annual report prada store galleria vittorio emanuele milano prada store dallas northpark center prada group financial review directors senior management directors report corporate governance consolidated financial statements prada separate financial statements notes consolidated financial statements independent auditor reports overview chapter overview overview message stakeholders marks another year progress prada group pleased results delivered world geopolitical instability new normal despite challenging sector dynamics continued generate market growth improved profitability validating strategy execution results underscore strength brands draws relentless focus quality innovation together industrial know continue enrich pass young generations thanks work prada group academy manufacturing platform rooted vertical integration longstanding relationships suppliers partners continue differentiator ever evolving sector demands quality agility efficiency innovative mindset ability read contemporaneity distinctive elements nurture creative dynamism characterising products strategic vision strong link culture desire broaden boundaries always animated spirit group think instance prada rong zhai historical villa heart shanghai restored renovated blending aesthetics extraordinary heritage chinese culture today building hosts multidisciplinary venue soon enriched new experiences public could mentioning luna rossa participation america cup resulted victory women youth teams design new nasa spacesuit partnership axiom space finally would like thank people results achieved year looking forward remain confident group ability continue grow evolve drawing values discipline rigour fostering talents within organisation patrizio bertelli chairman board executive director annual report farewell delivering set solid results brands continue carve cultural landscape creating ever evolving language interpret contemporaneity ability read spirit time key long term growth journey looking ahead recognising sector dynamics remain complex continue see opportunities brands committed ever execute strategy message ceo overview pleased report set solid results testament strength strategy represent another step forward journey laid group brands macroeconomic environment challenging sector dynamics certainly become complex brands demonstrated resilience thanks dynamic creativity polyhedric soul achieved four consecutive years double digit growth net revenues reach euro billion underlying result healthy performance retail channel yoy driven full price volumes prada confirmed positive growth trajectory miu miu gained whole new level visibility scale context ongoing investments behind brands delivered margin expansion ebit margin reaching steadfast progress also made strategic investment plan deployed close euro million retail industrial initiatives technology continue instrumental growth tomorrow finally closed year healthy balance sheet net cash position euro million live times borders blurring brands must embrace multidisciplinary conversations bringing table ever evolving language interpret contemporaneity ability read spirit time essential prada miu miu continued carve cultural landscape building universe way engage customers immersive events exclusive experiences improved retail network provided brands powerful dimensions express distinctive identities connect communities proud achieved far recognise time work even harder capitalise efforts past years fostering desirability long term mindset raising bar higher retail execution striving excellence parallel shall continue elevate retail network strengthen industrial infrastructure building years investments know reinforcing foundations journey aware sector headwinds likely persist least little longer nonetheless continue see opportunities brands committed ever execution strategic vision always keeping mind primary important objective creating products worth dreaming longing falling love andrea guerra chief executive officer executive director annual report brands employees factories italy key business figures overview euro euro euro euro euro euro revenues retail sales group net income net operating cash flow net financial position ebit growth constant exchange rates growth constant exchange rates growth current exchange rates ebit margin growth current exchange rates brands employees factories italy key business figures europe americas asia pacific middle east japan retail footprint directly operated stores worldwide net revenues channel retail sales geography royalties wholesale retail retail sales brand church others miu miu prada middle east japan americas apac europe chapter prada group prada group prada group global leader luxury industry pioneer unconventional dialogue contemporary society across diverse cultural spheres home prestigious brands prada miu miu church car shoe marchesi luna rossa group remains committed enhancing value increasing visibility desirability time promoting creativity sustainable growth group offers brands shared vision gives opportunity stand express essence owned factories employees group designs produces ready wear leather goods footwear jewellery collections distributes products countries directly operated stores dos commerce channels selected tailers department stores prada group also operates eyewear beauty sectors licensing agreements industry leaders prada listed hong kong stock exchange group purpose values thorough observation curiosity world around always heart creativity modernity prada group society thus fashion somehow reflection constant change transformation innovation references core evolution lead interact different cultural disciplines times apparently far allowing capture anticipate spirit times today longer enough must drivers change flexibility required translate demands market society tangible actions inform way business miuccia prada patrizio bertelli prada group prada group purpose driver change planet people culture company values think rules synonymous innovation transformation independence prada group provides brands shared vision fearlessly challenging norms perceptions group embraces contradictions innovative tradition rooted century history group propelled unique spirit research innovation prada heritage combines unrivalled production know expertise spirit excellence prada group people constantly seeking perfection pursuing excellence refining surpassing previous achievements uniqueness talents passion curiosity attention detail expertise distinctive qualities everyone working prada inclusive work environment encourages cooperation intellectual vitality ability interpret evolving nature society beyond boundaries drawing inspiration art philosophy cinema group establishes bold connections broaden perspectives enable emergence unexpected ideas solutions sustainable paths sustainability core group corporate strategy value creation model operates harmony places people enables group contribute contemporary societal cultural debates prada fashion show annual report prada obtained title official supplier italian royal family since prada able display house savoy coat arms knotted rope design trademark logo prada group history fratelli prada founded milan mario prada renowned use premium materials sophisticated craftsmanship company swiftly gained popularity across europe soon opened store milan galleria vittorio emanuele mario prada granddaughter miuccia prada began collaboration entrepreneur patrizio bertelli founder leather goods company prada opened second store milan showcasing brand new image concept dominated special shade light green became known prada green green stores soon followed new york madrid london paris tokyo patrizio bertelli founded ipi concentrate production resources built previous years business leather goods industry year ipi obtained license miuccia prada exclusive production distribution prada brand leather goods following years two family businesses gradually merged single group response demand prada leather goods range expanded include first women footwear collection prada first women clothing collection launched milan prada group prada entered licensing agreement luxottica world leading eyewear company currently produces distributes prada miu miu eyewear miu miu landed paris fashion week fall winter collection travelling world presenting collections new york london milan prada made debut menswear miu miu founded experimental alternative expression miuccia prada personal vision miuccia prada patrizio bertelli founded fondazione prada prada group acquired classic english footwear brand church founded symbol british handcraft tradition sophisticated elegance first prada epicenter store designed rem koolhaas opened new york first series stores created redefine concept shopping second epicenter store inaugurated aoyama tokyo followed third one rodeo drive beverly hills year prada also acquired car shoe classic italian footwear brand founded known iconic driving loafers prada challenge sailing team founded compete america cup prada launched linea rossa activewear collection launch prada phone world first touchscreen mobile phone prada partnership achieved success new models prada successfully listed hong kong stock exchange prada luna rossa sailing team challenger selection series america cup auckland new zealand annual report raf simons joined miuccia prada creative director prada design office italian custom agency recognized prada authorized economic operator aeo full prada luna rossa sailing team america cup challenger selection series prada cup second time group founded aura blockchain consortium lvmh cartier andrea guerra announced new group ceo new group wide code ethics human rights policy implemented prada launched eternal gold first jewellery collection made recycled gold prada group announced adoption fur free policy brands joined fashion pact set diversity inclusion advisory council well launching first collection made recycled nylon prada nylon prada officially unveiled factory valvigna designed guido canali architect group pioneering garden factories extended fashion season present pre collections paris new york prada group introduced first miu miu fragrance partnership multinational beauty company coty opened second marchesi location milan acquired historic milanese patisserie year prada admitted cooperative compliance regime italian tax authorities introduced italian law decree prada group following innovative single dose skincare prada reaffirmed presence beauty sector new line make skincare first prada caffè opens london miu miu oreal signed worldwide licence agreement luxury beauty products group continued strengthen manufacturing capabilities unveiling new knitwear factory torgiano umbria prada presented new lunar spacesuits designed partnership axiom space nasa artemis iii mission luna rossa prada pirelli battled america cup competitions reserved youth women sailing teams lunar spacesuits prada axiom space annual report group brands prada group constantly works enhance value brands fostering visibility desirability prada since prada synonymous cutting edge style intellectual universe combines concept structure image codes beyond trends fashion transcends products translating conceptuality universe become benchmark dare challenge conventions collections today prada embodies spreads vision intellectual curiosity creative directors miuccia prada raf simons miu miu miu miu founded experimental alternative subversive expression miuccia prada singular vision designer distinctive interpretation decoding world today understanding culture depth research brand driving force miu miu immediate instinctive irreverent light always sophisticated touch miu miu leads fashion representing courage take risks razor sharp instinct respond shifts contemporary fashion culture church church handcrafted shoes represent timeless elegance artisanal quality history dating back church combines finest leather superb craftsmanship impeccable english style redefining contemporary luxury centuries old tradition car shoe since car shoe known iconic loafers rubber studs deconstructed soles stemming passion race cars fine handmade shoes timeless accessory become part common imagery travel motors marchesi pasticceria marchesi milanese icon since renowned elegant ambience impeccable service exceptional patisserie locations include historic via santa maria alla porta via monte napoleone galleria vittorio emanuele milan store london mayfair luna rossa luna rossa italian sailing team competed six america cup starting going beyond definition team luna rossa represents highest expression sportsmanship technological innovation whose project throughout years hearts italians sailing enthusiasts around world prada group advertising campaign miu miu holiday style design product development collection orders production sourcing distribution fashion shows showroom presentation sales campaign quality control worker safety direct distribution indirect distribution business model success prada group brands based business model combines skilled heritage craftsmanship innovative industrial manufacturing processes enables group translate new ideas successful products retaining flexibility control know quality sustainability standards well production prada group creativity miuccia prada intellectual curiosity constant pursuit new ideas unique understanding interpretation culture society underpin prada group creative process singular vision made possible establish genuine design culture based method discipline guides everyone contributes group creative development appointment raf simons alongside miuccia prada creative director prada brand produced new creative dynamic reiterating importance power dialogue cooperation constant experimentation idea sharing essential components design process time spent drawing board testing room research development fundamental creating collection prada group creative spirit continues attract talented people world raw materials production process group manufacturing approach built two pillars continuous innovation advances skills expertise deep commitment craftsmanship vital production value brand quality raw materials fundamental product excellence often fabrics leathers custom made group brands meeting strict technical style specifications ensure superior quality group products crafted owned industrial facilities italy france romania network carefully selected monitored industrial manufacturers supplied raw materials patterns prototypes group allowing close oversight every stage production approach designed achieve outstanding workmanship provide considerable flexibility production organization product quality gives group competitive edge reinforced continuous research experimentation materials techniques investments along supply chain workforce also play crucial role significant number company production employees prada group many years ensuring high level expertise annual report deep organizational knowledge prada group academy company committed passing manufacturing techniques craftsmanship future generations thus preserving values heart corporate heritage distribution years prada group strategically evolved distribution network include dos key prestigious international shopping destinations enhancing image brand stores sell products act vital ambassadors conveying brand image consistently clearly effectively continuously updated group extensive network stores remains cornerstone company strategy showcasing new collections anchoring omnichannel approach commerce platforms complement physical stores offering dynamic integrated shopping experience group deep interest architecture reflected number revolutionary retail concepts developed leading architectural firms rem koolhaas herzog meuron unique stores known epicenters located new york los angeles tokyo also host cultural debates events recent years group selectively streamlined wholesale channel includes department stores multi brand stores franchisees tailers ensure maximum quality partners focused approach image communication essential prada group communication beyond commercial objectives involve stakeholders brands ideas values consistent strong image line identity brand central group strategy fashion shows advertising campaigns media coverage main platforms presenting brands gaining visibility among international audiences industry critics group leverages social networks brand commerce sites corporate website digital platforms direct immediate engagement audience brands innovative extraordinary special events another important communication tool group enabling direct interaction consumers different local markets moreover luna rossa participation prestigious america cup since significantly increased prada visibility international sporting community helping build brand credibility activewear enhancing technological expertise advertising campaign prada leathergoods annual report sustainability prada group strategic choices always guided desire achieve success also benefit stakeholders shareholders employees customers communities group operates time sustainability progressively integrated group business model operations together continuous transparent dialogue stakeholders sustainability become key strengthening group identity competitive edge prada group developed sustainability strategy based three pillars planet people culture consolidate commitment issues set medium long term goals sustainability landscape changing rapidly resulting risks opportunities business sustainability strategy evolving improved updated constantly order respond needs expectations group stakeholders changing market conditions operates order meet current future challenges ensure long term sustainable development across entire value chain prada group also strengthened esg governance particular establishing sustainability committee early plays active advisory role assists board directors assessing making decisions sustainability issues group publishes annual sustainability report communicates progress sustainability roadmap sustainability report prepared accordance gri standards planet planet pillar sets goals reducing environmental impact including targets approved science based targets initiative sbti reduction scope greenhouse gas emissions extensive use alternative low impact materials finished products packaging circular approach materials used production purposes shows events people pillar includes initiatives promote enhance diversity equality inclusion foster inclusive culture based respect individual levels organisation also includes long term investment plan preserve craftsmanship develop new talent positioning prada group beacon excellence new generations respect protection group employees another key element along greater monitoring employee engagement levels improve personal professional wellbeing prada industrial headquarter valvigna terranuova bracciolini architect guido canali annual report culture culture pillar reflects group ongoing commitment preserving sharing italian international cultural heritage well supporting nature science highlights group important ongoing role educator promoter new ideas miuccia prada patrizio bertelli passion art culture inspired group support multidisciplinary activities fondazione prada present first two decades activity fondazione prada commissioned utopian projects monographs italy abroad recognized international figures well established emerging artists since undertaken research studies subjects previously unexplored conferences philosophical nature exhibitions architecture initiatives focused cinema vast network collaborations artists curators scientists scholars filmmakers architects musicians intellectuals offering extensive cultural program within three italian venues two milan one venice opened respectively well shanghai tokyo new york since establishes dialogue international plural audience fondazione prada fosters participation inclusivity embracing multiplicity identities sensibilities paradigms raised communities individuals particular attention paid youth development series projects conceived children students well educational exhibition activities created collaboration italian international schools universities research centers fields visual arts science humanities fondazione prada external entity prada group collaboration two parties active form sponsorship sea beyond kindergarten lagoon courtesy ioc unesco annual report prada group structure prada milan holding manufacturing distribution services retail artisans shoes montegranaro production ipi logistica milan services tannerie limoges sas isle production hipic prod impex sibiu production figline milan production les femmes porto elpidio production filati biagioli modesto montale production conceria superior santa croce sull arno production luigi fedeli figlio monza production church ltd northampton manufacturing services church hong kong retail ltd hong kong dormant church footwear ltd northampton trademarks church retail ltd northampton liquidation church germany gmbh münich liquidation prada trading shanghai ltd shanghai dormant prada fashion commerce shanghai ltd shanghai retail taipei branch taipei retail prada dongguan trading ltd dongguan services prada macau ltd macau retail prada saipan llc saipan retail prada philippines inc manila retail prada asia pacific ltd hong kong services retail prada taiwan ltd hong kong retail prada australia pty ltd sydney retail prada korea llc seoul retail prada singapore pte ltd singapore retail prada retail malaysia sdn bhd kuala lumpur retail prada thailand ltd bangkok retail prada new zealand ltd wellington retail prada japan ltd tokyo retail prada vietnam limited liability company hanoi retail post development corp new york real estate prada canada corp toronto distribution retail prada usa corp new york distribution services retail prada guam llc guam retail prada retail mexico mexico city retail prada brasil importação comércio artigos luxo ltda são paulo retail prada panama panama dormant prada retail aruba oranjestad retail prada saint barthelemy sarl gustavia retail prada usa cafe corp new york dormant pelletteria scandicci terranuova dormant effepì senigallia production prada group prada retail france sas paris retail prada belgium sprl brussels retail prada monte carlo sam monaco retail prada austria gmbh vienna retail prada germany gmbh munich retail services prada sweden stockholm retail kenon ltd london real estate prada czech republic sro prague retail prada portugal unipessoal lda lisbon retail prada switzerland lugano retail prada denmark aps copenhagen retail prada bosphorus deri mamüller ltd sirketi istanbul retail prada netherlands amsterdam retail prada spain madrid retail prada retail ltd london retail ireland branch dublin retail prada san marino falciano retail prada norway oslo retail prada hellas sole partner llc athens retail prada rus llc moscow retail prada ukraine llc kiev retail prada kazakhstan llp almaty retail prada retail south africa pty ltd sandton dormant prada emirates llc dubai retail prada middle east fzco jebel ali free zone dubai distribution services prada kuwait wll kuwait city retail prada retail wll doha retail prada saudi arabia ltd jeddah retail prada luxembourg trademarks swiss branch lugano services luna rossa challenge grosseto management sailing team luna rossa challenge barcelona management sailing team spanish branch barcelona services marchesi milan food beverage branch london food beverage prada bahrain wll manama retail annual report prada corporate information registered office head office place business hong kong registered part hong kong companies ordinance company corporate website hong kong stock exchange identification number share capital board directors audit risk committee via fogazzaro milan italy via fogazzaro milan italy floor one taikoo place king road quarry bay hong kong www pradagroup com euro represented shares euro patrizio bertelli chairman board executive director paolo zannoni executive deputy chairman board executive director andrea guerra chief executive officer executive director miuccia prada bianchi executive director andrea bonini chief financial officer executive director lorenzo bertelli executive director yoël zaoui lead independent director independent non executive director marina sylvia caprotti independent non executive director cristiana ruella independent non executive director pamela yvonne culpepper independent non executive director anna maria rugarli independent non executive director yoël zaoui chairman cristiana ruella anna maria rugarli prada group remuneration committee nomination committee sustainability committee board statutory auditors organismo vigilanza supervisory body italian leg decree main shareholder company secretary authorized representatives hong kong alternate authorized representative patrizio bertelli hong kong hong kong share registrar external auditor anna maria rugarli chairwoman paolo zannoni yoël zaoui cristiana ruella chairwoman lorenzo bertelli pamela yvonne culpepper pamela yvonne culpepper chairwoman lorenzo bertelli anna maria rugarli roberto spada chairman maria luisa mosconi patrizia arienti stefania chiaruttini chairwoman armando simbari roberto spada prada holding corso italia milan italy wendy pui ting tong floor one taikoo place king road quarry bay hong kong patrizio bertelli via fogazzaro milan italy wendy pui ting tong floor one taikoo place king road quarry bay hong kong annie man wai floor one taikoo place king road quarry bay hong kong computershare hong kong investor services limited shops floor hopewell centre queen road east wanchai hong kong deloitte touche via santa sofia milan italy financial review chapter financial review basis preparation board director financial review refers group companies controlled prada prada company operating parent company prada group group prada group financial review read conjunction consolidated financial statements related explanatory notes integral part thereof tables reported financial review prepared accordance measurement classification criteria international financial reporting standards ifrss issued international accounting standards board iasb adopted european union non ifrs measures also used within financial review order represent financial aspects period management perspective consolidated statement profit loss includes non ifrs measures amounts thousands euro twelve months ended december net revenues twelve months ended december net revenues change change net sales royalties net revenues cost goods sold gross margin product design development costs advertising communications costs selling costs general administrative costs total operating expenses operating income ebit interest financial income expenses net interest expenses lease liabilities dividends investments total financial expenses income taxation taxation net income year net income non controlling interests net income group annual report key financial information key economic indicators amounts thousands euro twelve months ended december twelve months ended december net revenues ebit incidence net revenues net income group earnings per share euro net operating cash flow non ifrs measure equal earnings interest taxation non ifrs measure equal net cash flow operating activities less repayment lease liabilities key financial position indicators amounts thousands euro december december net operating working capital net invested capital right use assets included net financial surplus group shareholders equity non ifrs measure equal sum trade receivables net inventories net trade payables non ifrs measure equal sum total consolidated shareholders equity lease liabilities net financial surplus non ifrs measure equal short term long term financial payables due third parties related parties net cash cash equivalents short term long term financial receivables due third parties related parties highlights prada group reports another year sound results solid progress evolutionary journey high brand desirability disciplined execution drove positive trajectory revenue margins group net revenues grew constant exchange rates compared well market performance marking four consecutive years double digit like like growth brand level prada confirmed solid growth trajectory retail net sales months miu miu retail net sales grew record year brings brand new level visibility scale ebit margin showed expansion coupled substantial investments behind brands group closes year net cash position euro million reflects capex cash euro million prada brand continued carve cultural landscape leveraging distinctive identity polyhedric dna creative dialogue translated acclaimed menswear womenswear fashion shows consistent like like growth trajectory supported well balanced category mix leather goods offering enriched good reception newness ongoing celebration icons creative dynamism continued generate high appreciation ready wear collections signature events collaborations fostered brand multifaceted universe highlighting cultural relevance unconventional activations exclusive venues elevated customer experience worldwide enriched brand narrative miu miu irreverent subversive aesthetics continued captivate audience kept brand financial review spotlight cementing positioning immediate instinctive creativity drove widespread appreciation across categories regions new ongoing exclusive collaborations continued resonate reach new audiences miu miu deep connection culture resulted artistic collaborations special events fueled contemporary debate distinctive voice reckoned brand fashion shows increasingly featured crossovers various artistic disciplines offering new layer reflection contemporary society good progress church strategic efforts past years continued keep brand positive topline trajectory upgrade retail network remained key area effort focus group completed renovation relocation projects year line strategic objective elevating customer experience following openings closures period group ends year directly operated stores steadfast progress also made group digital transformation plan aimed enhancing technology capabilities across wide spectrum activities industrial front group kept investing enrichment manufacturing skills expanding production premises recent enlargement torgiano hub unveiled may testament group commitment create well rounded facilities craftmanship heritage meet agility innovation efficiency plant also hosted new edition prada group academy september organisation maintains pledge preserve tradition know across generations group also continued execute sustainability strategy across pillars planet people culture working climate change remains key focus progress made reducing ghg emissions thanks constant investment green energy launch ambitious raw materials conversion plan towards lower impact solutions scope work expanded year include understanding impact group upstream value chain main dimensions biodiversity group purpose drivers change shaped people agenda strong focus inclusion equality achieving female representation top senior management positions defining new global parental policy also promote work life balance culture pillar continues distinctive group reaffirmed strong commitment water conservation funding multiple activities support sea beyond project annual report analysis net revenues amounts thousands euro twelve months ended december twelve months ended december change current exc rates change constant exc rates change constant exc rates net revenues retail net sales directly