2 02 2 A N N UA L R E P ORT Passionate about creativity Passionate about creativity The LVMH spirit The LVMH Group was formed in 1987, following the merger between Louis Vuitton and Moët Hennessy. 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, rooted in their rich heritage and their contemporary creativity. Through their creations and their historic values, our Maisons are the ambassadors of the culture and art de vivre that our Group is known for worldwide. LVMH nurtures a family spirit underpinned by a long-term corpo- rate vision. The Group’s vocation is to ensure the development of each of our 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 world around us 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 The values of a deeply committed Group Being creative and innovative Creativity and innovation are part of LVMH’s DNA, and have always been the keys to our Maisons’ success and the basis of their solid reputations. 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 responsiveness. It encourages individuals to take initiative by giving everyone a significant level of responsi- bility. 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 for our planet. Louis Vuitton, Towards a Dream, United States. The LVMH Group 6 12 14 16 17 18 22 26 28 34 38 40 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 LVMH takes action A responsible model dedicated to excellence Our talent is the driving force powering our Group’s performance A year of deep-rooted growth for the LIFE 360 environmental program Exemplary ethics and environmental, workforce-related and social responsibility Supporting culture, young people and humanitarian projects Business group insights Fashion & Leather Goods Perfumes & Cosmetics Wines & Spirits 48 68 92 110 Watches & Jewelry 130 Selective Retailing 146 Culture & Lifestyle Performance measures 155 156 158 Stock market performance measures Financial performance measures Non-financial performance measures Forging further ahead IN 2022, ANOTHER YEAR MARKED BY A MIXED ECONOMIC ENVIRONMENT AND A DISRUPTED INTERNATIONAL CONTEXT, LVMH ACHIEVED A REMARKABLE BUSINESS PERFORMANCE, DRIVEN BY SUSTAINED CREATIVE MOMENTUM ACROSS ALL OUR PROFESSIONS AND ONGOING INVESTMENT IN PASSING ON OUR EXPERTISE. Unparalleled performance We should be wary of treating numbers as symbolic milestones. Personally, I view them with satisfaction Our professions captivate and attract talent These numerical milestones reflect an even more but not as our primary objectives: our staff, products, meaningful human reality. The LVMH Group as a designers, craftspeople and stores have always whole now has nearly 200,000 employees who take meant more to me than numbers. That being said, on board, pass on and embody the culture of when we reach or surpass certain milestones for the excellence that drives our Maisons, in France and all first time, there is no harm in taking a step back and over the world. Every day, the LVMH Group – which recognizing what we have accomplished. In 2022, in 2022 became France’s number-one private- our Group generated nearly €80 billion in revenue, sector recruiter – welcomes, trains and promotes more than €20 billion in operating profit and over €10 billion in cash flow. One of our most time- honored iconic Maisons, Louis Vuitton, has doubled its revenue in the space of five years to more than people who identify with and find fulfillment in the exceptional products designed and sold by our Maisons, but above all in the human qualities needed to achieve all this: imagination and audacity, patience €20 billion. Examples abound of this steady, con- and attention to detail, openness to the cultures of sistent growth in our businesses. Other indicators, the world and a passion for nature, which is ultimately such as the €5 billion in corporate income tax we the source of everything. paid worldwide, half of it in France, also reflect the Our professions captivate and attract talent. In 2022, extent of our contribution to society. And one last 200,000 visitors in 15 countries came to experience example, which perhaps warrants an even more the 96 sites that our Maisons opened to the public measured approach than the others, but I would be for the fifth Journées Particulières event, where our remiss not to mention, as it so clearly illustrates our craftspeople showcased their skills, shared their shareholders’ confidence in our family Group: passion and unveiled the infinite level of detail that LVMH’s market capitalization topped the symbolic they put into each product. We hired 39,000 young €400 billion threshold, which no other European people worldwide who, thanks to the opportunities company had ever come close to reaching before. offered by our Maisons, will be able to train in their “We should be wary of treating numbers as symbolic milestones. Personally, I view them with satisfaction but not as our primary objectives: our staff, products, designers, craftspeople and stores have always meant more to me than numbers.” 