PRADA SPA SEPARATE FINANCIAL STATEMENTS

(amounts in thousands of Euro)

December 31

2018

December 31

2017

Assets

Current assets

Cash and cash equivalents

298,887

180,434

Trade receivables, net

686,172

577,317

Inventories, net

300,498

248,933

Derivative financial instruments - current

11,005

15,498

Financial receivables and other receivables from parent company, subsidiaries, associates and related parties - current

168,605

145,871

Other current assets

97,013

117,235

Total current assets

1,562,180

1,285,288

Non-current assets

Property, plant and equipment

766,697

712,896

Intangible assets

196,384

192,330

Investments

954,183

860,178

Deferred tax assets

30,797

29,617

Other non-current assets

21,817

23,816

Derivative financial instruments - non-current

5,290

8,018

Financial receivables and other receivables from parent company, subsidiaries, associates and related parties - non-current

172,433

162,734

Total non-current assets

2,147,601

1,989,589

Total assets

3,709,781

3,274,877

Liabilities and Shareholders' equity

Current liabilities

Short-term financial payables and bank overdraft

340,803

264,499

Financial payables and other payables to parent company, subsidiaries, associates and related parties - current

40,087

86,032

Trade payables

807,824

706,732

Tax payables

30,724

18,469

Derivative financial instruments - current

14,171

7,557

Other current liabilities

119,732

99,002

Total current liabilities

1,353,341

1,182,291

Non-current liabilities

Long-term financial payables

365,971

523,909

Long-term employee benefits

26,712

30,549

Provisions for risks and charges

2,178

10,153

Deferred tax liabilities

2,249

5,456

Other non-current liabilities

23,388

26,893

Derivative financial instruments - non-current

7,072

7,086

Financial payables and other payables to parent company, subsidiaries, associates and related parties - non-current

13,878

68,874

Total non-current liabilities

441,448

672,920

Total liabilities

1,794,789

1,855,211

Share capital

255,882

255,882

Total other reserves

950,562

1,002,230

Net income of the period

708,548

161,554

Total Net Equity

1,914,992

1,419,666

Total Liabilities and Total Net Equity

3,709,781

3,274,877

(amounts in thousands of Euro)

twelve months
ended December 31
2018

eleven months
ended December 31
2017

Net revenues

1,753,693

1,498,554

Cost of goods sold

(801,248)

(668,697)

Gross Margin

934,445

829,857

Operating expenses

(728,846)

(600,210)

EBIT

205,599

229,647

Interest and other financial income / (expenses), net

(41,879)

(46,810)

Dividends from investments

603,102

24,779

Income before taxation

766,822

207,616

Taxation

(58,274)

(46,062)

Net income for the period

708,548

161,554

(amounts in thousands of Euro)

twelve months
ended
December 31
2018

eleven months
ended
December 31
2017

Net income for the period

708,548

161,554

A) Items recyclable to P&L:

Change in Cash Flow Hedge reserve

(8,423)

4,581

Tax impact

2,021

(1,099)

Change in Cash Flow Hedge reserve less tax impact

(6,402)

3,482

B) Item not recycled to P&L:

Change in Fair Value Investments in equity instruments reserve

(6,706)

(5,569)

Tax impact

-

-

Change in Fair Value reserve less tax impact

(6,706))

(5,569)

Change in Actuarial reserve

5

(681)

Tax impact

-

90

Change in Actuarial reserve less tax impact

5

(591)

Comprehensive income for the period

695,445

158,876

(amounts in thousands of Euro)

twelve months ended December 31 2018

eleven months ended December 31 2017

Cash flows from operating activities:

Income before taxation

766,822

207,616

Profit of loss adjustments

Depreciation and amortization

58,425

45,559

Impairment of property, plant and equipment and intangible assets

1,061

2,247

Losses/(gains) on disposal of non-current assets

(1,523)

(101)

Impairment of investments

26,311

33,433

Monetary financial (income) expenses

(603,316)

(21,438)

Other non-monetary (income) expenses

68

(16,287)

Balance sheet changes

Trade receivables, net

(113,527)

