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Commencer pagination 1 !!! 2018 First-Half results July 26, 2018 - - PowerPoint PPT Presentation

Commencer pagination 1 !!! 2018 First-Half results July 26, 2018 DISCLAIMER This presentation does not constitute an offer of securities for sale in the United States of America or any other jurisdiction. Certain information contained in


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Commencer pagination à 1 !!!

2018 First-Half results July 26, 2018

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26.07.2018 2

DISCLAIMER

This presentation does not constitute an offer of securities for sale in the United States of America or any other jurisdiction. Certain information contained in this document may include projections and forecasts. They express objectives based on current assessments and estimates of the Group’s executive management which are subject to numerous factors, risks and uncertainties. Consequently, reported figures and assessments may differ significantly from projected figures. The following factors among others set out in the Reference Document (Document de Référence) filed with the French Financial Markets Authority (Autorité des Marchés Financiers - AMF) on March 28, 2018 which is available on Kering’s website at www.kering.com may cause actual figures to differ materially from projected figures: any unfavorable development affecting consumer spending in the activities of the Group in France and abroad, notably for products and services sold by the brands, the events, crises, fears, and resulting costs of complying with environmental, health and safety regulations and all other regulations with which Group companies are required to comply; the competitive situation on each of our markets; exchange rate and other risks related to international activities; risks arising from current or future litigation. Kering gives no commitment to updating and/or revising and/or commenting any projections and forecasts, or their impact on the results and perspectives of the Group, which may be contained in this presentation. The information contained in this document has been selected by the Group’s executive management to present Kering’s 2018 first-half results. This document has not been independently verified. Kering makes no representation or undertaking as to the accuracy or completeness of such

  • information. None of the Kering or any of its affiliates representatives shall bear any liability (in negligence or otherwise) for any loss arising from

any use of this presentation or its contents or otherwise arising in connection with this presentation. IN NO WAY DOES KERING ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED IN THIS PRESENTATION. INFORMATION IN THIS PRESENTATION, INCLUDING FORECAST FINANCIAL INFORMATION, SHOULD NOT BE CONSIDERED AS ADVICE OR A RECOMMENDATION TO INVESTORS OR POTENTIAL INVESTORS IN RELATION TO HOLDING, PURCHASING OR SELLING SECURITIES OR OTHER FINANCIAL PRODUCTS OR INSTRUMENTS AND DOES NOT TAKE INTO ACCOUNT YOUR PARTICULAR INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR NEEDS. BEFORE ACTING ON ANY INFORMATION YOU SHOULD CONSIDER THE APPROPRIATENESS OF THE INFORMATION HAVING REGARD TO THESE MATTERS, ANY RELEVANT OFFER DOCUMENT AND IN PARTICULAR, YOU SHOULD SEEK INDEPENDENT FINANCIAL ADVICE. ALL SECURITIES AND FINANCIAL PRODUCT OR INSTRUMENT TRANSACTIONS INVOLVE RISKS, WHICH INCLUDE (AMONG OTHERS) THE RISK OF ADVERSE OR UNANTICIPATED MARKET, FINANCIAL OR POLITICAL DEVELOPMENTS AND, IN INTERNATIONAL TRANSACTIONS, CURRENCY RISK. READERS ARE ADVISED TO REVIEW THE COMPANY'S REFERENCE DOCUMENT AND THE COMPANY'S APPLICABLE AMF FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISION.

