Letter TO SHAREHOLDERS

MARCH 2021

MESSAGE FROM 2020 ANNUAL GROUP SHAREHOLDERS’ THE CHAIRMAN AND CEO RESULTS NEWS NOTEBOOK “Kering demonstrated Key figures Pomellato Annual General Meeting remarkable resilience 2020 highlights Boucheron Contact information and agility” Per-share cash dividend The North Face x Gucci Share price Provisional calendar Sustainability Analysis of the results

MARCH 2021 François-Henri Pinault Thank youforyoursupport. resume ourprofitablegrowthjourney. to maximizetheirpotential,and the rebound.Weinvestinallourbrands and betterpositionedtoleverage We areemergingfromthecrisisstronger of theLuxuryuniverse. in syncwiththecurrentandfuturetrends our strategyandbusiness modelareperfectly More thanever, Iamconvincedthat shown inthisunprecedentedenvironment. I amproudofthesolidarityourGrouphas and commitmentofallKering people. first priority. Iam gratefultotheresourcefulness of ouremployeesandcustomerswas This year, safeguardingthehealthandsafety strengthened theGroup’sfinancialstructure. generation remainedelevated,andwefurther and growthplatforms, ourcashflow while continuingtoinvestinourHouses the secondhalf, weprotectedourmargins We achievedasolidtop-linerecoveryin remarkable resilienceandagility. In ayearofdisruption,Kering demonstrated Dear Shareholders, MESSAGE FROMFRANÇOIS-HENRIPINAULT, CHAIRMAN ANDCHIEFEXECUTIVEOFFICER

* SubjecttotheapprovalofAnnualGeneralMeetingbeheldonApril22,2021. paid onMay6,2021. Subject toshareholderapproval,thebalanceof€5.50persharewillbe An interimcashdividendof€2.50persharewaspaidonJanuary21, 2021. of Directorswillaskshareholderstoapproveadividend€8pershare. At theAnnualGeneralMeetingtobeheldonApril22,2021,Board Per-share cashdividend(in€) 38,553 Employees 23.9% operating margin Recurring €13.1 bn Revenue 2020 highlights 2020 KEYFIGURES (behind closeddoors) Annual GeneralMeeting Thursday, April 22,2021 First-quarter 2021revenue Tuesday, April 20,2021 Provisional calendar *Ex-dividend date:May 4,2021.

2019 €8 www.kering.com/en/finance/ www.kering.com/en/finance/ website: our of section Finance the in results 2020 our of full-year video the find can you figures, key Group’s the about more To learn 55% in theGroup Women managers €2.1 bn to ownersoftheGroup Net incomeattributable €3.1 bn operating income Recurring First-half 2021results End-July 2021 Payment offinaldividend* May 6,2021 2020 €8*