operated stores commerce wholesale net sales independent customers franchisees royalties total net revenues retail net sales brand prada miu miu church total retail net sales retail net sales geographic area asia pacific europe americas japan middle east total retail net sales calculated excluding effect hyperinflation turkey comments growth percentages constant exchange rates unless differently specified prada group generated net revenues euro million twelve months ended december compared exchange rate fluctuations reduced growth twelve months retail net sales increased period driven full price like like sales strong consistent performance fourth quarter yoy period retail net sales accounted total net revenues therefore line level december group operated stores following openings closures period sales wholesale channel rose compared corresponding period controlled evolution independent wholesale line group strategy increase duty free stores channel royalty income grew compared driven contribution eyewear fragrances number stores december december december owned franchises owned franchises owned franchises prada miu miu church car shoe marchesi total financial review december december december owned franchises owned franchises owned franchises europe asia pacific americas japan middle east total brands prada retail net sales increased year showing solid growth driven full price like like sales fourth quarter accelerating third quarter miu miu reported remarkable organic performance twelve month period yoy strong growth across regions product categories net revenues brand amounted euro million prada euro million miu miu euro million church euro million brands amounts thousands euro twelve months ended december twelve months ended december change current exc rates change constant exc rates change constant exc rates net revenues brand prada miu miu church total net revenues calculated excluding effect hyperinflation turkey annual report markets period group delivered double digit growth asia pacific europe japan middle east americas reported high single digit growth sequential improvement year asia pacific retail net sales rose despite challenging market conditions region broad base improvement fourth quarter europe retail net sales rose consistent growth supported demand local clients tourists americas retail net sales rose entering double digit territory second half year japan remained top performing region outstanding growth retail net sales driven solid domestic demand strong touristic flow fourth quarter continued deliver high growth albeit moderation third quarter retail net sales middle east also delivered solid performance including fourth quarter fuelled domestic demand tourist spending wholesale net sales geographic area amounted euro million europe euro million asia pacific euro million americas euro million middle east euro million japan euro million countries royalties entirely attributable europe operating results gross margin twelve month period ended december corresponded net revenues compared excluding effect exchange rate differences gross margin substantially stable operating expenses totaled euro million euro million versus increase attributable primarily variable costs resulting sales increase higher marketing spend personnel expenses spend advancement technological digital roadmap retail manufacturing corporate areas operating income period ebit euro million net revenues compared euro million net revenues financial expenses taxation net financial expenses euro million substantially line due lower exchange rate losses offset higher interest expense lease liabilities taxation twelve months ended december euro million corresponding profit tax net income net income year amounted euro million net revenues versus euro million net revenues reported financial review analysis statement financial position net invested capital following table reclassiﬁes statement financial position provide information composition net invested capital amounts thousands euro december december right use assets non current assets excluding deferred tax assets net trade receivables net inventories net trade payables net operating working capital current assets excluding items financial position current liabilities excluding items financial position current liabilities excluding items financial position current assets liabilities net provisions risks charges long term employee benefits long term liabilities deferred taxation net non current assets liabilities net net invested capital shareholder equity group shareholder equity non controlling interests total consolidated shareholders equity long term financial net surplus deficit short term financial net surplus deficit net financial surplus net financial surplus consolidated shareholders equity ratio lease liabilities non current lease liabilities current total lease liabilities net financial surplus including lease liabilities shareholders equity net financial surplus including lease liabilities net invested capital december amounts euro million equity euro million lease liabilities euro million net financial position end period surplus euro million right use assets increased euro million mainly result new leases remeasurements existing leases totaling euro million net depreciation euro million termination contracts euro million writedowns euro million foreign exchange differences impact euro million non current assets net rose euro million euro million december versus euro million december following capital expenditures year amounting euro million net depreciation amortisation writedowns euro million foreign exchange differences impact euro million annual report amounts thousands euro twelve months ended december twelve months ended december retail real estate industrial logistics corporate total group continued invest store network industrial area well advancement technological digital roadmap retail manufacturing corporate areas net operating working capital december equalled euro million euro million december trade receivables increased euro million inventories increased euro million trade payables increased euro million current liabilities net amount euro million december euro million december mainly due increase income tax liability increase fixed assets payables line higher capex non current assets net euro million december decreased euro million december net financial position following table provides details net financial position amounts thousands euro december december bank borrowing non current financial payables bank overdrafts current payables related parties current total financial payables current total financial payables cash cash equivalents financial receivables related parties non current financial receivables related parties current total financial receivables cash cash equivalents net financial surplus net operating cash flow twelve month period payment lease liabilities euro million positive euro million cash outflows investing activities euro million dividend payments euro million net revaluation items net financial position euro million minor items net financial surplus reached euro million end period financial review amounts thousands euro december december cash flow operating activities net cash interest received paid lease liabilities interest paid tax paid net cash flow operating activities repayment lease liabilities net operating cash flow net cash flow utilized investing activities free cash flow provide greater financial flexibility april prada signed new euro million sustainability linked revolving credit facility year duration replacing existing euro million facility new revolving credit facility undrawn december december group undrawn cash credit lines euro million available banks euro million december euro million committed credit lines euro million uncommitted ones financial covenants fully complied december expected complied within next months well following table sets forth lease liabilities amounts thousands euro december december lease liabilities non current lease liabilities current total lease liabilities increased euro million december euro million december primarily result new contracts remeasurements lease extensions modifications euro million net payments period euro million termination contracts euro million foreign exchange differences impact period euro million lease liabilities concentrated mainly following countries italy japan net financial indebtedness including lease liabilities amounted euro million december euro million december information group debt maturities obligations currency interest rate risk management commitments contingent liabilities provided notes notes consolidated financial statements annual report risk factors management prada group business exposed various risks materialize could adversely affect operations results financial situation reputation risks depend constantly changing highly competitive environment luxury industry primarily concern desirability group products reason main strategies group guaranteeing constant recognition brands reference points industry supporting developing retail sales well iii continuous identification monitoring mitigation main group risks order manage anticipate mitigate risk exposure ensure develop business sustainably long term group set risk management system risk factors presented follows operational esg risks intellectual property brand protection description group brands intellectual property rights fundamental assets infringements group intellectual property rights significant negative impacts results damage image group pursues active anti counterfeiting policy involving preventive measures legal actions strategy based following pillars group brands designs patents websites registered obtain legal protection countries throughout world intellectual property team responsible brand protection efforts globally online offline among others monitoring actions traditional markets internet inspections contacts competent local international authorities custom agencies legal actions actions team act directly support external consultants addition products equipped remote frequency identification rfid tag using technology makes possible verify authenticity products track retail wholesale products bearing rfid tag also registered blockchain aura consortium financial review commercial attractiveness desirability description group success reliant ability create influence fashion product trends timely anticipate shifts consumer taste trends meet exceed customer expectations failure timely perceive fashion needs translate styling design development phase could negatively impact appeal group brands therefore results financial situation group addresses risk first investing strong structured style design teams capable fine tuning cultural consumer changes teams guided miuccia prada raf simons prada brand miuccia prada miu miu brand composed professionals different nationalities cultures talents foster creativity addition invited combine strong sense fashion intellectual curiosity pursuit new unconventional ideas well cultural social interests secondly group pursues cutting edge communication strategies tune even anticipate create fashion trends addition group invests regular store renovations brick mortar online channel brands images guarantee enhanced customer experiences brand attractiveness customer satisfaction also pursued regular training professional qualification programs employees especially working stores talent management retention description group operations require managers employees artisans right qualifications design product development production marketing merchandising management corporate functions therefore key group retain skilled workforce train new generations especially dynamic evolving job market loss talented skilled people high turnover rate departure senior executives disappearance craftsmanship heritage may impact group operations product quality consequently results group proactively addresses risk carrying training initiatives prada academy knowledge shared skills techniques innovative ideas shaped way foster talent hand professional expertise essential group monitoring market acquire best fitting professional skills métiers iii setting retention initiatives performance management process based individual goals leadership development well adequate incentive schemes annual report real estate description group lose strategic retail places due difficulties finding fitting locations negotiating new leases adequate terms conditions group strategy could undermined negative consequences results conversely group compelled carry significant construction renovation projects align facilities standards unable carry projects timely budget financial situation could negatively impacted specific teams responsible handle real estate activities market monitoring conducting negotiations concerning real estate assets leases acquisitions construction renovation projects retail places moreover group performs periodical reviews contracts site visits hoc counterparty due diligence corporate image description group success international luxury goods business linked image distinct character brands highly competitive environment features depend many factors style design products quality materials used production techniques image locations directly operated stores careful selection business partners communication activities corporate profile general group also mindful transparency accountability demanded stakeholders rapidly evolving environmental social governance landscape operates negative events concerning unfavourable inaccurate media coverage negative campaigns social network individual behaviour contrary group values ethics integrity affect group image reputation consequently negatively impact results group pursues preservation image prestige brands maintaining innovative features style product communication monitoring internal external phase value chain reduce risk inadequate performance iii oversight external communication concerning brands including social media group also undertakes esg specific initiatives prada sustainability committee well board members significant professional esg experience well corporate industrial sustainability dedicated functions financial review fraud description frauds may perpetrated obtain money among others property services personal business advantage lack controls insufficient segregation duties could lead fraud consequently economic losses reputational damages group equipped various control tools preventive deterrent processes aimed improving efficiency monitoring treasury activities various group procedures place code ethics anti corruption policy corporate finance treasury policy set whistleblowing system related policy iii providing banking power attorney limited number people regularly updated duly approved board directors strengthening segregation duties access controls corporate systems internal controls treasury activities supply chain management description inability source raw materials manufacture procure distribute finished products timely basis required quality quantity cost suppliers meet quality group ethics standards could lead disruptions production negative effects group results damages group reputation although group significantly depend façon manufacturer suspension termination relationship significant façon manufacturers could adversely affect group business consequence results group contracts several suppliers avoid concentration supply fact production mainly located europe especially italy grants adequate level competence quality reliability addition sensitive processes creation prototypes samples cutting hides controls raw materials semifinished goods take place group manufacturing facilities group technical staff carries controls ensure products meet quality standards entire supply chain complies prada code ethics must signed business partners moreover group demands monitors including inspections compliance manufacturers applicable regulations concerning labor law social security occupational health safety well group regulations brand ownership intellectual property rights annual report business resilience description business interruption occur due variety factors including escalations geopolitical social tensions restrictions people movement exports cyberattacks property damages caused extreme weather event public health events machinery breakdowns labor disputes quality control failures operations resulting losses economic decreased sales increased labor costs need substitute key supplier decreased revenue potential due natural disasters reputational group addresses risks balanced geographical distribution stores avoid high concentration operations production mainly located italy several facilities operations production located new renewed premises continuous development online sales activities strengthening information system department insurance programs aimed mitigating risks health security safety description group exposed risks related workers health safety injuries occupational diseases accidents could lead physical harm people non compliance quality security standards products risks lead litigation related costs affecting group financial situation well damage group image mitigate risks group conducts periodic safety training refresher courses undergoes renovations new constructions iii carries fire risk assessments high risk premises respect product quality carries quality control manufacturing used production process sourcing finishing touches environmental description financial situation reputation group could affected extreme climatic phenomena cost increases raw materials similar environmental circumstances capable affecting production new regulations aimed containing pollution climate change may trigger compliance costs failures group iii changes customer purchasing habits related evolutions environmental context prevent mitigate risks group adopted hoc internal processes including sustainability policy laid foundations company sustainability focus based three pillars planet people culture group firmly believes make greatest contribution terms value creation industry benefit society whole group formalized sustainability strategy clear roadmap reduction greenhouse gas emissions extensive use alternative low impact materials finished products packaging circular approach materials used production purposes shows events waste recycled reused strategy also focuses traceability raw materials continuous improvement social environmental standards along supply chain close collaboration suppliers financial review description strategy evolving plan improved updated time respond needs expectations group stakeholders changing market conditions operates organization identified formalised medium term targets internal key performance indicators kpis monitor progress particular focus decarbonization operations transition lower impact materials finished products addition group enforced sustainability culture promotion internal external initiatives sea beyond forestami academy corporate line dedicated trainings financial risks credit risk description credit risk defined risk financial loss caused failure counterparty meet contractual obligations maximum risk entity exposed represented financial assets recognized financial statements group considers credit risk involve primarily trade receivables generated wholesale channel commercial partners liquid assets part credit risk financial counterparty risk managed proper diversification financial counterparties considering creditworthiness solvency risk default liquid assets substantially relates bank deposits represent group widely used financial product investing surplus operating cash flows default risk mitigated allocation cash holdings bank deposits diversified terms counterparties always investment grade country currency consistently short term period residual portion liquid assets consists cash bank accounts group manages credit risk mitigates related effects control system based monitoring creditworthiness solvency customers stipulation insurance contracts use safe solutions advance payments group considers significant risk exist kinds liquid assets given used operating activities business processes consequently number independent parties involved fragmented however potential risk related cash shortages stores group equipped various control tools preventive deterrent aimed improving efficiency cash management activities annual report liquidity risk description liquidity risk refers difficulty group could securing new funds leading failure meeting financial obligations directors responsible managing liquidity risk whereas group cfo supported deputy group cfo responsible optimizing financial resources directors consider currently available funds lines credit addition funding generated operating financing activities sufficient enabling group meet requirements terms working capital management investing activities punctual loan repayment payment dividends planned foreign exchange risk description group vast international presence therefore exposed risk changes currency exchange rates could adversely impact revenue expenses margins profit order hedge foreign exchange risk group enters derivative contracts designed fix value euro functional currency identified future cash flows future cash flows consist primarily intercompany inflows trade financial receivables intercompany outflows trade payables refer mainly prada group parent company worldwide distributor prada miu miu brand products management foreign exchange risk described detail notes consolidated financial statements interest rate risk description interest rate risk risk future cash flows could affected interest rate fluctuations order hedge risk refers mainly prada group uses derivatives interest rate swaps collar convert variable rate debt fixed rate debt debt rates within specified range management interest rate risk described detail notes consolidated financial statements financial review legal regulatory risks risks related evolution regulatory framework description various jurisdictions operates group subject laws regulations therefore exposed risk non compliance case major breach could material impact business performance group addition new legislation imposing stringent standards may entail increased compliance may limit group operations negative consequences financial performance concern particular following risks associated non compliance rules governing listing securities stock exchange hong kong limited laws regulations force hong kong prada must observe listed stock exchange hong kong limited risks associated occupational health safety italian legislative decree equivalent regulations force countries possible legal penalties wrongful acts pursuant italian legislative decree subsequently amended events could adversely affect accuracy annual financial statements protection assets manufacturing compliance risks respect italian international laws regulations regarding finished goods distributed raw materials consumables used group involves various divisions uses external experts necessary keep processes procedures constantly updated order comply changing rules regulations timely manner thereby mitigating risk non compliance monitoring activities performed division managers auditors special entities committees supervisory body audit risk committee prada holds status authorized economic operator aeo full recognition issued customs agency granted companies prove competent virtuous management business processes compliance customs regulations safety standards goods annual report tax risk description prada group tax strategy based prevention tax risks tax certainty pursued ongoing dialogue long term principled interaction tax authorities countries operates group tax risks could arise compliance errors incorrect interpretation regulations constantly monitored within scope extensive internal control system incorporated tax control framework effectiveness tax risk management system made prada eligible participate cooperative compliance tax regime italy italian legislative decree enhancing tax control framework within regime group expanded systematic open communication channel italian foreign tax authorities strategically important countries operates based reciprocal transparency trust purpose minimizing level uncertainty potentially risky situations financial review information information related party transactions information group transactions balances related parties provided notes consolidated financial statements insofar required ifrs directors report corporate governance report insofar required hong kong stock exchange rules non ifrs measures group uses certain financial measures non ifrs measures measure business performance help readers understand analyse financial situation although used group management measures universally legally defined regulated ifrs adopted prepare consolidated financial statements companies operating luxury goods industry might use measures different calculation criteria reason important non ifrs measures always read conjunction related explanatory notes readers aware measures may directly comparable used companies prada group uses following non ifrs measures annual report net revenues constant exchange rates current year net revenues calculated considering prior year exchange rates net sales constant exchange rates current year net sales calculated considering prior year exchange rates operating income ebit earnings interest taxation consolidated net result period adjusted exclude total financial income expenses taxation non recurring income expenses transactions qualified directors non recurring nature materiality frequency requires separate disclosure order give readers additional information group operating results non recurring transactions could include example impairment losses reversal impairment losses fixed assets restructuring costs litigation costs gains losses disposals fixed assets related unusual material transactions considered outside normal course business recurring operating income ebit adjusted difference operating income ebit non recurring income expenses reconciliation prada group ebit adjusted ebit nearest ifrs measure net income year reported amounts thousands euro twelve months ended december net revenues twelve months ended december net revenues net income year taxation total financial expenses operating income ebit non recurring income expenses recurring operating income ebit adjusted net financial position surplus deficit short term long term financial payables due third parties related parties net cash cash equivalents short term long term financial receivables due third parties related parties annual report net financial position surplus deficit including lease liabilities net financial position surplus deficit including lease liabilities amounts thousands euro december december net financial surplus lease liabilities current lease liabilities non current total lease liabilities net financial surplus including lease liabilities net operating working capital sum trade receivables net inventories net trade payables net invested capital right use assets included sum total consolidated shareholders equity lease liabilities net financial surplus net operating cash flow net cash flow generated operating activities less repayment lease liabilities free cash flow net operating cash flow net cash flows used investing activities amounts thousands euro december december cash flow operating activities net cash interest received paid lease liabilities interest paid tax paid net cash flow operating activities repayment lease liabilities net operating cash flow net cash flow utilized investing activities free cash flow research development activities research development activities described introductory section prada group annual report paragraph regarding creativity design product development costs twelve months ended december amount euro million reported consolidated statement profit loss prepared accordance ifrss treasury shares december company hold treasury shares reported directors report section events reporting date significant events reported financial review outlook mindful complex industry dynamics likely persist continue see clear opportunities brands remain committed investment plan across retail industrial capabilities technology continue support growth organisation evolutionary journey year ahead retain ambition deliver solid sustainable market growth milan march directors senior management chapter directors senior management directors board directors board consists eleven directors six executive directors five independent non executive directors board appointed term three years prada bianchi miuccia aged executive director company miu miu creative director prada creative director raf simons served chairwoman board chief executive officer husband patrizio bertelli january elected executive director april obtaining degree political science milan university prada began designing exclusive family business founded grandfather end formed partnership patrizio bertelli entrepreneur owner two high quality leather goods companies direction prada patrizio bertelli prada become one leading luxury companies worldwide prada received several awards original vision innovation contribution international fashion received honorary doctorate royal college art london prada named officier dans ordre des arts des lettres french ministry culture granted title knight grand cross highest order merit italian republic recognition international success contribution fields creativity fashion style prada wife patrizio bertelli chairman board mother lorenzo bertelli executive director chief marketing officer head corporate social responsibility prada holds directorships prada holding bellatrix ludo substantial shareholders company prada director listed companies hong kong abroad past three years bertelli patrizio aged chairman board company effect april first appointed board held role chief executive officer along miuccia prada january appointed chairman board first time april partnership miuccia prada began end combines entrepreneurial activity range cultural sporting interests shares miuccia prada bianchi bertelli received honorary degree business economics university florence university seal university bologna time magazine cited miuccia prada among influential couples world became first italian history inducted america cup hall fame bertelli holds directorships subsidiaries company holds directorship substantial shareholder company bertelli husband prada executive director father lorenzo bertelli executive director chief marketing officer head corporate social responsibility bertelli director listed companies hong kong abroad past three years miuccia prada bianchi executive director patrizio bertelli chairman board executive director executive directors annual report guerra andrea aged appointed chief executive officer executive director company since january elected april prior joining prada guerra strategic advisor lvmh chief executive officer hospitality excellence lvmh moët hennessy louis vuitton september may executive chairman high end food emporium eataly september may chief executive officer eyewear company luxottica group july september chief executive officer merloni elettrodomestici indesit company guerra obtained degree business administration sapienza university rome december october senior strategic advisor business finance industry italian