with the same period of last year
(same decrease at constant exchange rates). The sales in this region were
influenced by a decline primarily in local demand, but also in tourist
spending.
Net sales in the Middle East region, which suffered from a geopoliticalcontext unfavorable to tourism flows, fell by 11.7% at current exchange
rates (-13.1% at constant exchange rates).

Products
Sales of the clothing division rose by 4.3% overall (+4.1% at constantexchange rates), whereas the Miu Miu brand had double-digit sales growthcompared with the same six months of the prior year.
Sales of the leather goods division fell by 7.4% overall at current exchange
rates (-7.9% at constant exchange rates), with less decline for the Pradabrand.
Footwear sales fell by 9.7% at current exchange rates (-9.5% at constantexchange rates), with a trend similar to that of leather goods.
19Brands
The net sales of the Prada brand fell by 4.6% at current exchange rates (-5%at constant exchange rates). The Asia Pacific region reported sales in linewith those of the same period of last year, whereas the other regions had
lower sales.
Miu Miu net sales fell by 9.9% at current exchange rates (-10.2% at constantexchange rates). The decrease was affected by the closing down of 8 stores
during the period.
Net sales of the Church’s brand fell by 15% mainly as a result of the recent
restructuring of the distribution channel. The contraction was concentrated
in the European market.
The “other” brand category consists of sales of Marchesi 1824 brandpatisserie goods, whose growth is benefiting from the recent expansion plan,and of the Car Shoe brand, which presented a decline for the six-month
period.

Royalties
In the six months ended July 31, 2017, licensing agreements generated
royalty income of Euro 26.1 million, up by 4.7% from the same six-month
period of 2016. The increase was attributable largely to the success of the
new Prada fragrances.

Operating results
The gross margin for the six months ended July 31, 2017 was Euro 1,088.6
million, or 74.1% of net sales, up by 190 basis points from the same period of
the previous year. The profit margin improved as a result of a better sales
mix, in terms of the ratio of full-price sales to discounted sales, and theeffect of exchange rates.
The increase in operating expenses, net of exchange differences of Euro 3.7
million, was attributable primarily to an increase in advertising andcommunication activities, particularly with digital technology, and a higher
cost of labor regarding the aforementioned revision in 2016 of short-term
incentives. All other expense items were in line with those of 2016, a year inwhich the Group carried out an important cost reduction program.
EBITDA for the six months ended July 31, 2017 was Euro 279.6 million,
corresponding to 19.1% of net revenues, a dilution of 210 basis points
compared with the same period of last year.
EBIT for the six months ended July 31, 2017 was Euro 166.8 million, or 11.4%
of net revenues, compared with Euro 213.7 million, or 13.8% of net revenues,
for the same period of last year.
Finance costs benefited from a stronger Euro near the end of the period,
which resulted in the recognition of positive exchange differences on
financial items. The cost of bank debt, effectively eliminated by such
benefit, was nevertheless lower than that of the comparative period due toless average bank debt and lower interest rates.
20

The effective tax rate of 30% is in line with the same period of last year. The
benefit deriving from a lower Italian income tax rate was offset by the lessadvantageous geographical sources of income.
The Group’s net income for the six months amounted to Euro 115.7 million,
or 7.9% of net revenues.

Net invested capital
The following table contains the statement of financial position, as
reclassified in order to provide a better picture of the composition of Net
Invested Capital.
(amounts in thousands of Euro)

as at
July 312017(unaudited)

as atJanuary 31
2017(audited)

Non-current assets (excluding deferred tax assets)
Trade receivables, net
Inventories, net
Trade payables
Net operating working capital
Other current assets (excluding items of financial position)
Other current liabilities (excluding items of financial position)
Other current assets/(liabilities), net
Provision for risks
Post-employment benefits
Other long-term liabilities
Deferred taxation, net
Other non-current assets/(liabilities)
Net invested capital
Shareholder's equity – Group
Shareholder's equity – Non-controlling interests
Total Consolidated shareholders' equity
Long-term financial payables
Short-term financial, net surplus/(deficit)
Net financial position surplus/(deficit)
Shareholders’ equity and net financial position
Net Debt to Consolidated equity ratio

