Prada S p A : 01/12/2017 Announcement of Continuing Connected Transaction – Sponsorship of Luna Rossa Challenge S.r.l. for its participation in the XXXVI America’s Cup

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Via A. Fogazzaro n. 28, Milan, Italy

Registry of Companies of Milan, Italy: No. 10115350158

(Incorporated under the laws of Italy as a joint-stock company)

(Stock Code: 1913) CONTINUING CONNECTED TRANSACTION Sponsorship of Luna Rossa C h allen g e S. r. l. for its participation in the XXXVI America's Cup

The Board of Directors of PRADA S.p.A. is pleased to announce that on December 1st, 2017 (European time) the Company, entered into a sponsorship agreement with Luna Rossa Challenge S.r.l. for i t s participation in the XXXVI edition of the America's Cup.

Luna Rossa Challenge S.r.l. is a company indirectly controlled by Mr. Patrizio Bertelli, who is a Chief Executive Officer, an Executive Director and a substantial shareholder (as defined in the Listing Rules) of the Company. Therefore Luna Rossa Challenge S.r.l. is a connected person (as defined in the Listing Rules) of the Company. As such, the sponsorship agreement with Luna Rossa Challenge

S.r.l. constitutes a continuing connected transaction of the Company under Chapter 14A of the Listing Rules.

Since the relevant applicable percentage ratios (as defined in the Listing Rules) in respect of the sponsorship agreement with Luna Rossa Challenge S.r.l. are more than 0.1% but less than 5%, the continuing connected transaction co n t e mp l a t e d u n d e r the spo n sorship ag r e emen t with Luna Rossa Challeng e S. r.l . is subject to the reporting and announcement requirements but is exempt from the independent shareholders' approval requirement under Chapter 14A of the Listing Rules.

Pursuant to Rule 14A.52 of the Listing Rules, Somerley Capital Limited has been engaged as independent financial adviser by the Company and has opined that the duration of the sponsorship agreement with Luna Rossa Challenge S.r.l., being longer than three years, is required and it is normal business practice for agreements of this type to be of such duration.

Introduction

The Board of Directors of PRADA S.p.A. (the "Company", and together with its subsidiaries, the "Group") is pleased to announce that on December 1st, 2017 (European time), the Company entered into a sponsorship agreement (the "Sponsorship Agreement") with Luna Rossa Challenge S.r.l. ("Luna Rossa Challenge") for the participation of Luna Rossa sailing team in the XXXVI edition

of the America's Cup, consisting of the preliminary series (to take place in 2019- 2020), the challenger selection series (to take place in January/February 2021) and the America's Cup match (to take place in the first half of 2021) (the "Competition").

Principal terms of the Sponsorship Agreement Date: December 1st, 2017;

Grantor: the Company; Grantee: Luna Rossa Challenge S.r.l., a company directly and wholly owned by PA BE 1 S.r.l., which is in turn directly controlled by Mr. Patrizio Bertelli, a Chief Executive Officer, an Executive Director and a substantial shareholder of the Company (as defined in the Rules (the "Listing Rules") Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"));

Term: Takes effect from December 1st, 2017 to June 30th, 2021;

Sponsorship Contribution to be paid by the Company for the participation of Luna Rossa sailing team in the Competition

Euro 65 million (equal to approximately HK$601.4 million) to be paid in quarterly installments over the period from January 2018 to June 2021 (the "Sponsorship Contribution");

The Sponsorship Contribution has been determined on the basis of the budget for the preparation and participation of the Luna Rossa sailing team in all the prestigious international regattas, both preliminary and final races, of the Competition, including moving its operations to various destinations in which the races will be held. In determining the basis of the Sponsorship Contribution, the Company has taken into account many factors, including the size of the Competition and the expected amount of press coverage of the Competition, which will attract massive attention all around the world and tremendous press coverage from the media, both the traditional ones and the new technologies media.

