LVMH
Annual Report 2021

Plain-text annual report

2 0 2 1 A N N UA L R E P O R T Passionate about creativity Passionate about creativity T H E LV M H S P I R I T Louis Vuitton and Moët Hennessy merged in 1987, creating the LVMH Group. From the outset, Bernard Arnault gave the Group a clear vision: to become the world leader in luxury, with a philosophy summed up in its motto, “Passionate about creativity”. Today, the LVMH Group comprises 75 exceptional Maisons, each of which creates products that embody unique craftsmanship, carefully preserved heritage and resolute modernity. Through their creations, the Maisons are the ambassadors of a refined, contemporary art de vivre. LVMH nurtures a family spirit underpinned by an unwavering long-term corporate vision. The Group’s vocation is to ensure the development of each of its Maisons while respecting their identity and their autonomy, by providing all the resources they need to design, produce and distribute their creations through carefully selected channels. Our Group and Maisons put heart and soul into everything they do. Our core identity is based on the fundamental values that run through our entire Group and are shared by all of us. These values drive our Maisons’ performance and ensure their longevity, while keeping them attuned to the spirit of the times and connected to society. Since its inception, the Group has made sustainable development one of its strategic priorities. Today, this policy provides a powerful response to the issues of corporate ethical responsibility in general, as well as the role a  group like LVMH should play within French society and internationally. Our philosophy: Passionate about creativity T H E VA L U E S O F A D E E P LY C O M M I T T E D G R O U P Being creative and innovative Creativity and innovation are part of LVMH’s DNA; throughout the years, they have been the keys to our Maisons’ success and the basis of their solid reputa- tions. These fundamental values of creativity and innovation are pursued in tandem by our Group’s Maisons as they focus on achieving the ideal balance between continually renewing their offer while resolutely looking to the future, always respecting their unique heritage. Delivering excellence Within the Group, quality can never be compromised. Because the Maisons embody everything that is most noble and accomplished in the world of fine craftsmanship, they pay extremely close attention to detail and strive for perfection: from products to services, it is in this quest for excellence that the Group differentiates itself. Cultivating an entrepreneurial spirit The Group’s agile, decentralized structure fosters efficiency and responsive- ness. It encourages individuals to take initiative by giving everyone a significant level of responsibility. The entrepreneurial spirit promoted by the Group makes risk-taking easier and encourages perseverance. It requires a pragmatic approach and the ability to motivate staff to achieve ambitious goals. Taking action to make a difference Every action taken by the Group and its employees reflects our commitment to ethics, corporate social responsibility and respect for the environment. They drive our Maisons’ performance and ensure their longevity. Firmly convinced that truly desirable products can only come from sustainable businesses, we are committed to ensuring that our products and the way they are made have a positive impact on our entire ecosystem and the places we operate, and that our Group is actively working to build a better future. 2 • 3 Louis Vuitton, Towards a Dream, Jordan T H E LV M H G R O U P Chairman’s message Interview with the Group Managing Director Robust corporate governance Maisons with a strong identity A diverse range of professions The world’s leading luxury goods group A responsible model dedicated to excellence Exemplary ethics and responsibility Supporting culture, young people and humanitarian projects A firm commitment to support humanitarian and social causes A year of heightened social commitment LIFE 360: Aiming for sustainable excellence LVMH and its Maisons take action 6 12 14 16 17 18 20 22 24 28 30 34 40 B U S I N E S S G R O U P I N S I G H T S Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics 44 64 86 106 Watches & Jewelry 126 Selective Retailing 142 Culture & Lifestyle P E R F O R M A N C E M E A S U R E S Stock market performance measures Financial performance measures Non-financial performance measures 154 156 158 4 • 5 S T E A D FA S T A N D D E T E R M I N E D LVMH NAVIGATED THE UNCERTAINTIES OF 2021 WITHOUT EVER DEVIATING FROM ITS LONG-TERM COURSE: EXCELLENCE, CREATIVITY AND COMMITMENT. OUR MAISONS’ LEADERSHIP HAS EMERGED STRONGER FROM THIS CRISIS. LVMH HAS STEPPED UP ITS WORLDWIDE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY PROGRAMS AND IS APPROACHING 2022 WITH DETERMINATION. LVMH achieved a remarkable performance in 2021. In a year that was once again heavily affected by the pandemic, thanks to our teams’ hard work and unflagging enthusiasm – which I wholeheartedly applaud – our Group more than weathered the storm. Our results are excellent: we delivered strong growth that surged even higher in the fourth quarter, and we continued to expand our ever-growing lead. If I may draw a parallel with cycling: the Tour de France is not won on the flats in fine weather, but on the steepest slopes, facing storms and headwinds – that’s when the champions pull ahead. With their boundless creativity, our Fashion & Leather Goods Maisons – Louis Vuitton and Christian Dior in particular – accomplished the extraordinary feat of gaining market share despite very turbulent conditions. Hennessy success- fully overcame major supply shortages to satisfy ever-increasing demand. Parfums Christian Dior continued to shine with the spectacular success of Sauvage, which became the world’s best-selling fragrance in 2021. Having just joined the LVMH family, and under the impetus of its new management team, Tiffany & Co. posted a record year. Our retail activities, which were directly impacted by the lockdowns and forced store closures in 2020, bounced back strongly, particularly at Sephora. S H O W C A S I N G O U R T A L E N T The bedrock of our success is, of course, our Maisons’ talented employees. Whatever the circumstances, our exceptionally adaptable, prolifically creative staff rise to the challenge. All of the Group’s professions are just as focused on tradition as on the future, respecting their heritage of craftsmanship while forging ahead through new designs and new experiences. Louis Vuitton’s two new Vendôme workshops – the first located in one of the old town’s most beautiful historic buildings, the second at a contemporary site outside the center – work hand in hand and are a symbolic illustration of this duality. That mindset is also reflected in our investments: our Maisons’ workshops are locally rooted and benefit the economies of all the regions of France; our creative directors, like Maria Grazia Chiuri for Dior in Athens and Hedi Slimane for Celine in Nice, design collections and runway shows that inspire and touch 6 • 7 “ LV MH navigated the uncer tainties of 2021 without ever deviating from its long-term course: excellence, c reativity and commit ment.” LVMH 2021 . Chairman’s messagethe entire planet; our engineers and sales assistants are inventing the digital experiences of the future and new ways of welcoming customers in our stores – which have never been so enterprising. For me, this is the hallmark of our Group and the stamp of fine craftsmanship: at the intersection of art and technology, culture and business, past and future. It’s a delicate balance: a harmonious, unified blend of ideas and dedication that harnesses artistic creativity, finely honed craftsmanship and organizational precision. It would be unthinkable, at this point, not to mention Virgil Abloh, who passed away so tragically and much too soon in 2021. The entire LVMH family is in mourning. He was a visionary, a beautiful soul and a very wise man. I know that his creative legacy will live on in the memory of our Group, just as departed masters continue to inspire up-and-coming generations of designers. B U I L D I N G T H E A R C H I T E C T U R A L M A S T E R W O R K S O F D R E A M S As you know, our Group has an illustrious history of constructing iconic build- ings all over the world, foremost among which is the Fondation Louis Vuitton. One of the key milestones of 2021 was the inauguration of La Samaritaine, the emblematic Paris department store, now restored to its former splendor 15 years after its closure and refurbishment. As soon as it reopened in June, this historic building once again found its place in the hearts of both Parisians and visitors to the City of Light. Since then, several million people have flocked to it, both to shop and to delight in rediscovering this French architec- tural landmark that LVMH has brought back to life. The Cheval Blanc Paris hotel, with its stunning views of the Seine and unparalleled service – which is without equal anywhere in the world – is also hugely successful. Its three restaurants have rapidly become essential destinations on the Paris fine-dining scene, in particular Plénitude, the gourmet restaurant run by chef Arnaud Donckele. These triumphs reflect LVMH’s goal, which is to look beyond the ups and downs of 2021 at these long-term projects, patiently completed despite being delayed by the pandemic and hailed as a return to happier times as soon as they opened to the public. We live in an often uncertain world and our project schedules can sometimes encounter unforeseen twists and turns, but that only magnifies the feeling of joy when they come to fruition. So come what may, we will never shy away from undertaking ambitious projects and aiming for long-term success. In this same spirit, Dior’s original store at Paris’ 30 avenue Montaigne reopened at the beginning of 2022 after an extensive revamp. This exceptional location, where the Maison’s legacy and creativity are showcased like never before, has already become a powerful focal point for visitors from all over the world. U N F L A G G I N G C O M M I T M E N T T O T H E P L A N E T A N D Y O U N G P E O P L E We focus on the long term and our commitments reflect this approach. Indeed, our quest for excellence and performance would not be complete without the unstinting and ever-growing daily efforts to make our corporate social responsibility a tangible reality. Preserving the environment, especially, is a priority: nature is the very substance of our products, and protecting it is essential to our Maisons’ long-term future. “ The bedrock of our success is, of course, our Maisons’ talented employees. Whatever the circumstances, our exceptionally adaptable, prolific ally creative staff rise to the challenge.” “ From our vantage point, with our values and res ources , we have a role to pl ay in making the world a better place.” 2021 saw an array of remarkable achievements in this area. Moët & Chandon is now driving the necessary transition to sustainable winegrowing across the Champagne region, while Château Cheval Blanc is the world’s first grand cru to introduce agroecology – it has planted 4,000 trees in its vineyards and stimulates life on its unique terroir. Our Maisons are also making rapid progress towards a circular economy: Louis Vuitton’s Upcycling collection is made entirely from recycled materials, Loewe’s Surplus Project bags designed by Jonathan W. Anderson are made with leather offcuts, and Zenith has partnered with Nona Source to transform excess fabrics into watch straps. We involve our suppliers closely in this approach with an increasingly compre- hensive traceability system. Fendi now provides a full list of its Tier 1 suppliers. Guerlain shares the same commitment to transparency with its Bee Respect platform, which publicly discloses the origin and lifecycle of its products’ ingre- dients and packaging materials. LIFE 360, our ambitious Group-wide environ- mental program, coordinates and fleshes out our Maisons’ initiatives to preserve biodiversity and rapidly reduce CO₂ emissions. Lastly, our focus on natural resources is matched only by the attention we devote to preserving our intangible heritage: the professions and expertise we pass on to future generations. Over the next few months, we plan to hire about 25,000 people under 30. We will also put a lot of effort into training these new recruits, particularly through our Institut des Métiers d’Excellence (IME), which now has all the trappings of a full-fledged international university for craft professions and customer experience – it is present in six countries and offers 35 highly demanding programs. IME has trained 1,500 talented students since its launch, many of whom are now working with the Group’s Maisons. C O N F I D E N T, P R U D E N T, C A R I N G With the pandemic yet to be fully resolved, 2022 has started with another crisis. We are closely following the dramatic events unfolding in Ukraine. It's very hard to predict how the geopolitical situation will evolve over the coming weeks and its precise impact on the global economy. In the short term, our people and operations are prepared and ready to face any emergency, just as we were at the height of the pandemic. In the longer term, we will continue to move forward with resolve and determination. From our vantage point, with our values and resources, we have a role to play in making the world a better place. Our passion for excellence, our creativity and our commitment go a long way towards achieving this goal. So do our sense of community, which is closely linked to our Group’s family values; and our dynamic entrepreneurial spirit, which has permeated the Group since its inception. In 2021, we celebrated the 200th anniversary of Louis Vuitton’s birth and it is worth remembering his life journey, leaving the Jura Mountains for Paris to found what would become the world’s foremost luxury brand. In his story, I see a parable of the unstoppable power of entrepreneurship. I hope his example will continue to guide us and enable us to view the future with hope. For LVMH, this is still just the beginning. Bernard Arnault Chairman and Chief Executive Officer 8 • 9 LVMH 2021 . Chairman’s messageLa Samaritaine Paris Pont-Neuf C O N F I D E N C E , V I G I L A N C E A N D E N G A G E M E N T Antonio Belloni, Group Managing Director LVMH achieved a record-breaking performance in 2021: how do you explain such a success despite ongoing disruptions related to the public health situation? experiences, in particular to prepare for our customers’ return to our stores while maintaining our momentum in online sales. Keeping our eye firmly on the future so our Maisons win over a younger clientele, while maintaining their timeless craftsmanship. Our performance was driven by a combination of factors, I have been deeply impressed by how hard our teams both external and internal. First, our customers’ mindset: have worked, and deeply grateful for their steadfast after living through two years of the pandemic, they want commitment in these trying times, despite multiple to rediscover the joy of shopping, enjoy memorable constraints and highly unpredictable circumstances: experiences and reconnect. There’s also a clear desire to more than ever before, their agility and creativity have focus on fundamentals – tried-and-true essentials with made all the difference. solid value and quality you can count on. We saw the same thing happen during the crises in 2001 and 2008, which ultimately made our Group stronger: our brands are, by nature, positioned to reap the benefits. But that only explains part of our success: the other part comes from our long-term focus on our fundamental As the world is starting to see signs of a possible end to the pandemic, what are the most fundamental trends that the LVMH Group and its Maisons will face? strategic priorities. Patiently working to craft our Maisons’ brand image and build their appeal. Maintaining ongoing Several lasting trends will continue to influence our busi- ness activities. The first is an increase in local demand. dialogue and feedback to allow our decentralized With tourist travel only slowly recovering, customers are organization to swiftly adapt to any situation. Investing in tending to make more of their purchases in their own our capacity to innovate and create unprecedented countries, so our sales associates are working to build Louis Vuitton, Towards a Dream, Greece. closer, more lasting customer relationships in each local than just preserving our exceptional skills: we’re readying market. It’s a virtuous circle. While our Maisons and prod- them for the future. ucts will keep taking a global approach, we will also keep paying attention to the different customer bases and What’s the Group’s mindset going into 2022? cultural specificities of each region. Another key trend that’s here to stay is digital, which is Confident and determined, because we know we can how most of our customers stay informed, share and count on our people. Our energy remains focused on shop. That’s not about to change, even with the return of the appeal of all of our Maisons, with many highlights the in-store experience. To leverage this trend, our brands ahead, including inspiring innovations at Louis Vuitton must be able to cohesively express their unique values and the reopening of Christian Dior’s historic flagship at and their creative identity across a range of customer 30 avenue Montaigne in Paris and Tiffany’s on Fifth Avenue touchpoints, both physical and digital. in New York. Another increasingly important focus is the role of good We will of course remain vigilant. Given the current geo- corporate citizenship. In a complex, fragmented world, political crisis and ongoing pandemic-related disruptions, our responsibility has never been greater. And the same we will maintain our flexible, rigorous management can be said of our power to make a difference: by making approach. One of our priorities will be relaunching our our manufacturing processes more and more sustainable, activities most exposed to the travel industry, which will rising to meet younger generations’ aspirations for find- only see a very gradual recovery: our customers are eager ing meaning in their work, and reducing inequality and to get back out and explore the world, but substantial prejudice that belong in the past. restrictions remain in place. Lastly, our organization must be open to change in order One thing is certain: we’re going to engage more closely to adapt to fundamental shifts in the world around us and than ever before with our partners to support them and prepare for the future. That means bringing in new skills, work side by side. From our own workshops to our sup- empowering local teams, breaking down silos, flexibly pliers, our exceptional craftspeople and the world’s most navigating in-person and virtual interactions, and more. Not to mention the key priority of passing on our Mai- innovative startups, we are part of a vast ecosystem, and this interconnectedness and dialogue are key to sparking sons’ creative legacy and excellent craftsmanship to the new ideas and enhancing quality and efficiency. That’s what next generation. Through initiatives like the Institut des our Maisons’ success – and our Group’s performance – Métiers d’Excellence and Artisans 4.0, we’re doing more will always be built on. 12 • 13 LVMH 2021 . Interview with the Group Managing DirectorR O B U S T C O R P O R A T E G O V E R N A N C E THE RIGHTS OF LVMH SHAREHOLDERS ARE PROTECTED BY LAW AND THE PRINCIPLES OF CORPORATE GOVERNANCE WHICH GOVERN THE WAY THE GROUP OPERATES. Objectives set in line with the social and environmental issues facing the Group’s business Board of Directors’ work in 2021 LVMH’s Board of Directors is the strategic body of the interim parent company and consolidated financial Company that is primarily responsible for driving long- statements, monitored quarterly business activity and term value creation and protecting its corporate interests, heard the reports presented by the Chairmen of its three focusing in particular on the social and environmental Committees. It gave its opinion on the Group’s strategic In fiscal year 2021, the Board approved the annual and issues facing its business. Role of the Board of Directors in the Company’s strategy direction, its budget, compensation of company officers, the implementation of bonus share plans, and the imple- mentation of the share buyback program. In accordance with the provisions of the AFEP-MEDEF code, the Board of Directors reviewed its own composition, organization The Board of Directors’ principal assignments are to and modus operandi. It also (i) approved the targets of approve the Company’s and the Group’s broad strategic the LIFE 360 program adopted by the Group; (ii) made direction and supervise its implementation, as well as ver- amendments to the Charter of the Board of Directors ifying the fair and accurate presentation of information and the Rules of Procedure of the Nominations & Com- about the Company and the Group. It is also tasked with pensation Committee; (iii) appointed a new member to protecting the Group’s corporate assets and ensuring the Performance Audit Committee and the Nominations that core business risks are accounted for in its manage- & Compensation Committee; and (iv) amidst the public ment. The Board also ensures that procedures to prevent health crisis arising from the Covid-19 pandemic, corruption and influence-peddling are implemented by decided to hold the Shareholders’ Meeting of April 15, the Group and its main partners, and monitors the impact 2021 in closed session. Lastly, as provided by law, follow- of the Group’s non-discrimination and diversity policy, ing the arrival of the first Director representing the notably with regard to gender equality within the governing employees appointed by LVMH’s Group Works Council, bodies. Lastly, it acts as guarantor of the rights of all of its the Board of Directors welcomed a second such Director, shareholders and ensures that they fulfill all of their duties. appointed by the SE Works Council. Further information can be found in the 2021 Universal Registration Document. EXECU TIVE COMMITTEE Bernard Arnault Chairman and Chief Executive Officer Antonio Belloni Group Managing Director Delphine Arnault  Louis Vuitton Products Nicolas Bazire Development & Acquisitions Pietro Beccari Christian Dior Couture Stéphane Bianchi Watches & Jewelry Michael Burke Louis Vuitton & Tiffany Chantal Gaemperle Human Resources & Synergies BOARD OF DIRECTORS Bernard Arnault Chairman and Chief Executive Officer Antonio Belloni Group Managing Director Antoine Arnault Delphine Arnault (4) Dominique Aumont Director representing the employees Nicolas Bazire Marie-Véronique Belloeil-Melkin Director representing the employees Sophie Chassat(1)(3) Charles de Croisset (1) (2) (3)  Lead Director Diego Della Valle Clara Gaymard (1) (2)(5) Marie-Josée Kravis (1) (3)(6) Marie-Laure Sauty de Chalon (1) (2)(4)  Yves-Thibault de Silguy (1) (2) (3) (4) Natacha Valla (1)  Hubert Védrine (1) (4) Advisory Board members Yann Arthus-Bertrand Lord Powell of Bayswater General Secretary Marc-Antoine Jamet Statutory Auditors Ernst & Young Audit(7) represented by Gilles Cohen Mazars(7) represented by Isabelle Sapet and Loïc Wallaert Andrea Guerra LVMH Hospitality Excellence Jean-Jacques Guiony Finance Christopher de Lapuente Selective Retailing & Beauty Philippe Schaus Wines & Spirits Sidney Toledano Fashion Group Jean-Baptiste Voisin Strategy 14 • 15 (1) Independent Director. (2) Member of the Performance Audit Committee. (3) Member of the Nominations & Compensation Committee. (4) Member of the Ethics & Sustainable Development Committee. (5) Clara Gaymard was appointed as Chairman of the Performance Audit Committee, effective at the close of the Shareholders’ Meeting of April 21, 2022, with Yves-Thibault de Silguy remaining a member of the committee. (6) Marie-Josée Kravis was appointed as Chairman of the Nominations & Compensation Committee, effective at the close of the Shareholders’ Meeting of April 21, 2022, with Charles de Croisset remaining a member of the committee. (7) A resolution will be presented at the Shareholders’ Meeting of April 21, 2022 to reappoint Mazars as Principal Statutory Auditor, and to appoint Deloitte as Principal Statutory Auditor to replace Ernst & Young Audit. LVMH 2021 . Governance and organizationM A I S O N S W I T H A S T R O N G I D E N T I T Y LVMH COMPRISES 75 PRESTIGIOUS MAISONS ORGANIZED INTO SIX BUSINESS GROUPS. EACH MAISON STEADFASTLY PRESERVES AND PERFECTS A LONG TRADITION OF EXPERTISE AND OFFERS EXCEPTIONAL PRODUCTS. 