government prime minister member boards directors bocconi university november october save children italy shareholder online newspaper linkiesta years guerra member strategic committee italian strategic fund fondo strategico italiano also member board directors amplifon member strategic committee ariston thermo companies listed italian stock exchange held position director boards parmalat dea capital companies listed italian stock exchange banca nazionale del lavoro guerra holds directorships subsidiaries company save disclosed herein guerra held directorship listed companies hong kong abroad last three years andrea guerra chief executive officer executive director zannoni paolo aged executive deputy chairman board effect may elected executive director april first appointed chairman board may conferred executive role june international advisor goldman sachs since providing advice firm business across italy rest europe currently secretary board directors beretta holding board member holland holland limited served chairman board autogrill listed italian stock exchange january chairman dolce gabbana holding chairman prysmian group prior zannoni spent several years working goldman sachs investment banking franchise italy joined goldman sachs named managing director partner chairman italian investment banking business also spent period chief executive officer goldman sachs russia prior joining goldman sachs zannoni vice president fiat lecturer yale university continues executive fellow yale school management advisory board member international center finance icf board member jackson institute global affairs zannoni earned mphil political science yale university also earned university bologna zannoni holds directorships subsidiaries company appointed chairman board prada holding june zannoni member remuneration committee save disclosed herein zannoni held directorship listed companies hong kong abroad last three years paolo zannoni executive deputy chairman board executive director directors senior management bertelli lorenzo aged joined board directors executive director may elected april bertelli chief marketing officer since appointed head corporate social responsibility responsible group marketing communication strategy group overall approach sustainability joined group head digital communication lorenzo bertelli obtained degree philosophy san raffaele university milan son miuccia prada bianchi executive director patrizio bertelli chairman board company holds directorship prada holding substantial shareholder company well directorships subsidiaries company lorenzo bertelli member nomination committee sustainability committee bertelli director listed companies hong kong abroad past three years lorenzo bertelli executive director bonini andrea aged chief financial officer company since may appointed board executive director november confirmed executive director april elected april bonini years experience corporate finance relevant experience luxury industry started professional career milan based firm boutique gallo andrea bonini joined investment banking division goldman sachs international based london became managing director goldman sachs part italy coverage team subsequently joined consumer retail group responsibility luxury brands europe bonini graduated business administration bocconi university milan bonini holds directorships subsidiaries company bonini director listed companies hong kong abroad past three years andrea bonini chief financial officer executive director annual report zaoui yoël aged first elected independent non executive director may appointed lead independent director may elected april founder zaoui firm established advise select clients mergers acquisitions strategic financial transactions well major investment decisions zaoui began investment banking career goldman sachs year career goldman sachs responsible europe largest significant corporate transactions period unprecedented growth zaoui first european investment banker joined goldman sachs top governing body management committee position held retirement prior goldman sachs zaoui worked arthur andersen paris zaoui educated france obtained diploma ecole des hautes etudes commerciales hec dea doctoral degree finance universite paris dauphine mba stanford university zaoui continues actively involved alma maters serving member cercle des grands donateurs fondation hec zaoui conferred order muhammad majesty king morocco mohamed zaoui chairman audit risk committee member remuneration committee zaoui director listed companies hong kong abroad past three years yoël zaoui lead independent director independent non executive director caprotti marina sylvia aged first elected independent non executive director may elected april executive chairwoman esselunga since prior member esselunga board directors starting june vice president currently director board fondazione accademia teatro alla scala milan marina sylvia caprotti obtained degree law università cattolica del sacro cuore milan caprotti director listed companies hong kong abroad past three years marina sylvia caprotti independent non executive director independent non executive directors directors senior management ruella cristiana aged elected independent non executive director april currently industrial partner fsi sgr investment company member board directors missoni also chief executive officer tfc srl holding company exor srl since october july august managing director dolce gabbana group also carried duties typically undertaken chief financial officer global leadership role dolce gabbana member boards directors central local companies well chief executive officer latter ones ruella previously spent four years icr istituto revisione certificazione involved accounting audit activities financial statements companies aimed issuing certifications relevant financial economic results member advisory board dgpa italian investment fund also member advisory board sda bocconi university ruella devotes time passion vidas foundation member board directors treasurer ruella earned economics finance cattolica university milan ruella chairwoman nomination committee member audit risk committee save disclosed herein cristiana ruella held directorship listed companies hong kong abroad last three years culpepper pamela yvonne aged first appointed independent non executive director january elected april culpepper former name jordan pamela yvonne january culpepper joined hanold associates llc acquired creative artists agency llc october managing partner leadership advisory practice executive search leadership advisory team culpepper one three founders back llc female owned female led culture consultancy focused advancing equality culpepper chief human resources officer cboe global markets inc one world largest exchange holding companies offering cutting edge trading investment solutions investors around world cboe culpepper served advisor executive team board directors regard talent management compensation benefits acquisition subsequent merger global exchange cboe culpepper years experience executive joined cboe golin company chief people officer prior work golin culpepper held various leadership roles pepsico inc including chief global diversity inclusion officer vice president human resources quaker foods snacks vice president human resources pepsico beverages supply chain vice president talent management diversity quaker tropicana gatorade pepsico culpepper held roles mckesson corporation clorox wells fargo culpepper former board trustee vso international based united kingdom board member navy pier chicago march appointed cambia health solutions board directors independent director culpepper psychology university arkansas little rock mpa master public administration organizational change california state university eastbay culpepper chairwoman sustainability committee member nomination committee culpepper director listed companies hong kong abroad past three years cristiana ruella independent non executive director pamela yvonne culpepper independent non executive director annual report rugarli anna maria aged first appointed independent non executive director january elected april rugarli corporate sustainability vice president japan tobacco international responsible developing business integrated strategy global level rugarli appointed independent non executive director chair esg committee asos plc company listed london stock exchange june rugarli sustainability csr expert twenty years experience specializing designing innovative programs developing strategies initiated launched nike sustainability csr programs europe middle east africa regions company years pioneering work industry level rugarli led corporation circular economy strategy global level well sustainability purpose strategy regional level years time managed broad networks stakeholders cross sector partners led sustainability csr programs integration across business corporation board member president european outdoor conservation association total seven years since february rugarli board member international rugarli graduated political sciences certified broker cross sector partnerships cambridge university rugarli chairwoman remuneration committee member audit risk committee sustainability committee saved disclosed herein rugarli director listed companies hong kong abroad past three years anna maria rugarli independent non executive director directors senior management senior management senior management responsible day day management business group agostini cristiano aged group chief information officer since july primarily responsible overseeing worldwide transformation innovation technology department earning degree communication sciences university turin agostini gained many years experience information technology sector prestigious companies consulting firms managed complex projects transformation technological innovation international contexts first telecom italia research center subsequently deloitte accenture joined accenture cover role managing director technology strategy advisory area bertelli lorenzo aged executive director company chief marketing officer head corporate social responsibility please refer paragraph executive directors directors senior management section annual report details bio bertoncini francesca aged chief corporate officer north central europe prada president central europe since december bertoncini primarily responsible overseeing group operations united kingdom ireland denmark sweden norway germany austria netherlands czech republic covers several managerial roles company subsidiaries joined group managerial roles included product development collection retail merchandising appointed worldwide prada woman shoes collection retail merchandising director worked senior vice president global merchandising product development stuart weitzman new york bonini andrea aged executive director company chief financial officer company please refer paragraph executive directors directors senior management section annual report details bio brini giulio aged apac managing regional director since july primarily responsible overseeing group strategies operations asian countries coordinating prada miu miu brands order provide cross brand services within local markets also appointed outlets division director october brini joined group appointed current position covered different managerial roles commercial industrial area including prada retail director miu miu general manager brini obtained degree economics banking university siena buoncompagni fabrizio aged appointed indirect procurement general services director june fabrizio buoncompagni primarily responsible centrally managing indirect procurement process terms negotiations management contracts technical qualification vendors loading monitoring purchase orders obtaining degree economics commerce university florence joined group controlling department becoming industrial controlling director organization director carola pablo aged chief corporate officer middle east since december carola primarily responsible overseeing group operations middle east area covers several managerial roles company subsidiaries carola obtained degree business administration universidad politecnica catalunya spain joined group manage human resources miu miu prada stores worldwide regional director iberian peninsula north africa prior joining group worked almost twelve years human resources director louis vuitton annual report castellani valeria aged appointed head security june primarily responsible ensuring protection security physical assets group actions aimed preventing risks protecting company physical goods obtaining degree law university bologna valeria castellani worked government private sector italy abroad security manager hilton worldwide becoming asset profit protection regional manager burberry security manager corporate retail bottega veneta choi moonyoung aged chief executive officer korea since primarily responsible overseeing group commercial operations korea started career louis vuitton first louis vuitton store manager korea choi worked celine korea lvmh group first retail manager country manager korea ciabatti maurizio aged appointed chief real estate officer ciabatti primarily responsible overseeing acquisition new real estate managing organisation real estate development portfolio finding new potential buildings property develop group portfolio engage contract negotiations joined group engineering department managerial roles including group engineering director attis gianfranco aged appointed prada chief executive officer january role primarily responsible strategic development prada brand every market gianfranco attis holds bachelor degree zurich graduate school business administration completed education attending senior executive program columbia business school new york career gianfranco attis held number senior management positions including recently president christian dior americas duliga janet aged appointed chief corporate officer americas december janet responsible managing corporate functions americas market liaising prada miu miu brands order provide cross brand services duliga joined group december years experience human resources law public private companies recently served chief administrative officer joann inc prior senior vice president human resources sunglass hut luxury retail north america division luxottica holds bachelor arts degree psychology pomona college masters arts degree clinical psychology antioch university juris doctorate university san diego school law doctorate organizational learning university pennsylvania guerra andrea aged executive director company chief executive officer please refer paragraph executive directors directors senior management section annual report details bio huet emmanuel aged regional director prada president france belgium monte carlo since february primarily responsible overseeing group operations france belgium monte carlo development prada miu miu business within local markets previous roles louis vuitton included director maison champs elysées general manager benelux nordics maletto diego aged internal auditing director since february responsible defining monitoring compliance rules procedures processes within group maletto obtained master degree economics business turin university career consulting italy usa ernst young became head internal audit italy greece albania malta vodafone audit director autostrade per italia manzatto denni aged appointed church chief executive officer january responsible overseeing church brand operations worldwide prior appointment manzatto group commercial license director responsibility commercial development wholesale marketplace channels prada miu miu car shoe brands directly managed prada wholesale channel well eyewear fragrance licenses prada miu miu also responsible leading group brand level business development opportunities strategic partnerships collaborations manzatto obtained executive directors senior management master degree business administration insead tsinghua university business management graduate bocconi university fudan university participated exchange program wharton school university pennsylvania prior joining group manzatto worked associate private equity firm vision capital investment banking division goldman sachs marsicola alessandra aged appointed president ceo japan guam saipan hawaii september japan guam saipan hawaii regional director since may primarily responsible overseeing worldwide prada retail functions strategy prada miu miu church marsicola joined group appointed current position covered range different managerial roles commercial area including prada retail director regional director north west europe retail development director japan asia chief executive officer prada fashion commerce shanghai prada worldwide store operation director prada retail director prada japan worked first sales director rinascente asia pacific retail director fendi massardi roberto aged chief business development officer since may primarily responsible group strategic development assessment new business opportunities also responsible managing group eyewear fragrances licenses obtaining degree business economics bocconi university milan massardi covered several roles within pirelli group joined prada group business development director later general director jil sander joined sportswear company stone island general manager menicatti andrea aged appointed general manager marchesi brand february menicatti held managerial positions italy usa middle east boston consulting group developing growth strategies implementing transformation programs companies food fashion sectors began professional career jpmorgan dea capital group taste italy investment fund santamaria maurizio rosa aged appointed chief people officer prada group september responsible taking active part group culture organisational evolution development human resources role within group joining group obtained degree engineering sapienza university rome gained experience human resources officer valentino worked american express years several senior roles recently chief human resources officer italy spain nordics netherlands belgium turkey professional experience began ernst young continued multinational pharmaceutical company bristol myers squibb scapecchi andrea aged appointed store planning special projects director october scapecchi responsible leading executive signoff final store plans new store openings capital projects existing stores working closely real estate director scapecchi obtained degree mechanical engineering university florence joined group previous managerial roles engineering area included group engineering director asia pacific business development director hong kong engineering retail director secondari francesca aged appointed general counsel chief legal officer prada group may holds law degree università perugia executive mba american university cairo qualified lawyer italy spain since trained studio legale bonellierede became equity partner secondari extensive experience extraordinary finance corporate governance string esg focus also led major transactions luxury sector seven years based bonellierede cairo office heading business development africa middle east july joined prada acting group general counsel formally taking current role simons raf aged appointed prada creative director april working partnership miuccia prada bianchi simons launched menswear label creative director jil sander christian dior calvin klein contributes brand image conception preparation development prada brand products development annual report creative strategies marketing advertising branding campaigns simons graduated industrial design shivkv genk vignolo lutati ugo camillo lodovico maria aged appointed chief information security officer april vignolo lutati responsible ensuring integrity availability confidentiality information accordance prada group business needs information security policies vignolo lutati partner leading professional services company experience covering managerial international roles mainly area governance risk management finance wang chen chen aged china general manager since primarily responsible overseeing group commercial operations china covers several managerial roles company subsidiaries joined group miu miu retail director wang obtained master degree science auburn university started career guilford mills new york working silverstream software new york recently merchandising director christian dior china zenkovskaya vera aged russian area regional director since zenkovskaya primarily responsible overseeing group operations russia kazakhstan covers several managerial roles company subsidiaries zenkovskaya obtained foreign languages degree language university kazakhstan prior joining group russia country manager worked within beauty sector oréal temtrade marketing retail worked managerial roles louis vuitton russia ukraine directors senior management company secretary tong pui ting wendy aged first joined company asia corporate affairs counsel january appointed asia pacific corporate affairs counsel company secretary december since joining involved managing corporate secretarial corporate matters listing rules compliance data privacy matters asia pacific region prior joining company worked associate corporate department slaughter may hong kong admitted solicitor hong kong high court hong kong tong graduated university new south wales sydney bachelor commerce law degree distinction obtained postgraduate certificate laws distinction university hong kong directors report chapter directors report principal activities business review prada company together subsidiaries group leading global luxury group active design production distribution high end leather goods footwear ready wear accessories jewelry also operates licensing agreements eyewear beauty sectors well food beverage sector directly operated stores network commerce channels selected tailers franchise stores selected number luxury department stores independent retailers group operates major international markets worldwide company joint stock company limited liability incorporated domiciled italy registered office via antonio fogazzaro milan italy discussion analysis activities required section schedule hong kong companies ordinance including review business company discussion analysis group performance year ended december year material factors underlying economic results financial position description risks uncertainties facing group future development business company set financial review section annual report details material events affecting group occurred since end reporting period set note year group consolidated financial statements consolidated financial statement discussions form part directors report directors report compliance relevant laws regulations group adopted specific compliance procedures aimed ensuring compliance applicable laws rules regulations particular significant impact worldwide level group products distributed sold across countries detailed analysis legal regulatory risks group exposed set paragraph headed legal regulatory risks financial review section annual report forms part directors report environmental policies performance group aims enhance value creation stakeholders combining economic profitability employee customer satisfaction respecting ethical environmental values ensuring sustainability environmental protection one main drivers group engaged implementing enforcing virtuous behaviors contribute sustainable growth commitment environmental protection key element code ethics updated july applied within group organisation implementing staff awareness third parties working group analysis group environmental policies performance well relationships key stakeholders employees customers suppliers shareholders included group sustainability report published time annual report information environmental policies performance group also set prada group section annual report relationships key stakeholders group success also depends support key stakeholders employees customers suppliers shareholders annual report employees group built people group always considered human capital key competitive edge makes every effort promote reward professional skills teamwork emphasis results employees enthusiasm craft skills intellectual curiosity indispensable elements underpin innovation quality group products company searches people combine outstanding qualities values group december group employees headcount italy women representing total workforce group remuneration policy aims attract reward retain skilled personnel expert managers bringing interests management line primary objective creating value shareholders medium long term analysis value human resources group set prada group section annual report analysis remuneration policy group set corporate governance section annual report form part directors report customers group globally recognized trend setter fashion industry distinctive features prestige group place group position offer customers worldwide unique products characterized creativity quality identity addition group believes effective communication customers crucial build convey image strong consistent brand identity result group approach customers unique relationship customer group brands products stores suppliers group regards relationship suppliers built years day day collaboration directed towards continuous improvement fundamental success group wide range raw materials suppliers external manufacturers located european union vast majority italy group requires suppliers act responsibly undertakes acknowledges group code ethics sets forth inalienable rights employees proper working conditions equal opportunities freedom association health insurance coverage protection environment collection materials production processes order achieve highest quality standards group put place procedures selection retention suppliers aim establishing long term business relationships group audits suppliers sub contractors ensure practices compliant code ethics shareholders one main corporate goals group enhance shareholders value appreciation share price granting dividends payouts taking account among factors liquidity position business expansion needs group details group communication shareholders set corporate governance section annual report forms part directors report directors report results dividends results group year set consolidated statement profit loss board recommends distribution final dividends euro euro per share year final dividends subject shareholders approval forthcoming shareholders general meeting company held wednesday april subject shareholders approval recommended final dividends dividends paid monday may final dividend paid shareholders recorded company shareholders register thursday may net italian withholding tax applicable current rate italian withholding tax applied applicable dividend payments equal five year financial summary five year financial summary group set note consolidated financial statements reserves details movements reserves group company year set consolidated statement changes shareholders equity statement changes company equity distributable reserves december company reserves available distribution shareholders accordance company laws amounted euro million property plant equipment details movements property plant equipment group year set note consolidated financial statements donation donations group mainly related charities amounted euro pre emptive rights company laws provide shareholders pre emptive rights purchase sale redemption company listed securities year neither company subsidiaries purchased sold redeemed annual report company listed securities company hold treasury shares december capital gains tax italy capital gains realized sale securities italian company shareholders resident hong kong subject taxation italy subsidiaries details company subsidiaries december set note consolidated financial statements directors current directors company date directors report executive directors patrizio bertelli elected executive director appointed chairman board april paolo zannoni elected executive director appointed executive deputy chairman board april andrea guerra elected executive director appointed chief executive officer april miuccia prada bianchi elected executive director april andrea bonini chief financial officer elected executive director april lorenzo bertelli elected executive director april independent non executive directors yoël zaoui elected independent non executive director appointed lead independent director april marina sylvia caprotti elected independent non executive director april pamela yvonne culpepper elected independent non executive director april anna maria rugarli elected independent non executive director april cristiana ruella elected independent non executive director april ceased director maurizio cereda former independent non executive director mandate expired april biographical information directors brief biography current director set directors senior management section annual report directors permitted indemnity permitted indemnity provision contract entered company associated corporation within meaning part securities futures ordinance sfo force year date directors report approved board required disclosed section hong kong companies ordinance directors report management contract contract employment contracts directors service contracts concerning management administration whole substantial part company business entered effective year directors service contracts none directors company service contract member group cannot terminated within one year without payment compensation statutory compensation directors interests competing business year none directors company held interest business competes likely compete directly indirectly business company group directors interests short positions securities december directors associates following interests shares underlying shares debentures company associated corporations within meaning part sfo recorded register required kept company section sfo otherwise notified company stock exchange pursuant model code securities transactions directors listed issuers model code contained appendix rules governing listing securities stock exchange hong kong limited listing rules long positions shares underlying shares company name director number shares nature interest approximate percentage issued capital miuccia prada bianchi notes interest controlled corporation patrizio bertelli notes interest controlled corporation notes prada holding owns approximately issued capital company therefore holding company company miuccia prada bianchi controls indirectly ludo comprised ordinary shares preference shares capital bellatrix turn owns comprised ordinary shares preference shares capital prada holding miuccia prada bianchi therefore deemed sfo interested shares registered name prada holding miuccia prada bianchi also director prada holding bellatrix ludo patrizio bertelli controls indirectly comprised ordinary shares preference shares capital prada holding patrizio bertelli therefore deemed sfo interested shares registered name prada holding patrizio bertelli also director annual report simplified shareholding chart illustrates interests miuccia prada bianchi patrizio bertelli shares company december patrizio bertelli miuccia prada bianchi ludo bellatrix prada holding prada directors report long