2,529,920
266,795
562,620(276,730)
552,685
244,992(194,043)
50,948(77,546)(60,215)(176,799)
203,369(111,191)
3,022,362(2,776,345)(22,590)(2,798,935)(529,428)
306,001(223,427)(3,022,362)
7.0%

2,599,620
285,504
526,941(256,094)
556,351
275,384(224,536)
50,848(82,323)(67,211)(187,322)
216,126(120,730)
3,086,089(3,080,502)(24,028)(3,104,530)(547,628)
566,069
18,441(3,086,089)
n/a

At July 31, 2017, the consolidated asset and financial structure was based on
net invested capital of Euro 3,022.4 million, financed by net debt of Euro
223.4 million and Group equity of Euro 2,776.4 million.
The Euro 69.7 million decrease in non-current assets, consisting primarily oftangible and intangible assets, was due mainly to the Euro 112.7 million
depreciation of the period and exchange differences of Euro 49.4 million,
net of capital expenditures of Euro 105.6 million. The expenditures included
Euro 63.6 million targeted to the retail network to finance numerous
projects to renovate store layout in order to further enhance the customer
experience. Other capital expenditures totaling Euro 42 million were allottedto the production and logistics structure and to information technology,
specifically to implement the omnichannel marketing strategy.

21

The net operating working capital at July 31, 2017 is Euro 552.7 million,
practically unchanged from January 31, 2017:---

trade receivables fell by Euro 18.7 million due to exchange
differences and differences occurred in the timing of collection ofsome receivable;
inventory rose by Euro 35.7 million, consisting of Euro 21.3 million forfinished products and Euro 14.4 million for raw materials and work inprogress. The increase coincides with a retail restocking phase;
trade payables rose by Euro 20.6 million, consistently with the
dynamics of the production cycle.

The other current assets (net) are practically unchanged from January 31,2017 because the Euro 30 million decrease in tax credits was offset by theclosing of derivative contracts, a decrease in investment debts and adecrease in payables due to employees.
The other non-current liabilities (net) fell by Euro 9.5 million, mainly as aresult of reduced risk provisions and long-term rent and deferred benefit
liabilities.
During the six-month period the Group paid Euro 307.1 million in dividends
to PRADA spa shareholders. The Group's equity was further reduced by Euro121.1 million as a result of the weakening of the major foreign currencies
against the Euro.

Net financial position surplus/(deficit)
as atJuly 312017(unaudited)

as atJanuary 31
2017(audited)

Bonds
Bank borrowing – non-current
Total financial payables – non-current(130,000)(399,428)(529,428)(130,000)(417,628)(547,628)

Financial payables and bank overdrafts - current(359,206)(151,211)

Payables to parent company and related parties
Total financial payables – current(4,524)(363,729)(4,934)(156,145)

Total financial payables(893,157)(703,773)

Cash and cash equivalents
Total financial receivables and cash and cash equivalents - current

669,730
669,730

722,214722,214

Total financial receivables and cash and cash equivalents

669,730

722,214

Net financial surplus/(deficit), total(223,427)

18,441

Net financial surplus/(deficit) excluding related party balances(218,904)

23,3750.37

n/a(amounts in thousands of Euro)NFP/EBITDA ratio

22

The cash flow generated by operating activities in the six-month period (Euro208.2 million) enabled to finance the capital expenditures of the period(Euro 105.6 million) and to contribute to the payment of dividends to PRADA
spa shareholders (Euro 307.1 million); the remaining portion of the dividends
was paid through the use of credit lines. The financial position, net of theaforementioned cash flows, was further reduced by Euro 40.6 million on
account of depreciation of the major currencies against the Euro.
In order to benefit from favorable financial market conditions, during theperiod PRADA spa stipulated a new long-term loan of Euro 200 million with
IntesaSanpaolo spa, which is still unused as of July 31, 2017. The total
amount of undrawn credit lines at July 31, 2017 is Euro 639 million.

Events after the reporting date
Nothing to mention.