6 • 7 LVMH 2022 . Chairman’s message fields and hone their skills before going on to train by the fresh inspiration brought to the Maison by Hedi others in turn. This point is worth emphasizing: our Slimane over the past five years, while Jonathan Maisons offer all new hires the chance to pursue a Anderson has continued to reveal Loewe’s potential comprehensive career path with lifelong learning and over the past ten years, designing collections hailed development opportunities. These opportunities are for their creative integrity and poetic vision. The now sufficiently well-known that the Group receives LVMH Group’s other businesses have enjoyed similar a substantial influx of applications, not only directly success: Sauvage is the world’s best-selling fragrance, to our Maisons but also to our IME (Institut des and our Wines & Spirits Maisons continue to gain Métiers d’Excellence) training programs in France, market share every year, building up positions in areas Italy, Switzerland, Japan and the United States, and that hold particular promise for the future, such as to our LIVE (L’Institut des Vocations pour l’Emploi) champagne, rosé wines and cognac. At the most campuses in Clichy, near Paris, and in my hometown recent Watch Week in Singapore, our watchmaking of Roubaix in northern France. Our more recently houses showcased their vibrant development in launched “You and ME” recruitment events in a traditional high-end watchmaking and smartwatches number of French cities have also attracted strong alike, met with steadily growing demand. All our interest. We now have a total of 33 in-house and efforts are focused on kindling and keeping the cre- external training centers and programs all over the ative flame burning bright at the heart of our Maisons, world. This reflects the importance we place not with this uninterrupted creativity by far the most only on preserving and passing on all our expertise important factor enabling our Maisons to outpace but also on enhancing the appeal of these profes- their competitors year after year. sions. I regularly talk to candidates who have applied If I may, I would like to single out two more exam- to our programs, and for me, their enthusiasm and ples of major creative success. After joining our determination are compelling reasons to be opti- Group in January 2021, Tiffany immediately set out mistic about the future. By opening our doors to to reinvent its collections and revitalize its global talented applicants and giving them the chance to brand image, creating new momentum that was see their merits rewarded, we secure the Group’s instantly reflected in growth at the Maison, loved future and forward momentum. the world over. In the same vein, Louis Vuitton, Keeping the creative flame burning bright All our Maisons pushed their creative boundaries in which has crafted the trophy trunk for the World Cup since 2010, teamed up with Annie Leibovitz to produce a picture of two soccer legends that 2022. Fashion shows by Christian Dior Couture’s became the world’s most viewed ad in just a few Maria Grazia Chiuri, in Seville, and Dior Homme’s days. Lastly, the appointment of Pharrell Williams Kim Jones, against the backdrop of the pyramids as Creative Director of Menswear at Louis Vuitton, of Giza, were acclaimed all over the world as major announced in February 2023, was yet another event events embodying a level of creative ambition rarely filled with promise for the future. These examples achieved. At Louis Vuitton, Nicolas Ghesquière perfectly illustrate what I see as my primary focus: continued to develop an aesthetic of clean lines financial performance is simply the corollary of and timeless looks, as seen in his Cruise show in creative success. As you can see, this long-held California. Celine has also been significantly boosted conviction of mine was once again confirmed in 2022. “Our Maisons have always been very mindful of their environment – which, for almost all of them, is the bedrock on which they have flourished. They have a long-standing, symbiotic relationship with nature.” “Creativity and passion are boundless resources, as infinite as the potential preserved in our Maisons’ rich heritage, legendary terroirs and singular craftsmanship.” The path of environmental excellence Our passion for beautiful craftsmanship and for the world. Yet we have entered into a period of new geopolitical uncertainty. Our diverse range of loca- natural beauty are two branches of the same tree. tions and business lines, together with the appeal Our Maisons have always been very mindful of their of our products across all geographic areas, gives environment – which, for almost all of them, is the us some protection if business should slow down in bedrock on which they have flourished. They have a any particular region of the world. We have learned long-standing, symbiotic relationship with nature. to manage the impact and work around the conse- This