positions shares underlying shares associated corporations name director name associated corporations class shares number shares nature interest approximate percentage interests miuccia prada bianchi prada holding ordinary shares controlled corporation prada holding preference shares mfh munich fashion holding gmbh registered share bellatrix ordinary shares bellatrix preference shares ludo class shares beneficial owner ludo class shares beneficial owner ludo class shares ownership llc capital contribution jpy controlled corporation prada participation quota euro finanziaria partecipa zioni prada limited partnership immobiliare rivalsa ordinary shares prada holding usa llc membership interest fifth usa llc membership interest patrizio bertelli prada holding ordinary shares controlled corporation prada holding preference shares mfh munich fashion holding gmbh registered share llc capital contribution jpy prada participation quota euro finanziaria partecipa zioni prada limited partnership immobiliare rivalsa ordinary shares prada holding usa llc membership interest fifth usa llc membership interest save disclosed december none directors company associates interest short position shares underlying shares debentures company associated corporations within meaning part sfo recorded register required kept company section sfo otherwise notified company stock exchange model code annual report substantial shareholders interests short positions securities december interests directors company disclosed following persons held interests short positions shares underlying shares company recorded register required kept company section sfo name shareholder capacity number shares approximate percentage issued capital long positions prada holding legal beneficial owner bellatrix interest controlled corporation ludo interest controlled corporation interest controlled corporation note prada holding owns approximately issued capital company ludo owns bellatrix turn owns prada holding owns prada holding bellatrix ludo deemed interested shares company held prada holding share capital details share capital company year set consolidated statement changes shareholders equity note consolidated financial statements directors interests transactions arrangements contracts save contracts disclosed section continuing connected transactions note related parties transactions note remuneration board directors consolidated financial statements transaction arrangement contract significance group business entered subsisted time year direct indirect interest director entity connected director material year arrangements company company subsidiaries holding companies subsidiary company holding companies party enable directors company acquire benefits means acquisition shares debentures company issuance debt securities neither company members group issued debt securities year directors report continuing connected transactions year group following non exempt continuing connected transactions details disclosed company announcements dated july may respectively lease agreement guarantee prada aoyama building japan july llc purchased building minami aoyama tokyo japan aoyama building prada japan ltd prada japan wholly owned subsidiary company leasing aoyama building use flagship store tokyo since may prada japan lessee former lessor renewed lease aoyama building entering lease agreement term years lease agreement date company granted guarantee favour former lessor guarantee full compliance prada japan obligations lease agreement guarantee result purchase aoyama building llc connected person company become lessor lease agreement beneficiary guarantee granted company favour former lessor accordingly lease agreement guarantee continuing transactions group become continuing connected transactions group chapter listing rules april llc previously wholly owned subsidiary formerly known became wholly owned subsidiary prada holding substantial shareholder company miuccia prada bianchi patrizio bertelli executive directors substantial shareholders defined listing rules company indirect shareholders prada holding consequence transaction lease agreement guarantee remained subsequent continuing connected transaction group variation terms annual cap year rent paid llc accrued company accordance applicable accounting rules lease agreement guarantee jpy disclosed company announcement dated may lease agreement guarantee miu miu aoyama building japan may llc purchased building minami aoyama tokyo japan aoyama building prada japan leasing aoyama building use flagship store miu miu brand tokyo since lease agreement entered former owner aoyama building lease agreement context lease agreement company granted guarantee favour former owner guarantee full compliance prada japan obligations lease agreement guarantee result purchase aoyama building llc become lessor lease agreement beneficiary guarantee granted company favour former owner llc wholly owned subsidiary prada holding substantial shareholder defined listing rules company miuccia prada bianchi patrizio bertelli executive directors substantial shareholders defined listing rules company indirect shareholders prada holding context lease agreement guarantee continuing transactions group become subsequent continuing connected transactions group chapter listing rules annual cap year rent paid llc accrued company accordance applicable accounting rules lease agreement guarantee jpy disclosed company announcement dated may annual report table setting aggregate value non exempt continuing connected transactions year continuing connected transaction cct accounting adjustment cct following application ias presentation financial statements impact profit loss year ended december lease agreement guarantee prada aoyama building japanese yen million japanese yen million japanese yen million depreciation right use assets interest expenses lease liabilities lease agreement guarantee miu miu aoyama building japanese yen million japanese yen million japanese yen million depreciation right use assets interest expenses lease liabilities independent non executive directors reviewed non exempt continuing connected transactions confirmed entered ordinary usual course business group normal commercial terms better iii according agreements governing terms fair reasonable interests shareholders company whole directors company engaged external auditor review non exempt continuing connected transactions based work performed external auditor provided letter directors company confirm nothing come attention causing believe continuing connected transactions approved company board directors material respects accordance pricing policies group transaction involved provision goods services group iii entered material respects accordance terms relevant agreements governing transactions exceeded relevant annual cap save disclosed none transactions disclosed related party transaction note consolidated financial statements connected transaction continuing connected transaction subject reporting disclosure requirements listing rules company complied disclosure requirements governing connected transactions continuing connected transactions accordance chapter listing rules bank loans borrowings details group bank loans borrowings december set notes consolidated financial statements major customers suppliers nature group activities percentage sales purchases attributable group five largest customers suppliers less total sales purchases directors consider customer supplier influence group directors report retirement benefit schemes details retirement benefit schemes group set note consolidated financial statements model code securities transactions company adopted model code made specific enquiries directors confirmed complied standard set model code throughout year events reporting period applicable details significant events occurring reporting date set note consolidated financial statements commitments contingencies details capital commitments contingent liabilities group december set note consolidated financial statements sufficiency public float time company listed stock exchange granted waiver strict compliance rule listing rules public float waiver pursuant public float waiver company must times maintain minimum public float based information available company within knowledge directors company maintained minimum public float date annual report directors responsibilities consolidated financial statements directors responsible preparation consolidated financial statements year ended december ensure consolidated financial statements give true fair view state affairs group preparing consolidated financial statements directors selected suitable accounting policies made judgments estimates prudent reasonable prepared consolidated financial statements going concern basis accordance international financial reporting standards issued international accounting standards board adopted european union directors responsible keeping proper accounting records safeguarding assets company group external auditor consolidated financial statements separate financial statements company audited deloitte touche italian company law external auditor appointed remuneration resolved every three years shareholders general meeting company basis proposal made board statutory auditors april stock exchange granted company waiver strict compliance rule listing rules requires appointment external auditor annual general meeting hold office next annual general meeting therefore company external auditor appointed remuneration determined every three years shareholders general meeting company applicable italian laws annual report january board resolved accordance recommendations received board statutory auditors audit risk committee propose resolution shareholders general meeting company april agm appoint kpmg external auditor company three financial years ending december december fix remuneration order board paolo zannoni executive deputy chairman milan italy march corporate governance chapter annual report corporate governance practices company committed maintaining highest standards corporate governance create long term sustainable value stakeholders including shareholders corporate governance model adopted company consists set rules standards structured procedures aimed establishing efficient transparent operations within group protect rights company shareholders enhance shareholder value uphold group credibility reputation corporate governance model adopted company complies applicable laws regulations italy company incorporated well principles set corporate governance code code appendix listing rules compliance code board reviewed company corporate governance practices satisfied practices complied code provisions set code year ended december year save code provision patrizio bertelli chairman board able attend annual general meeting company held april agm due business commitments absence paolo zannoni executive deputy chairman board assumed chairman role duties agm ensuring meeting proceeded smoothly effective communication shareholders corporate governance section annual report summarizes company applied principles implemented code provisions contained code year directors securities transactions company adopted written procedure governing directors securities transactions terms less exacting set model code response specific enquiries company directors confirmed complied required standard set model code company procedure applicable times year incidents non compliance year company also adopted written procedure governing securities transactions carried relevant employees likely possess inside information relation company securities procedure terms less exacting set model code directors interests december shares company associated corporations within meaning part sfo recorded register required kept company section sfo otherwise notified company stock exchange pursuant model code contained appendix listing rules set directors report board directors board composition board currently made eleven directors six executive directors five independent non executive directors board appropriate mix skills experience relevant company strategy governance business underpins management effectiveness efficiency approach achieving diversity set board diversity policy discussed detail paragraph headed nomination committee currently female representation board level gender diversity workforce levels disclosed annual report gender diversity including senior management disclosed sustainability report board believes diversity limited gender corporate governance table shows structure skill sets expertise competencies board committees skills expertise directors age gender ethnicity ined audit risk remuneration nomination sustainability business management strategic planning risk management financial reporting banking legal esg related industry knowledge experience patrizio bertelli chairman board paolo zannoni executive deputy chairman board andrea guerra chief executive officer miuccia prada bianchi andrea bonini chief financial officer lorenzo bertelli yoël zaoui lead independent director ined marina sylvia caprotti ined pamela yvonne culpepper ined anna maria rugarli ined cristiana ruella ined refers italian refers non italian biographical details directors relationships applicable set directors senior management section annual report company maintained website website stock exchange updated list directors identifying respective roles functions board meetings year board held six meetings discuss group overall corporate strategic direction objectives assess operational financial performance including annual budget annual interim quarterly results approve group main investments extraordinary transactions appointment chief executive officer executive deputy chairman lead independent director granting powers executive directors remuneration directors vested special offices including board committees members adoption updating group policies approval year audit plan sustainability report connected transactions average attendance rate directors six meetings held presence electronic means minutes board meetings kept corporate affairs department minutes board meetings board committees meetings sent relevant directors available inspection director giving reasonable notice company annual report board attendance details attendance board meetings board committees meetings shareholders general meeting held year set following table directors board audit risk committee remuneration committee nomination committee sustainability committee shareholders meeting executive directors patrizio bertelli chairman paolo zannoni executive deputy chairman andrea guerra chief executive officer miuccia prada bianchi andrea bonini chief financial officer lorenzo bertelli independent non executive directors yoël zaoui lead independent director marina sylvia caprotti pamela yvonne culpepper anna maria rugarli cristiana ruella statutory auditors roberto spada chairman maria luisa mosconi patrizia arienti dates meetings jan jan mar feb jan apr mar feb apr mar feb april mar july jul jul apr oct oct jul dec dec jul oct nov dec average attendance rate directors notes chairman audit risk committee chairwoman sustainability committee chairwoman remuneration committee chairwoman nomination committee maurizio cereda former member board board attendance shareholders meeting attendance former chairman nomination committee attendance former member audit risk committee attendance antonino parisi former chairman board statutory auditors attendance board meetings david terracina former member board statutory auditors attendance board meetings corporate governance roles responsibilities board highest decision making body company vested power manage ordinary extraordinary matters company board power perform acts deems necessary useful pursuit company corporate purposes except acts specifically reserved approval shareholders relevant laws regulations laws particular board responsible setting overall strategy well reviewing operational financial performance company group therefore board considers decides matters concerning overall group strategy including sustainability strategy group strategic objectives annual budgets annual interim quarterly results approval major transactions connected transactions significant operational financial matters board also responsible evaluating ongoing basis effectiveness internal control risk management system among directors upon decision board granted specific delegated powers power sub delegate powers selected personnel outside board respect company adopted system delegated powers powers attorney aimed ensuring segregation duties efficient regular performance activities accordance procedures adopted company year board members provided monthly financial updates prepared executive directors support management purpose updates provide balanced comprehensive assessment performance position prospects group sufficient detail order enable director perform duties board believes corporate culture underpins long term business economic success sustainable growth group board sets promotes company culture expects requires employees follow group procedures policies details please refer directors report sustainability report executive directors responsible day day management company make operational business decisions within control delegated powers framework company types decisions delegated board management include preparation annual interim quarterly results board approval execution business strategies initiatives adopted board monitoring operating budgets adopted board design implementation monitoring internal control risk management system compliance relevant statutory requirements rules regulations independent non executive directors independent non executive directors provide company diversified skills expertise qualifications well varied backgrounds perspectives participate board board committees meetings provide independent objective opinions advice judgment important matters relating company strategy policy financial performance take lead matters conflicts interests may arise board also reviews annual basis implementation effectiveness mechanisms established ensure independent views input available board also attend shareholders general meetings company understand views shareholders make positive contribution development company strategy policy independent constructive informed comments independent non executive directors enhance effectiveness decision making board providing objective judgement constructive challenge independence assessed upon appointment annually whenever circumstances warrant reconsideration independent non executive directors meet independence guidelines set rule listing rules required listing rules provided company written confirmations independence independence independent non executive directors confirmed following review nomination committee conducted february none independent non executive directors company business financial interest company subsidiaries annual report liability insurance directors company arranged appropriate liability insurance indemnify directors liabilities arising corporate activities insurance coverage reviewed annual basis directors training upon appointment board directors provided comprehensive induction program ensure thorough understanding key areas business operations practices company well role responsibilities relevant laws rules regulations year patrizio bertelli paolo zannoni miuccia prada bianchi andrea guerra lorenzo bertelli andrea bonini yoël zaoui marina sylvia caprotti pamela yvonne culpepper anna maria rugarli cristiana ruella participated training provided company business updates sector developments directors also received updates development laws rules regulations relating directors duties responsibilities develop refresh knowledge skills including proposed amendments corporate governance rules related listing rules ongoing training helps directors keep abreast current trends issues facing group enabling update refresh skills knowledge necessary perform duties mandate maurizio cereda expired independent non executive director april participate director training provided company year directors required provide company training records year records maintained corporate affairs department chairman chief executive officer agm patrizio bertelli appointed chairman board date board appointed andrea guerra chief executive officer granting relevant delegated powers role chairman separate chief executive officer chairman vested powers represent company provides leadership board responsible ensuring board functioning effectively adheres good corporate governance practices procedures chief executive officer supported executive directors senior management responsible managing company business including implementation major strategies initiatives adopted board relationships directors miuccia prada bianchi executive director company patrizio bertelli chairman board executive director company husband wife lorenzo bertelli executive director company son miuccia prada bianchi patrizio bertelli appointment board members agm board consisting eleven directors appointed term three financial years mandate current directors lapse date shareholders general meeting called approve financial statements company year ending december company laws directors may appointed april cristiana ruella obtained legal advice regards requirements listing rules applicable director listed issuer possible consequences making false declaration giving false information stock exchange confirmed understood obligations director listed issuer corporate governance mandate maurizio cereda independent non executive director expired april corporate governance functions board board responsible determining supervising implementation company corporate governance policies ensuring compliance provisions code board role regard develop review company policies practices corporate governance review monitor training continuous professional development directors senior management iii review monitor company policies practices regarding compliance legal regulatory requirements develop review monitor code ethics organisation management control model adopted pursuant italian legislative decree june company procedures applicable directors employees review relevant environmental social governance esg matters review company compliance code disclosure corporate governance section annual report vii perform corporate governance duties functions set listing rules applicable rules board shall responsible year board completed following activities respect corporate governance matters approved appointment chief executive officer executive deputy chairman lead independent director approved granting powers executive directors iii approved composition board committees appointed members approved remuneration directors vested special offices including members board committees approved appointment members supervisory body organismo vigilanza including chairwoman reviewed level compliance code vii reviewed effectiveness internal control risk management system esg performance company internal audit department audit risk committee sustainability committee viii reviewed approved sustainability report approved group main transactions including connected transactions extraordinary transactions third parties reviewed approved updated versions connected transaction policy disclosure policy board diversity policy including review implementation effectiveness dividend policy director nomination policy adopted notifiable transactions policy xii approved compliance new rule listing rules reviewed shareholders communication policy accordingly board committees board established audit risk committee remuneration committee nomination committee sustainability committee chaired independent non executive director compliance code terms reference membership first three board committees published websites company stock exchange terms reference board committees less exacting set code board committees provided sufficient resources perform duties upon reasonable request able seek independent professional advice appropriate circumstances company expense annual report audit risk committee company established audit risk committee compliance rule listing rules least one member possesses related financial management expertise perform duties audit risk committee current members audit risk committee appointed board april consist three independent non executive directors namely yoël zaoui chairman appointed july cristiana ruella anna maria rugarli former members audit risk committee whose mandate elapsed april also three independent non executive directors namely yoël zaoui chairman marina sylvia caprotti maurizio cereda primary duties audit risk committee assist board providing independent view independence adequacy effectiveness efficiency internal audit function company financial reporting process internal control risk management system oversee external audit process internal audit process financial controls activity implement company risk management functions examine work plan internal audit review relationship external auditor reference work performed external auditor well independence fees terms engagement perform duties responsibilities assigned board year audit risk committee held nine meetings january february march april july july october november december average attendance rate mainly review senior management internal audit department external auditor board statutory auditors significant internal external audit findings financial matters required audit risk committee terms reference make relevant recommendations board audit risk committee review covered inter alia audit plan year findings internal audit department external auditor reporting activities internal controls audit activities supply chain risk assessment annual review continuing connected transactions group group budget year sustainability report year ended december connected transactions extraordinary transactions third parties group policies selection process new external auditor appointed shareholders meeting three year period methodology applied impairment test tax legal updates financial reporting matters including annual results year ended december interim financial results six months ended june quarterly results three months ended march nine months ended september respectively recommending board approval audit risk committee also held three meetings january february february examine recommend board approval group budget review connected transactions extraordinary transactions third parties give updates selection process new external auditor appointed shareholders meeting three year period recommend board discuss audit activities separate financial statements annual report company presented deloitte touche evaluate methodology applied impairment test discuss status major pending litigations including tax litigations group update internal audit risk management activities review year annual results sustainability report continuing connected transactions internal audit department audit risk committee reports corporate governance external auditor compensation total fees expenses accrued favor deloitte touche network audit financial statements year year ended december together non audit services illustrated amounts thousands euros type service audit firm provided twelve months ended december twelve months ended december audit services deloitte touche prada audit services deloitte touche subsidiaries audit services deloitte network subsidiaries total audit fees deloitte network advisory services deloitte network prada advisory services deloitte network subsidiaries total non audit fees deloitte network total compensation deloitte network remuneration committee primary duties remuneration committee make recommendations board company policy structure remuneration package directors senior management establishment formal transparent procedure developing policies remuneration recommendations remuneration committee submitted board consideration adoption appropriate current members remuneration committee appointed board april consist two independent non executive directors anna maria rugarli chairwoman appointed april yoël zaoui executive deputy chairman executive director paolo zannoni former members remuneration committee whose mandate elapsed april also two independent non executive directors marina sylvia caprotti chairwoman yoël zaoui executive deputy chairman executive director paolo zannoni year remuneration committee held three meetings march april july average attendance rate recommend remuneration directors vested special offices review remuneration directors board committees members board statutory auditors review remuneration senior management company review discuss fringe benefits provide update existing long term incentive lti plans remuneration committee also held one meeting january review provide update remuneration executive directors top management company new lti plan three year period review terms reference remuneration committee remuneration policy group remuneration policy aimed attracting rewarding retaining personnel considered key success group business human capital preserved constant monitoring order maintain engagement company remuneration policy line market ensure company ability attract retain talent company remuneration policy built upon principles providing equitable market competitive remuneration package supports performance culture enable achievement strategic business goals group remuneration policy designed reward retain highly professional staff skilled managers new annual report graduates workers create value medium long term constant organisational learning consolidation collaborators experiences skills policy comprises fixed variable direct deferred components appropriate relevant position professional qualifications consistent needs various geographic areas group incentive system links compensation annual performance group taking account group economic financial objectives well objectives department depending role specific individual group adopted long term cash incentive plans executive directors senior managers key managers retention purposes entitlement benefits plans vests eligible executive director senior manager key manager subject achievement group one economic financial objectives well certain esg targets presence within group end three year period incentive schemes specific sales staff also place operations manufacturing staff group may receive collection bonus following development seasonal collection aggregate basic remuneration board approved shareholders general meeting additional remuneration director vested special offices executive directors members board committees determined board considered recommendation remuneration committee opinion board statutory auditors current remuneration package executive directors receive remuneration form fees salaries benefits discretionary bonuses incentives including non monetary benefits allowances contributions contributions retirement benefits schemes independent non executive directors receive remuneration form fees contributions retirement benefits schemes case may director allowed approve remuneration nomination committee primary duties nomination committee determine policy nomination directors make recommendations board consideration appropriate adoption structure size composition board selection new directors succession