March 4th 2 2025 FY-24 Results Presentation Milan, March 4th 2025 March 4th 1 2025 Disclaimer The information contained in this document is for information purposes only and does not constitute an offer, solicitation, invitation or recommendation to subscribe for or purchase any securities, or other products or to provide any investment advice or service of any kind. This document is not directed at, and is not intended for distribution to or use by, any person or entity in any jurisdiction or country where ...

Core Viewpoint - The fashion industry is grappling with the challenge of balancing spectacle with genuine sustainability efforts, as exemplified by Diesel's recent show and Prada's innovative collaboration with Axiom Space [1][2][3]. Group 1: Spectacle vs. Sustainability - Fashion shows often prioritize performative displays over substantive changes needed to address environmental issues, focusing on surface-level ideas while neglecting systemic problems like fast fashion and poor working conditions [3][4]. - The carbon footprint of international fashion events is significant, driven by travel and consumption promotion, which contradicts sustainability goals [4]. - The pandemic prompted a shift to digital fashion shows, but the industry has largely reverted to live events, sidelining virtual presentations [4]. Group 2: Innovations in Sustainable Fashion - The collaboration between Prada and Axiom Space highlights the potential for fashion to intersect with high-tech industries, using advanced materials designed for extreme conditions [5][7]. - Prada's efforts in sustainability include using recycled textiles and improving transparency, although it faces criticism for not meeting all sustainability goals [6]. - Innovations in materials, such as cooling textiles, are emerging to address climate change challenges, with the potential for everyday applications [7][8]. Group 3: Future Directions - The partnership between Prada and Axiom Space serves as a model for how brands can leverage high-profile projects to enhance their sustainability credentials while maintaining a fashionable image [8]. - The challenge remains to drive demand for sustainable innovations by making them appealing and fashionable to consumers [8].

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Financial Data and Key Metrics - Net revenues reached €2.55 billion, up 17% YoY at constant FX, with a negative FX impact of 330 basis points leading to a 14% increase at current exchange rates [43] - Retail sales grew 18% YoY to €2.26 billion at constant FX, with EBIT reaching €575 million, a 26% increase YoY, and EBIT margin expanding to 22.6% [43][3] - Net income increased by 26% YoY to €383 million, while CapEx for H1 2024 was €169 million, allocated to retail, IT, and industrial infrastructure [3] - Operating costs increased by 14% at constant FX, driven by client-facing initiatives and digital/IT investments, with G&A costs rising from 6.6% to 7% of revenue [2] Business Line Performance - Retail sales grew 18% YoY, driven by full-price like-for-like volumes, with wholesale up 8% and royalties increasing 28% [36] - Prada retail sales grew 6% YoY, with a 5% increase in Q2 despite tougher comparisons in Asia Pacific [110] - Miu Miu retail sales surged 93% YoY, contributing 23% of group retail sales, up from 14% in H1 2023 [87] - Church's also performed well, with a 15% increase in retail sales [87] Regional Performance - Asia Pacific retail sales grew 12% in H1, with Q2 up 8% despite tougher comparisons [1] - Europe saw an 18% increase in retail sales, with Q2 growth of 19% driven by strong local demand and tourism [1] - Americas retail sales grew 7%, with Q2 showing a sequential improvement of 9% [1] - Japan was the best-performing region, with retail sales up 55% in H1 and accelerating to 65% in Q2 [1] - Middle East retail sales grew 20% in H1, with acceleration in Q2 [1] Strategy and Industry Competition - The company reiterated its commitment to delivering sustainable, above-market growth, focusing on brand investment and agility in a challenging market environment [5] - Prada and Miu Miu are positioned to capture unique identities, with strong traction in ready-to-wear, footwear, and leather goods [85][87] - The company is investing in vertical integration and manufacturing capabilities, with €50 million allocated to industrial initiatives in H1 2024 [3] Management Commentary on Market Conditions - Management noted a more complicated environment in China, with easier trends in other regions, and emphasized vigilance and agility in navigating market challenges [7][15] - The company expects operating leverage to improve in H2, with moderated OpEx growth and continued focus on cost control [22][100] Other Key Information - The group maintained a solid balance sheet with a net cash position of €265 million as of June 2024 [37] - ESG initiatives progressed, with 80% of raw material suppliers engaged in sustainability programs and 70% of leather procurement covered by traceability systems [86] Q&A Summary Question: Demand in China and offsetting with Chinese spending abroad - Management noted no drastic changes in trends in July, with China becoming more complicated while other regions eased [7] Question: Miu Miu's operating margin compared to Prada - Miu Miu's profitability is improving significantly due to productivity gains, but reinvestment is needed to sustain growth [58] Question: Retail footprint and store openings - The company closed 10 Prada stores and 4 franchise stores in H1, with plans for marginal growth in store openings in 2025 [18][44] Question: Pricing strategy - Price increases in H1 were in the low single digits, with mid-single-digit increases expected for the full year [20] Question: OpEx leverage and EBIT margin expansion - Management expects more visible operating leverage in H2, with moderated OpEx growth and improved revenue growth [22] Question: Regional performance in Europe and Japan - Europe saw low double-digit growth in Q2, while Japan maintained strong performance with 65% local and 35% tourist sales [72] Question: Gross margin outlook for H2 - No major changes in industrial gross margins are expected, despite some FX headwinds [29] Question: Online business penetration - Online penetration is around 8-9%, with higher rates in the US, but the focus is on full potential rather than specific penetration levels [70] Question: Category performance and jewelry launches - Ready-to-wear and footwear showed strong traction, with leather goods also performing well [123] Question: Synergies between Prada and Miu Miu - The two brands are increasingly independent, with 80% of operations now separate, but Prada supports most of the shared infrastructure costs [127]

