Slide 1: 2021 Full-Year Results
2021 FULL-YEAR RESULTS FEBRUARY 17, 2022
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: Building on strong foundations
BUILDING ON STRONG FOUNDATIONS ▪ EXCEL L ENT 2 0 2 1 P E R F O R MAN C E S ACROSS ALL HOUSES ▪ S U S TA I N E D I N V E S T M E N T ▪ TA L E N T E D T E A M S S H A R I N G G O A L S A N D C U LT U R E ▪ FIRM COMMITMENT T O S U S TA I N A B I L I T Y A N D P U R P O S E 17.02.2022 4
Slide 5: Crafting tomorrow's luxury
CRAFTING TOMORROW’S LUXURY ▪ W E C A R E , W E C O L L A B O R AT E , W E C R E AT E ▪ K E Y 2 0 2 1 AC H I E V E M E N TS ▪ FIRST INCLUSION INDEX ▪ ENHANCING GENDER PARITY AT ALL LEVELS ▪ CLIMATE CHANGE: SBT 1.5° ▪ BIODIVERSITY: REGENERATIVE FUND FOR NATURE (7 FIRST PROJECTS / >840,000 HA) ▪ NEW CI
Slide 6: Blending creativity and iconicity
BLENDING CREATIVITY AND ICONICITY ▪ NURTURING DEEP-ROOTED CODES OF OUR HOUSES A N D T H E I R C A PA C I T Y T O D I S R U P T ▪ E X PA N D I N G THEIR BRAND TERRITORIES ▪ DEPLOYING I M PA C T F U L C O M M U N I C AT I O N S T R AT E G I E S 17.02.2022 6
Slide 7: Reinforcing the exclusivity of our distribution
REINFORCING THE EXCLUSIVITY OF OUR DISTRIBUTION ▪ REDUCING THE W EIGHT OF W HOLESALE FOR OUR LARGER HOUSES ▪ I M P L E M E N T I N G O U R S T R AT E G I C V I S I O N O F R E TA I L ▪ ONLINE FOCUS O N B R A N D . C O M A N D T I G H T LY C O N T R O L L E D E-CONCESSIONS 17.02.2022 7
Slide 8: Innovation at our core
INNOVATION AT OUR CORE ▪ EXPLORING NEW BUSINESS MODELS ▪ R E S E AR C H I N G N E W M AT E R I A L S ▪ DEVELOPING NEW MODES OF ENGAGEMENT ▪ S TAT E - O F - T H E - A R T SUPPORT FUNCT IONS 17.02.2022 8
Slide 9: Straightforward strategy
STRAIGHTFORWARD STRATEGY ▪ STRENGTHENING BRAND EQUITY ▪ AT T R A C T I N G A N D R E TA I N I N G N E W G E N E R AT I O N S O F L U X U R Y CONSUMERS ▪ FOCUSING O N W H E R E W E B U I L D T H E M O S T VA L U E 17.02.2022 9
Slide 10: In top shape for 2022 & beyond
IN TOP SHAPE FOR 2022 & BEYOND AS FRESH AS EVER AFTER GAINING TRACTION ACROSS 100 YEARS CATEGORIES EXCEPTIONAL GROW TH PATH CONFIRMING PROGRESS BOUCHERON EXPANDING ACROSS REGIONS, QEELIN CONFIRMED POTENTIAL JEWELRY EXPLOSIVE GROW TH, POM ELLATO NEXT IN LINE GAINING IN DISTINCTIVENESS A MAJOR PLAYER
Slide 11: Analysis of results
ANALYSIS OF RESULTS J EA N- MARC DUPLAI X GROUP CHIEF FINANCIAL OFFICER
Slide 12: Accelerating topline
ACCELERATING TOPLINE GROUP REVENUE +13% comp. 2Y stack €17,645m Japan Asia Pacific +35% reported and comparable* YoY 17,645 6% (+21%) 38% (+33%) 15,884 o/w Q4 +32% comparable YoY RoW 13,100 7% (+48%) LUXURY HOUSES 9 598 H2 8 246 North America Western Europe €17,019m 7 722 26% (+76%) 23% (+10%) CORPO
Slide 13: High-quality performance
