Slide 1: Investor Presentation May 2023
INVESTOR PRESENTATION MAY 2023
Slide 2: Disclaimer
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 presentation may include projections and forecasts or other forward-looking statements. They are not historical facts and
Slide 3: Kering at a Glance
KERING AT A GLANCE
Slide 4: 2022 Key Figures
2022 KEY FIGURES GROUP RECURRING N E T I N C O M E AT T R I B U T AB L E GROUP REVENUE O P E R AT I N G I N C O M E TO THE GROUP €20,351m €5,589m €3,614m +15% reported vs. 2021 +11% vs. 2021 +14% reported vs. 2021 +9% comparable(1) vs. 2021 27.5% recurring operating margin F R E E C AS H F L O W EMP
Slide 5: Solid Foundations and Strong Authority of All Our Houses
SOLID FOUNDATIONS AND STRONG AUTHORITY OF ALL OUR HOUSES ▪ GUCCI STRENGTHENING THE HOUSE’S FUNDAMENTALS AND LEVERAGING ITS UNIQUE HERITAGE ▪ SAINT LAURENT DELIVERING ON ITS AMBITIONS ▪ BOTTEGA VENETA FURTHER RAISING ITS ULTRA-HIGH-END POSITIONING ▪ PROMOTING THE DEVELOPMENT OF OTHER HOUSES ▪ KERING
Slide 6: Nurturing a Complementary Ensemble of Iconic Luxury Houses
NURTURING A COMPLEMENTARY ENSEMBLE OF ICONIC LUXURY HOUSES H O U S E S W I T H D I F F E R E N T S C AL E S AN D M AT U R I T Y A W E L L - B AL AN C E D G E O G R AP H I C AL E X P O S U R E (FY22 Revenue and EBIT in €m) (as a % of FY22 Revenue) RoW 7% 27.5% Western Europe 27% 35.6% Asia Pacific 33
Slide 7: Building on Strong Foundations
BUILDING ON STRONG FOUNDATIONS C ON T I N U O US E LE V AT I ON RE I NFO R CI N G T HE • Nurturing desirability of our E X CLUS I V I T Y OF OUR Houses DI S T RI BUT I O N • Blending creativity and • O n g o ing wh o le sa le iconicity rationalization • Leveraging the tradition • Constant assessment
Slide 8: Crafting Tomorrow's Luxury: Our Sustainable Roadmap
CRAFTING TOMORROW’S LUXURY: OUR SUSTAINABLE ROADMAP WE CARE about our impact on the planet, on climate change, on natural resources by: • Reducing our environmental footprint through a 40% reduction of our GHG emissions in absolute terms across our supply chain by 2035 • Preserving our raw materials
Slide 9: Q1 2023 Revenue
Q1 2023 REVENUE heats sa eas
Slide 10: Q1 Group Revenue
Q1 23 GROUP REVENUE KEY HIGHLIGHTS REVENUE CHANGE (in €m and comparable change YoY) • REVENUE +2% REPORTED, +1% COMPARABLE – RETAIL: ALL HOUSES UP +2% – W HOLESALE: DOW N DOUBLE DIGIT, ONGOING reported RATIONALIZATION STRATEGY +2% -1% 5,077 – FX BROADLY NEUTRAL, POSITIVE SCOPE IMPACT FROM MAUI JIM +
Slide 11: Q1 Group Revenue by Segment and Region
Q1 23 GROUP REVENUE REVENUE BREAKDOWN BY SEGMENT REVENUE BREAKDOWN BY REGION (% of total revenue and YoY change) In €m Change (%) RoW Q1 23 Q1 22 Western Europe Revenue Revenue Reported Comp. 7% (-1pt) 25% (+2pt) Gucci 2,616 2,591 +1% +1% Saint Laurent 806 739 +9% +8% Bottega Veneta 395 396 -0% +0%
Slide 12: Q1 Group Revenue by Channel and Region
Q1 23 GROUP REVENUE BY CHANNEL AND REGION R E T AI L I N C L . E - C O M M + 4 % Y o Y C O M P AR AB L E D I R E C T L Y O P E R AT E D S T O R E S 1,673 76% WESTERN NORTH JAPAN +14 NET IN Q1 23 ASIA ROW (+1PT YOY) EUROPE AMERICA PACIFIC +15% -18% +30% +10% -1% 24% WHOLESALE WHOLESALE ROYALTIES (-1P
