DISCLAIMER. This presentation does not constitute an offer of securities for sale in the United States of America or any other jurisdiction.

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2 DISCLAIMER This presentation does not constitute an offer of securities for sale in the United States of America or any other jurisdiction. Certain information contained in this document may include projections and forecasts. They express objectives based on current assessments and estimates of the Group s executive management which are subject to numerous factors, risks and uncertainties. Consequently, reported figures and assessments may differ significantly from projected figures. The following factors among others set out in the Reference Document (Document de Référence) filed with the French Financial Markets Authority (Autorité des Marchés Financiers - AMF) on March 30th, 2017 which is available on Kering s website at may cause actual figures to differ materially from projected figures: any unfavourable development affecting consumer spending in the activities of the Group in France and abroad, notably for products and services sold by the Luxury Goods and Sport & Lifestyle brands, the events, crises, fears, and resulting costs of complying with environmental, health and safety regulations and all other regulations with which Group companies are required to comply; the competitive situation on each of our markets; exchange rate and other risks related to international activities; risks arising from current or future litigation. Kering gives no commitment to updating and/or revising and/or commenting any projections and forecasts, or their impact on the results and perspectives of the Group, which may be contained in this presentation. The information contained in this document has been selected by the Group s executive management to present YSL brand vision and strategy. This document has not been independently verified. Kering makes no representation or undertaking as to the accuracy or completeness of such information. None of the Kering or any of its affiliates representatives shall bear any liability (in negligence or otherwise) for any loss arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. IN NO WAY DOES KERING ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED IN THIS PRESENTATION. INFORMATION IN THIS PRESENTATION, INCLUDING FORECAST FINANCIAL INFORMATION, SHOULD NOT BE CONSIDERED AS ADVICE OR A RECOMMENDATION TO INVESTORS OR POTENTIAL INVESTORS IN RELATION TO HOLDING, PURCHASING OR SELLING SECURITIES OR OTHER FINANCIAL PRODUCTS OR INSTRUMENTS AND DOES NOT TAKE INTO ACCOUNT YOUR PARTICULAR INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR NEEDS. BEFORE ACTING ON ANY INFORMATION YOU SHOULD CONSIDER THE APPROPRIATENESS OF THE INFORMATION HAVING REGARD TO THESE MATTERS, ANY RELEVANT OFFER DOCUMENT AND IN PARTICULAR, YOU SHOULD SEEK INDEPENDENT FINANCIAL ADVICE. ALL SECURITIES AND FINANCIAL PRODUCT OR INSTRUMENT TRANSACTIONS INVOLVE RISKS, WHICH INCLUDE (AMONG OTHERS) THE RISK OF ADVERSE OR UNANTICIPATED MARKET, FINANCIAL OR POLITICAL DEVELOPMENTS AND, IN INTERNATIONAL TRANSACTIONS, CURRENCY RISK. READERS ARE ADVISED TO REVIEW THE COMPANY'S REFERENCE DOCUMENT AND THE COMPANY'S APPLICABLE AMF FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISION. 2

3 3

4 SAINT LAURENT

5 KEY MILESTONES 5

6 THE FOUNDING FATHER 6

7 2012 REFORM: BRING BACK BRAND CLARITY 7

8 BRAND MINDSET: RIVE GAUCHE ATTITUDE & HAUTE COUTURE SPIRIT In 1966 Yves Saint Laurent decided to offer his couture designs to the street. He found a way to industrialize his couture collections thanks to the great experience of a manufacture based in western France, in Angers. At that time, the difference between couture and ready-to-wear was mainly in fabrication (produced in a factory versus done by hand and adapted to the body fit) rather than a difference of style. His goal was to bring style to the street. 8

