Kering Sa · EURONEXT:KER
Kering Sa — ESG Presentation (September 2022)
90 slides from Kering Sa's sustainability presentation, September 2022
Slide 1: Kering ESG Presentation September 2022
KERING ESG PRESENTATION SEPTEMBER 2022
Slide 2: Summary
SUMMARY 1. GROUP PRESENTATION & STRATEGY 2. GOVERNANCE 3. SUSTAINABILITY 4. PEOPLE 2
Slide 3: Summary
SUMMARY 1. GROUP PRESENTATION & STRATEGY 2. GOVERNANCE 3. SUSTAINABILITY 4. PEOPLE 3
Slide 4: Luxury industry changed radically over the past decade and will continue
LUXURY INDUSTRY CHANGED RADICALLY OVER THE PAST DECADE AND WILL CONTINUE… PERSONAL LUXURY GOODS MARKET In €bn Share by generation Source: Bain/Altagamma, May 2022 Source: Bain/Altagamma, November 2021 360-380 Gen X and 288 245 244 254 262 281 Baby boomers 212 219 220 186 207 159 147 167 >50% Gen Y 3
Slide 5: With some trends accelerating
… WITH SOME TRENDS ACCELERATING YOUNG AND GLOBAL NUMEROUS OMNICHANNEL A DEMAND-DRIVEN CONSUMERS TOUCHPOINTS AS A MUST SUPPLY CHAIN INCREASED DEMAND NEW TECHNOLOGIES FOR TRANSPARENCY KERING IS WELL POSITIONED TO LEVERAGE THE NEW LUXURY ENVIRONMENT WE CARE, OUR BRANDS DEPLOY WE INCREASE WE INVEST WE C
Slide 6: Our ambition
“ O u r a m b i t i o n : t o b e t h e w o r l d ’s m o s t i n f l u e n t i a l L u xu r y g r o u p i n t e r m s o f c r e a t i v i t y, sustainability and long-term financial performance KERING ESG PRESENTATION - SEPT 2022 ” 6
Slide 7: A unique growth & performance model
A UNIQUE GROWTH & PERFORMANCE MODEL RESPONSIBILITY, INNOVATION, QUALITY ORGANIC GROWTH OF EXECUTION & VALUE CREATION CREATIVITY SUSTAINABILITY LONG-TERM FINANCIAL PERFORMANCE GROWTH PLATFORMS COMPETITIVE ADVANTAGES KERING ESG PRESENTATION - SEPT 2022 7
Slide 8: Kering manages the development of renowned Houses
KERING MANAGES THE DEVELOPMENT OF A SERIES OF RENOWED HOUSES IN FASHION, LEATHER GOODS AND JEWELRY GROUP RECURRING N E T I N C O M E AT T R I B U TA B L E GROUP REVENUE TO O W N E R S O F T H E PAR E N T O P E R AT I N G I N C O M E €17,645m €5,017m €3,176m +34.7% reported vs. 2020 +60.0% vs. 2020 +
Slide 9: Dividend up 50%
DIVIDEND UP 50% DIVIDEND PER SHARE 12.00 10.50 8.00 8.00 6.00 2017 2018 2019 2020 2021 DIVIDEND PAYOUT 96.4% 47.0% 47.8% 45.2% 50.7% 44.5% 50.0% 40.1% 37.3% 31.3% 2017 2018 2019 2020 2021 in % of recurring net income, Group share in % of available cash flow from operations KERING ESG PRESENTATION -
Slide 10: Summary
SUMMARY 1. GROUP PRESENTATION & STRATEGY 2. GOVERNANCE 3. SUSTAINABILITY 4. PEOPLE 10
Slide 11: Governance
GOVERNANCE Kering’s strategy Kering’s & performance governance driving management compensation KERING ESG PRESENTATION - SEPT 2022 11
Slide 12: A group defined by entrepreneurial spirit
A GROUP DEFINED BY ENTREPRENEURIAL SPIRIT Employee Institutional Individual shareholders Artémis investors shareholders Treasury shares 41.7% of capital 58.4% of voting rights 4.2% 53.5% 0.6% STABLE FAMILY SHAREHOLDING WITH LONG-TERM STRATEGY STRONG INSTITUTIONAL INVESTOR BASE ALIGNED WITH THE GROUP
Slide 13: Membership of the Board of Directors
MEMBERSHIP OF THE BOARD OF DIRECTORS 6 INDEPENDENT DIRECTORS François-Henri Pinault Chairman and CEO 4 NON-INDEPENDENT DIRECTORS Yonca Dervisoglu Daniela Riccardi 13 Directors Jean-Pierre Denis Financière Pinault Climate Change Lead Represented by Tidjane Thiam Emma Watson Héloïse Temple-Boyer Chair
