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2020 First-Half results

July 28, 2020

28.07.2020 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 URD (Universal Registration Document)

filed with the French Financial Markets Authority (Autorité des Marchés Financiers - AMF) on March 26, 2020 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 first-half 2020 results. 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,

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COMPANY'S REFERENCE DOCUMENT AND THE COMPANY'S APPLICABLE AMF FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER

DECISION.

ANALYSIS OF RESULTS

JEAN-MARC DUPLAIX

GROUP CHIEF F INANCIAL OFFICER

SCALE & AGILITY DRIVING RESILIENCE IN PANDEMIC CONTEXT

Western Europe

31% (-29%)

North America

18% (-34%)

Asia Pacific

38% (-25%)

RoW

6% (-37%)

Japan

7% (-40%)

€952m

-57.7% vs. last year

FCF AND NET DEBT (€m)

• Group CAPEX: €368m, 6.8% of revenue

• Operating FCF: €566m, inventories under control

• Net debt at €3.8bn (excl.lease liabilities)

€5,378m

-29.6% reported

-30.1% comparable*

GROUP REVENUE (€m)

As a % of H1 20 revenue and (% comparable growth)

NET DEBTFCF FROM OPERATIONS

• Cost initiatives mitigating EBIT declineand operating deleverage

• Continued investments to drive change in complex environment

• Yielding a resilient 17.7% EBIT margin(vs. 29.5% LY)

28.07.2020 4

GROUP RECURRING OPERATING INCOME (€m)

3,785 3,203

3,853

2,175

H1 19 H1 20

Q2

Q1

7,638

952

H1 19

2,253

H1 20

566

H1 20H1 19

1,533 3,815

YE 19 H1 19 H1 20

2,135

2,812

5,378

-16.4% comp

-43.7% comp

* At constant scope and exchange rates

28.07.2020 5

LUXURY HOUSES

UNPRECEDENTED RETAIL REVENUE CONTRACTION DUE TO LOCKDOWN

Q1 Q2

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Retail sales Luxury (comp) % stores closed WW (inverted)

STORE CLOSURES HEAVILY IMPACTING Q2

• April: c.65% of network closed on average, most of Europe, Americas and Japan shut down, APAC reopening

• May: c.45%, gradual reopening in Europe and Japan by end of month

• June: c.15%, Europe and Japan almost fully reopened, more contrasted situation in the Americas with an average of 50% of stores still

closed

RETAIL NETWORK CLOSURES & SALES

28.07.2020 6

LUXURY HOUSES

SHIFT TO DIGITAL INTENSIFIES DESPITE LOGISTICS DISRUPTION

ONLINE ACCELERATION

+21%

+72%

+47%

Q1 20 Q2 20 H1 20

INCREASED PENETRATION

IN ALL REGIONS

9%

13%

3% 3%

20%

26%

6% 6%

Western Europe North America APAC Japan

H1 19 H1 20

+28%

+46%

+89%

+46%

Western Europe North America APAC Japan

E-COMMERCE COMP. REVENUE GROWTH E-COMMERCE REVENUE AS A % OF RETAIL SALES

6%

13%

H1 19 H1 20

H1 20 E-COMMERCE COMP. REVENUE GROWTH E-COMMERCE REVENUE AS A % OF RETAIL SALES

28.07.2020 7

Production and logistics lockdown delayed shipment of Fall-Winter

collection

Heavy impact from pandemic on wholesale, especially travel retail

SHORT-TERM

IMPACTS

LONG-TERM

STRATEGY TO

TIGHTEN

CONTROL OVER

DISTRIBUTION

Difficulties of certain wholesale accounts (US Department Stores)

and cautious management of orders

Active strategy to further downsize number of wholesale doors

Further retailization of some wholesale partners ongoing, both offline

and online (move to virtual concessions)

LUXURY HOUSES

WHOLESALE: SHORT-TERM IMPACTS, LONG-TERM STRATEGY

28.07.2020 8

LUXURY HOUSES

H1 REVENUE: -30% (REPORTED & COMP)

• Heavily disrupted H1 after good start to the year

• Q2 more severely impacted with trough in April: store closures

progressively hitting all regions. Temporary closure of central logistics

and production, nearly back to normal mid-June

Q2: -43% (REPORTED & COMP)

