PRESS RELEASEPRADA SPA APPROVES GROUP RESULTS AS OF 31 DECEMBER 2019

Milan, 18th March 2020 - The Prada S.p.A. Board of Directors held today reviewed and approved theConsolidated Financial Results for the Full Year 2019, ended 31 December 2019.

Introduction
The strong growth seen in H2 and up to the end of January 2020 has been interrupted by theCoronavirus outbreak. This unprecedented sanitary emergency is affecting our operational activities
and threatening people’s health, which is our main priority. All efforts are now dedicated to overcome
this contingency. At the same time, the Prada Group prepares to capture the recovery when it arises
and to continue its growth trajectory.

Key Highlights

Long-term business transformation strategy and brand investment delivering improving
results with second half of 2019 showing a strong reboundAcceleration in full price sales in H2 for Prada and Miu Miu brands across all markets andcategories
Completed mark down phase out
More stringent policies to better control digital platforms
Brand heat flourishing driven by creative communications and environmentally driven
initiatives
Appointment of Raf Simons as co-creative director at Prada to reaffirm the Group’s creativity
and radical vision

Key numbers

Net Revenues at Euro 3,226 million up 3% at current FX and flat at constant FX
Retail sales up 4% at current FX, +2% at constant FX. Full price sales, reaching double
digit growth in H2, more than offset sharp reduction in markdowns
Wholesale sales down 3% at current FX, down 4% at constant FX in line with the guidance
EBIT at Euro 307 million, 9.5% of revenues
Net Income at Euro 256 million benefiting from the Patent Box relief
Net Financial Position at Euro -406 million
Operating cash flow at Euro 362 million

2019 marked a year of significant progress for the Prada GroupThe strategy of investing in the distinctive values and identity of the Group brands has beensuccessfully translated into strong growth in full price sales, which saw a double digit increase in thesecond half of the year overall and accelerated further in the final quarter.
Buzz around the brands is growing driven by creative communications and initiatives focused onsustainability, now an essential part of our business strategy.
Raf Simons’ appointment as co-creative director reaffirms innovation as a quintessential facet of
Prada’s identity.

Transformation strategy evident in sales by channels
The phase out of seasonal markdowns affected the retail trend by mid-single digit throughout 2019.
The significant cut in allocation to wholesale, starting from the S/S 2020 collection, meant thatwholesale channel sales were down 4% year on year.
Both these strategic decisions were aimed at ensuring the preservation of brand exclusivity and thevalue of Group products.
The market reaction was very positive: full price sales increased 6% year on year, which offset thenegative impact of ending markdowns and reducing wholesale allocation.
The progress in the second half was visible: +10%, reaching +15% growth in Q4.

Retail improvement across all geographies
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Europe +6% at current FX, including a strong improvement in H2 driven by locals and tourists
America +11% at current FX, largely supported by local customers
APAC -2% at current FX, negatively impacted by protests in HK SAR. Excluding HK, retailsales were up 5% at current FX. Momentum of full price sales accelerated in H2, reaching
double digit growth (excluding HK), with outperformance in South Korea and in Mainland
China
Japan +9% at current FX, with solid regular sales across the semester notwithstanding VAT
increase in OctoberMiddle East -1% at current FX, showing positive full price sales throughout the year

Creativity in products and communication boosting brand heat and consumer excitement
The continuous investment in creativity and enhancement of communications and marketing efforts
dedicated to create new emotional connections and experiences with the brands, delivered improving
results for Prada and Miu Miu in all product categories. Moreover, both Prada and Miu Miu achieved
double-digit increases in full price sales in H2, with new collections very well received across markets
and categories, supported by online and in-store initiatives.
Following on from trends witnessed in the first half of the year, Ready-to-wear sales grew by 12% atcurrent FX, driven by double-digit full price sales across all geographies.
Footwear and leather goods also showed improving growth: Leather goods grew by 2% at current
FX, including healthy full-price sales in H2 supported both by iconic lines and newness; Footwear
grew by 2% at current FX, including double digit full price sales in H2, sustained by the ongoingstrong demand for sneakers and lifestyle collections.

Business transformation strategy and sales rebound supporting key financial metrics – (FullYear 2018 non IFRS 16)
EBIT amounted to Euro 307 million, 9.5% of revenues (Euro 324 million, 10.3% in 2018)
Net income amounted to Euro 256 million, 7.9% of revenues benefitting from the Patent Box tax relief
relating to the 2015-2019 years (Euro 205 million, 6.5% in 2018)
During the period, the Group generated operating cash flow of Euro 362 million (Euro 365 million in2018)

Capital expenditures throughout the period were mainly towards Retail and amounted to Euro 302
million (including the acquisition of a retail property in Madrid)
Net Financial Position at Euro -406 million, following a Euro 154 million dividend payment during theperiod.
The Board of Directors has proposed to the General Meeting to distribute a dividend of Euro 2 centsper share.

Patrizio Bertelli, Prada Group CEO, commented: “2019 has been a year of strong progress. The
combination of investment and operational initiatives implemented over the past few years are now
clearly translating into brand heat and sales. We are sure that our commitment to guarantee
outstanding quality standards as well as strengthening brand desirability has been the right choice tosupport profitable and sustainable long-term growth.
The start of 2020 has been very buoyant for the Prada Group; the Coronavirus outbreak hasinterrupted our growth trajectory. This is a huge and unprecedented event that will draw deeply on oursense of responsibility. Our full concern and support go to the people that are facing these toughtimes. The safety and the well-being of our colleagues as well as of our customers all over the world
are of the greatest importance to us and we will do everything we can to help overcome this crisis
together.
Although it is difficult to forecast the evolution of the epidemic, we are expecting a negative impact on
this year’s results and we are implementing a comprehensive contingency plan to mitigate it, relying
on our flexible supply chain and lean organization.
The soundness of our financial structure gives us the confidence to overcome this exceptional
moment and to be ready to capture the recovery when it arises.”

For further information:
Prada Press Office+39 02 541921
www.pradagroup.com

Prada Group
Prada S.p.A. is a global leader in the luxury goods industry. The Group, which owns the Prada, Miu Miu,
Church’s and Car Shoe brands, produces and distributes luxury leather goods, footwear and apparel benefittingfrom a supply chain which includes 22 company-owned industrial sites. It also operates in the food sector withMarchesi 1824 and in the eyewear and fragrance industries under licensing agreements.
The Group employs nearly 14,000 people and its products are sold in 70 countries worldwide through 641 directly
operated stores as of December 31, 2019 and in a selected network of multi-brand stores and department stores.
The Prada Group is synonymous with innovation, transformation and independence and it is committed topromote a business culture oriented towards sustainability. These principles offer its brands a shared vision inwhich they are able to express their essence.
The company is listed on the Hong Kong Stock Exchange as 1913.HK.