2023 UNIVERSALREGISTRATIONDOCUMENT

This Universal Registration Document has been filed on March 19, 2024 with the Autorité des marchés financiers (AMF), as competentauthority under Regulation (EU) 2017/1129, without prior approval pursuant to article 9 of said regulation.
The Universal Registration Document may be used for the purposes of an offer to the public of securities or the admission of securities
to trading on a regulated market if completed by a securities note and, if applicable, a summary and any amendments to the Universal
Registration Document. The whole is approved by the AMF in accordance with Regulation (EU) 2017/1129.

This universal registration document including the Annual Financial Report is a reproduction in PDF format, translated in English, ofthe official version of the universal registration document established in ESEF format, filed with the AMF on March 19, 2024 andavailable on the AMF website www.amf-france.org. This reproduction is available on our website www.kering.com.
This document is a free translation into English of the Universal Registration Document of the Company issued in French and is provided
solely for information purposes.

KERING - 2023 Universal Registration Document

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TABLE OF CONTENTS—2KERING - 2023 Universal Registration Document

CHAPTER 1
Presentation of the Groupand Integrated Report51-

Message from the Chairman
and Chief Executive Officer

62-Group profile

834-

Our governance model
Our value creation model

17
25

56-

Our strategy
Our markets

31
37

78-

Our Houses
Our approach to sustainability

42
58

9-

Our approach to risk management62

1 - Introduction
2 - Significant events of 2023
3 - Subsequent events
4 - Group performance in 2023
5 - Operating performance by segment
6 - Parent company net income
7 - Transactions with related parties
8 - Outlook
9 - Definitions of non-IFRS financial indicators
10 - Investment policy

Respecting and protecting the environment
in our operations and value chain

219

6-

Commitments to our customers,
our stakeholders and society as a whole

264

7-

Cross-reference table

272

8-

Report of one of the Statutory Auditors,
appointed as independent third party, on
the verification of the consolidated nonfinancial performance statement and on
the verification of certain environmental
indicators
Limited assurance report of oneof the Statutory Auditors on a selectionof information related to the environmental
profit and loss account ("EP&L")

276

9-

279

CHAPTER 5

CHAPTER 2
Activity report

5-63

Risk management and internal control

64
66
68
69
79
88
88
88
88
89

1-

Internal control and risk management
procedures implemented by Kering

282

23-

Presentation of risks
2023 Duty of Care Plan

291
314

CHAPTER 3
Corporate governance

91

123-

Kering’s governance
Composition of the Board of Directors
Conditions of preparation and organizationof the work of the Board of Directors

92
98
127

45-

Other corporate governance disclosures
Remuneration of corporate officers

141
144

CHAPTER 4
Sustainability

177

123-

Introduction: sustainability at Kering
Ethics, the cornerstone of our business
The employee experience at the heartof the Group’s Human resources strategy

178
187

4-

Working together to build sustainable
and socially responsible supply chains

195
212

281

CHAPTER 6
Financial statements as of December 31, 2023 327
1-

Consolidated financial statements
as of December 31, 2023

328

2-

Statutory auditors’ report on
the consolidated financial statements

392

34-

Kering SA annual financial statements
Statutory Auditors’ Reporton the financial statements

5-

Statutory Auditors’ Special Reporton regulated agreements with third parties

396
413
417

CHAPTER 7
Investor information

419

12-

420
424

CapitalShare ownership structure

CHAPTER 8
Additional information

431

12-

General information
Person responsible for the Universal
Registration Document

432

345-

Statutory Auditors
Documents incorporated by reference
Cross-reference table

434
435
435

KERING - 2023 Universal Registration Document

434

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KERING - 2023 Universal Registration Document

CHAPTER 1
Presentation of the Groupand Integrated Report1-

Message from the Chairman
and Chief Executive Officer

2 - Group profile
2.1 Group history
2.2 Kering today, a global Luxury
group

6
8
8
10

3 - Our governance model
17
3.1 Stable ownership structure
17
3.2 A Board of Directors with a longterm vision for the Group18
3.3 Remuneration aligned with value
creation and stakeholder interests 21
3.4 Group management22
3.5 Simplified Group structure
as of December 31, 2023
24

4-

Our value creation model25

5-

Our strategy

31

6 - Our markets
6.1 Major trends in the Luxury
industry
6.2 Overview of the Luxury market

37

7-

Our Houses

42

88.1
8.2
8.3

Our approach to sustainability
Our organization
Our strategy for 2025
Climate risks fully integrated
into the business strategy

58

9-

Our approach to risk
management

37
39

58
58
61

62

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Presentation of the Group and Integrated Report
Message from the Chairman and Chief Executive Officer

1 - MESSAGE FROM THE CHAIRMAN
AND CHIEF EXECUTIVE OFFICER

François-Henri Pinault
Chairman and Chief Executive Officer—6

KERING - 2023 Universal Registration Document

Presentation of the Group and Integrated Report
Message from the Chairman and Chief Executive Officer

Kering is a global Luxury group that manages
the development of a series of renowned Houses
in Fashion, Leather goods and Jewelry. By placing
creativity at the heart of its strategy, Kering enables
its Houses to push back the limits in terms of
their creative expression, while crafting tomorrow's
Luxury in a sustainable and responsible way.
We capture these beliefs in our signature:"

In a trying year for the group, we strengthened our organization and took
significant steps to further enhance the visibility and exclusivity of our Houses.
We are focused on revitalizing Gucci, leveraging the unique blend ofcraftsmanship, Italian heritage, and modernity that characterizes this iconic
House. The launch of Kering Beauté and the acquisition of Creed, a storiedmaker of high-end fragrances, will enable us to capture our share of thesteadily growing beauty market. In a market environment that remains
uncertain in early 2024, our continuing investments in our Houses will put
pressure on our results in the short-term. Thanks to the experience gained
across the group through a decade of outstanding expansion, we are confident
in achieving our long-term ambitions.

"

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Presentation of the Group and Integrated Report
Group profile

2 - GROUP PROFILEThe Group has continuously transformed itself since its inception in 1963, guided by an entrepreneurial spirit and a commitment toconstantly seek out growth and create value.
Founded by François Pinault as a timber and building materials business, the Group repositioned itself on the retail market in the 1990s
and soon became one of the leading European players in the sector. The acquisition of a controlling stake in Gucci Group in 1999
marked a new stage in the Group's development, in which it has established a coherent ensemble of complementary Houses. Since
2018, Kering has been a pure player in Luxury.

2.1 Group history
Origins
1963
François Pinault establishes
the Pinault group, specializingin timber trading.
1988
Listing of Pinault SA on the
Paris Stock Exchange.

Development ofa leading distributor

Entry into the Luxury andSport & Lifestyle industries

1990
Acquisition of Cfao, a groupspecializing in trading with Africa andin electrical equipment distribution(renamed Rexel in 1993).

1999
Acquisition of a 42% stake in Gucci Group NV,
marking the Group's entry into the luxury industry.

1991
Entry into the retail market with theacquisition of a controlling stake in
Conforama.
1992
Takeover of Au Printemps SA, adepartment store chain which also
held a majority interest in mail orderclothing brand La Redoute.
1994
Merger of La Redoute with PinaultPrintemps, which is renamed
Pinault-Printemps-Redoute.
Takeover of Fnac, a retailer ofbooks, music, ﬁlms and consumer
electronics.

2000
Acquisition by Gucci Group of high jewelry House
Boucheron.
2001
Gucci Group acquires Italian leather goods brandBottega Veneta and Balenciaga, and signs partnershipagreements with Alexander McQueen and Stella
McCartney.
The Group raises its stake in Gucci Group to 53.2%.
2003
Sale of Pinault Bois & Matériaux.
The Group raises its stake in Gucci Group to 67.6%(after raising it to 54.4% in 2002).
2004
The Group raises its stake in Gucci Group to 99.4%
through a tender oﬀer.
Sale of Rexel.
2005
Pinault-Printemps-Redoute becomes PPR.
François-Henri Pinault becomes Chairman
and Chief Executive Oﬃcer of PPR.
2006
Sale of a 51% controlling stake in Printemps.
2007
Sale of the remaining 49% stake in Printemps.
Acquisition of a 27.1% controlling stake in PUMA,
subsequently increased to 62.1% through a tender oﬀer.
2008
Sale of YSL Beauté to L'Oréal.
Acquisition of a 23% stake in watchmaker
Girard-Perregaux.
2009
IPO of Cfao, involving the sale of a controlling 58%
stake.
Creation of the Kering Foundation to combat violenceagainst women.
2011
Sale of Conforama.
Acquisition of Volcom.
The Group raises its stake in Sowind Group(Girard-Perregaux) to 50.1%.
2012
Acquisition of Italian men's tailor Brioni.
Sale of the remaining 42% stake in Cfao.

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KERING - 2023 Universal Registration Document

Presentation of the Group and Integrated Report
Group profile

An integrated
and reinforced group

Kering, a pure playin the Luxury industry

2013
Acquisition of a majority stake in Chinese ﬁne
jewelry brand Qeelin.
Acquisition of a majority stake in France Croco,
now named Tannerie de Périers.
Listing of Groupe Fnac on the Paris Stock Exchange.
Change of corporate name: PPR becomes Kering.
Acquisition of a majority stake in Italian jewelrygroup Pomellato.
Admission to the Dow Jones Sustainability Worldand Europe Indices (DJSI).

2018
Distribution in kind of PUMA shares to Kering
shareholders, while maintaining a 15.85% stakein the company to be sold gradually.
Kering announces its withdrawal from businesses
including Stella McCartney and Volcom.
New developments in Kering's digital strategy,
aimed at enhancing the Group's omnichannel
capabilities and its Houses' digital activities.

2014
Sale of La Redoute.
Acquisition of watchmaker Ulysse Nardin.
2015
Launch of Kering Eyewear.
Sale of Italian shoemaker Sergio Rossi.
Publication of the ﬁrst Environmental Proﬁt
and Loss Account (EP&L) at Group level.
2016
Sale of Electric by Volcom.
Kering relocates its headquarters to the former
Laennec Hospital, in the heart of Paris' Left Bank.
Announcement of the Group's 2025 sustainability
strategy.
2017
Strategic partnership signed between Kering
Eyewear and Maison Cartier to develop,
manufacture and distribute the Cartier eyewear
collections, with Richemont acquiring a minority
stake in Kering Eyewear.

(1)

2019
Sale of Volcom.
The Fashion Pact: François-Henri Pinault mobilizes
participants in the fashion and textile industries withthe aim of reducing their environmental impact.
Extension of the parental leave policy, with
14 weeks of paid parental leave for all Group
employees.
2020
Public health crisis arising from the COVID-19
pandemic.
Kering publishes a dedicated biodiversity protection
strategy with a series of new targets to achievea "net positive impact"(1) on biodiversity by 2025.
2021
Purchase of a stake of around 5% in Vestiaire
Collective.
Inauguration of the Group's new logistics
platform in Trecate (Italy).
Acquisition of Danish luxury eyewear brand
Lindberg.
Publication of the Climate Strategy, aligned witha 1.5 °C SBT trajectory.
2022
Acquisition of American eyewear brand Maui Jim.
Disposal of Girard-Perregaux and Ulysse-Nardin.
Launch of KeringForYou, the Group's first employee
share ownership transaction.
Launch of the Climate Fund for Nature.

A business that has a "net positive" impact on biodiversity is one whose negative impacts on biodiversity are outweighed by its positive
impacts. This is generally achieved by applying the following mitigation hierarchy: 1. Avoid; 2. Reduce; 3. Restore/Regenerate; 4. Transform(Conservation hierarchy).

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Presentation of the Group and Integrated Report
Group profile

2.2 Kering today, a global Luxury group
Kering is continuing its growth story, unlocking the potential of its Houses and pursuing its ambition to be the world's most influential
Luxury group in terms of creativity, sustainability and long-term economic performance.

Our Houses— 10

KERING - 2023 Universal Registration Document

Presentation of the Group and Integrated Report
Group profile

Kering in 2023

-4%

Revenue€19,566 million

as reported versus 2022

-2%

on a comparable basis(1) versus 2022

Recurring operating income€4,746 million-15%
versus 2022

24.3%
recurring operating margin

Net income attributable to the Group

Dividend per share€2,983 million€14(2)

Free cash flow from operations(3)Free cash flow from operations€1,983 million

(1)
(2)
(3)
(4)

excluding strategic real estate acquisition and disposal€3,321 million

48,964-58%

employees
as of December 31, 2023(4)in the Group’s environmental footprint(EP&L intensity 2015-2023)

57%

CDP Triple A List

women managers

Climate - Water - Forests

Comparable revenue is defined on page 88.
Subject to the approval of the Annual General Meeting to be held on April 25, 2024.
Free cash flow from operations is defined on page 89.
Average 46,014 FTE in 2023.

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Presentation of the Group and Integrated Report
Group profile

Key consolidated figures(in € millions)

Revenue
EBITDAEBITDA margin (% of revenue)
Recurring operating income
Recurring operating margin (% of revenue)
Net income attributable to the Groupo/w continuing operations excluding non-recurring items
Gross operating investments(1)Free cash flow from operations(2)Net debt(3)2023
19,566
6,569
33.6%
4,746
24.3%
2,983
3,061
2,611
1,983
8,504

2022
20,351
7,255
35.6%
5,589
27.5%
3,614
3,747
1,071
3,208
2,306

Change(reported)-4%-9%-2.0 pts-15%-3.2 pts
-17%
-18%
+144%
-38%
N/A

2023
24.38
25.02
14.00 (1)

2022
29.34
30.42
14.00

Change(reported)
-17%
-18%
–

(1) Purchases of property, plant and equipment and intangible assets.
(2) Free cash flow from operations is defined on page 89.
(3) Net debt is defined on page 89.

Per share data(in €)Net income attributable to the Groupo/w continuing operations excluding non-recurring items
Dividend per share(1) Subject to the approval of the Annual General Meeting to be held on April 25, 2024.

— 12

KERING - 2023 Universal Registration Document

Presentation of the Group and Integrated Report
Group profile

Revenue
Breakdown by segment

2023
9,873
3,179
1,645
3,514
1,568
(213)

2022
10,487
3,300
1,740
3,874
1,139
(189)

Reportedchange
-6%
-4%
-5%
-9%
+38%
N/A

Comparable
change(1)
-2%
-1%
-2%
-8%
+11%
N/A

19,566

20,351-4%-2%(in € millions)

Gucci
Yves Saint Laurent
Bottega Veneta
Other Houses
Kering Eyewear and Corporate
Eliminations

Revenue(1) On a comparable scope and exchange rate basis. Comparable growth is defined on page 88.

Breakdown by region(as a % of consolidated revenue)

WesternEurope

28%
Japan

North
America

7%

23%
Rest
of the world

AsiaPacific

7%

35%

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Presentation of the Group and Integrated Report
Group profile

Number of directly operated stores by region367
347

WesternEurope

316
278

North
America

1,771

238

Japan

Total as of Dec. 31, 2023

239

Asia-Pacific(excluding
Japan)
Restof the world

1,663
Total as of Dec. 31, 2022

698
662

152
137

Recurring operating income
Breakdown of recurring operating income by segment
Gucci
Yves Saint Laurent
Bottega Veneta
Other Houses
Kering Eyewear and Corporate
Eliminations

2023
3,264
969
312
212
(7)
(4)

2022
3,732
1,019
366
558
(88)
2

Change
-13%
-5%
-15%
-62%
+92%
N/A

GROUP

4,746

5,589

-15%

Recurring operating margin (% of revenue)

24.3%

27.5%

-3.2 pts(in € millions)— 14

KERING - 2023 Universal Registration Document

Presentation of the Group and Integrated Report
Group profile

Other financial indicators
Free cash flow from operations(1)Net income attributable to the Group(in € millions)
3,176

3,361

(in € millions)

3,614 3,747

3,948
2,983 3,061

3,321(2)

3,208

1,983

2021

2022

2023

Net income attributable to the GroupNet income from continuing operations (excluding
non-recurring items) attributable to the GroupNet debt(3)

2021

2022

2023

(1) Free cash flow from operation is defined on page 89.
(2) Excluding strategic real estate acquisition and disposal.

Equity and net debt-to-equity ratio(4)(in € millions)(in € millions and %)8,504

13,736

14,78316,010

53.1%

2,306
168
2021

1.2%

2022

2023

2021

15.6%

2022

2023

(4) Net debt is defined on page 89.

(3) Net debt is defined on page 89.

Dividend per share(in €)

(5)

14

14

2022

2023

12

2021

(5) Subject to the approval of the Annual General Meeting to be heldon April 25, 2024.

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Presentation of the Group and Integrated Report
Group profile

Key highlights 2023
Strategy, activities and financeFurther integration of Kering's
supply chain
Kering Eyewear acquired UNT, Usinage& Nouvelles Technologies, based in theJura region of France, which plays a
key role in the production of luxury
eyewear components.
Boucheron, meanwhile, strengthened
its production capabilities by acquiringa High Jewelry workshop near Place
Vendôme in Paris.
Kering acquired a 30% shareholding
in Italian couture House Valentino
for €1.7 billion as part of a strategic
partnership with investment company
Mayhoola. The agreement comprises
an option for Kering to acquire 100%of Valentino's share capital no later
than 2028.

Kering strengthened its governanceand organization with a series of top
appointments aimed at enhancing the
stewardship of its Houses, further
elevating its operational expertise andstrengthening its organization (Cf.
section 2 of chapter 2 of this document).

Appointment of Raffaella Cornaggia
as Chief Executive Officer of Kering
Beauté and as a Group Executive
Committee member. Supported by ateam of seasoned professionals, herrole is to develop the expertise ofBottega Veneta, Balenciaga, Alexander
McQueen, Pomellato and Qeelin in
the Beauty category, while also
unlocking the full potential of luxury
fragrance House Creed, which was
acquired in 2023. This acquisition
has given Kering Beauté a platform tosupport the future development ofother fragrances.

Environment, social and governance (ESG)
Selection by the new Science Based
Targets for Nature program. Kering
is one of the first pilot companies
involved in this program, which aims
to give companies advice based on
scientific criteria to help them meetbiodiversity challenges.
Extension of Kering Foundation’scommitment to combat violenceagainst women to include addressing
violence against children, in particularincestuous sexual violence. In
addition, Kering has converted its
corporate foundation into anendowment fund. The purpose ofthis is to step up its commitments
and make it easier for the Foundation
to work with Kering’s Houses, othercompanies and other foundations,but also to raise funds.
Publication of the second edition of
the Kering biodiversity strategy.
Kering has adjusted its trajectory andis now aiming to have a positive
impact on biodiversity by 2025, by
regenerating and protecting an area
representing around six times theGroup's total environmental footprint.
This new chapter in the Group's
strategy focuses on combating
deforestation and the conversion of
ecosystems.

— 16

Kering plots a new course in terms ofsustainability with a Group-wide target
for reducing absolute emissions by
40% between 2021 and 2035. Thistarget, which covers Scopes 1, 2 and 3of the Greenhouse Gas Protocol (GHG
Protocol), represents a necessary stepto accelerate the implementation of
the Group's vision of modern andresponsible Luxury.

KERING - 2023 Universal Registration Document

Level 1 Universal Fair Pay certification
awarded, with all the Houses also
recognized. The Group has analyzed
gender pay gaps in greater depth byexamining the various factors
influencing salaries. Its study found a
1.6% pay gap in favor of men. Priority
actions have been formulated toachieve parity.

Presentation of the Group and Integrated Report
Our governance model3 - OUR GOVERNANCE MODEL
3.1 Stable ownership structure
Breakdown of share capital as of December 31, 2023
Kering is the result of one family's entrepreneurial journey. It is 42.2%-owned by the Artémis holding company, which is controlled by
the Group's founding Pinault family. Alongside this solid core shareholder, the Group's ownership structure has become increasinglyinternational over a period of more than 10 years, reflecting the Group's worldwide growth and transformation. Institutional investors
own 52.7% of the Group's capital.

42.2%

Artémis Family
holding company

52.7%

Institutional
investors

0.7%

Treasury shares

0.2%
Employees
and executive
corporate officers(1)4.2%

Individual
shareholders

Percentage of shares held by institutional investors by main region(2)North America

19.9%

United Kingdom

11.2%

France

6.8%

Asia-Pacific

3.1%

Continental
Europe(excluding France)

7.9%

(1)

Including Kering's employee investment fund.
Excluding other regions and unaffiliated investors: 3.8%.
% of capital held (source: shareholders' identification as of December 31, 2023).
(2)

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Our governance model

3.2 A Board of Directors with a long-term vision for the GroupOur governance structure is aligned with best practice. As well as
ensuring that strategic decisions are taken and implemented
effectively, it is based on a genuine balance of powers.

Unified governance, well suited
to Kering's specific features
Kering has opted to combine the roles of Chairman of the Boardof Directors and Chief Executive Officer, taking the view that thisgovernance arrangement is the one that best suits the Group's
specific features, in which each of its Houses have autonomy. The
arrangement takes into account François-Henri Pinault's special
position as controlling shareholder and his active involvement in
conducting the Group's business affairs, of which he has longstanding, in-depth operational knowledge.

The Lead Independent Director:
ensuring the balance of powers
within the governance structure
and the smooth running of the Board
With a view to achieving a genuine balance of power on its Board,
the Group takes steps to ensure that its membership is balanced,
diverse and mostly independent.
In addition, given that the roles of Chairman of the Board andChief Executive Officer are combined and to provide additional
assurance with regard to the Board's smooth running, in 2019 theBoard of Directors created the role of Lead Independent Director.

— 18

KERING - 2023 Universal Registration Document

The Lead Independent Director is consulted on the schedule ofBoard meetings and may propose additional agenda items to the
Chairman. He/she liaises between the independent directors,
other Board members and Executive Management, and helps
prevent conflicts of interest from occurring. He/she monitors
compliance with the Board's internal rules and takes part in theprocess of assessing the Board of Directors. In coordination with
the Chairman of the Board, the Lead Independent Director also
represents the Board in its dealings with investors concerning
environmental, social and governance matters.
The duties of the Lead Independent Director are detailed in
section 1.4 of chapter 3 of this Document.

The Climate Change Lead:ensuring that climate issues aretaken into account by the Board
In line with the Group's commitments in terms of climate action,
the role of Climate Change Lead was created within the Board of
Directors in 2022.
In coordination with the Chair of the Sustainability Committee
and the Lead Independent Director, the Climate Change Lead'srole includes ensuring that climate issues are considered by the
Board as part of a long-term approach.
The duties of the Climate Change Lead are detailed in section 1.5of chapter 3 of this Document.

Presentation of the Group and Integrated Report
Our governance model

Members of the Board of Directors as of February 28, 2024(1)Véronique Weill

Serge Weinberg

Lead
Independent
Director andChair of theRemuneration
Committee

Chair of the
Appointments
and GovernanceCommittee

Emma Watson

Maureen Chiquet

Chair of the
Sustainability
Committee

Yonca Dervisoglu

5

Independent
Directors

11
DIRECTORS
François-Henri Pinault
Chairman and CEO

2

3

Directors representing
employees

Concetta Battaglia

(1)

(2)

Vincent Schaal

Non-independent
Directors

Jean-Pierre Denis
Climate Change
Lead and Chairof the Audit
Committee(2)Financière Pinault

represented byHéloïse Temple-Boyer

Baudouin Prot

The Annual General Meeting of April 25, 2024 will be asked to approve the appointment of three new Directors, the cooption of Maureen
Chiquet as well as Jean-Pierre Denis' reappointment as Directors (for further information, see chapter 3, section 2.2 "Changes in thecomposition of the Board of Directors to be proposed at the April 25, 2025 Annual General Meeting").
Following the resignation of Tidjane Thiam on January 9, 2024, Jean-Pierre Denis has been the interim chair of the Audit Committee since its
meeting on February 5, 2024.

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Our governance model

Board of Directors: key figures as of February 28, 2024

56%
Independent
Directors(1)56%58 years

Women

Average age

588%

8.4 years

Average attendancerate(2)Average lengthof service

Nationalities(1)

Committees of the Board of Directors as of February 28, 2024
Audit Committee

Remuneration Committee

4 members
Proportion of independent members: 50%(3)Average attendance rate: 89%(2)5 members
Proportion of independent members: 50%(1)(3)
Average attendance rate: 92%(2)BOARD
OF DIRECTORS

Appointments andGovernance Committee
6 members
Proportion of independent members: 60%(1)Average attendance rate: 100%(2)

(1)

(2)
(3)

— 20

Sustainability Committee
7 members
Proportion of independent members: 67%(1)Average attendance rate: 93%(2)Excluding the Directors representing employees in accordance with article L. 225-27 of the French Commercial Code and the AFEP-MEDEF
Code.
Directors' average attendance rate for 2023.
Independence rate at 60% as of December 31, 2023. Following Tidjane Thiam's departure on January 9, 2024, the independence rate of theCommittee is 50%.

KERING - 2023 Universal Registration Document

Presentation of the Group and Integrated Report
Our governance model

3.3 Remuneration aligned with value creationand stakeholder interests
The remuneration of the executive corporate officers includes a
fixed portion and a variable portion. The Board of Directors
establishes the rules for determining remuneration each year
based on the recommendations of the Remuneration Committee
and in accordance with the recommendations of the AFEPMEDEF Code, and they are submitted to shareholders forapproval in the Annual General Meeting.
The remuneration structure and the criteria on which variable
remuneration is based are defined and modified over time toensure that the amounts paid are closely aligned with the extent
to which the Group's strategic financial and non-financial
objectives have been met.

Of the Chairman and Chief Executive Officer's remuneration, 84%
is subject to performance conditions, reflecting his obligation tocreate medium- and long-term value.
The variable portion of the Chairman and Chief Executive
Officer's remuneration is subject to performance conditions
relating to financial criteria as well as corporate, social andenvironmental responsibility, reflecting the Group's ambitious
objectives in these areas, and encouraging him to base his
decisions and actions on ensuring long-term profitability.

Components of the Chairman andChief Executive Officer's remuneration
ANNUAL FIXED REMUNERATION(cash)

ó Consideration of the level and complexity of responsibilities and experienceó Alignment with market practices

ANNUAL VARIABLE REMUNERATION(cash)
Performance criteria

30%

70%

NON-FINANCIAL CRITERIAFINANCIAL CRITERIAClimate10%

Consolidated recurring
operating income
35%

Organization and talent management
10%
Protection of the Group's intangible assets
10%Consolidated free cash flowfrom operations
35%

LONG-TERM VARIABLE REMUNERATION(performance shares)
Performance criteria (3 years)

20%

80%

NON-FINANCIAL CRITERIA
Proportion of women in
executive management roles
10%

FINANCIAL CRITERIA
Consolidated recurring operating income
40%

Biodiversity
5%
Climate5%

Consolidated free cash flow from operations
40%

Kering share price performance: +/-50% impact
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Our governance model

3.4 Group management
Group management consists of the Executive Committee headed
by François-Henri Pinault, Chairman and Chief Executive Officer.
The Executive Committee has 11 members, comprising themanagers of the Group's activities and of the main Houses, alongwith Kering's main operating officers.

The Executive Committee is the Group's key operational bodyand, through its composition and the scope of its remit, reflects
Kering's transformation into an integrated group and theincreasingly international nature of its activities. Kering's
Executive Management and the Chief Executive Officers of the
major Houses hold regular meetings to assess businessdevelopments. In those meetings, discussions are based on
operational and financial metrics.

Executive Committee members
at March 11, 2024

François-Henri Pinault
Chairman and Chief Executive Officer— 22Francesca Bellettini

Jean-Marc Duplaix

Deputy Chief Executive Officer,
Brand Development
President and Chief Executive Officer,
Yves Saint Laurent

Deputy Chief Executive Officer,
Operations and Finance

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Presentation of the Group and Integrated Report
Our governance model

Gregory Boutté

Cédric Charbit

Raffaella Cornaggia

Chief Client and Digital Officer

President and Chief Executive Officer,
Balenciaga

Chief Executive Officer,
Kering BeautéMarie-Claire Daveu

Béatrice Lazat

Chief Sustainability and Institutional
Affairs Officer

Chief People Officer

Jean-François Palus

Bartolomeo Rongone

Roberto Vedovotto

President and Chief Executive Officer,
Gucci

Chief Executive Officer,
Bottega Veneta

President and Chief Executive Officer,
Kering Eyewear

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Our governance model

3.5 Simplified Group structure as of December 31, 2023(1)KERING
Gucci

Balenciaga

Yves Saint Laurent

Alexander McQueen

Bottega Veneta

Brioni
Ginori 1735
Boucheron
Pomellato & Dodo
Qeelin(1)— 24

Chapter 6 contains a list of entities consolidated by Kering (Note 34 to the consolidated financial statements).

KERING - 2023 Universal Registration Document

CORPORATE

Headquarters & Regions

Kering Eyewear
Kering Beauté

Presentation of the Group and Integrated Report
Our value creation model

4 - OUR VALUE CREATION MODEL
Leveraging RESOURCES of exceptional quality
optimized by KERING…

HUMAN CAPITAL• 48,964 employees with unique know-how and creativity• A network of several thousand suppliers located mainly in Europe (92%)
and particularly in Italy (83%)

FINANCIAL CAPITAL• €1,983 million of free cash flow from operations (€3,321 million excluding strategic real estate
acquisition and disposal)• €2,611 million of gross operating investments to support the growth of the group's Houses,
and in particular to develop their retail network comprising of 1,771 stores as well as a global
online presence• A stable and increasingly international shareholder base, along with committed governanceto support the Group's long-term development

INDUSTRIAL CAPITAL• Design and manufacturing work being brought increasingly in-house through French and Italianproduction and excellence centers making precision components for Kering Eyewear;
High Jewelery pieces for Boucheron and Leather Goods for Saint Laurent• Greater logistics capabilities with the construction of new logistics platforms and centers,
which feature cutting-edge technology and meet demanding criteria in terms of environmental
performance

NATURAL CAPITAL• Responsible use of natural resources and raw materials, on which the Group's business depends,
guided by our 2025 sustainability targets• Numerous initiatives to preserve and protect ecosystems, including the decision to stop using
animal fur across all Houses

INTELLECTUAL CAPITAL• Innovations in terms of production (materials and processes), products and client experiences,which are key distinguishing features and help the Group anticipate new consumption trends

SOCIAL CAPITAL• A great sense of ethical responsibility, both within the Group and its Houses and when working
with suppliers and other business partners, combined with strong values that inspire the Group's
actions and business practices• The Kering Foundation, whose mission is to combat violence against women and which recently
extended its remit to include fighting violence against children

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Our value creation model…the Group is helping to
CRAFT tomorrow's Luxury…

A VISION

Embracing creativity for a visionof Luxury that combines heritage
with boldness

A MULTI-BRAND MODEL

built on a long-term approachand on the creactivity of our Houses• Agility• Balance• Responsibility

A STRATEGY

to harness the full growth potentialof the Luxury market• Promoting organic growth• Enhancing synergies and developing growth platforms• Forging strategic partnerships

A VALUE CHAIN

that brings key advantages• Increasing integrationof the value chain's
most strategic components,
combined with flexible
production capacity• Cross-businessexpertise, e.g.,
Kering Eyewear
and Kering Beauté• Shared support
functions and platforms,
framed by the highest
environmental and social
standards

FINANCIAL PRIORITIESthat are clearly established• Sustained investments to enhance the desirability
and exclusivity of our Houses• Solid profitability• Strong cash flow generation• Balanced allocation of capital and resources

TO SUPPORT OUR AMBITION
To be the world's most influential Luxury group in terms of creativity,
sustainability and long-term economic performance— 26

KERING - 2023 Universal Registration Document

Presentation of the Group and Integrated Report
Our value creation model…and CREATESVALUE…

by prioritizing organic growth
and the development of adjacent segments
Revenuefrom Luxury
activities(1)x32013 : €6,470 M
2023 : €19,566 M

Adjacent
segments (2)Revenuein Jewelry+ €1.6x4

billion2013-2023

in revenue
2013-2023

by enhancing the exclusivity
and desirability of its Houses+ 10 pts

increase of the retailstores in the revenuemix
2013-2023€8

Advertising& promotionalspendbillionx4

cumulative
gross operating
investments (3)2013-2023

2013-2023

by increasing profits
and returns to shareholders
Recurring operating
incomefrom Luxury activitiesx3
2013 : €1,683 M
2023 : €4,746 M

(1)
(2)
(3)

Marketcapitalization

Dividend
per share~ x 2.5~ x 3.5

2013 : €19,395 M
2023 : €49,245 M

2013 : €3.75
2023 : €14

Annual revenue of the Luxury Houses as reported in 2013 vs. annual total group revenue in 2023.
Kering Eyewear and Kering Beauté.
Excluding real estate acquisitions.

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Our value creation model…EVERYWHERE
around the world…

5,957
employees

316
stores3,697
employees

152
stores— 28

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Presentation of the Group and Integrated Report
Our value creation model

23,593
employees

367
stores2,978employees

238

stores12,739employees

698
storesKERING - 2023 Universal Registration Document

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Our value creation model…that it SHARES with
its STAKEHOLDERS.

EMPLOYEES• Personnel expenses of around €3 billion• 73% engagement rate among Group employees• 681,915 hours of training (not including safety
training)• 100% of employees covered by ambitious policies
including Baby Leave, which entitles employees to
14 weeks of parental leave

SUPPLIERS AND
BUSINESS PARTNERS• 4,559 supplier audits conducted in 2023 regarding
social, environmental and sourcing matters. 75%
of Tier 1 and 2 suppliers audited in 2023
• Support for suppliers in order to develop an
environmentally and socially responsible supply
chain through technical assistance, continuous
improvement programs, training, etc.
• Creation of a vendor portal for evaluating supplierperformance and sharing information

CREATIVE TALENT AND EXCELLENCE
IN CRAFTSMANSHIP• More than 1,950 learners and employees trainedin 2023 via around 10 programs aimed at achieving
excellence in craftsmanship• Kering Certificate of Influential Luxury program with
HEC Paris• Partnership with the Sustainability Chair set up with
the Bezalel Academy of Arts and Design

CLIENTS• Direct distribution channels guaranteeing a high qualityof service and respect for the Houses' image,representing 78% of revenue and reflecting an
increasingly exclusive distribution strategy• An omnichannel digital experience, with online sales
representing 12% of the Luxury Houses' retail revenue

INNOVATION DRIVERS• More than 8,000 sustainable materials (up from 5,000
in 2022) aligned with the Kering Standards in the
Material Innovation Lab (MIL)• Introduction of new materials such as Lunaform™
(an organic material made from the fermentationof microorganisms) and marine leather developed incollaboration with ICTYOS• Partnership with the Fashion for Good accelerator,
with 151 pilots launched since 2017 including 33 via
the MIL, with the Houses and at Group level• Ongoing investments by Kering Ventures ininnovative new technologies, brands and businessmodels for the future of Luxury. Investments in Mogu
and VitroLabs• Jewellery Innovation Lab (JIL) dedicated to Jewelry

PLANET• 58% reduction in EP&L intensity between 2015
and 2023• 97% of key raw materials traced back to their countryof origin• Adoption of a target to reduce GHG emissions at
the Group level (Scopes 1, 2 and 3) by 40% in
absolute terms• CDP Triple A List (Climate/Water/Forests)• SBTN Science Based Targets for Nature pilot project• Regenerative Fund for Nature: new call for projects
and arrival of Inditex as co-investor alongside Kering• Ongoing efforts to achieve our Circular Economy
Ambition

CIVIL SOCIETY, LOCALCOMMUNITIES AND NGOS

• More than 15 active programs focusing on raw
materials, with a positive impact on local
communities• Change in the Kering Foundation's status to thatof an endowment fund and extension of its remit
to include combating violence against children:
1 million women who have been victims of violence
have been supported over the past 15 years and100,000 young people have taken part in workshops
to raise awareness about violence against women

SHAREHOLDERS AND
FINANCIAL COMMUNITY• A balanced and attractive dividend distribution
policy, with the dividend per share maintained
relative to 2022

— 30

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Presentation of the Group and Integrated Report
Our strategy

5 - OUR STRATEGY
Kering's 2023 results reflect both the slowdown in the Luxury
sector's growth and the impact of the Group's decisions intended
to make its Houses and distribution more exclusive.
Moves to bolster the Group's management, to appoint new
Creative Directors at Gucci and Alexander McQueen, to invest in
iconic Italian fashion house Valentino and to create Kering
Beauté were therefore intended to strengthen key elements of
the Group's strategy and its execution. Major trends in the
Luxury market include:• the sustained appetite of traditional Luxury consumers, who
are increasingly demanding in terms of quality, heritage andcreativity;• the growth of new generations of consumers, who are highly
connected;• customers who are more sensitive to social and environmental
issues;• the evolving expectations of customers, who are looking for
creativity and a more personalized experience;• the challenge for major luxury houses to reconcile exclusivity
with inclusivity, and to attract and retain a diverse array ofcustomers;• greater penetration in emerging markets;• the return and sustained growth of tourism;• a shift in distribution toward an increasingly exclusive model;• the digitalization of the luxury goods industry and theomnichannel approach.

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Our strategy

VisionEmbracing creativity for a vision of Luxury
that combines heritage and boldness

Business model

A multi-brand model built on a long-term
approach and on the creativityof our Houses
AGILITY
BALANCERESPONSIBILITY

Strategy

Harnessing the full growth potentialof the luxury market
PROMOTING ORGANIC GROWTH
ENHANCING SYNERGIESAND DEVELOPING GROWTH PLATFORMSFORGING STRATEGIC PARTNERSHIPS— 32

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Presentation of the Group and Integrated Report
Our strategy

Our vision
Embracing creativity for a vision of Luxury
that combines heritage and boldness
Crafting tomorrow's Luxury
Kering is setting the trend, purposefully shaping the luxury of
tomorrow and making it more responsible, while remaining true
to the exceptional history and heritage of its Houses.
Our ambition is to be the world's most influential Luxury group interms of creativity and sustainability, while creating value overthe long-term.
Creativity and innovation, while respecting heritage
Consumers have new expectations. It remains vital to preserve
heritage and offer high-end expertise, but this is not enough.
Consumers today want to express their unique individuality andour vision of Luxury supports this radical shift. We dare to takerisks, think differently, and constantly propose fresh andinnovative ideas that inspire emotion and enthusiasm for our
exceptional products, as well as allowing all clients to express
their distinctive personality.
What Kering and its Houses propose is an experience. Our values
are closely related to the powerful creative content of our
products, which imbues them with modernity. Those values arecomplemented by the entrepreneurial spirit that permeates eachof our brands and by the vision of our creative teams. Kering is
made up of women and men who strive each day to create
authentic, ever-changing, engaged and inclusive Luxury.
Kering = Caring
We want to play our part in the emergence of a moreenvironmentally friendly world. We are constantly raising ourcreative and production standards to ensure greater traceability
and respect for the planet while at the same time having positivesocial impacts. We aim to create value that is equitably
distributed among all our stakeholders.
Kering is pronounced ''caring'', which is much more than asimple allusion – it gives meaning to everything we do.
Strong business performance
Kering is a Group focused exclusively on Luxury. It has several
Houses that have achieved critical mass in the luxury industry,along with some jewels of the future.These two characteristics
make it highly profitable and cash-generative, and its financial
strength is a genuine growth driver for its brands.

Our business model
A multi-brand model built on a long-term approachand creative autonomy for our Houses
Kering is a global Luxury group that manages the development ofa series of renowned Houses in Fashion, Leather goods andJewelry: Gucci, Saint Laurent, Bottega Veneta, Balenciaga,
Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin,
Ginori 1735, Kering Eyewear and Kering Beauté.

Thanks to our international footprint and the strength of ourHouses combined with the creative autonomy they enjoy and theunique quality of our creations, Kering is among the foremost
players in the luxury goods market. The numerous initiatives
being undertaken by our Houses are making them yet more
attractive and exclusive, and are laying the foundations forsustained, profitable growth.

"Our multi-brand approach is built on a long-term visionand combines agility, balance and responsibility"
AGILITY
Kering provides its Houses with an organizational structure that unlocks their potential for excellence• Continuity
Kering began as a family company more than 60 years ago and is
now controlled by Artemis, a holding company owned by the
Pinault family. Thanks to this strong and stable shareholder,
Kering boasts an attractive and sustainable profile conducive todeveloping its vision in the luxury goods market over the longterm.
• Transformation
From a conglomerate of diversified retail activities until the early
2000s, Kering has transformed itself into a Luxury group focusingon personal goods. We are now an integrated group bringing
together and developing some of the world's most prestigious
Houses. We are also committed to expanding in businesssegments that are adjacent to the Luxury industry and show
strong growth potential, such as Eyewear and Beauty.

• Clarity
Kering helps its Houses realize their full growth potential. At eachstage of their development, they benefit from innovative logistics
platforms, digital services and technological infrastructure, andcommon support functions. By encouraging imagination in all its
forms, our organization fosters strict management while enabling
our Houses to unleash the best of their talent and creativity. The
Group ensures that the brands' success is aligned with their longterm visions and objectives. Thanks to our curiosity, capacity for
self-reflection and big-picture thinking, we can achieve the clarity
necessary to set a successful course for the Group and its Houses.

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Our strategy

BALANCE
Kering's multi-brand model is reaching optimal efficiency• An ensemble of exceptional Houses
Each of our Houses fosters a unique blend of emotions andcreations. Following our successful transformation into a leading
luxury goods player, we boast some of the industry's mostprestigious Houses. They complement each other well with their
distinctive market positions, and each play a role in a coherent
ensemble.
• A multi-brand model
We use our strength as a Group to help forge a distinctive identity
for each House. Our brands find ways to express their uniquecharacters. The Group supports the brands by providing
expertise, exercising its power as a group to exert influence,
improving supply chain reliability and opening up access to
distribution networks, as well as enhancing the client experience,
especially in digital channels. It also encourages the Houses toshare best practice with a view to driving innovation.

• An ensemble of complementary Houses
While our most firmly established Houses are reinventing
themselves and engaging with their audiences in new ways, ourother brands are focused on realizing their full potential andgaining new clients. As a result, due to the variety of its
customers, products, brands and locations, as well as itsbalanced geographical positions, Kering is well placed to weatherchanges in market conditions and seize growth opportunities.

"Our business model is built on exceptional Houses withcomplementary market positions and varying degrees of maturity"
RESPONSIBILITY
All our operations are founded on a responsible economic model.
Our comprehensive, sustainable approach is a structural competitive advantage.
• Toward sustainable Luxury
Can a responsible economic approach change the very nature of
Luxury? For Kering, the answer is a resounding "yes". For ourHouses, sustainability is in line with our vision of modern Luxury.
Businesses have an ethical obligation to be more responsible,reflecting society's new expectations. This situation can also beviewed as an opportunity to grow, and is a source of inspirationand innovation. Methods, materials, resources and products arebeing reinvented, and client usage and expectations arechanging. Kering is changing the way it designs luxury products
by incorporating the criterion of sustainable value, for ourcustomers as well as for society. The targets identified to improve
the Group's social and environmental performance are detailed
in chapter 4 ("Sustainability") of the present document.
• An inclusive approach
The aim of the responsible model is to rethink Kering's
relationships with its stakeholders to ensure fairness andresponsibility. Affecting all dimensions of Kering's ecosystem,from the Group's strategy and the Houses' creative decisions tooperational production, processing and distribution choices, themodel aims to reduce the social and environmental impacts of
the Group's operations. Placing people at the heart of the model
brings an entrepreneurial spirit, engaging employees andstakeholders.

• Creative potential
Responsibility is deeply embedded in the Group's organizational
structure and promotes business growth through ever moreinnovative and attractive products. It is prompting us tomodernize our production processes and closely control all
aspects of our value chain. In a context of limited natural
resources, new high-quality materials are being fashioned andmore sustainable processes devised. We are constantly on thelookout for innovative and disruptive technologies. For ourbrands, this represents a vast expanse of creative territory yet to
be explored.
• Governance and ethics
Built on the Group's core values, Kering's responsible model
leverages an ambitious governance structure. Our governance
was further strengthened in 2023 by the appointment of two
Deputy CEOs, one in charge of Brand Development and one incharge of Operations and Finance. Reporting to the Board of
Directors and taking their lead from its Sustainability Committee,
they drive the Group's sustainability strategy, which the Houses
put into action every day under the guidance of dedicatedexperts. The Group's Ethics Committees, Compliance structure
and whistleblowing procedure for employees and third parties
ensure that Kering's Code of Ethics and principles for responsible
business conduct are properly applied.

"Being a responsible Luxury group means crafting the Luxuryof tomorrow – we perceive change as an opportunity
and a positive prospect for our growth"— 34

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Our strategy

Our strategy
Harness the full growth potential of the Luxury market
Over the past decade, Kering has undergone a profound strategic shift and is now one of the leaders in Luxury. In the coming years, theGroup will continue to strengthen and sustain its growth momentum.

Promoting organic growth• Increasing market share in an industry set to deliver
growth in the medium and long-term
The future of the Luxury goods market is fundamentally bright.
The growth of emerging economies, the development of newaudiences that are culturally open to global brands and theincreasing use of new technologies are major sources of value
creation for Kering. The challenge for each of our Houses is tooutperform its respective market.
• Creativity at our core
Energized by their creative teams, our Houses are setting trends.
Backed by the Group, they are constantly coming up with fresh
ideas and creations that appeal to their customers' desire, inspire
their dreams and tap into their emotions. This approach tocreativity is built on our Houses' heritage and the iconic codesthat form part of their history. We are proud of this alliance
between contemporary creativity and timeless heritage.
• Making our Houses more exclusive
With their unique heritage and creativity, Kering's Houses haveconsiderably raised their profile and enhanced their desirability,and have therefore achieved significant revenue growth over thelast 10 years. They are now substantial in scale, and intend to
become more exclusive.
This "brand elevation" strategy starts with product design,
paying particular attention to the quality of materials and knowhow, and allows our Houses to develop an upscale offering thatcomplements existing ranges. The strategy is implemented at themarketing stage by gaining ever greater control over distribution
and by gradually upgrading directly operated stores. It is
accompanied by a quest for excellence and greater
personalization as regards the customer experience. These
initiatives are supported and amplified by investments incommunications and events.
• Achieving excellence in terms of the customer experience
Offering high quality products and customer experience throughour distribution network is vital. Supporting customers before,
during and after sales are made – in stores or online – is whatenables our Houses to create and sustain lasting connections.

A personalized customer experience helps make each clientinteraction unique. The decisions to have in-house customer
relations and e-commerce platforms, to speed up thedevelopment of distance selling tools and to increase theproportion of sales coming from retail stores we control, wereguided by the same aim.
• Sales efficiency
Our Houses generated 78% of their revenue from their own
distribution networks (stores and e-commerce sites) in 2023. By
having greater control over our own distribution, we can provide
the best possible customer service. Our brands deploy initiatives
to boost sales performance, capitalizing on increasingly effective
merchandizing and in-store operational excellence, supported by
the Group and its dedicated teams. Optimizing same-store sales
performance on an ongoing basis is a key organic growth driverfor Kering.
• Omnichannel approach
Our customers are connected and mobile, constantly moving
between distribution channels, from digital platforms to brickand-mortar stores and vice-versa. Our customer relations
strategy is epitomized by continuity across all communicationand distribution channels. This holistic omnichannel approach is
supported by the directly operated store network, which is being
selectively extended, and by distribution agreements, travel
retail, e-commerce, social media and digital communication.
• Digital expertise, CRM and innovation
A number of projects have been set up to support Kering in its
digital transformation and drive forward its e-commerce, CRM,
data science and innovation activities. Our Digital and Client
Relations team is developing One-to-Many, One-to-Few and Oneto-One tools that are improving the customer experience andcustomer service. We are using artificial intelligence to makebetter predictions in our production planning. The Group's
Innovation team is continuing to instill an internal culture ofinnovation and work on disruptive technologies to enrich ourbusiness models and support our sustainability efforts.

"Digital is simultaneously accelerating and deepening our relationships with our clients,
allowing us to offer them an exceptional shopping experience"

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Enhancing synergies and developing growth platforms
Our integrated model gives us a distinct advantage. Our brands
benefit from Group-wide synergies while preserving their uniquecharacters and exclusivity.
• Resource pooling
Our Houses share certain support functions, allowing them toconcentrate on what really counts: creativity, production quality,
product range development and renewal, client relations, as wellas brand and product communication. The Group pools
resources and streamlines certain strategic functions such as
logistics, indirect purchasing, legal affairs, property, accounting,media relations, IT and the development of new tools (inparticular with respect to the omnichannel approach). Relievedof this burden, our Houses can focus their energy on creativity.
• Cross-business expertise
In order to enrich its brands' offerings, the Group draws on crossbusiness expertise. A notable success story in this domain is
Kering Eyewear, which has been developed internally since 2014.
Our Houses benefit from having a dedicated specialist entity that
ensures full control over the value chain in their eyewear frameand sunglasses businesses, comprising creation, development,
supply chain, brand strategy, marketing and distribution. Our
eyewear unit has been strengthened by the acquisitions of
Lindberg and Maui Jim in the last two years. The creation of
Kering Beauté will enable the Group to develop expertise in the
Beauty segment and help its brands develop this category, while
taking advantage of acquisition opportunities. The Group also
stepped up its ambitions last year with the acquisition of Creed,giving it significant scale and a growth platform.
• Growth platforms and operating efficiency
Kering is constantly improving and adapting its operating model
to ensure that its structures are ever more up-to-date andflexible. The Group has been rolling out an ambitioustransformation project focusing on its information systems,
supply chain and logistics. The aim is to adapt these functions to
the Group's new scope, as well as to changing consumer trends
and client expectations. With shared IT systems and redefinedlogistics operations that include the construction of newwarehouses in the United States (2019), Italy (2020-2021), Asia
(Singapore in 2022) and the Middle East (Dubai in 2023), theGroup's brands will be in a better position to anticipate demand,
respond more quickly and adapt their inventory management inorder to optimize costs.
• Talent excellence
We pay particular attention to the professional development andfulfillment of the women and men working for the Group. Basedon ever-greater mobility, our ambitious worldwide humanresources strategy facilitates the growth of the Houses through ashared pool of talented individuals, expertise and excellence.
Kering helps employees reach their potential and express theircreativity by developing skills and performance, as well as byoffering aspirational development opportunities.
Our policy of promoting diversity, gender parity and inclusivenessis a source of collective intelligence and enrichment. It also lies at
the heart of equal opportunities actions and initiatives taken by
the Group.
Kering pays particular attention to the role of women, who makeup the majority of our employees and clients. Internal systems
are in place to guarantee gender equality, as evidenced by ourambitious global parental policy. The Kering Foundation iscommitted to combating violence against women and children.
Women In Motion, finally, shines a light on women in the arts andculture, since 2015.

"The Group strives to create value for its Houses
and is geared to unlocking their creative potential"
Strengthening the Group's position in the Luxury industry through targeted,strategic acquisitions and partnerships• Development of the brand portfolio in the Group's establishedcategories
Over the years, Kering has developed a powerful portfolio of
dominant Fashion & Leather Goods and Jewelry brands, partly
through acquisitions. In 2023, Kering acquired a 30% stake in
iconic Italian house Valentino, a byword for beauty and elegance,
whose standing in the field of Haute Couture is recognized theworld over. Kering has an option to increase its stake to 100%
between now and 2028.

— 36

KERING - 2023 Universal Registration Document• Kering's expansion in new categories of Luxury with major
value creation potential
Kering wants to take advantage of growth opportunities in its
sector and adjacent business areas. The acquisition of Creed in
2023, a leading high-end luxury fragrance brand, marks animportant milestone in the Group's ambitions in the Beauty
segment. This is a natural extension of its Houses' universe andone that offers significant long-term potential for value creation.

Presentation of the Group and Integrated Report
Our markets

6 - OUR MARKETS
6.1 Major trends in the Luxury industry
The Luxury industry was relatively resilient in 2023, despite geopolitical and macroeconomic uncertainty. However, after a very goodfirst half, there was a significant slowdown in the second half of the year.

2023: a two-speed
year

(1)

Experts and analysts estimate that the luxury market grewaround 8-11%(1) in 2023 compared to 2022 at constantexchange rates.
• The first half of 2023 brought robust growth of around 17% atconstant exchange rates. That was driven in particular by thereopening of the Chinese market, at a time when demand
from US customers was decelerating after several very strong
years.
• Market growth slowed in the third quarter, due in particular
to a higher base for comparison in China. In addition, local
demand fell in most regions of the world because of inflationand macroeconomic uncertainty, and the deceleration wasparticularly visible in Europe. Spending by travelers also fell,particularly among Americans in Europe. These trends
continued into the fourth quarter, leading to more moderate
growth of 4% for the second half as a whole.
• Chinese consumers made a very large contribution to theluxury industry's growth in 2023. Despite a mixed
macroeconomic environment in China, local demandrebounded significantly, although from a less challenging
base in the second and fourth quarters. The number ofChinese people traveling abroad gradually recovered,particularly to Asian destinations, although the upturn inthose traveling to Europe was limited by ongoing constraints
related to airline capacity, the time required to obtain visas
and rising travel and overall trip costs.
• Japan saw double-digit growth, driven by Asian tourists
attracted by favorable price differentials.
• In 2023, the ultra-premium segment continued tooutperform the aspirational segment, which is moresensitive to the macroeconomic environment.
• Growth was driven to a large extent by directly operated
stores: sales taking place through third-party distributors
and online suffered, partly because they are more exposed tothe more aspirational segment.

Source (unless otherwise mentioned for all of section "6 - Our markets"): Bain & Company, Euromonitor, panel of financial analysts.

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2024: more
moderate
growth• Global gross domestic product (GDP) is likely to see
relatively limited growth in 2024 because of the delayed
impact of higher interest rates, particularly in the UnitedStates and Europe. Uncertainty related to geopoliticalevents and the US presidential election, along with thecrisis in China's real-estate market, are factors that requireongoing attention. A recovery in the consumption ofservices, which are also being affected by inflation, could
adversely affect the consumption of goods. Finally, priceincreases for luxury goods are expected to be smaller in
2024.
• In the circumstances, experts and analysts expect the
Luxury sector to see growth of 1-7%, less than in the last
three years. They agree that the first half of the year is likely
to be more difficult than the second. The most optimistic
scenarios involve an upturn in the second half, supported
by significant interest-rate cuts and considerably stronger
growth in Chinese people traveling abroad, particularly toEurope.

Solid medium
and long-term
growth drivers

Experts expect the luxury market to grow at a rate of 5-7%
per year over the medium to long-term (source: BainAltagamma, Euromonitor), driven by four major trends:• the development of an urban middle class in emerging
countries;• growth in local and tourist customer bases;• a larger number of wealthy individuals and an increase in
the value of their assets;• the appeal of the value proposition offered by luxury goods
brands.

A constantly
changing sector
with high entry
barriers

Experts emphasize that the sector's best performers havebuilt the reputation of their Houses over a long period andhave reinforced entry barriers through heavy investment,along with increasing vertical integration. Those players willbe the ones best able to deal with constant changes in the
sector, particularly as regards:• growing demand for personalization in terms of thecustomer relationship and experience through the use of
more sophisticated CRM tools;• the challenge of generating loyalty among domestic
customers;• greater demand for transparency and social andenvironmental responsibility.

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1

6.2 Overview of the Luxury market
I. Size and trends
Size and medium to long-term growth
In 2023, the global luxury consumer goods market generated
revenue of €362-372 billion according to Bain-Altagamma andEuromonitor. The relatively wide range of estimates is the resultof differences in how broadly the Jewelry, Apparel andFragrances & Cosmetics categories are defined.
In the medium to long-term, the Luxury market is expected to
grow by 5-7% per year according to Bain-Altagamma andEuromonitor, similar to the average rate seen in the last 15 years.

Size and evolution of the luxury
consumer goods market(1)(in € billions)

290

290

295

245

245

255

2015

2016

2017

300
260

2018

325
280

2019

315
290

357
350

372
362

260
220

2020

2021

2022 2023E

II. Competitive environment
The Luxury goods market has historically been fragmented, but isnow characterized by the presence of a few large global players,often part of multi-brand groups, as well as a large number ofsmaller independent players. These various players compete inseveral segments, which differ in terms of both product category
and geographic location.

Kering operates alongside the most prominent global Luxury
groups: LVMH, Richemont, Hermès, Chanel and Prada. One key
feature in 2023 was the strong relative performance of the VIC(Very Important Consumer) segment, which was less exposed toinflationary pressure and the deteriorating macroeconomic
environment.

III. Product categories
The global luxury consumer goods market breaks down into
seven main product categories: Apparel, Leather goods, Watches,
Jewelry, Shoes, Fragrances and Cosmetics, and other.
Apparel and Leather goods remain the sector's two largest
categories. Experts saw relatively even growth across all
categories in 2023.

Estimated size of luxury
product categories in 2023(1)(in € billions)

105
80
75

75

72
55
48

56

50
30

Apparel(1)

Leather
Goods

Watches

Jewelry

30

Shoes

25

Perfumes&
Cosmetics

Other(eyewear,textileaccessories)

The infographic depicts the range between Bain-Altagamma and Euromonitor estimates.

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ApparelJewelry

Apparel represented between 21% and 27% of the luxury market
in 2023. The difference between the upper and lower ends of thisestimate results from differences in price ranges taken into
account in the analyses. 2023 confirmed customers' renewedinterest in clothing to be worn at special events and parties –formalwear and casual chic – and China's reopening also had apositive impact. All Kering couture and leather goods Houses
operate in the Apparel category, especially Gucci, Saint Laurent,
Alexander McQueen, Balenciaga, and to a lesser extent Bottega
Veneta, while Brioni operates in the menswear segment.

It remains difficult to estimate the scale of this category because
it is dominated by independent producers. This is why it is thecategory in which experts' estimates vary the most. Overall,however, 2023 was a good year for Jewelry, which was buoyed by
the creativity of producers and the investment value of the items
they make. Major names – specialist jewelry brands and thejewelry ranges of couture and leather goods houses – continued
to gain market share from independents, a trend that has been inplace for more than a decade now. Kering operates in thiscategory primarily through Boucheron, Pomellato, DoDo and
Qeelin. Its Couture Houses, particularly Gucci, offer products
ranging from costume jewelry to high jewelry pieces. Saint
Laurent launched its first fine jewelry collection, while
Bottega Veneta's range of costume jewelry was a big hit in 2023.

Leather goods
The revenue generated by Leather goods in 2023 is estimated at€75-80 billion, representing 21% of the total Luxury goods
market. This category covers all leather products, such as
handbags, luggage and small leather goods (wallets, purses,etc.). The leather goods category has been moving more upscale
in recent years, and sales have been boosted by the resulting
changes in the product mix and prices. However, experts expect
this phenomenon to be less pronounced in the next few years.
Kering operates in this category primarily through the Gucci,
Saint Laurent and Bottega Veneta brands and, to a lesser extent,
Balenciaga and Alexander McQueen.

Shoes
Revenue in this category is estimated at €30 billion. Growth insales of formal footwear such as black shoes (loafers and hybridboots) and pumps stabilized after very strong performance in
2022. The sneakers segment continued to underperform. Kering
operates in this category primarily through the Gucci, Saint
Laurent, Bottega Veneta, Balenciaga and Alexander McQueenbrands.

Watches
In 2022, the Watches category recovered strongly, with revenue ofaround €50 billion, and significantly closed its growth gap withthe other categories. In 2023, it accounted for around 15% of the
Luxury goods market. Kering operates in this category acrossdifferent price points, particularly via Gucci Timepieces andBoucheron.

Perfumes & Cosmetics
This category has estimated revenue of €56-72 billion. On
February 3, 2023, Kering announced the creation of Kering
Beauté in order to develop its Beauty expertise for Bottega
Veneta, Balenciaga, Alexander McQueen, Pomellato and Qeelin.
Beauty is a natural extension of Kering's Luxury universe. On
June 26, 2023, Kering also announced the acquisition of Creed, anestablished high-end luxury fragrance House. The high-end
luxury fragrance segment was worth an estimated €5 billion in
2022 according to Bain and is growing rapidly, with growth
expected to average 15% per year between 2022 and 2026.
Kering also operates in the Perfumes & Cosmetics category
through licensing agreements with certain leading industry
players, such as L'Oréal, Coty and Interparfums, for its Saint
Laurent, Gucci and Boucheron brands.

Other (eyewear, textile accessories, etc.)
The global eyewear market is estimated to be worth around€130 billion (at retail prices) according to Euromonitor data. The
industry comprises several product segments including
spectacles, contact lenses, sunglasses and other products.
Euromonitor estimates annual sales in the luxury eyewear subsegment at €20 billion. In 2023, the category continued to makeprogress. Kering Eyewear is positioned as a leading player in thestrategically important high-end eyewear segment, with acomprehensive, balanced portfolio comprising brands such as
Gucci, Cartier, Alaïa, Alexander McQueen, Balenciaga, Bottega
Veneta, Brioni, Chloé, Dunhill, Montblanc, Saint Laurent andPuma. The eyewear market is gradually consolidating throughacquisitions: for example, Kering added to its eyewear brandportfolio in 2021 by acquiring Denmark's Lindberg and in 2022 byacquiring Maui Jim.
Overall, the products that make up this "Other" category
represent revenue of €25 billion.

IV. Sales by region and nationality
Sales by region
Since 2021, the American continent has established itself as theworld's largest luxury consumer goods market, overtaking
Europe. However, growth in the American market has slowed
since the end of 2022, and the deceleration became more marked
in early 2023.

Although the European market was resilient in 2022 and the firsthalf of 2023, it has seen a sharp slowdown since the third quarterof 2023. Local consumer spending has been affected by inflationand higher interest rates. Tourist numbers also fell relative to theprevious year, particularly among those traveling from America,
although from a very high base. In addition, the increase in
Chinese tourist numbers was smaller than initially predicted.
Japan, meanwhile, posted strong growth, underpinned mainly by
Asian tourists attracted by large price differentials.

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Our markets

In mainland China, the situation was positive but mixed, and thebase for comparison varied because of the "zero-Covid" policy
adopted the previous year. While the first half of 2023 broughtstrong growth from a low base, growth in the third quarter was
significantly lower because of a high base for comparison.
Because China's lockdown measures peaked in December 2022,
the base for comparison then fell again in the fourth quarter.

Sales by nationality

Worldwide luxury market:
estimated breakdown by region in 2023(2)American consumers' share of total sales fell by three points in
2023 relative to the previous year, while that of European
consumers was down one point.

(in € billions)110

In 2023, China's reopening boosted growth in spending by
Chinese consumers, who accounted for 22-24% of luxury goods
sales, five percentage points more than in 2022. However,
Chinese consumers show further growth potential in 2024,
particularly due to the expected increase in the number ofChinese tourists visiting Asia and Western Europe.

Worldwide luxury market:
estimated breakdown by nationality in 2023(2)

110
95

31%
29%
60

55

23%
21%

24%
22%

30

15%
13%

20
15
Americas

Europe

China

Japan

Rest of
Asia

Rest of
the
world

8%
6%

AmericanEuropeanChineseJapanese

6%
4%
Other
Other
Asian
nationalities
nationalities

V. Distribution channels
Retail channel
In 2023, the retail channel accounted for 52% of in-person sales in
the worldwide personal luxury goods market, higher than the2022 figure of 50%. For the first time, therefore, the majority ofthe market's sales came through the retail channel. A solid
network of directly operated stores is crucial to a luxury brand's
success, since it strengthens its relationship with end-consumers,
gives it control over its commercial offering and allows it tosafeguard its brand image.
Kering's Houses generate a much larger proportion of their sales
from the retail channel (78% in 2023). This is due to Kering's
strategic aim of giving its customers the best possible service,
and also reflects the critical mass of its brands and their exposure
to Leather Goods, a category in which brands control theirdistribution more tightly.

Wholesale channel

For Kering's Houses, the wholesale channel (which also includes
other revenues) accounted for 22% of revenue in 2023. That
proportion has fallen in recent years due to the Group's strategy
of increasing its control over distribution and working with fewer
partners.

E-commerce
In 2023, online sales underperformed sales in physical stores andmade up 20% of the Luxury market, compared to 21% in 2022.
This includes sales made through brand websites (retail channel)
and via department store websites and e-tailers (wholesale).
Kering's Houses manage their e-commerce sites directly. In 2021
and 2022, they took greater control in terms of multi-brand
distribution, moving away from wholesale models and toward
e-concession models. In 2023, online sales accounted for around
12% of retail sales on average, three points less than in 2022.

The wholesale channel mainly consists of department stores,
independent high-end multi-brand stores and franchise stores,
and accounted for approximately 48% of the total worldwide
personal luxury goods market in 2023. This channel usuallyaccounts for a larger percentage of sales in the Ready-to-Wearand Watches categories, and for brands at an early stage of theirdevelopment.

(2)

The infographic depicts the range between Bain-Altagamma and Euromonitor estimates.

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Our Houses

7 - OUR HOUSESFounded in 1921

2023 key figures

Breakdown of revenue by region€9,873
million7%€3,264
million7%

Rest ofthe world

21,086

Japan

Leather goods

24%

Shoes

23%

North
America

Breakdown of revenue by distribution
channel

employees (averagefull-time equivalent)538

directly operated stores

— 42

53%

39%

Asia-Pacific(excluding Japan)

20%

WesternEuroperevenuerecurring operating
incomeBreakdown of revenue by productcategory

KERING - 2023 Universal Registration Document

91%

Sales directly
operated stores

15%

Readyto-wear

7%

Other

5%

Watchesand Jewelry

Number of directly operated storesby region
68

Rest ofthe world

183

Asia-Pacific(excluding Japan)

103

WesternEurope9%

Wholesale and otherrevenu (including
royalties)

72

Japan

112

North
AmericaPresentation of the Group and Integrated Report
Our Houses

Business concept and strategy
Founded as a leather goods shop in Florence in 1921, Gucci has
since become one of the world’s most recognizable Houses
alongside Chanel, Louis Vuitton, Dior, and Hermès. The House’stimeless appeal lies in its Italian heritage and its positioning at
the intersection of fashion and luxury.
Gucci represents the pinnacle of Italian artisanal excellence, andits designs are renowned for their extremely high quality andattention to detail. Gucci has a history stretching back over
100 years and it is constantly redefining Luxury by focusing on
creativity and innovation through its collections of ready-to-wear
women’s, men’s, kids’ leather goods, shoes, bags, jewelry,
watches, home décor, and more.
Gucci strategically balances Fashion and Luxury in its productportfolio, showcasing a range that includes both entry-level andhigh-end creations. The House’s commitment to expansion
encompasses core categories, including travel and the iconic
handbag lines. Rooted in its history as a Leather goods brand,
Gucci demonstrates a steadfast commitment to preserving andelevating its rich heritage.
In recent years, Gucci has significantly streamlined both its offlineand online wholesale presence while maintaining strategic
partnerships through concessions. Its network comprises
538 directly operated stores, together with selected specialty
stores and franchises. Its digital footprint mainly consists of its
website, active in 36 markets, along with a limited number ofdigital concessions.

The House invests in preserving craftsmanship and enhancing
product quality while promoting creativity in all its productsegments, currently developing a long-term elevation conceptthat extends beyond the raw materials used in collections. This
concept covers project including exclusive events, customer
experiences, and brand experiences. In Florence, Gucci ArtLab ispoised to play a pivotal role in this initiative, serving as a
futuristic hub dedicated to the in-house prototyping andsampling of the House’s leather goods and shoes, seamlessly
blending tradition with innovation. In addition, the Gucci Atelier
in Novara brings creative visions to life, with its talented fashion
designers and craftspeople, developing pieces and creating
designs for the brand's ready-to-wear collections.
Gucci Equilibrium embodies the House’s dedication to fostering
positive change with strong, enduring environmental and social
sustainability strategies. The House is dedicated to advancing
transparency, accountability, and circular innovation by
conscientiously minimizing Gucci’s environmental impact. Social
commitments include promoting diversity, equity, and inclusion.
In 2023, Gucci became the first Italian House to obtain theCertification for Gender Parity voluntarily, covering key indicatorssuch as culture, governance, human resources, opportunities for
women, gender pay equity, and parenting support.

Key highlights 2023
Gucci’s 2023 strategy enhances the core fundamentals of thebusiness. The House continued to expand its reach among
upscale clients, maintaining a healthy demographic mix acrossgenerations.
The physical store network expanded through a consistent
program of refurbishments, focusing on key flagship stores suchas those in London (New Bond Street) and Milan (ViaMontenapoleone). At the same time, Gucci strengthened its ecommerce operations in key countries. The House also enhanced
omnichannel services to create more seamless customer
journeys, attracting more remote customers through Gucci 9, its
global client service, and opening Gucci 9 offices in China.
Additionally, efforts were made to expand in-store digital services
and implement Collect In-Store.
Creativity remains the cornerstone of the brand under theguidance of the new Creative Director, Sabato De Sarno. De Sarno
adeptly draws upon the House’s rich heritage and iconic codes
while strengthening its position of authority in fashion, luxury
and Florentine identity. A noteworthy illustration is De Sarno’s
debut collection, Gucci Ancora: marked by a keen sensibility forcontemporary culture and fashion, it remains loyal to the brand’s
illustrious history, embracing heritage codes.

(1)

Gucci’s rich heritage was also prominently displayed in the 2023
campaign schedule, anchoring Gucci’s legacy in a tradition that
continues to inspire generations. Gucci highlighted iconic pieces
such as its Jackie 1961, Horsebit 1955, and Bamboo 1947, alongwith the signature Horsebit 1953 loafer, while introducing its
second Gucci Valigeria campaign. The House’s 102-year-longhistory was further encapsulated in the exhibition itineraries ofGucci Cosmos and Gucci Visions, offering historical explorations
that provided a visual journey encompassing both tradition andinnovation.
Throughout the year, Gucci made significant adjustments to its
operating model, including strengthening its corporate
governance and overhauling the management of its creative
studios. The House appointed a new President and Chief
Executive Officer, a new Chief Brand Officer in charge of brandand customer engagement, and a new Chief Industrial
Operations and Supply Chain Officer.
For 2024 and beyond, the House is poised to elevate Luxury
quality, exclusivity, and fashion creativity, thereby solidifying thebrand’s long-term presence. Seizing this opportunity, Gucci aims
to fortify business fundamentals and streamline processes forenhanced efficiency. This initiative includes strengthening thenew operating model to consolidate leadership in the Luxury
industry, achieve its ambitions(1) and ensure sustainable longterm growth.

The presentation of the latest Capital Markets Day is available on the Kering website (Finance / Publications / 2022 Capital Markets Day – Gucci
presentation).

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Founded in 1961

2023 key figures€3,179millionrevenue

Breakdown of revenue by region
8%
5%

Japan

Breakdown of revenue
by distribution channel

Shoes

9%

North
America308

directly operated stores

Other

81%

Sales in directly
operated stores

26

Rest ofthe world

114

Asia-Pacific(excluding Japan)

69

WesternEurope

19%

35

Japan

Including royalties to the total revenue, this product category represented 72% of the total in 2022.

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12%

Ready-to-wear

Number of directly operated storesby region

Wholesaleand other revenue(including royalties)

— 44

8%

31%

WesternEurope5,112(1)

Leather goods(1)Asia-Pacific(excluding Japan)

27%

employees (averagefull-time equivalent)

71%

29%

Rest ofthe world€969 million
recurring operating
incomeBreakdown of revenue by productcategory

64

North
AmericaPresentation of the Group and Integrated Report
Our Houses

Business concept and strategy
Founded in 1961 by Yves Saint Laurent, the House is one of themost prominent and influential fashion names in the world.
Originally a House of Haute Couture, Saint Laurent revolutionized
the way fashion and society merge and interact in 1966 with theintroduction of prêt-à-porter, high-end ready-to-wear produced
on a larger scale than the exclusive collections.
Since then, in addition to women’s and men’s ready to wear,
Saint Laurent’s offering has expanded to include shoes,
handbags, small leather goods, jewelry, scarves, ties andeyewear, defining a unique highly desirable and contemporary
silhouette.
Under the creative vision of Anthony Vaccarello and theleadership of Francesca Bellettini, Saint Laurent has built verystrong foundations for sustainable, long-term growth. Much of
the House’s success stems from its uncompromising approach tocreativity, quality and craftsmanship. With clear and distinctive
codes expressed in continually compelling collections, Saint
Laurent has become one of the most desired houses in Luxury.

Through its network of 308 directly operated stores as ofDecember 31, 2023, along with its digital platforms and carefully
selected wholesale clients, Saint Laurent competes globally withthe most exclusive houses. Retail excellence and strong client
relationships have been strategic priorities for Saint Laurent for
many years. With a new architectural vision for its retail stores
introduced in 2023, the House will further enhance the client
experience.
As part of its strategy to take full internal control of prototyping
and product development, Saint Laurent opened the Atelier
Maroquinerie, a new 28,700 square-meter (or 309,000 square feet)
Centre of Excellence for accessories and leather goods. Locatedin Scandicci, Florence, the Atelier will be home to Saint Laurent’s
full array of research and development activities, encouraging
innovation in terms of materials and components used to create
pieces that express the timeless heritage and contemporary
appeal.

Key highlights 2023
In 2023, Saint Laurent continued to build on its heritage while
capturing the zeitgeist, without ever compromising its image or
position.
The House further extended its store network: net of closures, it
added 28 new stores around the world, including the brand’s
largest flagship on the Avenue des Champs-Elysées in Paris. That
store features a new concept that reflects the brand’s elevation
strategy and offers customers a one-of-a-kind luxury experience.
Consistent with its focus on retail, Saint Laurent further
rationalized wholesale distribution in the United States and EMEA
in 2023, focusing on the most qualitative partners. The House
has thus reinforced the exclusivity and quality of its distribution,
guaranteeing the integrity of the brand while facilitating
optimized management of its assortment.

The gradual return of international travel had a favorable impact
on store footfall in some regions in 2023. Saint Laurent's clientadvisors treat each visitor as a regular customer, helping to
generate loyalty and engagement among both locals andtourists.
With the opening of the Atelier Maroquinerie in Scandicci,
Florence, Saint Laurent further demonstrated its commitment tosustainability, bringing new life to a long-abandoned building
and regenerating the local area.
Saint Laurent expanded its cultural reach and impact in 2023
with a series of exhibitions and collaborations with leading
artists. Saint Laurent Productions premiered "Strange Way ofLife" by Pedro Almodovar and "A trailer of a movie that will neverexist: Phony Wars" by Jean-Luc Godard as official selections in
the 76th Cannes Film Festival.
In the future, Saint Laurent will continue to implement its brandelevation strategy through its commitment to creativity andexcellence in execution. The House is confident in sustaining its
planned growth trajectory(1).

(1)

The presentation of the latest Capital Markets Day is available on the Kering website (Finance / Publications / 2022 Capital Markets Day – YSL
presentation).

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Founded in 1966

2023 key figures€1,645
millionrevenue

Breakdown of revenue
by region

Breakdown of revenue
by product category

7%

29%

WesternEurope13%

3,891

Breakdown of revenue
by distribution channel

17%

North
Americarecurring operating
income288

directly operated stores

3%

Other

10%

Ready-to-wear

Number of directly operated storesby region
82%

Sales in directly
operated stores

23

Rest ofthe world

114

Asia-Pacific(excluding Japan)

59

WesternEurope18%

Wholesaleand other revenue(including royalties)

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10%

Shoes

Japan

— 46

Leather goods

Asia-Pacific(excluding Japan)€312 million

employees (averagefull-time equivalent)

77%

34%

Rest ofthe world

44

Japan

48

North
AmericaPresentation of the Group and Integrated Report
Our Houses

Business concept and strategy
Signature craftmanship, extraordinary creativity and Italian
heritage have established Bottega Veneta as a successful Luxury
fashion House since its founding in Vicenza in 1966. Bottega
Veneta is regarded as a legacy House, globally recognized for its
leather mastery and its signature intrecciato. Its aesthetic ishighly regarded for its bold discretion, celebrating individuality,
embracing non-conformity, honoring timelessness, and paying
homage to cultural advocacy.
With the appointment of Bartolomeo Rongone as CEO in 2019and Matthieu Blazy as Creative Director in 2021, Bottega Veneta
continues to elevate its brand positioning within the ultra-highend Luxury universe. With an instinct aligned with the founding
principles of Bottega Veneta - Labor et Ingenium, i.e.
craftmanship and creativity -, Matthieu Blazy’s collections havebecome highly acclaimed.
In recent years, Bottega Veneta has successfully evolved from aleather House to a luxury House, with collections highlighting afull silhouette and a wider range of products, appealing to aninternational clientele of men and women. This strategy has
propelled Bottega Veneta into new territories: while continuing tohighlight subtlety, the House is engaging with a broader audience

to unveil its full potential, maintaining a very balanced mix of
new and existing customers.
Bottega Veneta is one of the very few Luxury brands offering
lifetime warranty on its bestselling bags, honoring its philosophyof products designed to last forever, supporting its strategy ofprotecting icons that appreciate over time and its commitment tolong-term sustainability.
The business and creative teams are working hand in hand toincrease brand desirability and awareness with a focus on longterm organic growth. Bottega Veneta’s strategy is centeredaround strict price discipline, selective distribution and"iconization" of key products. Additionally, Bottega Veneta’s
retail development strategy is centered around opening key
image flagships, Very Important Clients spaces (VIC), strategic
traffic stores and reducing its wholesale network.
As of December 31, 2023, the Bottega Veneta retail network
consisted of 288 directly operated stores across all key
geographies, as well as e-commerce capabilities across
46 countries.

Key highlights 2023
Bottega Veneta continued to affirm its long-term strategy with anultra-high-end Luxury positioning, focusing on brand elevationand desirability. As regards fashion shows and communication
campaigns, the House remained at the forefront of international
fashion weeks and received high praise from specialist critics.
In addition to its best-selling handbags and existing categories,
Bottega Veneta expanded its product portfolio by introducing its
Home collection. At the same time, the House continued tobolster its shoe category, inaugurating its first dedicated shoe
atelier in Vigonza, Riviera del Brenta, which has a long tradition of
footwear production. The building spans 5,500 square meter (or59,000 square feet) and is LEED (Leadership in Energy andEnvironmental Design) certified. To preserve its know-how,
Bottega Veneta established Accademia Labor et Ingenium, a newschool dedicated to fostering the next generation of artisanal
talent.
A significant milestone was achieved this year with the brand’s
inaugural fashion show in China, coupled with a series ofimpactful campaigns celebrating key moments during Chinese
New Year and Qixi. Furthemore, Bottega Veneta’s communication
initiatives remained rooted in cultural relevance and advocacy,balancing exclusivity with inclusivity for larger audiences.
Notable moments included the Vieni a Vedere installation by
Gaetano Pesce during Salone del Mobile in Milan, Bottega for
Bottegas providing an international platform to local artisans,the opening of The Square celebrating artists in São Paulo,sponshorship of the LEEUM museum in Seoul, and ongoing
publishing partnerships with BUTT, Magma, and Air Afrique.
Finally, Bottega Veneta elevated its retail experience with key
flagship openings in Paris Avenue Montaigne, London Sloane
Street, Dubai Mall of Emirates, and innovative pop-ups
showcasing innovative creativity worldwide.
In 2024, the House will continue to emphasize its ultra-high-end
positioning across all client touchpoints and will launch its
fragrance and candle categories. Additionally, Bottega Veneta is
set to extend its Italian and global presence by inaugurating its
new headquarters in Piazza San Fedele in Milan, expanding its
existing industrial operations with larger and innovative sites in
Veneto, Italy and pursuing the elevation and expansion of its
directly operated retail network.

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Other Houses
COUTURE, LEATHER GOODSART DE VIVREJEWELRY

2023 key figures€3,514
millionrevenue

Breakdown of revenue
by region

Breakdown of revenue
by product category37%

7%Asia-Pacific(excluding
Japan)

Rest ofthe world

3%

Other

18%

Leather goods

32%

27%

WesternEurope9%26%€212 million

Japan

9,020

Breakdown of revenue
by distribution channel

15%

North
Americarecurring operating
incomeemployees(average full-time
equivalent)618

directly operated stores

Shoes
Watchesand Jewelry

26%

Ready-to-wear

Number of directly operated storesby region
72%

Sales directly
operated stores

31

Rest ofthe world

287

Asia-Pacific(excluding Japan)

131

WesternEurope28%

Wholesaleand other revenue(including royalties)

87

Japan

82

North
America— 48

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Presentation of the Group and Integrated Report
Our Houses

Founded in 1917

Business concept and strategy
Founded in 1917 by Cristóbal Balenciaga, the House of
Balenciaga was established in 1937 in Paris, where it played amajor role in defining the key trends in Fashion. From the 1990s
to the early 2000s, the House experienced a rebirth, extending its
product universe beyond its core Ready-to-wear segment toinclude handbags, and developing new lines of Shoes andAccessories. Demna was appointed Artistic Director of Balenciagain 2015. His innovative approach, combined with his mastery oftechniques and use of volumes, make him a powerful force intoday’s creative world.
Balenciaga has recently re-entered the Haute Couture segment
after a 50-year hiatus, further consolidating the House’s status asa fashion authority. Its creative vision is also realized throughvarious collaborations with artists, cultural and technologicalpartners, as well as other brands.

Retail and e-commerce development have been Balenciaga’s
priority in recent years, with the aim of increasing control over its
distribution. The House has pursued its retail expansion and the
Balenciaga online store has strengthened its presence across all
territories since migrating to a new and directly operated
controlled platform. This focus on directly operated retail has
opened business development opportunities, by increasing theHouse’s omnichannel capabilities and improving time to market.
Balenciaga is fully committed to pursuing sustainable
development by fostering the values of inclusion and diversity
and promoting responsible Luxury.
As of December 31, 2023, the House had a network of 262 directly
operated stores and its online activity covers 49 countries acrossall Regions.

Key highlights 2023
In line with its positioning and strategy, Balenciaga achieved
some significant strategic milestones in 2023. Notably,
Balenciaga kept expanding its store network worldwide, with
openings of additional flagship stores featuring the latest Raw
Architecture concept and larger sizes.

Communication-wise, Balenciaga unveiled its first ever brandambassadors. Nicole Kidman, Michelle Yeoh, Isabelle Huppert
and PP Krit Amnuaydechkorn, all of whom already had a closeand solid relationship with Balenciaga, will continue to grow it in
an official capacity.

The House also continued to display its new collections throughhighly meaningful and impactful fashion shows. Balenciagapresented its Winter 23 collection at the Carrousel du Louvre in
Paris in March, focusing on craftmanship and the art of making
clothes. The Summer 24 collection was showed on a red velvetcurtained set at the Hôtel national des Invalides in Paris featuring
a special cast of Demna’s closest community. Its Fall 24 collection
showcased the artistic director’s interpretation of L.A.’s fashioncode on the streets of Los Angeles.

Balenciaga announced its support for the National Children's
Alliance (NCA) NGO via a multi-year partnership. The House
wants to help ensure the safety and well-being of children, anddevelop cognitive-behavioral therapies to help children deal withtrauma. Through this partnership, Balenciaga provides the NCA
with its creativity and media space resources.

When it comes to Haute Couture, Balenciaga’s 52nd Couturecollection, reinvested the House’s heritage, combining archives
reinterpretations and modern ways of acknowledging traditional
materials. Along this show, Balenciaga announced the expansionof the historic address of 10 avenue George V in Paris.

Last but not least, the House kept pursuing its commitment to
reduce the environmental impact of its creativity. Balenciaga wasnotably recognized for its work in developing alternative, moresustainable materials, and has received for the second year in a
row the PETA Best Luxury Product for the Balenciaga Maxi
Bathrobe Coat, introduced in the Summer 24 collection, made of
Lunaform™, a biomaterial developed specifically for the House.

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Our Houses

Founded in 1992

Business concept and strategy
Alexander McQueen is an artistic British Luxury fashion House
founded by Lee Alexander McQueen in 1992. Representing thepower of individuality, subversive strength and defiant elegance,
the House is inspired by the juxtaposition between tradition andinnovation, light and darkness, man and machine and nature –real and imagined. At the heart of the name is a profoundhumanity and the desire to provoke an extreme emotional
response through masterful execution. House references
demonstrate a passion for storytelling and a sense of history is
also central to the narrative. With an atelier in Central London,

the process behind every McQueen garment is rigorous andattention to detail is second to none. Collections are finished andfitted on the body or stand, predominantly by hand. Today aninternationally celebrated fashion name, Alexander McQueen is
known for the expression of creativity in its purest form and for its
wish to instil authority and confidence in the wearer.
As of the end of 2023, Alexander McQueen’s distribution covered
23 countries worldwide, through a network of 113 directly
operated stores.

Key highlights 2023
2023 was characterized by sustained momentum incommunications, further penetration in key product categories
like Women’s and Men’s Ready to Wear but particularly in Leather
Goods and formal Shoes.
In March, the Autumn/Winter 2023 womenswear show,"Anatomy", marked the return of the House to the prestigious
Paris Fashion Week calendar after more than 3 years absent, atthe same time celebrating the opening of its largest flagship store
worldwide in rue Saint-Honoré. The House continued to focus onits signature Jewelled Satchel bag, as well as launching theunique Peak bag inspired both by the iconic silhouette of the
McQueen tailored jacket and the signature McQueen Knuckle.
In addition, the House kept on showing its strength andconnection with the most relevant talents in the world.
Significant moments include a series of custom-made looks for
Beyoncé’s record-breaking world tour as well as several iconic
red carpet moments during awards season.
To promote the main collections of Spring/Summer 2023 andAutumn/Winter 2023, the campaigns featured star-studded casts,
evoking the power and beauty of the McQueen woman.
September saw the opening of a unique exhibition at the Design
Museum in London, in partnership with the British Fashion
Council and sponsored by Alexander McQueen. The exhibition
celebrates the 30th anniversary of the BFC NewGen initiative— 50

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which champions and supports young designers and of which
Lee Alexander McQueen was the first recipient in 1993.
Throughout the year, the House’s store network wasstrengthened with openings in Europe, the United States,
Southeast Asia, South Korea and Greater China. The House kept
increasing focus on local customers and on enhancing its online
presence.
The Spring/Summer 2024 fashion show in Paris in September
symbolized the conclusion of a highly successful partnership thatbegan when Sarah Burton became Creative Director of the
fashion House in May 2010, having previously worked alongside
Lee Alexander McQueen for more than 14 years. Seán McGirr was
appointed new Creative Director of the House. He will bring a
powerful creative language to Alexander McQueen while building
on its unique heritage.
Regarding philanthropic and educational endeavors, the House
maintained its commitment through continued sponsorship of
the Tower Hamlets youth arts community group, A Team Arts
Education, fashion scholarships to young designers at Central
Saint Martins, the Sarabande Foundation, as well as recurring
support to educational initiatives through the program ofworkshops, projects and fabric donations to a network ofeducational institutions around the UK.

Presentation of the Group and Integrated Report
Our Houses

Founded in 1945

Business concept and strategy
Since 1945, the Brioni style is one of effortless modern elegance.
It stems from excellence through in-house sartorial savoir-faireand perpetual quest for the finest materials.
Founded by Italian master tailor Nazareno Fonticoli andentrepreneur Gaetano Savini, the House offers, in addition to its
state-of-the-art Bespoke service, Ready-to-wear, Leather goods,
Shoes and Accessories, both for formalwear and leisurewear, as
well as fragrances.
All these pieces are meticulously handmade in Italy by expert
artisans and most of the production is made at the Brioni ateliers
established in 1959 in Penne, a small town in the Abruzzo region.
Brioni products are designed, crafted, and cared for in the spiritof ‘slow luxury’, a value that is instilled in the people andcommunities behind the House. Every suit is created through theBrioni method, a process which requires 220 steps,
7,000 meticulously hand-made hidden stitches, and more than
24 hours of workmanship.
Over the years, Brioni strengthened its global reputation notably
through its link with the world of cinema and the red carpet.
Brioni’s offering is available through a network of 43 directly
operated stores, located in Western Europe, North America,
Japan, South Korea and Greater China. This distribution network
is further completed by franchise stores and wholesale partners,
as well as by e-commerce.

Key highlights 2023
House ambassadors since last year, Jude Law and Raff Law, werefeatured in the Spring-Summer advertising campaign. The Fall
advertising campaign, echoing the timelessness of Brioni’s
bespoke tailoring, featured actor Glen Powell.
In China, Wang Kai continued his ambassadorship for bothseasonal collections as well as for the fragrance campaigns.
Wang Kai opened a brand installation in Shenzhen MixC mall,focused on the House’s heritage as well as on the Bespoke
service.
The House developed its e-commerce operation with theaddition of the brioni.cn website in China, along with the online
launch of its Made-to-Order knitwear service, which is now agenuinely omnichannel service. Social media presence was
extended in Japan through the launch of an official LINE account.

Throughout 2023, capsule collections generated further newness
and product diversification starting with Chinese New Year
sportswear and Riviera. It was followed by La Donna women’s
capsule in both seasons, the charitable capsule collection incollaboration with Wang Kai and the Mangrove Conservation
Foundation (MCF) China and ended the year with the Travel andWintertime capsules. The new Eau de Parfum Essentiel marked theHouse’s first 100% natural-origin fragrance.
Brioni new store concept was applied to the renovated Milan and
Zurich stores, and to new openings in Kyoto, Dallas, Nanjing andHangzhou. Franchisee stores were expanded in Asia and the
Middle East while wholesale openings focused on North America.
Brioni also completed the conversion of its South Korean
operations in retail stores.
In July, the House unveiled new packaging, with has been
freshened up to reflect its esthetic vision while respecting its
sustainability objectives.

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Our Houses

Founded in 1735

Business concept and strategy
The history of the Ginori Manifattura (today Ginori 1735) began in1735 in Doccia, a small town close to Florence. Inspired by his
passion for white gold, Marquis Carlo Andrea Ginori started aporcelain factory which was destined to become a worldwide
icon of style.
Since the XVIIIth century, Ginori 1735 has been one of the finest
expression of Italian excellence in pure porcelain and design,
always associated with great names in fashion, art, design,architecture, film and decor.

collections, art and living objects like fragrances, lamps,
furniture, fabrics, crystalware and cutlery.
In addition to the historical Florence boutique, the House has
stores in Milan, Paris and London. The House’s products can also
be found in some of the most prestigious department stores in
Europe, America, Middle East and APAC and can count on
important partnerships worldwide with some of the mostprestigious luxury hotel chains and among the most refinedrestaurants.

Today, the brand creations represent a blend between centuriesold artistic craftsmanship and innovation, including tableware

Key highlights 2023
Since April 2022, Ginori 1735 partnered with actor and artist Jake
Gyllenhaal to launch a new campaign, shot by Gray Sorrenti,
celebrating the love of art. The collaboration marked the turning
point for an international brand deeply rooted in the Italiancraftsmanship history but with a resolutely future-facing
approach.

A new chapter for the brand has also started in April 2023, during
Milan Design Week, when Ginori 1735 presented Domus, acollection of lamps, furnishings and fabrics conceived anddesigned by Luca Nichetto and his design Studio. The collection
embodies sculptural beauty, with colors, shapes and materials
that pay homage to tradition while embracing contemporary
design.
Finally in October 2023, Ginori 1735 launched the new Oriente
Italiano Gold collections, in hand-decorated porcelain, featuring
the two new colors: Aurum and Rubrum.

— 52

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Presentation of the Group and Integrated Report
Our Houses

Founded in 1858

Business concept and strategy
Frédéric Boucheron founded his eponymous House in 1858 and it
has been built up by four generations of his direct descendants.
The first major contemporary jeweler to open a store on Place
Vendôme in Paris, Boucheron is now an exponent of excellence inJewelry, High Jewelry and Watchmaking.
Boucheron operates in a rapidly growing market, and stands out
through its avant-garde approach. The House is now headed by
two women, Hélène Poulit-Duquesne (CEO) and Claire Choisne(Creative Director), who are taking a innovative and creative
approach to High Jewelry, seeking to push back its limits andoffer collections that allow wearers to express their own style andunique personality regardless of gender.
As of December 31, 2023, the House had a network of 57 directly
operated stores around the world, and worked with a limited
number of third-party distributors.

Key highlights 2023
In January 2023, Boucheron unveiled Like a Queen, its new High
Jewelry collection. Looking through the House's archives,
Creative Director Claire Choisne was inspired by a brooch given to
Queen Elizabeth II for her 18th birthday: a piece that was of
exceptional sentimental value to the Queen, who wore it all her
life. The brooch's Art Deco-inspired motif was reinterpreted toenliven a range of pieces in multiple colors.

In early September Boucheron opened a new store in Tokyo, its
second-largest after its historic store at 26 place Vendôme. This
new flagship has more than 1,000 square meter (or 10,800 squarefeet) of space over four levels, and is intended to act as a bridge
between French and Japanese culture. It now acts as the House's
showcase in Asia. Boucheron has been in Japan since 1973, andthe new store strengthens its presence in this key market.

In 2023, Boucheron also presented More is More, an entirely new"Carte Blanche" collection designed during the Covid-19
pandemic with the aim of bringing joy. The collection consists ofpieces that are extravagant in size, vivid in color, made frommaterials never before used in High Jewelry, and designed to beworks of art. Breaking the codes and pushing the boundaries ofHigh Jewelry, the collection includes a pocket, hoodie strings
that turn into earrings, and luxurious patches.

Finally, and in line with its desire to adopt ever more sustainable
practices, Boucheron reimagined the Jewelry sector's mostsymbolic object: the jewelry case. Its teams worked on thisproject for two years, using innovation and creativity to reduce
the number of cases from twelve to seven and to make themfrom only two natural, recyclable materials: aluminum and wool
felt.

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Our Houses

Founded in 1967

Business Concept and Strategy
Pomellato is renowned internationally for its contemporary fine jewelry
handcrafted at Casa Pomellato and often inspired by its home city of Milan.
With colored gems and unconventional designs since 1967, the House
promotes traditional Milanese craftsmanship and women’s empowerment.
Pomellato continues to strengthen its iconic fine jewelry collections with afocus on premium designs– from its signature Nudo to golden Iconica orPomellato Together. The House has been capitalizing on the High Jewelry
opportunity in the last few years including the latest Ode to Milan collection,with unique one-of-a kind creations.
As of December 31, 2023, the House has a distribution network consisting of
68 directly operated stores, 12 franchise boutiques, almost 500 wholesale
doors and an online store.

Key Highlights 2023
In 2023, Pomellato increased its visibility through more intensive
media activity, editorial partnerships and digital media campaigns
to reach younger audience.
At the same time, Pomellato elevated its brand awareness andprestige with the launch of new High Jewelry masterpieces andwith the first international High Jewelry event in Paris.
It paid particular attention to Asian markets through targeted local
initiatives and special product launches such as the Isola collection.
Pomellato also unveiled its first Korean brand ambassador withsinger and actress Krystal and its first Chinese male brandambassador with singer and actor Liu Yuning.

The brand's storytelling consistently evokes female
empowerment, Milan and its creative genius, as well as its expert
craftsmanship. The House launched a new campaign featuring
Hollywood star Joey King as Global Ambassador and its Creative
Director’s milestone 20th anniversary with the brand. The brandsupported its Pomellato for Women platform with activations topromote women’s freedoms and advocate against domestic
violence. Pomellato was ranked #1 by the WWF for sustainability
performance amongst 21 of the top jewelry brands.

Founded in 1994

Business concept and strategy
Pomellato’s brainchild since 1994, DoDo is the beloved Italian "charming jewelry"House from Milan. DoDo’s collectable jewels and charms commemorate life’s
important moments. Iconic collections like Nodo, Bollicine, Granelli, and Stellina
are designed to be layered, mixed and matched. DoDo supports inclusivity, diversity
and self-expression while partnering with organizations protecting the planet. DoDo
uses 100% responsible gold in all its creations. The brand has recently focused on
creating premium ‘daily jewelry’ to boost its positioning in the fine jewelry market
while streamlining its collections and keeping its value proposition with its iconic
charms.
As of December 31, 2023, DoDo’s distribution network included 15 directly operated
stores, 24 franchise boutiques, almost 450 wholesale doors and an online store,
operating in 26 countries.

Key Highlights 2023
In 2023, DoDo focused on the Italian market, implementing
activations for brand awareness, and leveraging on maincommunication projects.
DoDo celebrated the new House of DoDo campaign and brandambassadors, a new Milan flagship store, and high visibility eventsin Milan and Rome. In 2023, the brand also launched new andinnovative CRM activities including the DoDo club.

— 54

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With sustainability and conservation at its core, DoDo again
teamed up with social enterprise Tēnaka to restore coral reefs in
Malaysia, and with the WWF to protect wildlife in the Burano Lakenatural reserve, in Italy.

Presentation of the Group and Integrated Report
Our Houses

Founded in 2004

Business concept and strategy
Qeelin is a playful fusion of Oriental symbolism and modernity.
Since its launch in 2004, Qeelin has connected Eastern andWestern cultures in a contemporary way for the world of finejewelry with a mission to surprise and fascinate customers,
showcasing the House’s creativity and craftsmanship.

Qeelin operates in the highly promising luxury Jewelry category
and benefits from a unique brand positioning and product range,
allowing the House to compete with renowned Western brands
while gaining market share from the non-branded jewelry
segment.

With its references to many East Asian myths, its iconic Wulu
collection symbolizes good fortune and positive energy. Qeelin’s
other core collections are Yu Yi, which symbolizes protection, and
Bo Bo, inspired by the panda, an animal that embodies
friendliness, innocence and peace.

As of December 31, 2023, Qeelin had a distribution network of
54 directly operated stores, of which 47 are located in Greater
China and is present as well on WeChat, Tmall Luxury Pavilion
and JD.com.

Since its acquisition by Kering in 2013, Qeelin has repositioned
itself to connect with a wider and younger audience, with a verystrong focus on the Greater China Region.

Key highlights 2023
This year, Qeelin further enhanced the House positioning andprepared its upcoming 20th anniversary, taking place in 2024.
Qeelin has strengthened its jewelry portfolio and launched new
animations like WuluWulu or Wulu Echo to nurture its iconic
collection with a focus on bangles and bracelets in line with thelatest market trends. The House also reinforced its fine jewelry
offering and hosted its first fine jewelry event with celebrities and
VIPs in Shanghai in June. Furthermore, Qeelin entered the Bridal
segment with rings and solitaires including a reference to theEast with the Hongxian collection, meaning red thread andsymbolizing the destiny of people to meet regardless of time,
places, or circumstances.
Additionally, Qeelin renovated and relocated several stores in
Mainland China with an upgraded design for an enhanced
customer experience. Besides Mainland China, notable store
openings include Toronto Yorkdale in Canada, Seoul Lotte Avenue
L in South Korea and Kuala Lumpur TRX Exchange in Malaysia.

In terms of communication, Qeelin sustained its efforts on Out-ofHome advertisings across key Greater China top tier cities andKorea, highlighting especially the collaboration with its new
global Korean ambassador Yoona Lim. A further focus on thebrand craftsmanship and support to the new bridal segment
were also part of the focused communication themes in 2023
across all platforms including Red, Kakao, Line, Weibo, and othersocial media.
Finally, a new environmental and social approach was adopted,
to upgrade the customer experience as well as the employee
journey.
Operations have also been improved throughout the year with
better raw materials traceability through the implementation of a
new technological solution.

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Our Houses

Founded in 2014

Business concept and strategy
Launched in 2014 by Kering and a group of managers led byRoberto Vedovotto, Kering Eyewear’s remit is to develop
in-house eyewear expertise for the Group’s Houses. The firstcollection was unveiled in 2015 for 11 of Kering’s Houses.
In 2017, a partnership agreement with Richemont wasannounced, through which new brands were added to Kering
Eyewear’s portfolio and Richemont became a shareholder of thecompany.
Since 2021, Kering Eyewear has continued its development
through the acquisition of proprietary brands: the Danish luxury
eyewear brand Lindberg in 2021 and the iconic US sunglass
brand Maui Jim in 2022. Today, Kering Eyewear designs,
develops, and distributes a unique portfolio of 14 brands.

To ensure product excellence and the industry’s highest
standards, Kering Eyewear relies on the best manufacturers
worldwide, its three own production plants – Manufacture Kering
Eyewear and Usinage & Nouvelles Technologies in France (UNT),
and Trenti S.p.A. in Italy – as well as Lindberg’s proprietaryproduction facilities.
Through a quality-focused approach to sales and distribution, thecompany serves around 30,000 customers and 60,000 points ofsale worldwide in 150 countries, providing all brands in theportfolio with broad market coverage, aligned to their market
positioning and desired visibility.

Key highlights 2023
In 2023, Kering Eyewear kept on strengthening its leading
position in the luxury eyewear industry achieving a record
performance in revenue and operating income.
While supporting all brands in the portfolio through extended
marketing and communication activities and sales eventsworldwide, Kering Eyewear made excellent progress withintegrating Lindberg and Maui Jim, which both positively
contributed to the results throughout the year. The firstcollection of Maui Jim developed by Kering Eyewear, Collection‘Ekahi, was presented in September and distributed fromJanuary 2024.
2023 was also a milestone for Kering Eyewear’s industrial
development strategy, including the acquisition of UNT, which is

(1)

— 56

based in the Jura region of France and a key producer of highprecision metal and mechanical components. As a long-term,high-quality partner of Manufacture Kering Eyewear, theacquisition of UNT represents an opportunity to further enhance
an integrated Luxury eyewear platform with best-in-classmanufacturing capabilities, facilities, and talents. The integrationof UNT contributes to supporting and promoting the Jura region,a historic birthplace of eyewear in France.
Kering Eyewear intends to continue realizing the full potential of
all its brands, in both the sunglasses and optical frames
segments, and to cement its presence across channels andmarkets all around the world in order to fulfill its ambitions(1) andensure sustainable long-term growth.

The presentation of the latest Capital Markets Day is available on the Kering website (Finance / Publications / 2022 Capital Markets Day –Kering Eyewear presentation).

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Presentation of the Group and Integrated Report
Our Houses

Founded in 2023

Business concept and strategy
Established in 2023, Kering Beauté was created to develop inhouse beauty expertise for the Group and operate a portfolio of
powerful brands in Beauty. The aim is to help Bottega Veneta,
Balenciaga, Alexander McQueen, Pomellato and Qeelin reachprogressively their full potential in the Beauty segment - animportant marke, and a natural extension of their respective
universes - while growing Creed to its full potential andleveraging it as a platform. To this end, Kering Beauté ensures
excellence in execution by maintaining strong control over theentire value chain, encompassing product development,
marketing, supply chain and distribution.
By capitalizing on each House's unique identity, while respecting
their strategies and market positions, Kering Beauté places
innovation and creativity at the heart of its business model withthe aim of creating the sustainable, responsible beauty of
tomorrow.

Key highlights 2023
In February, Kering announced the creation of Kering Beauté andthe appointment of Raffaella Cornaggia as Chief Executive Officer(CEO). During the year, it expanded its capabilities by recruiting ateam of seasoned industry experts. In parallel, Kering Beauté
worked in close collaboration with the Houses to develop theirfirst fragrances.
In October, Kering Beauté completed the acquisition of Creed.
Established in 1760 by James Henry Creed as a tailoring houseserving the royal families of Europe, Creed is now one of theworld’s leading Luxury fragrance houses which boasts a
prestigious heritage, testifying to a unique creative spirit. While

Kering Beauté will continue to preserve Creed’s rich legacy, it will
also unlock exciting opportunities including the acceleration of
the brand’s development in Greater China and in travel retail, andfurther expansion of the feminine fragrance portfolio, body andhome categories.
During the year, Creed announced the latest additions to its
fragrance portfolio, including feminine fragrance Carmina andthe limited-edition Absolu Aventus. Finally, over ten new Creedstores opened, including in London, Buenos Aires, St Barth,
Dallas, Philadelphia, Venice, and Hanoi.

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Our approach to sustainability

8 - OUR APPROACH TO SUSTAINABILITY
8.1 Our organization
The Board of Directors defines the Group's Sustainability strategy
with the support of Kering's Sustainability Department, which is
responsible for its execution. This strategy is implemented withineach of the Houses, which translate the Group's objectives into
practical action plans and report on the progress made withrespect to each of the strategy's three pillars on a regular basis.
More than 50 specialists reporting to the Chief Sustainability andInstitutional Affairs Officer – who is a member of the Executive
Committee – assist the Houses with the implementation of theGroup's strategy by systematically looking for potential synergies
and continuous improvement. In addition, each House has atleast one Sustainability Lead, while the larger Houses have entire
Sustainability teams. As a result, Kering has more than
100 people working solely on sustainability.
The Board of Directors has also had a Sustainability Committee
since 2012. This Committee's role is to assist and support theGroup in establishing, implementing and monitoring good
corporate governance policies and sound sustainability andcorporate citizenship practices. The Board has also increased its
ability to take these issues into account by appointing a Lead
Independent Director (in 2019) and a Climate Change Lead(in 2022)(1).

8.2 Our strategy for 2025
Sustainability has always played a central role in Kering's
strategy. Many of Kering's activities rely on high-quality raw
materials and exceptional expertise, and so depend directly on
balanced, smooth-running ecosystems and respect forindividuals. Protecting resources and the planet, and having a
positive impact on its employees, partners, suppliers and theircommunities, is therefore vital for the Group to continue
growing in a sustainable way. The focus on sustainability is also
an opportunity to reinvent the luxury industry as a whole, inorder to devise a more sustainable and responsible form of
luxury. Accordingly, Kering is implementing an ambitious
sustainability strategy for the period until 2025, based on three
inputs:• the vision and ambition adopted by the Group's top
management, i.e., to be the world's most influential Luxury
group in terms of creativity, sustainability and long-term
economic performance;• a materiality analysis highlighting priority issues, consistent
with the Group's own priorities and the expectations ofstakeholders;• an analysis of non-financial risks, pinpointing the main nonfinancial risks in all parts of the value chain.

(1)

— 58

The Group's objectives and actions are organized around threepillars and are aligned with the United Nations' Sustainable
Development Goals (SDGs).
The Group has a particularly innovative approach toenvironmental issues. Since 2012, Kering has developed its
environmental profit and loss (EP&L) account, which is areporting tool to measure and quantify its environmental
footprint across the whole value chain. The tool enables theGroup to understand the risks and opportunities related toenvironmental challenges, focusing on six themes: greenhousegas emissions, air pollution, water pollution, water consumption,
waste production and land use. It therefore helps Kering identify
the main ways in which it can reduce its environmental footprint.
Kering has undertaken to reduce its EP&L intensity by 40% by
2025 compared with 2015, a goal it achieved in 2021, four years
ahead of schedule.
The Group's environmental approach is based on threecomplementary aspects: climate, biodiversity and circularity.
Kering has identified environmental impacts in each stage of its
value chain, as set out below.

The duties of the Lead Independent Director and Climate Change Lead are detailed in section 3.2 of this chapter entitled "A Board of Directors
with a long-term vision for the Group".

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Presentation of the Group and Integrated Report
Our approach to sustainability

CARE

COLLABORATE

CREATEFOR THE PLANETWITH PEOPLE

NEW BUSINESS MODELS

Take action to reduce ourenvironmental footprint
and to preserve the planet
and its natural resources

Commit to supporting the wellbeing of our employees,
suppliers and customers

REDUCE OUR ENVIRONMENTAL
FOOTPRINT• Reduce our scopes 1, 2 and 3
greenhouse gas emissions by 40%
in absolute terms by 2035 compared
to 2021 levels• Reduce greenhouse gas emissions
by 90% in absolute terms in scopes 1
and 2 and reduce scope 3 intensity
by 70% in 2030 compared to 2015
• Reduce our environmental profit
and loss (EP&L) footprint by 40%
by 2025 compared to 2015

PRESERVE THE WEALTHOF OUR HERITAGE• Support the continuationof craftsmanship traditions
and the communities that support
them, particularly through training
programs

PROMOTE EQUALITYAND DIVERSITY• Achieve gender parity and equal pay
at all levels of the Group's hierarchy
by 2025

BE AN EMPLOYER OF CHOICE

ENSURERESPONSIBLE, CONTROLLED
PROCUREMENT

Devise innovative solutions
to put our Houses, our industry
and our planet on the pathto sustained success
CREATE DISRUPTIVEINNOVATION• Develop innovative and sustainable
solutions for sourcing raw materials
and promote the circular economy
by using recycled textiles
and materials• Develop an internal purchasing
platform that gives access to highquality, sustainable raw materials• Drive a collaborative approach within
the Luxury industry

EXTEND THE LIFE
OF PRODUCTS

Become the preferred employer inthe Luxury industry• Maintain product quality, ensuringthat they have a long life
by developing innovative models
and offering new services to ourcustomers such as repairs• Zero destruction of unsold products
worldwide, zero single-use plastics
by 2025• Zero microfiber discharge by 2030

• Have 100% of our raw materials
aligned with the Kering Standards
by 2025• Achieve 100% traceability by 2025,
at least to the country of origin

PROTECT AND RESTORE
BIODIVERSITY• Have a net positive impact(1)on biodiversity by 2025

OUR MAIN ACHIEVEMENTS IN 2023
• 58% reduction in our EP&L footprint• CDP Triple A List (Climate / Water /Forests)• Regenerative Fund for Nature: new callfor projects, arrival of Inditex as
co-investor alongside Kering• 75% of our raw materials aligned(2)with the Kering Standards• 97% traceability achieved for our raw
materials(2)

(1)

(2)

• 63% women employees and 57%
women managers• Universal Fair Pay certification
for Kering and recognized for allof the Group's Houses• 2nd in the World Benchmarking
Alliance's 2023 Gender Benchmark• More than 8,000 sustainable
materials (up from 5,000 in 2022)aligned with the Kering Standards
made available in the Material
Innovation Lab (MIL)• Launch of new materials such as:◦ LunaformTM developed by Gozen
for Balenciaga,◦ and marine leather developed
by ICTYOS in collaboration
with Alexander McQueen

A business that has a "net positive" impact on biodiversity is one whose negative impacts on biodiversity are outweighed by its positive
impacts.
See definitions in chapter 4, section 5.4.2. of the present Universal Registration Document.

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Presentation of the Group and Integrated Report
Our approach to sustainability

Environmental impacts relating to the product life cycle and the sale of products

(1)

(2)
(3)
(4)

— 60

A business that has a "net positive" impact on biodiversity is one whose negative impacts on biodiversity are outweighed by its positive
impacts.
See definitions in chapter 4, section 5.4.2. of the present Universal Registration Document.
EP&L intensity 2015-2023.
The Kering Standards lay down the Group’s requirements regarding the traceability and sourcing of raw materials, and regarding production
processes.

KERING - 2023 Universal Registration Document

Presentation of the Group and Integrated Report
Our approach to sustainability

8.3 Climate risks fully integrated into the business strategy
Kering has made climate action a key part of its strategy. The
Group's 2023 EP&L results show that 37% of Kering's monetizedenvironmental impacts relating to the product life cycle and thesale of products concern greenhouse gas emissions. The
strategy includes climate change mitigation and adaptation
measures and aims to transform Kering's entire industry. It has
four main aspects, set out below.
• Mitigating climate-related risks by reducing emissions:
Kering has designed its targets according to the reference
framework defined by the Science Based Targets Initiative(SBTi) and is committed to a 90% reduction in its absolutegreenhouse gas emissions from its operations (Scopes 1 and
2) by 2030, along with a 70% reduction in intensity in its
supply chains (Scope 3). It also introduced a new absolutetarget in 2023 for reducing its greenhouse gas emissions by
40% between 2021 and 2035. This target is accompanied byan enhanced decarbonization roadmap, with a specificversion for each House.
• Adapting and achieving resilience with nature-based
solutions: the Group favors sourcing materials fromregenerative agriculture, which aims to protect and restore
biodiversity and soil health.
• Making a positive contribution to the climate: Kering has
made a commitment to offsetting residual emissions from allof the Group's own activities and those of its supply chain,
aiming for a Net Zero trajectory consistent with the ambitionof the Paris agreements.

• Transforming the industry: through partnerships andcoalitions like the Fashion Pact and the Watch & Jewellery
Initiative 2030, Kering aims to develop a new, holistic
approach to managing climate-related risks, mitigating theirimpact and contributing to global climate-related objectives.
All these measures form part of a policy of ongoing improvement,with the aim of stepping up its ambitions and aligning with bestpractices and scientific advances.
Kering implements the recommendations of the TCFD (Task
Force on Climate-Related Financial Disclosures) and in 2021
devised two Group-specific climate scenarios, which were
updated in 2023 on the basis of more recent assumptions, inparticular the latest IPCC (Intergovernmental Panel on Climate
Change) report. The Group has mapped the main physicaltransition risks (27) and opportunities (7) related to climatechange, and the map is set out in section 5.2 of chapter 4,"Sustainability".
The Group plans to manage these climate-related risks andopportunities, anticipate their effects and ensure its resilience byadapting its business model, governance and decision-making
processes, and its supply chain. The assessment, review andmanagement of climate risk is an integral part of the Group's risk
management (see section 1.3.3 and chapter 5 of this document).

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Presentation of the Group and Integrated Report
Our approach to risk management

9 - OUR APPROACH TO RISK MANAGEMENT
Kering's business environment is constantly changing and it is intrinsically exposed to various risks that, if they materialized, could
adversely affect the Group's activities, financial results or reputation. The Group uses a continuous improvement approach, analyzing
feedback and taking action accordingly to improve its business processes. In order to manage, anticipate and mitigate its risk exposure,and to ensure that it can develop its business sustainably over the long-term, the Group has set up a risk management system thatinvolves three lines of defense.

First line of defense:
day-to-day risk management
The first line of defense involves managing risk. All Kering
employees manage risk in their day-to-day work, overseen by
operational managers who are responsible for internal control
measures and who must ensure that those measures reduce risk to
an acceptable level.
Accordingly, the first line of defense must:• identify, assess, control and mitigate risks by defining andimplementing internal rules and procedures;• take remedial action to address process and control failures;• oversee the way in which teams apply and formalize controls in
the Group's accounts closing and compliance systems.

Second line of defense:
day-to-day risk monitoring
The second line of defense consists of functions that measureand qualify risks, then ensure that they are properly covered.
Those functions must:• develop risk management guidelines;• identify known and emerging problems and deal with alerts
relating to them, as well as changes in the way risks are
regulated;• issue directives and provide training in risk management
procedures;— 62

KERING - 2023 Universal Registration Document• facilitate monitoring regarding the implementation of effective
risk procedures and controls devised by management;• ensure that the Group's risk assessment approach is
implemented at the process level by regional internal control
officers;• test control activities through self-assessments and peer
reviews, and monitor the effectiveness of internal control
using tools.

Third line of defense:
independent risk management
Internal audit is the third line of defense. It independently
performs risk management operations. Internal audit periodicallyassesses the design and effectiveness of the first two lines ofdefense and helps improve the internal control system throughits recommendations.
Accordingly, the third line of defense must:• depending on the issue, check that the measures in place,including governance methods, comply with regulatory andstatutory requirements;• carry out audits by observing practices, speaking to staff
members involved in audit activities and preparing audit
reports;• analyze and check the effectiveness of existing control andfinancial reporting procedures;• define an annual internal audit plan with the Group's
governance bodies (Board of Directors and Audit Committee).

CHAPTER 2

Activity report
12344.1
4.2
4.3

55.1
5.2
5.3
5.4
5.5

Introduction
Significant events of 2023
Subsequent events
Group performance in 2023
Revenue and income statement
Balance sheet as ofDecember 31, 2023
Cash flow, investments
and net debt
Operating performanceby segment
Gucci
Yves Saint Laurent
Bottega Veneta
Other Houses
Kering Eyewear and Corporate

64
66
68
69
69
74
76

79
79
81
83
85
87

67-

Parent company net income
Transactions
with related parties
8 - Outlook
9 - Definitions of non-IFRS
financial indicators"Reported" and "comparable"
growthRecurring operating income
EBITDAFree cash flow from operations,available cash flowfrom operations
and available cash flow
Net debt
Effective tax rate
on recurring income
10 - Investment policy
Financial investments
Operating investments

88
88
88
88
88
88
89

89
89
89
89
89
90

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Activity report
Introduction

1 - INTRODUCTION
The global Luxury market in 2023
After a good momentum in 2022 - with sales growth of around
15% at constant exchange rates(1) - the Luxury sector saw its
growth return to normal over the course of 2023.
While sales are expected to show an increase of 8-11%(1) over theyear as a whole, growth was much less strong in the second halfof 2023. Sales growth for the fourth quarter of 2023 is expectedaround 6%(2), only a slight improvement compared to the thirdquarter. By contrast, growth was almost 17% in the first half of2023.
In 2023, Luxury market’s development is closely related to thegeopolitical, public health and macroeconomic context, themain dynamics in which can be summarized as follows:• In May 2023, the World Health Organization (WHO) declared
the end of the international public health emergency related to
COVID-19. Consequently, the endemic persistence of the illness
had no impact on the Luxury market in the first half of 2023.
However, since China continued its extremely strict "zero-COVID"
policy throughout 2022 – particularly in the second and fourth
quarters – the base for comparison regarding Luxury brands'
performance in Mainland China was to some extent favorable,
although it varied widely from one quarter to another andbetween provinces.
• The armed conflict between Russia and Ukraine that began in
February 2022 continued to have a very limited direct impact on
the business activities of major Luxury brands. However, it
contributed to inflationary pressure and the deterioration in the
global economic outlook.
• Based on Oxford Economics projections(3), expectations
regarding global economic growth have been upgraded.
Those projections show the world economy growing by 2.6%
in 2023, whereas the growth forecast at the start of the year
was 1.6%. However, this remains lower than the growth rateof 3.1% achieved on average between 2010 and 2019 and in
2022. The vast majority of OECD members should see growthwithin a range of 0.5-2.5%. Growth in Gross World Product(GWP) is likely to be driven by the rebound in the Chinese
economy – which is expected at 5.2%, although this is well
below the 7.7% average rate seen between 2010 and 2019 –and strong performance in Southeast Asian economies(4.3%).
• Inflation, after reaching very high levels in 2022 (8.4% in the
eurozone and 8% in the United States) seems to be on a
gradual but significant downtrend, due in particular to lower
energy prices. However, inflation has not yet fallen enough tomeet central bank targets. It continues to have a material
impact on the amount households are spending on basic
necessities, and is therefore a drag on their purchasing
power.
• The rate-hiking cycle carried out by central banks in the main
OECD economies seems to have come to an end in 2023.
Interest rates are likely to fall gradually in 2024, although they

(1)
(2)
(3)

— 64

are expected to remain relatively high, which could continue
to affect the real estate market, as well as dragging downhouseholds’ confidence levels and propensity to consume.
However, financial markets rallied in 2023 – with the Nasdaq
up 43% and the S&P 500 up 24% – which is a positive factor
that is likely to support demand for luxury goods at a time
when excess savings put aside during the COVID-19 pandemic
in 2020 have to a large extent been spent.
• After 2022 saw very large movements in exchange rates
between the world’s main currencies, driven by central bankmonetary policies, the Euro rose against other major
currencies in 2023. This resulted in an overall narrowing inprice differences between regions, although in many cases
they remained large enough to encourage tourists to buy
luxury goods when traveling.
• The post-pandemic phase has also brought a renewed desire
among consumers to pay for experiences, so spending onservices is now growing more quickly than spending on
goods. For consumers with less purchasing power, this is very
probably causing them to reallocate their budgets, spending
more on leisure, eating out and travel instead of products
made by Luxury brands.
The aforementioned trends are affecting the main markets todifferent extents. In addition, the performances of Luxury brands
may differ materially from one region to another as a result ofvariations in tourist numbers and bases for comparison.
• The recovery in tourism accelerated in Europe, Asia and the
Middle East in the first half of 2023. In the second half, growth
rates slowed in Europe and the Middle East because of a highbase for comparison. However, travel bookings by Chinese
people rose rapidly in 2023, primarily to Asian destinations
and gradually to Europe, although they have not yet
recovered to their 2019 level overall. This trend is boosting
the sales of stores in the main tourist destinations.
• Business levels in Western Europe were very solid in the firsthalf of 2023, but slowed sharply from the third quarter
onward. Sales to tourists underpinned positive trends to alarge extent, but the growth rate moved steadily back tomore normal levels because of the gradually rising base forcomparison. Domestic demand came under more pressure
due to the wait-and-see attitude of European consumers.
• After strong growth between the end of 2020 and mid-2022,
North America is the region where business levels suffered
most from weaker demand among the most aspirationalcustomers and from American tourists shifting theirpurchases to other geographies, where they can buy at lower
prices. Trends appeared to improve toward the end of theyear, although this was primarily due to a less challenging
base for comparison.

Bain & Company-Altagamma, Euromonitor, panel of financial analysts.
Based on average projections in financial analyst reports published in late December 2023 and early January 2024.
Oxford Economics is the source of all macroeconomic data in this document unless otherwise mentioned.

KERING - 2023 Universal Registration Document

Activity report
Introduction• Despite a slowdown in growth at the end of the year, sales inJapan were very strong in 2023. Growth was largely driven bysales to Asian tourists, attracted by price differentials arisingfrom movements in the exchange rate between the Japanese
yen and other currencies. The number of Chinese tourists has
also risen in Japan, although in the second half of the year it
was still almost 60% below their 2019 level(4).
• Growth in China rebounded, particularly in the second
quarter and to a lesser extent in the fourth, compared withthe very unusual trends seen in 2022. However, indicatorsshow that the recovery in the Chinese economy, althoughsolid overall, remains exposed to certain risk factors –including population aging, youth employment and thedecline in the real-estate market – which are also weighing on
consumer confidence. Sales growth in mainland China wastherefore robust but volatile, and more fragile in the second
half. In contrast, sales in Hong Kong SAR and Macau SAR grewstrongly in 2023, with large amounts of buying by consumers
from Mainland China.
• In the rest of the Asia-Pacific region, sales continued to rise inSoutheast Asia as the region saw firm economic developmentin its various countries and good levels of tourism. The South
Korean market was affected by weaker local demand causedby slower growth in the country’s economy, tighter credit
conditions and certain South Korean consumers buying
products in other regional markets because of pricedifferentials.
• Finally, in the other regions of the world, sales growth
returned to more normal levels after several quarters of verystrong growth.
Another effect of economic trends is that the impact of deepseated changes in the Luxury industry in recent years, amplified
by the COVID-19 crisis, seems to have faded further in 2023.
• Online sales growth is converging with that seen in physicalretail networks, which has, since 2022, benefited from arebound in tourism and lower bases for comparison. In someregions, online sales may even have started to fall because of
the online channel’s exposure to more aspirationalcustomers. As a result, online sales as a proportion of total
sector sales are stabilizing or falling slightly depending on theregion and brand.

(4)• In the short and medium-term, demand from Generations Y
and Z remains one of the principal growth drivers for the
global Luxury market. The proportion of sales coming fromthis customer segment increased in 2023, but at a slower
rate, because penetration was already high at the end of 2022
(an estimated 65% of revenue according to Bain & CompanyAltagamma).
• The Luxury market is seeing a premiumization trend in termsof both supply and demand, and this was confirmed in 2023.
This trend is largely related to the economic situation, withhigh inflation and falling purchasing power affecting the lesswealthy customer segments but leaving customers with thehighest income or wealth levels relatively unaffected. In
addition, the most timeless and upscale products are
regarded as safe-haven assets at a time of uncertainty aboutother asset classes. As a result, the market has recently been
more positive for Jewelry, Watches and certain types ofLeather goods. Ready-to-wear clothing is also benefiting fromthis trend, supported by the renewed popularity of moreformal clothing among consumers, the upturn in Chinesedemand and the resilience of the wealthiest customers.
Distribution channels are also being affected, particularly
online sales or US department stores.
At this stage, it remains difficult to predict how the Luxury market
will develop in 2024. The ongoing recovery in Chinese demand –particularly among Chinese tourists – and the lower base forcomparison in several regions of the world could have a positive
impact on growth in the coming months, and particularly in thesecond half of the year. However, demand from domestic
customers could remain under pressure due to economic
uncertainties, since 2024 growth forecasts for the global
economy have been downgraded.
As an illustration of ongoing uncertainty regarding themacroeconomic and geopolitical context, forecasts regarding the
Luxury sector’s growth in full-year 2024 vary widely: Bain &Company-Altagamma expects growth of between 1% and 7%,
although forecasts in financial analysts’ recent reports have been
more optimistic, predicting growth of 6% on average. Experts
agree that growth is likely to be very limited in the first half of
2024.

Forward Keys.

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Activity report
Significant events of 2023

2 - SIGNIFICANT EVENTS OF 2023
Acquisition of prestigious real-estate assets in Paris
In 2023, Kering acquired three prestigious buildings in Paris,
located on Rue de Castiglione (close to Place Vendôme in the firstarrondissement) and Avenue Montaigne (in the eightharrondissement).

In accordance with its long-term financial strategy, the Groupintends to implement a disciplined and flexible approach to
managing its real-estate portfolio.

Those investments form part of Kering’s selective real-estate
strategy aimed at securing key locations that are highly desirable
for its Houses.

Appointment of Sabato de Sarno as Creative Director of Gucci
Sabato De Sarno’s appointment as Creative Director of Gucci wasannounced on January 28, 2023. He is responsible for defining
and expressing the House’s creative vision accross the Women's,

Men's, Leather goods, Accessories and Lifestyle collections.
Sabato De Sarno presented his debut runaway collection at Milan
Women’s Fashion Week in September 2023.

Appointment of Raffaella Cornaggia as Chief Executive Officer of Kering Beauté
Raffaella Cornaggia was appointed as CEO of Kering Beauté on
February 3, 2023. Based in Paris, she is a member of the Group’s
Executive Committee. Supported by a team of seasoned

professionals, her role is to develop an expertise in the Beauty
category for Bottega Veneta, Balenciaga, Alexander McQueen,
Pomellato and Qeelin.

Launch of Gucci’s "Circular Hub", the first hub to power a Circular Made in Italy
With the support of Kering, Gucci launched its "Circular Hub", thefirst hub for circular luxury in Italy on February 21, 2023. Its aim isto accelerate the circular transformation of the Italian fashionindustry’s production model across the entire value chain,starting from raw materials and design, through production
optimisation and logistics. This innovation platform will support
the design and manufacturing of circular products as well as thescouting of new solutions.

Kering commits to next horizon in sustainability with group-wide target
for reducing absolute emissions by 40%
On March 17, 2023, Kering announced a commitment to reduce
its absolute greenhouse gas emissions by 40% by 2035, on a2021 baseline. This new target covering scopes 1, 2 and 3 of theGreenhouse Gas Protocol (GHG Protocol), continues theevolution of the Group’s sustainability strategy and represents anecessary step to accelerate the implementation of the Group’s
vision of a modern and responsible luxury.

Preliminary investigation by the European Commission
In the scope of an inspection carried out as part of a preliminary
investigation into the fashion sector in several countries under
EU antitrust rules, the European Commission has started on— 66

KERING - 2023 Universal Registration Document

April 18, 2023, an inspection at the Italian premises of Gucci, asubsidiary of Kering. The Group is fully cooperating with theCommission in the context of this investigation.

Activity report
Significant events of 2023

Departure of Daniela Riccardi from Kering’s Board of Directors
and appointment of Maureen Chiquet
At the Board of Directors meeting following the Annual General
Meeting on Thursday, April 27, 2023, Daniela Riccardi submitted
her resignation from her position as a Director of Kering. On
July 18, 2023, the Board of Directors, after consultation with theNominations & Governance Committee, decided to coopt
Maureen Chiquet as independent director for the remainder ofDaniela Riccardi’s term of office, until 2026. She joined Kering’s
Board of Directors in September 2023. Maureen Chiquet, a US
citizen, has more than 35 years’ experience in the fashion andluxury goods sector, including nine years as Global CEO of
Chanel.

Further integration of Kering’s supply chain
Kering Eyewear strengthened its position in the luxury eyewear
industry by acquiring 100% of Usinage & Nouvelles Technologies(UNT) on June 30, 2023. UNT is located in the Jura region ofFrance and is a key player in the manufacturing of high-precision
metal and mechanical components for the luxury eyewear sector.

Boucheron, meanwhile, as part of its ongoing development
strategy, reinforced its production capacity by acquiring a High
Jewelry workshop gathering around 60 artisans near Place
Vendôme in Paris on October 31, 2023.

Kering strengthens governance and operations
On July 18, 2023, Kering announced a series of top
appointments aimed at strengthening the stewardship of its
Houses, further elevating operating expertise and strengthening
its organisation:• Francesca Bellettini, in addition to her current role as
President and CEO of Yves Saint Laurent since 2013, wasappointed Kering Deputy CEO in charge of Brand
Development;• Jean-Marc Duplaix, Chief Financial Officer since 2012, wasappointed Kering Deputy CEO, in charge of Operations andFinance;• Jean-François Palus, Kering Group Managing Director, wasappointed President and CEO of Gucci, replacing Marco
Bizzarri, who has been President and CEO of Gucci since 2015.
He left the company on September 23, 2023;• Armelle Poulou, Director of Corporate Finance, Treasury andInsurance since 2019, was appointed Chief Financial Officer
on September 1, 2023. She is reporting to Jean-Marc Duplaix.

Acquisition of high-end fragrance House Creed by Kering Beauté
Announced on June 26, 2023, Kering Beauté’s acquisition of a
100% stake in Creed was completed on October 17, 2023. Creed is
consolidated in Kering accounts starting from November 1, 2023.
This acquisition represents a major step for Kering Beauté. A

perfect fit with the Group’s portfolio of renowned Houses, it gives
Kering Beauté substantial scale and a platform for supporting thefuture development of other Kering Beauté fragrance franchises,by leveraging in particular Creed’s global distribution network.

Acquisition of a significant shareholding in Valentino
On July 27, 2023, Kering acquired a 30% shareholding in
Valentino for €1.7 billion from Mayhoola, as part of a strategic
partnership which could lead to Mayhoola becoming ashareholder in Kering. The agreement comprises an option for
Kering to acquire 100% of of the share capital of Valentino nolater than 2028.

The Alexander McQueen fashion House and Sarah Burton announce the endof their collaboration, Seán McGirr appointed Creative Director of the House
On September 11, 2023, Alexander McQueen and its Creative
Director Sarah Burton announced the end of their collaboration
after two decades together. On October 3, 2023 Seán McGirr was

appointed to replace Sarah Burton as Creative Director of theHouse. Seán McGirr was previously Head of Ready-to-Wear at
JW Anderson.

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Activity report
Subsequent events

Bond issues
As part of the Group’s active liquidity management, Kering
carried out three bond issues in 2023, enabling it to enhance its
financial flexibility and allowing it both to refinance existing
debt and finance its recent acquisitions.
The great success of these issues with investors underscoredthe market’s confidence in the Group’s credit quality.
• Dual-tranche issue on February 20, 2023 for a total amount of€1.5 billion:– a €750 million tranche with a 6-year maturity and a 3.25%
coupon,– and a €750 million tranche with a 10-year maturity and a
3.375% coupon.
The issue allowed the Group to refinance its existing debt.
• Four-tranche issue on August 29, 2023 for a total amount of€3.8 billion bond issue:– a €750 million tranche with a 2-year maturity and a 3.75%
coupon,– a €750 million tranche with a 4-year maturity and a 3.625%
coupon,– a €1 billion tranche with a 8-year maturity and a 3.625%
coupon,– a €1.3 billion tranche with a 12-year maturity and a 3.875%
coupon.
This issue was notably intended to finance the acquisitionof Creed.
• Dual-tranche issue on November 16, 2023, for a total amountof £800 million:– a £400 million tranche with a 3-year maturity and a 5.125%
coupon,– a £400 million tranche with a 9-year maturity and a 5%
coupon.
This issue allowed the Group to diversify its sources offunding, by accessing for the first time the sterling bondmarket.

3 - SUBSEQUENT EVENTS
Departure of Tidjane Thiam from Kering's Board of Directors
In order to have the necessary time to devote to his politicalcommitments, Tidjane Thiam, elected President of the
Democratic Party of Ivory Coast on December 22, 2023, submitted
his resignation from his position as Director to the Chairman of

Kering’s Board of Directors on January 9, 2024. He was anindependent Director since June 16, 2020 and Chair of the Audit
Committee. He was also a member of the Remuneration
Committee.

Acquisition of a prestigious property in New York CityOn January 22, 2024 and continuing the strategy implemented in
2023, Kering announced the acquisition of a prestigious New York
City property comprising multi-level luxury retail spaces, totaling

approximately 115,000 sq. ft, or 10,700 sq. m., located at715-717 Fifth Avenue, on the Southeast corner of 56th Street, fora consideration of $963 million (€885 million).

Events subsequent to the meeting of the Board of Directors
which approved the Management report
Dual-tranche bond issue for a total amount of EUR 1.75 billion
Kering has issued a dual-tranche bond for a total of
EUR 1.75 billion, consisting of:• a EUR 1 billion tranche with a 8-year maturity and a 3.375%
coupon;• a EUR 750 million tranche with a 12-year maturity and a
3.625% coupon.

— 68

KERING - 2023 Universal Registration Document

This issue, in line with the Group’s active liquidity management,
enables Kering to enhance its financial flexibility.
The great success of this issue with investors underscores themarket’s confidence in the credit quality of the Group.

Activity report
Group performance in 2023

4 - GROUP PERFORMANCE IN 2023
4.1 Revenue and income statement
Condensed consolidated income statement
Revenue

2023
19,5662022
20,351

Change-4%

Recurring operating income% of revenue

4,746
24.3%

5,589
27.5%

-15%
-3.2 pts

EBITDA% of revenue

6,569
33.6%

7,255
35.6%

-9%
-2.0 pts

Other non-recurring operating income and expenses
Financial result

(103)
(410)

(194)
(260)

+47%
-58%

Income tax expense
Share in earnings (losses) of equity-accounted companies(1,163)
4(1,420)
2

+18%
+100%

Net income from continuing operations
o/w attributable to the Group

3,074
2,983

3,717
3,613

-17%
-17%

91

(In € millions)o/w attributable to minority interests
Net income (loss) from discontinued operations
Net income attributable to the Group

–
2,983

104
1
3,614

-13%
-100%
-17%

Net income from continuing operations (excluding non-recurring items)
attributable to the Group

3,061

3,747

-18%

Earnings per share(in € )

2023

2022

ChangeBasic earnings per share

24.38

29.34

-17%

Basic earnings per share from continuing operations
excluding non-recurring items

25.02

30.42

-18%

Revenue
In 2023, the Group’s revenue totaled €19,566 million, down 4% asreported and down 2% on a comparable scope and exchange
rate basis(1) compared to 2022.
Currency movements had a negative impact on performance in
2023, reducing reported sales growth by just under 4 points or byalmost €662 million in absolute terms. Due to the Euro
strengthening against other major currencies, the negative

exchange-rate effect arose mainly from sales denominated in
Chinese yuan (€232 million) and US dollars (€140 million).
Changes in scope had a positive effect on Group revenue. They
consisted mainly of the positive contribution made by Maui Jim,
which has been consolidated since October 1, 2022, and by
Creed, consolidated since November 1, 2023.

Group revenue by segment(in € millions)

Gucci
Yves Saint Laurent
Bottega Veneta
Other Houses
Kering Eyewear and Corporate
Eliminations
Revenue

(1)

2023
9,873
3,179
1,645
3,514
1,568
(213)
19,566

%
51%
16%
8%
18%
8%
-1%
100%

2022
10,487
3,300
1,740
3,874
1,139
(189)
20,351

%
52%
16%
9%
19%
5%
-1%
100%

Reportedchange
-6%
-4%
-5%
-9%
+38%
N/A
-4%

Comparable
change(1)
-2%
-1%
-2%
-8%
+11%
N/A
-2%

On a comparable scope and exchange rate basis. Comparable revenue growth is defined on page 88.

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Activity report
Group performance in 2023

Group revenue by quarter

2023
2022

First quarter

Second quarter

Third quarter

Fourth quarter

5,077

5,058

4,464

4,967

4,956

4,974

5,137

5,284

Compared to 2022, Kering’s revenue grew in the first and second
quarters of 2023 (by 1% and 3% respectively on a comparable
basis), driven by good momentum in its own stores (particularly
in Western Europe and Japan) and an upturn in business levels in
Asia-Pacific, and despite a decline in North America and in online
sales.
Overall, third quarter performance is down 9% on a comparable
basis. It follows similar dynamic as the first half of the year in
North America and Japan. Performance is nonetheless affectedby weaker local demand and lower numbers of tourists, whose€19,566 million€20,351 million

contribution stabilized due to a high base for comparison and theabsence of any large-scale rebound in Chinese customers. The
recovery in China was also weaker than expected.
Sales in the fourth quarter (down 4% on a comparable basis)remained stable in our own stores. However, as it did throughout
the year, revenue suffered from lower wholesale revenue andlower online sales, which were particularly affected by a return tonormal in demand among aspirational customers.

Quarterly revenue by segment
First quarter Second quarter
2,616
2,512
806
770
395
438
890
966
433
436
(63)
(64)
5,077
5,058

Third quarter Fourth quarter
2,217
2,528
768
835
381
431
805
853
333
366
(40)
(46)
4,464
4,967

2023
9,873
3,179
1,645
3,514
1,568
(213)
19,566

Gucci
Yves Saint Laurent
Bottega Veneta
Other Houses
Kering Eyewear and Corporate
Eliminations
RevenueFirst quarter Second quarter
2,591
2,582
739
742
396
438
973
982
308
283
(51)
(53)
4,956
4,974

Third quarter Fourth quarter
2,581
2,733
916
903
437
469
995
924
253
295
(45)
(40)
5,137
5,284

2022
10,487
3,300
1,740
3,874
1,139
(189)
20,351(comparable change(1))

Q1 2023/2022
changeQ2 2023/2022
changeQ3 2023/2022
changeQ4 2023/2022
change2023/2022
change

+1%
+8%
–
-9%
+11%
N/A
+1%

+1%
+7%
+3%
-1%
+21%
N/A
+3%

-7%
-12%
-7%
-15%
+3%
N/A
-9%

-4%
-5%
-4%
-5%
+7%
N/A
-4%

-2%
-1%
-2%
-8%
+11%
N/A
-2%

(in € millions)

Gucci
Yves Saint Laurent
Bottega Veneta
Other Houses
Kering Eyewear and Corporate
Eliminations
Revenue(in € millions)

Gucci
Yves Saint Laurent
Bottega Veneta
Other Houses
Kering Eyewear and Corporate
Eliminations
Revenue(1) On a comparable scope and exchange rate basis. Comparable revenue growth is defined on page 88.

— 70

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Activity report
Group performance in 2023

Group revenue by region(in € millions)Asia-Pacific (excluding Japan)
Western Europe
North America
Japan
Rest of the world

TOTAL

2023
6,848
5,405
4,500
1,400
1,413

%
35%
28%
23%
7%
7%

2022
6,568
5,566
5,547
1,244
1,425

%
33%
27%
27%
6%
7%

Reportedchange
+4%
-3%
-19%
+13%
-1%

Comparable
change(1)
+10%
-4%
-22%
+24%
-2%

19,566100%

20,351

100%

-4%

-2%

(1) On a comparable scope and exchange rate basis. Comparable revenue growth is defined on page 88.
Revenue generated outside the eurozone represented 79% of the consolidated total in 2023.

The Group’s sales grew most strongly in Japan, where they rose
24% on a comparable basis. The rebound in tourist numbers
from the rest of Asia, driven by the weak Yen, lay behind this very
good performance.
In Asia-Pacific – the Group’s largest region in terms of revenue,
accounting for 35% of the total – revenue was up 10% on acomparable basis relative to 2022. Sales grew strongly in Greater
China, while South Korea and Southeast Asian countries saw
slower revenue growth after a sharp increase in 2022.
In Western Europe, after a buoyant first half, the Group’s sales
slowed in the second, affected by a return to normal in local
demand and a stabilization in tourist numbers. The 4% decline insales on a comparable basis was mainly the result of lower
wholesale revenue, in line with the Group’s strategy of making its
distribution more exclusive.

Revenue in North America fell 22% on a comparable basis
compared to 2023. Performance in that region was again heldback by a significant decline in local demand and a slowdown indepartment store sales, particularly among aspirationalcustomers. However, revenue remained around 50% higher thanin 2019.
The Group’s performance in the Rest of the World returned tonormal overall after several years of strong growth. Comparisonswith 2022 remained partly affected by the shutdown of businessactivities in Russia and Ukraine from late-February 2022.
However, the Group’s exposure to the conflict between Russia
and Ukraine is limited, since in 2021 Kering generated around 1%of its total revenue in those countries, and the net value of its
assets there was not material at the end of 2021 (around 0.1% of
the Group total assets). The value of those assets was written
down in full in 2022.

Group revenue by distribution channel

22%

Wholesaleand other revenue(including royalties)

78%

Sales in directly
operated stores

Percentages based on revenue before Eliminations

Sales from directly operated and online stores came in at€15,446 million in 2023, stable on a comparable basis relative to2022. The previous comments regarding performance by regionin 2023 also apply to the growth trajectory of retail sales.
Store footfall was higher than in 2022, although trends varied
widely between regions. Higher footfall was accompanied by aslight decline in the conversion rate (i.e., the number of people
buying products as a percentage of the total number of people
visiting stores). As a result, revenue growth was driven by anincrease in average selling prices, resulting from the policy oftaking the Houses’ product ranges more upscale. The 3%
increase in sales at physical stores managed by the Houses
contrasts with the decline in online sales, whose proportion ofretail sales fell to around 12% (as opposed to 15% in 2022). The
decline in the online channel was due to its overexposure tocertain product categories and customers more impacted by themacroeconomic context - inflation and higher interest rates. In
addition, the base for comparison is high, since online sales havealmost tripled since 2019.

Revenue from stores and online sales directly operated by theGroup accounted for around 78% of the Group’s total sales(before Eliminations), similar to the figure seen in 2022. Excluding
Kering Eyewear and Kering Beauté, however, this figure is at 85%
versus 82% in 2022. The increase in this proportion in recent
years has resulted from the long-term strategy implemented by
all Houses, which is aimed at controlling their distribution more
tightly, including online sales, and making them more exclusive.
Wholesale revenue fell 13% year-on-year in 2023 on acomparable basis (before Eliminations). For the Houses,
wholesale revenue fell significantly, by 21% on a comparable
basis. This reflects a reduction in orders placed by US distributors
and the reorganization of the wholesale distribution network thatis currently underway, resulting in sales being concentrated
among the best-positioned distributors. Although thesestreamlining efforts are complete at Gucci, they are continuing in
the Group's other Fashion and Leather goods Houses. However,Kering Eyewear, which has a wholesale-only distribution model,
posted sales growth of 10% on a comparable basis, driven bothby the development of existing licenses and the successful
integration of Lindberg. Including the scope effect arising fromthe contribution of Maui Jim, revenue was up 37% at constantexchange rates.
The Houses’ royalty revenue from licenses and other revenuerose by 10% on a comparable basis in 2023, due to very robust
growth in the Eyewear category and in the Fragrances andCosmetics category.

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Activity report
Group performance in 2023

Recurring operating income
2023
3,264
969
312

2022
3,732
1,019
366

Change
-13 %
-5 %
-15 %

Other Houses
Kering Eyewear and Corporate

212
(7)

558
(88)

Eliminations
Recurring operating income(1)

(4)
4,746

2
5,589

-62 %
+92 %
N/A

(in € millions)

Gucci
Yves Saint Laurent
Bottega Veneta-15%(1) Recurring operating income is defined on page 88.

The Group's recurring operating income amounted to€4,746 million in 2023, down €843 million or 15% compared to
2022.
Recurring operating margin fell 3.2 points to 24.3% because ofnegative operational leverage, particularly in the second half ofthe year, as a result of decreasing revenue.
Gross margin was €14,927 million, a decrease of 2%. As aproportion of revenue, gross margin was 76.3%, up 1.6 points
relative to 2022, under the combined effects of higher average
selling prices, the increasing proportion of sales from directly
operated stores and the positive effect of foreign exchange
hedging.

Operating expenses rose by 6%. This increase arose frominvestments made by the Group’s brands and Kering Eyewear to
support their development and expansion, notably by increasing
budgets for store expenses, the creation, development andpresentation of collections, communications and digitalization.
These efforts, which were necessary in view of the competitiveenvironment and the Group’s long-term ambitions for its Houses,
independent of short-term trends, affected brands’ profitability
against a background of slowing sales growth, particularly in thesecond half of the year. Gucci, Balenciaga andAlexander McQueen were the Houses where profit was affected
most.

EBITDA
Recurring operating income

2023
4,746

2022
5,589

Change-15%

Net recurring charges to depreciation, amortizationand provisions on non-current operating assets
o/w depreciation of lease right-of-use assets
EBITDA(1)

1,823
985
6,569

1,666
935
7,255

+9 %
+5 %
-9%

2023
3,999
1,219

2022
4,416
1,251

Change
-9 %
-3 %

494
585

541
888

-9 %
-34 %

276
(4)
6,569

157
2
7,255

+75 %
N/A
-9%

(in € millions)(1) EBITDA is defined on page 89.
(in € millions)

Gucci
Yves Saint Laurent
Bottega Veneta
Other Houses
Kering Eyewear and Corporate
Eliminations
EBITDAEBITDA for 2023 amounted to €6,569 million versus €7,255 million in 2022. EBITDA margin was 33.6%, less than the 2022 figure of 35.6%.

— 72

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Activity report
Group performance in 2023

Other non-recurring operating income and expenses(in € millions)

2023

2022

ChangeImpairment of goodwill, brands and other non-current assets
Other
Other non-recurring operating income and expenses

(70)
(33)
(103)

(41)
(153)
(194)

-71 %
+79 %
+47%

(cf. Consolidated financial statements, Note 7 – Other non-recurring operating income and expenses.)Financial result(in € millions)

2023

2022

ChangeCost of net debt(1)Other financial income and expenses

(108)
(151)

(47)
(89)

-131 %-69 %Financial result excluding leases
Interest expense on lease liabilities

(259)
(151)

(136)
(124)

-90%
-22 %

Financial result

(410)

(260)

-58%

(1) Net debt is defined on page 89.

In 2023, the cost of net debt was €108 million (€47 million in2022). The increase was mainly due to the larger amount of bonddebt outstanding. Most of the increase in the average cost of debt
was offset by higher income from investments.
Other financial income and expense produced a net expenseof €151 million in 2023 (€89 million in 2022).

Adjusted for the positive impact arising from the expiry
of derivatives embedded in PUMA bonds in 2022, financial
expense decreased by €44 million.
(cf. Consolidated financial statements, Note 8 – Financial result.)

Income tax(in € millions)

Income before tax
Income tax expense
Effective tax rate
Other non-recurring operating income and expenses
Recurring income before tax
Income tax on other non-recurring operating income and expenses
Tax expense on recurring income
Effective tax rate on recurring income(1)

2023
4,233
(1,163)
27.5%
(103)
4,336
25
(1,188)
27.4%

2022
5,135
(1,420)
27.7%
(194)
5,329
60
(1,480)27.8%(1) The effective tax rate on recurring income is defined on page 89.

(cf. Consolidated financial statements, Note 9 – Income taxes.)

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Activity report
Group performance in 2023

4.2 Balance sheet as of December 31, 2023
AssetsEquity and liabilities
39%

17%

15%

EquityGoodwill

Other assets

13%

20%

9%

Cash and cash
equivalents

Brands and otherintangible assets€41,367m

Capital employed€41,367m

Leaseliabilities

30%

65%

Equity€24,514m

Borrowings

11%

Right-of-use assets

3%

Trade receivables
and accrued income

35%

12%

Inventories

13%

Net debt

18%

Other liabilities

Property, plant and equipment

Condensed balance sheet
Dec. 31, 2023
7,112

Dec. 31, 2022
4,053

Change+75%

Brands and other intangible assets
Lease right-of-use assets

8,178
4,984

7,357
4,929

+11%
+1%

Property, plant and equipment
Investments in equity-accounted companies

5,341
1,750

3,388
49

+58%
N/A

2,072
29,437

2,503
22,279

-17%
+32%

4,550
1,151

4,465
1,180

+2%
-2%

Cash and cash equivalents
Other current assets
Current assets
Assets held for sale

3,922
2,307
11,930
–

4,336
1,681
11,662
–

-10%
+37%
+2%
–

TOTAL ASSETS

41,36733,941+22%

Equity attributable to the Group
Equity attributable to minority interests
Total equity
Non-current borrowings
Non-current lease liabilities
Other non-current liabilities
Non-current liabilities
Current borrowings
Current lease liabilities
Other current liabilities
Current liabilities
Liabilities associated with assets held for sale

15,212798
16,01010,026
4,511
2,189
16,726
2,400
884
5,347
8,631
–

13,998785
14,783
4,347
4,420
1,885
10,652
2,295
812
5,399
8,506
–

+9%
+2%
+8%
+131%
+2%
+16%
+57%
+5%
+9%
-1%
+1%
–

TOTAL EQUITY AND LIABILITIES

41,36733,941+22%(In € millions)

Goodwill

Other non-current assets
Non-current assets
Inventories
Trade receivables and accrued income— 74

KERING - 2023 Universal Registration Document

Activity report
Group performance in 2023

Net debt
Dec. 31, 2023
12,426(3,922)
8,504

Dec. 31, 2022
6,642
(4,336)
2,306

Change
+87%
-10%
N/A

(in € millions)

Dec. 31, 2023

Dec. 31, 2022

ChangeTotal equity
Net debt

16,0108,504

14,783
2,306

+8%
N/A

Capital employed

24,51417,089+43%(in € millions)

Borrowings
Cash and cash equivalents
Net debt

Capital employed

Goodwill and brands
As of December 31, 2023, the carrying amount of brands net of deferred tax liabilities amounted to €5,527 million, compared to€5,111 million as of December 31, 2022.

