Slide 1: 2022 Full-Year Results
2022 FULL-YEAR RESULTS FEBRUARY 15, 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: François-Henri Pinault, Chairman & CEO
FRANÇOIS-HENRI PINAULT CHAI RMAN & CEO
Slide 4: 2022 Overview
2022 OVERVIEW ▪ A Y E AR O F M I L E S TO N E S … ▪ … B U T S H O R T O F O U R AM B I TI O N S AN D P O TE N TI AL ▪ R I G H T S T R AT E G Y, S T R O N G C U LT U R E INVESTMENT AND STEWARDSHIP NURT URING DESIRABILITY ▪ BUILDING EQUITY FOR THE LONG TERM 15.02.2023 4
Slide 5: Spotlight on Gucci
SPOTLIGHT ON GUCCI ▪ STRENGTHENING T H E H O U S E ’ S F U N D A M E N TA L S ▪ C O N T I N U O U S E L E VAT I O N OF BRAND IMAGE, PRODUCT OFFERING, CLIENT EXPERIENCE AND DISTRIBUTION ▪ R E I N F O R C E D O R G A N I Z AT I O N ▪ L E V E R AG I N G G U C C I ’ S S TAT U R E A N D U N I Q U E H E R
Slide 6: All Other Houses: Solid Foundations, Strong Authority
ALL OTHER HOUSES: SOLID FOUNDATIONS, STRONG AUTHORITY ▪ S AI N T L AU R E N T D E L I V E R I N G O N I T S AMBITIONS ▪ B O T T E G A V E N E TA F U R T H E R R A I S I N G I T S U LT R A - H I G H - E N D P O S I T I O N I N G ▪ PROMOTING THE DEVELOPMENT OF OTHER HOUSES ▪ K E R I N G E Y E W E A R
Slide 7: Crafting Tomorrow's Luxury
CRAFTING TOMORROW’S LUXURY ▪ A Y E AR O F B R E AK TH R O U G H S FURTHER EP&L PROGRESS EMPLOYEE SHAREHOLDING PLAN A DECADE OF RECOGNITION BY DJSI CLIMATE FUND FOR NATURE ▪ M O V I N G T O WA R D S A B S O L U T E R E D U C T I O N IN CARBON EMISSIONS ▪ W O R K I N G I N C O A L I T I O N T O C O M
Slide 8: Analysis of Results
ANALYSIS OF RESULTS J EA N- MARC DUPLAI X GROUP CHIEF FINANCIAL OFFICER
Slide 9: 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 10: 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 15.02.2023 10
Slide 11: 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 12: 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 13: A Year of Contrasts
A YEAR OF CONTRASTS FY 2022 RETAIL BY REGION COMPARABLE GROWTH YOY COMPARABLE GROWTH VS. 2019 Q1 22 Q2 22 Q3 22 Q4 22 Q1 22 Q2 22 Q3 22 Q4 22 +94% +75% +74% +14% +18% +16% +11% WESTERN EUROPE -1% FY +56% +94% +100% +85% +42% +55% +8% +1% NORTH AMERICA FY +4% -15% +45% +38% +31% +20% +14% +1% +3% JAP
Slide 14: A Year of Contrasts
A YEAR OF CONTRASTS FY 2022 RETAIL BY REGION COMPARABLE GROWTH YOY COMPARABLE GROWTH VS. 2019 Q1 22 Q2 22 Q3 22 Q4 22 Q1 22 Q2 22 Q3 22 Q4 22 +31% +28% +15% +10% +7% +0% ASIA PACIFIC -15% -19% FY -7% +67% +67% +62% +56% +46% +24% +17% 0% ROW FY +18% 15.02.2023 14
Slide 15: Building Strength in a Challenging Year
BUILDING STRENGTH IN A CHALLENGING YEAR
Slide 16: 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 17: 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 18: Saint Laurent: Delivering on Ambitions
SAINT LAURENT DELIVERING ON AMBITIONS
Slide 19: 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 20: 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 21: A Milestone Year
< _ LL] Z Lt] > < O LL] — — © aa! A MILESTONE YEAR
Slide 22: 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 23: 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 24: Other Houses: Fostering Growth
OTHER HOUSES FOSTERING GROWTH
Slide 25: 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 26: 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 27: Kering Eyewear / Corporate
KERING EYEWEAR C O R P O R AT E