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INTRODUCTION

JEAN-FRANÇOIS PALUS

GROUP MANAGING DIRECTOR

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SLIDE 4

2018 FIRST-HALF RESULTS INTRODUCTION A PURE LUXURY PLAYER 1

26.07.2018

  • Distribution in kind of 70% of PUMA shares to Kering

shareholders effective May 16 at a share price of €429

4

A STREAMLINED ENSEMBLE OF BRANDS 2

  • Agreement between Kering and Ms. Stella McCartney

regarding the sale and purchase of the Group’s stake (50%) in her eponymous brand

  • Discussions underway with Mr. Christopher Kane for

him to take back full control of his eponymous brand (51% stake held by Kering)

  • End of partnership with Tomas Maier brand
  • Initiation of Volcom disposal process

PUMA shareholding post Distribution PUMA share price as of June 29, 18 Impact on Kering financial statements

€501 +16.8% since distribution

► Net gain on disposal: €1.18bn booked under IFRS 5 – net income from discontinued

  • perations

► Value of Kering stake as of end of June 2018 > €1.0bn

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

Applied to PUMA*, Volcom, Stella McCartney and Christopher Kane

* PUMA IFRS 5 from January 1 to May 16 and Equity-accounted since May 16

>

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SLIDE 5

5

H1 and FY 2017 RESTATEMENTS

In €m RESTATED (*) REPORTED Revenue 5,073 7,296 Gross margin

Gross profit margin

3,674

72.4%

4,725

64.8%

Recurring operating income

Recurring operating income margin

1,158

22.8%

1,274

17.5%

Consolidated net income Of which net income, Group share 861 826 861 826 Net income, Group share, from continuing operations excluding non-recurring items 815 872

26.07.2018

RESTATED (*) REPORTED 10,816 15,478 7,916

73.2%

10,133

65.5%

2,691

24.9%

2,948

19.0%

1,865 1,786 1,865 1,786 1,887 2,002

H1 2017 FY 2017

CAPEX

CAPEX/sales

227

4.5%

283

3.9%

Free Cash Flow from operations 848 718 605

5.6%

752

4.9%

2,206 2,318

* Restatement: PUMA, Volcom, Stella McCartney and Christopher Kane reclassified as discontinued operations for H1 and FY17 (IFRS 5)

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SLIDE 6

ANALYSIS OF RESULTS

JEAN-MARC DUPLAIX

GROUP CHIEF FINANCIAL OFFICER

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SLIDE 7

FCF FROM OPERATIONS RECURRING OPERATING MARGIN RECURRING OPERATING INCOME NET DEBT

848 1,401

H1 17 restated H1 18

22.8% 27.5%

H1 17 restated H1 18

1,158 1,772

H1 17 restated H1 18 H1 17 restated Q1 18 Q2 18 H1 18 +65%

In €m In €m

7

2018 FIRST-HALF RESULTS

NEW PROFILE DELIVERS SUPERIOR PERFORMANCES

* : at constant scope and exchange rates

% comparable growth*

GROUP RECURRING OPERATING INCOME €1,772m +53% yoy FCF AND NET DEBT FCF x1.7 at €1,401m

  • Record recurring operating

income

  • Focus on organic growth drives

substantial operating leverage and margin expansion

  • Sharp increase in FCF

generation

  • Further deleveraging, net debt

significantly down yoy H1 revenue

+26.8% reported, +€1.4bn

Q2 revenue

+26.4% reported

GROUP REVENUE continuing operations

Western Europe 32% (+25%) North America 19% (+45%) Asia Pacific 33% (+38%) RoW 7% (+34%) Japan 9% (+31%)

As a % of revenue and (% comparable growth)

26.07.2018

In €m

+53% +470 bps

€3,326m €6,432m €3,106m €5,073m +36.6% +31.5% +33.9%

Q1’18 revenue excluding Christopher Kane

3,049 4,573 2,793

FY 17 H1 17 H1 18

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SLIDE 8

8

LUXURY HOUSES

CONTINUED OUTPERFORMANCE DELIVERS HIGH MARGIN EXPANSION H1 18 revenue: +26.9% reported; +33.9% comparable

In €m H1 18 Reported change Revenue 6,209 +26.9% Recurring operating income Recurring operating income margin 1,886 30.4% +51.3% +4.9pt Gross CAPEX as % of revenue 222 3.6% +25.7% 0.0pt