14TH CENTURY 1365 LE CLOS DES LAMBRAYS 16TH CENTURY 1593 CHÂTEAU D’YQUEM 18TH CENTURY 1729 RUINART 1743 MOËT & CHANDON 1765 HENNESSY 1772 VEUVE CLICQUOT 1780 CHAUMET 19TH CENTURY 1803 OFFICINE UNIVERSELLE BULY 1815 ARDBEG 1817 COVA 1828 GUERLAIN 1832 CHÂTEAU CHEVAL BLANC 1837 TIFFANY & CO. 1843 KRUG 1843 GLENMORANGIE 1846 LOEWE 1849 ROYAL VAN LENT 1852 LE BON MARCHÉ 1854 LOUIS VUITTON 1858 MERCIER 1860 TAG HEUER 1860 JARDIN D’ACCLIMATATION 1865 ZENITH 1870 LA SAMARITAINE 1884 BULGARI 1895 BERLUTI 1898 RIMOWA 20TH CENTURY 1908 LES ECHOS 1914 PATOU 1916 ACQUA DI PARMA 1923 LA GRANDE ÉPICERIE DE PARIS 1924 LORO PIANA 1925 FENDI 1936 DOM PÉRIGNON 1936 FRED 1944 LE PARISIEN-AUJOURD’HUI EN FRANCE 1945 CELINE 1946 CHRISTIAN DIOR COUTURE 1947 PARFUMS CHRISTIAN DIOR 1947 EMILIO PUCCI 1952 GIVENCHY 1952 CONNAISSANCE DES ARTS 1955 CHÂTEAU GALOUPET 1957 PARFUMS GIVENCHY 1957 REPOSSI 1958 STARBOARD CRUISE SERVICES 1959 CHANDON 1960 DFS 1969 SEPHORA 1970 KENZO 1970 CAPE MENTELLE 1972 PERFUMES LOEWE 1974 INVESTIR-LE JOURNAL DES FINANCES 1975 OLE HENRIKSEN 1976 BELMOND 1976 BENEFIT COSMETICS 1977 NEWTON 1980 HUBLOT 1983 RADIO CLASSIQUE 1984 MARC JACOBS 1984 MAKE UP FOR EVER 1985 CLOUDY BAY 1988 KENZO PARFUMS 1991 FRESH 1992 COLGIN CELLARS 1993 BELVEDERE 1996 TERRAZAS DE LOS ANDES 1998 BODEGA NUMANTHIA 1999 CHEVAL DES ANDES 21ST CENTURY 2006 MAISONS CHEVAL BLANC 2006 CHÂTEAU D’ESCLANS 2008 KVD VEGAN BEAUTY 2009 MAISON FRANCIS KURKDJIAN 2010 WOODINVILLE 2013 MARC JACOBS BEAUTY 2013 AO YUN 2016 CHA LING 2017 FENTY BEAUTY BY RIHANNA 2017 VOLCÁN DE MI TIERRA 2020 EMINENTE A D I V E R S E R A N G E O F P R O F E S S I O N S W IN ES & SPIR ITS FA SH ION & LEAT H ER GOODS PER FU M ES & COSM ET IC S Moët & Chandon, Dom Pérignon, Krug, The Fashion & Leather Goods busi- LVMH is a key player in the perfume, Veuve Clicquot, Ruinart, Hennessy, ness group comprises Louis Vuitton, makeup and skincare sector, with a Château d’Yquem, Clos des Lambrays… Christian Dior Couture, Celine, Loewe, portfolio of world-famous French the origins of all these world- famous Kenzo, Givenchy, Fendi, Emilio Pucci, brands: Christian Dior, Guerlain, Givenchy estates are inextricably linked to the Marc Jacobs, Berluti, Loro Piana, and Kenzo. The Group also owns other appellations and terroirs of the world’s RIMOWA and Patou. While respecting beauty brands: Benefit, Fresh, Acqua most prestigious wines and spirits. the identity and autonomous manage- di Parma, Perfumes Loewe, Make Up Whether they are in Champagne, ment of these brands, LVMH supports For Ever, Maison Francis Kurkdjian, Bordeaux, or other famed wine regions, their growth by providing them with Fenty Beauty by Rihanna, KVD Vegan these Maisons, many of which date shared resources. Beauty and Officine Universelle Buly. back more than a century, all share a powerful culture of excellence. WATC H ES & J EW ELRY SELEC T I V E R ETA ILING OT H ER AC T I V IT IES The LVMH Watches & Jewelry Maisons The Selective Retailing business group Other activities include Groupe Les are some of the most emblematic comprises Sephora, the world’s leading Echos, which comprises leading brands in the industry. They operate in selective beauty retailer; Le Bon Marché, French business and cultural news jewelry and watches with Tiffany, the a Paris department store with a unique publications; Royal Van Lent, the prestigious American jewelry house atmosphere; and travel retailers DFS and builder of high-end yachts marketed acquired in 2021, Bulgari, Chaumet, Starboard Cruise Services, who cater under the brand name Feadship; Fred, TAG Heuer, Hublot and Zenith. specifically to international travelers. Cheval Blanc and Belmond, which are These Maisons are guided by a daily quest for excellence, creativity and innovation. developing a collection of exceptional hotels. 16 • 17 LVMH 2021 . Our Maisons and business groupsT H E W O R L D ’ S L E A D I N G L U X U R Y G O O D S G R O U P A UNIQUE OPERATING MODEL BUILT ON SIX PILLARS 1 Decentralized organization 2 Ver tical integration 3 Sustaining s avoir-faire Our structure and operating principles Vertical integration fosters excellence Our Maisons pursue a long-term ensure that our Maisons are both both upstream and downstream, vision. To preserve their distinctive autonomous and responsive. This allowing control over every link in the identities and excellence, LVMH and allows us to be extremely close to our value chain – from sourcing and pro- its Maisons have developed a range of customers, to ensure that rapid, duction facilities to selective retailing initiatives to pass down skills and effective and appropriate decisions – which in turn means that the image expertise, and promote craft trades and can be made. This approach also sus- of our Maisons is carefully controlled. design professions among younger tains the motivation of our employees, encouraging them to show true entrepreneurial spirit. generations. 4 Organic growth 5 Creating synergies 6 Balance across business segments and geographies The LVMH Group places priority on Sharing of resources on a Group scale organic growth and commits signifi- creates intelligent synergies while Our Group has the resources to cant resources to develop its Maisons, respecting the individual identities sustain regular growth thanks to the as well as to encourage and protect and autonomy of our Maisons. The balance across its business activities creativity. Our employees are key combined strength of the LVMH and a well-distributed geographic to this approach, making it essential Group is leveraged to benefit each of footprint. This balance means that we to support their career growth and its Maisons. encourage them to excel. are well-positioned to withstand the impact of shifting economic factors. 80 countries 17 9 nationalities 75 Maisons 1 10 175, 6 47 employees 575 production sites in France nonprofits, foundations and initiatives supported through the involvement of nearly 30,000 employees 5, 556 stores 657,000 hectares of fauna and flora habitat regenerated or protected €6 4 . 2 bn Revenue +44% versus 2020 +20% versus 2019 €17. 2 bn Profit from recur ring operations +107% versus 2020 +49% versus 2019 €1 2 bn Net profit Group share +156% versus 2020 +68% versus 2019 2021 REVENUE BY REGION (as %) 2021 REVENUE BY BUSINESS GROUP (as %) Other markets 11% Asia (excl. Japan ) 35% Jap an 7% UNITED STATES Revenue: €16,591m 1,014 stores 34,930 employees OTH ER MA RKETS Revenue: €6,904m 594 stores 15,769 employees France 6% Europe (excl. France) 15% United States 26% Selective Retailing and Other activities 19% Watches & Jewelr y 14% Perfu mes & Cos metics 10% GEOGRAPHIC FOOTPRINT (as of December 31, 2021) FRANC E Revenue: €4,111m 522 stores 33,8 87 employees 18 • 19 Wines & Spirits 9% Fashion & Leather Goods 48% EUROPE (excl. France) Reven ue: €9,860m 1,203 stores 39,343 employees JAPAN Reven ue: €4,384m 477 stores 8,013 employees ASIA (excl. Japan) Reven ue: €22,365m 1,746 stores 43,705 employees LVMH 2021 . Strategy and key figuresChristian Dior A R E S P O N S I B L E M O D E L D E D I C A T E D T O E X C E L L E N C E FORGED OVER GENERATIONS BY ALLIANCES BETWEEN MAISONS – WEAVING TOGETHER THEIR TRADITIONS OF EXCELLENCE AND CREATIVE PASSION – LVMH HAS BUILT ITS LEADING POSITION ON A UNIQUE PORTFOLIO OF ICONIC BRANDS. These Maisons draw their energy from their exceptional heritage, innovative mindset and receptive outlook. The Nurturing talent Group supports their development in a spirit of entrepre- Encouraging all our employees to reach their full career neurship, long-term vision and respect for the source of potential and achieve their aspirations. Developing diver- their strength and stature. sity and the wealth of human resources at our companies As ambassadors of an authentic art de vivre, it is our in all the countries where we operate, and encouraging responsibility to set the right example in every aspect of initiatives in these areas. Contributing to the knowledge our business, from product design to the experience that and preservation of our crafts outside the Group in addition customers have throughout their relationships with the to our own expertise as artisans and designers. Group’s brands; from investment choices to social and environmental initiatives. Because what we do requires a diverse range of talent, we are committed to training Environment teams that embody excellence. Because passing on skills Working together to preserve the planet’s resources, to is an integral part of our culture, we want to use that design and develop products that are compatible with opportunity to promote social inclusion and employ- environmental concerns, reporting on our policies and ment. Because our crafts make the most of nature at its projects and the progress achieved in meeting our objec- purest and most beautiful, we see preserving the environ- tives. Contributing to environmental protection above ment as a strategic imperative. and beyond factors directly related to our operations The values and actions encompassed by our sustainable by entering into active partnerships with cooperating development attitude emerge from a tradition that dates businesses, local authorities and nonprofits. back to the origins of our Maisons and forms an integral part of our heritage. Our long-term success depends not Partnerships and support only on the Group’s solid business model and profitable growth strategy, but also on our unwavering commit- ment to creativity, excellence, and our environmental Maintaining and strengthening responsible relationships with our partners, suppliers and subcontractors. Imple- impact and corporate citizenship. menting a patronage program for the widest possible Business performance public benefit which reflects and transmits our funda- mental values. Providing active support for major causes, humanitarian projects and public health programs, and Combining profitable growth and sustainability with developing initiatives in support of art and young people. commitments to creativity and excellence. Applying our creative passion to the art de vivre to which our customers aspire. Strengthening our position as a global leader, and being the benchmark for managing and developing high-quality brands. 20 • 21 LVMH 2021 . Performance and responsibilityLoro Piana, The Gift of Kings® wool, New Zealand E X E M P L A R Y E T H I C S A N D R E S P O N S I B I L I T Y THE GROUP HAS ESTABLISHED RULES OF CONDUCT AND PRINCIPLES FOR ACTION REGARDING ETHICS AND ENVIRONMENTAL, WORKFORCE-RELATED AND SOCIAL RESPONSIBILITY TO GUIDE THE BEHAVIOR OF ALL OUR EMPLOYEES, SUPPLIERS AND OTHER STAKEHOLDERS. Codes of ethics and their application Fair and responsible relations with our partners LVMH’s wide-ranging commitments to our employees and stakeholders are reflected in the Group’s longstanding Supporting our partners is a key strategic priority for LVMH, support for benchmark initiatives such as the United as we aim to build long-term relationships underpinned Nations Global Compact, and in the adoption of internal by our shared quest for excellence and the ambition to charters and codes of conduct which serve as guidelines establish a set of common ethical principles, guidelines for all of our Maisons. These include the LVMH Code of and practices. The Group is developing a comprehensive Conduct, the Supplier Code of Conduct, the Environmen- policy with the aim of ensuring that our partners and tal Charter and, more recently, the Animal-Based Raw suppliers adopt best environmental, social and societal Materials Sourcing Charter. practices, while enhancing awareness and providing The Group has a dedicated governance structure that information about issues specific to their own activities. ensures its values and codes of ethics are applied at LVMH and its Maisons take a collaborative approach, the operating level. This structure includes the Ethics & offering support through audits and, where necessary, Sustainable Development Committee, which operates action plans. Over 1,500 audits were conducted in 2021. within the Board of Directors. The Committee receives Despite the exceptional public health situation that began regular reports from the Group’s Ethics & Compliance in early 2020, LVMH was able to maintain a significant Department which, with its network of over 80 officers, level of on-site supplier audits. The Group’s responsible develops and implements the compliance program across sourcing policy also includes supplier support and train- all the Maisons. ing. For example, LVMH is a signatory of the Utthan pact, The Group puts these commitments and values into an initiative that brings together several luxury brands practice across all its business lines, paying close atten- that contract out embroidery work. This program aims to tion to areas such as promoting employee inclusion and empower artisans in Mumbai’s hand embroidery cluster, well-being; developing and passing on expertise and key where many of the embroiderers partnering with the skills; protecting personal data; reducing the Group’s Maisons are based. The initiative also includes a training impact on ecosystems and natural resources; implement- program for embroiderers. In addition, several of the ing compliance systems; and establishing and maintaining Group's Maisons worked together to organize online responsible supply chains. training for managers of supplier sites in Italy and China. In 2021, the Group extended access to LVMH Alert Line Given the results of the risk analysis and of certain audits, – our online whistleblowing platform – to all our external these training courses focused on human rights, health stakeholders. This platform was already open to employ- and safety, the environment and fighting corruption. ees, who can use it to report in good faith any violations of laws, rules or in-house codes of conduct securely and confidentially. 22 • 23 LVMH 2021 . Ethics and responsible partnershipsS U P P O R T I N G C U L T U R E , Y O U N G P E O P L E A N D H U M A N I T A R I A N P R O J E C T S LVMH HAS BEEN PURSUING GROUNDBREAKING CORPORATE PHILANTHROPY INITIATIVES FOR OVER 25 YEARS. THROUGH ITS SUPPORT FOR COMMUNITY-ORIENTED INITIATIVES, THE GROUP EXPRESSES ITS CREATIVE AND HUMANITARIAN VALUES AND STRIVES TO PROMOTE CULTURAL HERITAGE, ART, FASHION AND ARTS EDUCATION FOR ALL. Culture, heritage and contemporary creative arts and Rui Zhou, a 26-year-old Chinese designer who founded Shanghai-based brand Rui. In 2021, LVMH continued to back the effort to save Notre- Arts education initiatives Dame de Paris Cathedral, whose restoration will take several more years. Just one day after the terrible fire that Once again this year, LVMH’s patronage of programs for ravaged the monument in the spring of 2019, LVMH, led young people focused on music. In particular, LVMH by its Chairman, Bernard Arnault, made a €100 million renewed its support for Orchestre à l’École, a nonprofit donation (along with an additional €100 million from his that enables hundreds of children all over France to start family group) to ensure that Notre-Dame’s long restora- playing a musical instrument. The Group also continued tion process is followed through to completion. In support its actions to promote access for young people to perfor- of the arts, LVMH signed on to sponsor a new production mances at the Opéra Comique in Paris. LVMH also once of Tennessee Williams’ The Glass Menagerie at the Théâ- again loaned out the Stradivariuses in its collection. tre de l’Odéon, directed by Ivo van Hove. With its perfor- mances interrupted by the pandemic lockdown, this play was presented again in 2021, once again thanks to the support of LVMH. LVMH has been a loyal patron of the Backing medical research and certain social causes Nuit Blanche night-time arts festival for nearly fifteen The Group supported numerous institutions well known years, and once again in 2021 provided support alongside for their work with children, the elderly and people with the City of Paris to the French and international arts disabilities, and for their efforts to combat major causes scene, giving center stage to contemporary artists at an of suffering and exclusion. In particular, LVMH provided event open to all in the heart of Paris. LVMH also continued major support to the Fondation des Hôpitaux de Paris- its support for the Giacometti Institute in Paris, helping it Hôpitaux de France and the Association Le Pont Neuf in develop its scientific and cultural program. France; Save the Children Japan; and the Robin Hood Due to the Covid-19 pandemic, the final event for the Foundation in New York, which works to support initia- eighth edition of the LVMH Prize for Young Fashion tives for children. It also supported the Fondation Claude Designers was held without an in-person audience. Out Pompidou, which provides support in France for seniors of nine finalists, the LVMH Prize was awarded to Nensi and people with disabilities; Association Fraternité Dojaka, a 27-year-old Albanian designer based in London Universelle, which works in Haiti to improve access to who founded the eponymous women’s ready-to-wear health care and education alongside actions in favor of fashion brand. She won a 300,000 euro award and a year agricultural development, especially in the Central Plateau; of mentoring within the LVMH Group. The panel of judges also decided to award the Karl Lagerfeld Prize to three and the Curie Institute in its research and work to fight childhood cancer. The Group is also a longstanding sup- designers: Colm Dillane, the 29-year-old American founder porter of a number of scientific teams and foundations of Brooklyn-based brand KidSuper; Lukhanyo Mdingi, a engaged in cutting edge public health research. 