I/ Financial analysis exercise

Calculate Kering's economic profitability and return on equity in 2009. You will take a corporate tax rate of 30%. You will treat provisions, deferred taxes, other assets, and other liabilities as items in the BFR. Specify if there is leverage or club effect;

Consolidated income statement - Kering In C million 2003 Sales Cost ot' salcs 15 306 (3 481) Gross margin Commercial expenses Administrative butuletis 9825 (5 364) (1 289) Profit from recurring operations Other operating income and expenses 3 172 (120) Operating result Cost of tinancial debit Other firuriciul income and charges 3 052 (173) 120 Financial result Taxes on profits Share in the results of cquity companies Net income (53) (817) X 2 160 Consolidated balance sheet - Kering as at 31 December In million 2009 ACTIVE Brands and other intangible assets.net Acquisilivri devialioms, nel Tangible capital asscts, net Equity investments Financial investments Other non-current assets Teferred Laxes l'ixed assets Slacks and outstaticlitigs Imdc rcccivables and linkod accounts Income taxes Other Cumeni ascis Cash and cash equivalents Current annet TOTAL ASSETS 8 227 1537 5173 126 501 6.58 395 19 620 4383 1 461 SIZ 1 587 1 222 9165 28 785 In million 2009 LIABILITIES AND EQUITY Cupital Premiums Self-held I. VMI shares Revalualiun teserves Otlicr rcscrvations Conversion deviations Nct incom Iquity group share Minority interest Equity Long-term linicial deht Provisions for more than one year Deferred taxes Olhet TICIN-CUT CTIL liabilities Non-current liabilities Shon-Ictin litigital dehi Suppliers and related accounts Income taxes Provisions leys than one year old Other current liabilities Current liabilities TOTAL LIABILITIES AND EQUITY 147 1 736 (1019) 917 7062 (119) 1 879 10 6113 991 11 594 3235 983 2 862 3755 10 835 2 100 1 899 692 255 1 410 6356 28 785