H1 REVENUE GROWTH LARGELY AHEAD OF INDUSTRY

  • Sustained and well balanced across channels
  • E-commerce more than doubled, close to 6% of retail sales
  • Negative FX headwinds easing in Q2 (-5 pt vs. Q1 -9 pt)

Q2: COMPARABLE REVENUE UP 31%

  • Retail trends very strong with all regions up double digit
  • Strong momentum confirmed in North America, APAC and Japan
  • W. Europe moderating on high comps and softer tourism trends
  • Wholesale up 24%, royalties & others improving at +9%

SOUND RECURRING OPERATING MARGIN, ABOVE 30%

  • Significant operating leverage at Gucci, Saint Laurent and

Balenciaga

  • while continuing to invest in retail network, A&P and

CRM/digitalization

  • Ongoing investment in Jewelry
  • Combined FX and hedging impact negative in absolute

terms and marginally dilutive in terms of profitability CAPEX SELECTIVITY

  • 3.6% of revenue in H1, higher ratio expected in H2
  • Total number of DOS 1,382, 47 net openings in H1

H1 18 H1 17

0%

FX impact

  • 5%

4,893

Retail

+37%

Scope Royalties and others

+6%

Wholesale

+28% 6,209

R e v e n u e c h a n g e i n € m , a n d c o m p a r a b l e g r o w t h i n %

26.07.2018

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SLIDE 9

9

GUCCI

HEALTHY TOP-LINE GROWTH FUELS RECORD MARGIN H1 18 revenue: +36.0% reported; +44.1% comparable

In €m H1 18 Reported change Revenue 3,853 +36.0% Recurring operating income Recurring operating income margin 1,470 38.2% +62.1% +6.2pt Gross CAPEX as % of revenue 114 3.0% +48.6% +0.3pt

Wholesale Royalties and others

+33%

RoW H1 18

+49%

Retail (86% of sales): +47%

3,853 +1%

North America Western Europe Asia Pacific

+37% +57%

H1 17

+48% +44%

Japan

2,833

H1 18 REVENUE EQUIVALENT TO 2015 FULL-YEAR LEVEL Q2: 6 TH CONSECUTIVE QUARTER OF 35%+ COMP GROWTH

  • Retail up 43% driven by LfL, further sales density improvement
  • All product categories posting very healthy double-digit growth:

dynamic carryover and attractive newness offer

  • N.America best performer; APAC and Japan confirming excellent

trends; W. Europe very solid supported by locals and tourists

  • Online sales up 88%
  • Wholesale +23%; deliveries prioritized towards DOS, retailization
  • f certain travel retail doors (in Japan)
  • Royalties return to growth supported by Eyewear

RECURRING OPERATING MARGIN AT ALL-TIME HIGH

  • Further gross margin improvement on production efficiencies

and channel mix

  • Substantial operating leverage on higher store productivity
  • Sustained investment to support long-term growth
  • Store expenses
  • Communications initiatives and customer engagement
  • Omnichannel

CAPEX SKEWED TOWARDS NEW STORE CONCEPT

  • H1: 30 stores converted
  • DOS count up 9 net units (incl. 4 conversions)

+32%

  • f which Q2 18

comp growth

+52% +46% +47% +41% +23% +5% TOTAL +40%

R e v e n u e c h a n g e i n € m , a n d c o m p a r a b l e g r o w t h i n %

26.07.2018

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10

SAINT LAURENT

PROFITABLE GROWTH ON TRACK WITH PLAN H1 18 revenue: +13.7% reported; +19.7% comparable

In €m H1 18 Reported change Revenue 808 +13.7% Recurring operating income Recurring operating income margin 198 24.5% +21.1% +1.5pt Gross CAPEX as % of revenue 33 4.0% +6.9%