29-year-old South African designer based in Cape Town; 24 • 25 LVMH 2021 . Corporate philanthropyThe Fondation Louis Vuitton, which opened in 2014, is now recognized as a leading institution on the global arts scene, achieving remarkable success among both art and culture connoisseurs as well as a wide French and international audience. In 2020, following the success of the Charlotte Perriand: Inventing a New World exhibition, which welcomed a total of 476,000 visitors, the Cindy Sherman at the Fondation exhibition, whose opening was postponed due to the pandemic, finally opened its doors to the public on September 23, 2020. This exceptional retrospective, featuring more than 170 works by Cindy Sherman, spanned her entire career as one of the greatest photographers of our time, with a special focus on works from the past decade, some of which were exhibited for the first time ever. As soon as the Fondation reopened, visitors flocked to admire this universally acclaimed artist’s insightful, sensitive exploration of the notions of identity and image until the public health crisis worsened and the Fondation closed for a second time on October 29, 2020. Throughout 2021, the pandemic upended the activities of cultural institu- tions. The Fondation Louis Vuitton demonstrated agility in continuing to pursue its core missions: supporting artists and building a dialogue between key figures in modern art, leading lights of the international contemporary art scene and a wide audience, especially young people. The Morozov Collection: Icons of Modern Art, an exhibition initially due to be held in October 2020, ultimately opened on September 22, 2021, and by February 2022 had already drawn more than 1 million visitors. This highly anticipated exhibition, which has received unanimous praise from the art world, features masterpieces from the collection of European and Russian modern art assembled by the Muscovite brothers Mikhail Abramovich Morozov (1870-1903) and Ivan Abramovich Morozov (1871-1921). Presented for the first time outside Russia, The Morozov Collection echoes the 2016 Shchukin exhibition, which marked an unprecedented new era in the partnership between the Fondation Louis Vuitton and major Russian museums. A final highlight was the Fondation Louis Vuitton’s continuation of its international Hors-Les-Murs (“Beyond the Walls”) program this year, with a number of exhibitions held at its Espace Louis Vuitton locations in Tokyo, Munich, Venice, Beijing, Seoul and Osaka. Fondation Louis Vuitton A Louis Vuitton for UNICEF Reporter interacting with the Rohingya children of the Cox's Bazar refugee camp in Bangladesh in 2018 A F I R M C O M M I T M E N T T O S U P P O R T H U M A N I T A R I A N A N D S O C I A L C A U S E S AT LVMH, WE ENDEAVOR TO STAY ATTUNED TO THE PEOPLE AND THE WORLD AROUND US IN ORDER TO EXPAND OUR POSITIVE SOCIAL IMPACT AND EXPRESS OUR SUPPORT FOR THOSE IN NEED. IN THIS WAY, THE GROUP IS ABLE TO LEVERAGE ITS SUCCESS AND EXCELLENCE TO DRIVE SHARED GROWTH, PROMOTE SOCIAL INTEGRATION AND CREATE JOBS, APPLYING ITS RESOURCES AND SKILLS TO INITIATIVES THAT SERVE THE GREATER GOOD. Supporting job creation, entrepreneurship and regional development Facilitating employment for people with disabilities LVMH helps drive economic growth and social develop- LVMH also takes action to promote inclusion and access ment around the world, in all the Group’s operating to employment for people with disabilities. The Group regions, both directly at its own sites and indirectly at its works with organizations that specialize in training young partners’ locations. It has launched a raft of initiatives and people with disabilities and fostering social integration pays taxes in the countries and regions where it carries and access to employment. In France, it is a co-founder of out its activities. ARPEJEH, a nonprofit organization that brings together The LVMH Group is a longstanding supporter of entre- around a hundred companies to guide young people with preneurship. In early 2018, to help connect open innova- disabilities in their careers. In the United States, it supports tion and business development with new ways of Runway of Dreams, which works to promote employ- learning, the Group launched La Maison des Startups in ment in the fashion world for people with disabilities. France. This startup accelerator for the luxury industry is housed at Station F, the world’s largest startup campus. In the United States, Sephora joined the Fifteen Percent Promoting access to education for young people and helping those in need Pledge, an initiative that asks businesses to dedicate 15% of their shelf space to Black-owned brands, a target LVMH aims to put the renowned excellence of its Maisons which was met starting in 2021. Facilitating access to employment and social inclusion for people who have been marginalized on the job market – the very foundation of their success – to work in support of equal opportunity and wider access to education for young people. The Maisons have developed numerous partnerships with schools located near their sites and further afield. LVMH encourages access to higher education for all students – whatever their social origins, family situation As a major employer in many labor markets, LVMH pays or ethnic background – through its multiple partnerships close attention to each region’s specific employment with schools. situation. To promote social inclusion and employment LVMH and its Maisons are committed to helping disad- for people who have been marginalized on the job mar- vantaged communities in the regions where they operate. ket, the Group and its Maisons have forged partnerships Their contribution may take the form of employee involve- with nonprofits and NGOs including Nos Quartiers ont ment, product donations or financial support. UNICEF des Talents in France, United Way of NYC in the United States and Daughters of Tomorrow in Asia. and Save the Children are among the international non- profits supported by the Group’s Maisons. LVMH also supports efforts to combat sickle cell anemia through its partnerships with the Robert-Debré Hospital in Paris and the American Red Cross. 28 • 29 LVMH 2021 . Corporate philanthropyLa Samaritaine Paris Pont-Neuf, which reopened in June 2021, is revitalizing Paris’ right bank with nearly 3,000 jobs, reflecting LVMH’s positive impact on the local economy. Every day, 1,700 employees work to provide a unique experience to each and every visitor. A Y E A R O F H E I G H T E N E D S O C I A L C O M M I T M E N T IN 2021, A YEAR IN WHICH CIRCUMSTANCES REMAINED COMPLEX, LVMH AND ITS EMPLOYEES WERE HIGHLY RESILIENT AND CREATIVE, EMBODYING THE CORE VALUES THAT HAVE BEEN – AND WILL REMAIN – OUR BEST ALLY TO CONTINUE CRAFTING THE FUTURE. Throughout the crises we have weathered, our Group’s For many years, LVMH has also worked to ensure that all powerful brands and talented staff have always enabled of its employees are given equal opportunity throughout us to stand out and increase our market share. Our their careers, without discriminating based on their ethnic- employees are highly committed to the Group, and listen- ity, gender expression or identity, religion, sexual orientation, ing to them and providing them with a safe, stimulating disability or any other aspect of diversity. We are deeply work environment is a top priority. We see this mutual committed to diversity, which is one of the key drivers of commitment as a virtuous circle that reflects and rein- the Group’s performance. That’s why, in 2018, the Group forces our team spirit and sense of community. Just as implemented the Inclusion Index, a tool aimed at promoting we feel that, as leaders in our industry, it is only natural for diversity and inclusion initiatives within companies. These us to reach out to those whose lives may, at times, have included initiatives run under the EllesVMH program, been rocked by adversity. With current economic condi- which is aimed at boosting career development for tions proving especially challenging for young people, women, who currently hold 64% of executive and man- LVMH has boosted its human resources initiatives aimed ager positions and 44% of top management positions. at this group, particularly with regard to training, access to employment and social responsibility. Promoting our expertise Supporting our employees In 2021, LVMH also stepped up its efforts to preserve its métiers d’excellence (professions of excellence), as the In 2021, LVMH launched a powerful initiative to support its wealth of expertise they represent is vital to its Maisons’ employees: the LVMH Heart Fund. This fund – the only long-term future and success. The Group boasts more one of its kind in the world – offers financial, social and than 280 professions of excellence in the fields of design, psychological support to all Group employees, wherever craftsmanship and the customer experience, making LVMH they are located, to help them get through the most diffi- the company with the largest variety of these professions cult periods of their personal lives. This initiative addresses in the world, all of which are essential components of both the expectations voiced by employees in response humanity’s intangible cultural heritage. These professions to the Pulse Survey carried out within the Group in 2020, are carried out by more than 80,000 people within and the need to be there for and support our employees LVMH. In 2021, the entire LVMH Executive Committee and facing challenging circumstances amid an unprece- the Presidents of the Group’s Maisons signed the WE for dented economic and social context. In the seven months ME (Worldwide Engagements for Métiers d’Excellence) since its launch, the LVMH Heart Fund has already agreement, aimed at recognizing this community of tal- received 1,300 applications from 40 countries. ented craftspeople, whose work often takes place behind The well-being of our employees remained front and the scenes, far from the spotlight. To highlight their skills center, with the signing of LVMH’s Health and Safety Charter by all Executive Committee members and Maison and attract new talent, LVMH has launched a range of initiatives to raise awareness of these noble professions Presidents. This charter bolsters the Group’s approach to among younger generations. Through its “Excellent!” occupational health and safety through 2024 and aims to program, the Group holds job discovery workshops for develop a self-reinforcing “zero accident” culture. middle school students in France. LVMH’s Village des 30 • 31 LVMH 2021 . TalentMétiers d’Excellence, an annual vocational training fair Launched in September 2019 by Brigitte Macron and allowing students to learn about apprenticeships in these LVMH, LIVE now has three locations: Clichy-sous-Bois, professions, offered more than 400 work-linked training Valence (in the southeast of France) and Roubaix, on the positions with 39 Group Maisons and 21 partner schools Jean Arnault Campus, which was inaugurated in 2021. and universities. LVMH’s Institut des Métiers d’Excellence More than 200 people have already taken advantage of (IME) confirmed its extraordinary growth trajectory, wel- the support offered by this program to develop their coming its largest class of students since it was estab- career plans, and over 75% of them have successfully lished, with 339 new apprentices in six countries (France, found a job, begun training or started a business following Switzerland, Italy, Spain, Japan and Germany). Since 2014, their experience at LIVE. The start of the 2021 academic more than 1,400 apprentices have been trained in 27 pro- year in September saw the arrival of 180 new learners at fessions by the IME. the three LIVE campuses for a six-month program. Supporting younger generations and people undergoing retraining alike Building our future together The success of our Maisons is built on our longstanding Crafting the future means lending support to younger belief that our people make all the difference. Recent generations as they face challenging economic conditions. graduates, employees, managers and senior executives: LVMH has boosted its initiatives and programs aimed at they are all our greatest assets – our lifeblood. this group, announcing in particular that it would be hiring In a world in constant flux, where many jobs have drasti- 25,000 people under 30 around the world by the end of cally transformed from how they were several years ago, 2022. In parallel, the Group has continued to provide with some new roles not even existing before, being able practical guidance to young people as they build their to identify, attract and retain top talent within LVMH is career plans. One prominent example of this commitment key. The Group’s new “Craft the Future” employer brand is INSIDE LVMH, which offers students from all over the reflects this ambition, with thousands of in-house ambas- world a platform aimed at expanding their knowledge of sadors trained and a new social media campaign unveiled the luxury industry and providing additional training to this past December. help them prepare for their careers. It features 50 hours As a rapidly growing group, we also see being able to of original content presented by luxury industry experts, share information in real time and strengthening LVMH’s along with a 30-hour certification program with exclusive corporate culture as key priorities. That’s why the LVMH content. More than 43,000 young people have already Group has launched a new global intranet called Voices, registered on the platform, half of whom took part in the aimed at all 175,000 of our employees around the world. certification program. LVMH continues to have a very strong It serves as a single platform for all the Group’s com- appeal among young people. For the 16th consecutive munication needs, and also allows information to be year, the Group topped the Universum ranking of preferred reported and fed back by its different Maisons, regions employers among business school students in France. and professions. The Group is also very highly rated – and on the rise – in Together we will craft the future of LVMH: a future that international rankings. is inextricably linked to the world in which we live and LVMH is also taking action to improve access to employ- operate; a world that is more respectful of nature and of ment for adults over the age of 25 through the LIVE those who live in it. This is our roadmap for the year (L’Institut des Vocations pour l’Emploi) training program. ahead and beyond. Indicators a s o f De ce m be r 3 1, 2 02 1 37 Average age 175, 6 47 employees worldwide 7 1% women 4 5,076 joiners (1) Other markets 9% Asia (excl. Japan ) 25% Jap an 5% 55+ 8% 45 -54 16% 35 -44 28% EMPLOYEES BY REGION (as %) EMPLOYEES BY BUSINESS GROUP (as %) France 19% Europe (excl. France) 22% United States 20% Other activities 5% Selective Retailing 28% Watches & Jewelr y 14% Wines & Spirits 4% Fashion & Leather Goods 33% Perfumes & Cosmetics 16% EMPLOYEES BY AGE (as %) PROPORTION OF MEN/WOMEN BY BUSINESS GROUP (1) (as %) Under 25 9% 25- 34 39% 33% 35% 18% 17% Wines & Spirits Fashion & Leather Goods Perf umes & Cos metics Watches & Jewelr y Selective Retailing Other activities (1) Total permanent headcount. 61% 61% 39% 67% 82% 65% 83% 39% 32 • 33 LVMH 2021 . TalentParfums Christian Dior, May roses L I F E 3 6 0 : A I M I N G F O R S U S T A I N A B L E E X C E L L E N C E IN 2021, LVMH LAUNCHED A NEW ENVIRONMENTAL ROADMAP TO GUIDE OUR ACTIONS FOR THE NEXT TEN YEARS. LIFE 360 IS AN ACTION PLAN THAT RALLIES OUR MAISONS’ CREATIVITY AND INSPIRATION TO DESIGN PRODUCTS THAT EMBODY EXCELLENCE IN THEIR DESIGN AND SUSTAINABILITY ALIKE: PRODUCTS WITH A POWERFUL APPEAL YET A MINIMAL IMPACT ON NATURE AND THE CLIMATE. “2021 must be the year to reconcile humanity with leather, palm, beets and the iconic ingredients used by the nature,” declared António Guterres, Secretary-General of Perfumes and Cosmetics Maisons. The Group’s partner- the UN, in January during the opening ceremony of the ship with UNESCO as part of its Man and the Biosphere One Planet Summit for biodiversity. A few months later, program has enabled it to support the sustainable use of at the Group’s Shareholders’ Meeting on April 15, 2021, biodiversity with local populations in Bolivia, Ecuador, LVMH presented LIFE 360, its new environmental strat- Brazil and Peru. Meanwhile, Moët Hennessy has launched egy, which sets targets for 2023, 2026 and 2030, with the reforestation programs in Kenya, China, the United States objective of forging a new alliance between luxury crafts- and South Africa with its partner Reforest’Action, while manship and nature. With four strategic action plans LVMH Italia has partnered with the ForestaMi project, structured around biodiversity, circular design, traceability which aims to plant 3 million trees in the Milan metropol- and climate, LIFE 360 is rolled out at each individual itan area by 2030. This extensive LIFE 360 Biodiversity Maison and promotes continuous improvement in the program was presented by Antoine Arnault, the Group’s Group’s environmental performance. head of Image and Environment, at the CEO Summit that opened the IUCN World Conservation Congress held in Transforming our relationship with nature Marseille in September 2021. In 2021, LVMH and Usbek & Rica launched a series of Enhancing the appeal of the circular economy interviews on nature and living beings with prominent figures from the scientific community and civil society to LIFE 360 aims to make preserving natural resources a answer questions such as, “Are humans (really) animals central focus of product design. This is the goal of the like any other?” These discussions helped raise awareness Circular Design action plan, under which the Group aims of the crucial role of nature, on which all the Group’s busi- to apply a sustainable design approach to all of its prod- nesses undeniably depend: there can be no champagne ucts by 2030. In 2021, Louis Vuitton expanded its range without grapes, no perfume without plants, no evening of sustainably designed products, now branded with the gowns without silkworm farms. To reduce its impact on LV upcycling logo (combining Louis Vuitton’s initials with nature, LVMH has chosen to have its plant and animal the upcycling symbol), while Loewe offered a bag made supply chains certified to the highest standards for protect- entirely of leather offcuts. LVMH’s 75 Maisons offer a vast ing biodiversity and animal welfare, and has prohibited range of opportunities to explore potential new Group- the sourcing of raw materials in areas with a high risk of wide circular design practices. For example, at Berluti, deforestation and desertification. LVMH is also taking leather offcuts are reclaimed by artist Jorge Penadés and action to restore biodiversity, with the ambitious target of incorporated into furniture for Belmond hotels and stores. restoring 5 million hectares of flora and fauna habitat In 2021, Nona Source – a resale platform for the Maisons’ by 2030. To give back what it borrows from nature, the Group has implemented regenerative farming practices unused fabrics – resonated with a wide audience of in-house and outside buyers as soon as it was launched. with the assistance of a network of experts including Product durability – a core component of LVMH’s busi- Biosphères, reNature, Earthworm, Pour une Agriculture ness model – was extended by offering new services du Vivant and Savory Institute, for grapes, cotton, wool, inspired by the Watches & Jewelry business group, which, 34 • 35 LVMH 2021 . Environmentin addition to repairing products, offers them a second labeling that shows the environmental performance of life by bestowing them with a new appearance. More than fashion products, and has joined forces with cosmetics ever in 2021, innovation played a key role in optimizing the stakeholders to develop a rating system for the environ- Group’s environmental impact: LVMH and Central Saint mental impact of beauty products. Martins signed a new partnership to create a research platform focused on regenerative luxury; Fendi, in part- Taking action for the climate nership with CSM and Imperial College London, explored the possibility of transforming lab-made keratin into fibers, At the end of 2021, LVMH’s new carbon trajectory was then bio-based fur. Packaging followed a similar sustain- validated by SBTi (the Science Based Targets initiative). It able design trajectory, with the aim of eliminating the use is based on the following targets: reducing greenhouse of plastic derived from fossil fuels by 2026. The use of gas emissions from energy consumption at its sites and Eastman molecular plastics recycling technologies is one stores by 50% by 2026 (baseline: 2019); and reducing way of achieving this goal, as Parfums Christian Dior did Scope 3 emissions (raw materials, purchases, transport, for the packaging of Dior Addict Lip Maximizer, released waste, product use and end of life) by 55% per unit of in summer 2021. added value by 2030 (baseline: 2019). The Group has identified a number of key vectors to achieving these Collaborating for excellence in traceability targets, which are covered by specific action plans rolled out at all of its Maisons, including having all sites and The aim of LIFE 360 is to ensure full traceability across all stores use only renewable or low-carbon energy by 2026, the Group’s strategic supply chains, for each step from shifting toward shipping more freight by sea and by road, field to final product, with the goal of covering all sourcing and launching a green e-commerce program and a mate- channels with a dedicated traceability system by 2030. rials innovation policy focused on Scope 3 emissions. In To achieve this goal, LVMH has developed new solutions 2021, the climate roadmaps for the Group’s Maisons were tailored to each sourcing channel’s specific features, and reflected in new policies on logistics, supply chains and together with Prada Group and Cartier (a subsidiary of packaging. Starting in 2023, Hennessy will transport four Richemont) announced the launch of the Aura Block- million bottles between France and the United States via chain Consortium: a unique, global blockchain solution, sailing cargo ships through a partnership with Neoline, a open to all luxury brands worldwide to address shared maritime transport company; the Fashion and Leather challenges in responsible sourcing. LVMH has also chosen Goods Maisons (Berluti, Christian Dior Couture, Fendi, to participate in certification systems that ensure that Kenzo and Louis Vuitton) are focusing on certified or ethical, environmental and social standards are met at recycled materials with a reduced carbon impact, while each step of a material’s processing, including GOTS Guerlain, Parfums Christian Dior and Givenchy offer refill- (Global Organic Textile Standard) and RWS (Responsible able or significantly lighter packaging: for example, refills Wool Standard) for cotton and merino wool, and RJC for Christian Dior’s fragrance Sauvage use less glass, CoC (Responsible Jewellery Council Chain-of-Custody) reducing the related greenhouse gas emissions by 56%. certification for precious metals such as gold. Rigorous In fall 2021, LVMH and SAVE Energies (France’s second- traceability is also key to being able to collect reliable largest buyer of biomethane) entered into a three-year data, accurately measure a product’s environmental partnership to replace the Group’s fossil fuel consump- performance and share this information with customers, tion in France with green gas, allowing 14,000 metric tons especially as the Group has set a target of ensuring each of CO₂ equivalent emissions to be avoided each year product is covered by an information system by 2030. starting in 2023. At COP26, LVMH had the opportunity to Putting this idea into practice by making all its supplier present and share news of these achievements, along data available online, Fendi achieved a very significant with the roll-out of regenerative farming practices, which, increase in its ranking in the Fashion Transparency Index in by improving soil quality, also help maximize its carbon 2021. LVMH is also actively involved in initiatives currently capture potential. underway in France and Europe aimed at introducing The LIFE 360 program CI RCULAR DESIGN 202 3 New circular design services (repairs, upcycling, etc.) 2026 Packaging: zero fossil-based virgin plastic 2030 100% of new products covered by a sustainable design approach 2021 RESULTS 8,632  metric tons Fossil-based virgin plastic in customer packaging (target: 0 metric tons by 2026) 41% Recycled raw materials in glass and plastic packaging CLIMATE 2026 50% reduction in energy-related GHG emissions (baseline: 2019) 100% renewable or low-carbon energy in-store and on-site 2030 55% reduction and/or avoidance of Scope 3 GHG emissions (raw materials and transport) per unit of added value 2021 RESULTS –6% Energy-related CO₂ emissions (Scopes 1 & 2 – baseline: 2019) 39% Proportion of renewable energy in the Group’s energy mix TRACEA BILITY/TRA NSPARENC Y BIODIVERSITY 2030 100% of strategic supply chains covered by a dedicated traceability system 2021 RESULTS 62% Quantity of wool (merino and cashmere) traceable back to its country of origin 2026 100% of strategic raw materials certified to preserve ecosystems and water resources 2030 5 million hectares of flora and fauna habitat regenerated and/or restored 2021 RESULTS 657,000 hectares preserved or restored in 2021 61% certified cotton 99.9% of