Kering SA ($KER)

Ladies and gentlemen, dear shareholders, a warm welcome to the new Kering Annual General Meeting. Thank you for joining us here again this year at Lanc or online. As you know, this meeting is a special opportunity, and we are absolutely delighted to welcome you here at the company's headquarters. Joining us today, Luca de Meo, CEO, on my right; Jean-Marc Duplaix, who is the Chief Operating Officer and CEO of the Jewelry division; Marie-Claire Daveu Head of Sustainability and Corporate Affairs; Armelle Poulou, who is our CFO; and Mr. Eric Sandrin, who is the Secretary of the Board and General Counsel and soon the secretary of this assembly as well. So we will now proceed with the constitution of the Board, I will be chairing scrutineers will be -- do these scrutineers will be formed by the shareholders who present the largest number of votes representing Artemis. We have Benedito Fund for Amundi, Mr. Frederico -- with the approval of the scrutineers, I suggest Mr. Eric Sandrin, be appointed Secretary of this meeting. And the bureau is -- the general meeting is now open. And as in previous years, this meeting is filmed. It is recorded and streamed on Kering's website and we are also providing simultaneous subtitles. Without further ado, I'm going to give the floor to Eric Sandrin, who's going to review the legal provisions and present the agenda.

Thank you, Francois-Henri. Ladies and gentlemen. Dear shareholders, you've been convened to this combined general meeting pursuant to the meeting notice and invitation published in the BALO on April 5 and May 11, 2026. The quorum required to hold this meeting has been reached. The meeting is therefore declared duly constituted and may validly deliberate. As always, the final quorum will be confirmed to you before the voting starts. All documents that are required by law were made available to shareholders and were sent to those who requested so. The documents are on the table. I have them with me right here, the social and economic committee received in a timely manner all documents and information submitted to the general meeting and has no -- not raised any objections. The various reports prepared by the Board of Directors for this assembly are available on the company's website -- and they have been included in the notice and the 2025 universal registration document. These 2 documents are also available on the voting tablets provided to you upon registration. As every year, in the interests of today's debates and proceedings, I propose that we do not go through the reading of the full reports. And as every year, Lemercier who is a judicial officer is present at this general meeting, he conducted various controls and verifications regarding the proper recording of votes. This being said, I am now going to take you through the agenda of this combined general meeting. We have a total of 22 ordinary and extraordinary resolutions. All are displayed on the screen behind me. Please note that no shareholder has exercised their right to add items or draft resolutions to the agenda. Regarding the ordinary resolutions as for every year, we need to approve the accounts and the appropriation of earnings resolutions 1 through 3. The composition of the Board of Directors, including the renewal of two members and directors and the appointment of two new directors respectively, Resolutions 4, 5 and 6 and 7. Resolutions on compensation of corporate officers, say-on-pay resolutions 8 through 14, the appointment of Ernst & Young as our independent auditors responsible for certifying the financial statements and sustainability disclosures and it's alternate Auditex. Resolutions 15 to 17 and last but not least, the share buyback program, Resolution 18. Moving on to the extraordinary resolutions with the renewal of the authorization to grant free shares to employees and/or executive officers. Resolution 19 employee access to the company's capital Resolutions 20 and 21 and coming back to ordinary matters, we have Resolution 22, the traditional powers to carry out all legal formalities following this general assembly, general meeting. I'm going to now briefly take you through the outline and the agenda for this meeting. We're going to start off with a speech by Francois Pinault, the Chairman of the Board of Directors, a speech by Luca de Meo, our CEO, we will have a presentation of the 2025 annual results by Armelle Poulou, Chief financial officer. We will have an update on sustainability by Marie-Claire Daveu, Head of Sustainability and Corporate Affairs. Then Francois Pinault will give a presentation on governance in his capacity as Chairman of the Board. Veronique Weill will present on executive compensation. She is the Lead Director and Chair of the Compensation Committee. Our statutory auditors will present their conclusions, the conclusions of their reports, we will then have our usual Q&A, and we will close with the final vote on resolutions. That's it from my part. Francois, over to you.

Ladies and gentlemen, dear shareholders, as you will recall, we gathered here on September 9 last year, notably in connection with the appointment of Luca de Meo as the Director and Chief Executive Officer of Kering. And it was at my initiative that last year, the Board decided to separate the roles of Chairman of the Board and Chief Executive Officer. It was a pivotal moment for the company. And it seemed essential to me to reinforce the efficiency of our organization and the balance of responsibilities. Thereby entrusting the executive management with action and execution and the Board of its -- and its Chairman with the strategic direction, oversight and long-term vision. In accordance with best practices for publicly traded and listed companies. This clear division of roles gives the Board its full meaning and enables it to fully carry out 3 essential missions. The first is to define the company's broad strategic directions. It requires both a deep understanding of markets and our houses as well as true ability to anticipate future trends. The second mission of the Board is to support management by insurance decisions are properly executed while remaining attentive early warning signs and providing the necessary experience and perspective. Last but not least, the third mission is to foster an environment based on trust. Indeed, profound transformation can only successfully be carried out. If leaders know they can rely on solid and lasting support. It is precisely to better fulfill these missions that we propose to further strengthen the Board's expertise and commitment through the candidates, we are submitting for your approval today. Thus, the Board is giving Luca, CEO since last September and his teams, all the freedom they need to implement our strategic choices and make necessary adjustments. I can already tell you that the first 9 months, we've been working with Luca fully confirm the governance decisions we have made. This trust is naturally based on constant accountability and dialogue, the Board has to remain attentive to the consistency of the decisions that are made, their results and management's ability to stay on track. So we need a balance between support vigilance, accountability, and that will make it possible to sustain a transformation of the magnitude we -- of the current changes. In a moment, Luca will present his road map to you. You will see that it is very ambitious because the situation requires it to be ambitious and because Kering has the resources it needs to complete its ambitions above all, -- it is credible, credible in its approach in its time line and in the choices, it makes including the most difficult ones. As you know, Kering has been built since 2013 by prioritizing the international development of each of its houses. More recently, with Luca, we embarked on a new journey. The construction of a more integrated company, leveraging significant synergies between the houses and capable of both combining entrepreneurial agility with the power and the strength of a global organization. As you also know, a strategy no matter how relevant it is, is only as good as its execution. That is why the Board will be very demanding and attentive to the results achieved, the commitments made as well as the performance indicators and signals, whether positive or not. Gucci will naturally be at the center of our focus, given its significance and the importance of its sales for the company. I can tell you that the actions undertaken for Gucci are based on very solid foundations and will enable the brand to return to a path of sustainable growth rapidly. Gucci has always been a very unique house with a very strong creative identity. And on several occasions, in its history, Gucci has demonstrated its ability to reinvent itself without ever compromising on its values. So it is this capacity for reinvention that the strategy presented by Luca is based on today. Our company is not limited to Gucci. I deeply believe in the potential of all our houses with no exception. They all have significant potential for growth. And beyond our houses, I really believe in the growth levers, the growth drivers we've identified. We will continue to develop them drivers such as in Eyewear, which has already become a leading player in this industry or our recent partnership with -- in beauty and longevity with L'Oréal, which opens very promising and transformative opportunities. I also have full confidence in the huge potential of our jewelry houses. This is why we recently consolidated them into a separate division under the well-informed and seasoned leadership of Jean-Marc Duplaix, who is going to further accelerate their development. Our company has already gone through many phases of transformation. And each time it has been able to question itself, challenge itself, adjust its course when necessary and always consistently emerged stronger. The company has successfully evolved and adapted in a constantly changing environment, drawing strength from this history. It is our responsibility to stay on course with clarity and composure. In a context marked by a lot of international uncertainty, major geopolitical tensions, I am convinced we shouldn't give in to impatients nor lose sight of our objective. I'm also profoundly convinced that Kering with its beautiful houses, it's exceptional talent -- it's heritage history and with you, its shareholders. It holds a unique place in the world of creativity and luxury, and we'll continue to play a leading role. It is in this spirit that I chair this board and that I invite you to support the strategy we are presenting to you today and which Luca is driving with great talent and energy. Before giving you the floor, I would like to share a short video with you. [Presentation]