Slide 13: Gucci Q1 Revenue
Q1 23 REVENUE: +1% REPORTED AND +1% COMPARABLE (in €m, and YoY comparable growth in %) +1% +16% 2,616 2,591 -7% Q1 22 Retail Wholesale Royalties Q1 23 and others 92% of Q1 sales • ENCOURAGING DEVELOPMENTS – Growth in all key product categories, led by Handbags, Travel, W RTW – Strong pipeline and go
Slide 14: Saint Laurent Q1 Revenue
Q1 23 REVENUE: +9% REPORTED, +8% COMPARABLE (in €m, and YoY comparable growth in %) +14% +15% 806 -12% 739 Q1 22 Retail Wholesale Royalties Q1 23 and others 76% of Q1 sales • HEALTHY RETAIL GROWTH – Driven by Leather Goods and RTW – Unabated appeal of carryovers, strong perform ance of Fall & W inte
Slide 15: Bottega Veneta Q1 Revenue
Q1 23 REVENUE: -0% REPORTED, +0% COMPARABLE (in €m, and YoY comparable growth in %) +5% 396 395 -14% -24% Q1 22 Retail Wholesale Royalties Q1 23 and others 80% of Q1 sales • QUALITY GROWTH IN RETAIL – Top-ranked W inter 23 Fashion Show, instant success of new launches, strong pillar lines, AUR up sh
Slide 16: Other Houses Q1 Revenue
OTHER HOUSES Q1 23 REVENUE: -9% REPORTED AND -9% COMPARABLE (in €m, and YoY comparable growth in %) +7% 973 +18% 890 -32% Q1 22 Retail Wholesale Royalties Q1 23 & Other 67% of Q1 sales • RETAIL: ALL HOUSES UP – Positive trends at Balenciaga and Alexander McQueen – Brioni perform ing strongly across
Slide 17: Kering Eyewear and Corporate
KERING EYEWEAR AND CORPORATE Q1 23 REVENUE (in €m, and YoY growth in %) +44% +33% 433 +11% 308 300 -8 Total Q1 22 Scope Q1 22 Kering Comparable Scope Q1 23 Kering Eyewear and FX Eyewear • STRONG START TO THE YEAR – Growth across key brands and areas – Significant contribution from Maui Jim, integrat
Slide 18: FY 2022 Results
FY 2022 RESULTS
Slide 19: FY Revenue Above the €20bn Mark
FY REVENUE ABOVE THE €20BN MARK FY REVENUE GROWTH FY REVENUE BREAKDOWN BY REGION (as a % of FY revenue and % YoY comparable growth) +15% reported +5% 20,351 +9% +1% Japan 6% (+25%) Asia Pacific 17,645 33% (-8%) RoW North America 7% (+15%) 27% (+5%) Western Europe 27% (+36%) FY 21 Comparable Scope FX
Slide 20: Group FY Revenue by Channel
GROUP FY REVENUE BY CHANNEL RETAIL – YOY COMPARABLE +23% O/W +19% E-COMMERCE +11% YOY +12% +10% 15% OF RETAIL SALES 78% (= YOY) Q1 22 Q2 22 Q3 22 Q4 22 FY 22 1,659 DOS +100 NET VS. YE 21 -8% 22% LUXURY BRANDS KERING EYEWEAR ROYALTIES & OTHER (=YOY ) W H O L E S AL E -1% +27% +30% & OTHER +6% YoY % w
Slide 21: A Year of Investment
A YEAR OF INVESTMENT GROUP RECURRING OPERATING INCOME UP 11% ALL HOUSES CONTRIBUTING TO EBIT GROWTH In €m In €m 5,589 +76 5,589 +99 +80 -4 +304 5,017 5,017 +17 27.5% 28.4% FY 21 FY 22 FY 21 Gucci Saint Bottega Other Kering Eliminations FY 22 Laurent Veneta Houses Eyewear & Corporate Investor Present
Slide 22: Healthy Cash Flow Generation and Financial Situation
HEALTHY CASH FLOW GENERATION AND FINANCIAL SITUATION FCF FROM OPERATIONS (€M) NET DEBT (€M)* 3,948 3,208 2,149 2,306 2,105 168 FY 20 FY 21 FY 22 YE 20 YE 21 YE 22 • FCF OVER €3.2 BN • SUBSTANTIAL INCREASE IN SHAREHOLDER RETURN (DIVIDEND AND SBB) • GROUP CAPEX AT €1.1BN, 5.3% OF REVENUE • MAUI JIM AC