can be seen in our many vineyards around the quences of extreme scenarios that would have world, of course, but also at the production sites of our Maisons that craft fragrances, leather goods and, in many cases, even jewelry and watchmak- been virtually inconceivable three years ago, in particular thanks to the major breakthrough made by digitalizing our logistics operations and our online ing. Surrounded by unspoiled countryside, they stores. This was reflected in our fourth-quarter 2022 inhabit – in the fullest sense of the word – these results: despite the near-total shutdown of China, a natural spaces, protecting and taking care of them. major market for our products, LVMH as a whole As the years go by, this rural element of the Group delivered solid growth. has become a growing source of inspiration for its That is why our Group is facing 2023 with confi- urban element: our stores. The efficient use of dence. Confidence, because the world, where change resources that has long been standard practice at comes faster than ever, requires us to keep moving our production sites has been extended to all our while staying inventive, alert, innovative and pio- businesses in record time. Thanks to an unprece- neering. Confidence, because we will continue to dented effort, LVMH plans to cut its energy use by pursue our passion for what makes life beautiful. 10% between October 2022 and October 2023 and Creativity and passion are boundless resources, as to continue along this trajectory. This range of initi- infinite as the potential preserved in our Maisons’ atives, spearheaded by the LIFE 360 environmental rich heritage, legendary terroirs and singular crafts- program, was also recognized by the Carbon manship. Thanks to our deeply engaged staff and Disclosure Project, which awarded the Group an our unique expertise, LVMH will forge further ahead. AAA rating in 2022 – a score only achieved by Much further. 12 companies out of the 15,000 assessed around the world. In 2023, LVMH will continue to forge ahead on this path of environmental excellence. Bernard Arnault Chairman and Chief Executive Officer Uncertainty and hope Now that we have left 2022 behind us, I hope we have seen the last of the challenges caused by the pandemic, which for two years profoundly changed 8 • 9 LVMH 2022 . Chairman’s message Dior, 30 Montaigne, Paris. Excellence, agility and appeal Antonio Belloni, Group Managing Director In 2022, LVMH continued to gain market share and posted record results: how do you explain the Group’s exceptional performance? The luxury market as a whole has grown: coming out of the flexibility, making us considerably more agile and helping us develop new areas of expertise. This has created a strong core and given us a competitive edge, enabling our Maisons to grow closer to our customers and stay ahead of the curve pandemic, customers wanted to treat themselves, enjoy in managing market and supply chain uncertainty. memorable experiences and celebrate. But the fundamental driver of our success has been the appeal of our brands, which continue to stand out and extend their lead over the competition. Their performance is underpinned by a long- term vision and an ongoing focus on anticipating what Are we likely to see any changes in the fundamental trends affecting LVMH and its Maisons? In today’s relatively unstable global environment, we’ve iden- customers want and crafting thrilling new experiences. Our tified two phenomena that are likely to have a long-term historic Maisons – Louis Vuitton, Dior Couture, Parfums Dior, impact, outlasting any short-term economic ups and downs. Bulgari, Dom Pérignon and Sephora – have kept up their The first is the ongoing hybridization of how we interact with creativity as well as their investments, even at the height of customers. On one level, the need for “glocalization” is inten- the public health crisis, which is reflected in today’s excep- sifying: while we still have to design and position our prod- tional results. The Group is also boosted by a portfolio ucts with a global perspective in mind, it’s increasingly of fast-growing brands – TAG Heuer, Celine, Loro Piana, important to pay attention to local cultural differences and Chaumet, Rimowa and Loewe to name but a few – that are regulations – to think through the customer experience and capitalizing on the groundwork laid by the Group to increas- our communications from the individual customer’s point of ingly establish themselves as global benchmarks. Recent view to build a stronger emotional connection. acquisitions have also been a success, a shining example of On another level, an omnichannel customer experience is which is Tiffany & Co., where work on its products, commu- nications and distribution has already begun to bear fruit. no longer an optional extra: physical and digital are now inextricably intertwined. And these two dimensions of the One final area in which LVMH stands out is its people, with customer