Current operating assets (liabilities), net
Foreignexchangedifferences

Dec. 31, 2023
4,550

Dec. 31, 2022
4,465

Statementof cash flows
102

(75)

Other
movements
58

Trade receivables and accrued income
Trade payables and accrued expenses

1,151(2,200)1,180(2,263)

(24)
126

(30)
31

26
(93)

Other current assets (liabilities), net
Net current tax receivables (payables)

(442)
229

(589)
(190)

(124)
427

147
5

125
(13)

Current operating assets (liabilities),
net

3,288

2,603

507

77

102

(in € millions)

Inventories

Change in equity attributable to the Group
2,983
13,998Attributable
equity as ofJan. 1, 2023

Net income
attributable
to the Group

(1,705)(78)

Dividends
paid

Change incumulativetranslation
adjustments

18

15,212Other
movements

Attributable
equity as ofDec. 31, 2023

(4)

Cash flow
hedges

As of December 31, 2023, the share capital amounted to €493,683,112. It comprised 123,420,778 fully paid-up shares with a par value of€4 each, a reduction of €2,600,000 following the cancellation of 650,000 shares under the share buyback program (share capital of€496,283,112, comprising 124,070,778 shares as of December 31, 2022). Excluding the 840,597 Kering treasury shares, there were
122,580,181 shares issued and outstanding as of December 31, 2023.
(cf. Consolidated financial statements, Note 19 – Equity.)

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Group performance in 2023

4.3 Cash flow, investments and net debt
Free cash flow from operations
Cash flow received from operating activities(in € millions)

2023

2022

ChangeCash flow received from operating activities before tax,
dividends and interest

6,289

6,926

-9%

Change in working capital requirement
Income tax paid

(396)
(1,434)(902)(1,746)+56%+18%

Net cash received from operating activities

4,459

4,278

+4%

Operating investments(in € millions)

2023

2022

ChangeNet cash received from operating activities

4,459

4,278

+4%

Acquisitions of property, plant and equipment
and intangible assets(2,611)(1,071)-144%

Disposals of property, plant and equipment and intangible assets
Free cash flow from operations(1)

135
1,983

1
3,208

N/A
-38%

(1) Free cash flow from operations is defined on page 89.

Gross operating investments by segment
2023

2022

ChangeGucci
Yves Saint Laurent

435
186

408
112

+7%
+66%

Bottega Veneta
Other Houses

105
247

92
221

+15%
+12%

1,638

238

N/A

2,611

1,071

+144%

(in € millions)

Kering Eyewear and Corporate
Acquisitions of property, plant and equipment
and intangible assets
Operating investments amounted to €2,611 million in 2023, an
increase of €1,540 million or 144% relative to 2022.
Excluding the acquisition of strategic real-estate assets in Paris,
they totaled €1,230 million, representing 6.3% of revenue.
This ratio is higher than the December 31, 2022 figure of 5.3%,
due to an increase in the investment budget for 2023.
Seasonal variations in investments are similar from one year to
the next, with most investments taking place in the second half,
although the proportion of investments occurring in the second
half of 2023 was lower than in the second half of 2022 (excluding
the acquisition of strategic real-estate assets in Paris).

Investments in 2023 related mainly to store openings andrefurbishments, as well as logistics infrastructure and IT systems,
most of which are managed by Corporate on behalf of theGroup's brands.
In 2023, 58% of the Group's gross operating investments(excluding the acquisition of strategic real-estate assets in Paris)
related to the retail network (70% in 2022). 53% of theinvestments in stores concerned store opening programs and
47% concerned conversion and refurbishment projects.
Excluding the acquisition of strategic real-estate assets in Paris,
Kering Eyewear and Corporate’s proportion of the Group’s
operating investments was stable relative to 2022 at 21%: thisfigure has returned to normal following the Group’s major
strategic programs in the years preceding 2022.

Available cash flow from operations and available cash flow(in € millions)Free cash flow from operations
Repayment of lease liabilities
Interest paid on leases
Available cash flow from operations(1)Interest and dividends received
Interest paid and equivalent (excluding leases)
Available cash flow(1)(1) Available cash flow from operations and available cash flow are defined on page 89.

— 76

KERING - 2023 Universal Registration Document

2023
1,983
(880)
(151)
953
76
(226)
802

2022
3,208
(824)
(124)
2,260
17
(174)
2,103

Change
-38%
-7%
-21%
-58%
N/A
-30%
-62%

Activity report
Group performance in 2023

Dividends paid
The cash dividend paid by Kering SA to its own shareholders in
2023 amounted to €1,712 million, including the €550 million
interim dividend paid on January 18, 2023 (€1,483 million in 2022
including a €434 million interim dividend).

Dividends paid in 2023 also included €42 million paid to minority
interests in consolidated subsidiaries (€45 million in 2022).

Changes in net debt
2023

2022

ChangeNet debt as of January 1
Free cash flow from operations

2,306(1,983)168(3,208)

N/A+38%

Dividends paid
Net interest paid and dividends received

1,754
150

1,528
157

+15%
-4%

Acquisitions of Kering shares
Repayment of lease liabilities(1)

10
1,030

1,030
948

-99%
+9%

Disposal of PUMA shares
Other acquisitions and disposals

(236)
5,394

(100)
1,817

+136%
+197%

Other movements
Net debt as of December 31

79
8,504

(34)
2,306

N/A
N/A

(in € millions)(1) Comprising repayments of principal amounting to €880 million in 2023 (€824 million in 2022) and interest payments of €151 million in 2023(€124 million in 2022) relating to capitalized fixed lease payments.
(in € millions)

Bonds
Other bank borrowings
Commercial paper
Other borrowings
o/w put options granted to minority interests
Borrowings
Cash and cash equivalents
Net debt(1)Dec. 31, 2023
9,795
134
1,277
1,219
711
12,426(3,922)
8,504

Dec. 31, 2022
4,226
201
1,010
1,205
681
6,642
(4,336)
2,306

Change
+132%
-33%
+27%
+1%
+4%
+87%
-10%
N/A

(1) Net debt is defined on page 89.

Lease liabilities totaled €5,395 million as of December 31, 2023 (€5,232 million as of December 31, 2022).

Solvency
The Group has a very sound financial position and has a Standard & Poor's long-term credit rating of A with negative outlook.

Liquidity
As of December 31, 2023, the Group’s cash and cash equivalents amounted to €3,922 million (€4,336 million at December 31, 2022). The
Group has confirmed lines of credit totaling €3,185 million (December 31, 2022: €3,035 million).

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Group performance in 2023

Maturity schedule of net debt
Undrawn confirmedlines of credit
(1)

2024

€3,185m€-1,522m

(2)

2025

2026(2)€2,085m

2027(2)(2)

2028

Maturity scheduleof net debt(3) as ofDecember 31, 2023(€8,504 million)€978m€1,291m€599m(2)

Beyond€5,073m(1) Borrowings less cash and cash equivalents.
(2) Borrowings.
(3) Net debt is defined on page 89.

The amount of borrowings with a maturity less than one year(€2,400 million as of December 31, 2023) was significantly lessthan the Group's cash and cash equivalents (€3,922 million as ofDecember 31, 2023). Consequently, the Group is not exposed to
any liquidity risk.
The Group’s loan agreements and lines of credit feature standard
pari passu, cross default and negative pledge clauses.

— 78

KERING - 2023 Universal Registration Document

The Group’s financing agreements do not include any rating
trigger clauses.
(cf. Consolidated financial statements, Note 20 – Net debt.)

Activity report
Operating performance by segment

5 - OPERATING PERFORMANCE BY SEGMENT
5.1 Gucci(in € millions)

Revenue
Recurring operating income% of revenue
EBITDA% of revenue
Acquisitions of property, plant and equipment
and intangible assets
Average FTE headcount

2023
9,873
3,264
33.1%
3,999
40.5 %

2022
10,487
3,732
35.6%
4,416
42.1%

Change-6%-13%-2.5 pts-9 %-1.6 pt

435
21,086408
20,711+7 %+2 %Revenue

Revenue by region

Gucci posted revenue of €9,873 million in 2023, down 6% year-onyear as reported and down 2% at comparable exchange rates.

In view of the proportion of Gucci’s sales generated by directly
operated stores, the following revenue analysis by region only
concerns sales in its own physical and online stores, on acomparable basis.

Revenue by distribution channel
After Gucci completed the reorganization of its distribution, sales
from directly operated stores made up 91% of its total sales in
2023, the same as in 2022.

In Western Europe, sales grew by 7% on a comparable basis in
the first half, driven by tourists, but were affected in the second
by a decline in store footfall and local demand. In 2023 as awhole, sales were stable relative to 2022.

Sales from physical and online stores controlled by the House
were down 2% on a comparable basis relative to 2022. Revenuerose by 1% in the first half but was affected in the second half by
demand for luxury goods returning to more normal levels from ahigh base for comparison, particularly among local customers,
and by a weaker-than-expected recovery in tourist numbers
compared to 2022.

In Japan, the rebound in tourist numbers, driven in particular by
attractive exchange rates, helped to boost sales, which rose by
26% on a comparable basis in 2023.

In 2023 as a whole, the main driver of sales growth in physicalstores was the increase in average selling prices, resulting fromchanges in the product mix and increases in price to develop a
more upscale product range.

Sales were up 5% on a comparable basis in Asia-Pacific and sales
growth accelerated in the fourth quarter, partly because the basefor comparison was lower than in the third quarter. The
resumption of inter-regional tourism led to a sharp increase insales in Hong Kong SAR and Macau SAR. However, demand fell inSouth Korea as some local consumers bought products in othercountries within the region, and because of weaker local
demand.

After several years of strong growth and a stabilization in 2022,
revenue from online stores fell in 2023 on a comparable basis
because of this distribution channel’s exposure to the American
market (where it accounts for almost half of sales) and to
customers with lesser purchasing power more impacted bydeteriorating macroeconomic conditions. There is also a greater
desire to visit physical stores. As a result, sales from online storesaccounted for around 12% of total retail revenue in 2023.

In North America, Gucci's revenue was down 20%, with trends inthe second half being very similar to those seen in the first.
However, sales to North American customers in all markets
remained over 40% higher on a comparable basis than in 2019.

In the world's other regions, revenue growth was firm relative to2022, particularly in the Middle East.

Difficulties encountered by wholesalers, combined with theircautious approach to transition collections, led to a 5% decreasein wholesale revenue (at comparable exchange rates) relative to2022.

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Operating performance by segment

Revenue by product category
In 2023, sales of most Gucci product categories in directly
operated stores were almost unchanged or slightly lower
compared to 2022. The increase in average selling prices,
resulting both from changes in the product mix and price hikes,
offset lower volumes.
Sales of Leather goods were resilient, particularly for Women’slines, which were driven by the success of certain iconic products
such as the Jackie and Valigeria travel bags.
However, categories featuring entry-level products, such as small
Leather goods, Shoes and Belts, were affected by the return-tonormal in demand, unlike High Jewelry, which saw robust
growth.
Royalty revenue increased compared to 2022. The Eyewear
category, managed by Kering Eyewear, continued to see risingsales. Royalties from the license granted to Coty in the
Fragrances and Cosmetics category saw an improvement, from abase that remained fairly favorable for comparison.

Recurring operating income
Gucci’s recurring operating income amounted to €3,264 million in
2023, down €468 million year-on-year.
Recurring operating margin was 33.1%, down 2.5 points.

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Given Gucci's geographical exposure, the combination ofcurrency effects and the result of currency hedging had a positive
impact of around 1.6 points on recurring operating margin.
However, the House continued to invest in initiatives to boost its
long-term growth, which consequently increased its cost base.
Given the decline in sales as reported, operational leverage wasnegative (i.e., expenses rose more quickly than revenue), and thisadversely affected margins.
Gucci generated EBITDA of €3,999 million in 2023, a decrease of€417 million relative to 2022 and representing an EBITDA marginof 40.5%.

Store network and operating
investments
As of December 31, 2023, Gucci operated 538 stores directly.
Gucci opened 10 new stores during the year (net of closures),mainly in Asia and North America.
The House therefore continued to prioritize optimizing its store
network in support of its brand elevation strategy, increasing its
visibility in the best locations and giving customers an exclusive
experience, while withdrawing from less productive locations.
Gucci’s operating investments amounted to €435 million in 2023,
7% higher than in 2022, against a backdrop of further cost
increases for materials and building work. Gross operating
investments equaled 4.4% of revenue (3.9% in 2022), which is arelatively normal level for a House of Gucci’s size.

Activity report
Operating performance by segment

5.2 Yves Saint Laurent(in € millions)

Revenue
Recurring operating income% of revenue
EBITDA% of revenue
Acquisitions of property, plant and equipment
and intangible assets
Average FTE headcount

2023
3,179
969
30.5%
1,219
38.3 %

2022
3,300
1,019
30.9%
1,251
37.9 %

Change-4%-5%-0.4 pts-3 %+0.4 pt

186
5,112

112
4,555

+66 %
+12 %

Revenue

Revenue by region

In 2023, Yves Saint Laurent’s revenue amounted to €3,179 million,
down 4% year-on-year as reported and down 1% at comparable
exchange rates.

In view of the proportion of Yves Saint Laurent’s sales generated
by directly operated stores, the following revenue analysis byregion only concerns sales in its own physical and online stores.

Revenue from the House’s wealthiest customers continued to risein all product categories, showing that the brand elevation
strategy has been well received.

Revenue by distribution channel
Sales from physical and online stores controlled by the Houseaccounted for 81% of the total, an increase of 4 points relative to2022, and were up 4% on a comparable basis relative to 2022.
After double-digit growth in the first half of the year (sales up 11%
on a comparable basis), business levels suffered in the second
half – and particularly in North America and Europe – from lower
store footfall caused by weaker local demand along with aweaker-than-expected
recoveryintouristnumbers.
Yves Saint Laurent continued the successful deployment of its
brand elevation strategy, which resulted in a higher averagespend. Online sales fell, with marked differences in performanceacross the regions.
Wholesale revenue was down 26% at constant exchange rates
compared to 2022. This was due to the ongoing effort tostreamline distribution, focusing on a small number of partners,
and a macroeconomic environment that was less helpful forwholesalers, particularly in North America.

In 2023, Yves Saint Laurent’s revenue rose relative to 2022,
although growth rates varied widely between regions.
In Western Europe, sales rose by 5% on a comparable basis. Aftera very buoyant first half, the House saw weaker local demand in
the second, along with a smaller increase in tourist numbers froma high base in 2022.
In North America, after two exceptional years in 2021 and 2022 inwhich sales doubled compared to 2019, revenue fell 15% on acomparable basis due to macroeconomic conditions, which
seriously affected aspirational customers.
In Asia-Pacific, revenue was up 20% on a comparable basis
thanks to a rebound in Greater China. Trends in Korea andSoutheast Asia were less dynamic, after several quarters of verystrong growth since 2020.
In Japan, sales were up 21% on a comparable basis in 2023 due
to strong growth in the number of tourists visiting from China andSoutheast Asia, who were attracted by the pricing differential
related to favorable exchange rate.
Yves Saint Laurent’s performance in the Rest of the World was
solid, with growth of 8%, and particularly so in the Middle East,
which has historically been an important market for the brand.

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Operating performance by segment

Revenue by product category
Leather goods remained the top category, with sales growthcompared to 2022 closely aligned with the House’s overall
performance. This reflects the initiatives taken by
Yves Saint Laurent over the last few years to constantly renew
and refresh its Leather goods offering, which has helped it to both
attract new customers and retain existing ones in all its markets.
Sales of Ready-to-wear collections for women rose very sharply,
continuing trends seen since 2021. This performance is the resultof the brand’s merchandising strategy implemented during
recent quarters with the aim of making its offerings and pricearchitecture more relevant in this category.
By contrast, sales in the Shoes category were affected to agreater extent by slower growth in demand in certain markets.
Royalty revenue generated by Kering Eyewear surged, again
showing the success of this licensing agreement. Royalties paid
by L’Oréal in the Fragrances and Cosmetics category also rosevery sharply.

Recurring operating income
In 2023, Yves Saint Laurent's recurring operating income totaled€969 million, down 5%, although recurring operating margin
remained above 30%, down 0.4 points relative to 2022.

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The House was able to keep operating margin at a high level
through efforts to control costs despite the expansion of the store
network.
In 2023, EBITDA totaled €1,219 million, almost unchanged
compared to 2022. EBITDA margin was 38.3% as opposed to37.9% in 2022.

Store network andoperating investments
As of December 31, 2023, the House had 308 directly operated
stores. A net 28 new stores were added in 2023 in its mainmarkets, in line with the target of a network of 300 to 350 directly
operated stores in the medium term. In particular, theSaint Laurent Champs-Élysées flagship store opened in Paris in
December. It is the House’s largest store and features a new
design concept that will be rolled out across other stores in its
network. In addition, some existing stores were refurbished,relocated and extended.
This resulted in a high level of operating investments, whichamounted to €186 million, up €74 million relative to 2022 andequal to 5.8% of revenue.

Activity report
Operating performance by segment

5.3 Bottega Veneta(in € millions)

Revenue
Recurring operating income% of revenue
EBITDA% of revenue
Acquisitions of property, plant and equipment
and intangible assets
Average FTE headcount

2023
1,645
312
19.0%
494
30.0 %

2022
1,740
366
21.0%
541
31.1 %

Change-5%-15%-2.0 pts-9 %-1.1 pt

105
3,891

92
3,748

+15 %
+4 %

Revenue

Revenue by region

In 2023, Bottega Veneta’s revenue amounted to €1,645 million,
down 5% as reported or down 2% on a comparable basis
compared to 2022. The House is successfully implementing its
brand elevation strategy and is increasing in popularity among
the high-end customers.

Given the proportion of Bottega Veneta’s sales that are generated
in directly operated stores, the following revenue analysis byregion only concerns sales in physical and online stores.

Revenue by distribution channel
In keeping with its exclusive, high-end positioning, the House isfocusing on selling its products through its directly operated
physical and online stores, which accounted for 82% of its
revenue in 2023 (78% in 2022).
Bottega Veneta's sales in directly operated physical and online
stores rose by 4% on a comparable basis. This growth was driven
both by resilient sales at comparable scope and by good
momentum in online stores. The House is continuing,
consistently and with determination, to implement its strategy ofdeveloping its offering in all product categories, raise brandawareness and enhance the customer experience across all
points of sale.
Wholesale revenue was down 24% on a comparable basis, as
expected. Bottega Veneta has reorganized this distribution
channel, with the aim of working only with a limited number of
selected partners.

In Western Europe, revenue rose by 4% on a comparable basis.
Revenue growth was robust in the first half but was affected in
the second by a slowdown in demand among local customers
from a high base, and by a weaker-than-expected recovery intourist numbers compared to 2022.
In Japan, revenue rose by 12% at constant exchange rates
relative to 2022, with higher tourist numbers offsetting a return tonormal in sales to local customers.
In North America, Bottega Veneta's sales rose by 2% on acomparable basis relative to 2022, showing great resilience in lesshelpful market conditions.
In Asia-Pacific, the House’s sales were stable. Bottega Veneta’s
improved performance in Greater China reflecting theimplementation of its media strategy aimed at raising its brandprofile, its efforts to improve the store network and to strengthen
teams offset lower revenue in South Korea and Southeast Asia
after two years of strong growth.
Sales growth in the Rest of the World remained robust.

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Activity report
Operating performance by segment

Revenue by product category
Leather goods remains Bottega Veneta’s core business (77% of
total sales), and both new and iconic lines, along with theirseasonal variations, met with great success among the House’scustomer base. The House’s strategy aims to maintain its
exclusive positioning in Leather goods, particularly by focusing
on sales growth through higher prices and an improved productmix – including the introduction of new, highly exclusive lines like
Andiamo – rather than through volume growth alone.
Ready-to-wear revenue posted very solid growth again in 2023 as
new collections, both womenswear but also increasingly
menswear, were very well received. The House’s Jewelry line wasalso highly successful.
However, sales momentum in the Shoes category was lessbuoyant.

Recurring operating income
Bottega Veneta’s recurring operating income for 2023 totaled€312 million, down 15% compared to 2022.
Recurring operating margin was 19%, 2 points less than in 2022.
That was due to negative operational leverage, as the House
continued to take a more selective approach to distribution andmaintained its investment efforts in order to make its revamp alasting success. In view of its increasing cost base, the House isprioritizing its allocation of resources in order to focus them on
the most strategic areas of expenditure.

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EBITDA amounted to €494 million in 2023, equal to 30% ofrevenue.

Store network andoperating investments
As of December 31, 2023, Bottega Veneta had 288 directly
operated stores. There were 17 net store openings during theyear.
The brand is focusing its investment efforts on relocating andrefurbishing its existing stores, while pursuing its strategy of
gradual and targeted openings as opportunities arise, notably
with the establishment of new flagships. This included thereopening of the House’s flagship store on Avenue Montaigne in
Paris, which features a high-end esthetic in both its open areas
and VIP rooms.
Operating investments totaled €105 million, higher than inprevious years. However, they remained broadly stable as aproportion of the House’s sales (around 6.4%).

Activity report
Operating performance by segment

5.4 Other Houses(in € millions)

Revenue
Recurring operating income% of revenue
EBITDA% of revenue
Acquisitions of property, plant and equipment
and intangible assets
Average FTE headcountRevenue
In 2023, revenue from the Other Houses fell by 9% as reported
and by 8% at constant scope and exchange rates.

2023
3,514
212
6.0%
585
16.7 %

2022
3,874
558
14.4%
888
22.9 %

Change-9%-62%-8.4 pts-34 %-6.2 pts

247
9,020

221
8,137

+12 %
+11 %

sales fell and held back the segment’s overall performance.
However, the proportion of total revenue coming from online
sales varied between brands, showing close correlation with thematurity of each House’s online stores and product range.

There were mixed performances across the segment:• Balenciaga’s performance varied between geographies anddistribution channels. It saw strong sales growth in Japanand Asia-Pacific but a sharp deceleration in North America
and Europe. The House also continued its strategy of
reducing its number of wholesalers while macroeconomic
conditions were also less helpful for the latter, particularly inNorth America;• Alexander McQueen suffered from its exposure to thewholesale market, particularly in the United States. However,sales in the House’s stores rose due to the success of its
Ready-to-Wear offering;• after a good year in 2022, revenue at Brioni continued torecover;• revenue grew strongly at the Jewelry Houses:– Boucheron confirmed its potential with further strong sales
growth in 2023,– total revenue growth at Pomellato and Dodo was firm,– Qeelin’s sales rose sharply due to the recovery in the
Chinese market and in tourist numbers, as well as growth inits store network.

Wholesale revenue was down 29% on a comparable basis. In
accordance with the Group’s strategy, the Other Houses –primarily Balenciaga and Alexander McQueen – are focusing theirwholesale businesses on a limited number of top-quality
partners. Performance was also affected by a decline in orders
from distributors in North America.

Revenue by distribution channel

In Asia-Pacific, revenue rose by 19% on a comparable basis, due
in particular to very strong performance at Balenciaga,
Boucheron and Qeelin in Greater China.

Revenue from the Other Houses’ directly operated physical andonline stores rose 3% on a comparable basis relative to 2022.
That growth was partly due to new store openings, in line withthe strategy of moving toward more selective distribution. Online

Revenue by region
The Other Houses’ regional performances followed similar trends
to those seen at Gucci, Yves Saint Laurent and Bottega Veneta.
The return to normal in local consumer spending and weakgrowth in tourist numbers in the second half of the year dragged
down the Other Houses’ sales growth in Western Europe, with thenotable exception of Brioni (+9%). The Other Houses’ total
revenue in Western Europe fell by 19% on a comparable basis.
Revenue grew 27% on a comparable basis in Japan, boosted by
the sharp upturn in the number of tourists traveling within Asia.
In North America, sales fell 33% on a comparable basis, due tothe decrease in wholesale revenue – particularly at
Alexander McQueen – and difficulties encountered by Balenciagain this market.

In the Rest of the world, the Other Houses’ performance was heldback by the decline in Balenciaga’s sales in the Middle East.

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Operating performance by segment

Revenue by product category
Kering’s Jewelry Houses maintained their 2022 trends, posting
very strong growth in 2023, driven in particular by the success of
their development plan in Asia-Pacific and Japan. High Jewelrycollections from Boucheron but also Pomellato were particularly
well received.
Among the other categories, Ready-to-wear was the mostresilient, as Alexander McQueen focused more on this category
within its own stores while Brioni also achieved growth.
However, the Shoes and Leather goods category suffered from avery high base for comparison and more moderate demand fromaspirational customers in certain markets.
Royalties fell relative to 2022 as certain licenses andcollaborations came to an end. However, royalties from licenses
managed by Kering Eyewear increased.

Recurring operating income
The Other Houses’ recurring operating income was €212 million
in 2023, 62% less than in 2022.
Recurring operating margin came to 6%, down 8.4 points
compared to 2022.

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Continued high levels of expenses on supporting the OtherHouses’ development in all their main markets affected
profitability, given the decrease in revenue. This was particularly
true at Balenciaga and Alexander McQueen.
EBITDA totaled €585 million, down €303 million year-on-year.
This caused EBITDA margin to fall 6.2 points to 16.7%.

Store network andoperating investments
The Other Houses had 618 directly operated stores as ofDecember 31, 2023, a net increase of 34 compared to 2022.
Balenciaga, Brioni and the Jewelry brands were mainly behind
this expansion of the network. Asia-Pacific had most store
openings (net of closures), followed by North America.
These developments led to a slight increase in the Other Houses’
operating investments, which totaled €247 million, €26 million
more than in 2022. As a proportion of annual revenue,
investments remained high at 7% in 2023 as opposed to 6% in
2022. Although the Houses obviously worked on strengthening
their direct distribution, they also invested in their production
capabilities and the full array of infrastructure needed to develop
their businesses.

Activity report
Operating performance by segment

5.5 Kering Eyewear and Corporate(in € millions)

Revenueof which Kering Eyewearof which Corporate and other
Recurring operating incomeof which Kering Eyewearof which Corporate and otherAcquisitions of property, plant and equipment
and intangible assets
Average FTE headcount
The Kering Eyewear and Corporate segment comprises:• Kering Eyewear, whose sales and operating income arepresented before the elimination of intra-group sales andother consolidation adjustments (reported on the separate
line item "Eliminations");• Kering Beauté, a business that is currently being developed.
Creed, acquired in October 2023, has been consolidated in
Kering’s financial statements since November 1, 2023;• Kering’s headquarters teams, all corporate departments
reporting to them – including in the regions – and Shared
Services, which provide a range of services to the brands,
along with the Kering Sustainability Department. KGS – theKering entity that handled sourcing activities for non-Groupbrands including companies making up the former Redcats
group – was sold in November 2022. Sales and operating
income for 2022 therefore include the contribution of KGS
until that date.
In 2023, the segment generated total revenue of €1,568 million,
including €1,502 million from Kering Eyewear.
Kering Eyewear's sales were up 35% as reported. However, they
included a positive impact from a change in scope, due to theconsolidation of Maui Jim from October 1, 2022.
At constant scope and exchange rates, revenue rose by 10%, with
the number of licenses managed by Kering Eyewear remaining
stable relative to 2022. Performance in the first and second
halves of the year must be analyzed in view of seasonal variationsin Kering Eyewear’s business, with more sales taking place in thefirst six months.

2023
1,568
1,502
66
(7)
276
(283)

2022
1,139
1,115
24
(88)
203
(291)

Change+38%+35 %+175 %
+92%
+36 %
2.0 %

1,638
6,906

238
5,486

N/A
+26 %

Local chains and the "three Os" (Opticians, Optometrists andOphthalmologists) constitute the main channel for sales underlicense by brands managed by Kering Eyewear (around 50% of
total sales in both 2023 and 2022). Revenue from those
distributors once again saw very robust growth, showing theeffectiveness of Kering Eyewear's sales organization. Sales inother distribution channels also rose, particularly in brands’ own
stores, and continued to recover in travel retail.
The segment made an operating loss of €7 million, comprising
operating income of €276 million at Kering Eyewear lessCorporate operating expenses of €283 million.
Kering Eyewear's recurring operating margin was 18.4%, similar
to the 2022 figure. Positive operational leverage was offset byincreased investment at Maui Jim, aimed particularly at
continuing its development in new markets.
Corporate operating expenses were stable compared to 2022.
These expenses arise from the Group's initiatives in the fields ofIT, digital and innovation, and also sustainability.
The segment’s operating investments amounted to€1,638 million in 2023 and included the acquisition of real-estate
properties in Paris with the aim of securing prime locations for
the Group’s Houses. Adjusted for those acquisitions, operating
investments amounted to €257 million in 2023, up €19 million
relative to 2022. Corporate (logistics and head office) operations
maintained a level of investment almost unchanged from lastyear.

Growth at constant scope was extremely solid in all mainmarkets, and was driven in particular by a very strong upturn in
Asia-Pacific and strong growth in Europe.

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Parent company net income

6 - PARENT COMPANY NET INCOME
In 2023, the parent company generated net income of €1,855 million, compared to €1,552 million in 2022. The 2023 figure includes€1,886 million of dividends received from subsidiaries (versus €1,624 million in 2022).

7 - TRANSACTIONS WITH RELATED PARTIESTransactions with related parties in 2023 are described in the notes to the consolidated financial statements (cf. Consolidated financial
statements, Note 31 – Transactions with related parties).

8 - OUTLOOKTo achieve its long-term vision, Kering invests in the developmentof its houses, so that they continuously strengthen their
desirability and the exclusivity of their distribution, strike aperfect balance between creative innovation and timelessness,
and achieve the highest standards in terms of quality,
sustainability, and experience for their customers. In an
environment of ongoing economic and geopolitical uncertainty,
Kering will continue to execute on its strategy and vision, in
pursuit of two key ambitions: to maintain a trajectory of longterm profitable growth, and to confirm its status as one of themost influential groups in the Luxury industry.

In 2024, in a context of ongoing normalization of the sector’s
growth, the impact of Kering’s investment strategy will weigh on
the group’s full-year recurring operating income (based on thescope of consolidation and exchange rates at December 31,2023), which should post a decline compared to the level
reported in 2023, particularly in the first half of the year. The
Group will prioritize expenses and investments supporting thelong-term development and growth of its houses, whileremaining vigilant and disciplined with regards to its cost
structure.

9 - DEFINITIONS OF NON-IFRS FINANCIAL INDICATORS"Reported" and "comparable" growth
The Group’s "reported" growth corresponds to the change inreported revenue between two periods.
The Group measures "comparable" growth (also referred to as"organic" growth) in its business by comparing revenue between
two periods at constant scope and exchange rates.

Changes in scope are dealt with as follows for the periods
concerned:• the portion of revenue relating to acquired entities is
excluded from the current period;• the portion relating to entities divested or in the process of
being divested is excluded from the previous period.
Currency effects are calculated by applying the average exchange
rates for the current period to amounts in the previous period.

Recurring operating income
The Group’s operating income includes all revenues andexpenses directly related to its activities, whether these revenues
and expenses are recurring or arise from non-recurring decisions
or transactions.
Other non-recurring operating income and expenses consist ofitems that, by their nature, amount or frequency, could distort
the assessment of the Group’s operating performance asreflected in its recurring operating income. They include changes
in scope, the impairment of goodwill and brands and, wherematerial, of property, plant and equipment and intangible assets,
capital gains and losses on disposals of non-current assets,
restructuring costs and disputes.

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KERING - 2023 Universal Registration Document"Recurring operating income" is therefore an alternative
performance indicator for the Group, defined as the difference
between operating income and other non-recurring operating
income and expenses. This indicator is intended to facilitate theunderstanding of the operating performance of the Group and its
Houses and can therefore be used as a way to estimate recurring
performance. It is presented in a manner that is consistent andstable over the long-term in order to ensure the continuity andrelevance of financial information.

Activity report
Investment policy

EBITDAThe Group uses EBITDA as an alternative performance indicator
to monitor its operating performance. This financial indicator
corresponds to recurring operating income plus net charges todepreciation, amortization and provisions on non-current
operating assets recognized in recurring operating income.

Free cash flow from operations, available cash flow from operations
and available cash flow
The Group uses an intermediate line item, "Free cash flow fromoperations", to monitor its financial performance. This financial
indicator measures net operating cash flow less net operating
investments (defined as acquisitions and disposals of property,
plant and equipment and intangible assets).
The Group has also defined a new indicator, "Available cash flowfrom operations", in order to take into account capitalized fixedlease payments (repayments of principal and interest) pursuant
to IFRS 16, and thereby reflect all of its operating cash flows.
"Available cash flow" therefore corresponds to available cash
flow from operations plus interest and dividends received, lessinterest paid and equivalent (excluding leases).

Net debt
Net debt is one of the Group’s main financial indicators, and isdefined as borrowings less cash and cash equivalents. Leaseliabilities are not included in the calculation of this indicator.
Borrowings include put options granted to minority interests.

The cost of net debt corresponds to all financial income andexpenses associated with these items, including the impact ofderivative instruments used to hedge the fair value ofborrowings.

Effective tax rate on recurring income
The effective tax rate on recurring income corresponds to the effective tax rate excluding tax effects relating to other non-recurring
operating income and expenses.

10 - INVESTMENT POLICY
Kering’s investment policy is designed to support and enhance
the Group’s growth potential in its markets and is focused on
financial investments and investments related to operations.
Financial investments reflect the Group’s strategy of reinforcing
profitable high-growth activities in the Luxury market byacquiring attractive brands with strong growth potential andmarket positions that complement its existing assets.

Operating investments are designed to accelerate organic growth
for the Group’s brands. This is achieved by, for example,
developing and renovating the store network and by investing in
logistics centers and IT systems.

Financial investments
Financial investments represented net cash outflows of€4,822 million in 2023, relating in particular to the acquisition of
Creed and a 30% stake in Valentino (compared to €1,700 millionof net cash outflows in 2022, mainly relating to the acquisition ofMaui Jim).

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Investment policy

Operating investments
The Group conducts a targeted investment policy designed toreinforce both its image and the unique positioning of its Houses,
as well as to increase its return on capital employed.
The Group’s investment policy is focused on the development of
its store network, the conversion and renovation of its existing
points of sale, the establishment and maintenance of
manufacturing units in the Luxury sector, and the development ofIT systems. Gross operating investments amounted to€2,611 million in 2023, up 144% or €1,540 million relative to 2022.
The seasonality of operating investments, adjusted for theacquisition of strategic real-estate assets in Paris, was morebalanced than in 2022, with less than 60% of investments taking
place in the second half as opposed to around two thirds in theprevious year. The vast majority of outflows relating to theacquisition of strategic real-estate assets in Paris took place inthe first half of the year.
As of December 31, 2023, the Group had a network of
1,771 directly operated stores. Net store additions compared to
December 31, 2022 totaled 108. A large proportion (over a third)of the new store openings were in the Asia-Pacific region, butsome brands also expanded their distribution networks with
openings in the Middle East, North America and Western Europe.
The year-on-year increase was also driven mostly by the
expansion of the Yves Saint Laurent, Bottega Veneta andBalenciaga networks.

Gucci
As of December 31, 2023, Gucci operated 538 stores directly.
Gucci opened 10 net new stores during the year, mainly in Asia
and North America. Gucci’s focus is on achieving organic growthby maximizing the productivity of the existing store network, but
it is also continuing to identify opportunities that will enable it toenhance its distribution in certain regions or sales channels.
Gucci’s gross operating investments amounted to €435 million in
2023, 7% higher than in 2022. Most of those investments related
to store refurbishments, openings and relocations. The
remainder consisted primarily of IT expenditure, but also projects
related to production, offices and support functions.

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Yves Saint Laurent
As of December 31, 2023, the House had 308 directly operated
stores. There were 28 net store openings during 2023, reflecting
the brand’s store network expansion plan implemented over the
past few years. Openings reflected both the streamlining of thebrand's distribution, its entry into new countries, and relocations
and expansions in markets where Yves Saint Laurent alreadyoperated directly.
The House’s operating investments totaled €186 million, up€74 million relative to 2022.

Bottega Veneta
As of December 31, 2023, Bottega Veneta had 288 directly
operated stores. There were 17 net store openings during theyear. As in 2022, the brand focused its investment efforts on
relocating and refurbishing its existing stores, while pursuing its
strategy of gradual and targeted openings as opportunities arose,notably with the establishment of new flagships.
Operating investments totaled €105 million in 2023, more than inprevious years.

Other Houses
The Other Houses had 618 directly operated stores as ofDecember 31, 2023, 34 more in net than at December 31, 2023.
Balenciaga, Brioni and the jewelry brands were mainly behind
this expansion of the network.
These developments led to an increase in the Other Houses’
operating investments, which totaled €247 million, €26 million
higher than in 2022.

Kering Eyewear and Corporate
Investments by Kering Eyewear and Corporate totaled€1,638 million. This includes the acquisition of real-estate assets
in Paris, aimed at securing prime locations for the Group's
Houses. Adjusted for those acquisitions, operating investments
amounted to €257 million in 2023, up €19 million relative to 2022.
Investments in Corporate activities (logistics and head office)were almost the same as in 2022.

CHAPTER 3

Corporate governance
1 - Kering’s governance
1.1 Reference corporate governancecode
1.2 Company’s management
structure
1.3 Balance of power
1.4 Role and responsibilitiesof the Lead Independent Director
1.5 Role and duties of the Climate
Change Lead
1.6 Governance-related dialogue
with shareholders
1.7 Succession plan
2 - Composition of the Boardof Directors
2.1 Members of the Board of
Directors as of February 28, 2024
2.2 Changes in the compositionof the Board of Directors
2.3 Guiding principles forthe composition of the Boardof Directors
3 - Conditions of preparationand organization of the workof the Board of Directors
3.1 Duties of the Board of Directors
3.2 Functioning of the Boardof Directors
3.3 Assessment of the functioningof the Board of Directors
and its specialized Committees
3.4 Activity of the Board of Directors
and its specialized Committees

92

4-

Other corporate governancedisclosures

141

92

4.1

92
93

Application of the AFEP-MEDEF
Corporate Governance
Code of Listed Corporations

141

4.2

Attendance at Annual General
Meetings

141

4.3

Information likely to havean impact in the eventof a public offer

142

4.4

Statement concerning
the corporate officers

142

4.5

Trading in Kering securities
by senior executives, theirfamilies and similar parties
Related-party agreements

143
143

94
95
96
97

98
98
116

120

127
127
128

131
133

4.6
5-

Remuneration of corporate
144
officers
5.1 Remuneration policy applicableto the Chairman and Chief
Executive Officer (executive
corporate officer) for 2024
subject to approval by the Annual
General Meeting of April 25, 2024
(ex-ante vote)
144
5.2 Remuneration policy applicableto the Directors for 2024 subject
to approval by the Annual
General Meeting of April 25, 2024
(ex-ante vote)152
5.3 Report on the remuneration paid
during or awarded for 2023
to corporate officers in respectof their duties (ex-post vote)153

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Corporate governanceKering’s governance

1 - KERING’S GOVERNANCE
Pursuant to Articles L. 225-37 et seq. of the French Commercial
Code, this Report on Corporate Governance was prepared by theCompany’s Board of Directors and accompanies theManagement Report. It notably describes the composition of theBoard of Directors and application of the principle of balanced
representation of women and men on the Board, the conditionsof preparation and organization of its work, compliance with therecommendations of the Corporate Governance Code of Listed
Companies to which the Company refers and includes the

remuneration policy for corporate officers laid down by the
Board. In addition, this report indicates any limitations placed by
the Board on the powers of the Chief Executive Officer of theCompany.
The Board of Directors approved this report in full, including the
remuneration policy for corporate officers, at its meeting on
February 28, 2024, in accordance with the provisions of Articles
L. 225-37 and L. 22-10-8 of the French Commercial Code.

1.1 Reference corporate governance code
The Company refers to the Corporate Governance Code of Listed
Corporations drafted by the AFEP and MEDEF (the "AFEP-MEDEF
Code"). This code, updated on December 20, 2022, is available fordownload from the websites of the AFEP (www.afep.com), the

MEDEF (www.medef.com) and the High Committee on Corporate
Governance (Haut Comité de Gouvernement d’Entreprise,www.hcge.fr).

1.2 Company’s management structure
1.2.1 Roles of Chairman of the Boardof Directors and Chief Executive
Officer combined
In 2005, Kering (then called PPR) adopted a governance structurewith a Board of Directors, which appointed François-Henri
Pinault as Chairman of the Board of Directors and Chief Executive
Officer.
At the Combined General Meetings of May 7, 2009, June 18, 2013,
April 27, 2017, and April 22, 2021, the shareholders decided toreappoint him as a Director. At its meetings held subsequent toeach of these Combined General Meetings, the Board of Directors
decided to maintain the combined role structure andreappointed François-Henri Pinault as Chairman and Chief
Executive Officer. The decision to maintain the combined role
structure was considered best suited to the Group’s organization,
operating arrangements and activities.
The Board took into consideration the special position ofFrançois-Henri Pinault. He is related to Kering’s controllingshareholder and has been actively involved in conducting theGroup’s business affairs, endowing him with long-standing,intimate operational knowledge, plus a wealth of experience. The
Board also underlined the benefits of combining the roles
following the transformation of the Company into a Luxury
group. It also stated the view that this company management
structure, through the consistent, responsive and effective
strategic decision-making it fosters, best fits the Group’s
operational requirements, helps to optimize the Group’s
economic and financial performance, and ensures strong andharmonious communication.
This governance framework is also suited to the Group’s
shareholder structure, which includes individual investors, acontrolling shareholder and institutional shareholders, all ofwhom have a stake in Kering’s long-term development. It is thusaligned with the best interests of the Company and its
shareholders.
In addition, given that the roles of Chairman and Chief Executive
Officer are combined and to provide additional assurance withregard to the proper functioning of the Board and the balance ofpowers, the Board of Directors introduced in 2019, on therecommendation of the Appointments and Governance Committee,— 92

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the role of Lead Independent Director, with the duties describedin section 1.4 of this chapter and in the Board of Directors’internal rules.
In the course of the latest internal assessment of its operations,
the Board of Directors unanimously confirmed the effectivenessof this governance framework for Kering and the robust
mechanisms put in place (outlined below) to secure a balance ofpowers.

1.2.2 Changes in the Executive
Management team in 2023
On July 18, 2023, Kering announced a series of top appointments
aimed at reinforcing stewardship of its Houses, further elevating
its operational expertise at Group level and strengthening its
organization.
Jean-François Palus, who had served as Group Managing Director(with the same powers vis-à-vis third parties as the Chief
Executive Officer) and a Director since 2008, was appointed
President and CEO of Gucci effective October 3, 2023. To allow
him to focus fully on his new role within the Group, Jean-François
Palus resigned from his duties as Group Managing Director and as
Director on October 3, 2023. He was not replaced in his role asGroup Managing Director.
The Group also announced the creation of two Deputy CEO
positions effective September 1, 2023: Francesca Bellettini,
President and CEO of Yves Saint Laurent since 2013, wasappointed Deputy CEO in charge of Brand Development inaddition to her existing responsibilities. In her new role, she is incharge of steering all the Group’s Houses. Jean-Marc Duplaix, theGroup’s Chief Financial Officer since 2012, was appointed Deputy
CEO in charge of Operations and Finance. In this role, he oversees
all the Group’s corporate functions.
The Chairman and Chief Executive Officer is assisted inperforming his duties by the Executive Committee, which had
12 members as of December 31, 2023, including both Deputy
CEOs. A detailed presentation of the Executive Committee
members is provided on pages 22-23 of this Universal
Registration Document.

Corporate governanceKering’s governance1.2.3 Role of the Chairman andChief Executive Officer
In his capacity as Chairman of the Board of Directors, theChairman and Chief Executive Officer organizes and directs thework of the Board and reports on these duties to the Annual
General Meeting. He shall ensure that the corporate structure
operates properly and, in particular, that the Directors are able tofulfill their duties. He convenes, draws up the agenda for andchairs meetings of the Board of Directors.
In his role as Chief Executive Officer, the Chairman and Chief
Executive Officer holds the broadest powers to act on the

Company’s behalf in all circumstances. He exercises thesepowers within the limits of the corporate purpose subject to thepowers that the law expressly confers on shareholders' meetings
and the Board of Directors. The internal rules of the Board of
Directors place limitations on the powers (as set forth below)
exceeding the statutory requirements beyond which any decision
made by the Chairman and Chief Executive Officer must be
authorized in advance by the Board of Directors.
The Chairman and Chief Executive Officer represents theCompany in its dealings with third parties.
The Executive Committee members report to him.

1.3 Balance of power
1.3.1 The Board of Directors
With a view to achieving an effective balance of power, the Grouptakes steps to ensure that the Board’s composition is harmonious
and diverse. The Board of Directors is made up of Directors with avariety of complementary, high-quality profiles. They hold or
have held top-level responsibilities in world-class organizations
and possess the expertise required to gain the clearest possible
grasp of the Group’s businesses and challenges and to fulfill theirduties on the Board of Directors.
As of February 28, 2024, the Board of Directors include fiveindependent Directors out of the nine taken into account (thetwo Directors representing employees are not counted pursuant
to the AFEP-MEDEF Code), which represents a degree of
independence of 56%, above the one-third level required by the
AFEP-MEDEF Code for controlled companies. The proportion of
women on the Board of Directors was 56% (excluding Directors
representing employees, pursuant to article L. 225-27 of theFrench Commercial Code), above the level of 40% required bylaw.
Since 2019, the Board of Directors’ members have included a
Lead Independent Director with a special remit for governanceand shareholder relations presented in section 1.4 of this chapter.
The Board of Directors is also assisted in the conduct of its duties
by four specialized Committees (Audit Committee, Remuneration
Committee, Appointments and Governance Committee andSustainability Committee). These Committees prepare andprovide additional insights for the Board's work in the fields andduties entrusted to them. As of February 28, 2024, 60% of themembers of the Appointments and Governance Committee and
67% of the members of the Sustainability Committee wereindependent (excluding Directors representing employees). Since
January 9, 2024, when Tidjane Thiam left the Board, half themembers of the Audit Committee and of the Remuneration
Committee have been independent Directors (as of December 31,
2023, the degree of independence was 60%) and three of the fourCommittees are chaired by an independent Director (namely the
Appointments and Governance Committee, the Remuneration
Committee and the Sustainability Committee).

Executive sessions are another means by which a balance ofpower is maintained between the Company’s governance bodies.
These meetings are organized without the executive corporate
officers and are held at least once a year, in line with therecommendations of the AFEP-MEDEF Code (see section 3.2.3 ofthis chapter for more details).
In accordance with the recommendations of the AFEP-MEDEF
Code, the Board of Directors discusses its operations every year
and carries out a formal assessment every three years. At theend of these meetings, the Directors set new objectives for
improving the quality of their organization and ensure that allimportant issues are suitably prepared and addressed.
The conditions of preparation and organization of the work of theBoard of Directors are described in section 3 of this chapter.

1.3.2 Limitations placed on the powersof the Chief Executive Officer
To maintain a balance of powers and create the conditions forharmonious governance, the Company has limited the powers of
the Chief Executive Officer.
Accordingly, notwithstanding the statutory provisions
governing the authorizations that fall within the remit of theBoard (related-party agreements, endorsements, suretyships
and guarantees, divestments of shareholdings or sale of realestate, etc.), article 15 of the Company’s Articles of Associationand the internal rules of the Board of Directors state that thefollowing decisions by the Chief Executive Officer require theprior approval of the Board:• matters and transactions that have a substantive effect on
the strategy of the Company or more generally of the Group,
its financial structure or its scope of business activity;• except in the event of a decision by the Annual General
Meeting, issues of securities of all types, that are liable tocause a change in the share capital;• the following transactions by Kering SA or by any entity
controlled by the Group, insofar as they each exceed €500 million,
an amount set annually by the Board of Directors:– all investments or divestments, including the acquisition,
sale or exchange of holdings in all existing or futurebusinesses,– all purchases or sales of Group real estate.

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Corporate governanceKering’s governance1.3.3 Dialogue with Executive
Management andoperational divisions
The Directors can take up matters with Executive Management at
any time and with complete transparency, and Executive
Management keeps the Directors regularly informed of allimportant events concerning the Company’s business affairs.
The Directors are in regular contact with the Group’s senior
executives, who take part at the strategic seminars and meetingsof the Board of Directors and specialized Committees, according
to the items on the agenda and the Group’s latest developments.
The two Deputy CEOs appointed on July 18, 2023 effective
September 1, 2023, are regularly invited to attend Board of
Directors’ meetings. Their involvement enhances the dialogue
between Directors and the operational and functional
departments.
Each Director is also entitled, if they so wish, to meet the Group’s
senior executives outside these meetings in order to gain a better
insight into the Group’s businesses or certain operational issues.

1.4 Role and responsibilities of the Lead Independent Director
1.4.1 Presentation of the Lead
Independent Director
In light of changes to the composition of the Board of Directors
and following a discussion with the Company’s shareholders inlate 2018, the Board of Directors decided to appoint a Lead
Independent Director to provide additional assurance withregard to the balance of power.
Acting on the recommendation of the Appointments andGovernance Committee, the Board of Directors created at its
meeting on February 11, 2019, the position of Lead Independent
Director.
Following the appointment of Véronique Weill at the Annual
General Meeting of April 28, 2022, the Board of Directors
entrusted this position to her. She replaced Sophie L’Hélias
whose term of office expired on March 4, 2022. She brings to
Kering’s Board of Directors her extensive experience, particularly
in corporate governance.

1.4.2 Lead Independent Director’s
responsibilities and powers
Organization of the work of the Boardof Directors and relationship with Directors
The Lead Independent Director:• is consulted on the agenda and schedule of Board meetingsand may propose additional agenda items to the Chairman;• liaises between the independent Directors, other Board
members and Executive Management. This includes
maintaining regular, open dialogue with each of the
Directors, particularly with the independent Directors. It also
involves organizing at least one meeting per year without theexecutive corporate officers;• prevents conflicts of interest. The Lead Independent Director
brings to the Board’s attention any potential conflicts ofinterest identified involving executive corporate officers orother Board members;• ensures compliance with the Board of Directors’ internal
rules;• participates in the process of assessing the Board of
Directors.

A loss of independent director status would immediately put an
end to the Director’s role as Lead Independent Director.
The Lead Independent Director’s responsibilities are described in
the internal rules of the Board of Directors.

Relationship of the Lead Independent
Director with shareholders
The Lead Independent Director:• in coordination with the Chairman of the Board, represents
the Board in its dealings with investors concerning
environmental, social and governance (ESG) matters. This
includes meeting with certain shareholders and reporting
their ESG-related questions back to the Board;• stays informed about shareholders’ requests in relation tocorporate governance and ensures that responses areprovided.

Resources
The Lead Independent Director:• has access to all documents and other information he/she
deems necessary for the performance of his/her duties andmay request that external technical studies be carried out, at
the Company’s expense;• is kept informed about the Company’s activities on a regularbasis. He/she may also meet with the Group’s operational orfunctional executives, at his/her request and after having
informed the Chairman and the Chief Executive Officer;• may request the Board Secretary’s assistance with carryingout their duties.

Reporting
The Lead Independent Director reports to the Board of Directors
on the performance of his/her duties once a year. He/she may
also be asked by the Chairman to report on his/her activities to
Annual General Meetings.
At the end of each term of office served by the Lead Independent
Director, the Board of Directors reviews the resources madeavailable to the Lead Independent Director to perform his/hertasks and the associated powers with a view to making
adjustments, if necessary.
In addition, the Lead Independent Director provides the Board
with a summary of the work carried out during the year.

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Corporate governanceKering’s governanceWork carried out in 2023
During 2023, Veronique Weill, in her capacity as Lead
Independent Director:• stayed in regular contact with the Chairman and Chief
Executive Officer concerning all material governance issues
arising during the year, as well as with all the Directors;• reported on the governance work performed by the Board of
Directors during 2022 at the Annual General Meeting ofApril 27, 2023, and presented to shareholders the resolutions
on the remuneration of corporate officers submitted for theirapproval;• participated in the preparation of agendas for Board
meetings;• presented to the Board of Directors the conclusions of theinternal assessment of the Board of Directors and thespecialized Committees that she led in late 2022 and actively
participated in drawing up the roadmap after the assessment
had been completed and in monitoring its implementation;• was involved in the process of formally assessing thefunctioning of the Board of Directors and its specialized
Committees, which was led by an independent external
consultant in 2023;• organized and led the six meetings of the Remuneration
Committee, of which she is the Chair;• actively contributed to preparations for the ESG roadshow
and attended all the related work meetings arranged by
Investor Relations and Legal Departments;• attended the ESG roadshow held in December 2023 with key
investors representing around 40% of the free float (and22.5% of total share capital), during which she talked about
strategic governance issues with them (the presentation usedat the roadshow is available from the Company’s website);• reported in detail to the Board of Directors on theconversations she had with investors;• organized and chaired discussions during the two executive
sessions (meetings of the Directors without either of theexecutive corporate officers being present) on March 22 andDecember 7, 2023;• convened two meetings of the Remuneration Committee todiscuss the approval rate of below 80% recorded for the 5th
resolution at the Annual General Meeting of April 27, 2023,
concerning the remuneration awarded and paid in 2022 to
the Chairman and Chief Executive Officer, and led the review
of potential changes that could be made to the remuneration
policy for executive corporate officers.
The Lead Independent Director attended 13 of the 14 meetings ofthe Board of Directors and all meetings of the four specialized
Committees on which she sits, representing an attendance rate of
97% at a total of 28 meetings in 2023.

1.5 Role and duties of the Climate Change Lead
In line with the Group’s climate action commitments, the Boardof Directors decided during its meeting on February 16, 2022, tocreate the role of Climate Change Lead. The Climate Change
Lead’s role is to make certain that climate issues are taken into
account at the highest echelons of the Group and given fullconsideration in the Board's thinking and decision-making
process.
At its meeting of April 28, 2022, the Board of Directors appointed
Jean-Pierre Denis to this role. He possesses expertise in risk
management, including non-financial risks and the link between
financial and non-financial performance, as well as in sustainable
development, especially renewable energies and waste
management. Jean-Pierre Denis served as Chairman of Dalkia(renewable energies) from 1999 until 2003, was a member ofVeolia Environnement’s Executive Board from 2000 until 2003
and is a director of Paprec Holding (recycling and waste
processing). The experience and broad-ranging expertise of JeanPierre Denis, a member of Kering’s Audit Committee since 2008
and of the Sustainability Committee since 2020, can be relied on
to ensure internal control and risk management procedures are
implemented within the Group. They give him an accurate
picture of the sustainable development and environmental
protection policies implemented within the Group.
Working together with the Chair of the Sustainability
Committee and the Lead Independent Director, the main dutiesof the Climate Change Lead consist in:• ensuring that the Board at large and each of the Directors
individually have a clear grasp and understanding of theclimate change priorities and impacts, generally andspecifically for Kering and the Luxury sector;• proposing any actions deemed relevant to enhance theBoard’s overall expertise in the area (training, involvement ofexperts, etc.);• regularly informing the Board about the latest advances inscientific knowledge about global warming (largely focusedon the IPCC’s work) and recent developments in reporting
obligations for businesses in the area (regulatory news andwatch);• assessing and ranking risks and opportunities raised byclimate change within the governance framework toguarantee the issue is addressed strategically as part of along-term approach;• ensuring the Group’s climate ambitions comply with the Paris
Agreement and are aligned with the highest international
standards and practices (SBT, Net Zero trajectory, TCFD,
European Taxonomy, shareholders’ expectations and otherstakeholders, etc.) and conducive to extending the Group’s
climate leadership;• participating in strategic direction discussions concerning theclimate and transition financing trajectory (resilience andrealignment of the Group’s business model with climatechange priorities);• ensuring the climate dimension is a factor in all key decisions
made by the business (innovation, technology decisions,investments, etc.);• reporting to the Board at least twice a year, in coordination
with the Board’s Sustainability Committee, of which he is amember, on deployment of the climate strategy within theGroup, on the implementation of the action plans and theresults of climate change mitigation and adaptation efforts.

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Corporate governanceKering’s governanceOver the past year, the Climate Change Lead’s work included:• in collaboration with Kering’s Sustainability teams, he oversaw
the preparation of the training seminar for the Board of
Directors on climate issues. A decision was made to organize
this seminar following the internal assessment of the Board of
Directors in late 2022, during the course of which the Directors
requested specialized climate training. At the seminar held on
May 4, 2023, presentations were given to Directors by internaland external experts on a variety of issues related to theclimate. This gave them a complete overview of the global,
industry and Group-related challenges (see section 3.4.1 below
for more details);• the Climate Change Lead attended the preparatory meetings
ahead of the presentation to the Audit Committee of themeasures put in place by the Group in advance of the newsustainability reporting regime ("CSRD").

1.6 Governance-related dialogue with shareholders
Kering places great importance on the dialogue with its
shareholders and seeks to maintain and strengthen their trust byproviding them with regular information on the Company’s latest
developments, by holding meetings throughout the year andmaking sure that it answers any questions and responds to any
comments they may have. These valuable discussions enable theBoard of Directors to gain clearer insights into shareholders’expectations, consider new ideas and make changes to theGroup’s practices from a continuous improvement perspective.
From a governance perspective, the Lead Independent Director
and the Investor Relations Department manage this dialogue
under the oversight of the Chairman and Chief Executive Officer,
in tandem with the Board Secretary and the Legal Department.
In late 2023, as every year since 2018, an ESG (environmental,social and governance) roadshow was held for major investors in
the Company (representing around 40% of the free float and22.5% of total share capital). The Lead Independent Director, theBoard Secretary, the Chief Sustainability and Institutional Affairs
Officer and the Investor Relations Department took part in theroadshow. These meetings provided the Lead Independent
Director with an opportunity to have conversations with investors
about the Group’s governance, including recent changes to its
Executive Management, the composition of the Board of
Directors and the remuneration of executive corporate officers.

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The Lead Independent Director reported in detail to the Board of
Directors on the observations made and expectations expressedby investors at the event. The Board considered the insights
gained and in particular possible changes to be made to the
remuneration policy for executive corporate officers, given theapproval rate of below 80% recorded for the 5th resolution of theAnnual General Meeting of April 27, 2023, concerning the
remuneration awarded and paid in 2022 to the Chairman andChief Executive Officer, and desirable changes to the Board’s
composition in view of the forthcoming expiry of terms of office.
In addition, the Investor Relations Department, working intandem with the Board Secretary and the Legal Department,
holds meetings with the Group’s main institutional investors
every year ahead of the Annual General Meeting to explain the
resolutions to be submitted to shareholders for their approval.
These meetings also provide a first-class opportunity to discuss
the Group’s governance arrangements.
The presentations given by Kering at these various meetings are
made available on its website www.kering.com.
Please refer to section 2.6 "Financial communications policy" ofchapter 7 "Investor information" for further information about
the Company’s dialogue with its shareholders.

Corporate governanceKering’s governance

1.7 Succession plan
The Appointments and Governance Committee periodicallyreviews the succession planning process for the Group’s
executive corporate officer succession plan and the succession
planning process for the current Executive Committee
members, House CEOs and their Creative Directors.

1.7.1 Succession plan for the Chairman
and Chief Executive Officer
The succession planning process for the Chairman and Chief
Executive Officer was reviewed by the Appointments andGovernance Committee at its meeting on December 19, 2023.
The method selected takes into account the Group’s specificcharacteristics, particularly its governance structure, itsorganization (relationship between Corporate and the Group's
House teams), as well as its strategic challenges and priorities as
defined by the Board of Directors. Various phases have been
defined. The first involves determining the potential changes ingovernance that would be required in the event of a change at
the Company’s helm, based on an extensive study oforganizational practices in the industry and among Kering’s CAC
40 peers.
During their regular dialog, the Committee Chair discussed with
the Chairman and Chief Executive Officer the process forappointing his successor, the required skills and expertise and alist of potential candidates.

1.7.2 Succession plan for Executive
Committee members, House CEOs
and Creative Directors
The succession planning process for the Executive Committee
members, House CEOs and Creative Directors was also reviewed
by the Appointments and Governance Committee at its meetingon December 19, 2023.
Potential candidates, their career progress and their promotions
are assessed on a regular basis by the Human Resources
Department with the assistance of an external firm for the
purpose of effective succession planning for these key positions
and achieving the strategic goals of the Group and its Houses.
This assessment is conducted both internally during the annual
talent reviews and externally via continuously monitoring. One
person reporting to the Deputy CEO in charge of Brand
Development is charged with spotting and tracking the progressof creative talent within the Group’s Houses.
The internal and external talent spotting processes underpin
effective succession arrangements for key roles, remedying theissues that can arise if these roles are vacated. In addition, thecollective expertise accumulated by teams, especially at thecreative studios in each of the Houses, remains the best means ofsafeguarding business continuity and the continued execution of
the Group’s strategy, especially during transition periods.
In addition, a gender balance analysis always forms part of talentreviews and succession planning.

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Corporate governance
Composition of the Board of Directors

2 - COMPOSITION OF THE BOARD OF DIRECTORS
2.1 Members of the Board of Directors as of February 28, 2024

(1)
(2)
(3)

(4)
(5)

— 98

Based on the independence criteria laid down in the AFEP-MEDEF Code.
Member of the Executive Board from 1993 to 2001 and the Supervisory Board from 2001 to 2005.
Maureen Chiquet was coopted as an independent Director by the Board of Directors at its meeting on July 18, 2023 effective September 1,
2023.
Member of the Supervisory Board until 2005.
Directors representing employees are not included in the calculation of the degree of independence, as per the recommendations of the AFEPMEDEF Code.

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Corporate governance
Composition of the Board of Directors

Biographies of the Directors with details of their directorships
and positions in other companies
The following information is presented separately for each Director:• professional experience and expertise in the area of business management;• directorships and positions held in 2023;• directorships and positions held in the last five years, but now expired.

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Corporate governance
Composition of the Board of Directors

François-Henri Pinault joined the Pinault group in 1987. He held senior positions in
the main subsidiaries of the Group before becoming a member of the Management
Board of Pinault Printemps Redoute in 1993.
From 1997 to 2000, he served as Chairman and Chief Executive Officer of Fnac.
In 2000, François-Henri Pinault was appointed Deputy Chief Executive Officer of PPR(since renamed Kering) and in 2003, Chairman of the Artémis group, Kering’s
controlling shareholder.

François-Henri Pinault

Chairman and Chief Executive Officer

Number of shares held: 37,141
Born on May 28, 1962 (61 years old)
French citizen
Kering40, rue de Sèvres
75007 Paris
FranceAfter holding several key positions at PPR (Chairman of the Executive Board, ViceChairman of the Supervisory Board, member of the Supervisory Board and memberof the Executive Board), François-Henri Pinault was appointed Chairman and Chief
Executive Officer of Kering in 2005. He gradually transformed Kering into a global
Luxury group, a pioneer in sustainability with a deep commitment to theadvancement of women - two causes that are particularly close to his heart. He alsochairs the Kering Foundation, which was founded in 2009 to combat violence against
women.
François-Henri Pinault, a French citizen, is a graduate of the École des hautes études
commerciales (HEC) business school.
Following the Annual General Meeting on April 22, 2021, the Board of Directors
reappointed him as Chairman and Chief Executive Officer for the duration of his termof office as a Director, which will expire at the end of the Annual General Meeting
called to approve the financial statements for the year ended December 31, 2024.
François-Henri Pinault is also a member of the Sustainability Committee.
He attended the 14 Board meetings in 2023 and the two meetings of the
Sustainability Committee of which he is a member, representing an attendance rateof 100%.
François-Henri Pinault is legal manager and managing partner of Financière Pinault,
which directly and indirectly held 42.23% of Kering’s share capital as of December 31,
2023.

First appointed in 1993
Term of office last renewed on April 22,
2021
Term of office expires at the Annual General
Meeting called to approve the financial
statements for the year ended
December 31, 2024

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Composition of the Board of Directors

Directorships and positions held as of December 31, 2023:
Position
Company
at the level of the majority shareholder group:

Country

Start dates

Legal manager
ChairmanFinancière Pinault SCA
Artémis SAS

FranceFranceJune 2000
July 2018

Member of the Management Board
Chairman of the Board of Directors

SC Château Latour
Pinault Collection SAS

FranceFranceJuly 1993
May 2016

Chairman
Representative of Sonova Management,
legal manager

Sonova Management SAS
Sonova SCS

FranceFranceJuly 2015
September 2015

Chairman
Chairman

Artémis 28 SAS
RRW France SAS

FranceFranceJanuary 2018
May 2018

Director
within the Kering group:

Creative Artists Agency LLC

United States

September 2023

Director
Director

Kering International Ltd
Kering UK Services Ltd

United Kingdom
United Kingdom

May 2013
May 2014

Director
Director

Kering Eyewear SpA
Yves Saint Laurent SAS

Italy
FranceNovember 2014
June 2013

Chairman of the Strategy Committee

Boucheron SAS

FranceAugust 2020

Directorships and positions held in the last five years, but now expired:
Position
Representative of Artémis 80, director
Chairman of the Strategy Committee
Director
Director

Company
DEEZER (formerly I2PO) SAS
Boucheron Holding SAS
Stella McCartney Ltd
Manufacture et fabrique de montres
et chronomètres Ulysse Nardin le Locle SA

Country
FranceFranceUnited Kingdom
Switzerland

End dates
June 2022
July 2020
July 2019
November 2019

Manager
Director
Group Managing Director
Chairman and Chief Executive Officer

Volcom LLC
Sapardis SE
Artémis SA
Artémis SA

United States
FranceFranceFranceApril 20192018
January 2018
July 2018

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Composition of the Board of Directors

Véronique Weill, a French national, has held numerous responsibilities in financial
services, with a background of more than 20 years in investment banking in the
United States, in the UK and in France, then 10 years at AXA, as well as in the field of
new technologies and digital.
A graduate of the Institut d’Études Politiques (IEP) in Paris and holder of a literature
degree from the Sorbonne University, Véronique Weill began her career at Arthur
Andersen Audit in Paris.
From 1985 to 2006, she held various positions of responsibility within JP Morgan in
Paris, London and New York, in particular as Head of European, then Global Head ofOperations and Technology for asset management and private clients, then Global
Head of Operations for Investment Banking and Shared Services.

Véronique Weill

Lead Independent Director
Chair of the Remuneration Committee

After returning to France in 2006, she joined the AXA Group as Managing Director of
AXA Business Services and Director of Operational Excellence; she became a memberof the Management Committee in 2010 as Chief Operating Officer, then Group Chief
Customer Officer in charge of customers, brand and digital of the AXA Group. She has
chaired subsidiaries in France, Spain and Italy, and she was a member of Scientific
Board for AXA Research Fund.
In August 2017, she joined Publicis Groupe as General Manager, in charge of mergers
and acquisitions, operations, IT and real estate, and as a member of the GroupManagement Committee.

Number of shares held: 50
Born on September 16, 1959 (64 years old)
French citizen
CNP Assurances
4 Promenade Cœur de Ville
92130 Issy-les-MoulineauxFranceFirst appointed in 2022
Term of office expires at the Annual
General Meeting called to approve thefinancial statements for the year ended
December 31, 2025

— 102

Since July 2020, she has been Chair of the Board of Directors of CNP Assurances.
She is also a member of the Board of Directors of Valeo and of the Supervisory Boardof Rothschild & Co.
Véronique Weill has been a Director of Kering since April 28, 2022. Her term of officewill expire at the end of the Annual General Meeting called to approve the financial
statements for the year ending December 31, 2025.
The Board of Directors has designated Véronique Weill as Lead Independent Director.
In coordination with the Chairman, she represents the Board in its dealings withinvestors concerning environmental, social and governance (ESG) matters.
Véronique Weill is the Chair of the Remuneration Committee and a member of threeother specialized Committees, namely the Audit, the Appointments and Governance,
and the Sustainability Committees.
In 2023, she attended 13 of the 14 Board meetings and all meetings of the fourCommittees on which she sits: six Remuneration Committee meetings, five Audit
Committee meetings, two Appointments and Governance Committee meetings andtwo Sustainability Committee meetings, representing an attendance rate of 97%.

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Corporate governance
Composition of the Board of Directors

Directorships and positions held as of December 31, 2023:
Position
Chair of the Board of Directors

Company
CNP AssurancesCountry
FranceStart dates
2020

Chair of the Board of Directors
Director

CNP Assurances Holding SAS
CNP Seguros Holding Brasil

FranceBrazil2023
2020

Director
Director, co-Chair of the campaign
committee

Holding XS1
Gustave Roussy foundation

BrazilFrance2020
2011

Member of the Supervisory Board
DirectorRothschild & Co(1)Valeo(1)FranceFrance2020
2016(1) Listed company (as of the date the position was held).

Directorships and positions held in the last five years, but now expired:
Position
Director

Company
Translate Plus – Publicis Groupe

Country
United Kingdom

End dates
2020

Director
Director

BBH Holding Ltd
Prodigious UK

United Kingdom
United Kingdom

2020
2020

Director
Director

Georges Besse foundation
Musée du Louvre

FranceFrance2020
2020

Member of the Advisory Board

Salesforce

United Kingdom

2022

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Composition of the Board of Directors

A French national, Serge Weinberg is Chairman of the investment firm Weinberg
Capital Partners, which he founded in 2005. He chaired Sanofi’s Board of Directors
from 2010 until 2023.
Serge Weinberg held various positions as a "sous-préfet" from 1976 to 1981 andbecame Chief of Staff of the French Budget Minister, Laurent Fabius, in 1981. From1982 to 1987, he held management positions at French television channel France 3
and at Havas Tourisme Group. He served as CEO of Pallas Finance for three years
before joining the Pinault Group in 1990 as President of CFAO. In the Pinault Group,
he served as Chairman and CEO of Rexel from 1991 to 1995 and chaired the Executive
Board of the PPR Group for 10 years. In 2005, he founded the investment firm
Weinberg Capital Partners. He was appointed Chairman of Sanofi’s Board of
Directors in 2010 and remained in that role until May 2023. Serge Weinberg is also amember of the Board of the AFEP and one of the founders of the Institute for Brain
and Spinal Cord Disorders (ICM) and Télémaque.

Serge Weinberg

Independent Director
Chair of the Appointments andGovernance Committee

Serge Weinberg holds the rank of Commander in the "Légion d’honneur" (French
Legion of Honor).
Serge Weinberg holds a bachelor’s degree in Law, a graduate degree from the Institutd’Études Politiques in Paris and is a graduate of ENA (École Nationale d’Administration).
Serge Weinberg has been a Director of Kering since April 28, 2022. His term of officewill expire at the end of the Annual General Meeting called to approve the financial
statements for the year ending December 31, 2025.

Number of shares held: 100
Date of birth: February 10, 1951 (73 years old)
French citizen
1, rue Euler
75008 Paris
FranceSerge Weinberg is Chair of the Appointments and Governance Committee and amember of the Audit and the Remuneration Committees.
In 2023, he attended 12 of the 14 Board meetings and all the meetings of theCommittees on which he sits: five Audit Committee meetings, two Appointments andGovernance Committee meetings and six Remuneration Committee meetings,
representing an attendance rate of 93%.

First appointed in 2022
Term of office expires at the Annual General
Meeting called to approve the financial
statements for the year ended
December 31, 2025

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Corporate governance
Composition of the Board of Directors

Directorships and positions held as of December 31, 2023:
Position
ChairmanCompany
Weinberg Capital Partners

Country
FranceStart dates
March 2005

Chairman
Director

Maremma SAS
Piasa SAFranceFranceJanuary 2015
May 2008

Chairman
Chairman

Sagra SAS
Financière Alizé SAS

FranceFranceNovember 2018
June 2016

Directorships and positions held in the last five years, but now expired:
Position
Chairman of the Board of Directors

Company
Sanofi(1)Country
FranceEnd dates
May 2023

Legal manager
Director

Alret
C.P.P.J. SA

FranceFranceNovember 2023
December 2023

Chairman
Representative of WCP

Guetaria
ADIT

FranceFranceNovember 2022
October 2019

Chairman of the Supervisory Board
ChairmanFinancière ClimaterFinancière Piasa

FranceFranceJanuary 2018
June 2018

Chairman of the Supervisory Board
Director
ChairmanFinancière TESS
Madrigall
Piasa Holding

FranceFranceFranceOctober 2019
June 2019
June 2018(1) Listed company (as of the date the position was held).

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Composition of the Board of Directors

Emma Watson is a British actor and activist. She first came to the public’s attention
playing Hermione Granger in the film adaptations of the Harry Potter book series,
which enjoyed immense success worldwide. Over the past 20 years, she has become
one of the world’s most popular actors and best-known activists.
Between 2011 and 2014, Emma Watson’s filmography included My Week With Marilyn,
The Perks of Being a Wallflower, The Bling Ring, Noah and Disney’s Beauty and theBeast.
She most recently starred in Greta Gerwig’s Little Women.
In May 2014, she earned a degree in English literature from Brown University.
Also in 2014, she was appointed a UN Women Global Goodwill Ambassador andlaunched the HeForShe initiative aimed at involving men in the promotion of genderequality. Her work on the HeForShe campaign earned her a place on the Time 100 listof the world’s most influential people in 2015.

Emma Watson

Independent Director
Chair of the Sustainability Committee

Number of shares held: 50
Born on April 15, 1990 (33 years old)
British citizen
55 Loudoun Road – London NW8 0DL,
United Kingdom
First appointed in 2020
Term of office expires at the Annual
General Meeting called to approve
the financial statements for the year
ended December 31, 2023

In 2016, she created Our Shared Shelf, a feminist book club.
Emma Watson sits on the Time’s Up Entertainment Steering Committee and brought
the movement to the United Kingdom, coordinating its launch at the UK Film BAFTAs
in 2018 and building a network of hundreds of women from across the industry.
Her work with Time’s Up led to the establishment of the new UK Justice and Equality
Fund, which aims to fight the existing culture of harassment, abuse and impunity.
The fund was kickstarted by Emma Watson’s GBP 1 million donation and is hosted by
Rosa, a UK non-profit foundation that aims to support initiatives for women, young
women and girls in the United Kingdom.
Emma Watson has also helped draft new UK industry-wide guidelines on harassment
and bullying with the British Film Institute (BFI), the British Academy of Film and TV
Arts (BAFTA), and the Advisory, Conciliation and Arbitration Service (ACAS) and otherleading bodies.
In 2019, French President Emmanuel Macron invited her to sit on the G7’s advisory
Gender Equality Council. Emma Watson is also a pioneer in advocating forsustainable fashion and is a supporter of Good on You, a mobile app that allows
consumers to check the sustainability credentials of clothing brands. In 2018, she
was invited to guest edit a Vogue Australia publication on sustainable development
and responsible consumption.
Emma Watson has been a Director of Kering since June 16, 2020. Her term of officewill expire at the end of the Annual General Meeting called to approve the financial
statements for the year ending December 31, 2023.
Emma Watson is Chair of the Sustainability Committee.
She attended six of the 14 Board meetings held in 2023 and both the Sustainability
Committee meetings, representing an attendance rate of 50%.
Emma Watson did not hold any other directorships or positions as of December 31,
2023, and has not held any other corporate office over the past five years.

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Corporate governance
Composition of the Board of Directors

Jean-Pierre Denis is an Inspector of Finance and a graduate of HEC and ENA. He
served as Deputy General Secretary of the Office of the President of the French
Republic from 1995 to 1997, Advisor to the Chair of Compagnie Générale des Eaux,
which became Vivendi (1997 to 1999), Chief Executive Officer of Dalkia (Vivendi groupthen Veolia Environnement) (1999 to 2003) and member of the Executive Board ofVivendi Environnement, which became Veolia Environnement (2000 to 2003),
Chairman of the Board of Directors of Banque du développement des petites etmoyennes entreprises (BDPME) (2003 to 2005), Chairman and Chief Executive Officer
of Crédit Mutuel Arkéa and of the Fédération du Crédit Mutuel de Bretagne until May
2021. Jean-Pierre Denis has been Vice-Chairman of the Paprec Group since October
2021.

Jean-Pierre Denis

Director
Climate Change Lead
Chair of the Audit Committee

Jean-Pierre Denis has been a Director of Kering since June 9, 2008. His term of office
was renewed at the Combined General Meeting on April 29, 2016 and the Combined
General Meeting on June 16, 2020 and will expire at the end of the Annual General
Meeting called to approve the financial statements for the year ending December 31,
2023. With the renewal of Jean-Pierre Denis’ term of office at the Annual General
Meeting of June 16, 2020, he lost his Independent Director status because he hadserved for over 12 years.
Jean-Pierre Denis is a member of the Remuneration and the Sustainability
Committees. Following Tidjane Thiam’s departure from the Board on January 9,2024, Jean-Pierre Denis has served as interim chair of the Audit Committee since its
February 5, 2024 meeting.

Number of shares held: 500

Jean-Pierre Denis was appointed as Climate Change Lead on the Board of Directors
on April 28, 2022. His role and duties are presented in section 1.5 of this chapter.

Born on July 12, 1960 (63 years old)
French citizen

He attended the 14 Board meetings held in 2023 and all meetings of the Committees
on which he sits: five Audit Committee meetings, six Remuneration Committee
meetings and two Sustainability Committee meetings, representing an attendance
rate of 100%.

40, rue de Sèvres
75007 Paris
FranceFirst appointed in 2008
Term of office last renewed on June 16,
2020
Term of office expires at the Annual
General Meeting called to approve
the financial statements for the year
ended December 31, 2023

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Corporate governance
Composition of the Board of Directors

Directorships and positions held as of December 31, 2023:
Position
Director

Company
Avril Gestion

Country
FranceStart dates
December 2014

Director
Non-voting Director (censor)

Paprec Holding
Tikehau Capital (1)FranceFranceNovember 2010
May 2018

Non-voting Director (censor)
Chairman

Altrad Investment Authority
Keriode SAS

FranceFranceJuly 2018
Juin 2021

Chairman
Chairman of the Supervisory Board

Château Calon-Ségur SAS
Les Terroirs de Suravenir SAS

FranceFranceDecember 2012
September 2020

Director
Chairman

Caisse de Crédit Mutuel du Cap Sizun
Altrad Solidarity endowment fundFranceFranceMay 2008
February 2023

ChairmanConfédération des métiersde l'environnement

FranceMay 2023(1) Listed company (as of the date the position was held).

Directorships and positions held in the last five years, but now expired:
Position

CompanyCountry

End dates

Director
Chairman

JLPP Invest SAS
Fédération du Crédit Mutuel de Bretagne

FranceFrance2022
2021

Chairman
Director

Crédit Mutuel Arkéa
Nexity(1)FranceFrance2021
2021

Director
Member of the Supervisory Board

Altrad Investment Authority
Tikehau Capital(1)FranceFrance20182018(1) Listed company (as of the date the position was held).

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Corporate governance
Composition of the Board of Directors

Concetta Battaglia is Head of Operations at Kering UK Services. After joining Gucci
Group in 2005 as personal assistant to the Worldwide Store Planning Director, she
moved into the facilities management team before progressing to her current role.
Among other responsibilities, she is responsible for the development andimplementation of health and safety policies and procedures within Kering and its
Houses in the United Kingdom, as well as ensuring the operational implementationof the Group’s ESG policies within her area of responsibility.
Before joining Kering, she worked in sales and customer services.
Concetta Battaglia, an Italian and British citizen, has lived in Switzerland and Italy
and currently resides in London.
She graduated from Sapienza University of Rome, Italy, in 1996 with a degree inpolitical science.

Concetta Battaglia

Director representing employees

Concetta Battaglia was elected as the second Director representing employees by
the Kering European Works Council on September 2, 2020 for a term of office offour years. Since 2016, she has promoted and implemented robust measures toprotect employees from workplace hazards.
Concetta Battaglia is a member of the Appointments and Governance and theSustainability Committees.

Number of shares held: 80
Born on January 28, 1969 (55 years old)
Italian and British citizen

In 2023, she attended the 14 Board meetings and all meetings of the Committees on
which she sits: two Appointments and Governance Committee meetings andtwo Sustainability Committee meetings, representing an attendance rate of 100%.
Concetta Battaglia did not hold any other directorships or positions as ofDecember 31, 2023, and has not held any other corporate office over the past five years.

Kering40, rue de Sèvres
75007 Paris
FranceFirst appointed on September 2, 2020
Term of office expires
on September 1, 2024

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Corporate governance
Composition of the Board of Directors

An American national, Maureen Chiquet was the first Global CEO of Chanel between
2007 and 2016, elevating the house's iconic brand and spearheading its worldwide
expansion.
After graduating from Yale University with a degree in literature, Maureen Chiquet
moved to Paris to begin her career in marketing at L’Oréal. She then pivoted to
fashion, joining The Gap, and helping to launch and build the Old Navy brand. She
was named President of Banana Republic before becoming Chief Operating Officer
and President of Chanel’s U.S operations in 2003. In 2007, she was appointed at thehelm of Chanel as Global CEO, a position she held for nearly ten years. After leaving
Chanel in 2016, she authored a book, "Beyond The Label: Women, Leadership andSuccess on Our Own Terms", which charts her career and unique perspective on
women in leadership.

Maureen Chiquet

Independent Director

Number of shares held: 50
Born on March 9, 1963 (60 years old)
US citizen
406 Nettleton Hollow Rd
Washington CT06793
United States

Maureen Chiquet chairs the Board of Directors of Golden Goose and its Diversity& Inclusion committee and also sits on its Ethics committee. She also chairs theBoard of Directors of La DoubleJ, is a Director of Canada Goose and Credo, a clean
beauty retailer, and is a senior advisor to Permira. Previously she sat on the Board of
Directors of Vivendi and was a Director of Yale Corporation and of the New York
Academy of Art.
The Board of Directors coopted Maureen Chiquet as a Director at its meeting on
July 18, 2023 effective September 1, 2023. Her appointment as an Independent
Director is subject to shareholder approval at the Annual General Meeting on April 25,
2024. Concomitantly, the Board of Directors appointed her as a member of the
Sustainability Committee.
In 2023, she attended three of the four Board meetings held after she was coopted
and both the Sustainability Committee meetings, representing an attendance rateof 83%.

First appointed in September 2023
(subject to ratification of her appointment at
the Annual General Meeting on April 25, 2024)
Term of office expires at the Annual
General Meeting called to approve
the financial statements for the year
ended December 31, 2025

Directorships and positions held as of December 31, 2023:
Position
Non-executive chair
Chair of the Board of Directors
Director
Director

Company
Golden Goose SpA
La DoubleJ SRL
Canada Goose Inc.
Eco-Chic LLC d/b/a Credo

Country
Italy
Italy
CanadaUnited States

Start dates
June 2020
February 2023
August 2017
January 2021

Country
United Kingdom

End dates
April 2023

Directorships and positions held in the last five years, but now expired:
Position
Director— 110

Company
MF Midco Limited

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Corporate governance
Composition of the Board of Directors

A Turkish and British national, Yonca Dervisoglu is Google’s Vice President ofMarketing for Europe, the Middle East and Africa. She leads the company’s marketingin the region: managing teams across 35 countries, building momentum for thecompany’s AI efforts, helping businesses of all sizes reach customers and grow,bringing Google's products to people across the region. She co-founded Google Arts
& Culture (bringing the world’s art and culture online so it’s accessible to anyone,
anywhere) and also the Grow with Google programme, which has trained more than
100 million people worldwide in digital skills.
Prior to joining Google in 2006, Yonca Dervisoglu held senior international marketingroles at Unilever, Yahoo! and the Kale group.
Yonca Dervisoglu served on the Supervisory Board of Heineken, the Digital Advisory
Board of the Natural History Museum in London and the Supervisory Board of Mavi
Jeans. She currently sits on the Board of EQL:Her of the Founders Forum, a solutionbased organization dedicated to helping advance women in tech.

Yonca Dervisoglu

Independent Director

Yonca Dervisoglu has been a Director of Kering since April 28, 2022. Her term of officewill expire at the end of the Annual General Meeting called to approve the financial
statements for the year ending December 31, 2025.
Yonca Dervisoglu is a member of the Appointments and Governance and theSustainability Committees.

Number of shares held: 186
Date of birth: October 28, 1969 (54 years old)
Turkish and British citizen

In 2023, she attended 11 of the 14 Board meetings and all the meetings of theCommittees on which she sits: two Appointments and Governance Committee
meetings and two Sustainability Committee meetings, representing an attendance
rate of 83%.

Google UK
1-13 St Giles High Street
LondonWC2H 8AG
United Kingdom
First appointed in 2022
Term of office expires at the Annual
General Meeting called to approve
the financial statements for the year
ended December 31, 2025

Directorships and positions held as of December 31, 2023:
Position
Director

Company
EQL:HerCountry
United Kingdom

Start dates
2015

Country
Netherlands
TurkeyEnd dates
April 2019
May 2022

Directorships and positions held in the last five years, but now expired:
Position
Member of the Supervisory Board
Director

Company
Heineken(1)Mavi(1) Listed company (as of the date the position was held).

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Corporate governance
Composition of the Board of Directors

Financière Pinault is the Pinault family holding company. In addition to Luxury group
Kering, Financière Pinault owns auction house Christie’s, a majority shareholding in
Creative Artists Agency (CAA), the leading worldwide talent agency, a number ofprestigious vineyards including Château Latour, polar cruise specialist Compagnie duPonant, the Stade Rennais Football Club, weekly magazine Le Point, a Franco-US
technology investment fund, a vast collection of contemporary art, and numerous
other assets in a variety of areas.
Héloïse Temple-Boyer has been Deputy General Manager of Artémis since January
2018. She joined Artémis in 2013 as Chief Investment Officer. Prior to that, she held
the positions of Executive Assistant to the CEO and then Director of International
Purchasing at Casino group. She began her career in finance, where she spent morethan five years, first as an associate with Rothschild & Cie’s M&A team and later as an
associate with private equity firm Advent International.

Financière Pinault representedby Héloïse Temple-Boyer
Director
Permanent representativeof Financière PinaultHéloïse Temple-Boyer is a graduate of the Institut d’études politiques in Paris and
ESSEC, and holds an MBA from Harvard Business School.
Financière Pinault, represented by Héloïse Temple-Boyer, was appointed as a
Director of Kering on December 14, 2018 (appointment ratified at the Annual General
Meeting of April 24, 2019). Its term of office was renewed by the Combined General
Meeting on April 22, 2021 and will expire at the end of the Annual General Meeting
called to approve the financial statements for the year ended December 31, 2024.
Financière Pinault, represented by Héloïse Temple-Boyer, is a member of the Audit,
the Remuneration and the Appointments and Governance Committees.

Number of shares held by Financière
Pinault: 500
Born on March 22, 1978 (45 years old)
French citizen

In 2023, she attended the 14 Board meetings and all meetings of the Committees on
which she sits: five Audit Committee meetings, six Remuneration Committee
meetings, and two Appointments and Governance Committee meetings, representing
an attendance rate of 100%.

Financière Pinault
12, rue François-1er
75008 Paris
FranceFirst appointed in 2018
Term of office last renewed
on April 22, 2021
Term of office expires at the Annual
General Meeting called to approve
the financial statements for the year
ended December 31, 2024

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Corporate governance
Composition of the Board of Directors

Directorships and positions held by Financière Pinault as of December 31, 2023:
Position
Director

Company
GarudaCountry
FranceStart dates
October 1998

Directorships and positions held by Financière Pinault in the last five years, but now expired:
Financière Pinault has not held any other corporate office in the past five years.

Directorships and positions held by Héloïse Temple-Boyer as of December 31, 2023:
Position
Deputy General Manager
Deputy Chief Executive Officer
Chair and Chief Executive Officer
Deputy General Manager
Chair of the Supervisory Board
Director
Director
Member of the Executive Board
Director
Director
Director
Chair of the Supervisory Board
Member of the Strategy Committee

Company
Artémis SAS
Financière Pinault SCA
Arok International SA
Artémis 28 SAS
Puma SE(1)Creative Artists Agency LLC
Christie's International PLC
Compagnie du Ponant SAS
Giambattista Valli SAS
Sebdo Le Point SA
Palazzo Grassi SpARoyalement vôtre Editions SAS
Pinault Collection SAS(formerly Collection Pinault – Paris)

Country
FranceFranceFranceFranceGermany
United States
United Kingdom
FranceFranceFrance
Italy
FranceFranceStart dates
January 2018
March 2018
February 2018
January 2018
May 2022(2)September 2023
March 2014
December 2015
June 2017
May 2018
March 2018
December 2023(3)December 2020

(1) Listed company (as of the date the position was held).
(2) Her appointment as a Supervisory Board member began in April 2019.
(3) Her appointment as a Supervisory Board member began in July 2018.

Directorships and positions held by Héloïse Temple-Boyer in the last five years, but now expired:
Position
Chair and Chief Executive Officer
Director
Member of the Supervisory Board
Representative of Artémis, director
Director
Director

CompanyTER Obligations SA
ACHP PLCLe Point Communication
Pinault Collection SAS
Fnac Darty SA(1)Groupe Courrèges SAS

Country
FranceUnited Kingdom
FranceFranceFranceFranceEnd dates
February 2023
September 2022
June 2023
December 2020
March 2017
April 2017(1) Listed company (as of the date the position was held).

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After graduating from HEC in 1972 and from ENA in 1976, Baudouin Prot joined theGeneral Inspectorate of Finance where he spent four years before serving as Deputy
Director of Energy and Raw Materials at the French Ministry of Industry for three
years.

Baudouin Prot
Director

Number of shares held: 600
Born on May 24, 1951 (72 years old)
French citizen
B. Prot Conseils
86, rue de Varenne
75007 Paris, France

He joined BNP in 1983 as Deputy Director of Banque Nationale de ParisIntercontinentale, before becoming the Director for Europe in 1985. He joined theCentral Networks Department in 1987 and was promoted to Central Director in 1990
then Deputy Chief Executive Officer of BNP in charge of networks in 1992. He became
Chief Executive Officer of Banque Nationale de Paris in 1996 and Deputy Chief
Executive Officer of BNP Paribas in 1999. In March 2000, he joined the Board of
Directors of BNP Paribas and was then named Chief Executive Officer of the Group in
May 2003, a position he held for 8 years. He served as non-executive Chairman of theBoard of Directors of BNP Paribas from 2011 until 2014. Since 2015, he has beensenior advisor to Boston Consulting Group and, since 2016, Chairman of theSupervisory Board of Emeria (formerly Foncia Management). In 2021, he joined
Adobe’s International Advisor.
He is an Officer of the French National Order of Merit and a Knight of the Legion of
Honor.
Baudouin Prot has been a Director of Kering since May 19, 2005, after having served
as a member of the Supervisory Board (from March 11, 1998 to May 19, 2005). His
term of office was renewed by the Combined General Meeting on April 22, 2021 andwill expire at the end of the Annual General Meeting called to approve the financial
statements for the year ended December 31, 2024.
Baudouin Prot is a member of the Appointments and Governance Committee.
In 2023, he attended 13 of the 14 Board meetings and both the meetings of the
Appointments and Governance Committee, representing an attendance rate of 94%.

First appointed in 1998
Term of office last renewed on April 22,
2021
Term of office expires at the Annual
General Meeting called to approve thefinancial statements for the year ended
December 31, 2024

Directorships and positions held as of December 31, 2023:
Position
Chairman of the Board of Directors

Company
Fraikin Groupe

Country
FranceStart dates
September 2020

Chairman of the Supervisory Board
Director
Senior Advisor
Member of the International Advisory Board
ChairmanEmeria (formerly Foncia Management)
Alstom(1)Boston Consulting GroupAdobe
B. Prot Conseils SAS

FranceFranceFranceUnited States
FranceMarch 2017
July 2018
July 2015
March 2021
April 2015

Country
FranceFranceEnd dates
June 2020
April 2019(1) Listed company (as of the date the position was held).

Directorships and positions held in the last five years, but now expired:
Position
Director
Director

Company
Finastra
Veolia Environnement SA(1)(1) Listed company (as of the date the position was held).

— 114

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Corporate governance
Composition of the Board of Directors

Vincent Schaal is Head of Infrastructure at Kering Technologies. He started his careerwith Renault in 1994, where he worked as a network & telecoms engineer. He
subsequently moved to Carrefour as Network Global Manager in 1997. He joined the
PPR group in 1999, again as Network Global Manager, before gaining promotion tohis current role of Head of Infrastructure at the Kering group.
Vincent Schaal, a French citizen, graduated from the École Nationale Supérieure dePhysique in Strasbourg (National Physics Graduate School of Strasbourg)and holds a
postgraduate DEA degree in photonics.
Vincent Schaal was elected as a Director representing employees by Kering’s Socialand Economic Committee at its meeting on June 22, 2022, serving for a four-year
term starting on August 1, 2022.
Vincent Schaal is a member of the Remuneration Committee.

Vincent Schaal

Director representing employees

In 2023, he attended the 14 Board meetings and the six meetings of theRemuneration Committee, representing an attendance rate of 100%.
Vincent Schaal did not hold any other directorships or positions as of December 31,
2023, and has not held any other corporate office over the past five years.

Number of shares held: 40(via an employee investment fund)
Born on February 1, 1969 (55 years old)
French citizen
Kering40, rue de Sèvres
75007 Paris
FranceFirst appointed in 2022
Term of office expires on July 31, 2026

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2.2 Changes in the composition of the Board of Directors
2.2.1 Changes in the membership of the Board of Directors and Committees in 2023
and until February 28, 2024
Departure
April 27, 2023:
Daniela Riccardi
October 3, 2023:
Jean-François Palus
January 9, 2024:
Tidjane Thiam

Appointment
September 1, 2023:
Maureen Chiquet

Reappointment–

Audit Committee

April 27, 2023:
Daniela Riccardi
January 9, 2024:
Tidjane Thiam––

Remuneration Committee

January 9, 2024:
Tidjane Thiam––

Appointments and Governance Committee
Sustainability Committee–
April 27, 2023:
Daniela Riccardi
October 3, 2023:
Jean-François Palus–
September 1, 2023:
Maureen Chiquet––

Board of Directors

Daniela Riccardi resigned for personal reasons from her term ofoffice as a Director at the Board of Directors held at the close of
the Annual General Meeting on April 27, 2023. Following her
departure, the Board of Directors set in motion the process of
selecting a new independent Director with solid expertise in the
Luxury sector and an international profile, in line with its diversity
policy. The process culminated in Maureen Chiquet being
coopted by the Board of Directors as an independent Director atits meeting on July 18, 2023 for the remainder of Daniela
Riccardi’s term of office, that is until the Annual General Meeting
called to approve the financial statements for the year ended
December 31, 2025. Maureen Chiquet, a US citizen, has more than
35 years’ experience in the Fashion, Beauty and Luxury goods
sector, including nine years as Global CEO of Chanel. She joined
the Board of Directors effective September 1, 2023.
Jean-François Palus was appointed as President and CEO of
Gucci effective October 3, 2023 and resigned from his position asGroup Managing Director and Director of Kering, a position he
had held since 2008 so he can focus fully on his new role within
the Group.
Lastly, Tidjane Thiam, who was elected President of the
Democratic Party of Côte d’Ivoire on December 22, 2023 andwanted to have the necessary time to devote to his politicalcommitments, tendered his resignation on January 9, 2024. His
term of office as a Director was due to expire in April 2024.

2.2.2 Changes in the composition of theBoard of Directors to be proposedat the April 25, 2024 Annual
General Meeting
In view of recent changes in its composition and terms of officedue to expire in 2024, the Board of Directors has pursued its
objective of strengthening its composition and began in 2023 a

(1)

— 116

process to recruit new independent Directors. That process was
led by the Appointments and Governance Committee andoverseen by its Chair with the help of an external consultancy, in
accordance with the procedure for selecting new Directors.
Following this selection process and after a thorough review of
the candidates submitted for its approval, the Board of Directors,
at its meeting on February 28, 2024, decided, uponrecommendation of the Appointments and GovernanceCommittee, to submit to the Annual General Meeting of April 25,
2024, the appointment of three new independent Directors:
Rachel Duan, Giovanna Melandri and Dominique D’Hinnin. These
proposals, in line with the diversity policy applied to the Board,
will strengthen (i) the Board’s expertise in terms of knowledge of
the Asian market, sustainability and sustainable finance,
corporate governance and finance, (ii) the internationalization of
the Board and (iii) the proportion of independent Directors.
The professional backgrounds of these three candidates forelection to the Board of Directors are presented below.
In addition, the Board of Directors also proposes to the Annual
General Meeting of April 25, 2024, to:• ratify Maureen Chiquet’s cooption as Director, decided on
July 18, 2023 and effective September 1, 2023. Maureen
Chiquet brings to the Board her sound expertise in theFashion, Beauty and Luxury sectors, after a 35-year career inthese fields;• reappoint Jean-Pierre Denis as a Director; he brings to theBoard his financial and sustainability expertise, as well as his
historical and in-depth knowledge of the Group.
Subject to the corresponding resolutions being approved in the
Annual General Meeting, the Board of Directors will have
13 members (including two Directors representing employees).
Of its members, 64%(1) will be independent and 55%(1) will be
women. Six nationalities will be represented (American, British,
Chinese, French, Italian and Turkish).

Excluding the Directors representing employees in accordance with article L. 225-27 of the French Commercial Code and the AFEP-MEDEF Code.

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Corporate governance
Composition of the Board of Directors

Rachel Duan is a highly seasoned business leader with exceptional international
leadership experience and business acumen. Most recently, Rachel Duan served as
Senior Vice President of General Electric (GE) and President & CEO of GE Global
Markets where she was responsible for driving GE’s growth in global emerging
markets including China, India, Asia Pacific, Africa, Middle East and Latin America.
During her 25-year career at GE, Rachel Duan held several senior leadership positions
including President & CEO of GE Advanced Materials China and then Asia Pacific,
President & CEO of GE Healthcare China, and President & CEO of GE China.
Throughout her career, she has worked and lived in the United States, Japan and
China.
Rachel Duan serves on the boards of AXA, Sanofi and HSBC, as an Independent
Director.

Rachel Duan

Nominee to the Board of Directors

A native of Shanghai, Rachel Duan holds a bachelor’s degree in Economics andInternational Business from Shanghai International Studies University, China and an
MBA from The University of Wisconsin – Madison, USA.

Date of birth: July 25, 1970 (53 years old)
Chinese citizen

Directorships and positions held as of December 31, 2023:
Position
Director
Director
Director
Director

Company
Axa (1)
Sanofi (1)HSBC (1)
Adecco Group AG (1)Country
FranceFranceUnited Kingdom
Switzerland

Start dates
April 2018
April 2020
September 2021
April 2021

Country
China
China
China

End dates
July 2020
December 2018
July 2016(1) Listed company (as of the date the position was held).

Directorships and positions held in the last five years, but now expired:
Position
President and Chief Executive Officer
President and Chief Executive Officer
President and Chief Executive Officer

Company
GE Global Markets
GE China
GE Healthcare China

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Composition of the Board of Directors

Giovanna Melandri, a U.S. and Italian citizen, economist and cultural manager is anexpert in ESG finance, sustainability and international relations. She is Chair andfounder of Human Foundation, a research institution which promotes impact
economy and finance together with social, cultural and environmental innovation.
She is also founder and Global ambassador to the GSG (Global Steering Group for
Impact Investment).
She represented Italy in the G8 Task Force on Impact Investment (2013-2014).
From 2012 to 2022, she chaired the Italian National Museum for contemporary arts
(MAXXI) which she had promoted as Minister of Culture.
Member of the Italian Parliament from 1994 to 2012, she served as Minister ofCulture and Sports (1998-2001) and as Minister of Youth Policy and Sports(2006-2008).

Giovanna MelandriNominee to the Board of Directors

Date of birth: January 28, 1962 (62 years old)
American and Italian citizen

She founded Madre Provetta, a research group on artificial reproduction andwomen’s rights, and co-founded Emily in Italy, to empower women in institutions
and business.
She began her career as an economist with research responsibilities in Montedison
where she coordinated a research team on innovation and R&D (1986-1987). From1988 to 1994, she was the international officer of Legambiente, an environmentalorganization, and also chaired its scientific committee. In this capacity, sheparticipated to the Bergen Conference on Sustainable Development in 1990 andfollowed the Intergovernmental Panel for Climate Change (IPCC) proceedings. She
chaired the Italian non-governmental delegation to the UN Rio Earth Summit in 1992.
Giovanna Melandri is the author of several publications, including the first Italianreport on climate change ("Rapporto Ambiente Italia, Mondadori"), published in
1989. More recently she published a short essay on the Impact Economy. She is afrequent contributor to various news outlets, including La Repubblica – Affari e
Finanza, where she holds an "Impact Economy" column.
Giovanna Melandri was awarded the title of "Officier de la Légion
d’honneur" (Officer of the French Legion of Honor) by French President Jacques
Chirac in 2003.
She graduated cum laude in Political Economy at Sapienza University of Rome.

Directorships and positions held as of December 31, 2023:
Position
Company
Chair
Human Foundation
Founder and presently Global ambassador Global Steering Group for Impact
Investment

Country
Italy
United Kingdom

Start dates
July 2013
June 2014

President
Member of the National Advisory Board
Member of the ESG Fund TechnicalCommittee

Social Impact Agenda for Italy
Unicredit(1)Azimut Libera Impresa

Italy
Italy
Italy

January 2016
October 2021
January 2021

Member of the Steering Committee
COIMA ESG City Impact Fund
Member of the Impact Fund Advisory Board Investcorp-Tages

Italy
Italy

September 2020
June 2021

Country
Italy
Italy

End dates
April 2022
March 2023

(1) Listed company (as of the date the position was held).

Directorships and positions held in the last five years, but now expired:
Position
Member of the Advisory Board
Member of the Sustainability Committee— 118

Company
Amundi SGR S.p.A.
Q8

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Corporate governance
Composition of the Board of Directors

Dominique D’Hinnin is a graduate of École Normale Supérieure and École Nationaled’Administration. He began his career in 1986 with France's Inspectorate-General for
Finance (1986-1990) before joining the Lagardère group in 1990 as an advisor toPhilippe Camus. He then held several executive positions, starting as Chief Internal
Auditor, then becoming Chief Financial Officer of Hachette Livre in 1993, and thenExecutive Vice President of Grolier, Inc. (Connecticut, USA) in 1994. He was Lagardère
Chief Financial Officer from 1998 to 2009 and Co-Managing Partner of Lagardère SCA
from 2009 to 2016.
After more than 25 years at Lagardère and with his expertise in the media andtechnology sectors, Dominique D’Hinnin joined the Board of Directors of Eutelsat
Communications, which he has been chairing since 2017, Edenred, the world leader
in digitalization of employee benefits, the private retail group Louis Delhaize SA(Belgium) and the Spanish company Cellnex Telecom.

Dominique D'Hinnin

Nominee to the Board of Directors

Date of birth: August 4, 1959 (64 years old)
French citizen

Directorships and positions held as of December 31, 2023:
Position
Chairman of the Board of Directors
Chairman of the Board of Directors
Vice-Chairman of the Board of Directors
and Lead Independent Director

Company
Eutelsat Communications(1)Eutelsat SA
Edenred(1)Country
FranceFranceFranceStart dates
November 2017
October 2017
June 2017

Lead Independent Director
Director
Director
Director

Vantiva (formerly Technicolor)(1)(2)Louis Delhaize S.A
Cellnex Telecom(1)Otanes SAS

FranceBelgium
Spain
FranceJune 2019
May 2017
June 2023
December 2016

(1) Listed company (as of the date the position was held).
(2) Dominique D'Hinnin has informed the Company of his intention to resign from the Board of Directors of Vantiva before the Kering Annual
General Meeting of April 25, 2024.

Directorships and positions held in the last five years, but now expired:
Position
Director
Director

Company(1)Golden Falcon Acquisition Corp
Prisa(1)Country

End dates

United States
Spain

December 2023
November 2021

(1) Listed company (as of the date the position was held).

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Composition of the Board of Directors

2.3 Guiding principles for the composition of the Board of Directors
2.3.1 Diversity policy applied
to the Board of Directors
The Board of Directors regularly reflects upon the desirable
balance of its composition and that of its specialized
Committees, particularly from a diversity perspective.
The diversity policy applied to the Board of Directors aims toachieve a mix of complementary profiles, careers and experienceamong its members, so they bring a variety of different
perspectives and points of view, enriching the Board’s
discussions and ensuring a high quality of decision-making. A
Board with a diverse composition is in the best position to fulfill
its duties with the requisite independence, objectivity and criticalthinking.

— 120

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In particular, the Board of Directors is careful to make sure its
members possess the most effective skills and expertise foraddressing the Group’s strategic priorities and challenges. It
endeavors to maintain a balanced composition in terms of theBoard’s gender, independence, age, length of service, nationality
and cultural background.
Pursuant to article L. 22-10-10 of the French Commercial Codeand the recommendations of the AFEP-MEDEF Code, the tablebelow describes the diversity policy applied to members of theBoard of Directors. It indicates the criteria taken into
consideration, the objectives set by the Board, the measures
implemented and the results achieved during 2023. The
information is presented as of December 31, 2023 and thus
includes Tidjane Thiam, who left his role as a Director on
January 9, 2024.

Corporate governance
Composition of the Board of Directors

Diversity policy applied to the Board of Directors
Criteria
Balanced
representationof women and menon the Board

Objectives
Conformity with the CopéZimmermann Law, which
requires each gender toaccount for at least 40%
of Directors
Drive to maintain genderbalance within the Board

Measures implemented and results achieved in 2023
Proportion of women(1)

30%

2015

45%

2022

50%

2023

Professional
qualifications
and experience

Complementary nature
Experience:and diversity of profiles in• Finance/Executive Management: Véronique Weill, Tidjane Thiam, Sergeterms of professional expertise
Weinberg, Jean-Pierre Denis, Financière Pinault represented by Héloïse
and experience, both in terms
Temple-Boyer, and Baudouin Prot.
of positions held and sector• Industry knowledge: Emma Watson, Maureen Chiquet and Financièreof activity
Pinault represented by Héloïse Temple-Boyer.
• Marketing: Véronique Weill, Maureen Chiquet and Yonca Dervisoglu.
• Technology, digital and cybersecurity: Véronique Weill, Yonca
Dervisoglu and Vincent Schaal.
• Innovation: Véronique Weill, Maureen Chiquet and Yonca Dervisoglu.
• Governance: Véronique Weill, Serge Weinberg, Concetta Battaglia
and Financière Pinault represented by Héloïse Temple-Boyer.
• Corporate social and environmental responsibility: Emma Watson,
Jean-Pierre Denis, Concetta Battaglia, Maureen Chiquet and Yonca
Dervisoglu.

International
diversity

Nurture a diverse mix ofnationalities and international
experience to replicate as far
as possible the geographicaldiversity of the Group’s
activities

Director
independence

At least one-third independent Degree of independence of the Board of Directors(1)members, in line with the AFEPMEDEF Code’s
recommendation for controlled
listed companies

The Board strengthened its international profile in 2023 by coopting US
citizen Maureen Chiquet as a Director. As of December 31, 2023, six
nationalities – French, Italian, British, Ivorian, Turkish and American –were represented on the Board of Directors. As of February 28, 2024, thenumber fell to five with the departure of Tidjane Thiam (Ivorian citizen).
In addition, the Directors have significant international experience andexposure, as they hold, or have held, positions or directorships ininternational companies or key positions outside France.

40%

60%

Non-independent
Directors

2015
2022
2023

Independent
Directors

40%
55%
60%

(1) Percentage not counting Directors representing employees, in accordance with article L. 225-27 of the French Commercial Code and therecommendations of the AFEP-MEDEF Code.

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Corporate governance
Composition of the Board of Directors

Criteria
Age profile of theBoard of Directors

Objectives
Diverse age profile of Directors
to be maintained
No more than one thirdof members over 70 (Article 10of the Articles of Association)

Measures implemented and results achieved in 2023

4

3
1

1

30-35

40-45

2

1
50-55

55-60

60-70

70-75

Average age:
58 years
Average lengthof service
on the Board

Directors
representing
employees

5

Drive to maintain a balance
between Directors with indepth, long-standingknowledge of the Group andnewly appointed Directors, whobring a fresh perspective on theGroup

Conformity with the obligation
to appoint two Directors
representing employees

10-2

In accordance with the recommendations of the AFEP-MEDEF
Code, Independent Director status is reviewed by the
Appointments and Governance Committee and ratified by the
Board of Directors when a new director is appointed and, in any
event, every year for all members of the Board of Directors.
For the purpose of assessing whether a Director can beclassified as independent and avoiding possible risks ofconflicts of interest, the Board applies as an analyticalframework the criteria defined in the AFEP-MEDEF Code, whichstates that a Director is considered to be independent if theysatisfy all the following independence criteria. They must not:• be an employee or executive corporate officer of theCompany, or have been in such position in the past five years;• be an employee, executive corporate officer or Director of theCompany’s parent company or of a company that the latterconsolidates, or have been in such a position in the past five
years;• be an executive corporate officer of a company in which theCompany holds a directorship, directly or indirectly, or inwhich an employee appointed as such or a corporate officerof the Company (currently in office or having held officewithin the past five years) is a Director;• be a significant customer, supplier, investment banker orcommercial banker of the Company or the Group, or forwhich the Company or the Group represents a significant
portion of the activity;• have any close family ties with a corporate officer;

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2-10

10-20

Average seniority (years):
8.9 years

2

20-30

Since 2014, one Director representing employees has been appointed
by Kering’s Social and Economic Committee.
In 2020, appointment of a second Director representing employees by theEuropean Works Council, in compliance with the Company’s Articles
of Association and the requirements of France’s PACTE law.

2.3.2 Director independence

— 122

4

• have been the auditor of the Company within the past five
years;• have been a Director of the Company for more than twelve
years, the maximum period for which a Director is considered
independent.
In reviewing independence with regard to the direct or indirectbusiness relationship criteria, an additional quantitative andqualitative analysis is performed, if necessary, in order todetermine the independence of individual Directors where any
such business relationship exists.
In 2023, further to a review by the Appointments and GovernanceCommittee, the Board of Directors meticulously analyzed – alongwith all other criteria – any business relationships between the
Kering group and the entities or groups in which each
Independent Director holds a directorship or exercises their
executive responsibilities. Based on the Board’s analysis, otherthan Tidjane Thiam, Serge Weinberg and Yonca Dervisoglu, noneof the Directors and none of the entities or groups in which theyhold a directorship or executive responsibilities have a business
relationship with the Company, its group or its management
team. The relevant Directors did not take part in discussions or
the vote concerning their own position.
The Board of Directors analyzed the situation of Tidjane Thiam,the founder and chairman of Freedom Acquisition Corporation I,
a special purpose acquisition company (SPAC) in which Artémis(Kering’s controlling shareholder) has invested alongside otherinvestors. The Committee found that the company in which
Tidjane Thiam is a corporate officer has a business relationshipwith Artémis, which is an investor in the SPAC, but not with
Kering. Accordingly, the Board of Directors considers Tidjane
Thiam to be an Independent Director.

Corporate governance
Composition of the Board of Directors

The Board of Directors also conducted a quantitative andqualitative review of Serge Weinberg’s status. The Group has
invested in investment funds managed by Weinberg CapitalPartners, the asset management company Mr. Weinberg founded
and in which he serves as chairman of the board of directors.
After analyzing the situation, the Appointments and GovernanceCommittee concluded that as of the date of Mr. Weinberg's
appointment, the amount of those investments was not material
and they did not fall within the scope of the business relationshipreferred to by the AFEP-MEDEF Code. Accordingly, the Board of
Directors considers Serge Weinberg to be an Independent
Director.
The Board of Directors conducted a quantitative and qualitative
review regarding the status of Yonca Dervisoglu, Vice-President,
Marketing at Google for the EMEA region, and of business
relations between Google and Kering in 2023.
Global business between these two companies for all activities
and for each of the parties was well below the 1% materiality
threshold set by the Board of Directors, and is not likely to
influence the way Ms. Dervisoglu votes at the Board’s meetings.
Furthermore, Ms. Dervisoglu does not herself have any businessconnections and is not a member of any governance body
capable of giving rise to a conflict of interest. For these reasons,the Board of Directors considers Yonca Dervisoglu to be an
Independent Director.
Lastly, in connection with the decision to coopt Maureen Chiquet
as a Director, the Board of Directors reviewed her status under
the criteria for independence laid down in the AFEP-MEDEF Codeand with due consideration given to the service agreement
entered into subject to authorization under article L. 225-38 of
the French Commercial Code. The Board of Directors noted thatthe remuneration to be paid to Maureen Chiquet for conducting
the consulting assignment was well below the 1% materiality
threshold set by the Board of Directors and that the short lengthof the assignment (six-month duration, non-renewable) was
unlikely to compromise the new Director’s independentjudgment. Accordingly, the Board of Directors considers Maureen
Chiquet to be an Independent Director.

(2)

In February 2024, the Appointments and Governance Committee
conducted a fresh review of each Director's independence. This
analysis came to the conclusion that the 2023 assessment
remains valid, taking into account the fact that Tidjane Thiam
resigned from his role as Director on January 9, 2024.
In the case of Serge Weinberg, the Appointments and GovernanceCommittee noted that the management fees paid by Kering in
relation to assets managed by Weinberg Capital Partners
amounted to €490,240 in 2023, equal to 2.51% of Weinberg
Capital Partners' revenue. This figure is above the 1% materiality
threshold set by the Board of Directors as a guideline for carryingout a more in-depth analysis. In Mr. Weinberg's case, the Board
confirmed that he is an Independent Director in view of thegeneral principle set out in the AFEP-MEDEF Code, according towhich a Director ceases to be independent if their business
relationship with the company is capable of affecting their
judgment. The Appointments and Governance Committee andsubsequently the Board of Directors carried out a specificassessment of Mr. Weinberg's commitment and freedom of
expression and found that, in any event, the amount of assets
managed on Kering's behalf by the various investment funds
referred to above is likely to decrease in the near future,
automatically reducing the fees paid by Kering to Weinberg
Capital Partners.
Accordingly, five of the nine Directors serving on the Board as ofFebruary 28, 2024, other than the two Directors representing
employees(2) it being specified that Tidjane Thiam’s term of officecame to an end on January 9, 2024, were therefore classified as
independent pursuant to the AFEP-MEDEF Code’s independence
criteria (Maureen Chiquet, Yonca Dervisoglu, Emma Watson,
Veronique Weill and Serge Weinberg), representing a degree of
independence of 56%. The Group thus satisfies therecommendations of the AFEP-MEDEF Code, namely that "atleast one third" of Board members should be independent
directors in companies with controlling shareholders.

The Directors representing employees are not counted in the calculation of the degree of independence, as per the recommendations of the
AFEP-MEDEF Code.

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Composition of the Board of Directors

The following table shows the status of each Director as of February 28, 2024 based on the AFEP-MEDEF Code’s independence criteria:

François-Henri
Pinault
Concetta
Battaglia(1)Maureen Chiquet
Yonca Dervisoglu
Jean-Pierre Denis
Financière
Pinault,
representedby Héloïse
Temple-Boyer
Baudouin Prot
Vincent Schaal(1)Emma Watson
Véronique Weill
Serge Weinberg

Term ofNot aoffice of
Statutory less than
Auditor
12 years

No variable
compensation
paid in cash
or in sharesor linked
to Kering’s
performance

Not arepresentativeof a major
shareholder

✓

✓

x

x

x

N/A

N/A

N/A

N/A

N/A

N/A

✓

✓

✓

✓

✓

✓

✓

✓
✓

✓
✓

✓
✓

✓
✓

✓

✓
✓

✓
✓

✓

✓

✓

✓

✓

✓

✓

x

✓

✓

✓

✓

✓

x

✓

✓

N/A
✓
✓
✓

N/A
✓
✓
✓

N/A
✓
✓
✓

N/A
✓
✓
✓

N/A
✓
✓
✓

N/A
✓
✓
✓

N/A
✓
✓
✓

N/A
✓
✓
✓

Not anemployeeorexecutive
corporate
officer

No closefamily ties
No material with a
No crossbusinesscorporate
directorships relationships officer

x

✓

✓

N/A

N/A

✓
✓
✓

x

In this table ✓ represents an independence criterion that is satisfied and x represents an independence criterion that is not satisfied.
(1) Director representing employees.

2.3.3 Skills and expertiseof the Directors
Other than ability to act in the interest of all shareholders and,more generally, all of the Company’s stakeholders, the Directors
are also chosen for their skills, expertise, experience andunderstanding of the Group’s strategic challenges. Accordingly,
the members of the Board of Directors possess a wide anddiverse mix of experience, are renowned for the quality of theircareer achievements and endowed with the relevant skills to
guide and support the Group in the development and executionof all dimensions of its strategy.

Main skills required
Risk management

Leadership

GovernanceMarketingIndustry

Technology, digital and cybersecurity

Finance and accounting

Innovation

Corporate social and environmental
responsibility

Economics

Prior roles demonstrating advanced proficiency inmanaging business risks
Experience in executive management positions or
as a director of major listed groups or world-classgroupsSolid expertise and/or experience of the Luxury,
Fashion or Beauty sectors, in-depth knowledge ofthe Group’s competitive environment
Experience in corporate finance, M&A or market
finance gained during career

Career experience in managing environmental orsocial challenges, major public commitment inthese areas— 124

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Significant influence in the public/professional
domainExpertise in marketing acquired through training
or during career

Experience in new technologies or digital or incompanies with a strong technological and/or
digital dimension
Technical or managerial experience in innovation or
R&D roles or in companies with a strong innovation
or R&D dimension
Expertise in economics, gained either by training
or during careerCorporate governance
Composition of the Board of Directors

Skills matrix for members of the Board of Directors

Numberof Directors

9

5

4

6

6

9

3

3

3

5

Percentage
of Directors

82%

45%

36%

55%

55%

82%

27%

27%

27%

45%

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2.3.4 Selection process for Directors
Definition of selection
criteria

Recruitment

Selection• Definition by the Boardof the desired profileand skills based on thework performed by the
Appointments andGovernance Committee(the "Committee") and
Board’s diversity policy• Identification ofcandidates, whereappropriate with thesupport of a specialized
external firm

• Analysis by
the Committee ofthe candidates put
forward: suitability
based on the needs
identified, confirmationof conformity with therecommendations of
the AFEP-MEDEF Code(independence, numberof corporate offices that
may be held
simultaneously, etc.)• Drafting of the selection
criteria by theCommittee• Discussions between
the Chair of
the Committee andits members concerning
the shortlisted
candidates• Meetings arranged with
the Chair of theCommittee to assess
the skills, availability
and motivationof shortlisted candidates

Decision by
the Board• Review by the Boardof Directorsof the shortlisted
candidates• Decision by the Board:
appointment or, whereappropriate, cooption,of the selected Director
subject to approval by
the Annual General
Meeting• Committee’s
recommendation to
the Board of Directors• List of candidates
drafted for submission
to the Committee
The Board of Directors pays particular attention to selecting its
members with the constant aim of achieving an optimalcomposition in line with its diversity policy (as presented above).
The Board of Directors regularly considers desirable changes in
its composition over the short to medium-term, drawing on thework undertaken by the Appointments and GovernanceCommittee. Prior to every reappointment of a Director, when a
Director leaves office and, more generally, when the Board of
Directors intends to increase its size or modify its composition,
the Appointments and Governance Committee reviews thecomposition of the Board and its specialized Committees andassesses the requirements in terms of skills, experience andprofile diversity.
In accordance with the recommendations of the AFEP-MEDEF
Code, the Appointments and Governance Committee introduced
a Director selection procedure. It applies to all Board members,
other than the Directors representing employees who are chosen,
pursuant to article 10 of the Company’s Articles of Associationand in line with the relevant statutory provisions, by the Socialand Economic Committee or the European Works Council.
With the support of the Appointments and GovernanceCommittee, the Board of Directors lays down the types of profileand skills it is looking for, giving consideration to the findings ofthe annual internal assessment of the Board. During this process,the Directors are invited to give their opinion on the compositionof the Board and any needs that have come to their attention.
Also taken into account are the conclusions of the external
assessment carried out at least once every three years, whereby
an independent external consultant is entrusted with mapping
the skills and expertise and identifying any potential
requirements. Investor expectations and observations statedduring the shareholder dialogue, recommendations from themarket authorities and best practices are also taken into
account.

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The Appointments and Governance Committee draws up theselection criteria for new Directors based on the wishes stated by
the Board and in view of the diversity policy concerning its
composition. Under the Committee Chairman’s oversight, insome cases with the support of an external executive search firm,
it leads the recruitment process.
The shortlisted candidates meet with the Chair of the
Appointments and Governance Committee. During theseconversations, the candidate’s career, motivations andavailability are discussed at length.
A list of candidates is then put forward to the Appointments andGovernance Committee, which analyzes the experience,
professional and personal attributes and talents of eachcandidate given the requirements identified and the diversity
policy applied to the Board of Directors (international diversity,balanced representation of women and men, skills and expertise,age profile, etc.). The candidates’ skills are assessed based on
factors, such as training, career and professional
accomplishments. The Committee also confirms the suitability of
the candidate profiles selected in view of the recommendationsof the AFEP-MEDEF Code concerning the Board’s composition(independence, number of corporate offices that may be held
simultaneously, etc.). Following this analysis, the Committee
formulates a recommendation for the Board of Directors.
The Board reviews the various shortlisted applications anddecides, on a case-by-case basis whether to coopt the candidate,with any such decision being subject to ratification by the Annual
General Meeting or to propose their appointment at the Annual
General Meeting.

Corporate governance
Conditions of preparation and organization of the work of the Board of Directors

3 - CONDITIONS OF PREPARATION AND ORGANIZATION
OF THE WORK OF THE BOARD OF DIRECTORS
3.1 Duties of the Board of Directors
3.1.1 Role and duties of the Boardof Directors
The Board of Directors performs the duties and exercises thepowers granted to it by law and the Company’s Articles of
Association.
It determines and assesses the strategic direction, objectives andperformance of the Company and makes sure they are
implemented by Executive Management, in line with theCompany’s interest, with consideration given to the social andenvironmental issues linked to its activities.
Subject to the powers expressly granted to Annual General
Meetings and within the limits of the corporate purpose, theBoard reviews all issues concerning the smooth running of theCompany and acts on all matters over which it has authority. It
carries out the controls and verifications it deems appropriate.
In compliance with AMF recommendation no. 2012-05, the Board
has adopted internal guidelines on the identification, control andevaluation of related-party agreements and agreements enteredinto in the ordinary course of business and at arm's length toensure that agreements entered into in the ordinary course ofbusiness and at arm’s length actually meet the required criteria,
in accordance with article L. 22-10-12 of the French Commercial
Code.
In addition to reiterating the regulations applicable to theidentification and classification of related-party agreements andagreements entered into in the ordinary course of business andat arm's length (notably by the Company’s Legal Department,with the assistance of the Finance Department), the guidelines
also provide for the regular control and evaluation of suchagreements by the Audit Committee and the Board of Directors.
Anyone directly or indirectly involved in an agreement cannot
participate in its evaluation.

3.1.2 Board’s commitment to nonfinancial performance
The Board of Directors determines the strategic direction of theCompany and ensures it is pursued in accordance with its
corporate purpose, while paying close attention to the social andenvironmental issues linked to its activities.
The four specialized Board Committees play a role in formulating
and monitoring the non-financial strategy. Each operates within
its respective area of expertise, while coordinating their activities
to provide a cross-disciplinary approach to CSR issues, as
described below.
Audit Committee:• ensures the effectiveness of internal control and risk
management systems in the Group;• pursuant to Order no. 2023-1142 of December 6, 2023
transposing the European Corporate Sustainability Reporting
Directive (CSRD) into French law, the Audit Committee has
been given a remit to review the process for the preparationand certification of sustainability information.
Remuneration Committee:• makes recommendations to the Board of Directors
concerning the remuneration of the executive corporate

officers, including the non-financial targets for annual andlong-term remuneration.
Appointments and Governance Committee:• discusses governance issues related to the operation andorganization of the Board, including the gender diversity
policy applied to the Board and to the senior management
bodies.
Sustainability Committee:• makes proposals to the Board concerning the Group’s
strategic direction on the sustainability front.
Minutes of each Committee meeting are provided to the Board of
Directors, ensuring that the Board receives information andmaintains a regular dialogue concerning the non-financial issues
studied by the Committee. Board meetings may also include a
separate agenda point to discuss certain issues.
In accordance with the AMF recommendation no. 2012-02, adecision was made in 2023 to organize on an annual basis a joint
meeting between the Audit Committee and the Sustainability
Committee. The goal is to enable members to discuss issues
relevant to both Committee, such as the Group’s non-financial
risks and reporting and to coordinate their work on thesecommon areas of interest more effectively. The first joint meeting
was held on January 31, 2024. Its agenda included a discussion of
the Corporate Sustainability Reporting Directive (CSRD) and the
new sustainability reporting regime (regulatory environment andimplementation of these obligations within the Group).
In addition, the Board of Directors has introduced two positions
held by its members who have been given special ESG(environmental, social, governance) responsibilities to ensure
greater consideration of these issues in the Board’s work:• the Climate Change Lead, whose role and duties aredescribed in section 1.5 of this chapter, ensures climate
issues are addressed by the Board of Directors as part of along-term approach, in coordination with the various
Committees;• the Lead Independent Director, whose role and duties aredescribed in section 1.4 of this chapter, represents the Board,in coordination with the Chairman of the Board, in its
dealings with investors concerning environmental, social andgovernance (ESG) matters and reports investors’ concernsand observations in this area to the Board. Véronique Weill
has held this role since 2022, and her membership of the four
specialized Board Committees ensures these issues are afactor in all the work undertaken by the Board of Directors
and its Committees.
In addition, Kering created in 2022 a department focused on
Sustainable Finance. Its mission includes:• overseeing non-financial performance (social andenvironmental), which helps with financial planning relating
to energy transition and the decarbonization of the Group’sbusiness;• ensuring that the Group complies with the current and future
non-financial reporting and green finance regulatory
framework; and• ensuring that social and environmental issues are addressedin the Group’s management and decision-making processes,
particularly regarding investments and M&A.

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Its work has helped to enhance the quality and level of
granularity of the Group’s non-financial data and feeds into thenon-financial information provided to the Board of Directors,
thereby enriching its discussions.

Alongside its commitment to social responsibility, the Group
believes that diversity and inclusion are a source of creativity andinnovation and as such of economic performance. This is why
Kering makes every effort to establish a culture of equality at alllevels of the organization.

3.1.3 Gender diversity policy applied
to the Group’s senior
management bodies

Kering has defined and put in place an action plan to achieve abalanced gender mix – by 2025 – especially within the Group’s
senior management (Top 450 roles). This will notably involve:• measuring the representation of women in talent pools andsuccession plans;• promoting equality in recruitment processes by introducing
training on unconscious bias at the highest level ("Kering
Perspectives" program) (see section 3.2.2 of chapter 4 of this
Universal Registration Document);• monitoring promotions within the Group by gender andmanagement level;• measuring gender parity at each management level on aquarterly basis in all the Group’s Houses using key indicators;

The Board sets gender diversity targets for the Group’s
management bodies on the recommendation of Executive
Management. The diversity principles applied to composition of
the Board of Directors are also applied more broadly across theGroup via a gender diversity policy for its senior management
bodies. Pursuant to this policy, as of the date of this report on
corporate governance, the Executive Committee included five
women out of a total of 12 members.
The establishment in 2019 of a Diversity and Inclusion
Department marked a new milestone in Kering’s commitment toaccelerating and expanding its actions in support of diversity,
equality and inclusion – in the broadest sense of the term. In
addition, in line with the Group’s 2025 sustainability strategy, adiversity in the workforce criterion, with a particular emphasis onachieving an effective gender balance, is incorporated in theprocess of determining the annual and multi-annual variable
remuneration of the Group’s executive corporate officers. These
criteria are described in section 5 of this chapter.

• implementing a global parental policy;• giving women a voice via the Diversity & Inclusion
Committees put in place at all of the Group’s Houses.
As of December 31, 2023, 45.2% of Top 450 roles were held
by women.

3.2 Functioning of the Board of Directors
The operating rules and procedures of the Board of Directors aredefined by law and the Company’s Articles of Association, alongwith the internal rules of the Board and its four specialized
Committees (Audit Committee, Remuneration Committee,
Appointments and Governance Committee, and Sustainability
Committee).
The internal rules are revised on a regular basis to bring theminto line with changes in governance rules and practices. They
are published in full on the Company’s website, were updated at
the Board meeting of February 16, 2021 to reflect theamendments to the Articles of Association approved by the
Annual General Meeting of June 16, 2020 (remit and powers of theBoard in view of social and environmental issues; reduction in thenumber of shares that Directors must hold; removal of the role ofnon voting director (censor)) and to add a new section
concerning the Lead Independent Director, including his/her
remit and powers, and special remuneration. Each Committee’sinternal rules are also reviewed on a regular basis. The mostrecent update concerned the internal rules of the Audit
Committee, which now include rules for the approval of nonaudit services that may be provided by Statutory Auditors andtheir networks.

3.2.1 Length and staggeringof terms of office
The Directors are appointed by the Annual General Meeting of theshareholders for a renewable four-year term of office.
In order to avoid reappointing the entire Board simultaneously
and to facilitate a smooth renewal process, shareholders at the
Combined General Meeting held on May 7, 2009 adopted anamendment to article 10 of the Company’s Articles of Association
staggering appointments of Directors over time.
Accordingly, two terms of office will come to an end in 2024, three
in 2025 and four in 2026.
Note that Directors representing employees are chosen, pursuant
to article 10 of the Company’s Articles of Association and in linewith the relevant statutory provisions, by the Social andEconomic Committee or the European Works Council for a fouryear term of office.

3.2.2 Meetings
The Board of Directors meets when convened by its Chairman, as
frequently as the Company’s interests require and at least fourtimes per year, by means of videoconferencing or conference calltechnology where appropriate, in accordance with the Board’s
internal rules. In 2023, the Board of Directors met 14 times.

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Corporate governance
Conditions of preparation and organization of the work of the Board of Directors

In addition, all Directors are entitled to attend specific meetingsof Committees of which they are not a member if they so wish,
but without voting rights.

The Board of Directors may also call on any external advisors or
consultants to obtain an independent expert opinion on any
topics presented to it by the Company.

3.2.3 Executive sessions

3.2.5 Director induction and training

In accordance with the internal rules of the Board of Directors, an
executive session – a meeting of the Directors with no executive
corporate officer present – is organized at least once a year by the
Lead Independent Director. This type of meeting format enables
the Directors to discuss, without the Chairman and Chief
Executive Officer or, up until October 3, 2023 the Group Managing
Director, being there, issues such as the functioning andcomposition of the Board of Directors, the Group’s strategy andperformance and the performance and remuneration of
Executive Management, alongside any other issues they wish toraise. The Board of Directors unanimously considers this to be a
best corporate governance practice.

Special attention is paid to inducting and training Directors.

The Lead Independent Director arranged two executive sessions
in 2023. The first, which was held on March 22, 2023, gave
Directors an opportunity to consider the late 2022 internal
assessment of the Board of Directors and its Committees and to
discuss desirable changes in the composition of the Board andthe organization of its work. The second executive session washeld on December 7, 2023. Directors engaged in an in-depth
discussion of the analysis conducted by Maureen Chiquet, thenewly appointed independent Director, as part of the six-monthconsulting assignment entrusted to her by Kering under a service
agreement entered into on July 28, 2023. In it, she focused on theHouses’ brand positioning and practices in terms of elevation,
product ranges, communication, customer experience andservices and on investments in the Luxury industry.

3.2.4 Information provided to Directors
To allow Directors to prepare as effectively as possible for the
topics to be considered at a meeting, a comprehensive
information pack is sent to them in due time ahead of themeeting; it includes the necessary information on all items on theagenda and draft minutes of the previous meeting. These
documents are made available to the Directors on a secure digitalplatform.
The Directors can take up matters with Executive Management at
any time and with complete transparency, and Executive
Management keeps the Directors regularly informed of allimportant events concerning the Company’s business affairs. The
Directors are in regular contact with the Group’s senior
executives, who take part at the strategic seminars and othermeetings of the Board of Directors and specialized Committees,according to the items on the agenda and the Group’s latest
developments.
Each Director is also entitled, if they so wish, to meet with theGroup’s senior executives and House CEOs outside Board
meetings in order to gain a better insight into the Group’sbusinesses or certain operational issues.
Throughout the year, Directors receive a daily press review
featuring articles about Kering and its competitive environment,
plus regular briefings on financial analysts’ reports. A weeklypress review focused on the strategic aspects of the Group’s
activities is also made available to Directors on the secure digitalplatform.

When they join the Board of Directors, new Directors follow an
induction program familiarizing them with the Group’s
activities, strategic challenges and priorities, its internalorganization, its culture and the culture of its Houses, and its
governance. To help achieve this goal:• they are given a welcome pack containing the requisite
documents to understand the Group’s business activities, theBoard’s internal rules, the stock market code of conduct andconflicts of interest prevention rules, the Articles of
Association, the minutes of meetings over the past five yearsof the Board and of the specialized Committees of which they
are members; and• individual meetings are arranged with the Chairman andChief Executive Officer, the Lead Independent Director and
the Group’s senior executives (Houses’ CEOs, Group Chief
Financial Officer, Chief Sustainability and Institutional Affairs
Officer, Chief Communications Officer, Chief People Officer,
Internal Audit Director and Group General Counsel).
Throughout their term of office, Directors may receive training
tailored to their specific needs within the Board, should they
deem it necessary. Training specially designed for Directors
representing employees is also arranged. These internal andexternal training sessions are arranged and paid for solely by theCompany.
In 2023, a special climate seminar was organized on May 4, 2023
(for more details, see section 3.4.1 below), in line with the wishes
stated by Directors during the internal assessment of the Board of
Directors and the specialized Committees carried out in late 2022.

3.2.6 Ethics of Directors
Directors must act in the interest of the Company in all
circumstances.
Directors are expected to attend meetings and be fullycommitted to the work of the Board and its Committees. They
should attend the Annual General Meeting of the shareholders.
Every Director (it being specified for all relevant purposes that no
distinction is made between an individual Director and thepermanent representative of a legal-entity Director) is bound by aconfidentiality obligation with regard to information not in the
public domain to which they are privy in the course of theirduties. This same confidentiality obligation shall apply to any
person invited to attend meetings of the Board and/or its
specialized Committees. It goes beyond the mere duty of
discretion provided for in article L. 225-37 of the French
Commercial Code and a general obligation not to disclose
information about the affairs of the Board and the Group, without
prejudice to the statutory provisions applicable to the disclosureof inside information.

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In line with the relevant regulatory requirements, the internal
rules of the Board of Directors also set the rules in relation to
restrictions on trading in the securities of the Company, or moregenerally the Group. Accordingly:• the Directors must refrain from trading directly or indirectly inthe listed securities and financial instruments of theCompany and the Group for a period of 30 calendar days
preceding each of the periodic publications relating to theannual and half-year consolidated financial statements and15 calendar days preceding each of the quarterly publications
relating to consolidated revenue and ending at the close of
the trading day following the publication of the relevant
official press release. This closed period does not replace thestatutory and regulatory provisions regarding insider tradingwith which each member of the Board must comply at thetime they decide to trade, no matter when this might occur
outside the defined closed periods;• the same obligations apply to each Director insofar as they
are privy to inside information;• the Directors are bound, in accordance with the regulations
in force, to report to the Company and to the French Financial
Markets Authority (Autorité des marchés financiers), anytransactions effected in the Company’s securities bythemselves or by persons closely related to them as definedby the regulations. The transactions that fell under thisheading during 2023 are presented in section 4.5 below.
Pursuant to the internal rules of the Board of Directors, theDirectors must hold at least 50 Company shares for their own
personal account in accordance with article 10 of the Company’s
Articles of Association. This requirement does not apply to
Directors representing employees pursuant to article L. 225-25 of
the French Commercial Code. Should they not hold these sharesalready, Directors are obliged to acquire them within six monthsof their appointment.

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3.2.7 Prevention of conflicts of interest
Under the internal rules of the Board, each Director is required to
inform the Chairman of the Board and the Lead Independent
Director of any conflicts of interest, even potential conflicts,
between their duties to the Company and their private interests
and/or other duties. A Director must not participate inproceedings or vote on any matters that concern them directly or
indirectly.
The Chairman of the Board of Directors may ask the Directors at
any time for a written statement confirming that they do not face
any conflicts of interest.
Each year, the Board of Directors assesses the independence of
Directors with regard to conflicts of interest.
To the best of the Company’s knowledge, none of the corporate
officers faces a potential conflict of interest between their duties
with regard to the Company and their private interests or otherduties or has family ties with another corporate officer of theCompany.

3.2.8 Honorary Chairman
In accordance with the option provided for under the Company’s
Articles of Association, at its meeting on April 26, 2018, which
followed the Combined General Meeting, the Board of Directors
decided to confirm François Pinault, founder of the PPR group,
since renamed Kering, as Honorary Chairman of the Board of
Directors. In this capacity, François Pinault is invited to attend themeetings of the Board of Directors on a consultative basis.
He did not attend any of these meetings in 2023.

Corporate governance
Conditions of preparation and organization of the work of the Board of Directors

3.3 Assessment of the functioning of the Board of Directors
and its specialized Committees
Since 2004, in accordance with its internal rules, the Board of Directors has dedicated one item on its agenda, at least once a year, to a
discussion of its operating arrangements and those of its Committees, as well as the individual contribution made by each Director.
Every three years, a formal assessment is carried out, if need be with the support of an independent external consultant.

3.3.1 Process for assessing the functioning of the Board of Directors
and specialized Committees
The processes for each type of assessment (i.e., internal and external) are presented below:

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3.3.2 External assessment held in 2023
In 2022, the Lead Independent Director carried out the annualinternal assessment of the functioning of the Board of Directors
and its Committees. The conclusions drawn from this assessment
were presented in Kering’s 2022 Universal Registration
Document, which can be downloaded from its website.
Following this assessment, in line with the wishes stated by the
Directors, the following measures have been implemented by
the Group:• a climate training seminar was organized on May 4, 2023 (forfurther details, see section 3.4.1 of this chapter);• an additional executive session was organized, so nonexecutive Directors met twice during the year, namely on
March 22 and December 7, 2023 (for further details, seesection 3.4.1 of this chapter);• the Board of Directors increased its industry expertise and its
international profile with the arrival of US citizen Maureen
Chiquet, previously Chanel’s Global CEO, who joined as an
Independent Director.
In 2023, the Board of Directors decided, acting on therecommendation of the Appointments and GovernanceCommittee, to carry out a formal assessment by an independent
external consultant and entrusted this assignment to Egon
Zehnder. This formal assessment took place one year ahead ofschedule given the recent changes in the Board’s composition.
Since Egon Zehnder had conducted the previous external
assessment in 2021, the rationale for the decision was that it
would be able to compare and contrast these two assessments
very usefully. In addition, the consulting firm’s working methods
are highly reputed, and it is independent of the Company and its
senior executives, since it has not been retained to hire new
Directors or for any other assignments related to Kering’s
governance.
The assessment covered the following points:• the composition and role of the Board of Directors;• the role and actions of the Chairman of the Boardof Directors;• the role and actions of the Lead Independent Director;• the meetings of the Board of Directors;• the contribution by the Board to the Group’s strategy;• the Board’s relationships with Executive Management;• the contribution performed by the Committees;• the individual contribution made by each Director; and• induction arrangements for new Directors.

The results of the assessment were reported by the external consultant to the Appointments and Governance Committee on
January 31, 2024 and then to the Board of Directors on February 28, 2024. The conclusions of the assessment are summarized below:

Main strengths

Areas for improvement identified• Satisfactory composition in terms of diversity of Director
profiles and independence, enhanced by the addition
since 2022 of top-level new Directors, whose arrival has
injected fresh momentum into the Board and raised thequality of its discussions.

• Enhance the composition of the Board in terms of industry
expertise and knowledge of the Group’s key markets(especially the United States and Asia) with a special focus
on candidates with CEO experience.

• Atmosphere of trust and freedom of speech encouragedby the Chairman and Chief Executive Officer, whose
leadership qualities are unanimously recognized.
• Significant progress has been achieved since theprevious external assessment in 2021:– Frequency and fluidity of interactions between
Directors have been increased;– The Lead Independent Director’s commitment andcontribution were highlighted and unanimously
acclaimed. Her role in governance-related dialogue
with shareholders has a positive impact on how the
Board deals with these subjects;– Directors view the new Executive Management
structure unveiled on July 18, 2023 in a positive light,
considering it may enhance the dialogue with
operational and functional departments.
• Quality of the management presentations and working
papers provided to the Directors.
• Quality of the Board discussions and work performed by
the Committees.
• Fluid and effective decision-making process.
• Annual strategic seminar
appreciated by Directors.

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seminar• Broaden the range of participants at Board meetings toencourage more regular input from the Houses’ senior
executives.
• Continue the work already done to systematically
devote a portion of meeting time to strategy and M&Arelated issues.
• Increase the length of Board meetings to allow for longer
discussions and concurrently adjust the time set aside
for management presentations.
• Devote more time to business and commercial aspects,
as well as cybersecurity, compliance and humanresources.

Corporate governance
Conditions of preparation and organization of the work of the Board of Directors

3.4 Activity of the Board of Directors and its specialized Committees
3.4.1 Work performed by the Board of Directors in 2023 and through to February 28, 2024
In 2023, the Board of Directors met 14 times (including videoconference and conference calls).
During 2023 and through February 28, 2024, the Board dealt with the following issues:
Financialstatements
and financial
management• Review and approval of the 2022 and 2023 parent company and consolidated financial statements• Decision to appropriate net income, set the size of the dividend and payment date
• Review and approval of the 2023 interim financial statements• Review of the quarterly results• Review and approval of the 2023 and 2024 budget• Share buyback program (authorization to reduce the share capital by canceling 650,000 shares under the
fourth and final tranche of the share buyback program launched in 2021)• Interim dividend• Renewal of the annual authorizations granted to Executive Management (share buyback program,endorsements, suretyships, guarantees, authorizations to carry out certain transactions)• Annual review of the related-party agreements• Renewal of the EMTN program• Information about the bond issues• Review of the Statutory Auditors’ reports• Review of the Audit Committee’s work and recommendations

Corporate
governance• Review and adoption of the Board of Directors’ management report and the report on corporate governance• Review of the results of the internal assessment of the Board of Directors carried out in late 2022 by the Lead
Independent Director and results of the formal assessment of the Board led in 2023 by an independent
external consultant• Preparations for the 2023 and 2024 Annual General Meetings: setting of the agenda, draft resolutions for
submission to the Annual General Meeting and report of the Board of Directors on resolutions; convening of
the meeting; response to shareholders’ written questions in connection with the 2023 Annual General
Meeting; proposal to appoint new independent Directors at the 2024 Annual General Meeting, after
reviewing the candidacies selected by the Appointments and Governance Committee• Review of the composition of the Board of Directors and its specialized Committees, especially following
the departures during the year and in view on the terms of office expiring in 2024
• Maureen Chiquet coopted as an independent Director to replace Daniela Riccardi for the latter’s remaining
term of office, and appointment of Maureen Chiquet as a member of the Sustainability Committee• Review and authorization of a service agreement with Maureen Chiquet pursuant to the related-party
agreements procedure (she did not take part in the discussions or vote)• Annual review of Directors’ independence based on the criteria laid down in the AFEP-MEDEF Code• Follow-up on discussions with the main shareholders on governance issues in connection with the ESG
roadshow at which the Lead Independent Director participates• Update on organizational changes within Executive Management• Review of the work and recommendations made by the Appointments and Governance Committee

Remuneration• Determination of the annual variable compensation of the Chairman and Chief Executive Officer and theGroup Managing Director in office until October 3, 2023, in respect of 2022 and 2023, while reviewing theachievement rate of the applicable performance targets• Determination of the remuneration policy for executive corporate officers after reviewing the remuneration
components• Review of the proposed allocation of the remuneration granted to members of the Board of Directors anddetermination of the Directors’ remuneration policy• Assessment of achievement of the performance targets applicable to the performance shares awarded in2020• Free awards of shares subject to performance conditions to the Chairman and Chief Executive Officer
and to Group employees• Review of the pay ratios• Review and approval of the proposals of the Remuneration Committee on the changes to be made to the
remuneration policy for executive corporate officers for the formulation of the 2024 policy• Review of the Remuneration Committee’s work and recommendations

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Conditions of preparation and organization of the work of the Board of Directors

Activityof the Groupand strategy• Regular updates on business trends• Analysis, authorization and follow-up on acquisition-led growth transactions: acquisition of Creed by Kering
Beauté and purchase of a 30% stake in Valentino• Review and authorization of real estate acquisitions• Follow-up on the action taken following the controversy over a Balenciaga advertising campaign in late 2022
• Climate seminar (for further details, see below)• Review of the Non-Financial Information Statement• Approval of the Modern Slavery Statement (anti-slavery statement)• Review of the Sustainability Committee’s work and recommendations
Annual strategic seminar: Every year, one Board meeting is set aside for a presentation on strategic issues by
operational and functional teams, in addition to matters presented regularly during the year at other Board
meetings. This annual session provides an ideal opportunity for meetings and discussions between Directors
and the management teams of the Group and its Houses. In 2023, the strategic seminar focused on thefollowing matters:• Strategy of Gucci and Kering Beauté, with a presentation by Gucci’s President and CEO and Kering Beauté’sChief Executive Officer• Presentation of the dynamics in the Luxury industry, the competitive environment and Group’s relative
positioning• Group’s operating and financial review, with a special focus on its financing and debt strategy• Annual review of the risk map (including environmental, social and cyber risks)

Executive
sessions
organizedby the Lead
Independent
Director• Consideration of the results of the internal assessment of the Board of Directors carried out in late 2022
by the Lead Independent Director and the measures to be implemented following this assessment• Update on the composition of the Board of Directors and the specialized Committees• In-depth discussion of the analysis conducted by Maureen Chiquet, the newly appointed independent
Director, as part of the six-month consulting assignment entrusted to her by Kering under a service
agreement entered into on July 28, 2023. In her analysis, she focused on the Houses’ brand positioning andand practices in terms of product ranges, communication, customer experience and services and on
investments in the Luxury industry.
These meetings took place on March 22 and December 7, 2023 without the Chairman and Chief Executive
Officer and the Group Managing Director in office until October 3, 2023 being present.

Climate seminar
On May 4, 2023, the Directors got together for a Board training
seminar on climate issues. A decision had been made to organize
this seminar following the internal assessment of the Board of
Directors in late 2022, during the course of which the Directors
had requested specialized climate training. The goal of theseminar was, firstly, to provide the Directors with a common
knowledge base on climate-related issues and, secondly, topresent the forthcoming regulatory changes in the area. Internaland external experts gave presentations to the Directors. In the— 134

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course of these presentations, they outlined the scientific andregulatory background, as well as the Group’s climate strategy
and the projects deployed under the strategy. These
presentations on a variety of complementary issues gave the
Directors a complete overview of the global, industry and Grouprelated challenges.

Corporate governance
Conditions of preparation and organization of the work of the Board of Directors

The Board of Directors met 14 times in 2023 with an average attendance rate of 88%, breaking down by meeting as follows:
Date
February 1, 2023
February 14, 2023
March 2, 2023
April 27, 2023 (before the Annual General Meeting)
April 27, 2023 (after the Annual General Meeting)May 4, 2023
June 9, 2023
June 19, 2023
July 18, 2023
July 27, 2023
October 3, 2023
October 26 and 27, 2023
December 7, 2023
December 21, 2023

Attendance rate
92%
100%
100%
92%
83%
75%
92%
75%
83%
100%
92%
83%
83%
75%

The following persons attended Board meetings:• Directors;• the Board Secretary (Group General Counsel);• the Social and Economic Committee representative;• at certain meetings and depending on the topics addressed,
the Statutory Auditors, both the Deputy CEOs from the dateof their appointment, the Group’s Chief Financial Officer(change of incumbent during the year), the Strategy Director,
the Chief Audit Executive, the Chief Sustainability andInstitutional Affairs Officer, the Chief People Officer, the CEOsof certain Houses and external speakers.

Several days before each Board meeting, each Director receives a
copy of the agenda, the draft minutes of the previous meeting,and documentation relevant to the items on the agenda via asecure file-sharing system.
The minutes of each Board meeting are submitted for approval at
the subsequent meeting.
In compliance with the Board’s internal rules, certain mattersundergo preliminary examination by the relevant Committees
according to their area of expertise to shed light on the Board’s
work and decisions. The relevant Committee Chair reports onthese preliminary meetings at each Board meeting.