and higherrecurringoperatingincomeintheyear. year onyear, thanks mainly toKering Eyewear, whichdelivered positive segment totaled€232millionin2020,animprovementof€31.8 including €399millionforKering Eyewear. Netexpensesforthe The Corporateandothersegmentdelivered€424millioninsales, Corporate andother Gucci’s growth, upnearly70%fortheyear. repatriation of demand.Onlinesales continued to enjoyfast-paced customers, especiallyinMainlandChina,whichbenefitedfromthe recovered arobustandencouragingsalesmomentumwithlocal Despite thestoreclosuresresultingfrompandemic,House and 21.5%onacomparablebasis. Gucci posted Gucci 2020, resultinginarecurringoperatingmarginof26.6%. income operating Recurring exclusive. with theGroup’sstrategytostreamlineandmake thischannelmore Wholesale revenuewasdown17.4% onacomparablebasis, inline sales generated bytheretailnetworkinyear. sales furtheraccelerated(up67.5%), accountingfor13%oftotal and werenearlystableinthesecondhalf(down1.5%).E-commerce In theretailnetwork,comparablesalesdeclined15.9%overyear restrictions towardstheendofyearincertainregions. second half(down3.3%onacomparablebasis),despitenew a comparablebasis),thesituationimprovedsignificantlyin took a heavy toll on the Houses’ first-half sales (down 30.2% on to €12.7billion.Whilethehealthcrisisandlockdown measures Houses Kering’s by generated revenue Total Analysis oftheresults recurring operatingincome revenue , of€7.4 billionin for the Houses totaled €3.4 billion in totaled€2.6billion. 2020 , down 22.7% as reported , down22.7%asreported in 2020amounted in Asia. by theirexposuretoWesternEurope, reportedstrongsalesgrowth posting year-on-year revenuegrowth.TheJewelryHouses, penalized Alexander McQueendeliveredhighlysatisfactoryperformances, 10.1% asreportedand9.4% onacomparablebasis. Balenciagaand Revenue Other Houses operating income Yves SaintLaurentposted Yves SaintLaurent up 18.0% on a comparable basis. Bottega Veneta posted first-half performance, salesinthesecondhalfwerestrong, as reportedand4.8%onacomparablebasis. Afteramixed Bottega Veneta posted Bottega Veneta Recurring operatingincome comparable basis. year, revenuefrom directly operated stores retreated13.4%ona in thesecond,growingby2.1%onacomparablebasis. Inthefull contraction in the first half, the House’s revenue returned to growth 14.9% asreportedand13.8%onacomparablebasis. Afterasharp of theOtherHousestotaled€2.3billionin of€172.0 millionfor2020. revenue revenue totaled€400millionintheyear. of €1.2billionin of€1.7billionin 2020 2020 2020 recurring recurring , up3.7% , down , down , down

