Kering (KER) Investor Presentation summary

2007 financial performance

• Revenue grew by 16% to €19.76 billion, with operating income up 33% and net income from continuing operations rising 51% to €1.06 billion.

• Earnings per share from continuing operations increased by 20%, and free operating cash flow reached €1.39 billion, up 32% year-over-year.

• Operating margin improved to 8.6%, and EBITDA margin rose to 10.6%.

• Strong financial structure with net financial debt at €6.1 billion, reflecting the Puma acquisition.

• Solid equity base of €10.66 billion at year-end 2007.

Strategic initiatives and acquisitions

• Acquired Puma, integrating it as a strategic global brand with positive financial impacts.

• Expanded through tactical acquisitions (United Retail Group, CFAO in new markets) and divested non-core assets (Kadéos, Redcats Missy US, Empire Stores UK, Surcouf, Conforama Poland).

• Entered a strategic agreement with L'Oréal for YSL Beauté, granting a long-term global license and selling YSL Beauté for €1.15 billion.

Financial policy and risk management

• Nearly half of gross debt at year-end 2007 was at fixed or capped rates, providing interest rate protection.

• High liquidity with over €4.7 billion in unused confirmed credit lines and €1.7 billion in available cash.

• No refinancing required in 2008 and no exposure to risky investments; credit rating confirmed at BBB- with stable outlook.