  • 0.3pt

North America Japan

+22% +25% 711 +7% +30%

Western Europe

+4%

H1 17 Retail (68% of sales): +17% H1 18

808

Royalties and others Wholesale

+11%

RoW Asia Pacific

+29%

FURTHER RECURRING OPERATING INCOME GROWTH AND MARGIN EXPANSION

  • Delivering on operating leverage while investing in:
  • retail network development
  • impactful communications initiatives and Fashion Shows to

spread brand halo and influence (Men Spring 2019 in NYC

  • n June 6)

CAPEX DEDICATED TO STORE OPENINGS

  • 18 net openings in H1
  • Increased penetration in both mature and emerging

markets (Switzerland, Spain, Dubai, China, Mexico) CONSISTENT REVENUE TRENDS IN H1

  • Well-balanced, steady growth in both quarters

Q2: ANOTHER VERY SOLID PERFORMANCE

  • Retail sales up 19%
  • All regions contributing to growth, acceleration in the US and

Japan; Western Europe back to positive trend

  • Newness remains very positively received, adding to carryover

business continuing to perform well

  • E-commerce outperforming
  • Wholesale up 25%; strong appreciation for Women Fall 2018

collection

+9%

  • f which Q2 18

comp growth

+33% +27% +21% +7% +25% +12% TOTAL +20%

R e v e n u e c h a n g e i n € m , a n d c o m p a r a b l e g r o w t h i n %

26.07.2018

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11

BOTTEGA VENETA

BRAND-REJUVENATION JOURNEY CONTINUES H1 18 revenue: -6.5% reported; -0.9% comparable

In €m H1 18 Reported change Revenue 552

  • 6.5%

Recurring operating income Recurring operating income margin 133 24.0%

  • 10.2%
  • 1.0pt

Gross CAPEX as % of revenue 33 5.9% +57.2% +2.4pt

H1 17

+2%

North America Western Europe

590

Japan H1 18

+7%

  • 14%

+3%

Royalties and others RoW

+7%

Asia Pacific

552

Wholesale

+1%

  • 2%

Retail (82% of sales): -2%

FIRST HALF COMPARABLE REVENUE NEARLY STABLE Q2: MIXED PERFORMANCE

  • Retail -5%
  • Western Europe significantly impacted by softer tourism, not offset by
  • ther regions, though North America posted another positive quarter
  • Brand appeal confirmed by continued success of Newness
  • Improvement in wholesale up 10% reflecting:
  • Healthier distribution network
  • Encouraging orders on stabilized number of doors

CONTAINED MARGIN DILUTION

  • Strict cost control, OPEX allocation targeting action plans

CAPEX INCREASE TO SUPPORT BRAND REJUVENATION

  • Many openings/closings (+4 net) to better adapt network

STEP UP IN CHANGE

  • New Creative Director, Daniel Lee, on board; First full

Fashion Show early 19

  • Leaner and recentered organization, faster merchandising
  • 14%
  • f which Q2 18

comp growth

+4%

  • 2%
  • 3%

+4% +10% +7% TOTAL

  • 2%

R e v e n u e c h a n g e i n € m , a n d c o m p a r a b l e g r o w t h i n %

26.07.2018

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12

OTHER LUXURY HOUSES

HIGHER GROWTH AND MARGIN PROFILE H1 18 revenue: +31.1% reported; +36.5% comparable

In €m H1 18 Reported change Revenue 996 +31.1% Recurring operating income Recurring operating income margin 85 8.5% +202.5% +4.8pt Gross CAPEX as % of revenue 42 4.2%

  • 12.7%
  • 2.1pt

996 760 +27%

H1 17 H1 18

+10%

Wholesale

+50%

Royalties and others Retail

ENHANCED PROFITABILITY PROFILE ON BRAND REFOCUS

  • Balenciaga delivering significant incremental profits and

margin expansion

  • Continued commitment to raise our brands to the next

level

  • Ongoing investment in high-potential brands Alexander

McQueen and Jewelry

  • Watches: contribution improving
  • Brioni: top line on path to gradually better absorb cost base