Ladies and gentlemen, greetings. I would first like to thank you for your presence today. And for the trust, of course, you are placing in us. I would also like to thank Francois-Henri and the members of the Board of Directors for their support over the past 8.5 months that have just passed. And I would like to thank the team, the teams everywhere in the world for their engagement -- they are highly demanding, and they're doing high-quality work on a daily basis. So you entrusted me with Kering's operational responsibility of Kering, 8.5 months ago. I've spent a lot of time in the field, in the workshops, in our stores with our partners to understand how the group works in reality. My conclusion is that Kering has outstanding assets in hand, an iconic house, many iconic houses, unique know-how and extremely high-quality professionals. And it's on that basis that we are moving forward. And what makes me particularly optimistic about the transformation we have now engaged in because in these 8.5 months, we have taken some pretty strong decisions. First, we have reorganized ourselves to make our management model more empowering, more effective, faster. The group is now articulated around 4 core businesses, fashion and leather goods, jewelry, eyewear and what we have chosen to call Kering next, which is preparing for the growth drivers of tomorrow. All this is based on a cross-functional platform group-wide platform structured around 5 priorities: industry, customer, sustainable development, technology as well as the support functions, of course. The Executive Committee now meets on a much more regular basis with a dual strategic and operational oversight and is highly demanding in terms of execution. That has changed the way in which we work. Decisions are now taken faster, responsibilities are better defined. And the follow-up and monitoring is much more rigorous. And beyond the organization, we have also made progress on 7 further priorities, culminating in the construction of our strategic plan. First, debt. We have significantly reduced it in 2025 by around EUR 2.5 billion last year and even more this year. Armelle, I'm sure, will be telling you more about this. I truly believe it was essential. This gives us additional leeway to act, to invest, to prepare for the future in the right conditions. We really did not want debt to hinder our transformation. And I believe that, that is no longer the case. Another key priority, our retail network. After an initial phase of rationalization on third-party retail conducted by Francois-Henri Pinault at the time, we are now continuing the optimization of our own network at the end of 2025. The total was 1,719 points of sale, down 75 over 1 year in 2026, we shall be amplifying the movement with at least 100 additional closures. Each closure comes with a plan to refocus business on stronger points of sale with better locations the ability to offer a high-quality experience, much more consistent with the standards of the luxury sector. And this is why -- in parallel, we are investing in our retail network with a renovation plan that should affect up to 2/3 of our boutiques since -- by 2030. As for inventory, we have initiated a significant plan in order to reduce it by around EUR 1 billion over 12 months. And more importantly, we are transforming our processes. We are implementing integrated planning tools based on improved coordination between teams and stronger forecast capacities, thanks to the power of AI. Our target is to produce more accurately earlier and with less complexity. I believe that is a key performance lever but also a lever for desirability. Reducing volumes also means protecting -- we have also initiated a reorganization of our pricing structure, architecture, pricing and product architecture. The offering is being simplified with collections that are more legible at a clearer hierarchy between iconic, seasonal and essential products. This allows us to better express the identity of our houses to strengthen consistency and to improve full price sales. In parallel, fundamental work is being conducted on quality, materials, manufacturing, features, durability, because in the world of luxury, legitimacy is built on -- essentially on product excellence. I truly believe that. We have also chosen to work on marketing efficiency. We started by rebalancing our investments towards high-performance media. The idea is not to reduce the resources because, of course, this is essential in a highly competitive environment, but to use the resources precisely targeted way. These actions should generate the equivalent of around 1 percentage points of operating profit, which will be reinvested in our houses to sustain that growth and development. And finally, we have created the conditions, as Francois-Henri said, for Gucci's rebirth but more about that in a moment. All of these actions create the foundations of the new strategy we presented in Florence last month to the financial community and part of the press. The strategy, which I shall be describing is the result of collective work, I must say so, conducted with all of the group's teams -- it allowed us externally to clarify our vision. And I'm reassured to see that it was deemed both credible and ambitious. That's the balance we were seeking to strike. -- in house. Importantly, it allowed us to align all of the team around clear, consistent and very concrete principles. Our first priority is, therefore, to restore profitable and sustainable growth. And this will be essentially driven by our houses that are singular and complementary and which now have a road map, allowing them to build on their strengths. Gucci, first of all. Gucci is engaged, as you know, in an in-depth transformation. It now has a new management team, a more agile organization and the essential work will be continuing. This will take a simplification of the brand's offering with a reduction of around 20% of SKUs also refocusing on the fundamental codes of the house, relaunching creative momentum and strengthening quality levels to ensure a flawless product experience. But more importantly, we have returned to the essence of the house, what makes it unique, instantly recognizable and culturally relevant. The first reactions to the La Familia and Larimavera collections, very encouraging, notably for all the most influence customers, which helps to boost desirability and set the tone. Likewise, analysis that we have conducted in women's fashion confirm the momentum and for the first time for a number of years, the Gucci Show was #1 in terms of media impact. The crews show in New York 10 days ago also confirmed Gucci's ability to echo and to be at the heart of people's conversations. All of that has led us to set powerful ambitions for Gucci, for instance, generating EUR 1 billion in additional revenue for leather goods by 2030 with a more distinctive and iconic offering. So basically, the rebound will take time, but it will be sustainable because it is based and grounded on very strong fundamentals. [indiscernible] house that you know very well with a very powerful identity and a recognized authority in the world of fashion. Our priority is to amplify what makes it unique First, by enriching its expression, a daywear collection that is more developed, more menswear and leather goods positioned on higher high-end segments. And in parallel, we are creating the conditions to double the volume of business in Asia by 2030 by making it more relevant locally and by increasing its visibility with a particular focus on China, in order for to really talk to China and be fully recognized on that market. Bottega Veneta will continue to ramp up in the world of deep luxury, deeply rooted luxury based on discretion, excellent craftsmanship and scarcity deliberately. Our priority is to strengthen this positioning by affirming the iconic codes, the famous Intrecciato, the woven leather. -- that is part of the house's soul. We are also gradually expanding the universe beyond leather goods with more fashion, both for women and men, and the momentum should allow us to double nonleather goods revenues by 2030. Balenciaga, is playing a key role in our ability to talk to younger generations, a house that has a unique ability to influence culture and set the trends. Our aim is to transform that influence into sustainable growth. first, by strengthening our key categories, notably goods, where there have been some fine successes the womenswear offering, which we wish to double by 2030. All of this by continuing to build all the potential of menswear. And finally, the brand also has high development potential in many geographical areas beyond Asia, where it has proven extremely resilient. At McQueen, we are going back to base to the sartorial roots, strong in womenswear and key categories like tailoring and occasion wear. We are simplifying the offering rationalizing the network and strengthening the execution discipline with a clear priority, return to profitability. Brioni standing out in the world of ultra-luxury based on unique expertise, tailor-made and the art of tailoring. At the heart of the model, the personalization platform called Bespoke, which is a key lever to generate value and loyalty. The house has a level of integration that is outstanding, with 660 Craftsman and manufacturing that has been entire -- that is done entirely in-house on formal wear. It's on that basis that it is gradually expanding its wardrobe, preserving extensions of excellence and exclusivity. Brioni also aims to become the reference within the group in the world of sartorial know-how. Alongside fashion and leather goods, we are also developing additional growth levers Jewelry, is the first key lever. It is both resilient, highly emotional and still largely underexploited within the group. We have, of course, solid foundation with houses such as an Pomellato and Chime but also a significant development potential within our fashion house including Gucci, with Kering jewelry, the revenue should be doubling medium term and the gradual integration of Italian manufacturer, RoseliFranco. Our ambition is to create a truly integrating platform that goes beyond the scattered initiatives from 1 house to another. Kering Eyewear is a second structural pillar. That is already a great success, a testament. And only it only took around 10 years. But beyond the current performance, it's the potential that is important. We now have a true platform that can boost growth based on innovation, product quality, strictly controlled retail, and we should be able to continue to grow revenues, which reached EUR 1.6 billion last year in under 10 years. It's also a great playground for new usages, the crossroads of luxury and technology, notably around smart eyewear, which opens up very promising prospects for the future. The future, Kering Next, this is what is going to bring together with growth drivers as of tomorrow. Our ambition is not to diversify just for the sake of diversification, it is to identify segments where the group has true potential and where we can generate value in a sustainable manner. We have included Ginori 1735 of course, an old house, which has a unique heritage. It's the oldest house in the group, but we want to develop it as a reference within the group in tableware and as a key player in experience-based luxury. Beauty is another promising business line. The strategic partnership with L'Oréal allows us to grow very strongly in that field by combining the power of a global leader with the potential of our brands. We're also exploring long-term opportunities in other segments such as wellness and longevity. And with House of Wonders, we now have a tool that can serve to accelerate the development of emerging brands by giving them access to the group's capacities while preserving their identity. We are still highly selective, and that is what has driven into take a minority stake in I-CYCL, which is a true nugget among luxury and fashion, Chinese houses. The strategy we have presented also in order to return to growth as a consideration for new geographies. China would, of course, remain a key market for our industry. But it's a market which is entering a new phase, a phase that is more demanding, more selective with a more local anchorage. Growth will be more qualitative, less driven by an expanding retail network and more by brand desirability and their relevance to local culture. In parallel, we have identified markets which have a very strong potential in-house, we call them the 6 pack, India, Asia, Southeast Asia, Brazil, Mexico and the Middle East around the Emirates and Saudi and Africa, essentially Nigeria. These are high-growth markets driven by the expansion of new customer bases, often younger, and by favorable local dynamics. Taken together, they are already a significant growth driver, but success will not come naturally. These are heterogeneous, highly demanding markets. which require a highly structured approach, and that is what we should be working on. to restore growth. But there is a second need. We need to improve efficiency. That is why we are constructing cross-functional platform that is group-wide, industry, customer technology, sustainable development and support functions, and this should allow us to avoid loss of value. In industry, we are fortunate enough to have a European ecosystem of outstanding know-how, which is at the heart of our product quality. But that ecosystem is driven in a fragmented manner, house by house. We are, therefore, going to be implementing a much more integrated steering of all of this to allow us to adjust volumes much more precisely to use our capacities much better and to reduce inefficiency. We can already say that we are now able to go much faster between the design of a product and its marketing without losing our precision and accuracy in parallel. We are also deeply changing our supply model. We're transitioning from multiple suppliers to a logic of most favored partner. A favored partner is a partner with which we work in the long run. We are highly demanding with them. but we also provide visibility and mutual commitments. That is what allows us both to secure their know-how to elevate quality levels and to improve efficiency. And this should lead us to 1 percentage point of the -- of improvement of Kering's operating margin in the coming years. It's a first landmark for our new Industrial Director. And I'm sure that we will be able to do even better. There's going to be a change of scale through a program we have called Core, which is our customer knowledge platform. It consolidates proprietary data from our houses and enriches them with external sources to build a much more integrated vision of customer preferences and behaviors and to guide our decisions from the product to the activation and allocation. To take the example of the clienteling pilot program launched at Gucci, the value generated by the use of intelligent use of data and artificial intelligence has nearly doubled, with approximately twice as many sales resulting from targeted in-store initiatives, twice as many customers making purchases following outreach, in particular, strong traction in mid-tier and entry-level segments and more broadly in terms of technology, we're going to integrate more systematically data and AI in our processes. This will allow us to better anticipate demand, optimize product allocation and better manage overall operations. It will also allow us to simulate scenarios adjust decisions more quickly and reduce organizational complexity. Finally, on sustainable development, Marie-Claire, it's been one of Kering's strengths. -- for many years. I will give the floor to you, Marie-Claire in a moment. But just a quick word on the subject. I'd like to say a word about the transmission of knowledge. Last month, we launched the Academia della Pelletteria, which will enable us to train the talents of the future in key business areas, leather goods, jewelry, craftsmanship -- and the academia relies on a network of schools in Italy, which is really the heart of our industrial ecosystem. And groups of people every year. This is truly necessary investment for the future. And as you well understand now, the key to the future is execution. We, therefore, must demonstrate our ability to deliver. We will run this transformation with the Board's oversight using specific metrics, growth, operating margin, return on capital employed as well as the brand desirability. In the medium term, we aim to gradually outperform the market in terms of growth. We expect to more than double our operating margin rate compared to 2025 in percentage terms and increase our return on capital employed to over 20%. And at the same time, we will maintain strict discipline in terms of capital allocation, and we will keep investments under control. representing anywhere between 5% and 6% of sales. Last but not least, we will demonstrate consistency towards you with an annual dividend payout ratio of around 50% of the net current income group share. So those indicators all point into the same direction. Our ambition is to build quality, controlled growth, which will create long-term value. Yes. The 2025 performance did not meet this ambition, but Q1 '26 has showed encouraging signs. We know that transformation this magnitude will take time. I'm confident our strategy was developed on the ground by our teams. And this is generally how you can build the greatest successes. Thank you very much for your attention.

Thank you, Luca. And I'll give the floor to Armelle Poulou, the company's Chief Financial Officer, who is going to present the 2025 results.

