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2018 First-Half results
July 26, 2018
26.07.2018 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 28, 2018 which is available on
Kering’s website at www.kering.com may cause actual figures to differ materially from projected figures: any unfavorable development affecting
consumer spending in the activities of the Group in France and abroad, notably for products and services sold by the 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 Kering’s 2018 first-half results.
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.
INTRODUCTION
JEAN-FRANÇOIS PALUS
GROUP MANAGING D IRECTOR
2018 FIRST-HALF RESULTS
INTRODUCTION
A PURE LUXURY PLAYER1
26.07.2018
Distribution in kind of 70% of PUMA shares to Kering
shareholders effective May 16 at a share price of €429
4
A STREAMLINED ENSEMBLE OF
BRANDS2
Agreement between Kering and Ms. Stella McCartney
regarding the sale and purchase of the Group’s stake
(50%) in her eponymous brand
Discussions underway with Mr. Christopher Kane for
him to take back full control of his eponymous brand
(51% stake held by Kering)
End of partnership with Tomas Maier brand
Initiation of Volcom disposal process
PUMA
shareholding
post
Distribution
PUMA share
price as of
June 29, 18
Impact on
Kering
f inancial
statements
€501 +16.8% since distribution
► Net gain on disposal: €1.18bn booked under
IFRS 5 – net income from discontinued
operations
► Value of Kering stake as of end of June
2018 > €1.0bn
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
Applied to PUMA*, Volcom, Stella McCartney and Christopher Kane
* PUMA IFRS 5 from January 1 to May 16 and Equity-accounted since May 16
>
5
H1 and FY 2017 RESTATEMENTS
In €mRESTATED (*) REPORTED
Revenue 5,073 7,296
Gross margin
Gross profit margin
3,674
72.4%
4,725
64.8%
Recurring operating income
Recurring operating income margin
1,158
22.8%
1,274
17.5%
Consolidated net income
Of which net income, Group share
861
826
861
826
Net income, Group share, from continuing operations
excluding non-recurring items 815 872
26.07.2018
RESTATED (*) REPORTED
10,816 15,478
7,916
73.2%
10,133
65.5%
2,691
24.9%
2,948
19.0%
1,865
1,786
1,865
1,786
1,887 2,002
H1 2017 FY 2017
CAPEX
CAPEX/sales
227
4.5%
283
3.9%
Free Cash Flow from operations 848 718
605
5.6%
752
4.9%
2,206 2,318
* Restatement : PUMA, Volcom, Stel la McCartney and Christopher Kane reclassi f ied as discontinued operations for H1 and FY17 (IFRS 5)
ANALYSIS OF RESULTS
JEAN-MARC DUPLAIX
GROUP CHIEF F INANCIAL OFF ICER
FCF FROM OPERATIONS
RECURRING OPERATING
MARGIN
RECURRING OPERATING
INCOME
NET DEBT
848
1,401
H1 17 restated H1 18
22.8%
27.5%
H1 17 restated H1 18
1,158
1,772
H1 17 restated H1 18
H1 17 restated Q1 18 Q2 18 H1 18
+65%In €m In €m
7
2018 FIRST-HALF RESULTS
NEW PROFILE DELIVERS SUPERIOR PERFORMANCES
* : at constant scope and exchange rates
% comparable growth*
GROUP RECURRING
OPERATING INCOME
€1,772m
+53% yoy
FCF AND NET DEBT
FCF x1.7 at €1,401m
• Record recurring operating
income
• Focus on organic growth drives
substantial operating leverage
and margin expansion
• Sharp increase in FCF
generation
• Further deleveraging, net debt
significantly down yoy
H1 revenue+26.8% reported, +€1.4bn