9 BRAND MINDSET: RIVE GAUCHE ATTITUDE & HAUTE COUTURE SPIRIT PARIS CITY MAP 1966 FRENCH MAISONS STORE LOCATIONS 9

10 YOUTH: UNDERSTANDING WHAT IS EMERGING 10

11 FEMALE AND MALE PARITY 11

12 FEMALE AND MALE PARITY 12

13 #YSL01: FEMALE AND MALE PARITY & YOUTH SPIRIT 13

14 AUTHENTIC DRESS CODE 14

15 LE SMOKING 15

16 THE SAHARIENNE 16

17 THE SAC DE JOUR 17

18 ONE COLOR: BLACK 18

19 CASSANDRE LOGO TRANSVERSAL ACROSS COUTURE, PRÊT À PORTER AND ACCESSORIES 19

20 BRAND MISSION STATEMENT SAINT LAURENT IS A LUXURY COUTURE COOL BRAND LIVING IN ITS EPOCA EMBODYING THE FREE SPIRIT OF THE YOUTH CULTURE WHILE STAYING TRUE TO ITS HERITAGE AND DNA 20

21 KEY FIGURES

22 KEY FIGURES

23 6 CONSECUTIVE YEARS OF GROWTH EXCEEDING 20% 1, REVENUE IN M DOS: 78 DOS:

24 14 CONSECUTIVE QUARTERS OF GROWTH EXCEEDING 20% 42.0% 33.9% 33.4% 27.1% 29.4% 27.5% 25.3% 27.3% 26.6% 27.4% 26.5% 18.7% 21.2% 22.1% 20.5% 14.2% 12.0% Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Y-O-Y COMPARABLE SALES GROWTH 24

25 STRONG INCREASE IN RECURRING OPERATING INCOME AND MARGIN 22.0% % % 13.7% 13.8% % EBIT MARGIN 4.3% 41 EBIT IN M FASHION AND LEATHER GOODS EBIT BREAKEVEN 25

26 REVENUE 2016 BY CHANNEL 26

27 REVENUE 2016 BY REGIONS 27

28 REVENUE 2016 BY PRODUCT CATEGORIES 28

29 AT YEAR END STORES AS OF MARCH 31ST,

30 A WELL-BALANCED STORE NETWORK 159 #DOS WESTERN EUROPE NORTH AMERICA JAPAN EMERGING MARKETS NEW COUNTRIES MAINLAND CHINA MACAU UAE AUSTRIA THAILAND MEXICO BRAZIL QATAR MALAYSIA CANADA 30

31 THE AMBITION 31

32 THE AMBITION 32

33 THE ROAD TO FULL POTENTIAL

34 THE ROAD TO FULL POTENTIAL SUSTAINING BRAND EQUITY 34

35 CULTIVATE DESIRE 35

36 CULTIVATE DESIRE SUMMER 2017 SHOW 36

37 CULTIVATE DESIRE WINTER 2017 SHOW 37

38 ADVERTISING CAMPAIGNS SHE IS A REBEL WITH A SERIOUS BANK ACCOUNT WWD 38

39 PRESS LEVERAGE SAINT LAURENT MOMENTUM 39

40 PRESS LEVERAGE SAINT LAURENT MOMENTUM 40

41 INSTAGRAM AS A STRONG IMAGE PLATFORM 41

42 EXPANSION ON OTHER PLATFORMS 42

43 EXPANSION ON OTHER PLATFORMS: YOUTUBE 43

44 OUTDOOR VISIBILITY 44

45 WILD POSTING 45

46 THE ROAD TO FULL POTENTIAL SUSTAINING BRAND EQUITY LEVERAGE PRODUCT OPPORTUNITIES 46

47 A BROAD PRODUCT PORTFOLIO COMPLETE WARDROBES IN READY-TO-WEAR FOR BOTH WOMEN AND MEN A WELL-BALANCED PORTFOLIO OF LEATHER GOODS STRONG DEVELOPMENT IN SHOES EXPANSION OF ASPIRATIONAL ACCESSORIES 47

48 THE ROAD TO FULL POTENTIAL FUEL GROWTH IN ALL CHANNELS SUSTAINING BRAND EQUITY LEVERAGE PRODUCT OPPORTUNITIES 48

49 FUEL GROWTH IN ALL CHANNELS CUSTOMER OBSESSION LOCAL CLIENTS COMP GROWTH STRATEGIC NEW OPENINGS PARTNERSHIPS WITH KEY WHOLESALERS TRAVEL RETAIL EXPANSION E-COMMERCE BOOST 49