Thank you, Francois-Henri. Thank you, Luca. Ladies and gentlemen, dear shareholders, I'm going to present the 2025 results before we review the preliminary 2026, as you know, following the strategic partnership, we launched with L'Oréal in the connection with the sale of Kering Beauté, which was finalized first half of 2026 Kering Beauté operations have been deconsolidated from the 2025 financial statements in accordance with IFRS 5. Subsequently, all 2025 figures exclude Kering Beauté. The 2024 income statement has also been restated on this basis to allow for appropriate comparison. The key figures for fiscal year 2025 are presented on this slide. Sales for 2025 amounted to EUR 14.7 billion and recurring operating income at EUR 1.6 billion which represents an operating margin -- current operating margin of 11.1%. The company's free operating cash flow stands at EUR 4.4 billion. or EUR 2.3 billion if we exclude the positive impact of real estate transactions. The company's net debt was reduced to EUR 8 billion at the end of December 2025. We will come back to this in a moment. So in many respects, those results mark a low point for the company. But let's be clear. These figures establish the starting point from which we are now driving our turnaround discipline that underpins our strategy. Revenue for 2025 declined by 10% on a comparable basis and 13% on a reported basis compared to '24 with a stronger euro. It is important to highlight the sequential improvement we have achieved in the first half with the final quarter showing a clear acceleration to minus 3%. This indicates that our actions are starting to pay off with our customers, which is a first encouraging sign. Our geographic footprint remains balanced, although we have observed some adjustments in the mix over the year. Asia Pacific, down 2 percentage points to 29%, while North America and Western Europe have increased by 1 digit point each. Japan and the rest of the world maintain stable shares. Recurring operating income is EUR 1.6 billion, down on a year-over-year basis, the current operating margin of 11.1%, certainly reflects the pressure on revenue, but it also reflects the operational discipline implemented now over the past several quarters. rigorous cost management, clear arbitrations, targeted investments. Our disciplined provides a sound financial foundation, which we -- our turnaround is built upon. As a result, we achieved EUR 925 million in savings in 2025, reducing our operating expense by 9%. These are not just cuts but they are actually effective reallocation of resources aimed at increasing the company's efficiency while preserving its creativity and restoring our ability to invest in our houses. We accelerated the store network, fewer stores, but in better and more strategic locations. I would now like to take a look at the performance of our houses. Gucci's revenue in 2025 amounts to EUR 6 billion, down 19% on a comparable basis. Direct-to-consumer sales accounted for 92% of revenue with a sequential improvement in Q4, primarily driven by North America and Asia Pacific as well as a number of new product launches. The launch of Le Familia collection, along with related activations, has begun to put Gucci back into the spotlight. Recurring operating income reached EUR 966 million, representing a margin of approximately 16%, driven by strict cost control and network optimization with 32 stores closed. San posted revenue of EUR 2.6 billion in 2025, down 6% on a like-for-like basis, with sales continuing to improve in Western Europe, Japan as well as North America. The momentum is strong in leather goods, Women ready-to-wear as well as footwear. Recurring operating income is EUR 529 million. That's a robust margin of 20%, thanks to efficiency gains and very targeted investments in strategic locations in stores. Finally, Bottega Veneta posted a 3% increase on a like-for-like basis with revenue of EUR 1.7 billion. The House posted strong performance in its own stores, which accounted for 86% of total sales. Annual recurring operating income reached EUR 267 million, up 5%, representing a margin of 15.6%, driven by an improved gross margin and investments in communication, marketing and store network to sustain the brand's strong momentum. The revenue of other houses was down 6% on a like-for-like basis with contrast performance. Balenciaga showed sequential improvements with positive direct-to-consumer sales in the fourth quarter in Asia Pacific and a good momentum in North America. Alexander McQueen is still under pressure with an ongoing restructuring plan, which includes 21 store closures in 2025. Brioni, another solid year with Q4 showing strong double-digit growth. Last but not least, jewelry houses are confirming their excellent momentum. Boucheron posted exceptional results with particularly strong performance in Japan and Asia Pacific. Pomellato and Qeelin are also growing. Jewelry remains one of the company's most dynamic growth drivers supported by ongoing investments and selective network expansion, in particular for Boucheron. The recurring operating income for other houses posted a loss of EUR 112 million weighed by a flat performance of Balenciaga and losses at Alexander McQueen in spite of the restructuring program. Last but not least, Kering Eyewear generated sales of nearly EUR 1.6 billion, that's a 3% increase on a like-for-like basis, driven by sustained growth in Western Europe and the optical category. Operating income reached EUR 252 million, representing a solid margin of 15.8%, which is slightly below last year's level due to higher tariffs and continued strategic investments in Maui Jim to support its international development. Please allow me to briefly review the other items on our income statements. Other nonrecurring operating income and expenses totaled EUR 584 million, primarily -- consisting primarily of real estate losses, impairment and restructuring charges as well as a fine from the European Commission. Net financial expenses totaled EUR 594 million, which is a slight improvement with net debt costs flat at EUR 328 million and an average coupon rate unchanged at 3%. Corporate tax amounted to EUR 354 million, which is significantly less with an effective rate of 36%, primarily impacted by losses in the U.K., Alexander McQueen and the reclassification of Kering Beauty as discontinued operations. Finally, net income attributable to the group from continuing operations, excluding nonrecurring items, amounted to EUR 532 million. Operating free cash flow, excluding real estate transactions amounted to EUR 2.3 billion, down 35% compared to 2024. Operating investments, excluding real estate transactions totaled EUR 0.8 billion, down nearly 30%, or 5.4% of sales focused on the transformation of our store network and highly selective developments. The net debt continued to drop confirming the company's deleveraging. Thanks to disciplined capital allocation, company's net debt was reduced by EUR 2.5 billion, standing today at EUR 8 billion at year-end, representing a leverage ratio of 3.4 in the first half of 2026, Kering bout transaction and other real estate refinancing deals significantly accelerated the company's deleveraging, resulting in a strengthened balance sheet. Let's now quickly move on to the balance sheet. Assets held for sale were reclassified for a total of EUR 5.2 billion, including EUR 3.7 billion. net related to Kering Beauté, which was disposed to L'Oréal and the completion was announced on March 31 and EUR 1.3 billion for the Via Monte Napoleone building, the transaction which was announced April 1. The net debt-to-equity ratio improved to 51% compared to 67% last year, benefiting from real estate refinancing transaction. inventories dropped by 8%, while the operating working capital requirements increased to 17.7% compared to 16.9% a year before. Reducing inventories is still a priority with confirmed continued decline through 2026. Let's now turn to the initial performance highlights for 2026. During the Q1 revenue presentation, we introduced a new segmentation of our businesses aligned with our strategic priorities and organized around 4 operating segments, Kering fashion and leather goods, including Gucci, Saint Laurent, Bottega Veneta, Balenciaga, McQueen and Brioni. Kering jewelry, including Boucheron, Pomellato, Dodo and Qeelin, Kering Eyewear and Corporate and Other, including Corporate Services and January 1735. Gucci is also the subject of a separate communication, Q1 '26 has showed encouraging signs with group revenue totaling EUR 2.6 billion, which is stable on a like-for-like basis compared to the same period in 2025 in spite of a complex and uncertain environment. The 6-point currency effect explains the decline in reported figures. Performance across various segments remains contrasted, but all are showing sequential improvements compared to the quarter before. The Fashion & Leather Goods segment declined by 3% with Saint Laurent, Bottega Veneta, and Balenciaga posting growth, while Gucci continued its recovery. Kering jewelry is confirming its role as a driver of sustained growth, particularly supported a Boucheron. Kering Eyewear grew by 7% and corporate and other by 10%. Regional trends are improving. With the exception of Western Europe and the Middle East, which were unfortunately affected by the conflict, which has had a 1-digit point impact on performance. The Middle East has, of course, been the subject of increased vigilance since February. The safety of our teams there has always been a priority, and the network is fully operational. Elsewhere North America stands out with strong acceleration, Asia Pacific, improving sequentially and Japan, which continues to grow, thanks to jewelry. The quarter has also marked significant progress in the company's strategic execution and balance sheet strengthening. And as you noted, the creation of Kering jewelry, the gradual integration of Razelli Franco, 1 of the largest independent luxury jewelry manufacturers, the closing of the partnership with L'Oréal in beauty and the new real estate refinancing transactions. Meanwhile, the company continued to optimize its network and strengthen discipline regarding investments and costs. In this very uncertain geopolitical and macroeconomic environment, we remain focused on both agility, discipline and excellence in execution. Based on the brand strategies presented by Luca earlier. In 2026, our goal is to resume growth and improve margins. The chart you're seeing illustrates the performance of Kering's share price over the past 12 months. Rest assured. All teams are fully committed to improving the company's performance to make sure that this is -- and make sure that this is reflected in the company's stock price. We are confident in our reconquering plan presented at April 16 to sustainably reposition the company as a leading challenger in the industry. The Board of Directors is proposing a dividend of EUR 3 per share as well as a special dividend of EUR 1 per share related to the sale of Kering boutique to L'Oréal. Both dividends are subject to your approval today. Shareholder remuneration is 1 of our top priorities in terms of capital allocation. Our ambition is to resume a dividend of dividend growth trajectory starting in 2026, in line with the expected improvements in our performance. Thank you for your attention.

Thank you, Armelle. Now Marie-Claire Daveu, who is going to tell us about our new road map in the world of sustainable development.

Thank you, Francois. Dear shareholders, greetings to all, 2025 was a crucial year in the field of sustainable development to this year marks the end of a chapter that opened 10 years ago, that of our strategy based on fashioning the luxury of tomorrow, and has now entered a new phase. New steps that are even more ambitious where sustainable development by strengthening the desirability of our brands and risk control, becomes increasingly and more than ever, a powerful performance and value creation lever for our houses and a key element in the reconquest reconquering strategy of our group. Kering is now recognized as a leader in sustainable development. And based on what we have already built and driven by the vision of our new CEO, Luca de Meo, we are now creating new momentum. Our ambition is to go even further, even stronger for our customers, for our houses and for our shareholders to continue to create flawless, innovative luxury that is therefore more desirable. Over the past few years, we have rolled out an exemplary and ambitious road map in the face of increased regulatory pressure. We have integrated the latest scientific advances, and we have taken account of our customers' expectations. We have fine-tuned our targets, our actions to allow our houses to be on the cutting edge. Our environmental and social commitments are reflected in concrete and measurable initiatives based on data and aligned with international scientific references and benchmarks. We have transformed our model by integrating sustainable development into the key functions of the group and more importantly, within our houses. We have gathered many international and national accolades, which have continued to encourage us. The impact of our action is essentially environment. In 2025, we reduced our global emissions of greenhouse gases by 34% across Scopes 1, 2 and 3. Since 2021, we have stuck to our commitment to animal welfare. The use of animal fur has now been entirely banned. We have also strengthened traceability within our value chains. Our rate of traceability is now 97% for our key ingredients. And we're also contributing actively to the regeneration of vulnerable ecosystems through the creation of a regenerative fund for nature alongside Conservation International, a project that covers more than 1 million hectares in many countries. Our impact is also social. We have strengthened the social standards, of our suppliers and those of our employees through a parental policy that guarantees the same rights worldwide. We provide training to our employees about the challenges of the seasonal development, but also our future employees with the Institute Francois de la Mode or the London College of Fashion or Tsinghua University in China. The transformation of the luxury and fashion model requires collective action and Kering has played a major part in creating and launching sectoral initiatives such as The Fashion Pact or more recently, the watch and jewelry initiative 2030, which was cofounded with Cartier. And finally, we consider innovation is an essential lever for the sustainable transformation of our model. By collaborating with more than 225 start-ups, by contributing to create innovation hubs dedicated to materials and jewelry to identify test and deploy revolutionary solutions with a clearing generation awards through which we can support in China, in Japan and now in the Middle East and North Africa, the best local startups and the most promising young talent. And finally, we explore new models through investments made through Kering Ventures. Our houses themselves are increasingly creative. A few examples. Boucheron for instance, reinvented the jewelry case with new boxes based on just 2 natural materials, namely aluminum and wool felt, which reduces their weight by 75%, while getting rid of plastic altogether. Gucci is supporting farmers in their transition towards more sustainable practices with a number of dedicated projects on key raw materials such as wool, cotton and silk to increase the share of regenerative materials in their collections. Bottega Veneta is continuing to explore innovative materials with woven mycelium, which is a mycelium drawn from very low impact process, combining sustainable innovation and craftsmanship. Brioni reopened its school in Penne in Abruzzo to secure the transmission of its outstanding know-how. So what is the way ahead? Thanks to Luca de Meo, we have a very clear purpose, accelerate our transformation by integrating -- by further integrating social and environmental concerns in the group's strategy and therefore, in our decisions. Our desire is to boost the group's performance and the desirability of our brands and their products. Indeed, Customers are increasingly demanding in terms of transparency and impact, and luxury must deliver on that by being absolutely flawless. And by integrating sustainable development, we optimize our operations and strengthen the resilience of our value chains in an international environment that is unstable and complex. In order to increase our performance, we have selected 3 strategic priorities for the coming years. First, strengthen the efficiency and accuracy of our production. Luca mentioned this earlier. We are accelerating our transition towards a demand-driven production in order to have volumes that reflect sales to preserve the exclusiveness of our products and also to reduce our environmental impact. In order to achieve this, we use digital tool with highly advanced data processing. In the field, we are creating a KPI that measures efficiency between production and sales. We are developing an architecture of the collections with greater discipline, factoring in eco-design from the early onset of product design. Second priority, investments in talent, in know-how in the value chain because luxury is, first and foremost, a business driven by men and women. We shall continue to strengthen our social standards, and we shall focus on Craftsman, creative talent and sales teams, notably by developing training initiatives. I won't go into details because Luca has already told you about the Kering Academia Perenco, which will be opening at the end of the summer and that will be based in Milan. We also wish to work with preferred partners, namely strategic long-term partners within our supplier ecosystem. They will be selected based on highly demanding criteria based at group level in terms of excellence and know-how, but also in full compliance with the best environmental and social standards. Third priority, materials and models of the future. We are accelerating the use of alternative materials even more desirable that are either by source or regenerative while strengthening traceability and responsible supply. We're also developing high added value services, involved in the circular economy, repair, certified, resell or digital product passports, the so-called DPPs. These priorities come with very clear and measurable targets. We have confirmed our ambition. We wish to reach net zero by 2050 with an intermediary step of a reduction of 50% of our emissions by 2033. We are aiming for 30% of regenerative materials, 40% and 30% by 2035. And we can, therefore, reduce our dependency on leather by around 30%. This can be measured in square meters of lever per million of sales. And finally, we are committed to reach 100% traceability and alignment of our raw materials with the Kering standards. And to have a positive impact on the priority water ways in line with science-based targets for nature. As you will have understood, we are determined. We are even more strongly determined and committed to playing an important part to move forward the sustainable development agenda within the luxury and fashion sectors. With our teams across all of our houses and in close collaboration with our partners, we are continuing to face the challenges of sustainable development through creativity, pragmatism and a sense of urgency. And this often paves the way to new solutions. I would like to thank very warmly thank all of the teams who have worked hard on a day-to-day basis. their pioneering spirit continues to guide our action or ambitious action to create the luxury of tomorrow. Sustainable development is more than ever. an important lever for performance and resilience. It's indispensable if one is to create exceptional products that make people dream. It increases trust and desirability. It creates value for our customers for our group and for its shareholders. Our action plan is an essential contribution to Recon Kering our road map. Being committed to a more sustainable luxury is respecting the heritage of our houses, building on their future nourishing true luxury and investing in next luxury. Thank you for your attention. And now back to Francois-Henri Pinault.