HIGH-QUALITY PERFORMANCE +60% -34% 4,778 5,017 GROUP RECURRING • EBIT at all-time high OPERATING INCOME (€m) 3,135 • Operating leverage together with €5,017m 30.1% 28.4% substantial investment level +60% reported vs. LY 23.9% • Solid margin expansion trajectory, EBIT margin up 450bp YoY FY19 FY20 FY
Slide 14: Luxury Houses: strong end to the year
LUXURY HOUSES: STRONG END TO THE YEAR FY 2021 REVENUE BY CHANNEL RETAIL RETAIL – YoY COMPARABLE RETAIL – 2Y STACK COMPARABLE (COMPARABLE) +98% FY 2021 +40% YoY +39% +34% 81% +18% 2Y stack +32% +16% +12% +11% +6% Q1 21 Q2 21 Q3 21 Q4 21 Q1 21 Q2 21 Q3 21 Q4 21 WHOLESALE ROYALTIES & OTHER 19% WHOLESAL
Slide 15: Sound recovery across regions
SOUND RECOVERY ACROSS REGIONS FY 2021 RETAIL BY REGION COMPARABLE GROWTH 2Y STACK GROWTH Q1 21 Q2 21 Q3 21 Q4 21 Q1 21 Q2 21 Q3 21 Q4 21 +71% +59% +15% WESTERN EUROPE -34% -4% -32% -43% -41% +263% +86% +83% +82% +37% +46% +63% +31% NORTH AMERICA +93% +33% +19% +3% JAPAN -3% -20% -21% -30% 17.02.2022
Slide 16: Sound recovery across regions
SOUND RECOVERY ACROSS REGIONS FY 2021 RETAIL BY REGION COMPARABLE GROWTH 2Y STACK GROWTH Q1 21 Q2 21 Q3 21 Q4 21 Q1 21 Q2 21 Q3 21 Q4 21 +36% +37% +83% +30% +53% +19% +18% +1% ASIA PACIFIC +322% +57% +44% +36% +48% +13% +24% +24% ROW 17.02.2022 16
Slide 17: E-commerce revenue exceeding €2bn
E-COMMERCE REVENUE EXCEEDING €2BN FY 2021 E-COMMERCE FY21 E-COMMERCE REVENUE +55% COMPARABLE YOY PENETRATION MORE THAN DOUBLED IN 2 YEARS COMPARABLE QUARTERLY GROWTH E-COMMERCE REVENUE AS % OF RETAIL SALES 26% +172% 15% +162% 23% +153% 13% +148% 5% +108% Japan W. N. Europe 7% 7% America +59% +52% AP
Slide 18: Healthy margin recovery
HEALTHY MARGIN RECOVERY FY EBIT (in €m) FY EBIT MARGIN 2019 2020 2021 2019 2020 2021 5 042 5 175 32,8% 3 367 LUXURY HOUSES 30,4% 26,6% 3 947 3 715 41,0% 2 615 38,2% 35,1% 715 27,4% 28,3% 562 400 22,9% 286 18,4% 19,1% 215 172 14,2% 459 14,1% 318 12,5% OTHER HOUSES 180 7,9% 17.02.2022 18
Slide 19: Strengthened fundamentals
U U = O STRENGTHENED FUNDAMENTALS
Slide 20: Gucci FY21 revenue
FY21 REVENUE: +31% REPORTED AND COMPARABLE (in €m, and YoY comparable growth in %) 9,628 +37% +35% 9,731 -10% 7,441 FY 2019 FY 2020 Retail Wholesale Royalties FY 2021 and 91% of FY21 sales others • MOMENTUM BUILDING IN Q4: RETAIL 2Y STACK +25% – Sequential acceleration across regions – Rich product
Slide 21: Gucci key figures
KEY FIGURES In €m FY 2021 FY 2020 Change Revenue 9,731 7,441 +30.8% Recurring operating income 3,715 2,615 +42.1% Margin (%) 38.2% 35.1% +3.1pt Gross CAPEX 324 206 +57.3% As % of revenue 3.3% 2.8% +0.5pt • STRATEGIC INVESTMENT UP, REBOUND IN PROFITABILITY – FY21 EBIT m argin exceeding 38% – Intensif
Slide 22: Consistently delivering new highs
C O N S I S T E N T LY DELIVERING NEW HIGHS
Slide 23: Saint Laurent FY21 revenue
FY21 REVENUE: +45% REPORTED, +46% COMPARABLE (in €m, and YoY comparable growth in %) +23% +27% 2,521 +55% 2,049 1,744 FY 2019 FY 2020 Retail Wholesale Royalties FY 2021 74% of and FY21 sales others • CONTINUED ACCELERATION IN Q4: RETAIL 2Y STACK +61% – Outstanding perform ance of N. Am erica, up tri