Slide 14: Board focusing on independence and variety of expertise
BOARD FOCUSING ON INDEPENDENCE AND VARIETY OF EXPERTISE As of 2010 2015 2021 Aug. 1 st, 2022 TOTAL NUMBER OF DIRECTORS 14 10 13 13 INDEPENDENCE (1) 57% 40% 55% 55% PROPORTION OF WOMEN (1) 28% 30% 55% 45% AVERAGE AGE 55 57 54 57 NATIONALITIES REPRESENTED 4 3 5 5 (1) Within the meaning of the Corporat
Slide 15: Depth and breadth of director skills
DEPTH AND BREADTH OF DIRECTOR SKILLS KERING’S DIRECTORS COLLECTIVELY REPRESENT A DEEP, DIVERSE MIX OF SKILLS AND EXPERIENCES THAT SUPPORT LONG-TERM VALUE CREATION F.-H. J.-F. V. T. S. E. J.-P. C. Y. B. D. V. H. Pinault Palus Weill Thiam Weinberg Watson Denis Battaglia Dervisoglu Prot Riccardi Schaal
Slide 16: Board governance best practices
BOARD GOVERNANCE BEST PRACTICES Compliance with Lead Independent Combination of Complementary nature recommendations of Director at the Board of management roles of the duties of the the AFEP-MEDEF Code Directors since (Chairman of the Board Chairman and CEO and February 2019 (duties and CEO) adapte
Slide 17: Role of the Lead Independent Director
ROLE OF THE LEAD INDEPENDENT DIRECTOR VERONIQUE WEILL Chair of the Board of Directors of CNP Assurances Member of the Board of Directors since 2022 Designated Lead Independent Director by the Board in April 2022 Member of the 4 Committees: Audit, Remuneration, Appointments & Governance, Sustainabili
Slide 18: Role of the Climate Change Lead
ROLE OF THE CLIMATE CHANGE LEAD JEAN-PIERRE DENIS Member of the Board of Directors since 2008 Designated Climate Change Lead by the Board in April 2022 Member of the Audit, Remuneration and Sustainability Committees Age: 62 French national Director expertise*: The Climate Change Lead: • Ensures that
Slide 19: Board governance
BOARD GOVERNANCE AUDIT REMUNERATION COMMITTEE COMMITTEE • Tidjane Thiam (Chairman / Independent Director) • Véronique Weill (Chairwoman / Independent Director) • Jean-Pierre Denis • Jean-Pierre Denis • Financière Pinault, represented • Financière Pinault, represented by Héloïse Temple-Boyer by Héloï
Slide 20: Board governance – risk oversight
BOARD GOVERNANCE – RISK OVERSIGHT Review of internal and external audit activities Review of Review Compliance of internal control & GDPR AUDIT COMMITTEE Risk management & validation Approval of the risk mapping, of the annual including non-financial internal audit plan risks KERING ESG PRESENTATION
Slide 21: Risk mapping
RISK MAPPING KERING ESG PRESENTATION - SEPT 2022 Source: 2021 Universal Registration Document – page 293 21
Slide 22: Governance: performance and compensation
GOVERNANCE Kering’s strategy Kering’s & performance governance driving management compensation KERING ESG PRESENTATION - SEPT 2022 22
Slide 23: Components of executive corporate officers' remuneration
COMPONENTS OF EXECUTIVE CORPORATE OFFICERS’ REMUNERATION Annual fixed remuneration Annual variable remuneration Multi-annual variable remuneration (cash) (cash) (performance shares) Performance criteria Performance criteria (3 years) Proportion of women in Sustainability 10 % • Consideration of the
Slide 24: Remuneration structure for 2022 for executive corporate officers