Board meeting agendas are drawn up by the Board Secretary
following discussions with the Chairman and Chief Executive
Officer and taking into account the agendas of specialized
Committee meetings, as well as proposals from the Lead
Independent Director, who can add specific items to the agenda
of Board meetings.

3.4.2 Specialized committees
Audit Committee
Members as of February 28, 2024
Jean-Pierre Denis
Financière Pinault, represented by Héloïse Temple-Boyer

Chair (Climate Change Lead)
Director

Véronique Weill
Serge Weinberg

Lead Independent Director
Independent Director

50%

89%

5

independent Directors

attendance rate
in 2023

in 2023

In 2023, the Audit Committee was chaired by Tidjane Thiam, who
had held that role since he was appointed as an independent
Director by the Annual General Meeting of June 16, 2020. As of
December 31, 2023, 60% of Audit Committee members classified
as Independent Directors based on the criteria for independence
laid down in the AFEP-MEDEF Code.

meetings

After Tidjane Thiam resigned from his duties as a Director on
January 9, 2024, a decision was made to appoint Jean-Pierre
Denis, former Chair of the Committee (2012-2020), as the Chair of
the Committee on an interim basis. The composition of theCommittees will be reviewed after the Annual General Meeting on
April 25, 2024, subject to shareholder approval of the proposed
appointments.

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Conditions of preparation and organization of the work of the Board of Directors

As of February 28, 2024, half the members of the Audit Committee
classified as Independent Directors. This temporary situation
linked to a Director’s departure will be rectified by means of theappointments to be proposed at the Annual General Meeting ofApril 25, 2024, as presented in section 2.2.2 above.
No executive corporate officer is a member of the Committee, inline with the recommendations of the AFEP-MEDEF Code.

DutiesThe main role of the Audit Committee, which was established in
December 2002, within the limit of the duties of the Board of
Directors, is to review the annual and interim financial
statements, to verify the relevance, consistency and reliability ofaccounting methods applied by the Company and at the Group’s
main subsidiaries and the implementation of internal control andrisk management procedures in the Group, to be familiar with thepolicies implemented within the Group in relation tosustainability and environmental protection, and to hear fromand put questions to the Statutory Auditors. The Committee isnotified of the main issues identified by the Kering group’s
Internal Audit Department.
The Audit Committee reports to the Board on a regular basis andprovides it with opinions or recommendations on all matterswithin its scope of duties. Meetings of the Audit Committee arerecorded in a written and approved report.
In exercising its role, the Committee is supported, in addition to
the external auditors, by the Finance department and the Group’s
Internal Audit Director, plus the General Counsel, who arebrought in to present their work and answer the Committee’squestions. The Committee can also retain external specialists andhear from any other individuals.
Each year, it reviews the fees charged by the Company’s
Statutory Auditors and assesses their independence. The Audit
Committee also considers potential Statutory Auditors forappointment.

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In addition, the Committee issues recommendations to the Boardof Directors in relation to the regular assessment of the terms of
the Group’s related-party and ordinary agreements. Accordingly,
it reviews on an annual basis payments made under theagreement entered into between Kering and Artémis (describedin Note 31.1 to the consolidated financial statements, included inthis Universal Registration Document), as well as any changes insuch payments.
The Audit Committee members all possess recognized financial
or accounting skills, bringing to bear their combined expertise ingeneral and operational management of banks and businesses asevidenced by their professional career. Jean-Pierre Denis waspreviously Chairman of Crédit Mutuel Arkéa and a FinanceInspector, and has gained considerable executive management
experience. Véronique Weill has held various responsibilities infinancial services, with investment banking her key focus. Héloïse
Temple-Boyer, Deputy General Manager of Artémis, and Serge
Weinberg, founder and Chairman of an asset managementcompany, also possess respected financial expertise combinedwith executive management experience. Given their professional
experience (described in section 2.1 of this chapter) and theirfirst-class knowledge of the accounting and financial procedures
applicable to groups of companies, all the Audit Committee’s
members have the requisite skills for their roles.

Work performed by the Audit Committee in 2023
and through to February 28, 2024
The Committee met five times in 2023, with an averageattendance rate of 89%.
The Chief Financial Officer (incumbent changed effective
September 1, 2023) and the Chief Audit Executive were invited toeach Committee meeting to present their work and answer theCommittee’s questions. The Financial Control Director, theTreasury Director, the Chief Sustainability and Institutional Affairs
Officer, the General Counsel, the Chief Information Security
Officer, the Group Privacy Officer and the Intellectual Property
Director also appeared before the Committee.

Corporate governance
Conditions of preparation and organization of the work of the Board of Directors

During 2023 and through February 28, 2024, the Audit Committee dealt with the following issues:
Processof preparing
accounting
and financial
information• Review of the annual and interim parent company and consolidated financial statements, off-balance
sheet commitments, and the activity report• Annual review of invoicing under the agreement between Kering and Artémis• Update on Group financing and treasury• Review of the Company’s share price performance

Internal audit• Review of the internal audit activities (audit engagements, results and follow-up on action plans) during
2023• Presentation and approval of the 2024 audit planInternal control
and riskmanagement• Review of the internal control activities• Presentation of the 2022 results from the internal control self-assessment questionnaire campaign, plus
those from the Houses and stores and the campaign carried out in the first quarter of 2023 at the stores• Review of the Group’s risk map and presentation of the risk hierarchy (including environmental and social
risks)• Annual compliance update: review of the risk map (anti-corruption, duty of care and human rights), theGroup’s compliance policies and action plans

Statutory Auditors• Review of the scope of the Statutory Auditors’ engagement, the independence of the Statutory Auditors,
and their general program for audit work
• Presentation by the Statutory Auditors of their work on the annual and interim financial statements

Other issues• Review of disputes• Annual update on the Group’s intellectual property policy – examination of the protection of the brandportfolio• Follow-up on the Group’s data privacy risks, challenges and strategy• Annual review and follow-up on the Group’s cybersecurity (cyber risk map and action plans)• Annual review of the non-financial information statement• Joint meeting with the Sustainability Committee: update on the CSRD and the new sustainability
reporting regime (regulatory environment, impact for Kering, action plans to be implemented by theGroup).

Each meeting of the Audit Committee is reported to the next Board meeting so that the Board is fully apprised of the Committee's workand can discuss the issues it covers.

Remuneration Committee
Members as of February 28, 2024
Véronique Weill
Jean-Pierre Denis
Financière Pinault, represented by Héloïse Temple-Boyer
Vincent Schaal
Serge Weinberg

50%

(1)

independent Directors

92%

6

meetings

attendance rate
in 2023

As of December 31, 2023, the Remuneration Committee had six
members, 60% of whom were independent Directors based on
the independence criteria laid down in the AFEP-MEDEF Code.
Following the resignation of Tidjane Thiam, who had sat on theCommittee since his appointment as an independent Director by
the Annual General Meeting of June 16, 2020, the Remuneration
Committee had five members as of February 28, 2024, 50% ofthem independent (the Director representing employees is notcounted in this percentage). This temporary situation linked to a(1)

Chair (Lead Independent Director)
Director (Climate Change Lead)
Director
Director representing employees
Independent Director

in 2023

Director’s departure will be rectified by means of theappointments to be proposed at the Annual General Meeting ofApril 25, 2024, as presented in section 2.2.2 above.
The Committee is chaired by the Lead Independent Director. In
accordance with the recommendations of the AFEP-MEDEF Code,one Director representing employees is a member of theCommittee.

Excluding the Directors representing employees in accordance with the AFEP-MEDEF code.

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Conditions of preparation and organization of the work of the Board of Directors

DutiesThe Remuneration Committee’s role is to review and makeproposals to the Board of Directors on all components and termsof remuneration of the executive corporate officers, theremuneration policy for corporate officers, the method of
allocating remuneration awarded to members of the Board by
the Annual General Meeting, the remuneration policy for senior
executives, and the remuneration and benefits received ordeferred, stock options, free share grants, including performance
shares and/or similar benefits, including retirement benefits andbenefits in kind, granted to members of the Group’s Executive
Committee.

Work performed by the Remuneration Committee
in 2023 and through to February 28, 2024
The Committee met six times in 2023, with an averageattendance rate of 92%.
The Group's Chief People Officer and Compensation & Benefits
Director were regularly invited to present their work and answer
the Committee’s questions.

During 2023 and through February 28, 2024, the Remuneration Committee dealt with the following issues:
Remunerationof the Group’s
corporate officers

Other issues• Review of the 2022 and 2023 annual variable compensation of the Chairman and Chief Executive Officer
and the Group Managing Director in office until October 3, 2023, with analysis of the achievement rate of
the applicable performance targets• Recommendation to the Board of Directors on the remuneration policy for executive corporate officers for2023 after reviewing the remuneration components• Review of the allocation rules for the remuneration allocated to members of the Board of Directors andrecommendation to the Board of Directors on the remuneration policy for Directors• Review of the pay ratios• For the purpose of formulating the 2024 remuneration policy for the executive corporate officer: analysis
of observations and expectations stated by investors during the dialogue with shareholders, in particularat the December 2023 ESG roadshow; review of the components of the Chairman and Chief Executive
Officer’s remuneration; consideration of possible changes to the 2024 remuneration policy;
recommendation to the Board of Directors• Review of the variable remuneration and principles of the Executive Committee members’ remuneration• Analysis of the Chief Compliance Officer’s remuneration• Review of the variable compensation mechanisms for employees

Each meeting of the Remuneration Committee is reported to the next Board meeting so that the Board is fully apprised of theCommittee's work and can discuss the issues it covers.

Appointments and Governance Committee
Members as of February 28, 2024
Serge Weinberg
Concetta Battaglia
Yonca Dervisoglu
Financière Pinault, represented by Héloïse Temple-Boyer
Baudouin Prot
Véronique Weill60%

independent Directors(1)

100%

2

attendance rate
in 2023

in 2023

Duties
The role of the Appointments and Governance Committee, which
was established in March 2003, is to review the proposed
appointments of Directors, particularly in light of the Board’s
diversity policy, as well as their status with regard to the
independence criteria defined by the AFEP-MEDEF Code. This
review must be carried out prior to each appointment andannually. It may also be conducted at any time deemed

(1)

— 138

Independent Chair
Director representing employees
Independent Director
Director
Director
Lead Independent Director

appropriate by the Committee. The Committee provides its
opinions and recommendations on these matters to the Board.
This Committee also conducts a regular analysis on the
Company’s governance structure. It is also responsible forpreparing a succession plan for executive corporate officers andmembers of the Group Executive Committee, which it reviews
regularly, in order to be able to propose succession solutions at
any time in the event of an unforeseen vacancy.

Excluding the Directors representing employees in accordance with the AFEP-MEDEF code.

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meetings

Corporate governance
Conditions of preparation and organization of the work of the Board of Directors

In line with the independence criteria laid down in the AFEPMEDEF Code, a majority of the Appointments and GovernanceCommittee’s members are independent Directors. It is chaired by
an Independent Director.

Work by the Appointments and GovernanceCommittee in 2023 and throughto February 28, 2024
The Committee met two times in 2023, with an averageattendance rate of 100%.

During 2023 and through February 28, 2024, the Appointments and Governance Committee dealt with the following issues:
Appointment• Study of the desirable adjustments to the composition of the Board of Directors and its specialized
Committees based on the needs identified by the Board, including in connection with its internal
assessment in 2022, its diversity policy and the terms of office coming to an end in 2024
• Follow-up on the process for selecting new independent Directors and recommendations to the Board of
Directors

Assessment• Presentation by the Lead Independent Director of the conclusions of the internal assessment she carriedout in 2022
• Annual review of Directors’ independence based on the criteria laid down in the AFEP-MEDEF Code• Review of the results of the formal assessment of the Board led in 2023 by an independent external
consultant

Succession
planning• Review of the succession plan for the Chairman and Chief Executive Officer• Review of succession planning for Executive Committee members, House CEOs and Creative Directors

Other issues• Update on the special remuneration for the Lead Independent Director• Review of gender diversity policy applied to the senior management bodies

The composition of the Board and its Committees is continuously analyzed by the Appointments and Governance Committee.
Each meeting of the Appointments and Governance Committee is reported to the next Board meeting so that the Board is fully apprisedof the Committee's work and can discuss the issues it covers.

Sustainability Committee
Members as of February 28, 2024
Emma Watson

Independent Chair

François-Henri Pinault
Concetta Battaglia

Chairman and Chief Executive Officer
Director representing employees

Maureen Chiquet
Jean-Pierre Denis

Independent Director
Director (Climate Change Lead)

Yonca Dervisoglu
Véronique Weill

Independent Director
Lead Independent Director

67%

independent Directors(1)93%2attendance rate
in 2023

in 2023

meetings

DutiesThe Sustainability Committee’s role is to support the Company
and the Group in the establishment, implementation andmonitoring of good corporate governance in terms of sustainable
development, social responsibility and ethics.

Work performed by the Sustainability Committee
in 2023 and through to February 28, 2024
The Committee met two times in 2023, with an averageattendance rate of 93%.

(1)

During 2023 and through February 28, 2024, the Sustainability
Committee dealt with the following issues:• update on the Group’s roadmap toward the target
announced in 2023 of reducing its overall greenhouse gas
emissions by 40% (Scopes 1, 2 and 3 under the GHG Protocol)
by 2035;• presentation of the European regulatory changes relating to
the new sustainability regime ("CSRD") and efforts to combat
deforestation and forest degradation ("EUDR regulation");Excluding the Directors representing employees in accordance with the AFEP-MEDEF code.

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Corporate governance
Conditions of preparation and organization of the work of the Board of Directors• joint meeting with the Audit Committee: update on the CSRD
and the new sustainability reporting regime (regulatoryenvironment and implementation of these obligations within
the Group);• update on Kering’s participation in the Science Based Targets
for Nature program under the Group’s biodiversity strategy;• presentation of projects undertaken by the Regenerative
Fund for Nature;• follow-up on the Group’s non-financial performance andrating;• follow-up on ethics, compliance and sustainability training
programs for the Group’s employees;• update on the Fashion Pact, a global initiative launched by
Kering targeting the fashion and textile industries with theaim of reducing their environmental impact;• follow-up on the Kering Foundation’s initiatives: change instatus to become an endowment fund to amplify its impact;extension of its commitment to combat violence againstchildren; Caring For Women campaign in 2023 that raisedover $3 million for non-profits tackling violence against
women; establishment of an endowment fund in the UnitedStates; two women’s houses opened in Rennes and in Le
Havre.
The Group’s Chief Sustainability and Institutional Affairs Officer
attended the Committee’s meetings and answered its members’questions.

Each meeting of the Sustainability Committee is reported to the next Board meeting so that the Board is fully apprised of theCommittee's work and can discuss the issues it covers.

Attendance rate of Directors at Board and Committee meetings in 2023
Attendanceat Boardof Directors’
meetings

Attendanceat Audit
Committee
meetings

Attendance atRemuneration
Committee
meetings

Attendance at
Appointments
andGovernanceCommittee
meetings

Attendance at
Sustainability
OverallCommittee attendance
meetingsrate

François-Henri Pinault
Véronique Weill
Serge Weinberg
Emma Watson
Jean-Pierre Denis
Concetta Battaglia
Maureen Chiquet(1)Yonca Dervisoglu

100%
93%
86%
43%
100%
100%
75% (2)
79%

n.m.
100%
100%
n.m.
100%
n.m.
n.m.
n.m.

n.m.
100%
100%
n.m.
100%
n.m.
n.m.
n.m.

n.m.
100%
100%
n.m.
n.m.
100%
n.m.
100%

100%
100%
n.m.
100%
100%
100%
100%
100%

100%
97%
93%
50%
100%
100%
83%
83%

Financière Pinault,
represented by Héloïse
Temple-Boyer
Baudouin Prot
Vincent Schaal

100%
93%
100%

100%
n.m.
n.m.

100%
n.m.
100%

100%
100%
n.m.

n.m.
n.m.
n.m.

100%
94%
100%

Jean-François Palus(3)Daniela Riccardi(4)Tidjane Thiam(5)

100%
100%
64%

n.m.
0%
80%

n.m.
n.m.
50%

n.m.
n.m.
n.m.

0%
n.a.
n.m.

92%
67%
64%

(1) Term of office began on September 1, 2023.
(2) Maureen Chiquet was unable to attend an additional meeting of the Board of Directors, which did not appear in the original schedule ofmeetings. She thus attended three of the four meetings held after she joined the Board.
(3) Duties as a Director ended on October 3, 2023.
(4) Duties as a Director ended on April 27, 2023.
(5) Duties as a Director ended on January 9, 2024.

Number of meetings of the Board of Directors: 14
Number of Audit Committee meetings: 5
Number of Remuneration Committee meetings: 6
Number of Appointments and Governance Committee meetings: 2
Number of Sustainability Committee meetings: 2
n.m.: Not a member
n.a.: Not applicable (termination of the directorship prior to the meetings)— 140

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Corporate governance
Other corporate governance disclosures

4 - OTHER CORPORATE GOVERNANCE DISCLOSURES
4.1 Application of the AFEP-MEDEF Corporate Governance
Code of Listed Corporations
Since 2008, Kering has referred to the AFEP-MEDEF Corporate Governance Code of Listed Corporations (the "AFEP-MEDEF Code").
Note that in accordance with article L. 22-10-10, paragraph 4 of the French Commercial Code, Kering complies with all therecommendations of the AFEP-MEDEF Code, except for the following points:
Recommendations of the AFEP-MEDEF Code
Proportion of independent members of the audit committee(paragraph 17.1 of the Code)The proportion of independent directors on the audit committee
should be at least equal to two-thirds
Proportion of independent members of the compensationcommittee (paragraph 19.1 of the Code)It must mostly consist of independent directors

Kering’s approach/Explanation
Throughout 2023, the Audit Committee and the Remuneration
Committee had a proportion of independent Directors in linewith the recommendations of the AFEP-MEDEF Code, pursuant
to the independence criteria laid down in the code. As of
December 31, 2023, the Audit Committee and the Remuneration
Committee had five and six members, respectively, 60% ofwhom were independent Directors in both Committees.
Tidjane Thiam chaired the Audit Committee and had been amember of the Remuneration Committee since he wasappointed as an independent Director by the Annual General
Meeting of June 16, 2020. Following Mr. Thiam’s resignationfrom his duties as a Director on January 9, 2024, as he wanted tohave the necessary time to devote to his political commitments,
the Audit Committee and the Remuneration Committee had fourand five members respectively as of the date of this Universal
Registration Document, with 50% of Directors on both
Committees classified as independent.
This temporary situation linked to a Director’s departure will berectified by means of the appointments to be proposed at theAnnual General Meeting of April 25, 2024, as presented in
section 2.2.2 above.

4.2 Attendance at Annual General Meetings
All shareholders are entitled to attend Annual General Meetings in accordance with the conditions provided for by law. The terms andconditions of their attendance are specified in the provisions of article 19 of the Articles of Association and are set out in chapter 8 of this
Universal Registration Document.

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Corporate governance
Other corporate governance disclosures

4.3 Information likely to have an impact in the event of a public offer
No information other than that related to (i) Kering’s current
shareholding structure (Artémis being the majority shareholder,with 42.23% of the share capital and 58.99% of the theoreticalvoting rights of Kering as of December 31, 2023), (ii) the double
voting right provided for under the Articles of Association forshareholders who have held their shares in registered form for atleast two years, (iii) the Company’s share buyback program, and(iv) the authorizations given by the Annual General Meeting toincrease the share capital, as expressly described in this Universal

Registration Document, is liable to have an impact in the event ofa public tender offer for the Company’s shares or could have theeffect of delaying, deferring or preventing a change of control of
the Company.
To the best of the Company’s knowledge, there are noagreements between the Company’s shareholders that could
restrict the transfer of Kering shares or the exercise of thecorresponding voting rights.

4.4 Statement concerning the corporate officers
To the best of the Company’s knowledge:• none of the corporate officers has been convicted of fraud inthe last five years;• none of the Directors or corporate officers has been
associated in the last five years with insolvency, receivership,
liquidation or court-ordered administration proceedings as amember of an administrative, management or supervisory
body or as Chief Executive Officer or managing partner;• no court order has been made over the last five years against
any of the corporate officers that prohibits them from acting
as a member of an administrative, management or
supervisory body of an issuer or from being involved in the
management or running of the business of an issuer;• no charge and/or official public penalty has been made orordered against any of the corporate officers of the Company
by statutory or regulatory authorities (including designatedprofessional bodies);• none of the corporate officers has been given a commitmentby the Company or any of its subsidiaries corresponding tocomponents of remuneration, indemnities or benefits
payable or potentially payable on account of thecommencement, termination or change of their duties orsubsequent thereto;• none of the corporate officers has indicated the existence ofan agreement with a main shareholder, customer or supplierof the Company pursuant to which they were designated ascorporate officer.

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Moreover, no service contract providing for the granting of
benefits at the end of such an agreement binds the Directors to
the Group. Nonetheless, for all intents and purposes, please notethat concomitantly with its decision to coopt Maureen Chiquet asa Director effective September 1, 2023, Kering’s Board of
Directors authorized, after conducting a review, a service
agreement to be entered into between Kering and Ms. Chiquet
pursuant to article L. 225-38 of the French Commercial Code. Said
agreement was entered into on July 28, 2023 and provides inconsideration for the services provided for a one time, allinclusive fee of two hundred thousand euros (€200,000.00) before
taxes to be paid in two installments, one in 2023 and one in 2024,
separately from any remuneration that shall be due to her inrespect of her duties as a Director. This agreement is presented in
the Statutory Auditors’ report in chapter 6 of this Universal
Registration Document and shall be submitted for shareholder
approval at the Annual General Meeting of April 25, 2024.
No assets belonging directly or indirectly to the Company’s senior
executives are used in Group operations.
To the best of the Company’s knowledge, none of the corporate
officers faces a potential conflict of interest between their duties
with regard to the Company and their private interests or otherduties or has family ties with another corporate officer of theCompany.

Corporate governance
Other corporate governance disclosures

4.5 Trading in Kering securities by senior executives,
their families and similar parties
Pursuant to the provisions of article 223-26 of the AMF’s General Regulations, trading in the Company’s securities reported to the AMF in
2023 by senior executives and equivalent as well as persons closely related to the senior executives, as referred to in article L. 621-18-2of the French Monetary and Financial Code (Code monétaire et financier), is summarized below:
Maureen Chiquet, memberof the Board of Directors
Concetta Battaglia, memberof the Board of Directors

Type of transaction

Transaction date

Average price

Purchase of 50 shares

February 19, 2024

€422.40€396.96–

ArtémisFrançois-Henri Pinault, Chairman
and Chief Executive Officer

Purchase of 30 shares
Pledge of 450,000 shares

November 7, 2023
October 18, 2023

Definitive vesting of 940 free shares granted
subject to performance conditions(1)October 5, 2023

Francesca Bellettini, Deputy CEO
in charge of Brand Development

Definitive vesting of 553 free shares granted
subject to performance conditions(1)October 5, 2023

Jean-Marc Duplaix, Deputy CEO incharge of Operations and FinanceDefinitive vesting of 465 free shares granted
subject to performance conditions(1)October 5, 2023

Jean-François Palus, President
and CEO of Gucci

Definitive vesting of 706 free shares granted
subject to performance conditions(1)October 5, 2023

Armelle Poulou, Chief Financial
OfficerDefinitive vesting of 48 free shares granted
subject to performance conditions(1)October 5, 2023

Jean-François Palus, President
and CEO of Gucci

Donation of 815 shares

September 29, 2023

ArtémisJean-François Palus, GroupManaging Director

Pledge of 3,500,000 shares

September 26, 2023

Donation of the usufruct of 30,000 shares

June 19, 2023

Jean-François Palus, GroupManaging Director

Donation of the bare ownership of 10,000 shares

June 19, 2023

–
–
–
–
–
–
–

–

(1) Definitive vesting on October 5, 2023 of the performance shares awarded in 2020 by the Board of Directors under the 2020 Plan.

4.6 Related-party agreements
The support agreement between Kering and Artémis, which wasapproved in a previous fiscal year, remained in force in 2023. Thisagreement remunerates the management of the group andvarious services provided directly or indirectly, as well as theprovision of the resources necessary to carry out theses tasks.
This agreement is presented in the Statutory Auditors’ report inchapter 6 of this Universal Registration Document.
In addition, concomitantly with its decision to coopt Maureen
Chiquet as an independent Director effective September 1, 2023,
the Board of Directors authorized at its meeting on July 18, 2023,
after conducting a review, a service agreement to be entered into
between Ms. Chiquet and the Company. In consideration for theservices provided, this agreement provides for a one-time, allinclusive fee of two hundred thousand euros (€200,000.00) before
taxes, to be paid in two installments, one in 2023 and one in 2024,
separately from any remuneration that shall be due to her inrespect of her duties as a Director. This agreement was enteredinto on July 28, 2023 and announced the Company’s website, in
accordance with the provisions of article L.22-10-13 andR.22-10-17 of the French Commercial Code. It is presented indetail in the Statutory Auditors’ report in chapter 6 of this
Universal Registration Document and shall be submitted for theapproval of the Annual General Meeting of the shareholders on
April 25, 2024.

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Corporate governance
Remuneration of corporate officers

5 - REMUNERATION OF CORPORATE OFFICERS
The information contained in this section sets out Kering's
remuneration policy for corporate officers, which is defined by
the Board of Directors based on recommendations from theRemuneration Committee. The policy takes account of therecommendations set out in the AFEP-MEDEF Corporate
Governance Code of Listed Corporations, the guide to developing
universal registration documents published by the French
Financial Markets Authority (Autorité des marchés financiers –AMF) and the reports on corporate governance and executive
remuneration in listed companies issued by the AMF and the HighCommittee on Corporate Governance (Haut Comité deGouvernement d'Entreprise). The remuneration policy for all
corporate officers is an integral part of Kering's report on
corporate governance.

5.1 Remuneration policy applicable to the Chairman and Chief
Executive Officer (executive corporate officer) for 2024
subject to approval by the Annual General Meetingof April 25, 2024 (ex-ante vote)
Acting on a recommendation of the Remuneration Committee,
the Board of Directors approved on February 28, 2024 theremuneration policy applicable to the Chairman and Chief
Executive Officer, Kering's sole executive corporate officer, for2024.
In compliance with the provisions of Articles L.22-10-8 andR.22-10-14 of the French Commercial Code, the 2024
remuneration policy described below includes the generalprinciples and criteria for determining, allocating and awarding
the fixed, variable and exceptional components making up total
remuneration and benefits in kind granted to the Chairman andChief Executive Officer in respect of his duties. It will be submitted
for the approval of the shareholders at Kering's Annual General
Meeting to be held on April 25, 2024.

5.1.1 General principlesof the remuneration policy
for the Chairman and Chief
Executive Officer
Principles for determining the Chairman
and Chief Executive Officer's remuneration
The Company's remuneration policy for its executive corporate
officer is set by the Board of Directors, based onrecommendations from the Remuneration Committee, incompliance with the Company's interests to ensure the long-term
success and development of the business and embeds social andenvironmental issues arising from its activities.
An exhaustive approach is taken when determining the Chairman
and Chief Executive Officer's remuneration, taking into accountall its elements in order to achieve a comprehensive assessment.
The Board of Directors seeks to maintain a balance between thevarious components of remuneration, with most remunerationconsisting of short- and long-term variable elements related to
the Group's performance and that of the Chairman and Chief
Executive Officer.
The remuneration structure and the criteria on which the
Chairman and Chief Executive Officer's variable remuneration isbased are therefore defined and modified over time to ensurethat the amounts paid are closely aligned with the extent towhich the Group's strategic objectives (including social andenvironmental objectives) have been met.

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84% of the Chairman and Chief Executive Officer's remuneration
is subject to performance conditions, reflecting his obligation tocreate medium- and long-term value.
His variable remuneration (annual and long-term) depends on
the achievement of financial, environmental and social targets
that reflect the Group's major ambitions in these areas. The
performance criteria are precise, varied, directly linked to theGroup's strategic priorities, and mostly quantifiable.
A significant proportion of variable remuneration is awarded in
the form of shares subject to demanding performance
conditions. This is intended to encourage the Chairman and Chief
Executive Officer to make decisions and take actions with a viewto achieving sustainable profitability over a long period, andaligns his interests with those of the Company's shareholders andother stakeholders. The requirement for him to retain a large
proportion of the performance shares awarded to him
throughout his term of office also fosters a long-term vision andclose correlation with shareholder interests.
Through these principles, the remuneration policy is intended toestablish a clear, motivating framework that serves the Group's
ambitions.

Process for determining the Chairman
and Chief Executive Officer's remuneration
Process for determining the Chairman and Chief Executive
Officer's remuneration involves three of the Board of Directors'
Committees.

Remuneration Committee
The Remuneration Committee makes recommendations to theBoard of Directors regarding:• the remuneration policy for executive corporate officers andDirectors;• the determination and weighting of the quantifiable andqualitative criteria of the variable remuneration, both annual
and long-term, of executive corporate officers;• the performance target achievement rate applicable to thevariable remuneration, both annual and long-term, of
executive corporate officers.
The Remuneration Committee regularly examines the
remuneration policy, and is particularly attentive to its
compliance with the key principles set out above.
A review of the existing remuneration mechanisms is carried out
annually to assess whether changes should be made.

Corporate governance
Remuneration of corporate officers

Where appropriate, it may be supported by an assignment
conducted by external consultants. In particular, market
practices may be benchmarked, allowing objective considerationof the remuneration policy and a better understanding of
Kering's relative position in terms of remuneration. Where suchbenchmarking takes place (both in terms of remuneration levels
and the principles for determining and managing remuneration),comparisons are made principally with the benchmark panel
used by Kering when awarding long-term variable remunerationin the form of performance shares, made up of eight listedcompanies in the Luxury sector: Burberry, Ferragamo, Hermès,
LVMH, Moncler, Prada, Richemont and Swatch. Other companies
may also be taken into account based on their size and businesssector.

Board of Directors

In fulfilling its remit, the Remuneration Committee also relies onwork done by the Group's Human Resources and Legal
departments which, in conjunction with the Secretary of theBoard of Directors, make recommendations to the Committee in
their respective fields of expertise: the Human Resources
Department formulates proposals on the structure of
remuneration, the weighting of its components and the choice ofperformance targets for variable remuneration, making sure thatthey are aligned with the Group's strategy; the Legal Department
ensures that the remuneration policy complies with applicablelegislative and regulatory provisions and with the principles set
out in the AFEP-MEDEF Code; it also ensures that the Committee
is fully informed of market best practice and the expectations
and observations expressed by investors as part of shareholder
dialogue and their voting policies, as well as by proxy advisors.

Annual General Meeting

Decisions about the composition of the executive corporate
officers' remuneration and its modification over time – whether
in relation to the balance between fixed and variable
components or the choice of performance criteria – are based on
proposals made by the Remuneration Committee. These
proposals are predicated, in turn, on analyses andrecommendations provided by the Group's Sustainability,
Human Resources, Remuneration and Employee Benefits, andLegal Departments.
The level of achievement of the financial targets for the executive
corporate officer's annual and long-term variable remuneration
is determined by the Group's Finance Department. The level ofachievement of the non-financial targets is first assessed by the
Remuneration Committee, which reports thereupon to the Boardof Directors. This assessment is based on information provided
by the Legal, Sustainability and Human Resources Departments,
members of which may be present during the meeting to provide
commentary.

Audit Committee
As part of the process for determining variable remuneration, theAudit Committee examines each year the level of achievement of
the applicable financial performance targets.

Sustainability Committee
In addition to financial performance targets, the executive
corporate officer's annual and long-term variable remunerationis also based on the achievement of non-financial performancetargets aligned with the Group's strategic priorities in this area, asestablished by the Board of Directors on the basis of work doneby the Sustainability Committee.

The Board of Directors determines the remuneration policy
applicable to the Chairman and Chief Executive Officer. In
particular, it ensures that the performance indicators and targets
for annual and long-term variable remuneration components arealigned with the Group's strategy.
In addition, the Board of Directors discusses and approves
payment of variable elements payable in accordance with theprinciples adopted, after the consolidated financial statements
for the relevant year have been approved.
The Chairman and Chief Executive Officer does not take part indiscussions or votes relating to his remuneration.

In accordance with legislative and regulatory provisions inforce, shareholders are invited to vote on the following matterseach year as part of the Annual General Meeting:• the remuneration policy for the executive corporate officer(s)(ex-ante vote);• the content of the corporate governance report setting out
details of remuneration paid or granted to corporate officers
during the last financial year (global ex-post vote);• the fixed, variable and exceptional components of total
remuneration and benefits in kind paid during or awarded in
respect of the last financial year to each executive corporate
officer (individual ex-post vote).

5.1.2 Components of the remuneration
policy for the Chairman and Chief
Executive Officer
In the Annual General Meeting of April 27, 2023, the resolution
relating to remuneration paid during or awarded in respect of2022 to the Chairman and Chief Executive Officer (5th resolution)
was approved by shareholders, with 77.44% voting in favor, andthe remuneration policy for executive corporate officers for 2023
(7th resolution) was also approved by shareholders, with 94%
voting in favor. Since the approval rate for 2022 remuneration
was less than 80%, the Remuneration Committee, which pays
careful attention to the views of shareholders and takes theminto account as part of Board-level discussions regarding
remuneration, took the view that it was necessary to understandthe reasons behind that approval rate and consider any action to
be taken in response. The Remuneration Committee has met
twice for that purpose. After an in-depth analysis of investor
expectations and comments as part of the shareholder dialogue
process, both before the AGM and afterwards and during the ESG
roadshow (for more details about shareholder dialogue regarding
governance, please see section 1.6 of the present chapter), andafter examining the existing remuneration policy in the light of
those responses, the Remuneration Committee made proposals
to the Board of Directors to change the policy, taking into
account some of the salient points made by shareholders.

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As a result, after hearing the analysis and recommendations of the Remuneration Committee, the Board of Directors, in its February 28,2024 meeting, decided to make the following changes to the Chairman and Chief Executive Officer's remuneration policy for 2024:
Main changes proposed regarding the Chairman and Chief Executive Officer's 2024 remuneration policy
Inclusion of a quantitative
The Board of Directors proposes to include in the variable remuneration of the Chairman and Chiefclimate criterion in
Executive Officer, a performance criterion based on the Group's target, announced in 2023, tothe determination
reduce its greenhouse gas emissions (scopes 1, 2 and 3 of the GHG Protocol) by 40% in absoluteof the Chairman and Chiefterms by 2035 compared to 2021. That target would constitute a new performance indicator when
Executive Officer's annual
determining annual variable remuneration and would supplement the criterion based on
and long-term variable
protecting biodiversity used to determine long-term variable remuneration.
remuneration
To recap, the Chairman and Chief Executive Officer's annual variable remuneration for 2023
included a target relating to a commitment to reduce in absolute terms the carbon footprint of theGroup's supply chain (Scope 3 of the GHG Protocol). The Climate criterion proposed for inclusion in
the 2024 remuneration policy follows on from that target. Its inclusion in the determination of the
Chairman and Chief Executive Officer's short- and long-term variable remuneration is intended toensure that the Group's Climate Strategy is implemented immediately and on an ongoing basis,and to allow its fulfillment to be assessed over time.
The Climate criterion would account for 10% of the Chairman and Chief Executive Officer's annual
variable remuneration and 5% of his long-term variable remuneration, putting it on a par with the
Biodiversity criterion.
As a result, the "environment" criteria used to determine the Chairman and Chief Executive
Officer's remuneration would be assessed on the basis of criteria that are solely quantitative,aligned with the Group's sustainability strategy, clear and measurable with reference to theGroup's targets.
Ongoing use of a criterion
relating to the protectionof intangible assets inthe determinationof the Chairman and Chief
Executive Officer's annual
variable remuneration

In line with the implementation in 2023 of a process to protect the Houses' intangible assets andreputation, the Board of Directors proposes to maintain a target in this area, which would becomea performance indicator, in order to align the Chairman and Chief Executive Officer's remuneration
as far as possible with the Group's priorities and strategic issues. This target would account for 10%of the Chairman and Chief Executive Officer's annual variable remuneration for 2024.

Inclusion of a criterion
relating to the gender pay
gap within the Group in
the determinationof the Chairman and Chief
Executive Officer's annual
variable remuneration

In line with Kering's long-standing commitment to women, and as a continuation of the pay equity
certification process initiated in 2023, the Board of Directors also proposes to include a new
performance criterion aimed at reducing by more than a third the fixed pay gap between men andwomen that cannot be explained by factors likely to legitimately influence pay levels (such as levelof responsibility, level of experience, geographical location, professional field practiced, etc.).
The target would account for 6% of the Chairman and Chief Executive Officer's annual variable
remuneration.

Inclusion of a criterion
relating to succession
planning in
the determinationof the Chairman and Chief
Executive Officer's annual
variable remuneration

The Board of Directors proposes to include a new performance target based on updating andstrengthening succession plans for the two Deputy CEOs and other members of the Executive
Committee, the House CEOs, and the Creative Directors. This target would account for 4% of the
Chairman and Chief Executive Officer's annual variable remuneration.

Discontinuationof remuneration paidin respect of duties
as a Director

The Board of Directors proposes to discontinue, starting in 2024, the remuneration granted to the
Chairman and Chief Executive Officer in respect of his duties as a Director and as a member of the
Sustainability Committee, which mainly depends on his participation in Board and Sustainability
Committee meetings. With respect to 2023, that remuneration amounted to €95,284, due to his
participation in 14 Board meetings and two meetings of the Sustainability Committee.

For information, based on a recommendation from the Remuneration Committee, the Board of Directors also decided in its
February 28, 2024 meeting that the amount payable to the Chairman and Chief Executive Officer in respect of the 5,411 KMUs granted tohim in 2018 as multi-annual variable remuneration in accordance with the corresponding remuneration policy approved in the Annual
General Meeting and exercised by the Chairman and Chief Executive Officer in 2022, payment of which was deferred, will be paid to him
in stages.

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Corporate governance
Remuneration of corporate officers

For 2024, the remuneration structure for the Chairman and Chief
Executive Officer will comprise three components: fixed
remuneration, annual variable remuneration (short-term) andlong-term variable remuneration (in the form of performance
shares).
The relative weight of each component will be as follows:
60%

Long term
variable
remuneration(LTI(1))

84%
Remuneration
subject toperformance
conditions

Performance
conditions
Measured over three years◦ 80% financial criteria◦ 20% non-financial criteria

24%

Annual variable
remuneration(2)Performance
conditions
Measured over one year
◦ 70% financial criteria◦ 30% non-financial criteria

16%

Fixed
remuneration(1) LTI: 150% of the fixed remuneration for year Y + target annual
variable remuneration for year Y-1.
(2) Annual variable remuneration: 150% of fixed remuneration.

Fixed remuneration
The fixed remuneration of the Chairman and Chief Executive
Officer is determined by taking into account the following
factors:• the level and complexity of the tasks and responsibilities of
the Chairman and Chief Executive Officer compared withthose of an executive corporate officer of a group ofcomparable size;• the incumbent's experience, background and level ofexpertise;• market research and analyses relating to the remuneration ofpeople in similar positions in comparable companies.
In line with recommendation 26.3.1 of the AFEP-MEDEF Code, theChairman and Chief Executive Officer's annual fixed
remuneration is reviewed at relatively long intervals, and is used
as a reference for calculating his annual variable remunerationand determining the value of his long-term remuneration.

(1)

For 2024, the Board of Directors proposes leaving the annual
fixed remuneration of the Chairman and Chief Executive Officer at€1,200,000, i.e., the same level as for the last seven years(1).

Annual variable remuneration
Annual variable remuneration is designed to align the executive
corporate officer's remuneration with the Group's short-term
financial and non-financial performance, and to encourage theachievement of its long-term strategic objectives. It is stated as apercentage of annual fixed remuneration and has no guaranteed
minimum amount.
If all targets are hit, the Chairman and Chief Executive Officer's
annual variable remuneration equals 150% of his annual fixed
remuneration. In accordance with the recommendations of the
AFEP-MEDEF Code, annual variable remuneration is capped at
203% of his annual fixed remuneration if targets are exceeded(achievement rate of over 125% for financial targets and of 100%for non-financial targets).
The Chairman and Chief Executive Officer's annual variable
remuneration for 2024 depends on:• the achievement of financial targets based on the Group's
recurring operating income and free cash flow fromoperations, which determine 70% of the total, and• the achievement of non-financial targets based on indicators
relating to the climate (10%), organization and talentmanagement (10%) and the protection of the Group's
intangible assets (10%), which determine 30% of the total.

Criteria for annual
variable remuneration

30%

Nonfinancial
criteria

70%

Financial criteria

In light of the COVID-19 pandemic and its impact on business activity, and following the decision made by the Chairman and Chief Executive
Officer, at its meeting of April 21, 2020, the Board of Directors decided, as an exceptional measure, to reduce the amount of the fixed
remuneration proposed for the Chairman and Chief Executive Officer for 2020 to an amount of €960,000.

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The various performance criteria (financial and non-financial) are distributed as follows:
Financial criteria
Consolidated recurring operating income
Achievement of the budget target, comparing the recurring operating income as defined in the budget(remeasured at the average exchange rates of the year) to the published recurring operating income (excluding
non-budgeted scope impacts).

Weighting35%

Consolidated free cash flow from operations
Achievement of the budget target, comparing the free cash flow from operations as defined in the budget to the
published free cash from operations (excluding non-budgeted scope impacts).

35%

Subtotal70%

Non-financial criteria
Climate2024 targets• 4% reduction in greenhouse gas emissions in absolute terms (scopes 1, 2 and 3of the GHG Protocol) as part of the overall target of reducing them by 40% by 2035

Weighting
10%

Organization and talent • Reduction in the unexplained gap(1) between the fixed salaries of men and womenmanagement
within the Group (as calculated as part of the Universal Fair Pay Check certification
approach) from 1.6% to 1% in 2024

6%

• Strengthening of succession plans for the two Deputy CEOs and other membersof the Executive Committee, the House CEOs, and Creative Directors

4%

Protection of the• Strict compliance with the new internal control framework put in place forGroup's intangible
marketing and communications activities in order to protect the Group's
assets (image,
reputation, and an absence of observed incidents
reputation, intellectual
property, compliance)

10%

Subtotal

30%

TOTAL

100%

(1) The unexplained gap is the residual difference between the remuneration of men and women that cannot be explained by factors that may
legitimately influence remuneration levels (such as the level of responsibility, the level of experience, geographical location, the profession
concerned, etc.).

The Chairman and Chief Executive Officer's annual variable
remuneration for a given year is calculated and decided on by the
Board of Directors after the end of the financial year to which it
relates.
Criteria for the non-financial targets defined for 2024 are listed
above. For confidentiality reasons, the targets associated withfinancial criteria are not disclosed at the time they are set but
disclosed ex-post as part of reporting on their level ofachievement.
The assessment of each performance target's level ofachievement is based on a detailed proposal prepared by the
Remuneration Committee, which relies in particular on objective
information reported by the Group's Finance Department,
Human Resources Department, Sustainability Department andLegal Department in relation to the predefined targets.
The above-described principles for the determination of annual
variable remuneration of the Chairman and Chief Executive
Officer will be pursued in 2024 subject to the approval of theshareholders at the Annual General Meeting on April 25, 2024.

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Annual variable remuneration due for 2024 will be paid in 2025,
following the 2025 Annual General Meeting's approval of thefinancial statements. Payment is also subject to the approval of
the 2024 remuneration policy in the Annual General Meeting on
April 25, 2024.

Factors determining the payment of annual
variable remuneration
The factors determining payment of annual variable
remuneration are the same as for previous years and function as
described in the table below.
For the financial targets (70% of annual variable remuneration),
the achievement rate must be at least 75% for each target forvariable remuneration to be paid. If targets are met exactly, thevariable remuneration awarded corresponds to 100% of thetarget amount. If the achievement rate reaches or exceeds 125%,
150% of the target amount is paid out.
The percentage payment for the non-financial targets (30% of
annual variable remuneration) may vary between 0% and 100%
depending on the assessment made by the Board of theachievement rate of the targets.

Corporate governance
Remuneration of corporate officers

Percentage
of bonus
awardedAs a % of fixed
remuneration(1)

0%

0%

100%
150%

105%
158%

Achievement rate of non-financial targets (30% of the bonus)
Criterion 1

0% to 100%0% to 15%

Criterion 2
Criterion 3

0% to 100%0% to 100%0% to 15%0% to 15%

Achievement rate of financial targets (70% of the bonus)(2)≤ 75%
1≥ 125%

Maximum bonus (for achieving 125% of the financial targets and 100%of the non-financial targets)

203%(1) The Chairman and Chief Executive Officer's annual variable remuneration equals 150% of his annual fixed remuneration.
(2) See graph below illustrating the rate of payment of the bonus depending on the achievement of financial targets.

Share of the bonus relating to financial targets

Any achievement falling between the minimum (75%) and the target (100%) achievement rates or between the target and the
maximum (125%) achievement rates will give rise to annual variable remuneration calculated on a straight-line basis between therelevant thresholds. For example, for 90% achievement of the target, an executive corporate officer would receive 60% of the annual
variable remuneration; or for 110% achievement of the target, 120% of the annual variable remuneration.

Long-term variable remuneration
Awards of performance shares
Since 2020, the Chairman and Chief Executive Officer's long-term
remuneration has been based on free grants of shares subject toperformance conditions assessed over three years, replacing
Kering Monetary Units (KMUs).
This system serves to tighten the link between the Chairman andChief Executive Officer's remuneration and his direct contribution
to the long-term performance of the company, while also aligning
its interests with the interests of shareholders.
Free awards of performance shares are accompanied by shareawards for employees in key positions within the Group. The
award of performance shares to the Chairman and Chief
Executive Officer is capped at 20% of the total shares granted by
the Board of Directors during each fiscal year, subject to an

overall limit on awards equal to 1% of the Company's sharecapital on the award date.
The Chairman and Chief Executive Officer's long-term variable
remuneration equals 150% of his annual fixed remuneration andhis annual variable remuneration due in respect of the previous
year. It is aimed at encouraging him to take decisions with a longterm view, thereby strengthening the close link between his
overall remuneration and Group performance in line with bestpractice in the international market. The Chairman and Chief
Executive Officer's long-term variable remuneration does notinclude any guaranteed minimum amount.
The duration of vesting period of the shares is three years, in linewith the period over which the performance conditions areassessed and with customary market practice.

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Performance conditions
The long-term variable remuneration granted in the form of
performance shares to the Chairman and Chief Executive Officer
is subject to dual mechanism of performance conditions that is
intended to:• make the number of shares actually obtained following thethree-year vesting period conditional on the achievement offinancial and non-financial targets, in line with the Group's
strategic priorities;• maintain the emphasis on the performance of the Kering
share relative to that of a reference panel of luxury goods
companies.

Accordingly, the number of performance shares awarded to the Chairman and Chief Executive Officer that ultimately vest is initiallysubject to the criteria and weightings indicated in the table below:
Criteria
Consolidated
recurring
operating income

Performance assessment method
Increase observed between the average amount over the three-year vesting period
and the amount observed for the year preceding the year of the grant• No increase: 0 shares• Increase of less than 5%: 50% of the shares relating to the criterion• Increase of 5% or more: 100% of the shares relating to the criterion

Consolidated free
cash flow fromoperations

Increase observed between the average amount over the three-year vesting period
and the amount observed for the year preceding the year of the grant• No increase: 0 shares• Increase of less than 5%: 50% of the shares relating to the criterion• Increase of 5% or more: 100% of the shares relating to the criterion

Relativeweighting40%

40%

Proportion
Maintain the proportion of women in Top 500 roles at 50% after the end of the vesting periodof women• Representation rate of women less than 42%: 0 sharesin executive• Representation rate of women at least 42% but less than 48%: 50% of the shares relating
management roles
to the criterion• Representation rate of women at least 48% but less than 50%: 80% of the shares relating
to the criterion• Representation rate of women at least 50%: 100% of the shares relating to the criterion
Biodiversity
Regenerative agriculture practices adopted by 2026 on 1,300,000 hectares of land linked
to Kering's supply chain and protection of 1,000,000 hectares in key areas that are not partof the supply chain• No targets met: 0 shares• One target met: 50% of the shares relating to the criterion• Both targets met: 100% of the shares relating to the criterion

10%

Climate5%

10% reduction in greenhouse gas emissions in absolute terms (scopes 1, 2 and 3 of the GHG
Protocol) by 2026 as part of the overall target of reducing them by 40% by 2035
• Reduction of less than 3%: 0 shares• Reduction of at least 3% but less than 10%: 50% of the shares relating to the criterion• Reduction of at least 10%: 100% of the shares relating to the criterion

Subtotal shares vested

0% to 100%

Kering shareperformance+/- 50% impact
See comment below

TOTAL shares
vested0% to 150% of shares awarded

The number of performance shares that ultimately vest subject tothe fulfillment of the financial and non-financial performance
conditions described above and the service condition described
below is then adjusted upward or downward by a maximum
proportion of 50%, depending on the performance of the Kering
share price (difference in price between the twenty days before
the award date of the performance shares and the twenty days
before the date of vesting) relative to the performance of areference panel over the same period. The reference panel
comprises the shares of the following eight listed companies inthe Luxury sector: Burberry, Ferragamo, Hermès, LVMH, Moncler,
Prada, Richemont and Swatch.

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KERING - 2023 Universal Registration Document5%

It follows that the number of vested shares based on theachievement of financial and non-financial targets may be
reduced by half if the Kering share underperforms the reference
index by more than 50%. Conversely, if the Kering share priceoutperforms, the number of vested shares based on financial andnon-financial criteria may be increased in proportion to thisoutperformance by up to 50%.
As a result, the number of shares vesting at the end of the vesting
period may vary from 0% to 150% of the number of sharesawarded under the plan based on the assessment of financial
performance, non-financial performance and share priceperformance.

Corporate governance
Remuneration of corporate officers

Service condition
Vesting of the performance shares awarded to the Chairman andChief Executive Officer is also subject to his continued presence
within the Group on the vesting date.
Reason for departure
Termination (resignation, nonrenewal of term of office,dismissal)
Disability

Death

If the Chairman and Chief Executive Officer leaves before the endof the vesting period, the reasons for his departure will determine
whether he retains or loses his entitlement to the performance
shares granted to him but not yet vested, as described below:

Consequence on performance shares not yet vested
Entitlement lost, barring a reasoned decision to the contrary by the Board of Directors
and except where the person becomes an employee or corporate officer of another Group
company.
Entitlement retained, with accelerated vesting. Performance criteria are deemed to be met
in full, except for the adjustment mechanism based on share-price performance, which will be
determined prorata temporis.
Entitlement retained, with accelerated vesting. Performance criteria are deemed to be met
in full, except for the adjustment mechanism based on share-price performance, which will be
determined prorata temporis.

Lock-in obligation
In compliance with the provisions of article L. 225-197-1 of theFrench Commercial Code, the Chairman and Chief Executive
Officer must hold, in registered form, throughout his term ofoffice, a number of performance shares awarded representing
the value of two years of his annual fixed and variable
remuneration at the date of delivery of the shares, as determinedby the Board of Directors.
In addition, the Chairman and Chief Executive Officer undertakes
to refrain from using hedging instruments, throughout his term ofoffice, on any of the shares awarded to him under the
performance share award mechanism.

Exceptional remuneration
The Chairman and Chief Executive Officer will not be awarded
any exceptional remuneration for 2024.

Remuneration due in respect of duties as a
Director (formerly known as Directors’ fees)
The Chairman and Chief Executive Officer will not be awarded
any remuneration in respect of his duties as a Director for 2024.

Benefits for taking up a positionor termination payments
The Chairman and Chief Executive Officer will not be eligible forany benefits for taking up a position or termination payments.

Non-compete indemnities
The Chairman and Chief Executive Officer will not be eligible forany non-compete indemnities.

Benefits in kind
The Chairman and Chief Executive Officer will benefit frominternational health insurance policy and a company car with adriver.

Draft resolution regarding the remuneration
policy for the executive corporate officer
15th resolution: Approval of the remuneration policy
for the executive corporate officer
Deliberating in accordance with the rules of quorum and majority
applicable to ordinary general meetings and having reviewed theBoard of Directors' report on corporate governance, the Annual
General Meeting approves, pursuant to the provisions ofarticle L. 22-10-8 of the French Commercial Code, theremuneration policy for the executive corporate officer as
described in the aforementioned report, which is included in the2023 Universal Registration Document, chapter 3 "Corporate
governance", section 5.1 "Remuneration policy applicable to the
Chairman and Chief Executive Officer (executive corporate
officer) for 2024, subject to approval by the Annual General
Meeting of April 25, 2024 (ex-ante vote)".

Supplementary pension plan
The Chairman and Chief Executive Officer will not be eligible forany supplementary pension plans.

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Remuneration of corporate officers

5.2 Remuneration policy applicable to the Directors for 2024 subject
to approval by the Annual General Meeting of April 25, 2024
(ex-ante vote)
5.2.1 General principles of the
remuneration policy for membersof the Board of Directors
The remuneration policy for Directors is determined by the Boardof Directors, based on the recommendation of the Remuneration
Committee, and subject to approval in the Annual General
Meeting. It is established in accordance with article L. 22-10-8 of
the French Commercial Code and with the recommendations of
the AFEP-MEDEF Code.
Accordingly, Directors' remuneration consists of a fixed portion(40%) and a larger variable portion (60%) that depends on
Directors' actual attendance in meetings of the Board of Directors
and of the Committees of which they are members. The
remuneration policy for Directors is consistent with theCompany's corporate interest.
The variable remuneration allocated to the Directors depends ontheir actual attendance at meetings of the Board and of thespecialized Committees of which they are members, and on thetime and effort required of them to prepare for and participate inthese meetings. The Lead Independent Director also receives
additional remuneration, which is subject to the achievement ofpredefined objectives relating to her duties, as described in
section 1.4 of this chapter. The Climate Change Lead also receives
a higher level of remuneration for performing his duties, as
described in section 1.5 of this chapter.
The Remuneration Committee prepares and monitors the
remuneration policy for Directors. The total amount of
remuneration allocated to the Directors and its apportionment
are approved by shareholders at the Annual General Meeting.
The Board and Remuneration Committee meetings that deal withthe remuneration policy for Directors are carried out in strict
compliance with the procedures for preventing and managing
conflicts of interest, which are described in the Board's internal
rules, and Directors do not participate in discussions or votes on
resolutions that relate to their own remuneration.
Financière Pinault, which controls Kering, has waived all
remuneration in respect of its duties as a Director within theGroup (including as a Director of Kering SA) and as a member ofthe specialized Board Committees.
Concetta Battaglia and Vincent Schaal, the Directors representing
employees, both have a permanent employment contract with
the Company or a Group company.

5.2.2 Components of the remuneration
policy for members of the Boardof Directors
In the Annual General Meeting of April 22, 2021, the maximum
total annual remuneration that may be paid to members of theBoard of Directors in respect of their duties was set at €1,400,000.

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It is proposed that:• the total annual remuneration paid to Directors be
maintained at €1,400,000;• the special remuneration awarded to the Lead Independent
Director be increased from €50,000 to €75,000 given her
increased responsibilities, particularly in view of herparticipation, from 2024, in the roadshow for significant
investors in the Company ahead of the AGM, together withher participation in the ESG roadshow, and in view of the timeand effort she is required to invest in those events and toprepare for meetings of the Board of Directors andspecialized Committees, and to ensure that the remuneration
offered by Kering remains competitive with that offered byother CAC 40 companies;• except for the change relating to the special remuneration
awarded to the Lead Independent Director as presented
above, the apportionment of Director remuneration,
described below, be left unchanged.
The apportionment between the fixed portion (40%) and thevariable portion (60%) that depends on members' attendance inmeetings of the Board of Directors and of the specialized
Committees, remains unchanged.
Directors' remuneration is thus allocated in the following
manner:• a fixed portion, minus (i) a special portion corresponding to
the remuneration of the Chairs of the Audit, Remuneration,
Appointments and Governance, and Sustainability
Committees, respectively (€23,000 each), (ii) a special portion
allocated to the Lead Independent Director for her role on the
Board (€75,000 for 2024), and (iii) a special portion allocatedto the Climate Change Lead (€23,000), with the remainder
being allocated with a coefficient of 1 per Board membership,
increased by 0.5 per Committee;• a variable portion, allocated with a coefficient of 1 perpresence at each meeting of the Board and 0.5 for eachattendance of a Committee meeting.
The remuneration allocated to the Lead Independent Director
will be subject to the achievement of objectives set in advanceby the Board of Directors. The Lead Independent Director's
objectives for 2024 will be the following:• promote and maintain a good relationship between the
Board and its shareholders and investors;• coordinate the internal assessment of the Board and its
members;• facilitate and build relationships within the Board, including
by holding meetings without executive corporate officers;• ensure the effective implementation of mechanisms toprevent and resolve potential conflicts of interest;• report, on a regular basis, to the Chairman of the Board on
the performance of her duties.
This remuneration policy applies to all members of the Board of
Directors, including those who represent employees but
excluding the Chairman and Chief Executive Officer who from2024 will no longer receive remuneration in respect of his role asa Director, in accordance with the 2024 remuneration policy forthe executive corporate officer described above and subject toapproval in the April 25, 2024 AGM.

Corporate governance
Remuneration of corporate officers

Draft resolution regarding the remuneration
policy for Directors
16th resolution: Approval of the remuneration policy
for Directors
Deliberating in accordance with the rules of quorum and majority
applicable to ordinary general meetings and having reviewed theBoard of Directors' report on corporate governance, the Annual

General Meeting approves, pursuant to the provisions ofarticle L. 22-10-8 of the French Commercial Code, theremuneration policy for Directors as described in the
aforementioned report, which is included in the 2023 Universal
Registration Document, chapter 3 "Corporate governance",
section 5.2 "Remuneration policy applicable to the Directors for
2024, subject to approval by the Annual General Meeting ofApril 25, 2024 (ex-ante vote)".

5.3 Report on the remuneration paid during or awarded for 2023
to corporate officers in respect of their duties (ex-post vote)In accordance with article L. 22-10-34 of the French Commercial Code, this report sets out below the information mentioned inarticle L. 22-10-9 of the French Commercial Code, which is covered by the 12th resolution put to shareholders for approval in the
April 25, 2024 Annual General Meeting.

5.3.1 Remuneration paid during or awarded for 2023 to the Chairman and Chief
Executive Officer and to the Group Managing Director who was in post until
October 3, 2023 (executive corporate officers) in respect of their duties
To recap, Jean-François Palus, who had been Group Managing
Director and a Director since 2008, resigned from those roles on
October 3, 2023 after being appointed President and CEO of
Gucci, so that he could fully focus on his new role within theGroup.
In 2023, the Company's executive corporate officers were:• François-Henri Pinault, Chairman and Chief Executive Officer,
and• Jean-François Palus, Group Managing Director until
October 3, 2023.
The components of remuneration payable to the executive
corporate officers with respect to 2023 were established incompliance with the remuneration policy for the executive
corporate officers approved by shareholders at the Annual

General Meeting of April 27, 2023 (7th resolution). The
remuneration awarded to Jean-François Palus with respect to hisrole as Group Managing Director was established prorata
temporis.
The tables below set out the remuneration components awardedor paid to François-Henri Pinault in respect of his role as
Chairman and Chief Executive Officer and to Jean-François Palusin respect of his role as Group Managing Director until October 3,
2023.
The payment of variable and exceptional remuneration
components due with respect to 2023 is subject to their approvalin the April 25, 2024 AGM, in accordance with article L. 22-10-34(II)of the French Commercial Code.

Summary of remuneration and performance shares awarded
to each executive corporate officer(Table 1 pursuant to the recommendations of the AFEP-MEDEF Code)François-Henri Pinault
Chairman and Chief Executive Officer
Gross amounts (in €)Remuneration awarded(1) (see details in Table 2)
Value of performance shares awarded during the year(2) (see details in Table 6)
Value of other long-term remuneration plans

TOTAL

2023
1,972,881
2,825,274
N/A

4,798,155

2022
2,289,899
4,282,717
N/A

6,572,616(1) The amounts awarded for the year correspond to components of remuneration for services rendered during the year.
(2) This amount is based on the number of performance shares awarded, measured at their fair value on the date of the award. In the
consolidated financial statements, this amount is spread over the KMU vesting period, in accordance with IFRS 2.

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Corporate governance
Remuneration of corporate officers

Jean-François Palus
Group Managing Director until October 3, 2023
Gross amounts (in €)Remuneration awarded(1) (see details in Table 2)
Value of performance shares awarded during the year(2) (see details in Table 6)
Value of other long-term remuneration plans

TOTAL

2023

2022

1,578,429
0 (2)
N/A

2,421,718
2,567,046 (3)N/A

1,578,429

4,988,764(1) The amounts awarded for the year correspond to components of remuneration for services rendered during the year. The remuneration
granted to Jean-François Palus with respect to his role as Group Managing Director in 2023 was established prorata temporis.
(2) No performance shares were awarded to Jean-François Palus with respect to or during his role as Group Managing Director in 2023.
Performance shares were awarded to him with respect to his role as President and CEO of Gucci as part of the 2023 plan for certain Group
employees.
(3) This amount is based on the number of performance shares awarded in 2022, measured at their fair value on the date of the award. In the
consolidated financial statements, this amount is spread over the KMU vesting period, in accordance with IFRS 2.

Table summarizing the remuneration of the Chairman and Chief Executive Officer(Table 2 pursuant to the recommendations of the AFEP-MEDEF Code)2023
François-Henri Pinault
Chairman and Chief Executive Officer
Gross amounts (in €)Fixed remuneration

2022
Amounts paid
during the year
1,200,000

Amounts
awardedfor the year
1,200,000

Amounts paid
during the year
1,200,000

612,000

943,200 (1)943,200

1,844,208 (2)2018 Plan
2019 Plan––

705,057 (3)1,991,952 (4)

–
–

–
–

Exceptional remuneration2018 Plan–––

5,840,000 (5)95,28465,597

93,931 (1)65,597

93,931
52,76891,527 (2)52,768

1,972,881

4,999,737

2,289,899

9,028,503

Annual variable remuneration
Multi-annual variable remuneration

Remuneration paid in respect of duties
as a Director (Kering)(6)

Benefits in kind

TOTAL

Amounts
awardedfor the year
1,200,000(1) For 2022.
(2) For 2021.
(3) 5,411 KMUs were awarded to the Chairman and Chief Executive Officer under the 2018 plan with respect to multi-annual variable
remuneration subject to performance conditions, at €581 per KMU, corresponding to a value of €3,143,791 at the date of the award. These
5,411 KMUs were exercised by the Chairman and Chief Executive Officer in April 2022 based on a value of €1,387 per unit at December 31, 2021,
corresponding to an amount of €7,505,057. Following the decision by the Board of Directors on March 2, 2023, payment of this amount wasdeferred in full. A first payment of €705,057 was made in November 2023. On February 28, 2024, the Board of Directors, on therecommendation of the Remuneration Committee, decided that the remainder would be paid in stages.
(4) 4,175 KMUs were awarded to the Chairman and Chief Executive Officer under the 2019 plan with respect to multi-annual variable
remuneration subject to performance conditions, at €753 per KMU, corresponding to a value of €3,143,775 at the date of the award. Just oneof the three performance criteria was met (relating to recurring operating income), leading to the cashing-in of 50% or 2,088 KMUs. Those
2,088 KMUs were exercised by the Chairman and Chief Executive Officer in October 2022 based on a value of €954 per unit at June 30, 2022,
corresponding to an amount of €1,991,952. Following the decision made by the Board of Directors of March 2, 2023 to defer payment, the sum
was paid out in full in May 2023.
(5) 5,000 KMUs were awarded to the Chairman and Chief Executive Officer under the 2018 plan with respect to exceptional remuneration without
performance conditions, following the major transformation of the Group, at €581 per KMU, corresponding to a value of €2,905,000 at the dateof the award. These 5,000 KMUs were exercised by the Chairman and Chief Executive Officer in April 2020 based on a value of €1,168 per unit at
December 31, 2019, corresponding to an amount of €5,840,000. Following the decision made by the Board of Directors of February 16, 2021 todefer payment, the sum was paid out in full in 2022.
(6) The Chairman and Chief Executive Officer benefits from a company car with a driver and an international health insurance.

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Corporate governance
Remuneration of corporate officers

Table summarizing the remuneration of the Group Managing Director until October 3, 2023
(Table 2 pursuant to the recommendations of the AFEP-MEDEF Code)Jean-François Palus
Group Managing Director
until October 3, 2023
Gross amounts (in €)Fixed remuneration
Annual variable remuneration
Multi-annual variable remuneration:2018 Plan
2019 Plan
Exceptional remuneration
Remuneration paid in respect of duties
as a Director (Kering)
Remuneration paid in respect of duties
as a director (subsidiaries)
Benefits in kind(7)

TOTAL

2023

2022

Amounts awarded
for the year (1)900,000

Amounts paid
during the year
900,000

Amounts
awarded forthe year
1,200,000

459,000

943,200 (2)943,200

1,536,840 (3)

–
–

–
–

–
–

5,808,725 (4)2,113,788 (5)68,113 (6)93,931 (2)93,93198,301 (1)48,750102,566

48,750102,566

60,000124,587

60,000124,587

1,578,429

2,088,447

2,421,718

10,942,241

Amounts paid
during the year
1,200,000(1) The remuneration granted to Jean-François Palus with respect to his role as Group Managing Director in 2023 was established prorata
temporis.
(2) For 2022.
(3) For 2021.
(4) 3,809 KMUs were awarded to the Group Managing Director under the 2018 plan with respect to multi-annual variable remuneration subject toperformance conditions, at €581 per KMU, corresponding to a value of €2,213,029 at the date of the award. Those 3,809 KMUs were exercisedby the Group Managing Director in October 2021 based on a value of €1,525 per unit at June 30, 2021, corresponding to an amount of€5,808,725. Following the decision made by the Board of Directors of February 16, 2022 to defer payment, the sum was paid out in full in 2022.
(5) 3,047 KMUs were awarded to the Group Managing Director under the 2019 plan with respect to multi-annual variable remuneration subject toperformance conditions, at €753 per KMU, corresponding to a value of €2,294,391 at the date of the award. Just one of the three performance
criteria was met (relating to recurring operating income), leading to the cashing-in of 50% or 1,524 KMUs. These 1,524 KMUs were exercised in
April 2022 based on a value of €1,387 per unit at December 31, 2021, corresponding to an amount of €2,113,788, which was paid out in full in
2022.
(6) With respect to his role as Director of Kering until October 3, 2023, Jean-François Palus took part in all 11 meetings of the Board of Directorsthat took place during 2023 until that date, and was absent from the September 15, 2023 meeting of the Sustainability Committee, of which he
was a member.
(7) As part of his role, the Group Managing Director had the benefit of a company car with a driver, as well as international health, disability andlife insurance.

Annual remuneration due in respect of duties as a Director of Kering in 2022 was paid in March 2023, and annual remuneration due inrespect of duties as a Director of Kering in 2023 was paid in March 2024.

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Corporate governance
Remuneration of corporate officers

Details relating to annual variable remuneration awarded for 2023
Achievement rate of targets in 2023 – François-Henri Pinault, Chairman and CEO

35%
70%

4,175

75%

0 % 100% 100% 125% 150% 47%
64%

(2)

0%
10%

0%
126,000

100% 100% 100% 100% 70%
100% 100% 100% 100% 100%

70%
100%

126,000
180,000

100% 100% 100% 100% 100%100%

180,000

90%

90%

486,000

Organization and talentmanagement

10%See
10% description
on pages
10% 157 to 162

TOTAL NON-FINANCIAL
CRITERIA

30%

Achieved

Payment

Payment

TargetPayment

as a % of the target

126,000

as a % of the index

20%

as a % of the target(1)

as a % of the index

0 % 100% 100% 125% 150% 80%

as a % of the target75%

as a % of the index

5,959

as a % of the target

35%(in € millions)

Corresponding amount in €Sustainability
Compliance

Rate of payment

TOTAL FINANCIAL CRITERIA
Non-financial criteria

Minimum achievement rate

Consolidated free cash flowfrom operations

Targets and objectives

Indicator
Financial criteria
Consolidated recurring
operating income

Maximum achievement rate

Thresholds

Target weighting

3

TOTAL VARIABLE
REMUNERATION AWARDED

612,000

Variable remuneration achieved(in €)

612,000

Variable remuneration achieved(as % of fixed remuneration)

51%

Target variable remuneration(in €)

1,800,000

Target variable remuneration(as % of fixed remuneration)

150%(1) Recurring operating income achieved: €4,746 millions.
(2) Free cash flow from operations achieved: €1,983 million.

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Corporate governance
Remuneration of corporate officers

Achievement rate of targets in 2023 – Jean-François Palus, Group Managing Director
until October 3, 2023

126,000

35%
70%

4,175

75%

—% 100% 100% 125% 150%

47%
64%

(2)

0%
10%

0%
126,000

10%
10%

See
description
on pages
157 to 162

100% 100% 100% 100%
100% 100% 100% 100%

70%
100%

70%
100%

126,000
180,000

100% 100% 100% 100%

100%

100%

180,000

90%

90%

486,000

10%

Achieved

Payment

Payment

Target30%

as a % of the target

20%

as a % of the index(1)

as a % of the target80%

as a % of the index—% 100% 100% 125% 150%

as a % of the target75%

as a % of the index

5,959

as a % of the target

35%(in € millions)

Corresponding amount in €TOTAL NON-FINANCIAL
CRITERIA

Rate of payment

Compliance
Organization and talentmanagement

Payment

Sustainability

Minimum achievement rate

TOTAL FINANCIAL CRITERIA
Non-financial criteria

Targets and objectives

Consolidated free cash flowfrom operations

Target weighting

Indicator
Financial criteria
Consolidated recurring
operating income

Maximum achievement rate

Thresholds

TOTAL VARIABLE
REMUNERATION
Variable remunerationachieved (in €)612,000

Variable remunerationachieved (as % of fixed
remuneration)

51%

612,000

Target variable remuneration(in €)

1,800,000

Target variable remuneration(as % of fixed remuneration)

150%

TOTAL VARIABLE
REMUNERATIONAWARDED(3)459,000(1) Recurring operating income achieved: €4,746 million.
(2) Free cash flow from operations achieved: €1,983 million.
(3) The variable annual remuneration awarded to Jean-François Palus, Group Managing Director until October 3, 2023, in respect of year 2023,
has been established prorata temporis.

Achievement of non-financial targets in 2023
For each target, the Remuneration Committee drew up a list of criteria to help determine the achievement rate of the non-financial
targets, in order to align the remuneration of executive corporate officers with the Group's long-term strategy.
On this basis, the Board of Directors then assessed the achievement rate of each of the targets.

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Remuneration of corporate officers

Non-financial
criteria used to
calculate annual
variable
remuneration
Sustainability
Objective:
sustainability and,more particularly,
a reductionin Kering's
environmental
impact, in line withthe strategy for 2025

— 158

2023 targets
Review of achievements• Establish in 2023 a• In 2023, Kering committed to reducing its greenhousequantified medium-term
gas emissions across its supply chain by 40% in absolutecommitment to reduce interms by 2035 compared with 2021. This target covers
absolute terms the carbon
scopes 1, 2 and 3 of the GHG Protocol.
footprint of the Group's• To factor this target into their operations, each House
supply chain (Scope 3
has drawn up a roadmap and a detailed plan of actionof the GHG Protocol)
for 2024, 2025 and 2026.
• Raise a total of€180 million in funding
for the Climate Fund For
Nature by year-end 2023

• At the end of 2023, the Climate Fund for Nature had
attracted €195 million of investment.

• Achieve a high levelof employee engagementon sustainability issues
and train at least 90%
of Kering's head office
employees at the Kering
Sustainability Academy• Less than 90% of Kering's head office employees
completed the voluntary "Sustainability basics" moduleof the Kering Sustainability Academy. However, it has
been taken up by a large number of Corporate andHouse employees.
• In addition, a number of training and awareness-raising
initiatives on sustainable development issues were
deployed in the Group, at the instigation of the
Chairman and Chief Executive Officer and the GroupManaging Director:– Environment and Climate module of the Ethics& Compliance e-training in 2023;– "Climate Fresk" and "2tonnes" workshops, notably as
part of Earth & Climate Week, to raise awareness of thechallenges of climate change and understand thecollective and individual levers of ecological transition;– "Eat your greens" lunches combining theoreticalpresentations and practical workshops.

KERING - 2023 Universal Registration Document% ofachievement
70%Corporate governance
Remuneration of corporate officers

Non-financial
criteria used to
calculate annual
variable
remuneration
Compliance2023 targets
Review of achievements• Strengthen the• The following initiatives have been implemented,
implementation ofoverseen by the Chairman and Chief Executive Officer
the Group complianceand Group Managing Director, and in accordance with
program within thethe framework they defined:
recently acquired eyewear– a complete compliance review of Kering Eyewear;
companies Lindberg and– a review of operations and compliance practices at
Maui Jim, and ensure theirLindberg and Maui Jim, an assessment of how
integration into the Group
integrated they are within Kering Eyewear and a gap
corruption risk map
analysis to identify action that needs to be taken;– an update of Kering Eyewear's risk map, taking into
account risks and controls at Lindberg and Maui Jim;
– definition of an action plan to optimize compliancemeasures.
• The Chairman and Chief Executive Officer and GroupManaging Director regularly monitored these various
initiatives and held discussions with Kering Eyewear's
President and Chief Executive Officer throughout theprocess.
• As part of an initiative adopted by the Chairman andChief Executive Officer and Group Managing Director, aplan of action was given to Kering Eyewear, Lindberg
and Maui Jim to make existing controls more effective
and make them more aligned with the Group's
compliance program.
• The role of Brand Compliance Officer was created atboth Lindberg and Maui Jim.
• The Chairman and Chief Executive Officer and GroupManaging Director encouraged the adoption of training
programs for management and staff at Lindberg andMaui Jim.
• Push ahead with efforts
to embed the complianceculture within the Groupby issuing messages
and reminders aboutcompliance issues (i)during strategy meetings,
and (ii) for all employees
worldwide% ofachievement100%• The Chairman and Chief Executive Officer and GroupManaging Director discussed compliance in meetings to
discuss strategy (e.g., meetings of the Executive
Committee, Luxury Committee etc.) and in internal
strategy meetings, stressing the importance ofcompliance and the Group's culture of integrity, thecrucial role played by Luxury companies in terms of
ethics and social responsibility, and focusing on themes
such as respect for human rights.
• The Chairman and Chief Executive Officer and GroupManaging Director sought to raise awareness among all
Group employees about certain more specificcompliance matters. The Chairman and Chief Executive
Officer communicated with all employees through
Kering's
Workplace
intranet,reiterating
thecommitments that each Group employee must fulfill interms of ethics and integrity, along with the essential
rules, available resources and key tools enabling them todo so. He also reasserted Kering's ambitions as regards
respecting human rights and protecting theenvironment, along with its various initiatives in theseareas. As regards the most specific aspect of existing
compliance programs, the Group Managing Director
underlined the need to conduct business with integrity
and in an ethical and transparent way. He also reminded
Kering's staff about compliance requirements, including
as regards combating corruption, and reasserted theimportance of undertaking the Ethics & Compliancetraining.

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Remuneration of corporate officers

Non-financial
criteria used to
calculate annual
variable
remuneration— 160

2023 targets
Review of achievements• Increase awareness• At the initiative of the Chairman and Chief Executiveof human rights by adding
Officer and Group Managing Director, the Ethics &a section about this issue
Compliance e-training program was strengthened toto the Ethics & Complianceaddress the day-to-day issues faced by Kering
e-training program
employees more effectively. A module dealing withand ensure at least 90%
respecting human rights in the Group's operations andof the Group's employees
in its supply chain was added to this training program, incomplete this module
order to raise the awareness of all staff members about
this topic. In their communication with employees, theChairman and Chief Executive Officer and GroupManaging Director reminded them that thosecommitments must also be met by Kering's stakeholders
and suppliers. In addition, the other aspects of the etraining program were adjusted to allow all employees
to select the environment (production, retail or
corporate) and issues that correspond with their roles, inorder to raise their awareness of these topics evenfurther.
• Employees were reminded of the importance of the new
Ethics & Compliance e-training program on "Workplace"
via videos and messages intended for all Group staff
members.
• On November 13, 2023, the Chairman and Chief
Executive Officer launched Kering's annual Ethics &Compliance training campaign with a video in which headdressed all Group employees, reiterating the Group's
ambitions in this area, the need to comply with the Codeof Ethics and to participate in the e-training program sothat all Group staff members increase their knowledge
and understanding of the issues involved. He also
encouraged employees to publicize their training
completion certificate, having done so with his own
certificate.
• Members of the Executive Committee and the Presidents
and Chief Executive Officers of the Houses also
communicated on these topics.
• In 2023, 98% of Group staff members took the Ethics &Compliance e-training course. The Chairman and Chief
Executive Officer also announced this participation rateinternally on Workplace, thanking and congratulating
Kering's teams for their commitment in this area.

KERING - 2023 Universal Registration Document% ofachievement

Corporate governance
Remuneration of corporate officers

Non-financial
criteria used to
calculate annual
variable
remuneration
Organization andtalent management

2023 targets• Increase the numberof women on the Group's
Executive Committeeby 25% in 2023

Review of achievements• In 2023, the number of women on the Executive
Committee increased by 25% compared to 2022. As aresult, as of December 31, 2023, the Executive
Committee comprised 12 members, 42% oh whom were
women, two in operational roles while the other three instrategic
functionalroles(Sustainability
andInstitutional Affairs, Human Resources, Communications
and Image).

% ofachievement100%• Arrange training in• Under an initiative adopted by the Chairman and Chief
inclusive leadership during
Executive Officer, 140 members of the central
2023 for 100% of the
management
committees(Houses'
Executive
central management
Committees and Heads of certain functional
committees
departments – out of the 143 people invited) took part inone of the seven inclusive leadership seminars called
Kering Perspectives, aimed at raising managers'
awareness of human bias and its impact.
• Increase by 10% in 2023
• To speed up skills development and support the Group's
the number of Grouplearning culture, a worldwide day dedicated to training
employees who attend
was launched in 2023: Global Learning Day. This firsttraining to learn new skills
Global Learning Day took place at all of the Group's
Houses, and won the Culture and Marketing training
award from Learn Assembly. It involved master classes(attended by 4,000 people), local in-person events heldby the Houses (attended by 750 people) and online
conferences (attended by 4,500 people). Assuming thatthe same person participated in 2 or 3 of these formats,the initiative brought together the expected
4,700 people (10% of Kering's workforce).
• Introduce certification in
2023 for the wage parity
monitoring process within
the Group• In 2023, the Group decided to go further in its analysis ofgender pay gaps by initiating an ad hoc study with a
specialist independent consulting firm. This initiativewas conducted worldwide as well as at the level of eachof the Houses and each region, with the aim ofidentifying any gender pay gaps that cannot be
explained by factors that may have a legitimate
influence on pay levels, such as level of experience, levelof responsibility, professional area or job location. The
study concluded that the unexplained gender pay gap
was 1.6%, and enabled the Group to identify priority
actions to be taken to achieve its target in terms of equalpay.
• On the basis of this initial analysis and the proposed
action plan, the Fair Pay Innovation Lab – anindependent body promoting wage equality – awarded
its Universal Fair Pay Check certification to Kering andeach of its Houses.

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Remuneration of corporate officers

Non-financial
criteria used to
calculate annual
variable
remuneration

2023 targets
Review of achievements• Guarantee the• A comprehensive review of all existing processes andintroduction during 2023
procedures across the Group took place. A new internalof a process to protect thecontrol framework was defined to limit risks related toHouses' intangible assets
communications and marketing activities. The
and reputation by:framework includes a new policy for these activities,
along with guidelines about how to deal with sensitive– establishing internal
subjects.
control mechanisms forthe various marketing• The Group provided the Houses with reference materials
events(1);to help them validate processes, which they adapted totheir own organizational structures. The processes– promoting a culture thatformally adopted by the Houses are currently being
nurtures bothaudited by the Internal Audit Department.
independent judgment
and collective discussion. • The function of Brand Trust was created. The Brand
Trust Officer reports directly to the Deputy CEO in chargeof Brand Development, and is tasked with formulating
recommendations regarding the Houses' marketing
activities and with guiding them in their assessment ofrisks.
• The topic of protecting Kering's intangible assets andthe post-mortem of the Balenciaga controversy,
resulting in a new internal process, were presented indetail in the March 2023 Board meeting by GroupManaging Director Jean-François Palus. Within Kering,
management is committed to promoting a culture that
nurtures both independent judgment and collective
discussion. This is reflected by the importance placed on
annual, mandatory training in the fields of ethics andcompliance ("Our culture of integrity"), which wasundertaken by 98% of the Group's employees in 2023.

Subtotal% ofachievement

90%(1) Advertising campaigns, fashion shows, public events, partnerships with celebrities and artists.

History of annual variable remuneration payments
François-Henri Pinault – Chairman and Chief Executive Officer(in €)

2019 (for 2018)
1,944,000

2020 (for 2019)
947,0882021 (for 2020)
02022 (for 2021)
1,844,2082023 (for 2022)
943,200

2022 (for 2021)
1,536,840

2023 (for 2022)
943,200

Jean-François Palus – Group Managing Director until October 3, 2023
(in €)

2019 (for 2018)(1)
1,667,426

2020 (for 2019)
816,6992021 (for 2020)
0(1) Data restated to reflect the exchange rate as of December 31, 2023 (0.86905) in order to provide information at comparable exchange rates.

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Remuneration of corporate officers

Details relating to long-term variable remuneration for 2023
Since 2020, the executive corporate officers' long-term variable
remuneration has consisted of free grants of shares subject toperformance conditions, which have replaced the Kering
Monetary Units (KMUs).
For the Chairman and Chief Executive Officer, the award value of
his target long-term annual variable remuneration is equal to150% of the sum of his fixed remuneration and annual variable
remuneration due with respect to year Y-1.
Acting pursuant to the authorization granted through the 16th
resolution of the Annual General Meeting of April 28, 2022, theBoard of Directors decided at its meeting of October 3, 2023 toaward 7,004 performance shares to the Chairman and Chief
Executive Officer, subject to a three-year vesting period.

Performance shares were awarded to Jean-François Palus withrespect to his role as President and CEO of Gucci as part of the2023 share plan for certain Group employees. No performance
shares were awarded to him with respect to or during his role asGroup Managing Director in 2023.
In addition, in accordance with the terms of the plans concerned
as determined by the Board of Directors, and since Jean-François
Palus' resignation from his role as Group Managing Director waspart of his appointment as a corporate officer of a Group
company (President and CEO of Gucci), Jean-François Palus
retains the benefit of the performance shares awarded to him
with respect to 2020, 2021 and 2022, and all applicable
performance conditions under the remuneration policy forexecutive corporate officers for 2020, 2021 and 2022 remain inforce.

Performance shares awarded to executive corporate officers during the year
(Table 6 pursuant to the recommendations of the AFEP-MEDEF Code)François-Henri Pinault
Chairman and Chief
Executive Officer
Jean-François Palus
Group Managing Director
until October 3, 2023

Plan number
and date

Numberof shares
awardedduringthe year2023 Planof October 3, 2023

7,004

N/A(2)

N/A(2)

Value of sharesbased on themethod used in
the consolidated
financialstatements (1)Vesting date

Availability Performancedateconditions€2,825,274 October 3, 2026 October 4, 2026
N/A(2)

N/A(2)

N/A(2)100%
N/A(2)(1) The unit value of the performance shares awarded is assessed by an independent expert applying the Black & Scholes and Monte Carlo
methods. It amounts to €403.38.
(2) No performance shares were awarded to Jean-François Palus with respect to or during his role as Group Managing Director in 2023.
Performance shares were awarded to him with respect to his role as President and CEO of Gucci as part of the 2023 plan for certain Group
employees.

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The performance shares awarded in 2023 to the Chairman and Chief Executive Officer are, in accordance with the remuneration policy
approved in the April 27, 2023 AGM, subject to the following performance conditions:
Criteria
Consolidated
recurring
operating income

Consolidated free
cash flow fromoperations

Relativeweighting40%

Performance assessment method
Increase observed between the average amount over the three-year vesting period (2023,
2024 and 2025) and the amount observed for the year preceding the year of the grant (2022)• No increase: 0 shares• Increase of less than 5%: 50% of the shares relating to the criterion• Increase of 5% or more: 100% of the shares relating to the criterion

40%

Increase observed between the average amount over the three-year vesting period (2023,
2024 and 2025) and the amount observed for the year preceding the year of the grant (2022)• No increase: 0 shares• Increase of less than 5%: 50% of the shares relating to the criterion• Increase of 5% or more: 100% of the shares relating to the criterion

Proportion
10%of womenin executive
management roles

Increase the proportion of women in Top 500 roles to 50% by the end of the vesting period• Proportion less than 42%: 0 shares• Proportion at least 42% but less than 48%: 50% of the shares relating to the criterion• Proportion at least 48% but less than 50%: 80% of the shares relating to the criterion• Proportion at least 50%: 100% of the shares relating to the criterion

Biodiversity

10%

Switchover to regenerative agriculture practices by 2025 on 1,000,000 hectares of land linked
to Kering's supply chain and protection of 1,000,000 hectares in key areas that are not part ofthe supply chain• No targets met: 0 shares• One target met: 50% of the shares relating to the criterion• Both targets met: 100% of the shares relating to the criterion

Subtotal shares vested

0% to 100%

Kering shareperformance+/- 50% impact
See comment below

TOTAL shares
vested0% to 150% of shares awarded

Provided that the above-described performance conditions andthe service condition have been met, the number of vested
performance shares will be adjusted upward or downward by amaximum proportion of 50%, depending on the performance ofthe Kering share price (difference in price between the period
before the initial award and the period before the final vesting)relative to the performance of a reference panel (followed in thesame way) over the same period. The reference panel comprises
the shares of the following eight listed companies: Burberry,
Ferragamo, Hermès, LVMH, Moncler, Prada, Richemont andSwatch.
It follows that the number of vested shares based on financial
performance may be reduced by half if the Kering share

underperforms the reference index by more than 50%.
Conversely, if the Kering share outperforms, the number ofvested shares based on financial performance may be increased
in proportion to this outperformance by up to 50%.
As a result, the number of shares vesting at the end of the vesting
period may vary from 0% to 150% of the number of sharesawarded under the plan based on the assessment of financial
performance, non-financial performance and share priceperformance.
The performance shares awarded to the Chairman and Chief
Executive Officer in 2023 represent 0.006% of the Company's
share capital on the date of the award.

Performance shares vested during the year for each executive corporate officer(Table 7 pursuant to the recommendations of the AFEP-MEDEF Code)
Executive corporate officers
François-Henri Pinault
Chairman and Chief Executive Officer
Jean-François Palus
Group Managing Director until October 3, 2023

Plan number and date

Number of shares vested
during the year

Plan of October 1, 2020

940

Plan of October 1, 2020

706 (1)(1) In accordance with the terms of the plans concerned as determined by the Board of Directors, and since Jean-François Palus' resignation fromhis role as Group Managing Director on October 3, 2023 was part of his appointment as a corporate officer of a Group company (President andCEO of Gucci), Jean-François Palus retains the benefit of the performance shares awarded to him with respect to 2020, 2021 and 2022, and allapplicable performance conditions under the remuneration policy for executive corporate officers for 2020, 2021 and 2022 remain in force.

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Corporate governance
Remuneration of corporate officers

Achievement of performance conditions applicable to performance shares awarded to executive
corporate officers in 2020 and vested during the year
Indicator
Consolidated recurring operating income
Consolidated free cash flowfrom operations
Consolidated recurring operating margin
Achievement

Amount recognized in the 2019consolidated financial statements€4,778 million

Average level in 2020, 2021 and 2022
compared to 2019(1)-€198 million€1,521 million
30.1%+€1,566 million-3.5 pts
50% due to the increase in one of the three
performance indicators (free cash flow fromoperations)Comparative change in Kering's
share price(2)Kering's share-price performance relative
to that of a reference panel(3)Difference of 81.3 points, leading to an
adjustment ratio of 18.7% (applying themechanism for adjusting awards up or
down by a maximum of 50%)
25%

Total achievement rate(1) Increase in the average amount reported for the three years of the vesting period (2020, 2021 and 2022) relative to the amount reported in
Kering's consolidated financial statements for 2019.
(2) The number of shares vested depending on the achievement of performance conditions based on the Group's consolidated recurring
operating income, free cash flow from operations and recurring operating margin is then adjusted according to Kering's share-priceperformance between the period before the initial award and the period before the final vesting date of the performance shares, relative tothat of a reference panel over the same period.
(3) The reference panel comprises the following eight listed companies in the Luxury sector: Burberry, Ferragamo, Hermès, LVMH, Moncler, Prada,
Richemont and Swatch.

Past awards of performance shares(Table 9 pursuant to the recommendations of the AFEP-MEDEF Code)
Date of Annual General Meeting
Date of Board meeting
Total number of shares granted, o/w to:
François-Henri Pinault, Chairman and CEO
Jean-François Palus, Group Managing Director
until October 3, 2023
o/w to the top ten employee beneficiaries(not corporate officers)
Vesting date of the shares
End date of the lock-in period
Performance conditions
Number of shares vested as of February 28, 2024
Aggregate number of shares canceled or forfeited
Performance shares remaining at the endof the reporting period2020 Plan
June 16, 2020
October 1, 20202021 Plan
June 16, 2020
October 1, 2021

2022 Plan
April 28, 2022
October 4, 2022

2023 Plan
April 28, 2022
October 3, 2023

46,596
3,760

42,752
4,018

74,274
9,281

73,222
7,004

2,825

2,922

5,563

N/A (1)

13,415October 1, 2023
N/A (2)100%
16,92829,668

11,402October 1, 2024
N/A (2)
100%
N/A
12,30018,686
October 4, 2025
N/A (2)
100%
N/A
18,22020,486
October 3, 2026
N/A (2)
100%
N/A
1,395

0

30,452

56,054

71,827(1) No performance shares were awarded to Jean-François Palus in 2023 with respect to or during his role as Group Managing Director.
Performance shares were awarded to him with respect to his role as President and CEO of Gucci as part of the 2023 plan for certain Group
employees.
(2) Performance shares are subject to a three-year vesting period, with no lock-in period. In compliance with the provisions of article L. 225-197-1of the French Commercial Code, the Chairman and Chief Executive Officer must hold a number of the performance shares awarded in this way
throughout his term of office, in registered form, corresponding to the amount set by the Board of Directors on February 11, 2020, which is two
years of his annual fixed and variable remuneration at the date of delivery of the shares.

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Remuneration of corporate officers

Performance conditions applicable to the 2020, 2021, 2022 and 2023 performance shares plans
2020 Plan
The performance conditions applicable to executive corporate officers under the 2020 plan were based on the following three
indicators: consolidated recurring operating income, consolidated free cash flow from operations and consolidated recurring
operating margin), and on the following methods assessment:• if all three performance criteria increase over the vesting period, 100% of the performance shares will vest;• if two out of three performance criteria increase over the vesting period, 75% of the performance shares will vest;• if only one out of the three performance criteria increases over the vesting period, 50% of the performance shares will vest; and• if none of the performance criteria increase over the vesting period, none of the performance shares will vest.
Subject to the achievement of the performance conditions described above and the service condition, the number of vested
performance shares will be adjusted upward or downward depending on the performance of the Kering share price between the initialaward date and the day preceding the vesting date, relative to the performance of a reference index over the same period. The
reference panel comprises the shares of the following listed companies: Burberry, Ferragamo, Hermès, LVMH, Moncler, Prada,
Richemont and Swatch.
The level of achievement of the performance conditions applicable to performance shares granted in 2020 to executive corporate
officers and vested in 2023 is detailed on page 165 above.

2021 Plan
The performance conditions applicable to executive corporate officers under the 2021 plan are based on four indicators and thefollowing methods of assessment:
Criteria
Consolidated
recurring
operating income

Consolidated free
cash flow fromoperations

Relativeweighting40%

40%

Performance assessment method
Increase observed between the average amount over the three-year vesting period
and the amount observed for the year preceding the year of the grant• No increase: 0 shares• Increase of less than 5%: 50% of the shares relating to the criterion• Increase of at least 5%: 100% of the shares relating to the criterion
Increase observed between the average amount over the three-year vesting period
and the amount shown for the year preceding the year of the grant• No increase: 0 shares• Increase of less than 5%: 50% of the shares relating to the criterion• Increase of at least 5%: 100% of the shares relating to the criterion

Proportion
10%of womenin executive
management roles

Increase the proportion of women in Top 450 roles to 45% by 2023
• Proportion less than 40%: 0 shares• Proportion between 40% and 45%: 50% of the shares relating to the criterion• Proportion at least 45%: 100% of the shares relating to the criterion

Biodiversity

Switchover to regenerative agriculture practices by 2023 on 200,000 hectares of land linked
to Kering's supply chain and protection of 500,000 hectares in key areas that are not partof the supply chain• No targets met: 0 shares• One target met: 50% of the shares relating to the criterion• Both targets met: 100% of the shares relating to the criterion

Subtotal shares vested

10%0% to 100%

Kering shareperformance+/- 50% impact
Please see comment below

TOTAL shares
vested0% to 150% of shares awarded

Provided that the above-described performance conditions and the service condition have been met, the number of vested
performance shares will be adjusted upward or downward by a maximum proportion of 50%, depending on the performance of theKering share price (difference in price between the period before the initial award and the period before the final vesting) relative tothe performance of a reference panel (followed in the same way) over the same period. The reference panel comprises the shares ofthe following eight listed companies: Burberry, Ferragamo, Hermès, LVMH, Moncler, Prada, Richemont and Swatch.

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Corporate governance
Remuneration of corporate officers

2022 Plan
The performance conditions applicable to executive corporate officers under the 2022 plan are based on four indicators and thefollowing methods of assessment:
Criteria
Consolidated
recurring
operating income

Consolidated free
cash flow fromoperations

Relativeweighting40%

40%

Performance assessment method
Increase observed between the average amount over the three-year vesting period
and the amount observed for the year preceding the year of the grant• No increase: 0 shares• Increase of less than 5%: 50% of the shares relating to the criterion• Increase of at least 5%: 100% of the shares relating to the criterion
Increase observed between the average amount over the three-year vesting period
and the amount shown for the year preceding the year of the grant• No increase: 0 shares• Increase of less than 5%: 50% of the shares relating to the criterion• Increase of at least 5%: 100% of the shares relating to the criterion

Proportion
10%of womenin executive
management roles

Lift the proportion of women in Top 450 roles to 48% by 2024
• Proportion less than 40%: 0 shares• Proportion between 40% and 48%: 50% of the shares relating to the criterion• Proportion ≥ 48%: 100% of the shares relating to the criterion

Biodiversity

10%

Switchover to regenerative agriculture practices by 2024 on 400,000 hectares of land linked
to Kering's supply chain and protection of 500,000 hectares in key areas that are not part ofthe supply chain• No targets met: 0 shares• One target met: 50% of the shares relating to the criterion• Both targets met: 100% of the shares relating to the criterion

Subtotal shares vested

0% to 100%

Kering shareperformance+/- 50% impact
Please see comment below

TOTAL shares
vested0% to 150% of shares awarded

Provided that the above-described performance conditions and the service condition have been met, the number of vested
performance shares will be adjusted upward or downward by a maximum proportion of 50%, depending on the performance of theKering share price (difference in price between the period before the initial award and the period before the final vesting) relative tothe performance of a reference panel (followed in the same way) over the same period. The reference panel comprises the shares ofthe following eight listed companies: Burberry, Ferragamo, Hermès, LVMH, Moncler, Prada, Richemont and Swatch.

2023 Plan
The performance conditions applicable to executive corporate officers under the 2023 plan are described in Table 6 on page 164 above.

Past awards of Kering Monetary Units (KMU)
The previous long-term remuneration system (which applied
from 2013 to 2019) was based on Kering Monetary Units (KMUs),
which have now been replaced with free grants of performance
shares.
The value of these KMUs was indexed equally to both absolutechanges in the Kering share price and to changes in the Kering
share price relative to a panel of seven luxury stocks (Burberry,
Ferragamo, LVMH, Prada, Richemont, Swatch and Tod's).
These KMUs had a vesting period of three years as from January 1of the year in which they are granted, after which they could becashed in by the beneficiaries over a two-year period (during two
windows each year). At that point, the beneficiaries could receive
the cash equivalent of their KMUs based on the last assessedvalue. A table summarizing the KMUs granted to each executive
corporate officer that are still vesting or are available to be
cashed in, is shown below.

To align the multi-annual variable remuneration system with
the Group's long-term performance, vesting of the KMUsawarded to the Chairman and Chief Executive Officer and theGroup Managing Director was subject to the fulfillment of
performance criteria based on three financial indicators
assessed at Group level:• recurring operating income;• free cash flow from operations;• recurring operating margin.
Under this system put in place in 2017, if an increase wasobserved in at least one of these three indicators between the
average amount over the three-year vesting period and theamount shown in Kering's consolidated financial statements forthe year preceding the year of the grant, 100% of the KMUsgranted were cashed in (the change in each indicator is measured
at constant scope and as reported). Failing this, the KMUs were
definitively forfeited.

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Starting in 2019, in line with the remuneration policy approvedby shareholders at the Annual General Meeting of April 24, 2019,the following system applied:• three criteria met: 100% of the KMUs vest;• two of three criteria met: 75% of the KMUs vest;• one of three criteria met: 50% of the KMUs vest;• no criteria met: no KMUs may be cashed in.
Note that the KMUs awarded in 2019 to the executive corporate
officers represented the final award of KMUs before they were
replaced by free performance share grants starting in 2020.
In accordance with the recommendations of the AFEP-MEDEF
Code and of the Remuneration Committee, the Board of Directors
decided on March 10, 2017 to remove the lock-in obligation on
Kering shares obtained by cashing in KMUs, because these
instruments provided exclusively for a cash settlement.

Method applied to value KMUs
Changes in the KMU value were assessed on a six-monthly basis(as of June 30 and December 31 each year), based on the Kering
share price during the last 30 trading days. This value was thenweighted for the performance of the Kering share relative to thebasket of benchmark stocks.
At the end of each six-month period, the value of a KMU was
calculated as follows:
UVs+1 = UVs x ([1+VKs+1] + ([1+VKs+1] x [1+VKs+1] /[1+VPVs+1])) / 2— 168

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Where:UV = Unit of Value.
s+1 = the six-monthly closing date at which the unit of value isassessed (06/30 or 12/31).
s = the previous six-monthly closing.
VK = the change in the Kering share price over the six-month
period, using the average share price over the 30 days preceding
the six-monthly closing as the reference price.
VPV = the change in the price of a panel of stocks over the sixmonth period, equal to the arithmetic average change in thesestocks, using the average share price over the 30 days preceding
the six-monthly closing as the reference price.
The following companies were used to compile the benchmark:Burberry, Ferragamo, LVMH, Prada, Richemont, Swatch andTod's.
Between 2018 and 2022, the value of the KMUs fluctuated asfollows:
June 30, 2018
December 31, 2018
June 30, 2019

Date

KMU Value
€885
€753
€988

December 31, 2019
June 30, 2020

€1,168€1,095

December 31, 2020
June 30, 2021

€1,219€1,525

December 31, 2021
June 30, 2022

€1,387€954

December 31, 2022

€910

Corporate governance
Remuneration of corporate officers

Table summarizing KMUs cashed in and paid or yet to be paid in 2023
François-Henri Pinault – Chairman and Chief Executive Officer
Awards
KMUs granted(1)

2018

2019

5,411

4,175

Unit value at grant581 (3)753 (4)

Grant value

3,143,791

3,143,775

Vesting date(5)Target/Threshold(6)January 2021

January 2022

Achievement

Increase in two criteria: ROI (+45%) and ROM(+3.3 points). FCF decreased by 7%.

Increase in one of the three criteria: ROI (+7.9%). FCF
decreased by 8.5% and ROM by 1.5 points.

Threshold

Met.
Entitlements 100% vested.

One criterion met (ROI).
Entitlements 50% vested.

Exercise value€7,505,057 (see comment below)€1,991,952 (see comment below)(2)(in €)(in €)

Increase in one of the following three criteria: ROI, FCF Increase in the following three criteria: ROI, FCF
or ROM(7)or ROM(7)(1) The value of the KMUs awarded was equal to 100% of the total annual cash-based remuneration paid to the Chairman and Chief Executive
Officer.
(2) The value of the KMUs is indexed equally to both absolute changes in Kering's share price and to changes in the Kering share price relative to apanel of seven luxury stocks.
(3) Unit value as of December 31, 2017.
(4) Unit value as of December 31, 2018.
(5) The KMU vesting period is three years as from January 1 of the year in which they are granted.
(6) For 2018, 100% of the KMUs could vest if the average amount over the three-year vesting period was higher than the amount shown in Kering's
consolidated financial statements for the year preceding the year of the grant for one of the three indicators. If one of the three indicators did
not increase over the period in question, the KMU entitlement was lost for good.
For 2019, these performance criteria became progressive and cumulative, applying as follows: increase in all three criteria: 100% of the KMUs
vest, increase in two of the three criteria: 75% of the KMUs vest; increase in one of the three criteria: 50% of the KMUs vest; no increase in anyof the criteria: entitlement lost.
(7) ROI: recurring operating income; FCF: free cash flow from operations; ROM: recurring operating margin.

5,411 KMUs were awarded in 2018 to the Chairman and Chief
Executive Officer with respect to multi-annual variable
remuneration under the 2018 plan, at €581 per KMU,
corresponding to a value of €3,143,791 at the date of the award.
These 5,411 KMUs were exercised by the Chairman and Chief
Executive Officer in April 2022 based on a value of €1,387 per KMU
as of December 31, 2021, corresponding to an amount of€7,505,057. Following the decision by the Board of Directors on
March 2, 2023, payment of this amount was deferred in full. A firstpayment of €705,057 was made in November 2023. On
February 28, 2024, the Board of Directors, on therecommendation of the Remuneration Committee, decided thatthe remainder would be paid in stages.

4,175 KMUs were awarded in 2019 to the Chairman and Chief
Executive Officer with respect to multi-annual variable
remuneration under the 2019 plan, at €753 per KMU,
corresponding to a value of €3,143,775 at the date of the award.
Just one of the three performance criteria was met (relating torecurring operating income), leading to the cashing-in of 50% or
2,088 KMUs. Those 2,088 KMUs were exercised in October 2022
based on a value of €954 per unit at June 30, 2022, corresponding
to an amount of €1,991,952. Following the decision made by the
Board of Directors of March 2, 2023 to defer payment, the sum
was paid out in full in May 2023.

Jean-François Palus – Group Managing Director until October 3, 2023
The former Group Managing Director had no KMUs that were yet to vest or available for cashing-in in 2023.
The cashing-in of KMUs awarded under the 2019 plan was completed in April 2022 based on a value of €1,387 per KMU at December 31,
2021, corresponding to an amount of €2,113,788, which was paid out in full in May 2022, as shown in Table 2 on page 155 above.

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Corporate governance
Remuneration of corporate officers

Summary of multi-annual variable remuneration granted to each executive corporate officer(Table 10 pursuant to the recommendations of the AFEP-MEDEF Code)Given the change in the structure of long-term variable remuneration made in 2020, information about the KMUs is provided in thesummary of KMUs granted to each executive corporate officer that have become available presented above. Information about
performance share grants is presented in Table 9 below.

Stock options awarded during the year to each executive corporate officer by Keringor any Group company(Table no. 4 pursuant to the recommendations of the AFEP-MEDEF Code)Typeof option
Plan number (purchase or
and date subscription)

Value ofoptions basedon the method
used in the
consolidated
financialstatements

Numberof options
awardedduring theyear

Exercise
price

ExerciseperiodFrançois-Henri Pinault
Chairman and Chief Executive
Officer

N/A

N/A

N/A

N/A

N/A

N/A

Jean-François Palus
Group Managing Director
until October 3, 2023

N/A

N/A

N/A

N/A

N/A

N/A

Stock options exercised during the year by each executive corporate officer(Table 5 pursuant to the recommendations of the AFEP-MEDEF Code)Plan number and date

Number of options
exercised during the year

Exerciseprice

François-Henri Pinault
Chairman and Chief Executive Officer

N/A

N/A

N/A

Jean-François Palus
Group Managing Director
until October 3, 2023

N/A

N/A

N/A

Past awards of stock subscription or purchase options(Table no. 8 pursuant to the recommendations of the AFEP-MEDEF Code)Not applicable. No stock subscription or purchase options are outstanding for François-Henri Pinault or Jean-François Palus.

Exceptional remuneration
No exceptional remuneration was awarded or paid to the Chairman and Chief Executive Officer or Group Managing Director in 2023.

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Corporate governance
Remuneration of corporate officers

Summary of the benefits awarded to executive corporate officers(Table 11 pursuant to the recommendations of the AFEP-MEDEF Code)

Executive corporate officers
François-Henri Pinault
Chairman and Chief Executive Officer
Start of term of office: May 19, 2005
Expiry of term of office: 2025 AGM

Indemnities orbenefits owed or that
may be payable on
Indemnities relating
Employment Supplementarytermination or
to a non-competition
contract
pension planchange of duties
clause
Yes
No
Yes
No
Yes
No
Yes
No

Jean-François Palus
Group Managing Director
until October 3, 2023
Start of term of office: February 26, 2008
Expiry of term of office: October 3, 2023

X

X

X

X

X(1)

X

X

X

(1) Employment contract terminated on December 31, 2019.

Other information and commitments
The executive corporate officers have formally undertaken not touse hedges on their performance shares and no such hedges are
currently in place.

Pay ratios between the levelof remuneration of the Chairman and Chief
Executive Officer and the former GroupManaging Director and the averageand median remuneration of Company
employees
In accordance with article L. 22-10-9 of the French Commercial
Code, the following table presents the ratios between the level of
remuneration of the Chairman and Chief Executive Officer andthe former Group Managing Director and the average and median
remuneration of Company employees on a full-time equivalentbasis over the past five years.
These ratios were established in line with the AFEP guidelines on
remuneration multiples published on January 28, 2020 and
updated in February 2021.
For the executive corporate officers, the components ofremuneration taken into account are:• fixed remuneration in year Y;• annual variable remuneration paid in year Y for year Y-1;
• the value of the long-term remuneration granted during theyear;• remuneration paid in respect of duties as a Director (formerly
known as Directors' fees) paid in Y;• exceptional remuneration (where applicable) granted in Y;• benefits in kind.

In accordance with the AFEP guidelines, the 2023 remunerationof the Group Managing Director in office until October 3 2023 wasannualized.
For the employees (on a full-time equivalent basis), thecomponents of remuneration taken into account are:• fixed remuneration in Y;• annual variable remuneration paid in year Y for year Y-1;
• individual bonuses paid in Y;• profit-sharing and incentives paid in year Y;• the value of performance shares granted during the year attheir IFRS value;• the value of any other long-term incentives awarded;• benefits in kind.
The ratios are calculated on the basis of remuneration paid andawarded during the year.
To make them more representative, these fairness ratios havebeen calculated for two different scopes of analysis:• the legal scope covering Kering SA, the listed company, with
820 employees in 2023;• a broader scope of analysis including employees of Kering SA
as well as employees of all its subsidiaries located in France,over which Kering SA has exclusive control within themeaning of article L. 233-16 of the French Commercial Code,i.e., 5,085 employees in 2023, representing 100% of Kering's
workforce in France.
Data for the larger scope of analysis are available only from 2019,
when the joint payroll system that can provide such consolidated
figures was introduced.
In 2023, following the acquisition of UNT, Usinages & Nouvelles
Technologies, and the creation of Kering Beauté, the employeesof the concerned French-based subsidiaries have been includedin the data for the broader scope.
François-Henri Pinault held the position of Chairman and Chief
Executive Officer during the five-year period in question.
Jean-François Palus held the position of Group Managing
Director until October 3, 2023.

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Corporate governance
Remuneration of corporate officers

François-Henri Pinault
Chairman and CEO
Remuneration (in €)Kering SA scope of analysis
Average remuneration (in €)2019
6,354,479

2020
4,272,823

2021
3,813,206

2022
7,471,220

2023
5,128,002

118,587

117,010

97,196

107,506

103,692

Ratio versus average remuneration
Median remuneration (in €)53.6
71,90936.5
78,85939.2
72,861

69.5
74,463

49.5
74,836

Ratio versus median remuneration

88.4

54.2

52.3

100.3

68.5

Average remuneration (in €)59,527

66,96765,41874,261

73,521

Ratio versus average remuneration
Median remuneration (in €)106.7
40,08063.8
45,87658.3
46,607100.6
56,152

69.7
52,904

Ratio versus median remuneration

158.5

93.1

81.8

133.1

96.9

2019
5,394,958

2020
3,972,865

2021
3,253,547

2022
5,586,774

2023
2,433,885

118,587
45.5
71,90975.0

117,01034.0
78,85950.4

97,19633.5
72,861
44.7

107,506
52.0
74,46375.0

103,692
23.5
74,836
32.5

Average remuneration (in €)Ratio versus average remuneration
Median remuneration (in €)Ratio versus median remuneration

59,527
90.6
40,080134.6

66,96759.3
45,87686.6

65,41849.7
46,607
69.8

74,261
75.2
56,152
99.5

73,521
33.1
52,90446.0(in € millions)

2019
4,778

2020
3,135

2021
5,017

2022
5,589

2023
4,746

Expanded scope of analysis(Kering SA and all Houses – France)

Jean-François Palus
Group Managing Director
Remuneration (in €)Kering SA scope of analysis
Average remuneration (in €)Ratio versus average remuneration
Median remuneration (in €)Ratio versus median remuneration
Expanded scope of analysis(Kering SA and all Houses – France)

Recurring operating income

The following chart shows trends in pay ratios for the Chairman
and Chief Executive Officer and the former Group Managing
Director (ratio with employees' median salaries) based on the
Kering SA scope of analysis together with trends in the Group's
recurring operating income.

— 172

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The levels shown for each year indicate the change versus 2017,
which has been converted to a baseline figure of 100.

Corporate governance
Remuneration of corporate officers

Comparative trends in the fairness ratio for the Chairman and CEO and the former Group Managing
Director and Recurring Operating Income rebased 100 in 2017 (Kering SA scope of analysis)
250

217
190

200

151

170

162

150

129
134

100

161

113

106
88

100
95

69
64

50

67

95
41

56

0
2017

2018

2019

2020

2021

2022

2023

Ratio versus median remuneration - Chairman and Chief Executive
Officer
Ratio versus median remuneration - Former Group Managing
Director
Trend in recurring operating income

The significant increase in the ratios for 2018 reflects the
exceptional bonus awarded to the Chairman and Chief Executive
Officer and the former Group Managing Director in the form of
KMUs in recognition of the achievement of the final stage in thecreation of a fully integrated Luxury group.
The significant decline in the ratios for 2020 and 2021 is due
respectively to:• the decrease in the variable remuneration paid to the
Chairman and Chief Executive Officer and the former GroupManaging Director in respect of the 2019 results, based on thelevel of achievement of the criterion related to theconsolidated free cash flow from operations and decisions
made by the Board of Directors on April 20, 2020 in thecontext of the COVID-19 pandemic;• the absence of any annual variable remuneration being paidin 2021 to the Chairman and Chief Executive Officer and theformer Group Managing Director in respect of 2020 (because
it was waived in view of the COVID-19 pandemic).
The key factors behind the increase in the ratios seen in 2022
were:
• the payment of annual variable remuneration for 2021,
whereas no annual variable remuneration was paid in 2021
for 2020 (because it was waived in view of the COVID-19
pandemic);• changes to the target amounts for annual variable
remuneration and for long-term variable remuneration set for
the Chairman and Chief Executive Officer and the former
Group Managing Director.
The key factors behind the decrease in the ratios seen in 2023
were:
• the decrease in the annual variable remuneration paid in
2023 to the Chairman and Chief Executive Officer and theGroup Managing Director in office until October 3, 2023 withrespect to 2022, based on the level of achievement of theapplicable performance conditions;• the award of a lower amount of long-term variable
remuneration to the Chairman and Chief Executive Officer in2023;• the absence of any long-term variable remuneration awarded
to the Group Managing Director in office until October 3, 2023
with respect to or during his role as Group Managing Director.

Draft resolutions regarding the
remuneration paid during or awardedfor 2023 to executive corporate officers
in respect of their duties (ex-post vote)13th resolution: Approval of the fixed, variable andexceptional components of total remuneration andbenefits in kind paid during or awarded for the year
ended December 31, 2023 to François-Henri Pinault,
Chairman and Chief Executive Officer
Deliberating in accordance with the rules of quorum and majority
applicable to ordinary general meetings, in application of theprovisions of article L.22-10-34, II of the French Commercial Code,and having reviewed the Board of Directors' report on corporate
governance, the Annual General Meeting approves the fixed,variable and exceptional components of total remuneration andbenefits in kind paid or awarded to François-Henri Pinault,
Chairman and Chief Executive Officer, for the year ended
December 31, 2023. These components are presented in the 2023
Universal Registration Document in chapter 3, "Corporate
governance", section 5.3.1, "Remuneration paid during orawarded for 2023 to the Chairman and Chief Executive Officer
and to the Group Managing Director who was in post until
October 3, 2023 (executive corporate officers) in respect of theirduties".

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Corporate governance
Remuneration of corporate officers

14th resolution: Approval of the fixed, variable andexceptional components of total remuneration andbenefits in kind paid during or awarded for the year
ended December 31, 2023 to Jean-François Palus,Group Managing Director until October 3, 2023
Deliberating in accordance with the rules of quorum and majority
applicable to ordinary general meetings, in application of Articles
L. 22-10-34, II of the French Commercial Code, and having
reviewed the Board of Directors' report on corporate governance,
the Annual General Meeting approves the fixed, variable andexceptional components of total remuneration and benefits inkind paid or awarded to Jean-François Palus in respect of his roleas Group Managing Director, which ended on October 3, 2023, forthe year ended December 31, 2023. These components arepresented in the 2023 Universal Registration Document inchapter 3, "Corporate governance", section 5.3.1, "Remuneration
paid during or awarded for 2023 to the Chairman and Chief
Executive Officer and to the Group Managing Director who was inpost until October 3, 2023 (executive corporate officers) inrespect of their duties".

5.3.2 Remuneration paid during or awarded for 2023 to the membersof the Board of Directors in respect of their duties(Table 3 pursuant to the recommendations of the AFEP-MEDEF Code)2023
Member of the Boardof Directors
François-Henri Pinault

Jean-François Palus(1)Concetta Battaglia

Maureen Chiquet(2)Allocationof remuneration
Remuneration paid in respect of duties
as a Director

Amounts
awardedAmountspaid

Amounts
awardedAmounts
paid

95,284

93,931

93,931

91,527

Fixed portion
Variable portion
Remuneration paid in respect of duties
as a Director

26,431
68,85327,981
65,95027,981
65,95027,17264,355

68,113
17,62150,492

93,931
27,981
65,95093,931
27,981
65,95098,301
27,172
71,129113,274
35,24278,032102,066
32,64569,421102,066
32,64569,421

90,38522,64367,742

28,63910,27918,360200,000–––
100,000

–
–
–
–

–
–
–
–

–
–
–
–

72,9997,667
20,20945,12472,9997,667
20,20945,124

163,125
23,00045,287
94,839165,741–
23,00044,052
98,689140,783
3,900–
46,63590,248140,783
3,900–
46,63590,248

151,625
11,500–45,287
94,83999,50435,24264,26253,003
21,76331,24053,003
21,76331,240

–
–
–

–
–
–

–
–
–

–
–
–

34,216
10,50623,710

Fixed portion
Variable portion
Remuneration paid in respect of duties
as a Director
Fixed portion
Variable portion
Remuneration paid in respect of duties
as a Director
Fixed portion
Variable portion(4)

Yseulys Costes

Jean-Pierre Denis

Other remuneration(3)Remuneration paid in respect of duties
as a Director
Committee Chair (until April 28, 2022)
Fixed portion
Variable portion
Remuneration paid in respect of duties
as a Director
Committee Vice-Chair (until April 28, 2022)

Yonca Dervisoglu(5)Ginevra Elkann(6)Climate Change Lead
Fixed portion
Variable portion
Remuneration paid in respect of duties
as a Director
Fixed portion
Variable portion
Remuneration paid in respect of duties
as a Director
Fixed portion
Variable portion

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2022

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Corporate governance
Remuneration of corporate officers

2023
Member of the Boardof Directors
Financière Pinault,
representedby Héloïse
Temple-Boyer(7)Sophie L’Hélias(8)Allocationof remuneration
Remuneration paid in respect of duties
as a Director

Amountspaid

Amounts
awardedAmounts
paid

–
–
–

–
–
–

–
–
–

–
–
–

–

67,05767,057

227,570–––

12,50023,31831,24012,50023,31831,24075,00054,344
98,226–––

62,58613,991
48,59562,58613,991
48,595

101,688
27,17274,516––

17,461
13,99017,461
13,99057,65627,172

–

3,471

3,471

30,484

95,284
26,431
68,853

104,345
27,981
76,364

104,345
27,981
76,36484,753
27,172
57,581

37,635
14,684
22,951

91,65332,64559,00891,65332,64559,00898,301
27,172
71,129109,054
26,431
82,62334,817
13,991
20,82634,817
13,991
20,826–––120,209
23,00035,242
61,967147,085
23,00037,30886,777147,085
23,00037,30886,777137,133
23,00036,22977,90386,15323,00026,43136,722

89,16323,00027,981
38,182

89,16323,00027,981
38,182

63,72023,00027,172
13,548

224,551

138,765

138,765–

73,00052,862
98,68948,66731,09059,00848,66731,09059,008–––

156,560
23,00044,05289,50890,355
15,333
26,427
48,59590,355
15,333
26,427
48,595––––

Fixed portion
Variable portion
Remuneration paid in respect of duties
as a Director
Lead Independent Director (until March 4,2022)
Fixed portion

Claire Lacaze(9)Variable portion
Remuneration paid in respect of duties
as a Director
Fixed portion
Variable portion

Jean Liu(10)Baudouin Prot

Daniela Riccardi(11)Vincent Schaal(12)Tidjane Thiam(13)Emma Watson

Véronique Weill(5)Remuneration paid in respect of duties
as a Director
Fixed portion
Variable portion
Remuneration paid in respect of duties
as a Director
Fixed portion
Variable portion
Remuneration paid in respect of duties
as a Director
Fixed portion
Variable portion
Remuneration paid in respect of duties
as a Director
Fixed portion
Variable portion
Remuneration paid in respect of duties
as a Director
Committee Chair
Fixed portion
Variable portion
Remuneration paid in respect of duties
as a Director
Committee Chair
Fixed portion
Variable portion
Remuneration paid in respect of duties
as a Director
Lead Independent Director and Committee
Chair

Serge Weinberg(5)Fixed portion
Variable portion
Remuneration paid in respect of duties
as a Director
Committee Chair
Fixed portion
Variable portion

TOTAL

2022

Amounts
awarded

1,400,000(14)

1,400,000 1,400,000 1,400,000(1) The term of office of Jean-François Palus expired on October 3, 2023.
(2) The term of office of Maureen Chiquet began on September 1, 2023.

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Corporate governance
Remuneration of corporate officers(3) Remuneration under the service agreement authorized by the Board of Directors in accordance with articles L. 225-38 of the French
Commercial Code formed by Kering with Maureen Chiquet on July 28, 2023. In consideration for the services provided, the agreement provides
for a one-time, all-inclusive fee of two hundred thousand euros (€200,000.000) to be paid in two installments, one in 2023 and one in 2024,
separately from the remuneration due to her in respect of her role as a Director, and so the fee will not be taken from the overall amount of
remuneration allocated to the Directors by the AGM. This agreement is presented in detail in the Statutory Auditors' report in chapter 6 of this
Universal Registration Document and shall be submitted for the approval of the Annual General Meeting on April 25, 2024.
(4) The term of office of Yseulys Costes expired on April 28, 2022.
(5) The terms of office of Yonca Dervisoglu, Véronique Weill and Serge Weinberg began on April 28, 2022.
(6) The term of office of Ginevra Elkann expired on April 27, 2021.
(7) Financière Pinault, represented by Héloïse Temple-Boyer, waived its remuneration as a Director.
(8) The term of office of Sophie L'Hélias expired on March 4, 2022.
(9) The term of office of Claire Lacaze expired on July 31, 2022.
(10) The term of office of Jean Liu expired on July 27, 2022.
(11) The term of office of Daniela Riccardi expired on April 27, 2023.
(12) The term of office of Vincent Schaal began on August 1, 2022.
(13) The term of office of Tidjane Thiam expired on January 9, 2024.
(14) Excluding the amount allocated to Maureen Chiquet under the service agreement entered into with her, as explained above.

Neither the Company, nor any company that it controls, hasmade any commitment to its corporate officers on account of thecommencement, termination or change of duties or subsequent
thereto.
No non-executive Director has been granted any particular
benefit or specific pension plan. They are not entitled to any
conditional or deferred remuneration.
For 2023, a total amount of €1,400,000 will be paid to the
Directors, in accordance with the remuneration policy for
Directors approved by the AGM of April 27, 2023 (8th resolution),allocated as follows:• €560,000 for the fixed portion, of which €92,000 for the special
portion awarded to the Chairs of the Audit, Remuneration,
Appointments and Governance, and Sustainability
Committees, a €50,000 special portion allocated to Véronique

Weill for her duties as Lead Independent Director and a€23,000 special portion allocated to Jean-Pierre Denis for his
duties as Climate Change Lead, or 40% of the total
remuneration awarded to Directors;• €840,000 for the variable portion (60% of the total
remuneration awarded to Directors).
Corporate Board member (and controlling company) Financière
Pinault has waived all remuneration in respect of its duties as a
Director or participation as a member of the Group's specialized
Committees.
The remuneration policy for Directors in 2024, subject to approvalin the April 25, 2024 AGM, is presented in section 5.2 of thischapter.

Draft resolution regarding the remuneration paid during or awarded for 2023
to corporate officers
12th resolution: Approval of the information referred
to in article L. 22-10-9, I of the French Commercial
Code relating to remuneration paid during orawarded for the year ended December 31, 2023
to corporate officers
Deliberating in accordance with the rules of quorum and majority
applicable to ordinary general meetings and in application of theprovisions of article L. 22-10-34, I of the French Commercial Code,the Annual General Meeting, having reviewed the Board of
Directors' report on corporate governance, approves the— 176

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information referred to in article L. 22-10-9, I of the French
Commercial Code relating to the remuneration and benefits inkind paid during or awarded for the year ended December 31,
2023 to corporate officers, as described in the aforementioned
report, which is included in the 2023 Universal Registration
Document, chapter 3 "Corporate governance", section 5.3"Report on the remuneration paid during or awarded for 2023 tocorporate officers in respect of their duties (ex-post vote)".
The Board of Directors.

CHAPTER 4

Sustainability
11.1
1.2
1.3
1.4
1.5

22.1
2.2
2.3
2.4
2.5

2.6

3-

Introduction: sustainability
178
at Kering
A long-standing commitment
178
Our vision and business model
179
Materiality analysis and non-financial
risks: our priorities
179
Progress with Kering's 2025
Sustainability Strategy
182
Sustainability governanceand organization
186
Ethics, the cornerstone
187of our business
Organization of ethics andcompliance within the Group
188
Implementation throughout
the Group and beyond
189
Promoting and respecting ethics
within the Group and beyond
190
Whistleblowing procedure forreporting unethical conduct
191
Protection of human rights:
an approach rooted in the Group's
values

193

Contribution to professionalorganizations and other institutions

194

The employee experience at
the heart of the Group’s Human
195
resources strategy
3.1 The Group’s Human resources profile 196
3.2 Fostering employee development ina stimulating and inclusive work
environment
200
3.3 Remuneration and employee
benefits
208
3.4 Social dialogue
210
4 - Working together to build
sustainable and socially212
responsible supply chains

4.1

4.2

55.1

5.2
5.3
5.4
5.5
5.6

Relations with our direct suppliers
and subcontractors(Tier 1 and Tier 2)

213

Action to improve working
conditions in our supply chains

215

Respecting and protecting theenvironment in our operationsand value chain

219

Management of our environmental
impact and the EP&L,
the cornerstone of our approach
Acting against climate change

220
224

Preserving biodiversity
and ecosystems

236

Sustainable sourcing and use of raw
materials (Tier 3 and Tier 4)
Fostering circularity

243
250

Identification of Group economic
activities covered by the EU
Taxonomy regulation

257

6-

Commitments to our customers,
our stakeholders and society
as a whole
6.1 Crafting tomorrow’s Luxury
6.2 Involving our ecosystem in creating
tomorrow's Luxury
6.3 Initiatives carried out by the Kering
Foundation and sponsorshipprograms
7 - Cross-reference table
8 - Report of one of the Statutory
Auditors, appointed as
independent third party, on theverification of the consolidated
non-financial performancestatement and on the verificationof certain environmental
indicators
9 - Limited assurance report of oneof the Statutory Auditors on aselection of information related
to the environmental profit
and loss account ("EP&L")

264
264
267

269

272

276

279

This chapter – including references to other parts of the Universal Registration Document – constitutes the Keringgroup's Non-Financial Information Statement (NFIS) for 2023, and provides all of the information required by Articles
L.225͏-1͏ 02͏-1͏ , R.225͏-1͏ 05 and R.225͏-1͏ 05͏-1͏ of the French Commercial Code (Code de commerce) relating to the NFIS and by
European Regulation (EU) 2020/852 of June 18, 2020 (the "Green Taxonomy Regulation") and Commission DelegatedRegulations (EU) Nos. 2021/2139 and 2021/2178. The Duty of Care Plan is presented in chapter 5 of this document ("Riskmanagement and internal control").

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Sustainability
Introduction: sustainability at Kering

1 - INTRODUCTION: SUSTAINABILITY AT KERING
1.1 A long-standing commitment
For more than 20 years, Kering has developed and reinforced its Sustainability Strategy. Key milestones have included the following:
1996
The Group's first Ethics Charter
2001
Creation of SolidarCité, an association
promoting education and integration
initiatives among employees
2003
Establishment of a Group Sustainability
Department and an environmental
reporting platform
2005
Deployment of the Code of Business
Practice and creation of the Ethics andCorporate Social Responsibility Committee(ECSRC)2006
Definition of the Group's Corporate Social
Responsibility (CSR) commitments
2007
Creation of a Group Corporate Social
Responsibility Department, represented
within the Executive Committee andreporting directly to the Chairman
2008
Member of the Global Compact.
Creation of the PPR Corporate Foundation
for Women's Dignity and Rights
2009
Worldwide release of Yann ArthusBertrand's documentary HOME, financed
primarily by PPR
2010
Sustainability criteria included inperformance evaluations of PPR groupleaders
Launch of PPR's Innovation andSustainability Awards
2011
Publication of the very first Environmental
Profit & Loss (EP&L) account by PUMA

— 178

2012
Publication of sustainability targets to beachieved by 2016
Creation of a Sustainability Committee
within the Board of Directors
2013
Creation of the Material Innovation Lab(MIL)PPR Corporate Foundation for Women's
Dignity and Rights becomes the Kering
Corporate Foundation, with the slogan"Stop Violence. Improve Women's Lives"
2014
Signature by Kering of a five-year strategic
partnership with the London College ofFashion's Centre for Sustainable Fashion topromote more sustainable and innovative
design practices in the fashion industry andamong its future practitioners
2015
Kering publishes for the first time the resultsof its Group EP&L and shares its
methodology
2016
Final report on Kering's 2012-2016
sustainability targets
Kering is the first Luxury group to have its
carbon objectives validated by the Science
Based Targets initiative
Establishment of a global parental policy
for all Group employees
2017
Publication of Kering's 2025 Sustainability
Strategy
Publication of the Kering Standards for raw
materials and manufacturing processes.
Promotion of high standards of integrity,
responsibility and respect toward people
through the Fashion Models Charter
2018
Release of the Group's first Integrated
ReportKERING - 2023 Universal Registration Document

2019
Creation of the Fashion Pact by Keringand over 250 global fashion brands, making
commitments aimed at halting climatechange, restoring biodiversity andprotecting the oceans
Publication of Kering's Animal Welfare
Standards, the first set of such standards
for the Luxury and Fashion industry
Adoption of Baby Leave, offering 14 weeks'
paid leave for every parent worldwide
welcoming a new child from January 1, 2020
Launch of Kering's project on genderequality in the supply chain in Italy with the
Camera Nazionale della Moda Italiana
2020
Introduction of support measuresand protocols for Group employees
and suppliers in response to the COVID-19
pandemicCreation of dedicated Inclusion andDiversity Committees
Development and publication by the Kering
Foundation of a global policy on domestic
violence to support victims of domestic
violence within the Group
Publication of the Biodiversity Strategy
and creation of the Kering Regenerative
Fund for Nature from 2021
2021
Ending the use of fur across the Group
from the Fall 2022 collections onward
Launch of the Regenerative Fund for
Nature to help drive the transition of amillion hectares of land to regenerative
agriculture.
Publication of the Group's Human Rights
policy2022
KeringForYou, the Group's first employee
share ownership plan
Creation of the Watch & Jewellery
Initiative 2030
Creation of the Climate Fund for Nature
2023
The sustainability highlights of 2023 aredescribed and explained in the following
pages of this NFISSustainability
Introduction: sustainability at Kering

1.2 Our vision and business model
Kering's vision – Embracing creativity for a Luxury that combines heritage and boldness – its ambition and the Group's value creation
model and strategy are presented in chapter 1 of this Universal Registration Document.
The Group's value chain, simplified in seven key steps, reflects Kering's interactions and collaborations with all of its stakeholders. The
aim is to gain a full appreciation of their concerns and expectations, and, as far as possible, to incorporate these aspects into theGroup's strategy.

1.3 Materiality analysis and non-financial risks: our priorities
Kering is rolling out its ambitious 2025 Sustainability Strategy, which builds on three components: the vision and ambition adopted at
the highest level of the Group, the materiality assessment and the non-financial risk assessment, which identifies accurately key
challenges and risks throughout the value chain.
Vision and ambition
Embracing creativity for a Luxury that combines heritage
and boldness
Being the world's most influential Luxury Group in terms of creativity,
sustainability and economic performance2025
Sustainability
Strategy
Crafting tomorrow's Luxury

Materiality assessment
Identifying priority topics, consistent with the Group's priorities
and stakeholder expectations

Three pillars:• Care• Collaborate• Create

Non-financial risk assessment
Identifying the main non-financial risks in relation to sustainability

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Sustainability
Introduction: sustainability at Kering

1.3.1 Materiality assessment: targetingthe main priorities
Materiality is at the core of Kering's sustainability approach.
Since 2013, this approach has allowed Kering to identify the key
topics relating to its vision and its business activities (based on
their economic, environmental and social impacts as well as
governance), and how key stakeholders assess them.

1.3.1.1 Materiality assessment
methodology and stakeholder
engagement process
Kering consulted its stakeholders around the world in 2020 inorder to feed its materiality assessment. This three-stepmateriality assessment drew on various existing guidelines forstakeholder engagement (GRI, AA1000 and ISO 26000). The firststep enabled to list 28 topics, on which, in a second step,
stakeholders were consulted through a quantitative survey andstrategic interviews. Almost 70 external stakeholders (investors,
suppliers and business partners, distributors and clients,— 180

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representatives of civil society, local communities and NGOs,
academics, public authorities and regulators, peers, professionalorganizations and innovators) and internal stakeholders(management, top management at Kering and its Houses,
functional departments) were consulted. A steering committee
made up of members of the Group's main functional
departments were involved throughout the project, which was
supported by a team of independent consultants. The final step
involved consolidating and ranking the results in the materiality
matrix.

1.3.1.2 Analysis of results
Kering's materiality matrix includes 28 topics with high overall
importance, broken down into four categories: planet, people(social and societal topics), profit (business) and governance.
These topics are arranged in a three-level hierarchy, which
provides useful information that allows the Group to better
understand, manage and prioritize its actions in the short andmedium-term.

Sustainability
Introduction: sustainability at Kering

The results of the assessment confirm that Kering's strategicpillars defined in its 2025 Sustainability Strategy and its businessmodel, as well as the commitments made since 2020, areconsistent with the expectations of external stakeholders. In
2020, stakeholders identified four topics that were gaining
traction – biodiversity, sustainable procurement and responsible
supplier relations, employee well-being, and cybersecurity – andthis has been confirmed in the light of societal changes and new
regulations.
Sustainability topics included in the matrix are therefore coveredby action plans and key performance indicators as part ofKering's 2025 Sustainability Strategy (see section 1.4).
In addition, in 2023, Kering began work relating to the entry into
force of the Corporate Sustainability Reporting Directive (CSRD),
involving all relevant internal stakeholders and functional
departments (Sustainability, Risk Management, Finance, Human
resources, Legal and Compliance departments, representativesof the Houses, etc.). This work included updating the Group's
approach to materiality by adopting a double materiality
assessment, establishing the methodology in accordance with
the European Sustainability Reporting Standards (particularly
ESRS 1 and 2), with the support of an independent consultancy
firm. In particular, the materiality assessment was defined inaccordance with the Group's risk analysis. Thus, the review ofsustainability matters and the associated impacts, risks andopportunities took into account the risk factors already identified
by the Group.

1.3.2 Stakeholder dialogue and actionsof the Group and its Houses
To stay closely attuned to its stakeholders' priority challenges
and contribute to the movement toward more sustainable
Luxury, Kering has defined a consultation approach based on
dialogue and analysis of stakeholder expectations at the Grouplevel. This analysis is updated annually. It was reviewed in-depth
as part of the preparatory work conducted for the CSRD's entry
into force, to ensure that relevant stakeholders were consideredin the double materiality assessment.

Beyond its materiality assessment, Kering takes multiple actions
at the local, national and international levels and participates inmany initiatives and associations with its stakeholders or as partof multi-party stakeholder coalitions. Kering encourages eachHouse to develop its own dialogue platforms at a more
operational level.
Kering updates annually a thematic factsheet presenting in asynthetic and non-exhaustive way the materiality assessment
and the main expectations identified, the ways in which theGroup interacts with each stakeholder category and the actions
implemented. It is available on the Group's website, section
Sustainability/Measuring our impact/Reporting and indicators.

1.3.3 Non-financial risk assessment
Each year, Kering carries out a detailed analysis of the risks that
the Group may face, including non-financial risks that could
jeopardize its ability to maintain its overall performance. The
approach as a whole and all aspects generally relating to risks arepresented in chapter 5 of this Universal Registration Document.
Risks relating to the categories included in the Non-Financial
Information Statement (NFIS) as defined in article L. 225-102-1 of
the French Commercial Code – environment, social/societal,
human rights, corruption and tax evasion – are thus an integral
part of the Group's overall risk identification and management
process, and as such are described in chapter 5 of this document.
The Sustainability department is involved in the process ofidentifying and classifying the risks that fall within its scope. Thisrisk assessment extends beyond Kering's operations and covers
the entire value chain from the sourcing of raw materials to theuse of products made by the Group's Houses, fully consistent
with the materiality assessment of sustainability issues including
the review of stakeholders' expectations, the recommendationsof the Task Force on Climate-related Financial Disclosures(TCFD), and other analytical work conducted by Kering, including
the EP&L. As a result, eight main risks out of the NFIS categories
have been identified.
The following table sets out the risks identified in chapter 5 inview of the main topics in the materiality matrix and the sectionsof the NFIS that present the related policies, initiatives, results
and associated performance indicators.

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Sustainability
Introduction: sustainability at Kering

Risks – Chapter 5
TalentNFIS paragraphs detailing policies and projects
implemented, outcomes and performance indicators
2.5 Protection of human rights: an approach rootingin the Group's values
3. The employee experience at the heart of the Group's
Human resources strategy
6.2.1 Community impact and preservation of know-how

Main topics from the materiality
assessment• Inclusion and diversity• Talent attraction and retention• Employee well-being• Social dialogue• Craftsmanship and know-how

Climate change

5. Respecting and protecting the environment• Climate change
in our operations and value chain
5.1 Management of our environmental impact and the EP&L,
the cornerstone of our approach
5.2 Acting against climate change

Effectivenessof the supply chain

5.Respecting and protecting the environment• Circular economy and regenerationin our operations and value chain, including:
5.1 Management of our environmental impact and the EP&L,
the cornerstone of our approach
5.5 Fostering circularity

Production

4. Working together to build sustainable and socially
responsible supply chains
5.3 Preserving biodiversity and ecosystems
5.4 Sustainable sourcing and use of raw materials (Tier 3
and Tier 4), including 5.4.3 Animal welfare: the Kering Animal
Welfare Standards
5.5 Fostering circularity
6.1.3 Product compliance and consumer health and safety
6.2.1 Positive community impact and preservationof know-how

Ethics and risks
of fraud andcorruption

2. Ethics, the cornerstone of our business

Human rights
and fundamental
freedoms

2. Ethics, the cornerstone of our business, including 2.5
Protection of human rights: an approach rooted in theGroup's values
3. The employee experience at the heart of the Group's
Human resources strategy
4.2 Action to improve working conditions in our supply
chainsSee also the Duty of Care Plan in chapter 5 of this document• Respect for human rights andfundamental freedoms in the supply chain• Living wage in the supply chain• Health and safety in the supply chain

Compliance withnational tax laws
and international
standards

See chapter 5 of this document• Business practices

Image

6.1 Crafting tomorrow's Luxury• Responsible advertising and consumerawareness• Manufacturing processes• Sustainable packaging and waste
management• Water stewardship• Craftsmanship and know-how• Sustainable sourcing of raw materials
and alternative materials• Sustainable procurement and responsible
supplier relationships• Biodiversity• Animal welfare• Business practices• Transparency

1.4 Progress with Kering's 2025 Sustainability Strategy
Kering’s 2025 Sustainability Strategy identifies the Group’s
priorities and defines short-, medium- and long-term targets toaddress the challenges and risks identified above. This Strategy is
being implemented within each of the Houses, which cascade theGroup’s commitments into action plans and report on the
progress made. This dashboard shows progress made up to theend of 2023 in each of the Strategy’s three pillars. The Group’s— 182

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objectives and actions are also aligned with the United Nations
Sustainable Development Goals (SDGs). Definitions of theindicators and information about how they are calculated areprovided in the methodological notes for social andenvironmental reporting, available on the Group’s website under
Sustainability/Measuring our impact/Reporting and indicators.

Sustainability
Introduction: sustainability at Kering

Care for the planet
Objectives
Climate Strategy• SBT 1.5 °C (2030
vs. 2015)• 40% reduction in
Scopes 1, 2 and 3 inabsolute terms (2035
vs. 2021)(2)• Net zero (2050)

2023 results and highlights• CDP Climate A-List• 77% reduction in Scopes 1 & 2(absolute emissions) vs. 2015
• 55% reduction in Scope 3 (emissions
intensity) vs. 2015(1)• 3% increase in Scopes 1, 2 and 3(absolute emissions) vs. 2021(2)Biodiversity andplanetary boundaries• Net positive impact
on nature (2025)• CDP Forests A-list• Publication of a Deforestation and conversion-freecommitment(Cattle/Timber)• Regenerative agricultural practices (target of 1 million• SBTN Science Based Targets
hectares regenerated by 2025): seven projects selected
for Nature pilot projectin 2021 within the framework of the Regenerative Fund
• Regenerative Fund for Nature:
for Nature, covering a total of 840,000 hectares; projectnew call for projects, arrival of Inditex
with the Olive Leaf Foundation in South Africa to support
as co-investor alongside Kering
regenerative practices on 215,000 hectares• Protecting essential habitat (target of 1 million hectaresof irreplaceable critical habitat): 127,000 hectares protected
via the Climate Fund for Nature and contribution to theprotection and/or restoration of around 665,000 hectares
via other voluntary carbon finance mechanisms• Kering ranked no. 1 out of 389 companies assessed in 2022
in the WBA Nature Benchmark

EP&L• 40% reduction in
intensity (2025
vs. 2015)• 58% reduction in EP&L intensity
vs. 2015(4)• Target of a 40% reduction in EP&L intensity achievedin 2021, four years ahead of schedule• Results shared on an open source website since 2018
• EP&L extended in 2023 to include the Group’s cross-business
operations in addition to product life cycle

Introduction of theKering Standards• 100% alignment(2025)• 75% of raw materials are alignedwith the Kering Standards(5)• 8 point increase in alignment(5) since 2017
• Supplementary guides relating to circularity, innovationand environmental claims• Vendor Portal to evaluate supplier performance

Traceability• 100% traceability(2025)• 97% of raw materials traced(5)Positive contribution
to climate change
mitigation

Preserving water
resources• 35% reduction in
consumption bydirectly-owned
tanneries (2035
vs. 2022)

Main strategic advances• Definition of an absolute target for reducing Scope 1, 2
and 3 greenhouse gas emissions (GHG): 40% reduction
in 2035 vs. 2021(2)• Decarbonization roadmap drawn up for the entire Group,
adapted to fit each of the Houses and the main emission
sources identified• Achievement of the SBTi and RE100 target of using 100%
renewable energy in 2023 and 2022(3)• Launch in 2022 of the CVPPA (Collective Virtual Power
Purchase Agreement), supported by 12 brands that are
members of The Fashion Pact to speed up the adoptionof renewables in Europe• Improvement in the quantification of GHG with theintroduction of new Scope 3 emissions sources in 2023

• 11 point increase in traceability(5) since 2017
• Roll-out of a platform for monitoring sustainable materials
in ready-to-wear and different technologies for testing andvalidating supplier declarations• 2,135,568 tCO2e offset via avoidance • Contribution to mitigating climate change in terms of overall
and/or removal projects in 2023 withcarbon footprint (Scopes 1, 2 and 3) excluding product use
respect to 2022(6)and end-of-life in 2023 with respect to 2022(6)• Climate Fund for Nature launched in 2022 with L’Occitane
and Mirova, with the aim of investing €300 million in naturebased solutions• CDP Water A-List• 7% reduction in the Group’s water
consumption vs. 2022
• ZDHC Progressive Level achievedby Kering• Mapping of the Group’s facilities and strategic suppliers
according to areas of water stress• SBTN freshwater pilot project• New version of the MRSL aligned with ZDHC MRSL V3.1,
following on from the objective of eliminating hazardous
chemicals from products and production processes(1) The SBTi targets adopted by the Group concern the following categories of Scope 3 emissions: Purchased Goods and Services (Category 1 of
the GHG Protocol), Fuel- and Energy-Related Activities Not Included in Scope 1 or Scope 2 (Category 3), Upstream Transportation andDistribution (Category 4), Business Travel (Category 6), Downstream Transportation and Distribution (Category 9). This corresponds to thetargets validated by the SBTi in 2021 at the time they were certified. Cf. section 5.2.4 on the Group’s carbon footprint assessment and how it
has changed.

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Sustainability
Introduction: sustainability at Kering(2) The Group’s target of a 40% absolute reduction concerns Scope 1 and 2 emissions, as well as all Scope 3 categories (as described in
section 5.2.3, the results of which are presented in the table "Scope 3 by category (in tCO2e)"). All categories of Scope 3 emissions have been
included in this target following the work done by Kering in 2023 to extend the quantification of Scope 3 emissions, including for the leastmaterial sources of emissions.
(3) In accordance with RE100 guidelines.
(4) Intensity measured on an identical scope on the basis of 2015 EP&L categories (excluding impacts relating to use of products, end-of-life
treatment of products, capital expenditure, franchises, financial investment, employee commuting and product waste, corresponding toCategories 2, 5, 7, 11, 12, 14 and 15 of Scope 3 of the GHG Protocol). Cf. section 5.1.1 for more information about the EP&L 2023.
(5) Alignment rate and traceability rate: see definitions in section 5.4.2.
(6) Scope 1, 2 and 3 2022 emissions excluding use of sold products (Scope 3 - Category 11 of the GHG Protocol) and end-of-life treatment of soldproducts (Scope 3 - Category 12), as calculated for 2022 reporting. These offset emissions therefore do not include the new Scope 3 categories
or the methodological adjustments calculated in 2023. See section 5.2.4.4 for more information about carbon offsetting in 2023 and theamount of related credits.

Collaborate with people
Objectives
Preserve know-how

2023 results and highlights• Approximately 10 craftsmanshipexcellence programs in hautecouture, leather goods and jewelry
benefiting more than 1,950 learners
and employees in 2023

Main strategic advances
1,700+ people trained in excellence programs at our Houses,
such as Gucci and Instituto Secoli, Institut Saint Laurent Couture,
Pomellato Virtuosi with Scuola Galdus, Boucheron with Haute
École de Joaillerie, Bottega Veneta’s Accademia Labor
et Ingenium
Gucci’s Accademia ArtLab e Fabbriche has trained more than
2,300 employees since 2018

Local communities• More than 15 active international
programs focusing on raw materials• Change in the Foundations’ status
to the Kering Foundation
endowment fund

• Reforestation of gold-mining sites in French Guiana• 7 projects supported by the Kering Regenerative Fund for
Nature, including the Gobi Desert cashmere project• In the space of 15 years, the Kering Foundation has helped
1 million women who have been victims of violence andsupported 100 nonprofits around the world• 100,000 young people have taken part in workshops to raiseawareness about violence against women through theFoundation

Helping supplierswith their transition• 4,559 supplier audits performed,
representing 75% of tier 1 and 2
suppliers• More than 730 suppliers havecompleted their performanceassessment across all 4
questionnaires of the Vendor Portal• Clean by Design implemented among 59 textiles suppliers
and being launched with 15 others

Partnerships
with schools
and universities• Kering Certificate of Influential• Around 1,500 students educated in sustainability concepts
Luxury program with HEC Pariseach year by IFM by means of a mandatory 30-hour course,
along with training leading to a recognized qualification as• Partnership between the Kering x IFM
part of the IFM-Kering Sustainability Chair
Sustainability Chair and the Bezalel
Academy of Arts and Design• Key partnerships with leading universities since 2015: IFM,
Tsinghua, LCF, HEC Paris, Bocconi• Over 87,000 participants in 191 countries since theSustainability and Fashion MOOC was launched with theLondon College of Fashion in 2018

Progressive humanresources policies• 100% of employees covered• Baby Leave, parental leave of at least 14 weeks allowing allby the Baby Leave program
Kering employees – regardless of gender or family situation –to spend time with their new child in the best possible• 50% of employees covered by the EU
conditions
collective agreement• Health & Safety policy since 2019
• Global domestic violence policy since 2021
• Agreement on social dialogue and well-being at work
signed with the European Works Council in 2023
• Women represent 63% of employees, • Proportion of women on the Board of Directors increased
57% of managers and 50% of Board
from 28% in 2010 to 50% in 2023
members (as at December 31, 2023) • Inclusion & Diversity Committees• Universal Fair Pay certification• Women in Luxury internal network (launched in France infor Kering and recognized for all2022) extended in 2023 to Italy, the United States, China,of the Group’s Houses
Singapore, Mexico, South Korea and Japan• Online training on inclusion and diversity since 2022

Gender equality,
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Sustainability
Introduction: sustainability at Kering

Objectives
Career paths

2023 results and highlights
Main strategic advances• 13.11 hours of training per employee • New learning experience on the Kering Learning digital(average)platform, based on employee skills• 93% participation rate in the annual • Sustainability Academy, focusing on sustainability topics
Privacy & Cybersecurity e-learning• Functional academies for all of the Group’s Houses
course• HR policy/inclusive recruitment• 1st Global Learning Day• 95% of employees are on permanentcontracts• 4.8% of permanent staff work parttime• 37 years is the average ageof permanent employees• 7.1 years is the average lengthof service of permanent employees

Preferred employer• Kering is ranked 2nd in the World
Benchmarking Alliance’s 2023
Gender Benchmark• Included in the 2023 Bloomberg
Gender Equality Index• 83% participation rate in the Kering Employee Listening
global internal opinion survey, with an engagement rateof 73% in 2023
• Graduate Programs: Kering Keys Retail, Kering KeysManagement France (2023), Kering Keys Retail China (since2022), Kering Keys Supply Chain Italy (since2021), Eye for
Talent (since 2022), Gucci Grade EMA (since 2021)

Create new business models
Objectives
Disruptive
innovations

2023 results and highlights
Main strategic advances• 52% of leather purchased for leather • Kering Ventures, with the purpose of investing in innovative
goods is metal-free/chrome-free
new technologies, brands and business models for the futureof the Luxury sector• Investment in Mogu
• Fashion for Good accelerator to support startups with major• Investment in VitroLabs
potential: 151 pilots launched including 33 via the MIL, with
the Houses and at Group level• 3 editions of the Kering Generation Awards in China (2023,
2021 and 2019), launch in Japan (2024)

Innovation Labs

• 8,000+ sustainable materials(1)in the Material Innovation Lab• Partnership with Biofabricate• Over 150 sustainable and innovative textiles developed(1)thanks to the MIL• Over 800 suppliers listed in the MIL database, 350 of whichwere added in 2023
• Jewellery Innovation Lab (JIL) dedicated to jewelry

Circular economy
and sustainable
design• Launch by Balenciaga of a coatmade from LunaformTM• Acquisition by Kering of a stake in Vestiaire Collective, which
specializes in the resale of luxury products (2021)• Circular economy ambition, "Coming Full Circle"• Growing number of responsible products and collections• Green Fashion Shows guidelines

Sustainableprocurement
platforms andcoordination

100% of gold purchased throughthe Kering Precious Metals Platform(PMP)• Dedicated internal sourcing platforms and coordination forpurchases of gold and natural materials from Regenerative
Fund for Nature projects and Kering’s other regenerative
projects (silk, cotton, cashmere, wool, etc.)