Slide 24: Saint Laurent key figures
KEY FIGURES In €m FY 2021 FY 2020 Change Revenue 2,521 1,744 +44.5% Recurring operating income 715 400 +78.7% Margin (%) 28.3% 22.9% +5.4pt Gross CAPEX 72 53 +36.2% As % of revenue 2.8% 3.0% -0.2pt • OPERATING MARGIN AT ALL-TIME HIGH – Continuing investm ent in global footprint and visibility • CAPE
Slide 25: Bottega Veneta: New milestones
BOTTEGA VENETA NEW MILESTONES
Slide 26: Bottega Veneta FY21 revenue
FY21 REVENUE: +24% REPORTED, +25% COMPARABLE (in €m, and YoY comparable growth in %) +16% +21% 1,503 +29% 1,210 1,168 FY 2019 FY 2020 Retail Wholesale Royalties FY 2021 75% of and FY21 sales others • FY21 SALES PASSING €1.5BN MARK; +32% COMP ABOVE 2019 – Retail strength on stable network and full -p
Slide 27: Bottega Veneta key figures
KEY FIGURES In €m FY 2021 FY 2020 Change Revenue 1,503 1,210 +24.2% Recurring operating income 286 172 +66.6% Margin (%) 19.1% 14.2% +4.9pt Gross CAPEX 67 48 +38.4% As % of revenue 4.5% 4.0% +0.5pt • RESUMING MARGIN EXPANSION – Significant operating leverage m aterializing – Benefits from scale and
Slide 28: Other Houses
OTHER HOUSES REALIZING HIGH-GROWTH POTENTIAL
Slide 29: Other Houses FY21 revenue
OTHER HOUSES FY21 REVENUE: +43% REPORTED, +44% COMPARABLE (in €m, and YoY comparable growth in %) +40% +65% 3,264 +46% 2,538 2,282 FY 2019 FY 2020 Retail Wholesale Royalties FY 2021 59% of and others FY21 sales • €1BN ADDITIONAL SALES IN FY21 – Rem arkable Retail perform ance +40% com parable 2Y sta
Slide 30: Other Houses key figures
OTHER HOUSES KEY FIGURES In €m FY 2021 FY 2020 Change Revenue 3,264 2,282 +43.1% Recurring operating income 459 180 +154.5% Margin (%) 14.1% 7.9% +6.2pt Gross CAPEX 180 154 +17.1% As % of revenue 5.5% 6.7% -1.2pt • FY21 EBIT 2.5X HIGHER – Rem arkable operating leverage reaching 3.6x – Sharp m argin
Slide 31: Kering Eyewear, Corporate
KERING EYEWEAR C O R P O R AT E
Slide 32: Focus on Kering Eyewear
FOCUS ON KERING EYEWEAR FY21 REVENUE: +50% REPORTED, +45% COMPARABLE (in €m, and YoY comparable growth in %) +45% +5% 107 706 599 399 FY20 KEYE Comparable Scope & FX FY21 KEYE Royalties FY21 KEYE consolidated consolidated and external revenue revenue intragroup sales • Sharp recovery from pandemic a
Slide 33: Corporate & Other
CORPORATE & OTHER KEY FIGURES In €m FY 2021 FY 2020 Revenue 626 423 KEYE consolidated revenue 599 399 Other revenue 27 24 Recurring operating income (158) (232) Underlying result (132) (185) Corporate Long-term incentive plan (26) (47) Gross CAPEX 291 326 • Sharp increase in Kering Eyewear contribut
Slide 34: Financial performance
FINANCIAL PERFORMANCE In €m FY 2021 FY 2020 Revenue 17,645 13,100 Gross margin 13,068 9,509 Recurring operating income 5,017 3,135 Other non-recurring operating income and expenses (220) 163 Financial result (273) (341) Income tax expense (1,280) (759) Share in earnings of equity-accounted companies