Slide 23: Gucci FY22 Revenue
FY22 REVENUE: +8% REPORTED, +1% COMPARABLE (in €m, and YoY comparable growth in %) +1% +0% +26% 10,487 9,731 91% of FY22 sales FY 21 Retail Wholesale Royalties FY 22 and others • Q4 RETAIL DOWN 15% COMP ON HIGH BASE — Continuing elevation strategy, positive AUR impact across all categories, uneven t
Slide 24: Gucci Key Figures
KEY FIGURES In €m FY 22 FY 21 Change Revenue 10,487 9,731 +8% Recurring operating income 3,732 3,715 +0% Margin (%) 35.6% 38.2% -2.6pt Gross CAPEX 408 324 +26% As % of revenue 3.9% 3.3% +0.6pt • INVESTING FOR LONG-TERM GROWTH — Margin dilution on sustained investment to strengthen business fundament
Slide 25: Saint Laurent FY22 Revenue
FY22 REVENUE: +31% REPORTED, +23% COMPARABLE (in €m, and YoY comparable growth in %) +6% +29% 3,300 +28% 2,521 77% of FY22 sales FY 21 Retail Wholesale Royalties FY 22 and others • Q4 UP 4%, DRIVEN BY RETAIL +7% COMP — Strong performance in W.Europe driven by locals with extra boost from tourists; r
Slide 26: Saint Laurent Key Figures
KEY FIGURES In €m FY 22 FY 21 Change Revenue 3,300 2,521 +31% Recurring operating income 1,019 715 +43% Margin (%) 30.9% 28.3% +2.6pt Gross CAPEX 112 72 +55% As % of revenue 3.4% 2.8% +0.6pt • RECURRING OPERATING MARGIN ABOVE 30% — Gross margin up on channel mix and pricing power — Operating leverag
Slide 27: Bottega Veneta FY22 Revenue
FY22 REVENUE: +16% REPORTED, +11% COMPARABLE (in €m, and YoY comparable growth in %) +15% +0% 1,740 -7% 1,503 78% of FY22 sales FY 21 Retail Wholesale Royalties FY 22 and others • Q4 UP 6% COMP, RETAIL +4% — Strong performances in W. Europe, Japan, SE Asia offsetting softness in N. America and Mainl
Slide 28: Bottega Veneta Key Figures
KEY FIGURES In €m FY 22 FY 21 Change Revenue 1,740 1,503 +16% Recurring operating income 366 286 +28% Margin (%) 21.0% 19.1% +1.9pt Gross CAPEX 92 67 +37% As % of revenue 5.3% 4.5% +0.8pt • OPERATING MARGIN IMPROVING CONSISTENTLY — Gross margin up on product, channel mix and pricing — Continued inve
Slide 29: Other Houses FY22 Revenue
OTHER HOUSES FY22 REVENUE: +18% REPORTED, +16% COMPARABLE (in €m, and YoY comparable growth in %) +27% +58% 3,874 -6% 3,285 -2% 66% of FY22 sales FY 21 Scope Retail Wholesale Royalties FY 22 & Other • Q4 DOWN 4% COMP — Retail up 2%, DD growth in W.Europe and Japan; APAC and N.America down single dig
Slide 30: Other Houses Key Figures
OTHER HOUSES KEY FIGURES In €m FY 22 FY 21 Change Revenue 3,874 3,285 +18% Recurring operating income 558 459 +22% Margin (%) 14.4% 14.1% +0.3pt Gross CAPEX 221 180 +23% As % of revenue 5.7% 5.5% +0.2pt • RECURRING OPERATING INCOME UP 22% — Continued investments along the year to develop our Houses
Slide 31: Kering Eyewear Firing on All Cylinders
KERING EYEWEAR FIRING ON ALL CYLINDERS FY22 REVENUE (in €m, and YoY growth in %) +58% +25% +6% 1,115 +27% 706 FY 21 Comparable Scope FX FY 22 • Q4 UP 30% COMPARABLE — Confirming strength across brands, channels and regions • FY REVENUE ABOVE €1BN MARK — Fueled by sustained organic growth and contrib