relationship must now continuously mutually rein- highly committed staff across all its businesses. Our employees force each other. We can see this happening in the huge rose to the challenge of the pandemic with energy, ideas and numbers of customers returning to our stores and to shows Dior, 30 Montaigne, Paris. and events held by our Maisons, as well as in the way cus- tain the appeal of our businesses. Doing so is vital to tomers highlight their experiences by sharing them on social continuing to attract new skills, develop young talent media. Dior’s 30 Montaigne is a perfect example of this mul- and, ultimately, preserve and pass on the world-class exper- tifaceted approach: combining a store, a museum, a hotel tise at the heart of our Group’s success. Sustaining and and a restaurant, this unique place offers an experience that building our momentum in this area is key to retaining our can’t be found anywhere else. We’re also working on all the market-leading position. new opportunities for expression offered by digital technol- ogy and leveraging data – including exploring the metaverse – to understand how these technologies can be used to enhance the customer experience. What are the Group’s priorities for 2023? After the shock of 2020 and the hypergrowth of 2021 and 2022, we can expect to have to navigate more changes in The second fundamental trend has to do with corporate 2023. We’ll have to manage a return to relative normality in social responsibility. In particular, there is no alternative but terms of consumer spending and global growth, but a num- to speed up our businesses’ transition to a more sustainable, ber of challenges remain, including the sudden and rapid energy-efficient future, with pressure from customers, inves- reopening of the Chinese market, gradual recovery in tors, legislators and employees alike already high and still tourism and travel, and persistent pressure on supply chains growing. The luxury industry cannot ignore this change, and raw materials. Internally, the emphasis is on establishing which LVMH is spearheading through the LIFE 360 program a new generation of managers and ramping up our invest- and our many initiatives to transform our processes and ments in innovation and design at our Maisons. By staying supply chains, working hand in hand with our suppliers all over the world. true to our long-term direction and vision while becoming ever more agile in the way we allocate our resources, our This priority is all the more crucial because it also reflects Group will continue to gain market share and attract top on our position as an employer: we have a duty to listen talent, which ultimately ties into further boosting the appeal to young people and update our working practices to main- of our brands. 12 • 13 LVMH 2022 . Interview with the Group Managing Director Robust corporate governance 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, environmental and climate-related issues facing the Group’s business LVMH’s Board of Directors is the strategic body of the Board of Directors’ work in 2022 In fiscal year 2022, the Board approved the annual and interim parent company and consolidated financial state- ments, monitored quarterly business activity and heard the Company that is primarily responsible for driving long-term reports presented by the Chairmen of its three committees. value creation and protecting its corporate interests, focusing It gave its opinion on the Group’s strategic direction, its in particular on the social, environmental and climate-related budget, compensation of company officers, the implemen- issues facing its business. tation of bonus share plans, and the implementation of the share buyback program. In accordance with the provisions Role of the Board of Directors in the Company’s strategy The Board of Directors’ principal assignments are to approve of the AFEP-MEDEF code, the Board of Directors reviewed its own composition, organization and modus operandi. The Board of Directors, on the recommendation of the Nominations the Company’s and the Group’s broad strategic direction – & Compensation Committee (now called the Governance particularly with regard to social, environmental and climate- & Compensation Committee), (i) appointed Marie-Josée related matters – and supervise its implementation, as well as Kravis as Chairman of that committee, and Clara Gaymard verifying the fair and accurate presentation of information as Chairman of the Performance Audit Committee; and about the Company and the Group. It is also tasked with (ii) decided to change the former committee’s name to the protecting the Group’s corporate assets and ensuring that Governance & Compensation Committee in order to better core business risks are accounted for in its management. reflect its role. It was also given a progress report on the The Board also ensures that procedures to prevent corrup- Group’s LIFE 360 program. It approved the planned merger tion and influence-peddling