REMUNERATION STRUCTURE FOR 2022 FOR EXECUTIVE CORPORATE OFFICERS LONG TERM & ALIGNED WITH SHAREHOLDERS’ INTERESTS CHAIRMAN & CEO GROUP MANAGING DIRECTOR 60% 16% 50% 20% Multi-annual Fixed Multi-annual variable Fixed variable remuneration remuneration (LTI) remuneration remuneration (LTI) = 100% of t
Slide 25: Remuneration structure for 2022 mirroring Kering's objectives
REMUNERATION STRUCTURE FOR 2022 FOR EXECUTIVE CORPORATE OFFICERS MIRRORING KERING’S OBJECTIVES CHAIRMAN & CEO GROUP MANAGING DIRECTOR Voted at the 2021 AGM Submitted to the 2022 AGM Voted at the 2021 AGM Submitted to the 2022 AGM FIXED €1,200,000 €1,200,000 €1,200,000 €1,200,000 REMUNERATION No perf
Slide 26: 2022 annual variable remuneration
2022 ANNUAL VARIABLE REMUNERATION PERFORMANCE CONDITIONS AND OVERALL ACHIEVEMENT PROCESS As a % of fixed remuneration Non-financial targets Chairman and CEO Group Managing Director Financial targets Total annual BONUS IF TARGETS MET(1) 150% variable remuneration MAXIMUM BONUS(2) 203% Sustainability
Slide 27: Financial targets' achievement process
2022 ANNUAL VARIABLE REMUNERATION FINANCIAL TARGETS’ ACHIEVEMENT PROCESS Rate of achievement 150% Percentage of bonus of financial targets awarded (vs.target) 2% additional payment PERCENTAGE OF BONUS AWARDED for each additional % above the target rate 100% ≤ 75% 0% 4% decrease for each % below the
Slide 28: ESG targets set for 2022
2022 ANNUAL VARIABLE REMUNERATION ESG TARGETS SET FOR 2022 (QUALITATIVE) Chairman & CEO / Group Managing Director Objective: Sustainability and, more particularly, a reduction in Kering’s environmental impact, in line with the strategy for 2025 • Continue to embed an active sustainability culture ac
Slide 29: 2022 multi-annual variable remuneration (LTI)
2022 MULTI-ANNUAL VARIABLE REMUNERATION (LTI) HOW PERFORMANCE SHARES WORK VESTING PERIOD (3 years) Y Y+1 Y+2 Grant of performance shares Final vesting Performance shares awarded are available subject to conditions Amount of performance shares to The Chairman & CEO and the Group Managing be granted (
Slide 30: LTI performance conditions
2022 MULTI-ANNUAL VARIABLE REMUNERATION (LTI) PERFORMANCE CONDITIONS: STRICTER REQUIREMENTS FOR FINANCIAL CRITERIA AND FOCUS ON COMMITMENT TO ESG ISSUES Relative Criterion Performance assessment method weighting Increase between the average amount over the 3-year vesting period and the amount shown
Slide 31: Compensation for members of the Board for 2022
COMPENSATION FOR MEMBERS OF THE BOARD OF DIRECTORS FOR 2022 TOTAL REMUNERATION ALLOCATED TO Unchanged vs. 2021: €1,400,000 DIRECTORS 40% FIXED 60% VARIABLE Minus special portions for: • the remuneration of the Chairs of the Audit, Coefficient: COMPONENTS Remuneration, Appointments & Governance, • 1
Slide 32: Summary
SUMMARY 1. GROUP PRESENTATION & STRATEGY 2. GOVERNANCE 3. SUSTAINABILITY 4. PEOPLE 32
Slide 33: Crafting tomorrow's luxury: our roadmap for 2025
CRAFTING TOMORROW’S LUXURY: OUR ROADMAP FOR 2025 2025 ROADMAP WE CARE about our impact on the planet, on climate change, on natural resources by: • Reducing our environmental footprint through -40% EP&L • Preserving our raw materials through 100% traceability and compliance with our Kering Standards
Slide 34: Progressing on our sustainability commitments
CRAFTING TOMORROW’S LUXURY: PROGRESSING ON OUR SUSTAINABILITY COMMITMENTS • 41% reduction in our environmental footprint (EP&L intensity 2015 -21) • Extension of our environmental footprint to the consumer use and end-of-life phases of our products • Alignment of our Climate strategy with the 1.5°C
