2016 First Quarter revenue. 21 April 2016

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1 2016 First Quarter revenue 21 April First Quarter revenue 25 April 2017

2 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 30th, 2017 which is available on Kering s website at 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 the Luxury Goods and Sport & Lifestyle 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 1 st quarter 2017 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. 2

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4 Q REVENUE: RECORD-BREAKING GROWTH GROUP LUXURY SPORT & LIFESTYLE CORPORATE & OTHERS 3,574 M +31.2% reported +28.6% comparable* 2,417 M +34.0% reported +31.6% comparable* 1,064 M +16.5% reported +14.0% comparable* 92 M including Kering Eyewear contribution SHARP SEQUENTIAL ACCELERATION 25% Record quarter on an easy comp base (Group comparable revenue growth) 15% 5% -5% Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 MAJOR IMPROVEMENT ACROSS ALL GEOGRAPHIES Breakdown by region (% of Q1 Group revenue and comparable growth) Asia Pacific 29% (+42%) 10% (+19%) 8% (+1%) Western Europe 32% (+34%) North America 21% (+25%) * : at constant scope and exchange rates, Kering Eyewear included. 4

5 LUXURY ACTIVITIES Q revenue: 2,417 M +34.0% reported; +31.6% comparable REVENUE CHANGE BY REGION AND CHANNEL (in m, and comparable growth in %) REVENUE BREAKDOWN BY REGION (on total Q1 revenue, in %) +37% +20% +9% 2,417 7% 1,804 +2% Western Europe 32% Asia Pacific 33% Q FX impact Retail Wholesale Royalties and others Q % North America 18% INDUSTRY-LEADING PERFORMANCE Acceleration across all regions and channels Retail up strong double digit (+37%) Western Europe and APAC leading with high growth rates, up 50% and 47% respectively North America posting a very strong performance, improving modestly e-commerce revenue up 60% Wholesale up 20%, with some catch-up in deliveries at Gucci and YSL STRONG EXECUTION LEVERAGING FAVORABLE MARKET CONDITIONS Focus on organic growth and market share gains paying off, driven by: brand attractiveness and customer engagement healthy geographic footprint and ability to take advantage of rebound in tourism and local consumption Number of DOS at end of March: 1, net openings during the quarter 5

6 GUCCI Q revenue: 1,354 M +51.4% reported; +48.3% comparable REVENUE CHANGE BY REGION AND CHANNEL (in m, and comparable growth in %) Retail (84% of sales): +51% REVENUE BREAKDOWN BY REGION (on total Q1 revenue, in %) 6% +63% +34% +37% -1% 1,354 Western Europe 28% % +46% +11% Asia Pacific 38% North America 19% Q Western Europe North America Asia Pacific Wholesale Royalties and others Q % EXCEPTIONAL PERFORMANCE ACROSS THE BOARD Retail up 51% driven by LfL and full-price sales all categories up strong double digit outstanding growth in Western Europe driven by both locals and tourists; very strong momentum in all APAC countries, starting with Mainland China; confirmed strength in North America; back to double-digit growth thanks to dedicated, efficient initiatives online sales up 86%, driven by North America and Western Europe Wholesale: unfading enthusiastic response to the collections NURTURING GROWTH Effective client engagement Growth in all clientele segments (new, retained, regained) Expansion of new store concept and retail excellence program Innovative marketing and communications first unified Fashion Show, narrative ad campaigns, cross-culture collaborations Number of DOS at end of March: 517 6

7 BOTTEGA VENETA Q revenue: 280 M +4.7% reported; +2.3% comparable REVENUE CHANGE BY REGION AND CHANNEL (in m, and comparable growth in %) Retail (83% of sales): +4% REVENUE BREAKDOWN BY REGION (on total Q1 revenue, in %) 6% % -8% -6% +6% +11% -3% -22% 280 Asia Pacific 43% Western Europe 24% North America 11% Q Western Europe North America Asia Pacific Wholesale Royalties and others Q % IMPROVING TRENDS Retail back to positive performance (+4%), driven by Western Europe and APAC Western Europe: rebound driven by France and the UK, with growth evenly balanced between locals and tourists; APAC turns positive, strong momentum in Mainland China and Macau, some improvement in HK US and still challenging but trend gradually more favorable Wholesale decrease moderating strategy of containing markdowns and reinforcing exclusive brand positioning under way ACTION PLANS RAMPING UP Local clientele up in all regions excl., with sales growth driven by both new and existing clients Appetite for novelties and product innovation confirmed improving sell-through on new models and seasonal items from the Cruise Collection Strong positive trends in Shoes, especially Women Store layout adaptation ongoing Number of DOS at end of March: 257 7