• Retail -42%. APAC first to recover led by M.China (>40%);

absence of tourism impacting Europe and some Asian markets

• Relocalized demand: E-comm surge, higher store conversion rate

mitigating softer traffic, recovery driven by younger clients

• Wholesale -48%, Royalties & others down 56%

RECURRING OPERATING MARGIN OF 21%

• Solid gross profit margin

• EBIT above €1bn

• Operating deleverage contained at 2x, differentiated across brands

depending on scale, maturity and investment stage

• Cost initiatives to continue bearing incremental benefits after H1

CAPEX UNDER CONTROL, -24%

• Capex/sales ratio at 4%, arbitration and redefined priorities

• Total DOS: 1,393, 12 net openings in H1

Royalties

and others

WholesaleH1 19 FX Retail H1 20

+1%7,364

-31%-27% -38%

5,175

In €m

X%: comparable change

In €m

H1

2020H1

2019 Change

Revenue 5,175 7,364 -29.7%

Recurring operating income

Margin (%)

1,063

20.5%

2,370

32.2%

-55.1%

-11.7pt

Gross CAPEX

As % of revenue

205

4.0%

271

3.7%

-24.3%

+0.3pt

STRENGTH OF BRAND PORTFOLIO IN UNPRECEDENTED SEMESTER

28.07.2020 9

GUCCI

H1 REVENUE: -33% REPORTED, -34% COMP


• Retail down 43%

— W.Europe and Japan most impacted regions. Prolonged store closures

in N. America, encouraging signs of restart

— APAC recovering through Q2 driven by Chinese and Koreans,

appreciation for newness and Beloved lines

— All regions posting strong double-digit E-comm growth with M.China

and N.America close or at triple digits

• Wholesale -54%, Royalties -61% with Beauty largely impacted

by travel retail

SOLID RECURRING OPERATING INCOME

• EBIT margin in excess of 30%

• Rapid response to deteriorating environment through proactive

management of cost base

• Continued investment in brand and client engagement, across all

touchpoints, with particular focus on locals

TARGETED CAPEX

• Stable store network (2 net openings in H1)

• Shifted deployment of innovative retail format (Gucci Pin)

and postponed store refurbs

Asia

Pacific

RoW Wholesale

-36%

Western

Europe

Royalties

and others

H1 20

-47%

H1 19

-28%

North

America

Japan

-40%

4,617

-25% -48%-38%

3,072

Retail (86% of sales): -33%

-71% -43% -64% -16% -76% -54% -61%of which Q2 20

comp growth

In €m


TOTAL

-45%

In €m

H1

2020H1

2019 Change

Revenue 3,072 4,617 -33.5%


Margin (%)

929

30.2%

1,876

40.6%

-50.5%

-10.4pt

Gross CAPEX

As % of revenue

98

3.2%

125

2.7%

-21.3%

+0.5pt

28.07.2020 10

SAINT LAURENT



• Retail down 48% penalized by store closures in W.Europe and

N.America, where the brand has a stronger presence:

— Reactivated and re-engaged with local client base, tailored

communication and clienteling initiatives

— Gradual improvement in APAC, rebound in M.China and Korea;

strengthening brand awareness and presence to exploit full potential;

launch of ysl.cn in June

• Wholesale -49%, disruption in Fall deliveries

RECURRING OPERATING MARGIN AT 15%

• Deleveraging contained

• Resilience plan implemented to mitigate crisis impact while

protecting key resources to feed the rebound

CAPEX REDUCED BY 53%

• Store openings on track: +5 net DOS in H1

• Capex/sales ratio at 3.8%

North

America

H1 19 RoWWestern

Europe

Japan Wholesale Royalties

and others

-33%

681

H1 20

973

-38%

-39%

-26% -41%

-29%-24%

Asia

Pacific


In €m


-62% -61% -62% -17% -69% -49% -48%of which Q2 20

comp growth

TOTAL

-48%

In €m

H1

2020H1

2019 Change

Revenue 681 973 -30.0%


Margin (%)