Slide 32: Kering Eyewear & Corporate Key Figures
KERING EYEWEAR & CORPORATE KEY FIGURES In €m FY 22 FY 21 Change Revenue 1,139 733 +55% Kering Eyewear 1,115 706 +58% Other 24 27 -9% Recurring operating income (88) (164) +46% Kering Eyewear 203 82 +146% Corporate (291) (246) -18% Gross CAPEX 238 291 -18% • STRONG IMPROVEMENT IN RECURRING OPERATING
Slide 33: ESG Update
ESG UPDATE
Slide 34: Membership of the Board of Directors
MEMBERSHIP OF THE BOARD OF DIRECTORS 5 INDEPENDENT DIRECTORS François-Henri Pinault Chairman and CEO 4 NON-INDEPENDENT DIRECTORS Véronique Weill Tidjane Thiam Lead Independent Director Chairman of the Chair of the Audit Committee Remuneration Committee 12 Directors Jean-Pierre Denis Financière Pinau
Slide 35: Key Figures Relating to the Board of Directors
KEY FIGURES RELATING TO THE BOARD OF DIRECTORS As of 2010 2015 2021 April 27 th ,2023 TOTAL NUMBER OF DIRECTORS 14 10 13 12 (2) INDEPENDENCE (1) 57% 40% 55% 50% PROPORTION (2) OF WOMEN (1) 28% 30% 55% 40% AVERAGE AGE 55 57 54 57 NATIONALITIES REPRESENTED 4 3 5 5 (1) In accordance with the provisions
Slide 36: Four Committees Chaired by Independent Directors
FOUR COMMITTEES CHAIRED BY INDEPENDENT DIRECTORS AUDIT REMUNERATION COMMITTEE COMMITTEE • Tidjane Thiam (Chairman / Independent Director) • Véronique Weill (Chair / Independent Director) • Jean-Pierre Denis (Climate Change Lead) • Jean-Pierre Denis (Climate Change Lead) • Financière Pinault, represe
Slide 37: Materiality: Targeting Our Main Priorities
MATERIALITY: TARGETING OUR MAIN PRIORITIES OUR CONTRIBUTION TO THE UNITED NATIONS SDG • Results of the 2020/2021 materiality assessment confirmed that Kering’s strategic pillars are consistent with external stakeholders’ expectations • 2025 Sustainability Strategy dashboard identifies the contributi
Slide 38: Mitigating Climate Change
MITIGATING CLIMATE CHANGE AN IMPACTFUL CLIMATE STRATEGY Science-based targets in line with the Paris Agreement towards achieving a 1.5°C pathway by 2030 and net zero by 2050 Ongoing support of Natural Climate Solutions within our supply chain • 90% reduction in absolute GHG emissions from Kering ope
Slide 39: The EP&L, Cornerstone of Our Environmental Approach
THE EP&L, CORNERSTONE OF OUR ENVIRONMENTAL APPROACH PROGRESS TOWARDS 2025 GOALS 86% of our impacts fall outside of our own operations 50% reduction in our EP&L intensity between 2015 and 2022 70% in raw material production step → Achieving Kering’s EP&L target 4 years ahead of time Investor Presenta
Slide 40: Building Responsible Supply Chains
BUILDING RESPONSIBLE SUPPLY CHAINS OUR SUPPLY CHAIN STRUCTURE Almost 92% suppliers in Europe, predominantly in Italy → strong government presence, comprehensive and mature labor law, highly developed social dialogue 4,745 4,118 suppliers covered audits in 2022 Gucci & Bottega Veneta All key supplier
Slide 41: Protecting Biodiversity
PROTECTING BIODIVERSITY OUR COMMITMENT Becoming a nature positive company by 2025 by regenerating and protecting an area about six times our total land footprint across our full supply chain • Regenerating 1 million hectares of farms and rangelands in our supply chain landscapes by 2025, though the
