GROUP PRESENTATION February 2016 ABOUT LVMH COMMITMENTS KEY FIGURES GOVERNANCE FOREWORD A FAMILY-RUN Group, LVMH is led by BERNARD ARNAULT since 1987. LVMH strives to ensure the long-term development of each of its 70 HOUSES in keeping with their IDENTITY, their HERITAGE and their EXPERTISE. The LVMH group is the ONLY GROUP present in all FIVE MAJOR SECTORS of the luxury market: Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry and Selective Retailing. In 2015, LVMH represents: €35.7 120,000 3,860 BILLION IN REVENUE EMPLOYEES STORES THE LVMH SPIRIT The LVMH group brings together truly EXCEPTIONAL HOUSES, each of them creating products that embody unique SAVOIR-FAIRE, a carefully preserved HERITAGE and a dynamic engagement with MODERNITY. These creations make our Houses AMBASSADORS OF A DISTINCTIVELY REFINED ART DE VIVRE. LVMH has successfully preserved a FAMILY SPIRIT that places priority on a LONG- TERM VISION. The Group’s vocation is to ensure the DEVELOPMENT of each of its Houses while respecting their IDENTITIES and their autonomy, providing the RESOURCES needed to create, produce and market their products and services through carefully selected channels. THE LVMH SPIRIT The THREE FUNDAMENTAL VALUES articulated by Bernard Arnault when the Group was created are shared by every member of LVMH. Those three imperatives constitute the pillars of our PERFORMANCE and LONG-TERM SUCCESS. BE CREATIVE AND DELIVER CULTIVATE AN INNOVATIVE EXCELLENCE ENTREPRENEURIAL SPIRIT Creativity and innovation are part of our DNA. Over At LVMH, we never compromise on quality. Because LVMH has an agile and decentralized organization the years, they have ensured our Houses’ success we embody the world of craftsmanship in its most that encourages efficiency and responsiveness. It and established their legitimacy. This combination of noble and accomplished form, we pay meticulous stimulates individual initiative by entrusting each creativity and innovation is the foundation of our attention to detail and to perfection. From products to person with significant responsibilities. Our Houses and stands at the heart of the delicate service, we cultivate our difference through this entrepreneurial spirit encourages both risk-taking balance required to continually renew our offer while constant quest for excellence. and perseverance. It requires pragmatic thinking and resolutely looking to the future, always respecting our an ability to motivate teams, leading them to achieve unique heritage. ambitious objectives. THE LVMH MODEL The world leader in luxury, LVMH has deployed a business model marked by DYNAMIC GROWTH since its creation in 1987. “Our business model is anchored in a long-term vision that builds on the heritage of our Houses and stimulates creativity and excellence. This model drives the success of our Group and ensures its promising future.” Bernard Arnault THE LVMH MODEL LVMH has developed a UNIQUE OPERATING MODEL anchored by SIX PILLARS: DECENTRALIZED ORGANIZATION Our structure and operating principles ensure that our Houses are both autonomous and responsive. ORGANIC GROWTH The LVMH group commits significant resources to develop its Houses, as well as to encourage and protect creativity. VERTICAL INTEGRATION Vertical integration fosters excellence both upstream and downstream. CREATING SYNERGIES Sharing of resources on a Group scale creates intelligent synergies while respecting the individual identities. SUSTAINING SAVOIR-FAIRE LVMH and its Houses have developed forward-thinking initiatives to transmit savoir-faire. BALANCE ACROSS BUSINESS SEGMENTS AND GEOGRAPHIES A UNIQUE HERITAGE Wines & Fashion & Perfumes & Spirits Leather Goods Cosmetics 1365 LE CLOS DES LAMBRAYS 1846 LOEWE 1828 GUERLAIN 1593 CHÂTEAU D’YQUEM 1854 LOUIS VUITTON 1916 ACQUA DI PARMA 1668 DOM PÉRIGNON 1895 BERLUTI 1947 PARFUMS CHRISTIAN DIOR 1729 RUINART 1924 LORO PIANA 1957 PARFUMS GIVENCHY 1743 MOËT & CHANDON 1925 FENDI 1972 PERFUMES LOEWE 1765 HENNESSY 1945 CÉLINE 1976 BENEFIT COSMETICS 1772 VEUVE CLICQUOT 1947 DIOR 3 1984 MAKE UP FOR EVER 1815 ARDBEG 2 1947 EMILIO PUCCI 1988 KENZO PARFUMS 1832 CHÂTEAU CHEVAL BLANC 1952 GIVENCHY 1991 FRESH 1843 KRUG 1970 KENZO 2007 NUDE 1843 GLENMORANGIE 2 1984 THOMAS PINK 1858 MERCIER 1984 MARC JACOBS 1951 WENJUN 1984 DKNY 1959 CHANDON 1 2004 NICHOLAS KIRKWOOD 1970 CAPE MENTELLE 1 2005 EDUN 1977 NEWTON 1 1985 CLOUDY BAY 1 1993 BELVEDERE 1998 BODEGA NUMANTHIA 1 1999 CHEVAL DES ANDES 1 1 : part of Estates & Wines 1 1999 TERRAZAS DE LOS ANDES 2 : part of The Glenmorangie Company 3 : Dior is one of LVMH’s indirect shareholders A UNIQUE HERITAGE Watches & Selective Other Jewelry Retailing activities 1780 CHAUMET 1852 LE BON MARCHÉ 1817 COVA 1860 TAG HEUER 1870 LA SAMARITAINE 1849 ROYAL