Thank you for this brilliant presentation. Dear shareholders. Let me now tell you about the activity, the composition of the Board of Directors which, as you know, is a crucial part of our new governance based on the separation of the functions of Chairman of the Board and Chief Executive Officer. Governance in place, as you know, since September 15. The Board of Directors is, of course, fully mobilized to support this new transformation phase, a phase that requires constant rigor, consistency in action and also the robustness of the work conducted by our Board of Directors. So the quality of the Board is crucial. Over the years and with your support, we have set up a very robust Board of Directors with a lot of expertise, a diversity of expertise and the extreme quality that is there. It is deeply committed and deeply engaged and collectively works in the best interest of the group. The setup goes far beyond standards that could be expected from a control group and reflects our will to lead by example. The great value of this council is due to its hard work and see the introductions between directors themselves and the management team. So in 2025, the Board met 13 times not to mention the committee meetings, of which there were around 20. The Board took part in the structural initiatives of last year and notably the Recon Kering road map. We worked very actively to define the priorities to define the targets and to support top management in the execution of the strategy. At the same time, we provided attentive follow-up of the group's performance of all of its houses. And with a focus on the main levers, sales momentum, execution, discipline, financial discipline, and piloting of investments. It's work that takes place in an international environment. traversed by uncertainty on the commercial, political, geopolitical side, and we're, of course, closely monitoring the situation, particularly when there are impacts for the group. Our discussions with top management are regular, transparent, very fruitful. And everyone is working for the group's success. The 4 committees of the Board fully contributed to the momentum. The Audit Committee, the Appointments Committee -- and Governance Committee, the Remuneration Committee and the Sustainable Development Committee. Each of these committees worked in depth on the issues under the remit to allow the board to take well-structured decisions in these various fields. Our action is, of course, an essential foundation for the quality of our governance. Two of these committees. the compensation and benefits and the appointments and government committees are led by 2 independent directors, Madame Veronique Weill and Mr. Serge Weinberg, who is term of office is to be renewed today. Their experience and quality of their contribution are essential to this, and I would like to thank them very warmly. Veronique is the Pivotal Director, she chairs the Compensation and Benefits Committee and plays a very important part in the dialogue with institutional investors. She contributes what they have said to the Board. And this truly helps to enlighten our decisions. through the fine understanding of the medium and long-term expectations of our main investors. She also discusses with other directors on a regular basis, which, of course, improves and the quality of our exchanges and the decision-making process. As for Serge, who is in charge of the Appointments and Governance Committee, he, of course, took part in the work, which led to the change in governance and the recruitment of Luca as group CEO. His experience in Boards of major listed global groups and his knowledge of government and his outstanding career as a business leader, is extremely valuable. The 3 of our directors will be leaving the Board after this General Meeting. Maureen Chiquet, Yonca Dervisoglu, and Mr. Jean-Pierre Denis, who's decided to resign for personal reasons. I would like to thank them very warmly for the work they have put into the Board. I would like to thank them on behalf of the group and in my name. Maureen contributed an in-depth knowledge of the world of luxury Yonca told us about artificial intelligence, digital strategy. And I would also like to say a few words about Jean-Pierre due Jean-Pierre was for almost 18 years, a Director of the group. He supported us. He's extremely rigorous and demanding, particularly as Chair of the Audit Committee. He was also a pioneer in terms of commitment to sustainable development, which very early on became a part of our strategy. His personal investment at the service Kering was for our group, for my family and for myself personally, extremely valuable. And we are hugely grateful to him. I would like to thank him very warmly today. Finally, we proposed the appointment of Mrs. Marie-Helene Chenut and Laurent Kleitman who are 2 highly experienced executives in the luxury industry. They both share experience in the luxury industry and in managing prestigious brands. Marie-Helene spent more than 35 years at Chanel, where she led the hot Couture division for nearly 10 years. She held roles in marketing, talent development and transmission of know-how and expertise. Laurent Kleitman leads the Mandarin Oriental Group a leading player in the hotel -- luxury hotel industry. He has built his career with major companies, including Christian or Parati and Unilever. He brings to the Board of Directors more than 30 years of experience in both luxury beauty and consumer goods. So those appointments reflect our continued commitment to provide Kering with the governance structure that is best to do its challenges. I hope they will receive your support to dear shareholders. Thank you for your attention. I would like to invite Marie-Helene for a few introductory remarks.

Ladies and gentlemen, dear shareholders, I'm very happy and deeply honored to stand before you today. As Francois-Henri said, for over 35 years, I have held A number of operational strategic leadership roles, namely at Chanel, one of the leading houses in the luxury industry. My initial training as a doctor of pharmacy and then later a degree in business management and marketing. Let me join the Fragrance and Beauty division, where I initially held international roles in marketing and product development. This first experience provided me with fundamental values, which helped me throughout my entire careers. -- standards rigor and a constant focus on quality. I then took the role of Head of International training with the mission of supporting sales teams, to develop their expertise and improve the quality of customer relationships through innovative training programs and programs that are truly adapted to the needs of the industry. In 2011, I joined the fashion division to establish the European fashion training school. This was a truly strategic initiative within an integrated distribution network. Sales teams represent the house, but also convey the messages of the house and play a vital role in the customers' experience. Between 2017 and 2025, the end of 2025, I was responsible for Haute Couture as well as the Haute Couture ready-to-wear ateliers -- with this role, I was able to be involved in the entire value chain, from design all the way to collections, to their development and marketing, including the transmission of know-how, craftsmanship and ongoing celebration of excellence. In this world, creativity exclusivity excellence, desire, storytelling and economic considerations all combined to offer a unique and lasting experience. So 35 years, 35 years of passion, constant learning and discovery and even today, I remain driven by a true sense of curiosity, I wish to understand and ongoing passion. So if you approve my appointment to the Board of Directors, I will be committed to provide my expertise in crafts, their development and their transmission, my understanding of creative processes as well as the challenges of excellence, my expertise and knowledge of expectations of demanding international clientele. -- as well as my vision of the luxury industry, which is going through profound change with new dynamics, codes and codes that are constantly being redefined. Thank you so much for your attention.

Thank you, Marie-Helene. I would now like to invite Laurent Kleitman to introduce himself.

Mr. Chairman, CEO, ladies and gentlemen, dear shareholders, hello. I'm very pleased to be here with you today. My name is Laurent Kleitman, CEO of the Mandarin Oriental Luxury Hotel Group. I'm very pleased to share some of my experience with you. For over 35 years, my career has been guided by a single passion brands and a single ambition, which is to develop and build strong brands with a global growth strategy to create exceptional experience, enhance desirability and perhaps most importantly, to support men and women artisans, creators, managers, professionals who bring them to life. I started my career with Unilever, where I spent over 25 years, we're working in marketing and then in general management roles, both in Europe and in Asia. So that's where I became familiar with consumer goods sectors across different categories such as detergents, ice cream, especially a day like today, it would make sense to have some ice cream. -- industries where global competition is very fierce. I then joined the LVMH to lead all of its fragrance and cosmetic operations in Russia. -- as well as our Couture business. Then I went back to Unilever. -- to manage a strategic acquisition and lead its global hair care category. Then I took the management of Coty's Beauty division in New York. More recently, I spent over 4 years at the head of LVMH's largest beauty business as CEO of Parfaits. Today, I continue my career in the luxury industry, but on the experiential side, leading the transformation and global expansion plan of Mandarin Oriental which is a leading player in a rapidly growing luxury hospitality company. With 46 properties to date, we're able to double our business in the medium term. And I live in Hong Kong, which is a location that really broadens my global perspective on luxury and new technologies. In Hong Kong, I also act as France's foreign trade advisor. I'm also Director of Her Harklinikken, which is a holding company of Harry Clinigen, which is a Danish startup company specializing in hair care. Last but not least, as a graduate of NEOMA I'm deeply committed to this very prestigious business school, and I'm serving on its Board of Directors of its foundation as a matter of fact. Their mission is to support academic excellence create ties with the business world and ensure social inclusivity and diversity in its recruitment. I'm deeply honored to join if you give me the opportunity to do so, the Board of Directors of Kering Group, whose brands are reknown around the world. I hope I can give you my international contemporary expertise shaped by more than 30 years in the luxury industry, consumer goods and service brands. I wish to offer the Board with my experience in the development and brand transformation, combining respect for heritage, desirability, innovation as well as the culture of excellence and execution. My career also allowed me to develop deep understanding of luxury client. They're evolving expectations regarding creativity, service, the search for meeting and experience. I would like to extend my warmest thanks to both Francois-Henri and Luca de Meo for their trust, and I hope dear shareholders that I can also count on yours. Thank you.