CAPEX DOWN ON PHASING

  • 16 net openings, at Balenciaga, AMQ and Jewelry

H1: OUTSTANDING REVENUE TRENDS

  • Retail leading growth, all regions up high double digit
  • APAC and N. America up above 50%
  • Wholesale performing strongly

Q2: UP 35% COMPARABLE

  • Balenciaga: unfading enthusiasm for RTW and Shoes, both Men

and Women

  • AMQ: accelerating further in retail and wholesale; successful

rebalancing of both Women’s RTW and Shoes offers, enlarged Leather Goods assortment

  • W&J: strong pipeline of product innovation and launches

R e v e n u e c h a n g e i n € m , a n d c o m p a r a b l e g r o w t h i n %

26.07.2018

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13

CORPORATE & OTHER

26.07.2018

In €m H1 18 H1 17 Total Recurring operating result Underlying result Corporate Long-term incentive plan (114) (75) (39) (89) (72) (17) Gross CAPEX 89 50

KERING EYEWEAR UPDATE: ROBUST H1 RESULTS

  • H1 total external sales of €262m, net consolidated revenue of

€208m, up 35% comparable

  • Positive momentum of Cartier; successful integration and launch
  • Great performance of Gucci, supported by continuous, innovative

marketing initiatives

  • Strong results of Saint Laurent, establishing the brand in eyewear
  • Ongoing roll-out of customized marketing tools (first Kering

Eyewear shop-in-shop at Coterie, Beijing in May 2018)

  • Outstanding performance of online store on JD.com strengthening

digital presence in China

  • First Balenciaga and Montblanc collections to be launched at

Silmo 2018, available in stores from January 2019 UNDERLYING RECURRING OPERATING RESULT UNDER CONTROL

  • Disciplined management of Corporate costs while

undertaking further cross-Group initiatives

  • Kering Eyewear: positive contribution after amortization
  • f the early termination compensation
  • Higher cost of Corporate LTI plan due to Kering share

price outperformance HIGHER CAPEX ON FURTHER PLATFORM BUILDUP

  • Kering Eyewear automated logistics center
  • Group omnichannel/IT/CRM capabilities

15

KEYE consolidated sales

208

H1 18 KEYE external sales

262

Royalties and intragroup eliminations

  • 54

H1 18 Total Corporate & Other

223

Other revenue

Revenue in €m

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14

FINANCIAL PERFORMANCE

In €m H1 18 H1 17 RESTATED Revenue 6,432 5,073 Gross margin

Gross profit margin

4,776

74.3%

3,674

72.4%

Recurring operating income

Recurring operating income margin

1,772

27.5%

1,158

22.8%

Other non-recurring operating income and expenses Finance costs, net Corporate income tax Share in earnings of equity-accounted companies (40) (97) (385) (3) (44) (108) (219) (3) Net income from continuing operations 1,247 784 Net result from discontinued operations 1,148 77 Consolidated net income Of which net income, Group share 2,395 2,360 861 826 Net income, Group share, from continuing operations excluding non- recurring items 1,262 815 Net income, Group share, per share (in euro) Net income per share from continuing operations, Group share, excluding non-recurring items (in euro) 18.74 10.02 6.55 6.47

26.07.2018

Mainly PUMA net capital gain and P&L contribution

1 1

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15

H1 18 FREE CASH FLOW FROM OPERATIONS

In €m H1 18 H1 17 RESTATED Cash flow before taxes, dividends and interests Change in working capital requirement (excluding taxes) Corporate income tax paid 2,032 (82) (240) 1,361 (120) (167) Net cash flow from operating activities 1,711 1,074 Acquisition of fixed operating assets Sale of fixed operating assets (311) 1 (227) 1 Free cash flow from operations 1,401 848

26.07.2018

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SLIDE 16

H1 18 NET FINANCIAL DEBT BRIDGE

In €m

16

CHANGE IN NET FINANCIAL DEBT

251 23 776 95

Net debt at June 30, 2018 Free cash flow from

  • perations

2,793

Net interest paid and dividend received Dividend paid Net financial investments and other