plans directors current members nomination committee appointed board april consist two independent non executive directors cristiana ruella chairwoman appointed july pamela yvonne culpepper one executive director lorenzo bertelli former members nomination committee whose mandate elapsed april also two independent non executive directors maurizio cereda chairman marina sylvia caprotti one executive director lorenzo bertelli year nomination committee held two meetings february march average attendance rate perform annual review independence independent non executive directors structure size composition board year ended december provide recommendations structure size composition new board new board statutory auditors appointed agm line director nomination policy board diversity policy review list new directors new statutory auditors submitted majority shareholder prada holding proposed agm nomination committee also held one meeting february review terms reference perform annual review independence independent non executive directors structure size composition board year view achieving sustainable balanced development company viewed diversity board level essential element attain strategic objectives development board diversity policy originally corporate governance adopted board september january board adopted new version board diversity policy substantially line previous version updated current applicable listing rules well compliant recent best practices according principles set board diversity policy board members appointments based merit candidates proposed selected based objective criteria due regard diversity within board diversity sense encompasses wide range factors including limited gender age cultural educational background professional experience skills knowledge final selection based merit contribution candidates bring board throughout year appointment current board occurred agm board four female directors three independent non executive directors representing approximately board independent non executive directors result appointment current board agm date annual report board five female directors four independent non executive directors representing approximately board independent non executive directors company committed maintaining board appropriate level female members shall less independent non executive directors members board year nomination committee delegated overall responsibility implementing monitoring implementation board diversity policy nomination committee discusses revisions may required ensure effectiveness board diversity policy access independent external consultants recommends revisions board approval march board first adopted nomination policy directors director nomination policy provides guidance proposal appointment appointment directors fill casual vacancies sets processes criteria nomination candidate directorship company company adopted director nomination policy regulate nomination process directors ensure nominations board members made fair transparent manner order maintain appropriate balance skills experience diversity within board relevant company strategy governance business contribute effectiveness efficiency board management january board adopted new version director nomination policy substantially continuity previous version updated current applicable listing rules well compliant recent best practices director nomination policy contains number factors assessing suitability proposed candidate including high ethical character reputation integrity professional qualifications skills knowledge experience available time commitment merit potential contributions board well independence criteria listing rules applicable including independence long serving independent non executive directors applicable nomination committee considers candidates proposed shareholders new directorship election make recommendations board consideration board decide whether proposed candidate shall eligible appointed appointed case may director company turn recommend shareholders vote favor relevant resolutions proposed shareholders general meeting company sustainability committee sustainability committee assists supports board proposing advisory functions assessments decisions sustainability meaning processes initiatives activities aimed overseeing company commitment sustainable development along value chain strategy moreover committee supports preparation review non financial reports including annual sustainability report communications concerning sustainability submitted board approval directors report includes governance sustainability issues company approaches manages group material esg topics current members sustainability committee appointed board april consist two independent non executive directors pamela yvonne culpepper chairwoman anna maria rugarli one executive director lorenzo bertelli former sustainability committee consisted members current sustainability committee year sustainability committee held five meetings january february july october december average attendance rate discuss approve sustainability report annual report year ended december provide updates progress achievements esg strategy group corporate industrial sustainability discuss establishment diversity equity inclusion executive committee prada usa corp new group governance review discuss main initiatives partnerships support esg related projects review discuss esg information included presentation financial results year ended december first half year sustainability committee also held one meeting february discuss approve sustainability report year provide updates progress achievements esg strategy group corporate industrial sustainability board statutory auditors italian law joint stock company required board statutory auditors appointed shareholders term three financial years authority supervise company compliance applicable laws regulations laws principles proper management particular adequacy functioning organisational administrative accounting structure adopted company agm board statutory auditors appointed term three financial years mandate current board statutory auditors expire shareholders general meeting approve financial statements company year ending december board statutory auditors company consists roberto spada chairman maria luisa mosconi patrizia arienti alternate statutory auditors stefania bettoni cristiano proserpio directors responsibility auditors responsibility consolidated financial statements directors responsible preparing consolidated financial statements group year ensure consolidated financial statements give true fair view state affairs group preparing consolidated financial statements directors selected suitable accounting policies made prudent reasonable judgments estimates consolidated financial statements prepared going concern basis accordance international financial reporting standards issued international accounting standards board adopted european union addition board generally satisfied adequacy resources staff qualifications experience training program budget company accounting financial reporting function year respect external auditor company responsibilities stated auditor reports consolidated financial statements internal control risk management group internal control system mainly designed safeguard assets group maintain proper accounting standards ensure appropriate authority given performance acts company comply relevant laws regulations group adopted strict anti corruption policy auditor transactions policy support anti corruption laws regulations monitoring independence external auditor better control activities achieving established objectives group adopted procedures identify evaluate manage specific risks arising continuous changes affect group operations regulatory framework subject corporate governance board adopted whistleblowing policy provides reporting channels guidance employees parties deal group contractors suppliers etc report possible improprieties matters financial reporting matters whistleblowing policy anti corruption policy available company website board places great importance maintaining sound effective internal control risk management system safeguard shareholders investment company assets board acknowledged responsibility internal control risk management system including financial operational compliance controls functions ongoing monitoring review effectiveness system designed manage rather eliminate risks aimed providing reasonable absolute assurance material misstatement loss management support internal audit department responsibility delegated board identify evaluate manage risk factors may affect group operations resolve material internal control defects may arise particular year internal audit department assessed company activities controls mitigate health safety risk work well risk data breach cyber attack internal audit department provides independent review adequacy effectiveness internal control risk management system audit plan discussed agreed every year audit risk committee submitted board approval addition agreed annual schedule work internal audit department conducts special reviews required risk assessment documents periodically updated internal audit department support management reviewed audit risk committee submitted board approval board received specific confirmation relevant management personnel company effectiveness group internal control risk management system throughout year year significant control failings weaknesses identified board support audit risk committee reviewing internal control risk management system group ongoing basis frequency regular board meetings held generally satisfied internal control risk management system functioned effectively adequate group whole throughout year moreover board generally satisfied adequacy resources staff qualifications experience training program budget company internal audit risk management function year supervisory body organismo vigilanza compliance italian legislative decree june decree company established supervisory body organismo vigilanza whose primary duty ensure functioning effectiveness enforcement company organization management control model adopted company pursuant decree supervisory body three members appointed board selected among qualified experienced individuals current members supervisory body including chairwoman appointed board april consists stefania chiaruttini chairwoman armando simbari roberto spada chairman board statutory auditors inside information company handles disseminates inside information accordance requirements securities futures ordinance listing rules regard procedures internal controls handling dissemination inside information company adopted inside information disclosure policy ensure potential inside information identified annual report confidentiality maintained timely proper disclosure made inside information disclosure policy reviewed updated board january made available company intranet inside information disclosure policy order ensure immediate access entire group staff included procedures governing directors relevant employees prohibition dealing company shares whilst possession inside information authorized executive directors selected members management act spokespersons respond external enquiries addition board established inside information committee whose current members appointed april consist chairman board executive director patrizio bertelli executive deputy chairman board executive director paolo zannoni chief financial officer executive director andrea bonini inside information committee delegated power assess necessary potential inside information keep directors timely informed decisions company secretary year tong pui ting wendy undertook hours relevant professional training update skills knowledge biography set directors senior management section annual report shareholders rights convening shareholders general meeting shareholders request pursuant article company laws shareholders general meeting called board requested shareholders representing least one twentieth company share capital provided request mentions item discussed meeting unjustified delay calling meeting board action taken board statutory auditors putting forward proposals shareholders general meeting pursuant article company laws shareholders individually jointly control least one fortieth company share capital may request writing additions made list items agenda within ten days notice call shareholders general meeting setting proposed additions proposals directed company email corporateaffairs prada com making enquiry board enquiries matters put forward board directed company email corporateaffairs prada com company normally deal verbal anonymous enquiries procedures shareholders propose person election director procedures shareholder nominate person election director company set articles company laws details disclosed company corporate website www pradagroup com constitutional documents current laws company laws adopted shareholders meeting april available viewing websites company stock exchange corporate governance communication shareholders dividend policy march board formalized adopted dividend policy set framework company put place relation dividend payouts shareholders company aims provide shareholders sustainable dividend stream taking account financial results cash flow situation working capital requirements capital expenditures investment requirements future operations earnings business conditions strategies interests shareholders statutory regulatory restrictions including italian law company laws payment dividends board reviews dividend policy time time may adopt changes appropriate ensure effectiveness dividend policy board reviewed updated dividend policy january agm shareholders approved distribution final dividend euro per share financial year ended december representing total dividend euro paid may investor relations communication company endeavors maintain high level transparency communicating shareholders financial community general company maintained regular dialogue fair disclosure institutional shareholders fund managers research analysts finance media investor analysts briefings one one meetings investor conferences results briefings conducted regular basis order facilitate communication company shareholders investment community company strives ensure effective timely dissemination information shareholders investment community times regularly review arrangements ensure effectiveness company corporate website www pradagroup com facilitates effective communications shareholders investors stakeholders making corporate information relevant financial non financial information available electronically timely basis includes extensive information group performance activities via annual report interim report social responsibility report press releases presentations announcements circulars shareholders notices general meetings etc board adopted shareholders communication policy subject annual review ensure effectiveness implementation july board adopted new version shareholders communication policy substantially continuity previous version updated current applicable listing rules including new rule well compliant recent best practices company generally satisfied implementation shareholders communication policy functioned effectively throughout year shareholders meetings company strives maintain going dialogue shareholders shareholders encouraged participate general meetings either person appointed proxies attend vote meetings behalf unable attend meetings process company general meeting monitored reviewed regular basis company uses shareholders general meeting one main channels communicating shareholders ensure shareholders views communicated board shareholders general meeting substantially separate issue proposed considered separate resolution including election individual directors agm held online directors including executive deputy chairman chief executive officer majority independent non executive directors company secretary external auditor company deloitte touche majority members board statutory auditors scrutineer attended agm annual report resolutions submitted shareholders agm duly passed voting results resolutions disclosed announcement company dated april computershare hong kong investor services limited company hong kong share registrar acted scrutineer vote taking agm corporate communications order increase efficiency communication shareholders contribute environmental protection company adopted electronic dissemination corporate communications compliance new rule listing rules send corporate communications printed form shareholders upon request english chinese versions corporate communications available electronically company website www pradagroup com hkexnews website www hkexnews consolidated financial statements chapter annual report consolidated statement financial position amounts thousands euro notes december december assets current assets cash cash equivalents trade receivables net inventories net derivative financial instruments current receivables due advance payments related parties current current assets total current assets non current assets property plant equipment intangible assets right use assets investments equity instruments associates joint ventures deferred tax assets non current assets derivative financial instruments non current receivables due advance payments related parties non current total non current assets total assets liabilities equity current liabilities lease liabilities current short term financial payables bank overdrafts payables due related parties current trade payables tax payables derivative financial instruments current current liabilities total current liabilities non current liabilities lease liabilities non current long term financial payables long term employee benefits provisions risks charges deferred tax liabilities non current liabilities derivative financial instruments non current total non current liabilities total liabilities share capital total reserves translation reserve net income year equity attributable owners group equity attributable non controlling interests total equity total liabilities total equity consolidated financial statements consolidated statement profit loss year ended december amounts thousands euro notes twelve months ended december net revenues twelve months ended december net revenues net revenues cost goods sold gross margin operating expenses operating income ebit interest financial income expenses net interest expenses lease liabilities dividends investments total financial expenses income taxation taxation net income year net income non controlling interests net income group basic diluted earnings per share euro per share annual report consolidated statement comprehensive income year ended december amounts thousands euro twelve months ended december twelve months ended december net income year items may reclassified subsequently foreign exchange differences translation foreign operations tax impact change translation reserve less tax impact gains losses cash flow hedging instruments tax impact change cash flow hedge reserve less tax impact items reclassified subsequently change fair value investments equity instruments reserve tax impact change fair value investments equity instruments reserve less tax impact gains losses remeasurement defined benefit plans tax impact change actuarial reserve less tax impact comprehensive income year consolidated comprehensive income year non controlling interests comprehensive income year group consolidated financial statements consolidated statement cash flows year ended december amounts thousands euro twelve months ended december twelve months ended december income taxation profit loss adjustments depreciation right use assets depreciation amortisation property plant equipment intangible assets impairment right use assets impairment property plant equipment intangible assets non monetary financial expenses interest expenses lease liabilities non monetary expenses balance sheet changes non current assets liabilities trade receivables net inventories net trade payables current assets liabilities cash flows operating activities interest paid net including interest paid lease liabilities taxes paid net cash flows operating activities purchases property plant equipment intangible assets proceeds sale assets disposals equity instruments dividends investments purchase equity instruments acquisition additional shares non controlling interests net cash flow utilised investing activities dividends paid shareholders prada dividends paid non controlling shareholders repayment lease liabilities repayment current portion long term borrowings third parties arrangement long term borrowings third parties change short term borrowings third parties capital increase non controlling shareholders loans related parties capital injection associates net cash flows utilised financing activities change cash cash equivalents net bank overdrafts foreign exchange differences opening cash cash equivalents net bank overdrafts closing cash cash equivalents net bank overdrafts annual report consolidated statement changes equity amounts thousands euro except number shares equity amounts thousands euro number shares share capital translation reserve share premium reserve cash flow hedge reserve actuarial reserve fair value investments equity instruments reserve reserves total reserves net income year equity attributable owners group equity attributable non controlling interests total equity balance december allocation net income dividends share capital increase monetary revaluation ias comprehensive income loss year recyclable comprehensive income loss year recyclable balance december allocation net income dividends acquisition additional shares non controlling interests monetary revaluation ias movements comprehensive income loss year recyclable comprehensive income loss year recyclable balance december prada separate financial statements chapter annual report prada statement financial position amounts thousands euro december december assets current assets cash cash equivalents trade receivables net inventories net derivative financial instruments current financial receivables receivables due advance payments parent company subsidiaries associates related parties current current assets total current assets non current assets property plant equipment intangible assets right use assets investments deferred tax assets non current assets derivative financial instruments non current financial receivables receivables due advance payments parent company subsidiaries associates related parties non current total non current assets total assets liabilities shareholders equity current liabilities lease liabilities current short term financial payables bank overdrafts financial payables payables due parent company subsidiaries associates related parties current trade payables tax payables derivative financial instruments current current liabilities total current liabilities non current liabilities lease liabilities non current long term financial payables long term employee benefits provisions risks charges deferred tax liabilities non current liabilities derivative financial instruments non current total non current liabilities total liabilities share capital total reserves net income year total equity total liabilities total equity prada separate financial statements prada statement profit loss year ended december amounts thousands euro twelve months ended december twelve months ended december net revenues cost goods sold gross margin operating expenses operating income ebit interest financial income expenses net interest expenses lease liabilities dividends investments total financial expenses income taxation taxation net income year prada statement comprehensive income year ended december amounts thousands euro twelve months ended december twelve months ended december net income year items may reclassified subsequently gains losses cash flow hedging instruments tax impact change cash flow hedge reserve less tax impact items reclassified subsequently change fair value investments equity instruments reserve tax impact change fair value investments equity instruments reserve less tax impact gains losses remeasurement defined benefit plans tax impact change actuarial reserve less tax impact comprehensive income year annual report prada statement cash flows year ended december amounts thousands euro twelve months ended december twelve months ended december income taxation profit loss adjustments depreciation right use assets depreciation amortisation property plant equipment intangible assets impairment property plant equipment intangible assets losses gains disposal non current assets impairment investments interest expenses lease liabilities non monetary financial income expenses non monetary expenses balance sheet changes trade receivables net inventories net trade payables current assets liabilities non current assets liabilities cash flows operating activities interest received paid net including interest paid lease liabilities taxes paid net cash flows operating activities purchase property plant equipment intangible assets investments subsidiaries associates financial investments disinvestments dividends received investments net cash flow utilised investing activities dividends paid shareholders change short term bank loans change intercompany loans loans repaid subsidiaries loans repaid subsidiaries repayment lease liabilities loans made subsidiaries repayment short term portion long term borrowings third parties net cash flows utilised financing activities change cash cash equivalents net bank overdrafts opening cash cash equivalents merged companies opening cash cash equivalents net bank overdrafts closing cash cash equivalents net bank overdrafts prada separate financial statements prada statement changes equity amounts thousands euro except number shares amounts thousands euro number shares share capital share premium reserve legal reserve reserves retained earnings cash flow hedge reserve fair value investments equity instruments reserve total reserves net income year total equity balance december allocation net income movements dividends comprehensive income loss year recyclable comprehensive income loss year recyclable balance december allocation net income movements dividends comprehensive income loss year recyclable comprehensive income loss year recyclable balance december chapter notes consolidated financial statements notes consolidated financial statements general information prada prada company together subsidiaries collectively group prada group listed hong kong stock exchange hkse code prada group leading player luxury goods industry operates prada miu miu church car shoe brands producing distributing leather goods footwear ready wear also operates food sector marchesi brand prestigious sailing races luna rossa eyewear beauty industries licensing agreements group owns industrial facilities italy united kingdom france romania products sold countries worldwide mainly directly operated stores numbered december prada group products also sold directly brands commerce activity indirectly selected high end department stores independent retailers exclusive locations important tailers company joint stock company limited liability registered domiciled italy registered ofﬁce via fogazzaro milan december reporting date consolidated financial statements share capital owned prada holding company domiciled italy remainder consisted floating shares listed main board hong kong stock exchange consolidated financial statements approved authorized issue board directors prada march basis preparation consolidated financial statements prada group december consist consolidated statement financial position consolidated statement proﬁt loss year ended december consolidated statement comprehensive income year ended december consolidated statement cash flows year ended december consolidated statement changes equity notes consolidated financial statements prepared accordance international financial reporting standards ifrss issued international accounting standards board iasb endorsed european union date presentation consolidated financial statements differences ifrss endorsed european union applicable prada group issued iasb ifrss also refer international accounting standards ias interpretations international financial reporting interpretations committee ifric previously called standing interpretations committee sic group prepared consolidated statement financial position presenting separately current non current assets liabilities details needed accurate complete disclosure provided notes consolidated financial statements consolidated statement profit loss items classified function expenses consolidated statement cash flows prepared indirect method consolidated financial statements presented euro functional currency prada consolidated financial statements prepared going concern basis annual report new ifrs amendments ifrs amendments existing standards issued iasb endorsed european union applicable prada group january amendments existing standards effective date prada group endorsement dates amendments ifrs leases lease liability sale leaseback issued september january november amendments ias presentation financial statements classification liabilities current non current deferral effective date non current liabilities covenants january december amendments ias statement cash flows ifrs financial instruments disclosures supplier finance arrangements issued may january may introduction amendments effect consolidated financial statements amendments existing standards issued iasb endorsed european union yet applicable prada group effective annual periods beginning january amendments existing standards effective date forprada group endorsement dates amendments ias effects changes foreign exchange rates lack exchangeability issued august january november new standards amendments existing standards issued iasb yet endorsed european union december new standards amendments existing standards date possible application endorsement status amendments classification measurement financial instruments amendments ifrs ifrs issued may january endorsed yet annual improvements volume issued july january endorsed yet contracts referencing nature dependent electricity amendments ifrs ifrs issued december january endorsed yet ifrs presentation disclosure financial statements issued april january endorsed yet ifrs subsidiaries without public accountability disclosures issued may january endorsed yet date consolidated financial statements directors yet completed analysis necessary assess impacts new standards interpretations yet applicable prada group terms already endorsed yet endorsed european union scope consolidation consolidated ﬁnancial information comprises accounts prada italian foreign companies company right exercise control either directly indirectly investor controls investee exposed rights variable returns involvement investee ability use power affect returns investee companies group voting rights controlled group way consolidated using full consolidation method date group gains control notes consolidated financial statements date control ceases associates consolidated using equity method companies group signiﬁcant inﬂuence exercise control significant influence defined power participate financial operating policy decisions investee without control joint control