Slide 35: A set of operational standards to implement our global strategy
CRAFTING TOMORROW’S LUXURY: A SET OF OPERATIONAL STANDARDS ALLOWING US TO IMPLEMENT OUR GLOBAL STRATE GY KERING ESG PRESENTATION - SEPT 2022 35
Slide 36: Materiality: targeting our main priorities
MATERIALITY: TARGETING OUR MAIN PRIORITIES OUR CONTRIBUTION TO THE UN 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 contribution of our ac
Slide 37: Our sustainability governance
OUR SUSTAINABILITY GOVERNANCE Remuneration of the Chairman and CEO, and of the Group Managing Director ESG criteria for 30% of the annual bonus and 20% of the LTIP 90 people dedicated to sustainability Since April 2022, a Climate Change Lead has been designated at the Board of Directors KERING ESG P
Slide 38: External recognition of our ESG performance
EXTERNAL RECOGNITION OF OUR ESG PERFORMANCE Kering is the only Luxury company consistently included in all main ESG ratings and rankings 2021 2022 2021 84/100 / 3rd CDP Climate A DJSI World & Europe for the AAA = CDP Water A 9th consecutive year CDP Forests B (Leather/Wood) 2022 2021 2021 73/100
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 41% reduction in our EP&L intensity between 2015 and 2021 66% in raw material production step → Achieving Kering’s EP&L target 4 years ahead of time KERING ESG PRESEN
Slide 40: Scope covered by our EP&L approach
SCOPE COVERED BY OUR EP&L APPROACH EP&L approach and results audited, since 2021, by one of Kering’s Statutory Auditors, on a voluntary basis KERING ESG PRESENTATION - SEPT 2022 40
Slide 41: What is an EP&L?
WHAT IS AN EP&L? Environmental Footprint X Impact Valuation = EP&L KERING ESG PRESENTATION - SEPT 2022 Source: 2020 Universal Registration Document – page 169 41
Slide 42: Digital EP&L: open sourcing our results since 2019
DIGITAL EP&L: OPEN SOURCING OUR RESULTS SINCE 2019 https://kering-group.opendatasoft.com/pages/epl-map-2021/ KERING ESG PRESENTATION - SEPT 2022 42
Slide 43: Monitoring our environmental impact around the world
MONITORING OUR ENVIRONMENTAL IMPACT AROUND THE WORLD Source: https://keringcorporate.dam.kering.com/m/2a4d55867c173f86/original/Rapport -Kering-Environmental-Profit-and-Loss-report-2021-EN-only.pdf KERING ESG PRESENTATION - SEPT 2022 43
Slide 44: 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 45: Building responsible supply chains
BUILDING RESPONSIBLE SUPPLY CHAINS OUR SUPPLY CHAIN STRUCTURE More than 92% suppliers in Europe, predominantly in Italy Western Europe (89.6%): strong government presence, comprehensive and mature labor law, highly developed social dialogue 4,107 3,420 suppliers audits in 2021 Gucci & Bottega Veneta
Slide 46: Beyond audits: sustainable raw materials and processes
BEYOND AUDITS: SUSTAINABLE RAW MATERIALS AND PROCESSES • 100% of the key raw materials used by the Group, and the production processes using 2 concrete targets by these materials, aligned with the Kering Standards 2025 • 100% of key raw materials to be traceable back to their country of origin Leath
Slide 47: Upholding and promoting human rights
UPHOLDING AND PROMOTING HUMAN RIGHTS HUMAN RIGHTS IN THE WORKPLACE Ensuring that measures are put into place for the rights and well-being of our employees, in all locations and throughout all operations: • Respect for human rights and laws • A working environment free from all forms of harassment •