diamonds certified RJC COP 92% of grapes from LVMH vineyards have secured sustainable winegrowing certification 36 • 37 LVMH 2021 . EnvironmentJune 2021 signing of the Worldwide Engagements for Métiers d'Excellence (WE for ME), immortalized in a photograph that shows the heads of some 40 Maisons alongside Bernard Arnault at the Fondation Louis Vuitton. Each Maison was represented by a pairing consisting of its President and a virtuoso of one of its trades. LV M H A N D I T S M A I S O N S T A K E A C T I O N LVMH AND ITS MAISONS HAVE COMMITTED RESOURCES AND SKILLS TO A GROWING RANGE OF INITIATIVES IN SUPPORT OF GOOD CAUSES. LVMH Métiers d’Excellence INSIDE LVMH age Protection) and Elise Bougy (Food and Wine). LVMH's support for the Prix With 280 trades represented within INSIDE LVMH is a practical example of des Artisanes awards echoes its com- the Group, LVMH's Métiers d'Excellence LVMH’s efforts to reach out to younger mitments to passing on expertise and (professions of excellence) are the cor- generations. The platform offers students to women entrepreneurs. nerstone of our Maisons' success and from all over the world high-quality longevity. In June 2021, all 75 of LVMH’s content to expand their knowledge of LVMH Innovation Award Maisons signed the Worldwide Engage- the luxury industry, as well as additional ments for Métiers d’Excellence (WE for training to help them prepare for their At the 2021 VivaTech trade fair, under ME) agreement, reflecting the Group’s careers with a 30-hour certification the “Where Tech Meets Luxury” banner, determination to support and champion course featuring exclusive content. LVMH presented the latest innovations the unique craftsmanship, design and sales expertise that underpin its long- term success. The occasion brought LIVE by 15 of its Maisons and the solutions submitted by the 28 finalist startups in the running for the LVMH Innovation together the heads of some 40 Maisons Following the 2019 opening of the first Award, whose theme this year was “The alongside Bernard Arnault, Chairman LIVE (L’Institut des Vocations pour l’Em- Future of Customer Experience is Here”. and Chief Executive Officer of LVMH, at ploi) campus, another two LIVE centers The panel of judges picked Bambuser, a the Fondation Louis Vuitton. Each Maison were launched in 2021: one in Valence startup specialized in live video shop- was represented by a pairing consisting (southeastern France) and one in Rou- ping, as the winner. of its President and a virtuoso of one of baix (northern France). LIVE, set up by the Maison’s flagship trades. The LVMH Brigitte Macron and the LVMH Group, Métiers d’Excellence initiative also raised is aimed at adults over the age of 25 its profile in Paris and Florence with its who have been marginalized on the job LVMH’S first social and environmental responsibility report “SHOW ME” event featuring the Maisons’ market and want to build a career plan For the first time, LVMH published a sin- virtuosos and apprentices from the Insti- to find work. tut des Métiers d’Excellence. Japan also welcomed its first class of LVMH Institut des Métiers d’Excellence students. Prix des Artisanes gle consolidated report presenting all its social and environmental responsibility commitments and setting out the actions taken by the Group and its Maisons in LVMH and the magazines Elle, Elle à pursuit of responsible growth. Table and Elle Décoration joined forces to hold the Prix des Artisanes awards, LVMH and UNESCO which recognize the expertise of highly talented women working in the arts, in LVMH, a partner of the UNESCO MAB fashion, design, food and wine, and (Man and the Biosphere) program, reit- French heritage protection sectors. Four women were recognized: Janaïna erated its commitment to biodiversity at the IUCN World Conservation Con- Milheiro (Fashion), Manon Bouvier gress held from September 3 to 11, 2021 in (Design), Isabelle Roché (French Herit- Marseille. Within a shared space at the Congress, UNESCO, LVMH and its Maisons presented their vision and specific actions taken to promote biodiversity. Employment for people with disabilities Daughters of Tomorrow In 2017, Sephora implemented a program Christian Dior supported underprivi- In Asia, Louis Vuitton and Parfums Nos Quartiers ont des Talents in the United States to hire people with leged women looking for work through disabilities at its five logistics facilities.. In their partnership with Daughters of The Group is stepping up its longstand- 2021, 246 new employees were hired, Tomorrow. ing partnership with the Nos Quartiers bringing the proportion of people with ont des Talents nonprofit, under which disabilities to 9% of the workforce at young graduates from underprivileged Sephora’s distribution centers in the Charlize Theron Africa Outreach Project backgrounds are mentored by a Group United States. The goal is for employees employee. Since 2007, more than with disabilities to make up 30% of the In South Africa, Christian Dior Couture 700  young people have found jobs workforce by 2025. through this initiative. Save the Children Combating sickle cell anemia supported the Charlize Theron Africa Outreach Project (CTAOP) Youth Leaders Scholarship (YLS) program. The young women supported by this In 2009, Bulgari decided to get involved program are recognized for their LVMH has been committed for over ten with Save the Children. Through its cus- commitment to and work with local years to fighting sickle cell anemia, and tom-designed jewelry collection, the communities. The Maison has commit- continued its support of this cause in Maison has donated over $100 million, ted to cover four years’ of scholarship 2021. In addition to its partnership with helping more than two million children costs for YL scholars starting their the Robert-Debré Hospital in Paris, it and securing their access to high-qual- studies in 2021. also established a partnership with ity education. The expert craftsmanship the American Red Cross in 2020. LVMH embodied by the two Italian houses United Way of NYC shows its support through donations Acqua di Parma and Emilio Pucci and by raising awareness among its inspired an exceptional collection In the United States, TAG Heuer contin- employees. In 2021, LVMH North Amer- named Holiday Season to support Save ued to work with United Way of New ica organized a webinar on inequalities the Children’s Riscriviamo il Futuro York City, a nonprofit that provides aca- related to healthcare access with a focus (“Let’s Rewrite the Future”) project. demic support to disadvantaged stu- on sickle cell anemia. UNICEF The Marcus Graham Project the auctioning off of the Monaco Pièce dents. Thanks to this partnership and d’Art watch to raise money for the non- In the United States, Hennessy teamed profit, a new library was opened in 2021 In 2016, Louis Vuitton entered into a up with the Marcus Graham Project to at the Mill Brook Community Center in major international partnership with the launch the Never Stop, Never Settle the Bronx. United Nations International Children’s Society, a growth accelerator designed Emergency Fund (UNICEF). Since its to support African-American entrepre- Lower Eastside Girls Club launch, Louis Vuitton has raised a total of neurs. In 2021, 20 such entrepreneurs $16 million to help vulnerable children received financial support, were men- facing emergencies. Since 2021, nearly tored by the Maison’s employees, Tiffany & Co. initiated a partnership with the Lower Eastside Girls Club, a New 300 employees in France have chosen managers and directors and benefited York nonprofit that provides a safe space to donate to this cause. Rimowa also from media coverage for their projects. where girls can take part in a variety launched a unique collection, “Vol. 1”, the proceeds of which will be donated in full to UNICEF via the COVAX Facility to finance Covid-19 vaccines for the poorest countries. of  educational programs. A total of 30 employees took part in a six-month mentoring program for female high school and college students. 40 • 41 LVMH 2021 . Commitments in 2021B U S I N E S S G R O U P I N S I G H T S Dom Pérignon, Hautvillers Abbey LVMH Wi nes & Spir its 2021 A VA L U E - E N H A N C I N G S T R A T E G Y F O R L A S T I N G S U C C E S S LVMH owes its global leadership in premium wines and spirits to a unique group of exceptional Maisons based in 2022 Outlook Champagne, Bordeaux, Burgundy and other highly While ensuring that it remains alert and responsive amid renowned wine-growing regions. Inspired by their vision- the prevailing volatility and tight supply environment, ary founders and drawing on their strong heritage – the Wines & Spirits business group remains resolutely which for some goes back hundreds of years – they all share optimistic about the medium-term development prospects the key values of excellence and creativity, combining of its Maisons. Moët Hennessy will continue to strengthen tradition with innovation. its portfolio and accelerate the transformation and selectiv- ity of its distribution, while remaining close to consumers Well-balanced, worldwide presence by offering them an ever-expanding and innovative range of experiences. Excellence, authenticity and sustainability In the current context, Moët Hennessy continues to pursue remain key, backed by the launch of bold and inspiring a value-enhancing strategy focused on the highest-quality innovations and collaborations. More aware than ever of the products. The balanced geographic expansion of its port- value of their heritage, many of which date back several folio of brands continues thanks to a powerful and agile centuries, all the Maisons are deeply committed to acting global distribution network present in over 160 countries. sustainably, protecting the environment, improving soil regeneration with more biodiversity and significantly Responsible procurement policy reducing their carbon footprint. To support future growth and maintain the very high quality that has made its Maisons a success, the Wines & Spirits business group pursues a dynamic, responsible procurement policy. All the vineyards owned by LVMH have had sustainable winegrowing certification since 2017, and the Maisons forge partnerships with winegrowers by helping their independent grape suppliers comply with these certifications. Significant work is also being done in the area of packaging. The Maisons are devoting equal effort to actively developing their production capacities, as seen in the responsible, innovative and efficient Pont Neuf bottling and logistics facility inaugurated by Hennessy in 2017, which reflects the Maison’s long-term vision. 2021 at a glance SUSTAINED DEMAND IN THE UNITED STATES, A RECOVERY IN EUROPE AND A STRONG REBOUND IN CHINA IN A CONTEXT OF TIGHT SUPPLY CONSTRAINTS 2021 REVENUE BY REGION (as %) Other markets 12% Asia (excl. Japan ) 21% Japan 5% France 6% Europe (excl. France) 18% United States 38% REVENUE (EUR millions) 5,974 5,576 4,755 2019 2020 2021 CHAMPAGNE SALES VOLUMES (in millions of bottles) 64.7 66.8 52.4 COGNAC SALES VOLUMES (in millions of bottles) PROFIT FROM RECURRING OPERATIONS (EUR millions) OPERATING INVESTMENTS (EUR millions) 98.7 94.6 102.6 1,729 1,863 325 320 328 1,388 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021 Major strategic priorities Pursue value- Develop production Further improve Accelerate efforts enhancing strategy capacities to ensure efficiency of distribution to protect the environment, sustainable growth in key markets in particular in supply chains and packaging 46 • 47 LVMH 2021 . Wines & SpiritsDom Pérignon The Wines & Spirits business group turned Champagne volumes were up 27% with respect to in a record year and reaffirmed its position as leader 2020 and 3% compared with 2019, with particularly in luxury wines and spirits. The industry’s strong recovery – despite the pressure it placed on naturally limited supplies – favored the continuation of strong growth in Europe and the United States. Moët & Chandon achieved good growth in all regions, particularly in the United States and in Europe, where the value-enhancing strategy. 2021 was also a year it beat its record sales volumes of 2018 worldwide. marked by the ambition to get closer to consumers At the end of the year, the “Effervescence” program by developing unique sales experiences, in particular brought together friends of the Maison, which through travel, at department stores and within the Maisons themselves, as illustrated by the many initiatives launched and underway. They reaffirmed has been an icon of celebration and history’s most memorable events since 1743. Dom Pérignon’s sales were boosted by the launch of three vintages: their social and environmental commitment through Vintage 2012, Rosé Vintage 2008 and Vintage 2003 the “Living Soils – Living Together” program. This was Plénitude 2. The year also saw a high-profile underscored by the opening of the Robert-Jean de Vogüé research center in France’s Champagne region, which will support the Maisons in their transition collaboration with world-famous star Lady Gaga. Veuve Clicquot achieved a record performance, backed by the opening of the Comète site, its new to more sustainable practices and their adaptation production center. The Maison expressed its bold to climate change. values through its collaborations and ramped up 48 • 49 HIGHLIGHTS2021LVMH 2021 . Wines & Spiritsits efforts to promote women’s entrepreneurship success. The year also saw the release of the excellent with several international initiatives under its Bold program. Ruinart recorded very strong growth in all its markets and reaffirmed its commitment to the environment with the rollout of its sustainably designed case and its agroforestry winegrowing pilot project. Krug’s remarkable results confirmed the success of its value-enhancing strategy, exemplified by the launch of Krug Grande Cuvée 169e Édition and Rosé 25e Édition. LVMH acquired a 50% stake in the share capital of Armand de Brignac. Jointly owned with Shawn “Jay-Z” Carter, the brand continued its growth and confirmed its super-luxury positioning. The Estates & Wines Maisons showed strong momentum. A new range of Terrazas de los Andes wines was launched in China and met with great 2021 vintage of Cloudy Bay Sauvignon Blanc and a performance by Ao Yun that exceeded expectations, confirming the potential of Yunnan province wines. Château Galoupet, acquired in 2019, continued its transition to organic winegrowing. Château d’Esclans’ range of rosé wines accelerated its development following the takeover of its distribution by the Moët Hennessy network. Chandon benefited from a comprehensive redesign of its image, communications and packaging. Its momentum was boosted by the success of Chandon Garden Spritz, launched in Europe, the United States and Australia. For the third year in a row, Hennessy was the leading international premium spirits brand, achieving Hennessy Dom Pérignon OUR MAISONS TAKE ACTION Moët Hennessy promotes agroforestr y As part of its Living Soils program, Moët Hennessy began to implement regenerative farming practices across all its vineyards. This involved specific measures to protect biodiversity and soil, such as discontinuing the use of herbicides and planting trees at its vineyards. Moët Hennessy also partnered with Reforest’Action. Planting hedges and individual trees creates pockets of biodiversity, which attract birds and insects and fight certain diseases naturally. Ruinart has already restored 40 hectares and planted over 10,000 trees in the Champagne-Ardenne region alone. In the Cognac region, Hennessy planted over 15,000 trees from 30 different species, spanning more than 4 km of hedges. The Maison set a target of replanting more than 1,000 km of hedges by 2030. Moët Hennessy also committed to preserving wooded areas in danger across the globe, including in Kenya, South Africa and China. This will cover 50,000 hectares by 2030. Veuve Clicquot Cheval Blanc 50 • 51 LVMH 2021 . Wines & Spiritsan exceptional performance thanks to the strength innovation and growth plans. Both brands took of its brand in the United States, continued recovery home prestigious awards, including “Master Distiller in China and acceleration in Europe and Africa. In a tight supply environment, its volumes were up 9% with respect to 2020 and 4% compared with 2019. In keeping with its pioneering spirit, the Maison established an exceptional global partnership with the NBA. It expanded its production capacity and invested in a dedicated store network on the island of the Year” for the fifth time. Belvedere reaffirmed its commitment to crafting natural spirits rich in character with the launch of Belvedere Organic Infusions, its first certified organic product line. Emerging, exceptional spirits brands Woodinville, Volcán De Mi Tierra and Cuban rum Eminente experienced strong growth thanks to the expansion of Hainan in China. Hennessy also stepped up its of their distribution and production capacities. commitment to its key priorities of protecting living soils, reforestation and reducing its carbon footprint by 50% by 2030. The unprecedented performance of Glenmorangie and Ardbeg whiskies was in line with their ambitious Moët Hennessy expanded its online sales presence with the launch of Clos19 in France, the OurCellar site in the United States and the joint acquisition with the Campari Group of the Italian company Tannico, which also owns VentealaPropriete.com in France. Krug Château d’Yquem OUR MAISONS TAKE ACTION Moët Hennessy inaugurates a new research center devoted to innovation LVMH’s premium champagnes, spirits and wines division Moët Hennessy inaugurated the Robert-Jean de Vogüé research center devoted to further- ing knowledge of winegrowing and evolving its practices. The building, designed by architect Giovanni Pace, is in France’s Champagne region near the state-of-the-art Mont Aigu production facility. Its research will focus on four areas: biotechnology, plant physiology, process engineering and sensory analysis. The Robert-Jean de Vogüé research center will continue the initiatives for sustainable, resilient winegrowing unveiled in 2020 with the “Living Soils – Living Together” program and help the Maisons transform their practices and share their knowledge with each other and with outside organizations. Hennessy Ruinart Eminente 52 • 53 LVMH 2021 . Wines & Spirits C H A N D O N Ga rden Spr it z: A s u n ny new c reat ion Chandon crafts exceptional sparkling wines at its six wineries in Argentina, California, Brazil, Australia, China and India. Ever true to the pioneering spirit that has taken it all over the globe since its founding in 1959, the Maison now unveils its latest creation: Chandon Garden Spritz. Sophisticated and authentic, simple and different, it is a sparkling wine with a special touch: a macerated liqueur made from natural extracts of orange peel, herbs and spices using a skilfully crafted recipe with no artificial flavors or coloring. Its secret? The Valencia oranges, which are selected for their unique balance of acidity and sweetness, grown without pesticides and hand-picked at a family farm in the province of Entre Ríos, Argentina. 2021STORIES54 • 55 LVMH 2021 . Wines & SpiritsA shared concern for global warming is behind Movement, the permanent installation created for Ruinart by Tomás Saraceno and the artistic community Aerocene. The work sensitively highlights the urgent need to tackle climate change. An increase of only one degree Celsius is enough to lift this blow-up aerosolar sculpture into the air, echoing the disruption caused to the delicate equilibrium of the vine’s life cycle by a one-degree rise in temperatures in the Champagne region. It floats up and takes flight, drifting and spinning, carried by nature’s rythms as a sensor tracks its invisible trail creating a digital drawing that visitors can watch on-site via an app. Using science, this project combines art with nature to help people understand the forces of nature, and reflects the Maison’s commitment to preserving the environment through sustainable winegrowing. R U I N A R T A r t meet s n at u re i n t he s k ies ab ove Ch a mp ag ne 56 • 57 LVMH 2021 . Wines & Spirits G L E N M O R A N G I E A zu m a Ma koto rev i s it s t he Ma i s on’s 18 -yea r- old wh is ky w ith a f lor a l scu lpt u re Glenmorangie 18 Years Old is one of the Scottish Maison’s best-loved single malts. It has inspired a unique collaboration with Japanese botanical sculptor Azuma Makoto, who has created a limited-edition bottle design. It showcases his floral masterpiece Dancing Flowers of Glenmorangie, which celebrates the whisky’s vibrant floral notes of jasmine, geranium and narcissus. Azuma Makoto, who created the artwork in his Tokyo studio, used nearly one hundred different blooms to celebrate this iconic whisky through the language of flowers. 58 • 59 LVMH 2021 . Wines & SpiritsH E N N E S S Y A n exc lu s ive Fr a n k Geh r y des ig n for t he Ma i s on’s “Ex t r a Old” cog n ac To mark Hennessy X.O’s 150th anniversary, Frank Gehry reinterpreted its iconic decanter in bronze, crumpled gold and glass. Movement – a key theme in all his buildings, with their creased floors, tilting walls and gravity-defying shapes – again inspired Frank Gehry, who revisited Hennessy X.O with the same vision, dedication and curiosity he applies to his architectural designs. Just as he respects the environment surrounding his buildings, the architect paid tribute to the rituals, the composition, the art of cognac distillation, and the Maison’s longstanding expertise. He drew his inspiration from Hennessy X.O’s rich blend, fertile lands and gnarled vines, and from the reflections of the Charente river that runs through the Hennessy estate. The results are striking. The iconic bottle is enveloped in a crinkled sleeve of bronze dipped in 24-carat gold, and this sculpted decanter is in turn encased in a fractured glass glorifier which evokes the theme of water reflecting light. 60 • 61 LVMH 2021 . Wines & SpiritsChâteau d’Esclans looks out across the Mediterranean from its exceptional hinterland location between Fréjus and Saint-Tropez. The first traces of the Château’s site date back to the times of the Gauls during which its location served as a lookout point to spot intruders coming by boat into the Gulf of Fréjus. The Château’s cellar structure or foundation (known today as the oldest in the region) housed an original Château that was given by the C H Â T E A U D ’ E S C L A N S A n except ion a l w i ne es t ate i n t he hea r t of Provence Count of Provence to Gérard de Villeneuve in 1201. The current Château, inspired by Tuscan villa design, was built during the mid-19th century. The estate is known for its old Grenache vines – some of which are over 90 years old – which produce grapes that concentrate more flavors than younger vines. It is here, in 2006, that the “rebirth of rosé” began, aimed at elevating Provence wines to world-class renown. 