Sponsorship benefits to the Company: In consideration for the Sponsorship Contribution, the Company and, in general, the Group shall have the right to (i) benefit from the title of "Main Sponsor" of Luna Rossa sailing team during the Competition,

(ii) promote Prada's name and trademark jointly with Luna Rossa's name and trademark, (iii) exhibit the PRADA trademark for advertising purpose within specified events including any international regattas and sporting activities that will take place in New Zealand, the United States, Asia and Europe during the term of the Sponsorship Agreement and, in particular, the preliminary and final races of the Competition, (iv) exhibit the PRADA trademark on, among other things, (a) the hull, boom, drifts and sails of Luna Rossa yachts, (b) the clothing of the Luna Rossa crew, and (c) the backdrop and any communication support, for advertising purposes. The Company and, in general, the Group shall also have the right to use images of the Luna Rossa yachts and its crew for advertising purposes.

Annual Caps for the continuing connected transaction

The maximum amount of Sponsorship Contribution to be paid to Luna Rossa Challenge for each of the years ending 31 December 2018, 2019, 2020 and 2021 (the "Annual Caps") is as follows:

Annual Cap for the year ending

Annual Cap for the year ending

Annual Cap for the year ending

Annual Cap for the year ending 31.

31.12. 2018

31.12. 2019

31. 12. 2020 12. 2021

Sponsorship Agreement

Euro 25 million

Euro 25 million

Euro 25 million

Euro 9 million

Each of the Annual Caps set out above was determined after taking into consideration the budget for the preparation and participation of the Luna Rossa sailing team in all of the prestigious international regattas, both preliminary and final races, of the Competition, including moving its operations to various destinations in which the races will be held. The proposed Annual Caps have also taken into account the possibility of any advance payments to Luna Rossa Challenge which may need to be made depending on the timing of the actual races, hence why the aggregate of the annual caps equals Euro 84 million. However, the total amount of Sponsorship Contribution over the Term will not exceed Euro 65 million.

The Annual Caps represent the maximum amount to be paid by the Company to Luna Rossa Challenge each financial year. Under the Sponsorship Agreement, it is not expected that Luna Rossa Challenge will be making payments to the Company.

General description of the principal business activities carried out by the parties involved in the continuing connected transaction

The Group is one of the world's most prestigious fashion luxury goods groups and the Company is the worldwide exclusive licensee of the design, development, manufacture, advertising, promotion and distribution of, inter alia, the trademarks PRADA, MIU MIU and LUNA ROSSA.

Prada S.A. ("Prada SA") is the legal owner of the PRADA, MIU MIU, LUNA ROSSA and CAR SHOE trademarks. Prada SA h a s g r a n t e d t h e C o m p a n y t h e r i g h t , a m o n g o t h e r s , t o m a k e sponsorship contributions to entities worldwide in the fields of sport and art.

Luna Rossa Challenge is the company that manages the Luna Rossa sailing team and its participation in international regattas, including the Competition, the international match racing events as well as the Competition challenger selection series.

Reasons for and benefits of the continuing connected transaction

The Directors of the Company are of the view that the effects of the Sponsorship Agreement, as demonstrated by the previous sponsorship of Luna Rossa yachts in previous editions of the America's Cup, were very successful in terms of media impact and in raising the Group's profile and promoting the Group's brand name and Prada's trademark. The sponsorship of Luna Rossa's participation in the Competition is also in line with the Company's communication strategy to promote Prada's brand name and trademark.

The Directors (including the independent non-executive Directors) consider that entering into the Sponsorship Agreement for promoting Prada's brand name and trademark is in the ordinary and usual course of business of the Group and that the Sponsorship Agreement was entered on arm's length basis, on normal commercial terms or better, which are fair and reasonable, and in the interests of the Group and the Company's shareholders as a whole.

Listing Rules implications

The entire share capital of Luna Rossa Challenge is indirectly controlled by Mr. Patrizio Bertelli, who is a Chief Executive Officer, an Executive Director and a substantial shareholder (as defined in the Listing Rules) of the Company. Therefore, Luna Rossa Challenge is a connected person (as defined in the Listing Rules) of the Company and the Sponsorship Agreement constitutes a continuing connected transaction (as defined in the Listing Rules) of the Company under Chapter 14A of the Listing Rules.