Slide 48: 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 49: The Regenerative Fund for Nature
THE REGENERATIVE FUND FOR NATURE • Launched in January 2021 in partnership with Conservation International • Objective: transition 1 million hectares of existing farms/rangelands into regenerative agricultural practices • 4 materials: leather, wool, cotton & cashmere • Timeline: 2021 – 2025 • 5 key
Slide 50: Projects selected for 2021 for the Regenerative Fund for Nature
THE PROJECTS SELECTED FOR 2021 FOR THE REGENERATIVE FUND FOR NATURE 7 projects in 6 countries, supporting over 840,000 hectares transitioning to regenerative approaches and benefiting 60,000 people Epiterre Foundation Organic Cotton Material: Wool + Leather (Sheep) Accelerator Hectares: 200 Duration
Slide 51: Embedding innovation in our actions
EMBEDDING INNOVATION IN OUR ACTIONS IN OUR VALUE CHAIN Scaling up innovative processes and developing raw material pilot projects in our Houses Supporting our Houses’ sustainable sourcing through the Materials Innovation Lab (access to more than 4,000 certified ecological fabrics and fibers) and the
Slide 52: Examples of programs in the supply chain
EMBEDDING INNOVATION IN OUR ACTIONS Examples of programs in the supply chain Clean by Design Material Innovation Lab Worn Again Suppliers’ energy performance Sourcing of responsible suppliers Clothing production and recycling Spearheaded in 2013 by the NRDC Created in 2013, the Material Innovation W
Slide 53: Circular economy: disrupting the take-make-waste system
CIRCULAR ECONOMY: DISRUPTING THE “TAKE -MAKE-WASTE” SYSTEM Kering adheres to the “Vision of a circular economy for fashion” published by the Ellen MacArthur Foundation in October 2020 Source: Ellen MacArthur Foundation KERING ESG PRESENTATION - SEPT 2022 53
Slide 54: Our circularity ambition: Coming full circle
OUR CIRCULARITY AMBITION: "COMING FULL CIRCLE" Ambition published in May 2021 and based on… 3 central pillars Key commitments No 100 % 1 Luxury that lasts destruction renewable Zero of unsold single-use energy by products plastic by 2025 2022 2 Regenerative sourcing and clean production 100% of raw
Slide 55: Our circularity ambition: Coming full circle
OUR CIRCULARITY AMBITION: "COMING FULL CIRCLE" 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 HOLIST
Slide 56: Engaging with industry peers
ENGAGING WITH INDUSTRY PEERS… • 75+ leading global companies representing • A CEO-led initiative launched in 2021 in partnership with Cartier >250 brands and >1/3 of the fashion industry’s production volumes • Initiative open to all watch and jewellery players / already • Commitment to delivering po
Slide 57: Dialoguing with many other stakeholders
… AND DIALOGUING WITH MANY OTHER STAKEHOLDERS Coalitions Technical w orking groups Fashion Natural capital Circularity Innovation Sourcing & nature Env. excellence Multi-industry CUIR DE VEAU RESPONSABLE Social SUSTAINABLE BUILDINGS BY LUXURY MAISONS KERING ESG PRESENTATION - SEPT 2022 57
Slide 58: Summary
SUMMARY 1. GROUP PRESENTATION & STRATEGY 2. GOVERNANCE 3. SUSTAINABILITY 4. PEOPLE 58
Slide 59: Kering people