Transform throughstrong governance

External recognition of Kering’s ESG
performance:• ISS ESG (B-, Prime)• Sustainalytics (low risk)• MSCI (AAA)• S&P ESG Score (84/100)• Moody's ESG Services (73/100)• CDP AAA (Climate / Water / Forests)
Out of more than 40 requests andquestionnaires completed in 2023

• Kering is included in the DJSI World et DJSI Europe indicesfor the 11th consecutive year
• Sustainable Finance department created in 2022
• Materiality assessment updated in 2023 on the basis of theprinciple of double materiality and EU reporting standards(ESRS)• Inclusion & Diversity Committees within the Houses andCorporate(1) Aligned with the Kering Standards

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Introduction: sustainability at Kering

1.5 Sustainability governance and organization
The Board of directors defines the Group’s sustainability strategy
with the support of Kering's Sustainability department, in chargeof its implementation. The Chief Sustainability and Institutional
Affairs Officer is a member of the Executive Committee andreports directly to the Chairman and Chief Executive Officer. The
Sustainability Department is responsible for the implementationof the sustainability strategy and supports the Houses to deploy it
as a sparring partner. More than 100 individuals have a dedicatedsustainability role at the Corporate level and within the Houses,
as well as in dedicated structures such as the Material Innovation
Lab (MIL) and the Jewellery Innovation Lab (JIL). This
organization fosters cooperation between Kering and its Houses,with the support of Corporate functions and the creation ofworking groups and cross-business committees on the Group’s
flagship projects.

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In terms of governance, the Sustainability Committee of theBoard of Directors' role is to support the Company and the Groupin establishing, implementing and monitoring good corporate
governance policies and sustainability and corporate citizenshippractices. There is a Lead Independent Director on the Board of
Directors whose role includes, in coordination with the Chairman,
representing the Board in its dealings with investors concerning
ESG matters, along with a Climate Change Lead. Their respectiveroles and responsibilities are described in sections 1.4 and 1.5 ofchapter 3, which also contains information about the work of the
Sustainability Committee.

Sustainability
Ethics, the cornerstone of our business

2 - ETHICS, THE CORNERSTONE OF OUR BUSINESSThe strong values embraced by Kering and its Houses are expressed through their products and form a solid basis for trust-based
relationships with clients, employees, suppliers, commercial partners and other Group's stakeholders. To ensure that these values
permeate its operations, Kering is firmly committed to ethical behavior in all its activities and business relationships.

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Sustainability
Ethics, the cornerstone of our business

2.1 Organization of ethics and compliance within the Group
Kering's commitment to ethics starts at the top, with its Executive
Committee and the Sustainability Committee of the Board of
Directors, overseen by Chairman and Chief Executive Officer
François-Henri Pinault.
The Group's ethical approach is based on its Code of Ethics, thekey document that unpacks the principles behind the Group's
internal and external actions, along with three Ethics Committees(one at Group level and two regional committees) and aCompliance Program with a dedicated organization tasked with
developing and overseeing implementation. The Program is led

2.1.1 Ethics
Kering's approach to ethics involves three dedicated Ethics
Committees: one Group committee and two regional
committees (for Asia-Pacific and the Americas) as part of areference framework common to the whole Group. Each of thethree Committees is made up of representatives from Keringand its Houses to ensure greater diversity in terms ofnationality, gender and role. In 2023, 52% of these committees'
members were women. The Committees focus on three mainareas:• ensuring that the Code of Ethics effectively reaches all Group
employees;• proposing appropriate updates to the Code and on theimplementation of appropriate behavior and practices;• managing and processing alerts received as part of the Kering
whistleblowing system.
Employees can contact the Ethics Committee of their choice toobtain clarification or ask questions on the application of theCode, but also if they are unsure how to behave in a specificsituation or to report concerns if they believe they have sufferedor witnessed conduct that breaches the Code (see section 2.4).

2.1.2 Compliance
The Compliance organization is coordinated by a Group Chief
Compliance Officer (CCO), who is responsible for implementing
the Group Compliance Program as approved by the Board of— 188

KERING - 2023 Universal Registration Documentby the Group Chief Compliance Officer, who reports directly to
the Group Audit Committee. This system, fully integrated in
Kering's internal control system, ensure a strong culture of
integrity throughout the Group and its Houses. They also give
employees a confidential way of reporting potential breaches,and ensure that any such reports are dealt with promptly andfairly. They also ensure that the Group complies with applicableregulatory requirements, including French Laws no. 2016-1691,
known as Sapin II, no. 2017-399 on the Duty of Care andno. 2022-401, known as the Waserman Law.

Directors. The Group Chief Compliance Officer reports to the
Audit Committee, which helps ensure the independence requiredof that role. The Group Chief Compliance Officer also has directaccess to the Chairman and Chief Executive Officer and does nothold any other position, so is fully focused on this role. To ensure
the day-to-day monitoring and effectiveness of the Compliance
Program, the Group Chief Compliance Officer is supported by (i) ateam of seven compliance law experts working in Paris, New
York, Singapore and Shanghai, (ii) a network of Brand
Compliance Officers appointed by the Houses' CEOs, and (iii) a
network of Regional and Local Compliance Officers. In someHouses, there are compliance managers in addition to the Brand
and Local Compliance Officers. As a general rule, the positions
held by the Compliance Officers in parallel with their complianceduties are sufficiently high-ranking to ensure they have thenecessary authority and independence.
The Compliance Program in general, and the anti-corruption
system in particular, are ultimately the responsibility of FrançoisHenri Pinault in his capacity as Chairman and Chief Executive
Officer of Kering SA. Mr. François-Henri Pinault is involved
personally in developing and implementing the anti-corruption
program within Kering and its Houses, both internally andexternally. He is supported by Jean-Marc Duplaix in his capacity
as Deputy CEO in charge of Operations and Finance and by the
Board of Directors, particularly within the Audit Committee andthe Remuneration Committee, and is supported by the Houses'
CEOs, who are also personally involved in the development andimplementation of the compliance program.

Sustainability
Ethics, the cornerstone of our business

2.2 Implementation throughout the Group and beyond
2.2.1 Kering’s Code of Ethics
Since 1996, Kering's ethical principles have applied to everyone
within the Group without exception. The Code of Ethics has been
updated regularly in the meantime to reflect new laws andregulations. The Code extends to the commitments of membersof the Executive Committee as well as the Chairman and Chief
Executive Officer, and has been presented to and reviewed by
Kering's Board of Directors.
The Code of Ethics is the cornerstone of Kering's approach to
ethics. It aims to formalize the Group's determination to comply
with the major international reference texts, and demonstrates
how the Group continually strengthens its commitments and thesystems in place to ensure that compliance. It is available in
14 languages on Kering's intranet and website.

2.2.2 System for detecting
and preventing corruption
and influence-peddling
Kering's Code of Ethics emphasizes that employees must at all
times act with integrity, loyalty and a sense of responsibility. It
clearly sets out the Group's commitment to zero tolerance on
corruption and influence-peddling, and encourages employees toreport any instance of misconduct. It stipulates the necessity of
avoiding conflicts of interest, any risk of which must be promptly
identified and resolved.
In 2016, Kering developed and implemented an Anti-corruption
Policy, standing alongside the Code of Ethics, to offer employees
fuller guidance in their everyday practices and ensure a firm gripon corruption risks. This Policy, which was updated in 2019,
identifies prohibited behavior and sets out guidelines enabling
employees to detect instances of corruption and report them tomanagement.

The anti-corruption compliance program in place within Keringand its Houses meets the requirements of international
standards, and more particularly the eight pillars required underarticle 17 of the Sapin II law. The Group Chief Compliance Officer
attends at least one meeting of the Audit Committee each year toreport to its members on the status of the compliance programand its implementation. The Audit Committee ensures thatcompliance risks are sufficiently mitigated and that theCompliance Officers have the appropriate resources. The
Committee also discusses the annual compliance objectives tobe assigned by the Remunerations Committee to the Chairman
and Chief Executive Officer and the Deputy CEO in charge ofOperations and Finance. The Chairman and Chief Executive
Officer and Deputy CEO in charge of Operations and Finance also
meet regularly with the Group Chief Compliance Officer.

Implementation
To apply these commitments in an effective way and ensure fullcompliance with the stipulations of France's Sapin II Law,
corruption and influence-peddling risks were mapped across theGroup and each of its Houses worldwide in 2019 and updated in
2021. To ensure that the risk assessment was comprehensive,
each potential corruption and influence-peddling scenario
relevant to the Group was identified and assessed after analyzing
existing first, second and third-level controls. The corruption andinfluence-peddling risks associated with these scenarios wererated and ranked in the aforementioned risk map. The action
plan resulting from the 2021 update was rolled out starting in
2022 and continued in 2023, alongside second-level compliance
audits carried out on and off site by the Group ComplianceDepartment, with the support of an international law firm toreinforce the independence and expertise of the analysis in themost at-risk jurisdictions identified in the risk map.
The Group Chief Compliance Officer, who reports directly to the
Audit Committee and is therefore independent of the Houses andsupport functions, is responsible for implementing the Anticorruption Policy under the Group Compliance Program. The
deployment of the Anti-corruption Policy is monitored closely by
the Audit Committee and Executive Management.

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Sustainability
Ethics, the cornerstone of our business2.2.3 System for detecting andpreventing money laundering
In 2021 Kering adopted and implemented a Group Policy (the"AML Policy") to reduce money-laundering risks and strengthen
its systems in this area. The latest update of this policy wasissued in late 2023, and it defines rules for carrying out checks
relating to the Houses' selling activities, online and in store "forcertain transactions considered at-risk". In 2023, Kering
Compliance Department trained more than 3,000 employees
worldwide in the application of the AML Policy.

2.2.4 System for detecting andpreventing risks related
to economic sanctions and export
controls
In line with its commitments, the Group seeks to act in fullcompliance with the laws and regulations applicable to it,
including those regarding economic sanctions and export
controls, which have been significantly reinforced by certain
jurisdictions because of the armed conflict between Russia andUkraine. To prevent non-compliance risks as far as possible, a
specific Sanctions Policy was adopted and deployed by theGroup in 2016, and was updated most recently in October 2023 asa result of the armed conflict between Russia and Ukraine.
Detailed information is provided in chapter 5.

2.2.5 Human rights Policy
Respect for and protection of human rights, for all Group
employees and all employees in each House's supply chain, iscentral to Kering's ethical commitments and complianceprogram.
Details about the Human Rights Policy published in 2021, its
governance and related systems and initiatives are set out insection 2.5.

2.2.6 Continuous improvementof the Compliance Program
Updates to risk maps (relating to corruption, human rights andthe Duty of Care), compliance reviews and internal audits are
conducted to better identify potential shortcomings, which
Kering and its Houses remedy with the aim of continuously
improving the Compliance Program. For example, the corruption
risk identified as being the most material for the Group when therisk map was updated in 2019 and again in 2021 relates torelationships with third parties, particularly business partners orin the context of real estate transactions. After that exercise, theGroup updated its third-party due diligence procedure andstrengthened its controls over distributors, landlords and service
providers involved in the creation and renovation of stores.

2.3 Promoting and respecting ethics within the Group and beyond
2.3.1 Fostering a culture of integrity
A training program on ethics and the related Code, known as the"Ethics & Compliance e-learning program", has been established
for all Group employees worldwide and implemented since 2014.
Available in 15 languages, it sets out the ethical ground rules inplace at Kering and presents case studies and ethical dilemmas
that help employees ask themselves the right questions. The elearning program is updated annually, and covers all theprinciples upheld by the Group's Code of Ethics by alternating
between practical examples that allow a variety of subjects to becovered over time (conflicts of interest, inclusion and diversity,
respect for human rights, harassment, environmental protection,
fraud, etc.). The fight against corruption is a mandatory topic
covered each year. Employees are also reminded every year of
the existence and operation of the Group's whistleblowing
system and its key features (particularly respecting
confidentiality when handling cases and the ban on any
retaliations against whistleblowers).
Each year's training program is led by Kering's Chairman andChief Executive Officer. The training program had been delivered
to 98% of Kering employees by year-end 2023, up from 96.5% in— 190

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2022 and 96.4% in 2021. Topics covered in 2023 included working
conditions in the supply chain and case studies relating to humanrights, responsible procurement, various corruption risks andenergy efficiency. The training program was overhauled in 2023,
with the introduction of pathways suited to each employee's
work environment (Retail, Office, Operations).
Kering's Compliance Officers also benefit from regularpersonalized training, and the Group's internal auditors havebeen trained on the key factors involved in assessing anticorruption procedures. The Compliance department also delivers
regular on-site training courses to educate employees about
corruption risks. Almost 3,500 employees worldwide took one ofthese courses in 2023.
As well as providing training, Kering also runs an ongoingprogram to inform employees and managers and raise theirawareness. All new recruits are issued with a copy of the Code of
Ethics and are required to follow the ethics training program forthe current year. The Group's intranet includes an Ethics &Compliance section in French and English, giving ready access topolicies and procedures, along with a list of compliancemanagers at the Houses and structures.

Sustainability
Ethics, the cornerstone of our business2.3.2 Relationships with business
partners
Since 2013, Kering's Code of Ethics has included the Suppliers'
Charter, which sets out in detail Kering's specific expectations of
its business partners on ethics, social and environmental issues.
For any contractor working for Kering or one of its Houses,
notwithstanding any contractual clauses, a precondition of thebusiness relationship is that suppliers commit formally toapplying high ethical standards themselves and to ensuring thepreservation of human rights.
Section 4 "Working together to build sustainable and socially
responsible supply chains" provides details of the expectations of
Kering from its suppliers, its Suppliers' Charter, the way in which
it applies its Sustainability Principles in supply chains, theHercules oversight and compliance system for Group suppliers,
and the findings of audits carried out in 2023.

2.4 Whistleblowing procedure for reporting unethical conduct
2.4.1 Whistleblowing system
Introduced in 2005, Kering's whistleblowing system wasstrengthened in 2018 to ensure full compliance with France's
Sapin II Law and again in 2023, partly to meet the requirements ofFrance's Waserman Law. It is accessible to all employees andinterns of the Group and its Houses, people whose working
relationship with the Group has ended and people who haveapplied for a job with the entity concerned (where theinformation was obtained as part of the relationship or
application procedure), shareholders and people involved in
Kering's Annual General Meeting, but also external andtemporary personnel, particularly those working for external
partners or service providers under contract with the Group or its
Houses.
The whistleblowing system makes it possible to report concerns
internally via two channels. Concerns can be reported locally tothe person's direct or indirect manager, employee
representatives or members of the local compliance network(Local Compliance Officers and Brand Compliance Officers); or
centrally to the Group Chief Compliance Officer or the Ethics
Committees, which can be contacted by email or via an external
independent hotline that can take calls 24/7 in around40 languages.
The system may be used to report any of the following:• a criminal offense;• a breach or an attempt to conceal a breach of an international
commitment, of an instrument of an international organization
adopted on the basis of such a commitment, of European
Union law or of any other law or regulation;• conduct or situations that are contrary to the Group's Code of
Ethics, Anti-corruption Policy or Human Rights Policy;• a threat or harm to the general interest.
Depending on the type of allegations made, investigations arecarried out either internally or via previously selected external
independent firms that specialize in the subjects concerned.
Reports are handled in a uniform way so as to comply with the
key principles of such investigations, including confidentiality
and the absence of retaliations, which Kering formally forbids.
This protection is clearly stated each year in the Ethics &Compliance e-learning program.

Communication with employeesof Group suppliers
Since 2018, the Group's whistleblowing system has been open to
employees of suppliers and service providers with which Keringand its Houses have direct business relationships. All suppliers
and service providers have been informed accordingly.
A communication campaign aimed directly at the relevant
employees of suppliers has been adopted to ensure that they are
fully informed. To achieve this, an email has been sent to
suppliers by the Group Ethics Committee with the support of allCEOs of the Group's Houses. The information can be accessed at
any time via a dedicated website and has been translated into
15 languages. This communication campaign takes two forms:
displays at relevant locations within supplier and serviceprovider sites in order to gain the greatest visibility (cafeteria,
locker rooms, site entrance, etc.), and a prospectus that is given
directly to employees. Both the displays and the prospectus list
the Group's six major ethical principles: compliance with laws
and regulations; prohibition of any form of corruption, fraud,money laundering or conflict of interest; respect for human rights
and fundamental freedoms; protection of the health and safety ofall; respect for the integrity and dignity of all; and protection of
the environment. The level of detail is adjusted according to therecipients, to give specific examples of what is expected in eachcase (including the refusal of forced labor, the refusal ofrecruitment fees paid by employees, special attention paid tovulnerable people, access to suitable washroom facilities anddecent dormitory conditions where applicable, the free disposalof salaries and personal documentation, respect for privacy,
access to appropriate personal protective equipment, etc.).
The documents also remind employees of the whistleblowing
system and how to use it.
This information and communication campaign is refreshedregularly to cover all new suppliers and service providers of theGroup and its Houses. The supplier social audits conducted eachyear (see section 4.2) include checks on the effective circulationof this information to all workers (awareness of the system,
display and issue of the documentation, etc.).

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Sustainability
Ethics, the cornerstone of our business2.4.2 Key figures on inquiries addressedto the Ethics Committees
In 2023, Kering's three Ethics Committees received 80 queries
from employees of the Group or its suppliers.
On the 80 queries received, 11 were not pursued because they did
not relate to ethical matters or because they were the subject of aparallel investigation, three were passed on to Compliance and
one was a question about how to refer matters to the Ethics
Committee.
Of the remaining 65 queries, qualified as alerts, 35 were made to
the Committees directly (by email) and 30 via the Group's ethics

Alerts made in 2023

hotline. 29 of the 65 alerts were made anonymously, and thosethat were not made anonymously were analyzed by gender.
55 of the alerts gave rise to an investigation by the Committee
contacted and 10 were not investigated because the plaintiffs
wished to remain anonymous despite the fact that the reported
allegations concerned their personal situations, or because of alack of response or follow-up by the person who issued the alert,
making it impossible to proceed with an investigation of theirpersonal situation.
54 of the alerts had been resolved and closed by December 31,
2023, while 11 were still under investigation, mainly because they
were made at the end of the year.

Reasons behind the 65 alerts received in 2023
1.5%

65
54
81.6%

Behavior andmanagement

11
Closed alerts asof Dec. 31 2023

Opened alerts
as of Dec. 31
2023

Health andsafety15.4%

Alignment withinternal policies

1.5%

Alignment withlocal regulations

TOTAL

Code of Ethics breaches in the 54 cases
closed in 2023

Investigations into the 65 alerts
received in 2023

30%
10

55

No investigation

Investigations
conducted

Breaches foundin 16 cases

70%

No breaches
found in 38 cases

Of the 65 alerts received, 53 involved allegations related tobehavior and management, with 11 relating to harassment, six
relating to discrimination and one relating to both harassment
and discrimination.

Of the 54 alerts closed as of December 31, 2023,
recommendations were given in 43% of cases, employees
received a warning in 9% of cases, employees were dismissed in
17% of cases and training was given in 24% of cases.

In relation to those 65 alerts, 16 breaches of the Code of Ethics
were found, including three relating to harassment and none
relating to discrimination.

These operational recommendations and remedial actions may
take place where the Code of Ethics has been breached, but also
where no breach has occurred but the investigation has identified
areas for improvement.

Recommendations about remedial action to be taken were madeon a case-by-case basis. Remedial actions were taken by theentities concerned (dismissals, trainings, warnings etc). For
example, after an employee was found to have acted in an
inappropriate and aggressive way, his employment contract was
terminated.

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Ethics reporting documents and their key figures are shared eachyear with the Group's Top Management and the Sustainability
Committee of the Board of Directors, all information having
previously been anonymized and stripped of personal
information.

Sustainability
Ethics, the cornerstone of our business

2.5 Protection of human rights: an approach rooted
in the Group's values
2.5.1 Human rights Policy
Kering is committed to complying with the principles set out inthe Universal Declaration of Human Rights and the fundamental
conventions of the International Labour Organization (ILO), andto implementing the United Nations Guiding Principles on
Business and Human Rights (UNGP). This commitment torespecting human rights throughout the Group and its supply
chains is reflected in and expanded upon in all of its internal
policies and reference documents.
Kering's Human rights Policy covers all of its operations andsupply chain, and brings together its commitments to respecting
human rights as set out in its Code of Ethics, Suppliers' Charterand Sustainability Principles. Kering's approach to the protectionof human rights related to specific risks may be accessed on
Kering's website, which also contains its publications under the
California Transparency in Supply Chains Act of 2010, the UK
Modern Slavery Act 2015, the Australian Modern Slavery Act 2018
and Regulation (EU) 2017/821 of May 17, 2017 on metals and ores
from conflict-affected and high-risk areas. In addition, Kering's
Duty of Care plan, drawn up in compliance with French Law
no. 2017-399 of March 27, 2017 on the Duty of Care, is outlined inthe "Duty of care plan" section of chapter 5 in this document.

2.5.2 Shared governance and central
systems deployed at Group level
Human rights governance spans various departments, startingwith Compliance (responsible for monitoring the implementationof undertakings established by Kering's Human rights Policy),
Human Resources (including the Inclusion & Diversity
department that reports to it), Sustainability, Internal Audit andSecurity. It also extends to employee representative bodies.
Human rights considerations are included in the annual
performance appraisals of Group executive officers. 30% of the
Chairman and Chief Executive Officer's annual variable
remuneration is linked to the achievement of non-financial
criteria, including the operational roll-out of the 2025
Sustainability Strategy.

2.5.3 A continuous improvement
approach
Kering regularly revisits key principles relating to ethics andhuman rights. A gap analysis was performed in 2017 to pinpoint
differences between the Group's internal practices and theUNGP. The findings of this analysis provided input for the 2019
update to Kering's Code of Ethics and for a dedicatedcommunication plan targeting employees of the Group's direct
suppliers with specific details on how to use the whistleblowing
system (see section 2.3).

In the same vein, the due diligence procedure aimed at
identifying, assessing and preventing the impact that Group
operations have or might have on human rights in the supply
chain and the Group's direct operations is seen as a continuous
process that requires constant adaptation. This due diligence is apart of the Duty of Care Plan and the Hercules system (seesection 4.2.1).
In 2023, as detailed in the Duty of Care Plan (see chapter 5), theGroup reviewed its map of risks, particularly those pertaining tosevere impacts on human rights and fundamental freedoms,
health and safety, and the environment resulting from theGroup's operations and supply chain. The risks listed above wereassessed separately with respect to (i) the internal operations of
Kering and the Houses, (ii) the operations of their first-levelsuppliers, and (iii) the sourcing of raw materials. The exercise
involved interviews with 127 Group employees, a review ofalmost 2,000 documents, and the scoring of thousands ofcountry-specific risks based on 56 third party-supplied risk
indices.
The Group has also carried out various studies to identify areas
for improvement:• study conducted with GoodCorporation (2020), an
independent external organization specializing in businessethics, to analyze, with regards to major reference texts(UNGP, OECD, etc.), Kering's governance and management of
human rights in the supply chain, and its handling ofwhistleblowing alerts received by its Ethics Committees,
particularly in view of the UNGP principle 31. The study
enabled Kering to update the list of risks that the Groupconsiders salient with regard to human rights (notably forcedlabor, child labor in raw materials sourcing, discrimination,
health and safety, living wages for suppliers' employees andharassment). Various areas for improvement were alsopresented to members of the Luxury Committee;• Human rights risk analyses relating to certain key raw
materials used by the Group;• between 2021 and 2023, a series of living wage analyses andassessments were carried out with over one hundred ofsuppliers (production) in order to establish risks and consider
the issues involved;• in late 2023, an analysis of on-site contractors was launchedacross the Group and its Houses to assess areas for
improvement in regards to social topics.
Alongside these analyses, Kering also monitors various humanrights risk indicators provided by the external platform Verisk
Maplecroft.
Finally, Kering and its Houses have adopted a number of humanrights initiatives such as:• the collaboration between Gucci and the Indian social
enterprise "I was a Sari", which is continuing to pursue its aimof helping underprivileged Indian women to become more
independent through the production of upcycled products
made from used saris;• Saint Laurent renewed its support for "charity: water", whichworks with numerous local organizations to bring safe
drinking water to people who lack it, while helping young
girls attend school;

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Sustainability
Ethics, the cornerstone of our business• initiatives to support the integration of refugees: in 2023,
Gucci and Bottega Veneta received the "Welcome. Working
for Refugee Integration" award from United Nations Refugee
Agency UNHCR, recognizing their efforts in 2022.
Some Houses have gained certification for their practices:• SA8000 (Social Accountability 8000) certification for Gucci(since 2007) and Bottega Veneta (since 2009). Gucci is also amember of the Advisory Board of SAI (Social Accountability
International), which is the organization that developed theSA8000 standard;• RJC (Responsible Jewellery Council) certification, whichattests to a company's respect for the environment andworking conditions in the jewelry and watchmaking sectors.
Pomellato, Dodo, Boucheron, Qeelin and Gucci (also RJC
CoC-certified) are certified.

2.5.4 Results of measures taken by
the Group to protect human rights
section 3 sets out findings and key performance indicatorsconcerning the protection of human rights within the Group's
operations in terms of human resources, occupational health andsafety, and labor relations. section 2.4 describes performancemonitoring for the Group's ethics and compliance procedures.
The findings of the social audits carried out within supply chainsare presented in section 4.2.3.
A cross-reference table between Kering's human rights approachand the United Nations Guiding Principles Reporting Framework
is available in the Sustainability/Measuring our impact/Reportingand indicators section of Kering's website.

2.6 Contribution to professional organizations and other institutions
Kering takes a global approach to dialogue with stakeholders,and is ever-attentive to the major issues they face. It actively
promotes its vision of responsible and sustainable growth, andtakes part in a number of initiatives involving business andindustry-specific associations in that regard. Kering's
contribution to those associations is aligned with the Group's
Sustainability approach and is intended to encourage thesustainable growth of the Luxury industry. Kering is particularly
careful to ensure that the Group is not a member of any
professional or sector association that may have positions thatare controversial in regard to the public interest or do not comply
with the rules established by the Group for its stakeholders.
To ensure this:• the Group has an internal disclosure procedure, including areferral to the Group Compliance department whenever it
seeks to become a member of a professional association;• a monitoring of developments and work related to theseassociations is ensured by certain head-office employees;• if there is any doubt about an initiative or developments in agiven situation, those in charge of representing Kering in
those associations can refer the matter to the Compliancedepartment.
Kering complies fully with the rules established by the High
Authority for Transparency in Public Life (HATVP) in France,
where the Group's head-office is located, and by the European
Union's transparency register. Each Group employee, including
members of Kering's Executive Committee, must comply with its
Code of Ethics, and Kering's contribution to these professional
associations and any lobbying activities must comply with theprinciples established in that Code.
Kering’s contributions to these associations are determinedaccording to predetermined grid of contribution that are either
fixed or proportional to the Houses’ revenue.

Kering and its Houses allocated €1,939,735 to institutional affairs
worldwide in 2023, including €1,587,495 of contributions tobusiness and industry-specific associations. The main
contributions were as follows:• €383,000 to the Camera Nazionale della Moda Italiana, which
is helping to develop a responsible fashion industry;• €249,593 to the Comité Colbert, which promotes the Luxury
industry and its specific features with respect to publicauthorities in France and Europe, and which is working tooutline the industry's 2050 carbon trajectory via itssustainability committee;• €174,957 to Confindustria, which represents Italiancompanies and helps drive their exports.
Of that total, €352,240 was spent on lobbying, solely via
organizations of which the Group is a member. This expenditureis intended to encourage the sustainable growth of the Luxury
industry and is entirely consistent with the Group's Sustainability
Strategy.
In line with Kering’s Code of Ethics, no financial contributions
were made in 2023 in the name or on behalf of the Group to any
political organization in exchange for any direct or indirectmaterial, commercial or personal advantage.
The amount allocated to institutional affairs breaks down as
follows:
In euros

Lobbying or similar
Funding of political organizations
Contributions (business or industry-specificassociations, think tanks)
Other

TOTAL
Scope

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2023
352,2400
1,587,495
0

1,939,735
100%

Sustainability
The employee experience at the heart of the Group’s Human resources strategy

3 - THE EMPLOYEE EXPERIENCE AT THE HEART
OF THE GROUP’S HUMAN RESOURCES STRATEGY
Kering places the employee experience at the heart of its Human Resources Strategy. The sections of this chapter correspond to key
milestones in the career of each employee.

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Sustainability
The employee experience at the heart of the Group’s Human resources strategy

3.1 The Group’s Human resources profile
3.1.1 Breakdown of the workforce (1)The Group had 48,964 employees as of December 31, 2023.
There were 47,850 total employees within the reporting scope asof December 31, 2023.

Indeed, integrations performed in 2023 – among which UNT,
Creed – are not included in the scope of social reporting for 2023
but will be included from 2024. They account for around 2.3% of
the Group’s workforce.

Breakdown of the workforce as of December 31, 2023 (men/women managers and men/women
non-managers) by region(2)Managers
2023
Africa/Middle East
Asia
Eastern Europe
FranceNorth America
OceaniaSouth America
Western Europe (excluding France)

Women
87
1,665
31
713
621
63
58
1,569

Men
86
939
18
545
480
39
52
1,439

Non-managers
Women
558
8,732
1,265
2,215
2,750
305
357
9,149

4,807

3,598

25,331

Subtotal

TOTAL

8,405 (17.6%)

Men
539
3,859
302
1,328
2,099
118
365
5,504
14,11439,445 (82.4%)(1) The coverage rate calculated as a percentage of the Group’s workforce as of December 31, 2023, is 100% for all indicators, with the exceptionof the "Number of workers with disabilities" indicator, which is 85.2% (excluding the United Kingdom and the United States). UNT, Creed andGinori 1735 account for 2.3% of total employees, but because they were acquired only recently, they will be included in the scope of reportingfrom 2024. Figures relating to entities sold by the Group in 2023 have been excluded from the scope of workforce-related reporting.
(2) The table showing the breakdown by region includes the following countries and territories: Africa/Middle East: Bahrain, Dubai, Kuwait,
Qatar, South Africa, Saudi Arabia, United Arab Emirates, Türkiye; Asia: Mainland China, Guam, Hong Kong SAR, India, Japan, Macao SAR,
Malaysia, Philippines, Singapore, South Korea, Thailand, Taiwan, Vietnam; Eastern Europe: Croatia, Czechia, Hungary, Romania, Russia,
Serbia; France; North America: Canada, United States; Oceania: Australia, New Zealand; South America: Aruba, Brazil, Chile, Mexico,
Panama; Western Europe: Austria, Belgium, Denmark, Germany, Greece, Ireland, Italy, Luxembourg, Monaco, Norway, Netherlands, Portugal,
Spain, Sweden, Switzerland, United Kingdom.

Breakdown of the workforce as of December 31, 2022
(men/women managers and men/women non-managers) by region(1)Managers
2022
Africa/Middle East
Asia
Eastern Europe
FranceNorth America
OceaniaSouth America
Western Europe (excluding France)
Subtotal

Women
69
1,576
28
587
515
59
65
1,423
4,322

TOTAL

7,595 (16.4%)

Non-managers
Men
79
934
18
419
386
38
40
1,359
3,273

Women
500
8,822
1,308
2,032
2,330
319
331
9,108
24,750

Men
492
3,884
370
1,171
1,877
121
324
5,617
13,856

38,606 (83.6%)(1) The coverage rate calculated as a percentage of the Group’s workforce as of December 31, 2022, is 100% for all indicators, with the exceptionof the "Number of workers with disabilities" indicator, which is 86.4% (excluding the United Kingdom and the United States). Maui Jim
accounted for 2.2% of total employees in 2022, but because it was acquired during that year, it was included in the scope of reporting from
2023. Figures relating to entities sold by the Group in 2022 have been excluded from the scope of workforce-related reporting.

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Sustainability
The employee experience at the heart of the Group’s Human resources strategy

Breakdown of the workforce as of December 31, 2021
(men/women managers and men/women non-managers) by region(1)Managers

Non-managers
Women

Women

Men

50
1,451

71
865

376
8,239

388
3,502

Eastern Europe
France

28
468

17
361

1,270
1,845

370
1,039

North America
Oceania

485
58

339
27

2,006
281

1,632
95

South America
Western Europe (excluding France)

63
1,260

32
1,302

284
8,384

298
5,128

Subtotal

3,863

3,014

22,6852021
Africa/Middle East
Asia

TOTAL

6,877 (16%)

Men

12,45235,137 (84%)(1) The coverage rate calculated as a percentage of the Group’s workforce as of December 31, 2021, is 100% for all indicators, with the exceptionof the "Number of workers with disabilities" indicator, which is 86.8% (excluding the United Kingdom and the United States). Lindberg
accounted for 1.8% of total employees in 2021, but because it was acquired during that year, it was included in the scope of reporting from2022. For other companies acquired or sold in 2021, representing 1.3% of the Group’s workforce, the only data collected were for theworkforce, training and industrial relations indicators.

Change in the regional breakdown of the workforce as of December 31, 2023, 2022 and 2021 (%)
2023
10.0%
France3.4%

EasternEurope

31.8%
Asia

2.7%

Africa/Middle
East

2022
36.9%

WesternEurope(excludingFrance)

1.7%

37.9%

9.1%
3.7%

EasternEurope32.9%

Oceania

Africa/Middle
East

12.4%

North
America

WesternEurope(excludingFrance)FranceSouth
America

1.1%

2021

1.6%

Asia

2.5%

38.3%

8.8%

WesternEurope(excludingFrance)France4.0%

EasternEurope

1.6%

SouthAmerica

33.5%

Oceania

Africa/Middle East

1.2%

11.1%

South
America

Asia

1.1%

2.1%

Oceania

10.6%

North
America

North
AmericaAge structure of the permanent workforce: managers (18.4%) and non-managers (81.6%) in 2023 (%)
Age group
Total

Managers <

0.0%
1.2%

> Non Managers
Under 25

4.6%

4.6%

25 to 30

21.5%

22.7%

31 to 40

8.4%

32.4%

40.8%

41 to 50

6.2%

13.9%

20.1%

1.6%
0.7%
0.2%

51 to 55

4.8%

6.4%

56 to 60
3.9%

over 60
1.5%

3.2%
1.3%

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Forging strategic partnerships

Age structure of the permanent workforce
in 2023 (%)
0.8%

25.7%

Baby Boomers(born between
1945 and 1960)

Generation X(born betzeen
1961 and 1980)

59.3%

14.2%

Generation Y(born between
1981 and 1995)

Generation Z(born after 1995)

Employee profiles (%) as of December 31, 2023,
by area of activity(1)55.2%
Employees
workingin sales

21.1%
Employees
working in
production
23.7%
Employees
workingin other areas(1) Sales: employees working in stores, e-commerce and wholesale.
Production: employees working in production (workshops,
tanneries, etc.). Other areas: employees working in support orlogistics functions.

3.1.2 Establishing a long-term hiring
policy through international
partnerships
Recruiting the best talent by encouraging diversity, training
young people in craft skills, and integrating and developing talent
are central to Kering’s HR strategy. In most Houses, the HR
function has begun discussions about managing jobs and careers(strategic workforce planning).
Kering Keys
Retail Chine
21-month program
including a seriesof rotations withinstores of theparticipating
Houses.
The program began
in January 2022,with 13 graduates
selected out of
11,000 applicants.

— 198

Kering Keys
Retail France
First graduate
program in France
dedicated to luxury
retail. Jointly
developed with
non-profit Atout
Jeunes Universités,the program
combines learning
about jobs in retailand bespoke
training. The firstprogram began in
September 2023,
with a cohort of 18
graduates.

Kering KeysManagement
Program giving
young graduates
speaking an Asian
language theopportunity to gain
experience in threeareas at Kering’s
headquarters inpositions ofresponsibility, toacquire in-depth
knowledge of theGroup and thesector. Launched in
2023, the firstprogram took on six
young talents
selected out of
1,200 applicants.

KERING - 2023 Universal Registration Document

Kering is continuing its ambition of forging international
partnerships with prestigious business and design schools
worldwide:• MOOC (Massive Open Online Course) on Fashion andSustainability in partnership with the London College ofFashion (LCF);• Fashion Values program with the Centre for Sustainable
Fashion (CSF), part of the London College of Fashion (LCF):
this 12-month program combines theory and practicalexperience in the form of a hackathon. An end-of-year prize isawarded on the themes of nature, society, economy andenvironment. In 2023, Fashion Values focused on the themeof: "How can fashion value cultures and wellbeing?";• Sustainability Chair jointly created with the Institut Françaisde la Mode (IFM) to further scientific research in connection
with fashion and sustainability. Around 1,500 students are
educated in sustainability concepts each year by IFM as partof a mandatory 30-hour course. The Chair also offers training
leading to a qualification as part of the "projects that make acontribution" program. In 2023, an innovation-led
partnership was formed with the Bezalel Academy of Arts andDesign in Jerusalem, further enhancing the Chair’s activities.
Bezalel and IFM students are invited to work together on a
problem combining sustainable fashion and circularity;• Kering Certificate of Influential Luxury program with HEC
Paris, to develop and identify young people with highpotential who could join the Group;• Various graduate programs (see below), including different
job rotations to learn about the various aspects of the Luxury
goods industry. These also include a specific training
program to understand the stakes of the Luxury industry andbuild their career. More than 60 talented young people
benefit from these inclusive programs, which foster theGroup’s cultural, socio-economic and age diversity, thereby
strengthening its employer brand.

Kering Keys:
Supply Chain
24-month programthat allows young
engineering
graduates toprepare for the jobsof the future insupply chain andlogistics, while alsooffering leadershiptraining. Launchedin 2021, theprogram has
17 graduates.

Kering Eyewear:
Eye For Talent
Launched in 2022,
Eye for Talent is
Kering Eyewear’s
first graduate
program. The 24month program
offers threerotations indifferent markets(Italy, United Statesand Denmark),
including a rotation
within Lindberg.

Gucci GradeThis program
dedicated to retailprofiles includes
several rotations
within various
departments at
Gucci (sales,
merchandising andcustomer service),including in-store
experience. It was
extended in 2022
to cover supply
chain and
operations.

Sustainability
The employee experience at the heart of the Group’s Human resources strategy

The Group’s Houses have also established local partnerships anddeveloped craft training at centers of excellence in order toensure the promotion and protection of the Group’s expertise.
These are presented in section 6.2.1.

Recruiting the best talents
Kering uses the most effective tools and social media platforms
to recruit the best profiles. The Group's Houses keep investing tooffer applicants the best possible experience through innovativeand inclusive solutions, such as the launch of the MyBoucheron
onboarding platform. Kering has also launched the Dare to Refer
program, offering a referral bonus to employees when they refersomeone who is successfully hired. Close to 3,500 applicants
have been referred, with a recruitment rate of 24%.

A training program on inclusive recruitment has been introduced
for the entire Kering group to help recruiters and managers
identify common biases in the recruitment process and minimize
their impact. The program, which has already trained employees
in charge of recruitment, covers all stages in the recruitment
process: creation of the vacancy, applicant selection, interview
and the new employee’s onboarding into the company. In
addition, the Houses have implemented fully fledged inclusive
recruitment strategies, such as Balenciaga’s Hiring Pact, whichtakes a 360° approach to drive real-world progress in the area ofinclusion and diversity.

Breakdown of fixed-term and permanent contracts among new hires (%)
2023

2022
82.1%

Permanent

17.9%

Fixed-term
contracts

2021
80.1%

82.2%

Permanent

Permanent

19.9%

17.8%

Fixed-term
contracts

Fixed-term
contracts

13,403 employees were hired on permanent contracts in 2023.
Out of the total number of new hires, including fixed-term contracts and apprentices:• 69.4% are women;• 90.7% are non-managers;• 32% are from Generation Z, 53.4% from Generation Y, 14.1% from Generation X and 0.5% were born before 1960.

Breakdown of temporary employees by region
In 2023, Kering had a monthly average of 1,994 temporary employees across all its Houses.
2023

2022

2021

Africa/Middle East
Asia

85
965

6
922

39
868

Eastern Europe
FranceNorth America
OceaniaSouth America
Western Europe (excluding France)

1
150
42
15
20
716

21
195
12
0
11
963

23
136
29
2
10
606

1,994

2,130

1,713

TOTAL

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Breakdown of permanent employee departuresby category (%)
2023

3.0%

12.9%

Departureby mutualagreement

Leavings initiatedby the employer

0.2%

2.9%

Other
departures

Dismissal for
economic reasons

Departures of permanent employees, on all grounds, totaled
11,275 in 2023, of which 8,975 were on the employee’s initiative(79.6% of departures) and 1,457 on the employer's initiative(12.9% of departures).
Overallturnoverat Kering

2023

2022

2021

22%

20%

20%

79.6%

1.4%

Leavings initiatedby the employee

Retirements

2022
11.4%

2.0%

Leavings initiatedby the employer

Departureby mutualagreement

1.5%

0.2%

Dismissal for
economic reasons

Other
departures

83.6%

1.3%

Leavings initiatedby the employee

Retirements

2021

3.3%

10.6%

Departureby mutualagreement

Leavings initiatedby the employer

0.2%

Dismissal for
economic reasons

2.7%

Other departures

1.3%

Retirements

81.9%

Leavings initiatedby the employee

3.1.3 Supporting organizationalchanges in a responsible manner
As part of Kering’s decentralization, each House supports its
employees facing organizational changes, for example in the
onboarding of employees from newly acquired entities.
In France, this policy involves monthly meetings of the Social
Development Coordination group, a body of HR managers fromthe Houses led by Kering’s Human Resources department, todiscuss organizational projects and their HR consequences andpropose individual redeployment solutions. It aims to assist
employees when an organizational change (such as a storetransfer or closure) is liable to have an impact on jobs.
In all countries and for all Houses, when departures are being
considered following reorganizations, efforts made to find newroles for employees go beyond those required by law, and priority
is given to voluntary mobility measures.
The European Works Council is also informed of the Group’splans and the associated organizational changes during its twoannual plenary meetings, at extraordinary committee meetings
as necessary, and at the meetings of its Select Committee. The
French Works Council is also informed annually of the Group’splans for organizational change.

3.2 Fostering employee development in a stimulating
and inclusive work environment
3.2.1 A long-term strategy forpromoting inclusion anddiversity on a local basis
Going further than its commitment to social responsibility, Kering
believes that inclusion and diversity are sources of creativity andinnovation, and thus of economic performance. Innovation
prospers in an environment where all voices are heard andeveryone’s contribution is appreciated, respected and treatedequally. This is why Kering makes every effort to establish aculture of inclusion at all levels of the organization and provides
its teams with an open-minded, diverse and stimulating work
environment, thereby contributing to the Group’s success. Kering
pays close attention to diversity in employee profiles (gender,
culture, origin, sexual orientation, identity, religious belief, age
and disability), which it recognizes as a rewarding source ofcollective intelligence.
In 2019, Kering signed up to the UN’s Supplier Code of Conduct tocombat discrimination against LGBTIQ+ people, and joined theOpen To All coalition, which combats all forms of discrimination
against employees, visitors and customers, including— 200

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discrimination based on ethnicity, nationality, gender, gender
identity, sexual orientation, religion and disability.
Within the Human Resources department, an Inclusion andDiversity (I&D) team defines the Group’s strategy and priority
commitments, guiding all of the Houses.
Each House set up an Inclusion and Diversity Committee in 2020,
sponsored by a member of its executive team. These committees
are made up of representatives from the various departments
and regions. Their role is to transpose the Group’s inclusion anddiversity strategy within their respective entities, while adapting
it to their specific cultures and environments. The initiative issponsored by Kering’s Chairman and Chief Executive Officer. In
2022, to make the numerous initiatives led by the Group, itsregional entities and its Houses more impactful andcomplementary, Kering adopted an overall strategy supported bya new governance arrangement with a regional dimension,
particularly in the Americas and Asia-Pacific. Kering recognizes
that each country and each culture have their own specificcontext, with unique challenges and opportunities to changementalities to create an increasingly inclusive culture.

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The employee experience at the heart of the Group’s Human resources strategy

Kering’s efforts are centered around six key areas of diversity
shared by all the Houses:• gender equality;• diversity in terms of cultural profiles and origins;• equal opportunities, regardless of socio-economic
background;• equal treatment and opportunities regardless of gender
identity and sexual orientation;• multi-generational diversity at work;• inclusion of disabled people at work.

3.2.2 Promoting an inclusive culture
with a grassroots impact
on employees
To foster an inclusive culture on a lasting basis, Kering organizes
conferences with personalities and external experts, as well as
directors from Kering and provides its employees with online
training courses on inclusion and diversity. In 2023, an additional"intermediary" module was made available to the I&D
community (sponsors, leaders and committee members).
Inclusion and diversity is one of the modules of the Ethics &Compliance mandatory annual training program, which in 2023
included case studies on gender equality and flexible working
when returning from parental leave.
The Kering Perspectives seminar was rolled out in 2023, with theHouses’ management committees, representing 872 hours of
training in 2023. This one-day seminar, bringing together
members of the Executive Committee and Kering’s global
department heads, is dedicated to raising awareness about howhuman bias works and providing ways of mitigating it, thereby
promoting inclusive leadership. The program is devised inpartnership with non-profit 093Lab, which helps young people

from Aulnay-sous-Bois (France) access the worlds of fashion
design and the visual arts.
Awareness campaigns are run throughout the year to coincidewith international days such as International Women's Day, Pride
Month, Global Diversity Awareness Month and the International
Day of People with Disabilities.
To promote an inclusive culture for LGBTQIA+ people, the Groupset up its "ALL" global internal network in 2019 to lead awarenessand networking efforts over the course of the year.
In 2023, Kering and its Houses worked hand-in-hand to make art
a means of demonstrating the richness of diversity and the powerof inclusion. Bottega Veneta launched the "I&D via Arts" project, aseries of awareness-raising events for employees organized atmuseums and other cultural institutions in 13 countries. Morethan 400 employees took part in these initiatives. Brioni, under
the aegis of the Creative Director and HR department, alsoorganized cultural visits to Rome for employees to give a more indepth understanding of issues relating to inclusion and diversity
from the perspective of art.

3.2.2.1 Establishing a culture of genderequality within the Group
While Kering addresses the issue of diversity in all its aspects,
particular emphasis is placed on equal opportunity. In 2010, theGroup was one of the first companies in Italy to sign the Women’s
Empowerment Principles, drafted by UN Women, and the United
Nations Global Compact. These principles offer guidance on how
to promote the presence and progression of women in business
and, more generally, in society.
Kering has set a target of achieving gender parity and pay equity
at all levels of the Group by 2025.

The Group’s action plan to promote gender parity focuses on three key priorities:
1. Instilling a culture of equality
within the Group

2. Fostering a good work-life balance

3. Developing an inclusive
and exemplary parental policy

through efforts to raise awareness anddedicated development programs– incorporated into all HR andmanagement processes (recruitment,
talent review, compensation, etc.);– rollout of the Women In Luxury (WIL)
internal network to promote genderequality in Italy, the United States,
Mexico, South Korea, Mainland China,
Japan and Singapore. Its work includes
organizing conferences, networking
sessions and communications
campaigns over the course of the year;– for the past seven years, Kering has
partnered the EVE program, whichenables 15 employees from various
Group Houses and countries to attend
seminars in Europe and Asia.

by means of a Group-wide framework
for all employees that promotes
wellbeing at work and equality for all
Many other initiatives have also been
adopted by Kering’s various Houses,
including remote working and flextime in
Italy and the United States, as well as
daycare centers for employees based in
France and nursing rooms for employees
in Hong Kong SAR and France.

Kering has been committed to a widereaching parental policy since 2017,supporting parents and helping to create aculture of equality within the Group.
Baby Leave, launched in 2020, allows allparents – regardless of gender or family
situation – to benefit from 14 weeks ofparental leave to care for a new child. This
policy also helps to combat the genderstereotypes encountered by women when
they apply for a new job, aim forpromotion or want to further their career.

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Following the engagement survey conducted in 2023 (seesection 3.2.3.3), discussion groups on gender equality wereorganized in France, Italy, the United States, China, South Korea
and Japan. The aim was to gain a better understanding of female
employees’ expectations and feelings with regard to well-being
at work, work-life balance and career development in order totake practical measures to improve women’s experience as
employees within the Group.
In addition, an action plan has been launched dedicated toachieving the Group’s goals in terms of equal pay, details of
which are provided in section 3.3.1.2.

Recognizing and assessing the impact of genderequality initiatives
In 2023, women accounted for 57.2% of the Group’s managers,
63% of the total workforce (62.9% in 2022, 63.2% in 2021), 31% of
its Tech workforce, 42% of Executive Committee members and
50% of its Directors (excluding Directors representing employees
as of December 31, 2023), making Kering one of the CAC 40
companies with the highest proportion of women in senior
management positions.
Kering was one of the leading companies in the France 2023
gender equality index, with a consolidated score of 88 points outof 100 for all of its Corporate entities and Houses in France.
Finally, Gucci obtained certification for gender parity in Italy in
2023, introduced as part of the country’s National Recovery and
Resilience Plan (Piano Nazionale di Ripresa e Resilienza),following an audit by Bureau Veritas. This certification is grantedon the basis of an assessment of 33 indicators spanning six
themes: culture and strategy, governance, human resourcesmanagement process, career opportunities for women, wageequality and attention paid to work-life balance. Gucci’s
commitment is reflected by the adoption of a three-year strategicplan with the aim of promoting concrete initiatives to support
gender equality.

3.2.2.2 Promoting the integration of people
with disabilities
As of December 31, 2023, the Group employed 696 (1.5%) workers
with disabilities (coverage rate of 85.2% excluding the United
Kingdom and the United States).
Kering reasserted its commitment to the integration of people
with disabilities with the European Empowering Talent
agreement signed in 2015. This agreement reiterates andreinforces the commitments made to employee representatives
in 2008 with regard to promoting the employment of people withdisabilities.
Each year, management presents a progress report to theEuropean Works Council on the agreement’s three pillars, which
include promoting diversity in general, and on the initiatives
undertaken by the Houses in the areas of gender equality andequal opportunity.
In 2022 and 2023, Kering Corporate and Balenciaga gave
employees the opportunity to take part in the Duo Day initiative,
allowing adults and young people from Local Units for
Educational Inclusion (ULIS) in France to experience a day in thelife of an employee.
The Group’s Houses in France and Italy also continue tooutsource work to the protected sector to promote theemployment of people with disabilities. Special service providers
employing workers with disabilities are called on for suchservices as printing, data entry, archiving, replying to unsolicited
job applications, catering, preparing mailshots, gift packaging
during the holiday season, and landscaping.

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Over the last few years, Gucci has implemented a more inclusive
working environment and customer experience, with initiatives
aiming to make stores more accessible, increase representationof people with disabilities within teams and provide employeeswith training to make them more aware of accessibility andinclusion. In North America, Gucci was recognized for the second
year in a row as the Best Place to Work for Disability Inclusion by
the Disability Equality Index®, a joint initiative by two majororganizations to protect the rights of people with disabilities: theAmerican Association of People with Disabilities (AAPD) andDisability:IN, a global network to encourage the inclusion ofpeople with disabilities supporting over 400 companies. The
House has also stepped up opportunities for employee
engagement by taking part in internal groups on disability. The
first group, Guccibility, was set up in the United States and has
been extended to Italy.

3.2.2.3 Working with partners to promoteintergenerational diversity
Intergenerational diversity is part of Kering’s Inclusion andDiversity strategy and a central aspect of concrete measurestaken within the Group’s Houses.
To preserve and pass on their expertise, several of the Group’s
Houses – namely Gucci, Bottega Veneta, Brioni, Pomellato andBoucheron – have created vocational schools and training
programs, with the support of trade associations. The aim is to
give young people the opportunity to learn a trade that will
ultimately enable them to join one of the Group’s Houses or findemployment elsewhere in the luxury or fashion industries (seesection 6.2.1). In 2023, Bottega Veneta took its commitment tocraftsmanship even further with the launch of Accademia Labor
et Ingenium, a new school that aims to encourage the next
generation of creative talent. The name is inspired by the brand’sfounding values as displayed in its original coat of arms, "Labor et
Ingenium", which means "Craft and Creativity".
In France, Kering signed a charter in 2022 for the integration ofyoung people, vulnerable individuals and people with disabilities,
with the aim of working with the French Ministry of Labor to
support them in the job market. Kering is working with nonprofits Télémaque and Energie Jeunes to make concrete progressin terms of equal opportunities, by making it easier for all
employees to volunteer during working hours (see Giving Back).
Since 2019, Balenciaga and Boucheron have partnered with nonprofit ViensVoirMonTaf!, which works to combat social
determinism and school dropout by helping high-school students
in underprivileged areas find work experience placements.
In show of its commitment to fostering intergenerational
diversity, in 2022, Kering signed a commitment alongside
31 other companies to enhance the role of employees aged
50 and over, an initiative led by the L’Oréal group and Club
Landoy and sponsored by France’s Ministry of the Economy,
Finance and Recovery. The charter features 10 key commitments
regarding recruitment, training, career progression, wellbeing at
work and preparation for retirement, but also awareness of agerelated stereotypes. In 2023, Kering contributed to the
publication of four indicators that revealed average, anonymousand aggregated data from signatory companies on theemployment rate and hours of training of over 50s, therecruitment rate of over 45s as well as the staff transfer rate.
These indicators allow for a better understanding, along with thecharter’s signatories, of the societal issues faced and concretemeasures that can be taken by the company. By developing andsupporting the careers of our employees aged 50 and over, Kering
encourages the transfer of know-how, which is essential in the
Luxury goods industry, from generation to generation.

Sustainability
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Kering Corporate also signed the GEPP strategic workforce
planning agreement in 2022, setting out measures to support
employees aged 50 and over, such as regular health checks paid
for by the company.

3.2.3 Development of talent and skills
Developing skills and talent is at the heart of Kering’s humanresources policy and structured around three main aims:• reviewing the fundamentals of the Group internal mobility
policy;• keeping learning delivery, both in person and online;• increasing use of the Group’s internal platform to support
employee development.

3.2.3.1 Managing and supporting talent,fostering mobility and professional
development within the Group
Kering has set itself the priority of better identifying anddeveloping talent and has for this purpose established processes
and tools geared toward helping employees constantly expand
their career prospects and enhance their skills through mobility
and career opportunities.

1. Developing a shared culture of performance
All Group employees have a People Performance andDevelopment Annual Review with their manager to assess theirperformance relative to previously set targets and theemployee’s development needs. These reviews, which take place
between January and March, strengthen the Group’s dynamic
approach to performance appraisals, combined with regularcheck-in conversations.
These reviews are the opportunity to confirm or reconfirm who
are the talents who should be included in Talent Reviews. These
Talent Reviews provide the opportunity to share up-and-coming
talents at Group level by function, their respective development
and career path. Members of Kering’s Executive Committee play
an active part in this process and attend synthesis meetings foreach department. Since 2021, the identification process has been
expanded to include retail in order to help build talentdevelopment plans and anticipate the organization’s needs.
These Talent Reviews make it possible to create a shared pool of
pre-identified internal talent, and prepare succession plans for
key positions (members of the Houses’ Management
Committees).

This work on fostering internal talent is supplemented by efforts
to identify external talent through a continuous talentmonitoring. One person, who now reports to the Deputy CEO incharge of Brand Development, has the dedicated role ofidentifying and watching creative talent within the Group’s
Houses. These succession plans are presented to the Board of
Directors’ Appointments Committee.
These processes for pre-identifying talent both within andoutside the Group make it possible to find the right person whensomeone leaves a key role. They address the problems that arise
should these positions become vacant, in addition to theexpertise developed by staff within each of the Houses,
characterized by iconic products and a unique history. This
expertise ensures continuity in each House’s offering, particularly
during the transition between two Creative Directors or Chief
Executive Officers.
Gender balance analysis is always included in the talent review
and succession planning processes.

2. Promoting mobility and careers
within the Group and its Houses
Professional mobility is a pivotal way of developing skills, offering
career prospects and giving everyone the opportunity to growwithin the Group.
As part of its internal mobility policy, employees can apply for an
opportunity after 18 months in their job. They can also register asinternal applicants and have confidential contact with internal
recruiters before applying. Meetings of the HR community wereorganized to facilitate ongoing dialogue on recruitment needs
and available people, in addition to dedicated training and tools
for the whole community. The introduction of this new policy was
backed up by a communication campaign. In 2023, more than
6,700 employees expressed their wish to move to a new role
within the Group. During the same period of time, there weremore than 2,300 internal transfers.

3.2.3.2 Creating new impetus in employee
training
In 2023, Kering devoted a budget of more than €42 million toemployee training, corresponding to 1.4% of the total Grouppayroll. As a result, 681,915 hours of training (excluding safety
training) were provided during the year, an increase of 12.4% on2022; 51,933 employees (including leavers) took at least one
training course.

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Breakdown of employees who received training by manager/non-manager and by gender (%)
83.6%

83.2%

82.5%

63.2%

36.8%

16.4%

2021

16.8%

62.6%

37.2%

37.4%

17.5%

2022

2023

Non Managers
Managers

Continuous learning is one of the Group’s priorities for engaging
and retaining employees. At the end of 2021, an internal audit toredefine employee training and development priorities revealeda shared need to work on strengthening the culture of learning.
After reviewing its strategy to support the creation of a learning
culture, one key stage was to introduce a new ritual of a
dedicated training day for all employees: Global Learning Day.
The first Global Learning Day was held on March 21, 2023, in all
the Group’s Houses (in 25 cities, in 16 languages), winning the
Culture and Marketing training award from Learn Assembly.
With over 17,500 learning connections – representing one thirdof the Group’s employees – the day was structured around three
types of event:• A global conference featuring experts from within and outside
the Group and employees sharing their experiences,
attracting a total of over 4,500 views;• An "Unlocking your future" masterclass based on a "train the
trainer" system, with 4,000 employees taking part either inperson or online. The theme of this 90-minute training wasdeveloping people’s learning agility by identifying theirdevelopment goals and the resources to be used by means ofa development plan;• Local conferences tailored to each specific country or relating
to the Houses and their culture.
In addition to this training strategy, Kering continued to offer
development paths tailored to each employee’s situation:

1. Regional training for employees and managers• In Europe, 520 managers took part in management training
courses in French, English and Italian;• In Asia, 35 virtual courses were offered, providing training for660 employees;• In the Americas, 13 training programs were offered, allowing
the Group to train 171 employees.

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62.8%

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2021

2022

2023

Women
Men

2. Dedicated training for employeeswith potential and directors
Development experiences for high potential employees anddirectors bring together employees from all regions and Houses.
The aim is to prepare them for the challenges of tomorrow andanticipate future changes, and improve their leadership skills as
well. This year, 485 employees took part in these Group
programs.

3. Functional academies tailored to business needs
In response to the specific challenges facing certain businessareas and support the Group’s culture of learning, Kering has
developed academies for specific functions (Finance, Supply
Chain, Sustainability, Tech, Human resources, etc.) for thedevelopment and passing on of key skills. The Human Resources
Academy has trained more than 550 employees and continues tooffer training and discussion forums for this community. In 2023,
in addition to regular onboarding formats, training included
dialogue sessions with HR directors from the Houses and training
to help local HR business partners with matters such as career
support and performance. The HR communities met on aregional level at the People at Kering Forums, attended by
290 people in total (150 in Europe, 90 in Asia-Pacific and 50 in theAmericas), to share the Group’s HR strategy, work together on
creating the talent-first approach and its connection with skills,
as well as the future of HR, taking account of the impact of AI on
different jobs.

4. Training and raising awarenessabout sustainability issues
The Group and its Houses are ramping up their efforts to provide
training and raise awareness about sustainability issues, inparticular with sales, design and merchandizing teams, through aseries of actions and communications.

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Group initiatives• Dedicated awareness and training sessions during the onboarding process for all new employees at
Kering and its Houses, and inclusion in the Ethics & Compliance mandatory annual training• Sharing of news and projects at the Group and its Houses on the Group’s social media channels andquarterly challenges on The Kering Planet, the dedicated digital platform for employees• Sustainability Academy, an online platform providing training on sustainability matters, with its firstmodule focusing on climate change mechanisms and impacts

Involvement intargeted events• Climate Fresk workshops organized for employees of the Group and its Houses to raise awarenessabout the causes and processes of climate change• In-house events (videos, webinars), dedicated days or weeks organized by Alexander McQueen,
Balenciaga, Boucheron, Gucci, Saint Laurent, Kering Eyewear, Pomellato and Dodo
• •Employee volunteering: Giving Back, International Volunteer Day at Gucci dedicated to the
Changemakers program

Houses’ in-housetraining• Sustainability and associated issues (diversity, inclusion, environment) incorporated into training
weeks organized by the Houses, including Gucci, Saint Laurent, Balenciaga and Boucheron• Dedicated training (including Kering Standards) for salespeople and employees with key roles – suchas design, retail and merchandising teams – as well as product office teams (Brioni) and management
teams• Creation in 2022 of a network of 400 ambassadors in Balenciaga stores to reduce the impact of retailsites and to raise awareness about the matter in-house. At the same time, a performance rating system
was set up to monitor each store’s commitment to sustainability around the world, based on criteriasuch as leadership, awareness and waste sorting

3.2.3.3 Employee engagement:
putting employees atthe center of all initiatives
Developing employee engagement is one of Kering’s strategic
priorities in order to create a common culture and strengthen thesense of belonging to an integrated Luxury Group.
The Group’s internal platforms give all employees a voice andaccess to Group information at any time, via any channel,
conveying the main actions and internal communications
campaigns. In 2020, Kering introduced live streams as a way ofcommunicating with employees. Executives such as FrançoisHenri Pinault, Jean-Marc Duplaix and Béatrice Lazat, as well as
external speakers, discuss key themes for the company andanswer live questions from employees. These discussions arebroadcast live on social media for all employees, with a replay
available. In 2023, Kering produced 15 live streams on topics asvaried as Group performance, the results of the Kering Employee
Listening satisfaction survey, cybersecurity and successes in thedigital industry.

Global communication campaigns
about the Group’s values and policies
Kering’s internal communication campaigns help to consolidatea shared history and common language:• to celebrate Kering’s 10th anniversary and the 60th
anniversary of the Group’s creation in 2023, Kering organizeda series of celebrations for employees in Paris, New York,
Milan, Shanghai, Hong Kong and Tokyo;• Giving Back program enabling employees in France, Italy andthe United Kingdom to devote up to 21 hours per year
(approximately three days) to volunteering. Kering launched
APAC Giving Back Week for the first time in 2023. More than
400 employees in mainland China, Hong Kong SAR, Japan,
South Korea, Singapore, Taiwan and Australia took part in avariety of activities with the aim of supporting local
communities.

Kering Employee Listening internal
engagement survey
Kering has also created its own employee survey – Kering
Employee Listening – to develop a culture of feedback in which
employees’ ideas result in concrete action, such as a newcompany agreement on well-being or sharing of the company
strategy via live streams translated into the local language, and inwhich managers can be changemakers. These are annual
engagement surveys comprising around 30 questions relating toengagement, well-being, inclusion and diversity, as well as
opportunities for internal development. In 2023, 36,584
employees took part in the survey, representing a participation
rate of 83%. The measured rate of engagement was 73/100
overall. The aim of this tool is to boost employees’ engagement,
sense of belonging and performance by listening to them.
Employee feedback can therefore directly improve their working
experience. The results of these surveys are analyzed by gender,
age, job category and other attributes, and taken into account indrawing up practical action plans. The aim was to gain a better
understanding of the expectations and feelings of female
employees, and take concrete measures to improve theemployee experience within the Group (see section 3.2.2.1).
These surveys have also been adapted to suit more local needs,
particularly at the level of the Houses with the Pulse surveys.
Gucci carried out two surveys of all employees (around19,000 people) in 2023, with an average response rate of 85%.

3.2.4 Quality of life at work
As early as 2010, Kering signed a "Charter of commitments on
the quality of life at work and the prevention of work-related
stress" with the Group’s European Works Council. This charterhas enabled the Houses to develop and implement action plans
based on three key principles:
1. identifying and assessing the causes of stress in theworkplace;
2. deploying preventive measures to improve quality of life atwork and reduce workplace stress factors;

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3. keeping employees informed and giving them theopportunity to provide anonymous feedback so that theHouses’ action plans can be adjusted or enhanced.

3.2.4.1 Promotion of workplace safety andmanagement of psychosocial risks

Since 2015, health, safety and quality of life at work have been
the key aspects of Kering’s commitments under the European
agreement signed with the European Works Council on
February 19, 2015. Under the agreement, the Houses are
adopting procedures and taking action to identify, assess, reduceand prevent the key risks associated with their activities. They arealso taking initiatives designed to achieve continuous
improvements in quality of life at work. In this way, Kering iscommitted to developing a working environment and working
relationships that ensure well-being at work, to promote thedevelopment of all employees and contribute to the Group's
performance.

Kering's global health and safety policy is based on best practicefrom across the organization. It aims to ensure that a clear
governance structure is in place and that regular internal audits
and other processes are implemented Group-wide, with a view toachieving the zero-accident target each year. It also requires theHouses to take specific measures to improve quality of life atwork for retail employees and to conduct regular health andsafety audits. The Houses adapt their local procedures by
involving the Social and Economic Committee’s Health, Safety &Working Conditions team, ergonomists, occupational physiciansand external prevention specialists. In terms of risk prevention,
54,567 hours of safety training were provided to 8,187 Group
employees in 2023.

The 2023 Kering Employee Listening opinion survey included
questions on quality of life at work, morale, stress, work-lifebalance, health and safety, as well as mental health andpreventing work-related stress.
Measures to promote well-being at work include:• handing out a guide to well-being at work to all employeesof Corporate functions in Europe. This guide informs
employees about matters relating to their quality of life atwork, the definition of psychosocial risks and the six factorsthat can influence employees’ health, performance andsatisfaction at work based on studies by the International
Labour Organization (ILO) and the World Health Organization(WHO). It also provides a reminder of the Group’scommitments, the related e-learning offering and dedicatedcontact people for all teams;• in-person training for senior managers and managers to help
them detect situations where well-being is at risk, holdpreemptive conversations with employees, and understandwhat their roles are as managers and whom they can ask forsupport both within the Group and externally, to create a safe
and supportive working environment;• a consultation on social dialogue and well-being at workwithin the Group, leading to the signing of a common
declaration with members of the European Works Council in
2022. This common declaration refers to the Group’s
innovative policies to foster well-being at work;• an agreement with the European Works Council on social
dialogue and well-being at work signed on June 7, 2023.
This agreement – communicated to all Group employees in
50 countries - is based on two principles: defining well-being
at work according to four specific dimensions and cultivatingsocial dialogue to contribute to well-being at work. This is a
key agreement for the HR community, managers andemployees as it includes appendices in French, English and
Italian that are useful in fostering well-being at Kering and its
Houses, such as:– the intercompany commitment concerning employees aged
over 50,– advice on working from home,– the Kering Charter on the right to disconnect,– the guide to quality of life at work,– Kering’s innovative social commitments such as the healthand safety policy, Baby Leave, the global policy on domestic
violence and the human rights policy.

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National, regional and local procedures have been developed by
the entities to put Kering’s global health and safety policies into
practice. A continuous consultation process has been initiatedwith employees on the topics of health, safety and well-being toenable everyone at Kering to play a role in prevention andprotection measures. Support offered to employees has been
extended in several countries. In Europe, Kering Corporate now
offers all employees virtual or face-to-face psychological support,
as well as legal and financial support. These services are alsooffered by some Houses in France and Italy. In the United
Kingdom, all Group employees benefit from an emotional
support service. In the Middle East, a well-being platform isprovided for all employees, which can be accessed on theirmobile phone, with access to psychological, legal and financial
support. In Asia, employees benefit from a 24-hour hotline in
Mainland China and personal, custom support in Japan. In the
United States, a psychological support service is offered to all
Group employees as part of the health insurance scheme.
In addition, well-being at work pilot programs have beenlaunched such as #takecare at Kering Corporate – a guide toquality of life at work updated in 2023, defining psychosocial risk
and how to recognize the risks, as well as advice for employees
and managers, training on well-being at work included in the
Kering training catalogue in 2023 and for 2024 – and Be Well at
Alexander McQueen – a global well-being and mental healthprogram comprising a global campaign and local and worldwide
initiatives including activation days and dedicated guides.
In addition to these initiatives, the Houses are exploring various
other avenues, including:• identifying psychosocial risk factors at work (e.g. Kering
Corporate, Bottega Veneta and Gucci through SA8000 andISO 45001 certification);• preventing psychosocial risks and stress: talks by healthcare
professionals and sports trainers at Kering’s head office, andproviding social assistance services for employees.
In 2023, 288 lost-time accidents were recorded across all of theGroup’s Houses, compared with 252 in 2022 and 233 in 2021, withzero fatal accidents in 2023, as was the case in 2022 and 2021.

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Frequency and severity rate of accidents
2023

2022

2021

Frequency of work-related accidents(number of accidents per million hours worked)

3.60

3.36

3.46

Severity of work-related accidents(number of days lost per million hours worked)

0.12

0.09

0.10

Across all of the Group’s Houses, 41 employees were recognized as suffering from a work-related illness in 2023.

Overall lost time and sick leave (%)
Overall absenteeism rate
Absenteeism rate due to illness

2023
5.0%
2.6%

2022
5.7%
3.2%

2021
5.3%
2.8%

The total figure for absenteeism due to illness includes sick leave, work-related illness, work-related accidents and travel-related
accidents. The overall absenteeism rate includes absenteeism due to illness and every other kind of absence (maternity leave, paternity
leave, unjustified absences, etc.), calculated from the first day of absence.

3.2.4.2 Organization of work
The average working time of the Group’s full-time employees is
40 hours per week. In 2023, 68,763 hours of overtime were logged
in France, an increase on 2022.
In 2023, 2,183 employees worked part-time. Employees working
part-time accounted for 4.8% of permanent employees, up as aproportion of the total workforce, located mainly in the UnitedStates and Western Europe. Contractual working hours are
spread out on the basis of the specific business and organizationof each House, either over certain days of the week, or overreduced time slots on all working days.
The organization of working time remains a topic addressed by
the Group’s Houses and may vary according to the countries,
sites and employees concerned (in stores, production andworkshops or support functions). Kering Corporate and theHouses make every effort to organize the work of employees instrict compliance with local health, safety and environment
guidelines.
In France, work is mostly organized on the basis of a fixed
number of hours or days, with annualized working time and thepossibility of flextime.
Beyond these legal aspects, the Houses try to find and offer more
flexible ways to organize working time in order to meet their own
needs as well as those of their employees as part of their policyon quality of life at work: flextime for several Houses, theintroduction of a smart working pilot plan at the Bottega Veneta
and Gucci headquarters in Italy, leave to care for sick children at
Boucheron and part-time work at Pomellato. In 2022, when
fitting out offices, Kering also included flex office arrangements
for its Corporate functions and for its Houses in Europe which,alongside remote working, foster a better work/life balance.

These discussions are regularly shared within the European
Works Council and discussions are also held with managers andemployee representatives at the local level to find the mostappropriate solutions while also ensuring employee well-being
and a healthy work-life balance.

3.2.4.2.1 Promoting a better work-life balance
and fostering wellbeing at work
The Group and its Houses implement actions in favor of work-lifebalance benefiting both men and women and based on two
aspects.

1. Operating a strong parental policy
Kering is committed to ensuring a good work-life balance for its
employees by helping them through life’s key moments. The best
example of this commitment is its global parental policy,
deployed in the 50 countries in which the Group operates on
January 1, 2017, and further enhanced by the introduction of theBaby Leave scheme on January 1, 2020.
Baby Leave is offered to all Kering employees regardless ofgender or family situation. It offers the same terms of parental
leave for all new parents all over the world. By giving all parents
the same parental leave, Baby Leave is an important step forwardin achieving gender equality. It allows women to go further intheir careers and also helps to build a society free of genderstereotypes.
In addition, the Houses and Kering Corporate help employees
return to work after becoming parents. Kering Corporate France
allows employees to return to work on an 80% part-time basis
while continuing to be paid 100% of their salary the month after
they return from maternity, paternity or adoption leave. In 2020,
Balenciaga launched Baby Leave Comeback to help parents
return to work by offering them greater flexibility. Specificemployee benefits are offered by Gucci, Pomellato, Kering UK
and Kering Italy.

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2. Encouraging, where possible, more flexible work
methods that enable employees to betterorganize their lives
Flexible work was suggested by employees as a way of improving
quality of life at work and enhancing work-life balance, in
response to the employee opinion surveys conducted in 2019 and2021 in all the countries where Kering operates. The measures
deployed by the Group and its Houses as part of their actionplans address this desire for more flexible working methods.
Kering has been a member, since 2016, of a discussion platform
initiated by the International Labour Organization (ILO), known
as the Global Business Network, the French-speaking branch ofwhich brings together French-speaking companies that arecommitted to developing joint international welfare programs.

The Houses have also been able to capitalize on measuresrelating to well-being at work, such as the organization of
workplaces in line with the highest standards, as well as flexible
working hours, work-life balance and health and well-being.
In France, the right to disconnect has been introduced. A
disconnection charter and a guide to best practice regarding
remote working also form part of the Group’s work-related
standards. The agreement signed with the European Works
Council on June 7, 2023, on social dialogue and well-being at
work has been rolled out in all host countries, incorporating theGroup’s social standards and risk prevention tools into its
appendices.
Kering is involved in the work of the ILO’s French-speaking
network and helped to draw up three guides to best practices,
including "Implementing a strategy to support parents andmeasuring its impact" (2021) and "Global businesses and wellbeing at work" (2023).

3.3 Remuneration and employee benefits
The Group’s personnel expenses totaled around €3 billion in 2023 (see Note 5 to the consolidated financial statements in chapter 6 ofthis document).

3.3.1 Remuneration policy

3.3.1.2 Competitive and fair remuneration

Remuneration is a key component that managers can use to
reward the commitment and the individual and collective
performance of their teams.

Major efforts are made to ensure that fixed salaries are both fairinternally and competitive within the market. They are reviewed
annually, based on proposals made by direct managers. Fixedsalary raises are granted in accordance with the level of theexisting salary in comparison with peers and/or the externalmarket, factoring in performance over time and the potential fordevelopment.

3.3.1.1 Performance-related remuneration
There must be a strong link between remuneration, individual
contribution and collective performance. This link withperformance must exist for all components of remuneration,
both basic salary and variable elements (i.e., bonuses and longterm incentives).
Accordingly, 90% of the Group’s employees receive a fixed salary
and a variable pay component that is subject to the achievementof individual and/or collective objectives.
The individual portion of variable pay is determined andmanaged as part of the performance management process. Each
employee’s contribution to their team’s results is assessed bytheir direct manager in accordance with the achievement oftargets set and their behavior throughout the year.
In a similar spirit of recognizing and rewarding team performanceand the contribution of all employees to Kering’s growth andsuccess, the Group introduces incentive plans in countries where
this is encouraged by the local legislation. In France, nearly all
employees benefit from a profit-sharing mechanism.
For example, in 2023 and for the fifth consecutive year, all
Bottega Veneta employees were involved in an inclusive
approach to setting sustainability targets for their activities.
Balenciaga France entered into a three-year incentive agreementin 2020 under which employees are given a financial interest inreaching sustainability and profitability targets.

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The existence of a framework for all jobs within the Group andshared by all Houses (known as the "Job Catalogue") enables
their accurate definition based on both area of expertise andlevel of responsibility. This is particularly helpful during theinternal and external competitiveness analyses that are regularly
conducted by the Group, and for the fair allocation of variable
pay and certain benefits in kind.
Individual career paths within the Group and impacts on
individual remuneration are managed without consideration ofgender or age.
In 2021, the Group developed the Kering Parity Index to allow
Houses to evaluate and monitor their parity performance overtime. This index consists of four individually weighted indicators:
parity indicator in the 300 executive positions with the greatest
level of responsibility, gender pay gap by level of responsibility,
comparative opportunities for men and women to benefit from a
promotion or job development, and comparative opportunities
for men and women to receive a pay rise. It is calculated annuallyfor each House and at consolidated Group level in order to
identify areas of weakness requiring specific remedial measuresand to allow changes in these various metrics to be monitored
over time.

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Focus: Kering obtains Universal Fair Pay certification
In 2023, the Group took a new step in its analysis of gender pay gaps by completing a dedicated study, in partnership with a
specialized and independent consulting firm. This initiative was carried out globally across the Group, in all Houses and all
countries. The objective was to identify possible gender pay gaps that cannot be explained by factors that legitimately influencepay (such as, for example, the employee’s level of experience, the level of responsibility, the professional field, the work
location, etc.).
The study revealed an unexplained gender pay gap of 1.6% in favor of men and allowed us to identify targeted actions to reachthe Group's commitment to equal pay. Following this first analysis and identification of the actions, the Fair Pay Innovation Lab,an independent organization whose aim is fair pay for all, undertook a comprehensive review and awarded Kering and each ofour Houses with their Universal Fair Pay certification.
In addition, Gucci obtained certification for gender parity in Italy
in 2023, introduced as part of the country’s National Recovery
and Resilience Plan (see section 3.2.2).
These initiatives are an integral part of the plan of action toachieve gender parity, which forms part of the 2025 Sustainability
Strategy.

3.3.1.3 Remuneration andsocial commitment
In 2021, Kering carried out a global study to define, for each of thecountries in which it operates, the Kering standards that would
ensure a decent standard of living to all employees and theirfamilies. The definition of a decent standard of living includes:
food, water, housing, education, healthcare and other essential
needs. In order to ensure that these thresholds are reliable andlegitimate, the Group has drawn on the Fair Wage Network
methodology, which collects and analyzes information fordifferent countries on a standardized basis. New research that
becomes available in each country is systematically integrated by
the organization.
Each House is informed of any shortfalls on an annual basis.
Kering’s commitment to guaranteeing a decent standard of living
for each employee and their family is included in the agreement
signed with the European Works Council on June 7, 2023, as partof its societal and environmental commitment, one of the four
dimensions of well-being at work.
To ensure that the value and wealth that Kering creates areshared fairly, it launched its first employee share ownership planin 2022, KeringForYou. The program was offered to Group
employees based in France, Italy, the United Kingdom, the UnitedStates, mainland China, Hong Kong SAR, Japan and South Korea,
representing 80% of Kering’s total workforce.

3.3.2 Executive pay
Within Kering's senior management, the remuneration of
300 people in particular is monitored by the Group’s Human
Resources department, with the aim of ensuring internalconsistency and competitiveness in light of industry practice.
The remuneration structure for senior executives (portions
allocated as base pay and as short-and long-term variable
remuneration) is defined by the Group. It varies in accordancewith the level of responsibility assigned to the role. The shortterm variable remuneration (annual bonus) policy aims to reward
senior executives for meeting objectives – in part financial and inpart individual – set in line with the strategy of the Group and theHouses. Financial performance is assessed on the basis of two
indicators, dedicated to measuring profitability (recurring
operating income) and assessing the quality of the free cash flowof the Group and the Houses.
The long-term incentive policy, meanwhile, meets two objectives:
rewarding executive teams for both their performance over time
and their loyalty to the Group.
Since 2020, all executives have had performance shares, which
now represent the main element of Kering’s long-term incentive
schemes. The number of shares granted to each executive varies
with their level of responsibility. The number of shares deliveredat the end of the vesting period depends on Kering’s share priceperformance compared with a panel of luxury goods stocks.
For executives working within a Group House, the Kering
performance shares are accompanied by monetary units in thesame proportion, linked to the valuation of the House for which
they work. These monetary units were launched in 2013 and theirunit value evolves over time in line with the increase in theHouse’s value. At the end of a three-year vesting period startingfrom the year that the monetary units were granted, executives
have the opportunity to exchange their monetary units during
each of the subsequent two years.

3.3.3 Employee benefits
within the GroupIn addition to monetary remuneration, Kering has always placed
great importance on offering its employees healthcare, disability/
life cover and pension benefits, as well as ensuring their wellbeing more generally. As well as the coverage provided for bylaw, almost all employees enjoy supplementary insurance
through the various plans in operation in the Group’s Houses. For
some years, the Houses have offered more comprehensive
benefit plans in line with best practice in each country. These
popular plans are constantly changing to better meet employees’
expectations. France is a good example of this: savings, pensions,healthcare and benefits were fully overhauled in 2022 to offer
employees more suitable coverage. As well as basic coverage,plans often include benefits relating to well-being, sports,
education, recreation, transportation and family support. As far
as possible, these benefits are available flexibly and can beselected to meet the needs of each individual. This was theguiding spirit behind the introduction in 2020 of the ambitious
Flex Benefits program for Gucci’s employees in China.

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Kering promotes its employees’ work-life balance, which is
closely associated with well-being. The Group offers flexible,
hybrid working, which has now been adopted by most employees
in Kering’s offices. All employees receive a minimum of two
weeks of paid leave per year, notably in Asia and the UnitedStates, where paid leave is not covered by local labor law. The

paid leave policy allows employees to "recharge their batteries"
so as to better engage with and contribute to a positive andbalanced work environment.

3.4 Social dialogue
The Kering group strives to ensure ongoing social dialogue
specific to each of its bodies, as well as social dialogue in France
and on a European level within the Houses and the Group.

3.4.2 The Group’s forums
for social dialogue

In 2021, European Works Council members had their terms ofoffice renewed, and the EWC marked its 20th anniversary.
Members of the French Works Council appointed in 2019 also
underwent economic and workforce-related training. This
training took place in-person in Paris and fed through into
Kering’s social dialogue on a national level.

3.4.2.1 Kering European Works Council

In 2022, employee representative partners received training onsocial regulation, as well as training courses on well-being atwork, and were able to negotiate on the issue of social dialogue
and well-being at work.
An agreement on social dialogue and well-being at work wassigned with the European Works Council on June 7, 2023. Other
notable events of 2023 were the 30th anniversary of the FrenchWorks Council and the signing of an amendment to the FrenchWorks Council agreement on June 28 for the body’s re-election.

3.4.1 Listening to and engaging
with employees
To encourage a culture of dialogue and in line with its
engagement policy, the Group favors directly informing
employees via internal platforms (see section 3.2.3.).
Social dialogue has also been defined and associated with wellbeing at work within the framework of Kering’s negotiations with
the European Works Council. Fostering social dialogue tocontribute to well-being at work is therefore one of the two
principles of the agreement signed by Kering with members of
the European Works Council on June 7, 2023.
The negotiations led by Kering on the issue of social dialogue andwell-being at work in 2023 and 2022 are central to the Group’s
overall Human Resources strategy and make it possible to jointly
devise action plans with the various entities and employee
representative partners to supplement any local initiatives withthe support of the managing bodies.
The agreement makes social dialogue in Europe a key element of
the Group’s social strategy and allows for tools to be shared with
the Houses to create impetus in sharing best practices.
This agreement also strengthens social dialogue at all levels for
employees and their representatives and enables ongoing andlasting improvement of dialogue with the European Works
Council in addressing present-day challenges.
The number of hours for strike increased to 4,009 in 2023,
compared with 1,021 in 2022 and 1,673 in 2021, in a context of
economic tensions.

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Created pursuant to the agreement of September 27, 2000, theKering European Works Council (EWC) provides a Europe-wide
forum for information, consultation, exchanging of views anddialogue. The principal purpose of the EWC is to remain a key
intermediary in the development of social dialogue between
European countries with differing realities and social practices.
The EWC is a cross-border institution and operates alongside
existing national employee representative bodies in accordancewith specific prerogatives in terms of receiving information andbeing consulted. The discussions that take place within the EWC
enable employee representatives to acquire a better knowledge
and understanding of the Group’s organization, strategy andmain challenges.
The EWC holds two three-day plenary sessions per year withGroup Management, at which it is informed of and, whereapplicable, consulted on cross-border issues affecting theGroup’s employees in a manner defined in precise terms by the
new agreement signed for an indefinite period.
The EWC also has a Select Committee composed of fivemembers, elected by their peers, who meet at least four times ayear to prepare and analyze the two annual plenary sessions andto discuss various issues with Group Management.
In 2021, the members of the EWC had their terms of officerenewed for four years. The EWC met on two occasions, including
one meeting attended by François-Henri Pinault, the Group’s
Chairman and Chief Executive Officer, while the SelectCommittee met four times. Regular meetings are also held with
the EWC secretariat. The Council members newly appointed ineach country met in Paris on December 1, 2 and 3, 2021.
In October 2022, the EWC’s members took part in three days of inperson training on economic matters. This training plays a vitalrole in developing the skills of EWC members, who have regularly
addressed the financial and economic issues relating to theGroup as well as workforce-related innovations over the last
20 plus years.
In 2023, the EWC met on two occasions. François-Henri Pinault,
the Group’s Chairman and Chief Executive Officer, and the Chief
Financial Officer attended the June meeting. The SelectCommittee met four times, including one meeting with theGroup’s new Deputy CEO in charge of Operations and Finance.

Sustainability
The employee experience at the heart of the Group’s Human resources strategy

Kering also created a CSR Committee with the European Works
Council with the framework of the agreement signed in 2023. The
CSR Committee met for the first time on December 7 anddiscussed issues relating to sustainability with its members,
making it a specific item on the agenda for the next meeting.
In 2023, the European Works Council covered 100% of employees
in Europe and around 50% of employees worldwide. However,
100% of worldwide employees are covered by the social dialogue
and wellbeing at work agreement signed with the European
Works Council, making wellbeing associated with social dialogue
a transnational issue.

3.4.2.2 French Works Council
Within all of its Houses in France, the Group engages in dialogue
with employee representative bodies and as part of negotiations
with unions.
Created in 1993 and renewed most recently in 2015, Kering’s
French Works Council represents workers in France and operates
under French law. Its members, who meet in plenary sessions
once a year, are kept informed of and exchange views on theGroup’s strategies, economic and financial imperatives, and HR
management policy. Each plenary session is preceded by two
preparatory meetings of members that allow them to seek expert
advice and ask questions of the Board prior to the annual plenary
session.

On February 27, 2020, an agreement renewing the powers andresources attributed to the French Works Council was signed
unanimously by the unions for an indefinite period. Under thisagreement, two days of economic and workforce-related training
were provided to members of the French Works Council on
September 29 and 30, 2021. The topics discussed during inperson meetings of the French Works Council in April and May
and on June 4, 2021, included an update on the social, economic
and financial situation of the Group and its Houses, apresentation on 2021 ethics and compliance training, and a
discussion relating to questions submitted in advance by FrenchWorks Council members.
Kering also took advantage of the two days’ training of FrenchWorks Council members to incorporate training on issues relating
to social dialogue.
Members of the French Works Council met three times in 2022
and undertook training on social dialogue in preparation for
employee representative elections at the Group’s Houses. This
training, provided by an expert in workforce relations, is part of
the four-stage training course that has been delivered tomembers of the French Works Council and the Houses’ HR
managers since 2021 in France.
The French Works Council met three times in 2023 and executive
management celebrated the Council’s 30th anniversary with its
members. Kering also signed an amendment to the agreementwith members on June 28, 2023, concerning the re-election of theCouncil.

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4 - WORKING TOGETHER TO BUILD SUSTAINABLE
AND SOCIALLY RESPONSIBLE SUPPLY CHAINS
Kering is aware that its social and environmental responsibility
goes beyond its own operations and extends throughout its
supply chains. The Group further believes that respect for humanrights applies to everyone, be they employees, workers in supply
chains or members of local communities. These key principles
are documented in the Group's Code of Ethics and Human rights
Policy.

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Kering helps its suppliers adopt more sustainable practices andhas put in place numerous initiatives to involve suppliers in theGroup's objectives and requirements with regard to sustainability
and support their transition efforts.
This requires transparency and traceability within supply chainsfor its raw materials – and therefore the need to identify,
understand and map those chains – with a view to developing
synergies and priority programs wherever significant impacts arefound.

Sustainability
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4.1 Relations with our direct suppliers and subcontractors(Tier 1 and Tier 2)
4.1.1 Responsible sourcing approach:key principles and documents
4.1.1.1 Suppliers' Charter
For more than 10 years, the Group's Code of Ethics has included
the Suppliers' Charter, which summarizes Kering's specificexpectations of its commercial partners as regards social andenvironmental issues. For any supplier wanting to work with
Kering or one of its Houses, notwithstanding any contractual
clauses, compliance with the Charter is a precondition of thebusiness relationship. The Group requires its suppliers to commit
formally to applying high ethical standards themselves and to
upholding human rights.
The Charter reminds them of the need to promote human rights
within their production units and among their subcontractors,
and to advise Kering and/or its Houses of any serious difficulties
in applying the Charter. Compliance is further measured bymeans of social audits at production sites (see section 4.2). The
requirements of the Suppliers' Charter are applied operationallythrough the Sustainability Principles for suppliers, detailed
below, and supplemented by the Human rights Policy.

4.1.1.2 Sustainability Principles
applicable to suppliers
Kering's Sustainability Principles relate to three areas:• social aspects that relate to human rights, the rights ofworkers and their health and safety: the prohibition of childlabor, forced labor, human trafficking in all its forms,
discrimination, harassment, living wage, compliance withstatutory working hours, and respect for the freedom of
association and the right to collective bargaining;• environmental aspects, such as compliance with laws as well
as restrictive lists of chemicals defined by Kering,
environmental management, waste water treatment etc.;• aspects related to the supply of raw materials and packaging,including respect for animal welfare and the five related
freedoms, sourcing and traceability requirements for anumber of key materials used by Kering, and the prohibitionof certain substances and/or certain sourcing regions (forreasons that may relate to a high risk of human rights
violations – such as child labor or forced labor – orenvironmental conditions) etc.
These principles are available on the Group's website and havebeen an integral part of supplier contracts since 2016; they areintended to provide operational guidance and details regarding
the Suppliers' Charter. Each supplier is tasked with passing onthese principles to its own subcontractor network if it has any.
The document was updated in 2023 and has enabled Kering toclarify its requirements regarding various themes. As such,
additional information was provided to enable responsible
recruitment practices. Kering expects its suppliers to pay close
attention to this topic, ensuring that their employees have not
had to pay any recruitment fee or a deposit in order to get a job.
In such case, Kering expects its suppliers to reimburse theemployees concerned. Furthermore, conscious of the importanceof human rights and environmental rights defenders andindigenous peoples, Kering has formalized its expectations in thisarea. Finally, a reference to the Dhaka Principles for migrant
workers has been added to identify examples of good practice tobe implemented.

4.1.1.3 Responsible sourcing policy
The Group's general approach to responsible sourcing is basedon key principles defined in its Suppliers' Charter and its
Sustainability Principles applicable to suppliers. In addition, theKering Standards: Standards and guidance for responsible
production, laying down the Group's requirements in terms of
responsible sourcing and traceability of raw materials in
manufacturing processes (see section 5.4).
On one hand, for non-retail (indirect) purchases, the Group's
Indirect Purchasing Department remains committed toresponsible sourcing based on a reciprocal undertaking with
suppliers to respect the Kering Code of Ethics. It also has specificcommitments tailored to each category of purchases, with buyers
and internal clients identifying the most relevant sustainability
criteria. The Group's Indirect Purchasing Policy includes
standards of conduct relating to responsible sourcing. It sets out
the priorities to be shared and applied by all Group employees tomanage sourcing ethically and responsibly. The policy was
updated in 2023. To date, all buyers are trained and made awareof responsible sourcing practices, and standard purchases
include CSR selection specifications and criteria.
Kering has signed since 2014 the "Responsible Supplier Relations
and responsible purchasing" Charter issued by the French
Ministry of Economy and Finance. The Charter contributes tobuilding a balanced and sustainable relationship between
signatories and their suppliers.
On the other hand, for direct purchases, the Group's Direct
Procurement department supports Kering's Houses in reaching
the 2025 target of ensuring that 100% of the raw materials itpurchases are aligned with the Kering Standards. Since 2021, theteam has implemented procurement framework contracts, whenpossible, at Group level to support the sourcing of raw materials
in the form of yarns and fabrics that are aligned with the Kering
Standards and certified, ensuring availability of key commodities
at negotiated prices and agreed lead times. A harmonizedmethodology is applied to all projects managed by the Direct
Procurement department, and this allows a tailored approach tobe taken to each raw material based on its market
characteristics.

4.1.1.4 Kering Standards: adoption
and dissemination
In 2012, Kering set out basic principles and guidelines on
responsible sourcing, known as the Kering Standards: Standards
and guidance for sustainable production. These Standards were
published in 2018 and are updated every year. They can be
downloaded in English, Italian and French from the Group's
website.

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They set out the criteria that the Group and its suppliers mustmeet in five key areas: traceability, use of chemicals, humanrights and social impact, environmental impact and animal
welfare, describing the minimum requirements for Groupsuppliers in each of these five areas, as well as the moredemanding requirements that suppliers will have to meet by2025. They are based on founding notions of integrity (material
traceability, Chain of Custody certification, etc.), circularity (useof recycled materials where possible, consideration of therecyclability of products, etc.) and the precautionary principle (nouse of GMOs, no nanomaterials, etc.).
The Kering Standards cover:• the raw materials used by the Group, representing more than
95% of its purchasing volumes;• the Group's main manufacturing processes, namely tanning,
the various stages of textile processing, leather work andshoes;• packaging and logistics (storage and transportation), visual
tools and innovation for sustainable production;• end-of-life management for products;• animal welfare, covering all species that form part of theGroup's supply chains;• supplementary guides relating to circularity, innovation andenvironmental claims.
Dedicated Standards also cover stores' planning andconstruction as well as stores' operations and management, witha view to minimize their environmental impacts.
Alignment with the Kering Standards is monitored by each Houseand consolidated at Group level through the EP&L and the
Vendor Portal (see sections 4.1.2. and 5.1.1).

4.1.2 Helping our suppliers to adopt
more sustainable practices
4.1.2.1 Monitoring and assessing suppliers’
sustainability performance (Vendor
Portal)Since 2020, Kering has been using a supplier portal, which can beaccessed online. This portal is a tool for conducting evaluations,sharing information and sustainability practices. In 2023, most of
Kering's suppliers in the ready-to-wear, leather goods and shoes
categories have been engaged in this process, representing 95%
of purchases in these categories.
By means of dedicated questionnaires of up to around 300
questions, this portal assesses implementation of the Kering
Standards across the supply chain, environmental performance,social performance and management of chemical substances ofsuppliers. The social questionnaire seeks increased transparency
on supplier workforce (gender balance, for example), social
initiatives, management of health and safety (risk assessment,
incident rate, etc.), and procedures put in place to mitigate risks
of forced labor and child labor. This information is used to
calculate certain performance indicators for suppliers and to
define the scope of new projects.
The various indicators show that:• more than 730 suppliers representing around 69% ofpurchasing in the ready-to-wear, leather goods and shoes
categories have completed, to date, the four questionnaires,
submitting a self-assessment of their performance via theportal;— 214

KERING - 2023 Universal Registration Document• all respondents acknowledge that they know the Group's
requirements (Code of Ethics and Suppliers' Charter, MRSL
and PRSL, Kering Standards);• 46% of industrial sites state that they either buy or produce
renewable energies ; around one third produce it on-site;• 604 production sites representing 58% of purchases in theready-to-wear, leather goods and shoes categories haveshared data regarding their water consumption.
Kering and its Houses strive to develop long-lasting relationships
with their suppliers, in a spirit of trust and continuous
collaboration. For instance, long-term partnerships between
brands and suppliers play a pivotal role in preserving, sharing
and improving key know-how in a mutually beneficial way, and inensuring the manufacturing of iconic pieces.
The Group and its Houses also encourage – wherever relevant
and particularly taking account of suppliers' size – the use ofcertifications under internationally recognized standards forenvironmental management systems (ISO 14001), labor relations(SA8000) and health and safety (ISO 45001).

4.1.2.2 Awareness and capacity building
Providing technical support and helping suppliers throughcontinuous improvement, training and awareness-raisingprograms are Kering's favored methods of developing
environmentally and socially responsible supply chains andimproving the performance of Group suppliers.
Kering and its Houses help their suppliers implement projects
intended to develop their technical expertise and reduce theirenvironmental footprint, such as:• initiatives adopted by logistics teams to reduce the carbon
footprint of their activities;• the Clean by Design program, which aims to improve theenvironmental efficiency of 59 historic tier 1 and 2 suppliers
located in Italy, China and Japan via dedicated training
sessions and performance audits (water, energy and waste).
On average, sites taking part in the program reduce theirwater consumption by 5-10%. Energy savings averaged 19%
per site, in a range from 10% to 20%, with peaks at 40%. The
program was extended to 15 new suppliers in 2023 incollaboration with other fashion Brands, under thesupervision of the Apparel Impact Institute;• programs developed in collaboration with participants in thevarious raw materials supply chains (see section 5.4);• Pomellato's support for several suppliers seeking to obtain
RJC CoC certification by advising them on the topic;• the project set up by Saint Laurent and Balenciaga for theirdenim suppliers in Japan, to assess the environmental
performance of the various participants in the supply chain(Tier 1, Tier 2 and Tier 3) and help them to improve theirpractices with regard to water and energy consumption,
waste management, wastewater treatment and managementof chemical products (application of Kering's MRSL and
PRSL). After a series of site visits in 2022, the year 2023 aimed
to analyze existing production processes to help suppliers
adopt practical initiatives. Following phases will include
operational recommendations and monitoring;Sustainability
Working together to build sustainable and socially responsible supply chains• support actions of Gucci towards its suppliers to help them
implement energy-saving solutions. The House expects its
suppliers to gradually increase their energy efficiency and useof renewable energy, for example by generating power onsite or through direct purchases of renewable energy. On
average, across the whole Gucci supply chain, 25% of theenergy used by suppliers comes from renewable sources,
peaking at over 50% in leather production and 40% in shoe
production;• the program Sviluppo Filiere of Gucci launched in 2020 incollaboration with Intesa Sanpaolo bank.
Some types of suppliers are also offered training to:• advise them on how to align their raw materials sourcing with
the Kering Standards;• raise their awareness regarding Kering's sustainability
initiatives so that they understand new practices (such as theRegenerative Fund for Nature and regenerative agricultural
practices);• engage their commercial and business teams, in order tostrengthen their approach to sustainable sourcing;• encourage them to establish new commercial relationships
with sustainability actors (e.g., the regenerative cashmere
sourcing program);• strengthen their management of chemicals used in the
Luxury industry, with more than 250 suppliers receiving
training on the MRSL and the ZDHC program.
In 2023, Kering Eyewear organized Sustainability Days with 20 ofits main Italian suppliers, during which training and awarenessraising sessions were held on sustainability themes. Kering
Eyewear also provided training on its Virtus blockchain system to
21 of its indirect suppliers of raw materials and components (seesection 5.5.2.2). Specific training regarding ISCC Plus certification
was also organized for seven of its suppliers.
The Material Innovation Lab (see section 5.5.2) supports almost
100 of the Group's suppliers by helping them with their ecologicaltransition. The MIL does this by making a financial contribution to
the costs incurred by suppliers in obtaining certification ordeveloping more sustainable materials, and offers training on the
Kering Standards.
The Group and its Houses, including Balenciaga, Boucheron andSaint Laurent, are also committed to working with organizationsin the social and solidarity economy (SSE), particularly throughcontracts for on-site services and pilot projects. Kering Eyewear
has also formed a partnership with CAUTO Cooperativa Sociale, a
network of social cooperatives in Italy that helps integrate
disabled people.

4.2 Action to improve working conditions in our supply chains
Kering’s initiatives in respect of working conditions in its supply
chains form part of the Group’s Human rights approach, andrelate to its duty of care as presented in chapter 5 "Riskmanagement and internal control".

4.2.1 Implementation of the social audit
system within the GroupNo control system, regardless of how mature and tested it is, canguarantee the absence of risk, and it is up to the Group and its
Houses to embed the most efficient collaborative and control
systems with suppliers in order to keep risk to a minimum andimplement any corrective action in cases where non-complianceis identified.
Since 2016, the Group has had a single central body allowing
Kering to control the compliance of Group suppliers, combining
audit and risk assessment practices, known as the Hercules
system. This system is built on the following six pillars:
1. the Sustainability Principles, updated in 2023, which are
divided into three areas: social aspects related to humanrights, labor rights, and health and safety; environmental
aspects; and aspects related to raw materials sourcing andpackaging (see section 4.1.1);
2. central management by Kering through a team of 37
people: depending on needs (location, workload, etc.), thisteam is assisted by external service providers that apply thesame auditing methodology;
3. clear and uniform procedures for all the Houses,
corresponding to the different stages of the supplier
relationship, including activation, evaluation andtermination of contract;

4. audit plans that are regularly updated to take into accountnew suppliers and exclude those that have become inactive.
The risk assessments and audit plans are constructed on
the basis of a set of gross risks and prior social audit
performance;
5. a single, comprehensive audit methodology that covers
human rights, health and safety, and the environment.
Containing 97 questions, the comprehensive audit
questionnaire is divided into 13 categories (child labor,
forced labor, health and safety, freedom of association andthe right to collective bargaining, discrimination, wage, theenvironment, etc.) and is aligned with the best standards inthe field such as SA8000 and the SMETA audit standard.
Findings are consolidated between the Houses in order toavoid any overlap in the audits. Follow-up audits with asmaller scope focus on the area(s) in which breaches ofcompliance were identified during the first comprehensive
audit. In all cases, audits – both announced andunannounced – consist of document reviews, site tours, andworker interviews. A representative sample of employees isselected for those interviews, taking into account age andunion representation in particular, as the case may be.
These interviews are confidential. The frequency of audits
depends on the results of previous audits and the criticalityof suppliers. Key suppliers are audited every two years.
Better-rated suppliers will be audited less frequently.
Nevertheless, periodic audits are undertaken regularly toensure compliance. In 2022 and 2023, the teams havelaunched a comprehensive review of the current social
audit protocol and associated checklists in order to capturerising regulatory expectations and best practices in thisarea;

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6. classification of anomalies into four categories andstandard responses to each case:a) zero-tolerance breaches (relating to the most serious
situations, specifically child labor, forced labor,
irregular work, undeclared subcontractors, threats,
discrimination, serious breaches of regulations,counterfeiting, etc.),b) serious compliance breaches:
the supplier is given one month to resolve the breach,and a follow-up audit is scheduled to confirm that theissue has been resolved.
Identification of a zero-tolerance breach or serious
compliance breach triggers the immediate
establishment of a committee bringing together the
Kering audit team and the relevant House(s) to decideon the future of the relationship with the supplier.
Immediate shutdown of the approval process if the
supplier is in the process of being activated but has
not started working; and discussions about thepossibility of remediation and support for the supplieror about the need to terminate the contractual
relationship if the supplier is working on one or moreorders. The House makes the decision about what is
the most appropriate response,c) moderate compliance breach:the supplier is given three months to resolve themoderate compliance breach, and a follow-up audit isscheduled to confirm that the issue has been resolved,d) observations:these give rise to a corrective action plan and are thesubject of a dedicated checklist at the next audit. The
supplier has six months to remedy the observation.

For each of the 13 categories in the comprehensive audit
questionnaire, a detailed description of what constitutes zerotolerance breaches, serious or moderate compliance breaches
and observations has been prepared. For example, in the healthand safety category, any situation that may endanger the lives ofworkers is a zero-tolerance breach; the absence of mandatory
documentation on aspects capable of endangering the health orsafety of employees is a serious compliance breach; the absenceof mandatory documentation other than that addressing thehealth or safety of workers is a moderate compliance breach; anda deviation from existing procedures results in an observation. In
the social category, the falsification of a certificate proving
payment of social security contributions is a zero-tolerance
breach; any issue relating to the minimum wage is a serious
compliance breach; a failure to comply with updates to collective
bargaining agreements is a moderate compliance breach; and a
failure to implement laws to promote the professional
integration of vulnerable people results in an observation.
Depending on the results of audits, suppliers are classified as:• compliant (no zero-tolerance breaches, no compliancebreaches, whether serious or moderate, fewer than fiveobservations);• partially compliant (no zero-tolerance breaches, no serious
compliance breaches, fewer than five moderate breaches);• progress expected (no zero-tolerance breaches, more than
five moderate compliance breaches or at least one serious
breach);• zero tolerance (at least one zero-tolerance breach).

4.2.2 Supply chain map
As a Group of leading global Houses, Kering operates in the Luxury market, with supply chains that are structured in a very specific way,
as evidenced by the location of the suppliers in the centrally managed database in 2023.
Supplier portfolio
Thousands of mostly small
suppliers, highly
fragmented market, highlevel of craftsmanship.

Size of suppliers
Geographical location of Kering’s suppliers in 2023
Average number of employees
92% in Europe, predominantly in Italy (83%)(1):
per supplier: approximately 60.
Average number of employees
83%
9%by supplier in Italy: 40.
Italy
Europe (excluding Italy)
Taking all Kering suppliers into
7%
account, this represents anAsia
estimated workforce of more
1%than 116,000 (tier 1) and 133,300
Other(tier 2).

(1) Geographical breakdown in 2023 of direct suppliers and contractors, managed within the centralized system introduced by Kering in 2016.

In the supply chain, 48% of workers are men and 52% women. By type of supplier, the gender balance is as follows:• tier 1 suppliers: 49% men, 51% women;• subcontractors: 47% men, 53% women.

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Sustainability
Working together to build sustainable and socially responsible supply chains

4.2.3 2023 results of supplier audits
and key indicators

Subcontracting without prior authorization is not permitted.

The supplier base managed by Kering’s central team for its
Houses has the following characteristics:• it does include all production suppliers, the main suppliers of
raw materials (leather, fabrics, ribbons, precious stones, etc.),
Kering Eyewear suppliers and suppliers deemed strategic;• to date, it covers 4,433 suppliers, with the following
breakdown:– 38% Tier 1 suppliers (19% of direct suppliers that do not use
subcontractors and 19% of contractors that use
subcontractors),– 62% subcontractors, i.e., those that work for contractors
and have no direct business relationship with the Houses(Tier 2 suppliers).
8.5% of suppliers were deemed strategic in 2023. Strategic
suppliers are those needed to ensure business continuity due tothe volume of production involved and/or their specific know-how.
Furthermore, out of the total number of active suppliers in 2023,
4.8% were deemed "at risk" because they are located in countries
considered by the Group to be "at risk". A country is deemed to be
at risk when the indicators contained in various external databases
imply that human rights risks are high or very high.
13.3% of suppliers were deemed critical in 2023 (of which 68.9%
were in Tier 1 and 31.1% in Tier 2). Suppliers are deemed criticalwhen they are strategic and/or at risk. If they meet both criteria,
they are only counted once. They are given special attention inview of their importance to the business and their location.

Among its suppliers, Kering also distinguishes raw material
suppliers. Raw materials suppliers identified as key to the Group
represent roughly 20% of all such suppliers, corresponding toapproximately 80% of purchases.
Lastly, for a limited portion of its activities (fragrances andcosmetics), Kering also works with licensed suppliers, i.e., thosethat are under license to the Houses.
Within this portfolio of suppliers, 4,559 audits were conducted in
2023 (compared with 4,118 in 2022 and 3,420 in 2021), breaking
down into 2,616 comprehensive audits and 1,943 follow-up
audits. A total of 32% of these audits were carried out by Kering’s
Internal Audit team and 68% by external auditors, with the Groupaudit protocol applied in the same way for all audits conducted.
This means that 75% of suppliers were audited in 2023. Some
audits concern suppliers that have become inactive: 486 of theaudits carried out in 2023 covered suppliers that were inactive at
the end of the year, and 60% of the suppliers in the system thatare now inactive have been audited since 2015.
Moreover, Kering has undertaken to audit all of its key suppliers
every two years. It should be noted that "activation" audits for
new suppliers are comprehensive audits, and that they therefore
cover the entire scope of a comprehensive audit.
Finally, with the aim of going further back in its supply chain,
Kering includes an increasing number of raw material suppliers in
its audits.

At December 31, 2023, the 12,569 anomalies broke down as follows:

Breakdown by severity of anomalies
as of December 31, 2023

Breakdown by severity of anomalies recorded
at critical Tier 1 and Tier 2 suppliers
as of December 31, 2023
23.0%

19.6%

Moderatecompliance breaches

Moderate compliancebreaches

78.3%

Observations

1.6%

Serious compliancebreaches

69.5%

5.3%

Observations

Serious compliancebreaches

2.2%

0.5%

Zero tolerance
breaches

Zero tolerance
breaches

Breakdown by theme of the top five anomalies
recorded (excluding observations) at critical Tier 1
and Tier 2 suppliers as of December 31, 2023

Breakdown by theme of the top five anomalies
recorded (excluding observations)as of December 31, 2023
14.6%

14.5%

Wage and working
conditions

70.9%

Healthand safety

6.6%
Environment
4.0%
Working hours
3.9%

Wage and working
conditions

65.3%

Healthand safety

4.4%

Environment

13.1%

Working hours

2.7%

Other

Other

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Following these audits, 64.8% of suppliers were rated compliant(stable compared to 2022), 29.4% partially compliant, 4.6%
progress expected and 1.2% zero tolerance. A total of 49 suppliers
saw their business relationship terminated in 2023 due tounsatisfactory audit results.
Robust corrective action plans were put together following theaudits, wherever breaches of compliance, and particularly
serious breaches, were identified. Follow-up audits were thenconducted to verify the resolution of the problem. The zerotolerance breaches identified during the audits were dealt withimmediately, in accordance with established rules and incoordination with the relevant Houses. To speed up theresolution of issues, the central team held more than409 committee meetings with the Houses. This process aimed atcontinuous improvement led to resolution of several serious
compliance breaches and zero tolerance situations.
For example, in 2023 an audit of a new supplier revealed agediscrimination practices in its recruitment process. After thiscritical issue was discussed in a committee meeting, the supplieradopted practical measures to resolve this anomaly, and as aresult, the anomaly was considered closed. The supplier will bereassessed in 2024.
Another example concerns a supplier where a serious anomaly
was discovered in 2021 concerning breaches of statutory rules
regarding overtime. After providing regular evidence that it wascomplying with its remedial action plan in 2021 and 2022, anaudit carried out in 2023 confirmed that the company wascomplying with the applicable rules.
A final example concerns a supplier that did not comply withregulations regarding pay rises. After providing evidence ofremedial measures (correctly reclassifying employees and issuingback pay), the anomaly was considered closed.

4.2.4 Beyond social audits:social impact
Before it establishes commercial relations with members of its
supply chain, Kering focuses strongly on mitigating Human rights
and social-related risks, particularly through due diligence
carried out by its audit department. In addition, all first-tiersuppliers are required to disclose their subcontractors, and theirdisclosures are checked through social audits.

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As well as mitigating human-rights risks, geographical location is
an important criteria when identifying the initiatives that Keringneeds to adopt as regards social impact. This approach requires
sustained dialogue and active collaboration with a wide range ofstakeholders, including private-sector peers faced with similar
challenges, international organizations that are leading the way
on this topic, and technical partners that can contribute theirexpertise to discussions, such as living wage. Accordingly, Kering
set up a social impact team in its Sustainability Department in
2021, whose role is to measure the social footprint of the Group’s
suppliers and provide inputs for action plans adopted by theHouses and the Group in this area.
The Group started reflecting on the just transition in order toanticipate the changes in the sector, particularly in regards toclimate change and other environmental issues, taking anintersectional ecological approach. The aim is to preserve jobs
and develop the skills needed to address the sector's futureissues.
Accordingly, Kering and its Houses have been engaged inseveral initiatives and collaborations to develop its approachand explore priority areas of action for the Group:• Kering is an active member of the B4IG (Business for Inclusive
Growth) coalition, which has merged with the WBCSD (World
Business Council for Sustainable Development). Kering isparticularly active in four working groups, i.e. (i) Living Wage,(ii) Human Rights, (iii) Social Metrics & Impact and (iv)
Diversity & Inclusion;• Kering is a founding member of the Fédération de la Haute
Couture et de la Mode (FHCM) working group focusing on
measuring social impact selected by its members(particularly regarding the living wage and gender equality).
Kering leads certain working groups so that the Luxury
industry in France uses the same evaluation methodology;• Kering is a member of the Capitals Coalition, a global
nonprofit platform that supports the use of different types ofcapitals (particularly human, natural and social) forcompanies to make strategic decisions. Kering has also
contributed to the development of courses regarding socialand human capital, which are freely accessible online;• Kering is continuing its collaboration with the Fair Wage
Network around the living wage in its supply chains;• in 2023, Kering became a strategic partner of the Wage
Indicator Foundation's initiative to make living wage
estimates freely available to the public;• Kering continued to organize internal living wage workshops,
bringing together various Group's stakeholders and its
Houses, aimed at driving collaborative efforts.

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5 - RESPECTING AND PROTECTING THE ENVIRONMENTIN OUR OPERATIONS AND VALUE CHAIN
The Care pillar of the Group’s Sustainability Strategy, Kering’s environmental policy, defines the goals set by the Group in terms ofimproving its environmental impact and protecting the environment. In operational terms, this vision is expressed by means of aseries of guidelines and two strategic tools:• the EP&L, which measures all the Group’s environmental impacts across the entire value chain;• the Kering Standards: standards and guidance for sustainable production.

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5.1 Management of our environmental impact and the EP&L,
the cornerstone of our approach
5.1.1 The EP&L, Kering’s Environmental
Profit & Loss accountdraws on databases containing a level of uncertainty inherent in
the principle of evaluating environmental impacts using LCA (Life
Cycle Analysis) methods and economic modeling tools.

Since 2012, Kering has measured and quantified its progress
toward becoming a more sustainable Group through its EP&L.
The Group made a commitment to reduce its EP&L intensity by
40% by 2025 compared with 2015 (in € thousands of revenue),
and achieved this target in 2021.

In 2023, Kering continued its work, seeking to:• increase automated data collection and incorporation of dataobtained from financial consolidation processes;• increase the reliability of the data used in the EP&L byenhancing control processes. The voluntary limited
assurance for its EP&L data by an independent third-party
organization, renewed in 2023, is included at the end of this
NFIS. This method strengthens Kering’s approach andincreases confidence among stakeholders;• extend the scope covered, thanks in particular to theincorporation of environmental and monetary impacts
associated with improving the measurement of greenhousegas emissions (newly calculated Scope 3 categories, seesection 5.4.2.1), accompanied by a new breakdown of
impacts between those directly related to products and theircommercialization, and those resulting from the Group’stransversal operations.

5.1.1.1 Approach
The EP&L covers six categories of environmental impact:greenhouse gas emissions, air pollution, water pollution, water
consumption, waste production and land use. It allows Keringand its Houses to measure their impacts on natural capitalacross their entire value chain, firstly in terms of physical units(e.g., tons of CO2 equivalent, hectares of occupied land, tons ofpollutants), and then assign a monetary value. The EP&L results
make it possible to:• translate environmental impacts into a common businesslanguage;• compare environmental impacts between separate units;• compare, for any given environmental indicator, themagnitude of an impact for different locations;• facilitate comparisons between Houses and business units;• ultimately, choose between and prioritize actions.
The results should not be seen as a liability or a cost for Kering.
Rather, they represent a way of assessing the cost to society ofenvironmental changes stemming from the activities of theGroup and its suppliers, by taking into account local contexts andthe impacts on local populations. The construction of the EP&L

The methodological note on environmental reporting – available
on the Kering website – explains the rules, scopes and calculation
assumptions relating to the EP&L. It summarizes the framework
developed and sets out the key aspects of the methodology, as
well as the elements of the estimation process that shape theapproach used and the calculations made, including
assumptions about coefficients and monetization.
Kering has shared its 2023 EP&L results, together with thecoefficients used in the calculations, on the open-source platformkering-group.opendatasoft.com.

Scope covered by the EP&L approach
The EP&L measures Kering’s environmental impacts across its entire value chain, divided into seven tiers, from production of the raw
material used to make its products through to end-of-life of sold products. The graphic below exemplifies in an non-exhaustive way
these tiers for two products, one made from leather and the other made from cotton.

Steps of the value chain covered by the EP&L(1)

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Tier 0: these operations include transversal activities not necessarily related to the products' life cycle and their commercialization.

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5.1.1.2 Optimization strategy
As the cornerstone of its environmental approach, the EP&L also
serves as a strategic management tool by which Kering lays out
its roadmap in terms of sourcing strategy, choice of materials andproduction and transformation processes, allowing it to prioritize
the Group’s sustainability projects and guide the day-to-day
choices of decision makers to reduce Kering’s environmental
impact. Each year, the results and lessons learned from the EP&L
are reviewed by the top management of each House. They thenshare with Kering their action plans and the main benefits
expected in terms of reducing their EP&L footprint.
The main levers to improve the Group’s environmental impact
are:• implementation of the Kering Standards: applicable to all of
the Group’s Houses and their suppliers, the Standards
provide guidelines geared toward reducing the Group’s
environmental footprint;• the roll-out of targeted projects, including:– choice of materials, as regards both the actual materials or
the way they are produced (location, production processes)
such as chrome-free tanning technology or improvements
in suppliers’ environmental performance,– collaboration between the Houses and their various
departments: improving material traceability, setting up
materials purchasing platforms aligned with the Kering
Standards, or support for positive-impact initiatives insupply chains. This is done without compromising theconfidentiality or image of each House;• seeking out disruptive innovations in raw materials andmanufacturing processes to drastically reduce the EP&L
footprint by developing groundbreaking technologies(circularity, biotechnology, blockchain, big data, etc.).

Main actions to reduce the Group’s environmental impact across the entire value chain

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5.1.1.3 EP&L results in 2023

EP&L impact (in € millions)

Kering set the target in 2017 of reducing its EP&L intensity (in €EP&L/€ thousands of revenue) by 40% between 2015 and 2025.
This target was achieved in 2021, four years ahead of schedule. In
2023, Kering confirmed its trajectory to reduce its environmental
footprint, with a 58% reduction in intensity compared to the 2015baseline year with an identical EP&L scope of calculation(2). In
2023, Kering was able to demonstrate the effectiveness of its
environmental strategy by means of its ongoing commitment to
reducing its impact through effective programs and actions
across the entire value chain.

The Group’s overall environmental impact in 2023 across all
categories amounted to €498 million, broken down into twoparts:• Environmental impact relating to the products' life cycle
and their commercialization, which comes to €429 million,or 86% of the Group’s total EP&L footprint. These impacts are
divided between the various tiers of Kering’s value chain andaccording to the various types of environmental impact, asshown in the chart below. The value chain (Tier 1 to 4)
represents the majority of the Group's environmental impact
relating to the products' life cycle and theircommercialization, accounting for 84%, of which 75%
attributable to the production of raw materials (Tier 4) andtheir initial processing (Tier 3). The product use and end-oflife phases account for 10% and 0.1% of these impacts
respectively. The impacts relating to Kering’s own operations,or Tier 0 (consumption of water resources, energy, waste,etc., from stores, tanneries, warehouses and other Keringsites, as well as the impact of its logistics activities), accountfor 6% of the EP&L impacts of the Group’s products.
Greenhouse gas (GHG) emissions and land use remain the
predominant impact indicators, accounting for around 71%of the impact. This confirms Kering’s environmental
priorities.

Change in Group EP&L intensity 2015 to 2023(€EP&L/€ thousand of revenue)

-58%
50

21

2015

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2023

Identical calculation scope means that 2023 data is presented according to 2015 EP&L categories. Accordingly, 2023 data do not include theenvironmental impact of categories added to the footprint since 2015 (impacts related to use of products, end-of-life of products, capital
expenditure, franchises, financial investments, employee commuting and waste, corresponding to categories 2, 5, 7, 11, 12, 14 and 15 of Scope
3 of the GHG Protocol). Subsequent methodological changes to the baseline year categories, such as extension of the scope calculated for IT
services, have not been applied to the baseline year because of a lack of available data for 2015. It should be noted that as part of an ongoing
improvement process, these changes have allowed for more accurate measurement of the Group’s environmental impact, leading to anincrease of the 2023 impact compared with 2015, and therefore to an underestimation of the baseline year,increasing the level of performance
reported. For more details about changes to the EP&L methodology in 2023, refer to the methodological note.

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Breakdown of the monetized environmental impact relating to the products' life cycle
and their commercialization• The environmental impact resulting from the Group’stransversal operations not directly related to its products
comes to €69 million, or 14% of the Group’s total EP&L
footprint.
Kering’s transversal impacts concern its capital expenditures(CapEx), franchises and financial investments, business travel
and employee commuting, company cars and purchase ofservices (OpEx), corresponding to part of Scope 1 of the GHG
Protocol, as well as part of categories 1 and 3 and categories
2, 6, 7, 14 and 15 of Scope 3 of the GHG Protocol. The amountof these impacts has been valued solely on the basis ofgreenhouse gas emissions associated with these categories(tons of CO2e converted into monetary impact).

5.1.2 Internal organizationand management
5.1.2.1 Internal organization andmanaging the network
In addition to the organization and governance of Sustainability(see section 1.5), the management of the Group’s environmental
objectives and their operational application draws on
multidisciplinary committees, bringing together other key
functions at Kering and its Houses to ensure the implementationof its action plans and initiatives.
In 2023, Kering pressed ahead with its Idea Labs: working
groups bringing together experts and operational employees
from the Houses with a view to implementing practicalsolutions to improve the Group’s impact and support its
transformation. The themes covered in 2023 include:• the Kering Standards: standards and guidance for sustainableproduction;• standards for stores and offices;• Clean by Design and energy-savings and purchasing of green
energy in the supply chain;• evolution of regulations concerning ecodesign (ESPR) and thedigital passport program (DPP), as well as circularity andenvironmental labelling;• repairability practices;• help and support for suppliers with adopting sustainable
practices;• the Group’s commitment to deforestation;• materials innovation;• regenerative agriculture;• management of chemicals;• best practices in customer communications on sustainability;• issues specific to the jewelry industry and precious stones.

5.1.2.2 Reporting scope, tools
and methodology
Produced each year since 2003, the Group’s environmental
reporting draws on around 100 indicators representing thevarious Houses’ environmental concerns.
The scope covers all Group entities under operational control,
more specifically entities that are integrated and consolidated
into Kering’s financial statements. The rules governing theinclusion and exclusion of entities are as follows:• new entities (or business units) are included in the reporting
scope two years after their integration;• entities sold during the year are included in the reporting
scope until the date they are sold.
Kering Beauté (including Creed) and Maui Jim (business unit ofKering Eyewear) are not included in the reporting scope for 2023.

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To ensure consistent and standardized reporting practices acrossthe Group, reporting tools are used at all Houses, as well asreporting protocols and annual training courses, in addition tointernal communications via the Group's corporate social media.
The methodological note on 2023 environmental reporting
provides all necessary information regarding the environmental
reporting protocol, such as the scope covered, calculation
methods, data sources and key measurement assumptions, aswell as clarifications regarding the methodology used for
application of the Taxonomy Regulation (see section 5.6). It isavailable in the Sustainability/Measuring our impact/Reportingand indicators section of the Group’s website.

5.1.2.3 Certification procedures
The number of Group sites for which certification attesting to theimplementation of an environmental management system (suchas ISO 14001) is relevant remains limited due to the nature of theGroup’s activities. These certifications are sought primarily forthe sites that have a more significant environmental impact, suchas large logistics centers and tanneries. In 2023, all tanneries
owned by the Group were ISO 14001 certified and 86% had LWG(Leather Working Group) certification(3).
All Gucci’s Italian stores and outlets have both SA8000 andISO 45001 certification, and its production sites and offices arealso ISO 14001 and ISO 45001-certified. In 2019, Gucci also
obtained ISO 20121 Sustainable Events (fashion shows andadvertisements) certification for its Guccio Gucci business (seesection 6.1.2).

5.2 Acting against climate change
Kering follows the recommendations of the Task Force on
Climate-Related Financial Disclosures (TCFD). Within thisframework, Kering has identified among its environmental
impacts a significant contribution to climate change. The Group’s
2023 EP&L results show that 37% of Kering’s monetizedenvironmental impacts related to the products' life cycle andtheir commercialization concern greenhouse gas emissions. This
is in addition to climate-related impacts resulting from theGroup’s cross-business operations that are not directly related toits products – such as capital goods and employee commuting –which also emit greenhouse gases and account for 14% of theGroup’s total monetized impact.
The Group has therefore made climate action a key part of its
Sustainability Strategy by means of a dedicated Climate Strategy,
which includes climate change mitigation and adaptation
measures and aims to transform Kering’s and the industry. This
strategy can be found on the Group’s website.

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Including one until May 2023.

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All the Group's climate action measures are part of a continuous
improvement process, with the aim of stepping up its ambitions
and aligning with best practices and scientific developments. In
2023, the Group worked on improving measurement of its
greenhouse gas emissions (GHG, see section 5.2.4). It also
introduced a new absolute target in 2023 for reducing its GHG by
40% between 2021 and 2035. This target is accompanied by anenhanced decarbonization roadmap, with a specific adaptationfor each House.
Kering’s commitment is being recognized externally. The Group
received a CDP Climate 2023 rating of A and is still included in the
Climate A-List. The Group’s response is publicly available on the
www.cdp.net website.

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5.2.1 Kering’s climate governanceKering has adopted a governance and organizational structure (as set out in chapter 3, "Corporate governance") that takes full accountof the challenges relating to climate change in steering the company’s overall strategy.

5.2.2 Identifying and assessing
the climate-related risks
and opportunities for Kering

The climate scenarios are based on a mix of assumptions andinformation about climate models and other factors such as the
economic and geopolitical context, drawing on both publicly
available data and information held by the Group.

Kering set up a TCFD working group in 2020 (finance, financial
communication, risk management) under the leadership of the
Sustainability department and with the support of internal andexternal experts.

5.2.2.1 Climate scenarios

This section, which follows TCFD recommendations, sets out theoutcomes of this work and includes forward-looking statements
based on current general assumptions and estimates concerning
planned events and other variables.

As the first step in identifying the main risks and opportunities
relating to climate change and assessing their impact for theGroup, Kering devised two Group-specific climate scenarios in2021, which were updated in 2023 on the basis of more recent
assumptions, in particular the latest IPCC (Intergovernmental
Panel on Climate Change) report published in 2022 (AR6).

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Kering-specific scenario
Description of the scenario
Scenarios used
Paris Agreement: temperature Numerous measures to anticipate and mitigate• Physical scenario: RCP 2.6
rise limited to +1.5 °C in 2100 climate change, international cooperation by all• Transition scenario: NGFS Net Zero 2050
governments and international institutions, continuing • Socioeconomic narrative: SSP 1
gradual rises in already high carbon prices, andsignificant efforts to raise consumer awareness aboutclimate change and its consequences
No mitigation: temperaturerise of around +4 °C in 2100

Increase in emissions at the current rate resulting in• Physical scenario: RCP 8.5
extreme climate-related impacts, economic• Transition scenario: NGFS Hot House
development driven by fossil fuels, lack of cooperationWorld
between governments and international institutions, • Socioeconomic narrative: SSP 5
low carbon prices, no efforts to raise consumerawareness and limited demand for sustainableproducts

Assumptions are based on climate scenarios provided by thescientific community, in particular the RCP (Representative
Concentration Pathways) scenarios used as a reference by the
IPCC for physical scenarios, NGFS (Network for Greening the
Financial System) transition scenarios for transition risks, as well
as modeling by experts such as the IEA (International Energy
Agency), the World Bank and the WRI (World Resources Institute).
Specific ad hoc databases recognized by the scientific community
have also been used for some risks (World Bank for carbon prices,
WRI Water Risk Atlas, etc.). These scenarios also take account of
the recommendations of ISO 14090/91 and the TCFD.
Three time horizons were considered: 2030 (short-term), 2040
(medium-term) and 2050 (long-term). Also drawing on the resultsof Kering’s EP&L, the whole value chain was included in thisanalysis framework.
Drawing on these assumptions, the scenarios devised are basedon socioeconomic narratives (SSP – Shared Socioeconomic
Pathways) coupled with technical climate characteristics (RCP
scenarios) and transition scenarios (NGFS scenarios).
These scenarios have helped with the identification, description
and assessment of the Group’s climate risks and opportunities.

5.2.2.2 Identification of climate risks
and opportunities
Drawing on these two scenarios, Kering has mapped the Group’s
climate risks and opportunities, identifying 27 main physical andtransition risks relating to climate change with potential
consequences for its operations and upstream and downstream
value chain, including in particular: the impact of climate changeon the availability and cost of raw materials (leather, plant and— 226

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animal fibers); disruptions to the supply chain or downstream
transportation chain due to extreme meteorological events;
higher operating and capital expenditures relating to energy
efficiency and the impact of carbon pricing. The sevenopportunities identified include promoting regenerative
agricultural practices in Kering’s supply chain, development ofstrategic relationships with suppliers on climate issues andincreased consumer demand for climate-friendly sustainableproducts.
Kering intends to manage climate-related risks andopportunities, anticipate their effects and ensure its resilience byadapting its business model, governance and decision-making
processes, and its supply chain. The assessment, review andmanagement of climate risk is an integral part of the Group’s risk
management (see section 1.3.3 and chapter 5 of this document).

5.2.2.3 Impact assessment
This risk mapping has resulted in different ways of assessing theimpact of risks and opportunities, which feed into the review ofpolicies and strategic directions. As part of a process ofcontinuous improvement, areas for action to enhance theGroup’s climate risk management have been identified in
response to this assessment, as well as the prioritizing of actionplans.
As an illustration, the four risks and the opportunity detailed in
the table below have been identified as material for the Group,and Kering has conducted an assessment of their financial
impact. The analyses performed at this stage have notdemonstrated any material impact on the Group financial
statements.

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Categoryof risks andopportunities
Chronic
physical risk

Activities
affected
Upstreamvalue chain

Chronic
physical risk

Description of impact
Impact of heat stress on theavailability of bovine leather
The Group could face an increase inbovine leather prices due to reduced
availability, caused by a mortality risk of
cattle as a result of increased heatstress.

Impact on the Group’s strategy and action plans

Upstreamvalue chain

Impact of climate change on cotton
availability and yields
The Group could face an increase incotton prices due to reduced
availability, caused the impact ofclimate change on yields.

Strategy: A team of specialists is dedicated to raw
materials sourcing, Kering Standards definition,
relationships with suppliers and monitoring theGroup’s environmental impact with the EP&L.
Objective: Reach 100% of raw materials aligned with
the Kering Standards by 2025.
Action: The Kering Standards favor the use of organic
cotton and encourage suppliers to adopt regenerative
agricultural practices relating to better water
management in particular.

Chronic
physical risk

Upstreamvalue chain
and direct
operations

Impact of repeated extreme climate
events on the operations of certain
directly owned sites and suppliers
Depending on their location, theexposure of certain sites – in particulartanneries and slaughterhouses – towater stress could affect hideproduction if water use is reduced oreven interrupted, which could lead toactivity disruption. Some sites’
operations could also be affected by
reduced employee productivity due toweather conditions, as well as higher
operating costs, particularly relating toenergy.

Strategy: The Group is working on adopting a water
management strategy, in particular at its tanneries.
Objective: Decrease by 35% the absolute quantity ofwater used between 2022 and 2035 in owned
tanneries.
Action: Kering invests in water efficiency projects andlooks for new tanning methods to reduce water
consumption and pollution discharges.

Transition risk

Upstreamvalue chain
and direct
operations

Increase in direct and indirect costs
relating to carbon pricing
The Group could be subject to a rise inoperating costs relating to energy,transportation and different materials
due to more products being covered bya carbon pricing mechanism in regions
where climate policies are being
reinforced.

Strategy: Kering has initiated efforts to reduce its
carbon footprint to reduce the impact of this risk for
the Group.
Objective: Decrease by 40% in absolute value all of theGroup’s greenhouse gas emissions between 2021 and2035.
Action: Kering has already engaged operational andcapital expenditure to decarbonize its operations andvalue chain.

Opportunity

Directoperations

Reduction in direct operating costs
by using renewable energy
The Group could reduce operating costs
relating to electricity purchased bysourcing renewable electricity, due tothe expected increase in conventional
electricity prices linked with carbon
pricing and expected greater volatility infossil fuels prices.

Strategy: Using renewable energy is one of the Group’s
central objectives in order to achieve its objectives for
reducing Scope 1 and 2 emissions.
Objective: Reach in 2022 100% renewable electricity inall sites.
Action: In addition to buying renewable energy
certificates, which allowed for 100% renewableelectricity to be achieved in all countries where this ispossible in 2022 and 2023, the Group is installing solar
panels on some of its sites, such as the Trecate
logistics center, and developing a Collective Virtual
Power Purchase Agreement (CVPPA) as part of theFashion Pact in Europe.

Strategy: Kering relies on nature-based solutions, inparticular choosing raw materials from regenerative
agriculture.
Objective: Support the transition towards regenerative
agricultural practices for 1 million hectares by 2025.
Action: In 2021, Kering created the Regenerative Fundfor Nature to support the transition towards
regenerative agriculture among farmers. Seven
projects are currently supported, including on leather.

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5.2.3 Kering Climate Strategy: gearing our business model to address climate issues
Kering has developed a Climate Strategy based on four main areas:
1.Mitigation of climate-related risks
by reducing emissions

2. Adaptation and resilience thanks to nature-based
solutions

3. Positive contribution to climate change mitigation

4. Industry transformation

5.2.3.1 Pathway for mitigating greenhouse gas emissions and decarbonization strategy
5.2.3.1.1 Targets for reducing the Group’s carbon footprint
In 2016, Kering was the first luxury goods group certified by the Science Based Targets initiative (SBTi) for its carbon footprint reduction
targets. It has drawn up an ambitious Climate Strategy based on three complementary short-, medium- and long-term objectives:(1) See section 5.2.4 for a description of the Scope 3 categories taken into account in this objective.
(2) All Scope 3 categories are taken into account in this objective. Details of the categories are provided in section 5.2.4.

5.2.3.1.2 Transition plan anddecarbonization strategy
To achieve these objectives, the Group has made a commitment
not only with regard to its own operations but across its entire
value chain. A decarbonization roadmap has been drawn up at
Group level, and adapted to each of the Houses to fit its activity
and the main emission sources identified. It is based on major
investment projects and initiatives covering all the Group's
activities and main logistics sites, tanneries and stores, as well as
its entire value chain. The Group has initiated measuresconcerning each of its main sources of emissions centeredaround three pillars: fair production, scaling up of pilot projects
and best practices (sourcing, circularity, innovation), anddevelopment of new business models.

Group operations (Scopes 1 and 2)• energy-saving measures: Given the energy issues that arose
in winter 2022/23 and the French government’s appeal toreduce consumption by 10% in France, the Group has
strengthened its energy efficiency strategy with an energysaving plan implemented by all Houses and headquarters;• optimizing sites’ energy efficiency:– the Kering Standard for Stores defines expected
performance levels on the basis of 11 priority themes,
including energy management, lighting and renewableenergy, in particular using LED technology for lighting,allowing for energy savings of up to 90% and reachingalmost 100% implementation in store selling areas,— 228

KERING - 2023 Universal Registration Document– environmental certification of sites renovated by Kering:
LEED (Gold or Platinum level), HQE or BREEAM, which
include criteria concerning optimum energy efficiency, as
well as WELL certification (based on user wellbeing inbuildings, including thermal comfort),– centralized management of sites’ energy performance,
allowing for performance improvements by streamlining
the energy procurement process through pooling andconsolidating energy consumption, as well as increased useof renewable electricity. The project – which covers Europe,
the United States and Asia – has resulted in tangible energy
savings and lower costs for the Houses and the Group;• energy supply strategy:– on-site renewable energy generation with the installation ofsolar systems on roofs and car parks,– buying renewable electricity: Kering favors signing powerpurchase agreements for locally produced renewableelectricity in cases where the site pays its bills directly andwhere the local electricity market allows. For locations
where this practice is not possible, Kering opts for buying
renewable electricity certificates from solar or wind powersystems, selecting only new or recent installations (lessthan 10 years old) in order to speed up the energy transitionin the countries in which it operates. Since 2022, Kering hasachieved the target of 100% renewable electricity inaccordance with RE100 guidelines,

Sustainability
Respecting and protecting the environment in our operations and value chain– signature of a Power Purchase Agreement (PPA): Kering has
joined 12 brands, coordinated by the Fashion Pact, in theirefforts to sign a transnational Corporate Virtual Power
Purchase Agreement (CVPPA). Under the agreement,
representing a total of 160 GWh per year (including 43 GWh
per year for Kering), a new solar farm is to be built insouthern Spain. The agreement guarantees the developer ofthe solar farm with a stable sales value for energy generated
over the first 10 years in operation, allowing it to secure
financing for the project. Construction work began in 2023
and the farm will generate power as of 2025. The project willallow for 65,000 tons of CO2e to be avoided each year. The
CVPPA will cover around one third of the Group’s direct
total electricity consumption in Europe, also reducing theenergy cost and price fluctuations.

Across the entire supply chain (Scope 3)
The Group has launched initiatives to reduce its main emissions
sources, in particular those relating to purchased goods andservices and goods transportation:• product eco-design and sustainable sourcing strategy:
implementation of the Kering Standards for all raw materials
and shift of production processes towards options with lessenvironmental impacts, in particular in terms of carbon
impact;• fair production: capitalize on planification and productoffering to adjust production volumes as closely as possible
to sales;• developing the use of renewable energy and energy
efficiency programs with suppliers, in particular with the
Clean by Design program, which aims to reduce textile
manufacturers’ environmental impact by organizing audits
reviewing 10 of the production plant’s key performanceindicators (water, energy, waste) (see section 4.1.2);• transportation: work with logistics platforms, the Houses
and the Group’s transportation companies to optimize goods
transportation at the various stages of the supply chain
through to stores, in particular:– streamlining itineraries, optimizing fill rates, functional
design, reverse logistics,– developing alternative means of transport, particularly forthe last mile,– improving fleet performance: Preference is given to themost efficient vehicles and aircraft, with very ambitious CO2
emissions standards (maximum of 600 g of CO2 per metricton-km for air freight, EURO 6 standard for road freight).

5.2.3.2 Climate risk adaptation
Due to the impacts of climate change, Kering faces physical andtransition risks as described in section 5.2.2, whose financial andoperational impacts depend on the climate scenario considered
for the Group ("Paris Agreement" scenario or "No mitigation"
scenario as described in section 5.2.2). In particular, in theaccelerated transition scenario, Kering would be more severely
affected by the risks relating to transition, and in the no
mitigation scenario, it would be more severely affected by thephysical risks.

Kering’s adaptation plans vary according to the type of risk andtheir probability of occurrence for Kering and its value chain,such as the water use reduction policy in its operations andsites’ exposure to extreme meteorological events. In terms of its
upstream supply chain, Kering is working in particular on thefollowing areas to secure its sourcing over the long-term andsupport nature-based solutions, in particular the developmentof regenerative agriculture:• sourcing: implementation of the Kering Standards bysuppliers with a target of 100% raw materials in line with the
Kering Standards in 2025. These Standards list recommended
third-party certifications in the Group’s supply chain thatguarantee low-impact and more resilient agricultural
practices, such as organic agriculture;• direct support for sourcing programs for certain key raw
materials: for example, Kering has partnered with the Savory
Institute to promote sourcing of raw materials from theregenerative herding system, in particular for bovine leather;• Kering Regenerative Fund for Nature: the aim of this fund isto support the transition to regenerative agriculture amongproducers of key raw materials for the Group in order to reachthe target of one million hectares in 2025. Seven projects are
currently supported in leather, cotton, wool and cashmere(see section 5.3.2).
These regenerative agriculture projects support climate
resilience. The practices adopted – minimizing tillage, crop
rotation, maintaining plant cover – improve soil health and its
ability to capture carbon, retain water and support biodiversity.
These factors together help make the ecosystem more resilient toclimate change impacts, such as extreme weather events andtemperature fluctuations, thereby protecting the environment
and ensuring sustainable production for future generations.

5.2.3.3 Positive contribution to climatechange mitigation
In addition to measures of rcarbon emissions reduction, Keringhas voluntarily invested since 2012 in nature-based carbon
offsetting projects. These projects help to mitigate climatechange beyond the Group’s value chain and preserve and restore
sensitive ecosystems (forests, wetlands and coastal areas), which
are essential carbon sinks. They generate carbon credits for theGroup, which are used to offset direct and indirect emissions
from the Group and its supply chain. Since 2019, the volume ofcarbon credits bought by Kering has corresponded to all Scope 1,
2 and 3 emissions, excluding product use and end-of-life
categories(4).
Credits come from carbon removal projects and greenhouse gas
emission avoidance projects. These include programs aimed at
reducing emissions from deforestation and ecosystemdegradation, which are certified and verified according tointernational standards such as the Verified Carbon Standard(VCS) or Gold Standard.

The transition risks to which Kering is exposed – in particular therisk relating to carbon pricing described in section 5.2.2 – arecovered by the mitigation measures described in section 5.2.2.
Adaptation to climate-related risks focuses in this section more
specifically adaptation to physical risks.

(4)

See section 5.2.4.4 for more information about carbon offsetting in 2023 and the amount of related credits.

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Kering is also continuing to diversify and step up its efforts to
help mitigate climate change beyond its own supply chains, in
two main areas:• support for targeted projects that use emerging techniques in
key regions for the Group activities and in relationship withraw materials chains for the fashion industry: investments in
Low Carbon Label projects in partnership with IDELE (Institut
de l’Élevage, the French Livestock Institute) since 2020;
involvement in regenerative agriculture projects coordinatedby Sysfarm since 2022;• the Climate Fund for Nature, initiated by Kering and managed
by Mirova. This fund allows for new high-quality nature-based
solutions projects to be launched that generate carbon
credits for Kering and other co-investors: around two thirds inremoval projects and one third in avoidance projects. It aims
to contribute 10 million metric tons of CO2 equivalent over
15 years for Kering and deliver additional benefits forcommunities, with a particular emphasis on promoting
women’s rights and empowerment. In 2023, this fundgathered €195.5 million of investments.

5.2.4 Measuring and results of
the Group’s carbon footprint

5.2.3.4 Contribution to industry
transformation

Breakdown of the Group’s greenhouse gas
emissions by Scope

5.2.4.1 The Group’s total emissions
and improvement relative
to reduction targets
Kering’s greenhouse gas emissions as stated in the NFIS arecalculated according to the GHG Protocol accounting standard(5).
All results are presented in terms of CO2 equivalent (CO2e) andaccording to the market-based methodology(6) unless statedotherwise. The methodological note on environmental reporting
details the main rules for calculating the Group’s carbon footprint.
The Group’s carbon footprint in 2023 totaled 2,596,739 tons ofCO2e (Scopes 1, 2 and 3 according to the GHG Protocol), including
22,841 tons from energy use (Scopes 1 and 2) and 2,573,898 tons
from upstream and downstream activities (Scope 3). Operations
under Kering’s direct control (Scopes 1 and 2) therefore accountfor around 1% of the Group’s total carbon footprint.

0.6%

Scope 1

88.3%

Scope 3 upstream

0.3%

Scope 2 market-based

10.8%
Scope 3 downstream

Total Group greenhouse gas emissions (in tCO2e)

Scope 1
Scope 2 – market-based
Scope 3TOTAL (tCO2e)

2023
14,9187,923
2,573,898

2022
21,6607,598
2,935,728

2021
19,281
11,2272,492,861

Change 2023/2022
-31%
+4%
-12%

2,596,739

2,964,986

2,523,369-12%

Greenhouse gas emissions (Scopes 1, 2 and 3) are also captured
in the EP&L and then monetized (see section 5.1.1.3).
As part of its continuous improvement approach, the Group
worked in 2023 on improving measurement of its greenhouse gas
emissions, primarily within the context of defining a newpathway for reducing in emissions in order to strengthen its
climate ambitions.

(5)
(6)

— 230

Percentage of total
2023
0.6%
0.3%
99%

In 2023, the Group’s carbon footprint was adjusted for 2021, 2022
and 2023 to specify the calculation of certain Scope 3 categories
and add categories that had not previously been quantified. All
these adjustments are shown in the table below. For more details
about changes in methodology, refer to the methodological noteon environmental reporting.

In addition to the most recent guidelines applicable in the absence of methodological precisions from the GHG Protocol for Scope 3 category 4(see methodological note on environmental reporting).
Market-based: method for calculating GHG emissions from electricity consumption reflecting the specific features of selected power purchaseagreements, including the purchase of guarantees of origin. Location-based: method for calculating GHG emissions from electricity
consumption using emission factors related to the average mix of fuels used to generate electricity in a given country.

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Reconciliation with GHG emissions published in the 2022 Universal Registration Document
2023
Total (tCO2e) as reported in the 2022 URD
Category 1 (Purchased Goods and Services) – Change in methodology
for emissions relating to services purchases and update of databases

2022
2,427,724

2021
2,381,991

181,533-162,065

5,665-19,023

3,947-6,2490
369,087-4,715
310,460

2,964,986

2,523,369

Category 6 (Business Travel) – Change in methodology and additionof emissions related to trains and taxis
Category 11 (Use of Sold Products) – Improved perimeter accuracy
Category 12 (End-of-Life Treatment of Sold Products) – Improved
perimeter accuracy
New Scope 3 categories measured

2,596,739

Adjusted total (tCO2e)
Results relative to the Group’s GHG
reduction targets
1. Short-term targets (certified by the SBTi)
Kering’s short-term targets concern Scopes 1 and 2, as well as thefollowing Scope 3 categories(7): Purchased Goods and Services(Cat. 1 of the GHG Protocol), Fuel- and Energy-Related Activities

Not Included in Scope 1 or Scope 2 (Cat. 3), Upstream
Transportation and Distribution (Cat. 4), Business Travels (Cat. 6),
Downstream Transportation and Distribution (Cat. 9). This
corresponds to the targets validated by the SBTi in 2021 when
they were certified.

The results for 2023 and the progress made relative to the baseline year (2015) and the target year (2030) are shown below:

Scopes 1 & 2 (tCO2e):90% absolute reduction by 2030

Scope 3 (tCO2e/€m of gross margin):
70% intensity reduction by 2030

-90%

100,635

-70%

-77%

292.6

-55%
130.5

22,841

2015

2023

87.8

10,063
2030

2015

2023

2030

2. Medium-term target
The Group’s medium-term target concerns all of Scopes 1, 2 and3 (all categories – see section 5.2.4.3). All categories of Scope 3
emissions have been included in this target following the work
done by Kering in 2023 to extend the measurement of Scope 3
emissions, including the least material sources of emissions. The
results for 2023 and the progress made relative to the baseline
year (2021) and the target year (2035) are shown below:

Scopes 1, 2 & 3 (tCO2e):
40% absolute reduction by 2035
-40%
+3%2,523,369

2,596,739
1,514,022

2021

(7)

2023

2035

The calculation methodology for Categories 1 and 6 has been revised for 2021, 2022 and 2023. These categories have not been amended forthe 2015 baseline year. The updated calculation has resulted in an increase in corresponding emissions for 2023, which is not replicated in2015 because of the lack of available data. This change results in an increase relative to the baseline year, which is understated.

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5.2.4.2 Measuring the carbon footprintof the Group’s operations(Scopes 1 & 2)

• indirect emissions from electricity, steam, heating andcooling production (Scope 2), representing 7,923 tCO2e(market-based) in 2023.

In 2023, GHG emissions relating to operations under the Group’s
direct control (Scopes 1 and 2) amounted to 22,841 tCO2e (1% of
total emissions). In accordance with the GHG Protocol, theseemissions correspond to the following for Kering:• direct emissions from on-site fuel usage and fuels consumed
by Kering’s company cars fleets (Scope 1), representing
14,918 tCO2e in 2023;

Sources of emission factors used are set out in themethodological note on environmental reporting for 2023.