risks are implemented by the by absorption of LV Group SA, wholly owned by LVMH SE. Group and its main partners, and monitors the impact of the It also reduced the amount of the Company’s share capital Group’s non-discrimination and diversity policy, notably with by retiring treasury shares. regard to gender equality within the governing bodies. Lastly, it acts as guarantor of the rights of all of its shareholders and ensures that they fulfill all of their duties. Executive Committee Bernard Arnault Chairman and Chief Executive Officer Antonio Belloni Group Managing Director Delphine Arnault Christian Dior Couture Nicolas Bazire Development & Acquisitions Pietro Beccari Louis Vuitton Stéphane Bianchi Watches & Jewelry Board of Directors Bernard Arnault Chairman and Chief Executive Officer Antonio Belloni (1) Group Managing Director Antoine Arnault Delphine Arnault (1) (8) Dominique Aumont Director representing the employees Nicolas Bazire Marie-Véronique Belloeil-Melkin Director representing the employees Sophie Chassat (2) (7) Charles de Croisset (2) (6) (7) Lead Director Clara Gaymard (2) (6) Marie-Josée Kravis (1) (2) (7) Laurent Mignon(2)(3) Marie-Laure Sauty de Chalon (1) (2) (6) (8) Yves-Thibault de Silguy (2) (5) (6) (8) Natacha Valla (1) (2) (4) Hubert Védrine (2) (8) Advisory Board members Yann Arthus-Bertrand Diego Della Valle (3) Michael Burke Strategic Advisor to the Chairman Chantal Gaemperle Human Resources & Synergies Jean-Jacques Guiony Finance Lord Powell of Bayswater (1) General Secretary Marc-Antoine Jamet Statutory Auditors Deloitte & Associés represented by Guillaume Troussicot and Bénédicte Sabadie Mazars represented by Isabelle Sapet and Simon Beillevaire (1) Reappointment proposed at the Shareholders’ Meeting of April 20, 2023. (2) Independent Director. (3) Appointment proposed at the Shareholders’ Meeting of April 20, 2023. (4) At its meeting of January 26, 2023, the Board of Directors appointed Natacha Valla as a Director and as Chairman of the Governance & Compensation Committee, effective at the close of the Shareholders’ Meeting of April 20, 2023. (5) Until the close of the Shareholders’ Meeting of April 20, 2023. (6) Member of the Performance Audit Committee. (7) Member of the Governance & Compensation Committee. (8) Member of the Ethics & Sustainable Development Committee. Christopher de Lapuente Selective Retailing Stéphane Rinderknech Hospitality Excellence and Beauty Philippe Schaus Wines & Spirits Jérôme Sibille General Administration & Legal Affairs Sidney Toledano Fashion Group Jean-Baptiste Voisin Strategy 14 • 15 LVMH 2022 . Governance and organization Maisons with a strong identity 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 1972 PERFUMES LOEWE 1973 JOSEPH PHELPS 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 AO YUN 2016 CHA LING 2017 FENTY BEAUTY BY RIHANNA 2017 VOLCÁN DE MI TIERRA 2020 EMINENTE 2022 STELLA BY STELLA McCARTNEY A diverse range of professions WINES & SPIRITS FASHION & LEATHER GOODS PERFUMES & COSMETICS Moët & Chandon, Dom Pérignon, Krug, Veuve The Fashion & Leather Goods business group LVMH is a key player in the perfume, makeup and Clicquot, Ruinart, Hennessy, Château d’Yquem, Clos comprises Louis Vuitton, Christian Dior, Celine, skincare sector, with a portfolio of world-famous des Lambrays…. The origins of all these world-famous Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc French brands: Christian Dior, Guerlain, Givenchy estates are inextricably linked to the appellations Jacobs, Berluti, Loro Piana, RIMOWA and Patou. and Kenzo. The Group also owns other beauty and terroirs of the world’s most prestigious wines and While respecting the identity and autonomous brands: Benefit, Fresh, Acqua di Parma, Perfumes spirits. Whether they are in Champagne, Bordeaux, management of these brands, LVMH supports their Loewe, Make Up For Ever, Maison Francis Kurkdjian, or other famed wine regions, these Maisons, many growth by providing them with shared resources. Fenty Beauty by Rihanna, KVD Vegan Beauty and of which date back more than a century, all share a powerful culture of excellence. Officine Universelle Buly. WATCHES & JEWELRY SELECTIVE RETAILING OTHER ACTIVITIES The LVMH Watches & Jewelry Maisons are some of The Selective Retailing business group comprises Other activities include Groupe Les Echos, which the most emblematic brands in the industry. They Sephora, the world’s leading selective beauty retailer; comprises leading French business and cultural news operate in jewelry and watches with Tiffany, the prestigious American jewelry house acquired in Le Bon Marché, a Paris department store with a unique atmosphere; and travel retailers DFS and publications; Royal Van Lent, the builder of high-end yachts marketed under the brand name Feadship; 2021, Bulgari, Chaumet, Fred, TAG Heuer, Hublot, Starboard Cruise Services, who cater specifically to Cheval Blanc and Belmond, which are developing a Zenith and Repossi. These Maisons are guided by a international travelers. collection of exceptional hotels. daily quest for excellence, creativity and innovation. 