Thank you, Laurent. Over to Veronique Weill who is now going to present the compensation of corporate officers.

Thank you, Francois-Henri. Good afternoon, ladies and gentlemen, dear shareholders. It is my responsibility to present to you the work of the Board of Directors and the Compensation Committee, which I have the honor of sharing regarding the compensation of corporate officers in which you are asked to vote. The past year marked an important milestone, which was characterized by the implementation of a new governance. 2026 has been -- is a year of strategic transition with the implementation of the -- of ReconKering the ReconKering plan. In this context, you are asked to vote on 7 resolutions covering both fiscal year '25 and the policies applicable to 2026. Resolution 8 concerns information regarding the compensation of corporate officers for 2025 as presented in the company's universal registration document. Resolutions 9, 10, and 11concern the compensation of executive officers for 2025, which is a year which covers 2 periods of governance. With regard to the Chairman and Chief Executive Officer, his compensation has been prorated through September 14. It includes a fixed part of EUR 845,000 and an annual variable part of EUR 448,000. In addition, there is a payment of EUR 2.3 million under a previous multiyear plan, which will be fully settled in 2026. For the Chief Executive Officer, who took office on September 15, compensation for this period amounts to EUR 651,000 in fixed pay and EUR 1.21 million in variable pay, reflecting the full achievement of the objectives assigned. These objectives enabled transformative changes for the company with the establishment of a new organizational structure with 2 sectors of excellence, industry and client, the establishment of a jewelry business and the reinforcement of Gucci's governance around a new management team. Meanwhile, major decisions were made to reinforce the company's strategic and financial flexibility and in-depth work with teams and partners have allowed us to develop a new strategic road map, which was presented back in April. Finally, this appointment was accompanied by the payment of a specific compensation package of EUR 20 million. 75% cash, 25% in performance shares, intended to compensate the new CEO for a potential lost earnings resulting from his resignation from his previous employer. With regard to the Chairman of the Board of Directors, his pro-rated fixed annual compensation amounts to EUR 207,000, excluding any other form of compensation related to this position. He also received a partial payment of the performance shares that had been granted to him in 2022. I would now like to move on to the compensation policy for 2026. The structure applicable to this CEO remains unchanged and, again, is largely based on the company's performance with nearly 90% of compensation being variable. It includes a fixed component of EUR 2.2 million, an annual variable cash component ranging from 0 to EUR 6.6 million, depending on results and a long-term variable component in the form of performance shares. So this structure reflects a very simple logic. -- we want to make compensation a direct lever for strategy execution. The annual variable component is 60% based on financial targets. ROCE and EBIT with a performance threshold below which no compensation is paid for this specific component. The remaining 40% is based on strategic priorities. -- the implementation of the industry and client divisions as well as the Jewelry division. Enhanced desirability of the houses and equal pay between men and women. Long-term compensation is assessed over a 3-year period. and combines financial criteria, stock market criteria, including TSR, which measures the total shareholder return as well as strategic criteria related to the company's climate trajectory. -- and diversification of the nature of its business. This is supplemented by benefits in kind and by the mechanisms governing the termination of employment, which remain unchanged. With regard to the Chairman of the Board, the policy remains unchanged with fixed annual compensation of EUR 700,000 growth, which constitutes its only and sole component. Finally, directors' compensation also remains stable with a total budget of EUR 1.4 million, 60% of which is contingent upon attendance. Ladies and gentlemen, dear shareholders, the proposals before you reflect the consistent approach. We want to closely align compensation with performance and the creation of sustainable value for the company. The aim is to establish a framework that is both clear, demanding, and motivating. -- to support the company's ambitions. Thank you for your attention.

Thank you, Veronique. Over to Mrs. [indiscernible] the Deloitte firm who is going to tell us about the conclusions of the college of auditors.

Thank you, Mr. Chair. Greetings to all shareholders on behalf of PricewaterhouseCoopers and Deloitte, I have great pleasure in reporting on our proceedings for fiscal year 2025. I shall not read out everything in detail. but I shall tell you about the key highlights. We have issued reports about the verification of Kering SA annual accounts and the consolidated group results at December 31, 2025. Our mission is to provide reasonable assurance that the accounts are sincere that they do not include significant errors that they apply accounting principles that they comply with all applicable legislation. We audited the group's main subsidiaries everywhere in the world our due diligence was adapted to Kering's organization to its specific features to the risks identified based on criteria that are both quantitative and qualitative. This was conducted both on the accounts and on the internal control processes and we covered current operations as well as exceptional events in the year 2025, for instance, with the change of scope and strategic partnerships with L'Oreal and the disposal of Kering Beaute the refinancing of real estate assets. Two points were judged particularly significant and required attention. First, the loss of value tests made on spreads of acquisition and brands, which account for a large part, almost 30% of the consolidated balance sheet. The second one was for the depreciation in the evaluation of inventories, which features in the balance sheet. -- in the amount of EUR 1.4 billion. As for the accounts -- the annual accounts of Kering SA, we particularly noted the evaluation of equity in the assets of the balance sheet for a net value of EUR 15 billion. We examine the main judgments underlying the evaluation checked that the information was adequate. We also strove to examine the management report presented by the -- to the Board of Directors, notably with the financial and accounting information, information about compensation and benefits for the corporate officers and those that regard corporate governance. We had regular discussions both with the Audit Committee and the Board itself -- and therefore, we had been given all necessary resources to conduct our mission, and we issued an unreserved certification both for the annual accounts for the mother company and that of the group. So again, for the ordinary part of this meeting, we issued another report about the regulated agreements that feature in the universal registration document. No new -- no such a new agreement has been signaled. So -- there is just that for the provision of services provided by Artemis to the benefits of the group in the amount of EUR 5 million for the year 2025. And finally, -- for the resolutions about the company's share capital, we issued 3 reports which feature on Page 72, 73 and 74 in the convening documents you received. These concern the authorizations or delegations of confidence to be granted to the Board of Directors to conduct a number of operations that have effects on the share capital and benefit of the group staff. We have no further observations, although this falls under the conditions that the law wants and in order to allow you to appreciate the waiver of your preferential subscription rights. We also issued a certification report for information about sustainability. Our work consisted in providing limited assurances about three specific points. First, the compliance of the process implemented by the group to determine information, find information in the field of sustainable development. in line with the ESRS (European Sustainability Reporting Standards), the compliance of these standards in the publication of the information in the management report and the respect for publication duties of information. based on our verifications. We have identified no significant errors, omissions, or inconsistency. That is, ladies and gentlemen, my report. Thank you for your attention.

Thank you, ladies and gentlemen. Before we move on to the question-and-answer session, I would like to thank the Kering team who prepared this annual meeting. I would like to thank our auditors at Deloitte, who have worked with us with great professionalism and rigor for more than 30 years. And who -- there will be a vote on their replacement at the end of this annual meeting. So before we move on to the Q&A, Eric Sandrin.

Yes, indeed, we're now going to move on to the Q&A session. Before we begin, let me state that we have received a number of written questions, questions in writing. One from the FIR, the Fund for Responsible Investment, which sent a number of questions about environmental, social and governance topics to which we answered in writing. And our written answer was uploaded to the company's website prior to this meeting. We have also received 2 questions in writing from individual investors about the difficulties these individuals have encountered due to construction in a real estate asset, which shall be housing one of our -- one of the group's Maison. So although these persons are shareholders, these are questions about their own personal situation, and therefore, do not fall under the scope of this general assembly. Of course, we understand their concern and we have made sure that persons in charge had indeed made contact with these individuals who are shareholders in order to provide the best possible support in the pretty serious situation in which they are notably in their discussions with the company that is currently still the owner of the property and in charge of construction. All of that said, before we open up this session, the only persons who can ask questions are shareholders themselves. To make the debate easier, of course, try to be brief, but please state your name and the number of shares that you hold. You may now ask your questions. Simply raise your hand to ask for the microphone.

Thank you, Brian Suven Ing. I just hold one share. I am deeply honored to be taking part in my first general meeting of Kering. And it's a great honor to be talking to you directly, Mr. Pinault, Mr. De Meo. I have a couple of brief questions. First one about the partnership with L'Oreal, Will that partnership change over time? And then my second question is about the share price, which is still very low. It is obviously undervalued. Do you intend to conduct share buybacks under Resolution 18 to support the share price. And then this is not really a question. It's a request. Can I take a selfie with you later on with Mr. Pinault and Mr. De Meo later on.

Shall I answer the final question. Certainly, with great pleasure perhaps Luca can answer your first question. And Armelle the other one about the share buybacks. Well, in fact, we are in a phase where we are kicking off operations for the brands that are part of the agreement scope. As you know, we have talked about that before. There's an opportunity created by the deal to expand our collaboration to a neighboring category, which is quite significant, namely wellness and longevity. So we're going to need to start to activate the project. Things are going pretty well. They're one of the best, if not the best partner in that field. And we have a lot of dreams in common and I want things to happen.

For the share buyback, our priority in executing the ReconKering plan has always been very pragmatic. We may again consider resorting to that when the conditions are met. What about the photograph, I don't know.

Thank you, Armelle. Number 9.

Hello, Jean-Fred Laurent, individual shareholder. I bought my first Kering shares in French Francs, in the previous century, the company was called [indiscernible]. Yesterday, the share closed at EUR 250.4 , plus 4.44%. EUR 354.20, EUR 160.16 those were the extremes of the year. In March 2022 Investir, the magazine said that last year, Apple launched a division by 4 of its share capital. A few weeks ago, Alphabet said it was dividing it by 20. Amazon is considering the same operation for May. A survey by Bank of America on split made since 1980 shows that the divided shares beat the index, the S&P 500. In May 2022, Benoit Potier, Chairman of Air Liquide said that it would be desirable to reduce the average age of shareholders with a share at EUR 160, that's a high individual share price. I think that for EUR 250, I will keep my shares but not buy any new ones. Do you think you could divide the shares, split the shares to boost the share price?

Yes, I bought my own shares in Francs, obviously. So you're not the only one. Jean-Marc?

Thank you, sir, for your question, which is rather technical. We do not intend to split the shares in the medium or short term because when -- if you split the share price and make it more affordable in a sense, but you're talking about essentially American tech giants, which have reached huge valuations. But splitting the shares creates more dynamics, obviously, a better circulation. In this particular case, nothing seems to indicate. It's interesting, what you're saying is interesting, but nothing seems to indicate that there's a problem of liquidity of the share. Trading of the share has not really very much varied. There's a lot of trading. All of that requires a lot of technicalities notably in conducting general meetings and so on. And as Francois-Henri and Luca just explain the priority for us is the ReconKering plan, and all of our energy will be dedicated to that. Quite obviously, when the share price well, I never bought share prices in French Francs, although I was already born in those days, but the share price was much higher. And at the time, we had thought about splitting it. But EUR 250 at the current share price is really not encouraging us to do that.

Thank you. Question on the right number 8.