6,167

Inventories, net

(28,022)

(28,728)

Trade payables

101,092

(37,402)

Other current assets and liabilities

8,461

46,708

Other non-current assets and liabilities

(14,991)

(18,168)

Cash flows from operating activities

200,861

219,606

Interest paid, net

(1,779)

(8,963)

Taxes paid

(21,870)

-

Net cash flows from operating activities

177,212

210,643

 

Purchase of property, plant and equipment and intangible assets

(142,507)

(112,177)

Disposal of property, plant and equipment and intangible assets

4,250

256

Investments in subsidiaries

(7,084)

(10,168)

Financial investments

(96,267)

 

Dividends from investments

603,102

24,779

Net cash flow utilized by investing activities

361,494

(97,310)

 

Dividends paid to shareholders

(191,912)

(307,059)

Change in short-term borrowing - third parties

90,000

(218)

Change in intercompany loans

(51,727)

-

Loans repaid by subsidiaries

44,406

27,415

Loans made to subsidiaries

(140,688)

(34,964)

Repayment of short-term portion of long-term borrowings - third parties

(140,332)

(30,356)

Repayment of Notes

(130,000)

 

Arrangement of long-term borrowings - third parties

100,000

299,500

Cash flows generated/(utilized) by financing activities

(420,253)

(45,682)

Change in cash and cash equivalents, net of bank overdraft

118,453

67,651

Opening cash and cash equivalents, net of bank overdraft

180,434

112,783

Closing cash and cash equivalents, net of bank overdraft

298,887

180,434

Cash and cash equivalents, net of bank overdraft

298,887

180,434

Closing cash and cash equivalents, net of bank overdraft

298,887

180,434

(amounts in thousands of Euros)

Number of shares

Share capital

Share premium reserve

Legal reserve

Other reserves

Retained earnings

Cash flow hedge reserve

Fair Value Investments in equity instruments Reserve

Total other reserves

Net income for the period

Total equity

Balance at January 31 2017

2,558,824,000

255,882

410,047

51,176

182,899

405,803

(1,602)

-

1,048,323

183,355

1,487,560

Allocation of 2016 net income

-

-

-

-

-

183,355

-

-

183,355

(183,355)

-

Dividends

-

-

-

-

-

(307,059)

-

-

(307,059)

-

(307,059)

Other movements

-

-

-

-

-

80,290

-

(2,207)

78,083

-

78,083

Comprehensive income for the period (recyclable to P&L)

-

-

-

-

-

-

3,482

(3,362)

120

161,554

161,674

Comprehensive income for the period (not recyclable to P&L)

-

-

-

-

-

(592)

-

-

(592)

-

(592)

Balance at December 31 2017

2,558,824,000

255,882

410,047

51,176

182,899

361,797

1,880

(5,569)

1,002,230

161,554

1,419,666

First Time Adoption IFRS 15 – Allowance for return assets

-

-

-

-

-

(2,740)

-

-

(2,740)

-

(2,740)

First Time Adoption IFRS 9 – Allowance for bad and doubtful debts

-

-

-

-

-

(5,467)

-

-

(5,467)

-

(5,467)

First Time Adoption IFRS 9 – Derivatives

-

-

-

-

-

2,063

(2,063)

-

-

-

-

Balance at January 1 2018

2,558,824,000

255,882

410,047

51,176

182,899

355,653

(183)

(5,569)

994,023

161,554

1,411,459

Allocation of 2017 net income

-

-

-

-

-

161,554

-

-

161,554

(161,554)

-

Dividends

-

-

-

-

-

(191,912)

-

-

(191,912)

-

(191,912)

Comprehensive income for the period (recyclable to P&L)

-

-

-

-

-

-

(6,402)

-

(6,402)

708,548

702,146

Comprehensive income for the period (not recyclable to P&L)

-

-

-

-

-

5

-

(6,706)

(6,701)

-

(6,701)

Balance at December 31 2018

2,558,824,000

255,882

410,047

51,176

182,899

325,300

(6,585)

(12,275)

950,562

708,548

1,914,992