2016 First Quarter revenue 21 April 2016 2019 Third Quarter Revenue October 24, 2019
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 27, 2019 which is available on Kering’s website at www.kering.com may cause actual figures to differ materially from projected figures: any unfavourable development affecting consumer spending in the activities of the Group in France and abroad, notably for products and services sold by our Luxury 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 3 rd quarter 2019 revenue. 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. 24.10.2019 2
Q3 2019 REVENUE: CONSOLIDATING GROWTH ACROSS OUR HOUSES GROUP REVENUE LUXURY HOUSES CORPORATE & OTHER €3,885m €3,778m €107m +14.2% reported +13.9% reported +27.4% reported +11.6% comparable* +11.3% comparable* +24.8% comparable* BALANCED PERFORMANCES STEADY TRAJECTORY ALL SEGMENTS CONTRIBUTING (REPORTED IN €M ) (% COM P GROWTH IN Q3) (% QUARTERLY COM P GROWTH) +23 3,885 +96 +25 +60 +279 +18% +12% 3,402 +13% +16% +37% +28% +32% +11% +11% +7% +37% +36% +30% Q3 2018 Gucci Saint Bottega Other Corporate Q3 2019 Bottega Veneta Gucci Saint Laurent Other Houses Q1 Q2 Q3 Laurent Veneta Houses & other 2017 2018 2019 * At constant scope and exchange rates 24.10.2019 4
LUXURY HOUSES Q3 2019 REVENUE: €3,778m +13.9% REPORTED, +11.3% COMPARABLE REVENUE BREAKDOWN BY REGION REVENUE CHANGE BY REGION AND CHANNEL (in €m, and comparable growth in %) (on total Q3 revenue, in %) RoW 5% +17% 3,778 +9% +12% +2% Western Europe 3,318 35% Asia Pacific 33 % Japan North America Q3 2018 FX impact Retail Wholesale Royalties Q3 2019 9% 18% and others SOUND GROWTH STRENGTH OF MULTIBRAND MODEL • FX a 2ppt tailwind • Acclaimed SS’20 Fashion Shows; opening new chapters in • Retail up 12% creativity and brand narrative – APAC strong growth driver despite HK disruption • Ongoing development of growth platforms (online, CRM, AI, – W. Europe and Japan up double digit; contrasted market logistics …) conditions in North America • Number of DOS at end of September: 1,345 – Fast growth of e-commerce (+20%) – 39 net openings during the quarter • Solid wholesale at +9% and good trends in royalties from both Eyewear and Beauty 24.10.2019 5
GUCCI Q3 2019 REVENUE: €2,375m +13.3% REPORTED, +10.7% COMPARABLE REVENUE BREAKDOWN BY REGION REVENUE CHANGE BY REGION AND CHANNEL (in €m, and comparable growth in %) (on total Q3 revenue, in %) RoW 5% Retail (83% of sales): +11% +31% 2,375 +10% +4% +18% Western Europe 32% +9% Asia Pacific -2% +12% 37 % 2,096 North America Q3 2018 Western North Japan Asia RoW Wholesale Royalties Q3 2019 Japan Europe America Pacific and others 18% 8% DELIVERING ON AMBITIONS: HEALTHY DOUBLE- HIGH BRAND DESIRABILITY DIGIT GROWTH • Healthy growth in key product categories • Retail up 11% • Continued improvement of retail metrics: conversion, cross- – Sustained performance in APAC with further redirection selling, UPT • of purchasing trends 52% of stores under new concept at the end of Q3; on track to reach 60% by YE – Solid growth momentum in W . Europe and Japan • Constant innovation flow: – North America in line with Q2 – Strong product line-up and newness injection • Wholesale up 10% – • Communications & client engagement, retail format to Eyewear and Beauty royalties performing strongly further transform & elevate experience 24.10.2019 6
SAINT LAURENT Q3 2019 REVENUE: €507m +13.3% REPORTED, +10.8% COMPARABLE REVENUE BREAKDOWN BY REGION REVENUE CHANGE BY REGION AND CHANNEL (in €m, and comparable growth in %) (on total Q3 revenue, in %) RoW 6% Retail (64% of sales): +11% +20% 507 +8% +1% +8% Asia Pacific +17% Western Europe +21% 25 % 38% +9% 447 Japan 8% Q3 2018 Western North Japan Asia RoW Wholesale Royalties Q3 2019 Europe America Pacific and others North America 23% DOUBLE-DIGIT GROWTH CONTINUES LARGE UNTAPPED POTENTIAL • Retail up 11% • Highly distinctive brand equity carefully nurtured through – W . Europe continuing to perform well; North America and spectacular Fashion Shows, iconic products and Japan growing sharply. silhouettes – APAC impacted by HK situation and lower penetration in • Significant growth headroom by categories & markets Mainland China – E-comm growth accelerating – Network expansion to enhance penetration and visibility • (flagship openings in M.China, Italy …; travel retail) Wholesale up 8% 24.10.2019 7
BOTTEGA VENETA Q3 2019 REVENUE: €284m +9.8% REPORTED, +6.9% COMPARABLE REVENUE BREAKDOWN BY REGION REVENUE CHANGE BY REGION AND CHANNEL (in €m, and comparable growth in %) (on total Q3 revenue, in %) RoW 6% Retail (83% of sales): +8% +4% +2% 284 Western Europe +54% +1% 31% +4% +17% +10% Asia Pacific 259 34 % North America 13% Q3 2018 Western North Japan Asia RoW Wholesale Royalties Q3 2019 Japan Europe America Pacific and others 16% MOMENTUM BUILDING UP NEXT STEPS • • SS’20 Fashion Show confirming success of new fashion - Very encouraging retail at +8% – centric approach Great success of new product introductions in all W omen categories: Handbags, RTW and Shoes • Gradual shift of product assortment towards newness; actions – Exceptional response from existing and new customers in W .Europe and North America in place to handle higher volume and innovative designs – APAC affected by HK+Macau exposure • Acceleration of marketing & communications investments, – Ongoing ramp-up of new collections amplified by social media halo 24.10.2019 8
OTHER HOUSES Q3 2019 REVENUE: €612m +18.6% REPORTED, +16.3% COMPARABLE REVENUE BREAKDOWN BY REGION REVENUE CHANGE BY REGION AND CHANNEL (in €m, and comparable growth in %) (on total Q3 revenue, in %) RoW 6% +8% 612 +24% -3% 516 Asia Pacific 22% Western Europe 46% Japan 11% Q3 2018 Retail Wholesale Royalties and others Q3 2019 North America 15% COUTURE & LEATHER GOODS JEWELRY & WATCHES • Jewelry • Excellent retail performance – Strong quarter at Boucheron – Driven by strong momentum at Balenciaga and Alexander – Further solid performances at Pomellato/DoDo McQueen – Strong Qeelin momentum continues in Mainland China • Watches – Ongoing selective network expansion and relocations, – Challenging market conditions but encouraging trends at together with retailization (conversion) UN, driven by novelties (Freak X, Skeleton X). Emphasis • on sell-out and distribution (3 DOS openings since H1) Brioni impacted by retail network rationalization in 2018 and – Implementation of synergies well on track earlier this year 24.10.2019 9
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