  • 1,401

Net debt from continuing

  • perations at

January 1, 2018 Discontinued

  • perations IFRS 5

Net debt at December 31, 2017

3,049 3,300

26.07.2018

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SLIDE 17

CONCLUSION

JEAN-FRANCOIS PALUS

GROUP MANAGING DIRECTOR

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SLIDE 18

2018 FIRST-HALF RESULTS CONCLUSION

26.07.2018

Successful transformation – unlocking value in the short term and over the long term

18

3 1 2

Demonstrating further sustainable profitable growth in H1 18 – straightforward strategies, determined execution and substantial margin expansion Group accelerators to foster our Houses’ development – focus on

  • mnichannel, digital

Going forward – outperformance against tougher comps in uncertain environment; further operating leverage potential

4

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SLIDE 19

Q&A

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SLIDE 20

Couverture

  • En attente -

Appendix

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SLIDE 21

GROUP H1 REVENUE – CONTINUING ACTIVITIES

in €m

21

GROUP H1 RECURRING OPERATING INCOME

in €m

H1 18 REVENUE AND RECURRING OPERATING INCOME

H1 18 H1 17 restated Change (%) Reported Comparable (*) Total Houses

  • /w Q1 18 (**)
  • /w Q2 18

6,209 4,893 +26.9%

+27.6% +26.2%

+33.9%

+36.9% +31.3%

Corporate & other 223 180 +24.1% +32.4% Kering 6,432 5,073 +26.8% +33.9%

26.07.2018 * : at constant scope and exchange rates ** : restated from Christopher Kane

H1 18 H1 17 restated Change (%) Reported Total Houses 1,886 1,247 +51.3% Corporate & other (114) (89)

  • 28.3%

Kering 1,772 1,158 +53.1%

Saint Laurent

+43

H1 18

6,432

BV Corporate & other

+237

Other Houses

  • 38

+1,359

H1 17 restated Gucci

+1,020 +97 5,073

BV

  • 15

+57

Saint Laurent

+34

Gucci

+53%

1,158

H1 17 restated

+563

1,772

  • 25

Corporate & other Other Houses H1 18

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22

H1 18 REVENUE

Reported change In €m H1 18 H1 17 €m % Gucci Saint Laurent Bottega Veneta Other Luxury Houses 3,852.8 808.2 552.2 995.5 2,832.5 710.8 590.4 759.5 1,020.3 97.4 (38.2) 236.0 +36.0% +13.7%

  • 6.5%

+31.1% Total Luxury Houses 6,208.7 4,893.2 1,315.5 +26.9% Corporate & Other 223.2 179.8 43.4 +24.1% Kering continuing operations 6,431.9 5,073.0 1,358.9 +26.8%

26.07.2018

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SLIDE 23

y-o-y change In €m % comparable % reported Q1 18 Q2 18 1,867 1,986 +48.7% +40.1% +37.9% +34.3%

23

H1 18 REVENUE: €3,853m

+36.0% REPORTED; +44.1% COMPARABLE

GUCCI

Western Europe 28% North America 21% Japan 8% Asia Pacific 37% RoW 6%

116 119 72 222 118 118 79 223

Western Europe North America Japan Emerging markets

YE 2017: 529 HY 2018 : 538

Revenue breakdown by region Number of directly operated stores

26.07.2018

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SLIDE 24

y-o-y change In €m % comparable % reported Q1 18 Q2 18 408 400 +19.6% +19.8% +12.0% +15.5%

