Distribution in kind of PUMA shares

DETERMINATION OF PUMA FRACTIONAL SHARE PRICE
Information as of June 8, 2018

Following the sale of PUMA fractional shares, the corresponding PUMA share price is set at €514.72.
On June 8, 2018, the financial intermediaries will receive the cash proceeds from the sale of the fractional shares, and will then be able to transfer the cash amount to which each of their shareholder clients is entitled.

Message from the Chairman and CEO

In early January 2018, we announced our intention to distribute the bulk of our stake in PUMA to Kering shareholders, subject to their approval at the Annual General Meeting.
We have an extremely robust financial structure and generate very strong levels of cash flow.
We considered it only fitting, therefore, that Kering shareholders, who have supported us throughout the years of PUMA’s recovery, should benefit directly from the brand’s significant potential. PUMA’s growth trajectory is only just beginning.
Newly focused on our core assets, we will increase the attention and resources we give to our Houses, allowing them to further amplify growth and value creation.

Distribution - key principles

On 11 January 2018, Kering’s Board of Directors unanimously proposed to submit to its shareholders the project to distribute in kind around 70% of PUMA total shares outstanding, out of the c.86% currently owned by the Group.
Terms of the distribution in kind of PUMA shares will be submitted to the vote of Kering shareholders at the Annual General Meeting on 26 April 2018.
Should the Annual general meeting approve the distribution, PUMA’s share capital will break down as follows :

PUMA Shareholders(1)


(1) Based on the number of outstanding PUMA shares. Artémis held 40.9% of Kering’s share capital at December 31, 2017. Rounded data.

By paying a stock dividend corresponding to 70% of outstanding PUMA shares, Kering is establishing its positioning as a pure player in Luxury, with a higher-margin profile. The payment of a stock dividend in the form of PUMA shares will also allow our shareholders to benefit directly from future value creation at PUMA. 

Kering, a Luxury pure player

Kering is setting the trend, purposefully shaping the Luxury of tomorrow, a Luxury that is more responsible and more in tune with our times while remaining true to the exceptional history and heritage of our Houses.
Our ambition is to be the world’s most influential Luxury group in terms of creativity, sustainability and economic performance. Based on a long-term vision, our multibrand model relies on agility, balance and responsibility.
Our Luxury brands are at various stages of maturity, which is the source of the Group's strength as well as its potential: while our firmly established Houses continue to build strong ties with an ever broader range of customers, our emerging brands are growing by conquering new territories.

PUMA, becoming the world’s fastest sports brand

For 70 years, PUMA has been producing the most innovative products for the fastest athletes on the planet. It has established a reputation in Performance categories such as football, running and training, golf and motorsports.
PUMA’s Sportstyle products are designed for both men and women in search of a style inspired by the brand’s sporting roots but suited to everyday wear.

Under the direction of a new management team since 2013, PUMA has continued to roll out Forever Faster, a business plan aimed at enhancing the brand’s appeal, offering a range of innovative new products, developing a leading range for women, and improving distribution quality and organizational agility in terms of product development, procurement and market launch.
Thanks to the determined and consistent execution of this strategy, significant progress has been made, resulting in a swing back to profitable growth.

2017 revenue (1) 2017 operating
income (1) 
2017 operating
margin (1)
Market capitalization
as of 12/31/2017
€4.1bn €244.6m 5.9 % €5.5bn
up 14.0 % on a reported basis up 91,7 % on a
reported basis
   
up 15.9% at comparable exchange rates      

(1) Figures published by PUMA

The PUMA share is listed on the Frankfurt and Munich stock exchanges.
More information about PUMA: http://about.PUMA.com/en

Terms & conditions

Payout calendar

(1) An interim dividend of €2.00 per share was paid on January 17, 2018.
(2) The timing of the cash payment for fractional shares will vary according to the shareholders’.