16 • 17 LVMH 2022 . Our Maisons and business groups The world’s leading luxury goods group A UNIQUE OPERATING MODEL BUILT ON SIX PILLARS 1 Decentralized organization 2 Vertical integration 3 Sustaining savoir-faire Our structure and operating principles ensure Vertical integration fosters excellence both Our Maisons pursue a long-term vision. To pre- that our Maisons are both autonomous and upstream and downstream, allowing control serve their distinctive identities and excellence, responsive. This allows us to be extremely close over every link in the value chain – from sourcing LVMH and its Maisons have developed a range to our customers, to ensure that rapid, effective and production facilities to selective retailing – of initiatives to pass down skills and expertise, and appropriate decisions can be made. This which in turn means that the image of our Maisons and promote craft trades and design professions approach also sustains the motivation of our is carefully controlled. among younger generations. employees, encouraging them to show true entrepreneurial spirit. 4 5 6 Organic growth Creating synergies The LVMH Group places priority on organic Sharing of resources on a Group scale creates Balance across business segments and geographies growth and commits significant resources to intelligent synergies while respecting the individ- Our Group has the resources to sustain regular develop its Maisons, as well as to encourage and ual identities and autonomy of our Maisons. The growth thanks to the balance across its business protect creativity. Our employees are key to this combined strength of the LVMH Group is lever- activities and a well-distributed geographic approach, making it essential to support their aged to benefit each of its Maisons. footprint. This balance means that we are well- career growth and encourage them to excel. positioned to withstand the impact of shifting economic factors. 81 COUNTRIES 190+ NATIONALITIES 75 MAISONS 110 PRODUCTION SITES IN FRANCE 196,006 EMPLOYEES 71% WOMEN 5,664 STORES 1.37 million HECTARES OF FAUNA AND FLORA HABITAT PROTECTED €79.2bn REVENUE +23% versus 2021 €21.1bn PROFIT FROM RECURRING OPERATIONS +23% versus 2021 €14.1bn NET PROFIT GROUP SHARE +17% versus 2021 2022 revenue by region (as %) 2022 revenue by business group (as %) 12% Other markets 30% Asia (excl. Japan) 7% Japan United States Revenue: € 21, 542m 1,054 stores 41, 936 employees Other markets Revenue: € 9,632m 659 stores 19,095 employees 8% France 16% Europe (excl. France) 27% United States 19% Selective Retailing and Other activities 13% Watches & Jewelry 10% Perfumes & Cosmetics Geographic footprint (as of December 31, 2022) France Revenue: € 6,071m 518 stores 36,346 employees 18 • 19 9% Wines & Spirits 49% Fashion & Leather Goods Europe (excl. France) Revenue: € 12,717m 1,108 stores 41,846 employees Japan Revenue: € 5,436m 496 stores 8,924 employees Asia (excl. Japan) Revenue: € 23,785m 1,829 stores 47,860 employees LVMH 2022 . Strategy and key figures Record attendance at LVMH’s 2022 Journées Particulières WITH OVER 200,000 VISITORS, THE FIFTH ANNUAL JOURNÉES PARTICULIÈRES WAS A HUGE SUCCESS, SHOWCASING THE EXCEPTIONAL EXPERTISE OF THE LVMH GROUP’S 57 MAISONS THAT TOOK PART IN THE EVENT, WHICH WAS HELD FROM OCTOBER 14 TO 16, 2022. OPEN TO ALL AND FREE OF CHARGE AT 93 LOCATIONS IN 15 COUNTRIES WORLDWIDE, THE EVENT DREW A WIDE, ENTHUSIASTIC AUDIENCE WHO CAME TO MEET THE CRAFTSPEOPLE AND DESIGNERS WHO EMBODY THE GROUP’S CULTURE OF EXCELLENCE. From Louis Vuitton’s historic workshop in Asnières to the Cloudy Bay winery in New Zealand, Dior’s gallery and the Jardin d’Accli- matation in Paris, along with Hennessy in Charente, Tiffany in New York, Chandon in California and Buly in Kyoto, the three-day Journées Particulières was a truly global event. For its fifth edition, visitors could experience the spirit of the Journées Particulières at each of the sites as well as through our range of campaigns promoting the event. Visitors discovered what makes our Group and our Maisons so powerful and beautiful: our unrivaled history and cultural heritage, and the exceptional exper- tise skillfully mastered by the 3,000 employees who took part in the event, every one of whom was committed to showing visitors the meaning of our calling, summed up in the event’s catchphrase: “Know-How Wow”. 