companies included consolidated financial statements listed note basis consolidation main consolidation procedures used prepare consolidated financial statements explained separate financial statements prada subsidiaries prepared accordance ifrs subsidiaries adjusted necessary comply ifrs standards applied throughout group financial statements used prepare consolidated financial information reporting date financial statements subsidiaries consolidated using full consolidation method incorporating entire amount assets liabilities revenues expenses company irrespective percentage ownership held eliminating carrying amount consolidated equity interests owned directly indirectly company corresponding portion related equity fully consolidated companies wholly owned parent company portions equity annual profit loss belonging third parties shown separately net equity attributable non controlling interests consolidated statement financial position net income non controlling interests consolidated statement profit loss business combinations difference purchase price equity interest acquired corresponding portion equity acquisition date allocated positive identifiable assets acquired liabilities assumed measured fair value residual amount positive recognised goodwill negative recognised immediately consolidated statement profit loss difference cost acquisition additional controlling interest related value interest acquired recognised directly equity reserves business combination achieved stages step acquisition previous held interest owned company acquired remeasured fair value date control acquired differences identified manner recognised profit loss business combinations common control difference purchase price equity interest acquired corresponding portion equity recognised directly equity acquisition cost equity interest activity constitute business therefore originate business combination allocated individual assets acquired liabilities assumed measured fair value acquisition date resulting profits losses assets liabilities associates accounted using equity method method investments associates recognised consolidated statement financial position cost subsequently adjusted reflect post acquisition changes impairment losses losses exceeding parent company owners interest associate recognised unless group taken obligation cover losses excess cost acquisition company share fair value assets acquired liabilities assumed acquisition date accounted goodwill goodwill included carrying amount investment tested impairment excess cost acquisition company share fair value identifiable assets liabilities contingent liabilities acquisition date recognised consolidated statement profit loss period acquisition consolidation process payables receivables expenses revenues deriving transactions consolidated companies eliminated unrealized profits losses deriving transactions annual report group consolidated companies included inventory valuation reporting date eliminated unrealized losses eliminated except transaction provides evidence impairment asset transferred case value transferred asset written dividends distributed consolidated companies eliminated consolidated statement profit loss added retained earnings extent extracted financial statements subsidiaries prepared respective local currency assets liabilities translated euro using end period exchange rate income expenses translated using average exchange rate period translation average exchange rate present transaction fairly exchange rate prevailing date transaction used translate effect consolidated statement profit loss differences arising translating statement financial position balances beginning end period differences arising translating statement profit loss items average exchange rate period another exchange rate mentioned end period recognised translation reserve consolidated equity disposal investee translation reserve includes accumulated translation differences generated since first time consolidation january preparation consolidated statement cash flows cash flows subsidiaries translated using average exchange rate period exchange differences arising monetary item qualified net investment foreign operation initially recognised translation reserve subsequently released profit loss upon disposal investment reporting currency consolidated financial statements euro amounts expressed thousands euro unless stated otherwise material accounting policies cash cash equivalents cash cash equivalents recognised nominal value cash equivalents include highly liquid investments originally short term maturity solely purpose statement cash flows cash cash equivalents include cash hand bank accounts deposit accounts bank overdrafts current portions due banks medium long term loans recognised statement financial position short term financial payables bank overdrafts trade receivables payables trade receivables recognised nominal value net bad debt provision determined basis requirements set ifrs according standard receivables written following application expected loss impairment method together necessary impairments recognised upon specific doubtful conditions single credit positions trade accounts payable recognised fair value amortised cost transactions denominated foreign currency recognised exchange rate date transaction reporting date transactions denominated foreign currencies translated using exchange rate reporting date gains losses arising translation reflected profit loss inventories raw materials work progress finished products recognised lower acquisition production cost net realizable value cost comprises direct production costs indirect incurred bringing inventories present location condition acquisition production cost determined weighted average cost method provisions adjusting value inventories made slow moving obsolete inventories end estimated selling price realizable value reasonably expected lower cost property plant equipment property plant equipment recognised purchase cost production cost including charges directly notes consolidated financial statements attributable shown net accumulated depreciation calculated basis useful lives assets net impairment losses ordinary maintenance expenses charged full profit loss year incurred extraordinary maintenance expenses capitalized increase value useful life related asset costs included leasehold improvements relate refurbishment works carried premises mainly commercial owned group depreciation methods useful lives net book values reviewed annually depreciation rates representing useful lives listed category property plant equipment depreciation rate period land depreciated buildings construction production facilities equipment improvements leased retail premises shorter lease term useful life improvements leased industrial corporate premises shorter lease term useful life furniture fixture retail shorter lease term useful life furniture fixture corporate industrial tangible fixed assets assets construction lease term includes renewal period exercise option deemed reasonably certain assets sold disposed cost accumulated depreciation eliminated financial statements gains losses recognised profit loss term lease agreement terminated advance useful life non current assets related premise adjusted consistently value land stated separately value buildings depreciation charged value buildings property plant equipment subsequently carried cost less accumulated amortisation impairment losses described paragraph impairment test current section owned investment property recognised acquisition cost cost purchased investment property comprises purchase price directly attributable expenditure includes example professional fees legal services property transfer taxes transaction costs initial recognition investment property measured using cost model intangible assets identifiable assets controlled group capable producing future economic benefits included intangible assets intangible assets include trademarks licenses store lease acquisition costs software development costs goodwill trademarks recognised cost value attributed upon acquisition include cost trademark registration various countries group operates directors estimate useful life years trademarks assuming risks limitations control use every trademark tested impairment whenever indicators impairment emerge useful life trademark registration costs estimated years caption trademark also includes intellectual property rights useful life determinated accordance relevant contracts store lease acquisition costs key money represent expenditures incurred enter take retail store lease agreements lease contracts fall application ifrs leases store lease acquisition included within initial direct costs contribute formation right use assets otherwise store lease acquisition intangible assets annual report intangible assets definite useful life subsequently carried cost less impairment losses amortised straight line basis following rates category intangible assets amortisation rate period trademarks intellectual property rights store lease acquisition costs shorter lease term useful life software development costs intangible assets assets progress lease term includes renewal period exercise option deemed reasonably certain intangible assets indefinite useful lives amortised tested impairment least per year group report intangible assets indeﬁnite useful lives goodwill asset produces future economic benefits individually identified separately measured initially recognised cost goodwill amortised tested impairment every year check value impaired specific events altered circumstances indicate possibility goodwill impaired impairment test performed frequently impairment test intangible assets indefinite useful lives tested impairment least per year goodwill acquired business combination shall acquisition date allocated cash generating units cgu group cgus expected benefit synergies combination cgus group cgus determined based organisational structure group represent groups assets generate independent cash inflows continuing use relevant assets group cgus goodwill allocated tested impairment annually whenever indication impairment carrying value cash generating unit compared recoverable amount changes composition one cash generating units goodwill allocated occur goodwill reallocated units affected property plant equipment right use assets intangible assets goodwill tested impairment whenever events changes circumstances indicate carrying amount may recoverable purposes assessing impairment assets grouped lowest levels separately identifiable cash inflows largely independent cash inflows assets groups assets cgus carrying amount cgus group cgus tested impairment consolidation purposes represented net invested capital means net equity adjusted net financial position including lease liabilities recoverable amount higher fair value less costs sell value use calculated based estimate future cash flows expected derive cash generating unit tested impairment estimated cash flow based budget forecast long term projections approved management long term growth rate calculated applied project future cash flows assessing value use estimated future cash flows discounted present value using discount rate post tax reflects current market assessments time value money risks specific cgu impairment loss recognised profit loss period whenever recoverable amount cash generating unit group cash generating units lower book value non current assets goodwill suffered impairment reviewed possible reversal impairment end reporting period impairment loss recognised goodwill never reversed subsequent years segment reporting operating segments reported manner consistent internal reporting provided top management reportable segment identified previous years corresponds entire prada group details found note operating segments notes consolidated financial statements right use assets lease liabilities right use assets lease liabilities regulated ifrs leases apply lease contracts provide payment fixed rents including indexed set guaranteed minimum group recognise right use assets lease liabilities commencement date lease based lease term identification lease term important especially field real estate form legislation common business practice vary considerably one jurisdiction another group determines lease term non cancellable period lease together periods covered option extend terminate lease control company management evaluates exercise option considered reasonably certain based several factors circumstances create incentive lessee exercise exercise option including expected changes facts circumstances commencement date exercise date option lease term begins commencement date lease defined date lessor makes underlying asset available use lessee date lessee initially recognises measures right use assets lease liabilities commencement date necessarily date depreciation right use assets starts retail premises asset leased ready use works premises completed therefore depreciation right use assets shall begin completion works necessary bring store working condition according management instructions consistently ias requirements right use assets measured cost identified initial measurement lease liabilities increased initial direct costs incurred lessee key money legal fees agent fees incremental costs incurred conclude contract restoration cost necessary bring back premises original condition right use assets depreciated lease term shorter useful life asset lease liabilities measured present value lease payments paid date lease payments discounted using incremental borrowing rate calculated group level profit loss caption interest expenses ifrs represents adjustment present value lease liabilities since leases stipulated group interest rate implicit lease discount rate applicable future lease payments determined risk free rate contract currency leases stipulated payment dates based terms specific lease increased parent company credit spread lease modification occurs change scope lease consideration lease part original terms conditions lease example adding terminating right use one underlying assets extending shortening contractual lease term effective date modification defined date parties agree lease modification occurs right use assets lease liabilities updated accordingly lease terminated original lease term date defined commencement date right use assets lease liabilities remeasured impacting also profit loss statement addition options extension early termination lease agreements evaluated significant event change occurs circumstances control group influence assessment reasonable certainty exercise options low value contracts price asset new recognised single component basis approach less euro leases whose lease term shorter months scope ifrs leases recognised profit loss straight line basis lease term purely variable rents typically linked sales without guaranteed minimum also excluded scope application standard recognized statement profit loss period condition triggers payments occurs lessee expected make judgement whether changes substantive based understanding changes based historically managed group result group view modification contract renewal extension lease term considered substantive consistent usual practices applied group industry whole right use assets subsequently measured cost less accumulated depreciation impairment losses described paragraph impairment test current section annual report investments equity instruments associates joint ventures initial recognition investments equity instruments previously available sale purchase cost increased directly attributable transaction costs group evaluates instruments fair value related changes recognised specific equity reserve change fair value comprehensive income also included statement comprehensive income items recyclable profit loss therefore dividends received recorded statement profit loss group ifrs also provides alternative treatment allows recognition fair value changes directly profit loss fair value profit loss choice accounting treatment fvtpl fvoci done investment considered irrevocable adopted exceptions initial recognition reported notes consolidated financial statements case securities listed active markets fair value price recorded end trading day period review investments active market fair value determined based price recent transactions independent parts substantially similar instruments using valuation techniques example income assessments based flow analysis discounted financial figures associated undertakings associates recognised consolidated financial statement using equity method associates companies group signiﬁcant inﬂuence exercise control significant influence defined power participate financial operating policy decisions investee without control joint control deferred tax assets deferred tax assets amounts income taxes recoverable future periods relation deductible temporary differences carryforward unused tax losses deductible temporary differences differences carrying amount asset liability statement financial position tax value determining taxable income future years result deductible amounts carrying amount asset liability realized settled deferred tax assets recognised deductible temporary differences tax losses carried forward unused tax credits extent probable taxable income available future years deductible temporary differences used recoverability reviewed every year end deferred tax assets measured tax rates expected apply period asset realized based tax rates tax laws enacted substantively enacted reporting date deferred tax assets discounted deferred tax assets recognised profit loss unless tax amount generated transaction event directly recognised equity business combination derivative financial instruments derivative financial instruments hedge interest rate risk exchange rate risk exposure recognised fair value based hedge accounting rules according rules within framework ifrs future cash flow hedging contracts listed qualified cash flow hedges hedge accounting treatment allowed derivative financial instruments designated hedge exposure changes future cash flows recognised asset liability highly probable transaction could affect profit loss case change fair value hedging instrument recognised shareholders equity accumulated gains losses reversed shareholders equity recognised profit loss period profit loss effect hedged operation recognised gain loss hedging instrument portion thereof longer effective cash flow hedge immediately recognised profit loss hedged transaction longer expected take place related cumulative gain loss outstanding equity recognised profit loss non current financial liabilities non current financial liabilities include payables banks medium long term loans non current financial liabilities initially recognised fair value transaction date less transaction costs directly attributable acquisition initial recognition non current financial liabilities valued amortised cost means initial amount less principal repayments already made plus minus amortisation using effective interest method difference initial amount maturity amount notes consolidated financial statements employee benefits defined benefit plans recognised using actuarial techniques estimate amount obligations resulting employee service current past periods discounting determine present value group obligations present value obligations determined independent actuary using projected unit credit method actuarial gains losses recognised directly equity net tax effect long term employee benefits recognised among non current liabilities value corresponds present value defined benefit obligation reporting date adjusted according period underlying agreement recognition benefits usually subject attainment specific earnings group payment deferred time keep beneficiaries organisation remeasured using indices relating group profitability market value like defined benefit plans long term benefits also valued using projected unit credit method unlike defined benefits plans actuarial gains losses long term benefits recognised profit loss rather net equity long term employee benefits form share based payments phantom shares cash settled fall within scope ifrs benefits measured fair value estimation follows risk neutral approach model risk free rate curve deducted euro area rates valuation date addition expected dividend rate underlying taken account liability settled fair value restated date year settlement date changes fair value recognised profit loss provisions risks charges contingent assets prada group mainly involved civil tax disputes related provisions risks charges booked financial statements basis historical experience basis assumptions concerning future events difficult predict also depending factors full control group therefore possible reporting period departures estimates made actual results materialise might necessary make adjustments values liabilities recognised application exemptions disclosures required ias applied could prejudice seriously position group dispute parties subject matter provision contingent liability contingent asset deferred tax liabilities deferred tax liabilities amounts income taxes due future periods respect taxable temporary differences taxable temporary differences differences carrying amount asset liability statement financial position tax base determining taxable income future years result taxable amounts carrying amount asset liability recovered settled deferred tax liabilities recognised taxable timing differences except liability generated initial recognition goodwill initial recognition asset liability transaction business combination affect accounting result tax result transaction date deferred tax liabilities measured tax rates expected apply period liability settled based tax rates tax laws enacted substantively enacted reporting date deferred tax liabilities discounted deferred tax liabilities recognised profit loss unless tax amount generated transaction event directly recognised equity business combination accounting hyperinflationary economies non monetary assets liabilities gains losses entities whose functional currency currency hyperinflationary economy restated reflect changes general pricing power functional currency accordance ias applying change general price index date items acquired incurred end reporting period therefore non monetary items recognised historical cost opening statement financial position restated reflect effect inflation date assets acquired liabilities incurred assumed date previous year closing statement financial position effect recognised equity afterward corresponding restated data subsequent financial statements statement profit loss items restated applying change general price index current reporting period thereby generating gain loss charged income statement specific item called net monetary position gain loss moreover ias states financial statements subsidiary whose functional currency currency annual report hyperinflationary economy must translated different presentation currency amounts assets liabilities items equity income expenses must translated closing rate reporting period except comparative amounts translated currency non hyperinflationary economy since june turkish economy considered hyperinflationary according definition criteria set ias financial reporting hyperinflationary economies inflation turkey risen exponentially cumulative inflation rate three years exceeds dec dec june dec dec dec three year cumulative cpi source turkish statistical institute revenue recognition cost recognition revenues sale goods recognised profit loss following criteria satisfied identification contract writing orally accordance customary business practices customer identification performance obligations contract determination transaction selling price performance obligations amount revenue transaction selling price measured reliably significant risks rewards ownership transferred buyer control goods sold ceased economic benefits generated transaction probably enjoyed group costs pertaining transaction reliably measured performance obligation satisfied royalties accounted based sales made licensees terms contracts costs recognised accrual basis particular cost immediately recognised profit loss expense generate future economic benefit future economic benefits qualify cease qualify assets recognition statement financial position liability incurred asset recognised pre opening rents costs incurred pre opening period new refurbished retail stores charged profit loss incurred except suspension depreciation right use assets interest expenses interest expenses might include interest bank overdrafts short long term loans financial charges related adjustments present value lease liabilities amortisation initial costs loan operations changes fair value derivatives insofar chargeable profit loss annual interest maturing present value post employment benefits interests late payments taxation provision taxation determined based realistic estimate tax charge consolidated entity accordance tax rates tax laws enacted substantially enacted country reporting date current taxes recognised profit loss expense except taxes deriving transactions events directly recognised shareholders equity directly charged equity implementation global minimum tax provided directive december implementing oecd pillar proposal effective italy january per italian legislative decree december given complexity system outlined legislation ensure minimum level taxation notes consolidated financial statements first three tax periods prada group financial years possibility applying simplified regime provided called transitional safe harbours simplified regime primarily based accounting information already available jurisdiction application three tests minimis test simplified effective tax rate test routine profits test passing least one tests allows disapplication additional taxes required reach prescribed minimum tax level reduction compliance burdens top tax recorded caption taxation december related pillar jurisdictions pass transitional safe harbour tests amount accrued december best estimate effect based information known reasonably estimable date group support external consultants performed analyses calculation impacts new legislation set compliance requirements related application pillar implemented adequate company systems procedures prada group exposure arising application pillar depends fact group entities assumed aggregate level jurisdictions located pass least one three tests referred respect entities hand satisfy aggregate level jurisdictions located three tests mentioned considered profits therefore potential tax exposure arising pillar framework relevant impact profits tax liability group whole group applied temporary exception introduced may iasb amendments ias income taxes international tax reform pillar model rules regarding accounting requirements deferred taxes ias therefore group neither recognises discloses information deferred tax assets liabilities related pillar income taxes earnings losses per share earnings losses per share calculated dividing net result attributable parent company weighted average number ordinary shares issue changes accounting policies errors changes estimates accounting policies adopted change one year next change required accounting standard helps provide reliable meaningful information impact operations entity statement financial position profit loss cash flows changes accounting policy accounted retroactively effect allocated opening equity earliest periods presented comparative amounts reported prior period also adjusted new policy applied outset prospective approach adopted would impracticable restate comparative information application new amended accounting standard accounted requested standard standard regulate transition method change accounted retroactive basis impracticable prospective basis material errors treated basis changes accounting policy described non material errors corrected profit loss period error identified changes accounting estimates accounted prospectively profit loss year change made affects profit loss year profit loss year change made subsequent periods also affected change use estimates accordance ifrs preparation consolidated financial statements requires use estimates assumptions determining certain types assets liabilities revenues costs assessing contingent assets liabilities assumptions refer first operations events settled end period therefore upon payment actual outcome may differ estimated amounts estimates assumptions reviewed periodically effects change immediately recognised profit loss significant estimates used mainly impairment tests determining provisions risks bad debts annual report inventory obsolescence provision post employment benefits share based plans tax computation measurement derivatives lease term contracts renewal early termination options accordance ifrs useful life property plant equipment intangible assets impact climate change related matters financial statements group defined climate strategy objective reducing greenhouse gases ghg emissions positively contributing global goal fighting climate change strategy integrated group business model operations includes medium term carbon reduction targets related direct ghg emissions scope indirect ghg energy emissions scope indirect ghg emissions sources owned controlled company scope main actions ongoing reach targets scope following electrification industrial sites heating cooling systems switch green company car fleet increase self produced energy owned photovoltaic systems investment renewable energy procurement including collective virtual power purchase agreements cvppa effects group granted next years increase leed gold platinum certifications raw materials transition plan towards lower impact alternatives actions impact group consolidated financial statements terms investments recurring operations purchase certified renewable energy purchase lower impact raw materials management also assessed impact climate change measures taken comply climate strategy criteria preparation consolidated financial statements particular reference estimates assumptions defined section use estimates addition align performance group key personnel interests stakeholders reinforce group commitment esg issues group established long term variable incentive plan includes financial indicators achievement specified sustainability objectives fulfillment criteria taken account evaluation long term incentive plans stage management assessed impact group financial statements material identified specific asset liability whose measurement could significantly affected climate change issues impact outbreak war ukraine financial statements effects ongoing conflict considered preparation financial statements december notable impact preparation financial statements valuation assets held russia ukraine particular right use assets related lease agreements still place two countries two buildings owned moscow petersburg net book value december euro million consistently last year right use assets entirely written recoverable amount buildings assessed support leading independent real estate firm based fair value using comparative method valuation writedown recorded current fiscal year equal euro million management continue closely monitor evolution business legal scenario ensure appropriate valuation assets recognised consolidated financial statements group abide law regulations imposed