Dedicated hotline and Letter to shareholders

PUMA share distribution hotline is available until June 29, 2018: + 33 (0)8 05 650 660 (Calls free of charge from a fixed line in France)

Letter to shareholders
February 2018

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Q&A

1 | Will Kering and its shareholder Artémis be PUMA shareholders?
Kering is confident in PUMA’s potential and will retain c.16% of PUMA’s share capital. Kering can benefit from the future potential for value creation at PUMA. Upon distribution of the stock dividend, Artémis will become PUMA’s leading shareholder with c.29% of its share capital.
Kering and Artémis have undertaken to hold their PUMA shares for six and twelve months, respectively.

2 | Why is PUMA not just being sold outright?
A stock dividend in the form of PUMA shares is the simplest and most efficient way to ensure that all of our shareholders benefit from the value created by both a leader in Luxury and a leader in Sport & Lifestyle.

3 | I hold 21 Kering shares. How many PUMA shares will I receive?
You will be entitled to 1.75 PUMA shares for your 21 Kering shares. Consequently, excluding tax and social security deductions, 1 PUMA share will be delivered to you and you will receive a cash payment for the undelivered 0.75 PUMA share. You will not be able to buy fractions of PUMA shares to make up a whole share.

4 | How can I avoid a cash payment for fractional shares?
If the number of Kering shares you hold is a multiple of 12, the stock dividend in the form of PUMA shares will not give rise to any fractional shares.
If the number of shares you hold is not a multiple of 12, the stock dividend will not represent a whole number of PUMA shares. The number of PUMA shares you will receive will be rounded down to the nearest whole number, and you will be compensated for any fractional shares by a balancing cash payment made by your financial intermediary. The amount of the balancing cash payment will be calculated in proportion to the net selling price of the fractional PUMA shares on the market.

5 | How much are fractional shares worth?
The net value of fractional shares will depend on the value of the PUMA share upon the sale of undelivered shares.

6 | What tax treatment applies to the stock dividend in the form of PUMA shares?
The stock dividend in the form of PUMA shares will be treated for tax purposes as a payment of dividends to Kering shareholders. Accordingly, it will be subject to the same tax treatment as a cash dividend.

The value of the stock dividend for tax purposes will depend on:
— the opening price of the PUMA share on the date the stock dividend is paid; and
— any cash payment received for fractional shares, before tax and social security deductions.

The balance of the ordinary cash dividend amounting to €4.00 per share, paid at the same time as the stock dividend in the form of PUMA shares, will allow financial intermediaries to deduct the appropriate statutory withholdings, taxes and social security contributions.
If the withholdings applicable exceed the balance of the ordinary cash dividend, financial intermediaries may deduct the amounts due from their clients’ cash accounts or call in the additional payments required.
We recommend that you contact your financial intermediary.

7 | What do I need to do in respect of this stock dividend?
Excluding taxes and social security contributions due on the stock dividend:
— if you hold shares in bearer or administered registered form, you do not need to do anything in order to receive your PUMA shares and any cash payment for fractional shares;
— if you hold direct registered shares, you must choose a share account into which the PUMA shares will be paid and provide CACEIS Corporate Trust with details of this account in accordance with the procedure set out in a note to be sent by CACEIS Corporate Trust in mid-May 2018.

Where appropriate, Kering shareholders should discharge their tax liabilities in respect of the stock dividend in the form of PUMA shares. Failure to do so within the time indicated by your financial intermediary could lead to your PUMA shares being unavailable or even to some or all of your PUMA shares being sold in order to discharge those liabilities.

8 | Will a dividend for 2017 be paid on the PUMA shares delivered?
No. The PUMA shares delivered will be ex-coupon. The PUMA dividend for 2017 will have been paid in April 2018.

9 | Are PUMA shares listed on the Paris stock exchange?
PUMA shares are listed on the Frankfurt and Munich stock exchanges. They are traded in the Standard Prime segment and form part of the German stock exchange’s SDAX index.
You can place your stock exchange orders via your financial intermediary. Note that the ISIN code of PUMA shares is DE0006969603.

Link to the detailed press release

Press release
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