Prada S p A : 17/07/2017 2016 Social Responsibility Report

(Hong Kong Stock Code: 1913)‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌

2016 Social Responsibility Report

INDEX

LETTER TO THE STAKEHOLDERS 3 � THE pRADA GROup 4

�.� History 4

�.� 2016 highlights 9

�.� Value chain 9

�.� Ethics, governance, compliance and risk management 13

� STRIVING FOR EXCELLENCE 16

�.� Know-how 16

�.� Customer experience 28

� WORKpLACE ETHICS 32

�.� The workforce 32

�.� Employee relations 33

�.� Diversity and equal opportunity 34

�.� Worker safety throughout the supply chain 35

� THE pRADA uNIVERSE 37

�.� Fondazione Prada 37

�.� Gruppo Prada and FAI 39

�.� Other special projects 40

� AT ONE WITH THE COMMuNITY 41

�.� Environmental protection 41

�.� Preservation of the local territory 43

� NOTES ON THE METHODOLOGY 46

�.� The material aspects identification 46

�.� The reporting process 49

� GRI CONTENT INDEX FOR IN ACCORDANCE CORE OpTION 50

LETTER TO THE STAKEHOLDERS

Contemporary society finds itself facing profound, rapid changes in every part of the world, where the boundaries of nations and cultures, which once constituted a protective barrier, have been knocked down by new technologies.

As in all great revolutions throughout history, such transformations accentuate the contradictions of today's world, with the socioeconomic models of the past century being undermined, widening inequality, eroding values that are becoming distorted to the point of instigating violent conflict.

Everyone, and especially those responsible for guiding large organizations, in which we include the Prada Group, has the duty to question the value of one's work in terms of purpose and prospective. No less important, a positive result of our advancement is the widespread, shared awareness of sustainability, which embraces all aspects of society: economic, political and ethical.

All should provide a contribution, to the extent possible: the Prada Group interprets this responsibility by aiming to continue to evolve its work in terms of increasing cooperativeness, using at best its talents: creativity, understood as an expression of the harmony underlying beauty, quality, innovation and passion transfused by all those who work, along with the fruits of their labor.

In 2016 the Prada Group embarked on many business initiatives, where important investments were dedicated to quality, strengthening controls over the value chain and reduction of its environmental impact.

The Group invested in the growth potential of its resources, a fundamental source of innovation and excellence, while designing new ways to develop professional skills.

The traditional inclination toward the world of art continues to represent the primary source of inspiration; at the same time the Group considers it fundamental to contribute to the promotion of various artistic expressions, dedicating commitment and resources to such purpose. It renewed its support to the Fondazione Prada, which used the resources made available for new initiatives in Milan and Venice, of international relevance. Important cultural projects were financed, most importantly to complete the restoration of the Last Supper by Giorgio Vasari, which returned to its original splendor for public viewing in Florence.

In perspective, the Prada Group intends to continue along its growth path to offer its employees the achievement of their aspirations in the workplace, its customers products of excellent quality, and the community a contribution equaling at least that which Prada has received from civil society.

Carlo Mazzi

Milan, June 29, 2017 Chairman of PRADA S.p.A.

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1. THE PRADA GROUP‌

The Prada Group is one of the world leaders in the luxury goods sector where it operates with the Prada, Miu Miu, Church's and Car Shoe brands in the design, production and distribution of luxury handbags, leather goods, footwear, apparel and accessories. The Group also operates in the eyewear and fragrance industries under specific licensing agreements stipulated with industry leaders, and with the recent acquisition (2014) of Pasticceria Marchesi 1824, it has made its entry into the food industry, where it is positioned at the highest levels of quality.

At January 31, 2017, products are sold in 70 countries worldwide through 620 Directly Operated Stores (DOS) and a selected network of luxury department stores, independent retailers and franchise stores.

�.� HISTORY

The Prada brand dates back to the beginning of the last century. In 1913, Mario Prada opened a luxury store in the Galleria Vittorio Emanuele II in Milan, selling leather handbags, travelling trunks, beauty cases, refined luxury accessories, jewels and articles of value. Thanks to its exclusively designed goods, handcrafted using fine materials and sophisticated techniques, Prada rapidly became a reference point for aristocracy and the most elegant members of the haute-bourgeoisie in Europe.

In 1919, Prada became an official supplier to the Italian Royal Family. Since then, Prada has been able to display the House of Savoy coat of arms and knotted rope design on its trademark logo.

Over the years, the Prada name gained increasing renown and prestige.

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