Scopes 1 and 2 greenhouse gas emissions (tCO2e)
Scope 1
Energy sources
Natural gas
Heating oil
LPG
Other energy sources
Company cars
Scope 2 – Market-based

2023
14,918
9,852
9,753
90
0
9
5,066
7,923

2022
21,66012,091
11,577
273
20
221
9,569
7,598

2021
19,281
13,72812,993
488
17
230
5,553
11,227

Change 2023/2022
-31%
-19%
-16%
-67%
-100%
-96%
-47%
+4%

Electricity
Steam, heating, cooling

7,299
624

7,055
543

10,828
399

+3%
+15%

TOTAL Scopes 1 and 2 market-based (tCO2e)

22,841

29,25830,508-22%

Scope 2 – Location-based
Electricity

102,900
102,276

98,36097,81789,641
89,242

+5%
+5%

624

543

399

+15%

Steam, heating, cooling

Breakdown of greenhouse gas emissions
for Scopes 1 and 2 in 2023 (%)
43%

22%

Scope 1 - Energy

Scope 1 Transportation

35%

Scope 2 Market-based

Scope 1 and 2 CO2 emissions decreased by more than 20% in
2023, primarily as a result of a 31% reduction in Scope 1
emissions in relation to energy consumption at the Group’s sites
and vehicles fuel consumption.

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The decrease in emissions from energy consumption at theGroup's sites was due to energy efficiency efforts, in particularduring winter 2022-2023. Emissions from fuel consumption bycompany cars are considerably lower than in 2022, mainly as aresult of the updated calculation methodology, which allowed forbetter measurement of the Group’s vehicles emissions,particularly for electric and hybrid vehicles. The Group applies
environmental criteria when selecting company cars and isgradually increasing the number of electric vehicles in its fleet. As
part of this effort, Pomellato, Dodo, Kering Eyewear, Saint
Laurent and Kering Corporate are including hybrid and electricvehicles in their fleets. At the end of 2023, these vehicles
accounted for 67% of the vehicle fleet at Gucci, 63% at Bottega
Veneta and 44% at Balenciaga.
Scope 2 emissions remained stable in 2023 relative to 2022. The
Group had already achieved significant reductions in theseemissions in 2022 by sourcing renewable electricity in all
countries where this was possible. These efforts continued in2023.

Sustainability
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5.2.4.2.1 Measurement of energy consumption by Kering’s operations
and results of energy efficiency programs
Energy consumption (in MWh)
2023
281,875

2022
270,7802021
235,122

Change2023/2022+4%

266,680

261,548

229,562+2%

Biomass
Non-renewable energies

14,531
664
69,2558,478
754
78,8664,700
860
90,686

+71%
-12%
-12%

Purchased electricity
Natural gas

15,14447,592

15,03056,49320,063
63,403+1%-16%

Heating oil
Steam, heating, cooling

369
6,087

1,026
5,315

1,834
4,486

-64%
+15%

LPG
Fuel for transportation and on-site handling

0
63

86
309

72
190

-100%
-80%

Other energy sources

0

607

638

-100%

TOTAL

351,130

349,646

325,808+0.4%

Energy consumption – pro forma scope
Total energy – pro forma scopeof which electricityof which electricity from renewable sourcesof which natural gas

288,893
237,620
227,756
45,502

303,218
242,504
232,005
54,400299,995
232,207214,296
60,806

-5%
-2%
-2%
-16%

Renewable energies
Electricity purchased from renewable sources
Electricity produced from renewable sources on siteand consumed by the GroupPro forma figures are calculated taking into account open sites
on a full-year basis for the three consecutive reporting years
considered, i.e., 2023, 2022 and 2021.
77% of the Group’s energy consumption corresponds to theheating, lighting and air conditioning of stores, warehouses andoffices. Electricity is still the Group’s main energy source,
accounting for 84% of consumption, and 95% of electricity isfrom renewable sources.
Total annual energy consumption remained stable in 2023.
Electricity consumption increased by 4% as a result of the large
number of site openings in 2023, increasing the floor space of theGroup’s sites by 5%. Energy efficiency efforts also led to a
reduction in natural gas consumption, particularly at the Group’s
industrial sites and warehouses.

Energy intensity in MWh/m2
excluding industrial sites

Energy intensity
excluding industrialsites (MWh/m2)

2023

2022

2021

Change2023 vs.
2022

0.155

0.157

0.161

-1%

The Group has adopted an energy-saving strategy aimed at
reducing worldwide energy demand (from October 2022 to March2023 relative to winter 2021-2022) by reducing the use of lighting,heating and air conditioning when they are not being used.
Thanks to energy efficiency measures, steady improvement inenergy consumption has been observed since 2015 across all
Group sites. Energy intensity has decreased by 26% for offices,
48% for industrial sites, 37% for stores and 31% for warehouses.

In addition, more than 300 LEED certifications were obtained by
Kering and its Houses for their sites and stores in 2023. At the endof 2023, this included 147 Gucci stores and four offices,
32 Alexander McQueen stores, 45 Saint Laurent stores and four
offices, and 90 Balenciaga stores.
Kering purchases Energy Attribute Certificates (EACs). In 2023,
renewable electricity accounted for 95% of the Group’s electricity
consumption (100% in all countries where this was possible).
Kering either generated its own electricity, used renewableelectricity from local suppliers or purchased EACs corresponding
to its consumption in accordance with the RE100 guidelines. The
remaining 5% corresponds to consumption in markets where it
was not possible to purchase renewable electricity. South Korea
accounts for 79% of consumption in these countries. As a result,
Kering has achieved the RE100 target of using 100% renewableenergy in accordance with RE100 guidelines, this objective being
already reached in 2022 and maintained in 2023.
In terms of on-site energy production, at the end of 2023, Kering
had solar power systems on the roofs and car parks of around20 sites, as well as a site using biomass (wood). Self-generated
solar power accounts for 4% of total energy consumption. Heat
production is the only area in which Kering still uses fossil fuels.
This accounted for 15% of total energy consumption in 2023, lessthan in 2022 in line with the Group’s efforts. Boilers are gradually
being replaced with electric heat pumps powered by electricity
from renewable sources.
Feasibility studies on the electrification of installations using
natural gas have been conducted for some sites (3 in 2023). The
operation turned out to be feasible and will be implemented in
the next two years for ironing installations in a textile production
plant.

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Within this framework, the Houses are continuing to develop onsite renewable electricity generation projects: Balenciaga has
started in 2023 the installation of solar panels at its Italianproduction site specialized in leather goods, Bottega Veneta has
installed three photovoltaic systems at its offices in Milan (in 2011
and 2014) and its workshop in Montebello (in 2013), representing
a total of 118 kW, and Gucci, has installed solar panels at around10 sites in Italy as part of its Copernico project, representing a
total of 2.4 MW and around 5% of the energy requirements ofthese sites.

5.2.4.3 Measuring the carbon footprint
outside the Group’s operations(Scope 3)
GHG emissions related to the value chain and not under theGroup’s direct control (Scope 3) amounted to 2,573,898 tCO2e in
2023, or 99% of total emissions. The Scope 3 categories covered
according to the GHG Protocol are summarized in the table below(see the methodological note on environmental reporting).

Scope 3 emissions by category (tCO2e)

UPSTREAM EMISSIONS
Category 1 - Purchased goods and services
Category 2 – Capital goods
Category 3 - Fuel-and energy-related activities
not included in Scope 1 or Scope 2

2022
2,644,066
2,034,304
308,5502021
2,173,894
1,679,899
250,325

35,21638,232

28,848-8%

1%

138,546
3,902
23,68837,599280,192

199,431
4,558
21,23037,761
291,662

163,188
3,037
9,828
38,769318,967

-31%
-14%
+12%
-0.4%
-4%

5%
0.2%
1%
2%
11%

21,580237,457
4,626
16,272257

44,311225,089
4,044
17,934284

73,078223,462
4,099
18,099
229

-51%
+5%
+14%
-9%
-10%

1%
9%
0.2%
1%
0.01%

2,573,898 2,935,728 2,492,861-12%

Category 4 – Upstream transportationand distribution(1)Category 5 – Waste generated in operations
Category 6 - Business travel
Category 7 - Employee commuting
DOWNSTREAM EMISSIONS
Category 9 – Downstream transportationand distribution
Category 11 – Use of sold products
Category 12 - End-of-life treatment of sold products
Category 14 – Franchises
Category 15 – Investments

TOTAL SCOPE 3

Change Contribution to2023/2022
total Scope 3
-13%
89%
-15%
67%
+5%
13%

2023
2,293,706
1,729,426
325,329(1) 21,008 tCO2e have been deducted from this category due to Kering purchasing an equivalent amount of emissions reduction certificatescorresponding to support one of its main transportation service providers with sourcing sustainable aviation fuel (see section 5.2.4.3.3), in
accordance with the latest guidelines for quantifying these mechanisms (see methodological note). These emissions, not including thesecertificates, amount to 159,554 tCO2e.

5.2.4.3.1 Emissions relating to purchased goods
and services (Category 1)
Emissions related to Kering’s purchases of goods and services arecalculated by the EP&L tool and cover all production andprocessing of raw materials used in the products and packagingof the Group Houses (Tiers 3 and 4), manufacturing and final
assembly of sold products (Tiers 1 and 2). They account for 67%
of Scope 3 emissions, or 1,729,426 tCO2e.
These emissions decreased by 15% relative to 2022, in line withthe reduction in the Group’s activity in 2023, resulting in lower
volumes of products purchased and expenditure with suppliers.
In 2023, suppliers that entered the Clean by Design program inlate 2020 completed implementation of the first measures. The
main areas concerned:• automated water dosage in washing operations, allowing fora saving of up to 54% in water and 20% in natural gas at threefacilities;• the introduction of humidity controls in drying processes,
allowing for a saving of up to 20% in gas, at two facilities;• general improvements in the automation and control ofprocesses.

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In addition, several suppliers have installed solar systems on theirroofs.

5.2.4.3.2 Emissions relating to capital goods(Category 2)
Emissions relating to capital goods cover all of Kering’s
expenditure in relation to sites construction and renovation
works, as well as purchases of furniture, vehicles and machinery.
These emissions make up 13% of Scope 3 emissions, or
325,329 tCO2e.
There was a slight increase in 2023 relative to 2022 due to specificspending on new machinery at some of the Group’s sites.
In 2023, the Group initiated a review of its standards for thedevelopment and construction of stores and buildings, with themain aim of achieving full alignment with the EU Taxonomy.
Furthermore, the number of LEED and BREEAM sites increased
further, with some projects achieving LEED Platinum, inparticular the new Kering offices in Milan and Scandicci and one
in Paris, a first for an historic building. Boucheron’s historicbuilding on Place Vendôme in Paris obtained BREEAM
certification in 2023 with a rating of Very Good.

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5.2.4.3.3 Emissions relating to transportationof goods (Categories 4 and 9)
Categories 4 and 9 of the GHG Protocol, which relate totransportation, can be divided as follows:• upstream transportation (Category 4): this includes alltransportation of goods paid for by the Houses or the Groupbetween suppliers and logistics platforms or industrial sites,
between central logistics platforms and local distribution
centers and between central logistics platforms or local

distribution centers and points of sale. Upstream
transportation includes road, rail, sea and air freight.
Upstream transportation accounts for 87% of emissions
relating to goods transportation. Kering uses road and air
freight to carry its finished products and merchandise
between production centers and logistics platforms, andbetween logistics platforms and stores. Airfreight is only used
for distant markets (Asia, Americas, Oceania).

GHG emissions associated with upstream transportation by mode (tCO2e)Road freight
Sea freight
Rail freight
Air freight2023
10,184561
10148,7992022
23,3701,232
27
174,802

2021
7,690
1,018
75
154,405

Change2023/2022
-56%
-54%
-63%
-15%

• Deductions relating to purchasing of sustainableaviation fuels-21,00800

N/A• Air freight including deductions relating to purchasingof sustainable aviation fuels

127,791

174,802

154,405

-27%

TOTAL

159,554

199,431

163,188-20%

TOTAL – Including deductions relating
to purchasing of sustainable aviation fuels

138,546

199,431

163,188-31%

The reduction in emissions in 2023 relative to 2022 is due to a
reduction in volumes of goods. This reduction is consistent acrossall transportation flows and means of transport used.
Furthermore, in 2023, Kering invested in the development ofsustainable aviation fuels by supporting their use in the air freightmarket via one of its transportation providers. These biomassbased fuels allow for significant reductions in air freight
emissions of up to 91% compared with fossil fuels. This
investment represents an equivalent of 21,008 tCO2e for theGroup in the form of certificates, allowing for a 14% reduction incarbon emissions relating to air freight and thereby contributing
to the 27% reduction in air freight emissions relative to 2022 (seemethodological note on 2023 environmental reporting).
• downstream transportation (Category 9): this covers alldeliveries of finished products between logistics platforms
or points of sale and customers.

GHG emissions associated with downstream transportation by mode (tCO2e)Road freight
Sea freight
Air freight

2023
3,581
4
17,995

2022
2,424
0
41,887

2021
2,627
0
70,451

Change 2023
vs. 2022
+48%
N/A
-57%

TOTAL

21,58044,31173,078-51%

The reduction in emissions relating to downstream transportation between 2022 and 2023, particularly in air freight, is due to lower ecommerce sales volumes, as well as some adjustments to the methodology specifying the classification of transportation flows andresulting in certain flows being categorized as upstream transportation.

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5.2.4.3.4 Emissions relating to employee travel (Categories 6 and 7)
GHG emissions associated with employee travel (tCO2e)
2023

2022

2021

Change 2023
vs. 2022

Business travel - TOTAL

23,68821,2309,828• of which Business air travel• of which Business train travel

20,837614

18,879
979

8,594
517

• of which Business road travel
Commuting

2,237
37,5991,372
37,761

38,769

+12%
+10%
-37%
+63%
-0.4%

After two years of public health restrictions in 2020 and 2021,
which affected international flights in particular, business travels
resumed in 2022 and continued to rise in 2023, resulting in an
increase in associated carbon emissions.

Sections 5.5 and 6.1 of this document contain a detailed
description of Kering’s initiatives to reduce the impact of thesecategories and influence consumers.

Emissions associated with commuting remained stable between
2022 and 2023 and decreased relative to 2021. This is consistent
with the alternatives developed by the Houses to encourage useof public transportation and environmentally friendly modes oftransport, as well as car pooling among employees.

5.2.4.4 Contribution to climate change
mitigation

5.2.4.3.5 Emissions relating to use of soldproducts and end-of-life treatment(Categories 11 and 12)717

In 2023, Kering offset 2,135,568 tCO2e, corresponding to Scope 1,
2 and 3 emissions in 2022, excluding use of products (Scope 3 –Category 12 of the GHG Protocol) and as calculated for 2022
reporting. These offset emissions therefore do not include the
new Scope 3 categories or the methodological adjustments
calculated in 2023, as detailed in section 3.2.

Emissions relating to the use of sold products and their end-oflife treatment account together for 9% of the Group’s Scope 3
emissions, amounting to 237,457 and 4,626 tCO2e respectively.

5.3 Preserving biodiversity and ecosystems
The Group’s 2023 EP&L results show that 34% of Kering’s
monetized environmental impacts associated with the life cycleof its products and their sale relate to biodiversity and land use,
and that they mostly happen in Tier 4 (production of raw
materials) of its supply chains.

5.3.1 Biodiversity strategy: preserving
natural capital across the entire
supply chain (up to Tier 4)
The Group’s Houses primarily use natural materials to
manufacture their products. These raw materials come fromfarms, rangelands, forests and mines. Protecting ecosystems andensuring they work properly are essential for Kering.

5.3.1.1 Biodiversity Strategy
In 2023, Kering published the second edition of its Biodiversity
Strategy, which aims to stem biodiversity loss, restore
ecosystems and protect the species composing them, as well as
drive systemic change through the entire supply chain. Thisversion adds to and explains the policy to combat deforestationand the conversion of ecosystems.
Kering has structured its activities around four phases: avoid,
reduce, restore/regenerate and transform. This conservation
hierarchy is applied as recommended by the Science Based
Targets Network (SBTN) to create a nature-positive trajectoryand develop scientific methods for ensuring that human activities
respect planetary boundaries.
Kering is also one of the Taskforce for Nature-Related Financial
Disclosures (TNFD) Early Adopters, undertaking to publish reportsaligned with the TNFD reference framework.

Focus: Kering selected to pilot Science-Based Targets for Nature, an SBTN initiative
It was announced in 2023 that Kering is one of 17 companies in the world selected by SBTN to pilot the first version of the SBTN
guidance for freshwater and land. The pilot will enable the Group to set freshwater and land targets in line with planetary
boundaries.

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5.3.1.2 Objectives
Kering is committed to contributing to a net positive impact on
biodiversity by 2025, in line with target 15 of the Global
Biodiversity Framework, as agreed at the COP15 conference on
diversity conference (Montreal, 2022):• Kering will support the transition to regenerative agricultural
practices across one million hectares of land in landscapes
where some of the main raw materials in Kering’s supply
chain are produced, such as leather, cotton, wool andcashmere. To achieve this, Kering has partnered withenvironmental NGO Conservation International to create theRegenerative Fund for Nature. The Fund supports projects
that transform farming and rearing practices in areas that
supply raw materials to the fashion industry;• Kering will protect one million hectares of critical andirreplaceable habitats outside of its supply chain, primarily
through programs that deliver a positive impact forbiodiversity protection, carbon sequestration and improved
livelihoods for local communities.
These two million hectares represent more than six times theglobal footprint of Kering’s direct and indirect (supply chain)
operations, calculated by the EP&L as 350,000 hectares in 2020.
Kering has therefore included a significant security margin in its
efforts to have a net positive impact on biodiversity.
The Group is also aligned with target 19 regarding increasing thelevel of financial resources for nature conservation andrestoration via the Climate Fund for Nature.

5.3.2 Responsible land use and protection of biodiversity
5.3.2.1 Measurement of ecosystem services
and biodiversity and focus on key
geographic regions
The "land use" part of the EP&L assesses how raw materials usedby the Group affect ecosystem services and biodiversity. The
methodology used to value natural capital for this indicator takes
account of the following three factors as a proxy for the
ecosystem services provided: species richness, above-groundbiomass and soil organic carbon (SOC).

In 2023, as part of the SBTN pilot, Kering assessed its pressureson nature, the state of nature associated with these pressuresand the state of biodiversity, in alignment with Version 1 of the
Science Based Targets for Nature guidance. This exercise was
performed at hydrobasin level for the Group’s direct operations(offices, stores, production plants, warehouses and tanneries)
and at country level for impacts associated with the upstream
value chain, according to the stages shown below.

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5.3.2.2 Actions guided by the conservation hierarchy+
Protect one
million hectaresof irreplaceable
criticalecosystems

POSITIVENET
IMPACT

Regenerative Fundfor Nature(1 million hectares)

Restore & Regenerate
Biodiversity
impactEXAMPLESOF ACTIONSReduceReduce

Avoid

Avoid

Avoid

We AVOID sourcing leather
that may be associated with
deforestation or conversionof natural ecosystems.

We are REDUCING theamount of pesticides
and harmful inputs, by
sourcing organic
materials

We are REGENERATING
1 million hectaresof farmland andrangelands via theRegenerative Fund for
NatureZERO
NET LOSS–
1. Avoid
As a priority, the Houses avoid any known negative impact on theenvironment. This includes avoiding the loss of natural
ecosystems through a zero deforestation and conversion
commitment, which applies to all natural materials used, as
specified in the Biodiversity Strategy and the Kering Standards.

2. Reduce
When impacts cannot be entirely avoided, Kering and its Houses
strive to reduce negative impacts on the environment by sourcing
materials from preferred sources as defined in the Kering
Standards. These standards list recommended third-party
certifications in the Group’s supply chains that guarantee lowimpact agricultural practices, such as organic farming. In 2023,
75% of raw materials were aligned with the Kering Standards.
The goal is to reach 100% by 2025.

3. Restore & Regenerate
In addition to avoiding negative impacts, Kering aims to bringabout a paradigm shift by restoring and regenerating
ecosystems, which are both impacted by the production of key
raw materials for the Group and critical areas for biodiversity
and ecosystem services. Kering’s goal is to convert one million
hectares of farms and rangelands in landscapes where key raw
materials are produced to regenerative agricultural practices by— 238

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2025, primarily by means of the Regenerative Fund for Nature.
The first seven projects were selected in 2021 across various
critical sourcing landscapes:• cotton (India);• leather (Argentina, France and Spain);• wool (Argentina and South Africa); and• cashmere (Mongolia).
Each of these projects has a monitoring framework to assess theimpact on soil health (including improved soil organic carbon
sequestration), biodiversity, the elimination of synthetic input
usages, improved livelihoods for local communities and animal
welfare. The measurement methods and indicators used –proposed by the project owners with technical and scientificsupport from Conservation International – vary according to thegeographic region so that they can be adjusted to the local
context. At an aggregated, portfolio level, Kering measures thenumber of hectares over which regenerative practices are being
implemented thanks to the Fund’s support – with a target of
1 million hectares by 2025 – and the number of beneficiaries.
These projects represent a total of 840,000 hectares that will
eventually be converted into regenerative agricultural spaces andinvolve 60,000 people across the globe. The fund was extended in
2023 with the arrival of Inditex as co-investor alongside Kering,
while a new call for projects was launched.

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Focus on: the Patagonia project
The project run by the Wildlife Conservation Society (WCS) and the Wildlife-Friendly Enterprise Network (WFEN) in Patagonia,
Argentina, within the framework of the Regenerative Fund for Nature aims to regenerate land that has been severely affected byovergrazing by sheep over the last few decades, by adopting regenerative livestock management practices that respect wild
fauna, rehabilitating natural vegetation, improving carbon storage and water retention in soil, and increasing biodiversity.
In particular, the project promotes practices such as rearing livestock guardian dogs to protect herds of sheep from being
attacked by pumas. This practice has proven to be a highly effective non-lethal alternative to conventional strategies against
pumas, thereby helping to protect puma populations while also safeguarding livestock and wool production.
The project also includes the creation of traceable supply chains for fibers and promoting regenerative and certified wildlifefriendly practices for wool production.
For each participating site, WCS and WFEN perform periodical analysis of carbon sequestration in soil, soil productivity andbiodiversity inventories. The project has grown from 87,000 hectares under regeneration in 2021 to over 320,000 hectares in 2023.
In late 2023, WCS detected a rare species, the Patagonian opossum, at one of its sites.
The Houses also work on projects to develop regenerative
farming practices and improve soil quality. Gucci has launched its
Regenerative Agricultural Program in collaboration with
Chargeur Luxury Fibers. The program covers 100,000 hectares in
Uruguay and includes around 10 farms with the goal of improving
soil quality in the region.
Since 2022, Saint Laurent has supported a project in South Africa
alongside Kering to support supply chain partners in their efforts
to adopt regenerative farming and responsible rearing practices
for wool and leather. The program aims to support theregeneration of 215,000 hectares by 2025. At the end of 2023,
more than 35,000 hectares had been restored.

In 2023, Balenciaga helped to pilot eDNA technology, aninnovative way of monitoring biodiversity. The technology
consists of taking samples of soil, water or insects from a site andthen analyzing them to find traces of DNA. The data provided by
eDNA help give farmers a more accurate picture of the diversity of
species present in the ecosystem at a given time and assess how
this evolves over time. The technology will be used in 2024 as partof a project spearheaded by Epiterre, part of the Regenerative
Fund for Nature.

4. Transform
In support of the net positive impact goal, Kering supports initiatives outside the Group’s direct supply chains.

1) External collaborations to transform the industry and raise awareness of biodiversity

2) Positive contribution for climate and biodiversity
beyond Kering's supply chains
Outside of its supply chain, Kering will protect one million
hectares of critical and irreplaceable habitats through programs
that deliver benefits for biodiversity protection, avoidance ofgreenhouse gas emissions arising from deforestation and fromecosystem degradation, increased carbon sequestration andimproved livelihoods for local communities.

(8)

Kering uses nature-based solutions to contribute to climatechange mitigation in relation to its carbon footprint (Scope 1, 2
and 3 emissions excluding product use and end-of-life)(8). The
Climate Fund for Nature (see section 5.2.3.3), created in 2022, hasenabled it to support projects covering 127,000 hectares to date.
The Houses are also taking action within their supply chains (seesection 5.4), as well as through conservation initiatives
undertaken in their own name (see section 6.3.2).

See section 5.2.4.4 for information about carbon offsetting in 2023 and the amount of related credits.

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5.3.3 Responsible use of water
resources and discharges to water
The Group’s 2023 EP&L results show that 4% of Kering’s
monetized environmental impacts associated with the products'
life cycle and their commercialization concern water
consumption, while 14% concern wastewater discharges (waterpollution), which mostly arise in Tier 4 (production of raw
materials) of its supply chains, particularly in the production ofleather, metals, plant fibers and precious skins.

5.3.3.1 Water strategy
Kering recognizes the central role that water plays in its
production processes and supply chains, as well as the growing
risks that climate change presents for the availability of water asa resource. The Group is committed to develop a strategy anddefining targets to preserve water resources.
In 2023, this entailed analyzing the water-related risks to which
the Group’s operations may be exposed, depending on theregion. This analysis was done using the World Resource
Institute’s Aqueduct tool, looking at four main indicators: risk ofdrought, flooding (differentiating between river and coastal
flooding), water stress (corresponding to the ratio of total annual
water withdrawals to total available annual renewable watersupply) and the physical risks (water pollution). These risks wereanalyzed for facilities with the highest water consumption,
representing 80% of Kering’s total water consumption. A total of
110 sites were analyzed, including all tanneries and all industrialsites.

As part of its pilot of the Science Based Targets for Nature
guidance, Kering has extended its analysis of pressures on naturein terms of water use and pollution to its upstream value chain,using estimated impact data from the EP&L and data on theavailability of water and water pollution from the SBTN Unified
State of Nature Water Layers tool.
Kering has also established a formal requirement relating to theprovision of WASH services at all of its sites and for all suppliers,
and set the goal of maintaining 100% compliance for the next few
decades and beyond.
Kering’s water management strategy is detailed in the Group’s
public response to the 2023 CDP Water Security Questionnaire,
which can be accessed on the www.cdp.net website. Keringachieved an A rating in 2023.

5.3.3.2 Water consumption
Kering’s water consumption within its own
operations
Operations and sites under Kering’s direct control (Tier 0 of the
EP&L scope) account for 2% of the Group’s total direct andindirect water consumption (Tier 0 to Tier 4). Given the nature of
Kering’s operations, the direct environmental impact of its water
consumption is not significant in terms of the total volume.

Water consumption (in m³)

Water from the public network

2023
751,5432022
806,6372021
682,980

Change 2023
vs. 2022-7%of wich water for domestic useof wich water for industrial use

657,442
94,101

703,102103,535

618,083
64,897-6%-9%Groundwater
Rainwater

211,0140

226,5640270,113
0-7%
N/A

Surface water

0

0

0

N/A

962,557

1,033,201

953,093-7%

TOTAL
Total water consumption decreased by 7% between 2022 and2023, mainly in relation to the reduction in activity:• 68% of water consumed is used for domestic purposes (store
cleaning, sanitary facilities, etc.);• 32% is used for industrial purposes, of which 22% comes fromgroundwater levels. Water consumed for industrial purposes
relates primarily to tanneries.
Water consumption intensity (m³ of water used for industrial
purposes/Group revenue) decreased by 4% between 2022 and2023.
Water withdrawals for the Group’s tanning activities were highest
in comparison with other sites, representing 29% of total water
consumption and less than 0.3% of the number of sites in 2023.
These sites are also most at risk in terms of water stress.
The Group has set the target of reducing water consumption atits directly owned tanneries by 35% between 2022 and 2035. The
main levers identified of achieving this relate to more efficientuse of water, focusing on industrial processes and their needs,
and setting up on-site recycling systems to reduce the quantity offreshwater needed.

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Kering and its Houses are also implementing measures to reduce
domestic water consumption, particularly at stores,
headquarters and offices. In the Kering Standards dedicated tostores, the Group has established precise technical criteria inorder to limit stores’ domestic water consumption. For example,
the standards prohibit the use of drinking water as a heat sink in
air conditioning systems, encourage the use of non-drinking
water (e.g., recovered rainwater) for certain maintenancepurposes, and require the installation of plumbing systems withlow water consumption. For example:• Gucci, Saint Laurent, Pomellato and Kering have introduced
water fountains, filters, water-saving devices and rainwater
harvesting systems at logistics sites;• Kering Eyewear has set up a station at one of its factories fortreating wastewater from its closed-loop production process,allowing 100% of treated water to be reinjected into theprocess.

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Initiatives for reducing consumption in Kering’s
supply chain
Kering is applying its EP&L approach to conduct an innovative
review of responsible water management across its entire value
chain. Indirect water consumption linked to the use of
agricultural raw materials such as cotton and extraction of
precious metals is a major environmental issue.
The Kering Standards encourage suppliers to use water-efficientequipment, automate water flows, and increase liquor ratios indyeing and finishing processes. They also encourage the use ofwaterless dyes and efficient dyeing technologies, such as cold
pad batch dyeing. Wet processing factories (dyeing, finishing,printing and tanning) are encouraged to install a reverse osmosis
system at the end of the wastewater treatment process in orderto close the water loop.
The Clean by Design program (see section 4.1.2) includes
measures to reduce water and chemicals use. On average,
factories reduce their water use by 5 to 10%. In 2023, one supplierreduced its water consumption by around 150,000m2 a month by
improving water flow controls. As a result, the supplier’s water
consumption decreased by 54%.
The Houses have also launched initiatives to reduce water
consumption in their supply chains. All ready-to-wear Houses
favor using certified organic materials and recycled fibers,
allowing them to reduce water consumption in their supply
chains.

5.3.3.3 Water pollution
Management of chemicals used in the production of articles by
the Houses is an integral part of the Kering Standards, which set
out guidelines for the Group’s main manufacturing processes(tanning, textile processing and leather goods manufacturing). As
production sites use these chemicals, pollutants are found intheir wastewater discharges. The chemicals used and theeffluents discharged by these sites must therefore be managed
properly in order to prevent and limit this pollution.

Management of chemicals
within Kering’s own operations
Within Kering’s own operations, discharges into water do not
represent a significant impact, except for its tanning activities.
The total percentage of water discharged by Kering was stable in
2023 at 75%.
Beyond complying with regulations, Kering has set the target of
eliminating all hazardous chemicals from all Houses’ products
and production processes. These requirements also apply to all
suppliers, which have to implement a chemicals management
system. Furthermore, the Group is aiming to reduce the quantityof pollutants discharged before treatment at all of its sites. The
expected impact will focus initially on the Chemical Oxygen

Demand (COD), which is the most relevant indicator of the qualityof effluents after treatment. This indicator allows to assess theoverall amount of organic pollutants in wastewater. The Group’s
target is to identify and implement action plans to reduce COD by2025.
In addition, special wastewater treatment measures are required
for tanneries, which use large amounts of water. Each tannery
has its own on-site wastewater treatment plant. At all the Group’stanneries, wastewater is pre-treated on site before continuing thewastewater treatment process. The Group’s Italian tanneries pretreat their wastewater containing chromium, which is then sent
to a special treatment plant used by several other tanneries,
which purifies the water and recovers the chromium. The Group’s
other tanneries have treatment plants that use sedimentationand physicochemical and biological treatment techniques.
More specifically, in 2023, the Périers tannery in France launched
an ambitious effluent recycling project with an innovative
decontamination system specially adapted to the specific needsof the industry. This project has allowed for an annual reduction
in water consumption of around 80%, thereby preserving water
resources and reducing volumes discharged into the communal
wastewater treatment plant, resulting in a positive societal
impact.
To ensure compliance with local wastewater legislation, regularanalyses are carried out at each tannery and the results arecontinuously monitored. If any anomalies are recorded,
dedicated procedures and action plans are put in place and,
where applicable, described in the ISO 14001 certified
environmental management system.

Chemical Oxygen Demand (COD) after treatment –tanneries (in metric tons)

COD

2023
42

2022
34

2021
57

Change 2023
vs. 2022+24%

COD increased significantly between 2022 and 2023. This is due tothe use in 2023 of calcination, during which fur is removed fromskins and the skins are prepared for chemical tanning products.
There was no calcification in 2022.

Management of chemicals in the supply chain
As part of its commitment to eliminating all hazardous
chemicals from the production of all Houses, Kering has
compiled to lists of substances subject to restrictions:• the Manufacturing Restricted Substance List (MRSL) for
production processes;• the Product Restricted Substance List (PRSL) for products.

Focus on: Kering’s commitments and objectives concerning chemicals managementin the supply chain• Contractual requirements for 100% of suppliers include the implementation of a chemicals management system within
businesses and rolling out these requirements among suppliers during the early stages.
• By 2025:– level 2 of the ZDHC Supplier to Zero program for 100% of strategic suppliers;– 100% of eligible suppliers evaluated in the Vendor Portal as regards chemicals management and compliance with the MRSL;– testing of wastewater, in line with the ZDHC Wastewater Guidelines, for all strategic suppliers.

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Zero Discharge of Hazardous Chemicals (ZDHC) program
Kering has been a signatory member of the ZDHC (Zero
Discharge of Hazardous Chemicals) program since 2016, an
initiative to eliminate use of the most hazardous chemicals insupply chains in the textiles, leather and shoe industries bymeans of two programs:• ZDHC Brands to Zero, which aims to assess members’alignment with the ZDHC program and define a customized
roadmap for each signatory: Kering’s efforts have beenassessed by a third party;• ZDHC Supplier to Zero: Kering organized training sessions topromote the program involving the Group’s strategic
suppliers representing 50% of raw materials purchases(leather and fabrics), 83% of suppliers of leather products andshoes, and 68% of finished products bought for the Group’s
ready-to-wear items and accessories. The sessions wereorganized in collaboration with other signatories, with thesupport of a ZDHC training provider to ensure a consistent
approach. Kering continued to support its supply chainsthrough the distribution of ZDHC vouchers suitable for the
program’s Level 1 certification, and by providing active
support with preparing ZDHC Performance InCheck and
ZDHC ClearStream reports.

Rollout of the MRSL in the supply chain
The MRSL is focused on discontinuing the use of dangerous
chemicals in the manufacturing process, firstly to ensure thatworkers within the Group’s operations and in the supply chains of
the Houses are not exposed to hazardous substances, andsecondly to reduce toxic discharges into water.

to be taken for the suppliers concerned, such as help to improvetheir performance, implementation of remedial measures or eventhe termination of business relations with suppliers that fail tocomply.
In addition, on-site audits and certifications are used to check
whether suppliers meet requirements relating to chemicals
management.
In 2022-2023, 274 suppliers were either audited or underwent acertification process (such as Kering on-site audits, the4Sustainability protocol, the ZDHC Supplier to Zero program
Level 1 or Level 2), covering 58% of raw materials purchases(leather and fabrics) and 60% of purchases of finished products
for Kering’s ready-to-wear items and accessories.
In order to promote ongoing improvement in chemicals
management, Kering intends to step up its checks of MRSL
compliance by also performing tests on wastewater for all
strategic suppliers by 2025. This approach is recommended by
ZDHC and will make it possible to identify compliance failingsand potential contamination by analyzing the root causes andimproving the quality and safety of effluents.

3) Ongoing training
An Idea Lab on the management of chemicals was held in 2023,
aimed at providing training and information on the subject,focusing on ZDHC-related initiatives, as well as making joint
decisions about Kering’s action and strategy in this area.

5.3.4 Air pollution

Kering provides active support for its key suppliers in the leather(tanneries and suppliers in charge of production), textiles andfinished product categories in ready-to-wear and accessories toencourage them to comply with the MRSL, offering
implementation tools and training:

The Group’s 2023 EP&L results show that 8% of Kering’s
monetized environmental impacts related to the products' life
cycle and their commercialization concern air pollution, and thatthey mostly happen in Tier 4 (production of raw materials) of its
supply chains.

1) Contractual requirements

Solvents used in tanneries contain Volatile Organic Compounds(VOCs) that are released into the atmosphere in gaseous form.
There are specific guidelines for managing VOCs and emissions
are calculated and monitored closely by each of the Group’stanneries.

The MRSL requirements signed with suppliers have been
contractually binding since 2020. This means that no substancelisted in Kering’s MRSL can be intentionally used in the
manufacturing processes of the Houses’ supply chains. In 2023,
Kering published a new version of the MRSL, aligned with the
ZDHC MRSL V3.1 and including a specific appendix on per- andpolyfluoroalkyl substances (PFAS).

2) Supplier evaluation

Tanning processes can also give rise to odor pollution because ofhydrogen sulfide emissions, especially at the stripping stage.
Unpleasant odors are managed by an air evacuation system atthe stripping tubs, which channels polluted air through a filter
that traps sulfur-bearing particles and outputs clean air.

Kering assessed more than 1,100 suppliers in 2023, representing
85% of purchases, on their alignment with Kering’s contractual
requirements in relation to the MRSL. This was done by means ofan annual self-assessment questionnaire (via the Vendor Portal,
see section 4.1.2), detailed assessments, audits or certifications.

Volatile Organic Compound (VOC)
emissions in – Group tanneries(in metric tons)

90% (in terms of value) of eligible suppliers assessed via the
Vendor Portal as regards chemicals management andcompliance with the MRSL received a rating of "good" or"excellent". The percentage was 94% for the Group’s strategic
suppliers. The results are reviewed biannually with the Houses’
operations departments. These committee meetings provide theopportunity to discuss supplier compliance and define measures— 242

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VOCs

2023
89

2022
65

2021
58

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5.4 Sustainable sourcing and use of raw materials (Tier 3 and Tier 4)
5.4.1 Traceability and transformation of
raw material production practices

By analyzing the impact of each material, Kering can prioritize
and focus efforts on the materials that have the greatest
impact:

The Group’s EP&L clearly shows that most environmental
impacts related to the life cycle and sale of its products (84%) arelocated in its upstream supply chains (Tier 1 to Tier 4) during the
production of raw materials and their initial transformation (Tiers
3 and 4, 75%).

• materials used in large quantities and whose production canhave a significant impact on the environment, such asleather;• materials used in smaller quantities but whose extraction or
production has a major impact. This is the case for animal
fibers such as wool and cashmere, as well as metals (such asgold and brass).

Breakdown of EP&L impacts (in €m) of Tier 3 and 4 by material (in millions of kg)

Kering has committed to reducing its environmental footprint,
starting with the production of its raw materials. The Smart
Sourcing program launched in 2013 draws on the Kering
Standards and relies on close collaboration between the Groupand its Houses, bringing together the MIL and supply chain, R&D
and Sustainability teams, with the aim of adopting new
responsible sourcing solutions suited to the specific needs ofeach House.
The Kering Standards lay down the Group’s requirements for the
raw materials used by the Houses (see section 4.1.1) in terms oftraceability. The overall level of traceability of raw materials is
consolidated annually through the EP&L by collecting
information about purchasing volumes. The level of traceability
required by type of material was set on the basis of a risk matrix
for each type of raw material, as well as the level of transparency
achievable by the market. The origin of the raw materials isestablished by supplier declarations and may be supplemented
by specific protocols including certification (such as ICEC forleather) and verification by the Houses. In addition to audits, theHouses are investigating various technologies to trace the pathfrom the extraction of raw materials to the intermediate
production stages and then into their own operations and finally
into stores. These technologies include RFID and NFC chips,
blockchain, mechanical marking of hides, and forensic
technology.
Kering has undertaken to:• achieve 100% traceability by 2025, at least to the country oforigin and beyond (potentially to the farm) for certain
materials (as specified in the Kering Standards);• achieve 100% alignment with the Kering Standards by 2025,
which is reflected by concrete targets for most raw materials.

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5.4.2 Results of actions concerning the main raw materials
In 2023, Kering achieved the following levels of traceability and alignment with the Kering Standards:
2023
traceability
Raw materials rate(1)TOTAL – ALL 97%

Level oftraceability

RAW
MATERIALS

2025 Kering Standards target• Traceability across the entire value chain• Zero deforestation and conversion of natural ecosystems• Promotion of regenerative rearing and farming practices• Support for local communities and cultural practices• Use of recycled or regenerated raw materials wherever
possible• Observance of the MRSL and PRSL lists: no hazardous or
potentially hazardous substances used in the production
process or in the finished product2023 alignment
rate(2)75%

Leather98%

Back to theslaughterhouse• Tanning without heavy metals• From authorized countries• Animal welfare

76%

Wool

97%

Back to thecountry of origin• Use of 100% certified or recycled wool
• Rearing practices that restore natural ecosystems
and soils• Animal welfare

63%

Cashmere

97%

Back to thecountry of origin• Use of 100% certified or recycled cashmere• Rearing practices that restore natural ecosystems andsoils• Animal welfare

35%

Silk

97%

Back to thecountry of origin• Use of 100% certified organic, regenerative or recycled silk 41%

Gold

100%

Sourced through • Use of 100% RJC CoC-certified recycled gold, or from
Kering’s gold
artisanal mines that are Fairmined or Fairtrade-certified
sourcing
or approved by Kering
platform orinternal recycling

100%

Cotton95%

Back to thecountry of origin• Use of 100% certified organic, regenerative or recycled
cotton70%

Paper/
Cardboard96%

From approved
suppliers(certified) andback to thecountry of origin• Use of 100% recycled or FSC-certified paper or wood

95%

Precious skins 100%

Back to the farm
(farmed species)orslaughterhouse(harvested
species)• Observance of CITES procedures (international
conventions for endangered species, flora and fauna)• No sourcing of species threatened with extinction• Sourcing from countries and supply chains that are
certified or approved by Kering• Preventing any adverse impact ton wildlife and theirhabitat• Animal welfare

90%

Cellulosic
ﬁbers

From approved
suppliers (FSCor Canopy "Dark
Green Shirt"
certification)• Use of 100% recycled fibers or from sustainably managed
forests (FSC - Forest Stewardship Council) and sourced
from suppliers with a "Dark Green Shirt" rating in
CanopyPlanet’s most recent Hot Button report

75%

60%

(1) Traceability rate: volume of materials for which traceability has been achieved/total volume of materials purchased.
(2) Rate of alignment: volume of materials for which alignment has been achieved according to the Kering Standards/total volume of materials
purchased.
Information is collected by declarations made by all of the Group’s Houses and their suppliers for each material, in order to calculate theGroup’s EP&L and determine rates relative to the Kering Standards.

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5.4.2.1 Leather
The concept of responsible leather, as defined in the Kering
Standards, combines traceability, i.e., leather that can be traced
back to all stages from the slaughterhouse, sourcing from farms
that minimize their environmental impact, respect animal
welfare and adopt practices that promote soil regeneration, andtanning using chrome-free processes. In the last five years, aninternal working group dedicated to responsible leather hasbrought together representatives from all the Group’s leatherusing Houses. In 2023, work focused on transparency andtraceability, animal welfare and regenerative agriculture within
leather supply chains.
Several Houses have implemented leather scraps collection andrecycling systems with their suppliers, such as Saint Laurent,
Balenciaga, Bottega Veneta and Gucci (see section 5.5.3.3).

Animal welfare
Kering published its standards for all animal species present in its
supply chains in 2019, as well as standards specific to species
present in the leather supply chain, accompanied by a guide to
specific practices for slaughterhouses. In 2021, Kering updated its
map of food labels that meet a level equivalent to its standards interms of animal welfare and environmental protection, both at
the farm and in the slaughterhouse. The chosen approach draws
on existing standards in the food industry and creates links
between the leather and meat supply chains. To date,
16 standards have been identified in close to 40 countries aroundthe world. In 2023, around 20 on-site checks were performed atslaughterhouses.

In addition, Kering also worked in 2023 on animal welfare andmitigating the associated risks by using the ICEC traceability
system.

Chrome-free and metal-free tanning
Since 2017, the Group has been working closely with its
tanneries, as well as its Houses and their suppliers, to promote
the use of leather tanned without metals in the following ways:
1. development of chrome- and metal-free tanning at all theGroup’s tanneries through R&D activities;
2. close collaboration with tanneries to develop new metalfree tanned items and gradually increase the metal-free
proportion of their products. A growing number of tanneries
have started to convert their facilities to fully metal-free
production;
3. increase in the proportion of metal-free tanning in thecollections of the Houses: in 2023, 52% of volumes
purchased by the Houses for leather goods were metal or
chrome free.

Leather traceability
In 2023, Kering expanded its work on the investigation andtraceability of hides, most of which come from Europe, bycompleting its in-depth map of its supply chain, making it
possible to identify 487 slaughterhouses. The Houses that use
leather are developing technologies and processes to trace
leather at each stage of production, in particular to avoid losing
track at the slaughterhouse, which is the most sensitive link in the
chain.

Collaborative initiatives

The Group’s strategy for managing leather sourcing in relation to deforestation is made public and described in Kering’s responses tothe 2023 CDP Forests Questionnaire, available on www.cdp.net. Kering achieved an A rating in the 2023 CDP Forests Questionnaire for
the Cattle category.

5.4.2.2 Animal textile fibers

Cashmere

Materials made from animal fibers are those with the secondgreatest impact in Kering’s EP&L and are central to many projects
launched by the Group and its Houses.

In 2015, Kering and the Wildlife Conservation Society, aninternational NGO, launched the Gobi Desert Cashmere program
to promote sustainable and traditional production of highquality cashmere in partnership with two cooperatives of
nomadic herders representing 160 families and 150,000 hectaresof pasture in ’Omno-Gobi province. The program also focuses on
pastoral techniques such as rotating herds to improve the impact
on biodiversity and animal welfare. In 2022, the project was
integrated into the Regenerative Fund for Nature.

Wool
In 2023, Kering continued its active engagement with various
potential and existing wool suppliers to assess them and help
them to improve their sustainable environmental, biodiversity,and animal welfare management practices. Kering also provides
expertise to various initiatives, aimed at developing certifications
and sustainable wool production methods, such as the
Responsible Wool Standard, the Responsible Mohair Standard
and the Responsible Alpaca Standard.
In 2023, 63% of wool used by the Group’s ready-to-wear fashion
Houses was certified, recycled, organic or sourced fromregenerative agriculture (in particular GOTS, ZQ, RWS, GRS, EOV,ZQRX).

Kering’s sustainable cashmere program is now a notable sourceof high-quality cashmere for the Group’s Houses, as it meets theanimal welfare and biodiversity conservation criteria laid down in
the Kering Standards, with the added bonus of reducing theGroup’s environmental footprint.
All Houses that use cashmere (Gucci, Balenciaga, Alexander
McQueen, Brioni, Saint Laurent, Bottega Veneta) favor use of GRS
or GCS certified cashmere.
In 2023, 35% of cashmere used by the Group was certified,recycled, organic or sourced from regenerative agriculture.

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In terms of cashmere from farms in China (Inner Mongolia), in
2021, Kering joined the Good Cashmere Standard (GCS), which
promotes farming practices that meet demanding animal welfare
requirements.
Alongside their efforts to increase and verify the use of certified
cashmere and cashmere produced using regenerative practices,
the MIL and the Houses are seeking to replace some of the
cashmere they use with alternative fibers that have a smaller
environmental footprint and recycled options.

Silk
Kering supports certified organic silk production that provides
better traceability and a reduced environmental impact. The
Group’s direct Procurement department has signed agreementswith the main suppliers of certified silk to guarantee that theGroup’s Houses have access to this high-quality fiber. All Houses
that use silk (Balenciaga, Gucci, Saint Laurent, Alexander
McQueen, Bottega Veneta, Brioni) are gradually incorporatingorganic certified silk (GOTS) or recycled silk (GRS) into theircollections. In 2023, 41% of silk used by the Group was certified,recycled, organic or sourced from regenerative agriculture.
For example, Gucci is supporting the reintroduction of the silk
supply chain in southern Italy with a pilot project. It encourages
the introduction of new techniques such as planting mulberrytrees, the development of new technologies for production
processes, and training farmers and craftspeople in transforming
silk. This initiative will enable Gucci to source silk from localorganic farms, which it will be able to use in its future collections.

5.4.2.3 Metals, stones and other precious
materials
Mining can endanger communities by causing serious health andenvironmental damage if unregulated, whereas properly
managed mining can generate responsible development for local
communities. Kering is therefore committed to limiting its
purchases of metals and precious stones to mined sources inareas that minimize harmful impacts on the environment andgenerate opportunities for local communities.

Gold
The Group's Houses source gold via the Kering Precious Metals
Platform (PMP), which allows for centralized sourcing of gold andother precious metals in an ethical, responsible and transparent
way. This has enabled Kering to draw up a list of accredited
refiners that have been meticulously checked, audited andselected by the Group. Sourcing options available via the PMP
include gold that is Fairmined or Fairtrade certified, from smallscale mines whose practices have been verified by the Group,
100% recycled from electronic or jewelry waste, and RJC Chainof-Custody (CoC) certified.
Responsible gold purchases totaled 3 metric tons in 2023,
bringing the volume of responsible gold purchased to almost
14 metric tons since the platform was launched.

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For all gold bought via the PMP, the Houses pay a premium that
goes towards a fund to support responsible gold producers andcontribute to their growth by supporting mining communities.
Each year, a committee composed of representatives of Keringand its Houses selects projects to be supported for the benefit ofmining communities and offering social and environmental
benefits.
Following on from the reforestation programs carried out in
French Guiana since 2018, the PMP signed a new two-year
contract in 2023 to support the full reforestation of mining sites in
the Amazonian rainforest (French Guiana) in collaboration withreforestation expert Solicaz, agroecology product developer
Amasisa and mining company Sial. The aim of this program is toreforest all 15 hectares of the alluvial sites mined, going beyond
the regulatory requirement to reforest just 30%, by 2025. Gold
from these mines is approved by the PMP.

Silver, platinum and palladium
The Houses also source silver, platinum and palladium fromrefiners assessed and approved by Kering. The Group has since2021 been working on adopting programs similar to the PMP for
silver, platinum and palladium, with the pre-qualification of RJC
CoC-certified recycled metals. Gucci uses 100% recycled
palladium and silver.
Pomellato, DoDo and Qeelin use 100% recycled silver.

Diamonds
As regards diamonds, Kering works with its suppliers to ensurethat all diamonds used in its products comply with the Kimberleyprocess, which aims to ensure the legality of trade in theinternational market, so that it does not serve to finance rebel
armed conflicts. The Group’s Houses map risks in the regions
from which diamonds originate. Since 2022, the Group no longer
sources diamonds from Russia. Kering has also worked with its
Houses to roll out guidelines and best practices on the
traceability and sustainable sourcing of diamonds. For example,
Boucheron sources diamonds from RJC CoP-certified suppliers
and follows the recommendations of the World Diamond Council
System of Warranties.
Pomellato, Boucheron and Qeelin have introduced systems toensure that diamonds are traceable. For example, Boucheron
and Qeelin use Sarine technology. 100% of solitaires in
Boucheron’s Étoile de Paris collection and 83% of 1 caratdiamonds in Qeelin’s engagement ring collection can be traced
using this technology.

Other metals
The Houses also make use of other lower-impact processes: Saint
Laurent and Balenciaga have been using physical vapor
disposition (PVD) coating on stainless steel for several years now
for certain metal parts on their leather goods. This vacuum
metalization process deposits thin films of material in vapor
form, which reduces the environmental impact compared toclassic electrolytic plating processes.

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Sector certifications and initiatives

5.4.2.4 Cotton and plant textile fibers
Kering prioritizes use of certified recycled or traceable, organicand sustainably grown cotton, and is committed to encouraging
the transition towards regenerative cotton production, in orderto protect and restore biodiversity, improve soil quality andensure that farmers are fairly paid. Kering takes a multi-levelapproach to responsible cotton:

1. Define and maintain high sourcing standards
The Kering Standards for cotton specify traceability at least backto the country of origin to avoid sourcing from countries that are
high-risk in terms of both environmental and social impacts, andprohibit the use of chemicals and pesticides. Alignment with the
Kering Standards by 2025 includes a target to achieve 100%
certified organic or recycled cotton. Kering encourages the use oforganic cotton through its preference for GOTS (Global Organic
Textile Standard) and OCS 100 (Organic Content Standard)
certifications, and for regenerative practices, for example
through ROC (Regenerative Organic Certified) and EOV(Ecological Outcome Verification) certifications.

2. Increase the proportion of cotton sourced fromorganic and regenerative farming or recycled
cotton in their purchasing
In 2023, almost half of the cotton used by the Houses was organic(48%) and 23% was certified recycled.
The Group is seeking to transition some of its cotton sourcing
toward alternative plant fibers that have a lower environmental
impact (such as linen and hemp), as well as recycled options.
Using recycled materials significantly reduces the impact
associated with producing virgin materials.

3. Collaborate with other companies in the sector
to promote cotton from organic andregenerative farming
Kering continues to support the development of organic cotton
farming and the market for organic cotton, as well as the
adoption of regenerative practices in cotton production throughvarious collaborations:

4. Support projects in the field

5. Cotton traceability

Through its partnership with OCA, Kering provides practicalsupport for on-the-ground projects in India, with the aim of
stepping up the pace at which organic farming practices are
adopted by helping farmers making the transition. Furthermore,through the Regenerative Fund for Nature, Kering also enables
OCA to encourage farmers already practicing organic farming to
adopt additional measures to achieve quantifiable regenerationof soil and of biodiversity. Thanks to this project in four Indianstates (Gujarat, Odisha, Madhya Pradesh and Rajasthan),
2,000 family farmers will receive support to move fromconventional to organic and regenerative farming, and around50,000 other producers that are already certified organic will besupported in adopting regenerative practices such as crop
diversification, reducing or eliminating tilling, use of mulching,planting of ground cover and green manure, mainly through a
network of "demonstration" regenerative farms. Between 2021
and 2023, OCA estimates that it supported the introduction ofregenerative practices on around 68,000 hectares, well above theinitial target of 53,500 hectares.

The MIL has been working actively since 2018 to obtain the first
fully verified organic cotton fabric using forensic science
methods. The project has been carried out with two longstanding Kering partners, Italian weaver Albini and Supima, a USbased organization advocating high-quality cotton, as well aswith traceability expert Oritain. The technology uses digital
fingerprinting of organic cotton, which means it can be tracked at
all stages of production. The current Oritain program (2022-2023)
allows the Houses to check their suppliers’ claims and ensurethat they comply with rules restricting the origin of cotton inaccordance with the Kering Standards.

5.4.2.5 Plastics and synthetic fibers
The Houses’ use of plastics is governed by the Kering Standards.
Kering has had a zero-PVC product policy in place since 2012 andaims to stop using single-use plastics by 2025 (seesection 5.5.4.1). In addition, the Houses must favor plastics withrecycled content or, failing that, certified biobased content, andensure that chemicals used comply with the Group’s MRSL (seesection 5.3.3.3) and PRSL (see section 6.1.3). For the product endof-life phase, the Kering Standards emphasize recyclability.

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The impact of microfiber pollution on human health and theenvironment is also a major concern for the textile industry.
Kering is working on eliminating the use of toxic chemical
products and removing microfibers and microplastics from its
production processes, for example by developing specific dyeing
processes, from the product design phase.
In 2021, Kering joined forces with The Microfibre Consortium aspart of a collaborative approach between manufacturers andbrands to highlight the need for better understanding of
microfiber pollution and its adverse effect on aquatic
environments and air quality. The consortium calls for the sector
to measure and reduce levels of microfiber release. Kering
requires its suppliers to comply with its Sustainability Principles,
including implementing measures to reduce the formation of
microfibers and microfiber emissions.
All the ready-to-wear Houses are continuing to reduce theproportion of synthetic materials used and gradually incorporate
new alternative materials or more responsible synthetic fibers
into their collections, made from biomaterials or recycled. For
example, in 2023, 42% of nylon used by Gucci was recycled. Since
2018, Gucci has also worked with its suppliers on the "GucciECONYL®PRE CONSUMER FABRIC TAKE BACK PROGRAM", whichaims to recover ECONYL® production scraps (100% recyclable
nylon fiber from fishing nets) and recycle them to create newmaterials.

5.4.2.6 Precious skins
Sustainable sourcing of precious skins such as from crocodilians
and other reptiles, including compliance with the strictest animal
welfare standards, is a priority for the Group. Kering and its
Houses support a range of initiatives on sustainable supply
chains for precious skins. These initiatives combine the Houses’
Sustainability departments and the Group’s operations division(which manages its own tanneries and incoming supplies) andvarious external stakeholders.
The Group and its Houses comply with national and international
legislation and regulations on the trade of precious skins: all skinsof species classified as endangered or vulnerable by theConvention on International Trade in Endangered Species("CITES") are obtained with certificates attesting to their legal
origin, issued by CITES and the export authority, to ensure that
trade does not threaten endangered species. In 2023, the Group
resumed its grassroots verification activities, particularly inSoutheast Asia and specifically Indonesia, but also continued tohelp international associations working on the ongoing
improvement of sustainable trade and use of exotic leather.
Kering actively supports the development of industry standards
for all exotic species, such as crocodilians, ostriches and reptiles
from Asia:

In 2023:• 100% of Kering’s exotic tanneries sourced their supplies from ICFA-certified farms;• 100% of crocodilian and ostrich skin suppliers had certifications aligned with the Kering Standards (ICFA, SAOBC);• 100% of python and lizard skin suppliers were pre-audited according to SARCA’s RRSS protocol.

5.4.2.7 Cellulosic fibers
Kering takes great care with its sustainable sourcing strategy forcellulosic fibers such as viscose since they can made from wood
pulp, which can present significant risks in terms of deforestationand forest degradation. In 2023, viscose accounted forapproximately 6% of ready-to-wear raw materials, and in total
less than 1% of the Group’s raw material purchases.
To a very large extent, the Kering Standards follow therequirements of Canopy, an NGO that works to protect theworld’s forests, species and climate. In 2018, Kering funded
CanopyStyle’s launch of ForestMapper, an interactive map
tracking ancient and endangered forests, thereby providing
businesses with decision-making support for their purchases of
paper, packaging, wood and cellulosic textiles. The Group and its
Houses source primarily from suppliers that have achieved "darkgreen" level (score of over 30 out of 35) according to the Canopy
Hot Button Ranking methodology, as well as buying FSC-certified
cellulosic fiber. The main suppliers – Lenzing, Eastman, Aditya
Birla, Jilin, Tangshan Sayou, Bailu Group, Acegreen, Yibin Graceet Enka – all achieved a score of over 30 in Canopy’s 2023 Hot
Button report.

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Kering is exploring a number of recycling technologies and, in
2020, joined forces with Fashion for Good for the "Full Circle
Textiles Project: Scaling Innovations in Cellulosic Recycling"
project, which is looking into economically viable and scalable
solutions for chemical recycling of cellulose, in order to enable a
closed-loop system to convert textile waste into new man-madecellulosic fibers.
At COP 27 in 2022, Kering supported the collective commitment
alongside NGO Canopy to buy more than half a million metrictons of cellulosic fibers and paper packaging made from "nextgeneration" materials that have a lower impact on the climate
and biodiversity. This commitment is intended to attract theinvestment needed to achieve a rapid ramp-up of production ofthese much sought-after alternatives.
In line with the Kering Standards, all Houses with ready-to-wear
ranges favor using sustainable cellulosic fibers in theircollections, particularly FSC-or GRS-certified viscose and/or
lyocell, and RCS-certified or recycled cupro, from suppliers with ascore of over 30 in the Canopy report, as mentioned above. They
also favor FSC-certified products in their packaging and paper(see section 5.5.4.1).

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Kering’s strategy on sourcing wood-based products (including
cellulosic materials, viscose, etc.) that have an impact in terms ofdeforestation is described in Kering’s responses to the 2023 CDP
Forests Questionnaire, available on www.cdp.net. Keringachieved an A- rating in the 2023 CDP Forests Questionnaire for
the Timber category.

5.4.2.8 Fur
Kering has made the decision to stop using animal fur. None of
the Group’s Houses have used fur since the Fall 2022 collections.

5.4.3 Animal welfare: the Kering Animal
Welfare Standards
Kering believes that the products developed by its Houses mustmeet the highest standards in terms of the welfare of animals,
supplying many of the materials used by the Houses.
With this in mind, Kering published its Animal Welfare Standards
in 2019, with the aim of ensuring optimum treatment of all
species in the Group’s supply chain. For each of these species, thestandards highlight specific challenges, laying down rearing,transportation and slaughtering requirements, and provide thelist of existing certifications serving as benchmarks. In 2021, thesestandards were updated to reflect changes in practices andexperience gained during visits and assessments within our value
chains.
Developed with input from animal welfare experts, farmers andherders, scientists and NGOs such as the Royal Society for thePrevention of Cruelty to Animals (RSPCA), Compassion in World
Farming (CIWF), the Nicolas Hulot Foundation for nature andHumankind (FNH), Welfarm and French charity for animals taken
to slaughter Œuvre d'Assistance aux Bêtes d'Abattoirs (OABA),
the standards are based on the latest scientific research, as wellas prevailing regulations and best management practices.
The standards lay down a number of requirements for animal
management that would significantly improve the welfare ofanimals if they were adopted by the industry more broadly. They
include Bronze, Silver and Gold levels to encourage the Group’s
suppliers to make continuous improvements.

Protocols and assessment results
Specific assessment protocols have been developed describing
how Kering and its Houses can measure their suppliers’
compliance with the Kering Standards. The protocols cover
livestock rearing, transportation and slaughter conditions, butalso include broader criteria such as farms’ environmental
performance and their impact on local communities and people.

A country-by-country risk assessment approach is implemented,
based on the Animal Protection Index of NGO World Animal
Protection. It assesses the risks inherent to each country in termsof animal welfare, based on indicators such as the prevailing
legislation and the voluntary commitments that exist. The level ofverification implemented to ensure compliance with Kering’sStandards is then adapted to this level of risk by country, as wellas other factors such as the type and volumes of raw materials
concerned.
In 2023, the monitoring and verification of compliance withanimal welfare standards focused on leather and precious skins.
This led to a case-by-case action plan reflecting the riskpresented by the countries of operation and with regard to
existing animal welfare certifications for slaughterhouses. Around
20 field evaluations were carried out in 2023 to verify that
Kering’s animal welfare requirements were being met. In theabsence of field evaluations, a bibliographical evaluation of anumber of standards and suppliers was carried out with regard totheir approaches to animal welfare, particularly for the wool andleather supply chains.

Fragrances and cosmetics
In 2023, Kering decided to invest directly in the beauty sector bycreating a specialist entity: Kering Beauté, which has developed
an in-house sustainable production charter that includes asection on animal welfare, with undertakings:
1. to limit use of animal-derived products to only substancesthat present a relatively low risk – beeswax, lanolin, honeyand carmine. The risks and impacts of these raw materials
on the environment, society and animal welfare should also
be carefully evaluated and taken into account before they
are used;
2. not to accept animal testing by not developing any
products that require their raw materials, ingredients,
formulae or finished products to be tested on animals,
anywhere in the world. In the case of new ingredients,
suppliers and sub-suppliers must provide evidence thatanimal testing is not required for the product to go tomarket in China or any other country.
In 2023, some Group brands in the "fragrances and cosmetics"
category operated via licensing agreements with leading industry
operators such as L’Oréal and Coty to develop and sell fragrancesand cosmetics. The entities with which Kering and its Houses
have signed licensing agreements have developed strict policies
on animal testing, compliant with internationally recognized
standards and best practices. Their approaches andrequirements are set out in their respective reports.

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5.5 Fostering circularity
Moving away from the conventional model of "take, make, waste" is not only about recycling. Transitioning to a truly circular economy
requires a complete rethink of the way we produce and use resources as well as the way we extend the life of products.

5.5.1 Circularity ambition: "coming full circle"
Kering sees the circular economy as a true opportunity to shape the industry by adapting it to the needs of future generations. The"Coming Full Circle" ambition has three central aspects:
1. luxury that lasts;
2. regenerative sourcing and clean production;
3. making production processes more efficient.
Kering has set a series of targets: zero product destruction, 100% renewable energy by 2022 (target achieved based on RE100 criteria,
see section 5.2.4.2), zero single-use plastic by 2025, 100% of raw materials to comply with the Kering Standards by 2025, and zero
microfiber leakage by 2030.

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Sustainability
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5.5.2 Sustainable innovation
Kering aims to stimulate disruptive innovation, transform traditional production processes and encourage the widespread adoption of
more sustainable practices. The Group is driving sustainable innovation and setting up internal workshops and structures, while theHouses are developing initiatives specific to their businesses and priorities. Kering is also committed to developing an ecosystem ofinnovation actors. The graphic below summarizes Kering’s innovation approach and the various stages involved, from identifying
innovation opportunities (external or internal via the MIL, JIL or specific departments within the Houses such as R&D, operations,strategy) through to the rollout of innovations:5.5.2.1 Supporting innovation within and outside the Group
Material Innovation Lab (MIL)
Kering’s Houses can rely on the Material Innovation Lab (MIL), which opened in 2013 at the heart of the Group’s production operations
in Italy. It consists of a team of experts and a materials library, with three main missions:
1. Provide a sustainable
materials library

2. Investigation of supply chains

3. Leading responsible innovation• Develop and make available to the• Help the Houses to source sustainable • Identify, assess and select sustainable
Houses materials (fabrics, yarns, trims,
raw materials (cotton, wool, silk) in
textiles innovations in a variety of areasetc.) aligned with Kering Standards tolarger quantities and develop multisuch as biotech fibers, recycling
replace conventional materials in theirbrand synergies.
techniques, dyeing, printing andcollections.
traceability technologies, etc.
• Map supply chains from field to end• Provide technical support for R&D
supplier, collect and check the various • Steer these innovations to make themefforts relating to sustainable materials,
certifications at each stage in order tomore mature and get them to a level ofto design new textile structures andimprove transparency. The MIL is also
development where they can be appliedyarns for different product categories.
working on rolling out a digitalby the Group’s Houses.
traceability tool and also mapping out • Support pilot projects from the Fashion• Update the MIL materials library every
the textiles industry and Kering’s supply
six months to incorporate fabric andfor Good accelerator, of which Kering is
chains (over 400 subcontractors andyarns of suppliers’ new collections. Allan active member.
suppliers mapped).
obsolete collections are regularly
donated to educational institutions in• Maximize efforts to create sourcing
Italy and other countries.
mechanisms that enable the Houses
and suppliers to source regenerative
materials from the Regenerative Fundfor Nature and approve a sharedsourcing mechanism with suppliers andsubcontractors.

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The MIL’s main achievements in 2023 were as follows:• Around 8,000 samples of textile• Six main medium-term research• More than 800 manufacturers
components listed (fabrics, yarns, trims,
streams:(materials, yarns, accessories and raw
packaging, nonwoven, hard andmaterials producers) listed in the– low-impact denim (11 projects incomposite materials, etc.).
materials library (350 of which were
progress);
added in 2023).
• Over 150 textile developments and– fur alternatives (8 projects);
research using sustainable and•Operational collaboration with– closed-loop recycled materials
innovative materials for the ready-toinnovative startups to bring seven(14 projects);
wear, soft accessories (scarfs, gloves,technologies to a level of maturity close– access to new fibers and adaptationhat), denim, packaging, shoes and bags
to implementation (alternative
to collections (15 projects);
categories:
materials, natural or biotech-based– transparency and traceability
dyes, finishing without controversial– new fabrics and yarns that use low(11 projects);
substances).
impact fibers (hemp, linen, etc.) and– alternatives to conventional polyester • Approximately 100 Group suppliers
recycled materials (cotton, wool and(14 projects).
cashmere);
supported in their ecological transition:– new textiles structure to replicate fur • 178 training sessions:– financial contributions to share theeffect using natural and synthetic
cost of certification or to include more
– externally: dedicated online training
materials;
sustainable materials in their fiberat supplier facilities (spinning, dyeing,
portfolios;
weaving mills, etc.);– innovative fibers or fibers originatingfrom Regenerative Fund for Nature– onboarding in sourcing more
– internally: online training, webinars
projects (wool, cotton, cashmere);sustainable materials and training for
and workshops with the Houses andaligning with the Kering Standards.
suppliers;– dyeing and finishing using alternatives
to controversial substances.
– IN LAB workshop: operational
workshops dedicated to specificteams at each House working withexternal stakeholders on developing
samples of materials and textiles.

Jewellery Innovation Lab (JIL)
The main role of the Jewellery Innovation Lab (JIL) is to help
Kering’s Jewelry Houses with adopting more sustainable
practices by means of innovation and networking. Its two key
aims are:1. develop sustainable innovations for materials andprocesses to reduce the impact of the supply chains;
2. assert the leading position of Kering and its Jewelry Housesin terms of sustainability through key partnerships andgroundbreaking initiatives.
In 2023, the JIL worked on alternatives to precious stones and on
processes and materials with a lower environmental impact, suchas ceramics produced using limited energy consumption andgreen batteries.

Innovation in leather
Some of the Group’s tanneries conduct trials on developing
alternative materials to leather in partnership with externalinnovators, drawing on their expertise in leather tanning. The aim
is to be able to offer high quality, plastic-free materials of nonanimal origin with a significantly lower environmental impact to
the Group’s Houses and beyond. This work also aims to prepare
the future of tanneries for new processes relating to these
innovative materials, and enable Kering to achieve its targets interms of reducing greenhouse gas emissions, as leather accounts
for 44% of greenhouse gas emissions relating to the products' life
cycle and their commercialization, according to the EP&L.

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5.5.2.2 Innovation-oriented initiatives
from Kering’s Houses
In addition to Group-level initiatives, the Houses also run theirown innovation initiatives, addressing their specific activities
and priorities. These include:• Balenciaga organized its fifth Material Innovation Unit (MIU),
bringing together over 50 designers, developers andoperational representatives to converge towards common
practices and processes. The platform is also useful fortraining teams and putting them in touch with startups, NGOsand experts from the academic world on topics including
responsible sourcing, innovative materials and sharing ofbest practices;• in 2023, Balenciaga launched a coat made from Lunaform™, a
new biomaterial produced by micro-organisms during
fermentation. This is the first time this material has beenused in the fashion industry. The process only involves
natural ingredients and no synthetic chemicals products areused. It is free of animal products and plastics. The House
won the Best Luxury Product of 2023 at the PETA Fashion
Awards;• Gucci has extended its range of products made fromDemetra, an animal-free alternative to leather produced in
Italy, to include the Gucci Horsebit 1955 bag, which is madefrom 75% plant-based raw materials. The House took theBest Vegan Bag prize at the 2023 PETA Fashion Awards;• Alexander McQueen used marine leather in its 2023 shoecollection, in collaboration with French startup ICTYOS. Initialassessments by ICTYOS highlight the reduced environmental
impact of this leather in terms of carbon emissions and water
consumption compared with conventional cowhide leather;

Sustainability
Respecting and protecting the environment in our operations and value chain• Kering Eyewear’s Blockchain Virtus project: a system
adopting blockchain technology on a regulated platform tomeasure and quantify the impacts of all parties andprocesses throughout production flows and check that eachlink within the chain is adhering to the quality standards andenvironmental, social and ethical practices set by Kering
Eyewear;• the TextileGenesis platform implemented by Saint Laurent: a
supply chain traceability platform to trace materials back to
the farm. Saint Laurent focused on wool and cashmere
supply chains in 2023 and is looking to extend its scope of
application in 2024.

5.5.2.3 External partnerships
Partnership with Fashion for Good
Kering became a founding partner of the Fashion for Good
accelerator in 2017. Its aim is to drive innovation in the Luxury
and fashion industries considering in sustainability criteria andsupporting the development of startups through an intensive
accelerator program. Partners can identify startups and support
them in their development.
In 2023, particular emphasis was placed on dry and wet finishingtreatments, fiber-to-fiber mechanical and chemical recycling,development of low-impact dyeing techniques and leather
alternatives (bio-based or recycled materials).
Of the 151 pilot projects launched via the accelerator, 33 werecoordinated with Kering Houses through the MIL and at Grouplevel, including:• the "D(r)ye Factory of the Future" project, initiated in 2022
and continued in 2023, to trial innovations in the pretreatment and dyeing of fibers and more specifically cotton
denim, wool, polyester and wool-cotton blends, in order toreduce consumption of water (maximum reduction of 99%
and average of 84%), energy (maximum reduction of 93% andaverage of 69%) and chemicals (maximum reduction of 90%
and average of 59%) during the dyeing process;• a hydroponic cotton project, aiming to grow cotton in
conditions similar to those of a greenhouse, withconsiderable reduction in the use of water, chemical
pesticides and synthetic fertilizers, while quadrupling yields;• the "Black Pigment Project", initiated in 2022 and continued
in 2023, for validating and scaling bio-black pigments derived
from waste feedstocks such as industrial carbon, algae andwood that could replace synthetic carbon black dyes, offeringa lower carbon impact compared with classic dyeing
techniques.

Partnership with Biofabricate
Biofabricate is a services platform based in New York that aims topopularize and democratize emerging biotechnologies andbiomaterials. It connects Luxury goods houses with innovators
around the world. In 2023, Biofabricate launched a web platform
dedicated entirely to biomaterials. Kering played an active part inthis platform, defining the needs of its Houses taking an
educational approach and acting as beta tester ahead of its
public rollout in 2024. In January 2024, Kering was main sponsorof the Biofabricate Summit in France, bringing together aninternational panel of innovators, creatives and investors.

Kering Generation Awards
Kering and the innovation platform Plug and Play China havecreated the Kering Generation Awards to promote sustainable
innovation in the fashion industry. As well as identifying
innovators in sustainable fashion in mainland China, the award
program also seeks to raise awareness within the Chinese fashion
ecosystem about the importance of more responsible fashion.
The rollout of the Kering Generation Awards in Japan has begun
with local accelerator CIC. The first awards ceremony will be heldin Tokyo in December 2024.

5.5.3 Promote circularity and the reuseof products
5.5.3.1 Durability by design
The priority of circular fashion is to create products that last,retain their value over time and to produce the right number of
products so as to avoid unsold products. The Group’s luxury
products fall within this framework, combining strategic knowhow with excellent craftsmanship in processing, cutting andassembly. They are designed and created from unique materials,
and are subject to rigorous quality controls to ensure theirlongevity and durability. These practices improve both products’
intrinsic (physical) durability and their extrinsic durability, or their
desirability and the emotional attachment they inspire.
Furthermore, the Houses offer their customers repair services tomaintain the quality of their products and ensure that theystand the test of time, sometimes in addition to a warranty:• Brioni offers its customers a reconditioning service, which it
promotes via its e-commerce site;• Bottega Veneta has introduced its Certificate of Craft lifetime
warranty program for its most iconic bags (Jodie, Cassetteand Pouch) offering unlimited refresh and repair. Thisinitiative is free for customers, who receive a physicalcertificate that matches the serial number of their bag.
To make it easier to access repair services, Kering has createdspecialist repair centers for customers: one located in Shanghai,another one in Hong Kong SAR and a last one in the United States(near its headquarters in Wayne, New Jersey). Kering alreadyoffers a resoling service for sneakers, and several Houses havelaunched pilot programs for shoe cleaning and repairs. Kering’s
after-sales service is an essential part of building loyalty towards
the Houses. This contributes to its excellence and savoir-faire,with the aim of enhancing the lifespan of the Group’s luxury
products.
Gucci, with the support of Kering, announced the launch of thefirst circular luxury goods hub in Italy in 2023. The aim of the
Gucci "Circular Hub" is to speed up the transformation of
production methods in the Italian fashion industry, redefining theentire value chain. From raw materials and design throughoptimizing production and logistics, the "Circular Hub" is an
open-source innovation platform for the design and manufactureof circular products and research of new solutions. It supports thecreation of innovative and circular luxury products that maximize
the use of recycled materials, durability, repairability andrecyclability.

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5.5.3.2 Build a business model that gives
products a second lease of life
Extending the lifespan of products also means looking for new
business models that preserve the value of the product andkeep it in the economy. As such, the sale of second-handproducts is growing in importance and is a strategic focus for
the Group, primarily via Kering Ventures. Its purpose is to invest
in innovative new technologies, brands and business models forthe future of the luxury sector. This includes the acquisition of afinancial stake in 2021 in Vestiaire Collective (worldwide preowned fashion platform), Cocoon (luxury bag rental service) andVitroLabs in 2023 (startup specializing in the production of labgrown leather), etc.
The Group has also accelerated its movement to collect productsthat are no longer used by customers, collectively via extended
producer responsibility if the organizational structure is in place
locally, as is the case in France with Refashion, or throughpartnerships such as Alexander McQueen x Vestiaire Collective,
which offer a practical solution for collecting products that are nolonger used, while increasing products’ active lifespan.

5.5.3.3 Reuse, upcycle, recycle
To limit the quantity of unsold products at the end of eachseason, the Group is investing in artificial intelligence
technologies to improve sales forecasts and therefore optimize
production and distribution. Machine learning models improve
the Group’s ability to anticipate seasonal demand and current
trends, thereby reducing possible prediction errors.
As the destruction of unsold products is prohibited throughout
the Group, Kering is actively working to develop operational
solutions to give products and materials a second lease of life.
This means that products that are not sold in stores, particularly
because of feedback about quality, are then offered for sale toemployees and their friends and families, or are donated. If
products still remain unsold, pilot upcycling andremanufacturing projects are in place to develop lasting andvalue-added recycling systems that preserve the value ofmaterials in order to use recycled materials in fashion products.
These processes are not the same as downcycling, which does
not allow for a circular economy.

House has also set up the "Gucci-Up" program to upcycle
scraps of leather and textiles generated during the
production process. Between 2018 and 2023, Gucci reused
111 tons of leather scraps;• Saint Laurent has used upcycled leather in its Sunset
collection since Fall 2021;• Kering Eyewear has developed ReAce, a 100% recycled
acetate derived from pre-consumer acetate scraps. Using
ReAce promotes a circular economy approach by recovering
subproducts that would otherwise be wasted. Producing one
kilo of ReAce reduces carbon emissions by at least 50%
compared with producing the same quantity of conventional
acetate;• Pomellato has launched the Pomellato Iconica Cocktail ringcollection using ancient stones from unsold rings from the
Veleno collection.
These practices have enabled the Group to anticipate French andEU regulations and even go beyond these regulations by banningthe destruction of unsold products, regardless of location.

5.5.3.4 Responsible and regenerative
sourcing of materials andresponsible collections
The final aspect relates to the sound management of chemicals,
the maximum use of recycled or renewable materials, andrecycling at every stage of production. Kering and its Houses havefocused primarily on materials deemed strategic by virtue of theirvolume, their environmental impacts or their contribution in
overall sourcing (see section 5.4).
This approach, coupled with the Group’s innovation strategy (seesection 5.5.2), has resulted in a steady rise in the weighting of
responsible materials aligned with the Kering Standards within
the Houses’ collections, helping to raise greater awarenessamong customers and respond to growing demand for
responsible products (see also section 6.1).

5.5.3.5 Circular economy partnerships
in fashion

The Houses have developed a number of reuse, upcycling or
recycling projects such as:• Balenciaga used obsolete fabrics and shoe scraps to produce
insulation panels for its training center and factory in Cerreto
Guidi. This enabled it to insulate a total of 2,800 m² of walls
and use 5.8 tons of shoe scraps and 1.5 million tons of fabric.
The House is also involved in a leather scraps recycling
project with a number of external partners, allowing for therecovery of 5.2 tons of leather in 2023;• Bottega Veneta has set up several leather scraps recycling
projects. The first allowed for the launch in 2023 of the"Reserve Leather Series" collection, using leather from highquality surplus stock to create unique pieces. The second
project consisted of collecting leather scraps (free of chromeand other metals) to create paper. Finally, another project
has been launched to turn leather scraps into fertilizer;• As part of its "Circular Hub", Gucci has worked in partnershipwith International Promo Studio, Candiani Denim and Filatura
Astro to develop jeans made from 74% cotton fiber grownusing regenerative agriculture practices and 26% postconsumer recycled fibers, collected and re-spun in Italy. The— 254

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5.5.4 Packaging and waste
management

5.5.4.1 More sustainable packaging
According to the definition given in the European Directive on
packaging and packaging waste, a packaging is a disposable
article made of any material, intended to contain and protect
specific goods and allow them to be handled and transported. As
a result, certain items used to protect the Group’s products, andintended to be used by customers throughout the products’ lives,
are not categorized as packaging. For example, this is the case forjewelry boxes, eyewear cases, clothing and shoe dust bags thatare not used as disposable items by customers.

Sustainability
Respecting and protecting the environment in our operations and value chain

Packaging consumption (in metric tons)
2023
13,1852022
19,6402021
29,849Change 2023
vs. 2022-33%

TextilesPlastics

427
608

442
581

2,552
1,136

-3%
+5%

Metals
Wood

70
33

50
37

683
219

+40%
-11%

Leather
Other materials

3
4

0
6

2
63

N/A
-33%

14,33020,75634,504-31%

Paper and cardboard

TOTAL PACKAGING

The Group does not use glass packaging. The general reduction in packaging used by the Group’s Houses between 2022 and 2023 ismainly due to the reduction in production volumes over the year, as well as anticipated new artistic directions.

Paper and cardboard packaging

Plastic packaging

92% of packaging used by Kering consists of paper andcardboard. In 2023, all paper and cardboard packaging wascertified or recycled.

4% of the Group’s packaging is made of plastic. In 2023, 65%of plastic packaging consisted of recycled or bio-based material.

35%

53%

Recycled paperand cardboard

47%

Certified paperand cardboard

Measures to promote more sustainable packaging
Kering and its Houses strive to source recycled or certified
biobased materials. They have also adopted initiatives aimed at
reducing the use of packaging while guaranteeing an optimallevel of protection for the goods manufactured. The Kering
Standards dedicated to packaging set out the principles of
ecodesign: reduce (weight and volume), reuse, recycling andincorporate sustainable materials (recycled, bio-based andcertified). It should be noted that the use of compostable plastic
is not considered as a viable solution for the Group, as thesematerials have not demonstrated specific environmental
benefits.
All the Houses are developing plastic alternatives for theirpackaging, gradually replacing it with paper (FSC-certified) or
cotton (organic, GOTS-certified). In particular, in 2023, Boucheronpresented its new jewelry case concept. It is made from just twomaterials: aluminum (made from 15 to20% recycled aluminum)and felt (made from RWS-certified wool). Using felt means thatglue and stitching is not necessary, which makes recycling easier.
In 2022, an ecodesign tool was developed to help teams
implement the Kering Standards on an operational level. This
guide will be shared more widely with suppliers at the start of
2024.

Other

54%

Recycled
plastic11%

Bio-based
plastic

The Houses pay special attention to packaging used for ecommerce. For example, Bottega Veneta uses a box made fromcardboard that is lighter than the traditional packaging used,
thereby optimizing space and reducing the impact of productshipping. Gucci no longer uses plastic in its retail and ecommerce packaging, which consists of reusable cotton
packaging and filling made from FSC Mix certified paper. Gucci isalso cascading its requirements to its suppliers. As regards plastic
protective boxes for its accessories, Gucci’s "Take Back" program
avoided the production of 360,000 boxes, equal to 43 metric tonsof plastic avoided for BtoB packaging in 2023.

Single-use plastics
Kering believes that eliminating plastic packaging across theindustry is a priority and has adopted the ambitious target of
eliminating it completely by 2025. The solutions being
considered are as follows, in order of priority:
BtoC:
1. eliminate packaging;
2. replace plastic with another material such as paper.
BtoB:
1.
2.
3.
4.

eliminate packaging;choose reusable rather than single-use packaging;
replace plastic with another material such as paper;use 100% circular plastic:– containing 100% recycled material,– recyclable in practice and at scale.

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5.5.4.2 Hazardous and non-hazardous
waste

The Group’s 2023 EP&L results show that 3% of Kering’s
monetized environmental impacts related to the products' life
cycle and their commercialization concern waste production, andthat they are mostly in Tiers 1 and 2 (final assembly andmanufacturing).

Hazardous and non-hazardous waste production
Kering produces primarily packaging waste. Waste production is
directly related to the intensity of its retail activities. The
repackaging of products or the use of pallets for transportation
mostly generate non-hazardous waste.

Small quantities of hazardous waste are produced,
corresponding to specific waste in production sites and otherwaste produced mainly in stores and offices (lighting, ink
cartridges, etc.). The main source of the Group’s hazardous waste
production is linked to its industrial operations, and more
specifically its tanneries. One of the main challenges is thepresence of heavy metals, which are used during the tanning
process, in waste. Kering’s tanneries are therefore actively
involved in the research and development of alternative tanning
methods that are more environmentally friendly (seesection 5.4.2.1). As a result, a heavy metal-free tanning method is
now available at the Group’s tanneries and Life Cycle
Assessments (LCA) have been carried out to confirm theimprovement in environmental impact associated with the newprocess, which does not use chrome or heavy metals.

Total waste produced (in metric tons)

Non-hazardous waste
Of which recycled and recovered
Hazardous waste(1)Of which recycled and recovered

2023
18,341
67%
604
60%

2022
22,702
65%
569
43%

2021
20,45277%645
46%

TOTAL WASTE

18,94523,271

21,097

67%

64%

76%

Of which recycled and recovered

Change 2023
vs. 2022
-19%
+6%

-19%

(1) Hazardous waste includes batteries, neon lights, waste electrical and electronic equipment, used oil, paint, aerosols, soiled packaging and ink
cartridges.

In 2023, 97% of waste generated by the Group was nonhazardous. The quantity of waste produced decreased by around
19% in 2023. The Kering Standards on store operation andmaintenance are being introduced to more and more sites. At all
Alexander McQueen, Balenciaga, Bottega Veneta, Brioni and
Qeelin stores in France, waste is regularly weighed and declared,
with average recycling rates of over 80%.
The proportion of non-hazardous waste recycled and recoveredrose to 67% in 2023.

Non-textile waste recycling
Kering is constantly looking for ways of recycling the waste
generated by its operations. For example, Kering, Balenciaga andSaint Laurent collect and recycle paper and packaging at theiroffices.

Waste recycling rate in 2023 (%)

5%

Recovered

61%

Recycled

34%

Other

Measures are also being taken on a local level to combat foodwaste, such as Kering Eyewear’s partnership with food waste
collection and recovery expert Moulinot, or Balenciaga and Saint
Laurent’s partnerships with waste and compost recovery
specialists Linkee and Les Alchimistes, particularly in relation to
showroom events. Gucci has been involved in the Siticibo
initiative in collaboration with Banco Alimentare since 2011,
which also partners with Pomellato and Dodo.

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Textile waste
Kering and its Houses have launched numerous initiatives andentered into multiple partnerships with schools, associations
and recycling organizations to collect waste and scraps fromproduction processes and fashion shows with a view torecycling or reusing them (see sections 5.5.3 and 6.1.2):• Revalorem for the reuse and recovery of damaged and unsold
items;• donations to charities or schools, or private sales of stocks offabric from old collections;• with support from the MIL, Gucci has established an
ambitious collection and recycling program for ECONYL®
scraps. Known as the "ECONYL®-Gucci pre-consumer fabrictake back program", it aims to maximize the benefits of thisinnovative material in Gucci’s ready-to-wear collections;• at the end of 2023, 10 tanneries were involved in the Gucci"Scrap-less" project. The project consists of cutting off partsof hides that cannot be used in finished products due to theirsize or quality before tanning actually takes place. The
outcome over the period from 2018 to 2023 was a greatly
reduced environmental impact, achieved by reducing thequantity of leather needing to be tanned (314 tons of scrap
leather avoided). This meant lower carbon emissions(28 tCO2e avoided), a reduction in use of water (35 million
liters of water saved), chemicals (reduction of 484 metrictons, including 82 metric tons of chrome) and energy(2.9 million kW), and a lower impact from transportation.
Several Houses have also establishedmanagement systems (see section 5.5.3.3).

leather

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5.6 Identification of Group economic activities coveredby the EU Taxonomy regulation
5.6.1 Principles and key performanceindicators of the "Green
Taxonomy"
This section has been prepared in accordance with EU Regulation
2020/852 of June 18, 2020 (known as the "Green Taxonomy"
Regulation), Delegated Regulations (EU) 2021/2139, (EU)2021/2178, Climate Delegated Regulation (EU) 2023/2485 andEnvironmental Delegated Regulation (EU) 2023/2486 toencourage sustainable investment.
The Taxonomy aims to identify economic activities that meet atleast one of the following six environmental objectives:• climate change mitigation;• climate change adaptation;• sustainable use and protection of water and marine
resources;• transition to a circular economy;• pollution prevention and control;• protection and restoration of biodiversity and ecosystems.
Application of the "Green Taxonomy" Regulation will be phasedin as of the end of 2021. For 2023, eligible activities have been
extended to include the six environmental objectives. Companies
are required to publish three indicators in 2023: turnover, CapEx
and OpEx, corresponding to the proportion eligible in relation to
the six objectives and aligned only with the two climate
objectives of climate change mitigation and adaptation.
On the basis of the new activities introduced in the amendment
to the Delegated Regulation of June 13, 2023 (DR 2023/2485 andDR 2023/2486), Kering has analyzed the activities that could
apply to the Group and identified the following activities: 5.1
Repair, refurbishment and remanufacturing and 5.4 Sale ofsecond-hand goods, with the aim of moving towards a circular
economy.
As a result of the analysis and the amounts associated with these
new activities, the main impact for Kering remains linked to
CapEx related to real estate , in particular purchases of property
and leases. Details of the methodology used and Kering’s
assessment of compliance with the cross-cutting conditions foralignment (Do No Significant Harm – DNSH and minimum
safeguards) are provided in section 5.6.2.

5.6.1.1 Kering’s applicationof the Taxonomy
Analysis of eligible CapEx focused on expenditures related toassets or expenditure eligible for the Taxonomy on an individual
basis. The main CapEx targeted are real estate assets, inparticular new leases and new acquisitions. As a company
involved in retail and luxury goods, the majority of right-of-use
assets in 2023 correspond to leases for stores, most of them arelocated in historic buildings in city centers. In many cases, thesebuildings do not meet the highest energy efficiency standards.
Through its Kering Standards and building certifications (such as
LEED Platinum/Gold and BREEAM), Kering improves significantly
the energy efficiency of its sites and stores (see section 5.2.3.1.2).

TurnoverIn relation with the new activities listed in the amendment of
the Delegated Act of June 13, 2023 (DR 2023/2485 and DR
2023/2486), Kering has analyzed turnover and investments
associated with the following activities with the aim of moving
towards a circular economy:• 5.1 Repair, refurbishment and remanufacturing;• 5.4 Sale of second-hand goods.
This analysis shows that turnover relating to these Taxonomyeligible activities is below the Group reporting thresholds,
representing less than 0.1% of the Group’s total turnover andthus considered as non-material.
Nevertheless, all Group Houses have launched initiatives toencourage circularity (see section 5.5):• repair services offered to customers. These services areusually free and represent more an operating expense than asource of revenue for the Group;• selling second-hand and vintage products via online
platforms such as Vestiaire Collective and Reflaunt;• use of materials that promote circularity.
A detailed table of ratios of Taxonomy-eligible and Taxonomyaligned turnover is provided in section 5.6.1.2.

Proportion of turnover/(absolute turnover)
Climate change mitigation (5)Aligned0%

Eligible0%

Climate change adaptation (6)Water and marine resources (7)

0%
N/A

0%
0%

Circular economy (8)Pollution (9)

N/A
N/A

0%
0%

Biodiversity and ecosystems (10)

N/A

0%

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Capital expenditure
In accordance with the regulation, Kering has analyzed its
acquisitions of property, plant and equipment (IAS 16) andintangible assets (IAS 38), right-of-use assets (IFRS 16) andbusiness combinations (IFRS 3).
Highlights: Strategic investments and perimeter changes had asignificant impact on the Group’s CapEx in 2023:• acquisition of strategic real estate assets in Paris for€1.7 billion (see Note 14 "Property, plant and equipment" of
the Notes to the financial statements), of which €468 million
is Taxonomy-eligible;• consolidation of two new entities:– Richard Ginori, with an impact on Group CapEx of€68 million, of which €44 million is Taxonomy-eligible,– Creed, with an impact on Group CapEx of €328 million, of
which €74 million is Taxonomy-eligible.
These acquisitions and additions to the scope of consolidation
have been analyzed according to the criteria described for
activity 7.7 Acquisition and ownership of buildings, with the aimof mitigating climate change.
Eligibility and alignment ratios: Eligible expenditures represented
46% of total CapEx in 2023, compared with 59% in 2022. Thechange in the proportion of eligible expenditures is primarily due
to the impact of the acquisition of three buildings in Paris,increasing the total amount of CapEx (denominator) by 68%
relative to 2022. Note that total CapEx also includes land that is
not Taxonomy-eligible.
Furthermore, Kering did not directly implement any solutions
responding to the objective of adaptation in 2023, as in the lightof the Group’s activities and risk review, expenditures over theyear are related mainly to climate change mitigation measures.
The main changes in eligibility and alignment ratios comparedwith 2022 were as follows:• 7.7 Acquisition and ownership of buildings– all new leases and acquisitions were reviewed;– the eligible proportion relating to activity 7.7 (climatechange mitigation) of the Taxonomy amounted to 41% of
total CapEx in 2023. This 53% reduction relative to 2022 isdue to a 68% increase in total CapEx (impact of the value ofland from acquisitions mentioned above). The total eligible
amount comes to €1,886 million compared with
€1,416 million in 2022, corresponding primarily to the valueof the three buildings (excluding land) acquired in Paris
during the year;– the aligned proportion is 10% of total CapEx, stable relative
to 2022 (11%). This is mainly because of the alignment ofassets acquired in 2023 and achieving the energy criteria(EPC A rating) for new leases, representing a total of€472 million;– regarding the consolidation of Ginori and Creed, the Group
carried out a review of the two consolidated entities’
eligible property, plant and equipment, including mainly
production plants, offices and stores. Based on theinformation obtained and the Taxonomy criteria, theseassets are not considered to be Taxonomy-aligned but areincluded in Taxonomy-eligible assets in 2023. A more indepth review of Creed’s assets will be carried out in 2024, as
it was consolidated into the Group at the end of the year.
• 7.2 Renovation of existing buildings– the main major renovation projects in accordance withlocal regulations or aiming for a 30% reduction in primaryenergy demand have been analyzed for their eligibility andalignment;– eligible assets in relation to the renovation of existingbuildings increased to €115 million from €60 million in 2022,
as expenditure on store renovations was taken into
consideration in 2023. In 2022, analysis concerned mainly
expenditures not related to stores (production plants andwarehouses). As a result, some renovation projects werealigned with activity 7.2 criteria (climate change mitigation)in 2023, representing a total of €37 million (0.8% of CapEx);– in 2024, the Group will endeavor to take greater account of
Taxonomy criteria when starting renovation projects inorder to meet energy consumption reduction criteria.
• 7.3 Installation, maintenance and repair of energy
efficiency equipment– for sites for which investments are not eligible for a majorrenovation, the eligibility and alignment of energy efficiency
equipment have been analyzed;– taxonomy-aligned expenditures accounted for 2% in 2023,
similar to the proportion in 2022 of 3%. Emphasis is placedon this type of expenditure in the Kering Standards andenergy efficiency features such as insulation and LED
lighting are included in each real estate project.
• 7.5 Installation, maintenance and repair of instruments
and devices for measuring, regulation and controllingenergy performance of buildings– for sites for which expenditures are not eligible for a majorrenovation, Kering has analyzed eligibility and alignment n
relation to instruments for measuring, regulation andcontrolling energy performance;– these devices are widely used within the Group’s buildings,
as emphasized in the Kering Standards, and required forsite certification;– these expenditures remained stable compared with 2022,
amounting to €10 million in 2023.
Based on analysis of the technical criteria for substantial
contributions, application of the "Do No Significant Harm"
principle and minimum safeguards, Taxonomy-aligned CapEx
represents 13% of Kering’s total Taxonomy CapEx, or€593 million, compared with €412 million in 2022 (15% of total
CapEx).
Information about the methodology used and a review of DNSH
criteria are provided in section 5.6.2.

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Proportion of CapEx/(absolute CapEx)
AlignedEligible

Climate change mitigation (5)Climate change adaptation (6)

13%
0%

46%
0%

Water and marine resources (7)Circular economy (8)

N/A
N/A

0%
2%

Pollution (9)Biodiversity and ecosystems (10)

N/A
N/A

0%
0%

A detailed table of ratios of Taxonomy-eligible and Taxonomy-aligned turnover is provided in section 5.6.1.2.

Operating expenditure
In 2023, total Taxonomy OpEx as defined by the relevant
regulations amounted to less than 10% of the Group’s total
operating expenditure (cost of sales, personnel expenses andother recurring operating expenses). In view of this limited
amount and the nature of the expenses in question, which do not

Climate change mitigation (5)Climate change adaptation (6)represent the core business of Kering and its Houses, the work
carried out concluded that this indicator was not material for theGroup. The numerator is therefore considered to be zero. In
accordance with the Regulation, analysis of Taxonomy-eligible
and Taxonomy-aligned OpEx was not conducted.

Proportion of OpEx/(Absolute OpEx)
AlignedEligible
0%
0%
0%
0%

Water and marine resources (7)Circular economy (8)

N/A
N/A

0%
0%

Pollution (9)Biodiversity and ecosystems (10)

N/A
N/A

0%
0%

A detailed table of ratios of Taxonomy-eligible and Taxonomy-aligned OpEx is provided in section 5.6.1.2.

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5.6.1.2 2023 eligibility and alignment ratios(9)Turnover eligibility and alignment ratios

Biodiversity and ecosystems (10)Climate change mitigation (11)Climate change adaptation (12)Water and marine resources (13)Circular economy (14)Pollution (15)Biodiversity and ecosystems (16)Minimum safeguards (17)Proportion of Taxonomy-aligned
turnover (A.1) or Taxonomy-eligible
turnover (A2), year N-1 (18)Category (enabling activity) (19)Category (transition activity) (20)

Y;N

Y;N

Y;N

Y;N

Y;N

Y;N

Y;N

%

E

T

0% N/A N/A N/A N/A N/A N/A N/A

0%

Pollution (9)Circular economy (8)
Y; N;
N/EL

DNSH (Do No Significant
Harm) criteria

Y; N;
N/EL
Y; N;
N/EL

Water and marine resources (7)Climate change adaptation (6)Climate change mitigation (5)Proportion of turnover (4)

Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL

Substantial contribution criteria

%

(€m)

Code(s) (2)2023

Absolute turnover (3)Financial year

Economic activities (1)A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Turnover ofenvironmentally
sustainable activities
(A.1)

0

0%

0%

0%

0%

0%

0%

of which enabling

0

0%

0%

0%

0%

0%

0%

0% N/A N/A N/A N/A N/A N/A N/A

0%of which transitional

00%

N/A N/A N/A N/A N/A N/A N/A

0%

EL;
N/EL
EL;
N/EL

EL;
N/EL

A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned)
EL;
N/EL
EL;
N/EL
EL;
N/EL

4

Turnover of
Taxonomy-eligible but
not environmentally
sustainable activities
(A.2)

0

0%

0%

0%

0% 100%

0%

0%

0%

Turnover of
Taxonomy-eligible
activities (A)

0

0%

0%

0%

0% 100%

0%

0%

0%

B. TAXONOMY NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy
non-eligible activities

19,566 100%

Total (A + B)

19,566 100%CapEx eligibility and alignment ratios
Total Taxonomy CapEx corresponding to the denominator to calculate eligibility and alignment ratios has been reconciled with theamounts shown in the consolidate financial statements:
Expenditure category
Lease right-of-use assets (IFRS 16)(1)
Property, plant and equipment (IAS 16)(2)Intangible assets (IAS 38)(3)TOTAL TAXONOMY CAPEX (DENOMINATOR)

Increase in gross value in 2023

(1) Note 13 of the Notes to the consolidated financial statements, "Leases" - new leases and lease modifications.
(2) Note 14 of the Notes to the consolidated financial statements, "Property, plant and equipment".
(3) Note 12 of the Notes to the consolidated financial statements, "Brands and other intangible assets".

(9)

— 260

Y: Yes; N: No; EL: Eligible; N/EL: Not eligible; n.a.: not applicable

KERING - 2023 Universal Registration Document(in € millions)

1,472
2,654
425
4,551

Sustainability
Respecting and protecting the environment in our operations and value chain

Climate change adaptation (12)Circular economy (14)Pollution (15)Biodiversity and ecosystems (16)Minimum safeguards (17)Proportion of Taxonomy-aligned CapEx(A.1) or Taxonomy-eligible CapEx (A2),year N-1 (18)Category (enabling activity) (19)Category (transition activity) (20)

Y;N

Y;N

Y;N

Y;N

Y;N

Y;N

%

E

T

Y

0% n.a.

T

Water and marine resources (13)Climate change mitigation (11)
Y;N

Y N/A

Pollution (9)Y

Circular economy (8)Y

Water and marine resources (7)Y

Climate change adaptation (6)N/
EL n.a.

Climate change mitigation (5)Biodiversity and ecosystems (10)%Proportion of capital
expenditure (4)Absolute capital expenditure (3)(€m)

Code(s) (2)

DNSH (Do No Significant
Harm) criteria

Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL

Substantial contribution
criteria

2023

Economic activities (1)Financial year

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Renovation of existingbuildings

CCM 7.2

37

1%

Y

N

N/
EL

N/
EL

N/
EL

Installation,
maintenance andrepair of energy
efficiency equipment

CCM 7.3

74

2%

Y

N

N/
EL

N/
EL

N/
EL

N/
EL n.a.

Y N/A N/A N/A N/A

Y

3%

E N/A

Installation,
maintenance andrepair of instruments
and devices formeasuring, regulationand controlling energy
performance ofbuildings

CCM 7.5

10 0.2%

Y

N

N/
EL

N/
EL

N/
EL

N/
EL n.a.

Y N/A N/A N/A N/A

Y

1%

E N/A

N

N/
EL

N/
EL

N/
EL

N/
EL n.a.

Y N/A N/A N/A N/A

Y

11% n.a. N/A

Acquisition andownership of buildings

CCM 7.7

472

10%

Y

Capital expenditure ofenvironmentally sustainable
activities (A.1)

593 13% 13% 0% 0% 0% 0% 0%

15%of which enabling

84

2%

3%

of which transitional

37

1%

0%

0%

0%

– % 0%

0%

0%
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL

A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned)

Renovation of existingbuildings

CCM7.2;
CE3.2

78

2%

EL

N/
EL

N/
EL

EL

N/
EL

N/
EL

2%

Installation,
maintenance andrepair of energy
efficiency equipment

CCM 7.3

8 0.2%

EL

N/
EL

N/
EL

N/
EL

N/
EL

N/
EL

0%

N/
EL

N/
EL

N/
EL

N/
EL

42%

N/
EL

N/
EL

N/
EL

N/
EL

0%

Capital expenditure of
Taxonomy-eligible but notenvironmentally sustainable
activities (A.2)

1,501 33% 33% 0% 0% 0% 0% 0%44%Capital expenditure of
Taxonomy-eligible activities(A)

2,094 46% 46% 0% 0% 0% 0% 0%59%Acquisition andownership of buildings

CCM 7.7

1,415

31%

EL

N/
EL

Transport by
motorbikes, passenger
cars and lightcommercial vehicles

CCM 6.5

0.2

0%

EL

N/
EL

B. TAXONOMY NON-ELIGIBLE ACTIVITIESCapital expenditure of Taxonomy
non-eligible activities

2,457

Total (A + B)

4,551 100%

54%

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Sustainability
Respecting and protecting the environment in our operations and value chain

Climate change mitigation (11)Climate change adaptation (12)Water and marine resources (13)Circular economy (14)Pollution (15)Biodiversity and ecosystems (16)Minimum safeguards (17)Proportion of Taxonomy-aligned OpEx
(A.1) or Taxonomy-eligible OpEx (A2),year N-1 (18)Category (enabling activity) (19)

Y; N

Y; N

Y; N

Y; N

Y; N

Y; N

Y; N

%

E

T

Biodiversity and ecosystems (10)Pollution (9)Circular economy (8)Water and marine resources (7)Proportion of operating
expenditure (4)Climate change adaptation (6)0%Climate change mitigation (5)0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A

%

(€m)

Code(s) (2)

DNSH (Do No Significant
Harm) criteria

Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL

Substantial contribution
criteria

2003

Absolute operating
expenditure (3)Financial year

Category (transition activity) (20)OpEx eligibility and alignment ratios

Economic activities (1)A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Operating expenditure ofenvironmentally sustainable
activities (A.1)

0of which enabling

n.a.

0%

0% N/A N/A N/A N/A N/A N/A N/A

0%of which transitional

n.a.

0%

N/A N/A N/A N/A N/A N/A N/A

0%

0%

0%

0% — % 0%

A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL

4

Operating expenditure of
Taxonomy-eligible but notenvironmentally sustainable
activities (A.2)

00% 0% 0% 0% 0% 0% 0%0%Operating expenditure of
Taxonomy-eligible activities(A)0

0% 0% 0% 0% 0% 0% 0%

0%

B. TAXONOMY NON-ELIGIBLE ACTIVITIESOperating expenditure of
Taxonomy non-eligible activities

566

Total (A+B)

566 100%

0%

In accordance with the Climate delegated act 2022/1214 (appendix XII), below the table dedicated to activities related to nuclear
energy:Row
1

Nuclear energy related activities
The undertaking carries out, funds or has exposures to research, development, demonstration anddeployment of innovative electricity generation facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.

2

The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear
installations to produce electricity or process heat, including for the purposes of district heating or
industrial processes such as hydrogen production, as well as their safety upgrades, using best available
technologies.

NO

3

The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations
that produce electricity or process heat, including for the purposes of district heating or industrial
processes such as hydrogen production from nuclear energy, as well as their safety upgrades.

NO

4

Fossil gas related activities
The undertaking carries out, funds or has exposures to construction or operation of electricity
generation facilities that produce electricity using fossil gaseous fuels.

NO

NO

5

The undertaking carries out, funds or has exposures to construction, refurbishment, and operationof combined heat/cool and power generation facilities using fossil gaseous fuels.

NO

6

The undertaking carries out, funds or has exposures to construction, refurbishment and operationof heat generation facilities that produce heat/cool using fossil gaseous fuels.

NO

— 262

KERING - 2023 Universal Registration Document

Sustainability
Respecting and protecting the environment in our operations and value chain

5.6.2

Methodological note

Alignment is based on meeting substantial contribution criteria
and on the non-opposability of a generic or specific DNSH
criterion. Kering assessed these criteria on the basis of
documentation, certifications and supporting evidence required
to ensure that EU Taxonomy criteria are met with regard toactivities concerning the Group.

DNSH – Climate change adaptation
The climate change adaptation criterion applies only to Kering's
eligible activities, but all of the Group’s locations were included in
the analysis regarding the application of the criterion. The Groupanalyzed the risks of exposure to chronic and acute physical risks
and adaptation related to climate change, as well as thevulnerability of various sites (see section 5.2.2). Analysis was
carried out on the basis of two IPCC scenarios (RCP 2.6 and RCP
8.5) and two time horizons (2030 and 2040) and allowed forfinancial exposure to be modeled. Measures have been adopted
within the Group, particularly in relation to insurance policies andbusiness continuity plans, with more detailed management ofclimate change risk at the Group’s sites (annual site-by-sitemonitoring, strengthening of business continuity plans, annual
financial impact monitoring and discussions with thestakeholders involved, including insurers) that could lead to
adaptation solutions being adopted in addition to annual risk
analysis.
It should be noted that the Group is mainly a tenant of its sites,
which in many cases take up limited space within buildings, withlease terms that are variable but can be fairly short. As a result,landlords will be mainly responsible for physical adaptation
solutions.

DNSH – Water
For the alignment of expenditures under activity 7.2 – Renovationof existing buildings, it should be checked whether expenditurescomply with water flow rates per minute, which vary dependingon the water supply equipment used. Kering has checked
whether water meters or water consumption management
solutions are in place, which indicate alignment with thethresholds set by the European Commission.

DNSH – Circular economy
For each of the renovation projects under activity 7.2, Kering has
ensured that at least 70% of construction waste by weight isprepared for recycling, reuse or any other form of recovery bycollecting the necessary documentation, based in particular on
work carried out to obtain LEED Gold/Platinum certification forthe sites and other documents such as the existence of a green
worksite charter or on-site waste monitoring.

The Group has also checked that the design and construction
techniques used promote circularity (reusing materials,
dismantling, etc.) by collecting technical documentation on thematerials used on construction sites.

DNSH – Pollution
Kering has ensured that the pollutants listed in Appendix C of the
Climate Delegated Act have not been used in expenditures made,particularly for renovations of existing buildings (7.2) and theinstallation, maintenance and repair of energy efficiency
equipment (7.3).
The Group has also checked that thresholds for certain polluting
substances such as volatile organic compounds are respected,
for example by consulting documents such as indoor air quality
plans.
Finally, the Group has made sure that measures have been put inplace to limit noise, dust and polluting emissions during works(for example by consulting the Low Disruption Worksite Charter,
the Green Worksite Charter, etc.).
For Taxonomy-aligned projects, these criteria are deemed tohave been met on the basis of applicable French and EU
regulations concerning pollution.

Minimum safeguards
Minimum safeguards apply to the entire Group and mostly relate
to subjects within the scope of Group programs or policies. For
the Group, minimum safeguards consist of compliance with theOECD Guidelines for Multinational Enterprises, the United
Nations Guiding Principles on Business and Human Rights, theUnited Nations International Bill of Human Rights and thefundamental conventions of the International Labour
Organization (ILO). Minimum safeguards mainly cover humanrights and business ethics (anti-corruption, responsible taxation,competition law). The Group relied on the Sustainable FinancePlatform’s report on minimum safeguards to ensure its
compliance with these principles. The Group’s policies, programs
and action plans on the subject are presented in part 2 "Ethics,
the cornerstone of our business", in particular the Code of Ethics,
the Human rights Policy and measures to detect and prevent
risks of corruption and influence peddling, and in the chapter 5 ofthis Universal Registration document on the Duty of Care Plan,
responsible taxation and tax commitments.
There were no breaches of these rules in 2023.

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4

Sustainability
Commitments to our customers, our stakeholders and society as a whole

6 - COMMITMENTS TO OUR CUSTOMERS,OUR STAKEHOLDERS AND SOCIETY AS A WHOLE
6.1 Crafting tomorrow’s Luxury

6.1.1 Communicating withour customers
Responsible communication
Conducting effective and responsible communication andmarketing activities is essential for building trust with our
stakeholders and fostering sustainable relationships. For thisreason, Kering strives to communicate in an ethical andtransparent manner across all channels.

— 264

KERING - 2023 Universal Registration Document

To this end, a Policy and internal guidelines have been developed
and are implemented with the support of a robust internal
control framework under the supervision of the Chairman andChief Executive Officer. They detail key principles, golden rules
and processes to be implemented in every House and throughout
the Group.
To ensure that our communications comply with these principles
at Group level and within each House, a Brand Trust function was
created in 2023, tasked with making recommendations to theHouses regarding their content and marketing andcommunications activities, and to help them assess risks. The
Brand Trust must be consulted for advertising campaigns thattouch on one or more sensitive topics identified internally, for all
fashion shows and on demand for ad hoc requests.

Sustainability
Commitments to our customers, our stakeholders and society as a whole

In 2022, Kering also published a Practical Guide to Environmental
Claims as part of the Kering Standards, designed to provide
support to its Houses and to avoid any risk of potential
greenwashing statements. The guide sets out the kind of
information that should be provided. According to best practiceguides on green claims, for a claim to be fully responsible andtrustworthy it must be: true and relevant, clear andunambiguous, fair and without exaggeration, substantiated andverifiable, not over-using visual natural or nature-like elements,
and putting forward certifications properly. A practical guide for
the Houses' internal use (the "Kering Anti-Greenwashing
Guidelines") is currently being finalized.
The Charter on fashion models' working conditions and wellbeing, published in 2017 by Kering and LVMH and applied to all of
their brands, promotes high standards of integrity, responsibility
and respect toward the people concerned. As well as paying
particular attention to models' working conditions, this Charter
forms part of the Group's responsible communication efforts,
aiming to promote respect for the dignity of all people and toconvey a positive image to the audiences of the Group's various
Houses, particularly among vulnerable groups.
Gucci has a set of responsible marketing and communication
guidelines that set out the procedures that should be
implemented before and during photo shoots, fashion shows andother events and initiatives, such as the creation of promotional
materials and more generally any photographic/audiovisualmaterial produced or used by Gucci.

Informing customers
To provide customers with clear, accurate and reliable
information about the sustainability characteristics of theirproducts and sustainability, the Houses provide retail teams withspecific trainings. This is notably the case for Gucci (Global Retail
Academy), Saint Laurent (E-University), Bottega Veneta (Green
Atelier), Balenciaga (Global Retail Meeting), Alexander McQueen(Responsible Materials training), Brioni (My Brioni app) and
Boucheron. Kering Eyewear has also developed a guide for its
retail teams in order to respond to consumer requests aseffectively as possible, including details about the sustainable
materials used in its products.
In addition, the Houses have developed initiatives for theircustomers and the general public:• Gucci, Boucheron, Saint Laurent, Pomellato, Brioni,
Balenciaga, Bottega Veneta, Alexander McQueen or Kering
Eyewear communicate on sustainability matters via
dedicated apps, their websites or social media;• Boucheron's second impact report and Gucci's third were
published in 2023.
Kering has held discussions with various department store
landloards (particularly in Asia) regarding the criteria for a
product to be classed as sustainable, in order to guide customers.

Measuring the footprint of products
Kering takes part in methodological work regarding
environmental labeling to consumers, particularly via the work
done by the Fédération de la Haute Couture et de la Mode (FHCM)
as part of the European PEF (Product Environmental Footprint)
project and the French Anti-Waste and Circular Economy (AGEC)
Law. In 2022, preparations for the implementation of article 13 of
AGEC law included developing a data collection system in order
to display environmental information to consumers at the time ofpurchase. The information displayed relates to matters such as
the recycled content of products and packaging, theirrecyclability and the traceability of materials. In 2023, only Gucci
and Balenciaga were concerned by this regulation in relation totheir products, while Saint Laurent, Alexander McQueen and
Bottega Veneta will be concerned in 2024.
In 2023, Bottega Veneta continued using its Green Atelier, anintegrated system for monitoring the sustainability performanceof its materials and suppliers, and therefore of its products. The
system allows the House to assess all ready-to-wear, leather
goods and shoes collections across five criteria: traceability ofmaterials,
compliancewithsustainability
standards,
environmental impact, social performance and the quality ofsuppliers' chemical management processes. The Green Atelier
uses a number of interfaces that allow results to be shared widely
in-house, including an app installed on the phones of Bottega
Veneta's employees, which shows each product's performanceand strengths.

6.1.2 Green fashion shows: rethinking
fashion shows and managing
event footprints
Fashion shows are a unique opportunity to raise awarenessabout sustainability and to mobilize all the parties involved inorganizing a fashion show (brands, model agencies, event
organizers, media, etc.) around this important topic.
Since 2019, all of the Houses that hold fashion shows (Gucci,
Balenciaga, Saint Laurent, Alexander McQueen and Bottega
Veneta) have followed Kering's Green Fashion Shows internal
guidelines on minimizing the environmental impact of shows,while allowing the creative directors to express their artistic
potential. The topics covered by the guidelines include
governance, stakeholder relations, energy and waste
management, elimination of single-use plastics, catering andtransportation. The associated specifications cover the before,
during and after phases of each event. Since 2020, the safety
department has carried out procedures to check that theguidelines are applied in each show. These procedures were
reinforced in 2022.

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4

Sustainability
Commitments to our customers, our stakeholders and society as a whole

The actions put in place to minimize the overall footprint of the
fashion shows include reducing and sorting waste; renting,reusing and upgrading stage materials (wood, steel, synthetic
materials, carpets, seating, etc.); using compostable crockery;reducing and optimizing the transportation of employees,
merchandise and equipment; and offsetting the carbon footprintof events via forest protection projects. Partnerships are also
formed with various local nonprofits and organizations to collectand redistribute materials (at the Group level with La Réserve desArts), as well as equipment and leftover food. For example:• Gucci obtained ISO 20121 certification for its advertising
campaigns and shows, both physical and virtual. The
ISO 20121 standard examines environmental, social andeconomic factors to determine whether an event can qualify
as sustainable, and Gucci's compliance was verified by
Bureau Veritas. In addition to the Group's guidelines, Gucci
applies its own standards – the Gucci Guidelines for
Sustainable Events – to all its events. The House alsomeasures the environmental impact of all its shows, verified
by an independent third-party organization;• For all of Balenciaga's shows, the House works with an
ISO 20121-certified agency that is involved in all stages oforganization (installation, management of the show itself,
supplier relations, disassembly, etc.). In 2023, Balenciaga also
continued working with NGO Up2Green Reforestation andsupported two projects: one based in the Indian province ofGujarat to offset emissions related to its physical shows andone based in Senegal to promote the use of green energy(production of biochar) to combat deforestation and climatechange.
In 2022, in a circular approach, Kering formed a partnership with
M.E.TA, an Italian organization that upcycles business materials,
to create guidelines and share best practice regarding the ecodesign of fashion shows. The partnership is also creating a
traceability system for materials along with the performanceindicators needed to ensure circularity as regards the sets used inshows. In 2023, Gucci sent M.E.TA 26 tons of materials as part oftheir collaboration as well as 19 tons to La Réserve des Arts, for a
total of 103 tons since 2021. Kering also takes part in working
groups on this topic, set up by fashion industry associations andnonprofit organization Paris Good Fashion.

6.1.3 Product compliance andconsumer health and safety
Kering is committed to helping raise awareness of sustainability
issues among consumers, while ensuring that its products
respect both their health and the environment.
To enable customers to enjoy the products developed by theHouses safely, Kering has defined a set of quality and compliance
control procedures that comply with the strictest international
consumer health, safety and environmental standards andregulations, such as REACH, US CPSIA, China GB Standards andJapan Industrial Standards (JIS). The Product Compliance
Advisory department aims to pool services, for the purpose ofadvising and supporting the Houses on product development
and the various stages of production, including product testing
protocols to ensure that products comply with the local
characteristics of each market. The department publishes the
Product Restricted Substance List (PRSL) and Product Safety
Requirements, an internal document listing substances to be
removed and thresholds not to be exceeded, as well as
requirements in terms of product safety. To take into account thepace of technological development and progress in chemical
research, the PRSL is updated at least once a year. In particular, it
has specific modules for products intended for children in termsof managing chemical substances and safety. Specific training
sessions are provided each year.

Focus on: the Test & Innovation Lab (TIL)
The Test & Innovation Lab (TIL), acquired by Kering in 2021, is based in Prato (Italy) and has obtained ISO/IEC 17025
accreditation from Accredia. It helps the Group's Houses (as well as external clients) with their testing activities (250,000 tests
performed in 2023) and various sustainability-related projects. The TIL is also involved in various problem-solving, R&D andanalysis activities.
In 2023, the TIL received CPSC (Consumer Product Safety Commission) accreditation for the United States as well as ZDHC
certification relating to its use of chemicals.
In 2023, the TIL developed its skills by integrating a new Robotics department in order to test the sustainability of finishedproducts and their components, and acquired new equipment for identifying PFAs and tracing the origin of textile and leather
materials based on forensic analysis.
In 2023, the Product Compliance Advisory department
continued its activities with the following aims:
1. strengthen compliance controls: regular audits of productcompliance were conducted at the warehouse level
together with the Houses to detect potential noncompliance. Relations with laboratories accredited to carryout tests and measurements were maintained to cover thegrowing number of non-core products (food contact
materials, toys, electrical/electronic devices);— 266

KERING - 2023 Universal Registration Document

2. improve knowledge-sharing on product compliance
processes: training programs have been strengthened andextended to all key departments (product development,
production, quality and purchasing), from raw materials to
production (leather, fabric and metal accessories) andtesting. In 2023, around 15 training sessions on production
processes, compliance requirements and related tests andchecks were organized, attended by over 450 employees.
The department also adopted specific guidelines covering
the most important subjects regarding product compliance;Sustainability
Commitments to our customers, our stakeholders and society as a whole

3. support the product development teams: in collaboration
with the Chinese authorities, company-specific productstandards have been established for Kering's Houses. Thesestandards relate particularly to handbags, wallets, shoes
and belts, and set out chemicals-related requirements for
non-regulated product categories. They make it possible todevelop pieces that meet all requirements in terms ofhealth, safety and compliance, while leaving the Houses'
creative teams significant scope to follow their inspiration.
Kering's Customs & Trade Compliance department is tasked with
optimizing the Houses' global distribution flows from theregulatory and procedural perspective around the world. This
activity consists mainly of analyzing requirements and laws
relating to customs and compliance in destination countries for
new products and projects, working with local logistics teams
and external experts if need be. By working with the Customs &Trade Compliance department from the early stages ofdevelopment, Houses can prevent risks, penalties and delays,
and ensure that the distribution chain is fully compliant. Once
requirements have been defined, the Customs & Trade
Compliance department is tasked with pulling together andsharing product-related information and documents with
regional logistics teams, brokers and clients; checking theconsistency of product's master data managed by the Houses'

production departments and taking steps to correct potential
errors; managing product certifications and supplier audits byfollowing the standards established by international certification
authorities; and implementing appropriate compliance
procedures, often by directing other Group entities. In 2023, thedepartment dealt with almost 40,000 internal requests.
The Group also has a Multi Brand After Sales department, a single
point of contact for all the Houses that deals with quality
assurance for products after they have been sold, in accordancewith House standards as regards Value-Added Services (VASs).
The department also implements and manages activities related
to product returns from stores to the Group's distribution centers
and warehouses. Activities include repair management, productchecks, on-demand audits, re-labeling and the hallmarking
process for jewelry.
Some Houses also carry out specific actions related to regulatorycompliance in respect of hazardous substances and theimplementation of the PRSL and MRSL (see section 5.3.3.3).
Houses including Boucheron, Pomellato and Dodo, also ensurethat their products conform to the REACH regulation. Lastly,
Kering Eyewear uses accredited laboratories with specificexpertise in eyewear for its compliance checks.

6.2 Involving our ecosystem in creating tomorrow's Luxury
6.2.1 Positive community impact andpreservation of know-how
Conscious of its responsibility to future generations, Kering iscontinuing its policy of academic partnerships with design
schools, business schools and universities worldwide. The aim is
to raise awareness and train designers and future fashionindustry leaders regarding the major social and environmental
challenges they will face. Details of the main partnerships areprovided in section 3.1.2.
In addition, and in order to ensure that top-level expertise ismaintained and promoted within their business activities,
certain Houses are developing dedicated training centers andlocal partnerships. These professional bodies help to ensure thepreservation of some very demanding and unique skills, andsupport long-term employment in the regions where thesecrafts originated. To date, more than 4,000 people have taken
part in these programs and training courses delivered by theGroup and its Houses such as:• Gucci and its Gucci ArtLab center of excellence for leather
goods and shoes (1,470 participants in 2023) as well as its
collaboration with Instituto Secoli, sewing school(18 participants in 2023);• Saint Laurent and the Saint Laurent Couture Institute forready-to-wear apparel (104 participants in 2023);• Bottega Veneta's Accademia Labor et Ingenium, launched in
2023, to preserve its know-how and creativity and strengthen
its commitment to craftsmanship. This school allows new
Bottega Veneta employees and students to learn from master
artisans via training sessions, workshops and courses(40 participants in 2023). The program also offers upskilling
and reskilling courses for the House's employees in order topreserve Italian craftsmanship;• Brioni and its partnership with the Scuola di Alta Sartoria(10 participants for the 2023 summer school);• Boucheron and its partnership with the Haute École de
Joaillerie in France (50 participants in 2023);• Pomellato and its partnership with the Galdus Goldsmith
Academy, which trains future goldsmiths (122 participants in2023).
The Houses support craft guilds and undertake local initiatives,
for example Bottega Veneta with its Bottega for Bottegas
program. The project supports and celebrates the creativity of
Italian bottegas, which are small artisan stores that sellhandmade products. For the second consecutive year, Bottega
Veneta has supported fourteen bottegas from around the world
whose products are inspired by Italian culture, from a Shanghaibased pasta maker to a Vermont carpenter.
Finally, in 2018, Brioni integrated the Arazzeria Pennese historic
tapestry production site – one of Italy's most important tapestry
centers – with its Montebello workshops in order to preserve thishighly specific form of craftsmanship.

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Sustainability
Commitments to our customers, our stakeholders and society as a whole

6.2.2 Conveying our vision
for future generations
6.2.2.1 The Fashion Pact
The Fashion Pact has strengthened its foundations by launchinga Corporate Virtual Power Purchasing Agreement, of which
Kering was one of the main sponsors. Bringing together morethan 65 members representing more than one third of production
volumes in the fashion and textile industry, The Fashion Pact now
has considerable European and international influence,
establishing itself as the leading CEO-led coalition for thesustainable transition of the fashion sector. Its practical actions,split between the three key areas of climate, oceans andbiodiversity, are driving positive impacts for the signatories. They
cover subjects including renewable energy, microplastics andmicrofibers leakage, regenerative agriculture practices insourcing raw materials and tools for calculating biodiversity
footprint.

In 2023, The Fashion Pact officially launched its European
Accelerator project, aimed at reducing the Scope 3 greenhousegas emissions of textile producers that have a supply chain in
Italy. The project aims to fund the environmental transition of
suppliers, allowing them to invest in new equipment that willsave water and energy and reduce their use of chemicals.

6.2.2.2 Watch & Jewellery Initiative 2030
Kering and Cartier are the co-founders of the Watch & Jewellery
Initiative 2030. The initiative was launched in 2022 and its main
aim is to establish a sustainable supply chain for watches andjewelry. The coalition had 55 members at the end of 2023,
ranging from brands to suppliers and focuses on three key areas:
increasing climate resilience, preserving resources and fostering
inclusion. By encouraging suppliers to make strong
commitments to these objectives, Kering aims to steer the wholeindustry toward a sustainable transformation.

6.2.2.3 Mobilizing the whole of civil society
Kering and its Houses support and take part in numerous events and forums focused on sustainability. Through these events andspeeches, the Group regularly shares Kering's vision and strategy with future generations, helps to raise public awareness aboutsustainability issues and aims to mobilize the whole of civil society to address these themes. The main highlights in 2023 were:— 268

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Sustainability
Commitments to our customers, our stakeholders and society as a whole

6.3 Initiatives carried out by the Kering Foundationand sponsorship programs
6.3.1 After 15 years of combating
violence against women, Keringstrengthens its efforts and impact
to include combating violenceagainst children
Worldwide, one in three women is or will be a victim of violence in
her lifetime, regardless of her background, culture or social class.
In 2008, based on its belief that companies have a vital role toplay in addressing this issue alongside public authorities andNGOs, Kering launched its corporate foundation dedicated tocombating violence against women. Since its creation, thefoundation has received and endowment of €20 million from
Kering.
When the foundation's third term came to an end in August 2023,
15 years after its creation, the Kering Foundation changed its
status to an endowment fund, in order to amplify its commitment
and make it easier for the Foundation to work with Kering's

Houses, other companies and other foundations, as well as toraise funds. In addition, the Group extended the Kering
Foundation's commitment to include combating violence againstchildren, and particularly incest, which affects all cultures and allsocial classes. Since 2019, the Kering Foundation has worked on
the intersection of violence against both women and children by
joining forces with various initiatives. For example, it supported a
new unit dedicated to caring for women incest survivors at La
Maison des femmes in Saint-Denis, working with Face à l'Inceste.
To break the cycle of violence that is passed on from generation
to generation, the Kering Foundation now works to combat
violence from the earliest age with the following strategy:• supporting partner organizations to ramp up grass-roots
initiatives (appropriate care for victims and survivors andprevention work);• engaging Kering's ecosystem to create safe and supportive
workplaces;• influencing new audiences and mobilizing others to takeaction alongside Kering.

Focus: the annual Caring for Women dinner
In 2023, the Kering Foundation organized its second annual fundraising dinner entitled Caring for Women. The event took placeon September 12 in New York with the support of Kering's Houses. It raised over $3 million and benefited three nonprofit
organizations: the National Network to End Domestic Violence (NNEDV), the New York City Alliance Against Sexual Assault(NYCAASA) and the Malala Fund. The funds raised will finance: a microcredit program for victims of domestic violence, initiatives
to prevent sexual violence against young people at risk, and Afghan nonprofits offering alternative learning opportunities to girls
in regions where their education is under threat.
In 2023, the Kering Foundation's main actions were as follows:

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Commitments to our customers, our stakeholders and society as a whole— 270

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Commitments to our customers, our stakeholders and society as a whole

6.3.2 The Group’s philanthropic activity
Alongside the initiatives undertaken by the Kering Foundation, Kering and each House support causes that are important to them byproviding financial support, donating products, running special sales, taking part in charity dinners, offering the skills and time of its
employees, or forming partnerships with nonprofit organizations. In 2023, support for various causes in line with the priorities of theGroup's philanthropic approach – including efforts to combat violence against women and children, inclusion and the fight against
discrimination, the preservation of cultural, artistic and historical heritage and environmental protection – totaled more than
€22,900,000. It also supported initiatives in the fields of education, health, sport and the eradication of poverty. Of the €22,900,000
mentioned above, €5,990,000 went to initiatives benefiting women and children, who are central to the Group's priorities. The Houses'
main philanthropic activities in 2023 are summarized below:
Areas ofphilanthropic
activity
Description
Support for women • Saint Laurent, Brioni, Bottega Veneta, Gucci, Balenciaga, Pomellato and Alexander McQueen joined forces
and children
to support the Caring for Women fundraising dinner organized by the Kering Foundation, buying tables
and donating items for auction to a value of more than €1,200,000 to raise money for the National Network
Financial support
to End Domestic Violence (NNEDV), the New York City Alliance Against Sexual Assault (NYCAASA) and theprovided:
Malala Fund.
€5,990,000• In 2023, Gucci donated more than €4,000,000 to organizations promoting gender equality, including morethan €1,000,000 via the global Gucci Chime campaign. Projects that were granted funding include the
Global Fund for Women, which distributed the donation to four women's funds: Fondo Semillas in Mexico,
ELAS Fund in Brazil, HER Fund in Hong Kong and the Mediterranean Women's Fund. Gucci also supported
Associazione Artemisia, a center to provide help for women and children, which received a donation to
help minors who have suffered sexual violence, along with Mothers to Mothers, a nonprofit that provides
healthcare services to women and children in Africa. This initiative seeks to provide HIV-positive womenwith tools to end mother-to-child transmission of HIV. Gucci also supported UNICEF's global education
programs.
• Balenciaga and the Kering Foundation announced a partnership with the National Children's Alliance(NCA). With Balenciaga's support, the NCA will be able to train close to 2,000 professionals specializing in
post-traumatic therapies for children, and around 55,000 children will receive mental health care.
• Pomellato supported two Kering Foundation partners: FreeFrom and CADMI, which support womensurvivors of domestic violence to achieve economic independence.
• Saint Laurent renewed its support for charity: water, a nonprofit that works with numerous localorganizations to bring safe drinking water to people who lack it, while helping young girls attend school.
The House also donated 10% of the revenue generated by two employee private sales to Kering
Foundation partners.
Long-term support
for culture
and heritage
Financial support
provided:€3,700,000

Protecting
the environment
and ecosystems
Financial support
provided:€2,200,000• Balenciaga took part in a fundraising event for the Metropolitan Museum of Art's Costume Institute.
• In Venice, Italy, Pomellato continued to provide financial support to Venetian Heritage Onlus to help
restore St Mark's Basilica.
• Boucheron donated products for the World Monuments Fund (WMF), the leading independent organization
dedicated to safeguarding the world's most precious places in order to enrich people's lives and foster
mutual understanding between cultures and communities.
• Saint-Laurent made a five-year commitment to the Maison Gainsbourg museum.
• Gucci made donations to the Opera Di Santa Maria del Fiore to support the restoration of this cultural
landmark in the heart of Florence, and to help preserve Gyeongbokgung Palace in South Korea.
• Bottega Veneta was the main sponsor of the Biennale Danza for the third consecutive year in 2023, andprovided extensive support for the artistic and cultural scenes in Italy and the United States.
• Kering Eyewear contributed €1,000,000 to a fundraising initiative, which is still ongoing, to provide shelter,
food and financial aid to people affected by the wildfires in Maui, Hawaii.
• Gucci raised money to help people affected by the 2023 July storms that hit the Milan region, and helped
fund initiatives by Worldrise Onlus to protect marine biodiversity and by The Ocean Cleanup to remove
plastic from the oceans.
• Qeelin maintained its commitment to the World Wildlife Fund (WWF) in China, to monitor the day-to-day
lives of pandas, protect their environment and develop suitable habitats for them.
• Balenciaga continued the reforestation project it began in 2019 in the Gujarat province of India, inpartnership with NGO Up2green Reforestation.
• Brioni designed a capsule collection that was initially available only online, followed by a limited releasein the House's stores in mainland China, to support World Environment Day. 8% of the revenue from that
capsule collection went to the Mangrove Foundation to support its wetlands conservation andenvironmental education efforts.
• Since 2021, Alexander McQueen has been involved in a three-year partnership with the Royal Botanic
Gardens Kew and its national awareness-raising program called Grow Wild. In particular, the House issupporting community projects aiming to transform urban spaces and protect the United Kingdom's
biodiversity.

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Sustainability
Cross-reference table7 - CROSS-REFERENCE TABLE
Pursuant to Articles L.225-102-1 and R.225-105 of the French
Commercial Code/Green Taxonomy Regulation/Global
Compact/Global Reporting Initiative (GRI)
This chapter, entitled "Sustainability", constitutes Kering’s NonFinancial Information Statement (NFIS) for 2023, and as such setsout information on the Group’s principal non-financial risks andthe related policies, outcomes and performance indicators.
Kering is disclosing the information required byarticle L.225-102-1 and by article R.225-105 of the French
Commercial Code (Code de commerce), where relevant taking
into account the principal non-financial risks identified, as well as
information required by Regulation (EU) 2020/852 of June 18,
2020 (the "Green Taxonomy" Regulation). In accordance witharticle R.225-105, Kering also presents additional information,
where that information offers further insight into Group
operations.

Furthermore, Kering has made a series of publications available
in the Sustainability/Measuring our impact/Reporting andindicators section of its website to increase transparency inrelation to sustainability:• a glossary of the main documents relating to the Group’s
Sustainability approach, providing details of each key
document’s contents;• an ESG data book, containing all indicators published by theGroup, information about Kering’s performance in ESG
ratings and indices, and cross-reference tables with the majorinternational standards (Sustainability Accounting Standards
Board (SASB) – Apparel, Accessories & Footwear; UN
Sustainable Development Goals (SDGs); UN Guiding
Principles on Business and Human Rights (UNGPs);• Various themed factsheets and methodological notes onenvironmental and social reporting.
Sections of the Universal
GRI
Registration Document
102-1 to 102-8, Chapter 4, section 1.2
102-10Chapter 1

The Group’s vision and business model
Information on the value chain
Materiality and main priorities, principal non-financial risks linked to NFIS
categories

102-9
102-11, 102 15,102 46 & 102
47, 103-1 &
103-2

Chapter 4, sections 1.2; 4; 5, 6
Chapter 4, section 1.3
See also chapter 5, "Risks
and internal control"

Sustainability strategy
Governance and organization of sustainability within the Group
Methodology for reporting non-financial information, Assurance report103-1 & 103-2
102-18102-45 to 56

Chapter 4, section 1.4
Chapter 4, section 1.5

Taxonomy:
Proportion of eligible turnover, capital expenditure and operating expenditure
resulting from products and/or services associated with economic activities
defined as sustainable in Annexes I & II of the Climate Delegated Act

Non-financial information

GRI

Chapter 4, sections 1; 3.1;
5.1.2; 7; 8 and 9
Chapter 4, section 5.6

Globalcompact

Sections of the Universal
Registration Document

SOCIAL AND SOCIETAL CONSEQUENCES, HUMAN RIGHTS, COMBATING CORRUPTION AND TAXEVASION
Employment:
Total number of employees and breakdown of employees
by gender, age and region
Hires and redundancies
Remuneration and changes in remuneration
Work organization:
Organization of working time
Absenteeism
Health and safety:
Occupational health and safety
Work-related accidents, in particular frequency and severity,
and work-related illnesses— 272

KERING - 2023 Universal Registration Document#3 to 6102-8

Chapter 4, section 3.1

401-1

Chapter 4, section 3.1
Chapter 4, section 3.3#3 to 6
Chapter 4, section 3.2.4

403-10Chapter 4, section 3.2.4#1 to 6403-1 to 403-8
403-9

Chapter 4, section 3.2.4
Chapter 4, section 3.2.4

Sustainability
Cross-reference table

Globalcompact#3 to 6

Sections of the Universal
Registration Document

Non-financial information
Labor relations:

GRI

Organization of social dialogue, procedures for informing,
consulting and negotiating with employees

402-1

Chapter 4, section 3.4

Collective bargaining agreements in place within the Group andtheir impacts on economic performance and working conditionsof employees, including in terms of occupational health andsafety102-41

Chapter 4, section 3.4

Training:
Training policies, especially in terms of environmental protection#3 to 6404-2

Total number of training hours
Fair treatment:

404-1

Measures taken to promote gender equality
Measures taken to promote the employment and integration ofpeople with disabilities

405-1
405-1

Anti-discrimination policy
Societal commitments to sustainability:

405-1

Chapter 4, sections 3.2.3; 4.1;
5Chapter 4, section 3.2.3#1 to 6
Chapter 4, sections 2; 3.2; 6.3
Chapter 4, section 3.2.2
Chapter 4, sections 2; 3.2; 6.3#1 to 6

Impact of the Group’s operations with respect to employment and 203-1, 203-2
local development

Chapter 4, sections 3.2; 4.1;
6.2

Impact of the Group’s operations on neighboring or local
populations

Chapter 4, sections 6.1; 6.2

203-1, 203-2

Relationships and dialogue with Group stakeholders

Chapter 4, sections 1.2; 6.1;
6.2

Partnership and sponsorship initiatives
Supporting armed forces reservists
Combating food insecurity
Respecting responsible, fair and sustainable nutrition
Subcontractors and suppliers:
Incorporating social and environmental issues into the purchasing 413-1 to 414-2
policyChapter 4, sections 2.6; 6.3
Not concerned
Not concerned
Not concerned#1 to 10Chapter 4, sections 4; 5
Chapter 5, section 3 (Dutyof Care Plan)

Steps taken to raise awareness among suppliers andsubcontractors with respect to corporate social responsibility

413-1 to 414-2

Chapter 4, section 4
Chapter 5, section 3 (Dutyof Care Plan)

Fair practices: measures taken to promote consumer healthand safety

416-1 & 2

Chapter 4, section 6.1.3

Information on combating corruption: anti-corruption
measures102-16 205-1
to 205-3

Information on steps taken to protect human rights

406-1 to 412-3 #1 to 6

#10

Promotion of and compliance with the provisions of theInternational Labour Organization conventions relating to:

Chapter 4, section 2
Chapter 4, sections 2; 3;
4.1; 6.3
Chapter 4, sections 2; 3; 4Compliance with freedom of association and the right tocollective bargaining#3

Chapter 4, sections 3.4; 4Elimination of discrimination in respect of employment andoccupation#4

Chapter 4, sections 2; 3.2; 4Elimination of forced and compulsory labor
Effective abolition of child labor
Other measures taken to protect human rights
Respect for animal welfare#6#5#1 to 6

Chapter 4, sections 2; 4
Chapter 4, sections 2; 4
Chapter 4, sections 2; 3; 4
Chapter 4 section 5.4.3

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Sustainability
Cross-reference tableNon-financial information

GRI

Globalcompact

Sections of the Universal
Registration Document#7 to 9Chapter 4, section 5
Chapter 4, sections 1; 4; 5

ENVIRONMENTAL CONSEQUENCES
General environmental policy:
Steps taken to address environmental issues and any
environmental assessment or certification procedures
Resources allocated to the prevention of environmental risks
and pollution

Chapter 4, section 5

Amount of provisions and guarantees for environmental risk
(provided that this information is not likely to cause serious
damage to the Group in an ongoing dispute)Not consolidated at Grouplevel

Pollution:
Measures taken to prevent, reduce and rectify emissions into air,water and soil that have a significant impact on the environment#7 to 9303-2, 303-4

Chapter 4, section 5

Steps taken to address noise, light and any other form of pollution
relating to a specific activity

Chapter 4, section 5

Circular economy:
Waste prevention and management:

301-3

Measures taken to prevent, recycle and reuse waste, and othermeans of waste recovery and elimination

306-2

Chapter 4, section 5.5.4

Steps taken to prevent food insecurity and waste; Respect for
responsible, fair and sustainable foodSustainable use of resources:
Water consumption and supply of water in accordance withlocal regulations

Not concerned

303-1, 303-3,
303-5

Chapter 4, section 5.3.3

Raw materials consumption and measures taken to promote
more efficient use

301-1, 301-2

Chapter 4, section 5.4

Energy consumption and measures taken to improve energy
efficiency and use of renewable energy

302-1 to 5

Chapter 4, sections 5.2.4

Land use
Climate change:
Key issues regarding greenhouse gas emissions arising from theGroup’s activities and from use of the goods and services it
produces

Chapter 4, sections 5.3; 5.4
201-2, 305-1
to 305-5#7 to 9305-1 to 305-5

Chapter 4, section 5.2.4

Measures taken to adapt to the consequences of climate change
Medium-and long-term targets set voluntarily to reducegreenhouse gas emissions and the measures put in place toachieve thisProtection of biodiversity: measures taken to protect
and restore biodiversity— 274

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Chapter 4, section 5.2
Chapter 4, sections 1.4; 5.2

304-1 to 4

#7 to 9Chapter 4, section 5.3

Sustainability
Cross-reference table

Information required under the SFDR (Sustainable Finance Disclosure Regulation)
Kering presents below the list of information expected by financial market participants subject to the SFDR for the consideration of theprincipal adverse indicators (PAI) relating to sustainability:
Indicators identified in connection withthe principal adverse indicators

Kering performance indicators (2023)

Sections

Greenhouse gas emissions

Scope 1: 14,918 tCO2e
Scope 2: 7,923 tCO2e
Scope 3: 2,573,898 tCO2e

Chapter 4, section 5.2

Offsetting strategy
Greenhouse gas intensity of investee
companies

Total Scopes 1,2 and 3: 2,596,739 tCO2e132.7 tCO2e/€m of revenue (Scopes 1, 2
and 3)

Chapter 4, section 5.2
Chapter 4, section 5.2

Exposure to companies active in the fossil
fuels sector

Not applicable to Kering

Share of non-renewable energy
consumption and production

Consumption:20%
Production: 0%

Chapter 4, section 5.2

Energy consumption intensity per highimpact climate sector

Not applicable to Kering

Chapter 4, section 5.2

Biodiversity

Activities negatively affecting biodiversitysensitive regions

The EP&L tool identifies pressures on
Chapter 4, sections 5.1
nature through six impacts in each country and 5.3(GHG emissions, air pollution, land use,water consumption, water pollution andwaste production) connected with Kering’s
operations and its value chain. The 2023
results show that the main impacts (94%)
arise outside of Kering’s operations,particularly at the level of raw materials
production and processing (75%).

Water

Emissions to water

COD after treatment: 42 metric tons (Group Chapter 4, section 5.3.3
tanneries)

Waste
SOCIAL

Hazardous waste ratio

Hazardous waste: 604 t

Social, humanrights andanticorruption
indicators

Violations of UN Global Compact principles No violation
and Organisation for Economic
Cooperation and Development (OECD)
Guidelines for Multinational Enterprises

Chapter 4, sections 2
and 4

Lack of processes and compliancemechanisms to monitor compliance withUN Global Compact principles and OECD
Guidelines for Multinational Enterprises• Group Code of Ethics• Group compliance program and related
procedures• Duty of Care Plan
• Whistleblowing system

Chapter 4, sections 2; 4
Chapter 5, section 3
Duty of care plan

Unadjusted gender pay gap

14.2% in favor of men. In average and notconsidering role, seniority and location,
women’s average salary is 14.2% lower
than men’s average salary.

Chapter 4, section 3

Adjusted gender pay gap

1.6% in favor of men. This pay gap show the Chapter 4, section 3
remaining difference in pay between men
and women after accounting for legitimate
factors that drive pay in the Group.

Board gender diversity

Proportion of women: 50% as ofDecember 31, 2023. Percentage not taking
into account Directors representing
employees, in accordance withrecommendations of the AFEP-MEDEF
Code.

ENVIRONMENTGreenhousegases
emissions(GHGs)

Chapter 4, section 5.5.4

Chapter 3, section 2.3.1

Exposure to controversial weapons (antiNot applicable to Kering
personnel mines, cluster munitions,chemical weapons and biological weapons)

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Sustainability
Report of one of the Statutory Auditors, appointed as independent third party, on the verification of the consolidated non-financial
performance statement and on the verification of certain environmental indicators

8 - REPORT OF ONE OF THE STATUTORY AUDITORS,APPOINTED AS INDEPENDENT THIRD PARTY, ON THE
VERIFICATION OF THE CONSOLIDATED NON-FINANCIALPERFORMANCE STATEMENT AND ON THE VERIFICATIONOF CERTAIN ENVIRONMENTAL INDICATORS
Year ended December 31, 2023
This is a free English translation of the report by one of the Statutory Auditors issued in French and is provided solely for the convenience ofEnglish-speaking readers. This report should be read in conjunction with, and construed in accordance with, French law and professional
standards applicable in France.
To the Shareholders’ Meeting,In our capacity as Statutory Auditor of Kering (hereinafter the "Company"), appointed as independent third party ("third party") andaccredited by the French Accreditation Committee COFRAC under number 3-1886 (Cofrac Inspection Accreditation, scope available atwww.cofrac.fr), we have conducted procedures to express a limited assurance conclusion on the historical information (observed or
extrapolated) in the consolidated non-financial performance statement, prepared in accordance with the Company’s procedures(hereinafter the "Guidelines"), for the year ended December 31, 2023 (hereinafter the "Information" and the "Statement", respectively),presented in the Group management report pursuant to the legal and regulatory provisions of Articles L.225-102-1, R.225-105 andR.225-105 and R.225-105-1of the French Commercial Code (Code de commerce).
It is also our responsibility to express, at the request of the Company and outside the scope of accreditation, a conclusion of reasonableassurance regarding whether certain information selected by the Company and presented in the Declaration has been prepared, in allmaterial respects, in accordance with the Guidelines.

Conclusion of limited assurance on the consolidated non-financial
performance statement in accordance with article L.225-102-1of the French Commercial Code (Code de commerce)
Based on the procedures we have performed as described in the section "Nature and scope of procedures" and the evidence we haveobtained, nothing has come to our attention that causes us to believe that the non-financial statement is not prepared in accordancewith the applicable regulatory provisions and that the Information, taken as a whole, is not fairly presented in accordance with the
Guidelines, in all material respects.

Conclusion of reasonable assurance on selected information
included in the Statement
In our opinion, the information selected by the Company has been prepared fairly, in all material aspects, in accordance with the
Guidelines:• energy consumption and associated CO2e emissions for 2023;• renewable electricity proportion at Group level for 2023;• GHG emissions associated with upstream transportation for 2023;• tons of CO2e offset for 2023.

Preparation of the statement
The absence of a generally accepted and commonly used reference framework or established practices on which to base theassessment and measurement of the Information enables the use of different but acceptable measurement techniques that may impact
comparability between entities and over time.
Accordingly, the Information must be read and interpreted with reference to the Guidelines, available on the Company’s website.

Limits inherent in the preparation of the Information
As stated in the methodological notes of the Statement, the Information may be subject to uncertainties inherent to the state ofscientific or economic knowledge and the quality of external data used. Some information are sensitive to the methodological choices,
assumptions, and/or estimates made for its preparation, as presented in the methodological notes referenced in section 1.4 ofchapter 4 of the Statement.

— 276

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Sustainability
Report of one of the Statutory Auditors, appointed as independent third party, on the verification of the consolidated nonfinancial performance statement and on the verification of certain environmental indicators

Responsibility of the Company
Management of Kering is responsible for:• selecting or determining the appropriate criteria for the preparation of the Information;• preparing a Statement pursuant to legal and regulatory provisions, including a presentation of the business model, a descriptionof the main non-financial risks, a presentation of the policies implemented with respect to these risks as well as the outcomes ofthese policies, including key performance indicators and the information set-out in article 8 of Regulation (EU) 2020/852 (Green
taxonomy);• designing, implementing and maintaining internal control over information relevant to the preparation of Information that is freefrom material misstatement, whether due to fraud or error.
The Statement has been prepared by the management.

Responsibility of the Statutory Auditor appointed as independent third party
Based on our work, our responsibility is to express a limited assurance conclusion on:• the compliance of the Statement with the requirements of article R.225-105 of the French Commercial Code;• the fairness of the information provided pursuant to part 3 of sections I and II of article R.225-105 of the French Commercial Code,i.e. the outcomes of policies, including key performance indicators, and measures relating to the main risks, hereinafter the"Information".
As we are engaged to form an independent conclusion on the information prepared by management, we are not permitted to be
involved in the preparation of the Information, as doing so may compromise our independence.
It is not our responsibility to provide a conclusion on:• the Company’s compliance with other applicable legal and regulatory provisions (particularly with regard to the information setout in article 8 of Regulation (EU) 2020/852 (Green taxonomy), the duty of vigilance and the fight against corruption and tax
evasion);• the fairness of information set-out in article 8 of Regulation (EU) 2020/852 (Green taxonomy);• the compliance of products and services with the applicable regulations.