62 • 63 LVMH 2021 . Wines & SpiritsLouis Vuitton LVMH Fash ion & Leat her Good s 2021 A U N I Q U E A S S E M B LY O F C R E A T I V E T A L E N T Louis Vuitton’s global preeminence, Christian Dior’s exceptional development, the growth of a collection of 2022 Outlook unique brands whose success is consolidated year after year, The Fashion & Leather Goods Maisons enter 2022 with and its active support for young designers make LVMH a confidence. While maintaining the efforts needed to key player in the fashion and leather goods industry. adapt to the economic environment, they can count on Inspired designers their dedicated staff to consolidate their key strengths: exceptional expertise, intensely creative collections and an excellent customer experience. Louis Vuitton will Working with the best designers, while respecting the spirit continue its development, focusing on the exceptional of each brand, is one of our strategic priorities. Our creative creativity that runs through everything it does, and will directors promote the Maisons’ distinctive identities, and carry on its tradition of captivating creative collabora- are the artisans of their creative excellence. tions. The Maison will step up its quest for excellence in Balance between iconic products and innovation its physical and digital distribution networks to ensure that the entire customer experience is enchanting, unique and accompanied by the unparalleled quality of service it is known for. Christian Dior will aim to continue its strong Since 1854, Louis Vuitton’s renown has been built on the growth in all of its markets, with a number of high-profile flawless execution of its unique trunk-making expertise, openings and events. The highlight of 2022 will be the its full control over distribution and its exceptional creative reopening of its historic store at 30 avenue Montaigne in imagination: a source of perpetual renewal and innova- an exceptional new format. Responding to strong demand tion. Its product line has continuously expanded for over from its customers, Fendi will open a number of flagship 150 years with new models – from luggage to handbags stores in its key markets. Celine’s growth will be spurred and more – and new materials, shapes and colors. by the selective expansion of its store network and the Ever since its first show, dubbed “New Look” by the press, development of its omnichannel strategy to continually Christian Dior has continued to redefine fashion as it has improve how it serves its customers. Over the next few become an icon of French luxury throughout the world. months, this unique group of Maisons will continue to Monsieur Dior’s unique vision is conveyed today with advance toward an ever more sustainable and responsi- bold inventiveness throughout the Maison’s entire range. ble vision of luxury. The ongoing rollout of two innovative By striking the right balance between new releases and circular economy programs will be one of the driving iconic lines, these two Maisons continue to dazzle and forces behind this objective. surprise their customers, making their boutiques ever more inspiring. An engaged industry leader LVMH has always been committed to supporting young designers and up-and-coming talent. The LVMH Prize for Young Fashion Designers, which recognizes the creative talent of an outstanding designer every year, was created to reaffirm this commitment. As a fashion industry leader, LVMH feels that is our vocation to nurture the most promising creative talent. We also feel it is our responsibility to ensure the well-being of the fashion models who work for our Maisons, which is why we decided to draw up the Charter on Working Relations with Fashion Models and their Well-Being. 2021 at a glance EXCEPTIONAL PERFORMANCES OF LOUIS VUITTON, CHRISTIAN DIOR, FENDI, CELINE AND LOEWE 2021 REVENUE BY REGION (as %) Other markets 8% Asia (excl. Jap an) 41% France 5% Europe (excl. France) 16% United States 21% Jap an 9% REVENUE (EUR millions) PROFIT FROM RECURRING OPERATIONS (EUR millions) OPERATING INVESTMENTS (EUR millions) 30,896 12,842 1,199 22,237 21,207 7,344 7,188 1,131 827 2019 2020 2021 2019 2020 2021 2019 2020 2021 Major strategic priorities Continue to develop Louis Vuitton, Continue to pursue Build on the success of the other blending the timeless and the modern, while preserving unmatched quality standards and an exclusive distribution channel, which is unique worldwide Dior’s dynamic growth Maisons, in particular Celine, Loewe, Fendi and Loro Piana 66 • 67 LVMH 2021 . Fashion & Leather GoodsLouis Vuitton, Spring/Summer 2022 show, Miami, “Virgil Was Here” The strong growth achieved by the Fashion & Leather accessories, illustrating the encounter between Goods business group reflected the solid progress the Italian art and design studio’s boundless creativity made by this unique collection of Maisons and the and Nicolas Ghesquière’s contemporary vision. exceptional performance of Louis Vuitton, Christian Dior, The second half of the year saw the return of in-person Fendi, Celine and Loewe. Our Maisons were backed fashion shows held with an audience in inspiring by their highly engaged and agile staff, with several key locations: the Louvre in Paris, followed by Shanghai for assets – creativity coupled with an unrelenting focus the Women’s Spring/Summer 2022 collection and Seoul on excellence, and digital tools to stay connected for the Fall/Winter 2021 Men’s collection. Louis Vuitton with their customers – playing a major role throughout strengthened its ties with the world’s most prestigious the global public health crisis. For Louis Vuitton, the end of the year was saddened by the loss of Virgil Abloh, who had served as Creative sporting events: the trophy cases for the 2023 Rugby World Cup to be held in France, the Monaco Grand Prix Formula 1 race and the Davis Cup tennis tournament Director of Menswear since March 2018. Using his vision were custom-made by the Maison’s craftspeople at its and his unique talent to challenge established practice Asnières workshop, while its partnership with the NBA in fashion, he was among those who most brilliantly continued. Its range of fragrances was expanded expressed the creative freedom and timeless modernity with the Extraits collection, composed of five scents of Louis Vuitton. The Maison paid a deeply emotional whose bottle was designed by Frank Gehry, and the tribute to him at the runway show in Miami “Virgil Was Spell On You fragrance showcased in a video starring Here”, on November 30. Léa Seydoux. At its stores and through its original, Illustrating its creative energy and its pursuit of high-quality digital initiatives, the Maison continued excellence in craftsmanship, the Maison continued to offer its customers a unique experience. The store its dialogue with the world of art, reinvented its iconic network was expanded with the inauguration models and unveiled a number of initiatives in connection of an emblematic store in Tokyo and the opening with the bicentenary of its founder’s birth. The LV Pont 9 at La Samaritaine Pont-Neuf in Paris. Committed to handbag collection welcomed a soft, rounded new making its products ever more sustainable, particularly version, while the Petite Malle, a symbol of the Maison’s by focusing on repairability from the very beginning rich heritage, took the spotlight in an array of new of the design process, the Maison also stepped up its formats. By reinterpreting the Maison’s signatures, efforts to reduce their environmental impact throughout the new Bravery high jewelry collection also paid tribute to its founder. A collaboration with Fornasetti gave their entire life cycle. The LV Pillow leather goods collection and the sustainable Felt Line in Menswear were rise to a multifaceted collection of ready-to-wear and two illustrations of this approach in 2021. The Vendôme 68 • 69 LVMH 2021 . Fashion & Leather GoodsHIGHLIGHTS2021workshop is yet another reflection of Louis Vuitton’s and Peter Doig. The store network continued to expand commitment to sustainable, high-quality craftsmanship with a number of high-profile openings around dedicated to responsible design. Christian Dior Couture recorded an excellent year, with remarkable growth in all its product categories the world. The Christian Dior: Designer of Dreams exhibition made stopovers in Chengdu, at the Brooklyn Museum in New York and in Doha, Qatar. As part of with local customer bases. The Maison continued to be its Women@Dior program, the Maison to hold a virtual buoyed by the wealth of inspiration of its designers: conference entitled “Dream for Change”, which was Maria Grazia Chiuri for its women’s collections and Kim Jones for Dior Homme. The Women’s Winter 2021 ready-to-wear collection filmed in the Hall of Mirrors attended by 1,500 young women from 25 countries. Fendi turned in a record year, featuring the success of Kim Jones’ first collections in collaboration with Silvia at the Palace of Versailles generated millions of views Venturini Fendi and Delfina Delettrez Fendi as well as online. The 2022 Cruise show – the first show open to strong growth in all its product categories. The Peekaboo guests after months of pandemic-related restrictions – and Baguette lines along with the new Fendi First bag was held against the spectacular backdrop of the drove sales in leather goods. Ready-to-wear and Panathenaic Stadium in Athens. An embroidered silk accessories also saw remarkable growth. The capsule thread textile installation by artist Eva Jospin served as collection born out of the Maison’s creative collaboration an exceptional backdrop for the Fall/Winter 2021-2022 with the SKIMS brand generated record sales. A number Haute Couture show held at the Musée Rodin. The new of flagship stores were inaugurated in New York, Dior Caro bag was launched, featuring the Maison’s Shanghai and Sydney. The “hand in hand” project, which legendary cannage pattern, while several of its classic showcases Italian craftsmanship, was unveiled to the models were reimagined into unprecedented dimensions. public at an exhibition held at the Palazzo della Civiltà The new RoseDior high jewelry collection designed by Italiana, the Maison’s headquarters in Rome. This initiative Victoire de Castellane was unveiled, featuring 54 pieces reflected its desire to support the development of craft inspired by roses. Capsule collections, including the trades and promote this tradition of passing on skills Dioriviera line in the summer and DiorAlps in the winter, appeared at a series of stores around the world. Colorful window displays and pop-up locations also accompanied and excellence, both in Italy and beyond. It was a record year for Celine, marked by the success of its ready-to-wear lines designed by Hedi Slimane, the launch of Dior Homme collections designed in buoyed by digital fashion shows staged and filmed collaboration with major artists such as Kenny Scharf by Slimane himself. Leather goods benefited from Fendi Loro Piana OUR MAISONS TAKE ACTION Nona Source: The first res ale platform for materials from the Group’s Fashion & Leather Goods Maisons In April 2021, LVMH launched Nona Source, the first online resale platform for  exceptional materials from its Fashion & Leather Goods Maisons. Created by Group employees as part of the DARE (Disrupt, Act, Risk to be an Entrepreneur) intrapreneurship program, Nona Source fits within LVMH’s LIFE 360 environmental strategy by revolutionizing sourcing and promoting circular design. Nona Source’s innovative digital platform offers high-end fabrics and leathers to young designers and brands in Europe at competitive prices to promote creative reuse. All materials are appraised by experts and showcased on the site. The Group’s Maisons take part in this initiative not only as suppliers but also as customers, upcycling materials to give them a new lease on life. Christian Dior Berluti 70 • 71 LVMH 2021 . Fashion & Leather Goodsgrowth in the Triomphe and 16 lines. Investments with strong growth in the United States and a highly in its omnichannel strategy also played a key role impressive surge in online sales. With its clearly affirmed in the Maison’s new gains. Loro Piana saw solid growth and expanded its customer base. A number of high-profile initiatives contributed to style, the Maison was buoyed by the success of the Tote Bag in leather goods, Heaven in ready-to-wear and Jogger in footwear. The brand enjoyed positive this momentum: the launch of the Sesia bag, made of responses to its fashion shows and a high level exceptionally high-quality leather; a collection designed with Japanese artist Hiroshi Fujiwara; and the renewal of the Maison’s partnership with the European Team for of engagement on social media. Berluti benefited from the development of a policy to build strong, personalized connections with its the Ryder Cup golf tournament. Reaffirming its long- customers. Ready-to-wear sales were boosted by standing commitment to sustainable development, Loro the launch of the Essentials collection. The “lifestyle” Piana published its first environmental report to present category saw the enthusiastic reception of its new the initiatives it has taken and share its vision for the future. Loewe also had a record year. Online sales grew significantly. Customers, the media and fashion Home & Office line. With a new color palette available in leather goods and footwear, the Patina Rainbow collection illustrated the Maison’s unique expertise professionals were all equally impressed with the wealth in the art of patina. A number of stores opened in China, of inspiration and modernity displayed by Jonathan and a flagship store was inaugurated in Tokyo’s Ginza Anderson’s collections. Alongside the Puzzle bag, the Flamenco line and the new version of the Amazona stood out. The Surplus Project, a Loewe initiative aimed district in Japan. As borders gradually reopened, RIMOWA saw encouraging signs of recovery. Its Never Still soft bags at recycling leather from previous collections to create saw promising success. The Personal line was expanded new designs, was presented at the IUCN World to include models made of aluminum, the Maison’s Conservation Congress. Givenchy reached a key milestone with the arrival in stores of Matthew Williams’ first collection and the launch of the Cut-Out bag and the 4G line. The second half of the year featured two ready-to-wear collaborations, with artists Chito and Josh Smith. 2021 was a year of new energy for Marc Jacobs, iconic material. The luggage collection was enriched with the reintroduction of iconic designs, spotlighted through a new campaign and four renowned ambassadors. Kenzo announced the appointment of Japanese designer Nigo as Creative Director of its collections. Pucci named Camille Miceli as its Creative Director. Loewe Celine OUR MAISONS TAKE ACTION Louis Vuitton’s Felt Line fits perfectly into the Maison’s “Our Committed Journey” program At the Louis Vuitton Men’s Fall/Winter 2021-2022 show, Virgil Abloh unveiled a Keepall bag designed in a jacquard made from recycled materials, with a unique look inspired by moving blankets. Building on this upcycling initiative, the Maison presented the Louis Vuitton Felt collection featuring three bags made from the same sustainable material: 43% certified organic cotton, 20% recycled wool and recycled polyester. The lining is 100% recycled polyester, sourced from deadstock. The bags’ corners and chains are produced using 70% recycled plastic, and the straps and handles are made of LWG (Leather Working Group)-certified leather, attesting to the high environmental standards adhered to in tanning. RIMOWA Marc Jacobs 72 • 73 LVMH 2021 . Fashion & Leather Goods D I O R Dior her it age a nd A mer ic a n cu lt u re r ub s hou lders at t he Brook ly n Mu s eu m After its resounding success at the Musée des Arts Décoratifs in Paris, the Christian Dior: Designer of Dreams exhibition travelled to New York’s Brooklyn Museum. A selection of archives and gowns retrace the Maison’s history and close affinity with America. The exhibit opens with a voyage through time and space that reveals the cultural and artistic journey of founder Christian Dior from 30 avenue Montaigne to the heart of cosmopolitan America. Dior’s very first haute couture creations – some of which have never been seen by the public – are exhibited alongside exceptional Brooklyn Museum pieces, offering visitors a remarkable interplay between Dior’s unique heritage and the New York museum’s rich collections. Visitors can also admire models worn by some of the world’s most celebrated actresses, from Grace Kelly to Jennifer Lawrence. As the ultimate magical touch, the museum’s central atrium evokes an enchanted garden under a star-covered sky, in reference to the couturier’s lucky star. 2021STORIES74 • 75 LVMH 2021 . Fashion & Leather Goods L O U I S V U I T T O N The Capucines bag: A sy mb ol of moder n fem i n i n it y For over 160 years, heritage, fine craftsmanship and innovation have been Louis Vuitton’s core values and hallmark. This unique approach is behind the Capucines – a timeless, ingenious bag that is instantly recognizable by its minimalist shape and sophisticated attention to detail. Lensed by photographer Steven Meisel, French actress Léa Seydoux is the iconic bag’s current ambassador in a campaign that illustrates the intimate relationship between a woman and her handbag. The Capucines bag – named after Rue Neuve-des- Capucines, where Louis Vuitton opened his first store in 1854 – is a symbol of contemporary femininity, with its equally exacting standards of elegance, functionality and versatility. Thoughtfully and ingeniously designed, this beautiful bag is assembled in over one hundred steps and is a pure product of Louis Vuitton’s traditional expertise. A marvel of technical skill, inventiveness and excellent craftsmanship, the Capucines has the status of a modern classic.  L O E W E Spi r ited aw ay i nto M iy a za k i ’s f a nt a sy world Loewe unveiled a new chapter in its collaboration with Studio Ghibli. A year after the Maison’s acclaimed collection celebrating Hayao Miyazaki’s animated film My Neighbor Totoro, Creative Director Jonathan Anderson designed an exclusive capsule to honor Spirited Away, Miyazaki’s 2001 ode to loyalty and friendship. The collection offers a moment of escapism into the film’s fantastical world, with clothes and accessories crafted by Loewe artisans who skillfully combine materials and textures to bring the characters to life. 76 • 77 LVMH 2021 . Fashion & Leather Goods D I O R Grec i a n i n s pi r at ion b eneat h t he Pa r t henon Dior’s 2022 Cruise collection was inspired by series of photographs of an haute couture range by Monsieur Dior taken near the Parthenon in 1951. Maria Grazia Chiuri took the Maison back to Athena’s city, bringing the ancient Greek goddess back to the future and upending conventions. The Maison’s Artistic Director takes her cue from pioneering Surrealist painter Giorgio de Chirico, whose work is infused with nostalgia for Greece and depicts metaphysical settings frozen in silent contrasts of light and shade. She also explores the universe of cosmopolitan gallery owner Alexandre Lolas, who maintained close ties with Greece and had a home in Athens. Artist Pietro Ruffo reinterprets the silhouettes of ancient Greek wrestlers and a camouflage pattern for a range of sportswear garments. Maria Grazia Chiuri highlights the way multi-faceted representations of beauty have influenced Dior’s interpretations of femininity. 78 • 79 LVMH 2021 . Fashion & Leather GoodsC E L I N E A s u n-k i s s ed col lec t ion s et ag a i n s t t he Ba ie des A n ges Hedi Slimane chose the Baie des Anges (Bay of the Angels) as the backdrop for his third filmed fashion show and as the theme for Celine’s 2022 Women’s Spring-Summer collection. Capturing the spirit of the Maison, he restyled its hallmark bourgeois dress codes – small checked jackets, roomy blouses, Triomphe leather handbags with golden chains – by adding a sporty, masculine twist with hoodies, parkas, sailor jerseys, boaters and fedoras. Celine’s new High Perfumery ambassador, Lalisa Manoban, along with the Maison’s other brand ambassadors – Kaia Gerber, Diana Silvers and Suzanne Lindon – were in attendance and lent their elegance to the show. Reviving the French Riviera’s golden age, their outfits set off by the radiant sunshine, they catwalked around Nice’s architectural landmarks: down the Promenade des Anglais, past the mythical Hotel Negresco and the Villa Massena and up at the Observatory’s promontory, which boasts the most spectacular views of the city and the Mediterranean. 80 • 81 LVMH 2021 . Fashion & Leather Goods F E N D I “ h a nd i n h a nd ”: Celebr at i n g excel lence i n It a l i a n cr a f tsm a n sh ip Fendi’s hand in hand exhibition held at the Palazzo della Civiltà Italiana, the Maison’s headquarters in Rome, was a sequel to the eponymous project celebrating traditional Italian craftsmanship initiated in 2020. The exhibition spotlighted 20 handmade reinterpretations of Silvia Venturini Fendi’s iconic 1997 Baguette bag, each one a showcase of unique expertise from an Italian region. The initiative is part of a partnership between the Maison and Italian artisans, who were invited to transform the emblematic Baguette bag into a work of art. Their reinterpretations, which are as varied as they are elaborate, include extravagant stone and metalwork, complex mosaic art, delicate cotton embroidery and flawless leatherwork. As well as producing these one-of-a-kind pieces and forging strong bonds with Italian artisans, the “hand in hand” project helps safeguard their expertise and creativity and share it with the world. 