Slide 42: Acting for the Green Transition of Our Industry
ACTING FOR THE GREEN TRANSITION OF OUR INDUSTRY THE REGENERATIVE FUND FOR NATURE THE CLIMATE FUND FOR NATURE • Launched in January 2021 by Kering in partnership with • Launched in December 2022 by Kering, supported by L’Occitane Conservation International Group and managed by Mirova, a Natixis subsi
Slide 43: Coming Full Circle: Our Circularity Approach
COMING FULL CIRCLE : OUR CIRCULARITY APPROACH LUXURY THAT LASTS • Increasing the longevity of our products: durability by design, culture of repair and reuse • Supporting new business models designed to keep our products in circulation for the longest possible time (e.g., second -hand) ADOPTING A HO
Slide 44: Kering People
KERING PEOPLE 47,227 PEOPLE 37% 21% Men Support & logistics WORK ALL PLACE 63% 22% 57% Women Production Sales 13% 53% 34% 43% 11% 1% Men Generation Z Baby Americas EMEA APAC (>1995) Boomers (1945-1960) MANAGERS AGE 61% 27% Generation Y Generation X (1981-1995) (1961-1980) 57% 13,375 9,610 Women hire
Slide 45: Crafting Tomorrow's Luxury: Progressing on Sustainability Commitments
CRAFTING TOMORROW’S LUXURY: PROGRESSING ON OUR SUSTAINABILITY COMMITMENTS • 50% reduction in our environmental footprint (EP&L intensity 2015 -22) • Alignment of our Climate strategy with the 1.5°C scenario • CDP 2022 Climate A List CARE • 95% traceability for our key raw materials • 71% raw materia
Slide 46: Appendix – Q1 23 Revenue
APPENDIX – Q123 REVENUE
Slide 47: Gucci Q1 2023 Revenue
Q1 2023 REVENUE €2,616m +1% REPORTED, +1% COMPARABLE DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION As of March 31, 2023 (net change vs. YE 22) RoW Western Europe RoW 7% Western Europe 67 (+3 net) 103 (0 net) 20% Asia Pacific Asia Pacific 534 North America 45% 180 (-1 net) 112 (+5 net) Japan J
Slide 48: Saint Laurent Q1 2023 Revenue
Q1 2023 REVENUE €806m +9% REPORTED, +8% COMPARABLE DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION As of March 31, 2023 (net change vs. YE 22) RoW RoW Western Europe 7% Western Europe 24 (+1 net) 58 (+1 net) 28% Asia Pacific Asia Pacific 31% 281 108 (-1 net) Japan North America Japan North Amer
Slide 49: Bottega Veneta Q1 2023 Revenue
Q1 2023 REVENUE €395m -0% REPORTED, +0% COMPARABLE DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION As of March 31, 2023 (net change vs. YE 22) RoW Western Europe RoW 8% Western Europe 20 (+0 net) 55 (+0 net) 26% Asia Pacific Asia Pacific North America 271 37% 110 (+0 net) 40 (+1 net) Japan Japa
Slide 50: Other Houses Q1 2023 Revenue
OTHER HOUSES Q1 2023 REVENUE €890m -9% REPORTED, -9% COMPARABLE DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION As of March 31, 2023 (net change vs. YE 22) RoW Western Europe RoW 7% Western Europe 30 (+0 net) 126 (-2 net) 32% Asia Pacific Asia Pacific North America 587 38% 268 (+6 net) 78 (+3 n
Slide 51: Appendix – FY22 Results
APPENDIX – FY22 RESULTS
Slide 52: Financial Performance