Applicable regulatory provisions and professional guidance
We performed the work described below in accordance with Articles A. 225-1 et seq of the French Commercial Code, with ourverification program consisting of our own procedures (Verification programme for the statement of non-financial performance,of 7 July 2023) and with the professional guidance issued by the French Institute of Statutory Auditors (Compagnie Nationale desCommissaires aux Comptes) applicable to such engagement, in particular the professional guidance issued by the Compagnie Nationale
des Commissaires aux Comptes, Intervention du Commissaire aux Comptes – Intervention de l’OTI – déclaration de performance extrafinancière, and acting as the verification programme and with the international standard ISAE 3000 (revised)(1).

Independence and quality control
Our independence is defined by article L. 821-28 of the French Commercial Code and French Code of Ethics for Statutory Auditors (Codede déontologie). In addition, we have implemented a system of quality control including documented policies and procedures aimed atensuring compliance with applicable legal and regulatory requirements, ethical requirements and the professional guidance issued by
the French Institute of Statutory Auditors (Compagnie Nationale des Commissaires aux Comptes) relating to this engagement.

Means and resources
Our work engaged the skills of six people between September 2023 and February 2024 and took a total of about eight weeks.
To assist us in conducting our work, we referred to our corporate social responsibility and sustainable development experts. We
conducted around thirty interviews with people responsible for preparing the Statement, including representatives from the humanresources, sustainable finance, and sustainable development departments of Kering and its Houses.

Nature and scope of procedures
We are required to plan and perform our work to address the areas where we have identified that a material misstatement of theInformation is likely to arise.
We consider that the procedures conducted in exercising our professional judgment enable us to express a limited assurance
conclusion:• We obtained an understanding of all the consolidated entities’ activities and the description of the main risks associated.
• We assessed the suitability of the Guidelines with respect to their relevance, completeness, reliability, neutrality and clarity, taking
into account, where appropriate, best practices within the sector.

(1)

ISAE 3000 (revised) - Assurance engagements other than audits or reviews of historical financial information.

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Sustainability
Report of one of the Statutory Auditors, appointed as independent third party, on the verification of the consolidated non-financial
performance statement and on the verification of certain environmental indicators• We have verified that the Declaration covers each category of information required under III of article L. 225-102-1 of the French
Code de Commerce relating to social and environmental aspects, respect for human rights and the fight against corruption andtax evasion, and includes, where applicable, an explanation of the reasons for the absence of the information required underparagraph 2 of III of article L.225-102-1 of the French Code de Commerce.
• We have verified that the Declaration includes the information specified in II of article R.225-105 where relevant to the principal
risks.
• We verified that the Statement presents the business model and a description of the main risks associated with all the
consolidated entities, including where relevant and proportionate, the risks associated with their business relationships, theirproducts or services, as well as their policies, measures and the outcomes thereof, including key performance indicators
associated to the main risks.
• We referred to documentary sources and conducted interviews to:– assess the process used to identify and confirm the principal risks as well as the consistency of the outcomes, including the key
performance indicators used, with respect to the principal risks and the policies presented; and– corroborate the qualitative information (measures and outcomes) that we considered to be the most important. For certain risks
or information, our work was carried out on the consolidating entity while for other risks, our work was carried out on the
consolidating entity and on a selection of entities(2).
• We verified that the Statement covers the consolidated scope, i.e. all companies within the consolidation scope in accordancewith article L. 233-16, with the limits specified in the Statement and its methodological note.
• We obtained an understanding of internal control and risk management procedures implemented by the Company and assessed
the data collection process aimed at ensuring the completeness and fairness of the Information.
• For the key performance indicators and other quantitative outcomes(3) that we considered to be the most important, we
implemented:– analytical procedures that consisted in verifying the correct consolidation of collected data as well as the consistency of changes
there to;– test of details, on a sample basis and using other selection methods, that consisted in verifying the proper application ofdefinitions and procedures and reconciling data with supporting documents. This work was carried out on a selection ofcontributing entities(4) and covers between 19% and 73% of the consolidated data relating to the key performance indicators andoutcomes selected for these tests.
• We assessed the overall consistency of the Statement in relation to our knowledge of the all the consolidated entities.
The procedures conducted in a limited assurance review are substantially less in extent than for a reasonable assurance conclusion inaccordance with the professional guidelines of the French National Institute of Statutory Auditors (Compagnie Nationale desCommissaires aux Comptes); a higher level of assurance would have required us to carry out more extensive procedures.
Pursuant to the request of the Company, we performed additional work with the aim of providing a reasonable assurance conclusionon the following Information:• energy consumption and associated CO2e emissions for 2023;• Group's share of renewable electricity for 2023;• GHG emissions associated with upstream transport for 2023;• tonnes of CO2e offset for 2023.
The work carried out was of the same nature as that described in the section on limited assurance above, but more in-depth,
particularly regarding:• analytical procedures that consisted in verifying the correct consolidation of collected data as well as the consistency of changes
thereto;• substantive tests, on a sample basis that consisted in verifying the proper application of definitions and procedures andreconciling data with supporting documents.
The selected sample represents between 71% and 73% of the information concerned.
Paris-La Défense, February 29, 2024
One of the Statutory Auditors,
Deloitte & Associés
Bénédicte Margerin
Associée, Audit

(2)
(3)

(4)

— 278

Julien Rivals
Associé, Développement Durable

Qualitative information selected: Highlights of 2023, existence of Kering Standards and monitoring mechanisms for "alignment" and"traceability", notably in relation to the footnotes of the table presented in section 5.4.2 of the URD.
Indicators and quantitative results selected:- Social and health-safety indicators: Workforce and breakdown, Permanent/fixed-term contract hiring, Permanent staff departures,
Training hours (including safety training), Employees who have received at least one training (excluding safety training), Frequency andseverity rates of occupational accidents, Overall absenteeism rate.
- Environmental indicators: Energy consumption and associated CO2e emissions for 2023, Group's proportion of renewable electricity, GHG
emissions associated with upstream transport, tonnes of CO2e offset, industrial water use, % of water discharged, and COD.
Brands or entities selected for:- Social indicators: Gucci, Kering Eyewear.
- Environmental indicators: Gucci, Balenciaga, and Kering Corporate (for 2023 energy consumption and associated CO2e emissions), KERING
Operations Caravel Tannery (for industrial water use and COD), and Trecate/LGI (for upstream transportation-related greenhouse gas
emissions).

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Sustainability
Limited assurance report of one of the Statutory Auditors on a selection of information related to the environmental profit
and loss account ("EP&L")

9 - LIMITED ASSURANCE REPORT OF ONE
OF THE STATUTORY AUDITORS ON A SELECTION
OF INFORMATION RELATED TO THE ENVIRONMENTAL
PROFIT AND LOSS ACCOUNT ("EP&L")
Year ended December 31, 2023
This is a free English translation of the report by one of the Statutory Auditors issued in French and is provided solely for the convenience ofEnglish-speaking readers. This report should be read in conjunction with, and construed in accordance with, French law and professional
standards applicable in France.
To the Executive Management,
Pursuant to your request and in our capacity as Statutory Auditor of Kering (hereinafter the "Company"), we performed a review withthe aim of providing limited assurance on information concerning the Environmental Profit & Loss Account ("EP&L") selected by theCompany (hereinafter "the Information") for financial year ended December 31, 2023.

Conclusion
Based on the procedures we have performed as described under the paragraph "Nature and scope of procedures", and the evidence wehave obtained, nothing has come to our attention that causes us to believe that the Information is not prepared, in all material respects,
in accordance with the criteria and procedures used by the Company (hereinafter "the Guidelines").

Preparation of the Information
The absence of a generally accepted and commonly used reference framework or established practices on which to base theassessment and measurement of the Information enables the use of different but acceptable measurement techniques that may impact
comparability between entities and over time.
Accordingly, the Information must be read and interpreted with reference to the Guidelines and criteria, summarised in theenvironmental methodological note referred in chapter 4, section 1.4 of the Universal Registration Document and available on the
Company’s website or on request from its headquarter Sustainable Finance Department.

Limits inherent in the preparation of the Information
The Information may be subject to uncertainty inherent to the state of scientific and economic knowledge and the quality of external
data used, including certain elements such as traceability and certifications, environmental impact factors ("multipliers") andmonetisation factors used. Some data are sensitive to the choice of methodology and the assumptions and/or estimates used for its
preparation and presented in the methodological note referred in chapter 5 section 1.4 of the Universal Registration Document.

Responsibility of the Company
The Company is responsible for:• selecting or establishing suitable criteria and procedures for preparing the Guidelines;• preparing the Information in accordance with the Guidelines;• designing, implementing and maintaining internal control over information relevant to the preparation of Information that is freefrom material misstatement, whether due to fraud or error.

Responsibility of the Statutory Auditor
The conclusion presented in this assurance report only covers the Information.
Based on our work, we are responsible for:• expressing limited assurance on the fact that nothing has come to our attention that causes us to believe that the Information is
not prepared, in all material respects, in accordance with the criteria and procedures used by the Company (hereinafter "theGuidelines"), whether due to fraud or error;• forming an independent conclusion, based on the evidence we have obtained; and• reporting our conclusion to the management of the Company.
As we are engaged to form an independent conclusion on the information prepared by management, we are not permitted to be
involved in the preparation of the Information, as doing so may compromise our independence.

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Sustainability
Limited assurance report of one of the Statutory Auditors on a selection of information related to the environmental profit and loss
account ("EP&L")

Applicable regulatory provisions and professional guidance
The work described below was performed in accordance with the professional guidance issued by the French Institute of Statutory
Auditors (Compagnie nationale des Commissaires aux comptes) relating to this engagement and with the international standard ISAE
3000 (revised) « Assurance Engagements other than Audits and Reviews of Historical Financial Information » issued by the IAASB(International Auditing and Assurance Standards Board).

Means and resources
Our work engaged the skills of four people between December 2023 and February 2024 and took a total of about four weeks. To assist
us in conducting our work, we referred to our corporate social responsibility and sustainable development experts. We conductedaround ten interviews with people responsible for preparing the Information, including representatives from the sustainable financedepartment.
This work involved the use of information and communication technologies allowing the work and interviews to be carried out
remotely, without hindering the good execution of the verification process.

Independence and quality control
Our independence is defined by article L. 821-28 of the French Commercial Code and French Code of Ethics for Statutory Auditors (Codede déontologie). In addition, we have implemented a system of quality control including documented policies and procedures aimed atensuring compliance with applicable legal and regulatory requirements, ethical requirements and the professional guidance issued by
the French Institute of Statutory Auditors (Compagnie Nationale des Commissaires aux Comptes) relating to this engagement.

Nature and scope of procedures
We planned and performed our work in order to express a limited assurance regarding the following Information:• total amount for environmental impact estimated in € for 2023;• intensity (€EP&L/1,000€ of revenue) for 2023;• mapping of 2023 impacts per environmental impact (6 impacts for Tiers 0 to 4 and for the use and end of life phases);• distribution of impacts per raw material (Tiers 3 & 4) for 2023.
The nature, timing and extent of procedures selected depend on professional judgment, including the assessment of risks of material
misstatement, whether due to fraud or error, in the Information.
We:• assessed the suitability of the Guidelines with respect to their relevance, completeness, reliability, neutrality andunderstandability;• verified the set-up of a process to collect, compile, process, and check the completeness and consistency of the Information;• interviewed the relevant staff from the Company’s departments at its headquarters and for a selection of contributing entities inorder to analyze the deployment and application of the Guidelines;• performed analytical procedures on the Information and verified, the calculations as well as the consolidation of the data and theconsistency of its evolution;• carried out tests of details using sampling techniques, for a representative selection of entities that we selected to verify thecorrect application of the definitions and procedures and reconcile data with supporting evidence.
We consider that the evidence obtained are sufficient and appropriate to enable to express our conclusion. The procedures conductedin a limited assurance review are substantially less in extent than those required to issue a reasonable assurance opinion in accordancewith the professional guidelines of the French National Institute of Statutory Auditors (Compagnie nationale des Commissaires aux
Comptes); a higher level of assurance would have required us to carry out more extensive procedures.

Applicable law
In our capacity of Statutory Auditor of Kering, our responsibility towards Kering and its shareholders is defined by French law and we do
not accept any extension of our responsibility beyond that provided for by French law. We are not liable and accept no liability to any
third party. We cannot be held responsible for any damage, loss, cost or expense resulting from fraudulent behavior or fraud committed
by directors, officers, employees or stakeholders of Kering or its subsidiaries.
This report is governed by French law. The French courts have exclusive competence to receive any dispute, claim or dispute that may
arise from our engagement letter or this report, or any question relating thereto.
Paris-La Défense, February 29, 2024
One of the Statutory Auditors,
Deloitte & Associés
Bénédicte Margerin
Associée, Audit— 280

KERING - 2023 Universal Registration Document

Julien Rivals
Associé, Développement Durable

CHAPTER 5
Risk management and internal control
11.1
1.2
1.3
1.4
1.5
1.6
1.7

Internal control and risk
management procedures
implemented by Kering
Scope and principles oforganization
General principles of risk
management
Components of risk management
Link between risk management
and internal control
General principles of internal
controlComponents of internal control
Description of internal control
procedures relating
to the preparation of financial
and accounting information

282
282
282
283
284
285
286

290

22.1
2.2
2.3
2.4
2.5
2.6
2.7

33.1
3.2
3.3

3.4
3.5
3.6

Presentation of risks
Ranking of the Group’s main risk
factors
Creativity risks
Growth risks
Expertise-related risks
People-related risks
Sustainability-related risks
Insurance and risk protection

291

2023 Duty of Care Plan
Introduction
Risk map

314

291
293
294
302
309
311
313
314
315

Regular assessments of theactivities of subsidiaries,
suppliers and subcontractors
Control measures
Whistleblowing system

316
318
325

Monitoring system designed toassess the effectivenessof the controls in place

325

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Risk management and internal control
Internal control and risk management procedures implemented by Kering

1 - INTERNAL CONTROL AND RISK MANAGEMENTPROCEDURES IMPLEMENTED BY KERING
This section of the Report by the Chairman of the Board of
Directors on the Group’s risk management and internal control
system is part of the reference framework of the French financial
markets authority (Autorité des marchés financiers – AMF)
published in July 2010 and draws on the ESMA guidance on risk
factors provided under European Regulation (EU) no. 2017/1129
of June 14, 2017 (the "Prospectus Regulation") supplemented byCommission Delegated Regulation (EU) no. 2019/980 of March 14,
2019. It also takes into account of the requirements set out inarticle 173 of French law no 2015-992 of August 17, 2015 on energy
transition for sustainable development.
The AMF’s framework is based not only on the aforementioned
French and EU legislation and regulations, but also on internal
control and risk management best practices and international
standards, in particular the ISO 31000 and COSO (Committee ofSponsoring Organizations) frameworks.

1.1 Scope and principles of organization
Kering is the parent company of the Kering Group, whose entities
operate in the Luxury industry. The following report aims todescribe the internal control process in place at the Group andespecially for the preparation and processing of financial andaccounting information. The scope of the Group covered by thereport includes all fully consolidated subsidiaries, i.e., thecompanies over which the Group directly or indirectly exercises
exclusive control.
As a holding company, Kering’s own operations consist in: (i)defining and implementing its strategy, (ii) organizing andmanaging its holdings, (iii) stimulating the development of its
activities and coordinating their financing, (iv) providing support

and communication functions, and (v)implementing the insurance coverage policy.

defining

andThe structure of the internal control process is aligned with thegeneral organization of the Group. It is both:• decentralized at the level of the activities: Executive
Management of the operating and legal entities is responsible
for managing and coordinating the internal control process;• unified around a common methodology and a single set ofstandards. The Kering holding company coordinates its
deployment across the Group, supported by teams at Kering
Asia-Pacific and Kering Americas.

1.2 General principles of risk management
According to the AMF definition, risks represent the possibility
that an event may occur and could have an impact on people,
assets, the environment, the Company’s objectives or its
reputation.
Risk management covers area that are much wider than justfinancial risks: for example, operational, labor-related,environmental and compliance risk.

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Risk management is a key management tool that helps to:• create and preserve the value, assets and reputation of theCompany;• strengthen the security of the Company’s decision-making
and other processes to support the achievement of its
objectives;• mitigate the risk of unexpected outcomes and operating
losses;• ensure that initiatives are consistent with the Company’svalues;• bring Company employees together to develop a shared viewof the main risks.

Risk management and internal control
Internal control and risk management procedures implemented by Kering

1.3 Components of risk management
The Group constantly strives to make its operations more secureand improve its methodology to identify and mitigate risks. In
2023, the Group pushed ahead with the changes to its risk
management methodology initiated in 2011 and maintained theresources used for its risk management process. The Group’s
process provides for an organizational framework, a three-steprisk management process and continuous monitoring.

1.3.1 Organizational framework
This organizational framework includes:• an organization that sets out the roles and responsibilities ofthe various participants and lays down procedures andstandards for the process;• a risk management policy that sets out the objectives of theprocess in line with the Company’s culture, the common
terminology applied, and the process to identify, analyze anddeal with risks;• an IT system that makes it possible to register data aboutrisks;• planned reporting of risk information to stakeholders
identified within the Group, as well as an annual presentation
to the Board of Directors.

Risk Committee
Within the scope of the Group’s risk management policy and inaccordance with Kering’s corporate governance, Kering’s
Executive Management created a "Kering Group Risk Committee"
in 2011. The Deputy CEO in charge of Operations and Finance, theChief Financial Officer, the General Counsel, the Chief Audit
Executive, the Head of the Security Department, the Chief
Information Security Officer and the Risk Manager are themembers of this Committee. As the Group’s operations andactivities expand, become more complex and more international,
the Risk Committee helps identify and rank the main risks that
could have an impact on the Group’s business operations.
Internal rules determine how the Committee is managed, andhow it operates.
The Risk Committee reviews (i) the validation and monitoringprocess for the Group’s risk management policy; (ii) themonitoring of the latest developments and relevance of analysis
relating to operational, labor-related, environmental, financial
and compliance risks; (iii) briefings on the analysis of general andspecific risks; and (iv) the validation and monitoring of actionplans rolled out to mitigate the risks identified more effectively.
The Risk Committee’s work is brought to the attention of the
Audit Committee, which is informed of the Committee’s internal
rules and has access to the minutes of its meetings.

Risk Manager
The Risk Manager position was created within the Company tocoordinate the robust risk management process, ensure that the
Executive Management teams of the Group’s activities analyze
the main risks within their scope of business, and provide themembers of the Risk Committee, prior to each meeting, with theinformation and documents necessary for their work and their
discussions.

Risk management policy
After reviewing the COSO internal control frameworks inparticular, the Group implemented a risk management approachthat was sent to the Executive Management teams of the Groupand the Houses. This document describes the methods used by
the Group for its risk analysis.

1.3.2 A three-step risk management
process involving:• Risk identification by the Internal Audit Department: inthis step, the main risks are identified and addressed
centrally. A risk is characterized by an event, one or moreinternal or external sources, and one or more consequences.
Within the Group, risks are identified as part of an ongoingprocess that takes the Houses’ perspective into account, as
well as the Group’s broader vision, including insights from theSustainability Department helping to identify sustainability
risks. During this step, interviews with the main stakeholders(the recommended and most widely used technique) areconducted to identify the risks that could impact the Group’s
ability to achieve its objectives. Kering relies on the prioryear’s risk registers, as well as various sources that are, both
external (e.g., surveys) and internal (e.g., reporting of
information).
• Risk analysis: this step involves evaluating the main risks
identified on the basis of three criteria: their impact, theirprobability of occurrence and their level of control. It is also acontinuous effort, and assessments are conducted once a
year during work sessions with key managers from theHouses, Kering’s divisions in the Americas, Asia-Pacific, and
the Group. The risk management policy describes in detailthe criteria and procedures for these assessments.
• Risk ranking: during this last step, risks are ranked bypriority and the most appropriate action plan(s) for theCompany is (are) identified.

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Internal control and risk management procedures implemented by Kering

Since 2011, a consolidated risk map has been submitted to the Risk Committee for comment before being presented to the Audit
Committee and the Board of Directors. In addition, risk information is also shared with each of the Houses during feedback meetings.
2021

2011
First consolidated
risk map waspresented to the
Risk Committee

2014
The Group expanded
its approach toidentifying risks bymeeting with the holding
company’s senior
managers.

2013
The Group introduced a
dedicated IT system tohandle risk identification
and analysis efforts.
Adoption of this system
ensures consistentmethodology is appliedin all these activities andexpanded thescope of managers
involved in these reviews.

2019
The Group introduced
a top-down approach,complementing its
bottom-up approach
to risk identification.
Feedback meetings
were arranged withparticipants in the risk
identification andevaluation exercises.

2015
The Group expanded
its approach toidentifying risks bymeeting with the senior
managers of Kering’s
divisions in theAmericas, Asia-Pacific,
and of the Group.

1.3.3 Oversight of the risk management
process
The risk management process is monitored and reviewed on aregular basis to continuously improve the process. The objective
is to identify and analyze the main risks and to learn the lessons
from the risks that have materialized.

The number of risks was
reduced and a direct link
made to the Group’sbusiness fundamentals.
The map of the Group’s risks
was adjusted to include theupdated risk assessment
undertaken as part of theGroup’s Duty of Care andinitial assessments ofclimate risks undertaken inline with TCFD
recommendations.

2020

2023

The Group madeadjustments to
its approach as aresult of thepandemic (e.g.,
online meetings).

The risk assessment
undertaken as part ofKering’s Duty of Care was
updated to include all theGroup’s Houses.
The assessments of theclimate risks identified on
the basis of the TCFD
recommendations werereviewed and updated. All
these items wereincorporated in theGroup’s risk map.

The Risk Committee meets in principle at least twice a year toreview the risk maps drawn up by the Group Internal Audit
Department, and to monitor the progress of the specific actionplans.
The Risk Committee met three times in 2023. The Audit
Committee and Board of Directors were apprised of its work attheir meetings held in June and October 2023, respectively.

1.4 Link between risk management and internal control
The risk management and internal control processes arecomplementary, which together help control the Group’s
activities:• the risk management process is designed to identify andanalyze the main risks. Risks are managed and addressed
through action plans, which may include project
management and may also involve implementing controlsthat can be adapted to the organization. The controls to be
implemented are part of the internal control process and may
be reviewed based on the risk maps;— 284

KERING - 2023 Universal Registration Document• the internal control process uses the risk management
process to identify the main risks to be mitigated;• the audit plan uses the risk map to test the assessment of thelevel of control of the identified risks.
The combined interaction and balance between the twoprocesses are influenced by the control environment, which
provides a common foundation particularly the risk and control
culture of the Company and the ethical values of the Group.

Risk management and internal control
Internal control and risk management procedures implemented by Kering

Operationally, the internal control process is as follows:
The internal control culture is set by
Top Management/Executive
Management ("tone at the top")

Every year, internal control selfassessment campaigns are organizedtargeting Group entities and storesGroup entities and stores undergointernal audits

Roll-out of the internal control process

Self-assessment of the internal control
process

Independent internal control
assessment during assignments• The Group lays down the internal
control policies and procedures for theHouses to implement in a suitablemanner. The Houses remain in chargeof drawing up their own internal control
policies and procedures.
• The Houses’ top management has
ultimate responsibility for the effective
conduct of their activities.

• Everyone has a role to play in internal
control. Audit engagements do notprovide assurance of the effectivenessof internal control right across theentire scope of the Group’s entities
every year.
Accordingly, the Internal Audit and Risk
Department has made use of selfassessment questionnaires since 2012.
These activities are coordinated by theGroup’s Internal Audit and Risk
Management Department.
• Respondents carry out a selfassessment of their internal control
process and communicate the results
to the Audit Committee.
• The completion rate was 84% for Group
entities and 96.4% for stores in 2023.

• The internal audits conducted by
the Internal Audit and Risk
Department provide a level ofassurance of the internal control
process in place at Group entities
and stores.
• To this end, the Group’s auditors
independently assess the internal
control process in place at theentities.
• Assignments are laid down in anannual audit plan approved inadvance by the Audit Committee.
• In 2023, the Group’s Internal Audit
Department conducted 38 audit
assignments at the Group’s entities(five focused on IT operations) and
151 in stores.

The Group seeks to strengthen its business processes through a continuous improvement approach.
As well as analyzing feedback, it deﬁnes action plans based on internal control self-assessment
campaigns and on recommendations made in internal audit reports.

1.5 General principles of internal control
1.5.1 Definition of internal control

1.5.2 Limitations of internal control

The internal control process applicable within the Kering Grouprelies on a set of resources, policies, conduct, procedures andappropriate actions to ensure that the necessary measures aretaken in order to control:• activities, operational effectiveness and the efficient use ofresources;• operational, labor-related, environmental, financial orcompliance risks that could have a significant impact on the
Company’s assets or the achievement of its objectives.

The probability of meeting these objectives is subject to thelimitations inherent in any internal control process such as:• human errors or malfunctions occurring when decisions are
made or applied;• deliberate collusion among multiple individuals, enablingthem to elude the control system;• situations in which implementing or maintaining a control
would be more expensive than the risk that it is intended to
remedy.

Internal control is defined as a process conducted by Executive
Management, under the supervision of the Board of Directors,
and implemented by senior executives and all employees.
Regardless of its quality and its degree of application, it cannot
provide absolute assurance that the objectives falling within thefollowing categories will be met:
• compliance with laws and regulations in force;• application of guidelines and directions set by Executive
Management;• smooth operation of internal processes, particularly thosecontributing to the safeguarding of assets;• reliability of financial and accounting information.

Furthermore, in pursuing the objectives indicated above, it isunderstood that companies are faced with events anduncertainties beyond their control (unexpected changes in themarkets, competitive environment or geopolitical situation, or
error in forecasting or assessing the effects of such changes on
the organization, etc.).
Internal control cannot therefore provide absolute assurance
under all circumstances that the Company will achieve its
objectives.

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Internal control and risk management procedures implemented by Kering

1.6 Components of internal control
The quality of the internal control process is based on thefollowing components:• the control environment based on rules of conduct andintegrity supported by management and communicated toall employees;• an organization that clearly defines responsibilities and has
adequate resources and skills;• a system to identify, analyze and manage the main risks;• ongoing oversight of the internal control process and regularreview of the functioning of the system.

1.6.1 Internal control environment
The Group’s internal control process is based on a decentralizedorganization that clearly defines responsibilities through theGroup Charter. It includes principles and values governing the
conduct and ethics of all its employees, presented in the Code of
Ethics. It also includes an Internal Control Charter. Moreover, it
relies on human resources management that ensures thecompetency, ethical conduct and involvement of its employees.

The Group Charter
The Kering Group adopted a Charter several years ago, which was
updated in 2012 and provides the framework for thedecentralization of the organization and the responsibility ofsenior executives. The Charter defines the guiding principles
governing the relations between Kering and its activities. It also
defines, within each functional area: (i) the matters that fallwithin the delegated responsibility of the activities; (ii) those thatmust be communicated to Kering within appropriate timeframes; and (iii) those requiring Kering’s prior authorization.

Code of Ethics
The ethical principles of the Kering Group are set out in the Codeof Ethics, first circulated in 2005 and then updated in 2018. It is
now available to all Group employees in 14 languages. The Ethics
Committees are composed of representatives of the Group’s
Houses and Kering staff. This entire structure is managed by
Kering’s Chief Sustainability and Institutional Affairs Officer. Thechanges made to the Code and the organization of ethics within
the Group are examined in detail in section 2 "Ethics, thecornerstone of our business" of chapter 4 "Sustainability" of thisDocument.

The Internal Control Charter
The Kering Group first adopted an Internal Control Charter in2010 and then updated it in 2015. The Charter defines internal
control and sets out its objectives as presented in the AMF’s
reference framework. It specifies that the holding company acts
as the fulcrum point coordinating the various entities and sets
out the responsibilities of each of the activities and Houses in
implementing an internal control process that fits theiroperations.

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The Charter defines the role of each person involved in theinternal control process and the bodies responsible for oversightand assessment.
Furthermore, the Charter specifies the existing tools for assessing
internal control and risks, namely self-assessment of internal
control, mapping of major risks and sets out the basic principles
for creating new procedures.

The Audit Charter
Internal Audit’s operational procedures are laid down in the
Audit Charter. A new version of the Audit Charter was publishedin 2018. The Charter stipulates that:• at the end of each audit, the findings and recommendations
are presented to the managers of the area or areas
concerned;• any agreements or disagreements made known by theaudited parties concerning the proposed recommendations
are included in the final report, which specifies any action
plan, as well as responsibilities and the deadlines for
implementation;• the operational staff members concerned are responsible for
implementing recommendations;• the Internal Audit Department is in charge of verifying theirimplementation.

Human resources policy
The quality of Human resources and management cohesivenessare key success factors for the Group.
Kering makes sure that the various Houses apply humanresources policies aligned with their situation, challenges, andmeeting the highest local standards.
The Houses lead and engage in dialogue and employee
involvement at local level concerning labor policy, while theGroup manages dialogue within the Group’s employee
representative bodies namely the Group Works Council and theEuropean Works Council.
The Group also supports the Houses with spotting talent for key
positions and succession planning, while keeping a close eye on
the market to enrich the pool of internal applicants.
Kering supports the Houses by handling transactional HR
activities (payroll, absence management, employee benefit
management) and provides a shared framework for developing
Group-wide projects, such as digital platforms, HRIS and internalsocial media network, talent and performance management,internal communication for key issues linked to Kering’s values,
global remuneration and employee benefits policies. This
framework is constantly evolving so the Houses can meet the
new challenges they are faced with.
Internal control is also strengthened by the centralization ofcertain functions within Kering.

Risk management and internal control
Internal control and risk management procedures implemented by Kering

Legal Department
Apart from its specific function at Company level, the Legal
Department assists the entire Group with important legal mattersand coordinates analyses or studies common to the activities orof significant interest for the Group. It also formulates Group
policy and oversees its application. It provides the Houses with amethodology for identifying standard risks enabling them toanticipate such risks and inform the Legal Department.

Tax Department
The Tax Department coordinates the Group’s tax policy andadvises and assists the activities on all issues related to tax law,as well as on the implementation of tax consolidation in France.

Communications Department
The Communications Department is involved in the Group’s
development by enhancing its image and reputation bothinternally and externally.

Information Systems Department
The Information Systems Department is responsible for providing
optimal operational performance, controlling IT risk andimproving the Group’s information systems.

1.6.2 Organization and resources
The organization of internal control depends on persons involved
at every level in the chain of responsibility, from Executive
Management to all employees, as well as the bodies responsible
for oversight and assessment: the Board of Directors, the Audit
Committee, the Internal Audit and Risk Management
Department, and the Statutory Auditors. Together, this forms amodel with three lines of defense. A summary of it is provided in
section 9 of chapter 1.

1.6.2.1 Participants in the control process
Executive Committee
The Kering Group Executive Committee, which is an Executive
Management body, comprises 13 members as at December 31,
2023.
The Executive Committee meets regularly in order to:• draw up and coordinate the Group’s operating strategy;• set the priorities via objectives assigned to the activities andthe main functional projects;• develop synergies between the Houses;• propose acquisitions and disposals to the Board of Directors;• ensure proper implementation of the policies and projects
defined within the framework of the Group’s commitments tosustainability.
Kering Group strategies and goals are discussed each year via themedium-term plans and the budgets of the business units of eachof its activities.

Executive Management teams
The Executive Management teams define, coordinate andoversee the Group’s internal control process.

They are also in charge of taking the requisite corrective
measures. The Executive Management teams’ involvement is of
key importance to the internal control process given the KeringGroup’s organization.

Management and employees
Management plays the leading operational role in internal
control; it relies on internal control to perform its duties andreach its objectives. In this respect, management implements theinternal control operations related to its area of responsibility
and ensures that the internal control process fits its activities.
Employees must have the knowledge and information necessary
to set up, operate and oversee the internal control process inorder to meet the objectives assigned to them. In their day-to-day
activities, they follow the principles, rules of control and cansuggest ways to improve and detect malfunctions.

1.6.2.2 Bodies responsible for oversightand assessment
The bodies responsible for oversight and assessment are:

The Board of Directors
The Board of Directors contributes to the overall control
environment through its members’ skills and expertise. The
Board is regularly informed about the methodologies used forinternal control and the management of major risks, which it
presents in its Board report. The duties of the Board of Directors
are presented in section 3.1 of chapter 3 of this Document.

The Audit Committee
As of December 31, 2023, Kering’s Audit Committee had fivemembers, three of whom were independent. Tidjane Thiam(Chair of the Audit Committee) left the Board of Directors on
January 9, 2024. The Committee has since had four members(Jean-Pierre Denis, Interim Chair), Financière Pinault,
represented by Héloïse Temple-Boyer, Serge Weinberg and
Véronique Weill. Under the responsibility of the Board of
Directors to which it reports on a regular basis, the Audit
Committee is in charge of monitoring:• the procedures for preparing financial information;• the effectiveness of internal control and risk management
systems;• the statutory audits of annual financial statements and,
where appropriate, of consolidated financial statements
performed by the Statutory Auditors;• the independence of the Statutory Auditors.
The Kering Audit Committee also:• verifies that the Group has an Internal Audit Department thatis structured and well suited to the tasks of identifying,detecting and preventing risks, anomalies or irregularities in
the management of the Group’s affairs;• assesses the relevance and quality of the methods andprocedures used;• reviews the Internal Audit reports and the recommendations
issued;• approves the annual Internal Audit plan;• reviews the work conducted by the Risk Committee and hasaccess to the minutes of its meetings.
Since 2021, Kering’s Audit Committee has met at least five times a
year.
The composition of the Audit Committee and its duties arepresented in section 3.4.2 of chapter 3 of this Document.

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The Internal Audit andRisk Management Department
The Kering Group’s Internal Audit Department ensures fullcoverage of the Group’s operations and reports directly to
Executive Management.
Through its work, the Internal Audit Department helps assess
the internal control process and recommends improvements.
Its principal duties are:• leading and coordinating risk management through risk
mapping and action plan monitoring among other activities.
The Chief Audit Executive informs Executive Management andreports to the Audit Committee on the main results of theirassessments and on action plan monitoring at least once ayear;• coordinating, harmonizing and optimizing working methods
and tools. It also provides its services (regulatory watch,expertise, useful resources, etc.);• actively keeping track of the best practices in internal control.
• drawing up the audit plan based on the Group’s process
guidelines and on the major risks identified at the Houses.
The audit plan takes account of special requests from senior
management and other operational departments. These
projects are discussed with the main persons in charge. The
Audit Committee reviews and approves the final audit plan;• implementing the audits in line with the annual audit plan. It
checks the control procedures implemented by otherdepartments and conducts operational and financial audits
within its remit.
The main issues identified by the Internal Audit Department arereported to the Audit Committee. In this way, the Audit
Committee is informed of the issues identified and the actionplans set up by the entities concerned.
At the end of 2023, the Group’s Internal Audit Department had
19 employees, two of them specialized in IT audits. The team’s
size has remained stable since 2017.
Internal Audit activities are performed in conjunction with thework of the Audit Committee and the results of the work
performed by the Statutory Auditors.
In 2013, Kering’s Internal Audit Department published thefollowing referential frameworks that establish a common
methodology: the audit manual and the audit approach. In 2020,
the approach to auditing stores was updated.

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In December 2021, Kering’s Internal Audit Department obtained
professional certification from the IFACI (French institute of audit
and internal control) that it conducts its activities in accordancewith the mandatory requirements of the International
Professional Practices Framework of the Institute of Internal
Auditors (IIA). This seal of quality demonstrates that the Internal
Audit Department adds value for the Group, improves its
operations and helps it to accomplish its objectives by bringing asystematic, disciplined approach to evaluate and improve theeffectiveness of risk management, control, and governanceprocesses.
In 2022, the Kering Internal Audit Department introduced a toolfor drafting and sharing reports on audit assignments in stores.
The follow-up process on the various assignment stages is fully
digitalized, making for more effective monitoring and smootherdiscussions with stakeholders.

The Statutory Auditors
The Statutory Auditors review internal control processes as partof their audit of the financial statements. In so doing, they
identify the strengths and weaknesses of these processes, assess
the risk of material misstatement, and, where applicable, makerecommendations. Under no circumstances do the Statutory
Auditors take the place of the Company in implementing internal
controls.
The role of the Statutory Auditors is to certify the completeness,accuracy and fair presentation of the parent company andconsolidated financial statements on an annual basis and issue alimited review report on the Group’s interim consolidated
financial statements.
The main matters covered by the Statutory Auditors are as
follows:• identifying risk areas and performing tests by sampling inorder to validate the completeness, accuracy and fairpresentation of the financial statements with regard to theirindividual or consolidated materiality threshold;• validating the main types of accounting treatment andoptions throughout the year, in coordination with the
management of the activities and Kering;• applying the accounting standards defined by Kering for its
activities based on the relevant accounting standards;• preparing an audit report for each House, in order to certify
Kering’s consolidated financial statements, including any
comments on internal control;• presenting a general overview of the Kering Group to Kering’sManagement and to the Audit Committee;• preparing the Statutory Auditors’ reports for Kering’s
shareholders. These reports are presented in chapter 6 of thisDocument.

Risk management and internal control
Internal control and risk management procedures implemented by Kering

1.6.3 Risk management
The Group’s risk map is defined based on various sources (see diagram below). The risk factors identified are subject to the mitigation
measures presented in section 2 of this chapter.
Risk insightsfrom Top Managementof the Houses and Kering

Duty of Careand Sapin II law
Work undertaken by the legal
Compliance team

Close to 100 people met during
qualifying meetings

TCFD
recommendations
Work led by the Sustainable
Finance Department

DESIGN OF THE KERING GROUP’S RISK MAP
Consolidation of all data and information
Contribution to drafting of annual internal audit plan

1.6.4 Oversight of the process
The ongoing oversight of the internal control process and regularreview of its functioning rely on the work performed by theInternal Audit Department, any comments made by the Statutory
Auditors and the annual self-assessments.
In the annual self-assessments carried out within the entities foreach process identified, the managers in charge are asked toassess the level of internal control through key controls for theiroperations, in order to identify any weaknesses and implement
corrective measures. Self-assessment is not simply a reporting
tool intended for the Internal Audit Department or the Audit
Committee; it is also a system that allows the Executive
Management teams of the activities to obtain reasonableassurance regarding the strength of the internal control process.
Self-assessment makes it possible to strengthen the level ofinternal control through operational action plans. Lastly, theseprovide a means of harmonizing the level of internal control
applied throughout the Group and of introducing best practices
at all activities, especially newly acquired entities.

Self-assessment by Group entities
Key operational staff members carry out a questionnaire-based
self-assessment in each of the entities following the breakdownof operations into key processes. Key controls, as well as fraud
risk controls, have been identified and added to thesequestionnaires in order to strengthen the effectiveness of theaction plans. The self-assessment campaign covers all of Kering’s
operations.
The questionnaires are reviewed at regular intervals in the light ofparticipants’ responses during the previous annual assessment
and comments from those conducting the assessments. In 2021,
the financial process questionnaires were revised to reflect thechanges introduced within the Group. In 2022, the entire content
of the questionnaires for the other processes was reviewed. The
goal of the update was to focus on more operational, clearer andmore concise points reflecting adjustments to the Group’s
processes that have undergone major changes.

The finance, accounting and management process questionnairetakes into account the AMF’s reference framework and, inparticular, its application guide. It includes some 60 questions on
the Group’s mandatory key controls. It is circulated among thelargest subsidiaries in the Group’s activities. There was no change
in the scope of processes covered in 2023.

Self-assessment by the Houses’ stores
The Internal Audit Department extended its self-assessment
procedures to stores throughout the Group’s Houses starting in2013. These self-assessments give the sales network managers an
idea of the effectiveness of their internal control and represent a
training guide to help store managers meet their internal control
obligations.
The self-assessment questionnaire for the Group’s stores was
extensively revised in the first half of 2020 to (i) take into accountchanges in all store activities, (ii) clarify and simplify thequestions and make them more relevant, and (iii) simplify theconnection with the control points verified during in-store audits
for comparison purposes.
In addition, to facilitate the use of the results, the frequency ofself-assessment campaigns in stores was reduced from halfyearly to yearly. This approach was presented and approved by
the Kering Audit Committee.

Shared Services Centers
Since 2021, the Group’s Finance Department has continued theroll-out of the tool continuously monitoring the transactional
activities managed by the Group at the financial Shared Services
Centers. It was deployed more widely across financial processes
in accordance with the Group’s financial transformation project.

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1.7 Description of internal control procedures relating
to the preparation of financial and accounting information
Financial and accounting information is prepared by the Group Finance Department. At the level of Kering, this department supervises
the Financial Control Department (which includes the accounting, consolidation and management control teams), the Financial
Communications Department, the Financing, Treasury and Insurance Department and the Tax Department.

1.7.1 Financial Control Department
Financial management procedures
The financial information is produced and analyzed using a setof financial management procedures including:• medium-term plans, which measure the impact of strategic
priorities on the Group’s key financial and management
indicators. They are also used for the annual assessment by
the Group of the fair value of assets allocated to the various
cash-generating units;• budgets, which are drawn up on the basis of discussions
between the operating departments and the members of theGroup’s Executive Management. The first phase takes place inthe fourth quarter of the fiscal year when a preliminary
budget sets out the main financial indicators and operating
action plans. The second stage, which finalizes the budget,
takes place in the first quarter of the following year andbuilds in any significant events that may have occurred in themeantime;• monthly reporting that monitors the performance of theGroup’s activities throughout the fiscal year via specificindicators whose consistency and reliability are reviewed by
the Financial Control Department. This department also
oversees the consistency of the accounting treatment appliedby the activities with Group rules and carries out, together
with their financial controllers, an analytical review bycomparison with the budget and the previous year;• monthly meetings of Kering’s Executive Management and thesenior executives of the Group’s activities to assess businesstrends on the basis of financial and operational data provided
by meeting participants.

Consolidation process
Kering’s Financial Control Department coordinates the process
and is in charge of producing the Group’s consolidated financial
statements. For this purpose, the Department sends instructions
to the activities specifying the reports to be sent, the common
assumptions to be applied and the specific points to be taken
into account.
Consolidation levels within the activities provide a first level ofcontrol and consistency.
The consolidation of the financial statements takes place in lateJune and late December using the Group consolidation tool.
Financial information is transferred from the activities in realtime after full validation of the consolidation reporting packagesby the Statutory Auditors and by the Chief Executive Officers andChief Financial Officers of the Houses. They make a legallybinding commitment via a signed representation letter, whichhelps to underpin the quality of the financial information madeavailable.
Lastly, the Group regularly monitors the activities’ off-balance
sheet commitments. This control is carried out as part of theconsolidation process, with the activities required to provide an
exhaustive list of their commercial or financial commitments andto monitor them from year to year.

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1.7.2 Financial Communications
Department
The Financial Communications Department’s role is to produce
and release the permanent and periodic information that makes
up the regulatory information.
It conducts this role in line with a precise regulatory frameworkand in compliance with the key general principles applicable tofinancial reporting. The Financial Communications Department
thereby upholds the principle of equal access to information forinvestors, the principle of consistent, accurate, precise and fairly
presented information and the full and effective release ofregulated information, notably through the publication on theGroup's website, kering.com.
Financial Communications forms a key component of market
transparency and represents a core pillar of investor confidence.
It is intended for a diverse range of audiences, mainly consistingof institutional investors, retail investors and (financial and nonfinancial) analysts. Executive Management, the Chief Financial
Officer and the Financial Communications Department are thecontacts for analysts and investors. The Human Resources
Department provides information for employees and employee
shareholders, in conjunction with the Financial Communications
Department.
The role of the Financial Communications Department also
extends to non-financial (CSR) topics in its dealings with analysts
and investors. The Sustainability Department is also involved,
handling relationships with non-financial rating agencies.

1.7.3 Financing, Treasury andInsurance Department
The Financing, Treasury and Insurance Department manages
liquidity, counterparty, foreign exchange and interest ratefinancial risks. It also coordinates the Group’s cash management.
It manages the Group’s banking policy, establishes guidelines forthe allocation of activity by bank, and coordinates Group calls fortender. It ensures consistency between published financial
information and policies governing interest rate, foreignexchange and liquidity risk management. Almost all of thefinancing is set up by Kering or Kering Finance. Exceptions areanalyzed on a case-by-case basis according to specificopportunities or constraints and require Kering’s agreement.
The Insurance Department, an integral part of the Financing,
Treasury and Insurance Department, establishes and manages
the Group’s policy on insurance. It is responsible for identifying,quantifying and handling risks (prevention, self-insurance ortransfer to insurers or reinsurers).

Risk management and internal control
Presentation of risks

2 - PRESENTATION OF RISKSIn accordance with the regulation EU no. 2017/1129 of June 14, 2017 (Prospectus Regulation) and ESMA’s guidelines on risk factors, thefollowing section describes the main risk factors specific to the Kering Group.

2.1 Ranking of the Group’s main risk factors
The risks identified by the Group have been ranked according totheir level of criticality, on a scale ranging from 1 (very critical) to
4 (less critical), which is based on the probability of theiroccurrence and the magnitude of their impacts, as well as
reflecting the risk management measures implemented.
All of the risks presented below represent the specific risk factors
to which the Kering Group is exposed. These risks are consideredmaterial for the Group within the meaning of article 16 of theRegulation (EU) 2017/1129 of June 2017, despite the risk
management policies adopted to mitigate the probability of theiroccurrence or their impact.

The Group has classified its risks based on its fundamentals,
which are as follows:• creativity: championing a vision of Luxury that combines
heritage with boldness;• growth: promoting organic growth;• expertise: enhancing synergies and integration;• talent: developing talented individuals;• sustainability: crafting Luxury in a sustainable manner.

In addition, the risks have been streamlined to make them easier to understand and present. For 2023, the table below presents the risk
factors ranked by type:Fundamental

Level of criticality

Risk

2

Image

CREATIVITY
Macro-economy and geopolitics
3
GROWTH

2

EXPERTISE

3
4
3

TALENTSUSTAINABILITY

Distribution network
Governance and business model
Ethics and risks of fraud and corruption
Supply chain efficiency
Production
Real estate
Cybersecurity and IT systems
Legal risks
Financial risks
Compliance with national tax laws and international standards
TalentCrisis management

2

Climate change

3

Human rights and fundamental freedoms

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To assess the overall materiality of its risk factors, Kering draws up a risk matrix summarizing the criticality of each one based on agraphical representation of its probability of occurrence and its average potential impact.

Kering group’s risk map

Descriptions of the risks identified and the Group’s risk management measures are provided in the following sections. The pictograms
presented below indicate the probability of occurrence and impacts of the risks identified by the Group. In 2023, the Group rationalized
the number of impact categories to five (from nine previously).
Probability of occurrence

Impacts

Unlikely

Human Capital

Rather likely

Compliance/Legal

LikelyFinance

Very likely

OperationalHigh

Significant

Average

Low

Reputation

The various types of impacts referred to above are defined asfollows:• Human Capital: impact on management of the Group’s
Human resources;• Compliance/Legal: impact of a legal or compliance nature on
the Group’s individuals or legal entities;— 292

KERING - 2023 Universal Registration Document• Finance: impact on the Group’s financial results and/or likely
to result in a cash outflow;• Operational: impact on the Group’s business operations, suchas product development, production or logistics activities;• Reputation: impact on the image and reputation of theGroup, its Houses and its executives.

Risk management and internal control
Presentation of risks

2.2 Creativity risks
Image
Probability of occurrence:

Impacts:

Description of the risk
Damage to the Group’s image or reputation or that of its Houses, giving stakeholders (e.g., customers, consumers, suppliers,
employees, shareholders, civil society, etc.) a negative opinion of the Group and ultimately affecting its results.
Example case(s)Unfavorable or inaccurate media coverage, as well as negative discussions on social media, concerning the Group’s alleged
practices or its Houses’ products or communications, could harm not only the Group’s image and reputation, but also potentiallylead to a slowdown in sales.
Actions taken
The Group keeps a close eye on media and discussions on social media about the Group and its Houses.
To guard against image risk, the Group has taken the following measures, which have been strengthened following the controversy
surrounding Balenciaga at the end of 2022:
Internal control measures:• Sharper definition of internal control measures around communication and marketing by the Houses to reduce reputationalrisks. This framework incorporates:– a new Kering policy that sets out a list of recommendations and warnings for communication and marketing activities,– a set of guidelines for sensitive issues;• Based on this framework, a formal internal process within each House suited to its own organizational structure. These
processes are controlled by Kering's internal audit team;• Establishment of a Group-wide Brand Trust function, responsible for reviewing and making recommendations to Houses about
their communication and marketing content and activities and to guide them with their risk assessments. Consulting the Brand
Trust Director is mandatory for 15 identified topics (politics, religion, animals, alcohol, etc.), which will be regularly updated toreflect current events and developments, and for all fashion shows. The matter will be reviewed in-depth by the Brand Trust
Director and, as a last resort, may be submitted to Kering Deputy CEO, in charge of Brand Development, for decision. In addition,
the Houses are also in regular discussions with the Group to forestall risks arising from the use of potentially sensitive images
and messages in their communication.
Communication measures:• A special reputational crisis management procedure defined with the Communication and Image Department and in conjunction
with the Executive Management and the other departments concerned.
Training measures:• Implementation of a training program on how to manage reputational crises for each of the Houses’ executive management
teams.
• Promotion of a culture that nurtures both independent judgment and collective discussion, including through training for
employees via online modules, in particular on business ethics and compliance. This training also aims to instill a culture ofequality and inclusion, for example, by combating stereotyping and unconscious bias that could be at odds with the Group’s
values and thus harm its image.
Governance measures:• Monitoring by Kering's Board of Directors of how the actions mentioned above are implemented, as well as the inclusion of acriterion linked to protecting the intangible assets of the Group and its Houses in the remuneration policy of the Chairman andChief Executive Officer.

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2.3 Growth risks
Macro-economy and geopolitics
Probability of occurrence:

Impacts :Description of the risk
The Group is present in many markets and exposed to changes in the economic, regulatory, social or political environment that
may adversely affect consumer demand, disrupt its operations or dampen its profitability.
Example case(s)• Lower tourist numbers influenced by factors such as political instability, security threats, and changes in customs or tax
policies.
• Failure to consider the changes driven by macro-economic trends and a deterioration in the future outlook for the Luxury
industry on a global level or specifically among key categories of consumers (Chinese consumers, pre-owned, etc.).
• Major events with an international reach, such as a political crisis or instability or wars, could have a material impact on theGroup’s production and distribution operations.
• Economic sanctions or export controls that could affect the Group’s sourcing or distribution activities.
Actions taken
Group’s strategy and market positioning
Both the Group’s market positioning and strategy (see section 5 - Our strategy of chapter 1 - Presentation of the Group andIntegrated Report for more details) help limit the impacts of macro-economic cycles and uncertainty on its activities.
• The diversity of the brands’ geographic footprints helps limit the Group’s exposure to uncertainties or even to deterioration in agiven country’s economic or security environment. The Group’s distribution network remains balanced across the regions:sales are made through a network of 1,771 directly operated stores, spread evenly across the main regions and through its
online presence.
• The Group’s broad spectrum of products also makes it less dependent on any single category. The Group has also extended its
operations to the Beauty activities in 2023.
• The Group has demonstrated in the past its ability to adapt its organization, operating methods and strategic priorities in
response to changes in the macro-economic and technological environment. Its level of profitability and of cash generation
allows it to invest for the long-term and to weather the sector’s recessionary phases, even though the downward adjustment ofcost bases remains a long and complex process in an industry where the proportion of fixed operating expenses is high.
• The acquisition of a shareholding in Vestiaire Collective and other initiatives should enable the Group to gain additional
knowledge of the pre-owned Luxury market.
Sanctions policy
The Group has also introduced a "Sanctions policy" enabling it to guard against risks related to economic sanctions and export
controls. These measures have been significantly reinforced by certain jurisdictions because of the armed conflict between Russia
and Ukraine. This Sanctions Policy was adopted and deployed by the Group in 2016 and updated in 2022. This Policy is supported
by a guide setting out the measures that need to be taken to ensure compliance with sanctions against Russia and Belarus. The
guide was first published in March 2022 and updated in January 2023 and details the measures that each sales channel anddepartment must take to identify risky situations, block problematic or prohibited transactions and report them to theirhierarchy.
Situation in Ukraine and Russia
The Group has taken steps to prevent the supply of sanctioned luxury goods to or for use in Russia. The Group also reorganized its
diamond supply chain and has ceased sourcing them either directly or indirectly from Russia. It should be noted, however, that its
diamond purchases from Russia were not material.
The armed conflict between Russia and Ukraine that began in February 2022 continued to have a very limited direct impact on thebusiness activities of major Luxury brands. However, it contributed to inflationary pressure and the deterioration in the global
economic outlook. As a reminder, the Group's exposure is limited. Since in 2021 Kering generated around 1% of its total revenue
in Ukraine and Russia, and the net value of its assets there was not material at the end of 2021 (around 0.1% of the Group total
assets). The value of those assets was written down in full in 2022.
Kering believes it has taken the requisite measures to reduce as far as possible the likelihood of risks occurring and to mitigate
their impact. Depending on its duration and extent, the conflict could affect the economic growth of the main areas and therefore
the Luxury market over a longer period. Since that impact is indirect, however, it does not appear possible to quantify it precisely.

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Risk management and internal control
Presentation of risks

Distribution network
Probability of occurrence:

Impacts:

Description of the risk
Flawed organization of distribution resulting in the Group’s (i) selling the Houses’ products in points of sale falling short of quality
standards and tarnishing the image of the Group’s brands; (ii) not achieving a sufficient degree of control over product marketing;(iii) being absent from certain markets or not having access to certain customer segments; and (iv) not keeping pace with changing
fashions and shopping venues.
Example case(s)• Poor store location.
• No stores present in a promising market.
• Inadequate sales performance or profitability of a point of sale.
• Overexposure of wholesale distribution, affecting directly operated stores.
• Development of parallel market fueled by retailers.
Actions taken
Actions taken are:Directly operated stores• Optimization of the directly operated store network by the Houses (opening of new points of sale, closure or relocation of thosethat are less well-placed or the least profitable, renovation of stores to make sure they remain attractive and productive). A
profitability study and an assessment of the strategic and operational benefits are carried out prior to every investment decision
related to the network. One-off studies may be carried out two or three years after the investment to ensure the business plan
has been executed properly.
• Optimization of how stores operate through regular and close monitoring of the main retail indicators. The Houses can plan inadvance for any decision to strengthen in-store teams, extend or redevelop sales space, for example.
Wholesale• Regular review of wholesale distribution contracts by the Houses’ teams with the support of the Group’s Legal Department toensure each House’s distribution network is as efficient and effective as possible. In addition, a team from Kering’s Finance
Department tracks the solvency of all the Group’s wholesale accounts and monitors payment collection.
• Efforts made by the Group to streamline the wholesale channel since late 2019. This has resulted in a decline in revenue and, incertain cases, especially for e-tailers, a conversion to a concession format.
Parallel distribution networks• The Group prevents sales of its products by parallel distribution networks by ensuring the traceability of its goods, prohibiting
direct sales to these networks (gray market) and implementing specific measures to tighten control over these distribution
channels.

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Governance and business model
Probability of occurrence:

Impacts:

Description of the risk
Difficulties experienced in achieving the Group’s strategic and operational objectives.
Example case(s)• A House’s over-reliance on its Creative Director.
• Loss of a House’s appeal with changes in the Creativity Director’s expression of their creative talent.
• Difficulty anticipating changes in consumer expectations.
• Inappropriate decision-making and lack of accountability.
• Internal processes, individuals and systems not fit for purpose, or external events impairing the organization’s ability to operate
effectively.
• Inappropriate management practices and operational failures are detrimental to the organization’s reputation andstakeholders’ confidence.
• Weaker-than-forecast operational and financial performance of companies acquired.
• Difficulties unlocking synergies and integrating staff questions concerning the suitability of information systems, etc.
Actions taken
Governance and organization
In July 2023, Kering announced a series of top appointments aimed at enhancing the stewardship of its Houses, further elevating its
operational expertise and strengthening its organization.
In addition to her existing role as President and CEO of Yves Saint Laurent since 2013, Francesca Bellettini was appointed Kering
Deputy CEO in charge of Brand Development. All brand CEOs report to her, and she is responsible for steering the Group Houses
through the next stages of their growth and development. To ensure a smooth transition, Francesca Bellettini assumed her new
responsibilities gradually, and a new Yves Saint Laurent top management lineup was put in place.
Jean-Marc Duplaix, Chief Financial Officer since 2012, was appointed Kering Deputy CEO in charge of Operations and Finance. JeanMarc Duplaix heads all Group corporate functions and is responsible for enhancing efficiency and scrutiny.
The aim of these changes is to build a more robust organization to harness its full expansion potential in the global Luxury market
over the long-term.
In addition, Kering makes certain that Creative Directors are supported and stimulated in their work and their quest for new
inspiration. Continuous interaction between the House CEOs and Group Management promotes dynamic management of theHouses and improved responsiveness. Regular interaction between the Chief Executive Officer and the Creative Director of eachHouse preserves its value and respect for its identity over time. Any accounting impacts of impairment losses, which could arise
from the loss of a House’s appeal, are described in Notes 12, 33.11 and 33.12 to the 2023 consolidated financial statements.
Integration of acquisitions
The Group mainly expands through organic growth supplemented where appropriate by selective acquisitions. All acquisition
plans are reviewed and approved by governance bodies based on financial and investment criteria. These projects are reviewed
systematically and extensively (strategic, technical, operational, financial, legal, HR, compliance reviews, etc.) with all the relatedrisks and opportunities being analyzed and assessed as part of this process.
Adjacent segments (Kering Eyewear and Beauty) have prepared a roadmap, dedicated project teams and a plan covering all theprocesses that need to be integrated. These project teams are made up of the Group’s employees and employees from thecompanies acquired. For example, a post-acquisition compliance audit ensures Kering standards on combating corruption, moneylaundering, sanctions, human rights, and the duty of care are upheld. In addition, coverage of Maui Jim’s insurable risks wasincorporated in the Group’s program during 2023.

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Ethics and risks of fraud and corruption
Probability of occurrence:

Impacts:

Description of the risk
Acts of active or passive corruption, influence peddling or fraud involving an employee or manager of Kering or its Houses.
Behavior falling short of ethical standards and expectations.
Failure to comply with ethical values and rules potentially tarnishing the Group’s reputation.
Example case(s)• Giving gifts, extending hospitality or providing free travel to business partners, public officials, or other decision makers in orderto unduly influence a decision related to the Group.
• Sponsoring or making donations with the aim of unduly influencing a decision related to the Group, for example by making a
donation to a charity organization that then passes on the money as a bribe to a third party.
• Misuse of a real estate transaction as a means of bribing a third party, for example by taking a lease over premises that ultimately
belong to a public official to unduly influence a decision related to the Group.
• Undue award by a Group employee of a supplier contract (product or other supplier) in return for a bribe from the supplier.
• Failure to meet the Group’s rules of ethics or fulfill its commitment to being a socially responsible company could jeopardize
Kering’s success and sustainability, which require the trust of all its stakeholders, including customers, employees, shareholders
and business partners.
• Incident caused by an unethical conduct of entities or individuals under the Group’s control, or those with whom or which it has
business relationships, which could seriously harm the Group’s reputation and give stakeholders a negative image of the Group.
Actions taken
The Group seeks to ensure that no incident arises due to an unethical conduct on the part of entities or individuals under its
control, or those with whom or which it has business relationships. To this end, each of Kering’s Houses has a crisis management
policy and unit that liaises with headquarters. The Group also monitors adherence by personnel to the Kering Group Charter, which
defines the framework for the decentralization of the organization, and to the Code of Ethics, which is available in 14 languages.
Commitment of the governing body and Compliance organization
The compliance program in general, and the anti-corruption system in particular, are ultimately the responsibility of François-Henri
Pinault in his capacity as Chairman and Chief Executive Officer of Kering SA. François-Henri Pinault is involved personally indeveloping and implementing the anti-corruption program within Kering and its Houses, both internally and externally. This
commitment supported by Executive Management and the Board of Directors is relayed within the Houses by the Chief Executive
Officers. A specialized unit has been set up consisting of the Group Chief Compliance Officer, lawyers and Compliance Officers.
Ethics organization
A Group Ethics Committee has been established and is supported by two regional counterparts, the Asia-Pacific (APAC) Ethics
Committee and the Americas Ethics Committee. Together, they ensure compliance with the Code of Ethics and respond to all
inquiries, from simple ethics-related questions to the management of complaints about potential non-compliance with the Code.
The three Ethics Committees, the Compliance team and the ethics hotline form Kering’s whistleblowing system. All the Group’s
employees worldwide, as well as employees of the suppliers and partners under contract with the Group and/or its Houses, may
use the whistleblowing system.
A detailed description of this organization is presented in section 2 "Ethics, the cornerstone of our business" of chapter 4.

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Measures implemented
The management framework for the risk has three priorities. It is presented in detail in section 2 "Ethics, the cornerstone of ourbusiness" of chapter 4.
• Prevention:
The Code of Ethics draws on the Group’s key founding principles in the area of ethics, which are then set out in greater detail inother policies and documents.
The anti-corruption policy, internal control procedures and guidelines have been drafted to assist Group employees with
applying the procedures in the situations identified as being most at risk.
At the same time, the Group also ensures that its suppliers adhere to the principles laid down in the Group Suppliers’ Charter.
Due diligence procedures for all direct and indirect suppliers, acquisition targets, joint venture and consortium partners,
retailers, as well as beneficiaries of sponsorships and donations, have also been tightened up so as to better prevent the risks ofcorruption, fraud, money laundering and violation of economic sanctions. These procedures round out the Hercules project (seesection 4.2.1 of chapter 4).
In addition, employees identified as being most exposed to corruption and influence peddling risk are given customized training
to enhance first-level control over the new procedures. These training sessions, which were delivered to 3,223 employees in 2023,
complement the mandatory Ethics and Compliance e-learning courses updated on an annual basis for all the Group’s
employees. This training is run for all Group employees (attendance rate of 98% in 2023) to remind them about the fundamentalsof ethics and their obligations in this regard and about the Group’s whistleblowing system.
• Detection:
A procedure is in place for reporting concerns and to detect potential risks arising from ethics.
Second- and third-level compliance checks ensure the compliance program is implemented.
• Remediation:
Remedial action is taken for any failures identified, helping to drive continuous improvement under the program.

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Supply chain efficiency
Probability of occurrence:

Impacts:

Description of the risk
Inventories unduly high for the actual or forecast level of sales, causing the gross margin to decrease and adding up an excessive
amount of resources for the quantity of goods sold.
Example case(s)• Level of inventories above the targets for a given product item in one or more markets.
• Overstocking of raw materials or components relative to production volumes.
• Storage capacity saturated in a region.
Actions taken
The Group has implemented a number of mitigation measures at various levels:• continuous improvement in the quality of sales forecasting (using algorithms) to align purchases and production based on the
expected level of business;• more accurate allocation of product items in a collection to markets/stores using artificial intelligence support systems;• further progress with modernizing the logistics organization (see inauguration of the new Trecate logistics platform in Italy in
April 2021) to make it more responsive to changes in the marketplace, shorten delivery times and thus cut the level of inventories
held in markets;• coordination of brands’ and Group-wide initiatives to optimize sales of the oldest collections (distribution and pricing strategy
tailored to distribution channels, with the aim of maintaining brands’ exclusive nature);• pilot recycling projects above and beyond the measures already implemented (e.g., the partnership with La Réserve des Arts, a
non-profit that collects and reuses materials, and Alexander McQueen’s donation of textiles to fashion school students in the
United Kingdom);• review of product manufacturing processes to curb the use of materials, reuse production waste (e.g., the scrap-less project) andfacilitate upcycling under the Circularity Ambition program;• launch of initiatives to promote the circular economy in the Luxury industry, such as second-hand fashion (acquisition of ashareholding in Vestiaire Collective and development of projects and initiatives by the Houses).
The policies, projects and actions implemented, the outcomes achieved and the associated performance indicators relating to theGroup’s circularity approach are presented in detail in section 5.5 "Developing circularity" of chapter 4 "Sustainability" of this
Universal Registration Document.

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Production
Probability of occurrence:

Impacts:

Description of the risk
Unavailability of the raw materials necessary to manufacture the Group’s products, which must comply with the Group’s quality
criteria and be obtained in accordance with the Group’s ethics, environmental, social and quality standards.
Non-compliance of products sold with quality and safety standards, resulting in product returns and reputational risk.
Example case(s)• Volatility in the prices of raw materials, such as leather, skins and precious metals and stones. Supply instability.
• Increasing scarcity of resources associated with growing demand, impacting the production, availability, quality and cost of raw
materials.
• Loss of biodiversity caused by intensive livestock farming, which threatens, or may threaten, the production of high-quality raw
materials. More generally, soil degradation and depletion and the destruction of biotopes represent a significant risk to themaintenance of high-quality livestock and crop farming.
• Manufacturing disruptions caused by the unavailability or decreased quality of raw materials, due to climate change and its
impact on biodiversity and on the destruction of land and ecosystems.
• Ending a business relationship with a dependent supplier could result in that supplier experiencing financial difficulties or eveninsolvency, thus affecting its liquidity and ability to comply with its other supply commitments.
• Failure by a supplier to meet Kering’s ethical, social, environmental and animal welfare standards potentially harming theGroup’s image and reputation.
• A defect that leads to a product return by the consumer could harm the Group’s image and reputation.
• A defect that could affect consumer health or safety (e.g., allergies) would result in a product recall.
Actions taken
In order to bring high-quality products to market that are compliant with these standards, the Group implements quality control
processes covering all of the stages in the product lifecycle, from design to marketing. Products are classified using quality andsafety standards, while suppliers are listed on the basis of technical audits and adherence to the Group Suppliers’ Charter. Productquality and safety controls are carried out at all stages of the production process by quality engineers and accredited laboratories.
Under its supplier selection process, the Group makes certain their practices fulfill the Group’s ethical, environmental and social
requirements as laid down in its Supplier Charter included in the Code of Ethics and its Sustainability principles, which are stated incontracts with suppliers. Compliance with these practices is confirmed during the employment audits carried out every year. The
Group ensures that its suppliers abide by the applicable laws and regulations and that its supplies meet international standards. In
addition, Kering supports its suppliers as they transition to more sustainable standards and has set up a collaborative portal(Vendor Portal), making training and various key documents freely available to suppliers and enabling the Group to evaluate theirenvironmental and social performance by means of questionnaires. Some production lines may be internalized following detailed
analysis of the main suppliers.
Kering is also looking at the following areas in order to secure its sourcing over the long-term and support natural solutions:• Introduction of the Kering Standards by suppliers with two levels of achievement: minimum requirements and best practices tobe achieved by 2025 at the latest with a target of 100% raw materials compliance with these Standards. These standards focus
on five areas: social impact, environmental impact, traceability, use of chemicals and animal welfare. Kering has also publishedspecific standards on animal welfare to ensure that animals are treated as humanely as possible throughout the Group’s supply
chains;• Introduction of sustainable sourcing. The quality, safety and stability of the Group’s supplies of animal and plant-based raw
materials depend on strict compliance with the standards in this regard. First and foremost with the Convention on International
Trade in Endangered Species of Wild Fauna and Flora (CITES) and on the sustained equilibrium of ecosystems, some of which are
already under threat;• Implementation of the Biodiversity Strategy and development of regenerative agriculture through direct support for sourcing
programs for certain key raw materials and the Kering Regenerative Fund for Nature, which was established to support thetransition to regenerative agriculture with producers of key raw materials for the Group in order to reach the target of one million
hectares by 2025. Seven projects (leather, cotton, wool and cashmere) are currently being supported;• Development of alternative materials with the Material Innovation Lab (MIL) and the Jewellery Innovation Lab (JIL). The Material
Innovation Lab (MIL) is a unit established in 2013 to support the Group’s Houses by pursuing three targets: (i) develop and makeavailable materials aligned with Kering Standards to replace traditional materials (organic cotton and wool, mushroom leather,sustainable cashmere, recycled plastics, etc.), (ii) analyze Houses’ supply chain to secure larger volumes of sustainable raw
materials and develop multi-brand synergies, and (iii) identify, assess and select sustainable innovations. The main role of the
JIL is to help Kering's Jewelry Houses with adopting more sustainable practices by means of innovation and networking by
pursuing two targets: (i) develop sustainable innovations for materials and processes to reduce the impact of the supply chain,(ii) assert the leading position of Kering and its Jewelry Houses in terms of sustainability through key partnerships andgroundbreaking initiatives.

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The Group integrates the production and organization of its supplier network to achieve greater agility and flexibility so it canadjust orders and restock items throughout the season based on quantities sold. The Group has forged special partnerships withkey suppliers and pursues a policy of actively seeking new partners. It also develops synergies within the production chain bymeans of acquisitions or strategic business partnerships in the subcontracting market.
The Product Compliance teams support the Houses in developing and distributing products that comply with legal requirements ineach market and with the Group’s Product Restricted Substance List (PRSL), which specifically lists the substances to be removed
or thresholds not to be exceeded, as well as the highest existing standards for the disposal of hazardous chemicals. Since 2021, theorganization has been strengthened by the addition of the Test & Innovation Lab (TIL), the ISO/IEC 17025 (Accredia) laboratory that
supports testing and problem-solving activities and the R&D projects of the Group’s Houses. In addition, Kering has committed toensuring hazardous chemicals are removed from manufacturing processes and has drawn up a Manufacturing Restricted
Substances List (MRSL). Likewise, the Group systematically embraces environmental standards and best health, safety andenvironmental practices across all its production activities.
All the Group’s businesses are also endowed with a "product" crisis management unit. In the event of a known risk, they follow
procedures ensuring that immediate and transparent information is provided to the public, and that defective products arerecalled.
Lastly, the Group has also taken out civil liability insurance to cover bodily harm or property damage to third parties caused byproducts considered defective (see section 2.7 "Insurance and risk protection" of this chapter).
Chapter 4 "Sustainability" of this Universal Registration Document presents details of the policies, projects and actions
implemented, the outcomes achieved and the associated performance indicators relating to:• the quality and safety of products in section 6.1.3 "Product compliance and consumer health and safety";• the Group’s raw materials and biodiversity conservation in section 5.3 "Preserving biodiversity and ecosystems" and 5.4"Sustainable sourcing and use of raw materials (Tier 3 and Tier 4)" and more generally Kering’s environmental policy within
section 5 "Respecting and protecting the environment in our operations and value chain";• guidance and support for suppliers as they transition to sustainable practices in section 4 "Working together to build sustainable
and socially responsible supply chains".

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2.4 Expertise-related risks
Real estate
Probability of occurrence:

Impacts:

Description of the risk
Difficulty negotiating leases, renting or buying on the best terms at certain locations for the Group or the Group’s Houses due to thecompetitive market, the scarcity of premium products in certain cities and the term of contractual commitments, or the lack ofcontrol over economic factors.
Difficulty delivering construction/renovation projects on time and on budget.
Example case(s)• Loss of sales outlets that are strategic for the Group’s Houses.
• Reduced bargaining power during negotiations for a new lease or the renegotiation of existing agreements as a result ofcompetition and market pressure.
• Failure to comply with real estate law or new regulations (e.g., large-scale projects requiring building permits, prior declaration,commercial permit or authorization to carry out works).
• Incomplete assessment or an assessment that includes an anomaly that may result in an overrun on a deadline and/or a budget(asbestos, lead).
• Delay in the delivery of a real estate project (e.g., a new store or store renovation).
• Refusal or delay in obtaining a building or a commercial permit or authorization.
• Construction site accident.
• Insolvency of a contractor resulting in delays in making premises available.
• Default or non-compliance by an owner leading to a delay on or cancellation of a project.
Actions taken
Two separate teams handle matters arising according to the type of project: one looks for and conducts negotiations concerning
real estate assets (rentals/sales or purchases/sales), while the other manages the most complex construction and renovation
projects. The tasks overseen by these teams can be summarized as follows: (i) assisting the Group and the Houses with the
opening, relocation and renovation of stores, offices/showrooms, and industrial and logistics sites, (ii) acquiring/selling buildings,(iii) establishing specifications for construction projects, (iv) overseeing works as project owner, and (v) managing sites owned orrented by Kering Corporate.
The controls implemented to curb the risks are:
• For real estate projects:– Leasing: (i) compliance checks of the lessor and intermediaries; (ii) use of market studies and/or references/benchmarks fromreal estate experts; (iii) negotiation of lease terms and conditions with real estate, construction, legal and financial experts(internal and/or external); (iv) regular monitoring of leases, particularly before critical lease dates (termination date, end oflease, rent review date, etc.); (v) regular exchanges with our partners to anticipate or unblock operational constraints and/or
exceptional situations (e.g.: works, disposals, events, Covid),– Investment : (i) a compliance check of the seller and intermediaries (ii) a complete due diligence procedure including afinancial, legal, tax and technical analysis of the property to highlight potential warnings; (iii) systematic reviews of current andfuture contracts (commercial lease, contract with companies involved in the building, service provision contract…); (iv) setup
steering committees for projects deemed significant; the real estate, construction, legal, tax, insurance and accounting
departments are part of those meetings; (v) a valuation study of the building by at least one external real estate expert;• For construction: (i) the implementation of a procedure for executing and monitoring construction projects, (ii) the use ofstandard contracts across regions, and (iii) calls for tender that include verification of the financial and technical viability of thecontractors consulted. Furthermore, Kering seeks to obtain environmental performance labels (e.g., BREEAM, LEED) for the
majority of its properties;• Establishment of a network of real estate experts, present in key countries, so that it can leverage the expertise of employees andspecialists who know the market’s specific characteristics plus local laws and regulations, and also have the necessary
negotiating skills;• Compliance audits by the Compliance Department to ensure that new partners comply with the applicable laws and regulations.

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Cybersecurity and IT systems
Probability of occurrence:

Impacts:

Description of the risk
Difficulty preventing or detecting malicious cyber attacks made through a digital communication channel, leading to the disclosureof the Group’s key information, financial losses, alteration or corruption of its digital assets and reputational harm.
Failure of information systems (IS), which now play a vital role in the Group’s business processes (such as sourcing, distribution anddigital) and support processes (such as finance and HR).
Example case(s)• The diversity of information systems in operation within the Group.
• Delays in the deployment of new software programs or applications.
• Information systems unable to meet customers’ needs.
• Failure to keep security patches up to date.
• Inadequate separation of information systems within the Group or the Houses, creating a risk of cross-infection in the event of avirus attack.
• Cyberattack.
• Leaks of personal data.
Actions taken
The Group runs a multi-year investment program to adapt, improve, tighten up the security and increase the durability of its
information systems. Action taken includes:
Prevention• Implementation of procedures. The Group has increased IT security, notably through a transformation plan, and stepped up
employee awareness initiatives by implementing a large number of control and protection measures, including establishingprocedures, and developing targeted IT security systems. In 2022, the Group introduced strong authentication to prevent identity
theft. A new authentication management platform was deployed to tighten up access and protect workstations by rolling out disk
drive encryption and tightening up security configurations. The security integration process for projects was also enhanced toensure that all new applications added to the information systems comply with security requirements.
• Training: All employees have been trained to detect malicious emails, including via phishing simulation exercises conducted
throughout the year. Moreover, the Group has developed e-learning modules on cybersecurity and data confidentiality, in
addition to one on security and remote working. Best security practices in various areas (phishing, malware, passwords, etc.)
were also circulated via the Group’s various internal communication channels during 2023, with a special campaign held during
cybersecurity month in October.
• GDPR (General Data Protection Regulation). The Group has taken significant action in these areas such as: anonymizing thecustomer data used in non-production environments, restricting access to customer data to authorized persons, carrying out
risk assessments on all projects implemented by the Group in order to identify requirements in terms of data security,
confidentiality, integrity, traceability and availability, and thereby defining the appropriate security measures, entering into nondisclosure agreements with external service providers and adding security clauses to the Group’s contracts with suppliers,
acquiring a customer identity management platform in order to secure the authentication process. The Data Privacy Officer isinvolved in these measures.
Controls• Compliance of the Group’s IT systems. The following actions are implemented every year to assess the level of compliance of theGroup’s information systems: penetration testing (pentests) on applications and simulated logical/physical attacks (Red Team),
network vulnerability scans and applications, continuous cloud infrastructure audits, review of patch management procedures
and obsolescence management, review of backup procedures.
• Audits of information systems and sensitive applications. The Information Systems Department (Kering Technologies) regularly
conducts audits of these.
Incident management and continuity plan
• Security incident management that may impact personal data or operations. The Group has set up a Security Operations Centeron hand 24/7 and responsible for detecting and resolving security threats and events, such as identity fraud, malware andinformation leaks. In 2022, detection capabilities and responsiveness were strengthened by building and rolling out new kit for
the Security Operations Center and setting up a Computer Emergency Response Team (CERT) for Kering. In 2023, the Kering
CERT processes were tightened up and approved by industry organizations such as InterCERT France.
• Business continuity and recovery plan. Business continuity and recovery plans are regularly updated with the assistance of theHouses’ security departments and their efficacy is closely monitored. In 2023, the recovery plan was tightened up with increased
testing on critical applications and infrastructure. The crisis management framework was enhanced and training drills werecarried out.
The Group also works with peers to reduce exposure to this type of risk. The Group has joined Campus Cyber to build closer ties
with the French cybersecurity community and now plays an active role in working parties and governance.
Information relating to GDPR compliance is presented under actions taken in the "Legal risks" section of this chapter.

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Legal risks
Probability of occurrence:

Impacts:

Description of the risk
Non-compliance with the applicable standards and/or national laws and regulations, resulting in legal proceedings and disputes
arising in the normal course of business.
Example case(s)• Lack of compliance with local standards including personal data protection.
• Non-compliance with customs standards.
• Misreporting of product origin.
• Impossibility of selling certain products due to non-compliance with local standards.
• Inaccurate declaration on compliance with the Convention on International Trade in Endangered Species of Wild Fauna andFlora (CITES).
• Loss of strategic suppliers with specific skills, due to insolvency or a takeover by competitors, leading to a production shutdown.
• Dependence of a supplier on one or more of the Group’s Houses, resulting in the supplier becoming insolvent on termination of
the contractual relationship with the House(s) in question.
• Loss of strategic sales outlets, which could lead to a decline in revenue.
• Failure to register a trademark or design in a timely manner.
• Allegations of intellectual property breaches committed by the Group’s Houses could lead to sizable claims for damages, as wellas financial losses relating to the withdrawal of products, and have a negative impact on the Group’s reputation.
• The infringement of registered trademarks and the copying of designs on the market, as well as parallel trading and copyrightbreaches, could affect demand for genuine products created by the Group’s Houses.
• The unauthorized use of registered trademarks and other intellectual property rights, the unauthorized sale of products createdby the Group’s brands and the distribution of counterfeit goods damage the Group’s image.
• Actual or alleged breaches of competition law regulations that could have a material impact on the Group’s business activities,
reputation and financial position.
Actions taken
Legal compliance and litigation
To guard against risks of non-compliance due to a lack of awareness of a legislative change, Kering provides its businesses with aregulatory intelligence service through headquarters and support centers in the regions in which the Group operates.
The Group has implemented effective methods and procedures for identifying and managing its industrial and environmental risks
within each of the entities concerned. These rely chiefly on the advice of duly authorized external organizations and advisors andadequately satisfy the customary technical and professional standards from a relevance and proportionality perspective under theapplicable regulatory framework. An active prevention and safety policy are an integral part of these methods and procedures.
Provisions have been set aside for the probable costs of disputes (e.g., complaints or litigation), as estimated by the entities andtheir experts. According to the Group entities’ experts and advisors, no litigation currently in progress concerning Group companies
presents a risk for the normal course of the Group’s business or its future development. Provisions were set aside in the Group’s
2023 consolidated financial statements to cover all of the above-mentioned legal risks, including the impact of commitments givenon the disposal of controlling interests (see Note 24).
• None of these risks have been qualified as arising outside the normal course of business for Group companies.
• The Group considers that the effective methods and procedures for identifying and managing its industrial and environmental
risks within each of the entities concerned, which rely chiefly on the advice of duly authorized external organizations andadvisors, adequately satisfy the customary technical and professional standards from a relevance and proportionality
perspective under the applicable regulatory framework. An active prevention and safety policy are an integral part of thesemethods and procedures.
• Furthermore, the Group has granted various vendor representations and warranties in connection with disposals of controllinginterests in subsidiaries made over the last ten years (see Note 24 to the consolidated financial statements).

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As regards the laws and regulations applicable to the Group’s activities (excluding possible international sanctions that may be
imposed against certain countries but have no impact on the Group’s activities), none are subject to specific rules or exemptions in
any of the relevant territories. They are all subject to the same constraints and obligations as those directly applicable to its
competitors in its different markets. The Company is not aware of any foreseeable regulatory or legislative changes incontradiction with the foregoing.
As part of a preliminary investigation into the fashion sector in several countries under EU anti-trust rules, the European
Commission carried out an unannounced inspection in April 2023 at the Italian premises of Gucci, a Kering subsidiary. The
Company published a press release on April 19, 2023 concerning the preliminary investigation, which is ongoing. To date, theCompany has not received any formal notice concerning developments in the proceedings. The Legal Department regularly reviews
the progress of the investigation to assess its potential implications for the Group, in conjunction with the Finance Department, theInternal Audit Department and the Deputy CEO in charge of Operations and Finance.
In line with its commitments, the Group seeks to act in full compliance with the regulations applicable to its operations, including
competition rules. Over the past several years, the Group has implemented policies and guidelines concerning competition law,which have been made available to all employees. These lay down the principles and rules of conduct employees have to abide by
in order to comply with the applicable rules. A specific unit reporting to the Compliance Department handles their deployment andmonitors their application, and training is provided to the relevant employees.
To the Company’s knowledge, there are no governmental, legal, or arbitration proceedings (including any pending or threatened
proceedings of which the issuer is aware) that are likely to have in the future or have had in the course of the previous 12 months, asignificant impact on the financial position or earnings of the issuer or the Group.
Contract management
The Group is not significantly dependent on any third-party patents, licenses or supply sources. The Group owns or has licensed
rights to the trademarks, patents and intellectual property rights that it exploits, free of any restrictions on the right of priority oruse (and of rights likely to restrict such exploitation) in all relevant markets. The same applies to the corporate names and domainnames of the subsidiaries or entities, to the names of the Group’s stores and points of sale (see the "Real estate" section) and to thetrademarks and signs of the goods and services manufactured or marketed by the various Group entities. This situation does notpreclude any of the trademarks belonging to the Group being licensed to third parties for the sale of goods or services under its
trademark enhancement policy, as it is the case in fragrances and cosmetics. In all cases, any such licensing agreements have beenentered into under fair commercial and financial terms and conditions and have no impact on the ownership of the trademarks andsigns belonging to the Group.
Further information on contractual obligations and other commitments is provided in Note 30 to the 2023 consolidated financial
statements presented in this Universal Registration Document. The Group has strengthened its teams, particularly in the Legal
Department and the shared services centers, to ensure that contracts with the Group’s suppliers have been drafted appropriately.
Since 2015, the Hercules program has strengthened the shared and, standardized approach to supply chain management between
the Houses.
Real estate contracts are reviewed by specialized teams (see the section on "Real estate" risks in this chapter for more details).
Intellectual property
The Kering Group regards intellectual property used in the creative and innovation processes of its Houses as crucially importantand has established a master intellectual property protection and defense policy adhered to by the Group’s Houses. For thispurpose, the Group has formed and retains legal organizations at regional (Asia, the Americas and Europe), local (Houses andsubsidiaries) and central levels specialized in intellectual property management. In line with the general directives introduced by
Kering, the Legal departments of the Group’s Houses take steps to make sure products do not infringe the rights of third partiesand determine which elements need protecting. The intellectual property rights portfolio is reviewed and updated on a regularbasis to reflect and protect the activities of the Group’s Houses.
Lastly, Kering works to protect its rights and campaigns against counterfeiting in all its markets, as this can have an impact onrevenue and damage the reputation of the Group and its products. The Group takes steps to combat the various breaches of its
rights, the sale and trafficking of counterfeit goods or copied goods, as well as imitations that devalue the creative work of theHouses. In physical markets, this policy is implemented through customs seizures, police raids and legal action and on the internetby withdrawals of advertising and investigations followed by litigation. Litigation is overseen by the Houses’ Legal departments,
according to the general policy principles recommended by the Group with the help of the Group’s legal units and external
advisors, in conjunction with the competent authorities at local level (subsidiaries). The cost of protecting rights is borne by thelegal functions and aligned with the Group’s scale and size.
All these measures are also applied to the Group’s latest acquisitions.

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Compliance with the statutory framework protecting personal data (GDPR)
The Kering Group’s Houses process customer data that are of high commercial value. To curb the risk of inappropriate use of thesedata and to comply with the relevant legislation, the Kering Group’s Houses have taken further measures to tighten up theprotection of personal data within their commercial and digital strategy. The Privacy Framework is an internal framework in which
the Houses are stakeholders through direct and formal executive-level engagement. It paves the way for implementation of acoherent worldwide strategy protecting personal data. The various data controllers face many challenges in view of cross-borderissues and growing complexity of the legal framework for the protection of personal data.
The Kering Group’s activities operate under constantly changing rules that vary from location to location and from subject tosubject. The Group has increased the size of its Privacy team to address this priority and expand its data protection capabilities. It
now consists of regional managers (Europe, Middle East and Africa, Asia-Paciﬁc and Americas) and dedicated managers for anumber of countries.
• There have been numerous new and changes to existing privacy rules in the Europe, Middle East and Africa region, with the
adoption of new legal frameworks in several states during 2023.
• In the Asia-Pacific region, the Houses have undertaken various initiatives to comply with China’s Personal Information Protection
Law (PIPL) and to seek government approval for cross-border personal data transfers. Across the region, new personal dataprotection rules were introduced in India, Thailand, Vietnam, South Korea and Indonesia.
• In the Americas region, maintaining a tight grip on data processing activities has become imperative in view of the growing
corpus of applicable law and the scale of the Group’s operations. Special attention is paid to this issue in the United States where
the relevant and state-level legislation is both complex and in flux. Similarly to the Asia-Pacific region, there has been a flurry oflawmaking activity in South America, notably in Brazil, Argentina and Chile.
Since supporting customers is a central concern of the Houses, the Group set up in 2022 a shared service guaranteeing effective andrules-compliant management of requests by individuals to exercise their right to access, correct, object to the processing of anddelete the information gathered. In 2023, the Houses reported an uptrend in the number of requests (up 49% in 2023 versus 2022),
requiring the allocation of specialized resources. The service is now provided to the Houses to ensure, on their behalf, that all
requests received are processed rapidly and rigorously, regardless of the channel by which they are received and the type ofrequest involved. In 2023, the average request processing time was 11 days.
Employee training forms a key part of the strategy implemented. In 2021, Kering introduced mandatory (and optional for external
participants) internal training with the aim of developing a culture that makes privacy a priority concern and genuinely addresses
IT security issues head-on. The exercise was repeated in 2022, when it achieved a completion rate of over 93%.
Lastly, one of the Group’s Houses underwent a coordinated enforcement inspection in 2023 by the European Data Protection
Committee concerning the designation and duties of the Data Protection Officers. The inspection was completed by the French
Data Protection authorities (CNIL) in December 2023, without any recommendations or observations being made.

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Presentation of risks

Financial risks
Probability of occurrence:

Impacts:

Description of the risk
Difficulty addressing market risk (foreign exchange risk, interest rate risk, equity risk) and liquidity risk.
Example case(s)• Exchange rate fluctuations between the euro and the main currencies to which the Group has significant exposure (the US dollar,
the Chinese yuan and the Japanese yen), which can significantly affect the amount of these sales and the Group’s results statedin euros (see Note 21.2 to the consolidated financial statements for details of foreign exchange risk exposure and sensitivity).
• Fluctuations in floating interest rates, which may negatively affect results (see Note 21.1 to the consolidated financial statements
for details of exposure and sensitivity to interest rate risk).
• Were the market in NEU CP (short-term negotiable securities) to dry up due to exogenous factors, such as a monetary crisis,
potentially making it impossible to make new or tap existing issues, Kering would be forced to use its credit lines or its
available cash.
Actions taken
Foreign exchange risk
The Group has adopted a hedging strategy to minimize the impact of currency fluctuations on its results. Accordingly, it uses
derivatives either to hedge foreign currency trade receivables and payables, or to hedge highly probable forecast exposures and/or
firm commitments.
Hedging periods are aligned with each House’s business cycle and only marginally exceed one year at each reporting date.
The Group also hedges foreign exchange risk on financial assets and liabilities issued in foreign currencies by using currency swaps
for refinancing purposes or for investing cash in euros or the local currency.
Note 21.2 to the consolidated financial statements sets out the nature of the hedging instruments held by the Group and its
exposure to foreign exchange risk ("Exposure and sensitivity to foreign exchange risk").
Kering Finance SNC processes, controls and provides administrative support for foreign exchange transactions on behalf of Group
companies. Its organization into front-office, middle-office, back-office and accounting departments ensures that tasks areproperly segregated, transactions are kept secure and derivatives contracted internally are unwound on the market. Kering
Finance SNC uses market-standard techniques and information systems to price currency instruments.
Equity risk
The Group trades in its own securities either directly or through derivatives as part of its share buyback program in accordance withapplicable regulations. Kering has also entered into an agreement with a financial intermediary to foster the liquidity and maintainthe regular quotation of its shares. This agreement complies with the Professional Code of Conduct drawn up by the French
association of financial markets (Association française des marchés financiers – AMAFI) and approved by the French financial
markets authority (Autorité des marchés financiers – AMF).
As of December 31, 2023, Kering held 840,597 treasury shares, representing just 0.7% of its share capital and confirming its low levelof exposure in this regard. Kering also retained a 0.4% interest in PUMA, further reducing its exposure compared to previous
reporting periods.
Additional information on equity risk is provided in Note 21.3 to the consolidated financial statements.
Interest rate risk
Kering may need to use derivatives such as swaps or purchases of options to guard against changes in interest rates. Kering
Finance SNC processes, controls and provides administrative support for interest rate transactions on behalf of Group companies.
Its organization into front-office, middle-office, back-office and accounting units ensures that tasks are properly segregated andtransactions are kept secure. Kering Finance SNC uses market-standard techniques and information systems to price interest rate
instruments.
Note 21.1 to the consolidated financial statements sets out the Group’s exposure to interest rate risk ("Exposure and sensitivity tointerest rate risk").
Liquidity risk
Liquidity risk management for the Group and each of its subsidiaries is closely monitored and periodically assessed by Kering,based on Group and House-level financial reporting procedures.
In order to manage liquidity risk that may arise when its financial liabilities are due, the Group’s financing policy is geared towards
optimizing its maturity schedule and cost of debt.
The Group’s active risk management policy also seeks to diversify sources of funding and limit reliance on individual lenders.
The Group had unused confirmed lines of credit totaling €3,185 million as of December 31, 2023, up €150 million as of December 31,
2022 (see Note 20.6 to the consolidated financial statements).
In addition, as of December 31, 2023, the Group had issued €1,277 million of securities under its NEU CP program filed with theBanque de France.
As of December 31, 2023, the Group had cash and cash equivalents totaling €3,922 million.
Information relating to liquidity risk is presented in Note 21.7 to the consolidated financial statements.

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Compliance with national tax laws and international standards
Probability of occurrence:

Impacts:

Description of the risk
Non-compliance with the national tax laws and international standards applicable to Group entities, that may lead to tax
investigations and disputes in the normal course of business.
Example case(s)• The calculation of tax due by Group entities is not in compliance with local regulations.
• The entity’s tax team is not sufficiently qualified to understand its tax issues.
• Non-compliance with local transfer pricing requirements on intra-group transactions.
• Documents justifying the tax treatment of a transaction are unavailable or incomplete.
Actions taken
As a responsible corporate citizen that acts in accordance with its Code of Ethics and its tax policy, Kering and all Group entities are
firmly committed to complying with the applicable national tax laws and international standards everywhere they operate. Keringis also committed to ensuring that all Group entities pay all of the taxes due in each of the countries where they operate. According
to its tax policy and its commitment to compliance and transparency, the Group has signed in France a protocol to enter into a "taxpartnership" in 2023.
Kering can rely on a team of tax specialists in each of its regions and at its headquarters. They are highly skilled and receive regulartraining to keep their knowledge up to date.
To understand the various tax-related issues that may arise, the Group Tax Department’s main tasks are:• consolidating tax information from all Group companies;• understanding and monitoring tax issues that arise at national or international level and coordinating responses in compliancewith the applicable laws and standards;• ensuring that intra-group transactions are documented as required;• providing technical support on tax-related matters during the preparation of consolidated financial statements.
The Tax Department has therefore implemented a number of verification and control tools to help identify and resolve any tax
issues that may arise within the Group and to ensure compliance with the applicable national tax laws and international standards.
These tools include: regular analyses of comparable information to ensure that intra-group transactions are carried out on anarm’s length basis; annual reviews of Group entities; and close, detailed monitoring of any tax audits to which Group entities are
subject.
In addition, the Tax Department actively ensures that all Group entities:• allocate all the physical, digital and human resources necessary to conduct their business;• only have a presence in countries where they actually conduct business;• comply with the applicable national laws and international standards on transfer pricing. To this end, it develops and updates allof the necessary documentation in this regard and provides the relevant resources, such as analyses of comparable transactions
and functional analyses;• cooperate fully with local tax authorities and government agencies and, where relevant, share their experience and expertise.

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2.5 People-related risks
Crisis management
Probability of occurrence:

Impacts:

Description of the risk
Inability to deal with an event with consequences potentially affecting the safety and security of the Group’s employees, thecontinuity of its business and its image and reputation.
Example case(s)• Major events (natural catastrophes, health or geopolitical crises, etc.).
• Criminal behavior, acts of terrorism.
• Major leak of confidential information, cyberattack.
• Strike and/or large-scale industrial action.
Actions taken
The Group’s Safety Department drafted a crisis management policy to (1) provide a reference framework common to all theGroup’s entities and to draw Departments’ attention to the importance of advance crisis management planning, and (2) deliver a
rapid and coordinated response to any major event potentially affecting the Group.
Every year, the Safety Department arranges crisis handling drills based on likely and realistic scenarios to train the crisis cells put inplace.
Specific crisis management plans have also been drafted by the Safety Department in the regions to prepare for risks that are likely
to occur, such as earthquakes in Japan or hurricanes on the eastern seaboard of the United States.
A crisis cell has been set up in each House to coordinate with the Group’s Safety Department. Following on from the Balenciaga
controversy, special training was provided in 2023 to all members of these crisis cells. The Safety Department worked together with
the Communication Department to put in place the procedures to follow in the event of a reputational crisis, as detailed in
section 2.2 of this chapter (Creativity risks - Image).
Lastly, Kering Tech and Kering Ops, which are responsible for the Group’s information systems and logistics, each have a crisis cell
established and trained in responding to any crises.
In addition, safety and security procedures for in-store employees and for the stores themselves have been put in place, along witha safety policy for business travelers, outlining the arrangements and rules to be followed to curb the risks of their coming to harm
during business trips. The Group’s logistics chain achieved ISO 28000:2007 certification (requirements for a security management
system, including those aspects critical to security assurance of the supply chain) by implementing effective safeguarding
measures and certified safety risk management audits. It was also awarded ISO 22301:2012 certification (business continuity
management systems) through processes established to identify potential risks that may disrupt the supply chain and thedevelopment of specific business continuity plans.

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TalentProbability of occurrence:

Impacts:

Description of the risk
Difficulty identifying and developing people’s skills, and retaining them.
Potential loss of know-how among the Group’s teams or among the craftspeople and manufacturers within the supply chain or thecommunities from which the Group sources key and/or specific raw materials.
Example case(s)• Departure of senior executives: inability to find, in a timely manner, a suitable successor for an Executive Management position(Chair/Chief Executive Officer, Deputy CEOs and Executive Committee members), as the result of departure or incapacity.
• Unexpected departure of a Creative Director, leading to a period of uncertainty that could have a significant impact on the brand(particularly in terms of image and reputation, asset write-offs, etc.). Any Luxury houses may have to face and manage this risk atsome time.
• Dilution of technical craftsmanship in transformation, cutting and assembly. Extinction of traditional crafts.
• Difficulty to keep talent: loss of key employees to competitors.
• The Luxury industry is supported by numerous manufacturing communities worldwide. They are subject to the risk of social,economic and operational tensions, such as community problems, disruptions to production and a shrinking talent pool.
Actions taken
TalentKering’s Human resources policy aims to:• establish a long-term hiring strategy through international partnerships with schools and training organizations, and thus attract
the best talent;• create a work environment that is motivating, collaborative, inclusive and respectful of each individual, fostering well-being atwork;• encourage commitment to the Group and its values through training programs, talent management and an appropriate
remuneration policy;• promote inclusion, diversity and gender equality;• pay constant attention to working conditions, employee well-being and work-life balance;• develop internal mobility and opportunities for personal and professional growth.
Kering has set itself the priority of developing talent and has therefore put in place tools and processes geared towards helping
employees constantly expand their career prospects and strengthen their skills through mobility and career opportunities.
These aspects are presented in detail in section 3 of chapter 4, which describes all the HR processes identifying, guiding anddeveloping talents in order to build a common pipeline of previously identified internal talent and to prepare succession planningfor key positions.
Craftsmanship and local communities
To maintain the know-how of its Luxury businesses over the long-term, as outlined in section 6 of chapter 4, Kering runs personnel
training and skills preservation initiatives and has internalized a number of functions that were previously subcontracted.

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2.6 Sustainability-related risks
Climate change
Probability of occurrence:

Impacts:

Description of the risk
A negative impact on the Group’s activities due to the effects of climate change. Group’s inability to achieve mitigation of its carbon
footprint. Lack of foresight, resilience or Group initiatives in response to the effects of climate change.
Example case(s)• Physical impact of climate change linked to the chronic risk of extreme weather events (drought, flooding, water scarcity, etc.) on the
supply chain or certain Group installations: the higher frequency of these events could have a direct impact on the availability andquality of key raw materials such as cotton, leather, cashmere and silk, which would translate into greater price volatility, and may
disrupt the supply chain or affect the production (restriction of certain practices), distribution of finished products and continuity ofoperations (manufacturing or storage facilities, etc.).
• Economic activity and even the social stability of certain regions (such as coastal regions in Asia) could be severely impacted by theeffects of climate change, which would further increase pressure on the Group’s supply chain.
• Transition risk and mitigation: greater regulatory burden, stricter environmental regulations, carbon taxes and operational investments
made to meet the challenges associated with climate change, potentially having an impact on the Group’s activities by increasing
production costs (raw materials, energy, operational investments, transportation) and impairing operational flexibility.
• Inaccurate forecasting of consumer demand for responsible products.
Actions taken
In the global economic and political outlook, climate change has become a key issue that demands an effective response.
Kering’s approach to tackling climate change features a two-pronged drive to: (i) reduce the impact of its operations, and (ii) to enhance
its foresight and ability to adapt so that it can mitigate the impact of physical and transition risks on its business (shifting consumer
expectations, physical risks to its installations, impact on sourcing of its raw materials, etc.). The Group has formulated a Climate Strategy
and introduced ambitious targets to reduce its carbon footprint over the short (2030), medium (2035) and long (2050) term:• 2030: Kering was the first Luxury group to be verified and approved in 2016 by the Science Based Targets initiative (SBTi) for its carbon
footprint reduction targets. These were revised in 2021 to align them with the 1.5 °C scenario by 2030 (Scopes 1 & 2), in keeping with thecommitments made as part of the Fashion Pact;• 2035: an absolute reduction of 40% in its overall carbon footprint (Scopes 1, 2 and 3 of the GHG Protocol);• 2050: Contribute to the carbon-neutral drive.
The Group pledged to reduce its carbon footprint – not just at its own operations but right across its value chain – enhance its energy
efficiency and make its supply chains more resilient. A decarbonization roadmap has been drawn up for the entire Group. It has been
adapted to fit each of the Houses and the main emission sources identified.
Kering’s adaptation plans vary according to the type or risk and its probability of occurrence in the value chain. Upstream Kering is looking
to secure its sourcing over the long-term and support natural solutions, with the development of regenerative agriculture a particularpriority.
Alongside its efforts to reduce carbon emissions, the Group offsets its emissions through carbon credits from approved forestry protection
projects. In 2023, the Group offset its overall carbon footprint (Scopes 1, 2 and 3 calculated via the EP&L tool - excluding product use andend of life) for 2022 and as calculated for the 2022 report. To plan ahead for its carbon offsets, Kering launched the Climate Fund for
Nature in 2022 together with Mirova and the L’Occitane group. The fund aims to protect and restore nature and is targeting €300 million in
total commitments. Of this amount €195 million had already been committed by year-end 2023, with €100 million from Kering.
The policies, projects and actions implemented, the outcomes achieved and the associated performance indicators relating to climatechange and the Group’s Climate strategy are presented in detail in section 5.2 "Combating climate change" of chapter 4 "Sustainability" ofthis Universal Registration Document.

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Human rights and fundamental freedoms
Probability of occurrence:

Impacts:

Description of the risk
Non-compliance with national and international standards or the Group’s standards on human rights and fundamental freedoms
potentially compromising the Group’s image and reputation.
Example case(s)• No child labor/forced labor, people-trafficking.
• Non-compliance with standards for migrant workers.
• Poor working conditions.
• Excessive working hours.
• Salary levels not providing a living wage.
• Hazardous working conditions or conditions failing to keep workers safe and healthy.
• Harassment and violence.
• Mining operations that are illegal or in conflict zones.
• Financing for wars or economic conflicts.
• Inequality of opportunity and discrimination.
• Failure to uphold the freedom of expression.
• Failure to uphold the rights of populations and local communities (violation of private property rights, failure to conserve
cultural heritage and craftsmanship).
Actions taken
As a Group that aims to create sustainable, responsible Luxury goods, Kering must identify and manage human rights-related risks
in its sphere of influence (operations and supply chain) as rapidly and as resolutely as possible. By working in partnership with its
suppliers and stakeholders to curb these risks and by sharing best practices, Kering protects the reputation of the Group and its
Houses and maintains the appeal of their creations. This commitment is underpinned by:• A Code of Ethics and a Human Rights Policy have been drafted at Group level and these cover Kering’s operations and supply
chains. Key documents forming an integral part of the contractual framework governing relationships with suppliers: a Supplier
Charter included in the Code of Ethics and the Sustainability Principles applicable to suppliers.
• In 2023, the Group reviewed its map of risks pertaining to severe impacts on human rights and fundamental freedoms, healthand safety, and the environment resulting from the Group’s operations and supply chain. The assessments were incorporated in
the Group’s overall map, and an action plan will be rolled out during 2024 to address areas for improvement detected during thisexercise.
• A whistleblowing system open to everyone working for the Group: employees and interns of Kering and its Houses, as well as
external and temporary personnel working for external partners or service providers under contract with the Group. It can beused to report any suspected violation of human rights and fundamental freedoms within the Group and its supply chains.
• A collaborative portal put in place in 2020 (the Vendor Portal) optimizing communication between Kering and its suppliers andproviding them with easy access to training and key Kering documents – including on human rights – and also evaluating
suppliers’ performance through questionnaires in a number of key areas, including human rights and fundamental freedoms.
• Employment audits conducted each year across thousands of Group suppliers and service providers.
The policies, projects and actions implemented, the outcomes achieved and the associated performance indicators relating tohuman rights and fundamental freedoms are presented in section 3 "Duty of Care Plan" in this chapter and in section 2.5"Protection of human rights" of chapter 4 "Sustainability" of this Universal Registration Document.

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Presentation of risks

2.7 Insurance and risk protection
The Kering risk management policy is based on the ongoing
identification and evaluation of risks, risk prevention, protectionof people and property, and safety and business continuity plans.
The Group’s risk management policy also includes the transfer ofrisks to insurance companies.

Insurance against risks
The Group’s policy of transferring significant risks to insurancecompanies is based on:• achieving the best economic balance between risk coverage,
premiums and self-insurance; and• the insurance available, insurance market constraints andlocal regulations.
Coverage is based on the "all risks except those specifically
excluded" approach, determined by assessing the financial
consequences for the Company of a possible claim, especially inthe areas of:• third party liability: bodily harm or property damage to third
parties caused by products, fittings and equipment;• fire, explosions, water damage, etc.;• operating losses following direct damage.
Insurance coverage is purchased based on an assessment by siteand company of the level of coverage necessary to facereasonably estimated potential occurrences of diverse risks(liability, damage and third-party retailer counterparty). This
assessment takes account of the analyses of the insurers
underwriting the Group’s risks.
The insurance programs now in force at the Group, whichcentralize most purchases of insurance policies such as property
and casualty risks for subsidiaries, were arranged with reputable
insurers in the industrial risk insurance sector. The Group was
assisted by internationally recognized insurance brokers
specialized in covering major risks.
Main existing insurance programs:• property damage from fire, explosion, floods, machine
breakage, natural disasters affecting its own property:
property, furnishings, equipment, merchandise, IT
installations, and property for which it is responsible, as wellas any resulting operating losses, for any period deemednecessary for normal business activities to resume;• damage and loss of equipment, merchandise and/or goods intransit;• damage resulting from theft, fraud, embezzlement, or acts ofmalice to valuable assets, data and/or property;• bodily harm or property damage following construction work
carried out as project owner (new buildings, renovations,refurbishments, etc.);• liability for bodily or property damage to third parties by
motorized vehicles belonging to the different Houses;• general and environmental liability for "operating risk","postdelivery risk" and "risk after services rendered", due todamage caused to third parties in the course of the Group’sbusiness;• non-payment of receivables by third-party retailers,particularly in the event of default or insolvency;• cyberattacks targeting the Group’s data and/or other assets.
Other insurance contracts are taken out by Group companies tocover specific risks or to comply with local regulations.
Uninsured risks are exposures for which no insurance coverage isoffered on the insurance market, or for which the cost ofavailable insurance is disproportionate compared to thepotential benefits of the coverage.
The Kering Group handles known and manageable risks given thecurrent scientific and medical understanding in a mannerconsistent with other French and international industrial groups
with similar types of exposures. This is one of the reasons why theGroup is able to place its risks with insurers prepared to deal withthe unforeseeable and uncertain consequences of accidents.
Insurance coverage concerns all Group companies.
The levels of coverage in place for the main potential risksfacing the Group as a whole as of January 1, 2023, were as
follows:• damage, fire, explosions, water damage and ensuing
operating losses: €300 million increased to €500 million for
the Group’s major sites;• general liability: €145 million;• damage to or loss of goods in transit: €15 million;• fraud and acts of malice to goods and valuables: €15 million.
The total risk financing cost for Kering includes three main
items (in addition to "physical" protection and prevention
expenditure). It breaks down as follows:• cost of deductibles and non-insured losses retained or selfinsured by the subsidiaries in 2023: €1.115 million;• claims covered by the Group itself through its reinsurancecompany in 2023: €12.6 million (total estimated at year-end
2023);
Self-insurance by the Group’s reinsurance subsidiary reduces
insurance costs and enhances performance because (i)frequently occurring risks are pooled within the Group andinsured for an amount that is fixed per claim and (ii)
exceptionally frequent claims made in a given year arecovered by reinsurance.
As of July 1, 2023, the Group’s reinsurance company covered
damage and operating losses of up to €3 million per claim, or
more on natural events in exposed regions (for the period
from July 1 to June 30);
• insurance premiums budgets and management fees
including engineering visits and brokers fees, etc. (final
budget 2023 expenses): €23.525 million.
There is also a credit insurance budget of around €1.375 million
covering non-payment risks related to sales to retailers (duty-freechains, department stores, specialized retailers, etc.).

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2023 Duty of Care Plan

3 - 2023 DUTY OF CARE PLAN
3.1 Introduction
3.1.1 Legal Framework
Kering is within the scope of French Law no. 2017-399 ofMarch 27, 2017 on the Duty of Care of parent companies andcontracting companies ("Duty of Care Law"), which requires
companies to draw up, publish and implement a duty of careplan to detect and prevent the risks of a severe impact on humanrights and fundamental freedoms, severe harm to the health andsafety of individuals, and serious environmental damage,resulting from the operations of (i) the Company, (ii) its
subsidiaries and other controlled entities or (iii) its suppliers or
subcontractors.

3.1.2 Kering’s Commitment
Kering has a long history of corporate responsibility in its
approach to employees, suppliers, customers and otherstakeholders as well as to the environment, as evidenced by theissuance of its first Ethics Charter in 1996. It endeavors not only tomeet but to exceed its legal obligations in the area. The latest
version of the Kering Code of Ethics, released in 2018, is closelyaligned with the major international conventions on humanrights, fundamental freedoms and environmental protection. It
sets forth the core commitments of Kering’s approach in theseareas. In this respect, Kering considers the requirements of the
Duty of Care Law to be an integral part of its ethical commitments
and undertakes to ensure compliance with these requirements in
all its activities and throughout its entire supply chain.

In 2017, Kering prepared a first duty of care plan which included amapping of the relevant risks. Since then, Kering has updated its
duty of care plan on an annual basis. In 2021, Kering performed a
new and more in-depth assessment of the risks covered by the
Duty of Care Law to see whether, and to what extent, such risks
had evolved since 2017. It began the same exercise in 2023, andthis will be completed during 2024. A significant number ofinternal stakeholders (including from Kering’s and the Houses’
Human Resources, Sustainability, Legal, Compliance, Audit andOperations departments) were involved in preparing the risk map
and drafting the duty of care plan (the "Duty of Care Plan").
External legal advisors provided assistance to ensure the internal
stakeholders acted in a fully independent manner and had all the
relevant expertise to hand.
Kering’s Duty of Care Plan presents an overview of the actions
that Kering has undertaken over a number of years to act as a
responsible company. It is built around the five key components
established by the Duty of Care Law.

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3.2 Risk map
As stated above, significant internal and external resources weredevoted to preparing the risk map in 2021 and the updated risk
map due for completion in 2024. The operations of Kering, Gucci

and Boucheron were covered in 2021 and those of Kering and of
all the Houses in the 2023-2024 edition under the Group’s
Compliance Department’s oversight.

3.2.1 Scope
The following risks were identified and evaluated as part of therisk mapping exercises:
1. Forced Labor– Child Labor– Forced Labor/Debt Bondage/Illegal, Clandestine or
Undeclared Employment/Migrant Labor/Human
Trafficking
2. Discrimination and Harassment– Diversity– Discrimination– Women’s Rights/Gender Equality– Psychological or Sexual Harassment/Violence
3. Absence of Dialog– Freedom of Association/Right to Collective Bargaining
4. Decent Working Conditions– Right to a Living Wage
– Working Hours– Dignity at Work/Mental Wellbeing

5. Health and Safety at Work– Safe and Hygienic Working Conditions– Chemicals/Hazardous Substances
6. Pollution– Energy Consumption– Greenhouse Gas Emissions and Climate Change
7. Waste and Packaging– Waste and Packaging
8. Water Use– Water Consumption– Wastewater Treatment
9. Animals & Biodiversity Abuse– Animal Protection– Preservation of Biodiversity
10. Local Communities Abuses– Land Rights/Forced Eviction and Displacement ofPopulations– Cultural Heritage/Local Communities

3.2.2 Methodology
The risks listed above were assessed separately with respect to (i)the internal operations of Kering and the Houses, (ii) the
operations of their first-level suppliers, and (iii) the sourcing of
raw materials. This risk map evaluated the gross risk andcalculated net risk by evaluating and scoring the relevant
controls in place.
First, gross risks related to internal operations were assessed
separately per country based on a combination of objective
factors (number of employees, production sites and warehouses,
located in each country) and third party indicators covering
specific countries and specific risks (varying for each risk andincluding among many others the Human Freedom Index, ITUC
Global Rights Index, the Environmental Performance Index and
the Animal Protection Index) assessing the potential impact andthe likelihood of occurrence.
Second, gross risks related to the operations of first levelsuppliers were assessed based on the number of suppliers per
country and the respective sales, which were once again
combined with third party indicators covering specific countries
and specific risks.

Lastly, gross risks related to the sourcing of raw materials wereassessed based on Environmental Profit & Loss data and otherinformation gathered for risk mapping purposes using six third
party indicators specific to each relevant country. The
assessment also took into account two aggravating factors, i.e.,
whether the country appears (i) on the U.S. Department of Labor
lists of countries producing goods and products that are believed
to be produced by child labor and/or forced labor, and/or (ii) on
the list of conflict-affected and high-risk countries under EU
Regulation no. 2017/821.
The respective net risks were then obtained by evaluating andscoring the relevant controls in place.
In this process, a distinction was also made to assess separately(i) the risks to which Kering and the Houses expose theirstakeholders, and (ii) the risks to which Kering and the Houses
are exposed as a result of their activities, taking into account thepotential financial, legal (and especially compliance) andreputational impact.
Overall, the exercise involved interviews with 127 Group
employees, a review of almost 2,000 documents, and the scoringof thousands of country-specific risks based on 56 third partysupplied risk indicators.

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3.2.3 Results
As stated above, the new risk map commenced in 2023 will becompleted in 2024. Nonetheless, the provisional results of theexercise to a very large extent mirror the results of the 2021 risk
map. Accordingly, the controls put in place to mitigate relevantrisks related to the internal operations of Kering and the Houses
appear sufficiently solid.
With respect to the operations of Kering’s and the Houses’ firstlevel suppliers, it is worth noting that the majority of theseproduction suppliers are located in countries with relatively
limited risk of human rights abuse or environmental damage,including Italy (and, more particularly, Northern Italy) andFrance. Relevant risks are further mitigated by multiple controls
and primarily by the introduction of the Hercules management
system (described below), which covers the onboarding of new
suppliers and their subcontractors as well as the monitoring of
their performance throughout the entire contractual relationship.

The controls in place to limit relevant risks within the remainderof the supply chain, consist primarily in implementing therequirements set forth by the Sustainability Principles by our
suppliers and their subcontractors, and the Kering Standards, aswell as in the certifications obtained by suppliers.
Action plans specific to Kering and to each House aimed atdelivering subsequent improvements in the Group’s practices inthe three areas referred to above and bringing the related risks
under tighter control are prepared and implemented by the endof each year in which a risk map is completed.

3.2.4 Monitoring and updating
Kering monitors human rights and environmental rights in thehighest-risk countries for its operations and supply chain. In
addition, as stated above, Kering updates its risk map on aregular basis so it can factor in any new entities, among otherreasons.

3.3 Regular assessments of the activities of subsidiaries,
suppliers and subcontractors
3.3.1 Subsidiaries and Other
Controlled Entities
Since 2018, Kering has refocused its operations on Luxury, andmore particularly around the Couture, Leather Goods, Jewelry,
Eyewear and Beauty Divisions.

3.3.1.1 Stores
As of December 31, 2023, Kering’s Houses directly operated
1,771 stores worldwide. As stated below, Kering has adopted
standards to achieve its sustainability targets that cover thecommercial life of its stores. These standards provide specificguidance for achieving environmental efficiency during both thestore planning and construction as well as the store operationand management phases.
These standards also provide for the performance of periodic
audits to ensure that relevant practices are duly respected,
including with respect to energy and water use, as well as waste
collection practices.
Moreover, as with all other Group premises, stores are subject toregular audits by the Group Internal Audit Department tosafeguard compliance with local regulations and with Kering’s
policies and procedures. As noted above, these include a review
of relevant working conditions, including the processes used to
track working hours and employee leave as well as the measuresin place to ensure that the privacy of employees is respected.

3.3.1.2 Offices and other premises
Offices and other premises owned by Kering and its Houses,
including production sites and warehouses, are subject to regular
audits by the Group Internal Audit Department to ensure thatapplicable regulations are fully respected and internal policies
and procedures are fully implemented. In addition to the moregeneralized testing of controls put in place, these audits assess
the working conditions of employees by ensuring, for example,
that employment relationships are always formalized bydedicated agreements (in particular with respect to temporary
workers) and that salaries and working hours are properly
managed and documented.

3.3.2 Suppliers and subcontractors
The Group works with several thousand suppliers to produce its
Houses’ collections. As of December 31, 2023, the Group-wide
centralized supplier database (described below) comprised a
total of 4,433 active suppliers throughout the Group. The chart
below describes the geographical breakdown of these suppliers:

9%

83%
Italy

Europe(excluding Italy)

7%

Asia

1%

Other

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The Hercules management system, which was first introduced in2015 and has since undergone a regular series of improvements,
aims to create and share best practices in risk assessment andprovide supply chain analysis for Kering’s production processes.
This is achieved through the following tools:
Supplier management procedures. The Houses apply a set of
consistent procedures for managing interactions with suppliers,
including with respect to their qualification, assessment, andrelationship management. Kering has also introduced a templatecontract that incorporates its Code of Ethics (including the
Suppliers’ Charter) and its Sustainability Principles. Both
documents are systematically issued to suppliers and form an
integral part of the contractual relationship with Kering. These
documents further require that the commitments contained in
the contract be cascaded to relevant sub-suppliers andsubcontractors.
Integrity due diligence procedure. Kering’s third party
suppliers and service providers are subject to the integrity due
diligence process set forth in the Group’s Anti-Corruption Policy
and Third Party Due Diligence Procedure. More specifically, toproperly assess and manage the financial, regulatory, andreputational risks associated with the relationships with thesethird parties, Kering screens them through the World-Check
database and conducts dedicated desktop searches. Dependingon the risk profile, Kering might also require the completion of a
dedicated questionnaire or the performance of an external
review from a law firm.
Social and safety audits. The Group conducts regular social andsafety audits to assess and monitor the Group’s supply chain
operations. They are undertaken both directly and with thesupport of third party firms. These audits are performed by a
dedicated team, the Kering Supply Chain Audit Department,
which reports to the Group’s Chief Audit Executive and ensures
the independence and impartiality of its members. The Grouphas made regular improvements to the relevant audit standards

and processes. As discussed at greater length in the Sustainability
Chapter, the audits cover social (including child labor, forcedlabor and working conditions), environmental, and health andsafety risks pertaining to the operations of Kering and of theHouses’ first level suppliers, first and second level
subcontractors, and the main direct suppliers of raw materials.
While key suppliers are audited every two years, the frequency ofaudits on other suppliers is determined through a dedicated risk
assessment, together with anomalies identified and theirseverity. If a major anomaly subject to a "zero tolerance" policy
comes to light during these audits (including, e.g., forced labor orundeclared subcontracting), Kering refuses to enter into theagreement with the new supplier or terminates the relationshipwith the existing supplier. In 2023, the Supply Chain Audit
Department performed 4,559 audits on these suppliers. Findings
from the audits performed by the Kering Supply Chain Audit
Department are discussed in dedicated committees composed ofrepresentatives from key functions from both Kering and theHouses.
Supplier database. All Kering’s Houses have access to acommon supplier database, which includes findings fromsuppliers’ audits as well as supplier information available frompublicly available databases. At the end of 2023, this database
comprised 4,433 active suppliers. The database includes
production suppliers, the main suppliers of raw materials, Kering
Eyewear suppliers, and strategic suppliers.
Vendor Portal. In line with the objective of ensuring its
standards are implemented by its suppliers by 2025, Kering
designed and has implemented a new supplier portal since 2020
that can conduct evaluations and share information andsustainability practices. By means of dedicated questionnaires of
up to around 300 questions, this portal assesses implementationof the Kering Standards across the supply chain, environmental
performance and suppliers’ social performance.

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3.4 Control measures
As noted above, Kering and the Houses are strongly committed to
fully complying with the requirements set forth by the Duty ofCare Law and to fostering a significant number of initiatives
aimed at respecting human rights and protecting theenvironment throughout their operations and the supply chain.
In this respect, Kering works in close synergy with its Houses toensure that relevant controls are adequately deployedthroughout the entire Group.

3.4.1 Key Internal Stakeholders
Kering takes a cross-functional governance approach to
upholding human rights and protecting health, safety and theenvironment. Specifically, day-to-day human rights andenvironmental governance spans various departments at Keringand House levels.
Kering Compliance Department. The Group ComplianceDepartment is primarily responsible for monitoring the effective
implementation of the commitments established by the Kering
Human Rights Policy. As such, the Group ComplianceDepartment is kept informed of relevant initiatives andcoordinates the efforts undertaken by relevant departments at
the Group and House level (including through information
sharing). The Group Compliance Department also tests andassesses existing processes to map risks throughout the Group,and supports the Houses and relevant Kering departments inassessing risks associated with their day-to-day operations. The
Compliance departments provide day-to-day support inconnection with the operations of each House.
Kering Sustainability Department. The Group Sustainability
Department is responsible for defining and implementing theGroup’s sustainability strategy and policies and supporting theHouses with respect to their implementation. The Kering
Sustainability Department is composed of around 50 specialists
who report to the Chief Sustainability and Institutional Relations
Officer, who is both a member of the Group’s Executive
Committee and Chair of the Group’s Ethics Committee. Overall,more than 100 employees focus on sustainability issues within
the Group’s Sustainability Department, the Houses’
Sustainability teams and dedicated structures such as theMaterial Innovation Lab and the Jewellery Innovation Lab.
Kering Human Resources Department. The Human Resources
Department is responsible for implementing controls to upholdhuman rights within the Group. This applies throughout theentire employee journey, including the recruitment process andworking conditions, as well as in respect of employee health. A
dedicated Inclusion and Diversity team within the Human
Resources function works with the Group Houses to define andprioritize the initiatives that foster an inclusive working
environment at all levels of the organization. In 2020, Inclusion &Diversity Committees were created in each House and at thecorporate level, led by a member of the House or of the Corporate
Management Committee. These committees currently have morethan 90 members. To embed the Inclusion and Diversity strategy
more firmly at regional level, three Inclusion and Diversity
managers were appointed in 2022 at the Americas, APAC and
EMEA regions.

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Kering Internal Audit Department. As discussed at greater
length at the beginning of this chapter, the Group Internal Audit
Department assesses the implementation of the Kering internal
controls system within the Group’s internal operations byperforming regular audits in accordance with the Group’s annual
audit plan.
Kering Security Department. The Security Department’s
responsibilities include implementing the safety measures set
out in the Kering Global Safety Policy and verifying compliancewith applicable safety regulations.
Kering Supply Chain Audit Department. As noted above, theKering Supply Chain Audit Department conducts regular socialand safety audits to assess and monitor the Group’s supply chain
operations and oversees the performance of audits with thesupport of third party firms.
Product Compliance Department. The Kering ProductCompliance Department assists the Houses with testing
substances in products, including through a dedicated testing
center that the Group recently opened in Florence.
House teams. Every House in the Group has dedicatedCompliance, Sustainability, and Human Resources teams
responsible for verifying that the controls established by the
Kering policies and procedures described below are properly
deployed throughout their operations.

3.4.2 Key Policies and procedures
Kering’s subsidiaries, suppliers, and subcontractors are required
to strictly abide by local legislation and to comply with thepolicies and procedures summarized below. Should thesepolicies and procedures set forth more stringent standards thanthose established by local legislation, such standards must takeprecedence.
Code of Ethics. As noted above, the Code of Ethics forms thecornerstone of Kering’s ethical commitments and, as such,includes the Group’s engagements in upholding human rights,
fundamental freedoms, health and safety, and the environment.
Building on this platform, the Suppliers’ Charter lays down thestandards and commitments expected of these third parties.
Compliance with the Charter constitutes an essential condition of
any commercial relationship between the Group or the Houses
and their suppliers, which are in turn required to extend theserequirements to their own suppliers and subcontractors.
Following the 2018 update to the Code of Ethics, the document
was reissued to all Group employees worldwide in 2019. Thisupdate reaffirmed Kering’s commitment to apply all majorinternational conventions to its activities and to tighten up andclarify what is required of its suppliers. For example, theSuppliers’ Charter now includes a requirement to pay special
attention to certain categories of workers, such as migrant
workers, who are vulnerable to exploitation. The Code of Ethics
and the Suppliers’ Charter have been translated into the 14 mostwidely spoken languages within the Group.
Human Rights Policy. The Human Rights Policy, published in
2021 and available in French, English, Italian and Chinese, defines
the Group’s commitments on human rights and fundamental
freedoms, health and safety, and environmental protection. The
Human Rights Policy further outlines the Group’s policies related
thereto and defines the means by which the Group and its
business partners, including suppliers and contractors, can fulfill
these commitments.

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Sustainability Principles. The Sustainability Principles, createdin 2015 and updated in 2023, are applicable across all Houses andcover three main areas: social aspects regarding human rights,
environmental aspects, and aspects regarding the sourcing of
raw materials and packaging. Suppliers are required to abide bythese principles and supplier compliance is evaluated on thisbasis. The principles are outlined in the Sustainability chapter
and on the Group’s website.
Kering Standards and Guidance for Sustainable Production.
In the pursuit of its commitment and approach to human andenvironmental concerns, Kering has published dedicatedstandards on raw material sourcing and manufacturing
processes. Under its 2025 strategy, Kering is committed to seeingthat all its suppliers apply these standards by 2025. A detailed
description of the Kering Standards is provided in the
Sustainability Chapter. These standards now include guides to
products not intended for sale, logistics and circularity.
Kering Animal Welfare Standards. The Group published in2019 and updated in 2021 its animal welfare standards with theaim of ensuring the best possible treatment for all species
throughout the supply chain. The Kering Animal Welfare
Standards are the first ever set of full standards for the Luxury
and Fashion sectors and aim to drive positive change in practices
in industry and beyond. For each of these species, the Standards
highlight the specific challenges, laying down farming,
transportation, and slaughter requirements, and provide the listof existing benchmark certifications. These standards also
include guidelines for slaughterhouses.
Environmental Policy. Kering’s Environmental Policy, which
was updated in 2023, contributes to the fulfillment of the Carepillar of Kering’s 2025 sustainability strategy. It spans the entire
supply chain of the Group’s operations and focuses on thefollowing objectives: (i) a 40% reduction in absolute terms in
Scope 1, 2 and 3 greenhouse gas emissions by 2035 with respect
to 2021; (ii) 100% alignment with the Kering Standards by 2025;
and (iii) 100% traceability through to the country of origin for theGroup’s main raw materials by 2025.
Climate Strategy. Kering firmly believes that companies canplay a decisive role in the fight against climate change, and drew
up in 2021 a holistic strategy with a clear commitment to a 1.5 °C
pathway, underlining its ambitions in sustainability, circularityand biodiversity. The key elements of Kering’s Climate Strategy
include: (i) a 90% reduction in absolute terms of Scopes 1 and 2
greenhouse gas emissions by 2030 from a 2015 baseline; (ii) a
70% intensity reduction (tCO2/ €. million in gross margin) in
Scope 3 greenhouse gas emissions by 2030 from a 2015 baseline;(iii) an absolute reduction of 40% in Scopes 1, 2 and 3 greenhousegas emissions by 2035 from a 2021 baseline; and (iv) contributing
to carbon neutrality (net zero) by 2050 in line with the ambitionsof the Paris agreement. More information on Kering’s Climate
strategy can be found in the Sustainability Chapter.

Biodiversity Strategy. The Biodiversity Strategy, published in
2020, explains Kering’s approach on preserving natural
resources. This four-stage approach (avoidance, reduction,
restoration/regeneration and transformation) has three main
goals: (i) to stem the loss of biodiversity, (ii) to rebuild ecosystems
and rehabilitate species, and (iii) to drive systemic change
throughout the supply chain and beyond. Kering’s Biodiversity
Strategy was updated in 2023 with greater emphasis being
placed on various points including the policy of combating
deforestation and converting ecosystems. More information on
the Biodiversity Strategy can be found in the Sustainability
Chapter.
Circularity Ambition. Published in 2021, the Group’s Circularity
Ambition plan aims to demonstrate that moving away from theconventional model of "take – make - waste" is not only about
recycling. Transitioning to a truly circular economy requires acomplete rethink of the way we produce and use resources aswell as the way we extend the life of products. Kering’s "Coming
Full Circle" approach is built on three main elements: (i) Luxury
that lasts; (ii) regenerative sourcing and clean production; and(iii) making production processes more efficient.
Kering Standard for Stores - Store Planning and Construction& Store Operation and Management). Kering has developed
standards for stores that set out expected performance levels in
11 key areas (including energy management, lighting, renewableenergy, water use and waste treatment). The standards provide
specific guidelines covering the environmental efficiency at allphases in a store’s lifecycle, namely site selection and relations
with the lessor, design, construction or renovation, andoperation. These standards serve as a reference for new storesand store renovations where the use of Leadership in Energy andEnvironmental Design (LEED) or equivalent certifications is notpossible.
Fashion Models Charter. The Fashion Models Charter was
introduced in September 2017 to ensure that Kering and its
Houses comply with various major principles, including requiringmodels to present valid medical certificates attesting to their
good health, discontinuing the modeling of size 32 clothes for
women and size 42 for men, and improving working conditions(e.g., providing a dedicated changing area as well as food anddrinks). Under this Charter, Kering and its Houses havecommitted to only hire models aged 18 and over to represent
adults at fashion shows and photo shoots.
Health & Safety Policy. Kering’s Health & Safety Policy
addresses its own employees, service providers, and visitors toGroup sites, so as to promote best practices, assert the Group’scommitment to an environment conducive to employee healthand safety, and undertake ambitious measures in this respect.
This policy updated in 2023 is founded on Group-wide bestpractices and aims to ensure that governance, processes, andregular internal audits are in place to achieve Kering’s target ofzero accidents.

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Compliance Manual. The Compliance Manual was issued Groupwide in 2018. It sets out practical examples on the main ethics
risks associated with Kering’s operations, including with respect
to human rights violations. The Manual outlines the basic
concepts and legal challenges involved and gives practicalexamples enabling employees to pinpoint areas requiring
vigilance in their day-to-day work.
These policies and procedures back up the other documents
adopted by the Houses in the relevant area.

3.4.3 Risk Prevention and Mitigation
Measures in the Internal
Operations
Raising Employee Awareness. Kering seeks to ensure that its
employees throughout the Group are fully acquainted with its
policies and procedures (including with respect to human rights,
sustainability and environmental protection) through regulartraining, internal communications, workshops and events. The
training offer includes the annual Ethics and Compliance elearning, with modules covering different ethics, compliance andsustainability-related topics, mandatory for all Group employees.
In 2023, this training encompassed human rights, the fightagainst corruption, wellbeing at work, diversity, energy savings
on a daily basis to combat global warming and sustainability.
This training framework also includes the Kering Standards elearning program, available to employees since 2019. These help
employees gain a better understanding of Kering’s strategy to
reduce the environmental and social impacts arising from its raw
materials and manufacturing processes.
In addition, Kering and its Houses also share their commitment
towards sustainability through the company social networks andharness them to organize Group-wide events, celebrate
recognized initiatives, such as the World Environment Day andraise employee awareness on environmental issues. To this end,
they created The Kering Planet, a dedicated digital platform thatraises awareness and provides regular information for employees
about sustainability issues. It features interactive tools, such as
quizzes and challenges. Kering is keen to update the knowledgeof its employees and also held several Climate Fresk workshop
sessions for its employees and those of its Houses in France andaround the world. Over 300 people were trained in 2023. For the
first time in 2023, Kering also organized Atelier 2tonnes
workshops.
Sustainability Certifications. Building on the Group’scommitment to comply with the highest social andenvironmental standards, a number of entities and sites owned
by Kering and its Houses have obtained a significant number ofsustainability certifications. These include the SA8000 (working
conditions and social standards), ISO 14001 (environmental
performance), ISO 45001 (health and safety), ISO 9001

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Certifications related to the implementation of environmental
management systems are applied for primarily for the sites thathave a more significant environmental impact, such as logistics
centers and tanneries. All of the Group’s tanneries have been
ISO 14001 certified since 2019.

3.4.3.1 Key Control Measures Designed
to Prevent Severe Impacts on
Human Rights and Fundamental
Freedoms
No Child Labor/Forced Labor. Kering and its Houses reject all
forms of child labor, forced labor, and human trafficking. The
Group has put in place recruitment processes designed to upholdrelevant legal requirements (including with respect to theemployment age) and prevent human rights abuses. To that end,
employees from the Human Resources function received special
training to ensure that such processes are fully implemented.
Promoting Inclusion and Diversity and Preventing
Discrimination. Kering believes that diversity is a source of
creativity and innovation and seeks to develop an inclusive
approach to ensure that everyone has the opportunity to bethemselves. Kering is also committed to fostering a culture ofequality at all levels of the Group and offering its employees anopen and stimulating working environment, free from any
discrimination. Kering launched the Baby Leave policy in January
2020. It entitles all employees worldwide to 14 weeks’ leave onfull pay upon becoming parents, including fathers and partners.
The Baby Leave policy aims to promote a better balance between
employees’ professional and personal lives and to achieveequality between female and male employees - regardless of
their personal situations – guaranteeing all Group employees
worldwide the same minimum benefits on a child’s arrival. Since
2019, the Inclusion and Diversity team has been instrumental in
adopting initiatives to foster a culture of diversity and inclusion
throughout the Group. More specifically, this team has (i)supported the creation of Inclusion and Diversity Committees ineach House, (ii) developed and delivered a comprehensive
Inclusive Recruitment training course for recruiters from all
Houses, and (iii) developed several initiatives to raise awareness,encourage meaningful conversations, and bring positive change.
Under its multi-generational inclusion policy, Kering signed in
March 2022 its first inter-company engagement agreement
covering the role of employees aged over 50 in the Group. In April
2022, it followed this up with a partnership charter on providing
access to employment for young people, vulnerable adults andpeople living with a disability and supporting them in the labormarket.

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Promote Equality and Diversity. Empowering women is apriority at Kering, which seeks to ensure that women are well
represented at all levels of management in the Group. In 2010,
Kering was one of the first signatories of the Women’s
Empowerment Principles Charter drawn up by UN Women andthe UN Global Compact. Kering and its Houses develop women’s
skills through specific programs, such as leadership training,coaching and mentoring sessions to support women talents andenhance gender diversity in senior management positions. Kering
is closely monitoring the representation of women in executive
positions and is committed to achieving gender pay equity at
every level of the organization. In 2022, Kering launched its
Women in Luxury internal network in France to foster genderequality and empower women within the Group. In 2023, thenetwork expanded to Italy, China, South Korea, Japan, Singapore
and the United States. Also in 2023, the Human Resources teams
carried out an externally accredited study to identify and analyze
pay gaps between men and women.
Free from Harassment and Violence. Kering endeavors toprovide a working environment free from any form of harassmentor violence. As such, Kering and its Houses encourage all
employees to report any instances of such behavior, which is
subject to disciplinary sanctions and, in many countries, criminal
proceedings. Kering ensures that its employees are perfectly
aware of their rights in this area. In an effort to extend its
commitment externally, Kering also supports victims of domestic
violence via its Policy on Domestic Violence and the work of theKering Foundation. And the Kering Foundation supports women
impacted by violence, through partnering with survivor-centeredservices, and local experts, while implementing preventive
programs with young people to deliver real change.
Increased Dialog with Employees. Kering is fully committed toguaranteeing applicable trade union rights and to engaging in aconstant and productive dialog with its employees worldwide,
including with those located in countries that do not allow
collective bargaining. Kering conducts the Kering People Survey
every two years. The latest edition in 2023 gathered employees’
feedback on their working environment confidentially andsecurely. Based on feedback received, Kering develops a Groupaction plan that is adapted at each House and local level. Kering
also conducts local actions to increase awareness and foster the
adoption of wellbeing policies.
Decent Working Conditions. Kering and the Houses seek toensure that the work of employees is adequately remunerated
and conducted in compliance with local legislation, including
with respect to working hours. As such, the Group partnered with
Fair Wage Network to conduct a study to evaluate whether thebase salary of the Group’s employees provides an adequate

standard of living in the key countries where Kering operates.
Kering has also adopted an array of initiatives designed toprotect the mental wellbeing of employees, including optional
free external psychological support services.
Supporting Local Communities. Kering plays a role in the life of
the communities where its sites are located and works to preventand mitigate any negative impacts that its operations create or towhich they contribute. In this respect, Kering is actively engaged
in safeguarding artisan traditions and the communities that
support artisans. Kering has implemented special programs tokeep alive century-old craftsmanship and local traditions.
Brioni’s Scuola di Alta Sartoria, Bottega Veneta’s Accademia Laborand Ingenium, Gucci’s ArtLab, and Pomellato’s Galdus Goldsmith
Academy are among these programs.

3.4.3.2 Key Control Measures to Prevent
Severe Harm to the Healthand Safety of Individuals
Safe and Hygienic Working Conditions. Kering is committed tothe principle of risk prevention and seeks to safeguard theoccupational health and safety of its employees by complying
with all applicable regulations and by establishing relevant bestpractices. The Kering Security Department is responsible formanaging the security of Group sites, preparing emergency plansand delivering safety training to employees. Kering, Gucci and
Bottega Veneta also obtained SA8000 and ISO 45001 certification
covering occupational health and safety management systems.
These accreditations aim to reduce occupational injuries anddiseases and promote and protect employees’ physical andmental health.
Minimizing Chemicals/Hazardous Substances. Kering works
constantly to curb the use of chemicals and hazardous
substances in all its Houses’ products and production processes.
For this purpose, the Group has created two lists of restricted
substances: one for production processes, the Manufacturing
Restricted Substance List ("MRSL"), and one for products, theProduct Restricted Substance List ("PRSL"). The MRSL is focusedon discontinuing the use of dangerous chemicals in
manufacturing processes to both avoid the exposure of
employees to hazardous substances, and reduce toxic discharges
into water. The main source of the Group’s hazardous waste
production is related to the operations of its tanneries. As such,
the Group is actively involved in researching and developing
environmental-friendly tanning processes, and has introduced aheavy metal-free tanning method in leather tanneries.

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3.4.3.3 Key Control Measures Designed
to Prevent Serious Environmental
Damages
Environmental Profit & Loss. Since 2012, Kering has measured
and quantified its progress towards becoming a more sustainable
Group through its EP&L. The EP&L allows the Group to measure
its impacts on natural capital right across its value chain and toassign a monetary value to them. The EP&L, the cornerstone of its
environmental approach, also serves as a compass guiding
Kering’s roadmap for the coming years in terms of sourcing
strategy, choice of materials, and production and transformation
processes. In 2020, Kering also extended the scope of its EP&L to
include the product use and end-of-life phases. In April 2022, theGroup announced it had lowered the EP&L intensity of its own
activities and its supply chain by 40% in 2021 relative to 2015,
reaching its target four years earlier than scheduled. In line with
its commitment to transparency, the Group’s EP&L results and ananalysis of progress made are available on the open-source
platform kering-group.opendatasoft.com. In 2022 and 2023,
Kering published its EP&L impacts in euros and also its premonetization monitoring indicators. More specifically, it provided
information including the Group’s overall footprint in terms ofgreenhouse gas emissions, land use, waste production and wateruse. In addition, one of the Group’s Statutory Auditors issued alimited assurance report in February 2024 on selected
information concerning the 2023 EP&L.
Reducing Carbon Emissions. The Group has set itself carbon
footprint reduction targets and laid down an ambitious Climate
Strategy over the short, medium and long-term (2030, 2035, withthe goal of a 40% reduction in the absolute value of its Scope 1, 2
and 3 greenhouse gas emissions relative to 2021 and a goal ofcontributing to the carbon-neutral objective out to 2050). As partof the Fashion Pact, Kering and over 160 global fashion brands
have committed to take action to halt climate change, restore
biodiversity and protect the oceans. The other participatingcompanies have undertaken, among other things, to take action
to achieve the objective of net-zero greenhouse gas emissions by
2050, in order to keep global warming below 1.5 °C between now
and 2100. The same objectives have been set under the Watch &Jewellery Initiative launched by the Group and Cartier in 2022. Aspart of these commitments, Kering continues its offsetting
program fully covering its 2023 Scope 1, 2 and 3 (calculated via
the EP&L tool - excluding product use and end of life) greenhousegas emissions released in 2023 amounting to 2,135,568 tCO2. The
carbon credits were acquired from forestry and mangrove
protection and reforestation projects and follow Kering’s internal
guidelines based on VCMI (Voluntary Markets Integrity Initiatives)
best practices. Not only does this generate carbon credits, it also
provides substantial support for local populations and theprotection of biodiversity.
Favoring Renewable Energies. In 2022, Kering reached its
objective of using 100% renewable energy in every country where
this is possible, in line with the RE100 guidelines. Kering alsofavors entering into agreements to purchase locally produced
green electricity. Where this is not possible, Kering purchases
Energy Attribute Certificates. On top of external purchases, theHouses continue to increase their reliance on renewable energy,
for example by installing solar panels. In addition, the Group
undertakes to systematically secure certification for its new
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purposes. LEED is the preferred certification system selected by
the Group, but it also applies other certifications, like HQE(France) and BREEAM, for projects. More than 300 LEED
certifications had been obtained by Kering and its Houses fortheir sites and stores by the end of 2023.
Monitoring Energy Use. While constantly seeking to maximize
the energy efficiency of its sites, Kering has implemented anenergy consumption monitoring system which allows the Houses
to access monthly consumption data for their sites on an IT
platform. The system also streamlines the energy procurement
process by pooling and consolidating energy consumption, andincreases the use of renewable energy.
Waste Treatment. Kering and its Houses have created dedicatedpartnerships to find sustainable solutions for waste recycling inan effort to minimize the waste generated by the Group’s
operations, particularly in the retail sector. In addition, as themain source of the Group’s hazardous waste production occurs in
its tanneries, each tannery has its own onsite wastewater
treatment plant, which pretreats all wastewater.
More Sustainable Packaging. Kering and its Houses make every
effort to opt for the most sustainable solutions available madefrom recycled or certified biosourced materials. They also carryout initiatives to reduce the use of packaging while maintaining
an optimal level of protection for the goods manufactured. In
2020, Kering developed a new packaging standard setting out theeco-design principles to improve its environmental impact of
packaging materials. In the same vein, Kering has pledged toeliminate single-use plastics from its packaging for customers
and business partners by 2025 and 2030, respectively.
Reducing Water Consumption. Kering aims to reduce theconsumption of water in its operations: 68% of water consumed
across the Group is used for domestic purposes and 32% forindustrial purposes. The water consumed by the Group forindustrial purposes relates primarily to tanneries. However, theHouses have continued to work to identify innovative tanning
processes that eliminate heavy metals and use less water.
Protecting Biodiversity. Kering is committed to preserving
biodiversity through several conservation and regeneration
programs for natural ecosystems. As noted above, the Group has
formulated a Biodiversity Strategy, which aims to stem the loss of
biodiversity, rebuild ecosystems, and rehabilitate species as wellas to drive systemic change throughout the supply chain andbeyond. Pursuant to its commitments, Kering will regenerate amillion hectares of natural ecosystems in its supply chains.
Alongside the soil regeneration programs already launchedseveral years ago in French Guiana, Mongolia and South Africa,
Kering set up the Kering Regenerative Fund for Nature in 2021. Inpractice, the Fund makes grants to groups of farmers, projectsponsors and NGOs looking to develop regenerative raw
materials (cotton, wool, cashmere, leather) and to connect themup with fashion and luxury houses’ supply chains. To date, theFund has selected seven projects in six different countries. Kering
has also undertaken to protect one million hectares of criticaland irreplaceable habitats outside of its supply chain by 2025,
primarily through programs that deliver a positive impact forbiodiversity protection, carbon sequestration and improved
livelihoods for local communities. In late 2022, Kering launched
the Climate Fund for Nature, which invests in nature-based
solutions, to achieve this goal.

Risk management and internal control
2023 Duty of Care Plan

3.4.4 Risk Prevention and Mitigation
Measures in Supply Chain
Operations
Raising Awareness among and Guiding Suppliers. Kering andits Houses conduct with multiple awareness-raising initiatives for
suppliers, putting them in a position to comply with the highest
social and environmental standards. For instance, the Kering
Material Innovation Lab has daily interactions with ready-to-wear
and accessories suppliers to promote compliance with the Kering
Standards. Since 2020, Kering has been using a new supplierportal, which can be accessed online. This portal is a tool for
conducting evaluations and sharing information andsustainability practices. Kering Eyewear has also invited its
principal Italian suppliers to a sustainability-focused training day.
Sustainability Certifications. Multiple Kering and House
suppliers have obtained third party sustainability certifications
covering environmental and social standards, among otheraspects. Kering regularly compares the standards underpinningthese certifications with those laid down by its Sustainability
Principles and Kering Standards so it may determine which
certifications are aligned with them and those that cannot be
accepted.

3.4.4.1 Key Control Measures to Prevent
Severe Impact on Human Rights
and Fundamental Freedoms
No Child Labor/Forced Labor. Kering and its Houses prohibit all
forms of child labor or forced labor throughout the supply chain
and consider them breaches for which they have zero tolerance,
leading to immediate termination of the supplier relationship. As
such, the audits performed as part of the Hercules management
system include various measures to identify potential instancesof child labor or forced labor. As part of its drive to detect any
unfair working practices, the Kering Supply Chain Audit
Department performs a periodic analysis on suppliers to assess
the cost of their work per minute, with any anomalies leading totargeted investigations.
Promoting Inclusion and Diversity and Preventing
Discrimination. Kering and its Houses expect their business
partners to respect and promote equal opportunity andtreatment at work and to create an inclusive workplace. In
addition to the commitments included in the Sustainability
Principles, the audits performed as part of the Herculesmanagement system also review potential instances of
discriminatory practices within the operations of suppliers. In
collaboration with the Camera Nazionale della Moda and three
specialized organizations (BSR, Wise Growth, and Valore D),
Kering and its Italian Houses issued practical recommendations
on enhancing gender equality in the Italian Luxury sector supply
chain following an extensive study that investigated challenges
faced by women in this supply chain. This study covered morethan 180 suppliers and surveyed 880 people (70% women) on

gender equality via in-person interviews and questionnaires. Fourpriority focuses were identified during the study: (i) "working
conditions and economic opportunities," (ii) "leadership andcareer advancement," (iii) "motherhood" and (iv) "workplace
conduct and harassment". The second stage of the projectfocused on implementing the recommendations by raisingawareness of the four priorities identified. Kering also worked ona project focused on empowering women around gold mines in
Ghana using tools such as micro-loans and skills training, andworked on a project to support 150 cotton farmers in India
through community education on women’s rights, education andhealth and safety.
Free from Harassment and Violence. Kering and its Houses
expect their suppliers to treat employees with dignity and respect
and to prohibit physical punishment, mental or physical coercion
or verbal abuse. As such, suppliers and sub-suppliers must notengage in any conduct that is offensive, abusive, demeaning,
intimidating or threatening, such as verbal abuse, negative
stereotyping, unwelcome contact or unwelcome sexual advancesor requests for sexual favors.
Increased Dialog. Kering and its Houses expect their business
partners to engage in open and constructive dialog with workers
and their representatives and to respect the right of workers toform and join organizations of their own choosing and bargain
collectively. In addition to the commitments included in the
Sustainability Principles, the audits performed as part of the
Hercules management system cover the freedom of associationand the right to collective bargaining among other rights.
Decent Working Conditions. Kering expects its suppliers to pay
their employees no less than the minimum legal standard or theappropriate prevailing industry standard, whichever is higher.
Kering is committed to ensuring that workers in its supply chain
are fairly compensated for their work. Kering expects business
partners to comply with applicable regulations regarding
working hours, which should not exceed 48 hours per week.
Wages and working hours are also checked during the audits
performed as part of the Hercules management system, which
covers wages and working hours as well as subcontracting andthe risk of illegally using subcontractors that underpay workers.
Among other initiatives, the Group is actively involved in the
Utthan project in India, which aims to empower embroidery
artisans, in particular by working on the areas of a living wage
and working hours regulations.
Protecting Against Local Community Abuses. Kering and its
Houses are committed to respecting and actively contributing to
the economic and social development of the local communities
impacted by their operations worldwide. In this respect, Kering
undertakes to avoid forced evictions and population
displacements linked to its operations. Kering and its Houses
encourage their suppliers and sub-suppliers to build aconstructive relationship with local communities, and requirethem to source raw materials in strict accordance with the Kering
Standards and the Sustainability Principles.

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3.4.4.2 Key Control Measures to Prevent
Severe Harm to the Healthand Safety of Individuals
Safe and Hygienic Working Conditions. Kering and its Houses
expect their business partners to create a healthy and safe
working environment through the implementation of
appropriate effective measures to avoid jeopardizing the healthand safety of workers in the workplace. For example, suppliers
are obliged to provide relevant employees with the personal
protective equipment required under the applicable regulations
free of charge and to offer them training on relevant safety
standards and procedures they must follow. Employees should
also have free access to clean toilet facilities and potable water.
The audits performed as part of the Hercules management
system expressly cover select issues dedicated to the review ofhealth and safety practices within the workplace.
Minimizing Chemicals/Hazardous Substances. As noted
above, Kering is committed to phasing out and eliminating all
hazardous chemicals from its production processes. The Group’s
chemical management framework goes beyond regulatory
requirements and includes specific guidelines, the PRSL and
MRSL lists described above, that identify restricted substances
within products and production processes. Kering requires all
suppliers and sub-suppliers to strictly comply with thisframework and to report any non-compliance. Action programs
and specific checks are carried out to ensure compliance withthese requirements.