82 • 83 LVMH 2021 . Fashion & Leather GoodsLouis Vuitton’s precious leather handbags are now crafted in a former abbey in north-western France between the regions of Le Perche and La Petite Beauce. The new workshop opens a new chapter in the history of exceptional leather goods. The abbey’s large-scale conversion took three years and was carried out in partnership with the town of Vendôme and supervised by Les Monuments Historiques, France’s listed buildings authority. The abbey’s old clock – now restored by an artisan from founder Louis Vuitton’s native Jura region – is once again the building’s beating heart. The Maison’s ambitious scheme has restored its original volumes to the building, which will celebrate its millennium in 2031. L O U I S V U I T T O N The Vendôme workshop: A for mer abb ey t r a n s for med i nto a s howc a s e for prec iou s leat her work 84 • 85 LVMH 2021 . Fashion & Leather GoodsParfums Christian Dior, Château de la Colle Noire located in Montauroux, in the heart of the Grasse region LVMH Per f u mes & Cosmet ics 2021 F O C U S I N G O N Q U A L I T Y A N D C U L T I VA T I N G U N I Q U E N E S S LVMH is a key player in the perfume, makeup and skincare sector, with a portfolio of world-famous Maisons 2022 Outlook as well as younger brands with a promising future. The LVMH’s Maisons are well positioned to stand out in their creative momentum of LVMH’s Maisons is driven by competitive environment. While remaining highly vigilant growth in its iconic lines as well as bold new products. over the months to come, they will boost innovation and They are all driven by the same values: the pursuit of continue to invest in their communications, ensuring excellence, creativity, innovation and appeal. selectivity in their retail networks and creating compel- Unique creative momentum through its image as a major brand rooted in the world of ling digital experiences. Focusing on building its appeal couture, Parfums Christian Dior has set ambitious leader- With surging demand in Asia and the huge popularity of skincare, the global perfume and cosmetics market is highly competitive, with increasingly compact innovation ship targets. The Maison will continue to innovate in its icons, especially Sauvage, Miss Dior, Rouge Dior, J’adore and Prestige. Its directly operated stores will continue cycles. In this context, all of LVMH’s Maisons continue to their expansion, in particular in China. Expanding the pursue their objective of gaining market share, which share of online sales and digital communications is also a depends more than ever before on quality, product per- key priority, along with effective supply chain manage- formance and a robust innovation policy. In the heart of ment in a context of heightened volatility. France’s Cosmetic Valley business cluster, researchers at Guerlain will expand its international presence, paying LVMH’s Hélios R&D facility play a crucial role in helping the particular attention to the selectivity of its distribution. Its Maisons meet these requirements. The Maisons also uphold momentum will be driven by strong growth in skincare their commitment to biodiversity and sustainable design. combined with its expertise in spa treatments, the devel- Excellence and innovation in retailing energy in makeup and an acceleration in digital initiatives. opment of its fragrance ranges toward Collections, new In 2022, the Maison will celebrate the 15th anniversary All the brands are accelerating the implementation of of its “In the Name of Beauty” sustainability program. their online sales platforms and stepping up their digital Parfums Givenchy will enrich its range of fragrances and content initiatives. Excellence in retailing is key. It requires continue its expansion into makeup. Acqua di Parma will expertise and attentiveness from beauty consultants, as relaunch its iconic Colonia range. Make Up For Ever will well as innovation in sales, both in stores and online. Our launch a further improved version of its HD Skin flagship brands are actively incorporating digital tools to enhance line, developed by its community of makeup artists. the customer experience and attract new consumers. Benefit will further expand its range of blushes while The Group’s refusal to engage in excessive special offers continuing to innovate in its brow collection. Parfums and parallel sales, although such practices are used by a Kenzo will continue reviving its historic fragrances, number of its competitors, helps ensure the powerful drawing on the Maison’s French and Japanese roots. appeal of LVMH’s Maisons. Perfumes Loewe and Maison Francis Kurkdjian will open their first store in China. 2021 at a glance CONTINUED SELECTIVE DISTRIBUTION, STRONG REBOUND IN PERFUME AND RAPID PROGRESS IN SKINCARE 2021 REVENUE BY REGION (as %) Other markets 10% Asia (excl. Jap an) 42% France 9% Europe (excl. France) 19% United States 16% Jap an 4% REVENUE (EUR millions) PROFIT FROM RECURRING OPERATIONS (EUR millions) OPERATING INVESTMENTS (EUR millions) 6,835 6,608 683 684 378 5,248 290 280 80 2019 2020 2021 2019 2020 2021 2019 2020 2021 Major strategic priorities Maintain our Focus on developing Pursue the global Strengthen our creativity in terms of Parfums Christian Dior expansion of our other commitment to biodiversity innovation and appeal in harmony with Couture brands and sustainable design 88 • 89 LVMH 2021 . Perfumes & CosmeticsParfums Christian Dior Amid a limited recovery in international travel and Kurkdjian was appointed as Creative Director the gradual reopening of points of sale, LVMH’s major of Fragrances, taking over from François Demachy, Maisons regained strong momentum, especially in the who had served as Dior’s perfumer since 2006. second half of the year. To preserve their exceptional Skincare was buoyed by the vibrant Prestige, Capture image – a key element of their lasting appeal – and L’Or de Vie ranges, the culmination of the the choice was made to keep their distribution highly scientific and sensory expertise of LVMH’s research selective, limit promotional offers and develop online and innovation center. The Dior Spa that opened sales through their own websites. Their performance at the Cheval Blanc hotel in Paris is the ultimate was buoyed by their vibrant iconic lines, successful expression of Dior skincare and its beauty expertise. innovations and ability to craft high-quality, Makeup was boosted by the rollout of the refillable groundbreaking digital experiences. Parfums Christian Dior made a strong recovery, particularly in all its local markets – especially Asia, the Rouge Dior lipstick and the launch of its transfer-proof liquid version, Forever Liquid. The acceleration in online sales continued via directly operated sites, spurred United States and the Middle East – and consolidated by digital campaigns that were among the most its leading positions in Europe. Its performance in innovative run by fragrance and beauty brands. These fragrances was driven by the success of its flagship initiatives complemented the Maison’s store network lines: Sauvage, which became global leader in all by attracting a new clientele and showcasing categories; solid results were also turned in by J’adore, the exceptional products and customer experience Dior Homme and Miss Dior, which was boosted it offers. Parfums Christian Dior carried on its tradition in September by a revisited scent profile and a new of artistic partnerships, including the collaboration marketing campaign. The Collection Privée range, with India Mahdavi for J’adore, and exhibitions which distills the Maison’s peerless expertise in high showcasing its rich heritage and wealth of creativity. perfumery, was enriched with new scents. Francis The Maison began sharing its values and initiatives 90 • 91 LVMH 2021 . Perfumes & CosmeticsHIGHLIGHTS2021in connection with the mission it has adopted, pop-up locations expressing and exalting the brand’s “Beauty as a legacy”, affirming its commitment unique identity. Guerlain stepped up its initiatives to culture, the environment and society, in particular and engagement in connection with its “In the Name through exceptional corporate philanthropy toward of Beauty” sustainability program, in particular alongside the Palace of Versailles, the Tuileries Gardens and UNESCO for programs to protect biodiversity and the Beaux-Arts de Paris art school. Guerlain achieved remarkable growth, particularly in China thanks to its very strong momentum in skincare. Backed by the Maison’s commitment to biodiversity and sustainable innovation, the Abeille Royale and bees, spearheaded by its brand ambassador Angelina Jolie, as well as the formation of its Sustainable Board, a panel of experts chaired by Yann Arthus-Bertrand. Parfums Givenchy returned to growth and won market share thanks to the success of its L’Interdit fragrance Orchidée Impériale lines continued their exceptional and the promising relaunch of the Irresistible line. performance. In fragrances, the Aqua Allegoria line and the new high perfumery collection L’Art et la Matière were a global success. In makeup, a new In makeup, momentum was driven by its Prisme Libre powder and Le Rouge lipstick. Benefit’s sales were boosted by the launch of its They’re Real! Magnet chapter began with the appointment of Violette mascara and the global “Love Your Brows” campaign. as Creative Director of Makeup. The exceptional The Maison extended its lead in these two categories. foundation Parure Gold bolstered its positions, particularly in Asia. The Maison continued to invest in its store network, with openings, renovations and As locations reopened, its Brow Bars confirmed their success. Fresh reinforced its standing in ultra-premium skincare, seeing major growth in its Crème Ancienne Celine Parfums Christian Dior OUR MAISONS TAKE ACTION Guerlain’s and Dior’s science-based targets are validated Guerlain and Parfums Christian Dior had their climate trajectories validated by the Science Based Targets initiative (SBTi), confirming they are in line with what climate science deems necessary to limit global warming to 1.5°C by 2030, along with two other Group Maisons: Hennessy and Louis Vuitton. By 2030, Guerlain has committed to reducing its Scope 1 and 2 greenhouse gas emissions by 47% (baseline: 2019), and to reducing its Scope 3 emissions (related to purchases of goods and services, transport and distribution) by 57% per metric ton of product manufactured. The main actions to be taken to achieve these emissions reduction goals involve reducing energy use, switching to (and generating) renewable energy, opting for sustainable pack- aging design and using greener modes of transport. Parfums Christian Dior committed to reducing its Scope 1, 2 and 3 emissions by 46.2% by 2030 (baseline: 2019) and identified three primary fields of action: sustainable design, green transportation, and reducing energy consumption and rolling out low-carbon energy at its points of sale. Guerlain Parfums Givenchy 92 • 93 LVMH 2021 . Perfumes & Cosmeticsrange, which was expanded with its White Truffle Mask. wardrobe” continued to enjoy great success, led To celebrate its 30th anniversary, an initiative was by its highly popular Baccarat Rouge 540 as well as launched to support the communities where key ingredients for its products are sourced. Make Up For Ever benefited from the successful launch of Setting Powder, the finest powder on the market, within its iconic Ultra HD range. Fenty Beauty reaffirmed its expertise in foundation with the launch of its Eaze Drop Blurring Skin Tint foundation, an instant bestseller, and the expansion of its range of highlighters. Fenty Skin launched its first instant retexturizing treatment, Pre-Show Glow. Fenty Eau de Parfum, available exclusively online, was a major success. Parfums Kenzo expanded its Flower by Kenzo flagship line with a new eau de toilette version, while its men’s fragrance Kenzo Homme and Kenzoki skincare products were reimagined. Maison Francis Kurkdjian continued its rapid growth trajectory, in particular in the United States. Its “fragrance its À la rose and Gentle Fluidity ranges. The successful launches of the Bergamotto La Spugnatura, Oud & Spice and Lily of the Valley fragrances were among the year’s highlights for Acqua di Parma. The Maison expanded its presence in China and won over customers through an immersive experience during its The Scent of Parma exhibition. Perfumes Loewe saw solid international growth with the repositioning of its fragrances in dialogue with the fashion house and the Home Scents collection crafted by Jonathan Anderson. Ole Henriksen enriched its skincare range with the creation of Dewtopia. KVD Beauty, all of whose products are vegan, capitalized on the success of its Good Apple Foundation Balm. Officine Universelle Buly, a Maison that stands out through its selection of rare, effective and authentic products with impeccable aesthetics, joined LVMH. Fenty Beauty Maison Francis Kurkdjian OUR MAISONS TAKE ACTION LVMH joins Eco-Beauty Score LVMH joined the Eco-Beauty Score consortium, which aims to establish a shared methodology for measuring the environmental impact of cosmetic products by the end of 2022. The goal is to develop a science-based system to help consumers better understand the environmental impact of cosmetics, from sourcing ingredients to a product’s manufacturing, transport and use, as well as the biodegradability of its formula. In parallel, LVMH and its Perfumes & Cosmetics Maisons use in-house tools and indicators such as EPI (Environmental Performance Index) scores for product packaging and EFI (Environmental Formulation Index) scores for ingredients. They facilitate and accelerate sustainable design by taking into account factors such as the amount of recycled content in packaging and the proportion of natural ingredients in formulas. Maison Francis Kurkdjian Parfums Kenzo 94 • 95 LVMH 2021 . Perfumes & Cosmetics P A R F U M S C H R I S T I A N D I O R J’adore x Ind i a Ma hd av i : C r a f t s m a n s h ip a nd moder n it y, or gen iu s i n a b ot t le Dior invited India Mahdavi to redesign one of its most emblematic perfume bottles, the iconic J’adore amphora. The renowned architect and designer created an ultra-limited edition of 1,000 unique, numbered pieces. Her soft, full design features an endless, hypnotic warm golden glass spiral that circles up the J’adore bottle’s curves and neck, celebrating the eternal gesture of virtuoso glassmakers. Each piece is an object of desire and technical prowess crafted in Venice by the ancient house of Salviati’s master Murano glass blowers. Divinely modern, India Mahdavi’s bottle is the perfect match for François Demachy’s fragrance J’adore Eau de Parfum Infinissime. 2021STORIES 96 • 97 LVMH 2021 . Perfumes & Cosmetics O F F I C I N E U N I V E R S E L L E B U L Y A new jewel i n t he LV M H c row n In 1803, when renowned Paris perfumer Jean-Vincent Bully created his “Vinaigre de Toilette”, he stamped his epoch and went down in the history of beauty care. This beauty treatment – the fruit of his expertise, talent, and love of cosmetics – became a sought- after remedy for everyone who was anyone in 19th-century Paris, before gaining a following in Europe and beyond. A new chapter in Buly’s story opened in 2014, when the visionary duo formed by Victoire de Taillac and Ramdane Touhami – who both passionately want to transmit the art of French beauty care – decided to open their first Officine, or dispensary, at 6 rue Bonaparte in Paris. In 2021, this Parisian brand joined the LVMH Group and its 75 Maisons. Buly’s refined, high-quality products, its richly detailed visual universe and its singular boutiques are hallmarks of its unique identity, which blends heritage with modernity. This new chapter in its history will enable the brand to continue to grow and remain true to its expertise and personality as part of the world’s leading luxury group. 98 • 99 LVMH 2021 . Perfumes & Cosmetics A C Q U A D I P A R M A Em i l io Pucc i s upp or t s Save t he Ch i ld ren to “ Rew r ite t he Fut u re” Acqua di Parma’s Holiday Season collection now features a distinctive, sunny design by Emilio Pucci, in a first-time collaboration between the two Italian Maisons. They created this exceptional collection to support the humanitarian aid organization Save the Children and its “Rewrite the Future” campaign, which secures a quality education for children and young people. The revamped collection’s bottles sport the Vortici print, a harmonious, bright swirl of color inspired by Emilio Pucci’s archives and reinterpreted in Acqua di Parma yellow. This creative charitable initiative sends a message of optimism and confidence to current and future generations from both Maisons.  F R E S H A 30t h a n n ivers a r y celebr ated u nder t he s ig n of com m it ment Taking care of our planet as we take care of our skin: this is the mission of Forever Fresh, the Maison’s new sustainability program. On the occasion of its 30th anniversary, Fresh set 30 goals to be achieved by its 40th anniversary, in 2031. The program is part of a partnership with the Union for Ethical BioTrade (UEBT) nonprofit, for which Fresh has the honor of being the first LVMH Group Maison to become an official UEBT member. Driven by its ambition to continue creating ever safer, more effective and more sensory products, the Maison focuses its commitments on the planet, people and products. They reflect the brand’s ongoing desire to take responsibility and act to leave future generations a “Forever Fresh” world. 100 • 101 LVMH 2021 . Perfumes & Cosmetics  G U E R L A I N Elev at i n g r aw m ater i a l s i nto work s of a r t With its L’Art & La Matière collection, Guerlain offers a truly exceptional olfactory journey. Each fragrant masterpiece is an original creation crafted by Guerlain’s perfumers and inspired by an artistic sensation that left an indelible imprint on their memories. Guided by their creative genius, these artists shape the finest raw materials into bold works of art with talent and passion. The L’Art & La Matière bottle – inspired by Guerlain’s vintage, square-shaped Flacon Carré – takes these creations to new heights. The bottles are exceptional pieces, with a sophisticated, contemporary, unisex design. They are manufactured by Pochet du Courval, the Maison’s historic glassmakers, and can be customized in myriad ways, down to the smallest details, to make them intimately personal items. 102 • 103 LVMH 2021 . Perfumes & Cosmetics P A R F U M S C H R I S T I A N D I O R L’Or de Vie: The “c rème de l a c rème” For the past 30 years, Dior Science has incorporated the immense potential of grapevine extracts into its cosmetics line. The Maison draws on the virtues of the exceptional Château d’Yquem terroir – which is owned by the LVMH Group – in the formulation of its L’Or de Vie cream, which was created in 2007. In 2021, this mythical cream was rejuvenated with a new Yquem sap-enriched formula, itself the fruit of nine years of research. As well as its famed grand crus wines, the Bordeaux vineyard is renowned for the Yquem sap, the lifeblood that irrigates the core of the vine. L’Or de Vie’s new formulation captures all the longevity secrets of Yquem sap, and offers the most powerful antioxidant protection in the Dior range. M A I S O N F R A N C I S K U R K D J I A N Bacc a r at Rou ge 54 0: A n a lc hemy of t he s en s es Since its inception in 2009, Maison Francis Kurkdjian has elevated fragrance into an art form through a curated collection of multifaceted scents that convey sensuality and free expression. Like the City of Light itself, the resolutely Parisian Maison blends seductive enchantment with innovation, creativity and exceptional craftsmanship. The 250th anniversary of crystal manufacturer Baccarat inspired perfumer Francis Kurkdjian to create Baccarat Rouge 540, a highly condensed scent with a graphic olfactory signature. This floral, amber-laden, woody fragrance builds into a poetic alchemy, with breezy jasmine facets and radiant saffron boosting ambergris mineral notes and woody tones of freshly cut cedar. 104 • 105 LVMH 2021 . Perfumes & Cosmetics Tiffany & Co. LVMH Watches & Jewel r y 2021 C R E A T I V I T Y A N D I N - D E P T H E X P E R T I S E The LVMH Watches and Jewelry business group is one of the most dynamic players in its sector. It continues to 2022 Outlook gain market share with a successful strategy that is driven With the arrival of Tiffany & Co., the Watches and Jewelry by jewelry Maisons that carry on exceptional creative business group is now a leading global player. It will con- legacies and expertise, and by leading watchmaking tinue to drive its development by focusing on creativity, Maisons that are always on the cutting edge of innovation. excellent craftsmanship and corporate social responsibil- 2021 saw the arrival of the prestigious American jewelry ity. In the short term, given the current volatility and con- house Tiffany & Co., which has substantially bolstered trasting levels of recovery in their various markets, the the business group’s standing in a very dynamic, highly Maisons will continue to manage costs and remain highly promising market segment. Creativity, brand awareness and in-depth expertise The growth of these Maisons is driven by their creativity. selective in their investments. Innovation, the quali- ty-driven development of distribution networks – directly operated stores in particular – and new digital inroads will drive momentum over the months to come. Tiffany & Co. will roll out its Knot collection worldwide following its success in the United States. At the end of 2022, the They enrich leading product ranges with well-established Maison will reopen its flagship store on Fifth Avenue in designs and identities, such as Bulgari’s iconic Serpenti New York, and will hold a major exhibition in London. range and TAG Heuer and Hublot’s famous Carrera Bulgari will continue to add to its core collections, show- and Big Bang collections. They continually explore new casing its exceptional expertise in high jewelry and high- horizons with innovations combining audacity with excel- end watchmaking while continuing to develop its digital lence, as illustrated by TAG Heuer’s next-generation presence. In preparation for future growth, a project to smartwatch. Harnessing expertise is a key priority, which extend the Valenza watch manufacturing facility will be the Maisons address by optimizing their manufacturing launched in 2022. Major exhibitions will be held by processes, implementing synergies and boosting their Bulgari, Chaumet and Fred. TAG Heuer will develop its production capacity. Developing brand awareness with iconic lines and launch new high-end models inspired target audiences and increasing their social media by its partnership with Porsche. Hublot will focus on its presence are also crucial to gaining new market share. Big Bang flagship line in particular, and will unveil several Quality and productivity in retailing original new designs. Lastly, the business group is focusing on the quality and productivity of its retail networks and on developing its online sales. Multi-brand retailers are selected with great care, making sure the most exacting standards are met. In an equally selective approach, the Maisons also con- tinue to refurbish and open their own directly operated stores in buoyant markets in key cities. 