50 FURTHER ROOM FOR GROWTH IN SALES DENSITY AVERAGE LUXURY GIANTS TOTAL STORES SAINT LAURENT STORES OPENED FOR MORE THAN A YEAR IN LINE WITH INDUSTRY AVERAGE FURTHER POTENTIAL TO INCREASE THANKS TO EXCELLENCE IN RETAIL 0 20, , 000 /sqm SOURCES: INDUSTRY DATA, INTERNAL ESTIMATES 50

51 ROOM FOR STORE EXPANSION #DOS BY REGION ROW Asia Japan Americas Europe SAINT LAURENT 51

52 FLAGSHIPS & KEY STORES SPREAD THE BRAND IMAGE WORLDWIDE TORONTO BERLIN SEOUL HONOLULU VANCOUVER LOS ANGELES MEXICO NEW YORK MIAMI LONDON PARIS X2 X2 MILAN MADRID BARCELONA DOHA DUBAI BEIJING SHANGHAI X2 TOKYO X2 HONG KONG BANGKOK KUALA LUMPUR SAO PAULO SINGAPORE FLAGSHIPS KEY REGULAR STORE 52

53 KEY COMING OPENINGS HONOLULU VANCOUVER LOS ANGELES TORONTO X2 X2 NEW YORK MIAMI LONDON PARIS X2 X2 BERLIN MUNICH, ZURICH GENEVA MILAN MADRID BARCELONA KUWAIT SHANGHAI BEIJING X2 X2 SEOUL TOKYO X2 HONG KONG MEXICO DOHA X2 DUBAI BANGKOK KUALA LUMPUR SAO PAULO SINGAPORE MELBOURNE FLAGSHIPS KEY REGULAR STORE 53

54 TRAVEL RETAIL EXPANSION C. 2.6% 1.8% LONDON PARIS X2 X2 VENICE TOKYO SEOUL x6 % SALES M 0.7% 1% HONG KONG x2 TAIPEI BANGKOK MACAU HAINAN SIEM REAP (EST.) x4 SINGAPORE 54

55 A CONSISTENT AND DIFFERENTIATING STORE CONCEPT 55

56 THE ROAD TO FULL POTENTIAL FUEL GROWTH IN ALL CHANNELS MASTERING SAVOIR-FAIRE SUSTAINING BRAND EQUITY LEVERAGE PRODUCT OPPORTUNITIES 56

57 MASTERING SAVOIR-FAIRE 57

58 MASTERING SAVOIR-FAIRE 58

59 SAINT LAURENT LEATHERGOODS AND SHOES ATELIERS LG ATELIER IN SCANDICCI (FLORENCE) SHOES ATELIER IN VIGONZA (PADUA) 59

60 REPLENISHING LUXURY RELUX IS THE REPLENISHMENT PROGRAM FOR RETAIL STORES, WHOSE KEY OBJECTIVES ARE: MAXIMIZE SALES Securing best sellers constantly on hand to maximize sales opportunities OPTIMIZE MARGINS Shipping seasonal merchandise based on sales to reduce the slow-movers inventory SIMPLIFY IN-STORE OPERATIONS Right-sized inventory = simplified stock taking & pricing, less transfers, visual focus MARKET DISTRIBUTION DISCOVERY MATURITY END OF LIFE 60 1 Buy Newness only 2 Receive the initial Assortment 3 Replenish based on Sales 60