FINANCIAL PERFORMANCE In €m FY 22 FY 21 Revenue 20,351 17,645 Gross margin 15,198 13,068 Recurring operating income 5,589 5,017 Other non-recurring operating income and expenses (194) (220) Financial result (260) (273) Income tax expense (1,420) (1,280) Share in earnings of equity-accounted companie
Slide 53: Free Cash Flow from Operations
FREE CASH FLOW FROM OPERATIONS In €m FY 22 FY 21 Cash flow before taxes, dividends and interests 6,926 6,387 Change in working capital requirement (902) (38) Income tax paid (1,746) (1,473) Net cash flow from operating activities 4,278 4,876 Acquisition of fixed operating assets, net (1,070) (928) F
Slide 54: Change in Net Financial Debt
CHANGE IN NET FINANCIAL DEBT FY 2022 NET DEBT BRIDGE In €m and Net Debt / EBITDA ratio SHAREHOLDER RETURN 1,783 2,306 €2.6BN 0.3x 0.5x 157 1,030 168 -100 1,528 948 0.1x -3,208 Net debt at FCF from Lease Dividend paid Acquisition of Net interest paid Disposal of Net financial Net debt at Dec. 31, 202
Slide 55: Dividend Up 17%
DIVIDEND UP 17% DIVIDEND PER SHARE 14.00 12.00 (In €) 10.50 8.00 8.00 2018 2019 2020 2021 2022 €4.50 per share interim dividend paid on January 18, 2023 €9.50 per share balance paid on May 4, 2023 DIVIDEND PAYOUT 96.4% 82.1% 47.0% 47.8% 45.2% 50.7% 44.5% 50.0% 46.1% 31.3% 2018 2019 2020 2021 2022 in
Slide 56: Recurring Operating Income
RECURRING OPERATING INCOME In €m FY 22 FY 21 Reported change % Gucci 3,732 3,715 +0% Saint Laurent 1,019 715 +43% Bottega Veneta 366 286 +28% Other Houses 558 459 +22% Kering Eyewear & Corporate (88) (164) +46% Eliminations 2 6 n.a. Kering 5,589 5,017 +11% Investor Presentation – May 2023 56
Slide 57: EBITDA
EBITDA In €m FY 22 FY 21 Reported change % Gucci 4,416 4,311 +2% Saint Laurent 1,251 915 +37% Bottega Veneta 541 449 +20% Other Houses 888 734 +21% Kering Eyewear & Corporate 157 55 +186% Eliminations 2 6 n.a. Kering 7,255 6,470 +12% Investor Presentation – May 2023 57
Slide 58: Net Financial Costs and Income Tax
NET FINANCIAL COSTS AND INCOME TAX In €m FY 22 FY 21 Cost of net debt (47) (38) Other financial income and expenses (89) (129) Total financial result (excluding leases) (136) (167) Interest expense on lease liabilities (124) (106) Financial result (260) (273) FY 22 FY 21 Income tax expense on recurr
Slide 59: Capital Employed and Operating Working Capital
CAPITAL EMPLOYED AND OPERATING WORKING CAPITAL SHAREHOLDERS’ NET DEBT-TO-EQUITY CAPITAL EQUITY DEBT RATIO EMPLOYED €14,783M €2,306M 15.6% €17,089M OPERATING INVENTORIES RECEIVABLES PAYABLES WORKING CAP €3,382M €4,465M €1,180M €2,263M 16.6%* * As a % of Group revenue Investor Presentation – May 2023
Slide 60: Balance Sheet
BALANCE SHEET In €m Dec. 31, 2022 Dec. 31, 2021 Goodwill, brands and intangible Assets 11,410 9,923 Lease right-of-use Assets 4,929 4,302 Property, plant and equipment 3,388 2,967 Net other Non-current Assets (Liabilities) 753 793 Non-current lease Liabilities (4,420) (3,826) Total Net Non-current A
Slide 61: Kering Houses and Brands
Gucci • Saint Laurent • Bottega Veneta • Balenciaga • Alexander McQueen • Brioni Boucheron • Pomellato • Dodo • Qeelin Kering Eyewear
Slide 62: Empowering Imagination