Core Viewpoint - Prada has experienced a significant price increase of 35% since November, with total returns reaching 37%, contrasting with previous concerns about slowing sales growth and luxury sector challenges [1][2]. Group 1: Financial Performance - The net revenue growth for the first nine months of 2023 was 12.4% YoY, but it slowed to 3.4% in Q3 2023 due to weakness in key markets, particularly the US [4]. - Full year 2023 sales grew by 13% at current exchange rates and 17% at constant exchange rates, with Q4 2023 showing an 18.1% growth [5]. - In Q1 2024, net revenues increased to €1,187 million, reflecting an 11% rise reported and a 16% increase at constant exchange rates [6]. Group 2: Competitive Positioning - Prada's growth outpaces most peers, with only Hermès showing similar double-digit growth of 13% YoY in Q1 2024 [7]. - In contrast, LVMH reported a revenue contraction of 2% in Q1 2024, while Richemont and Kering experienced declines of 1% and 11% respectively [8]. Group 3: Profitability - Prada's net profit grew by 44.2% in 2023, surpassing earlier expectations of 23%, with net margin increasing to 14.2% from 11.1% [10]. - Cost of goods sold and operating expenses grew at slower rates than revenues, contributing to improved profitability [11]. Group 4: Market Valuation - If revenue growth is sustained, projected net income for 2024 could reach €748 million (USD 808 million), resulting in a forward P/E ratio of 24.4x, slightly lower than previous levels [12]. - Prada's long-term forward P/E averages 32.1x over the past decade, indicating a potential 30% upside [14]. Group 5: Long-term Outlook - Prada has demonstrated resilience in the luxury market slowdown, with a five-year CAGR of 8.6% for revenues and 26.7% for net income, suggesting strong long-term potential [16].

Summary of Prada S.p.A. Q1 2024 Revenue Update Conference Call Company Overview - **Company**: Prada S.p.A. (OTCPK:PRDSY) - **Date of Call**: April 24, 2024 - **Participants**: CEO Andrea Guerra, CFO Andrea Bonini, and various analysts from major financial institutions Key Points Industry and Market Trends - 2024 is expected to show different market trends compared to previous years, emphasizing brand positioning and desirability [4] - The luxury goods market is experiencing a shift, with a focus on creativity and cultural influence [4] Financial Performance - **Total Group Retail Growth**: 18% in Q1 2024, driven by like-for-like sales [4] - **Net Revenues**: €1.187 billion, up 16% at constant FX compared to Q1 2023 [7] - **Retail Sales Growth**: - Prada brand: +7% [8] - Miu Miu brand: +89% [5][8] - **Geographical Performance**: - Asia-Pacific: +16% [9] - Europe: +18% [9] - Americas: +5% [9] - Japan: +46% [9] - Middle East: +15% [9] Brand Performance - **Prada**: Maintained strong desirability and cultural relevance, with growth across all product categories and geographies [4][8] - **Miu Miu**: Significant growth trajectory, regaining its position in the industry, with a balanced product category mix [5][8] Consumer Trends - Chinese consumers showed low double-digit growth in Q1, with a notable increase in spending abroad [16][37] - European consumers exhibited mid-single-digit growth, while North American consumers remained flat [16][37] Future Outlook - The company is optimistic about continued growth, with a focus on retail execution and consumer engagement [10] - Plans for modest store expansions in 2025: 10-15 new stores for Miu Miu and 5-10 for Prada [27] Investment and Infrastructure - Continued investment in brand desirability, marketing, and digital infrastructure is prioritized [28][29] - Focus on verticalization of brand organizations and improving operational efficiencies [28][29] E-commerce and Retail Metrics - E-commerce contribution is around 10% of total sales, returning to pre-COVID growth trajectories [64] - Miu Miu's retail metrics show improvements in store traffic, conversion rates, and customer retention [64] Challenges and Considerations - The company acknowledges the need for careful management of growth to avoid the pitfalls of being overly fashion-driven [48] - The dual listing remains on the agenda but is not a current priority due to other strategic focuses [54] Additional Insights - The performance of leather goods has been strong, with a noted increase in the share of iconic products [46][50] - The company is actively monitoring consumer behavior and adjusting strategies accordingly, particularly in response to tourism trends [33][34] This summary encapsulates the key insights and financial performance metrics discussed during the Prada S.p.A. Q1 2024 revenue update conference call, highlighting the company's strategic direction and market positioning.