3.4.4.3 Key Control Measures Designed
to Prevent Serious Environmental
Damages
Environmental Profit & Loss. As noted above, the EP&L is thecornerstone of the Group’s environmental approach and allows
Kering and its Houses to measure their environmental impact
throughout the supply chain. Suppliers and sub-suppliers areinvited to share with Kering and its Houses information on factors
including atmospheric emissions, energy use, land use, waste
production, water use and water discharge. As stated previously,
the Group announced in April 2022 that it had achieved the targetof a 40% reduction in the carbon intensity of its EP&L in 2021, four
years ahead of schedule.
Sourcing of Raw Materials. The Group’s EP&L clearly showsthat most of the environmental impact linked to products’
lifecycle and marketing (86%) arises upstream of its supply
chains through the production of raw materials and their initialtransformation process (Tiers 3 and 4, 74%). In 2023, Kering
traced 97% of its key raw materials back to their country of origin
at least, and even further for animal-based materials (leather,and precious skins). By 2025, Kering aims to achieve 100%
traceability of its key raw materials at least as far as the countryof origin and make certain that these are fully compliant with the
Kering Standards so it can further reduce its environmental
footprint. Kering scale up an internal purchasing platform to haveaccess to high quality, sustainable raw materials following the
success of the Kering Precious Metals Platform. At the Houses'
level, Kering Eyewear has developed a data-sharing platform for
purposes that include enhancing visibility and traceability rightacross its supply chain. Saint Laurent and Balenciaga are
currently rolling out other tools for improving the traceability ofleather and textiles.

— 324

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Reducing Carbon Emissions. As stated previously, the Group
continues to offset its greenhouse gas emissions. In 2023, Kering
voluntarily offset its Scope 1, 2 and 3 (calculated via the EP&L tool
– excluding product use and end of life) greenhouse gas
emissions amounting to 2,135,568 tCO2 in 2022. The carbon
credits were acquired from forestry and mangrove protection andreforestation projects and follow Kering’s internal guidelines
based on VCMI (Voluntary Markets Integrity Initiatives) bestpractices.
Waste and Packaging. Moving away from the conventionalmodel of "take – make - waste" is not only about recycling.
Transitioning to a truly circular economy requires a complete
rethink of the way we produce and use resources as well as theway we extend the life of products. As such, Kering released areport in 2021 presenting its new circular economy goals andhelped formulate the Ellen MacArthur Foundation’s vision forcircular fashion, published in October 2020 to unite the sector
around a common frame of reference and definitions. As regards
materials used, the Kering Standards allow the Group’s Houses to
identify sourcing preferences – recycled, bio-sourced or certified– by material. As stated above, in line with the Group’s Circularity
Ambition, the Kering Standards now include a section on
products’ end of life in order to promote a circular economy. In
addition, the Material Innovation Lab provides House design
teams with a pool of sustainable and innovative materials andassists them in the selection of circular materials. Kering also
participates in the Clean by Design program to have the Houses
propose free environmental related audits to suppliers, aimed at
improving their environmental-related practices, especially at
reducing waste and emissions. Finally, the audits performed aspart of the Hercules management system also investigate waste
management practices of suppliers, including recycling practices.
Animal Welfare. Kering requires that its suppliers capture, farm,transport, handle and slaughter animals in compliance withapplicable local animal welfare, social, environmental andanimal welfare laws and regulations. In terms of animal welfare,
Kering has published its Standards for all animal species present
in its supply chains. It also released standards covering cattle,
sheep and goats, among others, which account for a particularly
sizable proportion of the leather supply chain. Taking its
commitment to animal welfare to the next level, Kering decided
that all of its Houses’ collections would be fur-free starting from2022. Kering’s teams and those of its Houses make numerous
visits to farms and have continued to engage actively with thevarious potential and existing suppliers to assess and assist themin improving their sustainable environmental, biodiversity, andanimal welfare management practices. The Group also continued
to roll out its action plan for verifying the alignment of the Kering
Standards with practices in its exotic skin supply chains. The
assessment is carried out with specific programs for each supply
chain, taking into account the characteristics of each animal
species and each type of supplier. In this respect, it is worth
noting that the Group and its Houses comply with national andinternational legislation and regulations on the trade of precious
skins: all skins of species listed as endangered or vulnerable by
the Convention on International Trade in Endangered Species("CITES") are obtained with certificates attesting to their legal
origin, issued by CITES and the export authority, to ensure that
trade does not threaten endangered species.

Risk management and internal control
2023 Duty of Care Plan

Protecting Biodiversity. As noted above, as part of its
biodiversity strategy updated in 2023 to strengthen its policy oftackling deforestation and converting ecosystems, Kering has
committed to achieving a net positive impact on biodiversity by
2025. To achieve this, Kering has agreed to protect one million
hectares of essential and irreplaceable habitats outside of its
supply chain, and facilitate through the Regenerative Fund for
Nature the transition to regenerative agricultural practices on an
additional one million hectares in areas where raw materials
entering Kering’s supply chain are extracted. In addition, theHouses avoid sourcing materials with known negative impacts on

the environment, particularly in areas of critical ecologicalimportance. As specified in the Kering Standards, this includes
ensuring that supplies are all sourced from materials that do notcause deforestation as well as ensuring that materials adhere
closely to the guidelines as published within the framework of
CITES. When impacts are inevitable, Kering and its Houses strive
to reduce negative impacts on the environment by sourcing
materials from preferred sources as defined in the Kering
Standards, which list recommended third party certifications in
our supply chains guaranteeing low-impact agricultural
practices, such as organic farming for instance.

3.5 Whistleblowing system
Introduced in 2005, Kering’s whistleblowing system wasenhanced initially in 2013 with the creation of two regional Ethics
Committees (Asia-Pacific and Americas), supplementing theGroup Ethics Committee established in 2005, and further
strengthened in 2018 to ensure compliance with France’s Duty ofCare Law and Sapin II Law. The whistleblowing system was
updated to satisfy the requirements introduced under the
Waserman Law no. 2022–401, with further enhancements being
made continuously. The whistleblowing system is accessible toall Group employees, external and temporary staff and to theemployees of any service provider or external partner with acontractual relationship with the Group and/or its Houses. Once
the whistleblowing system was opened up to all suppliers andservice providers, these third parties were informed accordingly.
Kering is fully committed to keeping the identity ofwhistleblowers and the information they provide strictly
confidential. It prohibits retaliatory action of any kind from being
taken against those who blow the whistle in good faith. The
Group’s whistleblowing procedure in force is laid down in full in

the Kering Code of Ethics, which is publicly available on theGroup’s website.
Kering is committed to ensuring that all the information provided
by whistleblowers, including about the implementation of the
Duty of Care Law, should be properly addressed and adequate
measures taken to remedy the allegations, if they prove to bewell founded.
In 2020, Kering undertook an extensive communication
campaign notably designed to remind the employees of its direct
suppliers of its whistleblowing system and how to use it. The
campaign was translated into 15 languages and took two forms:(i) a poster displayed in relevant locations at supplier and service
provider sites, to gain the greatest visibility (cafeteria, locker
rooms, site entrance, etc.) and (ii) a flyer to be given directly toemployees. This campaign has been updated in 2021 to target
newly enlisted suppliers. More information on the roll-out of thiscampaign can be found in the Sustainability Chapter.

3.6 Monitoring system designed to assess the effectivenessof the controls in place
In line with the cross-functional adopted by Kering to achieve a
better grasp of the challenges involved in upholding humanrights and protecting the environment, the Executive Committee,
together with other Group-level committees, oversees
implementation of the various measures set out above. These
committees include the Sustainability Committee and the Audit
Committee, and the Chief Audit Executive, the Chief People
Officer and the Chief Sustainability and Institutional Relations
Officer report to them regularly on implementation of existing
controls. A dedicated committee also oversees deployment of the
Hercules management system.
As noted above, Kering periodically updates its risk map toconstantly review the controls designed to mitigate risks relevantto the Duty of Care Law. In addition, overall implementation of
the action plans drawn up on the basis of the risk mapping
exercises is tracked and supervised by the Group ComplianceDepartment. The Department also conducts compliance reviews
to ensure that the Kering compliance-related policies andprocedures are properly implemented by Group entities andHouses. The Compliance Department also monitors human rights
and environmental rights in the highest-risk countries for its
operations and supply chain.

A number of other functions at the Group level, including the
Sustainability Department and the Human Resources
Department, also support the Houses with implementing Kering’s
policies and strategies. The implementation of the Kering internal
control system within the Group’s internal operations is assessedat regular intervals by the Group Internal Audit Department
through the internal audits performed under the Group’s annual
audit plan.
As noted above, the Kering Supply Chain Audit Department
conducts regular supply chain audits designed to evaluate theimplementation of the Kering Sustainability Principles by theGroup’s suppliers, including in the areas of human rights, healthand safety and environmental protection. The most serious
anomalies detected during these audits are discussed andevaluated during these committee meetings attended by the
Supply Chain Audit Department and the relevant Houses toconsider what action to take concerning supplier relationships.
Dedicated follow-up audits, at intervals varying according to therisk profile and anomalies detected, are also arranged to confirm
whether the suppliers have put an end to these.

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3.6.1 Monitoring and Performance Indicators
Kering has also established tracking and performance indicators designed to enhance scrutiny and ensure the controls summarized
above are properly implemented.
Human rights
and Fundamental
Freedoms

Health & Safety

Environment

Reports— 326

Internal activities• 98% of Group employees worldwide completed
the annual Ethics & Compliance training in 2023
• Women represent 63% of employees, 57%
of managers, 56% of Board members and 42%
of Executive Committee members

Supply chain• 4,559 supplier audits completed in 2023,
including 2,616 global audits and 1,943 follow-up
audits• 32% of these audits carried out by Kering’s
Internal Audit team, and 68% by external
auditors• Breakdown of anomalies found and stillunresolved as of December 31, 2023: 78.3%
of observations; 19.6% moderately importantcompliance breaches, 1.6% serious compliancebreaches and 0.5% zero-tolerance issues• Breakdown by theme of the anomalies foundduring audits carried out as of December 31,
2023 (excluding observations): 70.9% Health &Safety; 14.6% Pay and working conditions; 6.6%
Environment; 4.0% Working hours; 3.9% Other• Following the audits carried out to date, 64.8%
of suppliers were rated compliant, 29.4% aspartially compliant, 4.6% as progress expected
and 1.2% as zero tolerance.
• In 2023, 288 lost-time accidents were recorded• A total of 49 suppliers saw their businessby the Grouprelationship terminated in 2023 due to• Accident severity rate: 0.12
unsatisfactory audit results• Scope 1 and 2 emissions under the GHG• Scope 3 emissions (excluding product use andProtocol: 22,841 tCO2e
end of life): 2,293,706 tCO2e• Scope 1 and 2 carbon intensity: 1.5 tCO2e• Scope 3 carbon intensity (including all Scope 3
per € million in gross margin
categories): 172.4 tCO2e per € million in grossmargin• 100% of the energy used by the Group isrenewable in all the countries where this is• 75% of raw materials aligned with Kering
possible, in line with the RE100 guidelines
Standards (2023)• 97% of traceability achieved for key raw
materials at least as far as their country of origin• First seven projects covering 840,000 hectares
selected for the Regenerative Fund for Nature• 65 reports sent to the Ethics Committee in 2023 (11 still pending as of December 31, 2023)• Principal reasons for the reports submitted in 2023: behavior and management• 55 investigations into the 65 reports submitted in 2023
• 16 Code of Ethics breaches in the 54 cases closed in 2023

KERING - 2023 Universal Registration Document

CHAPTER 6

Financial statements as of December 31, 2023
11.1
1.2
1.3
1.4
1.5
1.6

2-

Consolidated financial
statements
as of December 31, 2023
Consolidated income statement
Consolidated statementof comprehensive income
Consolidated balance sheet
Consolidated statementof changes in equity
Consolidated statementof cash flows
Notes to the 2023 consolidated
financial statements
Statutory auditors’ report on
the consolidated financial
statements

3-

328
328
329
330
331
332
333

392

Kering SA annual financial
statements
3.1 Balance sheet – Assets as ofDecember 31, 2023 and 2022
3.2 Balance sheet – Equity andliabilities as ofDecember 31, 2023 and 2022
3.3 Income statement
3.4 Statement of cash flows
3.5 Statement of changes in equity
3.6 Notes to the annual financial
statements
3.7 Other information
3.8 Five-year financial summary
4 - Statutory Auditors’ Reporton the financial statements
5 - Statutory Auditors’ Special
Report on regulatedagreements with third parties

396
396

396
397
397
398
398
410
412

413
417

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6

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

1 - CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2023
1.1 Consolidated income statement(in € millions)

Notes

2023

2022

4

19,566(4,639)20,351(5,153)

14,927(2,982)

15,198(2,830)(7,199)4,746(6,779)5,589

CONTINUING OPERATIONSRevenue
Cost of sales
Gross margin
Other personnel expenses

5

Other recurring operating income and expenses
Recurring operating income
Other non-recurring operating income and expenses
Operating income

7

(103)
4,643

(194)
5,395

Financial result
Income before tax

8

(410)
4,233

(260)
5,135

Income tax expense
Share in earnings (losses) of equity-accounted companies

9(1,163)
4(1,420)
2

3,074
2,983

3,717
3,613

91

104

Net income from discontinued operations
o/w attributable to the Group

–
–

1
1

o/w attributable to minority interests

–

–

3,074
2,983

3,718
3,614

91

104

10.1
10.1

2023
2,983
24.38
24.37
2,983
24.38
24.37

2022
3,614
29.34
29.31
3,613
29.33
29.30

10.1
10.2

3,061
25.02
25.01

3,747
30.42
30.39

Net income from continuing operations
o/w attributable to the Groupo/w attributable to minority interests

DISCONTINUED OPERATIONSGROUP TOTAL
Net income of consolidated companies
o/w attributable to the Groupo/w attributable to minority interests(in € millions)

Net income attributable to the Group
Basic earnings per share (in €)Diluted earnings per share (in €)Net income from continuing operations attributable to the Group
Basic earnings per share (in €)Diluted earnings per share (in €)Net income from continuing operations (excluding non-recurring items)
attributable to the Group
Basic earnings per share (in €)Diluted earnings per share (in €)— 328

KERING - 2023 Universal Registration Document

Notes
10.1
10.1

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

1.2 Consolidated statement of comprehensive income
Net income

2023
3,074

2022
3,718

Change in currency translation adjustments
relating to consolidated subsidiaries:– change in currency translation adjustments– amounts transferred to the income statement
Change in foreign currency cash flow hedges:– change in fair value– amounts transferred to the income statement– tax effects

(75)
(75)
–
(4)
268
(271)
(1)

(69)
(69)
–
246
(68)
327
(13)

–
–
–

–
–
–

(79)

177

1
1
–
(23)
(33)
10

24
30
(6)
(225)
(272)
47

Gains and losses recognized in equity, not to be transferredto the income statement
Total gains and losses recognized in equity

(22)
(101)

(201)
(24)

Comprehensive income

2,973

3,694

o/w attributable to the Groupo/w attributable to minority interests

2,879
94

3,576
118

(in € millions)

Notes

21.6

Change in other comprehensive income (loss)of equity-accounted companies:– change in fair value– amounts transferred to the income statement
Gains and losses recognized in equity, to be transferredto the income statement
Change in provisions for pensions
and other post-employment benefits:– change in actuarial gains and losses– tax effects
Change in financial assets measured at fair value:– change in fair value– tax effects

23

16.2

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6

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

1.3 Consolidated balance sheet
Assets(in € millions)

Goodwill
Brands and other intangible assets
Lease right-of-use assets
Property, plant and equipment
Investments in equity-accounted companies
Non-current financial assets
Deferred tax assets
Other non-current assets
Non-current assets
Inventories
Trade receivables and accrued income
Current tax receivables
Current financial assets
Other current assets
Cash and cash equivalents
Current assets
Assets held for sale

Notes
11
12
13.1
14
15
16
9.3

17
18
16
20.1

TOTAL ASSETS

Dec. 31, 2023
7,112
8,178
4,984
5,341
1,750
536
1,520
16
29,437
4,550
1,151
765
136
1,406
3,922
11,930–Dec. 31, 2022
4,053
7,357
4,929
3,388
49
855
1,640
8
22,279
4,465
1,180
378
167
1,136
4,336
11,662–

41,36733,941

Dec. 31, 2023
15,212798
16,01010,026
4,511
13
68
21
1,776
311
16,726
2,400
884
588
2,200
12
163
536
1,848
8,631
–

Dec. 31, 2022
13,998785
14,783
4,347
4,420
–
66
19
1,572
228
10,652
2,295
812
663
2,263
12
168
567
1,726
8,506
–

41,36733,941Equity and liabilities(in € millions)

Equity attributable to the Group
Equity attributable to minority interests
EquityNon-current borrowings
Non-current lease liabilities
Non-current financial liabilities
Non-current provisions for pensions and other post-employment benefits
Non-current provisions
Deferred tax liabilities
Other non-current liabilities
Non-current liabilities
Current borrowings
Current lease liabilities
Current financial liabilities
Trade payables and accrued expenses
Current provisions for pensions and other post-employment benefits
Current provisions
Current tax liabilities
Other current liabilities
Current liabilities
Liabilities associated with assets held for sale

TOTAL EQUITY AND LIABILITIES— 330

KERING - 2023 Universal Registration Document

Notes

19
20
13.2
22
23
24
9.3

20
13.2
22
23
24

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

1.4 Consolidated statement of changes in equity
Beforeappropriationof net income(in € millions)RemeasureOther
NumberKering Cumulative
ment reservesof shares Share Capital treasury translation of financial and net
Notes outstanding capital reserves
shares adjustments instruments income

As ofJanuary 1, 2022

124,068,705

499

1,655

(380)

(82)

165

Net income

MinorityGroup interests TOTAL

11,469 13,326

389 13,715

3,614

3,614

104

3,718

Total gains andlosses recognizedin equity

(83)

21

24

(38)

14

(24)

Comprehensive
income

(83)

21

3,638

3,576

118

3,694

38

–

38

–

346

346

45

–

45

382

–

–

–

(1,030)(1,030)– (1,030)(1,605) (1,605)(45) (1,650)

Change in equityof Kering SA

102,86238

Change in equityof subsidiaries
Expense related
to share-based
payments

6

Cancellationof Kering treasury
shares19.1(Acquisitions)disposals of Kering
treasury shares(1)19.1Distributionof dividends

19.2

45

(3)

(379)

(1,951,197)

Other changes(2)(352)

As of Dec. 31, 2022

122,220,370

496

1,314

(1,028)

(165)

186

Net income

13,195 13,998
2,983

Total gains andlosses recognizedin equity

(78)

(26)

Comprehensive
income

(78)

(26)

(352)

(375)

2,983

91

3,074

(104)

3

(101)

2,879

94

2,973

Change in equityof Kering SA

–

–

–

Change in equityof subsidiaries

–

9

9

25

–

25

–

–

–

13

–

13

Expense related
to share-based
payments

6

Cancellationof Kering treasury
shares19.1(Acquisitions)disposals of Kering
treasury shares(1)19.1Distributionof dividends

19.2

16,928

10

(3)

(330)

342,883

15

333

230

(217)

(1,705) (1,705)

Other changes(2)As of Dec. 31, 2023

2,983

(23)

785 14,783

5
122,580,181

493

984

(450)

(3)
(243)

160

2

14,268 15,212(42) (1,747)
(48)

(46)

798 16,010(1) The acquisition cost of Kering treasury shares is reflected in the Kering treasury shares column. Capital gains or losses on the sale of Kering
treasury shares, along with the related expenses and taxes, are recognized in the Other reserves and net income column.
(2) Other changes include changes in scope and transactions with minority interests.

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6

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

1.5 Consolidated statement of cash flows(in € millions)

Notes

2023
3,074

2022
3,717

3.1
26
26

1,823
94
4,991
300
(9)
1,007

1,666
(334)
5,049
287
(7)
1,597

6,289
(396)
(1,434)4,459(2,611)135(5,093)
–
(56)
251
76
(7,298)–(1,712)
(42)
(24)
(10)
6,205
(957)
174
(880)
(377)
2,377
–
18
(444)
4,094
3,650

6,926
(902)
(1,746)
4,278(1,071)1(1,565)
(32)
(235)
115
17
(2,770)38(1,483)(45)
317(1,030)
1,742
(904)
343
(824)
(298)
(2,144)
(8)
222
(422)
4,516
4,094

Net income from continuing operations
Net recurring charges to depreciation, amortizationand provisions on non-current operating assets
Other non-cash (income) expenses
Cash flow received from operating activities
Interest paid (received)
Dividends received
Current tax expense
Cash flow received from operating activities before tax,
dividends and interest
Change in working capital requirement
Income tax paid
Net cash received from operating activities
Acquisitions of property, plant and equipment and intangible assets
Disposals of property, plant and equipment and intangible assets
Acquisitions of subsidiaries and associates, net of cash acquired
Disposals of subsidiaries and associates, net of cash transferred
Acquisitions of other financial assets
Disposals of other financial assets
Interest and dividends received
Net cash received from (used in) investing activities
Increase (decrease) in share capital and other transactions
Dividends paid to shareholders of Kering SA
Dividends paid to minority interests in consolidated subsidiaries
Transactions with minority interests(Acquisitions) disposals of Kering treasury shares
Issuance of bonds and bank debt
Redemption of bonds and bank debt
Issuance (redemption) of other borrowings
Repayment of lease liabilities
Interest paid and equivalent
Net cash received from (used in) financing activities
Net cash received from (used in) discontinued operations
Impact of exchange rates on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at opening
Cash and cash equivalents at closing— 332

KERING - 2023 Universal Registration Document

9.1

27

28

19.2

19.1
20.4
20.4

29

25
25

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

1.6 Notes to the 2023 consolidated financial statements
Introduction
NOTE 1 – Significant events of 2023
NOTE 2 – Subsequent events
NOTE 3 – Operating segments
Notes on the consolidated income
statement
NOTE 4 – Revenue
NOTE 5 – Personnel expenses
and headcount
NOTE 6 – Share-based payment
NOTE 7 – Other non-recurring operating
income and expenses
NOTE 8 – Financial result
NOTE 9 – Income taxes
NOTE 10 – Earnings per share
Notes on the consolidated balance sheet
NOTE 11 – Goodwill and impairment tests
NOTE 12 – Brands and other intangible assets
NOTE 13 – Leases
NOTE 14 – Property, plant and equipment
NOTE 15 – Investments in equity-accounted
companies
NOTE 16 – Financial assets
NOTE 17 – Inventories
NOTE 18 – Trade receivables
and accrued income
NOTE 19 – Equity

334
334
335
336

337
337
337
338
339
340
340
342

344
344
345
346
348
349
349
350
351
351

NOTE 20 – Net debt
NOTE 21 – Derivative instruments
and management of market risks
NOTE 22 – Financial liabilities
NOTE 23 – Provisions for pensions
and other post-employment
benefits
NOTE 24 – Provisions and contingent
liabilities
Notes on the consolidated statementof cash flows
NOTE 25 – Cash and cash equivalents
as reported in the statementof cash flows
NOTE 26 – Cash flow received from operating
activities
NOTE 27 – Change in working capitalrequirement
NOTE 28 – Acquisitions of property, plantand equipment and intangible
assetsNOTE 29 – Financing activities and change
in borrowings
Other disclosures
NOTE 30 – Off-balance sheet commitments
NOTE 31 – Transactions with related parties
NOTE 32 – Statutory auditors’ remuneration
NOTE 33 – Accounting policies and methods
NOTE 34 – List of consolidated entities

KERING - 2023 Universal Registration Document

353
355
360

360
363

364
364
364
364

365
365

366
366
367
368
369
380

333 —

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

INTRODUCTION
Kering SA, the Group’s parent company, is a société anonyme(French corporation) with a Board of Directors, incorporated
under French law, whose registered office is located at 40, rue deSèvres, 75007 Paris, France. Kering is a global Luxury group thatmanages the development of a collection of renowned Houses inFashion, Leather goods and Jewelry.
On February 7, 2024, the Board of Directors approved theconsolidated financial statements as of December 31, 2023 andauthorized their publication. These consolidated financial
statements will only be considered as final after their adoption by
the April 25, 2024 Annual General Meeting.
The consolidated financial statements as of December 31, 2023
reflect the accounting position of Kering SA, its subsidiaries andits associates (the "Group").

Pursuant to European Regulation no. 1606/2002 of July 19, 2002,
these consolidated financial statements were prepared inaccordance with applicable international financial reporting
standards (IFRSs) as endorsed by the European Union andmandatorily applicable as of the reporting date.
The accounting policies and methods applied by the Grouppursuant to IFRSs are set out in Note 33 – Accounting policies andmethods.
Unless otherwise stated, amounts are stated in millions of euros.
In general, amounts stated in the consolidated financial
statements and notes to the consolidated financial statements
are rounded to the nearest unit. As a result, the sum of therounded amounts may show non-material differences relative tothe stated total.

NOTE 1 – SIGNIFICANT EVENTS OF 2023
Acquisition of prestigious real-estate assets in Paris
In 2023, Kering acquired three prestigious buildings in Paris,
located on Rue de Castiglione (close to Place Vendôme in the firstarrondissement) and Avenue Montaigne (in the eightharrondissement).

In accordance with its long-term financial strategy, the Groupintends to implement a disciplined and flexible approach to
managing its real-estate portfolio.

Those investments form part of Kering’s selective real-estate
strategy aimed at securing key locations that are highly desirable
for its Houses.

Kering Beauté acquires Creed, the high-end luxury heritage fragrance house
On June 26, 2023, Kering Beauté announced that it had signed anagreement to acquire 100% of Creed. The transaction wascompleted on October 17, 2023 and Creed has been fully
consolidated in the consolidated financial statements sinceNovember 1, 2023.
Established in 1760 by James Henry Creed, the House of Creed isthe largest global independent player in the fast-growing highend fragrance market, with distinctive, timeless andsophisticated fragrance collections. In recent years, Creed hasdelivered double-digit growth, along with outstanding
profitability and very high EBITDA margins, while nevercompromising on product quality and maintaining its very strong
brand image. In its financial year ended March 31, 2023, Creedgenerated revenue of more than €250 million. Creed offers atailored, elevated in-store experience through its network ofbranded stores, and quality distribution through around 1,400
points of sale globally.

The acquisition of Creed is a major milestone for Kering Beauté.
Creed is a perfect fit with Kering’s portfolio of renowned Luxury
brands, and immediately gives Kering Beauté substantial scale,an attractive financial profile, as well as a platform for supporting
the future development of other Kering Beauté fragrance
franchises, particularly by leveraging Creed’s global distribution
network.
While preserving Creed’s rich heritage and exclusive brand image,
Kering Beauté will further unlock Creed’s potential acrossgeographies, sales channels, and categories, notably byaccelerating its development in China and in Travel Retail, and by
further expanding its portfolio in the women’s fragrance, bodyand home categories.

Kering and Mayhoola announce Kering’s acquisition of a significant stakein Valentino as part of a broader strategic partnership
On July 27, 2023, Kering and Mayhoola entered into a binding
agreement for Kering to acquire a 30% shareholding in Valentino,
for a cash consideration of €1.7 billion. The agreement includes across-option agreement allowing Kering to acquire 100% of
Valentino’s share capital no later than 2028.
Founded in Rome in 1960 by Valentino Garavani, Valentino is one of
the most internationally recognized Italian luxury houses.
Valentino is a Maison de Couture with a strong heritage, positioned
at the high end of the Luxury market. With its Haute Couture roots
and a portfolio of iconic creations, Valentino has also developed arange of Ready-to-wear, Leather goods and Accessories that haveattracted a very loyal customer base and are worn by celebrities— 334

KERING - 2023 Universal Registration Document

around the world. Today, Valentino has 211 directly operated
stores in more than 25 countries and it generated revenue of€1.4 billion and recurring EBITDA of €350 million in 2022.
The transaction is part of a broader strategic partnership
between Kering and Mayhoola, which could lead to Mayhoola
becoming a shareholder in Kering.
On November 30, 2023, Kering announced that it had completed
the acquisition, in accordance with the terms disclosed on July 27,
2023 and following clearance from the antitrust authorities. This
stake has been accounted for in Kering’s financial statements
using the equity method since November 30, 2023.

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Boucheron announces the acquisition of a High Jewelry workshop
On November 6, 2023, as part of its ongoing growth anddevelopment strategy, Boucheron acquired a High Jewelry
workshop, renowned for its excellent expertise in traditional
craftsmanship. The acquisition allows Boucheron to reinforce theproduction capacity of its historical High Jewelry workshop.
The workshop is composed of four companies: Blondeau, Belter,
Chanson and FG Développement, which have worked together at
the same address since 2017. Together, they have around sixty

artisans (CAD designers, jewelers, lapidaries, setters andpolishers) who are involved in each step of the process in themaking of a High Jewelry creation.
The workshop’s teams joined Boucheron on October 31, 2023,
working alongside its established workshop at 26, Place
Vendôme to develop the House’s High Jewelry collections.

Kering Eyewear acquires UNT, one of its key suppliersin the production of high-precision components
On June 30, 2023, Kering Eyewear acquired 100% of the sharecapital of French company UNT (Usinage & Nouvelles
Technologies), to strengthen its position in the Luxury eyewear
industry. UNT is a key player in the manufacturing of highprecision metal and mechanical components for the entire
Luxury eyewear sector.
Following on from the acquisition of Manufacture Kering Eyewear– previously Manufacture Cartier Lunettes – in France in 2017 andthe purchase of a stake in Trenti Industria Occhiali in Italy in 2019,

this transaction represents another important step in theindustrial development strategy of Kering Eyewear, which
controls its supply chain through strategic partnerships withindustry-leading manufacturers, ensuring an unparalleled level ofquality and technical expertise.
Kering Eyewear and UNT share the same vision and values of
excellence, craftsmanship, innovation and sustainability.

Three bond issues in euros and sterling, for €1.5 billion,€3.8 billion and £800 million respectively
As part of the Group’s active liquidity management, Kering
carried out three bond issues in 2023, enabling it to enhance its
financial flexibility and allowing it both to refinance existing
debt and finance its recent acquisitions.
The great success of these issues with investors underscoredthe market’s confidence in the Group’s credit quality.
• Dual-tranche issue on February 20, 2023 for a total amount of€1.5 billion:– a €750 million tranche with a 6-year maturity and a 3.25%
coupon,– and a €750 million tranche with a 10-year maturity and a
3.375% coupon.
The issue allowed the Group to refinance its existing debt.
• Four-tranche issue on August 29, 2023 for a total amount of€3.8 billion bond issue:– a €750 million tranche with a 2-year maturity and a 3.75%
coupon,– a €750 million tranche with a 4-year maturity and a 3.625%
coupon,– a €1 billion tranche with a 8-year maturity and a 3.625%
coupon,– a €1.3 billion tranche with a 12-year maturity and a 3.875%
coupon.
This issue was notably intended to finance the acquisitionof Creed.
• Dual-tranche issue on November 16, 2023, for a total amountof £800 million:– a £400 million tranche with a 3-year maturity and a 5.125%
coupon,– a £400 million tranche with a 9-year maturity and a 5%
coupon.
This issue allowed the Group to diversify its sources offunding, by accessing for the first time the sterling bondmarket.

NOTE 2 – SUBSEQUENT EVENTS
Acquisition of a prestigious property in New York CityOn January 22, 2024 and continuing the strategy implemented in
2023, Kering announced the acquisition of a prestigious New York
City property comprising multi-level luxury retail spaces, totaling

approximately 115,000 sq. ft, or 10,700 sq. m., located at715-717 Fifth Avenue, on the Southeast corner of 56th Street, fora consideration of $963 million (€885 million).

No other significant event took place between December 31, 2023 and February 7, 2024, the date on which the Board of Directors approved
the annual financial statements.

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 3 – OPERATING SEGMENTS
3.1

Information by operating segment
KeringEyewearandCorporate Eliminations(1)Gucci

Yves Saint
Laurent

Bottega
VenetaOther
Houses

Revenue
Recurring operating income

9,873
3,264

3,179
969

1,645
312

3,514
212

1,568
(7)

(213)
(4)

19,566
4,746

Net recurring charges todepreciation, amortizationand provisions on non-current
operating assets
EBITDA

735
3,999

250
1,219

182
494

373
585

283
276

N/A
(4)

1,823
6,569

Acquisitions of property, plantand equipment and intangible
assets (2)

435

186

105

247

1,638

N/A

2,611

Eliminations

Total(in € millions)

Total

2023

(1) Intra-group eliminations are now disclosed in a separate column.
(2) Including the acquisition of strategic real-estate properties up to €1,380 million.

Gucci

Yves Saint
Laurent

Bottega
VenetaOther
HousesKeringEyewearandCorporate

Revenue
Recurring operating income

10,487
3,732

3,300
1,019

1,740
366

3,874
558

1,139
(88)

(189)
2

20,351
5,589

Net recurring charges todepreciation, amortizationand provisions on non-current
operating assets
EBITDA

684
4,416

232
1,251

175
541

330.0
888

245
157

N/A
2

1,666
7,255

Acquisitions of property, plantand equipment and intangible
assets

408

112

92

221

238

N/A

1,071

(in € millions)

2022

3.2

Revenue by region(in € millions)Asia-Pacific (Excluding Japan)
Western Europe
North America
Japan
Rest of the world

TOTAL

— 336

KERING - 2023 Universal Registration Document

2023
6,848
5,405
4,500
1,400
1,413

2022
6,568
5,566
5,547
1,244
1,425

19,566

20,351

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTES ON THE CONSOLIDATED INCOME STATEMENTNOTE 4 – REVENUE
2023
15,446(in € millions)

Sales from directly operated stores including e-commerce
Wholesale sales, royalties and other revenue(1)

TOTAL

2022
16,007

4,120

4,344

19,566

20,351(1) After elimination of intra-group sales.

NOTE 5 – PERSONNEL EXPENSES AND HEADCOUNT
5.1

Personnel expenses by type2023
(2,682)2022(2,497)

(11)
(10)
(279)

(11)
(29)
(294)

(2,982)(2,830)Asia-Pacific (excluding Japan)
Western Europe
North America
Japan
Rest of the world2023
12,31821,777
5,638
2,808
3,473

2022
12,306
19,487
4,825
2,681
3,337

TOTAL

46,014

42,637

Dec. 31, 2023
12,73923,593
5,957

Dec. 31, 2022
12,88821,914
5,840

2,978
3,697

2,934
3,651

48,96447,227(in € millions)

Wages, salaries and payroll taxes
Expenses related to pensions and other post-employment benefits
under defined benefit plans
Expense related to share-based payments
Other

TOTAL(1)(1) Excludes personnel expenses included in the cost of sales.

5.2

5.3

Average headcount on a full-time equivalent basis by region

Headcount on the payroll at year-end by region

Asia-Pacific (excluding Japan)
Western Europe
North America
Japan
Rest of the world

TOTAL

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 6 – SHARE-BASED PAYMENT
6.1

Cash-settled plans

Until 2019, the Group granted certain employees Kering Monetary
Units (KMUs), which are long-term share-based incentives thatare systematically settled in cash and subject to continuing
service conditions for all beneficiaries, and also subject toperformance conditions for executive corporate officers. The
Group recognizes its obligations as services are rendered by thebeneficiaries, over the period from the grant date to the vestingdate.
Vested rights may be exercised over a period of two years, during
which beneficiaries can opt to cash out some or all of their KMUs
in April and October, at their discretion, based on the mostrecently determined value.

The unit value of the KMUs awarded is determined and changes
based on movements in the Kering share price by itself and incomparison with the average performance of a basket of sevenstocks from the Luxury industry. The exercise date is the date at
which all of the specified vesting conditions are satisfied, and asof which the beneficiaries are entitled to ask for payment of theirentitlements.
At December 31, 2023, all share-based long-term incentive plans
had been exercised, with the 2019 plan reaching the end of its
exercise period in October 2023.

Information on grants
Year granted
Grant date2019
1/1/2019
3 years
2 years
October 2023
345
38,205753

Vesting period
Exercise period
Last exercise window
Number of beneficiaries on the grant date
Number of shares initially granted
Unit fair value at grant date (in €)Number of shares outstanding
Year granted
Balance as of December 31, 2022
Number granted
Number forfeited
Number exercised
Balance as of December 31, 2023
o/w exercisable as of December 31, 2023
Weighted average price per instrument exercised (in €)

6.2

2019
3,758
–
(29)
(3,729)––1,287

Plans settled in Kering shares

Free share and performance share plans
Since 2020, with respect to its long-term incentive plans, Kering has introduced free share and performance share plans for senior
executives and certain Group employees. The characteristics of these plans are as follows:

Information on grants
Year granted
Grant date
Vesting period
Number of beneficiaries on the grant date
Number of shares initially granted
Unit fair value at grant date (in €)— 338

KERING - 2023 Universal Registration Document

2020

2021

2022

2023

10/01/2020

10/01/2021

10/04/2022

10/03/2023

3 years

3 years

3 years

3 years

351

372

497

610

46,59642,752

74,27473,222542.6-608.7

622.5-628.3

457.2-461.5

397.3-403.4

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Number of shares outstanding
Year granted
Balance as of December 31, 2022

2020
38,631

2021
38,2502022
68,3362023–

Number granted
Number forfeited–(21,703)–(7,798)–(12,282)

73,222(1,395)

Number delivered
Balance as of December 31, 2023

(16,928)––
30,452–
56,054–
71,827

Under performance share plans, the final number of sharesdelivered to beneficiaries who continue to be employed by theGroup at the end of the vesting period cannot be less than 50%of, or over 50% more than the initial grant made to thesebeneficiaries. The performance adjustment ratio used to
calculate the final number of shares to be delivered is determinedin line with Kering’s share performance over the three-year
vesting period versus the performance of the industry as a whole,as measured by an index of eight European luxury stocks. As wellas the performance conditions applicable to all beneficiaries,
specific performance conditions apply to the corporate officers,
as outlined at the Annual General Meetings of June 16, 2020,
April 22, 2021, April 28, 2022 and April 27, 2023.

Other free share and performance shareplans
Kering may also include share-based payments in plans
specifically introduced for key executives from the Houses,reflecting the creation of value at their respective brands.
A plan of this type was set up in 2020 and was settled in Kering
shares in 2023 after an accelerated vesting period of three years
compared with the initial vesting period of five years.
The fair value of this benefit at the grant date was calculated byan independent expert using the Black & Scholes and Monte
Carlo methods, and amounted to €55 million.

NOTE 7 – OTHER NON-RECURRING OPERATING INCOME
AND EXPENSES
Gains relating to changes in scope
Capital gains on disposals of non-current assets
Restructuring reversal
Other
Other non-recurring operating income
Losses relating to changes in scope
Capital losses on disposals of non-current assets
Impairment of goodwill and other non-current assets
Restructuring costs
Acquisition costs
Other
Other non-recurring operating expenses

2023
28
85
35
19
167
(1)
–
(70)
(111)
(39)
(50)
(270)

2022
29
–
–
4
33
(21)
–
(41)
(36)
(29)
(101)
(227)

Other non-recurring operating income and expenses

(103)

(194)

(in € millions)

Restructuring costs in 2023, net of reversals, mainly concern thecontinuation of the restructuring that began at Gucci in 2022.
Other expenses comprise:• impairment of other non-current assets, mainly related to thereorganization of Gucci’s creative studio;• impairment of other assets at Alexander McQueen and Brioni;
and• costs relating to the acquisition of Creed.

The gain from changes in the scope of consolidation arose fromthe change in consolidation method used for Ginori 1735.
The €85 million capital gain on asset disposals arose from thedisposal of a building in London.
In 2022, other non-current operating expenses mainly concerned
the cost of reorganizing Gucci's design studio, the impact of thechange in estimate relating to inventories and impairment ofassets in Russia. Other income were related to the disposal of
Ulysse Nardin and Girard Perregaux.

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 8 – FINANCIAL RESULT
Cost of net debt(1)Income from cash and cash equivalents
Finance costs at amortized cost
Other financial income and expenses
Net gains (losses) on financial assets
Net foreign exchange gains (losses)
Ineffective portion of cash flow and fair value hedges
Net gains (losses) on derivative instruments not qualifying for hedge accounting
Other finance costs
Financial result excluding leases
Interest expense on lease liabilities

2023
(108)
102
(210)
(151)
15
(64)
(95)
9
(16)
(259)
(151)

2022
(47)
10
(57)
(89)
(3)
(28)
(154)
111
(15)
(136)
(124)

TOTAL

(410)

(260)

(in € millions)(1) Net debt is defined in Note 33.1.5.

The Group’s cost of net debt was €108 million in 2023 (€47 million
in 2022). This €61 million increase was mainly due to the rise ininterest expenses, arising from the increase in the Group’s
average amount of debt against a background of rising short- andlong-term interest rates, partly offset by the significant increase
in interest income on the Group’s cash position as a result ofhigher interest rates.

Other financial income and expense produced a net expense of€151 million in 2023 (€89 million in 2022). This €62 million
increase was mainly due to the non-recurrence of the€106 million positive impact that arose in 2022 from revaluing theoption component of the bonds exchangeable for PUMA shares(redeemed in September 2022) at fair value through the income
statement.

NOTE 9 – INCOME TAXES
9.1

Income tax expense

Current tax expense
Deferred tax income/(expense)2023(1,007)(156)

2022(1,597)177

TOTAL(1,163)(1,420)2023
4,233(1,163)
27.5%
(103)
4,336
25
(1,188)
27.4%

2022
5,135
(1,420)
27.7%
(194)
5,329
60
(1,480)27.8%(in € millions)

9.2

Reconciliation of the effective tax rate(in € millions)

Income before tax
Income tax expense
Effective tax rate
Other non-recurring operating income and expenses
Recurring income before tax
Income tax on other non-recurring operating income and expenses
Tax expense on recurring income
Effective tax rate on recurring income— 340

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Tax rate applicable in France
Differences in the tax rates applicable to foreign subsidiaries

2023
25.8%
-1.9 %

2022
25.8%-0.9 %

Permanent differences
Unrecognized tax losses carried forward-0.4 %-0.8 %-0.4 %
1.4 %Other differences
Effective tax rate on recurring income

4.7 %
27.4%

1.8 %
27.8%

0.1 %
27.5%

-0.1 %
27.7%(as a % of pre-tax income)Differences relating to other non-recurring operating income and expenses(permanent differences and differences in tax rates)
Effective tax rate
The income tax rate applicable in France in 2023 was thestandard rate of 25%, plus a social surtax of 3.3%, bringing theoverall rate to 25.8%.

Permanent differences result from expenses not deductible and/or income not taxable pursuant to the tax laws of the countries inwhich the Group operates.

Differences in the tax rates applicable to foreign subsidiaries
correspond to the difference between the statutory tax rateapplicable in France and the different statutory tax rates
applicable in other countries in which the Group does business.

Other differences mainly relate to other taxes, such as the IRAP
regional production tax in Italy, the CVAE tax on value added in
France, tax credits, and the impact of any tax reassessments.

9.3

Deferred tax assets and liabilities(in € millions)Deferred tax assets
Deferred tax liabilities
Net deferred tax assets (liabilities)
Value of brands

Dec. 31, 2022
1,640
(1,572)68(1,544)

Incomestatement
(91)
(65)
(156)
3

Gains and losses
recognized inequity
2
7
9
–

Other
changes(1)
(31)
(146)
(177)
(140)

Dec. 31, 2023
1,520
(1,776)(257)(1,681)

1,189
403
20

(140)
(32)
13

–
9
–

(23)
(10)
(4)

1,026
370
28

Inventories: elimination of internal
margins and impairment
Other adjustments
Tax loss carryforwards(1) "Other changes" include foreign exchange differences and changes in scope.

9.4

Unrecognized deferred tax assets(in € millions)Deferred tax assets on tax loss carryforwards
Deferred tax assets on other temporary differences
Unrecognized deferred tax assets(in € millions)

Unrecognized tax loss carryforwards expiring in (tax base)less than five years
more than five years
Indefinite unrecognized tax loss carryforwards (tax base)Total unrecognized tax loss carryforwards (tax base)Dec. 31, 2023
332
39
370

Dec. 31, 2022
368
41
410

Dec. 31, 2023
968
9
959
607
1,575

Dec. 31, 2022
1,156
25
1,132
623
1,779

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 10 – EARNINGS PER SHARE
10.1 Earnings per share2023
Consolidated
Group

Continuing
operations

Discontinued
operations

Net income attributable to the Group (in € millions)
Weighted average number of ordinary shares outstanding

2,982.6
123,953,244

2,982.6
123,953,244–
123,953,244

Weighted average number of Kering treasury shares
Weighted average number of ordinary shares(1,606,750)
122,346,494(1,606,750)
122,346,494(1,606,750)
122,346,494

24.38

24.38

–

Weighted average number of ordinary shares
Potentially dilutive ordinary shares

122,346,494
36,436

122,346,494
36,436

122,346,494
36,436Weighted average number of diluted ordinary shares
Diluted earnings per share (in €)122,382,930
24.37

122,382,930
24.37

122,382,930–

Net income attributable to the Group (in € millions)
Weighted average number of ordinary shares outstanding
Weighted average number of Kering treasury shares
Weighted average number of ordinary shares
Basic earnings per share (in €)Consolidated
Group
3,613.8
124,705,057(1,545,941)
123,159,116
29.34

Continuing
operations
3,612.7
124,705,057(1,545,941)
123,159,116
29.33

Discontinued
operations
1.0
124,705,057(1,545,941)
123,159,116
0.01

Weighted average number of ordinary shares
Potentially dilutive ordinary shares
Weighted average number of diluted ordinary shares
Diluted earnings per share (in €)123,159,116
135,529
123,294,645
29.31

123,159,116
135,529
123,294,645
29.30

123,159,116
135,529
123,294,645
0.01

Basic earnings per share (in €)

2022

— 342

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

10.2 Earnings per share from continuing operations excluding non-recurring items
Non-recurring items presented below consist of other non-recurring operating income and expenses (see Note 7), reported net of tax
and any minority interests.

Net income from continuing operations attributable to the Group
Other non-recurring operating income and expenses
Income tax on other non-recurring operating income and expenses

2023
2,982.6(102.8)24.7

2022
3,612.7(194.0)60.0

Net income from continuing operations (excluding non-recurring items)
attributable to the Group

3,060.7

3,746.7

2023
123,953,244(1,606,750)
122,346,494

2022
124,705,057(1,545,941)
123,159,116

25.02

30.42

122,346,494
36,436
122,382,930

123,159,116
135,529
123,294,645

25.01

30.39

(in € millions)

Weighted average number of ordinary shares outstanding
Weighted average number of Kering treasury shares
Weighted average number of ordinary shares
Basic earnings per share from continuing operations excluding
non-recurring items (in €)Weighted average number of ordinary shares
Potentially dilutive ordinary shares
Weighted average number of diluted ordinary shares
Diluted earnings per share from continuing operations excluding
non-recurring items (in €)KERING - 2023 Universal Registration Document

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTES ON THE CONSOLIDATED BALANCE SHEETNOTE 11 – GOODWILL AND IMPAIRMENT TESTS
11.1 Changes during the period
2023
Acquisitions

Impairment
lossesChangesin scope

Foreignexchangedifferences

4,261
(207)

3,508
–

–
–

–
–

72
(5)

(517)
–

7,324
(211)

4,053

3,508

–

–

67

(517)

7,112

As of
January 1

Gross
Impairment lossesNET(in € millions)

Other
As of
movements December 31

Acquisitions in 2023 corresponds mainly to €3,423 million of provisional goodwill relating to Creed. The €517 million of Other
movements corresponds mainly to the allocation of goodwill relating to Maui Jim.
Creed's revenue for the period is €62 million.

2022(in € millions)

Gross
Impairment losses

NET

As of
January 1
3,094
(203)

2,891

Acquisitions
1,474–

Impairment
losses––Changesin scope––

Foreignexchangedifferences
(114)
(4)

1,474

–

–

(118)

Other
As of
movements December 31
(194)
4,261
–
(207)

(194)

4,053

Acquisitions in 2022 corresponds mainly to €1,455 million of provisional goodwill relating to Maui Jim. The €194 million of Other
movements corresponds mainly to the allocation of goodwill relating to Lindberg.

11.2 Impairment tests
As part of the goodwill measurement process, an impairment test was carried out as of December 31, 2023. The main assumptions used
for each cash-generating unit (CGU) or group of CGUs are as follows:

2023
Goodwill
Dec. 31, 2023
(in € millions)

Gucci CGU
Other CGUs

TOTAL

Net carrying
amount1,649
5,464

Discount rate
(before tax)
15.4%
12.1% - 15.7%

Perpetual
growth rate
3.0%
3.0%

Business plantime frame
5 years
5 or 10 years

7,112

2022
Goodwill
Dec. 31, 2022
(in € millions)

Net carrying
amountDiscount rate
(before tax)

Perpetual
growth rate

Business plantime frame

Gucci CGU
Other CGUs

1,652
2,401

15.2%
11.8% - 15.2%

3.0%
3.0%

5 years
5 or 10 years

TOTAL

4,053

In 2023, no impairment loss was recognized in the income
statement as a result of impairment tests.

perpetual growth rate and a 10-basis-point decrease in cash
flows.

Recoverable amounts determined as part of impairment tests
underwent sensitivity testing based on a 10-basis-point increasein the post-tax discount rate, a 10-basis-point decrease in the

These tests did not show a recoverable amount less than the
carrying amount of cash-generating units or groups of cashgenerating units.

— 344

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 12 – BRANDS AND OTHER INTANGIBLE ASSETS
BrandsOther intangible assets

Gross
7,311
2,216

Amortizationand impairment(103)(1,245)

Dec. 31, 2023
Net
7,208
970

Dec. 31, 2022
Net
6,655
702

TOTAL

9,527

(1,348)

8,178

7,357

(in € millions)

In 2023, changes in brands and other intangible assets were as follows:2023(in € millions)

BrandsOther intangible
assetsTOTAL

Carrying
amountForeignCarrying
as ofImpairment Changes exchange
Other amount as ofJanuary 1 Acquisitions Amortization
losses in scope differences movements December 31
6,655
–
–
–
–
(76)
628 (1)
7,208
702

311

(221)

–

114

(9)

74

970

7,357

311

(221)

–

114

(85)

702

8,178

(1) The amount under "Other movements" relates mainly to the Maui Jim brand.

2022(in € millions)

BrandsOther intangible
assetsTOTAL

Carrying
amountForeignCarrying
as ofImpairment Changes exchange
Other amount as ofJanuary 1 Acquisitions Amortization
losses in scope differences movements December 31
(1)
6,406
–
–
–
–
2
247
6,655
597

279

(177)

–

4

1

(2)

702

7,003

279

(177)

–

4

3

245

7,357

(1) The amount under "Other movements" relates to the Lindberg brand.

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 13 – LEASES
13.1 Lease right-of-use assets
Dec. 31, 2022

StoresDepreciationand impairment(2,792)

Dec. 31, 2023

Gross
6,498

Net
3,706

Net
3,682

Offices and other
Capitalized fixed lease payments

1,758
8,256

(607)
(3,399)

1,151
4,857

1,126
4,808

(in € millions)Lease rights

TOTAL

217

(91)

127

121

8,473

(3,490)

4,984

4,929

Change in lease right-of-use assets
2023(in € millions)Stores
Offices and other
Total
Lease rights

TOTAL

Carrying
amountas ofJanuary 1
3,682

New
leases1,060

Lease
modifications
147

1,126
4,808

245
1,305

7
154

(54)
(138)

(161)
(976)

(29)
(39)

(7)
(113)

23
(145)

1,151
4,857

121

13

-

-

(9)

(2)

(1)

5

127

4,929

1,318

154

(138)

(985)

(41)

(114) (140)4,984Carrying
amountas ofJanuary 1
3,299
896
4,196
106

New
leases
1,045
376
1,421
14

Lease
modifications
110
41
151
–

4,302

1,435

151

Early
ForeignCarrying
termiImpairment exchangeamount as ofnations Depreciation
losses differences Other December 31
(84)
(815)
(10)
(106) (168)
3,706

2022

(in € millions)Stores
Offices and other
Total
Lease rights

TOTAL

Early
ForeignCarrying
terminImpairment exchangeamount as ofations Depreciation
losses differences Other December 31
(35)
(771)
(18)
44
7
3,682
(37)
(154)
–
6
(3)
1,126
(72)
(925)
(18)
50
4
4,808
–
(10)
–
(1)
13
121

(72)

(935)

(18)

49

17

4,929

Less than
one year884

One to five
years
2,519

More than
Total as of
Total as offive years Dec. 31, 2023 Dec. 31, 2022
1,992
5,395
5,232

13.2 Lease liabilities(in € millions)

Maturity schedule of lease liabilities

As of December 31, 2023, current lease liabilities amounted to €884 million (€812 million in 2022). Non-current lease liabilities totaled€4,511 million (€4,420 million in 2022).

— 346

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Change in lease liabilities2023(in € millions)Stores
Offices and other

TOTAL

Carrying
amountas ofJanuary 1
4,027
1,204

5,232

New
leases
1,066
248

Repay­ Interest
ments expense
(850)
119
(180)
32

1,314 (1,030)

Leasemodifications
138
7

151

145

Lease
modifi­cations
112
42

Early
Foreigntermi- exchange
nations difference
(99)
(116)
(68)
(8)

(167)

(124)

Carrying
amount as of
Other December 31
(133)
4,153
7
1,242

(126)

5,395

2022

(in € millions)Stores
Offices and other

TOTAL

Carrying
amountas ofJanuary 1
3,540
961

New
leases
1,033
375

Repay­ Interest
ments expense
(780)
98
(168)
26

4,501

1,408

(948)

124

154

Early
Foreigntermi­ exchange
nations difference
(34)
48
(37)
8

(71)

Carrying
amount as of
Other December 31
10
4,027
(3)
1,204

56

7

5,232

13.3 Impact of leases in the income statement(in € millions)

2023

2022

Depreciation of lease right-of-use assets
Interest expense on lease liabilities

(985)
(151)

(935)
(124)

41
(1,094)(1,032)18(1,041)
(989)

(96)
10

(101)
10

Impairment of lease right-of-use assets
Expense related to capitalized fixed lease payments
Rental expense – Variable lease payments
Rental expense – Short-term leases and/or Leases with a low-value underlying asset
Sub-lease revenue
Other lease expenses(1,118)(1,080)TOTAL(2,212)(2,121)

Dec. 31, 2023
1,463
(1,408)Dec. 31, 2022
1,159
(1,124)55

35

13.4 Net deferred tax assets (liabilities) on leases(in € millions)Deferred tax assets
Deferred tax liabilities

Net deferred tax assets (liabilities)

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 14 – PROPERTY, PLANT AND EQUIPMENT
Land and buildings
Plant and equipment
Other property, plant and equipment

Gross
2,681
5,617
530

Depreciation
and Impairment(274)(3,084)(128)

Dec. 31, 2023
Net
2,407
2,532
402

Dec. 31, 2022
Net
683
2,211
494

TOTAL

8,828

(3,487)

5,341

3,388

(in € millions)2023
Carrying
amountas of AcquiJanuary 1 sitions
Disposals(in € millions)Land and buildings
683
1,695 (1)(33)
Plant andequipment
Other property,
plant andequipment

TOTAL

Depreciation(27)

ImpairForeign
Carrying
ment Changes exchange
Other amount as oflosses in scope differences movements December 31
–
17
(8)
80
2,407

2,211

743

(2)

(591)

(20)

19

(67)

239

2,532

494

168

(1)

(16)

(1)

10

(9)

(244)

402

3,388 2,607

(37)

(634)

(21)

47

(83)

76

5,341

(1) Acquisitions in the period correspond mainly to acquisitions of strategic real-estate assets in Paris (cf. Note 1).

2022(in € millions)Land and buildings
Plant andequipment
Other property,
plant andequipment

TOTAL

— 348

Carrying
amountas ofJanuary 1
672

Acquisitions Disposals
14–

Depreciation(21)

ImpairForeign
Carrying
ment Changes exchange
Other amount as oflosses in scope differences movements December 31
2
13
(7)
10
683

1,946

605

(4)

(515)

(18)

24

14

159

2,211

349

333

–

(20)

–

6

4

(178)

494

2,967

952

(4)

(556)

(16)

42

12

(9)

3,388

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 15 – INVESTMENTS IN EQUITY-ACCOUNTEDCOMPANIES
Companies accounted for by the equity method comprise associates (cf. Note 34). The Group's investments in associates break down as
follows:
Dec. 31, 2023

Dec. 31, 2022

Valentino
Other investments in equity-accounted companies

1,698
52

0
49

TOTAL

1,750

49

(in € millions)

Minority interests held by Kering generated €4 million of net
earnings from equity-accounted companies in 2023 (€2 million in2022).
The acquisition of a shareholding in Valentino on November 30,
2023 was accompanied by cross put and call options under which
the Group is committed from May 2026 through August 2028 toacquiring an additional 70% shareholding should the options be
exercised.

These options were granted on an arm’s-length basis.
Should the option be exercised, the exercise price will be
adjusted on the basis of Valentino's performance and prospects
for future years. The value of this commitment at closing isestimated at around €4 billion (cf. Note 30.3).
No other financial or operating commitment has been granted to
Valentino, which is accounted for by the equity method.

NOTE 16 – FINANCIAL ASSETS
16.1 Breakdown of financial assets(in € millions)Non-consolidated investments(1)Loans and receivables
Deposits and guarantees
Other financial investments(2)Non-current financial assets
Derivative instruments
Loans and receivables
Current financial assets

Dec. 31, 2023
167
3
232
136
536
122
14
136

Dec. 31, 2022
416
1
226
213
855
163
3
167

(1) Including a 0.4% interest in PUMA in 2023 (3% in 2022).
(2) Including a €5 million investment in the "Climate Fund for Nature" carbon fund managed by Natixis subsidiary Mirova.

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

16.2 Financial assets at fair value
Dec. 31, 2023
167

Dec. 31, 2022
416

o/w changes in fair value recognized through equity
o/w changes in fair value recognized through the income statement

166
1

408
9

Derivative instruments
Other financial investments

122
136

163
213

o/w changes in fair value recognized through equity
o/w changes in fair value recognized through the income statement

130
6

205
7

Financial assets at fair value

425

791

(in € millions)Non-consolidated investments

The fair value of non-consolidated investments quoted on an
active market is their market price as of the reporting date (level
1 of the fair value hierarchy). This category chiefly includes PUMA
shares. The fair value of non-consolidated investments notquoted on an active market is determined using internalvaluation techniques drawing on non-observable inputs (level 3of the fair value hierarchy). The securities in this category are notmaterial.

The fair value of derivative instruments is determined using
valuation techniques drawing on observable market inputs (suchas forward rates and interest rate curves) and on commonly usedmodels (level 2 of the fair value hierarchy) (cf. Note 21).
The fair value of other financial investments measured at fairvalue is determined using internal valuation techniques drawing
on non-observable inputs (level 3 of the fair value hierarchy).

NOTE 17 – INVENTORIES
Dec. 31, 2023
4,981
1,094
6,075
(1,525)4,550(in € millions)

Commercial inventories
Industrial inventories
Gross Value
Allowances
Carrying amount

Dec. 31, 2022
4,707
1,102
5,809
(1,343)
4,465

Movements in allowances(in € millions)

2023
2022

As of
January 1(1,343)(1,858)Additions
(244)
(311)

Reversals
62
84

Changesin scope(11)(9)

Foreign
Assets held
exchangefor sale differences
–
24
–
(6)

Other
As of
movements December 31(12)(1,525)756(1,343)

In 2022, Other movements included a reclassification between gross value and allowances, following the adoption of a new techniquefor measuring inventories.

— 350

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 18 – TRADE RECEIVABLES AND ACCRUED INCOME
Dec. 31, 2023
1,178
(26)
1,151

(in € millions)

Trade receivables and accrued income
Allowances
Carrying amount

Dec. 31, 2022
1,207
(27)
1,180

Movements in allowances(in € millions)

2023
2022

As of
January 1
(27)
(31)

Net
(additions)reversals
1
5Changesin scope(2)(1)

Foreignexchangedifferences
1
(1)

Other
movements
1
–

As of
December 31
(26)
(27)

Breakdown of trade receivables and accrued income by age
2023
999
179
108
61
10
(26)

(in € millions)

Receivables not yet due
Past due receivables:
Less than one month
One to six months
More than six months
Allowances

2022
1,027
180
99
69
12
(27)

Credit risk
In light of the Group’s business model, with wholesale sales androyalties received from wholesalers making a smaller
contribution to total sales, the Group does not have significant
exposure to credit risk. Furthermore, with respect to wholesalers,

the Group has no dependency or concentration risk. The Group
substantially limits the credit risk linked to these parties by taking
out credit insurance.

NOTE 19 – EQUITYAs of December 31, 2023, the share capital amounted to€493,683,112, comprising 123,420,778 fully paid-up shares with apar value of €4 each. This represents a reduction of €2,600,000
following the cancellation of 650,000 shares under the sharebuyback program (share capital of €496,283,112 comprising
124,070,778 shares as of December 31, 2022).

Excluding the 840,597 Kering treasury shares, there were
122,580,181 shares issued and outstanding as of December 31,
2023.

19.1 Kering treasury shares(in € millions)

Liquidity agreement
Share buyback program (for cancellation)
Share-based payment
Kering treasury sharesDec. 31, 2023
NumberAmount6,750
3––
833,847447
840,597450

Dec. 31, 2022
NumberAmount––650,000
333
1,200,408
690
1,850,408
1,023

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Change in Kering treasury shares
Number1,850,408
404,970(398,220)––(650,000)(366,561)–
840,597(in € millions)

As of January 1,2023
Purchases under the liquidity agreement
Disposals under the liquidity agreement
Purchases under share-based payment plans
Purchases with a view to canceling the shares
Cancellations under the share buyback program
Shares vested
Net capital gain (loss) on disposal
As of December 31, 2023

Amount
1,023
200
(198)
–
–
(333)
(224)
(18)
450

Impacton cash
(200)
198
–
–
N/A
N/A
N/A
(3)

Liquidity agreement

Share buyback programs

Since May 26, 2004, Kering has maintained agreements with afinancial intermediary in order to improve the liquidity of theGroup’s shares and ensure share price stability. The latest
agreement was signed on February 13, 2019, in accordance with
AMF ruling no. 2018-01 of July 2, 2018, applicable since January 1,
2019. An amendment to that agreement came into force on
July 1, 2021, providing for the resources in the liquidity accountto be reduced by €25 million. As a result, there has been
€25 million in the liquidity account since July 1, 2021.

The share buyback program, authorized in the Annual General
Meetings of July 6, 2021 and April 28, 2022 and announced on
August 25, 2021 with the aim of repurchasing up to 2.0% of theGroup’s share capital over a 24-month period, was completed on
December 15, 2022.
In 2023, the Company canceled 650,000 shares purchased
through the fourth tranche of the share buyback program
completed on December 15, 2022.

19.2 Dividends paid by Kering SA(in € millions)

Dividend for 2023 Dividend for 2022

INTERIM DIVIDEND
Amount per share
Payment date
Gross amount paid

€4.50
January 17, 2024
552

€4.50
January 18, 2023
551

€9.50 ⁽¹⁾
May 6, 2024
1,172 ⁽¹⁾ ⁽²⁾€9.50
May 4, 2023
1,179

€14.001,724 ⁽²⁾

€14.00
1,712

BALANCE PAID THE FOLLOWING YEAR FURTHER TO THE AGM
Amount per share
Payment date
Gross amount paid

TOTAL DIVIDEND
Amount per share
Total gross amount(1) Based on a recommendation of Kering’s Board of Directors of February 7, 2024, pending approval of the Annual General Meeting of April 25,
2024.
(2) Without adjusting for the effect of Kering shares held in treasury.

Amounts paid are presented after adjusting for the effect of Kering shares held in treasury.

— 352

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 20 – NET DEBT
(in € millions)

Borrowings
Cash and cash equivalents

Dec. 31, 2023
12,426(3,922)

Dec. 31, 2022
6,642
(4,336)

8,504

2,306

Dec. 31, 2023
3,103
819

Dec. 31, 2022
4,006
330

3,922

4,336

TOTAL

20.1 Cash and cash equivalents(in € millions)

Cash
Cash equivalents(1)TOTAL(1) Including term deposits and mutual fund units.

20.2 Breakdown of borrowings by category and maturity(in € millions)

Bonds
Other bank borrowings
Bank overdrafts
Commercial paper
Other borrowings(1)Dec. 31, 2023
9,795
134
272
1,277
948

Current
500
68
272
1,277
282

Y +2
1,497
46
–
–
541

Y+3
959
19
–
–
–

Y+4
1,228
–
–
–
63

Y+5
597
–
–
–
2

Beyond
5,014
–
–
–
59

Total
noncurrent
9,295
66
–
–
665

711

47

541

–

63

1

59

664

12,426

2,400

2,085

978

1,291

599

5,073

10,026

100%

19%

17%

8%

10%

5%

41%

81%

Beyond
1,391
–
–
–
11

Total
noncurrent
3,626
59
–
–
661

o/w Put options granted
to minority interests

TOTAL
%

(in € millions)

Bonds
Other bank borrowings
Bank overdrafts
Commercial paper
Other borrowings(1)Dec. 31, 2022
4,226
201
242
1,010
963

o/w Put options granted
to minority interests

Current
600
141
242
1,010
302

Y +2
502
31
–
–
46

Y+3
748
28
–
–
595

Y+4
498
–
–
–
–

Y+5
486
–
–
–
10

681

20

46

595

–

10

11

661

TOTAL

6,642

2,295

579

1,371

498

496

1,402

4,347

%

100%

35%

9%

21%

8%

7%

21%

65%

(1) Other borrowings include accrued interest.

KERING - 2023 Universal Registration Document

353 —

6

6

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

20.3 Breakdown of borrowings by repayment currency
EUR

Dec. 31, 2023
11,046%89%

Dec. 31, 2022
5,990

%
90%

GBP
JPY

927
193

7%
2%

2
409

–
6%

USD
Other currencies

182
78

1%
1%

194
47

3%
1%

12,426

100%

6,642

100%

(in € millions)

TOTAL

Borrowings denominated in foreign currencies finance the Group’s operations outside the eurozone.

20.4 Bonds
On February 27, 2023, the Group issued €1.5 billion of bonds,
consisting of a €750 million tranche with a 6-year maturity and a
3.25% coupon and a €750 million tranche with a 10-year maturity
and a 3.375% coupon.
In May 2023, the Group redeemed €600 million of bonds issued in
May 2020.
On September 5, 2023, the Group issued €3.8 billion of bonds infour tranches:• a €750 million tranche with a 2-year maturity and a 3.75%
coupon;• a €750 million tranche with a 4-year maturity and a 3.625%
coupon;• a €1 billion tranche with an 8-year maturity and a 3.625%
coupon;• a €1.3 billion tranche with a 12-year maturity and a 3.875%
coupon.
Finally, on November 23, 2023, Kering issued £800 million ofbonds in two tranches of £400 million each, one with a 3-year
maturity and a coupon of 5.125%, and one with a 9-year maturity
and a coupon of 5.00%.
The Group has a Euro Medium Term Notes (EMTN) program
capped at €12,000 million as of December 31, 2023, of which€9,852 million had been drawn as of that date.
The bonds issued between 2014 and 2017 within the scope of the
EMTN program are all subject to a change-of-control clauseentitling bondholders to request early redemption at par if
Kering’s rating is downgraded to non-investment grade following
a change of control.

500

Currency
EUR

Issue interest
rate
Fixed 2.75%

50
500
300
600
600
750

EUR
EUR
EUR
EUR
EUR
EUR

750
200

Par value

Fixed 1.6%
Fixed 1.25%
Fixed 1.5%
Fixed 0.25%
Fixed 0.75%
Fixed 1.25%

04/08/2014
05/30/2014
06/26/2014
09/22/2015
11/05/2015
04/16/2015
05/10/2016
04/05/2017
05/13/2020
05/13/2020
05/05/2022

Maturity Dec. 31, 2023 Dec. 31, 2022
04/08/2024
500
503
04/08/2024
04/08/2024
04/08/2024
04/08/2024
04/16/2035
50
50
05/10/2026
499
498
04/05/2027
299
299
05/13/2023–
600
05/13/2028
597
597
05/05/2025
749
748

EUR
USD

Fixed 1.875%
Fixed 3.639%

05/05/2022
05/27/2022

05/05/2030
05/27/2027

745
181

744
187

750
750

EUR

Fixed 3.25%
Fixed 3.375%

02/27/2023
02/27/2023

02/27/2029
02/27/2033

745
742

–
–

750
750

EUR

Fixed 3.75%
Fixed 3.625%

09/05/2023
09/05/2023

09/05/2025
09/05/2027

748
748

–
–

1,000
1,300

EUR

Fixed 3.625%
Fixed 3.875%

09/05/2023
09/05/2023

09/05/2031
09/05/2035

989
1,286

–
–

Fixed 5.125%
Fixed 5.00%

11/23/2023
11/23/2023

11/23/2026
11/23/2032

460
457

–
–

9,795

4,226

(in millions, local currency)

EUR
EUR
EUR

400
400

GBP

GBP

TOTAL

— 354

KERING - 2023 Universal Registration Document

Issue date

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

20.5 Other bank borrowings
The Group has bank borrowings denominated in Yen, mainly floating-rate and totaling €90 million at December 31, 2023 (€171 million at
December 31,2022). These borrowings fall due within five years.

20.6 Undrawn confirmed lines of credit
As of December 31, 2023, the Group had undrawn confirmed lines of credit totaling €3,185 million (December 31, 2022: €3,035 million).
These consisted of a syndicated facility for €2,385 million (of which €170 million falls due in December 2024 and €2,215 million in
December 2025), and €800 million in bilateral lines of credit that had a maturity of more than one year at December 31, 2023.

NOTE 21 – DERIVATIVE INSTRUMENTS
AND MANAGEMENT OF MARKET RISKS
21.1 Exposure and sensitivity to interest rate risk(in € millions)Fixed-rate
Floating-rate
Borrowings

Dec. 31, 2023 Impact of hedging
11,073–
1,353
12,426–(in € millions)

Floating-rate investments

After hedging
11,073

Impact on incomeof a 1% change ininterest rates–

1,353
12,42614
14

Dec. 31, 2023

Impact on incomeof a 1% change ininterest rates

3,894

39

21.2 Exposure and sensitivity to foreign exchange risk
The majority of the Group’s sales take place in currencies otherthan its functional currency, primarily in US dollars and in Asiancurrencies such as the Japanese yen and the Chinese yuan.
Purchases and other expenses related to production are
primarily denominated in euros. The Group uses derivative

hedging instruments to minimize and anticipate the impact of
currency fluctuations on its earnings. These hedges are set up
using forward exchange-rate agreements and/or exchange-rate
options eligible for hedge accounting.

KERING - 2023 Universal Registration Document

355 —

6

6

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

The outstanding notional amounts of the derivative instruments used by the Group to manage its foreign exchange risk are shown
below:
Dec. 31, 2023
Notional amount(1)Market value(2)Less than
one yearMore than
one year

Cash flow
hedgesFair value
hedgesUnallocatedTotal

Options purchased
CNY put

252
227

–
–

4
4

–
–

–
–

4
4

JPY put
Tunnels

25
72

–
–

–
1

–
–

–
–

–
1

JPY seller
MXN seller

48
21

–
–

2
(1)

–
–

–
–

2
(1)

Other
Forwards

3
4,837

–
–

–
69

–
2

–
(1)

–
70

USD
CNY

1,572
1,168

–
–

18
28

1
1

–
–

19
29

KRW
JPY

437
411

–
–

(1)
17

–
–

–
–

(1)
17

HKD
GBP
TWD
Other
Cross-currency swaps (3)
USD
CNY
JPY
CHF
Other

311
298
129
511
1,176
640
191
180
(140)
305

–
–
–
–
–
–
–
–
–
–

6
(3)
2
2
–
–
–
–
–
–

–
–
–
–
4
1
1
–
1
1

–
–
–
(1)
10
12
–
(2)
2
(2)

6
(3)
2
1
14
13
1
(2)
3
(1)

TOTAL

6,337

–

74

6

9

89

(in € millions)(1) Sale/(purchase).
(2) Gain/(loss).
(3) Excluding cross-currency swaps hedging debt (€1,101 million).

The Group’s net exposure to foreign exchange risk can be analyzed as follows:

Dec. 31, 2023
(in € millions)

USD
CNY
JPY
GBP
CHF
HKD
KRW
Other

TOTAL

— 356

Net exposurein the balance
sheet
1,139
751
177
(922)
(88)
85
86
1,084

Forecast
exposure
1,507
1,183
428
268
–
297
406
575

Net exposure
before hedging
2,646
1,934
605
(654)
(88)
382
492
1,659

2,312

4,664

6,976

KERING - 2023 Universal Registration Document

Hedging
instruments(2,031)(1,586)
(664)
733
138
(324)
(437)
(1,065)Net exposure
after hedging
as ofDec. 31, 2023
615
348
(59)
79
50
58
55
594

Net exposure
after hedging
as ofDec. 31, 2022
34
204
(311)
64
18
48
113
645

(5,236)

1,740

815

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Monetary assets comprise loans and receivables, bank balances,and investments and cash equivalents maturing within threemonths of the acquisition date.
Monetary liabilities comprise borrowings, operating payables andother current payables.

Most of these monetary items are denominated in the functional
currencies in which the subsidiaries operate. They do not
generate currency effects. Monetary items that are notdenominated in the functional currencies in which thesubsidiaries operate undergo currency hedging in accordancewith applicable procedures.

Analysis of sensitivity to foreign exchange risk
Based on market data as of December 31, 2023, the direct impact on equity and income (excluding the tax effect) of a 10% increase or
decrease in the euro exchange rate against the principal currencies to which the Group is exposed (USD, JPY and CNY) would be as
follows:
Dec. 31, 2023
(in € millions)

Impact on equity
10% increase
10% decrease

Impact on income
10% increase
10% decrease

USD
JPY

134
102

(164)
(109)

–
–

–
–

CNY

37

(43)

–

–

10% decrease
(240)
(36)
(159)

10% increase–––

Dec. 31, 2022
(in € millions)

USD
JPY
CNY

Impact on equity
10% increase
197
30
131

All other market variables are deemed to be constant whencalculating sensitivity.
The impact on equity, recognized in the "Remeasurement offinancial instruments" item, results from foreign exchange
instruments eligible for cash flow hedge accounting.

Impact on income
10% decrease–––

The impact on the income statement, recognized under"Financial result", relates to foreign exchange instruments thatare not eligible for hedge accounting and to the change in theineffective portion of cash flow hedges.

21.3 Exposure to the risk of fluctuations in share prices
The Group is exposed to this risk through its PUMA shares (0.4%
stake as of December 31, 2023), the valuation of which depends
on movements in their share price (cf. Note 16.2).

The Group has limited exposure to other shares in nonconsolidated investments, which are not hedged.

Based on market data on the closing date, a change of 10% in
PUMA’s share price would have an impact of €3 million on thevalue of the Group’s interest in PUMA as recorded in the balance
sheet.

21.4 Exposure to the risk of fluctuations in precious metals prices
The Group may be exposed to changes in the prices of certain
precious metals through its Houses’ activities, and particularly inits jewelry operations. As a result, hedging may be arranged,
particularly through derivative financial instruments to secure
production costs or through price negotiations with refiners or
producers of semi-finished products.

As of December 31, 2023, hedging transactions with a remaining
maturity of less than one year are treated as forward purchaseswith a notional amount of €6 million and a non-material market
value (notional amount of €38 million as of December 31, 2022).
The Group’s view is that a 1% change in these precious metals
prices would have no impact as of the balance sheet date.

KERING - 2023 Universal Registration Document

357 —

6

6

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

21.5 Exposure to counterparty risk
The Group’s derivatives transactions are carried out in accordance with internal control procedures for over-the-counter transactions,with top-tier counterparties that have signed FBF or ISDA agreements. The impact of counterparty risk on the fair value of derivatives, as
recommended by IFRS 13, was regarded as non-material as of December 31, 2023.

21.6 Measurement of derivative instruments
Dec. 31, 2023

Interest
rate risk

3–

Derivative instruments - at fair value throughincome statement–

Derivative instruments - cash flow hedges
Derivative instruments - fair value hedges

3–

Current financial assets
Derivative instruments - at fair value throughincome statement
Derivative instruments - cash flow hedges
Derivative instruments - fair value hedges(in € millions)Non-current financial assets

Non-current financial liabilities

Foreignexchange
Otherrisk market risks Dec. 31, 2022
3

–

1

–

–

–

–

–
–

3
–

–
–

1
–

122

–

122

–

163

17

–

17

–

3

95
10

–
–

95
10

–
–

156
3

(13)

–

–

(13)

–

Derivative instruments - at fair value throughincome statement

–

–

–

–

–

Derivative instruments - cash flow hedges
Derivative instruments - fair value hedges

(13)
–

–
–

(13)
–

–
–

–
–

Current financial liabilities

(33)

–

(33)

–

(101)

Derivative instruments - at fair value throughincome statement

(8)

–

(8)

–

(17)

Derivative instruments - cash flow hedges
Derivative instruments - fair value hedges

(21)
(4)

–
–

(21)
(4)

–
–

(77)
(7)

TOTAL

79

–

79

–

62

— 358

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

21.7 Liquidity risk
Liquidity risk management for the Group and each of its
subsidiaries is closely monitored and periodically assessed within
the scope of the Group’s financial reporting procedures.

In order to guarantee its liquidity, as of December 31, 2023 theGroup held confirmed undrawn lines of credit totaling€3,185 million and available cash of €3,922 million (cf. Note 20.1).

Dec. 31, 2023
Carrying
amountCash flowLess than
one year

One to fiveyears

More than
five year

14,626
9,795(16,515)(9,851)(4,772)(500)(5,886)(4,291)(5,857)(5,060)Commercial paper
Other borrowings

1,277
1,354

(1,282)(3,182)(1,282)(790)–(1,595)–(797)

Trade payables and accrued expenses
Derivative financial instruments

2,200
(79)

(2,200)155(2,200)
104

–
31

–
20

–
–

–
–

–
–

–
–

–
–

–
(79)

–
155

–
104

–
31

–
20

–
–
–
–
–
–
–
–

89
(6,391)
6,480
66(1,503)
1,569
–
–

89
(6,391)
6,480
15
(205)
220
–
–

–
–
–
31
(766)
797
–
–

–
–
–
20
(532)
552
–
–

14,547(16,360)(4,668)(5,855)(5,837)(in € millions)Non-derivative financial instruments
Bonds

Interest rate risk
Interest rate swaps
Other interest rate derivatives
Foreign exchange risk
Currency forwards and currency swaps
Outflows
Inflows
Other foreign currency derivatives
Outflows
Inflows
Other market risks
Precious metals hedges

TOTAL

Dec. 31, 2022

Non-derivative financial instruments
Bonds
Commercial paper
Other borrowings
Trade payables and accrued expenses
Derivative financial instruments
Interest rate risk
Interest rate swaps
Other interest rate derivatives

Carrying
amount
8,905
4,226
1,010
1,406
2,263
(62)
–
–
–

Cash flow(9,164)(4,238)(1,011)(1,652)(2,263)51–––

Less than
one year(4,582)(600)(1,011)(708)(2,263)44–––

One to fiveyears
(3,118)(2,238)
–
(880)
–
7
–
–
–

More than
five years(1,464)(1,400)
–
(64)
–
–
–
–
–

Foreign exchange risk
Currency forwards and currency swaps

(62)
–

51
30

44
30

7
–

–
–

Outflows
Inflows––(6,740)6,770(6,740)
6,770

–
–

–
–

Other foreign currency derivatives
Outflows

–
–

21
(485)

14
(281)

7
(204)

–
–

Inflows
Other market risks

–
–

506
–

295
–

211
–

–
–

(in € millions)

Precious metals hedges

TOTAL

–

–

–

–

–

8,843

(9,113)(4,538)(3,111)(1,464)KERING - 2023 Universal Registration Document

359 —

6

6

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 22 – FINANCIAL LIABILITIES
22.1 Breakdown of financial liabilities(in € millions)

Derivative instruments
Non-current financial liabilities
Derivative instruments
Kering SA interim dividend
Other
Current financial liabilities

Dec. 31, 2023
13
13
33
552
3
588

Dec. 31, 2022
–
–
101
558
4
663

Dec. 31, 2023
33
33

Dec. 31, 2022
101
10122.2 Financial liabilities measured at fair value(in € millions)

Derivative Instruments
Financial liabilities measured at fair value

Derivative financial instruments are measured using valuation techniques based on observable market parameters (including forward
prices and yield curves) and commonly used models (level 2 fair value).

NOTE 23 – PROVISIONS FOR PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
23.1 Description of the main pension plans and other post-employment benefits
Depending on each country’s laws and customs, the Group’s
employee receive long-term or post-employment benefits inaddition to their short-term remuneration. These additional
benefits take the form of defined contribution or defined benefit
plans.
Under defined contribution plans, the Group is not obliged tomake any additional payments beyond contributions alreadymade. Contributions to these plans are expensed as incurred.
An actuarial valuation of defined benefit plans is carried out by
independent experts. These benefits primarily concern
mandatory supplementary pension plans in Switzerland,
statutory severance pay in Italy, and retirement termination
payments and long-service bonuses in France.

Mandatory supplementary pension plans(LPP) – Switzerland
In Switzerland, pension plans are defined contribution plans thatguarantee a minimum interest rate credited to pension assets
and provide for a fixed salary conversion rate on retirement.
However, the pension plans operated by the Group’s entities in
Switzerland offer benefits over and above those mentioned in the
LPP/BVG pension act. Consequently, a provision is booked in
respect of defined benefit plans for the amounts that exceed LPP/
BVG pension act requirements.
These pension plans are generally operated as separate legal
entities in the form of a foundation, which may be a collective
institution or affiliated to a specific plan. The Board of Trustees ofthese foundations, comprising an equal number of employer andemployee representatives, is responsible for administering theplan and bears the investment and longevity risks. Collective
foundations insure some of their risk with an insurance company.

— 360

KERING - 2023 Universal Registration Document

Statutory severance pay (TFR) – Italy
The TFR (Trattamento di Fine Rapporto) plans in Italy werecreated by Italian act no. 297, adopted on May 29, 1982, and areapplicable to all workers in the private sector on the terminationof their employment for any reason (resignation, termination at
the employer’s initiative, death, incapacity or retirement). Since
2007, companies with at least 50 employees have had to transfer
their TFR funding to an external fund manager. This concerns thelarge majority of plans operated by Kering group companies.

Retirement termination payments and longservice bonuses – France
In France, retirement termination benefits are fixed and paid bycompanies to their employees on retirement. The amount paid
depends on the number of years of service on retirement, and isdefined in the relevant collective bargaining agreement. The
payments do not confer any vested entitlement to employees
until they reach retirement age. Retirement termination benefits
are not related to other statutory retirement benefits such aspensions paid by social security bodies or top-up pension funds
such as ARRCO and AGIRC in France, which are defined
contribution plans.
Long-service bonuses are not compulsory in France – i.e. there is
no legal obligation to pay these awards to employees – but theyhold symbolic value. Nevertheless, some of Kering’s French
entities choose to pay long-service bonuses after 20, 30, 35 and40 years of service.

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

23.2 Provisions for pensions and other long-term benefits
Provisions on the balance sheet include provisions for defined-benefit post-employment plans and other long-term benefits:(in € millions)Non-current provisions
Current provisions

Dec. 31, 2023
68
12

Dec. 31, 2022
66
12

80

78

PROVISIONS FOR PENSIONSAND OTHER POST-EMPLOYMENT BENEFITS
2023(in € millions)

As of January 1
Current service cost
Past service cost
Plan amendments

Present valueof benefit
Fair value
obligation of plan assets
132
54
10
–
1
–
–
–

2022
Change during the period

Provisions forpensions andother postemployment
benefits
78
10
1–

Gains andlossesrecognized inequity––––Incomestatement–
10
1–

Provisions forpensions andother postemployment
benefits
101
11
–
–

Interest cost on the benefit
obligation

4

–

4

–

4

1

Interest incomeon plan assets

–

1

(1)

–

–

–

Contributions paidby employees

3

3

–

–

–

–

Contributions paidby employer
Benefits paid
Actuarial gains and losses:

–
(16)
(2)

3
(8)
–

(3)
(8)
(1)

–
–
(1)

–
–
–

(3)
(6)
(30)

Changes in demographic
assumptions

(1)

–

(1)

–

–

1

Changes in financial
assumptions
Experience adjustments

(1)
–

–
–

(1)
–

–
–

–
–

(35)
5

Return on plan assets(excluding interest)
Insurance contracts
Administrative expenses
Changes in scope
Assets held for sale
Foreign exchange differences
As of December 31

–
–
–
2
–
4
136

–
–
–
1
–
3
56

–
–
–
1
–
–
80

–
–
–
–
–
–
(1)

–
–
–
–
–
–
14

(1)
–
–
2
–
2
78

Obligation fundedby plan assets

71

–

–

–

–

–

Obligation not fundedby plan assets

65

–

–

–

–

–

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

23.3 Actuarial assumptions used to estimate the present value of the benefit
obligation

Average maturity of plans (in years)
Discount rate
Expected rate of increase in salaries
Inflation rate

France
2023
11.2
4.50%
2.92%
2.00%

2022
10.4
4.00%
2.99%
2.00%

Switzerland
2023
2022
11.4
9.6
2.00%
2.25%
1.40%
1.30%
1.30%
1.10%

Italy
2023
8.2
4.50%
3.00%
2.00%

2022
9.4
4.00%
3.00%
2.00%

Sensitivity tests on actuarial assumptions show that the impact of a 50 basis-point increase or decrease in the discount rate would not
be material and would represent less than 0.05% of consolidated equity as of December 31, 2023.

23.4 Breakdown of the present value of the benefit obligation by country
Dec. 31, 2023
68
35
22
11
136

(in € millions)

Switzerland
Italy
FranceOther
Present value of benefit obligation

Dec. 31, 2022
67
34
21
11
132

23.5 Fair value of plan assets by type of financial instrument
Dec. 31, 2023%

Dec. 31, 2022%

Debt instruments
Equity instruments

11
22

20%
39%

11
20

21%
37%

Real estate
Insurance contracts

13
–

23%
0%

13
–

25%
0%

Derivative instruments
Cash and cash equivalents

4
2

7%
4%

4
2

8%
4%

Other assets
Fair value of plan assets

3
56

6%
100%

3
54

5%
100%

(in € millions)

In 2024, the Group intends to contribute €3 million to funded plans.

— 362

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 24 – PROVISIONS AND CONTINGENT LIABILITIES(in € millions)Non-current provisions
Current provisions

Dec. 31,
2022
19
168

TOTAL

187

Reversals
Reversals(utilized(surplus
Charge provisions) provisions)
1
(2)
–
68
(68)
(11)

69

(70)

Foreign
Changesexchange
Otherin scope differences movements
2
(1)
2
1
–
5

(11)

3

(in € millions)

Provision for restructuring costs
Vendor warranties
Disputes and other contingencies

TOTAL

(1)

Dec. 31,
2023
21
163

7

184

Dec. 31, 2023
64
23
97

Dec. 31, 2022
53
23
111

184

187

Litigation and disputes
Group companies are involved in a number of lawsuits ordisputes arising in the normal course of business. According totheir management and legal counsel, no disputes currently inprogress are likely to have a material impact on the Group’s
normal and foreseeable operations or on its planneddevelopment.
The Group believes there are no known disputes likely to have amaterial impact on its net assets, earnings or financial position
that are not adequately covered by provisions recorded as of theend of the reporting period. No individual claim against theparent company or against any of its subsidiaries is material withrespect to the parent company or the Group.
The Group is not aware of any arbitration proceedings that have
had in the recent past, or are likely to have in the future, amaterial impact on the financial position, activity or earnings of
the Company or Group.

Vendor warranties
Provisions recorded in respect of vendor warranties were unchanged in 2023.

Contingent liabilities
To the best of the Group’s knowledge, there are no material contingent liabilities.

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTES ON THE CONSOLIDATED STATEMENTOF CASH FLOWSNOTE 25 – CASH AND CASH EQUIVALENTS AS REPORTEDIN THE STATEMENT OF CASH FLOWS(in € millions)

Cash and Cash equivalents as reported in the balance sheet
Bank overdrafts
Cash and Cash equivalents as reported in the statement of cash flows

Dec. 31, 2023
3,922

Dec. 31, 2022
4,336

(272)
3,650

(242)
4,094

NOTE 26 – CASH FLOW RECEIVED FROM OPERATINGACTIVITIESNet income from continuing operations

2023
3,074

2022
3,717

Net recurring charges to depreciation, amortization and provisions
on non-current operating assets
Other non-cash income and expenses
Non-cash recurring operating income and expenses:
Fair value of operating foreign exchange rate hedges
Other
Other non-cash income and expenses
Impairment of goodwill, brands and other non-current assets
Fair value of foreign exchange rate hedges in financial result
Deferred tax expense (income)
Share in earnings (losses) of equity-accounted companies
Other
Cash flow received from operating activities

1,823
94
(307)
(247)
(60)
401
70
228
156
(4)
(49)
4,991

1,666
(334)
135
284
(149)
(469)
41
(386)
(177)
(2)
55
5,049

(in € millions)

NOTE 27 – CHANGE IN WORKING CAPITAL REQUIREMENT(in € millions)

Change in Inventories
Change in trade receivables and accrued income
Change in trade payables and accrued expenses
Change in other operating receivables and payables
Change in working capital requirement— 364

KERING - 2023 Universal Registration Document

2023
(102)
24
(126)
(192)
(396)

2022
(1,015)
(196)
494
(185)
(902)

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 28 – ACQUISITIONS OF PROPERTY, PLANT
AND EQUIPMENT AND INTANGIBLE ASSETS(in € millions)

Acquisitions of property, plant and equipment(1)2023(2,607)

2022
(952)

(311)
324

(275)
176

(18)
(2,611)(19)(1,071)

Acquisitions of intangible assets
Change in amounts due in respect of non-current assets
Lease set-up costs
Acquisitions of property, plant and equipment and intangible assets(1) Acquisitions during the period mainly correspond to the acquisition of strategic real estate assets in Paris. (cf. Note 1).

NOTE 29 – FINANCING ACTIVITIES AND CHANGE
IN BORROWINGS
Borrowings(in € millions)

As of January 1, 2023

Current Non-current
2,295
4,347

Lease
liabilities–

Other assets
andliabilities–

Equity
–

Total
6,642

Kering SA capital increase
Dividends paid to shareholders of Kering SA

–
–

–
–

–
–

–
–

–
(1,712)–(1,712)

Dividends paid to minority interests
in consolidated subsidiaries
Transactions with minority interests

–
–

–
–

–
–

–
–

(42)
(24)

(42)
(24)

(Acquisitions) disposals of Kering
treasury shares
Issuance of bonds and bank debt

–
–

–
6,205

–
–

–
–

(10)
–

(10)
6,205

Redemption of bonds and bank debt
Issuance (redemption) of other borrowings

(957)
174

–
–

–
–

–
–

–
–

(957)
174

Repayment of lease liabilities
Interest paid and equivalent

–
(98)

–
–

(880)
(151)

–
(128)

–
–

(880)
(377)

Net cash received from (used in)financing activities
Changes in scope
Foreign exchange differences

(882)
258
(22)

6,205
–
(5)

(1,030)
–
–

(128)
–
–

(1,788)
–
–

2,377
–
–

Changes in put options granted
to minority interests
Other movements
As of December 31, 2023

54
697
2,400

4
(525)
10,026

–
–
–

–
–
–

–
–
–

–
–
–

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

(in € millions)

As of January 1, 2022
Kering SA capital increase
Dividends paid to shareholders of Kering SA

Borrowings
Current Non-current
2,442
2,976
–
–
–
–

Lease
liabilities
–
–
–

Other
assets andliabilities–––

Equity–38(1,483)

Total–
38(1,483)

Dividends paid to minority interests
in consolidated subsidiaries
Transactions with minority interests

–
(29)

–
(1)

–
–

–
–

(45)
347

(45)
317

(Acquisitions) disposals of Kering
treasury shares
Issuance of bonds and bank debt
Redemption of bonds and bank debt
Issuance (redemption) of other borrowings
Repayment of lease liabilities
Interest paid and equivalent

–
–
(904)
343
–
(67)

–
1,742
–
–
–
–

–
–
–
–
(824)
(124)

–
–
–
–
–
(107)

(1,030)–––––(1,030)
1,742
(904)
343
(824)
(298)

Net cash received from (used in)financing activities
Changes in scope
Foreign exchange differences

(658)
–
(21)

1,741
–
(6)

(948)
–
–

(107)
–
–

(2,172)––(2,144)––

Changes in put options granted
to minority interests
Other movements
As of December 31, 2022

23
509
2,295

362
(725)
4,347

–
–
–

–
–
–

–
–
–

–
–
–

OTHER DISCLOSURESNOTE 30 – OFF-BALANCE SHEET COMMITMENTS
30.1 Main vendor warranties granted in connection with asset disposals
In relation to the disposal of certain businesses, the Group has granted customary vendor warranties in respect of certain fundamental
representations, along with some specific capped and time-limited warranties. Provisions have been set aside in respect of some
vendor warranties (cf. Note 24).

30.2 Off-balance sheet commitments relating to leases
Payments due by period(in € millions)Leases signed but effective after December 31, 2023
Short-term leases
Leases with a low-value underlying asset
Lease commitments given— 366

KERING - 2023 Universal Registration Document

Less than
one year

One to five
years

63
14
2
79

320
–
3
323

More than
five years Dec. 31, 2023 Dec. 31, 2022
478
–
2
480

861
14
7
882

645
15
14
674

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

30.3 Other commitments given and received in the course of the Group’s operations
Other commitments given and received in the course of the Group’s operations can be analyzed as follows:(in € millions)Binding purchase commitments
Customs deposits and other guarantees
in respect of operations

Payments due by periodLess than
One to fiveMore than
one year
years
five years Dec. 31, 2023 Dec. 31, 2022
117
9
126
118

Other commitments given
Other commitments received

63
180
43

75
84
-

61
61
1

198
325
44

193
311
30

As part of its proactive strategy to offset its carbon emissions, on February 16, 2023 Kering undertook to invest up to €100 million in a
carbon fund managed by Natixis subsidiary Mirova.
The commitment given by the Kering group as of December 31, 2023 amounted to €91 million.

30.4 Other commitments given
In relation to the purchase of a stake in Valentino (cf. Note 15), the commitment to acquire the remaining 70% was estimated at around€4 billion as of the accounts closing date.

NOTE 31 – TRANSACTIONS WITH RELATED PARTIES
31.1 Related party controlling the Group
Kering SA is controlled by Artémis, which in turn is wholly owned by Financière Pinault.

% capital held by the Artémis group in Kering SA% of voting rights held by the Artémis group in Kering SA
Dividend paid for Year Y-1 (in € millions)Interim dividend paid for Year Y (in € millions)
Fees for the period (in € millions)

Dec. 31, 2023
42.2%
59.3%
730
234
7

Dec. 31, 2022
42.0%
59.3%
625
235
7

The Group pays fees to Artémis for (i) business development consulting services and complex transaction support, and (ii) the supply ofdevelopment opportunities, new business and cost reduction solutions. These fees are governed by an agreement reviewed by the
Audit Committee and approved by the Board of Directors.

31.2 Remuneration paid to members of the Board of Directors and the Group’s
Executive Committee(in € millions)

Wages and salaries
Payroll taxes
Termination indemnities
Short-term remuneration
Post-employment benefits
Other long-term benefits
Share-based payment
Long-term remuneration

TOTAL

2023
42
8
8
58
1
20
19
39

2022
41
7
–
48
1
25
2
29

97

77

Short-term remuneration corresponds to amounts paid during the year, whereas long-term remuneration corresponds to amounts
recognized as expenses in the period.

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 32 – STATUTORY AUDITORS’ REMUNERATION
Kering SA
Fully-consolidated subsidiaries
Statutory audit
Kering SA(3)Fully-consolidated subsidiaries
Non-audit services

PwC (1)
2023
0.7
4.7
5.4
0.1
3.7
3.8

TOTAL

9.2

Fees for fiscal year 2023
(in € millions, excluding tax and disbursements)

2022
0.6
3.9
4.5
0.1
3.7
3.8

Deloitte (2)
2023
2022
0.9
0.8
4.2
3.5
5.1
4.3
0.6
0.4
0.4
0.3
1.0
0.7

Total
2023
1.6
8.9
10.5
0.7
4.1
4.8

2022
1.4
7.5
8.9
0.6
4.0
4.6

8.4

6.1

15.3

13.5

5.1

(1) Of which PwC network: €3.8 million in 2023 with respect to statutory audit services and €3.7 million with respect to non-audit services (In 2022:€3.2 million with respect to statutory audit services and €3.8 million with respect to non-audit services).
(2) Of which Deloitte network: €3.7 million in 2023 with respect to statutory audit services and €0.6 million with respect to non-audit services. (In2022: €3.2 million with respect to statutory audit services and €0.5 million with respect to non-audit services).
(3) The non-audit services rendered by PwC to Kering SA and its fully-consolidated subsidiaries are mainly related to comfort letters. The nonaudit services rendered by Deloitte & Associés to Kering SA and its fully-consolidated subsidiaries are mainly related to comfort letters and theverification of the consolidated non-financial performance statement.

— 368

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 33 – ACCOUNTING POLICIES AND METHODS
33.1 Basis of preparation of the consolidated financial statements
33.1.1 Changes to the IFRS basis

33.1.2 Changes to legislation

Standards, amendments and interpretations mandatorily
applicable from January 1, 2023, analysis of which has led to theconclusion that they have no effect or a non-material effect on
the consolidated financial statements for the period ended
December 31, 2023, are presented below:• Amendment to IAS 1 "Presentation of Financial Statements"
regarding the disclosure of accounting policies;• Amendment to IAS 8 "Accounting Policies, Changes in
Accounting Estimates, and Errors" regarding the definition of
accounting estimates;• Amendment to IAS 12 "Income taxes" regarding deferred tax
related to assets and liabilities arising from a single
transaction;• Amendment to IFRS 16 "Leases" regarding lease liability in asale and leaseback;• Amendment to IAS 12 "Income Taxes" regarding internationaltax reform and the Pillar Two model rules.

On April 14, 2023, France’s pension reform act became law. The
measures resulting from that reform were taken into accountwhen determining the Group’s liabilities as of December 31, 2023.
The impact shown by that analysis is not material for the Group.

The amendment to IAS 12, published by IASB on May 23, 2023 andimmediately applicable to accounting periods starting on or afterJanuary 1, 2023, has been endorsed by the European Union.
This amendment to IAS 12 follows the publication of the Pillar
Two international tax reform by the Organisation for Economic
Co-operation and Development (OECD) in December 2021. The
aim of the reform is to ensure that companies with consolidated
revenue or consolidated assets of more than €750 million (asdisclosed in their consolidated financial statements for two
consecutive years) pay a minimum effective income tax rate of
15% in each of the jurisdictions in which they operate.
The amendment to IAS 12 provides for:• A temporary exemption from the recognition of deferred tax
resulting from the implementation of this Pillar Two reform;• Specific disclosures in the notes to the consolidated financial
statements, allowing readers to understand the Group’s
exposure based on information that is known or canreasonably be estimated;• Separate presentation of the current tax that will result fromthe application of the Pillar Two provisions (after they comeinto force).
Simulations performed by the Group on previous years show anon-material impact as of the date of the reform.
• IFRS 17 "Insurance contracts" and amendments to IFRS 17
published in May 2017, June 2020 and December 2021.
IFRS 17, which is also mandatorily applicable for accounting
periods starting on or after January 1, 2023, does not apply to theGroup’s consolidated financial statements, since its captive
insurance companies only operate internally and Groupsubsidiaries are their only insured beneficiaries.

33.1.3 Use of estimates and judgment
The preparation of consolidated financial statements requires
Group management to make estimates and assumptions that
can affect the carrying amounts of certain assets and liabilities,
income and expenses, and the disclosures in the accompanying
notes. Group management reviews these estimates andassumptions on a regular basis to ensure they are appropriate inview of past experience and the current economic situation.
Items in future financial statements may differ from current
estimates as a result of changes in current assumptions.
The main estimates made by the Group’s management when
preparing the consolidated financial statements concern:• goodwill;• the useful lives associated with property, plant andequipment and intangible assets;• contingency provisions and uncertain tax positions;• inventory impairment provisions;• assumptions used to calculate lease right-of-use assets andlease liabilities;• provisions for pensions and long-term remuneration
including share-based payment;• the recognition of deferred tax assets;• and certain financial instruments.
In its main estimates and in its risk analysis, the Group hastaken into account:• the impact of commitments and decisions made regarding
the reduction of carbon emissions, in particular whencarrying out impairment tests;• the current macroeconomic context, including the increase ininflation, even though the Group has little exposure to it.
Hyperinflation in certain countries, particularly Turkey andArgentina, has no material impact on the Group’s
consolidated financial statements;• official inflation rates published to determine the actuarial
assumptions used to calculate post-employment benefits
and the discount rates used in carrying out impairment tests
and devising medium-term plans.
In addition to the use of estimates, Group management uses
judgment to determine the appropriate accounting treatment ofcertain transactions, pending the clarification of certain IFRSs or
where prevailing standards do not cover the issue at hand.

Finally, as of the accounts closing date, the Group was in theprocess of analyzing the impact of standards, amendments andinterpretations applicable on or after January 1, 2024.

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

33.1.4 Climate challenges
Reflection of climate challenges in the financial
statements
Since 2022, Kering’s Sustainable Finance Department has
ensured that the Group’s financial statements reflect climate
issues, that the Group complies with new regulations in this area,
and that environmental issues play an integral part in Kering’s
decision-making processes, particularly as regards investments.
In accordance with the recommendation of the Task Force on
Climate-Related Financial Disclosures (TCFD), Kering has
assessed the financial impact of specific climate risks. The
analysis carried out so far does not show any material impact on
the Group’s financial statements.
In 2023, Kering began work in view of the entry into force of the
Corporate Sustainability Reporting Directive (CSRD), involving allinternal stakeholders and departments concerned (RiskManagement, Finance, HR and Legal Departments,
representatives of the Houses etc.). That work included changing
the approach to materiality analysis by adopting a double
materiality analysis approach, the methodology of which was
determined with the help of an independent consultancy in linewith the European Sustainability Reporting Standards(particularly ESRS 1 and 2). The review of issues, impacts and theassociated risks and opportunities took account of risk factors
already identified by the Group.
Work carried out in 2022 and 2023 led to the conclusion that theGroup’s climate issues had no impact on the revenue and margin
figures used in carrying out impairment tests. Only the cost ofcarbon offsetting, historically allocated to Corporate and Other
segment, has been allocated to the trajectories of each CGU orgroup of CGUs in proportion to their estimated consumption.

Proactive carbon offsetting strategy
At the 15th Conference of Parties (COP) of the Convention on
Biological Diversity, which took place in Montreal in December
2022, Kering and upscale sustainable cosmetics company
L’Occitane announced that they were teaming up to create the
Climate Fund for Nature.
As part of its proactive strategy to offset its carbon emissions, on
February 16, 2023 Kering undertook to invest up to €100 million
in a carbon fund managed by Natixis subsidiary Mirova. This
commitment to the Climate Fund for Nature will be fulfilled
gradually, mainly in the first eight years, through successive calls
for funds driven by the funding needs of projects.
The fund invests in carbon removal and avoidance projects
involving nature-based solutions that generate carbon credits for
Kering and other co-investors. Those carbon credits aretransferred to its shareholders as and when they are delivered
through a forward purchase agreement recognized under offbalance sheet commitments, and purchases of carbon credits for
Kering’s own use will be recognized as they arise and at thecontractual price.

Signature of a collective power purchaseagreement
On December 8, 2022, The Fashion Pact announced that its
members had begun plans for a Collective Virtual Power
Purchase Agreement (CVPPA), the aim of which is to speed up— 370

KERING - 2023 Universal Registration Document

adoption of renewable energy sources by investing in new clean
energy infrastructure, initially in Europe.
As part of those plans, on October 12, 2023 Kering signed arenewable power purchase agreement, involving no physicaldelivery, with Spain’s Caletona Servicios y Gestiones. Energy
certificates arising from renewable energy production – under theEuropean Energy Certificate System (EECS®) – will be transferredto the Kering group as the agreement is performed.
The agreement is for a 10-year term starting on the commercial
operation date, which is likely to be March 1, 2026.
Since the agreement was signed in late 2023, the impact on thefinancial statements on the accounts closing date was notmaterial.

33.1.5 Use of alternative performanceindicators
The alternative performance indicators used by the Group andpresented in the consolidated financial statements are:Recurring operating income and other nonrecurring operating income and expenses
The Group’s operating income includes all revenues andexpenses directly related to its activities, whether these revenues
and expenses are recurring or arise from non-recurring decisions
or transactions.
Other non-recurring operating income and expenses consist ofitems that, by their nature, amount or frequency, could distort theassessment of the Group’s operating performance as reflected in its
recurring operating income. They include changes in scope, theimpairment of goodwill and brands and, where material, ofproperty, plant and equipment and intangible assets, capital gains
and losses on disposals of non-current assets, restructuring costs
and disputes (cf. Note 7).
"Recurring operating income" is therefore an alternative
performance indicator for the Group, defined as the difference
between operating income and other non-recurring operating
income and expenses. This indicator is intended to facilitate theunderstanding of the operating performance of the Group and its
Houses and can therefore be used as a way to estimate recurring
performance. It is presented in a manner that is consistent andstable over the long-term in order to ensure the continuity andrelevance of financial information (cf. Note 3).

EBITDAThe Group uses EBITDA as an alternative performance indicator
to monitor its operating performance. This financial indicator
corresponds to recurring operating income plus net charges todepreciation, amortization and provisions on non-current
operating assets recognized in recurring operating income (cf.
Note 3).

Effective tax rate on recurring income
The effective tax rate on recurring income corresponds tothe effective tax rate excluding tax effects relating to other nonrecurring operating income and expenses (cf. Notes 7 and 9).

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Net debt
Net debt is one of the Group’s main financial indicators, and isdefined as borrowings less cash and cash equivalents. Leaseliabilities are not included in the calculation of this indicator.
Borrowings include put options granted to minority interests (cf.
Note 33.21).

The cost of net debt corresponds to all financial income andexpenses associated with these items, including the impact ofderivative instruments used to hedge the fair value of borrowings(cf. Note 8).

33.2 Consolidation principles
The Group’s consolidated financial statements include thefinancial statements of the companies listed in Note 34. They
include the financial statements of companies acquired as fromthe acquisition date and companies sold up until the date ofdisposal.

33.2.1 Subsidiaries
Subsidiaries are all entities (including structured entities) overwhich the Group exercises control. Control is defined according
to three criteria: power over the investee; exposure, or rights, tovariable returns from involvement with the investee; and theability to exert power over the investee to affect the amount of
the investor’s returns. This definition of control implies thatpower over an investee can take many forms other than simply
holding voting rights. The existence and effect of potential voting
rights are considered when assessing control, if the rights aresubstantive. Control generally implies directly or indirectly
holding more than 50% of the voting rights but can also exist
when a smaller proportion of voting rights is held.
Subsidiaries are consolidated from the effective date of control.
Intercompany assets and liabilities as well as transactions
between consolidated companies are eliminated. Gains andlosses on internal transactions with controlled companies are
fully eliminated.

33.2.2 Associates
Associates are entities in which the Group exercises a significant
influence over the entity’s management and financial policy,
without exercising control or joint control. Significant influence
generally implies holding 20% to 50% of the voting rights.
Associates are accounted for under the equity method. They are
initially measured at cost, except when the associates werepreviously controlled by the Group, in which case they
are measured at fair value as of the date control is lost and theimpact is recognized in the income statement.
In subsequent periods, the share in profits or losses of the associate
attributable to the Group is recognized in "Share in earnings (losses)of equity-accounted companies", and the share in othercomprehensive income of associates is carried on a separate line of
the statement of comprehensive income. If the Group’s share in thelosses of an associate equals or exceeds its investment in thatassociate, the Group no longer recognizes its share of losses, unlessit has legal or constructive obligations to make payments on behalfof the associate.
Goodwill related to an associate is included in the carrying amountof the investment, presented separately within "Investments inequity-accounted companies" in the balance sheet.

33.2.3 Business combinations
Business combinations, where the Group acquires control of one
or more other activities, are recognized using the acquisition
method.
Business combinations are recognized and measured inaccordance with the provisions of IFRS 3. Accordingly, theconsideration transferred is measured at the fair value of theassets transferred, equity interests issued and liabilities incurredby the acquirer at the date of exchange. Identifiable assets andliabilities are generally measured at their fair value on theacquisition date. Costs directly attributable to an acquisition arerecognized within other non-recurring operating expenses in theincome statement.
Goodwill is recognized to represent the difference between theGroup’s share of the identified assets and liabilities measured atfair value. If the difference is negative, a gain is immediately
recognized in the income statement within other non-recurring
operating income.
The Group may choose to measure any minority interests resulting
from each business combination at fair value (full goodwill method)or at the proportionate share in the identifiable net assets acquired,
which are also generally measured at fair value (partial goodwill
method).
Goodwill is determined at the date of control over the acquired
entity is obtained and may not be adjusted after themeasurement period. No additional goodwill is recognized on
any subsequent acquisition of minority interests. Acquisitions
and disposals of minority interests are recognized directly inequity attributable to the Group.
The accounting for a business combination must be completed
within 12 months of the acquisition date. This applies to themeasurement of identifiable assets and liabilities, considerationtransferred and minority interests.

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

33.3 Foreign currency translation
33.3.1 Functional and presentation
currency

The treatment of currency hedges in the form of derivatives is
described in Note 33.17.

Items included in the financial statements of each Group entity
are valued using the currency of the primary economic
environment in which the entity operates (functional currency).
The Group’s consolidated financial statements are presented ineuros, which serves as its presentation currency.

33.3.3 Currency translation of foreignsubsidiaries’ financial statements

33.3.2 Foreign currency transactions
Transactions denominated in foreign currencies are recognized in
the entity’s functional currency at the exchange rate prevailingon the transaction date.
Monetary items (assets and liabilities) in foreign currencies aretranslated at the closing exchange rate at the end of each reporting
period. Any foreign exchange gains and losses resulting from thistranslation or from the settlement of these monetary items arerecognized within other financial income and expenses in theincome statement.
Non-monetary items in foreign currencies valued at historical cost
are translated at the rate prevailing on the transaction date, andnon-monetary items in foreign currencies measured at fair value aretranslated at the rate prevailing on the date the fair value isdetermined. When a gain or loss on a non-monetary item isrecognized directly in equity within other comprehensive income,similar treatment is applied to the foreign exchange component of
this gain or loss. Otherwise, the component is recognized in theincome statement.

The income statements and balance sheets of Group entities
with a functional currency that differs from the presentation
currency are translated into euros as follows:• items recorded in the balance sheet other than equity aretranslated at the exchange rate at the end of the reporting
period;• items in the income statement are translated at the averageexchange rate for the period, corresponding to an
approximate value for the rate at the transaction date in theabsence of significant fluctuations;• translation differences are recognized directly in equity
within other comprehensive income as currency translation
adjustments.
Goodwill and fair value adjustments arising from a businesscombination with a foreign activity are recognized in thefunctional currency of the entity acquired. They are subsequently
translated into the Group’s presentation currency at the closing
exchange rate, and any resulting differences are recognizeddirectly in equity within other comprehensive income as currencytranslation adjustments.

33.4 Operating segments
In accordance with IFRS 8, segment information is reported on
the same basis as used internally by the Chairman and Chief
Executive Officer and the Group Managing Director – the Group’s
chief operating decision makers – to allocate resources tosegments and assess their performance.
An operating segment is a separate component of the Group thatengages in business activities from which it may earn revenues
and incur expenses, whose operating results are regularly
reviewed by the entity’s chief operating decision maker, and forwhich discrete financial information is available. Each operating
segment is monitored separately for internal reporting purposes,
according to performance indicators common to all of theGroup’s segments. The segments presented are operating
segments or groups of similar operating segments.
Financial information provided on operating segments is
prepared in accordance with the same accounting rules as in the
consolidated financial statements.

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The performance of each operating segment is measured basedon recurring operating income, which is the approach used by theGroup’s chief operating decision maker.
Recurring charges to depreciation, amortization and provisions
on non-current operating assets reflect net charges todepreciation, amortization and provisions on intangible assets,lease right-of-use assets and property, plant and equipment
recognized in recurring operating income.
Acquisitions of property, plant and equipment and intangible
assets correspond to gross non-current asset purchases,
including cash timing differences, as presented in the
consolidated cash statement.
The presentation of revenue by region is based on the geographic
location of clients.

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

33.5 Revenue
Revenue mainly comprises sales of goods, together with income
from associated services and income from royalties andoperating licenses.

33.5.1 Sales of goods and associatedservices
Sales of goods, whether they take place through a store networkor online (retail activity including e-commerce) or wholesale
operations, are recognized when the Group satisfies its
performance obligation to its clients, typically upon delivery.
When a customer (particularly in the wholesale and e-commercebusinesses) has a contractual right of return or routinely makes
returns, a specific provision is set aside. When such returns are
not contractual, the provision for returns is estimated based on

historical data. Provisions for returns are presented in thebalance sheet under liabilities in respect of future refunds. An
asset (with an offsetting adjustment corresponding to the cost of
sales) representing the right to recover the goods from the clientis also recognized.

33.5.2 Royalties from operating licenses
Royalties received with respect to operating licenses arerecognized in accordance with the contractual obligations
specific to each agreement, over time as the performanceobligation is satisfied, for example, when calculated based on thevalue of the underlying sales generated by the licensee under theagreement.

33.6 Personnel expenses
Personnel expenses primarily consist of wages, salaries and payroll
taxes, expenses relating to pensions and other post-employment
benefits under defined benefit plans (see Note 33.22), and expenses
related to share-based payments (see Note 33.7). Wages, salaries
and payroll taxes include fixed remuneration, variable short-term

remuneration, long-term remuneration plans, expenses related to
employee profit-sharing and other incentive plans, and any
associated payroll taxes. Other personnel expenses include
severance paid to individual employees or as part of a restructuringplan, and directors’ fees paid to directors of Group entities.

33.7 Share-based payment
The Group may operate long-term variable remuneration plansthat feature share-based payments. These plans are classified
as either cash-settled plans or plans settled in Kering shares.
• Cash-settled plans result in the recognition of personnel
expenses in the income statement spread over theentitlement vesting period, along with a matching liability inthe balance sheet. The fair value of the benefit granted to thebeneficiaries is remeasured at the end of each reporting
period, taking into account any changes in market-based orinternal performance conditions.
• Plans settled in Kering shares result in the recognition of
personnel expenses in the income statement spread over theentitlement vesting period, and of an offsetting entry inequity attributable to the Group. The fair value of the benefit
granted to the beneficiaries is set at the grant date of the planusing the Black & Scholes and Monte Carlo models, whichtake into account the impacts of any market-based
performance conditions from the inception of the plan. The
impacts of any internal-based performance conditions are
remeasured at the end of each reporting period.
The payroll taxes relating to these long-term variable
remuneration plans are also recognized in personnel expenses in
the income statement as and when entitlements under the plansvest, with a matching liability in the balance sheet, regardless ofwhether the plans are settled in cash or in Kering shares. These
payroll taxes are remeasured at the end of each reporting period
based on the most certain assumptions as regards the outcomeof the plans. Payroll taxes relating to plans settled in Kering
shares reflect the best estimate of the number of shares to bedelivered upon expiry of the plan at the end of each reporting
period.

33.8 Income taxes
Income tax expense comprises the current and deferred tax
expense.
Deferred tax is calculated using the liability method on all
temporary differences between the carrying amount recorded in
the consolidated balance sheet and the tax value of assets andliabilities, except for goodwill that is not deductible for tax
purposes and certain other exceptions. The valuation of deferred
tax balances depends on the way in which the Group intends torecover or settle the carrying amount of assets and liabilities,
using tax rates that have been enacted or substantively enacted
at the closing date.
Deferred tax assets and liabilities are not discounted and arepresented separately in the balance sheet within non-current
assets and liabilities.

A deferred tax asset is recognized on deductible temporary
differences and for tax loss and credit carry-forwards to theextent that their future offset is probable.
A deferred tax liability is recognized on taxable temporary
differences relating to investments in subsidiaries and associates
unless the Group is able to control the timing of the reversal of
the temporary difference, and it is probable that the temporary
difference will not reverse in the foreseeable future.
Uncertain income tax positions are analyzed and reviewed
internally in accordance with IAS 12 and IFRIC 23 and are shownon the balance sheet in the "current tax liabilities" line item.

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

33.9 Earnings per share
Earnings per share is calculated by dividing net income
attributable to the Group by the weighted average number ofordinary shares outstanding during the period, i.e. without taking
account of the weighted average number of Kering treasury
shares held by the Group during the period.
Diluted earnings per share equals net income attributable to theGroup divided by the weighted average diluted number of shares
outstanding during the period, adjusted for the dilutive effectarising from free share grants.

Earnings per share from continuing operations excluding nonrecurring items is also calculated by adjusting net income fromcontinuing operations attributable to the Group for the amountof non-recurring items net of tax. Non-recurring items correspondto other non-recurring operating income and expenses in theincome statement (cf. Note 33.1.5).

33.10 Goodwill
Goodwill is determined according to the method indicated in
Note 33.2.3.

CGUs or groups of CGUs and the related impairment tests aredescribed in Note 33.12.

Goodwill is allocated as of the acquisition date to cashgenerating units (CGUs) or groups of CGUs defined by the Group.
The CGUs or groups of CGUs to which goodwill has been
allocated are tested for impairment each year, or whenever
events or circumstances indicate that an impairment loss islikely.

33.11 Brands and other intangible assets
Brands and other intangible assets are recognized at cost lessaccumulated amortization and impairment.
Brands and intangible assets acquired as part of a businesscombination, which are controlled by the Group and are separable
or arise from contractual or other legal rights, are recognizedseparately from goodwill.
Brands, which represent the majority of intangible assets within theGroup, are intangible assets with indefinite useful lives and are
therefore not amortized but are tested as part of the impairment
test carried out on CGUs. Where that test indicates an impairment
loss, brands are tested separately.

Other intangible assets are amortized over their useful lives andare tested for impairment when there is an indication that an
impairment loss has taken place. The usual useful lives are as
follows:• Brands: indefinite;• Internal IT developments, software and websites: 1-8 years;• Rights, patents and other intellectual property: 5-2 years(maximum protection period).
The configuration and customization costs of software as part ofa Saas (Software as a service) arrangement are analyzed andrecorded in expenses for the period where they do not meet thecriteria for capitalization under IAS 38.
Software developed in-house by the Group and meeting all the
relevant criteria is capitalized and amortized on a straight-line
basis over its useful life.
Impairment tests are described in Note 33.12.

33.12 Cash-generating units and impairment tests
The Group tests the value of its assets at the level of its cashgenerating units (CGUs) or groups of CGUs. Impairment tests are
performed each year, or whenever events or circumstancesindicate that an impairment loss is likely. A CGU is the smallest
group of assets, including goodwill, that generates cash inflows
from continuing use that are largely independent of the cash
inflows from other assets or CGUs.
CGUs or groups of CGUs as defined by the Group represent thevarious brands under which the Group operates (cf. Note 33.4).
Impairment tests seek to determine whether the recoverable
amount of a CGU is less than its net carrying amount. The
recoverable amount of a CGU is the higher of its fair value lesscosts to sell and its value in use. Value in use is determined withrespect to future cash flow projections, taking into account thetime value of money and the specific risks attributable to the CGU
or group of CGUs.

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Future cash flow projections are based on medium-term budgets
and plans. These plans are drawn up for a period of five years
with the exception of certain CGUs or groups of CGUs
undergoing strategic repositioning, for which a longer period may
be applied (typically ten years). To calculate value in use, aterminal value equal to the perpetual capitalization of anormative annual cash flow is added to the estimated future cash
flows. The perpetual growth rates are appropriate in view of thecountry mix, since the Group now operates in regions whosemarkets are enjoying faster-paced growth than in Europe.
When the CGU’s recoverable amount is less than its net carrying
amount, an impairment loss is recognized. Impairment ischarged first to goodwill and recognized under "Other nonrecurring operating income and expenses" in the income
statement (cf. Note 33.1.5).

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Impairment recognized in respect of brands and other intangible
assets along with property, plant and equipment may bereversed at a later date if there is an indication that the
impairment loss no longer exists. Impairment recognized in
respect of goodwill may not be reversed.

For 2023, the way in which the Group took into accountthe macroeconomic situation and climate issues in
its impairment tests is described in Notes 33.1.3 and 33.1.4.

33.13 Leases
The Group applies IFRS 16 for all of its leases, with the exceptionof:• short-term leases, with a lease term of 12 months or less as of
the commencement date;• leases for which the underlying asset is of low value.
Payments under these leases that are not recognized on thebalance sheet are recognized as operating expenses on astraight-line basis over the lease term.
Under IFRS 16, for each affected lease, the following items arerecognized in the balance sheet as of the commencement date:• a lease liability, corresponding to the present value of all fixed
future payments for the estimated term of the lease. The current
and non-current portions of these liabilities are shown
separately. Fixed future lease payments include theremeasurement of any payments that depend on an index or a
growth rate established in the lease. They may also include thevalue of any purchase options or estimated penalties forterminating the lease, where the Group is reasonably certain to
exercise these options. In addition, any lease incentives
receivable as of the commencement date are deducted fromfixed payments;• a lease right-of-use asset, corresponding to the value of thelease liability less any incentives received from the lessor andplus any prepaid lease payments, initial direct costs and theestimated cost of restoring the asset where required by theterms and conditions of the lease.
After the start of the lease, the liability related to future lease
payments is reduced by the amount of payments made withrespect to lease payments, and increased by the amount ofinterest. The liability may be remeasured to reflect a newassessment of, or change in, future lease payments. The right-ofuse asset, initially measured at cost including the lessee’s direct
costs and prepayments, minus lease incentives (rent-free
periods) and restoration costs, is depreciated on a straight-line
basis over the lease term as defined in accordance with IFRS 16.
IFRS 16 provides that the discount rate for each lease isdetermined with reference to the incremental borrowing rate,
which corresponds to the rate of interest that the Group would
have to pay to borrow over a similar term, and with similar
security, the funds necessary to obtain an asset of a similar value
to the lease right-of-use asset in a similar economic environment.
The incremental borrowing rates applied by the Group are basedon a combination of risk-free interest rate curves per currency/
country, euro/foreign currency swap points, and the Group’s
credit spread, also accounting for the nature of the underlying(real estate) asset.
An "industry" beta, which varies according to the lessee’s
operating segment, is added to these inputs to reflect the specificrisk of each activity.
The rate curves take into account the average lease term and areprepared on a quarterly basis.
Lease rights are a separate component of right-of-use assets andare depreciated over the term of the underlying leases, less any
residual value. This residual value is tested for impairment eachyear and an impairment loss is recognized where necessary.
The Group recognizes deferred tax in relation to the right-of-use
asset and lease liability.

33.14 Property, plant and equipment
Property, plant and equipment are recognized at amortizedhistorical cost less any impairment losses, with the exception ofland, which is not depreciated. They are not revalued.
The various components of property, plant and equipment arerecognized separately when their estimated useful life andtherefore their depreciation periods are significantly different.
The cost of property, plant and equipment includes the expenses
that are directly attributable to its acquisition.
Depreciation is calculated using the straight-line method, basedon the purchase price or production cost, less any residual value,
which is reviewed annually if considered material.
The usual useful lives are as follows:• Buildings: 10-100 years;• Improvements and fixtures: 3-15 years;• Improvements to leased assets: 3-10 years (limited to thelease term defined in accordance with IFRS 16);

• Plant and equipment: 3-20 years;• Other property, plant and equipment: 2-7 years.
Property, plant and equipment are tested for impairment when
an indication of impairment exists, such as a scheduled closure ofa store or site, a redundancy plan or a downward revision ofmarket forecasts. When an asset’s recoverable amount is lessthan its net carrying amount, an impairment loss is recognized.
Where the recoverable amount of an individual asset cannot be
determined precisely, the Group determines the recoverable
amount of the CGU or group of CGUs to which the asset belongs.
When an item of property, plant and equipment is sold, thedisposal gain or loss resulting from the difference between the
selling price and the carrying amount of the assets sold isrecognized in the income statement.

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

33.15 Financial assets
The classification of financial assets determines theiraccounting treatment and basis of measurement. There arethree categories of financial assets:• financial assets measured at amortized cost;• financial assets measured at fair value through the income
statement (profit or loss);• financial assets measured at fair value in equity throughother comprehensive income.

33.15.2 Financial assets measured at fairvalue through the income
statement

The Group determines the classification of its financial assets
upon initial recognition, based on their characteristics and the
management objective behind the asset’s purchase. Purchases
and sales of financial assets are recognized on the transaction
date, which is the date the Group is committed to the purchase orsale of the asset. A financial asset is derecognized if thecontractual rights to the cash flows from the financial asset
expire or the asset is transferred.

This category includes:• non-consolidated investments and other financial
investments, unless the Group has chosen to carry specificinvestments at fair value under the fair value option, in whichcase they are recognized directly in equity through othercomprehensive income;• financial assets held by the Group for trading purposes that
the Group intends to resell in the near future and that arepart of a portfolio of financial instruments that are managed
together and for which there is evidence of a recent actual
pattern of short-term profit-taking;• assets designated as at fair value under the fair value option.

33.15.1 Financial assets measured
at amortized cost
Financial assets are carried at amortized cost if they are held aspart of a business model whose objective is to collect contractual
cash flows that are solely payments of principal and interest on
the principal amount outstanding.
This category includes loans and receivables, deposits andguarantees, trade receivables and most other current and noncurrent receivables.
These financial assets are initially recognized at fair value andsubsequently at amortized cost using the effective interest
method.
The effective interest rate is determined for each transaction andcorresponds to the rate that would provide the net carrying
amount of the financial asset by discounting its estimated future
cash flows until maturity. The calculation includes transaction
costs and any premiums and/or discounts. Transaction costs
correspond to the costs directly attributable to the acquisition or
issue of a financial asset. Net gains and losses on loans andreceivables relate to interest income and impairment allowances.
Impairment allowances are recognized in the income statement
based on the expected loss model:• for its trade receivables, the Group applies a provision matrix
for each country/brand based on historical loss data. Credit
insurance that may be taken out by the Group is taken into
account in the measurement of the risk and therefore of theprovision;• for other financial assets measured at amortized cost, ananalysis is carried out taking into account the probability ofcounterparty default.

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Financial assets measured at fair value through the income
statement mostly comprise financial assets giving rise tocontractual cash flows that are not solely payments of principal
and interest on the principal amount outstanding.

Changes in the fair value of these assets are taken to the income
statement. Net gains or losses arising on financial assets
measured at fair value through the income statement generally
correspond to interest income, dividends, changes in the fairvalue of the assets (unrealized gains or losses) and capital gains
or losses on disposals (realized gains or losses).

33.15.3 Financial assets measured at fairvalue in equity through othercomprehensive income
Financial assets are carried at fair value directly in equity throughother comprehensive income when they are held as part of abusiness model whose objective is achieved both by collecting
contractual cash flows (corresponding solely to payments ofprincipal and interest on the principal amount outstanding) andselling these financial assets.
This category includes debt instruments, such as bonds, thathave the contractual cash flow and business modelcharacteristics set out above.
It may also include non-consolidated investments or otherfinancial investments, in which case changes in the fair value ofthe assets are recognized directly in equity through othercomprehensive income until the assets are sold, with the
exception of dividends received, which are systematicallyrecognized in the income statement irrespective of theclassification of the underlying financial asset.

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

33.15.4 Fair value hierarchy and associatedvaluation methods
The fair value of financial assets is determined using one ofthree levels in the fair value hierarchy:• Level 1: financial assets quoted on an active market;• Level 2: financial assets whose fair value is determined using
valuation techniques drawing on observable market inputs;• Level 3: financial assets whose fair value is determined using
valuation techniques drawing on non-observable inputs(inputs whose value does not result from the price ofobservable market transactions for the same instrument orfrom observable market data available as of the end of thereporting period) or inputs which are only partly observable.

33.16 Financial liabilities
The classification of financial liabilities determines theiraccounting treatment and measurement. There are twocategories of financial liabilities:• financial liabilities measured at amortized cost;• financial liabilities measured at fair value through the income
statement (profit or loss).
The Group determines the classification of its financial liabilities
upon initial recognition, based on their characteristics.

33.16.1 Financial liabilities measured
at amortized cost
Financial liabilities are carried at amortized cost if they are held
as part of a business model whose objective is to disburse
contractual cash flows that are solely payments of principal andinterest on the principal amount outstanding.
This category includes borrowings (with the exception ofput options granted to minority interests – cf. Note 33.21), trade
payables and most other current and non-current liabilities.
These financial liabilities are initially recognized at fair value lesstransaction costs, and subsequently at amortized cost using theeffective interest method.

The effective interest rate is determined for each transaction andcorresponds to the rate that would provide the net carrying
amount of the financial liability by discounting its estimatedfuture cash flows until maturity. The calculation includes
transaction costs and any premiums and/or discounts.
Transaction costs correspond to the costs directly attributable tothe acquisition or issue of a financial liability.
The net carrying amount of financial liabilities measured
at amortized cost that qualify as hedged items as part of afair value hedging relationship is adjusted with respect tothe hedged risk (cf. Note 33.17.1).

33.16.2 Financial liabilities measured atfair value through the income
statement
The Group may elect to carry some financial liabilities at fairvalue through the income statement. In this case, unlike in theamortized cost method, the transaction costs associated withsetting up these financial liabilities are recognized immediately
within other financial income and expenses in the income
statement.

33.17 Derivative instruments
33.17.1 Derivative instruments designatedas hedging instruments
The Group uses various derivative instruments to reduce its
exposure to foreign exchange risk, interest rate risk and the risk of
movements in the prices of certain precious metals.
Derivative instruments are recognized in the balance sheet withincurrent or non-current financial assets and liabilities, dependingon their maturity. They are recognized at fair value as from thetransaction date.
Derivatives designated as hedging instruments are classified bycategory of hedge based on the nature of the risks being
hedged:• a cash flow hedge is used to hedge the risk of changes infuture cash flow from recognized assets or liabilities or ahighly probable transaction that would impact the income
statement;• a fair value hedge is used to hedge the risk of changes in thefair value of recognized assets or liabilities or a firm
commitment not yet recognized that would impact theincome statement;
Hedge accounting can only be applied if all of the following
conditions are met:

• the hedged instrument and the hedging instrument are both
eligible;• there is a formal designation and documentation of thehedging relationship as of the date of inception;• there is an economic relationship between the hedged item
and the hedging instrument.
The accounting treatment of derivative instruments qualified as
hedging instruments, and their impact on the income statement
and balance sheet, differ depending on the type of hedging
relationship:• for cash flow hedges, gains and losses are initially recognizeddirectly in equity through other comprehensive income. They
are then transferred to the income statement when thehedged items are recognized. For foreign currency
derivatives, the effective portion is recorded in operating
income, and the ineffective portion, option premiums anddifference between spot and forward exchange rates(contango/backwardation) are recorded within "Financial
result";• for fair value hedges, gains and losses are recorded in theincome statement in the same item as the hedged items,
except for the ineffective portion, which is always recorded
within "Financial result".

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

33.17.2 Derivative instruments designatedas trading instruments
Changes in the fair value of derivative instruments that the Group
cannot or does not wish to designate as hedging instruments arerecognized in full in the income statement in other financial
income and expenses within "Financial result".

33.17.3 Embedded derivative instruments
Certain financial assets or liabilities may contain a derivative
instrument. When they are not closely related to the underlying
instrument, these embedded derivatives are recognizedseparately in the balance sheet as a derivative instrument held
for trading. Any changes in their fair value are taken in full in theincome statement in other financial income and expenses within"Financial result".

33.18 Inventories
Inventories are measured using the weighted average cost
method for all of the Group’s business activities.

An impairment allowance on inventories is recognized on thebasis of expected inventory turnover and obsolescence and ifthey are damaged.

33.19 Cash and cash equivalents
Cash and cash equivalents recorded on the assets side of
the balance sheet include cash, mutual or similar funds, shortterm investments and other highly liquid instruments thatare readily convertible to known amounts of cash, are subject toan insignificant risk of changes in value, and have amaximum maturity of three months as of the purchase date.

Investments with a maturity exceeding three months, along withblocked or pledged bank accounts, are excluded from cash andcash equivalents.
Bank overdrafts are presented in borrowings on the liabilities
side of the balance sheet. In the statement of cash flows,
cash and cash equivalents at the opening and closing of
the reporting period include bank overdrafts.

33.20 Kering treasury shares
Kering treasury shares, whether specifically allocated to be
granted to Group employees, allocated to the liquidity
agreement or held for any other purpose, as well as directly
related transaction costs, are deducted directly from equity
attributable to the Group.

On disposal, the consideration received for these shares, net oftransaction costs and the related tax impacts, is also recognizeddirectly in equity attributable to the Group.

33.21 Put options granted to minority interests
The Group has undertaken to repurchase the minority interests ofshareholders of certain subsidiaries. The strike price of these put
options may be set or determined according to a predefined
calculation formula, and the options may be exercised either at
any time or on a specific date.

The financial liability recognized in respect of put options granted
to minority interests is shown in the balance sheet within current
and non-current borrowings, as appropriate. Put options granted
to minority interests are therefore included in consolidated net
debt (see Note 33.1.5).

The Group recognizes a financial liability in respect of any put
options granted to minority interests. This liability is recognizedat the present value of the best estimate of the strike price, with
an offsetting entry in equity attributable to the Group. Any
subsequent changes in the financial liability relating to put
options granted to minority interests are recognized directly inequity, including the impact of unwinding the discount.

Depending on the agreements signed by the Group with minority
interests, minority shareholders may in some cases waive theirdividend rights until the put option is exercised. In this case, thecorresponding minority interests are canceled, with a direct
offsetting entry in equity attributable to the Group. If the minority
interests retain their dividend rights until the option is exercised
however, the minority interests continue to be shown in thebalance sheet.

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

33.22 Provisions for pensions and other post-employment benefits
Based on the laws and practices of each country, the Group
recognizes various types of employee benefits, including
pensions and other post-employment benefits.

Defined contribution plans
Under defined contribution plans, the Group is not obliged tomake additional payments over and above contributions alreadymade to a fund if the fund does not have sufficient assets to cover
the benefits corresponding to services rendered by personnel
during the current period and prior periods. Contributions paid
into these plans are expensed in the income statement asincurred.

Defined benefit plans
Under defined benefit plans, obligations are valued using the
projected unit credit method based on agreements in effect ineach entity. Under this method, each period of service gives riseto an additional unit of benefit entitlement and each unit ismeasured separately to build up the final obligation. The
obligation is then discounted. The actuarial assumptions used todetermine the obligations vary according to the economic
conditions of the country where the plan is established. These
plans are valued by independent actuaries on an annual basis.

The valuations take into account the level of futurecompensation, the probable active life of employees, life
expectancy and staff turnover.
The provision recognized in the balance sheet corresponds to thepresent value of the obligations calculated as described above,less the fair value of the plans’ financial assets under wholly
funded pension plans.
The current service cost for these plans is recognized within
personnel expenses in the income statement. The interest cost
relating to the benefit obligation net of interest income on plan
assets under wholly funded plans is recognized in other financial
income and expenses within "Financial result". Past service cost,
designating the increase in an obligation following the
introduction of a new plan or the impact of amendments to an
existing plan, is expensed immediately in the income statement
within personnel expenses, regardless of whether or not thebenefit entitlement has already vested or is still vesting.
Changes in actuarial assumptions and the impact of experience
adjustments (the difference between outcomes estimated using
actuarial assumptions and actual outcomes) give rise to actuarial
gains and losses, which are recognized directly in equity within
other comprehensive income. These actuarial gains and losses
are never transferred to the income statement.

33.23 Provisions
Provisions for litigation, disputes and miscellaneouscontingencies and losses are recognized as soon as a present
obligation arises from past events, which is likely to result in an
outflow of resources embodying economic benefits, the amountof which can be reliably estimated.
Provisions maturing in more than one year are valued at theirdiscounted amount, representing the best estimate of theexpense necessary to extinguish the current obligation at the endof the reporting period. The discount rate used reflects current
assessments of the time value of money and specific risks related
to the liability.

A provision for restructuring costs is recognized when there is aformal and detailed restructuring plan and the plan has begun to
be implemented or its main features have been announced
before the end of the reporting period. Restructuring costs forwhich a provision is made essentially represent employee costs(severance pay, early retirement plans, payment in lieu of notice,etc.), work stoppages and compensation for breaches of contract
with third parties.

33.24 Discontinued operations, assets held for sale and liabilities
associated with assets held for sale
The Group applies IFRS 5, which requires the separate
recognition and presentation of assets (or disposal groups) held
for sale and discontinued operations.
Non-current assets, or groups of assets and liabilities directly
associated with those assets, are considered as held for sale if it ishighly probable that their carrying amount will be recovered
principally through a sale rather than through continuing use.
Non-current assets (or disposal groups) held for sale aremeasured and recognized at the lower of their net carrying
amount and their fair value less the costs of disposal. Theseassets are no longer depreciated or amortized from the time they
qualify as assets (or disposal groups) held for sale. They arepresented on separate lines in the consolidated balance sheet,without restatement for previous periods.

A discontinued operation is defined as a component of a groupthat generates cash flows that can be clearly distinguished fromthe rest of the Group and represents a separate line of business orgeographical area of operations. For all periods presented, thenet income or loss from these activities is shown on a separate
line of the income statement within discontinued operations andis restated in the statement of cash flows.

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

NOTE 34 – LIST OF CONSOLIDATED ENTITIESConsolidation method
Full consolidation: C
Equity method: E
Company

Transaction% interest
Dec. 31, 2023 Dec. 31, 2022
Parentcompany

KERING SA

Parentcompany

LUXURY HOUSESFranceALEXANDER MCQUEEN FRANCE SAS
ARCADES PONTHIEU SA
ATELIER DE CONFECTION SAINT LAURENT
BALENCIAGA OPERATIONS SAS
BALENCIAGA SAS
BOTTEGA VENETA FRANCE SAS
BOUCHERON PARFUMS SAS
BOUCHERON SAS
BRIONI FRANCE SAS
DODO PARIS SASFRANCE CROCO SASGG FRANCE SERVICES SASGINORI 1735
GPO HOLDING SAS

Consolidation

GUCCI FRANCE SAS
LES BOUTIQUES BOUCHERON SAS
POMELLATO PARIS SASQEELIN FRANCE SARLSAINT LAURENT CULTURE SAS
SAINT LAURENT EDITIONS SASSAINT LAURENT PRODUCTIONS SAS
SAS ETABLISSEMENTS E. BLONDEAUSAS BELTERSAS CHANSON ET CIE JOAILLIERS FABRICANTS
SAS FG DÉVELOPPEMENTYSL VENTES PRIVEES FRANCE SASYVES SAINT LAURENT BOUTIQUE FRANCE SASYVES SAINT LAURENT PARFUMS SASYVES SAINT LAURENT SAS
Germany
ALEXANDER MCQUEEN TRADING GMBH
BALENCIAGA GERMANY GmbHBOTTEGA VENETA GERMANY GmbH
BRIONI GERMANY GmbHDODO DEUTSCHLAND GmbHGG LUXURY GOODS GmbHPOMELLATO DEUTSCHLAND GmbHYVES SAINT LAURENT GERMANY GmbH— 380

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Formation
Formation
Formation
Acquisition
Acquisition
Acquisition
AcquisitionCC

100.00
95.00

CC

100.00
95.00

CC

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00

C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C

100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00

C
C
C
C
C
C
–
C
C
C
C
C
–
–
–
–
–
–
–
C
C

100.00100.00100.00100.00100.00100.00–100.00100.00100.00100.00100.00
–
–
–
–
–
–
–
100.00100.00C
C

100.00100.00C
C

100.00100.00C

100.00C

100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00

C
C
C

100.00100.00100.00

C
C
C

100.00100.00100.00Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Company
Austria

Transaction

ALEXANDER MCQUEEN GmbHBALENCIAGA AUSTRIA GmbHBOTTEGA VENETA AUSTRIA GmbHGUCCI AUSTRIA GmbHYVES SAINT LAURENT AUSTRIA GmbH
Belgium
BALENCIAGA BELGIUMGUCCI BELGIUM SA
SAINT LAURENT BELGIUM
Denmark
BALENCIAGA DENMARK APS
LUXURY GOODS DENMARK AS
SAINT LAURENT DENMARK APS
Spain

Acquisition

BALENCIAGA SPAIN SL
BOTTEGA VENETA ESPANA SL
DODO SPAIN SALUXURY GOODS SPAIN SLLUXURY TIMEPIECES ESPANA SLYVES SAINT LAURENT SPAIN SA
United Kingdom
ALEXANDER MCQUEEN TRADING Ltd
AUTUMNPAPER Ltd
BALENCIAGA UK Ltd
BIRDSWAN SOLUTIONS Ltd
BOTTEGA VENETA UK CO. Ltd
BOUCHERON UK Ltd
BRIONI UK Ltd
DODO (UK) Ltd
GUCCI LtdGINORI 1735 LIMITED

Consolidation

LUXURY TIMEPIECES & JEWELLERY OUTLETS Ltd
LUXURY TIMEPIECES UK Ltd
PAINTGATE Ltd
POMELLATO (UK) LtdYVES SAINT LAURENT UK Ltd
GreeceLUXURY GOODS GREECE AE
SAINT LAURENT GREECE AE
BOTTEGA VENETA GREECE SA
Hungary
GUCCI HUNGARY RETAIL LTD
IrelandBALENCIAGA IRELAND LTD
BOTTEGA VENETA IRELAND LTD
GUCCI IRELAND Ltd
SAINT LAURENT IRELAND LTD

Formation% interest
Dec. 31, 2023 Dec. 31, 2022
C

100.00C

100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C

100.00C

100.00C
C

100.00100.00C
C

100.00100.00C

100.00C

100.00CC

51.00
100.00

C
–

51.00
–

C

100.00C

100.00C
C
C
C
C

100.00100.00100.00100.00100.00C
C
C
C
C

100.00100.00100.00100.00100.00

C
C
C
C
C
C
C
C
C
C
C
C
C
C
C

100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00

C
C
C
C
C
C
C
C
C
–
C
C
C
C
C

100.00100.00100.00100.00100.00100.00100.00100.00100.00–100.00100.00100.00100.00100.00

C
C
C

100.00100.00100.00

C
C
C

100.00100.00100.00C

100.00C

100.00

C
C
C
C

100.00100.00100.00100.00–
C
C
C–
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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Company
Italy

Transaction

ACCADEMIA DELLA PELLETTERIA SRLALEXANDER MCQUEEN ITALIA SRLALEXANDER MCQUEEN LOGISTICA SRLALEXANDER MCQUEEN ONLINE ITALIA SRL
B.V. ITALIA SRLBALENCIAGA LOGISTICA SRLBALENCIAGA ONLINE ITALIA SRLBALENCIAGA RETAIL ITALIA SRLBOTTEGA VENETA LOGISTICA SRLBOTTEGA VENETA SRLBRIONI GERMANICS HOLDING SRLBRIONI ITALIA SRLBRIONI SpABV ECOMMERCE SRLCARAVEL PELLI PREGIATE SpACHEM – TEC SRLCOLONNA SpACONCERIA 800 SpACOSTANZO & RIZZETTO SRLDESIGN MANAGEMENT 2 SRL
DESIGN MANAGEMENT SRLDI REMIGIO & DI DIODORO S.R.L.
DODO RETAIL ITALIA S.R.L.

Formation

E-LITE SRLFALCO PELLAMI SpA
FUTURA SRL
G COMMERCE EUROPE SpA

Acquisition

GARPE SRLGGW ITALIA SRLGJP SRLGPA SRLGT SRLGUCCI PALAZZO SRLIMMOBILIARE ARNOGUCCI LOGISTICA SpAGUCCIO GUCCI SpAIMMOBILIARE ARMEA SRL
K RETAIL SRL
KERING FASHION OPERATIONS SRLLUXURY GOODS ITALIA SpALUXURY GOODS OUTLET SRLMANIFATTURA VENETA PELLETERIE SRLMARBELLA PELLAMI SpA
MFI LUXURY S.R.L
MOOD SRLNEGOZI RICHARD GINORI SRLPELLETTERIA ALESSANDRA SRLPIGINI SRLPOMELLATO EUROPA SpAPOMELLATO SpA— 382

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Liquidation

Acquisition
Consolidation% interest
Dec. 31, 2023 Dec. 31, 2022
C

51.00

C

51.00

C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00

C
C
C
E
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
–
C
C
C
C
E
E
C
C
C
C
C

51.00
51.00
51.00
45.00
100.00100.0051.00
100.00100.0051.00
77.00
100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00–100.00100.00100.00
51.00
30.00
19.00
100.0090.00
100.00100.00100.00

C
C
C
E
C
C
C
–
C
C
–
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
–
E
–
C
C
C
C

51.00
51.00
51.00
45.00
100.00100.0051.00–
100.0051.00–
100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00
51.00
–
19.00
–
90.00
100.00100.00100.00Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Company
ROMAN STYLE SpATransaction% interest
Dec. 31, 2023 Dec. 31, 2022

RICHARD GINORI SRLSAINT LAURENT ECOMMERCE SRL

Consolidation

CC

100.00100.00C–

100.00–C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C

100.00C

100.00C
C

100.00100.00C
C

100.00100.00C

100.00C

100.00C
C

100.00100.00C
C

100.00100.00

C
C
C

100.00100.00100.00

C
C
C

100.00100.00100.00CC

51.00
100.00

C
–

51.00
–

C
C
C
C
C
C
C
C
C

100.00100.00100.00100.0051.00
100.00100.00100.00100.00

C
C
C
C
C
C
C
C
C

100.00100.00100.00100.0051.00
100.00100.00100.00100.00C

100.00

–

–

C
C
C

100.00100.00100.00

C
C
C

100.00100.00100.00

C
C
C

100.00100.00100.00

C
C
C

100.00100.00100.00C

100.00C

100.00C
C

100.00100.00C
C

100.00100.00

C
C

70.00
51.00

C
C

70.00
51.00

SL LUXURY RETAIL SRLTEST & INNOVATION LAB SRL
TIGER FLEX SRLTMLO HOLDING SRLYVES SAINT LAURENT MANIFATTURE SRL
Luxembourg
KERING PARTICIPATIONS SARLGUCCI GULF INVESTMENT SARLGUCCI LUXEMBOURG SAQEELIN HOLDING LUXEMBOURG SA
Monaco
BOUCHERON SAM
GUCCI SAMKERING RETAIL MONACO SAM
SAM YVES SAINT LAURENT OF MONACO
SOCIETE MONEGASQUE DE HAUTE JOAILLERIE S.A.M.
Norway
LUXURY GOODS NORWAY AS
SAINT LAURENT NORWAY AS

Acquisition

Netherlands
ALEXANDER MCQUEEN (THE NETHERLANDS) BV
BALENCIAGA NETHERLANDS BVBOTTEGA VENETA NETHERLANDS BVG DISTRIBUTION BV
GG MIDDLE EAST BV
GG OTHER TERRITORIES BVGUCCI NETHERLANDS BVKERING ASIAN HOLDING BVYVES SAINT LAURENT NETHERLANDS BVPolandSAINT LAURENT POLAND SP. Z.O.O
Portugal
BOTTEGA VENETA PORTUGAL, UNIPESSOAL LDAGUCCI PORTUGAL UNIPESSOAL, LDA
SAINT LAURENT PORTUGAL SL
Czech Republic
BALENCIAGA CZECH REPUBLIC SROLUXURY GOODS CZECH REPUBLIC SROYVES SAINT LAURENT CZECH REPUBLIC, SRO
Romania
SIFA INTERNATIONAL SRL
Russia
BOUCHERON RUS OOOGUCCI RUS OOO
SerbiaF.LLI ROSSI SHOES DOOLUXURY TANNERY DOO

Formation

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Company
SwedenTransaction% interest
Dec. 31, 2023 Dec. 31, 2022

BOTTEGA VENETA SWEDEN AB
GUCCI SWEDEN AB

Formation

C

100.00––SAINT LAURENT SWEDEN AB
Switzerland

Acquisition

C
C

51.00
100.00

C
–

51.00
–

C

100.00C

100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00Liquidation

C–

100.00–C
C

100.00100.00Liquidation
Formation–
C–
100.00C–

100.00–C

100.00C

100.00C

100.00C

100.00

C
C
C
C

100.00100.00100.00100.00–
C
C
C–
100.00100.00100.00

C
C
C
C
C
C

100.00100.00100.00100.00100.00100.00

C
C
C
C
C
C

100.00100.00100.00100.00100.00100.00LUXURY GOODS CHILE SpA
United States

C

51.00

C

51.00

ALEXANDER MCQUEEN TRADING AMERICA, Inc.
BALENCIAGA AMERICA Inc.

