Kering: implementation of the 2nd tranche of the own share buyback program – 02/22/2022 at 18:03


(AOF) – As part of the share buyback program announced on August 25 with the objective of buying back up to 2% of its share capital over a period of 24 months, Kering has put in place a new purchase of shares with an investment services provider. As a reminder, between August 25 and November 3, 2021, a first tranche of the program covered 650,000 actions. The new contract corresponds to a second tranche of the program, for a maximum volume of 650,000 shares, i.e. approximately 0.5% of the share capital as of February 15, 2022.

As a reminder, the maximum share purchase price was set at €1,000 under the single resolution adopted by the General Meeting of Shareholders of July 6, 2021.

It is expected that purchases will begin on February 23, 2022 for a period that may last until April 26, 2022 at the latest.

The shares thus repurchased within the framework of this second tranche will be partly intended to be cancelled, neutralizing in particular the non-material dilutive impact induced by the planned implementation of an employee shareholding plan.

The other part of the repurchased shares will also be allocated to compensation plans for group employees in Kering shares. The respective volumes will be stopped at the end of the redemption period.

AOF – LEARN MORE

=/ Key points /=

– Luxury group born in 1963, owner of the brands Bottega Veneta, Gucci and Yves-Saint-Laurent;

– Turnover of €13.1 billion contributed 57% by Gucci, 13% by Yves Saint-Laurent and 9% by Bottega Veneta;

– Luxury “pure player” business model, based on organic growth, the potential of luxury being boosted by the creative autonomy of the Houses, the pooling of support functions and cross-functional expertise (Kering Eyewear, Kering Standards, skills digital);

– Capital controlled at 41.41% (58.20% of voting rights) by the founding family, François-Henri Pinault being Chairman and Chief Executive Officer of the 13-member Board of Directors and Jean-François Palus Deputy Chief Executive Officer;

– Healthy balance sheet, with net debt of €2.2 billion compared to €12 billion in equity at the end of June.

=/ Issues /=

– Innovation strategy on 3 pillars:

– support for the creativity of fashion houses: investment in companies with innovative business models, such as Vestiaire Collective, MIL laboratories for sustainable alternatives in jewelery and textiles, use of blockchain to counter counterfeiting, research on alternatives to animal leather…,

– robustness of logistics infrastructures serving the customer experience: Luce application on product availability, virtual offer based on data, internalization of sites, etc.,

– growth of e-commerce;

– 2025 “Care for the planet” environmental strategy, reported in an environmental income statement:

– use resources in compliance with “planetary limits” and reduce the group’s CO2 emissions by 50%,

– work on the environmental impacts of the supply chain (CO2 emissions, water consumption, air and water pollution, waste production and land use.

– create a “Sustainable Development Index of suppliers” and raise the traceability of animal welfare, use of chemicals,

– promote “sustainable design”,

– create a Materials Innovation Lab (MIL) dedicated to Watches and Jewelry after that of fabrics and textiles,

– complete the compensation of CO2 emissions) for biodiversity;

– Strong operating cash flow –€2.4 billion at the end of June, a record level.

=/ Challenges /=

– Strong dependence on Gucci, 1st revenue contributor and most profitable brand;

– Risks of a decline in sales in China, where the wealthiest citizens will be taxed;

– Impact of the pandemic: 50% rebound in sales and net profit multiplied by 2.6 on 1

er

semester ;

– Continued growth in e-commerce, at 13% of sales;

– Dividend stable at €8.



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