mergers acquisitions significant mergers acquisitions include january prada purchased share capital prada middle east fzco result prada stake prada middle east fzco increased july prada established company prada bahrain wll aim expanding commercial notes consolidated financial statements activities bahrein december prada purchased share capital effepì operating segments accordance ifrs defines operating segment business division whose operating results regularly reviewed top management order adopt decisions allocate appropriate resources segment assess performance management identified owned brand operating segments financial statements presentation operating segments identified aggregated single reportable segment corresponds entire prada group consistent core principles ifrs noted two main brands prada miu miu similar economic business profile represent together group revenue brands represent remaining group revenue considered material main economic indicators assessed determine operating segments prada miu miu similar economic characteristics long term financial performance particular average gross margin currency competitive operating financial risks moreover prada miu miu present products similar nature similar production processes customers distribution channels therefore december identified one reportable segment occurred previous years net sales detailed information net sales distribution channel brand provided financial review together related comments amounts thousands euro twelve months ended december twelve months ended december change current exc rates change constant exc rates net revenues retail net sales directly operated stores commerce wholesale net sales independent customers franchisees royalties total net revenues retail net sales brand prada miu miu church total retail net sales retail net sales geographic area asia pacific europe americas japan middle east total retail net sales calculated excluding effect hyperinflation turkey annual report geographic information following table reports carrying amount group non current assets geographic area required ifrs operating segments entities like prada group single reportable segment amounts thousands euro december december europe americas asia pacific japan middle east africa total total amount euro million euro million december refers group non current assets excluding per ifrs relating derivatives deferred tax assets pension fund surplus consolidated statement financial position cash cash equivalents cash cash equivalents detailed follows amounts thousands euro december december cash hand bank current accounts bank deposit accounts cash equivalents total december bank accounts deposits accruing interest income yields range annually december ranges include bank accounts deposits turkish lira high yields due high inflation relevant terms amount bank deposits interest income average yield december december trade receivables net trade receivables net detailed amounts thousands euro december december trade receivables third parties allowance bad doubtful debts trade receivables related parties total notes consolidated financial statements change allowance bad doubtful debts set forth amounts thousands euro december december opening balance exchange differences increases reversals utilization closing balance inventories net inventories net broken follows amounts thousands euro december december raw materials work progress finished products return assets allowance obsolete slow moving inventories total stock increase largely attributable need support sales growth inventory allowance increased net utilisations reversal euro million allocations slow moving products raw materials changes allowance obsolete slow moving inventories follows amounts thousands euro raw materials finished products total allowance obsolete slow moving inventories opening balance exchange differences increases utilisation reversal closing balance annual report changes allowance obsolete slow moving inventories follows amounts thousands euro raw materials finished products total allowance obsolete slow moving inventories opening balance exchange differences increases utilisation reversal closing balance derivative financial instruments assets liabilities derivative financial instruments assets liabilities current non current portions amounts thousands euro december december financial assets regarding derivative instruments current financial assets regarding derivative instruments non current total financial assets derivative financial instruments financial liabilities regarding derivative instruments current financial liabilities regarding derivative instruments non current total financial liabilities derivative financial instruments net carrying amount current non current portion net carrying amount derivatives considering current non current portions following composition amounts thousands euro december december ifrs category forward contracts level options level interest rate swaps level positive fair value forward contracts level options level negative fair value net carrying amount current non current derivative instruments classified level fair value hierarchy group entered notes consolidated financial statements derivative contracts could qualified level iii fair values derivatives arranged hedge interest rate risks interest rate swaps irs derivatives arranged hedge foreign exchange risks forward contracts options determined using one widely used valuation platforms financial market based interest rate curves spot forward exchange rates reporting date group entered derivative contracts course risk management activities order hedge financial risks stemming exchange rate interest rate fluctuations addition group mitigated interest rate risk balancing exposures floating rate debt floating rate liquidity investments foreign exchange rate transactions cash flows group exposed exchange rate volatility operates international scale order hedge risk group enters options forward sale purchase agreements protect value identified cash flows euro currencies used locally expected future cash flows mainly regard collection intercompany trade receivables settlement intercompany trade payables financial cash flows notional amounts derivative contracts translated december exchange rates reported note designated foreign exchange risk hedges stated contracts effect december hedge projected future trade cash flows amounts thousands euro options forward sale contracts december currency dollar chinese renminbi japanese yen korean pound hong kong dollar turkish lira thai baht canadian dollar taiwan dollar swiss franc malaysia ringgit currencies total contracts effect december hedge projected future financial cash flows amounts thousands euro forward sale contracts december currency dollar swiss franc korean taiwan dollar malaysia ringgit currencies total annual report contracts effect december hedge projected future trade cash flows amounts thousands euro options forward sale contracts december currency dollar chinese renminbi korean japanese yen pound canadian dollar taiwan dollar hong kong dollar swiss franc malaysia ringgit currencies total contracts effect december hedge projected future financial cash flows amounts thousands euro forward sale contracts december currency dollar pound swiss franc korean taiwan dollar malaysia ringgit currencies total contracts place december maturity shorter twelve months except forward contracts hedge future financial cash flows mature december whose notional net amount euro million referring entirely forward sale contracts contracts place reporting date entered major financial institutions counterparties expected default liquidity analysis derivative contracts maturities provided financial risks section notes notes consolidated financial statements interest rate transactions group enters interest rate swaps irs order hedge risk interest rate fluctuations bank loans key features irs agreements place december december summarized interest rate swap irs agreement hedged loan contract currency notional amount interest rate maturity date fair value dec currency type debt amount expiry irs euro may eur term loan may irs euro apr eur term loan apr irs euro feb eur term loan feb irs gbp jan gbp term loan jan total fair value amounts thousands euro interest rate swap irs agreement hedged loan contract currency notional amount interest rate maturity date fair value dec currency type debt amount expiry irs euro may eur term loan may irs euro apr eur term loan apr irs euro feb eur term loan feb irs gbp jan gbp term loan jan total fair value amounts thousands euro irs convert variable interest rates bank loans fixed interest rates arranged major financial institutions counterparties expected default information financial risks capital management group capital management strategy aims guarantee fair economic return shareholders protect interests stakeholders maintain balanced capital structure high degree creditworthiness reducing average cost debt minimizing financial risks annual report categories financial assets liabilities according ifrs financial assets following detail financial assets required ifrs categories required ifrs amounts thousands euro financial assets designated fair value held collect held collect sale equity instruments total notes cash cash equivalents trade receivables net derivative financial instruments investments total december amounts thousands euro financial assets designated fair value held collect held collect sale equity instruments total notes cash cash equivalents trade receivables net derivative financial instruments investments equity instruments investments total december financial liabilities following detail financial liabilities required ifrs categories required ifrs amounts thousands euro financial liabilities designated fair value amortised cost financial liabilities held trading total notes financial payables trade payables derivative financial instruments lease liabilities total december amounts thousands euro financial liabilities designated fair value amortised cost financial liabilities held trading total notes financial payables trade payables derivative financial instruments lease liabilities total december notes consolidated financial statements fair value reported amount derivative instruments whether assets liabilities reflects fair value explained note carrying amount cash cash equivalents financial receivables trade receivables adjusted impairment necessary accordance ifrs approximates estimated realizable value hence fair value amount investments equity instruments corresponds fair value level lease liabilities reported present value financial liabilities stated fair value credit risk credit risk defined risk financial loss caused failure counterparty meet contractual obligations maximum risk entity exposed represented financial assets recognised financial statements however according management group credit risk regards essentially trade receivables wholesale commercial partners cash holdings group implemented specific control systems manage risk explained section describing risk factors financial review trade receivables table provides aging analysis trade receivables accounting allowance bad doubtful debts amounts thousands euro december overdue overdue days trade receivables total december amounts thousands euro december overdue overdue days trade receivables total december following table provides aging analysis trade receivables accounting allowance bad doubtful debts amounts thousands euro december overdue overdue days trade receivables less allowance bad doubtful accounts total december amounts thousands euro december overdue overdue days trade receivables less allowance bad doubtful accounts total december annual report bank current accounts deposits bank deposits broken currency amounts thousands euro december december currency euro dollar hong kong dollar currencies total bank deposit accounts group aims reduce financial counterparty risk bank deposits allocating available funds multiple accounts differ currency country bank always investment grade investments always short term bank current accounts broken currency follows amounts thousands euro december december currency uae dirham euro korean dollar hong kong dollar pound currencies total bank current accounts operational activities business processes group makes use financial counterparties primary standing appropriate level diversification result counterparty risk bank accounts considered significant liquidity risk liquidity risk refers difficulty group could securing new funds leading failure meeting financial obligations directors responsible managing liquidity risk group chief financial officer cfo supported deputy group cfo charge optimizing management financial resources according directors funds credit lines currently available addition generated operating financing activities enable group meet financial requirements arising investing activities working capital management punctual loan repayment dividend payment foreseeable period provide greater financial flexibility april prada signed new euro million sustainability linked revolving credit facility year duration replacing existing euro million facility new revolving credit facility undrawn december december group undrawn cash credit lines euro million available banks euro million december euro million committed credit lines euro million uncommitted ones notes consolidated financial statements aging analysis trade payables set forth amounts thousands euro december overdue overdue days trade payables total december amounts thousands euro december overdue overdue days trade payables total december financial liabilities derivative financial instruments forward contracts options maturities financial liabilities according earliest date group could required pay worst case scenario presented following tables required ifrs following tables show financial liabilities forward contracts options designated cash flow hedges negative cash flow expected reporting date amounts thousands euro future contractual cash flows dec mths less mths years years years years net cash flows outflows flows forward contracts net cash flows outflows inflows options net amount amounts thousands euro future contractual cash flows dec mths less mths years years years years net cash flows outflows flows forward contracts net cash flows outflows inflows options net amount financial liabilities derivative financial instruments interest rate swaps interest rate swaps negative cash flow annual report financial liabilities amounts thousands euro carrying amount dec future contractual cash flows dec demand mths less mths years years years years lease liabilities financial liabilities third parties without deferred costs loans financial liabilities related parties total amounts thousands euro carrying amount dec future contractual cash flows dec demand mths less mths years years years years lease liabilities financial liabilities third parties without deferred costs loans financial liabilities related parties total financial liabilities contain loan covenants described note sensitivity exchange rate risk exchange rate risk group exposed concentrated largely prada results fluctuation foreign currencies euro prada group parent worldwide distributor brand products intercompany transactions involving parent subsidiaries mainly settled local currency latter therefore foreign exchange risk mainly arises intercompany transactions derivative transactions put place mitigate foreign exchange rate risk terms exposure important currencies group british pound hong kong dollar japanese yen dollar chinese renminbi korean following table shows sensitivity consolidated net income equity range hypothetical fluctuations main foreign currencies euro based statement financial position group companies december amounts thousands euro euro strengthens euro weakens impact net result impact net equity impact net result impact net equity pound hong kong dollar japanese yen dollar chinese renminbi korean currencies total total impact equity positive euro million negative euro million sum notes consolidated financial statements theoretical effect statement profit loss cash flow hedge reserve hypothetical strengthening weakening euro currencies effects financial statement items presented taxes sensitivity analysis based currency exposure end period might reflect actual exposure period reason purely indicative sensitivity interest rate risk prada group exposed interest rate fluctuations mainly regard interest expense medium long term debt parent company prada subsidiaries financial risk management ultimate responsibility group cfo following table shows sensitivity consolidated net income equity hypothetical shift interest rate curve based ﬁnancial position group companies december amounts thousands euro interest rate curve shift impact net result impact net equity impact net result impact net equity euro pound hong kong dollar japanese yen dollar currencies total total impact equity positive negative euro million sum theoretical effect statement profit loss cash flow hedge reserve hypothetical shift interest rate curve effects financial statement items presented taxes sensitivity analysis based net financial position end period might reflect actual exposure interest rate risk period reason purely indicative risks risks factors affecting international luxury goods market speciﬁc prada group described financial review paragraph risks factors management receivables due advance payments related parties current non current current receivables due advance payments related parties detailed follows amounts thousands euro december december financial receivables receivables advances receivables due advance payments related parties current annual report non current receivables due advance payments related parties detailed follows amounts thousands euro december december financial receivables receivables due advance payments related parties non current additional information related party transactions provided note current assets current assets set forth amounts thousands euro december december vat taxation tax receivables assets prepayments guarantee deposits total assets assets detailed follows amounts thousands euro december december advances suppliers incentives retail investments receivables total prepayments prepayments detailed amounts thousands euro december december rental costs insurance design costs fashion shows advances advertising campaigns total notes consolidated financial statements prepayments primarily relate costs incurred design collections launch advertising campaigns host fashion shows generate revenue reporting period guarantee deposits guarantee deposits refers primarily security deposits paid retail leases property plant equipment historical cost accumulated depreciation past two years set forth amounts thousands euro land buildings production plant machinery leasehold improvements furniture fittings tangibles assets construction total historical cost accumulated depreciation net carrying amount december historical cost accumulated depreciation net carrying amount december changes net carrying amount year follows amounts thousands euro land buildings production plant machinery leasehold improvements furniture fittings tangibles assets construction total net carrying amount opening balance change consolidation area additions depreciation disposals exchange differences movements impairment revaluation ias closing balance increase leasehold improvements furniture fittings regarded primarily restyling relocation projects retail premises assets construction end period concern retail industrial projects impairment test required ias impairment assets assessed whether indicator impairment property plant equipment right use intangible assets goodwill allocated cgus cgus indicator impairment emerged tested impairment discounted cash flow method used identify recoverable amount cgus consists discounting projected cash flows generated activities directly attributable cgu value use value use sum annual report present value future cash flows expected cgu based management best estimate present value related operating activities end period terminal value projected cash flows consider either significant improvements performance assets existing december future developments new activities cgus tested weighted average cost capital wacc determined taking due consideration risk profile cgu well specific parameters geographic location rate growth used calculate terminal value assumed line inflation expectations prospects higher long term growth expected luxury goods market result impairment test december group recognized impairment losses property plant equipment equal euro million addition impairment equal euro million related asset disposal substitution total impairment recognized property plant equipment year amounts euro million intangible assets historical cost accumulated amortisation impairment past two years set forth amounts thousands euro trademarks intellectual property rights goodwill store lease acquisition software intangibles assets progress total historical cost accumulated amortisation impairment net carrying amount december historical cost accumulated amortisation impairment net carrying amount december changes net carrying amount year follows amounts thousands euro trademarks intellectual property rights goodwill store lease acquisition software intangibles assets progress total net carrying amount opening balance additions amortisation disposals exchange differences movements impairment closing balance notes consolidated financial statements net carrying amount trademarks intellectual property rights reporting date broken following table amounts thousands euro december december miu miu church prada trademarks intellectual property rights total year impairment recognised group trademarks capital expenditures software refer technological digital evolution projects retail manufacturing corporate areas total capital expenditure property plant equipment intangible assets twelve months ended december euro million broken amounts thousands euro december december retail real estate industrial logistics corporate total impairment test required ias impairment assets intangible assets indefinite useful lives amortised tested impairment least year group report intangible assets indeﬁnite useful lives goodwill consistently last year groups cgus represent lowest level within group management tests goodwill impairment correspond brands prada miu miu operating segments identified segment reporting purpose compliance ifrs reported note december goodwill recognised consolidated financial statements euro million allocated following group cgus follows amounts thousands euro december december prada miu miu total impairment tests december identify impairment losses groups cgu listed discounted cash flow method used identify recoverable amount group cgus consists discounting projected cash flows generated activities directly attributable operating segment intangible asset net invested capital assigned value use value use sum present value future cash flows expected basis business plan projections prepared management group cgus annual report present value related operating activities end period terminal value recoverable amount estimated assistance leading consulting firm business plans used impairment tests prepared management starting budget cover period exceed five years budget approved board directors january business plans take account either significant improvements performance assets existing december future developments new activities group cgus tested weighted average cost capital wacc determined taking due consideration risk profile cgus group activities well specific parameters geographic location rate growth used calculate terminal value assumed equal line inflation expectations prospects higher long term growth expected luxury goods market wacc post tax rates used impairment tests groups cgus include goodwill reported cgu wacc rate prada miu miu concerning group cgus analysis sensitivity impairment test performed changes key assumptions used determine recoverable amount group cgus goodwill allocated verified reasonable change key assumptions would generate reduction recoverable amount extent constituting impairment loss however since value use measured basis estimates assumptions management cannot guarantee value goodwill tangible intangible assets subject impairment future church ias requires entity assess annual reporting date whether indications impairment asset excluding goodwill recognised statement financial position respect impairment test carried church group cgus include value brand euro million subject depreciation residual useful life years order identify potential impairment following reorganisation process started discounted cash flow method used identify recoverable amount value use consisted discounting projected cash flows generated net invested capital recoverable amount estimated assistance leading consulting firm cash flow projections used impairment test based business plan prepared management rate used discount cash flows weighted average cost capital wacc post tax configuration year ended december wacc used discount cash flows generated church group cgus determined taking due consideration risk profile group cgu activities rate growth used calculate terminal value assumed equal light medium term inflation rate countries church operates growth outlook luxury goods market impairment test december identify impairment losses sensitivity analysis impairment test carried changes key assumptions used determine recoverable amount group cgus show potential impairment loss break even wacc recoverable amount would equal carrying amount notes consolidated financial statements right use assets changes net carrying amount right use assets year ended december shown amounts thousands euro real estate total net carrying amount opening balance new contracts initial direct costs remeasurements depreciation contracts termination exchange differences impairment revaluation ias closing balance right use assets increased euro million mainly result new leases remeasurements existing leases totaling euro million net depreciation euro million termination contracts euro million writedowns euro million foreign exchange differences impact euro million increase new leases initial direct costs remeasurements attributable lease renewals largely asia europe remeasurement liability adjust indexes commonly used real estate industry mainly consumer price index right use assets amounting euro million includes plant machinery vehicles hardware impairment test required ias impairment assets assessed whether indicator impairment property plant equipment right use intangible assets goodwill allocated cgus cgus indicator impairment emerged tested impairment please refer note property plant equipment details impairment test carried result impairment test december euro million impairment losses recorded right use assets cgus tested investments equity instruments associates joint ventures amounts thousands euro december december investments equity instruments associates joint ventures total increase associates joint ventures includes acquisition effepì annual report non current assets non current assets detailed follows amounts thousands euro december december guarantee deposits prepayments commercial agreements pension fund surplus note long term assets total guarantee deposits set forth nature maturity amounts thousands euro december december nature stores offices warehouses total amounts thousands euro december december maturity one two years two five years five years total guarantee deposits refer primarily security deposits paid retail leases lease liabilities following table sets forth changes lease liabilities amounts thousands euro december december opening balance new contracts initial direct costs remeasurements payments net interests contracts termination exchange differences closing balance notes consolidated financial statements lease liabilities increased euro million december euro million december primarily result new contracts remeasurements lease extensions modifications euro million net payments period euro million termination contracts euro million foreign exchange differences impact period euro million lease liabilities concentrated mainly following countries italy japan short term financial payables bank overdrafts amounts thousands euro december december short term bank loans current portion long term loans deferred costs loans total short term financial payables december uncommitted credit lines partially used prada fashion commerce shanghai ltd prada japan ltd short term bank loans broken currency amounts thousands euro december december japanese yen chinese renminbi euro currencies total group generally borrows variable interest rates explained note manages risk interest rate fluctuations using hedging contracts explained note additional information covenants applicable long term loans reported note payables due related parties current current payables due related parties shown amounts thousands euro december december financial payables payables total current financial payables due related parties regard loans granted non controlling shareholders group subsidiaries middle east additional information related party transactions provided note annual report trade payables trade payables detailed follows amounts thousands euro december december trade payables third parties trade payables related parties total tax payables tax payables detailed hereunder amounts thousands euro december december current taxation vat taxes total group recognises current tax liabilities euro million december euro million december tax receivables shown among current assets euro million euro million december reported note current liabilities current liabilities follows amounts thousands euro december december payables capital expenditure accrued expenses deferred income payables total payables detailed amounts thousands euro december december short term benefits employees personnel customer advances provision returns customers total notes consolidated financial statements long term financial payables long term financial payables follows amounts thousands euro december december long term bank borrowings deferred costs loans total prada loan covenants fully complied december expected complied within next months well long term bank borrowings december excluding amortised costs set forth borrower amount euro thousands type loan currency expiry date interest rate current portion euro thousands non current portion euro thousands pledge covenant prada term loan eur mortgage loan prada term loan eur leverage prada term loan eur leverage prada term loan eur leverage prada term loan eur leverage prada term loan eur leverage kenon ltd term loan gbp mortgage loan loan value prada fashion commerce shanghai ltd term loan rmb prada fashion commerce shanghai ltd term loan rmb total interest rates include effect interest rate risk hedges leverage ratio net financial position deficit sum ebit interest expenses lease liabilities depreciation amortisation impairment tangible intangible fixed assets loan value ratio amount mortgage loan market value property covenants calculated semester basis based financial information december june current portions long term loans repaid total amount euro million prada fashion commerce shanghai ltd stipulated new medium long term loan term years amount rmb million