Outlook
The complex task of restructuring all operating processes, which is aimed atproviding the Group with the tools needed to access an increasinglycompetitive market, is progressing well; however, more remains to be done.
Having one of the most recognized and most respected international brands,
with undisputed leadership in design and innovation, means the Group has tomake choices in the pursuit of growth that privilege the preservation of thecultural and stylistic fundamentals that the brand identity is based on.
The positive trends in Ready-to-Wear, which has been growing over manyseasons, are confirmed as well as in the new products in the Leather goods
segment, which have had an excellent reception in all markets. The Groupremains committed to creating a balanced offer in terms of price ranges.
The extensive overhaul of Prada Group’s cost structure creates operating
leverage that will allow the Group profits to benefit rapidly from revenue
growth. In the meantime, control over investments and net working capitalwill continue to protect cash generation.
The Group is confident that its action plan is the best way to return to steady
growth in revenues and margins, albeit aware that benefits may take longer
than expected. The Group’s cash flow and balance sheet remain solid,
allowing to focus on value creation for shareholders over a broad time
horizon.

23

Corporate Governance practices
The Company is committed to maintaining a high standard of corporate
governance practices as part of its commitment to effective corporate
governance. The corporate governance model adopted by the Company
consists of a set of rules and standards aimed toward 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 Corporate
Governance Code (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”).
Corporate governance practices adopted by the Company during the six
months ended July 31, 2017 (the “Reviewed Period”), are in line with thosepractices set out in the Company’s 2016 Annual Report and the Code.

Compliance with the Code
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 throughout the
Reviewed Period.

The Board
The Board of Directors of the Company (the “Board”) is responsible forsetting up the overall strategy as well as reviewing the operation andfinancial performance of the Company and the Group.
The Board has established the following committees with written terms ofreference, which are of no less exacting terms than those set out in the
Code:
1.
2.
3.

Audit Committee
Remuneration Committee
Nomination Committee

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 to discharge 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 and its internal
control and risk management systems, to oversee the external and internal
audit processes and the implementation of the Company’s risk management
functions and to perform other duties and responsibilities as are assigned to24the Audit Committee by the Board. During the Reviewed Period, the Audit
Committee held four meetings on March 1, 2017, April 6, 2017, April 12, 2017
and June 29, 2017, with an attendance rate of 92%, mainly to review withthe senior management, the Group’s internal and external auditors and theboard of statutory auditors, significant internal and external audit findings
and financial matters, as required under the Committee’s terms ofreference, and to make relevant recommendations to the Board. The Audit
Committee’s review covered the audit plan for the year 2017, the findings ofthe internal auditors, internal controls, risk assessment, annual review of theGroup’s continuing connected transactions for 2016, tax and legal updates(including litigations) and the financial reporting matters (including theannual results for the year 2016, before recommending them to the Board forapproval).
The Audit Committee also held a meeting on September 5, 2017 to update oninternal audit and risk management activities (attendance rate of 100%) andheld a meeting on September 8, 2017 (attendance rate of 67%) to review theinterim results for the period ended July 31, 2017, before recommending
them to the Board for approval.

Remuneration Committee
The Company has established a Remuneration Committee in compliance with
the Code. In compliance with Listing Rule 3.25, the Remuneration Committee
is chaired by an independent non-executive director and comprises of amajority of independent non-executive directors. The primary duties of theRemuneration Committee are to make recommendations to the Board on the
Company’s policy and structure for the remuneration package of directors
and senior management and the establishment of a formal and transparent
procedure for developing policies on such remuneration. The
recommendations of the Remuneration Committee are then put forward to
the Board for consideration and, where appropriate, adoption. The
Remuneration Committee consists of two independent non-executive
directors, Mr. Gian Franco Oliviero Mattei (Chairman) and Mr. Giancarlo
Forestieri, and one executive director, Mr. Carlo Mazzi. During the Reviewed
Period, the Remuneration Committee held two meetings on April 11, 2017
and June 29, 2017, with an attendance rate of 100% to review andrecommend certain updates to the long term incentive plan for executives
and Directors and to review the management by objectives plan for theCompany’s executives.