Slide 35: Free cash flow from operations
FREE CASH FLOW FROM OPERATIONS In €m FY 2021 FY 2020 Cash flow before taxes, dividends and interests 6,387 4,280 Change in working capital requirement (38) 45 Income tax paid (1,473) (1,436) Net cash flow from operating activities 4,876 2,889 Acquisition of fixed operating assets, net (928) (784) Fr
Slide 36: Capital employed and operating working capital
CAPITAL EMPLOYED AND OPERATING WORKING CAPITAL SHAREHOLDERS’ NET DEBT-TO-EQUITY CAPITAL EQUITY DEBT RATIO EMPLOYED €13,736M €168M 1.2% €13,904M OPERATING INVENTORIES RECEIVABLES PAYABLES WORKING CAP €2,604M €3,369M €977M €1,742M 14.8%* * N.B. (1) Calculated on LTM group revenue (2) Calculation based
Slide 37: Change in net financial debt
CHANGE IN NET FINANCIAL DEBT FY 2021 NET DEBT BRIDGE In €m and Net Debt / EBITDA ratio* 2 149 0.5x 882 247 168 538 -803 1,025 78 0.1x -3,948 Net debt at FCF from operations Dividend paid Net interest Acquisition Lease Disposal of Net financial Net debt at Dec. 31, 2020 paid and of Kering repayment a
Slide 38: Dividend up 50%
DIVIDEND UP 50% DIVIDEND PER SHARE 12.00* 10.50 8.00 8.00 6.00 2017 2018 2019 2020 2021 *Proposed to April 28, 2022 AGM €3.50 per share interim dividend paid on January 17, 2022 €8.50 per share balance to be paid on May 5, 2022 DIVIDEND PAYOUT 96.4% 47.0% 47.8% 45.2% 50.7% 44.5% 50.0% 40.1% 37.3% 31
Slide 39: Jean-François Palus, Group Managing Director
JEAN-FRANÇOIS PALUS GROUP MANAGING DIRECTOR
Slide 40: Conclusion
CONCLUSION ▪ FOCUS ON THE EXECUTION OF OUR STRATEGY ▪ CONTINUED INVESTMENT IN OUR HOUSES AND PLATFORMS ▪ NURTURING OUR CULTURE OF INNOVATION, CREATIVITY AND CARING ▪ PROFITABLE GROWTH TRAJECTORY ▪ HEALTHY FINANCIAL SITUATION ▪ FURTHER POTENTIAL & OPPORTUNITIES 17.02.2022 40
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Slide 42: Appendix
APPENDIX
Slide 43: Crafting tomorrow's luxury: sustainability commitments in 2021
CRAFTING TOMORROW’S LUXURY: PROGRESSING ON OUR SUSTAINABILITY COMMITMENTS IN 2021 • 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 th
Slide 44: Revenue
REVENUE In €m Reported change FY 2021 FY 2020 €m % Gucci 9,730.9 7,440.6 +2,290.3 +30.8% Saint Laurent 2,521.0 1,744.4 +776.6 +44.5% Bottega Veneta 1,502.8 1,210.3 +292.5 +24.2% Other Houses 3,264.7 2,281.3 +983.4 +43.1% Luxury – Total Houses 17,019.4 12,676.6 +4,342.8 +34.3% Corporate & Other 625.8
Slide 45: Luxury Houses
LUXURY HOUSES FY 2021 REVENUE €17,019m +34.3% REPORTED, +34.9% COMPARABLE NUMBER OF DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION 750 YE 2020: 1,433 YE 2021: 1,565 663 RoW 6% Western Europe 22% Asia Pacific 313 331 39% 229 251 228 233 Japan North America 6% 27% W. Europe N. America Japan Emer
Slide 46: Gucci FY 2021 revenue