euro million drawn end year rmb million euro million moreover april prada signed new euro million sustainability linked revolving credit facility year duration replacing existing euro million facility new revolving credit facility undrawn december annual report prada mortgage loan secured group headquarter building milan kenon ltd mortgage loan secured building old bond street london used one prestigious prada stores europe offices group generally borrows variable interest rates manages risk interest rate ﬂuctuations hedging agreements described note financial payables set forth hereunder portions fixed connected existing irs variable interest rates december december variable interest rates fixed interest rates variable interest rates fixed interest rates short term financial payables long term financial payables long term employee benefits amounts thousands euro december december post employment benefits long term employee benefits total liabilities long term benefits pension plan surplus note net liabilities long term benefits post employment benefits net balance long term employee benefits december liability euro million euro million december benefits fall within scope defined benefit plans post employment benefits consist euro million euro million december liabilities accounted italian companies euro million foreign subsidiaries euro million december italian liabilities regard trattamento fine rapporto tfr staff leaving indemnities deferred benefit employees mandatory italian businesses based employees length service salary present value liability recognised determined projecting amount accrued december per italian law estimated future date employment termination discounting present value reporting date using projected unit credit method pucm notes consolidated financial statements following table presents changes long term employee benefits december amounts thousands euro defined benefit plans italy tfr defined benefit plans countries including japan pension funds long term employee benefits total opening balance current service cost financial charges income actuarial gains losses benefits paid contributions exchange differences closing balance actuarial gains losses reported amounts thousands euro defined benefit plans italy tfr defined benefit plans countries including japan pension funds actuarial adjustments due changes financial assumptions changes assumptions demographic assumptions remuneration increases actuarial gains losses current service cost financial charges income recognised statement profit loss item long term employee benefits actuarial differences also recognised statement profit loss tfr liability measured basis independent appraisal federica zappari italian actuary member ordine nazionale degli attuari italian society actuaries technical basis processed using statistical data whereas demographic assumptions involved variables probabilities death retirement resignations dismissals contract expiration leaving indemnity advances supplementary pension schemes consolidated statement financial position post employment benefits stated gross pension plan surplus group companies operating united kingdom supply pension services employees church ltd terminated works retirement benefits scheme effective date april december fair value remaining pension plan staff pension scheme surplus euro million euro million december fair value plan assets determined independent actuary broadstone limited detailed amounts thousands euro december december fair value plan assets fair value plan liabilities pension plan surplus annual report composition main plan assets reporting date follows amounts thousands euro december december equities alternatives bonds cash total main actuarial assumptions used december follows defined benefit plans italy tfr pension funds defined benefit plans japan average duration plan years average increase remuneration rate inflation main actuarial assumptions used december follows defined benefit plans italy tfr pension funds defined benefit plans japan average duration plan years average increase remuneration rate inflation discount rate used measure defined benefit plans determined basis yields bonds rating maturity date similar plans respect december liability sensitivity analysis performed main actuarial variables discount rate salary changes inflation rate analysis lead significant changes liability except sensitivity analysis conducted interest rate curve according basis point increase decrease would cause increase decrease group total defined benefit obligation dbo approximately euro million current debt balance sheet long term employee benefits long term employee benefits meet ias ifrs definition long term employee benefits group key management personnel actuarial valuation december calculated using pucm fair value methodologies resulted euro million euro million december according independent actuarial appraisal phantom stock options beneficiaries entitled cash payment based variable number phantom shares assigned depending achievement group economic financial objectives esg target period covered phantom share plans phantom stock options value determined difference prada share price end remuneration plan value beginning plan stock options assigned beneficiary december four phantom stock options plans reserved group top management vesting period years two plans totaling options notes consolidated financial statements details phantom stock options assigned december set forth number phantom stock options assigned december increase period payments period total december fair value options assigned calculated monte carlo model line ifrs requirements amounts euro million provisions risks charges changes provisions risks charges follows amounts thousands euro provision legal disputes provision tax disputes provisions total opening balance exchange differences reversals utilisation increases closing balance provisions risks charges represent directors best estimate maximum outflow resources needed settle liabilities deemed probable directors opinion based information available total amount accrued risks charges reporting date adequate respect liabilities could arise provisions provisions amount euro million december mainly relate euro million contractual obligations restore leased commercial properties original condition provisions also include group commitment relation sea beyond project non current liabilities amounts thousands euro december december deferred income commercial agreements accrued costs lease payments scope ifrs non current liabilities total annual report equity attributable owners group equity attributable owners group set forth amounts thousands euro december december share capital share premium reserve reserves actuarial reserve fair value investments equity instruments reserve cash flow hedge reserve translation reserve net income year total share capital december approximately prada share capital owned prada holding remainder listed main board hong kong stock exchange share premium reserve share premium reserve euro million december reserves reserves amount euro million december euro million compared december increase mainly due allocation previous year profit euro million offset part distribution dividends totaling euro million prada shareholders translation reserve changes reserve result translation euro foreign currency ﬁnancial statements consolidated companies reserve increased euro million december euro million december net income year group net result twelve months ended december profit euro million versus profit euro million twelve months ended december notes consolidated financial statements equity attributable non controlling interests following table shows changes non controlling interests years ended december december amounts thousands euro december december opening balance translation differences dividends net income year actuarial reserve sale shares group share capital increase reserves closing balance consolidated statement profit loss detail explanation financial business performances refer financial review net revenues consolidated net revenues generated primarily sales finished products stated net returns discounts amounts thousands euro twelve months ended december twelve months ended december net sales royalties total financial review describes net sales distribution channel brand geographic area annual report cost goods sold cost goods sold following composition amounts thousands euro twelve months ended december twelve months ended december purchases raw materials manufactoring services net change inventories depreciation amortisation impairment tangible intangible fixed assets depreciation impairment right use assets labor cost short term low value lease ifrs logistics costs duties insurance total incidence cost goods sold net revenues twelve months ended december increase excluding effect exchange rate differences incidence cost goods sold substantially stable operating expenses operating expenses detailed amounts thousands euro twelve months ended december net revenues twelve months ended december net revenues product design development costs advertising communications costs selling costs general administrative costs total operating expenses totaled euro million euro million versus increase attributable primarily variable costs resulting sales increase higher marketing spend personnel expenses spend following table sets forth depreciation amortisation impairment personnel cost rent expense included within operating expenses accordance requirements ias amounts thousands euro twelve months ended december twelve months ended december depreciation amortisation impairment tangible intangible fixed assets depreciation impairment right use assets labor cost pure variable lease ifrs short term low value lease ifrs notes consolidated financial statements financial income expenses net interest financial income expenses presented amounts thousands euro twelve months ended december twelve months ended december interest expenses borrowings interest income interest income expenses ias exchange gains losses realized exchange gains losses unrealized financial income expenses interest financial income expenses net interest expenses lease liabilities dividends investments total financial expenses net financial expenses euro million substantially line due lower exchange rate losses offset higher interest expense lease liabilities taxation income taxes following composition amounts thousands euro twelve months ended december twelve months ended december current taxation deferred taxation pillar top tax total taxation twelve months ended december euro million corresponding profit tax best estimate effect income taxes december pillar jurisdictions pass transitional safe harbour tests lead accrual top tax euro thousand agreement prada italian tax authority signed settle disputed deductibility commission paid prada prada asia pacific ltd remunerate support activity wholesale distribution period based agreement prada paid around euro million taxes interest penalties applied virtue correctness transfer pricing documentation prepared prada following payment taxes described prada recalculated patent box benefit trademarks higher benefit estimated approximately euro million euro million already recognised profit loss annual report reconciliation group theoretical tax rate effective tax rate presented table amounts thousands euro twelve months ended december twelve months ended december group weighted theoretical tax rate calculated absolute values basis subsidiaries pre taxable income loss non deductible expenses net taxable income write deferred tax asset utilization tax losses carried forward prior years taxes adjustments withholding income taxes effective tax rate group changes deferred tax assets liabilities set forth amounts thousands euro twelve months ended december twelve months ended december opening balance exchange differences deferred taxes derivative instruments recorded equity cash flow hedges deferred taxes post employment benefits recorded equity reserve actuarial differences deferred taxes revaluation ias movements deferred taxes year profit loss closing balance deferred tax assets liabilities classified nature hereunder amounts thousands euro december december deferred tax assets deferred tax liabilities deferred tax assets deferred tax liabilities inventories receivables assets useful life non current assets deferred taxes due acquisitions provision risks accrued expenses non deductible taxable charges income deferred tax assets liabilities lease contracts tax loss carryforwards derivative financial instruments long term employee benefits total notes consolidated financial statements tax loss carryforwards december including already recognised group financial statements detailed amounts thousands euro december expiring within years expiring years available carryforward time limit total tax loss carryforwards directors updated deferred tax assets recognised tax loss carryforwards taking consideration recoverability macroeconomic scenario business developments group companies earnings dividends per share earnings per share basic diluted earnings per share calculated dividing net profit attributable group shareholders weighted average number ordinary shares outstanding twelve months ended december twelve months ended december group net income euro weighted average number ordinary shares issue basic diluted earnings per share euro calculated weighted average number shares dividends per share board directors company proposed final dividend euro euro per share twelve months ended december company distributed dividends euro euro per share approved shareholders general meeting held april approve december financial statements dividends related italian withholding tax due euro million determined applying ordinary italian tax rate entire amount dividends distributed beneficial owners company shares held hong kong central clearing settlement system fully paid year dividends paid past three years detailed hereunder financial statements ended december financial statements ended december financial statements ended december total dividends paid euro dividends per share euro date approval shareholders meeting date payment may may may annual report additional information number employees average number full time equivalent fte employees calculated dividing number actual hours worked total number scheduled hours business division presented number employees twelve months ended december twelve months ended december production product design development advertising communications selling general administrative services total headcount group employees december employee remuneration employee remuneration business division presented amounts thousands euro twelve months ended december twelve months ended december production product design development advertising communications selling general administrative services total classification type employee remuneration presented amounts thousands euro twelve months ended december twelve months ended december wages salaries post employment benefits long term benefits social contributions total notes consolidated financial statements distributable reserves parent company prada amounts thousands euro december possible utilization distributable amount summary utilization last three years coverage losses distribution dividends share capital share premium reserve legal reserve reserves retained earnings cash flow hedge reserve distributable amount share capital increase coverage losses distributable shareholders italian civil code article share premium reserve fully distributable since amount legal reserve equal exceeds share capital italian legislative decree article euro million retained earnings distributable annual report exchange rates exchange rates euro used consolidation statements financial position statements profit loss whose presentation currency differed consolidated financial statements december december listed hereunder currency average rate december average rate december closing rate december closing rate december uae dirham australian dollar brazilian real canadian dollar swiss franc czech koruna danish kronor pound hong kong dollar japanese yen korean kuwait dinar kazakhstani tenge moroccan dirham macau pataca mexican peso malaysian ringgit new zealand dollar norwegian krone philippine peso qatari riyal chinese renminbi romanian leu russian ruble saudi riyal swedish kronor singapore dollar thai baht turkish lira taiwan dollar ukrainian hryvna dollar vietnamese dong south african rand notes consolidated financial statements auditor compensation total fees expenses recognised deloitte touche network auditing financial statements years ended december december providing non audit services presented amounts thousands euro type service audit firm provided twelve months ended december twelve months ended december audit services deloitte touche prada audit services deloitte touche subsidiaries audit services deloitte network subsidiaries total audit fees deloitte network advisory services deloitte network prada advisory services deloitte network subsidiaries total non audit fees deloitte network total compensation deloitte network remuneration board directors five highest paid individuals senior managers remuneration prada board directors year ended december amounts thousands euro directors fees salaries bonuses incentives benefits kind pension healthcare tfr contrbutions total patrizio bertelli paolo zannoni andrea guerra miuccia prada bianchi andrea bonini lorenzo bertelli yoël zaoui marina sylvia caprotti cristiana ruella pamela yvonne culpepper anna maria rugarli maurizio cereda total directors fees include remuneration approved shareholders annual general meeting remuneration approved board directors favorable opinion board statutory auditors directors holding special offices salaries andrea guerra andrea bonini lorenzo bertelli inclusive also directors fees annual report remuneration prada board directors fiscal year ended december amounts thousands euro directors fees salaries bonuses incentives benefits kind pension healthcare tfr contrbutions total patrizio bertelli paolo zannoni andrea guerra miuccia prada bianchi andrea bonini lorenzo bertelli yoël zaoui marina sylvia caprotti maurizio cereda pamela yvonne culpepper anna maria rugarli stefano simontacchi total remuneration five highest paid individuals group ﬁve highest paid individuals included three board director members three board members total remuneration remaining two highest paid individuals twelve months ended december remaining two highest paid individuals twelve months ended december set forth amounts thousands euro twelve months ended december twelve months ended december remuneration benefits bonuses incentives non monetary benefits pension social security healthcare tfr contributions total excluding remuneration board directors members remuneration highest paid individuals range amount follows twelve months ended december twelve months ended december less hkd hkd hkd hkd hkd hkd total individuals notes consolidated financial statements senior managers remuneration remuneration senior managers follows amounts thousands euro twelve months ended december twelve months ended december remuneration benefits bonuses incentives non monetary benefits pension social security healthcare tfr contributions total senior managers december senior managers december remuneration range senior managers follows twelve months ended december twelve months ended december less hkd hkd hkd hkd hkd hkd hkd hkd total individuals table include remuneration senior managers also directors amounts reported tables setting forth remuneration prada board directors five highest paid individuals senior managers recognised statement profit loss annual report related party transactions group carries transactions companies classifiable related parties according ias related party disclosures twelve months ended december transactions referred primarily purchase sale finished semi finished products raw materials supply services loans leases following tables present effect related party transactions consolidated financial statements terms end year statement financial position balances total transactions affecting statement profit loss statement financial position balances december amounts thousands euro trade receivables net receivables due advance payments related parties current receivables due advance payments related parties non current right use assets trade payables payables due related parties current lease liabilities liabilities les femmes filati biagioli modesto luigi fedeli figlio spelm rubaiyat modern lux ltd immobiliare rivalsa ludo due peschiera immobiliare premiata conceria superior perseo antica buca san francesco effepi tayer group llc tayer insignia llc danzas llc store specialists inc sanam rent car llc prada holding llc members board directors prada total december immobiliare rivalsa previously independent third party owns real estate property milan leased company since acquired subsidiary prada holding acquisition right use assets lease liabilities amounts recognised lease agreements including remeasurements pursuant automatic renewal existing lease entered company immobiliare rivalsa prior acquisition notes consolidated financial statements statement financial position balances december amounts thousands euro trade receivable net receivables due advance payments related parties current receivables due advance payments related parties non current right use assets trade payables payables due related parties current lease liabilities liabilities les femmes filati biagioli modesto luigi fedeli figlio spelm rubaiyat modern lux ltd immobiliare rivalsa ludo due peschiera immobiliare premiata conceria superior perseo tayer group llc tayer insignia llc danzas llc sanam rent car llc prada holding llc others members board directors prada total december immobiliare rivalsa previously independent third party owns real estate property milan leased company since acquired subsidiary prada holding acquisition right use assets lease liabilities amounts recognised lease agreements including remeasurements pursuant automatic renewal existing lease entered company immobiliare rivalsa prior acquisition annual report statement profit loss transactions twelve months ended december amounts thousands euro net revenues cost goods sold general admin selling costs income interest income interest expenses royalties les femmes filati biagioli modesto luigi fedeli figlio spelm rubaiyat modern lux ltd immobiliare rivalsa ludo due peschiera immobiliare premiata conceria superior perseo antica buca san francesco effepi tayer group llc tayer insignia llc danzas llc sanam rent car llc stores specialists inc prada holding llc total december immobiliare rivalsa previously independent third party owns real estate property milan leased company since acquired subsidiary prada holding acquisition right use assets lease liabilities amounts recognised lease agreements including remeasurements pursuant automatic renewal existing lease entered company immobiliare rivalsa prior acquisition notes consolidated financial statements statement profit loss transactions twelve months ended december amounts thousands euro net revenues cost goods sold general admin selling costs income interest income interest expenses les femmes filati biagioli modesto luigi fedeli figlio spelm rubaiyat modern lux ltd immobiliare rivalsa ludo due peschiera immobiliare premiata conceria superior perseo tayer group llc tayer insignia llc danzas llc sanam rent car llc prada holding llc others total december immobiliare rivalsa previously independent third party owns real estate property milan leased company since acquired subsidiary prada holding acquisition right use assets lease liabilities amounts recognised lease agreements including remeasurements pursuant automatic renewal existing lease entered company immobiliare rivalsa prior acquisition foregoing tables report information transactions related parties accordance ias related party disclosures following transactions also fall within scope application hong kong stock exchange listing rules transactions related party llc formerly pabe llc refer transaction company prada japan ltd relation lease two buildings aoyama tokyo prada miu miu stores transactions reported twelve months ended december regulated chapter listing rules considered continuing connected transactions subject disclosure exempt independent shareholders approval requirement required listing rules comprehensive disclosure continuing connected transactions contained prada announcements dated respectively july prada aoyama may miu miu aoyama apart non exempt continuing connected transactions non exempt connected transactions reported transaction reported consolidated financial statements meets definition connected transaction continuing connected transaction contained chapter hong kong stock exchange listing rules meet definition connected transaction continuing connected transaction according chapter exempt announcement disclosure independent shareholders approval requirements laid chapter annual report financial trend amounts thousands euro december december december december december net revenues gross margin operating income ebit net income loss group total assets total liabilities net equity attributable owners group consolidated companies company local currency share capital local currency interest registered office principal place operation date incorporation establishment yyyy main business italy prada eur milan italy group holding manufacturing services distribution retail artisans shoes eur montegranaro italy manufacturing ipi logistica eur milan italy services marchesi eur milan italy food beverage figline eur milan italy manufacturing luna rossa challenge eur grosseto italy management sailing team pelletteria scandicci eur terranuova bracciolini italy dormant europe prada retail ltd gbp london retail prada germany gmbh eur munich germany retail services prada austria gmbh eur vienna austria retail prada spain eur madrid spain retail prada retail france sas eur paris france retail prada hellas sole partner llc eur athens greece retail prada monte carlo sam eur monaco principality monaco retail prada eur luxembourg switzerland trademarks services prada netherlands eur amsterdam netherlands retail prada czech republic sro czk prague czech republic retail prada portugal unipessoal lda eur lisbon portugal retail prada rus llc rub moscow russian federation retail prada bosphorus deri mamuller ltd sirketi try istanbul turkey retail prada ukraine llc uah kiev ukraine retail prada sweden sek stockholm sweden retail prada switzerland chf lugano switzerland retail prada kazakhstan llp kzt almaty kazakhstan retail notes consolidated financial statements company local currency share capital local currency interest registered office principal place operation date incorporation establishment yyyy main business europe kenon ltd gbp london real estate tannerie limoges sas eur isle france manufacturing prada denmark aps dkk copenhagen denmark retail prada belgium sprl eur brussels belgium retail hipic prod impex srl ron sibiu romania manufacturing prada san marino eur falciano san marino retail prada norway nok oslo norway retail luna rossa challenge eur barcelona spain management sailing team church retail ltd gbp northampton liquidation church ltd gbp northampton manufacturing services church footwear ltd gbp northampton trademarks church germany gmbh eur munich germany liquidation americas prada usa corp usd new york distribution services retail prada canada corp cad toronto canada distribution retail prada usa cafe corp usd new york dormant post development corp usd new york real estate prada retail mexico mxn mexico city mexico retail prada brasil importação comércio artigos luxo ltda brl sao paulo brazil retail prada panama usd panama panama dormant prada retail aruba usd oranjestad aruba retail prada saint barthelemy sarl eur gustavia barthelemy retail asia pacific japan prada asia pacific ltd hkd hong kong hong kong retail services prada taiwan ltd twd hong kong taiwan retail prada retail malaysia sdn bhd myr kuala lumpur malaysia retail prada singapore pte ltd sgd singapore singapore retail prada korea llc krw seoul south korea retail prada thailand ltd thb bangkok thailand retail prada japan ltd jpy tokyo japan retail prada guam llc usd guam guam retail prada saipan llc usd northern marianas islands saipan retail prada australia pty ltd aud sydney australia retail prada trading shanghai ltd rmb shanghai dormant prada fashion commerce shanghai ltd rmb shanghai retail church hong kong retail ltd hkd hong kong hong kong dormant prada dongguan trading ltd rmb dongguan services prada new zealand ltd nzd wellington new zealand retail prada vietnam limited liability company vnd hanoi vietnam retail prada macau ltd mop macau macau retail prada philippines inc php manila philippines retail annual report company local currency share capital local currency interest registered office principal place operation date incorporation establishment yyyy main business middle east prada middle east fzco aed jebel ali free zone distribution services prada emirates llc aed dubai retail prada kuwait wll kwd kuwait city kuwait retail prada retail wll qar doha qatar retail prada saudi arabia ltd sar jeddah saudi arabia retail prada bahrain wll bhd manama bahrain retail countries prada retail south africa pty ltd zar sandton south africa dormant company owned directly prada company consolidated based definition control per ifrs wholly foreign owned enterprises disclosures regarding non controlling interests financial information companies entirely controlled group provided required ifrs amounts stated consolidation adjustments december financial statements amounts thousands euro company group percentage interest local currency total assets total equity net revenues net income loss dividends paid non controlling shareholders artisans shoes eur prada emirates llc aed prada middle east fzco aed prada kuwait wll kwd prada saudi arabia ltd sar tannerie limoges sas eur prada philippines inc php december financial statements amounts thousands euro company group percentage interest local currency total assets total equity net revenues net income loss dividends paid non controlling shareholders artisans shoes eur prada emirates llc aed prada middle east fzco aed prada kuwait wll kwd prada saudi arabia ltd sar tannerie limoges sas eur significant restrictions group ability access use assets settle liabilities end reporting period notes consolidated financial statements events reporting date significant events reported independent auditor reports chapter independent auditor reports independent auditor reports independent auditor reports included annual report two different formats taking account differences international auditing standards isas issued international auditing assurance standard boards iaasb auditing standards adopted italian jurisdiction isa italia specifically accordance regulations applicable hong kong company shares listed main board hong kong stock exchange independent auditor report issued accordance isas italy company domiciled independent auditor report issued statutory purposes accordance isa italia pursuant art italian legislative decree january annual report independent auditor reports annual report independent auditor reports annual report independent auditor reports annual report independent auditor reports annual report