102

15.0%

252

25.9%

-59.4%

-10.9pt

Gross CAPEX

As % of revenue

26

3.8%

55

5.7%

-52.6%

-1.9pt

28.07.2020 11

BOTTEGA VENETA


• Continued success in brand rejuvenation

— High product desirability across all Women categories. Ramp-up of new

products nearly completed (90% of assortment in Q2), new Men’s

collection hitting shelves

— Multiple actions to nurture existing & new client bonds throughout crisis:

bold engagement initiatives across all touchpoints to convey brand

narrative

— E-commerce business almost tripling


• Retail -34%, positive performance in APAC

• Wholesale +15%, regaining shelf space

CONTINUING BRAND INVESTMENT FURTHER

IMPACTING RECURRING OPERATING

INCOME

• Higher operating deleverage despite cost-containment measures

• Ambitious investments to amplify momentum and reinforce brand

fundamentals

CAPEX DOWN 34%

• 4 net closures in H1

• Innovative new retail animations: "The Invisible store", "Chain"

special project

-24% -27%

H1 20Royalties

and others

WholesaleAsia

Pacific

North

America

Western

Europe

H1 19

503

-40% -8%

549

+24%+32% 0%

Japan RoW


In €m


-58% -70% -61% +4% -18% +15% -8%of which Q2 20

comp growth

TOTAL

-24%

In €m

H1

2020H1

2019 Change

Revenue 503 549 -8.4%


Margin (%)

44

8.7%

104

18.9%

-58.0%

-10.2pt

Gross CAPEX

As % of revenue

19

3.8%

29

5.3%

-34.2%

-1.5pt

28.07.2020 12

OTHER HOUSES



• Retail down 35%

— Balenciaga brand momentum spreading across categories. Sharp

rebound in APAC, supported by active clienteling and increased retail

presence

— AMQ extending success in Shoes thanks to new pillars; activation of

multiple initiatives (virtual appointments, inventory reallocation,

localized comms) to sustain growth of all categories

— Boucheron and Pomellato penalized by limited exposure to APAC;

Qeelin leveraging its Chinese presence

• Wholesale -53% particularly impacted by Watches

RECURRING OPERATING RESULT

REFLECTING DIFFERENT PROFITABILITY

PROFILES

• Balenciaga resilience, scale and maturity allowing to protect double-

digit profitability

• AMQ good cost management

• High operating deleverage at other brands, esp. weighing on Watches

CAPEX MAINTAINED ON NETWORK

EXPANSION

• 9 net openings in H1, notably at Balenciaga and Alexander McQueen

Retail

1,225

WholesaleH1 19 Royalties

and others

H1 20

-22%

-29% -56%

919

In €m

H1

2020H1

2019 Change

Revenue 919 1,225 -25.0%


Margin (%)

(12)

n.a.

138

11.3%

-108.5%

-12.6pt

Gross CAPEX

As % of revenue

62

6.7%

62

5.0%

-0.3%

+1.7pt

In €m


28.07.2020 13

CORPORATE & OTHER

KERING EYEWEAR

• Strong start to the year followed by a significant deterioration in Q2

(-53% comp) due to brands’ store closures, travel retail halted and

caution of wholesale partners

• Further development of brand portfolio with addition of Chloé

and Dunhill, first collections for SS21

• First fully digital event for FW20 sales campaign

RECURRING OPERATING RESULT

IMPROVING

• Kering Eyewear contribution under pressure but in positive territory

• Containment of underlying corporate costs while maintaining

ambitious digital and innovation projects

MAINTAINING INVESTMENTS IN OUR

GROWTH PLATFORMS

• Strategic modernization of IT systems ongoing

• Transformation and expansion of Group logistics capabilities

11

H1 20 Kering

Eyewear

consolidated

sales

H1 20 Kering

Eyewear

total sales

Other revenueRoyalties and

intragroup

eliminations

H1 20 Total

Corporate

and Other

H1 19 Total

Corporate

and Other

274

243

-51

192203

-27% comp

In €m

In €m

H1

2020H1

2019


Underlying result

Corporate Long-term incentive plan

(111)

(87)

(24)

(117)

(88)

(29)

Gross CAPEX 163 112

-25% comp

€260m deriving

directly from

Covid-19, o/w

€246m impairment

28.07.2020 14

FINANCIAL PERFORMANCE

In €m H1 2020 H1 2019

Revenue 5,378 7,638

Gross margin 3,903 5,652

Recurring operating income 952 2,253

Other non-recurring operating income and

expenses

Finance costs, net

Income tax expense

Share in earnings of equity-accounted

companies

(319)

(145)

(194)

(8)

(42)