8 SAINT LAURENT Q revenue: 364 M +35.4% reported; +33.4% comparable REVENUE CHANGE BY REGION AND CHANNEL (in m, and comparable growth in %) REVENUE BREAKDOWN BY REGION (on total Q1 revenue, in %) % Retail (66% of sales): +31% +48% +18% -4% +16% +35% +48% 364 Asia Pacific 27% 7% Western Europe 37% Q Western Europe North America Asia Pacific Wholesale Royalties and others Q % North America 21% ANOTHER STRONG QUARTER Well-balanced growth by distribution channels double-digit retail increases in all regions excl. (challenging comp base due to Omotesando flagship opening) wholesale strong momentum on deliveries of Anthony Vaccarello s first collection Sustained e-commerce performance driven by the largest markets, i.e. Western Europe and North America SUCCESSFUL NEW DEVELOPMENTS Great reception for Summer 17 collection, Anthony Vaccarello s first, available in stores since January; new best-sellers, notably in Women s Shoes and Ready-to-Wear Strong appreciation of the Winter Fashion Show on February 28, confirming success of creative transition Number of DOS at end of March: 166 8

9 OTHER LUXURY BRANDS Q revenue: 418 M +12.3% reported; +11.1% comparable REVENUE CHANGE BY REGION AND CHANNEL (in m, and comparable growth in %) REVENUE BREAKDOWN BY REGION (on total Q1 revenue, in %) +18% +8% -7% 418 9% 372 Asia Pacific 19% Western Europe 45% Q Retail Wholesale Royalties and others Q % North America 17% COUTURE & LEATHER GOODS UP DOUBLE DIGIT (+11%) Growth across all distribution channels Strong retail performance led by Western Europe and APAC momentum accelerating sharply at Balenciaga, up in all regions and product categories, reflecting strong appreciation of Demna Gvasalia s collections Brioni back to positive trends JEWELLERY & WATCHES AS WELL (+13%) Good performance of Boucheron and Pomellato solid trends supported by new collections, extension of iconic lines, impactful communications campaigns Improving trends in Watches enhanced visibility of Girard-Perregaux and Ulysse Nardin at SIHH launch of new collections and models: Laureato (GP), Marine Tourbillon Grand Feu and Regatta Chronograph (UN) Number of DOS at end of March: 376 9

10 SPORT & LIFESTYLE ACTIVITIES Q revenue: 1,064 M +16.5% reported; +14.0% comparable REVENUE CHANGE BY REGION AND CHANNEL (in m, and comparable growth in %) REVENUE BREAKDOWN BY REGION (on total Q1 revenue, in %) % +15% -6% +21% +13% 1,064 19% Western Europe 30% Asia Pacific 17% Q Western North America Asia Pacific Europe Q % North America 27% STRONG START TO THE YEAR AT PUMA First quarter ever above 1bn revenue mark, a 15% comparable revenue increase, driven by: acceleration in Footwear at +25%, Apparel +10%, Accessories +4% double-digit growth in all regions except, led by APAC, North America and Western Europe strong performance in both wholesale and retail Volcom still impacted by difficulties with action sports retailers in the US; good performance in own retail channel (+12%) PUMA BRAND HEAT COMING BACK High final demand, improving sell-through at retailers leading to anticipation of some deliveries from Q2 to Q1 Innovative product line-up and confirmed success of Women s initiatives together with other franchises (Fierce, Ignite, Fenty, Puma classics) Strong reception of new initiatives: Ignite Limitless, Basket Heart New sponsoring announcements strengthening the football roots: Olympique de Marseille, Borussia Mönchengladbach 10

11 CONCLUSION An outstanding performance in the quarter, thanks to: The right long-term strategy and determined day-to-day execution A favorable backdrop for the industry, while geopolitical and macroeconomic uncertainties remain We will keep concentrating on organic growth, value creation and financial discipline 11

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13 Q & A

14 Gucci Bottega Veneta Saint Laurent Alexander McQueen Balenciaga Brioni Christopher Kane McQ Stella McCartney Tomas Maier Boucheron Dodo Girard-Perregaux Pomellato Qeelin Ulysse Nardin Puma Cobra Volcom

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