C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
E
E
C
C

100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.0040.00
40.00
100.00100.00

C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
–
E
E
C
C

100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00
–
40.00
40.00
100.00100.00BALENCIAGA SWITZERLAND SA
BOTTEGA VENETA SWISS RETAIL SA
BOUCHERON (SUISSE) SA
BOUCHERON TIMEPIECES SA
BRIONI SWITZERLAND SAFABBRICA QUADRANTI SA
GUCCI SWISS RETAIL SA
GUCCI SWISS TIMEPIECES SALUXURY GOODS OUTLETS EUROPE SAGLTHE MALL LUXURY OUTLET SAPOMELLATO SWITZERLAND S.A.
YSL SWITZERLAND SA
Aruba
GEMINI ARUBA NV
BrazilBALENCIAGA BRASIL LTDABOTTEGA VENETA HOLDING Ltda

Formation

GUCCI BRASIL IMPORTACAO E EXPORTACAO LtdaSAINT LAURENT BRASIL IMPORTACAO E EXPORTACAO Ltda
CanadaALEXANDER MCQUEEN TRADING CANADA INC.
BALENCIAGA CANADA Inc.
BOTTEGA VENETA CANADA Ltd
G. BOUTIQUES Inc.
QEELIN CANADA LTD
SAINT LAURENT CANADA BOUTIQUES Inc.
Chile

BOTTEGA VENETA Inc.
BOUCHERON JOAILLERIE (USA) Inc.
BRIONI AMERICA HOLDING Inc.
BRIONI AMERICA Inc.
G GATOR USA LLC
GUCCI AMERICA Inc.
GUCCI FINANCIAL HOLDING AMERICAS, INC.
GUCCI OSTERIA USA LLC
GUCCI SAIPAN INC
GUCCI TRUSTKERING AMERICAS TRADING, LLC
LUXURY HOLDINGS Inc.
POMELLATO USA Inc.
RICHARD GINORI 1735 INC
WALL’S GATOR FARM II LLC
WG ALLIGATOR FARM LLCYVES SAINT LAURENT AMERICA HOLDING Inc.
YVES SAINT LAURENT AMERICA Inc.
— 384

KERING - 2023 Universal Registration Document

Consolidation

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Company
MexicoBRIONI RETAIL MEXICO, S. DE R.L. DE C.V.
BALENCIAGA RETAIL MEXICO, S. DE R.L. DE C.V.

Transaction
Formation

BOTTEGA VENETA MEXICO, S. DE R.L. DE C.V.
D ITALIAN CHARMS, S.A. DE R.L. DE C.V.
GUCCI IMPORTACIONES S.A. DE C.V.
GUCCI MEXICO S.A. DE C.V.
SAINT LAURENT MEXICO, S. DE R.L. DE C.V.
PanamaLUXURY GOODS PANAMA S. DE R.L.
SAINT LAURENT PANAMA Inc.
Dominican Republic
SAINT LAURENT DOMINICAN REPUBLIC S.A.S.

Formation

Australia
ALEXANDER MCQUEEN AUSTRALIA PTY Ltd
BALENCIAGA AUSTRALIA PTY Ltd
BOTTEGA VENETA AUSTRALIA PTY LtdGUCCI AUSTRALIA PTY Ltd
SAINT LAURENT AUSTRALIA PTY LtdQEELIN AUSTRALIA PTY. LTD.
New Zealand
ALEXANDER MCQUEEN NEW ZEALAND LTD
BALENCIAGA NEW ZEALAND LTD
GUCCI NEW ZEALAND Ltd
SAINT LAURENT NEW ZEALAND Ltd
Greater China
Mainland China
ALEXANDER McQUEEN (SHANGHAI) TRADING Ltd
BALENCIAGA FASHION SHANGHAI CO. Ltd
BOTTEGA VENETA (CHINA) TRADING Ltd
BRIONI (SHANGHAI) TRADING Ltd
DODO (SHANGHAI) WATCHES AND JEWELRY LTD

Formation

GUCCI (CHINA) TRADING LtdGUCCI WATCHES MARKETING CONSULTING (SHANGHAI) Ltd
KERING (SHANGHAI) WATCHES AND JEWELRY Ltd
LUXURY EMOTIONS (SHENZHEN) BUSINESS MANAGEMENT CO., LTD
POMELLATO SHANGHAI CO. LtdQEELIN TRADING (SHANGHAI) CO. Ltd
GINORI 1735 RETAIL SHANGHAI CO, LTD
YVES SAINT LAURENT (SHANGHAI) TRADING Ltd
Hong Kong SAR
ALEXANDER MCQUEEN (HONG KONG) Ltd
BALENCIAGA ASIA PACIFIC Ltd
BOTTEGA VENETA HONG KONG Ltd
BOUCHERON HONG KONG Ltd
BRIONI HONG KONG Ltd
DODO HONG KONG LTD
GUCCI ASIA COMPANY LtdGUCCI GROUP (HONG KONG) LTD
POMELLATO PACIFIC LtdQEELIN LtdYVES SAINT LAURENT (HONG KONG) Ltd

Formation

Consolidation

Formation% interest
Dec. 31, 2023 Dec. 31, 2022
C

100.00––C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00

C

51.00

C

51.00

C

100.00C

100.00C

100.00––C
C

100.00100.00C
C

100.00100.00

C
C
C
C

100.00100.00100.00100.00

C
C
C
C

100.00100.00100.00100.00

C
C
C
C

100.00100.00100.00100.00

C
C
C
C

100.00100.00100.00100.00

C
C
C
C
C
C
C
C
C
C
C
C
C

100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00

C
C
C
C
–
C
C
C
–
C
C
–
C

100.00100.00100.00100.00–100.00100.00100.00–100.00100.00–100.00

C
C
C
C
C
C
C
C
C
C
C

100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00

C
C
C
C
C
–
C
C
C
C
C

100.00100.00100.00100.00100.00–100.00100.00100.00100.00100.00KERING - 2023 Universal Registration Document

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Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Company
Macau SAR

Transaction

C

100.00C

100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C

100.00C

100.00C

100.00C

100.00C
C

100.00100.00C
C

100.00100.00C
C

100.00100.00C–

100.00–

C
C
C

100.00100.00100.00

C
C
C

100.00100.00100.00C
C

100.00100.00C
C

100.00100.00Formation

C
C

51.00
51.00

C
–

51.00
–

Consolidation

C
C
C
C
C
C
C
C

100.00100.00100.00100.00100.00100.00100.00100.00

C
C
C
C
C
C
C
–

100.00100.00100.00100.00100.00100.00100.00
–

C
C
C
C
C
C

100.00100.00100.00100.00100.00100.00

C
C
C
C
C
C

100.00100.00100.00100.00100.00100.00

C

75.00

C

75.00

C
C
C
C
C
C

100.00100.00100.00100.00100.00100.00

C
C
C
C
C
C

100.00100.00100.00100.00100.00100.00ALEXANDER McQUEEN (MACAU) Ltd
BALENCIAGA MACAU Ltd
BOTTEGA VENETA MACAU Ltd
BRIONI MACAU LtdGUCCI MACAU Ltd
KERING (MACAU) WATCHES AND JEWELRY LtdQEELIN MACAU LtdYVES SAINT LAURENT MACAU Ltd
TaïwanBOUCHERON TAIWAN CO. Ltd
South Korea
ALEXANDER MCQUEEN KOREA LLC
BALENCIAGA KOREA LLC
BOTTEGA VENETA KOREA LLC
BRIONI KOREA LLC
GUCCI KOREA LLC

Formation

KERING WATCHES & JEWELRY KOREA LLCYVES SAINT LAURENT KOREA LLC
Guam
BOTTEGA VENETA GUAM Inc.
GUCCI GROUP GUAM Inc.
India
LUXURY GOODS RETAIL PRIVATE LTDYVES SAINT LAURENT INDIA PRIVATE LTDJapan
BALENCIAGA JAPAN Ltd
BOTTEGA VENETA JAPAN Ltd
BOUCHERON JAPAN Ltd
BRIONI JAPAN CO. Ltd
GUCCI OSTERIA JAPAN G.K.
QEELIN JAPAN LIMITEDPOMELLATO JAPAN CO. Ltd
RICHARD GINORI ASIA PACIFIC CO. LTD.
Malaysia
AUTUMNPAPER MALAYSIA SDN BHDBALENCIAGA SEA MALAYSIA SDN BHD
BOTTEGA VENETA MALAYSIA SDN BHD
GUCCI (MALAYSIA) SDN BHDKERING WATCHES AND JEWELRY (MALAYSIA) SDN BHDSAINT LAURENT (MALAYSIA) SDN BHD
Philippines
LUXURY GOODS PHILIPPINES INC
Singapore
ALEXANDER MCQUEEN (SINGAPORE) PTE Ltd
BALENCIAGA SINGAPORE PTE Ltd
BOTTEGA VENETA SINGAPORE PRIVATE LtdGUCCI SINGAPORE PTE Ltd
KERING (SINGAPORE) WATCHES AND JEWELRY PTE Ltd
SAINT LAURENT (SINGAPORE) PTE Ltd— 386

KERING - 2023 Universal Registration Document% interest
Dec. 31, 2023 Dec. 31, 2022

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Company
ThailandTransaction

ALEXANDER MCQUEEN (THAILAND) Ltd
BALENCIAGA THAILAND Ltd
BOTTEGA VENETA (THAILAND) Ltd
GUCCI SERVICES (THAILAND) Ltd
LUXURY GOODS (THAILAND) Ltd
SAINT LAURENT (THAILAND) CO. Ltd% interest
Dec. 31, 2023 Dec. 31, 2022
C

100.00C

100.00C
C

100.0075.00

CC

100.00
75.00

C
C

98.00
75.00

C
C

98.00
75.00

C

100.00C

100.00Vietnam
GUCCI VIETNAM CO. Ltd

C

100.00C

100.00South Africa
GG LUXURY RETAIL SOUTH AFRICA PTE Ltd

C

62.00

C

62.00

Saudi Arabia
BOTTEGA VENETA ARABIA TRADING LLC
BRIONI MIDDLE EAST GENERAL TRADING LLC
LUXURY GOODS ARABIA LTD

Formation

C
C

75.00
100.00

C
–

75.00
–

SAINT LAURENT ARABIA TRADING LLC
ARABIAN LUXURY GOODS TRADING (LLC)

Formation

C
C

75.00
75.00

C
–

75.00
–

Formation

C

75.00

–

–

Formation

C
C

49.00
99.90

C
–

49.00
–

C
C
C
C
C
C

49.00
49.00
49.00
100.00
49.00
49.00

C
C
C
C
C
C

49.00
49.00
49.00
100.0049.00
49.00

AUTUMNPAPER LUXURY GOODS FOR READYMADE CLOTHES, SHOESAND ACCESSORIES WLL

C

49.00

C

49.00

B.A.L FOR READY-TO-WEAR APPAREL AND ACCESSORIES WLL

C
C
C
C

49.00
49.00
26.01
49.00

C
C
C
C

49.00
49.00
26.01
49.00

C
C
C
C
C

49.00
49.00
100.00
25.50
24.00

C
C
C
C
C

49.00
49.00
100.00
25.50
24.00

C
C
C

100.00100.00100.00–C
C–
100.00100.00Bahrain
FLORENCE 1921 WLL
SAINT LAURENT BAHRAIN W.L.L
United Arab Emirates
AP LUXURY GOODS MIDDLE EAST LLC
ATELIER LUXURY GULF LLC
FASHION LUXURY MIDDLE EAST LLC
KERING TRADING MIDDLE EAST DWC - LLC
LUXURY FASHION GULF LLC
LUXURY GOODS GULF LLC
Kuwait

BOTTEGA VENETA LEATHER GOODS KUWAIT WLL
LUXURY GOODS KUWAIT WLLYSL KUWAIT FOR READYMADE CLOTHES AND ACCESSORIES WLL
Qatar
APL LUXURY FASHION TRADING WLL.
FASHION LUXURY TRADING LLC
GUCCI QFZ LLC
LUXURY GOODS QATAR LLC
SAINT LAURENT PARIS LLC
TurkeyBOTTEGA VENETA TURKEY LÜKS ÜRÜNLER LIMITED ŞIRKETIGUCCI TURKEY LUXURY GOODS TRADE LLPSAINT LAURENT TURKEY LÜKS ÜRÜNLER LIMITED ŞIRKETIFormation

KERING - 2023 Universal Registration Document

387 —

6

6

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Company

Transaction% interest
Dec. 31, 2023 Dec. 31, 2022

KERING EYEWEAR & CORPORATEKERING EYEWEAR & KERING BEAUTE
FranceFRAGRANCES PRODUCTION SARLFONTAINE FRANCE SARL

Acquisition

C

100.00––AcquisitionCC

100.00
65.07

–
C

–
64.32

KERING EYEWEAR FRANCE SAS
MANUFACTURE KERING EYEWEAR SAS
MYYRH SARLMAUI JIM EUROPE SARL

Acquisition

C
C

65.07
100.00

C
–

64.32
–

USINAGE ET NOUVELLES TECHNOLOGIES S.A.S.
Germany

Acquisition

C
C

65.07
65.07

C
–

64.32
–

C

65.07

C

64.32

C

65.07

C

64.32

Croatia
KERING EYEWEAR SOUTH EAST EUROPE DOO

C

65.07

C

64.32

Denmark
LINDBERG AS

C

65.07

C

64.32

C
C

65.07
65.07

C
C

64.32
64.32

C
C
C
C
C
C
C

100.00100.00100.0065.07
100.0065.07
100.00

–
–
–
C
–
C
–

–
–
–
64.32
–
64.32
–

C
C
C

65.07
35.79
65.07

C
C
C

64.32
35.37
64.32

Acquisition

C

100.00––Acquisition

C
C

65.07
100.00

C
–

64.32
–

C

65.07

C

64.32

C

65.07

C

64.32

AcquisitionCC

100.00
65.07

–
C

–
64.32

Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition

C
C
C
C
C
C
C

100.00100.00100.00100.00100.00100.00100.00

–
–
–
–
–
–
–

–
–
–
–
–
–
–

KERING EYEWEAR DACH GmbHMAUI JIM GERMANY, GMBH

Spain
KERING EYEWEAR ESPANA SA
MAUI JIM SPAIN, S.L.
United Kingdom
CHENAL II LTD.
FONTAINE LTD.
KERING BEAUTE UK

Acquisition
Acquisition
Formation

KERING EYEWEAR UK Ltd
LAGUNE LTD.

Acquisition

MAUI JIM UK LTD.
THE ORANGE SQUARE COMPANY LTD

Acquisition

Italy
KERING EYEWEAR SpA
TRENTI INDUSTRIA OCCHIALI SPA
MAUI JIM - ITALY S.R.L.
JerseyCHENAL I LTD.
Luxembourg
LINDBERG SA
FONTAINE LUXEMBOURG SARL
Portugal
KERING EYEWEAR PORTUGAL UNIPESSOAL LDA
SwedenMAUI JIM NORDIC AB
CanadaINTERNATIONAL COSMETICS & PERFUMES CANADA LTD.
MAUI JIM CANADA ULC
United States
CREED BOUTIQUE LLC
CREED BOUTIQUE BEVERLY HILLS, LLC
CREED BOUTIQUE HOUSTON, LLC
CREED BOUTIQUE KING OF PRUSSIA, LLC
CREED BOUTIQUE LAS VEGAS, LLC
CREED BOUTIQUE LAS VEGAS CRYSTALS, LLC
CREED BOUTIQUE MIAMI, LLC— 388

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Company
CREED BOUTIQUE NORTHPARK, LLC

Transaction% interest
Dec. 31, 2023 Dec. 31, 2022

Acquisition
AcquisitionCC

100.00100.00––––Acquisition

C
C

65.07
100.00

C
–

64.32
–

Acquisition
AcquisitionCC

100.00100.00––––AcquisitionCC

100.00
65.07

–
C

–
64.32

C
C

65.07
65.07

C
C

64.32
64.32

C
C

65.07
65.07

C
C

64.32
64.32

C

65.07

C

64.32

C
C

100.00100.00

–
–

–
–

C
C

65.07
65.07

C
C

64.32
64.32

Acquisition

C
C
C
C

100.00
65.07
65.07
65.07

–
C
C
C

–
64.32
64.32
64.32

Acquisition

C
C
C

100.00
65.07
65.07

–
C
C

–
64.32
64.32

KERING EYEWEAR TAIWAN Ltd
South Korea

C

65.07

C

64.32

KERING EYEWEAR KOREA Ltd
India

C

65.07

C

64.32

KERING EYEWEAR INDIA Ltd
MAUI JIM SUN OPTICS INDIA PRIVATE LIMITED

C
C

65.07
65.07

C
C

64.32
64.32

C

65.07

C

64.32

C

65.07

C

64.32

C

65.07

C

64.32

C

65.07

C

64.32

C

65.07

C

64.32

C
C
C
C

100.00
65.07
65.07
65.07

–
C
C
C

–
64.32
64.32
64.32

CREED BOUTIQUE VALLEY FAIR LCC
HUIPU CORP.
INTERNATIONAL COSMETICS AND PERFUMES, INC.
INTERNATIONAL COSMETICS AND PERFUMES FLO,LLC
INTERNATIONAL COSMETICS AND PERFUMES MAT,LLC
INTERNATIONAL COSMETICS AND PERFUMES MIZ, LLC
KERING EYEWEAR USA Inc.
MAUI JIM INC.
MAUI JIM USA, INC.
NILES FISHING COMPANY, LTD.
ZEAL OPTICS, INC.
LINDBERG USA, INC.
MexicoCOSPER INTERNATIONAL S. DE R.L. DE C.V.
CREED BOUTIQUE MASARYK S.A DE C.V.
Australia

Acquisition
Acquisition

KERING EYEWEAR AUSTRALIA PTY Ltd
MAUI JIM AUSTRALIA PTY, LTD
Greater China
Mainland China
FONTAINE (SHANGHAI) INTERNATIONAL TRADE CO., LTD
KERING EYEWEAR SHANGHAI TRADING ENTERPRISES Ltd
LINDBERG SHANGHAI TRADING LTD
MAUI JIM EYEWEAR SELLING (SHANGHAI) CO., LTD
Hong Kong SAR
FONTAINE HK LTD.
KERING EYEWEAR APAC Ltd
MAUI JIM ASIA LIMITED
TaiwanJapan
KERING EYEWEAR JAPAN Ltd
Malaysia
KERING EYEWEAR MALAYSIA SDN BHD
MexicoMAUI JIM SUNGLASSES DE MEXICO S DE RL DE CV
Singapore
KERING EYEWEAR SINGAPORE PTE LTD
South Africa
MAUI JIM SOUTH AFRICA (PTY) LTD
United Arab Emirates
CREED MIDDLE EAST PERFUMES TRADING LLC
KERING EYEWEAR MIDDLE EAST FZ-LLC
MAUI JIM MIDDLE EAST TRADING L.L.C
MAUI JIM MIDDLE EAST FZEAcquisition

KERING - 2023 Universal Registration Document

389 —

6

6

Financial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Company

Transaction% interest
Dec. 31, 2023 Dec. 31, 2022

CORPORATEFrance56 MONTAIGNE 1 SNC

MergerFormation

CC

100.00100.00––––Formation

CC

100.00100.00–C–
100.00C
C

100.00100.00C
C

100.00100.00Formation

CC

100.00100.00C–

100.00–Formation
Formation

CC

100.00100.00––––Formation

CC

100.00100.00–C–
100.00C
C

100.00100.00C–

100.00
–

C
C
C
C
C

100.00100.00100.00100.00100.00

C
C
C–
C

100.00100.00100.00–100.00KERING SPAIN SL
United Kingdom

C

100.00C

100.00KERING INTERNATIONAL Ltd
KERING UK SERVICES Ltd

C
C100.00100.00C
C

100.00100.00

C
C
C

100.00100.00
50.74

C
C
C

100.00100.00
50.74

C
–
–
C

100.00––100.00

C
C
C
C

100.00100.0094.13
100.00C
C
C
C
C

100.00100.00100.00100.00100.00C
C
C
C
C

100.00100.00100.00100.00100.00

C
C
C

100.00
51.00
51.00

C
C
C

100.00
51.00
51.00

C

100.00C

100.00C

100.00C

100.00C–

100.000.00

CE

100.0022.22

56 MONTAIGNE SNC
CASTIGLIONE 12-14 SCIDISCODIS SASGG FRANCE 13 SAS
GG FRANCE 14 SAS
IMMO FRANCE 1 SAS
IMMO FRANCE 2 SAS
IMMO FRANCE 3 SAS
IMMO FRANCE 4 SAS
IMMO FRANCE 5 SAS
KERING BEAUTE SAS
KERING FINANCE SNC
KERING FRANCE 1
KERING FRANCE PARTICIPATIONS SAS

Formation

KERING SIGNATURE
KERING VENTURE SAS
MONTAIGNE 35 - 37 SCIFormation

SOCIETE CIVILE KERING CAPITAL
Spain

Italy
KERING ITALIA SpAKERING SERVICE ITALIA SpA
NEVER GIVE UP INVESTMENTI S.R.L.
Luxembourg
E-KERING LUX SAGEMINGA SARLKERING INVESTMENTS SA

Liquidation
Liquidation

KERING RE
Netherlands
GUCCI PARTICIPATION BV
K OPERATIONS BVKERING HOLLAND NVKERING INVESTMENTS EUROPE BVKERNIC-MET BVSwitzerland
LUXURY GOODS INTERNATIONAL SALUXURY GOODS LOGISTICS SALUXURY GOODS OPERATIONS SA
BrazilKERING BRASIL SERVICOS ADMINISTRATIVOS LTDA
CanadaKERING CANADA SERVICES INC
United States
KERING AMERICAS Inc.
YOUR FRIENDS IN NEW YORK HOLDINGS, LLC— 390

KERING - 2023 Universal Registration Document

DisposalFinancial statements as of December 31, 2023
Consolidated financial statements as of December 31, 2023

Company
MexicoTransaction% interest
Dec. 31, 2023 Dec. 31, 2022

KERING MEXICO S. DE R.L. DE C.V.
Australia

C

100.00C

100.00KERING AUSTRALIA PTY Ltd
Greater China

C100.00C

100.00Mainland China
KERING INVESTMENT MANAGEMENT GROUP CO., LTD

C

100.00C

100.00Hong Kong SAR
KERING ASIA PACIFIC Ltd

C

100.00C

100.00South Korea
KERING KOREA LLC

C

100.00C

100.00KERING JAPAN Ltd
KERING TOKYO INVESTMENT Ltd

C
C
C

100.00100.00100.00

C
C
C

100.00100.00100.00

Malaysia
KERING SERVICES MALAYSIA SDN BHD

C

100.00C

100.00KERING SOUTH EAST ASIA PTE Ltd
United Arab Emirates

C

100.00C

100.00KERING SERVICES MIDDLE EAST

C

100.00C

100.00Japan
YUGEN KAISHA GUCCISingapore

KERING - 2023 Universal Registration Document

391 —

6

6

États financiers au 31 décembre 2023
Statutory auditors’ report on the consolidated financial statements

2 - STATUTORY AUDITORS’ REPORT ON
THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023
This is a translation into English of the statutory auditors’ report on the consolidated financial statements of the Company issued in
French and it is provided solely for the convenience of English speaking users.
This statutory auditors’ report includes information specifically required by French law, such as information about the appointment of
the statutory auditors or verification of the management report and other documents provided to shareholders.
This report should be read in conjunction with, and construed in accordance with French law and professional auditing standards
applicable in France.
To the Kering S.A. General Shareholders’ Meeting,OpinionIn compliance with the engagement entrusted to us by the Shareholders’ Meeting, we have audited the accompanying consolidated
financial statements of Kering S.A. for the year ended December 31, 2023.
In our opinion, the consolidated financial statements present fairly, in all material respects, the assets and liabilities and the financial
position of the Group as of December 31, 2023 and the results of its operations for the year then ended in accordance with International
Financial Reporting Standards as adopted by the European Union.
The audit opinion expressed above is consistent with our report to the Audit Committee.

Basis for Opinion
Audit Framework
We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the "Statutory Auditors’ Responsibilities for the Audit of theConsolidated Financial Statements" section of our report.

Independence
We conducted our audit in compliance with independence requirements of the French Commercial Code (Code de commerce) and theFrench Code of Ethics (Code de déontologie) for statutory auditors, for the period from January 1, 2023 to the date of our report andspecifically we did not provide any prohibited non-audit services referred to in article 5(1) of Regulation (EU) No 537/2014.

Justification of Assessments - Key Audit Matters
In accordance with the requirements of Articles L.821-53 and R.821-180 of the French Commercial Code (Code de commerce) relating to
the justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement that, in our
professional judgment, were of most significance in the audit of the consolidated financial statements of the current period, as well as
how we addressed those risks.
These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on specific items of the consolidated financial statements.

— 392

KERING - 2023 Universal Registration DocumentÉtats financiers au 31 décembre 2023
Statutory auditors’ report on the consolidated financial statements

6

Impairment tests on goodwill and intangible assets with indefinite useful lives
Notes 11, 12 and 33.12 to the consolidated financial statements
Risk identified
Our response
As of December 31, 2023, goodwill and brands are recorded on We performed a critical review of the methodology applied by
the balance sheet for a net carrying amount of €7,112 million the Group to carry out the impairment tests.
and €7,208 million or 17.2% and 17.4% of the total consolidated Our procedures consisted in, for the CGU with a risk ofbalance sheet, respectively.
impairment loss:
The Group tests the value of its assets for impairment by • examining the items comprising the carrying amount of theallocating them to cash-generating units (CGUs). The
CGUs to which the goodwill and brands have been allocatedimpairment tests are performed each year, or whenever eventsby the Group;or circumstances indicate that an impairment loss is likely.
• reviewing the consistency of cash flow projections with
CGUs as defined by the Group represent the operating segments
Management assumptions and the economic environments inin which the Group’s brands operate.
which the Group operates;
Impairment tests seek to determine whether the recoverable • assessing the consistency of the long-term growth rates
amount of a CGU is less than its net carrying amount. The
adopted for projected cash flows with external analyses;
recoverable amount of a CGU is the higher of its fair value less • assessing the reasonableness of discount rates applied tocosts to sell and its value in use. The value in use is determined
estimated cash flows, with the help of our valuation experts;
with respect to future cash flow projections, taking into account•comparing cash flow projections of the previous year withthe time value of money and the specific risks attributable to thecorresponding actual cash flows to assess their reliability;
CGU.
•
performing sensitivity analyses of the recoverable amount toFuture cash flow projections are based on medium–terma reasonable change in the long-term growth rate andbudgets and plans.
discount rates used by Management;
When the CGU’s recoverable amount is less than its net carrying•
confirming that Notes 11 and 12 to the consolidated financial
amount, an impairment loss is recognized. Impairment isstatements provide appropriate disclosures.
charged first to goodwill and recognized under "Other nonrecurring operating income and expenses" in the income
statement.
Impairments tests carried out did not lead to the recognition of
any impairment loss in 2023.
Given the significant amount of goodwill and brands in the
consolidated balance sheet as at December 31, 2023 and theuncertainties inherent in certain assumptions, notably theprobability of achieving forecasts used to calculate therecoverable amount, we considered the valuation of goodwill
and intangible assets with indefinite lives to be a key audit
matter.

Valuation of inventory impairment
Notes 17 and 33.18 tot the consolidated financial statements
Risk identified
Our response
As of December 31, 2023, inventories appear on the consolidated Our procedures consisted in:balance sheet for a net amount of €4,550 million and represent • assessing the methods used to value inventory impairment;
11% of consolidated assets, including inventory allowances of • examining the data and assumptions adopted by€1,525 million.
Management to write down inventories with regard to their
As disclosed in Note 33.18 to the consolidated financial
aging and future clearance;statements, the cost of inventories is determined according to•assessing the consistency of the impairment rates adopted in
the weighted average cost method for all of the Group’s
comparison with other players in the Group’s businessbusinesses.
sectors.
An inventory impairment loss was recorded based on theprospects of inventory clearance, obsolescence and damage.
Given the significant amount of inventories in the consolidatedbalance sheet as of December 31, 2023, and the degree of
judgment inherent in certain assumptions underlying thevaluation of inventory depreciation, namely related to sales
projections or obsolescence, we considered this topic to be a key
audit matter.

KERING - 2023 Universal Registration Document

393 —

6

États financiers au 31 décembre 2023
Statutory auditors’ report on the consolidated financial statements

Specific Verifications
We have also performed, in accordance with professional standards applicable in France, the specific verifications required by laws andregulations of the information pertaining to the Group presented in the management report of the Board of Directors.
We have no matters to report as its fair presentation and its consistency with the consolidated financial statements.
We attest that the consolidated non-financial information statement required by article L. 225-102-1 of the French Commercial Code
(Code de commerce) is included in the information pertaining to the Group presented in the management report. Pursuant toarticle L. 823-10 of this Code, we have verified neither the fair presentation nor the consistency with the consolidated financial
statements of the information contained therein. A report will be issued on this information by an independent third-party.

Other Legal and Regulatory Verifications or Information
Format of presentation of the consolidated financial statements intended to be included in
the annual financial report
We have also verified, in accordance with the professional standard applicable in France relating to the procedures performed by thestatutory auditor relating to the annual and consolidated financial statements presented in the European single electronic format, thatthe presentation of the consolidated financial statements intended to be included in the annual financial report mentioned inarticle L.451-1-2, I of the French Monetary and Financial Code (Code monétaire et financier), prepared under the responsibility of the
Chairman and Chief Executive Officer, complies with the single electronic format defined in the European Delegated Regulation
no. 2019/815 of December 17, 2018. As it relates to consolidated financial statements, our work includes verifying that the tagging ofthese consolidated financial statements complies with the format defined in the above delegated regulation.
Based on the work we have performed, we conclude that the presentation of the consolidated financial statements intended to be
included in the annual financial report complies, in all material respects, with the European single electronic format.
Due to the technical limitations inherent to the block-tagging of the consolidated financial statements according to the European single
electronic format, the content of certain tags for the notes may not be rendered identically to the accompanying consolidated financial
statements.
We have no responsibility to verify that the consolidated financial statements that will ultimately be included by your company in theannual financial report filed with the AMF are in agreement with those on which we have performed our work.

Appointment of the Statutory Auditors
We were appointed statutory auditors of Kering S.A. by the Shareholders’ Meeting of May 18, 1994 for Deloitte & Associés, and of
April 28, 2022 for PricewaterhouseCoopers Audit.
As of December 31, 2023, Deloitte & Associés was in its 30th year of uninterrupted engagement and PricewaterhouseCoopers Audit in its
2nd year.

Responsabilities of Management and Those Charged with Governancefor the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with
International Financial Reporting Standards as adopted by the European Union, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as agoing concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it isexpected to liquidate the Company or to cease its operations.
The Audit Committee is responsible for monitoring the financial reporting process and the effectiveness of internal control and risks
management systems and, where applicable, its internal audit, regarding the accounting and financial reporting procedures.
The consolidated financial statements were approved by the Board of Directors.

— 394

KERING - 2023 Universal Registration DocumentÉtats financiers au 31 décembre 2023
Statutory auditors’ report on the consolidated financial statements

6

Statutory Auditors' Responsibilities for the Auditof the Consolidated Financial Statements
Objective and audit approach
Our role is to issue a report on the consolidated financial statements. Our objective is to obtain reasonable assurance about whether
the consolidated financial statements as a whole are free from material misstatement. Reasonable assurance is a high level ofassurance, but is not a guarantee that an audit conducted in accordance with professional standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
As specified by article L. 821-55 of the French Commercial Code (Code de commerce), our statutory audit does not include assurance on
the viability of the Company or the quality of management of the affairs of the Company.
As part of an audit conducted in accordance with professional standards applicable in France, the statutory auditor exercises
professional judgment throughout the audit and furthermore:• Identifies and assesses the risks of material misstatement of the consolidated financial statements, whether due to fraud or error,
designs and performs audit procedures responsive to those risks, and obtains audit evidence considered to be sufficient andappropriate to provide a basis for his opinion. The risk of not detecting a material misstatement resulting from fraud is higher thanfor one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control;• Obtains an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control;• Evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management in the consolidated financial statements;• Assesses the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. This assessment is based on the audit evidence obtained up to the date of his audit report.
However, future events or conditions may cause the Company to cease to continue as a going concern. If the statutory auditor
concludes that a material uncertainty exists, there is a requirement to draw attention in the audit report to the related disclosuresin the consolidated financial statements or, if such disclosures are not provided or inadequate, to modify the opinion expressed
therein;• Evaluates the overall presentation of the consolidated financial statements and assesses whether these statements represent theunderlying transactions and events in a manner that achieves fair presentation;• Obtains sufficient appropriate audit evidence regarding the financial information of the entities or business activities within theGroup to express an opinion on the consolidated financial statements. The statutory auditor is responsible for the direction,
supervision and performance of the audit of the consolidated financial statements and for the opinion expressed on these
consolidated financial statements.

Report to the Audit Committee
We submit a report to the Audit Committee which includes in particular a description of the scope of the audit and the audit program
implemented, as well as the results of our audit. We also report, if any, significant deficiencies in internal control regarding theaccounting and financial reporting procedures that we have identified.
Our report to the Audit Committee includes the risks of material misstatement that, in our professional judgment, were of mostsignificance in the audit of the consolidated financial statements of the current period and which are therefore the key audit mattersthat we are required to describe in this report.
We also provide the Audit Committee with the declaration referred to in article 6 of Regulation (EU) Number 537/2014, confirming our
independence pursuant to the rules applicable in France such as they are set in particular by Articles L. 821-27 to L. 821-34 of the French
Commercial Code (Code de commerce) and in the French Code of Ethics (Code de déontologie) for statutory auditors. Where appropriate,
we discuss with the Audit Committee the risks that may reasonably be thought to bear on our independence, and the related
safeguards.
Neuilly-sur-Seine and Paris-La Défense, February 29, 2024
The Statutory Auditors
French original signed byPricewaterhouseCoopers Audit
Camille Phelizon

Patrice Morot

Deloitte & AssociésDavid Dupont-Noel

Bénédicte Margerin

KERING - 2023 Universal Registration Document

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6

Financial statements as of December 31, 2023
Kering SA annual financial statements

3 - KERING SA ANNUAL FINANCIAL STATEMENTS
3.1 Balance sheet – Assets as of December 31, 2023 and 2022
2023

2022

Gross

Depreciation,amortizationand provisions

Carrying
amountCarrying
amountInvestments

15,533(1,656)

13,877

9,365

Other long-term investments
Total investments

1,541
17,074(123)(1,779)1,418
15,295

1,172
10,5374669
17,743(245)(2,024)424
15,719381
10,918

Receivables(1)

5

518

(1)

517

392

Marketable securities
Cash(1)

6
6

96
2,126

0
0

96
2,126

111
1,365

2,740

(1)

2,739

1,868

20,483(2,025)18,45812,786

2,393

1,556

(in € millions)

Notes

Non-current assets

Property, plant and equipment and intangible assets
Total non-current assets

3

Current assets

Total current assets

ASSETS(1) o/w concerning associates:

3.2 Balance sheet – Equity and liabilities as of December 31, 2023
and 2022(in € millions)

Notes

2023

2022

494
1,381

496
1,711

1,345
2,427
1,855
7,502
66

1,345
2,585
1,552
7,689
51

9,852
130
908
10,890

4,238
40
768
5,046

18,45812,786

9,351
153

3,638
64

EquityShare capital
Additional paid-in capital
Reserves
Retained earnings
Net income for the year
Total equity
Provisions

7

8

Liabilities

Bond issues(1)Other borrowings(1)(2)
Other liabilities(2)Total liabilities

TOTAL EQUITY AND LIABILITIES(1) o/w due in more than one year:(2) o/w concerning associates:— 396

KERING - 2023 Universal Registration Document

9.1
9.1
10

Financial statements as of December 31, 2023
Kering SA annual financial statements

3.3 Income statement
For the years ended December 31, 2023 and 2022
(in € millions)Operating income
Operating expenses
Net operating loss

Notes

2023

2022

12

653
(718)
(64)

584
(633)
(49)

1,888
(110)

1,628
(107)

Dividends
Other financial income and expenses
Financial result
Recurring income before tax

13

1,778
1,714

1,521
1,472

Net non-recurring income (expense)
Employee profit-sharing

14

63
(8)

41
(9)

Income taxes
Net income for the year

15

86
1,855

48
1,552

In the context of the certification of Kering SA's annual financial statements, a reclassification was made between operating expenses
and operating income compared to the version of the Financial Document as published on February 8, 2024, with no impact on the net
operating loss or the net income for the year.

3.4 Statement of cash flows
For the years ended December 31, 2023 and 2022
(in € millions)

Dividends received
Interest on borrowings
Income tax (paid) received
Other
Net cash flow resulting from operating activities(Acquisitions) disposals of operating assets
Change in long-term investments
Net cash flow resulting from investing activities
Net change in borrowings
Share capital increases
Dividends paid by Kering
Net cash flow resulting from financing activities
Change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

2023
1,888
(148)
189
33
1,962
(122)
(5,041)(5,163)
5,674

2022
1,628
(51)
25
(80)
1,521
(116)
(2,713)(2,829)872–(1,712)
3,962
761
1,365
2,126

39
(1,483)(573)(1,880)
3,245
1,365

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6

Financial statements as of December 31, 2023
Kering SA annual financial statements

3.5 Statement of changes in equity(in € millions)(before appropriation of net income)As of December 31, 2021
Appropriation of 2021 net income
Dividends paid
Interim dividend
Share capital increase
Share capital reduction
Employee share ownership
Cancellation of shares
Changes in tax-driven provisions
2022 net income
As of December 31, 2022
Appropriation of 2022 net income
Dividends paid
Interim dividend
Share capital increase
Share capital reduction
Employee share ownership
Cancellation of shares
Changes in tax-driven provisions
2023 net income
As of December 31, 2023

Number ofshares124,692,916–––
102,862(725,000)––––
124,070,778––––(650,000)––––
123,420,778

Sharecapital
499
–
–
–
–
(3)
–
–
–
–
496
–
–
–
–
(2)
–
–
–
–
494

Additional
Reserves
paid-in and retained
capitalearnings
2,052
2,766
–
2,769
–
(1,047)
–
(558)
–
–
–
–
38
–
(379)
–
–
–
–
–
1,711
3,930
–
1,552
–
(1,154)
–
(555)
–
–
(330)
–
–
–
–
–
–
–
–
–
1,381
3,772

Net income
for the year
2,769
(2,769)
–
–
–
–
–
–
–
1,552
1,552
(1,552)
–
–
–
–
–
–
–
1,855
1,855

Equity8,086–(1,047)
(558)
–
(3)
38
(379)
–
1,552
7,689
–
(1,154)
(555)
–
(332)
–
–
–
1,855
7,502

As of December 31, 2023, Kering's share capital comprised 123,420,778 shares with a par value of €4.00 each.

3.6 Notes to the annual financial statements

NOTE 1 – 2023 HIGHLIGHTS
Beginning of the second half of 2023, Kering announced a seriesof top appointments aimed at strengthening the stewardship ofits Houses, further elevating operating expertise andstrengthening its organisation.
• Francesca Bellettini, in addition to her current role as
President and CEO of Yves Saint Laurent since 2013, wasappointed Kering Deputy CEO in charge of Brand
Development.
• Jean-Marc Duplaix, Chief Financial Officer since 2012, wasappointed Kering Deputy CEO, in charge of Operations andFinance.
• Jean-François Palus, Kering Group Managing Director, wasappointed President and CEO of Gucci, replacing Marco
Bizzarri, who has been President and CEO of Gucci since 2015.
He left the Company on September 23, 2023.
• Armelle Poulou, Director of Corporate Finance, Treasury andInsurance since 2019, was appointed Chief Financial Officer
on September 1, 2023. She is reporting to Jean-Marc Duplaix.
In February 2023, Kering carried out a dual-tranche bond issue fora total amount of EUR 1.5 billion, consisting of a EUR 750 million— 398

KERING - 2023 Universal Registration Document

tranche with a 6-year maturity and a 3.25% coupon and a EUR
750 million tranche with a 10-year maturity and a 3.375%
coupon.
On May 13, 2023, Kering redeemed €600 million of maturing
bonds.
On September 5, 2023, Kering issued €3.8 billion of bonds in fourtranches: a €750 million tranche of 2-year bonds with a coupon of
3.75%, a €750 million tranche of 4-year bonds with a coupon of
3.625%, a €1 billion tranche of 8-year bonds with a coupon of
3.625% and a €1.3 billion tranche of 12-year bonds with a couponof 3.875%.
On November 23, 2023, Kering carried out its first sterling bondissue in a total amount of £800 million, comprising a £400 million
tranche of 3-year bonds with a coupon of 5.125% and a£400 million tranche of 9-year bonds with a coupon of 5%.
In 2023, Kering canceled 650,000 shares repurchased as part of
the fourth tranche of the share buyback program announced on
August 25, 2021, and accordingly reduced its share capital on
October 31, 2023.

Financial statements as of December 31, 2023
Kering SA annual financial statements

NOTE 2 – ACCOUNTING POLICIES AND METHODS
The annual financial statements are prepared in accordance with regulation no. 2014-03 of the French accounting standards authority(Autorité des normes comptables – ANC).

2.1

Intangible assets and property, plant and equipment

Property, plant and equipment and intangible assets are recorded in the balance sheet at their acquisition cost, which includes all
expenses that can be directly attributed to them and that are necessary for them to operate or be brought into service. Depreciation
and amortization are calculated using the straight-line method based on the nature and useful life of each component.
Property, plant and equipment are depreciated and intangible assets are amortized using the straight-line method and the following
useful lives:
Software1 to 5 years

Internally generated software
Improvements to property

3 to 10 years
10 to 24 years

Technical installations, tools and equipment
Computer equipment

10 to 15 years
1 to 10 years

Office furniture

2.2

10 yearsLong-term investments

Investments

Other investments (excluding treasury shares)Securities classified as "Investments" are those considerednecessary for the Company's activities, particularly because they
provide the Company with influence over, or control of, theissuer.

Other investments are investments that the Company plans or isrequired to hold on a long-term basis, but which are not deemednecessary for the Company's activities.

The Company recognizes acquisition expenses in the cost price ofinvestments, in accordance with the standard method underFrench generally accepted accounting principles.
As of the end of the reporting period, the gross value ofinvestments is compared to their recoverable value for theCompany, determined with reference to the subsidiary's
estimated economic value and taking into consideration the
purpose of the original transaction. Recoverable value isdetermined using a multi-criteria approach based on future cash
flow projections, the revised asset value, the share of
consolidated or revalued shareholders' equity, and othermethods.
An impairment loss is recorded when this value falls below thegross value.

Other long-term investments

The gross amount of these investments is equal to the acquisition
cost plus any related acquisition fees.
An impairment loss is recognized based on the value in use of
these securities to the Company.

Treasury shares
Treasury shares acquired under liquidity agreements arerecorded under "Other long-term investments". These shares are
written down where necessary to reflect the average share priceover the last month of the fiscal year.
Treasury shares acquired for the express purpose of being used ina future capital reduction are also classified under "Other longterm investments". These shares are not written down to reflect
the share price.
Treasury shares are measured according to the first-in, first-out(FIFO) method.

Other long-term investments include other investments andcertain treasury shares.

2.3

Receivables

Receivables are recorded in the balance sheet at their nominal value and are written down where they present a risk of non-recovery.

2.4

Marketable securities and negotiable debt securities

Treasury shares

Other shares

Treasury shares acquired for the express purpose of being
subsequently granted to employees under stock option plans
and free share plans are recorded under "Marketable securities".
No impairment is recognized on treasury shares to reflect theshare price.

Shares are recorded at their acquisition cost. An impairment loss
is recognized when their closing price falls below their carrying
amount.

Treasury shares are measured according to the first-in, first-out(FIFO) method.
KERING - 2023 Universal Registration Document

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6

Financial statements as of December 31, 2023
Kering SA annual financial statements

Bonds

Mutual funds (SICAV)

Bonds are recorded on the acquisition date at their par value
adjusted for any premium or discount. Accrued interest as of theacquisition date and as of the end of the reporting period isrecorded in an accrued interest account.

Units in SICAV mutual funds are recorded at their acquisition cost
excluding subscription fees, and their net asset value is estimatedas of the end of the reporting period. A provision for impairment
is recorded in respect of any unrealized capital losses. No
unrealized capital gains are recognized.

As of the end of the reporting period, the cost of the bonds iscompared to the market value of the principal over the lastmonth of the year, excluding accrued interest. An impairment
loss is recorded when this value falls below the gross value.

Negotiable certificates of deposit,
certificates of deposit and notes issued byfinancing companies
Negotiable debt securities are subscribed on the primary market
or purchased on the secondary market. They are recorded atacquisition cost less accrued interest as of the acquisition datewhen purchased on the secondary market.
Prepaid interest is recognized as financial income on a
proportional basis for the fiscal year.

2.5

Foreign currency transactions

Income and expenses denominated in foreign currencies arerecorded at their euro-equivalent value on the transaction date.
Borrowings, receivables and liquidity positions denominated inforeign currencies are translated at the closing exchange rate. In
the case of foreign currency hedging, borrowings and receivables
are translated at the hedging rate.

2.6

Any translation differences resulting from the valuation of foreign
currency borrowings and receivables are recorded in accrual
accounts, as an asset for unrealized losses and as a liability for
unrealized gains. A contingency provision is recorded to cover
any unhedged unrealized losses. Where borrowings andreceivables are hedged by financial instruments, any foreign
currency gains or losses are recorded in the income statement
when the hedged item is settled.

Bond issue and capital increase fees – Bond redemption premiums

Bond issue fees are recognized as of the issue date.
Costs associated with increases in capital, mergers or
restructuring are charged against the additional paid-in capitalarising from the merger or restructuring.

Any issue or redemption premiums are assigned to the relevantbalance sheet item and amortized over the term of the bond.
For convertible bonds, the redemption premium is recognizedover the term of the bond.

Bonds are recorded at their par value.

2.7

Provisions

Provisions are recognized in accordance with CNC regulation
no. 2000.06 and include pension and other employee benefit
obligations pursuant to ANC recommendation no. 2013-02.
Under defined benefit plans, obligations are valued using the
projected unit credit method based on agreements in effect in
the Company. Under this method, each period of service gives
rise to an additional unit of benefit entitlement and each unit ismeasured separately to build up the final obligation. The
obligation is then discounted. The actuarial assumptions used todetermine the obligations vary depending on economic
conditions.

2.8

Kering applies CRC notice no. 2008-17 of November 6, 2008, on
the accounting treatment of stock option and employee freeshare plans.

Tax consolidation

Kering has set up a tax consolidation group in France with several
sub-groups and subsidiaries.

— 400

These benefit obligations are assessed by independent actuaries
on an annual basis. The valuations take into account the level offuture compensation, the probable active life of employees, life
expectancy and staff turnover.

KERING - 2023 Universal Registration Document

Each subsidiary recognizes a tax expense for the amount of tax it
would have paid on a stand-alone basis. The tax savings
generated by the Group as a result of tax consolidation are
retained by Kering SA as the parent company of the tax
consolidation group.

Financial statements as of December 31, 2023
Kering SA annual financial statements

NOTE 3 – LONG-TERM INVESTMENTS
As of Dec. 31,
2022

Increase

Decrease

Reclassification

As of Dec. 31,
2023

11,024
8,404

4,551
4,494

(43)
–

–
–

15,533
12,898

Marothi merger loss(1)Redcats

344
1,777

–
–

–
–

–
–

344
1,777

DiscodisYves Saint Laurent SAS

300
157

–
–

–
–

–
–

300
157

Other

43

57

(43)

–

57

1,265

1,126

(853)

4

1,541

–

200

(197)

–

3

333

–

(333)

–

–

605
90
11
14

–
–
–
–

(234)
(71)
(10)
–

4
–
–
–

374
19
1
14

188
1
23
12,289

926
–
–
5,677

(8)
–
–
(896)

–
–
–
4

1,106
1
23
17,074

Investments
Redcats
Other(1,659)(1,652)
(7)

–
–
–

4
4
–

–
–
–

(1,656)(1,649)(7)

Other long-term
investments
Treasury shares
Investments in funds
Other
Impairment losses
Carrying amount

(93)
(70)
–
(23)
(1,752)
10,537

(67)
(67)
–
–
(67)

37
37
–
–
41

–
–
–
–
–

(123)
(100)
–
(23)
(1,779)15,295(in € millions)

Gross value
Investments
Kering Holland NV

Other long-term
investments
Treasury shares(liquidity agreement)
Treasury shares(for cancellation)
Treasury shares(share buyback program)
PUMA
Sapardis merger loss(2)Investments in funds
Loans and accrued
interest on loans(3)Deposits and guarantees
Other
Gross value
Impairment losses(1) The Financière Marothi merger loss was allocated to the KHNV shares. Changes in the underlying assets as of December 31, 2023, did not giverise to recognition of an impairment.
(2) All of the assets and liabilities of Sapardis were transferred to Kering SA in 2018, resulting in a merger loss of €59.7 million, which was allocatedto the investment in PUMA. Following the sales of PUMA shares in 2020, 2021, 2022 and 2023, the amount stands at €1.5 million.
(3) In 2023, loans included a USD 200 million loan and two loans of £400 million to Kering Finance.

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6

Financial statements as of December 31, 2023
Kering SA annual financial statements

Treasury share transactions
In 2023, the Group purchased 404,970 shares and sold 398,220
shares under the liquidity agreement.
No stock subscription options were exercised during 2023.
Since May 26, 2004, Kering has maintained agreements with abroker in order to improve the liquidity of the Group's shares andensure share price stability. The latest agreement was signed on
February 13, 2019, in accordance with AMF ruling no. 2018-01 of
July 2, 2018, applicable since January 1, 2019. An amendment tothat agreement came into force on July 1, 2021, providing for the
resources in the liquidity account to be reduced by €25 million. As
a result, there has been €25 million in the liquidity account since
July 1, 2021.

As of December 31, 2023, Kering held 6,750 shares and as ofDecember 31, 2022 it held no shares in treasury under theliquidity agreement.

Share Buyback Program
The Share Buyback Program was completed on December 15,
2022. Between August 25, 2021, and December 15, 2022, theCompany repurchased 2.6 million shares. Of those,
1,700,000 shares have already been canceled.
The total purchase price of the canceled shares was€332,614,575.12, which was allocated to the following accounts:• €2,600,000 to "share capital";• €330,014,575.12, corresponding to the remaining surplus overpar value paid for the canceled shares, to "additional paid-in
capital".

NOTE 4 – PROPERTY, PLANT AND EQUIPMENT
AND INTANGIBLE ASSETS
Movements in property, plant and equipment and intangible assets are presented below:
Depreciation
Gross and impairment
620
(222)
49
(23)

Dec. 31, 2023
Net
398
26

Dec. 31, 2022
Net
352
29

Reversals
Disposals/
Depreciationof depreciation
retirements and amortization and amortization
–
(75)
–

Carrying
amount as ofDecember 31398(in € millions)Intangible assets
Property, plant and equipment

Changes in non-current assets(in € millions)Intangible assets(1)Property, plantand equipment

TOTAL

Carrying
amount as ofJanuary 1
352

Acquisitions
121

29

1

–

(4)

–

26

381

122

–

(79)

–

424

(1) Acquisitions in the period mainly concern IT projects for the Group.

— 402

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Kering SA annual financial statements

NOTE 5 – RECEIVABLES
These line items break down as follows:
Dec. 31, 2023
19

Dec. 31, 2022
37

Income tax benefit
Group customers

147
226

67
138

Bond issue premiums
Other(1)

34
65

6
135

Prepaid expenses(2)

25

9

TOTAL

516

392

o/w concerning associates:

267

196

Dec. 31, 2023

Dec. 31, 2022

Treasury shares pending employee grants
Treasury shares granted
Mutual funds (Sicav)
Marketable securities
Bank deposits and fund transfers
Cash current accounts
Cash

–
73
23
96
–
2,126
2,126

–
86
25
111
4
1,360
1,365

CASH AND CASH EQUIVALENTS

2,222

1,475

o/w concerning associates:

2,126

1,360

(in € millions)Tax consolidation current accounts(1) The change in 2023 was mainly due to the reimbursement of guarantee deposits relating to real-estate purchases.
(2) Prepaid expenses mainly comprise fees, lease payments and insurance premiums.

NOTE 6 – MARKETABLE SECURITIES AND CASH
These line items break down as follows:(in € millions)Bank deposits include certificates of deposit and term deposits and accounts with a maturity of less than three months.

NOTE 7 – RESERVESThe Company's reserves before the appropriation of net income break down as follows:(in € millions)

Legal reserve
Tax-driven reserves
Other reserves
Reserves
Tax-driven provisions

TOTAL

Dec. 31, 2023
51
1,294
–
1,345
–

Dec. 31, 2022
51
1,294
–
1,345
–

1,345

1,345

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6

Financial statements as of December 31, 2023
Kering SA annual financial statements

NOTE 8 – PROVISIONS
Disputes
Risks relating to subsidiaries

Dec. 31, 2022
1–

Additions–
14

Reversals(utilized
provisions)––

Pensions and other employee
benefit obligations
Share plans
Foreign exchange risk

11
39
–

1
20
2

(1)
(10)
–

–
(10)
–

11
39
2

TOTAL

51

37

(11)

(11)

66

–
1
1
35

–
(1)
–
(10)

–
(1)
–
(10)

(in € millions)o/w:
operating items
financing items
non-recurring items

Reversals(surplus
provisions)(1)–Dec. 31, 2023–
14

The main actuarial assumptions used to determine pensions and other employee benefit obligations are:• discount rate of 4.5% in 2023 as opposed to 4% in 2022;• salary increase rate of 2.50%.

8.1

Free share grants(in €)

Date of the Annual General Meeting

4/27/2023

Date of grant by the Board of Directors

10/3/2023

Provisional grants as of January 1, 2023

90,738Provisional grants during the period

55,305Grants forfeited in 2023

(21,297)

Final grants in 2023

(16,928)

Provisional grants as of Dec. 31, 2023

107,818

Amount of the liability on the balance sheet
The unit value of the 2023 provisional free share grants is €450.81.

— 404

KERING - 2023 Universal Registration Document

39,610,923

Financial statements as of December 31, 2023
Kering SA annual financial statements

NOTE 9 – BORROWINGS
Bonds
Euro-denominated bond issues(in € millions)

Bond issue(1)Bond issue(2)Bond issue(3)Bond issue(4)Bond issue(5)Bond issue(6)Bond issue(7)Bond issue(8)Bond issue(9)Bond issue(10)Bond issue(11)Bond issue(12)Bond issue(13)Bond issue(14)Interestrate
2.75% fixed

Issue date

Hedge

Maturity

Dec. 31, 2023

Dec. 31, 2022–

4/8/2024

500

500

1.60% fixed

4/8/2014& 5/30/2014& 6/26/2014& 9/22/2015& 11/5/2015
4/16/2015–

4/16/2035

50

50

1.25% fixed
1.50% fixed

5/10/2016
4/5/2017––

5/10/2026
4/5/2027

500
300

500
300

0.25% fixed
0.75% fixed

5/13/2020
5/13/2020––

5/13/2023
5/13/2028

–
600

600
600

1.25% fixed
1.875% fixed

5/5/2022
5/5/2022––

5/5/2025
5/5/2030

750
750

750
750

3.25% fixed
3.375% fixed

2/27/2023
2/27/2023––

2/27/2029
2/27/2033

750
750

–
–

3.75% fixed
3.625% fixed
3.625% fixed
3.875% fixed

9/5/2023
9/5/2023
9/5/2023
9/5/2023––––

9/5/2025
9/5/2027
9/5/2031
9/5/2035

750
750
1,000
1,300

–
–
–
–

(1) Issue price: bond issue on April 8, 2014, comprising 1,000 bonds with a par value of €100,000 each under the EMTN program, with 1,000 additionalbonds issued on May 30, 2014, 1,000 additional bonds issued on June 26, 2014, 1,500 additional bonds issued on September 22, 2015, and 500
additional bonds issued on November 5, 2015, thereby raising the issue to 5,000 bonds.
Redemption: in full on April 8, 2024.
(2) Issue price: bond issue on April 16, 2015, comprising 500 bonds with a par value of €100,000 each under the EMTN program.
Redemption: in full on April 16, 2035.
(3) Issue price: bond issue on May 10, 2016, comprising 5,000 bonds with a par value of €100,000 each under the EMTN program.
Redemption: in full on May 10, 2026.
(4) Issue price: bond issue on April 5, 2017, comprising 3,000 bonds with a par value of €100,000 each under the EMTN program.
Redemption: in full on April 5, 2027.
(5) Issue price: bond issue on May 13, 2020, comprising 6,000 bonds with a par value of €100,000 each under the EMTN program.
Redemption: in full on May 13, 2023.
(6) Issue price: bond issue on May 13, 2020, comprising 6,000 bonds with a par value of €100,000 each under the EMTN program.
Redemption: in full on May 13, 2028.
(7) Issue price: bond issue on May 5, 2022, comprising 7,500 bonds with a par value of €100,000 each under the EMTN program.
Redemption: in full on May 5, 2025.
(8) Issue price: bond issue on May 5, 2022, comprising 7,500 bonds with a par value of €100,000 each under the EMTN program.
Redemption: in full on May 5, 2030.
(9) Issue price: bond issue on February 27, 2023, comprising 7,500 bonds with a par value of €100,000 each under the EMTN program.
Redemption: in full on February 27, 2029.
(10) Issue price: bond issue on February 27, 2023, comprising 7,500 bonds with a par value of €100,000 each under the EMTN program.
Redemption: in full on February 27, 2033.
(11) Issue price: bond issue on September 5, 2023, comprising 7,500 bonds with a par value of €100,000 each under the EMTN program.
Redemption: in full on September 5, 2025.
(12) Issue price: bond issue on September 5, 2023, comprising 7,500 bonds with a par value of €100,000 each under the EMTN program.
Redemption: in full on September 5, 2027.
(13) Issue price: bond issue on September 5, 2023, comprising 10,000 bonds with a par value of €100,000 each under the EMTN program.
Redemption: in full on September 5, 2031.
(14) Issue price: bond issue on September 5, 2023, comprising 13,000 bonds with a par value of €100,000 each under the EMTN program.
Redemption: in full on September 5, 2035.

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6

Financial statements as of December 31, 2023
Kering SA annual financial statements

USD-denominated bond issues(in € millions)

Bond issue(1)Interest rate Issue date
3.639% fixed
5/27/2022

Hedge Maturity
Dec. 31, 2023 Dec. 31, 2022
5/27/2027
181
188(1) Issue price: bond issue on May 27, 2022, comprising 200 bonds with a par value of USD 1,000,000 each under the EMTN program, i.e.
representing a total of USD 200 million.
Redemption: in full on May 27, 2027.

GBP-denominated bond issues(in € millions)

Bond issue(1)Bond issue(2)Interest rate
5.125% fixed
5% fixed

Issue date
11/23/2023
11/23/2023

Hedge
-

Maturity
11/23/2026
11/23/2032

Dec. 31, 2023
460
460

Dec. 31, 2022
00(1) Issue price: bond issue on November 23, 2023, comprising 4,000 bonds with a par value of £100,000 each under the EMTN program, i.e. a totalof £400 million.
Redemption: in full on November 23, 2026.
(2) Issue price: bond issue on November 23, 2023, comprising 4,000 bonds with a par value of £100,000 each under the EMTN program, i.e. a totalof £400 million.
Redemption: in full on November 23, 2032.

The bonds issued between 2014 and 2017 within the scope of the EMTN program are all subject to a change-of-control clause entitlingbondholders to request early redemption at par if Kering's rating is downgraded to non-investment grade following a change of control.

9.1

Breakdown by type
Dec. 31, 2023
9,852
130
0
130

Dec. 31, 2022
4,238
38
2
40

9,982

4,278

0

0

Dec. 31, 2023
631
4,291
5,060

Dec. 31, 2022
640
2,238
1,400

9,982

4,278

Borrowings
Cash

Dec. 31, 2023
9,982
(2,126)

Dec. 31, 2022
4,276
(1,365)NET DEBT

7,856

2,911

(in € millions)

Bonds
Interest on bond issues
Bank overdrafts
Other borrowings

TOTAL
o/w concerning associates:
As of December 31, 2023 and 2022, no borrowings were secured by collateral.

9.2

Breakdown by maturity(in € millions)Less than one year
One to five years
More than five years

TOTAL

9.3

Net debt(in € millions)— 406

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Kering SA annual financial statements

NOTE 10 – OTHER LIABILITIES
These line items break down as follows:
Dec. 31, 2023

Dec. 31, 2022

Tax consolidation current accounts
Dividends payable

175
556

10
558

Tax and employee-related liabilities
Other(1)

60
117

68
132

TOTAL

908

768

o/w concerning associates:

153

64

(in € millions)(1) "Other" primarily includes liabilities to the Group, in an amount of €54.7 million.

NOTE 11 – OFF-BALANCE SHEET COMMITMENTS
11.1 Interest-rate hedges
As part of the Group's policy of hedging interest rate risk, Kering sets up interest rate swaps in connection with certain borrowings.
No interest rate hedges were in place as of December 31, 2023.

11.2 Other off-balance sheet commitments(in € millions)

Endorsements and guarantees in favor of:• associates• third parties outside the Group(1)Endorsements and guarantees

Dec. 31, 2023

Dec. 31, 2022

355
338
693

1
181
182

(1) Of which €226 million of lease-related commitments in 2023.

11.3 Other commitments made to Kering
As of December 31, 2023, Kering SA had €3,185 million of unused confirmed lines of credit with a remaining time to expiry of more than
one year.

NOTE 12 – NET OPERATING LOSS
Net operating loss breaks down as follows:
Group management fees
Revenue from investments
Other income(1)Rent and related charges
Payroll expenses and taxes
Management fees
Other external expenses(2)Income tax and other levies

2023
200
10
444
(40)
(136)
(67)
(469)
(6)

2022
212
7
365
(33)
(116)
(65)
(413)
(6)

TOTAL

(64)

(49)

(1)

(1)

(in € millions)o/w Directors’ fees:(1) Other income mainly relates to IT services.
(2) Other external expenses mainly relate to IT services.

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6

Financial statements as of December 31, 2023
Kering SA annual financial statements

NOTE 13 – FINANCIAL RESULTNet financial income breaks down as follows:(in € millions)

2023

2022

Net interest expense
Expenses and interest on non-Group debt

(110)
(152)

(107)
(43)

Other financial income and expense
Dividends

42
1,888

(64)
1,628

Kering Holland NV
Kering Finance

1,870
0

1,600
15

15
3

9
4

1,778

1,521

1,885

1,624

YSL Couture
Other

TOTAL
o/w concerning associates:
Dividends

NOTE 14 – NET NON-RECURRING INCOME (EXPENSE)
Net non-recurring income (expense) breaks down as follows:
2023

2022

Net proceeds from disposals/retirements of operating assets
Net proceeds from disposals of securities, impairment losses and related transactions

0
55

(30)
72

Cost of disputes, litigation and restructuring
Other non-recurring income (expense)

(1)
9

0
(1)

TOTAL

63

41

2023
38
41
79
(10)
17

2022
33
13
46
(2)
4

86

48

(in € millions)

In 2023, net non-recurring income mainly reflects the gain on the sale of PUMA’s shares.

NOTE 15 – INCOME TAX BREAKDOWN(in € millions)Tax on recurring income and employee profit-sharing
Tax on non-recurring income
Tax with respect to previous years
Tax consolidation impact

TOTAL

Under a tax consolidation agreement that came into effect on January 1, 1988, Kering pays the tax due by members of the tax
consolidation group and fulfills all relevant tax obligations.
The tax consolidation group comprised 36 companies in 2023 and 33 in 2022.

NOTE 16 – DEFERRED TAX ASSETS AND LIABILITIES(in € millions)Deferred tax assets
Paid leave
Retirement termination benefits

0.2
0.3

TOTAL

0.5

— 408

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Kering SA annual financial statements

NOTE 17 – OTHER INFORMATION
17.1 Average headcount
The Company had an average of 745 employees (630 managerial-grade employees (cadres) and 115 other employees) in 2023 compared
to 618 in 2022.

17.2 Fees paid to Statutory Auditors
Statutory Auditors' fees recorded in the income statement are shown below:(in € thousands)

Deloitte & Associés
2023
2022

PwC
2023

2022

Statutory audit of the parent company
and consolidated financial statements

866

817

666

612

Non-audit services(1)

407

217

32

41

1,273

1,034

698

653

TOTAL

(1) The non-audit services rendered by PwC to Kering SA and its fully-consolidated subsidiaries are mainly related to comfort letters. The nonaudit services rendered by Deloitte & Associés to Kering SA and its fully-consolidated subsidiaries are mainly related to comfort letters and theverification of the non-financial information statement.

17.3 Remuneration of the Board of Directors and the Executive Committee
In 2023, total compensation of €20.1 million was awarded (paidor provisioned) to the members of the Board of Directors and the
Executive Committee who are employees of Kering SA, versus€10.4 million in 2022.

This change is mainly due to the cancellation in 2022 of long-term
incentives (KMU) for executive corporate officers, amounting to€8 million.

17.4 Consolidating company
Kering prepares the consolidated financial statements and iscontrolled by Artemis, which holds 42.23% of its capital and

59.28% of its voting rights. Artémis is wholly owned by Financière
Pinault.

17.5 Transactions with related parties
The support agreement between Artémis and Kering signed on
September 27, 1993, generated an expense of €6.7 million in 2023
compared with an expense of €7.2 million in 2022.
A six-month service agreement was signed with Maureen Chiquet
on July 28, 2023 for €200,000.

Other transactions with related parties were contracted at arm's
length conditions. As a result, no additional disclosures are
required pursuant to article R.183-198 11 of the French
Commercial Code.

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Financial statements as of December 31, 2023
Kering SA annual financial statements

NOTE 18 – SUBSEQUENT EVENTS
Kering SA paid an interim dividend of €4.50 per share on
January 17, 2024, on positions established on the evening ofJanuary 16, 2024, pursuant to a decision by the Board of Directors
on December 7, 2023.

3.7 Other information
Dividends received by the Company
during the year

Last published net income(loss)

Last published revenue
excl. VATNet

Endorsements and guarantees givenby the Company

Gross

Outstanding loans grantedby the Company

Carrying amountof shares(in euros)% of capital held(in € thousands)

Shareholder's equity excl.
Share capital and net income

Subsidiaries and investments as of December 31, 2023

Share capital6

I - Detailed informationA – Subsidiaries (more than 50%-owned and representing over 1% of the share capital)
DiscodisFrance153,567

152,578

100.00299,736

299,736

7,579

KeringHolland NV

Netherlands

108,246 (1)3,144,154 (1)100.0013,241,719 (3)13,241,719

1,871,116 (1)KeringInternational(2)UnitedKingdom

14,094 (1)3,015 (1)100.0014,773

14,773

KeringStudioFrance380(62)100.00

6,510

306

(12)

Immo
France 1

France8,999

0100.00

8,999

8,999

(3,768)

Redcats

France401

123,181100.001,776,645

127,450

3,868

KeringCapitalFrance20,71040,634100.0020,47520,475

6,663

15,368,857

13,713,458

Subtotal

3,475 (1)1,600,000

301 (1)

B – Investments (less than 50%-owned and representing over 1% of the share capital)
Climatefund fornatureFranceYves Saint
Laurent

France9,980 (1)123,811(4)

90,20949.95 (5)

4,985

4,985

2.86

157,232

157,232

162,217

162,217864

342

15,531,938

13,876,018

Subtotal

II – Aggregate informationA – Subsidiaries not listed in I
Frenchsubsidiaries
Non-French
subsidiaries

B – Investments not listed in I
Frenchinvestments
Non-French
investments
TOTAL

(1)
(2)
(3)
(4)
(5)

— 410

Based on accounts as of December 31, 2022.
Based on the GBP exchange rate as of December 31, 2022.
Including the Financière Marothi merger loss of €344,066 thousand.
Data not available.
This % is applicable as of 12/31/2023 on the basis of funds called to date.

KERING - 2023 Universal Registration Document

2,032,785 (1)591,504 (1)15,279Financial statements as of December 31, 2023
Kering SA annual financial statements

Payment terms for trade payables and trade receivables
Invoices received or issued and due but not settled at the end of the reporting period (table provided for in article D. 441-4(I) of theFrench Commercial Code).
Article D. 441(I)(1): invoices received and due but not settled at
the end of the reporting period

Article D. 441(I)(2): Invoices issued and due but not settled at the end of
the reporting period

Total
(1 or
more
days)

0 days(indicative)

Total
(1 or
more
days)

243

390

166,391,126

385,250

26.00%–

0 days(indicative)

1 to
30 days

31 to
60
days

61 to 90days

91 days
andabove

1 to 30days

31 to 60
days

61 to
91 days
90 days and above(A) Days late
Numberof invoices

344

Total amountof invoices(excl. VAT)

43,989,180

1,238,051

543

374,325

1,229,077

2,841,996

As a % of totalpurchases forthe reporting
period(excl. VAT)

8.51%

0.24%

–

0.07%

0.24%

0.55%

As a %of revenue
for thereportingperiod (excl.
VAT)

360

2,273,655 30,733,595 13,452,582 46,845,082

0.36%

4.89%

2.14%

7.45%

(B) Invoices excluded from (A) – relating to contested or unrecognized payables or receivables
Numberof invoices
excluded

N/A

N/A

Total amountof invoices
excluded (excl.
VAT)

N/A

N/A

(C) Reference payment terms used (contractual or legal – Article L. 441-6 or Article L. 443-1 of the French Commercial Code)Reference
payment terms
used tocalculate latepayments

Legal terms: 30 to 60 days

Contractual terms: 30 days from date of invoice

Legal terms:
The payment term of sums due is set at 30 days following the date on which the goods are received, or on which the service is carriedout.
Parties may make exceptions to this principle. However, the term agreed by the parties may not exceed 60 days or, as an exception,
45 days from the end of the month, as of the date of issue of the invoice.
The agreed payment term must be specified on the invoice and in the general terms and conditions of sale.
Invoices issued periodically (or summary invoices) must be paid within a maximum of 45 days from the date of issue.
Purchases of VAT-exempt goods and services delivered outside the European Union may be settled up to 90 days from the invoice date.
The term must be indicated in the sales contract.

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6

Financial statements as of December 31, 2023
Kering SA annual financial statements

3.8 Five-year financial summary
Share capital at year-end
Share capital (in €)Number of ordinary shares outstanding

2023

2022

2021

2020

2019

493,683,112
123,420,778

496,283,112
124,070,778

498,771,664
124,692,916

500,071,664
125,017,916

505,117,288
126,279,322

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

227,789

248,861

193,582

191,417249,910

1,902,496
86,441
7,617

1,661,129
48,0008,589

2,522,667
231,694
7,098

2,035,513
83,711
1,292

668,442
168,205
6,900

1,855,171
1,727,891 (1)1,552,045
1,736,991

2,769,080
1,371,622

2,079,582
1,000,143

917,677
1,010,235

15.41

13.39

20.23

16.28

6.57

15.03

12.51

22.21

16.63

7.27

Maximum number of potential shares to beissuedby conversion of bonds
by exercise of stock subscription options
Operations and results for the year(in € thousands)
Income from operating activities
Net income before tax, employee profit-sharing,
depreciation, amortization and provisions
Income tax (expense) benefit
Employee profit-sharing for the year
Net income after tax, employee profit-sharing,
depreciation, amortization and provisions
Dividend distribution
Per share data (in €)Net income after tax, employee profit-sharing,
but before depreciation, amortizationand provisions
Net income after tax, employee profit-sharing,
depreciation, amortization and provisions
Dividend:
Net dividend per share(2)Employee data
Average number of employees during the year
Total annual payroll (in € thousands)

14.00 (1)

14.00

12.00

8.00

8.00

745
67,017618
56,877536
60,030493
76,731

438
80,267

Total employee benefits paid during the year(social security, employee benefits, etc.)(in € thousands)

40,23541,74236,82838,49033,144(1) Subject to approval by the Annual General Meeting.
Including an interim dividend of €4.50 per share paid on January 17, 2024.
(2) Pursuant to article 243 bis of the French Tax Code (Code général des impôts), the full amount of the dividend paid to individuals who are tax
residents in France qualifies for the 40% tax credit provided under article 158-3(2) of said Code.

— 412

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Statutory Auditors’ Report on the financial statements

4 - STATUTORY AUDITORS’ REPORTON THE FINANCIAL STATEMENTS
For the year ended December 31, 2023
This is a translation into English of the Statutory auditors’ report on the financial statements of the Company issued in French and it isprovided solely for the convenience of English speaking users.
This Statutory auditors’ report includes information required by French law, such as information about the appointment of the Statutory
auditors or verification of the Management Report and other documents provided to shareholders.
This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards
applicable in France.
To the Kering S.A. General Shareholders’ Meeting,OpinionIn compliance with the engagement entrusted to us by the Shareholders’ Meeting, we have audited the accompanying financial
statements of Kering SA for the year ended December 31, 2023.
In our opinion, the financial statements give a true and fair view of the assets and liabilities and of the financial position of the Company
as at December 31, 2023 and of the results of its operations for the year then ended in accordance with French accounting principles.
The audit opinion expressed above is consistent with our report to the Audit Committee.

Basis for Opinion
Audit Framework
We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the "Statutory Auditors' Responsibilities for the Audit of the
Financial Statements" section of our report.

Independence

We conducted our audit engagement in compliance with independence requirements of the French Commercial Code (Code decommerce) and the French Code of Ethics (Code de déontologie) for statutory auditors, for the period from January 1, 2023 to the date ofour report and specifically we did not provide any prohibited non-audit services referred to in article 5, paragraph 1, of Regulation (EU)No 537/2014.

Justification of Assessments – Key Audit Matters

In accordance with the requirements of Articles L.821-53 and R.821-180 of the French Commercial Code (Code de commerce) relating to
the justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement that, in our
professional judgment, were of most significance in our audit of the financial statements of the current period, as well as how weaddressed those risks.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on specific items of the financial statements.

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6

Financial statements as of December 31, 2023
Statutory Auditors’ Report on the financial statements

Valuation of long-term investments
Notes 2.2 and 3 to the financial statements
Risk Identified

Our response
Long-term investments, appearing on the balance sheet as of To assess the reasonableness of the estimated values in use
December 31, 2023 for a gross amount of €15,533 million and a of long-term investments, based on the information
net amount of €13,877 milion represent the most significant communicated to us, our work mainly consisted in:balance sheet item. They are recognized at their date of entry at • verifying that the estimated values in use determined byacquisition cost, including acquisition expenses.
Management are based on an appropriate justification of thevaluation method and the figures used;
As indicated in Note 2.2 to the financial statements, at year-end,
the gross amount of investments is compared to their value in • ensuring that the net carrying amounts of the investments areuse for the Company, determined with reference to the
below their value in use, taking into account the share of
subsidiary’s estimated economic value and taking into
consolidated or revalued shareholders’ equity, cash flows
consideration the purpose of the original transaction. Value inprojections, latest available forecasted information, and theuse is determined using a multi-criteria approach based on
profitability outlook.
future cash flow projections and the share of consolidated orrevalued shareholders’ equity. Other methods are used whennecessary. An impairment loss is recorded when this value falls
below the gross value.
Given the materiality of long-term investments on the balance
sheet, and the estimates and assumptions used to determine
value in use, we considered the valuation of long-term
investments to be a key audit matter.

Specific Verifications
We have also performed, in accordance with professional standards applicable in France, the specific verifications required by laws andregulations.

Information presented in the Management Report and in the other documents with respect
to the financial position and the financial statements provided to shareholders
We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in
the management report of the Board of Directors and in the other documents with respect to the financial position and the financial
statements provided to shareholders.
We attest the fair presentation and the consistency with the financial statements of the information relating to payment deadlines
mentioned in article D. 441-6 of the French Commercial Code (Code de commerce).

Information relating to corporate governance
We attest that the section of the management report devoted to corporate governance sets out the information required by Articles L.
225-37-4, L. 22-10-10 and L. 22-10-9 of the French Commercial Code (Code de commerce).
Concerning the information given in accordance with the requirements of article L. 22-10-9 of the French Commercial Code (Code decommerce) relating to remunerations and benefits received by or awarded to the members of the Board of Directors and any othercommitments made in their favour, we have verified its consistency with the financial statements, or with the underlying information
used to prepare these financial statements and, where applicable, with the information obtained by your Company from controlled
enterprises included in the scope of consolidation. Based on these procedures, we attest the accuracy and fair presentation of thisinformation.
With respect to the information relating to items that your company considered likely to have an impact in the event of a takeover bid or
exchange offer, provided pursuant to article L. 22-10-11of the French Commercial Code (Code de commerce), we have agreed thisinformation to the source documents communicated to us. Based on these procedures, we have no observations to make on thisinformation.

Other Information
In accordance with French law, we have verified that the required information concerning the purchase of investments and controllinginterests and the identity of the shareholders or holders of the voting rights has been properly disclosed in the management report.

— 414

KERING - 2023 Universal Registration Document

Financial statements as of December 31, 2023
Statutory Auditors’ Report on the financial statements

Other Legal and Regulatory Verifications or Information
Format of presentation of the financial statements intended to be includedin the annual financial report
We have also verified, in accordance with the professional standard applicable in France relating to the procedures performed by thestatutory auditor relating to the annual and consolidated financial statements presented in the European single electronic format, thatthe presentation of the financial statements intended to be included in the annual financial report mentioned in article L. 451-1-2, I of
the French Monetary and Financial Code (Code monétaire et financier), prepared under the responsibility of the Chairman and Chief
Executive Officer, complies with the single electronic format defined in the European Delegated Regulation No 2019/815 of 17 December
2018.
Based on the work we have performed, we conclude that the presentation of the financial statements intended to be included in theannual financial report complies, in all material respects, with the European single electronic format.
We have no responsibility to verify that the financial statements that will ultimately be included by your company in the annual financial
report filed with the AMF are in agreement with those on which we have performed our work.

Appointment of the Statutory Auditors
We were appointed as statutory auditors of Kering SA by the Shareholders’ Meeting of May 18, 1994 for Deloitte & Associés and April 28,
2022 for PricewaterhouseCoopers Audit.
As at December 31, 2023, Deloitte & Associés was in its 30th year of uninterrupted engagement and PricewaterhouseCoopers Audit in its
2nd.

Responsibilities of Management and Those Charged with Governancefor the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with French accounting
principles, and for such internal control as management determines is necessary to enable the preparation of financial statements thatare free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is expected toliquidate the Company or to cease operations.
The Audit Committee is responsible for monitoring the financial reporting process and the effectiveness of internal control and risks
management systems and where applicable, its internal audit, regarding the accounting and financial reporting procedures.
The financial statements were approved by the Board of Directors.

Statutory Auditors’ Responsibilities for the Audit of the Financial Statements
Objectives and audit approach
Our role is to issue a report on the financial statements. Our objective is to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement. Reasonable assurance is a high level of assurance but is not a guaranteethat an audit conducted in accordance with professional standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
As specified in article L. 821-55 of the French Commercial Code (Code de commerce), our statutory audit does not include assurance on
the viability of the Company or the quality of management of the affairs of the Company.

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Financial statements as of December 31, 2023
Statutory Auditors’ Report on the financial statements

As part of an audit conducted in accordance with professional standards applicable in France, the statutory auditor exercises
professional judgment throughout the audit and furthermore:• identifies and assesses the risks of material misstatement of the financial statements, whether due to fraud or error, designs andperforms audit procedures responsive to those risks, and obtains audit evidence considered to be sufficient and appropriate toprovide a basis for his opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control;• obtains an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control;• evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management in the financial statements;• assesses the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. This assessment is based on the audit evidence obtained up to the date of his audit report.
However, future events or conditions may cause the Company to cease to continue as a going concern. If the statutory auditor
concludes that a material uncertainty exists, there is a requirement to draw attention in the audit report to the related disclosuresin the financial statements or, if such disclosures are not provided or inadequate, to modify the opinion expressed therein;• evaluates the overall presentation of the financial statements and assesses whether these statements represent the underlying
transactions and events in a manner that achieves fair presentation.

Report to the Audit Committee
We submit a report to the Audit Committee which includes in particular a description of the scope of the audit and the audit program
implemented, as well as the results of our audit. We also report, if any, significant deficiencies in internal control regarding theaccounting and financial reporting procedures that we have identified.
Our report to the Audit Committee includes the risks of material misstatement that, in our professional judgment, were of mostsignificance in the audit of the financial statements of the current period and which are therefore the key audit matters that we are
required to describe in this report.
We also provide the Audit Committee with the declaration provided for in article 6 of Regulation (EU) N° 537/2014, confirming our
independence within the meaning of the rules applicable in France such as they are set in particular by Articles L. 821-27 to L. 821-34 of
the French Commercial Code (Code de commerce) and in the French Code of Ethics for statutory auditors. Where appropriate, we
discuss with the Audit Committee the risks that may reasonably be thought to bear on our independence, and the related safeguards.
Neuilly-sur-Seine and Paris-La Défense, February 29, 2024
The Statutory Auditors
French original signed byPricewaterhouseCoopers Audit
Deloitte & Associés
Camille Phelizon
Patrice Morot
David Dupont-Noel
Bénédicte Margerin— 416

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Financial statements as of December 31, 2023
Statutory Auditors’ Special Report on regulated agreements with third parties

5 - STATUTORY AUDITORS’ SPECIAL REPORTON REGULATED AGREEMENTS WITH THIRD PARTIES
Shareholders' Meeting held to approve the financial statements for the year ended December 31, 2023
This is a free translation into English of the Statutory Auditors’ special report on regulated agreements with third parties issued in Frenchand is provided solely for the convenience of English speaking readers.
This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards
applicable in France.
To the Kering S.A. General Shareholders’ Meeting,In our capacity as Statutory Auditors of Kering S.A., we hereby report to you on regulated agreements with third parties.
It is our responsibility to report to shareholders, based on the information provided to us, on the main terms and conditions ofagreements that have been disclosed to us or that we may have identified as part of our engagement, as well as the reasons given as towhy they are beneficial for the Company, without commenting on their relevance or substance or identifying any undisclosed
agreements. Under the provisions of Article R.225-31 of the French Commercial Code (Code de commerce), it is the responsibility of theshareholders to determine whether the agreements are appropriate and should be approved.
Where applicable, it is also our responsibility to provide shareholders with the information required by Article R.225-31 of the French
Commercial Code in relation to the implementation during the year of agreements already approved by the Shareholders’ Meeting.
We performed the procedures that we deemed necessary in accordance with professional standards applicable in France to suchengagements. These procedures consisted in verifying that the information given to us is consistent with the underlying documents.

Agreements submitted for the approval of the Shareholders’ Meeting
Agreements authorized and entered into during the year
In accordance with Article L. 225-40 of the French Commercial Code, we were informed of the following agreement entered into during
the year and authorized in advance by the Board of Directors.
Service agreement with Maureen Chiquet
Under the terms of a service agreement signed with Kering S.A. on July 28, 2023, Maureen Chiquet provided the following services tothe Board of Directors on an ad hoc basis:• advice on brand issues and the elevation practices of Kering's Houses;• specific analysis of the Houses’ current practices in terms of product offering, communication, customer experience and services;• advice on investments in the luxury goods industry.
Under the terms of this specific assignment, Maureen Chiquet provided the Company and the Board of Directors with insight into
dynamics at work within the luxury goods industry and existing best practices, in order to facilitate the analysis of the performance ofKering's Houses, their positioning in the luxury goods sector, and the monitoring of the implementation of their elevation strategy.
The service agreement was previously authorized by the Board of Directors on July 18, 2023 for a non-renewable six-month period, andincluded a lump-sum payment of €200,000. The agreement expired on December 31, 2023.
Reasons why the agreement was beneficial for the Company:
The Board of Directors considered that this agreement would enable Kering to benefit from personalized support, given Maureen
Chiquet's specific experience, in order to accelerate the process undertaken by the Group and guarantee the success of its Houses.
Person concerned:• Maureen Chiquet, Director of Kering SA since September 1, 2023.

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Financial statements as of December 31, 2023
Statutory Auditors’ Special Report on regulated agreements with third parties

Agreements previously approved by the shareholders’ meeting
Agreements approved in previous years that remained in force during the year
Pursuant to Article R.225-30 of the French Commercial Code, we have been advised that the following agreement, approved in previous
years by the Shareholders’ Meeting, remained in force during the year.
Support agreement for services provided by Artémis SAS
Pursuant to the terms of a support agreement signed on September 27, 1993 between Kering SA and Artémis SAS, – it being specified
that this company was converted from a public limited liability company (société anonyme) into a simplified limited liability
company (société par actions simplifiée) on July 23, 2018 – Artémis SAS carries out research and advisory work for Kering SA in thefollowing areas:• strategy and development of the Kering SA Group and support in carrying out complex legal, tax, financial and real estatetransactions;• sourcing of business development opportunities in France and abroad or cost-cutting measures.
At its March 10, 1999 meeting, the Kering SA Supervisory Board authorized payment for these services amounting to 0.037% ofconsolidated net revenue (excluding VAT).
In line with the appropriate modifications to Kering SA’s corporate governance rules, the Board of Directors decided on July 6, 2005,
without amending the agreement in force since September 27, 1993, that the Kering SA Audit Committee would perform, in addition to
the usual annual review of the existence and substance of the support provided by Artémis SAS to Kering SA, an annual assessment of
the services and a fair price for the services, given the conveniences provided and the cost savings realized in the common interest.
The methods for assessing the contractually agreed amount were reviewed by the Audit Committee which, at its meeting of February 5,2024, noted that Kering SA had continued to benefit, during 2023, from the advice and assistance of Artémis SAS on recurring topics
including communications, public and institutional relations, as well as the development strategy and its implementation and access toa luxury environment (loans of artwork, access to premises).
At its February 7, 2024 meeting, the Board of Directors re-examined this agreement, and duly noted the payment of €6,747 thousand(excluding VAT) under this agreement in respect of 2023, it being specified that the revenue from Kering Eyewear and from discontinued
operations were excluded from the calculation base of this fee, as was the case in previous years.
Persons concerned:• Artémis SAS, a shareholder of Kering SA with more than 10% of the voting rights;• François-Henri Pinault, Chairman and Chief Executive Officer of Kering SA, and Chairman of Artémis SAS;
• Jean-François Palus, Director and Group Managing Director of Kering SA, until October 3, 2023, and Deputy Managing Directorof Artémis SAS;
• Héloïse Temple-Boyer, permanent representative of Financière Pinault SCA, Director of Kering SA and Deputy Managing Directorof Artémis SAS.
Neuilly-sur-Seine and Paris-La Défense, February 29, 2024
The Statutory Auditors
French original signed byPricewaterhouseCoopers Audit
Deloitte & Associés
Camille Phelizon
Patrice Morot
David Dupont-Noel
Bénédicte Margerin— 418

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CHAPTER 7
Investor information
1 - Capital
1.1 Share capital
1.2 Treasury shares held by theCompany and its subsidiaries
1.3 Authorizations to issue securities
giving access to the share capital
1.4 Employee share ownership
1.5 Appropriation of net income –Dividends paid by the Company
1.6 Share pledges
1.7 Arrangements and agreements

420
420
420
421
422
423
423
423

424
2 - Share ownership structure
2.1 Change in share ownershipand voting rights
424
2.2 Shareholder notifications
425
2.3 Breakdown of the share capital asof December 31, 2023 (rounded
figures)426
2.4 Stock market information
426
2.5 The Kering share427
2.6 Financial communications policy
and relations
with our stakeholders
429

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Investor information
Capital1 - CAPITAL
1.1 Share capital
Share capital as of December 31, 2023
As of December 31, 2023, the share capital amounted to€493,683,112 and was divided into 123,420,778 shares(1) with apar value of €4 each (all of the same class), all fully paid up. The
number of actual voting rights at the same date totaled
175,731,386 (after deducting treasury shares, which do not carryvoting rights).

As of December 31, 2023, to the Company’s knowledge:• the Directors directly held 0.03% of the share capital,
representing 0.04% of the voting rights (after deducting
treasury shares, which do not carry voting rights);• the Company directly held 840,597 treasury shares, including
6,750 under the liquidity agreement. None of the Company’s
shares were held by controlled companies.

Share capital movements over the past three years

Year

Description of
Additionaltransaction paid-in capital

Aggregate
Nominalamounts ofamount of Company capital
capital changes(as of Dec. 31)

Aggregate number ofordinary €4 shares(as of Dec. 31)

Aggregate
number of
voting rights(1)(as of Dec. 31)

2023

Capital reduction
by cancellationof shares€330,014,575€2,600,000€493,683,112

123,420,778

176,571,983

2022

Capital reduction
by cancellation of shares€379,393,989€2,900,000€496,283,112

124,070,778

177,000,210

Capital increase reservedfor employees€38,264,850€411,448

Capital reduction
by cancellation of shares€207,903,954€1,300,000€498,771,664

124,692,916

177,587,206

2021(1) Total number of voting rights, including treasury shares.

1.2 Treasury shares held by the Company and its subsidiaries
Acquisition of treasury sharesby the Company
The Annual General Meeting of April 28, 2022 authorized theBoard of Directors to trade in Company shares for a period of
18 months in accordance with the goals and terms of the stock
repurchase program filed with the AMF. This program specifies amaximum purchase price of €1,000 per share and states that the
number of shares purchased may not exceed 10% of the sharecapital.
The authorization given to the Board of Directors to trade inCompany shares for a period of 18 months was renewed at theAnnual General Meeting of April 27, 2023 under the ninth
resolution (maximum purchase price of €1,000 per share).
The objectives that could be pursued are defined in thecorresponding resolution and include canceling shares, allotting
shares to the Company’s employees or corporate officers within
the scope of free share or stock purchase option plans, ensuringliquidity and maintaining the Company’s share price under aliquidity agreement, retaining shares and, where applicable,
selling, transferring or exchanging them in external growthtransactions.

Liquidity agreement
Since May 26, 2004, Kering has maintained agreements with abroker in order to improve the liquidity of the Group's shares andensure share price stability. The latest agreement was signed on
February 13, 2019, in accordance with AMF ruling no. 2018-01 of
July 2, 2018, applicable since January 1, 2019. An amendment tothat agreement came into force on July 1, 2021, providing for the
resources in the liquidity account to be reduced by €25 million. As
a result, there was €25 million in the liquidity account on July 1,
2021.
During 2023, Kering purchased 404,970 shares for an amount of€200.5 million, representing an average price of €495.06 pershare. Similarly, Kering sold 398,220 shares for an amount of€197.3 million, representing an average price of €495.48 pershare. From January 1, 2024 to February 7, 2024, the Company
purchased 43,900 shares at an average price of €377.59 per shareand sold 49,165 shares at an average price of €379.04 per share
under the liquidity agreement.

Share buyback program and allocation to free share plans
The share buyback program – authorized by the General Meeting of July 6, 2021, announced on August 25, 2021 and renewed by theGeneral Meeting of April 28, 2022, with the aim of repurchasing up to 2.0% of the Group’s share capital over a 24-month period – wascompleted on December 15, 2022. On October 31, 2023, the Company canceled 650,000 treasury shares repurchased as part of the
fourth and final tranche of the aforementioned share buyback program and reduced its share capital accordingly.

(1)

— 420

Changes in the number of shares in issue are set out in chapter 6 (Kering SA annual financial statements, 3.5 - Statement of changes in equity).

KERING - 2023 Universal Registration Document

Investor information
Capital

1.3 Authorizations to issue securities giving access to the share capital
Authorizations to issue shares or other securities in force as of December 31, 2023
Pursuant to the decisions of the Annual General Meetings of April 28, 2022 and April 27, 2023, the Board of Directors has the following
authorizations:
Date of Annual
General Meeting

Maximum
Period ofauthorized
validity nominal amount

Description of authorization(number of resolution)
Share capital increases with preferential subscription rights maintained
Share capital increase via the issue, with preferential
April 27, 2023
subscription rights maintained, of shares and/or securities(11th)
giving access, immediately and/or in the future, to shares orto debt securities(expiry date)(in € millions)

Currentuse

26 months(June 2025)

200(1)

UnusedShare capital increase via the capitalization of reserves,profits or additional paid-in capital

26 months(June 2025)

200(2)

UnusedApril 27, 2023
(12th)

Share capital increases with preferential subscription rights canceled
Share capital increase via the issue, with preferential
subscription rights canceled, by public offering, of shares
and/or securities giving access, immediately and/or in the
future, to shares, including as payment for shares tendered toa public exchange offer, or to debt securities

April 27, 2023
(13th)

26 months(June 2025)50(3)UnusedShare capital increase via the issue, with preferential
subscription rights canceled, via a public offering intended forcertain investors, of shares and/or securities giving access,
immediately and/or in the future, to equity or debt securities

April 27, 2023
(14th)

26 months(June 2025)

50(4)(5)

UnusedAuthorization to set the issue price for a share capitalincrease, with preferential subscription rights canceled, by
public offering, including a public offering to certain
investors, limited to 5% of the share capital per year

April 27, 2023
(15th)

26 months(June 2025)

5% of the sharecapital per year(3)UnusedShare capital increase to pay for in-kind contributions, limited
to 10% of the share capital

April 27, 2023
(17th)

26 months(June 2025)

10% of the sharecapital(5)UnusedApril 27, 2023
(16th)

26 months(June 2025)

15% of theamount of theinitial issue(3)(6)

UnusedFree awards of performance shares
Free awards of existing shares and/or shares to be issued forthe benefit of employees and executive corporate officers of
the Group

April 28, 2022
(16th)

38 months(June 2025)

1% of the share Used (seecapitalbelow)

Share capital increase reserved for employees
Capital increase reserved for eligible employees, former
employees and corporate officers who are members of acompany savings plan

April 27, 2023
(18th)

26 months(June 2025)

0.5% of the sharecapital(7)UnusedCapital increase for the benefit of Group employees or certain
categories of Group employees outside of France

April 27, 2023
18 months(19th) (October 2024)

0.5% of the sharecapital(7)UnusedApril 27, 2023
(10th)

10% of the share Used (seecapital per
below)
24-month period

Share capital increases with preferential subscription rights maintained orcanceled
Increase in the number of shares or securities to be issued
within the scope of a share capital increase, with preferential
subscription rights maintained or canceled, limited to 15% of
the amount of the initial issue

Share capital reductions through the cancellation of shares
Authorization to reduce the share capital by canceling shares

24 months(April 2025)(1) This amount represents the maximum total nominal amount of capital increases that may take place under the authority granted by the 11th,
13th, 14th, 15th, 16th and 17th resolutions of the April 27, 2023 Annual General Meeting. The total nominal amount of capital increases taking
place pursuant to those resolutions count toward that maximum amount.
(2) This amount may not exceed the overall €200 million limit determined by the 11th resolution of the April 27, 2023 Annual General Meeting.
(3) This amount counts toward the overall €200 million limit set under the 11th resolution of the April 27, 2023 Annual General Meeting.
(4) Limited by article L. 225-136 of the French Commercial Code to 20% of the share capital per year in all cases.
(5) This amount counts toward the overall limit of €200 million and the sub-limit of €50 million determined by the 11th and 13th resolutions of theApril 27, 2023 Annual General Meeting.
(6) Limited to 15% of the initial issue carried out under the 11th, 13th and 14th resolutions and subject to the limit set in the resolutions pursuant
to which the issues are decided (11th, 13th and 14th resolutions), as well as the overall limit set in the 11th resolution of the April 27, 2023
Annual General Meeting.
(7) Common limit for capital increases taking place under the 18th and 19th of the April 27, 2023 Annual General Meeting.

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Investor information
Capital

As indicated in the above table, in the Annual General Meeting ofApril 27, 2023, shareholders authorized the Board of Directors to
issue, with preferential subscription rights maintained orcanceled, shares and/or securities giving access to theCompany’s share capital, immediately and/or in the future, andto increase the share capital by capitalizing reserves, profits oradditional paid-in capital.
The Annual General Meeting of April 28, 2022 authorized theBoard of Directors to carry out free awards of shares to
employees and executive corporate officers.

Other securities giving accessto the share capitalSpecial report on stock subscription
and purchase options and free share grants
A free share plan was put in place on October 3, 2023 (seeNote 6.2 to the consolidated financial statements, "Plans settled
in Kering shares").

In accordance with the authorization granted at the Annual
General Meeting of April 27, 2023 in the 10th resolution, on
October 31, 2023 the Chairman and Chief Executive Officer, acting
by delegation of authority from the Company’s Board of
Directors, reduced the share capital by a nominal amount of€2,600,000 through the cancellation of 650,000 treasury shares
resulting from the fourth and final tranche of the share buyback
program announced on August 15, 2021 and finalized on
December 15, 2022. This operation reduced the overall sharecapital to €493,683,112, divided into 123,420,778 shares with apar value of €4 each.

Stock subscription
and purchase option plans

In addition, as part of free performance share plans set up since2020 within the Group, and under the authorization granted by
the Annual General Meeting of April 28, 2022 in its 16th resolution,
on October 3, 2023 Kering awarded 73,222 performance shares tothe executive corporate officer and certain employees of theGroup.

As part of the strategic partnership with the investment company
Mayhoola(1), all or part of the price relating to the acquisition by
Kering of the remaining 70% of Valentino may be paid, under theseller's option, in Kering shares, either existing or to be issued, in
an amount not exceeding 3,000,000 shares.

The other authorizations were not used during the year.

No stock subscription and purchase option plans have been set
up since 2007. As of December 31, 2023, there were no stock
subscription or purchase options outstanding.

Other rights giving access tothe share capital

Changes in share capitaland rights attached to shares
Any changes in the share capital or the rights attached to sharesare governed by legal requirements and the specific provisions of
the Articles of Association as set out below.
Under article 15 of the Articles of Association, in the Company’s
internal organization, decisions by the Chief Executive Officer
relating to the issue of securities, regardless of their nature,require the prior approval of the Board of Directors when such
issues are likely to change the share capital.

1.4 Employee share ownership
As of December 31, 2023, Company and Group employees andexecutive corporate officers held 240,812 shares, representing
0.2% of the share capital, under the provisions ofarticle L. 225-102 of the French Commercial Code. This includes
the 19,338 Company shares held by employees through theemployee investment fund and the 95,153 shares owned by

(1)

— 422

employees as part of the KeringForYou program. This employee
share ownership program, implemented for the first time in 2022,
gives eligible employees in several countries the opportunity to
become Kering shareholders on preferential terms and thus havea direct interest in its development and future performance.

Details of which are given on pages 67 (Significant events of 2023) and 349 (Note 15 of the consolidated financial statements — Investments inequity-accounted).

KERING - 2023 Universal Registration Document

Investor information
Capital

1.5 Appropriation of net income – Dividends paid by the Company
Appropriation of net income
At its meeting of February 28, 2024, the Board of Directors decided to propose the following appropriation of net income to theshareholders at the Annual General Meeting:(in €)

SourceRetained earnings
Net income for the year

2,982,884,802.66
1,855,170,877.52

Total for appropriation
Appropriation

4,838,055,680.18

Statutory reserve(1)Dividend(2)–1,727,890,892.00

Retained earnings
Total

3,110,164,788.18
4,838,055,680.18(1) The amount of the statutory reserve has reached 10% of the share capital.
(2) Representing a dividend of €14 per share qualifying for the 40% tax allowance, payable on May 6, 2024. This amount corresponds to theinterim dividend (€4.50 per share) paid on January 17, 2024 (€551,605,077) plus the final dividend of €9.50 per share, equal to €1,176,285,815
calculated on the basis of the maximum number of shares carrying dividend rights.

At the Annual General Meeting to be held on April 25, 2024, theBoard of Directors will ask shareholders to approve a dividend of€14 in respect of 2023 for all shares carrying dividend rights as ofJanuary 1, 2023.

If this dividend is approved, the final dividend of €9.50 per sharewill have an ex-dividend date of May 2, 2024 and will be paid on
May 6, 2024.

An interim dividend of €4.50 per share was paid on January 17,2024 pursuant to a decision made by the Board of Directors on
December 7, 2023.

Dividends paid out in respect of the past three fiscal years
The following dividends have been paid in respect of the past three fiscal years:
Fiscal years
2022
2021
2020

Net dividend€14.00Qualifying for a tax
allowance of40%€12.00
€8.00

40%
40%

1.6 Share pledges
As of December 31, 2023, 5,680,000 registered shares were pledged by the Artémis group.
Registered shareholder(direct registered)

ArtémisArtémisArtémisArtémisBeneficiary/
Security Agent
HSBC
BRED
CA CIBCA CIB

Pledge startdate
06/05/20
07/19/2021
06/27/2023
09/26/2023

Pledge expiry
dateUnspecified(1)Unspecified(1)Unspecified(1)Unspecified(1)Number of
Pledge terms issuer's sharesof releasepledged
350,000
180,000
1,400,000
3,750,000% of issuer’s
capitalpledged(2)
0.28%
0.15%
1.13%
3.04%

(1) Full reimbursement or payment of the receivable.
(2) Based on the share capital as of December 31, 2023, comprising 123,420,778 shares with a par value of €4 each.

1.7 Arrangements and agreements
To the Company’s knowledge, there are no contractual arrangements or agreements involving shares or voting rights of the Company
that should have been disclosed to the AMF pursuant to article L. 233-11 of the French Commercial Code.

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Investor information
Share ownership structure

2 - SHARE OWNERSHIP STRUCTURE
2.1 Change in share ownership and voting rights
As of December 31, 2023

Artémis group

Numberof shares
52,116,352% of sharecapital42.23%

Treasury shares

840,597

0.68%

Employees and executive
corporate officers(1)Free float(2)TOTAL

No. of theoretical % of theoreticalvoting rights(4)(5) voting rights(4)(5)
104,167,971
58.99%
840,5970.48%% of actual
voting rights(6)59.28%
0.00%

240,8120.20%

361,515

0.20%

0.21%

70,223,017

56.90%

71,201,900

40.32%

40.52%

123,420,778

100.00%176,571,983

100.00%100.00%No. of theoretical % of theoreticalvoting rights(4)(5) voting rights(4)(5)% of actual
voting rights(6)As of December 31, 2022
Numberof shares% of sharecapitalArtémis group
Treasury shares

52,116,352
1,850,408

42.01%
1.49%

103,887,369
1,850,408

58.69%
1.05%

59.31%
0.00%

Employees and executive
corporate officers(1)Free float(3)236,934
69,867,084

0.19%
56.31%

369,923
70,892,510

0.21%40.05%

0.21%
40.48%

124,070,778

100.00%177,000,210

100.00%100.00%Artémis group
Treasury shares

Numberof shares
52,051,619
624,211% of sharecapital41.74%
0.50%

No. of theoretical % of theoreticalvoting rights(4)(5) voting rights(4)(5)
103,788,902
58.44%
624,2110.35%% of actual
voting rights(6)58.65%
0.00%

Employees and executive
corporate officers(1)Free float(3)129,492
71,887,594

0.10%
57.65%

232,696
72,941,397

0.13%
41.07%

0.13%
41.22%

124,692,916

100.00%177,587,206

100.00%100.00%TOTAL

As of December 31, 2021

TOTAL

(1) Including Kering’s employee investment fund.
(2) Shareholder notifications concerning the crossing of thresholds defined by law or in the Articles of Association in 2023 are detailed in
section 2.2 of the present chapter.
(3) In 2022, Baillie Gifford & Co. stated that it had crossed below and then above the statutory disclosure threshold of 5% of the share capital(notification no. 222C0552 and no. 222C1378). In 2022, the Company received six threshold crossing disclosures relating to the threshold of 2%of the share capital or voting rights stated in the Articles of Association, from Invesco Ltd. (crossing below the threshold of 2% of the sharecapital), Amundi (crossing above and then below the threshold of 2% of the share capital) and Caisse des Dépôts et Consignations (crossing
below and then above the threshold of 2% of the share capital, and then crossing above the threshold of 2% of the voting rights). No
shareholder notifications concerning the crossing of thresholds defined by law or in the Articles of Association were made in 2021 to theCompany's knowledge.
(4) Total number of voting rights (including treasury shares).
(5) Shares held for more than two years in a registered account in the name of the same shareholder carry double voting rights (see thesection entitled "Annual General Meetings – Double voting rights" in chapter 8).
(6) Minus treasury shares that lose their voting rights in an Annual General Meeting.

Artémis is wholly owned by Financière Pinault, itself controlled by
the Pinault family. Artémis holds 58.99% of the Company’s
theoretical voting rights (59.28% of the actual voting rights) andas such has de jure control of the Company within the meaning ofarticle L. 233-3-I of the French Commercial Code.

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The Company has implemented mechanisms contributing
toward maintaining an effective balance of power within its
governance and detailed in section 1.3 "Balance of Power" ofchapter 3 "Corporate governance" of this document.

Investor information
Share ownership structure

2.2 Shareholder notifications
In accordance with article L. 233-7, I of the French Commercial
Code, the following shareholder notifications concerning thecrossing of statutory thresholds were made in 2023:• on February 21, 2023, Baillie Gifford & Co.(1) acting on behalfof clients and funds that it manages, notified the Company
that on February 16, 2023 it had crossed below the thresholdof 5% of the Kering's share capital and that it held, for its
clients and funds, 6,202,211 of the Company's shares(2),representing the same number of voting rights, representing
4.99% of the share capital and 3.50% of the voting rights. The
crossing of that threshold resulted from a sale of Kering
shares in the market (notification no. 223C0338);• on March 2, 2023, Baillie Gifford & Co.(1) notified the Company
that on March 1, 2023, after acquiring Kering shares in themarket, it had crossed above the threshold of 5% of the sharecapital and that it held, for clients and funds, 6,239,382 Kering
shares, representing the same number of voting rights,
representing 5.03% of the share capital and 3.53% of thevoting rights (notification no. 223C0385);• on July 5, 2023, the same company(1) notified the Company
that on July 3, 2023, after transferring Kering shares held on
behalf of a client, it had crossed below the threshold of 5% of
the share capital and that it held, for clients and funds,
6,190,604(3) of the Company's shares, representing the same
number of voting rights, representing 4.99% of the sharecapital and 3.49% of the voting rights (notification
no. 223C1039).

(1)
(2)
(3)

In accordance with article 7 of the Company's Articles of
Association, the following shareholder notifications concerning
the crossing of thresholds were made to the Company in 2023:• on January 10, 2023, Caisse des Dépôts et Consignations
notified the Company that it had on December 20, 2022
crossed below the threshold of 2% of the voting rights andthat it held, directly and indirectly via CNP Assurances,
2,621,679 shares and voting rights representing 2.11% of thecapital and 1.48% of the voting rights;• on December 28, 2023, Baillie Gifford & Co notified theCompany that it had on December 19, 2023, crossed below
the threshold of 4% of the share capital and that it held,
directly and indirectly via Baillie Gifford Overseas Limited,
4,893,297 shares and voting rights representing 3.96% of thecapital and 2.77% of the voting rights.
On January 29, 2024 and February 16, 2024, Harris Associates
L.P. notified the Company that it had successively crossed
above and subsequently below the threshold of 2% of theshare capital and that it held 2,464,429 shares representing
1.997% of the capital on February 15, 2024.
At the date of this Universal Registration Document, to theCompany’s knowledge:• no other shareholder notifications concerning thresholds
defined by law or in the Articles of Association were made in2023;• there are no shareholder agreements or other agreements
whose exercise could result in a change of control overKering.

Acting as discretionary investment manager.
Including 77 Kering ADR (American Depositary Receipts).
Including 121 Kering ADR (American Depositary Receipts).

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Investor information
Share ownership structure

2.3 Breakdown of the share capital as of December 31, 2023
(rounded figures)
0.2%
Employees andexecutive corporate
officers(1)0.7%Treasury shares

52.7%

Institutional
investors

42.2%

4.2%

Individual
shareholders

ArtémisFamily holding
company

As of December 31, 2023, private individual shareholders held
4.2% of the Group’s share capital. Institutional investors owned
52.7%, with 6.8% held by French institutions and 45.9% byinvestors residing outside France.
Among the international institutional investors, North Americaand United Kingdom-based shareholders held 19.9% and 11.2%of the share capital, respectively. Continental European investors(excluding France) held 7.9%, including investors in Switzerland(1.4%), Germany (1.3%) and Norway (1.3%). Shareholders basedin the Asia-Pacific region represented 3.1% of the share capital.

(1) Including Kering's employee investment fund.

2.4 Stock market information
Kering share
Place of listing
MarketInitial public offering
Main indices

Number of shares
Codes

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Euronext ParisEurolist A
October 25, 1988 (Second Market)
CAC 40 (since February 9, 1995)
Euro Stoxx 50 (since September 24, 2018)
CAC 40 ESG (since March 22, 2021)
123,420,778 as of December 31, 2023
ISIN: FR0000121485 Reuters ticker: PRTP.PA Bloomberg ticker: KER:FP

Investor information
Share ownership structure

2.5 The Kering share
Change in the price of the Kering share compared to the CAC 40 index (rebased)from January 1, 2023 to February 29, 2024
In euros

As of December 29, 2023

650

600

+16.5%
550

500

450

400

350

Kering
CAC 40 rebased

300

Jan.

Feb.

March

-16.1%
April

May

June

July

August

Sept.

Oct.

Nov.

2023

Dec.

Jan.

Feb.

2024

Market price and Kering share trading volumeHigh(1) (in €)Low(1) (in €)Price(1) as of December 31 (in €)Market capitalization as of December 31(in € millions)
Daily average trading volume(in number of shares)
Number of shares as of December 31

2023

2022

2021

2020

2019

600.0
382.0
399.0

740.8
442.5
475.5

792.1
522.3
706.9

623.5
357.6
594.4

590.7
380.7
585.2

49,24558,99688,14574,31173,899203,287
123,420,778

221,498
124,070,778

187,486
124,692,916

236,062
126,279,322

236,636
126,279,322(1) Closing price.
Source: Euronext.

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Investor information
Share ownership structure

Listed securities of the Group as of March 19, 2024
Securities listed on Euronext Paris
Shares (in euros)
Kering
Bonds (in euros)
Kering 0.75% May 2028
Kering 1.25% May 2025
Kering 1.875% May 2030
Kering 3.25% February 2029
Kering 3.375% February 2033
Kering 3.75% September 2025
Kering 3.625% September 2027
Kering 3.625% September 2031
Kering 3.875% September 2035
Kering 3,375% March 2032
Kering 3,625% March 2036
Bonds (in dollars)
Kering 3.639% May 2027

ISIN code
FR0000121485
FR0013512407
FR001400A5N5FR001400A5M7FR001400G3Y1FR001400G412
FR001400KI02
FR001400KHZ0FR001400KHW7FR001400KHX5FR001400OM10FR001400OM28
FR001400AKX0

Bonds (in pounds)
Kering 5.125% November 2026
Kering 5.000% November 2032

FR001400M6M1FR001400M6N9

Securities listed on the Luxembourg Stock Exchange
Bonds (in euros)
Kering 2.75% April 2024
Kering 1.60% April 2035
Kering 1.25% May 2026
Kering 1.50% April 2027

ISIN code
FR0011832039
FR0012669257
FR0013165677
FR0013248721

Stock market data
Kering share
Share price (in €)2022
January
February
March
April
May
June
July
AugustSeptember
OctoberNovember
DecemberAverage(1)
683.9
644.8
580.3
538.1
467.4
502.9
513.0
546.2
494.2
459.4
529.4
506.4

High(2)
740.8
693.2
637.6
585.8
511.3
531.6
564.6
571.3
540.4
483.5
571.8
574.9

(1) Closing price.
(2) Intraday price.
Source: Euronext.

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Low(2)
632.1
594.7
523.8
497.0
432.8
476.9
474.5
503.0
446.4
427.6
464.6
464.4

VolumeShares traded
Monthly
Daily averagechange (in number of shares) in € millions-7.2%
197,0172,830-2.9%
229,056
2,948-9.6%
266,3633,556-10.9%
248,595
2,530-0.7%
260,6102,698-3.8%
260,1482,903+13.6%
190,336
2,047-9.7%
135,986
1,704-8.8%
211,199
2,297+1.1%
213,197
2,060+22.4%
212,4642,475-16.2%
237,028
2,553

Numberof shares
4,137,361
4,581,116
6,126,338
4,723,314
5,733,413
5,723,256
3,997,062
3,127,686
4,646,374
4,477,128
4,674,218
4,977,593

Investor information
Share ownership structure

Share price (in €)VolumeShares traded
Monthly
Daily averagechange (in number of shares) in € millions+20.0%
212,7282,509-2.7%
254,837
2,936

Numberof shares
4,680,015
5,096,739

Average(1)
537.0
575.3

High(2)
571.8
601.1

Low(2)
478.1
534.5

March
April

571.1
573.4

603.6
602.6

535.5
549.8

+8.1%
-3.4%

222,920
197,873

2,909
2,032

5,127,152
3,561,722

May
June

538.7
508.5

577.9
532.2

495.9
488.5

-14.0%+1.5%

171,818
187,803

2,037
2,114

3,779,996
4,131,675

July
August

509.5
505.7

546.8
533.9

474.1
485.8

+3.6%
-5.6%

192,716
134,297

2,074
1,568

4,047,028
3,088,829

September
October

458.6
409.3

498.4
437.6

423.0
379.3

-12.6%-11.3%

220,687
221,861

2,136
2,034

4,634,424
4,880,942

November
December

400.2
405.6

421.1
430.1

376.7
390.6

+2.7%
+1.3%

196,918
235,651

1,737
1,856

4,332,202
4,477,365

2023
January
February(1) Closing price.
(2) Intraday price.
Source: Euronext

Share price (in €)2024
January
February

Average(1)
371.4
413.9

High(2)
401.3
438.5

Low(2)
343.4
376.4

VolumeShares traded
NumberMonthly
Daily average in € millionsof shareschange (in number of shares)-3.9%
231,760
1,897
5,098,725+10.9%
230,930
2,007
4,849,527(1) Closing price.
(2) Intraday price.
Source: Euronext.

2.6 Financial communications policy and relations
with our stakeholders
Kering’s Financial Communications Department is committed todisseminating accurate, precise and reliable information. Its
actions are targeted and customized to offer different audiences– private individual shareholders and the financial community –messages suited to their respective expectations while complying
with the principle of equal access to information. Kering also
places considerable importance on maintaining a dialog with andearning even greater trust from its shareholders, both
institutional and individual. It provides transparent information
to them on a regular basis about the Company’s latest
developments by holding meetings throughout the year –particularly with institutional investors – and making sure that it
answers any questions and responds to any comments they may
have.

Toward individual shareholders

Toward the financial community
The Group maintains close relationships with the European andinternational financial community in three main ways:• dialog regarding financial performance and strategy: thehead of investor relations and her team, overseen by the
Chairman and Chief Executive Officer, Deputy CEO,Operations and Finance and the Chief Financial Officer,organize meetings with analysts and the main institutional
investors in relation to the publication of annual and halfyear financial results and quarterly revenue figures. As well as
these periodic events, the Group proactively organizes
individual and group meetings with the financial community
as part of financial roadshows in Europe and around theworld. Kering also takes part in numerous sector conferences
organized by major banks;

Private individual shareholders have access to various media andtools to keep themselves informed about the Group and eventsaffecting its shares. These include the twice-yearly Letter toShareholders, the Shareholders’ Guide (available online, in
French only), the shareholders’ hotline (+33 (0)1 45 64 65 64) andemail address (actionnaire@kering.com), financial notices in thepress and online, the Group’s website, and the annual report.

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Investor information
Share ownership structure• dialog regarding non-financial performance: at a time ofincreasing expectations among investors and otherstakeholders regarding environmental, social andgovernance (ESG) commitments, the Investor Relations
Department regularly discusses these subjects with analysts
and investors in meetings and in conferences focusing on ESG
matters. The Group's Chief Sustainability and Institutional
Affairs Officer also takes part in the ESG roadshow held every
November and attended by significant institutional investors,
during which she presents details of the Group roadmap, theresources deployed by the Group and its achievements,
particularly in terms of its climate ambitions and biodiversity
policy. For more than 10 years, the Group has reported
annually to shareholders in the AGM, through its Chief
Sustainability and Institutional Affairs Officer, about its
environmental ambitions and progress. Dedicated teams
within the Sustainability Department regularly interact with
non-financial ratings agencies in relation to their requests
and questionnaires;• dialog regarding governance: this is mainly conducted by the
Lead Independent Director and the Investor Relations
Department under the oversight of the Chairman and Chief
Executive Officer, in tandem with the Board Secretary and theLegal Department. The Chairman and Chief Executive Officer
may also hold discussions with institutional investors onthese matters. In 2023, as it does every year, the Group held
an ESG roadshow in the fourth quarter for major investors in
the Company (representing around 40% of the free float and22.5% of total share capital). The Lead Independent Director,
the Board Secretary, the Chief Sustainability and Institutional
Affairs Officer and the Investor Relations Department took
part in the roadshow. In addition, the Investor Relations
Department, working in tandem with the Board Secretary and2024 shareholders’ agenda
April 23, 2024 (after market close)
April 25, 2024
July 24, 2024 (after market close)
October 2024(1)(1) The specific date will be posted on Kering.com.

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the Legal Department, holds meetings with the Group’s main
institutional investors every year ahead of the Annual General
Meeting to explain the resolutions to be submitted toshareholders for their approval.
All of the presentation material shared with institutional
investors is available on the Kering website.

Procedures for communicating
regulatory information
Pursuant to obligations – applicable since January 20, 2007 – todisclose regulatory information resulting from theimplementation of the Transparency Directive in the AMF’s
General Regulations, Kering’s Financial Communications
Department oversees the proper and full disclosure of regulatory
information. This information is filed with the AMF at the time ofits disclosure and stored on the Kering website.
Full and effective communication is carried out electronically incompliance with the criteria defined by the AMF’s General
Regulations, which require communication to a wide audience
within the European Union and under conditions guaranteeing
the security of the communication and information. Accordingly,
Kering’s Financial Communications Department has chosen towork with a professional communications agency satisfying thecommunication criteria set by EU Regulation no. 596/2014 on
market abuse and the AMF’s General Regulations. The
communications agency is included on the list published by theAMF, thus benefiting from a presumption of full and effective
communication.

First-quarter revenue
Annual General MeetingFirst-half results
Third-quarter revenue

CHAPTER 8

Additional information
12-

General information
Person responsible for
the Universal Registration
Document
Declaration by the person
responsible for the Universal
Registration Document and for
the Annual Financial Report
Statutory Auditors

33.1 Principal Statutory Auditors
3.2 Substitute Statutory Auditors

432
434

4-

Documents incorporated
by reference

55.1
5.2
5.3

Cross-reference table
Universal Registration Document
Annual Financial ReportManagement Report

435
435
436
439
439

434

434
434
435

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Additional information
General information

1 - GENERAL INFORMATION
Company name, registered office
and website
Company name: Kering
Registered office: 40, rue de Sèvres, 75007 Paris, France
Contact: +33 (0) 1 45 64 61 00
Website: www.kering.com

Legal form
A French corporation (société anonyme).

Applicable law
French law.

Date of incorporation and term
Kering SA was incorporated on June 24, 1881 for a term of
99 years. The term was extended to May 26, 2066 at theExtraordinary General Meeting held on May 26, 1967, except in
the case of an early dissolution or of an extension approved at
the Extraordinary General Meeting.

Company registration
Registered with the Paris Trade and Companies Registry under
number 552 075 020.
APE code: 7010Z.
LEI: 549300VGEJKB7SVUZR78.

Documents available to the public
Kering's Articles of Association are available on the Company’s
website: www.kering.com. Other legal documents pertaining to
the Company may be consulted upon appointment in printversion during business hours at the Company’s registered office.
The Universal Registration Document filed by Kering with theAutorité des marchés financiers (the French financial markets
authority), the Company’s press releases, as well as the annual
and interim reports, the parent company and consolidated
financial statements and the regulated information may beconsulted on the Company’s website at the following address:www.kering.com.

Fiscal year
The Company’s fiscal year begins on January 1 and ends on
December 31 of the same year.

Corporate purpose

Appropriation of earnings• The Company's corporate purpose is: the purchase, retail saleor wholesale, either directly or indirectly, by all means andusing all existing or future techniques, of all goods, products,
commodities or services;• the creation, acquisition, leasing, operating or sale, either
directly or indirectly, of all establishments, stores or
warehouses, by all means and using all existing or futuretechniques, for the retail sale or wholesale of all goods,
products, commodities or services;• the direct or indirect manufacture of all goods, products orcommodities that are useful for corporate operations;• the direct or indirect supply of all services;• the purchase, operation and sale of all buildings that are
useful for corporate operations;• the creation of all commercial, non-trading, industrial andfinancial concerns, whether in moveable or real property,
service businesses or otherwise, the acquisition ofparticipating interests by all means, the subscription,acquisition, contribution, merger or otherwise of suchconcerns and the management of its participating interests;• and, in general, all commercial, non-trading, industrial andfinancial operations, whether in moveable or real property,
service or other businesses that can be directly or indirectly
connected to the purposes specified above or to all similar,
complementary or related purposes or purposes that are
liable to favor the creation or development thereof.
(article 5 of the Articles of Association)

From the profit for the fiscal year, less deferred losses whereapplicable, a minimum withdrawal of one twentieth is made andpaid into a reserve fund known as the "legal reserve". Said
withdrawal ceases to be mandatory once said reserve reaches
one tenth of the share capital.
From the distributable profit, which is made up of the profit for
the fiscal year less deferred losses and the withdrawal referred toabove, as well as the amounts to be paid into the reserves inaccordance with the law, plus deferred profits, the Annual
General Meeting, pursuant to a proposal by the Board of
Directors, may withdraw all amounts it deems appropriate, either
to be deferred to the subsequent fiscal year, or to be entered into
one or more extraordinary, general or special reserve funds, theallocation and use of which is determined by the Annual General
Meeting.
The balance, if any, is allocated among the shareholders.
The Annual General Meeting that votes on the financial
statements for the fiscal year has the option of granting eachshareholder, for all or part of the dividend or interim dividend
distributed, an option between payment of the dividend or theinterim dividend in cash, in kind or in shares. The Annual General
Meeting may also decide, for all or part of the dividend, interim
dividends, reserves, or premiums distributed, or for any capital
reduction, that the distribution of dividends, reserves or
premiums or the capital reduction will be made in kind in theform of corporate assets, including securities.
(article 21 of the Articles of Association)
Dividends not claimed after five years are paid to the French
State.
Dividends paid over the last three fiscal years are presented in theManagement Report.

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Additional information
General information

Administrative and management bodies
Information regarding administrative and management bodies ispresented in chapter 3, "Report on corporate governance".

Annual General Meetings – Double voting
rightsAnnual General Meetings are convened by the Board of Directors
and deliberate on their agenda under the conditions provided forby law and the regulations.

The double voting right existed at both Pinault SA and Printemps
SA prior to their 1992 merger. The Company’s Articles of
Association do not provide that, in the event of a free allocationof registered shares to a shareholder in respect of old shares forwhich he/she/it had a double voting right, the new shares arealso entitled to a double voting right.
Pursuant to the relevant legislation, double voting rights arecanceled for any share converted to a bearer share or in the eventof a transfer of ownership except in the case of a transfer
following inheritance, liquidation of joint property between
spouses, or donation between living family members (spouse or
relative) with legal inheritance rights.

Meetings are held at the registered office or in any other place
specified in the convening notice.

Voting rights are not limited under the Articles of Association.

All shareholders may attend meetings, either in person or via a
proxy, under the conditions laid down by law, subject toproviding proof of their identity and of the title to their securities,
by the recognition of said securities in the accounts in their namewithin the regulatory timeframes, either in the accounts ofregistered securities held by the Company, or in the accounts ofbearer securities held by an accredited intermediary. Proof of ashareholder's capacity can be provided electronically, under theconditions set by the regulations in force. Pursuant to a decisionof the Board of Directors, shareholders may participate inmeetings via videoconference or via telecommunications meansthat make it possible to identify them under the conditions laid
down by the regulations in force. All shareholders may vote bycorrespondence using a form filled out and sent to the Company
under the conditions laid down by the regulations in force,
including electronically, pursuant to a decision by the Board of
Directors. This form must reach the Company in accordance withthe regulatory conditions in order to be taken into account. The
Board of Directors may reduce said timeframe for the benefit of
all shareholders. Owners of securities who are not resident on
French territory may be represented by an intermediary who isregistered in accordance with the conditions laid down by theregulations in force.

Provisions of the Articles of Association
relating to shareholder notifications

Meetings are chaired by the Chairman of the Board of Directors
or, in his/her absence, by the member of the Board who is
specifically appointed for this purpose by the Board. Failing this,the meeting elects its own chair.
Meeting minutes are prepared and copies thereof are certified
and issued in accordance with the law.
In all Annual General Meetings, a voting right that is double theright conferred on the other shares is granted to all shares thatare fully paid up and for which proof is provided that they havebeen held in registered form for at least two years in the name ofthe same shareholder. This double voting right, which existed in
the Articles of Association of Pinault SA prior to its merger with
Printemps SA, was restated at the time of their 1992 merger.
This double voting right may be withdrawn outright at any time
pursuant to a decision of the Extraordinary General Meeting andafter ratification by a special meeting of the beneficiaryshareholders.
(article 19 of the Articles of Association)

The shares shall be in registered or bearer form at theshareholder’s discretion. The shares shall be entered into an
account under the conditions and in accordance with the terms
provided for by the regulations in force.
The Company is authorized to use the provisions of the law andregulations regarding the identification of the holders of
securities that grant immediate or deferred access to voting
rights at its own Annual General Meetings.
In addition to the legal obligations to notify the Company and theFrench financial markets authority (Autorité des marchés
financiers – AMF) when shareholdings reach or fall below a given
threshold, any individual or legal entity directly or indirectly
holding shares in the Company, whether acting alone or inconcert, shall notify the Company of the total number of sharesand voting rights held if said number reaches or exceeds 2% or
any multiple thereof, including multiples exceeding the legal
threshold of 5%. Notifications shall be made by registered letterwith return receipt sent to the registered office no later than 15days after the date on which the threshold was crossed orreached, or by any other equivalent means for shareholders notresiding in France, it being specified that the contents of thenotification must comply with the legal and regulatory provisions
applicable to shareholder notifications concerning legal
thresholds, and must include the information to be provided insuch circumstances to the AMF, as stated in its General
Regulations. The same notification obligation shall apply under
the same conditions when a shareholder’s total shares and/or
voting rights reach or fall below any of the aforementioned
thresholds.
If the notification is not submitted, the shares exceeding thethreshold for which the notification should have been made may
be deprived of voting rights at the request of one or moreshareholders holding a combined or individual total of at least
5% of the Company’s share capital and/or voting rights, under
the conditions set forth in the sixth paragraph of article L. 233-7of the French Commercial Code. If the notification issubsequently made, the corresponding voting rights may not be
exercised until the period of time defined by law or the prevailingregulations has expired.
(article 7 of the Articles of Association)
There are no shares not representing capital.
The steps required to amend shareholder rights are those
provided for by law.

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Additional information
Person responsible for the Universal Registration Document

Share capital
The Company is authorized to use the provisions of the law andregulations regarding the identification of the holders of
securities that grant immediate or deferred access to voting
rights at its own Annual General Meetings.
(article 7 of the Articles of Association)
In addition to the voting right that is granted to each share by thelaw and by the specific provisions of article 20 below, each share
grants the right to a percentage, which is proportional to thenumber and par value of the existing shares, of the corporate
assets, the profit after deduction of the deductions provided forby law and the Articles of Association, or of the liquidating
dividend.
Each time it is necessary to possess more than one share in order
to exercise a right, it is the responsibility of the owners who do
not possess such number to make arrangements in order topossess the required number of shares.

(article 8 of the Articles of Association)
In the event of liquidation of the Company, the remaining
shareholders’ equity after repayment of the par value of theshares will be allocated among the shareholders in the same
proportions as their holdings in the capital.
(article 23 of the Articles of Association)
Any changes in the share capital or the rights attached to sharesare governed by the legal requirements and the specificprovisions of the Articles of Association as set out below.
Under article 15 of the Articles of Association, in the Company’s
internal organization, decisions by the Chief Executive Officer and
the Group Managing Director relating to the issue of securities,
regardless of their nature, require the prior approval by the Boardof Directors when such issues are likely to change the sharecapital, except in the event of a decision by the Annual General
Meeting.

2 - PERSON RESPONSIBLE FOR THE UNIVERSALREGISTRATION DOCUMENT
Declaration by the person responsible for the Universal Registration
Document and for the Annual Financial Report
I hereby attest that the information in this Universal Registration Document is, to my knowledge, in accordance with the facts andcontains no omission likely to affect its import.
I certify that, to my knowledge, the annual consolidated and parent company financial statements of Kering SA for the year ended
December 31, 2023 have been prepared in accordance with applicable accounting standards and give a true and fair view of the assets,
liabilities, financial position and results of the Company and the undertakings included in the consolidation, and that the Management
Report (the cross-reference table for which is provided in section 5.3 of chapter 8 in this Universal Registration Document) includes a fairreview of the development of the business, the results of operations and the financial position of the Company and of all theundertakings included in the consolidation, and also describes the main risks and uncertainties to which they are exposed.
Paris, March 19, 2024
François-Henri Pinault
Chairman and Chief Executive Officer

3 - STATUTORY AUDITORS
3.1 Principal Statutory Auditors
PricewaterhouseCoopers Audit

Deloitte & Associés

63, rue de Villiers, 92208 Neuilly-sur-Seine

6, Place de la Pyramide, 92908 Paris-La Défense Cedex, France

Camille Phelizon and Patrice Morot

David Dupont-Noel and Bénédicte Margerin

Date of first appointment: Annual General Meeting of April 28,
2022.

Date of first appointment: Annual General Meeting of May 18,
1994.

Appointment, term and expiry: appointed at the Combined
General Meeting of April 28, 2022 for six years until the Annual
General Meeting called to approve the 2027 financial statements.

Reappointment, term and expiry: reappointed at the Combined
General Meeting of June 16, 2020 for six years until the Annual
General Meeting called to approve the 2025 financial statements.

— 434

KERING - 2023 Universal Registration Document

Additional information
Cross-reference table

3.2 Substitute Statutory Auditors
Emmanuel Benoist

BEAS

63, rue de Villiers, 92208 Neuilly-sur-Seine

6, Place de la Pyramide, 92908 Paris-La Défense Cedex, France

Date of first appointment: Annual General Meeting of April 28,
2022.

Date of first appointment: Annual General Meeting of May 19,
2005.

Appointment, term and expiry: appointed at the Combined
General Meeting of April 28, 2022 for six years until the Annual
General Meeting called to approve the 2027 financial statements.

Reappointment, term and expiry: reappointed at the Combined
General Meeting of June 16, 2020 for six years until the Annual
General Meeting called to approve the 2025 financial statements.

4 - DOCUMENTS INCORPORATED BY REFERENCE
In accordance with article 19 of Regulation (EU) 2017/1129 ofJune 14, 2017, this Universal Registration Document
incorporates by reference the following information, to which
the reader is invited to refer:• for the fiscal year ended December 31, 2022: key figures,
activities of the Group, activity report, investment policy,
consolidated financial statements, Kering SA financial
statements and the related Statutory Auditors’ reports, set
out on pages 11 to 15, 32 to 57, 63 to 90, 88 and 89, 338 to 399,
404 to 420, 400 to 403, 421 to 424 of the Universal Registration
Document filed on March 22, 2023 with the French financial
markets authority (Autorité des marchés financiers – AMF);• for the fiscal year ended December 31, 2021: key figures,
activities of the Group, activity report, investment policy,

consolidated financial statements, Kering SA financial
statements and the related Statutory Auditors’ reports, set
out on pages 11 to 14, 28 to 56, 63 to 93, 92 and 93, 334 to 398,
404 to 421, 399 to 403, 422 to 425 of the Universal Registration
Document filed on March 28, 2022 with the French financial
markets authority (Autorité des marchés financiers – AMF).
Information included in these two documents other than that
listed above is, where relevant, replaced or updated by the
information included in this Universal Registration Document.
These two documents are available at the Group’s registeredoffice and on its website, www.kering.com, under the Financesection.

5 - CROSS-REFERENCE TABLE
To facilitate the reading of this document, the tables below
cross-reference:• the main headings required under Annexes 1 and 2 ofCommission Delegated Regulation (EU) 2019/980 of March 14,
2019 supplementing Regulation (EU) 2017/1129 of June 14,2017;• the main disclosures required in the Annual Financial Reportas provided for in article L.451-1-2 of the French Monetaryand Financial Code (Code monétaire et financier) andarticle 222-3 of the AMF General Regulations (Règlement
général);• the main disclosures required in the Management Report asprovided for in article L.232-1 of the French Commercial Code
(Code de commerce), including:– the report on corporate governance as provided for inarticle L.225-37 paragraph 6 of the French Commercial
Code,– the Non-Financial Information Statement (NFIS) as
provided for in Articles L.225-102-1 and R.225-105, I of theFrench Commercial Code.

Consequently, in accordance with AMF recommendation DOC-2021-02, this Universal Registration Document is a combined "three-inone" document, containing all of the disclosures required in the above-mentioned documents:
Document
Universal Registration
Document

Reference texts
Annexes 1 and 2 of Commission Delegated Regulation (EU) 2019/980 of March 14,
2019 supplementing Regulation (EU) 2017/1129 of June 14, 2017

Page(s)436-438

Annual Financial Report

Article L.451-1-2 of the French Monetary and Financial Code
Article 222-3 of the AMF General Regulations

Management Report

Articles L.225-100, L.232-1 et seq. and R. 225-102 et seq. of the French Commercial
Code, articles 223 quater and 223 quinquies of the French Tax Code439-440

Report on corporate
governance

Article L.225-37 paragraph 6 of the French Commercial Code439-440

Non-Financial Information
Statement

Articles L.225-102-1 and R. 225-105 et seq. of the French Commercial Code272-274439

KERING - 2023 Universal Registration Document

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Additional information
Cross-reference table

5.1 Universal Registration Document
Cross-reference table for the Universal Registration Document – Annexes 1 and 2 of Commission
Delegated Regulation (EU) 2019/980 of March 14, 2019 supplementing Regulation (EU) 2017/1129
of June 14, 2017
1.
Persons responsible
1.1 Names and functions of all persons responsible
1.2 Declaration by the person responsible
1.3 Statement or report attributed to a person acting as an expert
1.4 Information sourced from third parties
1.5 Approval statement of the competent authority
2.
Statutory Auditors
2.1 Names and addresses of the Statutory Auditors
2.2 Resigned, removed or not reappointed
3.
Risk factors
4.
4.1
4.2
4.3
4.4

Information about Kering
Legal and commercial name of the Company
Place of registration, registration number and legal entity identifier
Date of incorporation and duration
Domicile and legal form, applicable legislation, country of incorporation, address, telephone number
and website

5.
5.1

Business overview
Principal activities
5.1.1 Nature of operations and principal activities
5.1.2 Significant new products and/or services introduced
Principal markets
Important events in the development of the issuer’s business
Strategy and objectives of the issuer
Dependency of the issuer on patents or licenses, industrial, commercial or financial contracts or new
manufacturing processes

5.2
5.3
5.4
5.5
5.6
5.7

6.
6.1
6.2
7.
7.1

7.2

— 436

Competitive position
Investments
5.7.1 Principal investments made by the Company for each fiscal year for the period coveredby the historical financial information

Page(s)
434
434
N/A
N/A
1
434-435
N/A
181-182, 291-312,
355-359

432
432
432
432

10-15, 24, 37-57
42-57
13, 28-29, 37-57
8-9, 16, 63-87
25-36, 63-87, 182-185
N/A
25-41, 42-57
42-57, 79-87, 89-90,
258-259

5.7.2

Principal investments in progress, the geographic distribution of these investments (France
and abroad) and the method of financing (internal or external)

68, 89-90, 336,
353-355, 364-366

5.7.3

Information relating to joint ventures and undertakings in which the issuer holds
a proportion of the capital likely to have a significant effect on the assessment of its own
assets and liabilities, financial position or profits and losses

349, 380-391, 410

5.7.4 Environmental issues that may affect the utilization of tangible fixed assets
Organizational structure
Brief description of the Group
List of significant subsidiaries
Operating and financial review
Financial position
7.1.1 Development and performance of the issuer’s business7.1.2 Likely future development and activities in the field of R&D
Operating results
7.2.1 Significant factors
7.2.2 Material changes in net sales or revenues

KERING - 2023 Universal Registration Document219, 220-223, 225-227
8-15, 25-36, 42-57
24

11-15, 42-57, 66-87
88, 251-253
16, 64-65
69-87

Additional information
Cross-reference table

Cross-reference table for the Universal Registration Document – Annexes 1 and 2 of Commission
Delegated Regulation (EU) 2019/980 of March 14, 2019 supplementing Regulation (EU) 2017/1129
of June 14, 20178.
Capital resources
8.1 Information concerning the Company’s capital resources (both short and long-term)
8.2
8.3

Sources and amounts of the Company’s cash flows
Information on the borrowing terms and the funding structure of the Company

8.4

Information regarding any restrictions on the use of capital resources that have materially affected,
or could materially affect, directly or indirectly, the Company’s operations

8.5

Information regarding the anticipated sources of funds

9.

Regulatory environment

Page(s)74-75, 331-332,
351-355
76-78,332, 364-366
74-78, 307, 353-359
353-359
332, 353-359, 364-366
92, 188-190, 193,
272-274, 282, 308,
312, 328, 369

10. Trend information
10.1 The most significant recent trends in production, sales and inventory, and costs and selling prices
since the end of the last fiscal year, and the significant change in the issuer’s financial or trading
position

37-41, 64-65

10.2 Known trends, uncertainties, demands, commitments or events that are reasonably likely to havematerial effect on the issuer’s prospects

64-65, 88

11. Profit forecast or estimates
11.1 Statement on the correctness of a profit forecast or estimate which has been published and is still
outstanding

N/A(1)
N/A

11.2 Principal hypothesis underlying the profit forecast or estimate
11.3 Statement on the preparation of the profit forecast or estimate
12. Administrative, management and supervisory bodies and senior management
12.1 Members of the administrative, management or supervisory bodies
12.2 Administrative, management and supervisory bodies and senior management conflicts of interest
13. Remuneration and benefits
13.1 Remuneration and benefits in kind granted to corporate officers
13.2 Total amounts set aside or accrued to provide for pension, retirement or similar benefits
14. Board practices
14.1 Date of expiration of current terms of office14.2 Members of the administrative, management or supervisory bodies’ service contracts
14.3 Information about the Company’s Audit Committee and Remuneration Committee
14.4 Statement of compliance with corporate governance regimes applicable in France
14.5 Potential material impacts on corporate governance
15. Employees
15.1 Number of employees
15.2 Shareholdings and stock options
15.3 Arrangements for involving the employees in the capital of the Company
16. Major shareholders
16.1 Shareholders owning more than 5% of the share capital or voting rights
16.2 Existence of different voting rights
16.3 Control of the Company
16.4 Any arrangements, known to the Company, the operation of which may at a subsequent date resultin a change in its control
17.

Related party transactions

N/A
N/A
18-20, 22-23, 98-115,
142
122-124, 142-143
144-176360-362, 367
98143, 367, 417-418
135-138
92, 141
116-119
196-198, 337
99-115421-422424-426424-426, 433
142,424-426
N/A88, 143, 367, 409

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Additional information
Cross-reference table

Cross-reference table for the Universal Registration Document – Annexes 1 and 2 of Commission
Delegated Regulation (EU) 2019/980 of March 14, 2019 supplementing Regulation (EU) 2017/1129
of June 14, 201718. Financial information concerning the issuer’s assets and liabilities, financial position and profits
and losses

Page(s)18.1 Historical financial information
18.1.1 Audited historical financial information and audit report
18.1.2 Change of accounting reference date328-416
N/A

18.1.3 Accounting standards
18.1.4 Change of accounting framework

334, 369-371, 399
N/A

18.1.5 Financial statements
18.1.6 Consolidated financial statements

396-412328-391

18.1.7 Date of latest financial information
18.2 Interim and other financial information

334, 410
N/A(2)

18.3 Auditing of historical annual financial information
18.3.1 Statement that the historical financial information has been audited
18.3.2 Other information audited by the Statutory Auditors
18.3.3 Source of financial data not extracted from the issuer’s audited financial statements
18.4 Pro forma financial information
18.5 Dividend policy
18.6 Legal and arbitration proceedings
18.7 Significant change in the Company’s financial position
19. Additional information
19.1 Inventories
19.1.1 Amount of issued capital
19.1.2 Shares not representing capital
19.1.3 Shares held by the Company, on its behalf or by subsidiaries

N/A
N/A
12, 15, 77, 352, 423
304-306, 363
N/A

420
N/A
75, 331, 332, 351-352,
378, 402, 420

19.1.4 Amount of any convertible securities, exchangeable securities or securities with warrants
19.1.5 Information about the terms of any acquisition rights and/or any obligations over capitalissued but not paid-up or an undertaking to increase the capital

N/A
N/A

19.1.6 Information about the capital of any member of the Group which is under option or agreed
conditionally or unconditionally to be put under option

349

19.1.7 History of share capital
19.2 Memorandum and Articles of Association
19.2.1 Issuer’s objects
19.2.2 Rights, preferences and restrictions attached to each class of existing shares
19.2.3 Provision of the articles of association or other provision that would have an effect ofdelaying, deferring or preventing a change in control
20.
21.

392-395, 413-416
276-278, 279-280,
417-418

Material contracts
Documents available

420432
432-434142
N/A(3)
429, 432, 435(1) This Universal Registration Document does not include any profit forecasts.
(2) No quarterly financial statements have been published between the closing of the annual financial statements and the publication of the
Universal Registration Document.
(3) Not material.

— 438

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Additional information
Cross-reference table

5.2 Annual Financial Report
Cross-reference table for the Annual Financial Report – Article L. 451-1-2 of the French Monetaryand Financial Code and Article 222-3 of the AMF General Regulations
Kering SA parent company financial statements
Kering group consolidated financial statements
Management ReportStatement by the person responsible for the Annual Financial Report
Statutory Auditors’ report on the financial statements
Statutory Auditors’ report on the consolidated financial statements
Board of Directors’ report on corporate governance

Page(s)396-412328-391439-440434
413-416392-395
91-176

5.3 Management Report
Cross-reference table for the Management Report – Articles L. 225-100 et seq.
of the French Commercial Code1.
Group position and activity
1.1 Position of the Company over the past fiscal year and objective, in-depth analysis of changes inthe business, results of operations and financial position of the Company and the Group, notably
as regards debt, and the volume and complexity of the business
1.2

Key financial performance indicators

1.3

Key non-financial performance indicators specifically related to the business of the Company
and the Group, notably information concerning environmental and labor relations matters

1.4

Significant events between the fiscal year-end and the preparation date of the Management Report

1.5

Identity of the main shareholders and holders of voting rights at general meetings; changes over the fiscal
year

1.6

Details of any existing branches

1.7

Acquisition during the year of significant shareholdings in companies with registered offices in France

1.8

Transfers of cross-holdings

Page(s)
63-89

11-15, 63-89
182-18568
17, 424380-391, 410

1.9 Planned development of the Company and the Group and outlook
1.10 Research and development activities

16, 67, 334, 344,
380
N/A
31-41, 64-65, 88
88, 251-253

1.11 Five-year financial summary
1.12 Details of payment terms for trade payables and trade receivables
1.13 Amount of intercompany loans granted; Statutory Auditors’ statement on intercompany loans
2.
Internal control and risk management
2.1 Description of main risks and uncertainties to which the Company is exposed
2.2 Details of the financial risks associated with the effects of climate change and presentation of measurestaken to mitigate these risks by implementing a low-carbon strategy across all aspects of the business
2.3

Main features of the internal control and risk management procedures put in place by the Company and
the Group relating to the preparation and processing of accounting and financial information

2.4

Details of hedging objectives and policy for each main transaction category and of exposure to price,
credit, liquidity and treasury risks, including the use of financial instruments

412
411
N/A
291-312225-230, 311,
370
135-137, 282-290
307, 355-359

2.5 Anti-corruption measures
189-190, 297-298
2.6 Duty of care plan and report on its implementation
314-326
3.
Report on corporate governance
Information relating to remuneration
3.1 Remuneration policy with regard to corporate officers
144-153
3.2 Total remuneration and benefits in kind paid during or awarded for the fiscal year to each corporate officer
153-176
3.3 Proportions of fixed and variable remuneration
147
3.4 Use of clawback clauses
N/A

KERING - 2023 Universal Registration Document

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Additional information
Cross-reference table

Cross-reference table for the Management Report – Articles L. 225-100 et seq.
of the French Commercial Code
3.5 Commitments of any kind entered into by the Company in favor of its corporate officers corresponding
to components of remuneration, indemnities or benefits payable or potentially payable on accountof the commencement, termination or change of his/her duties or subsequent thereto

Page(s)151

3.6

Remuneration paid or awarded by any companies included in the scope of consolidation
within the meaning of Article L. 233-16 of the French Commercial Code154-155

3.7

Ratios between the level of remuneration of each executive corporate officer and the average and median
remuneration of Company employees

171-173

3.8

Annual changes to remuneration, the Company’s performance, the average remuneration of Company
employees and the above-mentioned ratios over the last five years

171-173

3.9

Explanation of the way in which total remuneration complies with the remuneration policy adopted,
including how it contributes to the Company’s long-term performance and how performance criteria havebeen applied

144-153

3.10 Way in which the results of voting at the last Ordinary General Meeting have been taken into accountpursuant Article L. 22-10-34 of the French Commercial Code145-146

3.11 Divergences from the procedure for implementing the remuneration policy and any exceptions

N/A

3.12 Application of the provisions of the second paragraph of Article L. 225-45 of the French Commercial Code(suspension of the payment of Directors’ remuneration in the event of non-compliance with the diversity
rules for Boards of Directors)

N/A

3.13 Award to and holding of options by corporate officers
3.14 Award to and holding of free shares by executive corporate officers

Information relating to governance3.15 List of positions held and duties performed by each corporate officer in all companies during the fiscal year
3.16 Agreements entered into with management executives or significant shareholders and a subsidiary
3.17 Summary table showing the authorizations currently in force to increase the share capital
3.18 Company’s management structure
3.19 Composition, conditions of preparation and organization of the Board’s work
3.20 Application of the principle of balanced representation of women and men on the Board
3.21 Limitations, if any, set by the Board on the powers of the Chief Executive Officer
3.22 Reference to a code of corporate governance and application of the "comply or explain" principle
3.23 Conditions for the attendance of shareholders at Annual General Meetings
3.24 Procedure for assessing agreements entered into in the ordinary course of business and at arm’s length
conditions; implementation of procedure
3.25 Information likely to have an impact in the event of a public offer or exchange offer
4.
Share ownership structure and share capital
4.1 Share ownership structure, changes to share capital and shareholder notifications
4.2 Trading by the Company in its own shares
4.3 Status of employee share ownership at the fiscal year-end (proportion of the share capital)
4.4 Adjustments for the issuance of marketable securities giving access to the share capital in the event ofshare repurchase operations or financial transactions
4.5

Information on trading in the Company’s securities by management executives and persons related to
them

4.6

Dividends paid during the last three fiscal years

5.
Non-financial information statement (NFIS)
The cross-reference table for the NFIS is presented on page
6.
INCOME TAXES
6.1 Additional fiscal disclosures
6.2 Details of any injunctions or penalties for anti-trust practices— 440

KERING - 2023 Universal Registration Document

N/A
149-151,
153-154,
163-167, 367
99-115
N/A
421
22-23, 92-96
98-14020, 120-122,
93
92, 141
141, 433
127
142
424-426351-352,402,420
422, 424
N/A
143
11, 12, 15, 352,423
272-274
308
N/A

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KERING - 2023 Universal Registration Document

443 —Kering
Société anonyme (a French corporation) with a share capital of €493,683,112
Registered office: 40, rue de Sèvres – 75007 Paris
Registered with the Paris Trade and Companies Registry under number 552 075 020
Tél.: +33 (0)1 45 64 61 00
kering.com

This document was produced by an "Imprim’Vert" eco-responsible printing company on FSC-certified paper for the cover pages
and PEFC-certified paper for the inside pages, made using wood from sustainably managed forests.
Design and production: Ruban Blanc.
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