Q2 revenue +26.4% reported
GROUP REVENUE
continuing operations
Western Europe
32% (+25%)
North America
19% (+45%)
Asia Pacific
33% (+38%)
RoW
7% (+34%)
Japan
9% (+31%)
As a % of revenue and (% comparable growth)
26.07.2018
In €m
+53% +470 bps
€3,326m
€6,432m
€3,106m
€5,073m
+36.6% +31.5%
+33.9%
Q1’18 revenue excluding Christopher Kane
3,049
4,573
2,793
FY 17 H1 17 H1 18
8
LUXURY HOUSES
CONTINUED OUTPERFORMANCE DELIVERS HIGH MARGIN EXPANSION
H1 18 revenue: +26.9% reported; +33.9% comparable
In €m H1 18
Reported
change
Revenue 6,209 +26.9%
Recurring operating income
Recurring operating income margin
1,886
30.4%
+51.3%
+4.9pt
Gross CAPEX
as % of revenue
222
3.6%
+25.7%
0.0pt
H1 REVENUE GROWTH LARGELY AHEAD OF INDUSTRY
• Sustained and well balanced across channels
• E-commerce more than doubled, close to 6% of retail sales
• Negative FX headwinds easing in Q2 (-5 pt vs. Q1 -9 pt)
Q2: COMPARABLE REVENUE UP 31%
• Retail trends very strong with all regions up double digit
- Strong momentum confirmed in North America, APAC and Japan
- W. Europe moderating on high comps and softer tourism trends
• Wholesale up 24%, royalties & others improving at +9%
SOUND RECURRING OPERATING MARGIN, ABOVE 30%
• Significant operating leverage at Gucci, Saint Laurent and
Balenciaga
- while continuing to invest in retail network, A&P and
CRM/digitalization
• Ongoing investment in Jewelry
• Combined FX and hedging impact negative in absolute
terms and marginally dilutive in terms of profitability
CAPEX SELECTIVITY
• 3.6% of revenue in H1, higher ratio expected in H2
• Total number of DOS 1,382, 47 net openings in H1
H1 18H1 17
0%
FX impact
-5%
4,893
Retail
+37%
Scope Royalties
and others
+6%
Wholesale
+28% 6,209
R e v e n u e c h a n g e i n € m , a n d c o m p a r a b l e g r o w t h i n %
26.07.2018
9
GUCCI
HEALTHY TOP-LINE GROWTH FUELS RECORD MARGIN
H1 18 revenue: +36.0% reported; +44.1% comparable
In €m H1 18
Reported
change
Revenue 3,853 +36.0%
Recurring operating income
Recurring operating income margin
1,470
38.2%
+62.1%
+6.2pt
Gross CAPEX
as % of revenue
114
3.0%
+48.6%
+0.3pt
Wholesale Royalties
and others
+33%
RoW H1 18
+49%
Retail (86% of sales): +47%
3,853
+1%
North
America
Western
Europe
Asia
Pacific
+37%+57%
H1 17
+48%+44%
Japan
2,833
H1 18 REVENUE EQUIVALENT TO 2015 FULL-YEAR LEVEL
Q2: 6TH CONSECUTIVE QUARTER OF 35%+ COMP GROWTH
• Retail up 43% driven by LfL, further sales density improvement
- All product categories posting very healthy double-digit growth:
dynamic carryover and attractive newness offer
- N.America best performer; APAC and Japan confirming excellent
trends; W. Europe very solid supported by locals and tourists
- Online sales up 88%
• Wholesale +23%; deliveries prioritized towards DOS, retailization
of certain travel retail doors (in Japan)
• Royalties return to growth supported by Eyewear
RECURRING OPERATING MARGIN AT ALL-TIME HIGH
• Further gross margin improvement on production efficiencies
and channel mix
• Substantial operating leverage on higher store productivity
• Sustained investment to support long-term growth
- Store expenses
- Communications initiatives and customer engagement
- Omnichannel
CAPEX SKEWED TOWARDS NEW STORE CONCEPT