[indiscernible] I hold one share. I have 3 short questions. First, could you give us an estimate of the number of job cuts that are going to happen with the closure of around 100 doors. Just an estimate perhaps. I mean, globally, not just in France because of course, you have doors all over. Second, I was very fortunate to attend your Capital Markets Day that was fantastic. And to talk with investors who were somewhat disappointed. Of course, they are very much impressed by a lot of things, but they were expecting Mrs. Belletini, that she would explain her concept for Gucci doors because when you renew, renovate a point of sale with a new concept, it often boosts revenue, so perhaps you could tell me a little bit more about the Gucci store concept. When will it be revealed? And then my third question. First of all, congratulations on choosing Mr. Laurent Kleitman, who is at the helm of a fantastic company where, in fact, myself organized an event ones. Should we expect a Gucci Hotel or Saint Laurent hotel because many brands are thinking about expressing their spirit in hospitality, it's very much the trend at the moment.

Thank you. Over to Luca. I wonder if he's going to answer.

Three things on jobs I'll let you do the math. If you look at the number of employees, each store has, you can multiply by the reduction in the number of stores, which we have very clearly stated, including during the Capital Markets Day. So it's around 25% of doors globally. We have also said that this year, we would reach 100 closures. It was 75 last year. So I'll let you do the math with a caveat. In retail, we have around 25%, 30% turnover a year. So it's a pretty fast-moving environment. People change brands, people change jobs, people change sectors. The big challenge for us, of course, naturally, loyal and to there are 25%, 30% of the sort of natural attrition. So there could actually be 0 impact on jobs. But the big challenge is to retain the best, those who are the most loyal and to put them in remaining points of sales that are high performance. So what we're trying to do is to, of course, keep the impact in terms of job cuts to a minimum. So I'm not really -- it's not really a concern for us. As for the Gucci store concept. I don't think there's very much to explain. I think you just need to see them. And I would say that the good news, as I was saying in my introduction is that as part of the ReconKering plan, there is, of course, a kind of a reengineering of retail, but also a lot of money has been put into renewing the stores. At least 2/3 of the stores will be renovated. And I believe that Gucci -- at Gucci will probably be even more. Sometimes it's just refurbishment. Sometimes we -- the store moves location or sometimes the entirely new stores. What I really want to do is that, of course, the concept that we're discussing with Francesco with Delma, with others. These stores need to express the brand's values first and foremost, to elevate the level of quality perceived as we determined to reposition Gucci in the place it deserves. And interestingly, we are going to be very much focusing on defining the store layout in order to accommodate all of the new business segments, we're trying to grow and that they're in the plan. And one example, if we do jewelry at Gucci, very clearly, there's a huge opportunity to really have part of the store dedicated to the jewelry. You need to have secure doors, you need to have a reserved area and so on. So we're going to be very much focusing on ramping up on an upmarket move. There are a lot of stores that have a pretty outdated identity. And then the actual layout, the actual features of the store are important to maximize profitability per square meter. The hospitality sometimes brands say, why don't we do this all that Gucci San Laurent very clearly now that we have Mr. Kleitman on board, he's probably going to have -- he is obviously much more competent than I am. We might discuss that and discuss that. There might be possibilities for cooperation. I believe it's a sector that, of course, it's trendy at the moment, but -- it's a real job. It's a different job. It's not necessarily more profitable than other product categories. It depends how you do things. But we don't want all of the additional business to be dilutive. We wanted to be relutive, there's no actual French word for that, but -- and I believe that we don't want to be followers or me-toos. I think a lot of players have already embarked on that in the luxury sector. But if I were to prioritize something, I would probably dedicate the energy of our managers of our team on categories that have very high growth. Hence, our commitment to longevity and wellness and jewelry, where we have very strong foundations. All we need to do is to is to put our foot down on the accelerator.

Thank you. Okay. We're going to take question #5.

Hello. Stanislas [indiscernible]. I have 30 stocks, minus 32%. you have many more than I do. So you have all my sympathy. Thank you so much for the presentation, especially the company's strategy was very interesting and very clear. I'm a bit surprised for two reasons, and I'd like to hear you on those. You talked about India in the 6 pack. During the Hermes general assembly, India was considered as a nonpriority market for tariffs because of the tariffs, very high tariffs for luxury product imports and major distribution, retail difficulties -- what makes -- what place is Kering in a better position? And if you're successful, that would be good. But I'd like to understand how -- and likewise, in Africa and Nigeria. LVMH has an African strategy, which is focused on spirits and luxury articles, prestigious articles with an entry ticket, which is much lower than jewelry and hot good here, about EUR 50 for a bottle of champagne, which is typically the kind of products you don't have in your portfolio. So, I think it's a good idea to go there. The question is how? it's not very clear since your presentation.

Thank you for your question. Luca, would you like to pick up the question?

Well, this is a strategic discussion. I don't know if this is the right place to do so. I don't know if we really have enough time to dive into the details. I think that exploring these growing markets is interesting. And I think it reflects our interpretation and how we see luxury in the 15 to 20 years. We think luxury is going to emerge in different categories and in new geographies. So I think this moves illustrates the fact that we at Kering want to be as prepared as possible for the future world of luxury. And those countries, this country with its population and also looking at where money trends are around the planet. I think it's in our interest to operate in those countries. I think we're very modest, very humble in our approach. There will be a discovery phase, a learning curve. But if you take India, some -- there are 100 millionaires that appear every day. And they want to consume. I'm not sure the product mix product categories there will be the same as in the Western world or as in China, which is a much more mature market. Our objective is to serve customers who have a high purchasing power, no matter where they live around the globe. And I think this is really what the team must be working on. We will do so in the months to come. And hopefully, during the next general assembly, I can be more precise, more accurate as to what we intend to do at this point. I don't really want to share information, especially with our competitors.

If I may look up. I'm going to add one thing. You mentioned distribution, which is difficult in India, and it is complex indeed due to the configuration of large cities. Very fortunate -- sorry, very wealthy customers in India, travel. About 15 to 20 years ago, Mexico was a very difficult market for the luxury industry. Yet we opened stores there. Initially, they were not very profitable. Mexicans were traveling a lot. They would purchase in North America. Today, our store network is doing quite well in Mexico. So there are countries where we've been operating for a number of years, South Africa, Brazil, India, for that matter. And where Gucci is -- has been quite successful so far even, again, if the market is quite modest, customers travel they go to London, they buy in Paris. They buy in London, they go -- they travel to other geographies. Therefore, we must invest. We're going -- we have to precisely measure what the growth potential is. I'm quite convinced that these countries, these geographies are accelerating, especially with -- due to the tech industry, we're seeing a new population. They travel less than Indian millionaires. And so I think there are different opportunities, different options to distribute in India, including e-commerce. So we have to investigate those markets very closely. They are emerging markets for some of them, but they really have long-term potential. -- especially when it comes to the fact that they travel.

Thank you Jean-Marc. Let's take question #6, please.

I'm a young shareholder. I have one share and -- which I acquired about a month ago. I was very impressed, especially by the subtitles. -- very good work. I would be unable to do it. And as a matter of fact, I would actually like to meet that person just to understand how it works. I think it would be good if we could have a shareholder club to visit some of the company's sites. As a matter of fact, I've never been in this location. I think it would also be great. Some of us could attend shows, fashion shows. The Gucci fashion show, I'd love to attend, I'd like to meet new people. Why not? And I would love to take a picture with you.

Thank you for your question. [indiscernible], this site is open during the Journees du patrimoine I believe it is in September. Jean-Marc would you like to take the question?

We always wish to have a dialogue with all shareholders. And we do have visits quite recently. We organized the visit of the Hotel de Noce which is where Boucheron is headquartered, it's Place Vendome. We have our fine jewelry workshops and -- it is a place where we host visits of our prestigious customers. I think it would be a bit more complicated to have you on the fashion shows, but you can attend the fashion shows online. In terms of communication, we communicate with our shareholders in multiple ways, mainly digital. As a matter of fact, I encourage you to read the latest letter sent to shareholders, it's digital and therefore, contains a lot of content. You have access to all kinds of information and the website, our website also provides all kinds of information. There is a phone number of point 1 45 64 65 64 or [email protected]. So you have multiple opportunities to interact with the company -- at this point, we have no plans to create a shareholder's club, but this is a point which has been raised in the past. So we'll look into it. We have someone who is also in charge of Financial Communication, a new person, and we've discussed this, and as you know, the company likes to innovate. So there will be new visits. There will be additional events -- and during those events, you -- there are opportunities for everyone to interact. So we will organize many more of those, but no shareholders' club to date.

Question 8, please, on the right side.

Thank you so much. Vanessa Ruis, Hernandez. I'm a Spanish National and Colombian Spanish. I came a bit like many foreign students to France to -- with the hope to maybe join a company like Kering. I completed my master's degree. Unfortunately, I was not able to get an internship. I have some experience now and I would like to apply. And who knows? Maybe find a job. My question is the following. What are the profiles you are seeking to hire? What does it take to join Kering? And my last question is, I would also love to have a picture.

Luca or I. One share, it's Luca, 2 shares, the questions for me. But maybe you could take the question.

Yes. I don't see you, but thank you so much for asking your question. We have a lot of diversity. And we are constantly looking for newcomers. We are looking for people who are passionate, who have ambition and who are willing to be part of a new journey. we have positions in retail. And for retail, our retail employees, we have wonderful career opportunities depending on your background, depending on your education, we also have positions in communication, in finance sustainable development, sorry. And we, of course, apply local rules and regulations. And for data privacy reasons, we would like to -- for all applicants to apply online, we will -- we screen all applications we try to get back to all of them and not always favorably, but we strongly encourage younger generations to apply. It's definitely one of Luca de Meo's priority, to open the door to newcomers because you represent the customers of the future as well.

I can't tell if it's 1 or 7. 1, I believe. Thank you.

Hello, I'm a shareholder. I have -- I hold 4 shares Kering is still relatively young, relatively young luxury company. I was reading the universal registration document and ReconKering and I saw a willing to integrate with a more readable structuring around jewelry, eyewear leather goods and in the future, beauty. My question is the following. Do you want to turn Kering the leader in luxury in the next 10 to 15 years, the first integrated luxury company in the world. And do you foresee 3 complementary business, a creative model around leather jewelry and fashion, the more recurring business, generating royalties based on eyewear beauty and licensing system and a third more experiential vertical based on wellness longevity, hospitality or potentially new forms of luxury. The company is going to become more resilient. Is that what you want for Kering moving forward?

Well, thank you for your question. I think you've just captured the ambitions of the company. Luca?

Well, first of all, let me tell you that it is a pleasure to see you in person. We've been interacting by e-mail. We've had questions from you in the past. And I think that this is pretty much the mission that was assigned to me by Francois is. It is to integrate, integrate the different businesses and brands. I believe there is a lot of complementarity I have experience in different industries that are more integrated. And I think I can bring this fresh perspective with the team. So that is indeed my mission. As you can imagine, it is not something we are going to do in just a couple of weeks. -- but it's the ultimate target. I'm not going to develop the 3 categories you mentioned. What I can say is that some topics require a different approach of things. A different handling. When with Jean-Marc, we decided to create the Jewelry division. We did so because it's very different from ready-to-wear. Procurement is done differently. Many things are done differently. And I think we need to have a different approach of each division when it comes to how you view the value chain. I'm not going to reveal more because I don't want to give away the information to our competitors. What I can say, however, is my obsession is that it's important to look at things and by putting yourself in the shoes of a customer. We must be customer-centric in everything we do. we must design an organization which can meet all the requirements and all the dreams of luxury customers. It's a battle that we call share of wallet in English. I think we are at 20% to 25% of what people are willing to spend in luxury, which means there is a big gap between 20% and 100%. We need to become a company which creates enough desire and temptation in people's lives. That's the rationale. This is not philosophy. I mentioned core, this customer database, and that database is all about becoming more customer centric. Customers have to be in everything we do to generate business. Thanks for your question.