MARCH 2021 GROUP NEWS GROUP NEWS

REVEALING THE BEAUTY OF THE PERFECTLY IMPERFECT SUSTAINABILITY n a surprising new twist, Pomellato has turned to a Pomellato Creative Director Vincenzo Castaldo explains traditional Japanese mending technique to upcycle how kintsugi found its way into the Milanese jeweller’s damaged gemstones in a stunning and highly original ateliers: “I was drawn to the elegance of Japanese thinking capsule collection. and the idea of something broken becoming more precious IIn Pomellato’s luxurious take on recycling, the Italian through this ritual of repairing. The idea of celebrating House’s superlative jewelry-making skills meet the ancient your scars as a sign of strength through healing is a very Japanese art of kintsugi. contemporary philosophy. And repurposing rather than discarding is so relevant to our own lives and our commitment Committed to finding sustainable solutions and driven to sustainability.” by an innovative attitude to Luxury, Pomellato embraces imperfection in its inclusive choice of materials. The jewels are the fruit of the collaboration with a female master kintsugi artist in Tokyo, who lovingly brings new life and preciousness to shattered pieces of jet and kogolong. In a true cross-pollination of cultures, the skilled artisans of Casa Pomellato in Milan craft the repaired stones into strikingly minimalist rings, earrings and pendants. The name kintsugi comes from the Japanese kin meaning gold and tsugi to mend. Golden veins weld the broken jewel pieces together. Even broken gemstones have their place in the House’s distinctive design approach. Imperfection is enhanced by traditional techniques and savoir-faire. First seen in the 15th century, the craft is an expression of the Japanese philosophy of resilience and compassion through a repair process that brings new life and value to PROTECTION OF BIODIVERSITY a damaged object. In January 2021, Kering and Conservation International launched the Regenerative Fund for Nature, with the aim of converting one million hectares of farms and rangelands producing raw materials in fashion’s supply chains to regenerative agriculture practices over the next five years. Eligible projects will focus on one or more of the core raw materials THE NORTH FACE X GUCCI for Luxury: leather, cotton, wool and cashmere. The fund is an important step in achieving Kering’s commitment to having a net positive impact on biodiversity by 2025. Kering has In early January, Gucci revealed its collaboration with The North Face also committed to protecting an additional celebrating the spirit of exploration. one million hectares of critical, irreplaceable habitats. HISTOIRE DE STYLE, ART DÉCO he North Face famously outfits those who seek adventure. Founded in San Francisco in 1966, the brand is known for its pioneering spirit, FASHION PACT a key component of its products and of exploration in all its forms. A MIRROR REFLECTING In October 2020, one year after its creation, TWO ERAS T It is well acknowledged that travel leads to self-discovery, and in this the Fashion Pact issued a report setting out conviction The North Face is aligned with Gucci, which similarly empowers the progress achieved in its first year of people to celebrate and express their own characters and personalities. These operation. This coalition created at the values are incorporated in Alessandro Michele’s approach toward fashion as initiative of François-Henri Pinault brings he inspiration for Boucheron’s new High Jewelry collection Histoire a powerful instrument of freedom. together more than 60 global companies, de style, Art Déco was drawn from the House’s archives, revived with representing more than 200 brands – around The campaign for the collaboration was shot in the Italian Alps. Its atmosphere a contemporary spin. The collection offers timeless creations, as a one-third of the fashion and textile industry. evokes the aesthetic of the seventies, when The North Face was still just signature style. Signatories have committed to achieving a thriving outdoor retailer based in Berkeley, California. seven strategic and ambitious environmental TA plastron necklace boasting 220 emerald beads, a signet ring set on a rock targets relating to climate change, biodiversity crystal mounting and a ribbon of diamonds worn as a belt are just some of the The cross-category collection for men and women includes ready-to-wear and and protecting the oceans, and focusing on key pieces that testify to the fact that, 100 years on, Art Deco is still a signature accessories, but also some more unexpected pieces linked to the outdoor world areas where collaborative action is needed style. Reinventing Boucheron’s stylistic repertoire since 2011, Creative Director of The North Face, such as tents and sleeping bags. to scale solutions and thus achieve critical Claire Choisne expressed her creative vision by delving into the House’s abundant impact on a global scale. Art Deco archives to celebrate their spirit, pure lines and simplicity. The North Face x Gucci is in keeping with the both brands’ commitment to eco-sustainable activities. For example, the bags contain ECONYL®, Claire Choisne has adopted the couture spirit and the antagonisms of the Roaring a nylon fabric sourced from regenerated materials (fishing nets, carpets Twenties, focusing on feminine and masculine, the opulence of pure lines, and and other synthetic materials). The color palette was curated from The the contrast of black and white enhanced by a touch of color – a subtle marriage North Face’s materials library, while fabrics from the brand’s archives between the magnetic green of emeralds, the deep black of onyx and the pure have been partially incorporated into the collection to give them white of diamonds. a new lease of life. Each piece of jewelry pays tribute to a 1930s wardrobe staple. With its Cravate and Lavallière necklaces and the Nœud bow-tie-shaped brooch, this year Boucheron is The North Face x Gucci was notably distributed through Gucci Pins, the brand’s revisiting the signature codes of the Art Deco era in these new High Jewelry pieces. temporary stores, with a limited selection of pieces – including several online Boucheron’s style manifests itself through the contemporary edge it brings to exclusives – also available on gucci.com. each creation that can now be worn by women as well as men. This gender-neutral approach is disrupting the world of jewelry, which has often been geared towards a female audience and now allows everyone to express their creativity. Design and production: Published bytheKering FinancialCommunicationsdepartment. Registered office:40ruedeSèvres– 75007 Paris, France Kering E-mail: Phone: +33(0)1456465 75007 Paris –France 40 ruedeSèvres Financial Communicationsdepartment Kering Kering’s InvestorRelationsdepartment: For anyotherqueries, pleasecontact E-mail: Fax: +33(0)157783219 Phone: +33(0)157783444 92862 Issy-les-Moulineaux, Cedex9 –France 14 rueRouget deLisle CACEIS CorporateTrust is yourpointofcontact: shares heldindirectregisteredform,* CACEIS For allrequestsregardingthemanagement of Contact information – of contact. intermediary whomanages youraccountremainspoint * Ifyouownadministeredregisteredshares, thefinancial www.kering.com/en (Finance/Shareholdersinformationsection). NB: thetradeorderformisavailablefordownloadat BottegaVeneta Should younolonger wishtoreceiveKering’s LettertoShareholders, pleasecontact usbypostoremail(see“Contactinformation”detailsabove). https://www.kering.com/en/legal/. To exercise yourrights, pleasecontactusatthefollowing address: [email protected]. For moreinformation,pleaseconsultourPrivacyPolicy at data portability, undertheconditionssetforthinapplicablelegislation. of April27, 2016,youhavetherighttoaccess, rectifyanderaseyourpersonaldata,torestrictor objecttotheprocessing ofthatdata,aswelltherightto In accordancewithFrance’s dataprotectionlaw( – Société anonyme Société