• H1: 30 stores converted
• DOS count up 9 net units (incl. 4 conversions)
+32%of which Q2 18
comp growth+52% +46% +47% +41% +23% +5%
TOTAL
+40%
R e v e n u e c h a n g e i n € m , a n d c o m p a r a b l e g r o w t h i n %
26.07.2018
10
SAINT LAURENT
PROFITABLE GROWTH ON TRACK WITH PLAN
H1 18 revenue: +13.7% reported; +19.7% comparable
In €m H1 18
Reported
change
Revenue 808 +13.7%
Recurring operating income
Recurring operating income margin
198
24.5%
+21.1%
+1.5pt
Gross CAPEX
as % of revenue
33
4.0%
+6.9%
-0.3pt
North
America
Japan
+22%
+25%
711
+7%
+30%
Western
Europe
+4%
H1 17
Retail (68% of sales): +17%
H1 18
808
Royalties
and others
Wholesale
+11%
RoWAsia
Pacific
+29%
FURTHER RECURRING OPERATING INCOME GROWTH
AND MARGIN EXPANSION
• Delivering on operating leverage while investing in:
- retail network development
- impactful communications initiatives and Fashion Shows to
spread brand halo and influence (Men Spring 2019 in NYC
on June 6)
CAPEX DEDICATED TO STORE OPENINGS
• 18 net openings in H1
• Increased penetration in both mature and emerging
markets (Switzerland, Spain, Dubai, China, Mexico)
CONSISTENT REVENUE TRENDS IN H1
• Well-balanced, steady growth in both quarters
Q2: ANOTHER VERY SOLID PERFORMANCE
• Retail sales up 19%
- All regions contributing to growth, acceleration in the US and
Japan; Western Europe back to positive trend
- Newness remains very positively received, adding to carryover
business continuing to perform well
- E-commerce outperforming
• Wholesale up 25%; strong appreciation for Women Fall 2018
collection
+9%of which Q2 18
comp growth+33% +27% +21% +7% +25% +12%
TOTAL
+20%
R e v e n u e c h a n g e i n € m , a n d c o m p a r a b l e g r o w t h i n %
26.07.2018
11
BOTTEGA VENETA
BRAND-REJUVENATION JOURNEY CONTINUES
H1 18 revenue: -6.5% reported; -0.9% comparable
In €m H1 18
Reported
change
Revenue 552 -6.5%
Recurring operating income
Recurring operating income margin
133
24.0%
-10.2%
-1.0pt
Gross CAPEX
as % of revenue
33
5.9%
+57.2%
+2.4pt
H1 17
+2%
North
America
Western
Europe
590
Japan H1 18
+7%-14%
+3%
Royalties
and others
RoW
+7%
Asia
Pacific
552
Wholesale
+1% -2%
Retail (82% of sales): -2%
FIRST HALF COMPARABLE REVENUE NEARLY STABLE
Q2: MIXED PERFORMANCE
• Retail -5%
- Western Europe significantly impacted by softer tourism, not offset by
other regions, though North America posted another positive quarter
- Brand appeal confirmed by continued success of Newness
• Improvement in wholesale up 10% reflecting:
- Healthier distribution network
- Encouraging orders on stabilized number of doors
CONTAINED MARGIN DILUTION
• Strict cost control, OPEX allocation targeting action plans
CAPEX INCREASE TO SUPPORT BRAND REJUVENATION
• Many openings/closings (+4 net) to better adapt network
STEP UP IN CHANGE
• New Creative Director, Daniel Lee, on board; First full
Fashion Show early 19
• Leaner and recentered organization, faster merchandising
-14%of which Q2 18
comp growth+4% -2% -3% +4% +10% +7%
TOTAL
-2%
R e v e n u e c h a n g e i n € m , a n d c o m p a r a b l e g r o w t h i n %
26.07.2018
12
OTHER LUXURY HOUSES
HIGHER GROWTH AND MARGIN PROFILE
H1 18 revenue: +31.1% reported; +36.5% comparable
In €m H1 18
Reported
change