KERING PEOPLE 42,811 PEOPLE 37% 21% Men Offices WORK ALL PLACE 63% 21% 58% Women Production Retail 12% 53% 35% 44% 4% 1% Men Generation Z Baby Americas EMEA APAC (>1995) Boomers (1945-1960) MANAGERS AGE 65% 30% Generation Y Generation X (1981-1995) (1961-1980) 56% 13,052 10,166 Women hires departure
Slide 60: Our people vision
OUR PEOPLE VISION BE THE PREFERRED EMPLOYER BUILD A “LOVED” AND RESPECTED MULTI- IN LUXURY BRAND COMPANY for responsible, ambitious individuals who want joining strong Houses together with a shared culture and sense to make a difference in an open and diverse environment of purpose, which everyone u
Slide 61: Our responsibility to our 43,000 people
OUR RESPONSIBILITY TO OUR 43,000 PEOPLE 1 2 3 4 Creating Advancing equality Developing Talent: investing Engaging diverse leadership in the workplace: in professional development in a global dialogue with our in all Houses: aiming to achieve and continuous learning 43,000 employees: in terms of geog
Slide 62: Creating diverse leadership in all Houses
1. CREATING DIVERSE LEADERSHIP IN ALL HOUSES OUR COMMITMENT FOR 2025 WHERE WE ARE Increase diversity in key management positions, in terms Women at Kering account for: of gender and geography, to better reflect our business footprint DEVELOPMENT ACTIONS IN PLACE Recruitment: 45% 56% • gender parity
Slide 63: Advancing workplace equity
2. ADVANCING WORKPLACE EQUITY OUR COMMITMENT FOR 2025 FRANCE Kering Group • Gender parity at all levels Equal Pay Index • Parity promotion rate for men and women 2021 • Pay equity 83/100 DEVELOPMENT ACTIONS IN PLACE Recruitment: • recruiters and hiring managers trained on inclusive recruitment (incl
Slide 64: Advancing workplace equity
2. ADVANCING WORKPLACE EQUITY ENGAGING ALL LEVELS & LEADERSHIP COMMITMENT • Engagement of our Chairman and CEO, Inclusion & Diversity sponsor − At the origin of the creation of the Kering Foundation in 2008 that is committed to combating violence against women • 10 I&D active committees, one per Hou
Slide 65: Advancing workplace equity
2. ADVANCING WORKPLACE EQUITY KERING ESG PRESENTATION - SEPT 2022 65
Slide 66: Advancing workplace equity
2. ADVANCING WORKPLACE EQUITY Kering scored 100% in Kering is leading on Kering achieved a 100% Corporate Equality Index parental leave in Equileap score in equal pay & in America by HRC European gender equality gender pay parity in the index Bloomberg Gender Equality Index KERING ESG PRESENTATION -
Slide 67: Developing talent
3. DEVELOPING TALENT TALENT DEVELOPMENT • Retail Management Trainee Program in CONTINUOUS LEARNING China (2nd cohort) • Kering Learning: platform with • Gucci Grade in EMEA (2nd cohort) 300+ courses, multi-language • Continuous performance feedback • Managers upskilling on • Open ongoing career conv
Slide 68: Developing talent
3. DEVELOPING TALENT DEVELOPING TALENT WITH INTERNAL MOBILITY KERING ESG PRESENTATION - SEPT 2022 68
Slide 69: 2021 Kering People Survey
4. ENGAGING IN A MEANINGFUL DIALOGUE WITH OUR 43,000 EMPLOYEES 2021 KERING PEOPLE SURVEY • 37 questions, with a Inclusion & Diversity focus (10 I&D-related questions) and introduction of our Inclusion Index • Global survey for all our employees • Strong response: 87% response rate • Continued high l
Slide 70: Engaging in a meaningful dialogue with our employees