Slide 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 *Proposed to April 27, 2023 AGM €4.50 per share interim dividend paid on January 18, 2023 €9.50 per share balance to be paid on May 4, 2023 DIVIDEND PAYOUT 96.4% 82.1% 47.0% 47.8% 45.2% 50.7% 44.5% 50.0%
Slide 34: Conclusion
CONCLUSION
Slide 35: Q&A
Q&A
Slide 36: Appendix
APPENDIX
Slide 37: Crafting Tomorrow's Luxury: Progressing on Sustainability Commitments in 2022
CRAFTING TOMORROW’S LUXURY: PROGRESSING ON OUR SUSTAINABILITY COMMITMENTS IN 2022 • 50% reduction in our environm ental footprint (2015 -2022 EP&L intensity) • 100% renew able electricity (aligned with RE100 guidelines) • 95% traceability for our key raw m aterials CARE • Creation of the Climate Fun
Slide 38: External Recognition of Our ESG Performance
EXTERNAL RECOGNITION OF OUR ESG PERFORMANCE KERING IS THE ONLY LUXURY COMPANY SYSTEMATICALLY INCLUDED IN ALL MAIN ESG RATINGS AND RANKINGS 2022 2022 2022 Dow Jones Sustainability Indices MSCI ESG Rating CDP included in DJSI World & Europe since 2013 84/100 S&P Global Ratings AAA CDP Climate A list (
Slide 39: Q4 and FY 2022 Group Revenue
Q4 AND FY 2022 GROUP REVENUE REVENUE BREAKDOWN BY SEGMENT % YoY change In €m Q4 Change (%) FY Change (%) Q4 22 Q4 21 Reported Comp. FY 22 FY 21 Reported Comp. Gucci 2,733 3,070 (11%) (14%) 10,487 9,731 +8% +1% Saint Laurent 903 823 +10% +4% 3,300 2,521 +31% +23% Bottega Veneta 469 432 +8% +6% 1,740
Slide 40: Gucci FY 22 Revenue and Quarterly Performance
FY 22 REVENUE €10,487M +8% REPORTED, +1% COMPARABLE DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION As of December 31, 22 (net change vs. YE 21) RoW Western Europe RoW 7% Western Europe 64 (+10 net) 103 (-4 net) 22% Asia Pacific Asia Pacific 528 North America 36% 181 (+9 net) 107 (+10 net) Japa
Slide 41: Saint Laurent FY 22 Revenue and Quarterly Performance
FY 22 REVENUE €3,300M +31% REPORTED, +23% COMPARABLE DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION As of December 31, 22 (net change vs. YE 21) RoW RoW Western Europe 7% Western Europe 23 (+1 net) 57 (+5 net) 31% Asia Pacific Asia Pacific 280 25% 109 (+3 net) North America Japan North America
Slide 42: Bottega Veneta FY 22 Revenue and Quarterly Performance
FY 22 REVENUE €1,740M +16% REPORTED, +11% COMPARABLE DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION As of December 31, 22 (net change vs. YE 21) RoW Western Europe RoW 6% Western Europe 20 (+4 net) 55 (+2 net) 27% Asia Pacific Asia Pacific North America 271 34% 110 (+1 net) 39 (+3 net) Japan J
Slide 43: Other Houses
OTHER HOUSES FY 22 REVENUE €3,874M +18% REPORTED, +16% COMPARABLE DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION As of December 31, 22 (net change vs. YE 21) RoW Western Europe RoW 7% Western Europe 30 (+2 net) 128 (+10 net) 35% Asia Pacific Asia Pacific 580 North America 30% 262 (+24 net) 75
Slide 44: 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% 15.02.2023 44
Slide 45: 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% 15.02.2023 45
Slide 46: 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 47: 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 15.02.2023 47
Slide 48: 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 49: Kering Houses
Gucci • Saint Laurent • Bottega Veneta • Balenciaga • Alexander McQueen • Brioni Boucheron • Pomellato • Dodo • Qeelin Kering Eyewear Photo credits: page 3: Men’s Fashion Show – Photographer: Cosimo Sereni / page 15: Jackie 1961 Campaign - Art Director: Christopher Simmonds - Photographer & Director
Slide 50: a Cuusg olin
a Cuusg olin