(134)

(1,449)

21

Net income from continuing operations

Net income from discontinued operations

286

(11)

648

(60)

Net income of consolidated companies

Of which net income, Group share

275

273

588

580

Net income, Group share, from continuing

operations excluding non-recurring items 569 1,556

Net income, Group share, per share (in euro)

Net income per share from continuing

operations, Group share, excluding non-

recurring items (in euro)

2.18

4.55

4.61

12.37

2

1

1

Mainly PUMA

contribution,

based on Vara

consensus

2

In €m H1 2020 H1 2019

Cash flow before taxes, dividends and interests

Change in working capital requirement

Income tax paid

1,596

(470)

(193)

2,727

(437)

(375)

Net cash flow from operating activities 933 1,915

Acquisition of fixed operating assets

Sale of fixed operating assets

(368)

1

(384)

2

Free cash flow from operations 566 1,533

15

FREE CASH FLOW FROM OPERATIONS

28.07.2020

16

CAPITAL EMPLOYED AND OPERATING WORKING CAPITAL

SHAREHOLDERS’ EQUITY

€10,207M

NETDEBT

€3,815M

INVENTORIES

€3,108M

RECEIVABLES

€778M

DEBT-TO-EQUITY RATIO

37.4%

CAPITAL EMPLOYED

€14,022M

OPERATING WORKING CAP

€3,269M24.0%*

PAYABLES

€617M

28.07.2020

* LTM group revenue

H1 2020 NET DEBT BRIDGE

28.07.2020 17

CHANGE IN NET FINANCIAL DEBT

142

387 36

1,002

Net debt at

December

31, 2019

Dividend paid

3,815

FCF from

operations

Net interest paid

and dividend

received

Share repurchase Repayment of

lease liabilities

Net financial

investments

and other

Net debt at

June 30, 2020

2,812

-566

2

In €m

28.07.2020 18

DISCIPLINED FINANCIAL MANAGEMENT

COST

REDUCTION

• Rent relief: fruitful

renegotiations

• Personnel variable

remuneration, salary & hiring

freeze

• Reduction in executive

compensation

• SG&A control, A&P

SOLID FINANCIAL

STRUCTURE LIQUIDITY

SECURED

CASH

MANAGEMENT

• Postponement of non-critical

projects

• Safeguarding key capex

related to growth platforms

(digital, e-commerce, IT,

logistics)

• Focus on inventory

management

• No significant short-term

maturities, well-balanced

bond repayment schedule

• Undrawn confirmed lines of

credit: €4.8bn. Strong support

from our banks, extension of

confirmed credit lines by

€1.8bn

• Access to financial markets:

€1.2bn bond issue in May

CONCLUSION

JEAN-FRANCOIS PALUS

GROUP MANAGING DIRECTOR

28.07.2020 20

KERING IS WELL POSITIONED TO LEVERAGE THE NEW LUXURY ENVIRONMENT

YOUNG AND GLOBAL

CONSUMERS

INCREASED DEMAND

FOR TRANSPARENCY

Leading sustainability commitments

Balancing scale and

personalization

NUMEROUS

TOUCHPOINTS

NEW TECHNOLOGIES

Seamless experience across channels and geographies

OMNICHANNEL

AS A MUST

Agility to meet instant requests

A DEMAND-DRIVEN

SUPPLY CHAIN

28.07.2020 21


YOUNG AND GLOBAL

CONSUMERS INCREASED

DEMAND FOR TRANSPARENCY

NUMEROUS

TOUCHPOINTS

NEW TECHNOLOGIES

• Strong sustainability, climate change &

biodiversity commitments

• Diversity & inclusion core values

• Caring about community, suppliers & employees

• New collections: Gucci “Off the grid”

• Sustainable innovation & new business models

• Millennials & Gen-Z unabated appetite for luxury

• Creativity expressed across all touchpoints

• Increase brand visibility, nurture desirability and

client engagement on relevant platforms &

networks

• Adapted marketing & comms strategy, social

commerce

• Asset digitalization

- Virtual Showrooms & shows

- Design, prototyping, content

• New & immersive experiences: live streaming,

virtual fitting

• AI programs: product recommendation, …

28.07.2020 22


OMNICHANNEL

AS A MUST

A DEMAND-DRIVEN

SUPPLY CHAIN

• Online acceleration & e-commerce

internalization

- AMQ first brand successfully migrated to

in house platform (July 2020), opening of

China e-comm website for AMQ and YSL

• Localized demand: leveraging data & tech

(CRM) to better know & engage with clients

- Further personalize experience along

customer journey, multiple clienteling

activations

- Client advisors empowerment to offer the

best of physical & digital: development of

distant sales, client service support & visio

app pilot

• Distribution reassessment (retail footprint,

selectivity offline & online, virtual concessions)