Thank you very much. Let's take question 9 on the left side.

Hello, [indiscernible] , I'm an individual shareholder. I bought shares very recently. And I'm here to discover the company. I have two comments. One for Mr. Pinault, I would like to thank you, congratulate you for creating this wonderful company. And I would like to thank Mr. Luca de Meo. Thank you for presenting your strategic plan. I wish you all the best. My question is the following. You've shared the financial results with us. And operating margin is 11-ish percent, which is not very high for a luxury company, which is something you know a lot better than I do. I just looked at the numbers of two of your big competitors, luxury companies, one has posted operating margin of 35%, another one above 40%. -- what do you think is the potential of Kering. And do you think that those numbers should be your ultimate goal?

Well, during the Capital Market Day, we were quite clear our 2030 plan is to more than double operating margin. So you do the math. This pretty much tells you where we expect to be 4 or 5 years from now. I think we are on track to do so and very much on track when you benchmark Kering with its competitors. And I would like to remind you that all Kering managers, all of them starting this year are measured. Their performance is measured on brand desirability, EBIT, which is exactly what you said. and return on capital employed (ROCE), which measures the quality of capital allocation. Those rules apply to everyone. And we've added one additional items, which is important for me. A large part of variable compensation of our staff in all brands should be connected to the company's performance. This is unprecedented because we want to create a true team spirit between all entities, all companies. Again, profitability -- is my #1 priority. And my objective is to double profitability in the next 5 years.

May I just add one quick comment. -- in the past, profitability has been very high, and we were very close to 30%, 29% says Mr. [ Duplaix ]. When you operate in a very volatile environment in industries that are very cyclical, I've asked Luca to create a much more sustainable company. when business slows down, you realize your fixed costs are very high, and that leads to deleveraging. So -- and the opposite is very true as well. when things pick up again, profitability also increases can increase very quickly -- what is important is to avoid cycles, cyclical effects. We want to have long-term sustainable profitability.

Let's take question #7, please, in the back of the room.

Thank you very much I bought a share recently when Luca de Meo was appointed because I liked what he did -- what you did at Renault. You're going to make the smart glasses. Are you going to partner with Apple, Google, like other competitors have done and how are you going to preserve Kering's DNA while embracing new technologies.

Well, I'm a little bit limited by questions of or issues of confidentiality. For our contract with Google, they will be our partner. That information is public. So I can't really tell you much more. We perceive a significant potential. There are, of course, different institutions or banks that have pretty significant estimates. But there's a great variety of estimates. So I wouldn't want to embark on a precise forecast of the potential size of the market. I can't -- it could be significant. Just a very simple point. I would say that in that particular field, it's a product that contributes to the aesthetics to the style of a person. So I don't really see how one product, as is the case in other categories, such as phones and so on. How one product on its own without a certain diversity be purchased by millions of people. Everyone wants their own glasses, different shapes of frames, different aesthetics. What is the benefit that we have independently of technology. We can provide the brands we can provide the product design. And that's what we do at Kering Eyewear. And that is one of the things that could be beneficial to our partners. I'm very sorry that I can't really dig deeper. Maybe you will have two shares next year -- and then perhaps next year, I can answer much precisely.

Question number 5.

Greetings. I am a shareholder and also a co-owner of 235 Rue Saint-Honore, where the next Gucci store will be. Mr. Sandrin you were kind enough to take our questions into consideration. Would you have five minutes at the end of the meeting to give me the contact details of the person who you say is finally going to take care of us.

Certainly, Number 8.

Greetings Mr. Chair. Ladies and gentlemen, I have 2 questions. One, which is a pretty minor question, but something that I thought rather striking. When I asked for an admission card, I receive that. And what does it say Societe Generale. So I thought it was Societe Generale a general meeting. And then in small print, Kering, why does Kering advertise for Societe Generale. Societe Generale is not a key thing. We received a document from Societe genaral. I almost could not find my admission card because I put it in my Societe Generale file. Well, for any other admission card that I received for other companies, it's always the company itself that the headline, not Societe Generale. Second one about competition. If I understand correctly, there are some Chinese companies that are also embarking in the luxury market. The Chinese, of course, very long-term plans. What do you think of this current or future presence of the Chinese in this market.

Thank you for the admission card. I think we also need to make progress. I'm very sorry if that was confusing. And we shall try to make sure that, of course, the account holder logo is smaller. But I'll tell you right on principle, Luca, about the Chinese competition. Well, I think you are discussing subject that -- my answer might be not interpreted correctly. I think there's even beyond the luxury sector fear of Chinese competition. I worked in the automotive sector, as you very well know. And China is now no longer a production base. It's also a land of innovation. They have talent, they have skills, they have technologies that they're pretty impressive. I have a feeling. Some data shows that. But in the Chinese market, there's a kind of pride in Chinese culture. -- that is going to mean that a lot of local brands are going to grow over there. I'm still not quite sure the Chinese brands will be invading other markets as happened in other sectors because I believe that luxury is very much linked to individual cultures. I would say that China has given a lot to us over the past 20, 25 years. It's a market where all major luxury groups benefited and it will remain a super-important market. Obviously, there is competition. And maybe we will have competition from over there rather than elsewhere. -- maybe they will generate excellent products. After all, that's the very principle of competition. What we did with ICICLE is also a manner for us to give back to China. And what we did with our craft initiative, where we invite young Chinese designers to understand how luxury is done in the old world. To try to regenerate and to give back to a market that has given us a lot, and it also very much boosts our credibility within the local ecosystem. But I would say that for ICICLE, for instance, I'd say it's a great company, a great business because it opens a window onto the Chinese ecosystem. It helps us to understand through them the mindset of Chinese customers, what type of ecosystem underlies all of that and what we need to do. So I mean, we're more friendly than we were a few weeks back, and it's really helping, too. It's helping our business in China. Competition is part of the gaming business. We just need to be better, and not just better than the Chinese, better than all of the others who are attacking us. It's a competitive race. It's true that with Kering, we developed a Chinese brand in China in the early 2010s. Jean-Marc had very strong ambitions there. No, it's not the first move made by Kering on that market through an acquisition. It's been done in jewelry.

Question number 6.

Yes. Hello, Mr. [ Jean De ] I have a number of questions Kering purchased a lot of real estate, which it disposed of with Ardian. There are perfumes that were disposed of with L'Oreal. The scope has changed quite significantly. And I'm thinking about fragrances with L'Oreal, the Gucci license. Have we lost money or made money on the whole in terms of the disposal of part of the scope? And then for the fragrance agreements with L'Oreal, there's an exceptional dividend of EUR 1. My question is because in the annual report, Page 479, there's around 6% of Artemis shares, around 16% of Artemis' stake because it holds 43% -- is that one of the reasons why you are handing out the dividend so quickly? And then I have another question about the general meeting of September. There are around 150 million votes. There were 2 resolutions. The first one about the compensation of the CEO. Out of the 150 million, Artemis family has 105 million, meaning that the minority shareholders is 45 million. And out of the 45 million, around 33% voted against. So I mean, that's okay, but for Resolution 2 for the comp and ben of the Chairman, 23 million votes voted against, more than 50%. So what is the Board's position about the figure, which, of course, the resolution passed. But if you remove the family, you would say that on the whole, minority shareholders voted against. How do you interpret that? Is it a sign of defiance or not? And then aren't we in the habit of buying things that are too expensive. The Renault report, Page 352, the variable compensation of Mr. de Meo, I don't know if it's Renault that was particularly cruel, but out of the 135% of variable comp and ben on the financial part, none of the criteria were met, 0% for Mr. de Meo, just a comment.

And well done for the Wi-Fi. Well, before I yield the floor to Luca, a couple of words about the real estate. I was in charge at the time. What we're talking about, all of these property purchases served to secure strategic locations in the best locations in the world. And every time we said that this was intended to be refinanced. I'll let Jean-Marc tell you about the financial impact. For beautyé, the creation of Kering Beauté happened at a time when no one was really interested in the group's licenses. I think people tend to forget. And the group's response was to say, let's create our own beauty division. We started to -- how can I put this to, as I mentioned, we started by acquiring. It's true it was expensive, but we acquired a superb brand called Creed. And after that acquisition and after the kickoff of operations at Bottega, Balenciaga, all of a sudden, we became more desirable and people came along, and this led to the deal Luca negotiated with L'Oreal, which was a great deal for the group, not just in terms of short-term financials, but also for the future of the group where we needed to reach a critical size. So that was to answer your first question. As for what happened in the general meeting of September, I can't quite remember. Eric, do you have anything to say?

Well, I understand your concerns, sir. Indeed, if you remove Artemis, the results are not the same, but Artemis is 60% of voting rights, and that's the way it is. And you're going to need to buy a few more shares if you want to compete with Artemis. That's the way things work in a listed company. Well, in any case, everything is done in full compliance with the rules of proper governance, including on the front of compensation and benefit. You don't need to worry. Maybe Jean-Marc would like to add something about real estate or compensation benefits.

Well, we've had this debate in September. What is for sure is that the governance is perfectly in place. We have a comp and ben committee, and I can assure you that the contribution of each of its members is perfectly functional. If we look at the Chairman and CEO and the questions at the time, it was essentially about the preservation of long-term shares, and we benchmarked with other CAC 40 companies who made the same decision, and we considered that Francois-Henri had been in charge of the succession plan. He had anticipated things in advance. We did not see why we should have prorated the shares. So it's one of the reasons for which the vote against was so high.

I could perhaps tell you a bit more about the real estate aspect. You even have the page number. And of course, it will not have escaped you that there were losses taken on some of these assets because as Francois-Henri said, the idea was to secure strategic locations, strategic properties, and that is protected in a sense for our brand because we have preserved our ability to have exposure in absolutely crucial locations, Fifth Avenue in New York, Via Monte Napoleone, which is the world's most expensive street in Milan and the most strategic for luxury brand [indiscernible], no comments about the importance of such location, or one near [indiscernible] to which [ Madam ] was referring. So the part of the value onboarded through these elements. And as you said, these deals were conducted with financial partners, meaning that we are exposed to 40% value creation. So we may indeed have bought it at a peak and then divested at a moment when the market was less good, but we're only exposed -- we're exposed at 40% for future value creation. So concluding that it was a bad deal is a little bit premature. Let me remind you that we also divested other assets. For instance, we had a building in Amase-Sando. The capital gains was EUR 104 million. So that's how real estate works. These are really high-quality real estate assets. And at the end of the day, we will have an ROI that might not be exceptional, but it will be pretty good, and it will've allowed us to preserve these locations. [indiscernible] asked about beauty about the acquisition of Creed. What I can tell you, and I said so, about the L'Oreal-Kering deal is that across the entire Kering Beauté deal, the group will make a profit ultimately when all of the deals will have been carried through. You talked about the fact that we included the Gucci license in the deal. I had to specify that because officially, it's not the case. The Gucci license is reaching the end of its teller in 2028, and therefore, for the time being, Gucci is not in the scope.

Number 9.