20 • 21 LVMH 2022 . Journées Particulières Stills from the Métiers d’Excellence: The Virtuous Circle documentary LVMH takes action IN 2022, LVMH AND ITS MAISONS CONTINUED TO COMMIT RESOURCES AND SKILLS TO A GROWING RANGE OF INITIATIVES IN SUPPORT OF GOOD CAUSES. AAA rating from the Carbon Disclosure Project The Carbon Disclosure Project (CDP), a global environmental nonprofit, awarded LVMH its prestigious “triple-A” rating for its leadership in protecting the climate, forests and water. LVMH is one of only 12 companies in the world to have Balogun, an American designer based in New York Brigitte Macron and the LVMH Group, is aimed at and the founder of men’s ready-to-wear brand adults over the age of 25 who have been marginal- Winnie New York. ized on the job market and want to build a career plan to find work. LIVE’s support has already You and ME Sponsored by international basketball star Tony helped more than 500 people, and 79% of them found a new career path once they had completed Parker, the “You and ME” tour visited five French the program. been awarded an AAA rating, out of over cities to meet with talented young people and 15,000 rated companies. Engaged Maisons Dinner LVMH celebrated its social engagement and marked those interested in retraining and offer 1,200 con- tracts in the Group’s métiers d’excellence. Established in 2015, this annual event focused on recruiting into It’s Everyone’s Business by Anastasia Mikova To mark the Group’s Diversity and Inclusion Week, expert professions is aimed at bringing a wide LVMH presented It’s Everyone’s Business, a series the 10th anniversary of its Engaged Maisons Dinner range of work-linked training programs and intern- of videos directed by Anastasia Mikova, co-director at an unprecedented charity gala. To mark the anni- ships to as broad an audience as possible, as well of the film Woman. Using testimonials from employees versary, in addition to the traditional dinner, which as promoting job offers in more than 30 professions all over the world, the series gives voice to the range brought together 400 guests invited by LVMH and ranging from couturiers and wine growers to of diversity within our organization. This series is a 30 of its Maisons, in the early evening 900 people makeup artists and sales associates. tribute to the uniqueness of all our employees and – employees involved in corporate social responsi- how they help drive our Group’s performance. bility initiatives, partner nonprofits, public figures and artists – were invited to an original show by Kamel Métiers d’Excellence: A virtuous circle To mark the anniversary of the WE for ME Ouali showcasing the Group’s major commitments. (Worldwide Engagements for Métiers d’Excellence) SPRING The Group’s graduate program, SPRING, is a career All profits from the gala were donated to the Hôpital agreement, signed by all of the Group’s Maisons in springboard for young graduates at LVMH: by Robert-Debré in support of its work combating July 2021, LVMH unveiled a documentary in 2022 experiencing three different roles for ten months sickle cell anemia. titled: Métiers d’Excellence: The Virtuous Circle. each at three of the Group’s Maisons, 14 talented 2022 LVMH Prize Nineteen young designers chosen from among Executive Vice President Human Resources skills, develop their professional networks and har- & Synergies, Alexandre Boquel, Director of ness their potential to the full. The aim is to give 1,900 candidates presented their collections in Métiers d’Excellence, and Lucie, an apprentice at these young people access to all the resources they a showroom in Paris and on the lvmhprize.com Givenchy’s couture and ready-to-wear workshop, need to become future leaders of the LVMH Group. Sharing insights from Chantal Gaemperle, Group individuals are given the opportunity to gain new digital platform. Out of eight finalists, the LVMH the documentary looks back at initiatives during Prize went to 25-year-old Steven Stokey-Daley, a the year that spurred momentum in recruiting into London-based British designer and founder of the Group’s 280 métiers d’excellence (professions men’s and women’s ready-to-wear brand S.S. Daley. of excellence). Open DARE Since 2017, DARE (Disrupt, Act, Risk to be an Entrepreneur) has been offering LVMH employees opportunities to propose innovative solutions and He won a 300,000 euro award and will receive a year’s mentoring within the LVMH in various fields of expertise. The Jury also awarded the Karl Lagerfeld Prize to 31-year-old Eli Russell Linnetz, LIVE Following the 2019 opening of the first LIVE (L’Institut des Vocations pour l’Emploi) campus, turn them into tangible projects that contribute to the Group’s development. In 2022, the initiative was expanded upon with Open DARE, the first call for an American designer based in Venice Beach and another two LIVE centers were inaugurated in ideas open to all employees of the Group and its the founder of ERL, a women’s, men’s and unisex 2021: one in Valence (southeastern France) and Maisons, irrespective of where they work, their ready-to-wear brand; and to 29-year-old Idris one in Roubaix (northern France). LIVE, set up by specialization and level of seniority. 22 • 23 LVMH 2022 . 