Revenue 996 +31.1%
Recurring operating income
Recurring operating income margin
85
8.5%
+202.5%
+4.8pt
Gross CAPEX
as % of revenue
42
4.2%
-12.7%
-2.1pt
996
760
+27%
H1 17 H1 18
+10%
Wholesale
+50%
Royalties
and others
Retail
ENHANCED PROFITABILITY PROFILE ON BRAND
REFOCUS
• Balenciaga delivering significant incremental profits and
margin expansion
• Continued commitment to raise our brands to the next
level
- Ongoing investment in high-potential brands Alexander
McQueen and Jewelry
- Watches: contribution improving
- Brioni: top line on path to gradually better absorb cost base
CAPEX DOWN ON PHASING
• 16 net openings, at Balenciaga, AMQ and Jewelry
H1: OUTSTANDING REVENUE TRENDS
• Retail leading growth, all regions up high double digit
- APAC and N. America up above 50%
• Wholesale performing strongly
Q2: UP 35% COMPARABLE
• Balenciaga: unfading enthusiasm for RTW and Shoes, both Men
and Women
• AMQ: accelerating further in retail and wholesale; successful
rebalancing of both Women’s RTW and Shoes offers, enlarged
Leather Goods assortment
• W&J: strong pipeline of product innovation and launches
R e v e n u e c h a n g e i n € m , a n d c o m p a r a b l e g r o w t h i n %
26.07.2018
13
CORPORATE & OTHER
26.07.2018
In €m H1 18 H1 17
Total Recurring operating result
Underlying result
Corporate Long-term incentive plan
(114)
(75)
(39)
(89)
(72)
(17)
Gross CAPEX 89 50
KERING EYEWEAR UPDATE: ROBUST H1 RESULTS
• H1 total external sales of €262m, net consolidated revenue of
€208m, up 35% comparable
- Positive momentum of Cartier; successful integration and launch
- Great performance of Gucci, supported by continuous, innovative
marketing initiatives
- Strong results of Saint Laurent, establishing the brand in eyewear
- Ongoing roll-out of customized marketing tools (first Kering
Eyewear shop-in-shop at Coterie, Beijing in May 2018)
- Outstanding performance of online store on JD.com strengthening
digital presence in China
• First Balenciaga and Montblanc collections to be launched at
Silmo 2018, available in stores from January 2019
UNDERLYING RECURRING OPERATING RESULT UNDER
CONTROL
• Disciplined management of Corporate costs while
undertaking further cross-Group initiatives
• Kering Eyewear: positive contribution after amortization
of the early termination compensation
• Higher cost of Corporate LTI plan due to Kering share
price outperformance
HIGHER CAPEX ON FURTHER PLATFORM BUILDUP
• Kering Eyewear automated logistics center
• Group omnichannel/IT/CRM capabilities
15
KEYE
consolidated sales
208
H1 18 KEYE
external sales
262
Royalties and
intragroup
eliminations
-54
H1 18 Total
Corporate & Other
223
Other revenue
Revenue in €m
14
FINANCIAL PERFORMANCE
In €m H1 18 H1 17 RESTATED
Revenue 6,432 5,073
Gross margin
Gross profit margin
4,776
74.3%
3,674
72.4%
Recurring operating income
Recurring operating income margin
1,772
27.5%
1,158
22.8%
Other non-recurring operating income and expenses
Finance costs, net
Corporate income tax
Share in earnings of equity-accounted companies
(40)
(97)
(385)
(3)
(44)
(108)
(219)
(3)
Net income from continuing operations 1,247 784
Net result from discontinued operations 1,148 77
Consolidated net income
Of which net income, Group share