61 PURSUE THE INCREASE IN OPERATING MARGIN AND CASH FLOW STEADY INCREASE OF GROSS MARGINS INTERNALIZATION OF MATERIAL CUTTING AND PRODUCTION WILL ENABLE THE OPTIMIZATION OF THE COST OF GOODS SOLD EXPANSION OF HIGH MARGIN CATEGORIES AS WELL AS THE EVOLUTION OF THE GEOGRAPHIC MIX WILL DRIVE MARGINS UPWARDS LEVERAGE ON OPERATING EXPENSES FIXED COSTS IN PRODUCTION, DEVELOPMENT, DISTRIBUTION AND G&A WILL CONTINUE TO BE LEVERAGED / INCLUDING SAVINGS ON PARIS BUILDINGS RENT RENEGOTIATION IN CHINA ADVERTISING AND COMMUNICATION INVESTMENTS IN LINE WITH A TARGETED 6% RATIO TO SALES DIGITAL TO REPRESENT 22% OF ADVERTISING COSTS IN 2017, 2.5X VS 2016 CAPEX PACE OF APPROX 20 NET STORE OPENINGS / EXPANSIONS PER YEAR TARGETED AVERAGE YEARLY CAPEX: 5% OF REVENUE 61

62 THE ROAD TO FULL POTENTIAL MASTERING SAVOIR-FAIRE PEOPLE MAKE THE DIFFERENCE FUEL GROWTH IN ALL CHANNELS SUSTAINING BRAND EQUITY LEVERAGE PRODUCT OPPORTUNITIES 62

63 HEADCOUNT DOUBLED IN 4 YEARS 63

64 HR KEY FIGURES

65 GLOBAL RETAIL MEETING 65

66 THE ROAD TO FULL POTENTIAL FUEL GROWTH IN ALL CHANNELS MASTERING SAVOIR-FAIRE PEOPLE MAKE THE DIFFERENCE BUILDING AN INNOVATIVE & SUSTAINABLE FUTURE SUSTAINING BRAND EQUITY LEVERAGE PRODUCT OPPORTUNITIES 66

67 A FRONT RUNNER ON SUSTAINABILITY WITH 4 PILLARS 67

68 BUILDING THE FUTURE THROUGH INNOVATION EXPAND THE CROSS CHANNEL SERVICE LANDSCAPE ON YSL.COM PLATFORM ROLL-OUT TECHNOLOGIES WITHIN CURRENT CORE PROCESSES (3D PRINTING, DIGITALIZATION), THAT OPTMIZE RESOURCES AND SPEED INCUBATE PROJECTS TO ENHANCE CLIENT EXPERIENCE AND STORE EFFICIENCY EXPLORE AND TEST EMERGING TECHNOLOGIES (VR, AI) AND BUSINESS MODELS 68

69 IN CONCLUSION

70 SAINT LAURENT IN 2017 AND IN THE FUTURE A LUXURY COUTURE COOL BRAND LIVING IN ITS EPOCA, EMBODYING THE FREE SPIRIT OF THE YOUTH CULTURE, WHILE STAYING TRUE TO ITS HERITAGE AND DNA A NATURAL AND SUCCESSFUL CREATIVE EVOLUTION, IN LINE WITH THE BRAND DNA A WELL-BALANCED BUSINESS MODEL IN TERMS OF PRODUCT PORTFOLIO AND GEOGRAPHIES A GENUINE AMBITION IN TERMS OF REVENUE AND PROFITABILITY CLEAR LEVERS OF ACTION TO ACHIEVE THE FULL POTENTIAL OF THE BRAND 70

71 SAINT LAURENT IN THE FUTURE KEY DRIVERS MID TERM AMBITION LONG TERM AMBITION LOCAL CLIENTS REVENUE COMPARABLE AND NON COMPARABLE GROWTH OMNICHANNEL 2 BILLION 3 BILLION EBIT INCREASING GROSS MARGINS LEVERAGE FIXED COSTS EBIT MARGIN TO GRADUALLY REACH 25% REACH AND SUSTAIN 27% EBIT MARGIN CAPEX NETWORK FULLY ON SAINT LAURENT CONCEPT PACE OF 20 NET STORE OPENINGS / EXPANSIONS PER YEAR TARGETED AVERAGE YEARLY CAPEX: 5% OF REVENUE OVER 200 STORES 71

72 QUESTIONS & ANSWERS

73