2021 at a glance STRONG REBOUND OF ACTIVITY IN OWN STORES AND SUCCESSFUL INTEGRATION OF TIFFANY & CO. 2021 REVENUE BY REGION (as %) France 2% Europe (excl. France) 15% United States 25% Other markets 11% Asia (excl. Jap an) 36% Japan 11% REVENUE (EUR millions) PROFIT FROM RECURRING OPERATIONS (EUR millions) OPERATING INVESTMENTS (EUR millions) 8,964 1,679 458 4,405 3,356 736 302 296 210 2019 2020 2021 2019 2020 2021 2019 2020 2021 Major strategic priorities Reinforce our Maisons’ Maintain Tiffany & Co.’s Spur continued growth Optimally develop desirability thanks powerful momentum at Bulgari and TAG Heuer manufacturing facilities to expert craftsmanship and distribution with innovative products 108 • 109 LVMH 2021 . Watches & JewelryTiffany & Co. The Watches and Jewelry business group saw organic an unprecedented level. Rosé, the young singer of revenue growth of 40% with respect to 2020, which South Korean band Blackpink, became the new face had been particularly hard hit by the pandemic, and of the HardWear collection. This very well-received of 7% compared with 2019. Including Tiffany & Co., revival led to a doubling of sales for this core line, growth was much stronger, showing the transformative which embodies bold femininity. The Knot collection – contribution of this iconic brand. The Maisons were a limited edition designed in collaboration with artist buoyed by the gradual recovery in their local markets, Daniel Arsham – was another major success, as was primarily China and the United States, and the use the Tiffany x Supreme collaboration. December saw of distribution methods well-suited to the public health the launch of the highly anticipated limited edition of context: direct sales and digital channels. New watch the watch designed by Patek Philippe and Tiffany & Co. designs were unveiled in the first half of the year at to celebrate 170 years of collaboration between Patek trade fairs that were held in innovative new formats. Tiffany & Co. achieved a record performance in terms of revenue, profit and cash flow. The Maison raised its and Tiffany & Co. in the US, with the auction of the first watch of 170 limited editions raising a record level of funds for The Nature Conservancy. Honoring global profile through its innovations and high-profile its long tradition of expressions of love and diversity, collaborations. For the first time in its history, the Maison launched its “About Love” global campaign Tiffany & Co.’s annual Blue Book collection of high starring Beyoncé and Jay-Z. Among the jewelry jewelry was unveiled in China. A series of events followed featured was the legendary Tiffany Diamond, making in New York, Los Angeles and Dubai, giving customers Beyoncé only the fourth person to wear it since the opportunity to discover the extraordinary necklace, its discovery in 1877. This campaign – one of the year’s featuring over 180 carats of diamonds, inspired by most prominent – was a powerful affirmation of the the pendant unveiled at the 1939 New York World’s Fair. brand’s resolutely modern tone, boosting its appeal Following these presentations, high jewelry sales reached and expressing its core values. Three openings – 110 • 111 LVMH 2021 . Watches & JewelryHIGHLIGHTS2021at Le Bon Marché in Paris, in Barcelona and in Stockholm – of a seventh showpiece, the Bulgari Hotel Paris, marked a new aesthetic for Tiffany & Co.’s stores. Bulgari regained solid momentum, driven by the strong performance of its jewelry and watch lines at its which opened in December on Avenue George V. TAG Heuer marked the start of a major partnership with Porsche with the launch of the TAG Heuer directly operated stores. In jewelry, the recent B.zero1 Carrera Porsche chronograph. The latest edition Rock and Serpenti Viper collections were the main of the TAG Heuer Carrera 3 Aiguilles featured Ryan growth drivers. The Maison rolled out its Magnifica Gosling as its brand ambassador, while the Aquaracer high jewelry collection presented in June, while at line was completely revisited. The Titan and Green Dial the end of the year, the launch of the Jannah collection limited editions of the Monaco watch were very proved extremely promising. In watches, growth successful. TAG Heuer successfully launched a Super was driven by Serpenti Seduttori, Octo Finissimo Mario limited edition of its smartwatch for gaming (which won the Aiguille d’Or grand prize at the Geneva enthusiasts. Naomi Osaka and Tommy Fleetwood Watchmaking Grand Prix) and Bulgari Aluminium. joined the Maison’s team of brand ambassadors The Maison’s performance was all the more remarkable as it opened its first store in California and continued given the limited recovery in international travel and its increasingly selective presence at multi-brand stores. Jewelry in particular is now exclusively to develop its online sales. Hublot’s growth was driven by strong momentum in China and the United States, particularly at distributed through its directly operated stores. its directly operated stores. Continuing to invest The Bulgari hotel collection expanded with the addition in its retail network, the Maison accentuated Bulgari Bulgari OUR MAISONS TAKE ACTION Tiffany & Co.’s exemplar y supply chains Tiffany & Co. has worked for many years on making its gemstones and precious metals fully traceable, which helps ensure that environmental and social best practices are followed. Achieving this requires the cooperation of every stakeholder in the value chain, from mines to jewelry workshops. All of the Maison’s rough diamonds are traceable back to the mine. They are mainly sourced from five countries: Botswana, Canada, Namibia, Russia and South Africa. All of the gold, silver and platinum used to manufacture products is also traceable to the mine or the recycler. In 2021, the Maison purchased its first Fairmined-certified gold from mines in Peru. Lastly, for colored gemstones, the Maison published the Colored Gemstone and Pearl Source Warranty Protocol in 2021 to serve as a practical, operational tool shared with suppliers to help them improve traceability as well as their social and environmental practices. Bulgari Chaumet Chaumet 112 • 113 LVMH 2021 . Watches & Jewelryits selective development and resumed direct control of its distribution in Spain and Portugal. Several new Chaumet saw strong momentum. Highlights of the year included the launch of the Torsade high jewelry products bolstered the success of its flagship lines, collection; the introduction of an exclusive diamond including the Classic Fusion Takashi Murakami, cut, the “Taille Impératrice” (empress cut); the the Big Bang DJ Snake, backed by a global event, Josephine and Napoleon exhibition at the heart and the Big Bang E UEFA Euro 2020 smartwatch. of the Maison’s iconic 12 Vendôme address; two high Novak Djokovic joined the Hublot family as a brand ambassador. Zenith benefited from the launch of Chronomaster Sport, which won the Chronograph watch prize at the Geneva Watchmaking Grand Prix, jewelry events in Beijing and Tokyo; and the reopening of its flagship store on New Bond Street in London. Fred launched the Pretty Woman fine jewelry and high jewelry collection, and created the Winch men’s and Defy Extreme. The Maison significantly raised line to celebrate the 55th anniversary of the Force 10. its profile in China with the appointment of singer The Soleil d’Or diamond returned to the Maison’s and actor Xiao Zhan as its new brand ambassador. collection. This remarkable yellow diamond of over It developed its network of directly operated stores, 100 carats will be the centerpiece of Fred’s first including the opening of a store offering unique retrospective exhibition in 2022. It opened its first experiences within its watch manufacturing facility store in Dubai. and the expansion of its e-commerce presence. Hublot Zenith OUR MAISONS TAKE ACTION A second life for Zenith vintage timepieces With Zenith Icons, the Maison gives watch enthusiasts a chance to own a piece of watchmaking history. This collection of vintage watches includes only the brand’s most iconic models, which are authenticated, restored and certified at its Manufacture. When a watch that appears to be in immaculate condition is found, the Manufacture’s Heritage Department inspects it to verify its authenticity, purchases it and restores it in accordance with the highest professional standards. For components that need to be replaced, it uses historic spare parts from its exceptional stock of original supplies. Lastly, a certificate of authenticity of the timepiece is issued, and a single copy is printed. It is filled out by hand by the Heritage Department and signed by the watchmaker in charge of its restoration, ensuring the watch’s traceability for generations to come. TAG Heuer Fred 114 • 115 LVMH 2021 . Watches & Jewelry T I F F A N Y & C O . “About Love”: A s tor y of lon g i n g a nd reu n ion Tiffany & Co. unveiled the film for its “About Love” campaign starring powerhouse couple Beyoncé and Jay-Z. The film is directed by acclaimed filmmaker Emmanuel Adjei, and features a remake of the classic “Moon River” – which was made famous in the 1961 film Breakfast at Tiffany’s – sung by Beyoncé and captured by Jay-Z on a Super 8 camera. Throughout the film, Beyoncé wears several incredible jewelry pieces, including the Tiffany Diamond, an emblem of the brand’s fabulous heritage. Some of the Maison’s other iconic pieces are also featured, like Jean Schlumberger’s legendary Bird on a Rock brooch, which is worn by Jay-Z and reinvented as a pair of cufflinks. The collaboration between the Carters and Tiffany & Co., and their shared vision has resulted in a raw, sensitive film that encapsulates the couple’s immense chemistry. It is a story of longing and reunion, of a bond that transcends time and space. 2021STORIES116 • 117 LVMH 2021 . Watches & JewelrySince their initial agreement in 1851, when Tiffany & Co. became the first official retailer to sell Patek Philippe products in the United States, ties between the two Maisons have gone from strength to strength. In 2021, they celebrated 170 years of partnership with a limited edition of 170 steel Nautilus Ref. 5711/1A-018 wristwatches. The commemorative piece’s dial features the famous Tiffany Blue® and the dual stamps of Tiffany & Co. at 6 o’clock and Patek Philippe at 12 o’clock. The case is water-resistant to 120 meters and fitted with the state-of-the-art self-winding calibre 26-330 S C movement. These 170 exceptional timepieces epitomize the two Maisons’ shared values – a quest for excellence and a passion for craftsmanship. One of the pieces was sold at auction and all the proceeds were donated to global environmental nonprofit, The Nature Conservancy. T I F F A N Y & C O . 170 except ion a l Naut i lu s w atc hes to celebr ate 170 yea rs s h a red w it h Patek Ph i l ipp e  C H A U M E T A n ex h ibit ion devoted to t he (ex t r a) ord i n a r y s tor y of Jos eph i ne a nd Napoleon To commemorate the bicentenary of Napoleon’s death, Chaumet retraces the highlights of this legendary emperor and Empress Josephine’s life together. The Maison’s founder was a privileged witness to their romance, and its exhibition Josephine and Napoleon: An (extra)ordinary story, displayed in the “grand salons” of Chaumet’s iconic 12 place Vendôme location, showcases over 150 pieces of jewelry, paintings, works of art, love letters and historic documents. As well as the Maison’s own archive pieces, the exhibition features loans from prestigious public and private collections, such as the Royal House of Denmark’s sovereign collection, and those of the Louvre and the Palace of Fontainebleau’s national museum. 118 • 119 LVMH 2021 . Watches & Jewelry Hublot and Takashi Murakami continue their collaboration with the Classic Fusion Takashi Murakami Sapphire Rainbow. This new watch, which again features Murakami’s hallmark smiling flower, is designed to reflect a shift from black to color via transparency. It is available in a limited edition of 100 pieces and has a case cut from sapphire crystal – a technological feat pioneered by Hublot. The flower smiles mischieviously on a three-dimensional face that emerges from the dial around which a color gradient of 12 petals rotate. By bringing the Japanese artist’s kawaii world into watchmaking, Hublot explores yet another way of expressing its Art of Fusion. Takashi Murakami’s creativity and the Swiss Maison’s expertise combine to engender a unique work of art. H U B L O T Mu r a k a m i ’s k aw a i i world on a u n iqu e t i mepiece 120 • 121 LVMH 2021 . Watches & Jewelry  B U L G A R I A h igh jewel r y col lec t ion i n s pi red by m ag n i f icence Bulgari unveiled Magnifica, its new collection of high jewelry and high- end watches. With this collection, which features 350 pieces including 122 brand-new creations, the Rome-based Maison’s expertise has reached new heights, with a hitherto unseen extraordinary combination of exceptional precious stones, unparalleled craftsmanship and bold design. The versatile, modular pieces are light and supple and designed so that they can be worn in myriad ways – a modern concept in high jewelry. The Magnifica collection epitomizes Bulgari’s hallmark expertise and 137 years of experience working with the world’s rarest and most precious gemstones. The Maison’s expertly skilled craftspeople transform creative ideas into impressive three-dimensional works of art that can take up to 2,500 hours to craft by hand. They cut the gems without any computer assistance, fashioning each component that will form part of a flawless, unique masterpiece. With this collection, Bulgari brings jewelry craftsmanship to magnificent new heights and expresses the full range of its creativity, which is as bold as it is timeless. 122 • 123 LVMH 2021 . Watches & Jewelry Swiss Maison TAG Heuer and German carmaker Porsche formally sealed their longstanding friendship – having already collaborated on several occasions – with an exceptional link-up inspired by their shared passion for car racing. The brand-new TAG Heuer Carrera Porsche Chronograph celebrates this friendship between two icons and is a tribute to their heritage. Its red, black and grey colors, font and numerals bring to mind the stylish aesthetics of Porsche cars, while its sporty design is based on the TAG Heuer Carrera chronograph and its distinctive tachymetric scale. Skillfully blending the brand universes of these icons of design and performance, this timepiece reflects the excellence and identities of both names, channeling their legendary essence. T A G H e u e r Wit h Pors c he, t wo icon s of des ig n a nd i n nov at ion tea m up 124 • 125 LVMH 2021 . Watches & JewelrySephora, SoHo store, New York LVMH Selec t ive Reta i l i n g 2021 R E I N V E N T I N G T H E C U S T O M E R E X P E R I E N C E With locations all around the world, our Selective Retailing Maisons make sure that customers are the number-one 2022 Outlook priority for their strategies and their staff. Sephora, DFS In 2022, Sephora will continue to innovate, ramp up its and Le Bon Marché are all pioneers in their fields and digitalization efforts and develop its omnichannel strat- continue to innovate and imagine the shopping experi- egy to gain new market share in key countries, with the ence of the future for their customers. An increasingly innovative and personalized experience priority placed on North America and China. In the United States, the implementation of its partnership with Kohl’s will help amplify its success with an expanded presence and a closer connection to American customers. The Maison will continue investing to sustain its strong momentum For over half a century, Sephora has been revolutionizing in other strategic markets such as the Middle East and the beauty industry, elevating the shopping experience Canada, as well as to expand its retail network in major into a moment of pure pleasure and freedom, developing cities and scale up its digital strategy. In 2022, DFS’ priority new in-store services and hunting out rare finds to add will be placed on tourism at its key destinations: Hainan, to its unique range of brands and products. Combining Macao and potentially Hong Kong in the second half of the best of in-store and online shopping, Sephora’s the fiscal year. Partial air traffic recovery forecasts – omnichannel beauty experience offers an interactive, which are more favorable, with the exception of China – personalized, seamless customer journey. Le Bon Marché will be closely monitored to ensure that reopenings are in is a department store like no other: striking architecture line with local authorities’ requirements and the return of enhanced by tasteful updates; an exclusive, elegant travelers. Highlights planned for 2022 include the second selection of products; and an expansive program of exhibitions all make Le Bon Marché truly unique and a treasure trove for both local and international customers. phase of the Mission Hills site opening in Hainan and the inauguration of a T Galleria in Queenstown, New Zealand, while preparing for the 2023 opening of the Brisbane Our 24S digital platform, which was launched in 2017, location in Australia. Le Bon Marché will continue to cap- also reflects this quest for excellence and aims to offer a italize on its unique profile as a trend-setting department whole new online shopping experience. Staying particularly agile store and cultural venue. In January, the Su exhibition by artist Mehmet Ali Uysal will invite viewers to reflect on climate issues. The beginning of the year will also see the launch of a digital platform for services and DFS – which has been pioneering travel retail since the experiences, building on Le Bon Marché’s strengths and early days of the air travel boom – constantly updates its underscoring its privileged position as an integral part of boutiques and its T Galleria luxury department stores to the Parisian scene. continually enhance the traveler’s experience. In addition to its major presence in Asia and in the United States, DFS has started to expand its geographic coverage, opening its first European location in Venice in 2016, to be followed by Paris in 2021. DFS will continue its expan- sion in the Asia-Pacific region, in particular in China on the island of Hainan. 2021 at a glance GOOD PERFORMANCE OF SEPHORA, DFS STILL HELD BACK BY LIMITED RECOVERY IN INTERNATIONAL TRAVEL 2021 REVENUE BY REGION (as %) Other markets 16% Asia (excl. Jap an) 24% France 12% Europe (excl. France) 9% United States 39% REVENUE (EUR millions) PROFIT FROM RECURRING OPERATIONS (EUR millions) OPERATING INVESTMENTS (EUR millions) 14,791 1,395 659 11,754 10,155 410 370 534 2019 2020 2021 2019 2020 2021 2019 2020 2021 (203) Major strategic priorities Maintain Sephora’s innovative momentum in stores and online Continue to cultivate Continue the expansion of DFS a creative, exclusive offering and develop digital initiatives at Le Bon Marché and to build customer loyalty during La Grande Épicerie de Paris their travel experiences 128 • 129 LVMH 2021 . Selective RetailingSephora, Taikoo Li Sanlitun store, Beijing In a business environment disrupted by the consequences a long-term strategic partnership with the Zalando of the public health crisis, the Maisons continued platform for the creation of a “prestige beauty” to adapt to the situation and enrich their digital selection, launched in Germany in the second half content to drive online sales and stay connected of the year; the acquisition of Feelunique, one of the with customers. The gradual reopening of stores leading players in the online selective beauty segment went smoothly, with the top priority being the health in the United Kingdom; a series of new transnational and safety of customers and staff, while constantly e-commerce initiatives to serve various countries in Asia; striving to offer the best shopping experience across ramping up its own websites, resulting in record online all channels. sales; and developing innovative services to ensure Building on its expanded geographic presence and a smooth omnichannel purchasing experience its pursuit of excellence in its omnichannel strategy, Sephora was highly resilient and delivered another strong performance thanks to the upturn in activity for customers, such as same-day delivery, which has been successfully rolled out in the United States. This strategy helped dynamize its key brands at its stores and the continued momentum of its online and categories, particularly skincare, fragrances sales. Despite the pandemic-related closures for part and haircare, while makeup showed encouraging of the year, the expansion of its store network continued, signs of recovery. The Maison continued to serve especially in China and the United States, particularly as an incubator, launching exclusive brands and following the large-scale partnership with US distributor products, particularly in the area of “green” cosmetics, Kohl’s. The Maison continued to develop its digital which resonates strongly with its customers’ offering with a series of new initiatives, including aspirations. Sephora stepped up its commitment 130 • 131 LVMH 2021 . Selective RetailingHIGHLIGHTS2021to diversity and inclusion by joining the Valuable 500, to transform Hainan into a free trade port by 2025, a global movement to speed the inclusion of people DFS, in partnership with Shenzhen Duty Free Group, with disabilities in the workplace. The Maison also opened its first downtown store in the port city launched highly innovative campaigns to celebrate of Haikou. Thanks to growing demand from local black beauty in North America and expanded its customers, the seven T Gallerias in Macao turned selection of brands founded by people of color, in line in a good performance, while DFS launched its with the commitment undertaken in 2020. Thanks to operations in Hainan. The highly anticipated opening its relentless drive for innovation and highly motivated of La Samaritaine Paris Pont-Neuf took place in June staff, Sephora returned to its pre-pandemic sales following an ambitious renovation project and saw a levels and was listed in the prestigious Interbrand promising number of visitors. After a one-year hiatus, Best Global Brands 2021 ranking. The public health crisis continued to impact DFS’ business due to the very limited recovery in the “Masters of Time” event showcasing a prestigious collection of watches and jewelry returned to Macao for its 12th edition. DFS accelerated its omnichannel international travel, travel restrictions in China and transformation through an innovative “Travel E-Tail” quarantine measures implemented in Hong Kong. program for