Nomination Committee
The Company has established a Nomination Committee in compliance with
the Code. The primary duties of the Nomination Committee are to determine
the policy for the nomination of directors and to make recommendations to
the Board on the structure, size and composition of the Board itself, on theselection of new Directors and on the succession plans for Directors. The
Nomination Committee also assesses the independence of independent nonexecutive directors. The recommendations of the Nomination Committee arethen put forward to the Board for consideration and, where appropriate,25

adoption. The Nomination Committee consists of two independent nonexecutive directors, Mr. Gian Franco Oliviero Mattei (Chairman) and Mr. Sing
Cheong Liu, and one executive director, Mr. Carlo Mazzi. During the
Reviewed Period, the Nomination Committee held one meeting on April 11,
2017, with an attendance rate of 100% to perform the annual review of the
independence of independent non-executive directors.

Supervisory Body
In compliance with the Italian Legislative Decree 231 of June 8, 2001 (the“Decree”), the Company has established a supervisory body whose primary
duty is to ensure the functioning, effectiveness and enforcement of theCompany’s Model of Organization, adopted by the Company pursuant to theDecree. The supervisory body consists of three members appointed by the
Board selected among qualified and experienced individuals, including
independent non-executive directors, qualified auditors, executives orexternal individuals. The supervisory body consists of Mr. David Terracina(Chairman), Mr. Gian Franco Oliviero Mattei and Mr. Paolo De Paoli.

Board of Statutory Auditors
Under Italian law, the Company is required to have a board of statutory
auditors, appointed by the shareholders for a term of three financial years,
with the authority to supervise the Company on its compliance with theapplicable law, regulations and the By-laws, as well as on its compliance withthe principles of proper management and, in particular, on the adequacy ofthe organizational, administrative and accounting structure adopted by theCompany and its functioning.
The board of statutory auditors of the Company consists of Mr. Antonino
Parisi (Chairman), Mr. Roberto Spada and Mr. David Terracina. The alternate
statutory auditors are Ms. Stefania Bettoni and Mr. Cristiano Proserpio.
During the Reviewed Period, the board of statutory auditors attended two
Board meetings of the Company on April 12, 2017 and June 29, 2017. They
also attended the Board meeting of the Company on September 8, 2017.

Dividends
The Company may distribute dividends subject to the approval of theshareholders in a general shareholders’ meeting.
No dividends have been declared or paid by the Company in respect of the
Reviewed Period.
On April 12, 2017, the Board of the Company recommended the payment of a
final dividend for the financial year 2016 of Euro/cents 12 per share in thecapital of the Company, representing a total dividend of Euro 307,058,880.
The Shareholders approved the distribution and payment of this dividend at
the shareholders’ general meeting of the Company held on May 31, 2017. The
dividend was paid on June 20, 2017.

26

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 as set out inAppendix 10 of the Listing Rules (the “Model Code”). Specific written
confirmations have been obtained from each Director to confirm his/hercompliance with the required standard set out in the Model Code and theCompany’s relevant procedures regarding directors’ securities transactions
for the Reviewed Period. There was no incident of non-compliance during the
Reviewed Period.
The Company has also adopted written procedures governing securities
transactions carried out by relevant employees who are likely to be inpossession of inside information in relation to the Company and its securities.
The terms of these procedures are no less exacting than the standard set out
in the 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 Reviewed Period.

Publication of Interim Results Announcement and Interim
Report
The interim results announcement of the Company is published on thewebsites of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk
and the Company at www.pradagroup.com. The interim report will beavailable on the same websites and dispatched to the shareholders of theCompany in due course.

By Order of the Board
PRADA S.p.A.
Mr. Carlo Mazzi
Chairman

Milan (Italy), September 8, 2017
As at the date of this announcement, the Company’s executive directors are Mr.
Carlo MAZZI, Ms. Miuccia PRADA BIANCHI, Mr. Patrizio BERTELLI and Ms. Alessandra
COZZANI; the Company’s non-executive directors are Mr. Stefano SIMONTACCHI and
Mr. Maurizio CEREDA and the Company’s independent non-executive directors are
Mr. Gian Franco Oliviero MATTEI, Mr. Giancarlo FORESTIERI and Mr. Sing Cheong
LIU.

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