VAN LENT 1865 ZENITH 1897 FRANCK & FILS 4 1860 JARDIN D’ACCLIMATATION 1884 BULGARI 1958 STARBOARD CRUISE SERVICES 1908 GROUPE LES ÉCHOS 1936 FRED 1960 DFS 2006 HÔTELS CHEVAL BLANC 1980 HUBLOT 1969 SEPHORA 2010 NOWNESS 2001 DE BEERS DIAMOND JEWELLERS 1978 LA GRANDE ÉPICERIE 4 4 : part of Groupe Le Bon Marché ABOUT LVMH COMMITMENTS KEY FIGURES GOVERNANCE Fondation Louis Vuitton © Iwan Baan A COMMITTED GROUP Initiated in 1990, our corporate philanthropy program supports arts and culture ART & CULTURE by sharing a passion for artistic disciplines and creativity with the widest possible audience. LVMH has for the past 20 years anticipated and adapted production ENVIRONMENT processes, habits and behaviors, working each day to find better solutions to the many environmental challenges our industry faces. LVMH is committed to exemplary social responsibility. This commitment is SOCIAL RESPONSIBILITY based on the fundamental principle of respect for people, and on making excellence a lever for social and professional inclusion, in solidarity with our host communities. LVMH has pursued dynamic momentum since its creation, expanding in particular in international markets. The Group’s performance is a source of ECONOMIC FOOTPRINT economic development, employment and innovation everywhere its Houses are present. We believe that philanthropic initiatives in support of those most in need CORPORATE PHILANTHROPY constitute a fitting way to give back to a society that has enabled our Group to thrive. A COMMITTED GROUP 3 1 2 7 4 5 6 1 The Fondation Louis Vuitton 2 The LIFE environmental program 3 The HQE® certified Louis Vuitton Drôme Workshop 4 The signature of « Women’s Empowerment Principles » 5 The Hélios perfumes and cosmetics research center 6 Loewe’s leather goods training school 7 The Journées Particulières 8 The LVMH RISE program 9 The jury of the LVMH Prize for Young Fashion Designers 8 9 THE FONDATION LOUIS VUITTON Initiated by Bernard Arnault in 2006, the Fondation Louis Vuitton in Paris opened to the public on OCTOBER 27, 2014. The Foundation embodies the myriad actions taken by the LVMH group over the past 25 years in SUPPORT OF ART, CULTURE AND HERITAGE. With its forceful impact and unique, groundbreaking design, the building created by Frank Gehry is itself the FIRST ARTISTIC STATEMENT by the Fondation Louis Vuitton. In addition to its permanent collection, the Foundation commissions works from artists and organizes temporary exhibitions of modern and contemporary art, along with multidisciplinary installations. The Fondation Louis Vuitton project has adopted an exemplary environmental approach and was chosen as a PILOT PROJECT for new HQE® (High Environmental Quality) guidelines applicable to cultural buildings. Fondation Louis Vuitton © Iwan Baan ABOUT LVMH COMMITMENTS KEY FIGURES GOVERNANCE Louis Vuitton Spring/Summer 2015 fashion show, Fondation Louis Vuitton, Paris © Louis Vuitton / Grégoire Vieille KEY FIGURES (2015) N° 1 WORLD LUXURY LEADER 70 HOUSES 120,000 EMPLOYEES €35.7 BILLION IN REVENUE 3,860 STORES KEY FIGURES Euro millions 2014 2015 Revenue % var 30,638 35,664 +16 % Profit from recuring operations 5,715 6,605 % var + 16 % Group share of net profit 2 971* 3 573 5 648 + 20 %* % var - 37 % Free cash flow** % var 2,832 3,679 + 30 % * Excluding the 2014 exceptional gain from the distribution of Hermès shares. ** Before available for sale financial assets and investments, transactions relating to equity and financing activities. KEY FIGURES (2015) KEY FIGURES BY BUSINESS GROUP In % of revenue Wines & Spirits13 % Selective Retailing & other activities 30 % Fashion & Leather Goods 35 % Watches & Jewelry 9 % Perfumes & Cosmetics13 % KEY FIGURES (2015) KEY FIGURES BY GEOGRAPHIC REGION OF DELIVERY In % of revenue Europe 18 % (exc. France) France 10 % United States 26 % Japan 7 % Asia 27 % (exc. Japan) Other markets12 % ABOUT LVMH COMMITMENTS KEY FIGURES GOVERNANCE Second edition of the Journées Particulières, 2013 © Marco Adriano SIMPLIFIED GROUP STRUCTURE Groupe Arnault Christian Dior SA Christian Dior Couture LVMH Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities EXECUTIVE COMMITTEE Bernard Arnault Antonio Nicolas Bazire Michael Burke Chantal Jean-Jacques Belloni Gaemperle Guiony Chairman & Chief Development and Louis Vuitton Executive Officer Group acquisitions Human Resources and Finance Managing Synergies Director Chris de Lapuente Christophe Navarre Daniel Piette Pierre-Yves Roussel Philippe Schaus Jean-Baptiste Voisin Sephora and beauty Wines and Spirits Investment Funds Fashion Group DFS Strategy BIOGRAPHY OF BERNARD ARNAULT Bernard Arnault is Chairman and CEO of LVMH. Born to an industrial family in Roubaix, France on March 5, 1949, Mr. Arnault attended