So you seem like challenges in comparisons. I have 5x more shares of one of your competitors that's on the Charlo and Lizay. Isn't there a problem with Gucci's designers? If you think about a scarf, a watch, a fragrance or a handbag, it reflects a brand image. And it's something that I don't -- I no longer find at Gucci. Shouldn't there be an iconic product at Gucci or another Kering brand that would automatically trigger desirability and bring in affluent people who would consider that it's a must-have. Is it a problem of not have -- of having a flagship or not having an iconic product?

I don't really know how to answer that. I think that's your personal opinion. Creativity is, of course, an individual matter. We consider that the designer or the designer duo, studio and designer, is one of the most experienced in the sector. It has already demonstrated its ability to grow business, and we fully support our team, and we are convinced that Gucci will return to the place it deserves. Again, everything is not entirely based on iconic products. Of course, in 2015, 2017, 2018, it's true. We did benefit from that, but it creates huge instability. It's very important. And as what [ Emma ] showed in her first collections, we need to create an iconic product base across all of Gucci to create robust foundations in order to then create products that are much more spectacular in the following collection -- subsequent collections. And that is what led us to choose Demna with -- who's been with the group for more than 10 years. Well, these aren't perceptions. These are figures. According to our figures, our data, Gucci is still the second best known brand in the luxury sector globally despite the difficulties in recent years, and it's still in the top 5 in desirability. That's a hard fact. It just needs to be turned into business.

[indiscernible]. I hold 2 shares. I have 3 questions, very brief questions. First, congratulations for the partnership with Alpine. What's the ROI expected? It's an alliance that's just emerged. I suppose the entry point was your own personal career, Mr. de Meo? Second, do you want to leave your brands in outlets? I'm thinking about La Vallee Village where Saint Laurent is and Gucci and others? And third, hospitality, there was a question about that earlier. I would have thought that to strengthen the brand image, it would be interesting to have perhaps a loyalty program for customers who -- for significant customers, perhaps that would build loyalty and perhaps they could come and discover Paris. And I think it might be interesting to look into hospitality from that angle. Yes, well Formula 1, of course, is you. I could answer all 3 of them. Hospitality, again, I think I've answered already. For the outlets, the trend and the plan that's pretty accurate will lead us to cut down our exposure to that retail channel over time, including with brands, they're going to reach almost 0 retail infrastructure. So what you can expect is a reduction in the number of outlet sales. For Alpine, of course, it's pretty obvious. I facilitated links between Kering and the Renault Group because I know everyone over there. I agree we have started the [indiscernible], but that type of decision is -- it's not a decision you take on your own. We decided that with a lot of enthusiasm from the Gucci teams because they're at work on this sponsoring platform and experience-based segment. And I would say that the world of Formula 1 has now become so sophisticated that very clearly, we have all of the data we need to forecast an ROI for this type of investment. We would never have done that if we didn't have hard evidence or a very strong sense that there would be an ROI. And then, of course, it depends whether you win or if you come in last, which is pretty complicated. But investing in Formula 1, we all know the result. It's not philosophical or abstract. I can tell you that we've negotiated for them and for us a great deal. And we have a Gucci team that is deeply convinced that this is a true opportunity for them to go out there and reach a very broad audience, but also a high-quality audience with more than 40% women, average age 32 currently. So it's become one of the very first media platform in the world, and I'm very happy that we have that opportunity. Now fingers crossed, my former friends in the Alpine team, I hope that they'll be competitive so that we were on screen all the time. Luca told us about that in the Board. And what he said was pretty striking because I'm not really well versed in the world of Formula 1. But he says, you're so soon to be surely. Formula 1 is 1 of the 5 events with the biggest audience with the World Cup finals, the Super Bowl, the Tour de France, the Olympics. But these only happen once a year -- once every 4 years, while Formula 1 is 24 times a year. And there are only 11 teams in total, no more, no less. So there're very few people in the game and very few partnerships. And then, of course, it's not just a question of visibility, although it will be very important. It's also a case and the Gucci team is working on it, to activate that and to transform that visibility into particular items that will be developed. So it is truly an outstanding opportunity that we managed to seize, thanks to Luca. The Board was absolutely delighted by yesterday's announcement.

I think we've answered all of the questions. There is one final one over there. Yes, so we need to keep the questions short if we want to have time to vote. Number 9.

Greetings. Thanks for your presentation. I am Mendez. I have 200 shares, which I own personally. It would seem that as part of the cost-cutting initiatives in the group, you wish to dispose of certain iconic assets such as the Saint Laurent townhouse, where the Couture House was created in Paris. Could you reassure us about your will to go back to the basics and values of the group's brands.

For those of you who are not familiar, it's a townhouse in Rue Spontini, where Mr. Saint Laurent's first fashion show happened in January 1962. The building was vacated by Saint Laurent in 1974. So it's a part of Saint Laurent's history, and we returned to it a few years ago with a lease. We don't own the building. A certain number of teams work there on -- with a floor space of 700 square meters. We're deeply attached to our heritage, of course. You know that we have strong links with the Saint Laurent Foundation. We are committed to heritage in the sense that it might be an opportunity for to visit it because there's a superb head office of Saint Laurent in a townhouse in the 7th arrondissement of Paris, which we contributed -- where we contributed the renovation. But it's true that at the same time, we are going to need to make efforts in terms of efficiency. And currently, Saint Laurent locations were scattered here and there, and we also want to repatriate the Saint Laurent archive that's outside Paris now to allow young designers to go and have a look. And we're going to be investing in order to allow access, but it's not 700 square meters Rue Spontini, that will do that. Of course, it's true that, that building that we just leased has -- is valuable in terms of heritage, but will probably be rationalized. And yes, the Saint Laurent team will be leaving that particular location.

Thank you, Jean-Marc. I think we've answered all questions. Let us now vote. Over to Eric Sandrin.

Thank you. Indeed, let's move on to the vote. The quorum is 80.88 -- 80.80, I'm sorry, which is sufficient for the deliberations. As in previous years, you will be able to vote using the voting tablets, which were provided upon registration. I suggest we take a look at this video to show you how to use the tablet. [Presentation]

So we will now proceed to the vote of the resolutions. The text and all the information along with the resolutions were provided before this meeting and in the information in the documents you received. I'm not going to read the resolutions in full. I will just read the main title, which is also what appears on the screen. So the resolutions are going to be voted for, the first resolution on the approval of the financial statements for the year ended December 31, 2025. Please vote. [Voting]

End of the vote. This resolution is adopted. Resolution #2, approval of the consolidated financial statements for the year end December 31, 2025. Please vote. [Voting]

End of the vote. This resolution is now adopted. Third resolution, the appropriation of net income and setting of the dividends, ordinary dividend as well as the exceptional dividend of EUR 1 per share. Please vote. [Voting]

End of the vote. This resolution is now adopted. Fourth resolution on the renewal of the term of office of Mrs. Veronique Weill as Director. Please vote. [Voting]

End of the vote. This resolution is now adopted. Moving on to the fourth -- sorry, fifth resolution, renewal of the term of office of Mr. Serge Weinberg as Director. Please vote. [Voting]

End of the vote. And this resolution is adopted. Moving to the sixth resolution, appointment of Marie-Helene Chenut as director. Please vote. [Voting]

End of the vote. This resolution is now adopted. Moving on to the seventh resolution, appointment of Laurent Kleitman as Director. Please vote. [Voting]

The vote is now closed, and the resolution adopted. Eighth resolution, approval of the information referred to in Article L22-10-9 of the French Commercial Code relating to the remuneration paid during or awarded in respect of the year ended December 31, 2025, to corporate officers. Please vote. [Voting]

End of the vote. And this resolution is now adopted. Moving to the ninth resolution, approval of the fixed, variable and exceptional components of total remuneration and benefits in kind paid during or awarded in respect of the year ended December 31, 2025 to Francois-Henri Pinault, Chairman and Chief Executive Officer, for the period from January 1 to September 14, 2025. Please vote. [Voting]

End of the vote. This resolution is now adopted. 10th resolution, approval of the fixed, variable and exceptional components of total remuneration and benefits in kind paid during or awarded in respect of the year ended December 31, 2025 to Luca de Meo, CEO, for the period from September 15 to December 31, 2025. Please vote. [Voting]

End of the vote, and the resolution is adopted. 11th resolution, approval of the fixed, variable and exceptional components of total remuneration and benefits in kind paid during or awarded in respect of the year ended December 31, 2025, to Francois-Henri Pinault, Chairman of the Board of Directors, for the period from September 15 to December 31, 2025. Please vote. [Voting]

End of the vote. The resolution is now adopted. 12th resolution, approval of the remuneration policy for the Chief Executive Officer for 2026. Please vote. [Voting]

End of the vote, and this resolution is now adopted. Moving on to the 13th resolution, approval of the remuneration policy for the Chairman of the Board of Directors for 2026. Again, please vote. [Voting]

End of the vote. And the resolution is now adopted. 14th resolution, approval of the remuneration policy 2026 for directors. Please vote. [Voting]

End of the vote, and this resolution is now adopted. 15th resolution, appointment of Ernst & Young Audit as principal statutory auditor responsible for the certification of the financial statements. Please vote. [Voting]

End of the vote, and this resolution is adopted. Moving on to the 16th resolution, appointment of Ernst & Young Audit as statutory auditor responsible for the certification of sustainability information. Please vote. [Voting]

End of the vote. This resolution is adopted. 17th resolution, appointment of Auditex as alternate statutory auditor. Please vote. [Voting]

End of the vote, and the resolution is adopted. 18th resolution, authorization for the Board of Directors to purchase, retain or transfer company shares. The maximum purchase price is EUR 700. The rest is based on legal provisions. Please vote. [Voting]

End of the vote, and this resolution is adopted. 18 -- sorry, 19th resolution, authorization for the Board of Directors to award free ordinary shares of the company, either existing or to be issued, subject as the case may be to performance conditions, for the benefit of employees and executive corporate officers of the company and related to companies or certain categories thereof entailing waiver by shareholders of their preferential subscription rights to shares to be issued. Please vote. [Voting]

End of the vote, which is adopted. 20th resolution, delegation of authority to the Board of Directors to issue ordinary shares reserved to our employees, former employees or eligible corporate officers who are members of an employee savings plan with shareholders' preferential subscription right waived in their favor, only to be used outside of public offer periods. Please vote. [Voting]

End of the vote. This resolution is now adopted. 21st resolution, extraordinary resolution, delegation of authority to the Board of Directors to issue ordinary shares reserved for named categories of beneficiaries with shareholders preferential subscription rights waived in their favor only to be used outside of public offer periods. Please vote. [Voting]

End of the vote. This resolution is now adopted. The 22nd resolution, ordinary resolution, powers for formalities. Please vote. [Voting]

End of the vote, and this resolution is now adopted. Over to you.

All proposed resolutions have been adopted. So on behalf of the Board of Directors, I would like to thank you once again for attending this assembly. Before you leave, I would like to inform you that when you return your voting tablets, you will receive 2 tickets to the books to commence, they're skip-the-line tickets. They will allow you to discover or rediscover a beautiful site of Paris where there currently is a wonderful exhibition called Clair-obscur. This is the end of the session. I will see you -- we will see you again for the -- for another general meeting. Thank you, and bye-bye. [Statements in English on this transcript were spoken by an interpreter present on the live call.]