[email protected] [email protected] – SaintLaurent (aFrench corporation)withasharecapitalof€500,071,664–552075020 RCS Paris – Photo credits: In lightoftheongoing healthcrisissituationandtheadministrativemeasures Back cover: their accountisamemberofVotaccess andoffersthisserviceforthe Kering AnnualGeneralMeeting. *Holders ofbearershareswillonlybeabletovoteonlineifthefinancialinstitutionmanaging will take place

taken in the context of the COVID-19 pandemic, theAnnualGeneralMeeting pandemic, taken inthecontextofCOVID-19 on tothesecureVotaccess website, whichwillbeopenfromApril1to3p.m. on April21,2021.Holdersofbothregisteredandbearershares*canuse (see Finance>ShareholdersinformationAnnualGeneralMeeting Votaccess tosubmitthesamevotinginstructionsasonpaperform. Shareholders canvoteonlineaheadoftheGeneralMeeting,bylogging Jean-LucPerreard Cover:

All therelevantinformationisavailableonKering’s website:

As youwillnotbeabletoattendtheMeetinginperson, GENERAL DATA PROTECTION REGULATION Thierry Depagne behind closeddoors, withnoshareholdersphysically present Informatique et Libertés et Informatique The Meetingwillbebroadcastliveandareplay will alsobeavailableontheGroup’swebsite. – Phone:+33(0)145646100 SHAREHOLDERS’ NOTEBOOK either onlineorbycastingapostalvote. Annual GeneralMeeting Thursday, April22,2021at3p.m. we inviteyoutotake partremotely, © . to March15,2021 Compared totheCAC40index(rebased)fromJanuary1,2020 PERFORMANCE OFTHEKERINGSHARE Share price 525 550 575 350 375 425 450 475 500 625 400 600 (in eu © – 2 Jan 0 20 Portrait of François-Henri Pinault: r o . www.kering.com s as of31December2020 ) 2 Feb. CAPITALIZATION 0 20 €74.31bn ) ofJanuary6,1978(asamended)andtheEUGeneralDataProtectionRegulation MARKET 2 Mar. 0 20 – www.kering.com/en 2 K Apr. 0 eri 20 €357.60 Low n g

2 M 0 ay 20 2 CAC 40 J 0 un. 20 Carole Bellaiche

HIGHEST SHARE PRICE and December31,2020 2 between January1 J 0 u 20 l.

€623.50 2 Aug. 0

20 © – 2 Sept. Pomellato 0

20 )

2 Oct.

0 . €623.50

20

– Boucheron High 2 Nov. 0 20 LOWEST SHAREPRICE and December31,2020 December 31,2020 2 between January1 Dec. 0 20 CAC 40:-7.1% K ering: +1.6%

€357.60 – Gucci – at March15,2021 2 Jan. 021 Source: Euronext Daniel Shea €603.20 2021 Feb. Price

2021 Mar.

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MARCH 2021