4. ENGAGING IN A MEANINGFUL DIALOGUE WITH OUR 43,000 EMPLOYEES Parental policy Ethics Well-being and mental A RANGE OF health at work TOUCH POINTS TO ENSURE ENGAGEMENT Sense of belonging and purpose Health & Safety New ways of working, supported by best-in-class technology KERING ESG PRESENTATION -
Slide 71: Parental policy: 14 weeks for all parents
4. ENGAGING IN A MEANINGFUL DIALOGUE WITH OUR 43,000 EMPLOYEES PARENTAL POLICY : 14 WEEKS FOR ALL PARENTS We are not just supporting men and same-sex partners by making it easier for them to take time away from work at this important moment in family life. We believe this is a transformative change
Slide 72: Sharing value with our employees
4. ENGAGING IN A MEANINGFUL DIALOGUE WITH OUR 43,000 EMPLOYEES SHARING VALUE WITH OUR EMPLOYEES LAUNCH OF THE FIRST EMPLOYEE SHARE OWNERSHIP PLAN IN 2022 Purpose • Further increasing a strong sense of belonging among Kering employees by allowing them to become shareholders of the Group at preferenti
Slide 73: Developing a strong sense of belonging and purpose
4. ENGAGING IN A MEANINGFUL DIALOGUE WITH OUR 43,000 EMPLOYEES DEVELOPING A STRONG SENSE OF BELONGING AND PURPOSE Up to 32 paid working hours per employee per year to support local communities Global program 21 paid working hours per employee per year to support local good causes Scope: France, UK a
Slide 74: For impact, sense of belonging and long-term retention
4. ENGAGING IN A MEANINGFUL DIALOGUE WITH OUR 43,000 EMPLOYEES FOR IMPACT, SENSE OF BELONGING AND LONG-TERM RETENTION Live streams Nov 26th, 2021 February 17th 2022 April 6th 2022 26 comments, 3.3k views 196 comments, 2.3k views 118 comments, 3.1k views April 12th 2022 April Apr26th, 14th, 2022 2021
Slide 75: For impact, sense of belonging and long-term retention
4. ENGAGING IN A MEANINGFUL DIALOGUE WITH OUR 43,000 EMPLOYEES FOR IMPACT, SENSE OF BELONGING AND LONG-TERM RETENTION Retaining Employee Engagement Successful employee posts to celebrate International Women’s Day 2022 KERING ESG PRESENTATION - SEPT 2022 75
Slide 76: Transparency and responsibility
4. ENGAGING IN A MEANINGFUL DIALOGUE WITH OUR 43,000 EMPLOYEES TRANSPARENCY AND RESPONSIBILITY A CULTURE OF INTEGRITY: OUR COMPLIANCE AND ETHICS ANNUAL CAMPAIGN KERING ESG PRESENTATION - SEPT 2022 76
Slide 77: A group transformation powered by people and technology
A GROUP TRANSFORMATION POWERED BY PEOPLE AND TECHNOLOGY ADVANCE TALENT BOOST EMPLOYEE BUILD AN AGILE & BUSINESS- ACCELERATE MANAGEMENT ENGAGEMENT DRIVEN GROUP EXCELLENCE IN HR MINDSET & • Clear and constant HR vision BEHAVIORS ROLES • Change via digital tools to review, align and implement new proce
Slide 78: Appendices
APPENDICES
Slide 79: 2025 roadmap – progress report
2025 ROADMAP – PROGRESS REPORT CARE COLLABORATE CREATE SDG 2021 results & main achievements -50% in CO 2 Science-Based Target • CDP Climate and Water A-List • Our carbon intensity reached 23.1 tCO2/€m in gross intensity & use of resources margin w ithin the “planetary boundaries” • 92% of our electr
Slide 80: 2025 roadmap – progress report
2025 ROADMAP – PROGRESS REPORT CARE COLLABORATE CREATE SDG 2021 results & main achievements • 1,500+ experts trained through some 15 craftsmanship Preservation of know -how excellence programs in haute couture and watches and jewelry Improving local community • Reforestation of gold mining sites in
Slide 81: 2025 roadmap – progress report