2,395
2,360
861
826
Net income, Group share, from continuing operations excluding non-
recurring items 1,262 815
Net income, Group share, per share (in euro)
Net income per share from continuing operations, Group share, excluding
non-recurring items (in euro)
18.74
10.02
6.55
6.47
26.07.2018
Mainly PUMA net
capital gain and P&L
contribution
11
15
H1 18 FREE CASH FLOW FROM OPERATIONS
In €m H1 18 H1 17 RESTATED
Cash flow before taxes, dividends and interests
Change in working capital requirement (excluding taxes)
Corporate income tax paid
2,032
(82)
(240)
1,361
(120)
(167)
Net cash flow from operating activities 1,711 1,074
Acquisition of fixed operating assets
Sale of fixed operating assets
(311)
1
(227)
1
Free cash flow from operations 1,401 848
26.07.2018
H1 18 NET FINANCIAL DEBT BRIDGEIn €m
16
CHANGE IN NET FINANCIAL DEBT
251
23776
95
Net debt at
June 30, 2018
Free cash flow
from
operations
2,793
Net interest paid and
dividend received
Dividend paid Net financial
investments
and other
-1,401
Net debt from
continuing
operations at
January 1, 2018
Discontinued
operations IFRS 5
Net debt at
December 31, 2017
3,049
3,300
26.07.2018
CONCLUSION
JEAN-FRANCOIS PALUS
GROUP MANAGING D IRECTOR
2018 FIRST-HALF RESULTS
CONCLUSION
26.07.2018
Successful transformation – unlocking value in the short term and over the long
term
18
3
1
2Demonstrating further sustainable profitable growth in H1 18 –
straightforward strategies, determined execution and substantial margin
expansion
Group accelerators to foster our Houses’ development – focus on
omnichannel, digital
Going forward – outperformance against tougher comps in uncertain
environment; further operating leverage potential
4
Q&A
Couverture
- En attente -
Appendix
GROUP H1 REVENUE – CONTINUING ACTIVITIES
in €m
21
GROUP H1 RECURRING OPERATING INCOME
in €m
H1 18 REVENUE AND RECURRING OPERATING INCOME
H1 18
H1 17
restated
Change (%)
Reported
Comparable
(*)
Total Houses
o/w Q1 18 (**)
o/w Q2 18
6,209 4,893 +26.9%
+27.6%
+26.2%
+33.9%
+36.9%
+31.3%
Corporate & other 223 180 +24.1% +32.4%
Kering 6,432 5,073 +26.8% +33.9%
26.07.2018 * : at constant scope and exchange rates
** : restated from Christopher Kane
H1 18 H1 17 restated
Change (%)
Reported
Total Houses 1,886 1,247 +51.3%
Corporate & other (114) (89) -28.3%
Kering 1,772 1,158 +53.1%
Saint Laurent
+43
H1 18
6,432
BV Corporate
& other
+237
Other
Houses
-38
+1,359
H1 17
restated
Gucci
+1,020+97
5,073
BV
-15
+57
Saint
Laurent
+34
Gucci
+53%
1,158
H1 17
restated
+5631,772
-25
Corporate
& other
Other
Houses
H1 18
22
H1 18 REVENUE
Reported change
In €m H1 18 H1 17 €m %
Gucci
Saint Laurent
Bottega Veneta
Other Luxury Houses
3,852.8
808.2
552.2
995.5
2,832.5
710.8
590.4
759.5
1,020.3
97.4
(38.2)
236.0
+36.0%
+13.7%
-6.5%
+31.1%
Total Luxury Houses 6,208.7 4,893.2 1,315.5 +26.9%
Corporate & Other 223.2 179.8 43.4 +24.1%
Kering continuing operations 6,431.9 5,073.0 1,358.9 +26.8%
26.07.2018
y-o-y change
In €m % comparable % reported
Q1 18
Q2 18
1,867
1,986
+48.7%
+40.1%
+37.9%
+34.3%
23
H1 18 REVENUE: €3,853m
+36.0% REPORTED; +44.1% COMPARABLE
GUCCI
Western Europe
28%
North America
21%Japan
8%
Asia Pacific
37%
RoW
6%
116 119
72
222
118 118
79
223
W estern Europe Nor th Amer ica Japan Emerging markets