its customers and brand partners. In response to the Chinese government’s efforts The Maison continued to focus on employee well-being Sephora Sephora OUR MAISONS TAKE ACTION Sephora’s redesigned Christmas packaging recognized with an R Award in the “Purchasing” categor y Following Sephora’s launch of its “Good For” line, which aims to expand the Maison’s selection of natural and sustainably designed products, Sephora made further progress in 2021 by completely redesigning its Christmas packaging, which is often associated with large quantities of waste. The goal was to apply a sustainable design approach aimed at using envi- ronmentally friendly raw materials, reducing the volume of packaging and developing reusable packaging, all while maintaining the festive spirit of Christmas. Part of the manufacturing was also relocated to Europe. The redesigned gift boxes were made from FSC-certified recycled paper and plastic-free, helping save 26 metric tons of plastic compared to previous years. They also featured vegetable-based inks and gift pouches made of recycled cotton. Sephora DFS 132 • 133 LVMH 2021 . Selective Retailingby implementing health programs and adapting the return in force of its particularly loyal French working hours, and supported its local communities clientele. The year’s highlights included Prune Nourry’s through volunteer activities aimed at helping L’Amazone Érogène exhibition and the Lucky Charms the most vulnerable individuals and those most exhibition, featuring works by Thebe Magugu, affected by the pandemic. Starboard Cruise Services resumed operations at the end of the year on part of its fleet of vessels to support the Dessine l’Espoir (Designing Hope) humanitarian nonprofit. Momentum was spurred by the development of new concepts, such with an occupancy of about half their capacity. as a holistic beauty initiative with Holidermie, The Maison focused on the new opportunities offered and the opening of new spaces, in particular for Tiffany. by the digital channel, and tailoring the products and services it offers to clients of different cruise lines. Le Bon Marché experienced an unusual year marked by a long period of closure from January 31 to May 19, Both of La Grande Épicerie de Paris’ sites continued to perform well. The 24S digital platform recorded strong growth, particularly in Asia and North America, driven by the unique character of its selection during which digital communication and mail-order and its Parisian positioning. The year featured sales helped it stay connected with customers. the rollout of the “marketplace” model, a strategic As soon as it reopened, the department store saw driver for acceleration. Sephora Le Bon Marché OUR MAISONS TAKE ACTION 20,000 hanging flowers by Thebe Magugu for Le Bon Marché Rive Gauche’s Lucky Charms exhibition The installation created by South African designer Thebe Magugu consists of 20,000 multicolored fabric flower brooches pinned to myriad lianas suspended in the store’s monumental central atrium. The flowers were sewn by some one hundred women in four workshops supported by Dessine L’Espoir (Designing Hope), a humanitarian organization that helps vulnerable populations in several southern African countries, notably in South Africa and Eswatini. The nonprofit has been running HIV awareness campaigns since 2003 and supports people who are HIV-positive with healthcare and food, also providing education and training for the youngest. The flower brooches were sold throughout the event and the proceeds were donated to Dessine l’Espoir. Le Bon Marché Le Bon Marché 134 • 135 LVMH 2021 . Selective Retailing L A S A M A R I T A I N E A n out s t a nd i n g renov at ion t h at rev ives t he m ag ic of cent r a l Pa r i s The Samaritaine Paris Pont-Neuf department store reopened in June 2021, after a vast, historically faithful renovation that involved numerous craftspeople including painters, sculptors, gilders, and metalworkers. It is now instantly recognizable by its undulating glass façade designed by 2010 Pritzker Prize-winning Japanese architecture studio Sanaa. Its 1907 Eiffel-designed glass dome, enameled lava Art Nouveau decors, and monumental staircase have all been restored. As well as highlighting the store’s eclectic and rich historical heritage with an innovative architectural feature, the overhaul also saw all the buildings certified to the strictest environmental standards. Designed and operated by DFS, the new Samaritaine department store promises visitors a bold blend of experiences, enchantment, authenticity and modernity. Some 600 brands converge in this exceptional space, which celebrates French elegance and art de vivre. 2021STORIES 136 • 137 LVMH 2021 . Selective Retailing S E P H O R A “ Meet i n g” b eaut y icon s i n a v i r t u a l hou s e of b eaut y Sephoria, the Maison’s major beauty event, made a high-profile comeback in 2021. Previously held in 2018 and 2019 as a live event in the United States, it returned as a virtual metaverse-like experience called “Sephoria: Virtual House of Beauty”. Attendees were free to explore and try out the iconic products and just- launched new labels available at Sephora through exclusive content and virtual encounters with brand founders. The experience was based on a 3D, 360° game-like environment with an interactive beauty “house” featuring several themed rooms that attendees could explore while playing games and joining in activities. The event was free of charge and open to all participants who registered to attend. Attendees could also opt in to purchase Experience Kits – complete with a host of products and surprises – which were dispatched to them by mail. Having made digital and omnichannel a strategic priority, the Maison is now focusing on bringing its highly popular, unique in-store experiences online. 138 • 139 LVMH 2021 . Selective Retailing L E B O N M A R C H É L’Amazone « Érogène: A work of a r t by Pr u ne Nou r r y for t he Lef t B a n k s tore Le Bon Marché Rive Gauche continues to pledge its support for contemporary artists by giving them carte blanche within its walls. In January 2021, Prune Nourry – a rising star on the international art scene – exhibited L’Amazone Érogène (The Erogenous Amazon) at the department store. Through her art, Prune Nourry explores the concepts of genetics, gender selection, the status of women and our perception of the female body. This installation was inspired by the Amazons, who according to myth cut off their right breasts to become better archers. The artist played with symbols typically associated with these women warriors and created an installation built around three powerful visual elements: a breast-shaped target, a bow and arrows. 140 • 141 LVMH 2021 . Selective Retailing Belmond, Hotel Cipriani, Venice LVMH Cu lt u re & Lifes t yle 2021  L V M H H O T E L M A N A G E M E N T Chev a l Bl a nc: A new contemp or a r y h aven i n t he hea r t of Pa r i s Cheval Blanc has unveiled its first urban home away from home, ideally located in the heart of Paris between the Marais, the Île de la Cité and the Louvre. The hotel – which only has 72 rooms – was purposely designed by architects Peter Marino and Édouard François to offer guests an experience rather than a setting, with every detail chosen to recreate the intimacy of a private home. Vast bay windows offer stunning views of Paris in every room and each of the four restaurants. Guests can unwind in the peaceful surroundings of the wellness space and Dior Spa Cheval Blanc. Finally, encapsulating the quest for excellence at Cheval Blanc Paris, are Plénitude – its gourmet restaurant run by chef Arnaud Donckele – and the Apartment – its truly exceptional space on the top floor. 2021STORIES144 • 145 LVMH 2021 . Culture & LifestyleCheval Blanc Paris 146 • 147 LVMH 2021 . Culture & Lifestyle B E L M O N D The Ven ice Si mplon- Or ient-Ex pres s : A legend b ac k on t r ac k Belmond reignites the romance of rail travel and invites guests to embark on a legendary journey as the Venice Simplon-Orient-Express returns to the tracks. With its new Grand Suites and spellbinding new routes criss-crossing through France, Italy, Switzerland, Belgium and the Netherlands, this train whisks travelers to Europe’s most beautiful cities, reinstating the glamourous journeys of the golden age of travel. 148 • 149 LVMH 2021 . Culture & LifestyleR O Y A L V A N L E N T Uphold i n g t he pres t ig iou s Dutc h m a r it i me t r ad it ion Royal Van Lent creates pure custom superyachts between 60 and 140 meters in length under the Feadship brand. With a heritage dating back to the 1800s, Royal Van Lent has two boutique shipyards in Amsterdam and on nearby Kaag Island. The yard in the Dutch capital was officially opened in 2019 by Queen Máxima and is the most eco-conscious superyacht facility in the world. Generations of dedicated craftsmen ply their trade across all disciplines of boatbuilding. This ultra-high-end industry demands constant innovation and close cooperation with designers as the Royal Van Lent teams showcase their expectational skills and exquisite eye for detail and quality. As the famous motto reminds us: “There are yachts… And there are Feadships.” 150 • 151 LVMH 2021 . Culture & LifestyleP E R F O R M A N C E M E A S U R E S U S E F U L I N F O R M A T I O N F O R S H A R E H O L D E R S SHA R EHOLDER S’ C LU B IN FOR MAT ION A BOU T LV M H SHA R ES The LVMH Shareholders’ Club was set up in 1994 to give individual shareholders who are particularly interested in the life of the Group a better understanding of LVMH, its businesses and its brands. The LVMH Shareholders’ Club can be joined free of charge by any shareholder who owns at least one LVMH share listed on the Paris stock exchange. Listed on: Eurolist by Euronext Paris Stock market capitalization: €367 bn as of 12/31/2021 (the largest capitalization on the Paris stock market) Number of shares: 504,757,339 as of 12/31/2021 Member of indices: CAC 40, Dow Jones Euro Stoxx 50, MSCI Europe, FTSE Eurotop 100, Global LAT EST N EWS A BOU T OU R M A ISONS We send Club members several publications to keep them informed of the latest news about our Maisons, such as the Annual Report, the twice-annual Letter to Sharehold- Dow and FTSE4Good. SHA R EHOLDER ST RUCT U R E (1) ers and the annual issue of Apartés, our Club magazine. (November 2021) TOU R S TO DISCOV ER OU R M A ISONS Throughout the year, the LVMH Shareholders’ Club holds exceptional in-person and virtual private tours of a num- ber of its Maisons, such as Louis Vuitton’s workshops in Asnières, the historic La Samaritaine department store by the Pont Neuf in Paris, and Guerlain’s fragrance produc- tion facility in Orphin. Club members can also reserve guided tours of unique sites such as Hennessy’s centu- ries-old cellars in Cognac, Veuve Clicquot’s magnificent crayères in Reims, and Moët & Chandon and Mercier’s French institutional investors 7.8% Individuals 5.5% Foreign institutional investors 38.7% Arnault family group 47.8% Treasury stock 0.2% champagne cellars in Épernay. (1) Voting rights: Arnault family group 63.9%; Other 36.1%. EXC LUSI V E OF F ER S FOR T H E GROU P’ S PRODUC TS In addition to special offers on a selection of the Group’s wines and spirits, for delivery in France only, Club mem- bers can purchase discounted subscriptions to Group AGEN DA Thursday, January 27, 2022: 2021 annual revenue and results April 2022: 2022 first-quarter revenue media publications – Les Echos, Investir, Le Parisien and Thursday, April 21, 2022: Shareholders’ Meeting Connaissance des Arts – and order priority-access Thursday, April 28, 2022: Payment of the final dividend tickets for the Fondation Louis Vuitton. for fiscal year 2021 A W EB SIT E DEDICAT ED TO C LU B M EM BER S The detailed program of the Club’s visits as well as the exclusive offer of wines and spirits, subscriptions to the Group’s newspapers and magazines and tickets to the Fondation Louis Vuitton are available via the Club’s July 2022: 2022 half-year revenue and results October 2022: 2022 third-quarter revenue CON TACTS Investor and Shareholder Relations website at www.clublvmh-actionnaires.fr/en. This private Phone: +33 (0)1 44 13 27 27 online space, dedicated to Club members, can be accessed Shareholders’ Club once they have created their account. Phone: +33 (0)1 44 13 21 50 LVMH 2021 . P e r f o r m a n c e m e a s u r e s S T O C K M A R K E T P E R F O R M A N C E M E A S U R E S LVMH STOCK MARKET DATA (in euros) 2019 2020 2021 CHANGE IN THE DIVIDEND 2019 2020 2021 High (mid-session) 419.50 517.20 Low (mid-session) 243.65 278.70 Year-end share price 414.20 510.90 Change during the year (%) +60% +23% Change in the CAC 40 (%) +26% –7% Market capitalization at Dec. 31 (EUR bn) Source: Euronext. 208.0 257.9 741.60 489.05 727.00 +42% +29% 367.0 Gross dividend (in euros) 4.80 6.00 10.00(1) Change for the year –20% +25% Payout ratio Basic Group share of net earnings per share (in euros) 34% 14.25 64% 9.33 (1) To be proposed at the Shareholders’ Meeting on April 21, 2022. +67% 42% 23.90 725 700 675 650 625 600 575 550 525 500 475 450 425 400 375 350 325 300 275 250 225 200 COMPARISON BETWEEN THE LVMH SHARE PRICE AND THE CAC 40 INDEX SINCE JANUARY 2, 2019 (in euros) 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 FJDNOSAJJMAMFJ M A M 2019 OSAJ J 2020 DN JJMAMFJ 2021 A DNOS 0 LVMH CAC 40 rebased Trading volume (right-hand scale) Stock markets hit new records in 2021, driven by factors including global economic growth and financial performance of businesses, despite the ongoing uncertainty surrounding the pandemic. The luxury sector in particular enjoyed ongoing strong demand from the United States and China, and posted solid earnings, with LVMH becoming Europe’s highest-valued company in February 2021. The end of the year, however, saw renewed volatility, with the return of inflation, uncertainty surrounding the end of central banks’ accommodative monetary policy, and the emergence of the Omicron variant, although this volatility did not impact the annual stock market performances of the main indices, with the CAC 40 surpassing 7,000 points for the first time in November. The CAC 40 and Euro Stoxx 50 indices finished 2021 up 28.85% and 20.99%, respectively. The LVMH closing share price ended the year up 42.3%, at €727, after having reached a new all-time record high of €741.60 toward the end of the year. LVMH’s market capitalization was €367 billion as of December 31, making it the largest company on the Paris stock exchange. 154 • 155 F I N A N C I A L P E R F O R M A N C E M E A S U R E S 2021 REVENUE BY REGION (as %) France 6% Europe (excl. France) 15% United States 26% Other markets 11% Asia (excl . Japan) 35% Japan 7% STORES (number) 5,556 4,915 5,003 REVENUE (EUR millions) 64,215 53,670 44,651 2019 2020 2021 PROFIT FROM RECURRING OPERATIONS (EUR millions) 17,151 11,504 8,305 2019 2020 2021 2019 2020 2021 REVENUE BY BUSINESS GROUP PROFIT FROM RECURRING OPERATIONS BY BUSINESS GROUP (EUR millions) 2021 2021/2020 Organic change(1) Wines & Spirits 5,974 Fashion & Leather Goods 30,896 Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities and eliminations 6,608 8,964 11,754 19 +26% +47% +27% +40% +18% – Organic change 2021/2019 +9% +42% –1% +7% –18% – 2021 1,863 12,842 684 1,679(1) 534 (451) Change 2021/2020 Change 2021/2019 Operating margin +34% +79% x8.6 x5.6 N/A – +8% +75% 0% +128% –62% – 31.2% 41.6% 10. 3 % 18.7% 4.5% – TOTAL LVMH 64,215 +36% +14% 17,151 +107% +49% 26.7% (1) On a constant consolidation scope and currency basis. For the Group, changes in scope with respect to 2020 had a positive 10% impact, mainly related to the initial consolidation of Tiffany & Co. in the accounts; exchange rate fluctuations had a negative 2% impact. (1) Non-comparable scope of consolidation. NET PROFIT, GROUP SHARE (EUR millions) OPERATING INVESTMENTS (EUR millions) 12,036 3,294 2,664 2,478 7,171 4,702 2019 2020 2021 2019 2020 2021 FREE CASH FLOW (EUR millions) 13,531 6,167 6,117 SIMPLIFIED BALANCE SHEET AS OF 12/31/2021 (EUR billions and % of balance sheet total) 73% N o n - c u r r e n t a s s e t s 125 125 39% E q u i t y 39% N o n - c u r r e n t l i a b i l i t i e s 22% C u r r e n t l i a b i l i t i e s 13% I nv e n t o r i e s 14% O t h e r c u r r e n t a s s e t s 2019 2020 2021 Assets Liabilities and equity EQUITY AND RATIO OF NET FINANCIAL DEBT TO EQUITY (EUR millions and %) 48,909 38,365 38,829 16% 11% 20% 2019 2020 2021 NET FINANCIAL DEBT (EUR millions) 9,607 6,206 4,241 2019 2020 2021 Further information can be found in the 2021 Universal Registration Document. 156 • 157 LVMH 2021 . Performance measuresN O N - F I N A N C I A L P E R F O R M A N C E M E A S U R E S BREAKDOWN OF EMISSIONS BY BUSINESS GROUP (in metric tons of CO₂ equivalent) ENERGY CONSUMPTION BY BUSINESS GROUP (in MWh) CO2 emissions in 2020 CO2 emissions in 2021 pro forma(1) Change(1) (as %) 33,796 34,431 +2% 107,404 106,764 14,701 6,772 14,896 7,247 62,605 63,375 -1% +1% +7% +1% 6,051 12,142 +101%(2) 231,329 238,855 +3% Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities TOTAL (1) Value and change at constant scope. (2) Change related to business levels. 2020 214,226 2021 pro forma(1) Change(1) (as %) 233,015 +9% 368,275 395,198 93,267 100,867 +7% +8% 37,688 43,260 +15% 250,901 258,741 +3% 34,460 55,376 +61% 998,817 1,086,458 +9% Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities TOTAL (1) Value and change at constant scope. WATER CONSUMPTION BY BUSINESS GROUP (process requirements in m3) WEIGHT OF PACKAGING THAT REACHES CUSTOMERS BY BUSINESS GROUP (in metric tons) 2020 2021 pro forma (1) Change(1) (as %) 1,068,162 1,311,910 +23% 1,472,857 1,483,200 197,032 187,639 62,427 69,611 229,211 174,061 +1% -5% +12% -24% 281,217 237,745 -15%(2) Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities 2021 pro forma (1) Change(2) (as %) 2020 141,224 13,090 170,166 19,149 23,163 26,890 3,274 4,541 1 3,543 4,053 1 +20% +46% +16% +8% -11% - TOTAL 3,310,906 3,464,166 +5% TOTAL 185,293 223,802 +21% (1) Value and change at constant scope. (2) Change related to measurement adjustments at a site. (1) Value and change at constant scope. (2) Change related to the upturn in business. BREAKDOWN OF THE WORKFORCE BY BUSINESS GROUP (as of December 31, 2021) BREAKDOWN OF THE WORKFORCE BY REGION (as of December 31, 2021) Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities TOTAL 2021(1) 7,898 57,689 27,774 24,348 48,807 9,131 175,647 (1) Total permanent and fixed-term headcount. (2) Under permanent contracts. As % of total % women(2) 2021(1) 33,887 39,343 34,930 8,013 43,705 15,769 175,647 As % of total % women(2) 19% 22% 20% 5% 25% 9% 100% 64% 70% 74% 72% 76% 66% 71% 39% 67% France Europe (excl. France) 82% United States Japan 65% Asia (excl. Japan) 83% Other markets TOTAL 39% 71% (1) Total permanent and fixed-term headcount. (2) Under permanent contracts. BREAKDOWN OF THE WORKFORCE BY PROFESSIONAL CATEGORY (as of December 31, 2021) AVERAGE LENGTH OF SERVICE AND BREAKDOWN BY LENGTH OF SERVICE (as of December 31, 2021) As % of total % women(2) As % of global workforce 2021(1) 36,807 16,952 91,691 30,197 Executives and managers Technicians and supervisors Administrative and sales staff Production workers TOTAL 175,647 100% (1) Total permanent and fixed-term headcount. (2) Under permanent contracts. 65% 67% 78% 60% 71% Length of service: Less than 5 years 5-9 years 10-14 years 15-19 years 20-24 years 25-29 years 30 years and up TOTAL Average length of service 58% 19% 10% 5% 4% 2% 2% 100% 7 years 4% 33% 16% 14% 28% 5% 100% 21% 10% 52% 17% Further information can be found in the 2021 Universal Registration Document. 158 • 159 LVMH 2021 . Performance measuresPhotographs Cover, p. 4, 13: Louis Vuitton Malletier, Viviane Sassen – p. 6: Jamel Toppin – p. 10, 30: La Samaritaine Canopy @WeAreContents – p. 12, 15: Jean-François Robert – p. 17: Laure Sée – p. 20: Dior, Julia Hetta – p. 22, 70: Loro Piana – p. 24: Fondation Louis Vuitton – p. 27: Fondation Louis Vuitton, © Gehry Partners, LLP and Frank O. Gehry, © Iwan Baan, 2014 – p. 28: Louis Vuitton, Arnaud Garni – p. 34, 90, 97: Parfums Christian Dior – p. 38: Fabrice Laroche – p. 44: Dom Pérignon, James Bort – p. 48, 50: Dom Pérignon – p. 50, 53, 60, 61: Hennessy – p. 51: Moët & Chandon – Veuve Clicquot – Château Cheval Blanc, Gérard Uféras – p. 52: Krug, Zoë Ghertner – Château d’Yquem, Gérard Uféras – p. 53: Moët Hennessy, DR – Eminente – p. 53, 56, 57: Ruinart – p. 55: Chandon – p. 58: Glenmorangie – p. 62-63: Château d’Esclans – p. 64: Louis Vuitton Malletier, Ethan James Green – p. 68: Louis Vuitton Malletier, Nick Sethi – p. 70, 82, 83: Fendi – p. 71: Nona Source – Dior, Sarah van Rij – Berluti, Eduardo Miera – p. 72: Loewe, Molly Lowe – p. 72, 80, 81: Celine, Hedi Slimane – p. 73: Louis Vuitton Malletier, François Coquerel – RIMOWA – Marc Jacobs – p. 75: Dior – p. 76: Louis Vuitton Malletier, Steven Meisel – p. 77: Loewe, Juergen Teller – p. 78: Dior, Myrto Papadopoulos – p. 84: Louis Vuitton – p. 85: Louis Vuitton Malletier, Piotr Stoklosa – p. 86: Parfums Christian Dior, Jérôme Galland – p. 92: Parfums Christian Dior, Will Davidson – Celine – p. 93, 95: Guerlain – p. 93: Guerlain, Zoé Fidji – Parfums Givenchy, Guido Mocafico – p. 94: Fenty Beauty – p. 94, 105: Maison Francis Kurkdjian – p. 95: Parfums Kenzo – p. 98, 99: Officine Universelle Buly – p. 100: Emilio Pucci x Acqua di Parma – p. 101: Fresh – p. 102: Guerlain, Florian Joye – p. 104: Parfums Christian Dior, Charles Helleu – p. 106: Tiffany & Co., Mario Sorrenti – p. 110: Tiffany & Co., Mason Poole – p. 112, 113, 122: Bulgari – p. 113, 116: Tiffany & Co. – p. 113: Chaumet, Julien Martinez Leclerc; Florian Joye – p. 114: Hublot, Maxime Guyon – p. 114, 115: Zenith – p. 115, 124, 125: TAG Heuer – p. 116: Fred – p. 117: Tiffany & Co., Mason Poole © Estate of Jean-Michel Basquiat. Licensed by Artestar, New York – p. 118: Tiffany & Co. x Patek Philippe – p. 119: Chaumet, Julien Falsimagne – p. 120: Hublot, TM/KK – p. 126, 130, 132, 133, 134: Sephora – p. 133: DFS – p. 134, 135, 140, 141: Le Bon Marché Rive Gauche – p. 136, 137, 146: La Samaritaine Paris Pont-Neuf, Pierre-Olivier Deschamps, Agence VU’ – p. 139: Sephora, Eventique – p. 142, 148, 149: Belmond – p. 145: Cheval Blanc Paris – p. 150, 151: Feadship – Other photographs: LVMH and Group Maisons’ libraries. PLEASE DRINK RESPONSIBLY AND IN MODERATION. This product is made of material from well-managed FSC® -certified forests and from recycled materials. LVMH – 22, avenue Montaigne – 75008 Paris – France Phone: +33 (0)1 44 13 22 22 – www.lvmh.com : n o i t c u d o r p d n a n g i s e D : n o i t c u d o r p d n a n g i s e D 

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