• AI powered models to improve short-term

forecast and long-term planning

• Logistics transformation program

- New regional US warehouse operating,

successful initial go-lives in new central

Italian warehouse. Roadmap confirmed

with slight timeline reshaping

- Improved time to market, inventory

availability and flexibility (region to region,

channel to channel)

- Adapting to new collections agenda &

structure

• IT backbone investments ongoing as planned

28.07.2020 23

2020 FIRST-HALF RESULTS

CONCLUSION

• Group scale & scope

• Ensemble of leading creative brands to capture

the new consumer

• Digital initiatives, innovation & growth platforms

• Deep-rooted culture of sustainability & responsibility

• Agility, responsiveness, adaptation

• Balancing profitability protection

& investment priorities

• Healthy financial situation

• Clear vision, strategy & model

• Ability to speed up implementation and seize

opportunities

WE AREWEATHERING THE CRIS IS

WE ENTERED 2020 IN TOP POSIT IONING

WE ARE DETERMINED AND CONFIDENT

Q&A

AppendixAPPENDIX

28.07.2020 26

REVENUE

Reported change

in €m H1 2020 H1 2019 €m %

Gucci

Saint Laurent

Bottega Veneta

Other Houses

3,072.2

681.1

503.1

919.1

4,617.1

973.0

549.0

1,225.3

(1,544.9)

(291.9)

(45.9)

(306.2)

-33.5%

-30.0%

-8.4%

-25.0%

Luxury – Total Houses 5,175.5 7,364.4 (2,188.9) -29.7%

Corporate & Other 202.8 274.0 (71.2) -26.0%

Kering 5,378.3 7,638.4 (2,260.1) -29.6%

y-o-y change

in €m % comparable % reported

Q1 20

Q2 20

3,066

2,110

-16.9%

-43.4%

-16.0%

-43.2%

27

LUXURY HOUSES

Revenue breakdown by region

Western Europe

30%

North America

18%

Japan

8%

Asia Pacific

38%

RoW

6%

H1 2020 REVENUE€5,176m -29.7% REPORTED, -30.2% COMPARABLE

NUMBER OF DIRECTLY OPERATED STORES

324

226 220

611

318

225 224

626

W estern Europe Nor th Am er ica Japan Em erg ing m arkets

YE 2019: 1,381 H1 2020: 1,393

28.07.2020

Western Europe

25%

North America

19%

Japan

7%

Asia Pacific

44%

RoW

5%


28.07.2020 28

GUCCI

H1 2020 REVENUE€3,072m -33.5% REPORTED, -33.8% COMPARABLE

106 107

65

209

106 105

67

211


YE 2019: 487 H1 2020: 489


y-o-y change


Q1 20

Q2 20

1,804

1,268

-23.2%

-44.7%

-22.4%

-44.7%

Western Europe

36%

North America

21%

Japan

7%

Asia Pacific

30%

RoW

6%


28.07.2020 29

SAINT LAURENT

H1 2020 REVENUE€681m -30.0% REPORTED, -30.6% COMPARABLE

46 4331

102

46 4432

105


YE 2019: 222 H1 2020: 227


y-o-y change


Q1 20

Q2 20

435

247

-13.8%

-48.4%

-12.6%

-48.2%

Western Europe

29%

Japan

11%

Asia Pacific

40%

RoW

8%


28.07.2020 30

BOTTEGA VENETA


60

3548

125

57

3549

123


YE 2019: 268 H1 2020: 264


y-o-y change


Q1 20

Q2 20

274

229

+8.5%

-24.4%

+10.3%

-23.8%

North America

12%

Western Europe

44%

Japan

8%

Asia Pacific

28%

RoW

7%


28.07.2020 31

OTHER HOUSES


112

41

76

175

109

41

76

187


YE 2019: 404 H1 2020: 413


North America

13%

y-o-y change


Q1 20

Q2 20

553

366

-5.4%

-44.0%

-4.1%

-43.6%

28.07.2020 32

RECURRING OPERATING INCOME

in €m H1 2020 H1 2019 Reported change %

Gucci

Saint Laurent

Bottega Veneta

Other Houses

929.0

102.1

43.6

(11.7)