26.07.2018 24

H1 18 REVENUE: €808m

+13.7% REPORTED; +19.7% COMPARABLE

SAINT LAURENT

Western Europe 35% North America 22% Japan 8% Asia Pacific 29% RoW 6%

47 29 30 78 52 31 31 88

Western Europe North America Japan Emerging markets

YE 2017: 184 HY 2018: 202

Revenue breakdown by region Number of directly operated stores

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SLIDE 25

y-o-y change In €m % comparable % reported Q1 18 Q2 18 261 291 +0.7%

  • 2.3%
  • 6.8%
  • 6.1%

25

H1 18 REVENUE: €552m

  • 6.5% REPORTED; -0.9% COMPARABLE

BOTTEGA VENETA

Western Europe 26% North America 11% Japan 15% Asia Pacific 41% RoW 7%

61 30 59 120 61 30 59 124

Western Europe North America Japan Emerging markets

YE 2017: 270 HY 2018: 274

Revenue breakdown by region Number of directly operated stores

26.07.2018

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SLIDE 26

y-o-y change In €m % comparable % reported Q1 18 Q2 18 462 534 +38.6% +34.7% +31.6% +30.6%

26

H1 18 REVENUE: €996m

+31.1% REPORTED; +36.5% COMPARABLE

OTHER LUXURY HOUSES

Western Europe 46% North America 15% Japan 9% Asia Pacific 21% RoW 9%

126 32 81 113 131 33 79 125

Western Europe North America Japan Emerging markets

YE 2017: 352 HY 2018: 368

Revenue breakdown by region Number of directly operated stores

26.07.2018

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SLIDE 27

27

H1 18 RECURRING OPERATING INCOME

Reported change In €m H1 18 H1 17 €m % Gucci Saint Laurent Bottega Veneta Other Luxury Houses 1,470.5 198.0 132.5 85.0 907.3 163.5 147.5 28.1 563.2 34.5 (15.0) 56.9 +62.1% +21.1%

  • 10.2%

+202.5% Total Luxury Houses 1,886.0 1,246.4 639.6 +51.3% Corporate & Other (114.1) (88.9) (25.2)

  • 28.3%

Kering continuing operations 1,771.9 1,157.5 614.4 +53.1%

26.07.2018

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SLIDE 28

28

H1 18 EBITDA

Reported change In €m H1 18 H1 17 €m % Gucci Saint Laurent Bottega Veneta Other Luxury Houses 1,601.8 218.0 152.5 123.0 1,007.4 186.6 169.9 57.9 594.4 31.4 (17.4) 65.1 +59.0% +16.8%

  • 10.2%

+112.4% Total Luxury Houses 2,095.3 1,421.8 673.5 +47.4% Corporate & Other (73.7) (51.7) (22.0)

  • 42.6%

Kering continuing operations 2,021.6 1,370.1 651.5 +47.6%

EBITDA: defined as recurring operating income + net charges to depreciation, amortisation and provisions on non-current operating assets, recognised in recurring operating income 26.07.2018

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SLIDE 29

29

H1 18 NET FINANCIAL COSTS AND INCOME TAX

In €m H1 18 H1 17 Cost of net debt Other financial income and expenses (43.4) (53.7) (59.1) (48.8) Financial costs (net) (97.1) (107.9) In €m H1 18 H1 17 T ax on recurring income T ax on non-recurring items (391.3) 6.3 (219.6) 0.6 Total tax charge (385.0) (219.0) Effective tax rate 23.5% 21.8% Recurring tax rate 23.4% 20.9%

26.07.2018

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SLIDE 30

30

H1 18 CONDENSED CONSOLIDATED BALANCE SHEET

In €m H1 18 H1 17 Goodwill, brands and other intangible assets - net Other net non-current assets Net current assets Net assets held for sale Provisions 9,748 2,561 (178) 367 (348) 14,763 808 1,446

  • (388)

Capital Employed 12,150 16,629 Shareholders’ Equity 9,357 12,057 Net debt 2,793 4,572

26.07.2018

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SLIDE 31

Gucci • Saint Laurent • Bottega Veneta Balenciaga • Alexander McQueen • Brioni Boucheron • Pomellato • Dodo • Qeelin • Ulysse Nardin • Girard-Perregaux Kering Eyewear

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SLIDE 32