YE 2017: 529 HY 2018 : 538
Revenue breakdown by region
Number of directly operated stores
26.07.2018
y-o-y change
In €m % comparable % reported
Q1 18
Q2 18
408
400
+19.6%
+19.8%
+12.0%
+15.5%
26.07.2018 24
H1 18 REVENUE: €808m
+13.7% REPORTED; +19.7% COMPARABLE
SAINT LAURENT
Western Europe
35%
North America
22%
Japan
8%
Asia Pacific
29%
RoW
6%
47
29 30
78
52
31 31
88
W estern Europe Nor th Amer ica Japan Emerging markets
YE 2017: 184 HY 2018: 202
Revenue breakdown by region
Number of directly operated stores
y-o-y change
In €m % comparable % reported
Q1 18
Q2 18
261
291
+0.7%
-2.3%
-6.8%
-6.1%
25
H1 18 REVENUE: €552m
-6.5% REPORTED; -0.9% COMPARABLE
BOTTEGA VENETA
Western Europe
26%
North America
11%
Japan
15%
Asia Pacific
41%
RoW
7%
61
30
59
120
61
30
59
124
W estern Europe Nor th Amer ica Japan Emerging markets
YE 2017: 270 HY 2018: 274
Revenue breakdown by region
Number of directly operated stores
26.07.2018
y-o-y change
In €m % comparable % reported
Q1 18
Q2 18
462
534
+38.6%
+34.7%
+31.6%
+30.6%
26
H1 18 REVENUE: €996m
+31.1% REPORTED; +36.5% COMPARABLE
OTHER LUXURY HOUSES
Western Europe
46%
North America
15%
Japan
9%
Asia Pacific
21%
RoW
9%
126
32
81
113
131
33
79
125
W estern Europe Nor th Amer ica Japan Emerging markets
YE 2017: 352 HY 2018: 368
Revenue breakdown by region
Number of directly operated stores
26.07.2018
27
H1 18 RECURRING OPERATING INCOME
Reported change
In €m H1 18 H1 17 €m %
Gucci
Saint Laurent
Bottega Veneta
Other Luxury Houses
1,470.5
198.0
132.5
85.0
907.3
163.5
147.5
28.1
563.2
34.5
(15.0)
56.9
+62.1%
+21.1%
-10.2%
+202.5%
Total Luxury Houses 1,886.0 1,246.4 639.6 +51.3%
Corporate & Other (114.1) (88.9) (25.2) -28.3%
Kering continuing operations 1,771.9 1,157.5 614.4 +53.1%
26.07.2018
28
H1 18 EBITDA
Reported change
In €m H1 18 H1 17 €m %
Gucci
Saint Laurent
Bottega Veneta
Other Luxury Houses
1,601.8
218.0
152.5
123.0
1,007.4
186.6
169.9
57.9
594.4
31.4
(17.4)
65.1
+59.0%
+16.8%
-10.2%
+112.4%
Total Luxury Houses 2,095.3 1,421.8 673.5 +47.4%
Corporate & Other (73.7) (51.7) (22.0) -42.6%
Kering continuing operations 2,021.6 1,370.1 651.5 +47.6%
EBITDA: defined as recurring operating income + net charges to depreciation, amortisation and provisions on non-current operating assets, recognised in recurring operating income
26.07.2018
29
H1 18 NET FINANCIAL COSTS AND INCOME TAX
In €m H1 18 H1 17
Cost of net debt
Other financial income and expenses
(43.4)
(53.7)
(59.1)
(48.8)
Financial costs (net) (97.1) (107.9)
In €m H1 18 H1 17
Tax on recurring income
Tax on non-recurring items
(391.3)
6.3
(219.6)
0.6
Total tax charge (385.0) (219.0)
Effective tax rate 23.5% 21.8%
Recurring tax rate 23.4% 20.9%
26.07.2018
30
H1 18 CONDENSED CONSOLIDATED BALANCE SHEET
In €mH1 18 H1 17
Goodwill, brands and other intangible assets - net
Other net non-current assets
Net current assets
Net assets held for sale
Provisions
9,748
2,561
(178)
367
(348)
14,763
808
1,446
-
(388)
Capital Employed 12,150 16,629
Shareholders’ Equity 9,357 12,057
Net debt 2,793 4,572
26.07.2018
Gucci • Saint Laurent • Bottega Veneta
Balenciaga • Alexander McQueen • Brioni
Boucheron • Pomellato • Dodo • Qeelin • Ulysse Nardin • Girard-Perregaux
Kering Eyewear