FY 2021 REVENUE €9,731m +30.8% REPORTED, +31.2% COMPARABLE NUMBER OF DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION YE 2020: 483 YE 2021: 501 RoW 212 226 6% Western Europe 17% Asia Pacific 105 107 44% 99 97 67 71 Japan North America 6% 27% W. Europe N. America Japan Emerging markets QUARTERLY
Slide 47: Saint Laurent FY 2021 revenue
FY 2021 REVENUE €2,521m +44.5% REPORTED, +45.6% COMPARABLE NUMBER OF DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION YE 2020: 239 YE 2021: 268 RoW 6% Western Europe 128 113 27% Asia Pacific 28% 47 52 47 55 Japan 32 33 5% North America 34% W. Europe N. America Japan Emerging markets QUARTERLY PE
Slide 48: Bottega Veneta FY 2021 revenue
FY 2021 REVENUE €1,503m +24.2% REPORTED, +25.1% COMPARABLE NUMBER OF DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION YE 2020: 261 YE 2021: 263 RoW 9% Western Europe 122 125 24% Asia Pacific 39% 54 53 50 49 35 36 Japan North America 10% 18% W. Europe N. America Japan Emerging markets QUARTERLY P
Slide 49: Other Houses
OTHER HOUSES FY 2021 REVENUE €3,264m +43.1% REPORTED, +43.8% COMPARABLE NUMBER OF DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION YE 2020: 450 YE 2021: 533 RoW 271 8% Western Europe 216 33% Asia Pacific 31% 107 119 79 80 48 63 Japan North America 6% 22% W. Europe N. America Japan Emerging marke
Slide 50: Recurring operating income
RECURRING OPERATING INCOME In €m FY 2021 FY 2020 Reported change % Gucci 3,714.6 2,614.5 +42.1% Saint Laurent 714.6 400.0 +78.7% Bottega Veneta 286.5 172.0 +66.6% Other Houses 459.6 180.6 +154.5% Luxury – Total Houses 5,175.3 3,367.1 +53.7% Corporate & Other (158.1) (231.9) +31.8% Kering 5,017.2 3,1
Slide 51: EBITDA
EBITDA In €m FY 2021 FY 2020 Reported change % Gucci 4,310.6 3,224.9 +33.7% Saint Laurent 914.5 589.9 +55.0% Bottega Veneta 448.9 333.6 +34.6% Other Houses 734.9 457.2 +60.7% Luxury – Total Houses 6,408.9 4,605.6 +39.2% Corporate & Other 61.5 (31.4) +295.9% Kering 6,470.4 4,574.2 +41.5% 17.02.2022 5
Slide 52: Net financial costs and income tax
NET FINANCIAL COSTS AND INCOME TAX In €m FY 2021 FY 2020 Cost of net debt (38.2) (43.3) Other financial income and expenses (128.9) (185.5) Total financial result (excluding leases) (167.1) (228.8) Interest expense on lease liabilities (106.1) (112.9) Financial result (273.2) (341.7) FY 2021 FY 2020
Slide 53: Balance sheet
BALANCE SHEET In €m Dec. 31, 2021 Dec. 31, 2020 Goodwill, brands and intangible Assets 9,923 9,438 Lease right-of-use Assets 4,302 3,957 Property, plant and equipment 2,967 2,670 Net other Non-current Assets (Liabilities) 793 1,170 Non-current lease Liabilities (3,826) (3,546) Total Net Non-current
Slide 54: Kering brands
Gucci • Saint Laurent • Bottega Veneta • Balenciaga • Alexander McQueen • Brioni Boucheron • Pomellato • Dodo • Qeelin • Ulysse Nardin • Girard -Perregaux Kering Eyewear
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