Prada S.p.A. (OTCPK:PRDSY) Sales Call April 24, 2024 8:00 AM ET Company Participants Andrea Guerra - Chief Executive Officer and Executive Director Andrea Bonini - Chief Financial Officer Conference Call Participants Chris Huang - UBS Edouard Aubin - Morgan Stanley Chiara Battistini - JPMorgan Melania Grippo - BNP Paribas Erwan Rambourg - HSBC Louise Singlehurst - Goldman Sachs Thomas Chauvet - Citi Charles Louis Scotti - Kepler Cheuvreux Liwei Hou - CICC Chris Gao - CLSA Operator Good day, and thank you fo ...

Financial Data and Key Metrics Changes - Net revenues reached €4.7 billion, up 17% at constant exchange rates compared to fiscal year 2022 [10][50] - EBIT margin improved to 22.5% of revenues, up from 20.1% in fiscal year 2022 [26][51] - Net income increased by 44% to €671 million [27][28] - CapEx for fiscal year 2023 was €753 million, including a strategic real estate acquisition [27][28] Business Line Data and Key Metrics Changes - Retail sales increased by 17% year-on-year, driven by full price like-for-like sales [20][21] - Miu Miu reported outstanding performance with a 58% year-on-year growth, accelerating to 82% in Q4 [53][54] - Ready-to-wear was the fastest-growing category at 31%, followed by footwear at 18% and leather goods at 8% [54] Market Data and Key Metrics Changes - Asia-Pacific saw strong growth of 24% year-on-year, while Europe grew by 14% [23][24] - The Americas ended the year flat, with a slight improvement in Q4 [10][56] - Japan was the best-performing region, up 44% for the year [56] Company Strategy and Development Direction - The company aims to continue enhancing brand desirability through innovative products and marketing strategies [4][6] - Focus on retail excellence and selective wholesale approach to drive profitability [15][52] - Continued investment in sustainability initiatives, including a 58% reduction in Scope 1 and 2 greenhouse gas emissions [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining above-market growth rates despite potential challenges in 2024 [30][63] - The company anticipates a more linear growth path in 2024, with ongoing investments in innovation and product development [30][32] - Management noted the importance of adapting to changing consumer behaviors and market dynamics [16][30] Other Important Information - The company completed around 130 renovation and relocation projects, accounting for 80% of total retail CapEx [59] - The group retains a solid balance sheet with a net cash position of €197 million at the end of 2023 [28] Q&A Session All Questions and Answers Question: Insights on the beginning of the year and Chinese spending trends - Management noted that Chinese spending is recovering, with individual travelers becoming more prominent compared to group travel [66][72] Question: Contribution of price to sales and outlet strategy - Management confirmed that the contribution from factory outlets is now less than 10% and emphasized the strategic decision to close these outlets [71][72] Question: Performance of Miu Miu and its growth management - Management highlighted Miu Miu's growth as a result of a long-term strategy and emphasized the importance of maintaining a balanced approach to avoid overheating the brand [85][122] Question: Outlook for the US market and store openings - Management expressed optimism for the US market, indicating it could be a leading growth area in the coming years, with plans for strategic store openings [128][133] Question: Leather goods performance and consumer response - Management acknowledged strong consumer response to leather goods initiatives and emphasized the importance of balancing new launches with iconic products [140][147]

March 7th 1 2024 FY-23 Results Presentation Milan, March 7th 2024 The information contained in this document is for information purposes only and does not constitute an offer, solicitation, invitation or recommendation to subscribe for or purchase any securities, or other products or to provide any investment advice or service of any kind. This document is not directed at, and is not intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution or use wo ...

Prada, the designer fashion brand, saw its profits soar 44% higher in 2023, highlighting the luxury sector’s strong performance last year. Profits at the Italian group jumped to €671 million in the 2023 financial year, driven in part by the “exceptional momentum” of its Miu Miu brand. Sales at the bag and shoe brand rose 58% year-on-year, Prada revealed. Patrizio Bertelli, Prada chairman, said: “We are pleased with the strong results achieved in 2023, underpinned by our brands’ desirability. “The Group deli ...