2025 ROADMAP – PROGRESS REPORT CARE COLLABORATE CREATE SDG 2021 results & main achievements • 42,6% of our purchased leather is metal-free Disruptive innovations • 2nd edition of the Kering Generation Award in China with Plug and Play China dedicated to biodiversity • Definition of Kering's circular
Slide 82: Previous LTI mechanism: KMUs timeline
PREVIOUS LTI MECHANISM KMUS TIMELINE CHAIRMAN AND CEO KMU Value KMU Value KMU Value KMU Value KMU Value KMU Value KMU Value KMU Value KMU Value 06/30/2014: 12/31/2014: 12/31/2015: 12/31/2016: 12/31/2017: 12/31/2018: 12/31/2019: 12/31/2020: 12/31/2021: € 144 € 167 € 166 € 249 € 581 € 753 € 1,168 € 1,
Slide 83: Previous LTI mechanism: KMUs timeline
PREVIOUS LTI MECHANISM KMUS TIMELINE GROUP MANAGING DIRECTOR KMU Value KMU Value KMU Value KMU Value KMU Value KMU Value KMU Value KMU Value 12/31/2014: 12/31/2015: 12/31/2016: 12/31/2017: 12/31/2018: 12/31/2019: 12/31/2020: 12/31/2021: € 167 € 166 € 249 € 581 € 753 € 1,168 € 1,219 € 1,387 2014 2015
Slide 84: New LTI mechanism: awards of performance shares
NEW LTI MECHANISM AWARDS OF PERFORMANCE SHARES IN 2020 AND 2021 2020 Plan 2021 Plan Total number of shares granted, o/w to: 46,596 42,752 François-Henri Pinault, Chairman and CEO 3,760 4,018 Jean-François Palus, Group Managing Director 2,825 2,922 o/w to the top ten employee beneficiaries (not corpo
Slide 85: Share buyback
SHARE BUYBACK APRIL 2022 AGM AUTHORIZATION Maximum purchase price €1,000 Maximum % of share capital 10% Period 18 months Share capital as of March 1st, 2022 125,017,916 Maximum Share Buyback: number 12,469,291 of shares Maximum Share Buyback: amount €12,469,291,000 ▪ Cancellation by the Company of i
Slide 86: Share buyback
SHARE BUYBACK IMPLEMENTATION OF THE STOCK REPURCHASE PROGRAM ANNOUNCED ON AUGUST 25, 2021 Objective: Repurchase up to 2.0% of the share capital over a 24-month period Tranche 1 Tranche 2 Tranche 3 Repurchase period August 25 to November 3, 2021 February 23 to April 6, 2022 May 18 to July 19, 2022 Nu
Slide 87: Authorizations to issue securities giving access to share capital
AUTHORIZATIONS TO ISSUE SECURITIES GIVING ACCESS TO THE SHARE CAPITAL AGM AUTHORIZATIONS Date of Annual General Period of validity Maximum authorized nominal Description of authorization Current use Meeting (resolution no.) (expiry date) amount (in € millions) Share capital increases with pre-emptiv
Slide 88: Yonca Dervisoglu
YONCA DERVISOGLU YONCA DERVISOGLU Independent Director (1) Vice President, Marketing at Google for the Europe/Middle East/Africa region Age: 52 Turkish and British national Yonca Dervisoglu will bring to Kering’s Board of Directors her expertise in the fields of new technologies, digital and marketi
Slide 89: Véronique Weill
VERONIQUE WEILL VERONIQUE WEILL Independent Director (1) Chair of the Board of Directors of CNP Assurances Age: 62 French national Véronique Weill will bring to Kering’s Board of Directors her sound experience in corporate governance Director expertise(2): Véronique Weill has held numerous responsib
Slide 90: Serge Weinberg
SERGE WEINBERG SERGE WEINBERG Independent Director (1) Chairman of Sanofi’s Board of Directors and Chairman of the investment firm Weinberg Capital Partners Age: 71 French national Serge Weinberg will bring to Kering’s Board of Directors his large experience in management as well as his expertise in