1,876.1

251.7

103.9

138.3

-50.5%

-59.4%

-58.0%

-108.5%

Luxury – Total Houses 1,063.0 2,370.0 -55.1%

Corporate & Other (110.6) (117.3) +5.7%

Kering 952.4 2,252.7 -57.7%

28.07.2020 33

EBITDA

in €m H1 2020 H1 2019 Reported change %

Gucci

Saint Laurent

Bottega Veneta

Other Houses

1,236.2

192.4

131.8

125.6

2,106.0

332.4

178.0

233.7

-41.3%

-42.1%

-26.0%

-46.3%

Luxury – Total Houses 1,686.0 2,850.1 -40.8%

Corporate & Other (11.0) (40.8) +73.0%

Kering 1,675.0 2,809.3 -40.4%

EBITDA: defined as recurring operating income + net charges to depreciation, amortisation and provisions on non-current operating assets, recognised in recurring operating income

28.07.2020 34

RECURRING OPERATING INCOME AND EBITDA – IFRS 16 BRIDGE

in €m H1 2020 H1 2019 Change


as a % of revenue

952.4

17.7%

2,252.7

29.5%

-57.7%

-11.8pt

IFRS 16 treatment on rent fixed part (446.9) (340.9) -31.1%

Amortization of IFRS 16 right-of-use 408.7 316.6 +29.1%

Adjusted recurring operating income

(IAS 17)

as a % of revenue

914.2

17.0%

2,228.4

29.2%

-59.0%

-12.2pt

Adjusted EBITDA (IAS 17)

as a % of revenue

1,228.1

22.8%

2,468.4

32.3%

-50.2%

-9.5pt

GROUP

in €m H1 2020 H1 2019

Cost of net debt

Other financial income and expenses

(30.0)

(57.6)

(25.6)

(59.0)

Financial costs (net, excluding lease

contracts)(87.6) (84.6)

Interest expense on lease contracts (57.3) (49.1)

Finance costs, net (144.9) (133.7)

28.07.2020 35

NET FINANCIAL COSTS AND INCOME TAX

in €m H1 2020 H1 2019

Tax on recurring income

Tax on non-recurring items

Tax related to Italian settlement

(227.8)

34.1

n.a.

(558.9)

5.4

(895.9)

Total tax charge (193.7) (1,449.4)

Effective tax rate 39.7% 69.8%

Tax rate on recurring income 28.2% 26.4%

28.07.2020 36

BALANCE SHEET AND OPERATING WORKING CAPITAL

In €m

June 30,

2020

Dec.31,

2019

June 30,

2019

Intangible Assets

RoU assets on lease contracts

Tangible Assets

Other Non-current Assets (Liabilities)

Non-current lease Liabilities

Total Non-current Assets (Liabilities)

Operating Working Capital

Other Current Assets (Liabilities)

Current lease Liabilities

Total Current Assets (Liabilities)

Net Assets held for sale

Provisions

9,582

3,916

2,627

1,319

(3,360)

14,084

3,269

(2,300)

(709)

260

3

(325)

9,787

4,247

2,619

1,231

(3,599)

14,285

3,146

(3,118)

(720)

(692)

5

(347)

9,678

3,852

2,237

1,247

(3,260)

13,754

2,886

(4,230)

(613)

(1,957)

112

(326)

Capital employed 14,022 13,251 11,583

Shareholders’ Equity

Net Debt

10,207

3,815

10,439

2,812

9,448

2,135

Total Sources 14,022 13,251 11,583

Operating Working Capital

(in €m and as % of revenue)

Debt-to-equity ratio

37.4%

24.0%

H1 20 LTM

19.4%

H1 19 LTM

778

3 108

(617)

1

3,269

Receivables Inventories Payables

Gucci • Saint Laurent • Bottega Veneta

Balenciaga • Alexander McQueen • Brioni

Boucheron • Pomellato • Dodo • Qeelin • Ulysse Nardin • Girard-Perregaux

Kering Eyewear

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