2022 commitments Viva Technology 2022 For VivaTech 2022, LVMH unveiled its Apartment, LVMH x CBA Under its biodiversity plan, LVMH, now a partner in Paris restoration project, in conjunction with the public body tasked with conserving and restoring offering a glimpse of the full extent of the Group’s the Circular Bioeconomy Alliance (CBA), which the cathedral. vitality, with innovations from 16 of its Maisons, solu- was founded in 2020 by His Majesty King Charles III tions from 21 startups selected for the sixth annual when he was Prince of Wales, announced two fur- LVMH Innovation Awards, and collaborations between ther action programs: one announced at COP 15 to our Maisons and five alumni startups. The LVMH restore the forest cover in southern equatorial LVMH Voices of Inclusion – PRIDE Conversations x Antoni Porowski series Antoni Porowski, TV personality, author and star of Innovation Award went to Toshi, for its solution that Amazonia and northern Peruvian Amazonia, while Netflix’s Queer Eye, met with talented individuals helps bring the in-store experience into the customer’s supporting and strengthening a regenerative econ- from the LVMH Group in the series Voices of home. LVMH also made its first foray into the virtual omy within the native communities of Amazonia. Inclusion – PRIDE Conversations. In this series of world with a microverse – an augmented version of The other initiative in Chad, unveiled at COP 27, is four videos produced with têtu, France’s leading its physical stand – in which Livi, the “face of inno- part of the Great Green Wall project, and the aim is LGBTQI+ media company, Antoni Porowski was the vation” at LVMH, was lady of the house. to roll out new sustainable and regenerative cotton Group’s special envoy to Paris, London, New York Show ME Through its “Show ME” event, LVMH highlighted a year of tangible action to involve people from every production methods that both restore biodiversity and Singapore, where he interviewed LVMH employ- and create business opportunities for the local ees who are committed to working every day to population. promote diversity and inclusion. generation in passing on and promoting the Group’s métiers d’excellence (professions of excellence). LVMH x Fashion Row As part of their partnership to strengthen diversity, Inside LVMH Inside LVMH is a practical example of LVMH’s efforts More than 1,100 virtuosos, apprentices and institu- equity and inclusion in the world of fashion, Harlem’s to reach out to younger generations. The digital tional investors were invited to the event showcas- Fashion Row (HFR) and LVMH North America platform offers students from all over the world ing LVMH’s Métiers d’Excellence at the Salle Pleyel celebrated the 15th anniversary of HFR’s Fashion high-quality content to expand their knowledge of in Paris. This second edition of “Show ME” was an Show & Style Awards in New York on September 6. the luxury industry, as well as additional training to opportunity for the Group to promote new initia- Founded in 2017 by Brandice Daniel, Harlem’s help them prepare for their careers with a 30-hour tives launched in 2022 to attract a new generation Fashion Row is the premier agency creating a certification course featuring exclusive content. of talented individuals to professions in design, bridge between brands and designers of color in More than 130,000 young people from all over the craftsmanship and the customer experience, with fashion through brand strategy, collaborations, new world are registered on Inside LVMH and over LVMH planning to hire 3,000 people in France in media, experiential marketing, recruitment and 90,000 have completed their certification training. these areas by the end of 2024. development programs. China International Import Expo For the Group’s third time attending the China Prix des Artisanes Following the success of the first Prix des Artisanes Energy efficiency plan LVMH launched a new energy efficiency plan to reduce its worldwide energy consumption by 10% International Import Expo (CIIE), LVMH’s awards, magazines Elle, Elle à Table and Elle between October 2022 and October 2023. Two key 600-square-meter pavilion, inspired by Parisian Décoration once again teamed up with the LVMH measures were implemented: turning off the lights architecture, hosted 14 iconic Maisons under the Group to showcase craftsmanship. The awards at the stores operated by the Group’s Maisons from banner “Reconnecting through modernity”. This ceremony took place at LVMH’s headquarters, 10 p.m. until 7 a.m. and at administrative offices theme underscores the Group’s ambition of contin- celebrating the unique careers of entrepreneur from 9 p.m.; adjusting ambient temperatures at all uing to build on its long-standing relationship with craftswomen in the fields of fashion, design, table- manufacturing facilities, administrative offices and China by inviting visitors to learn about the iconic ware, vineyards and wine, and heritage protection stores, with a 1°C decrease relative to previous expertise of its craftspeople, on which the Group’s in France. Four winners were chosen from among temperature settings in winter and a 1°C increase success is built. 600 candidates. A special award was also presented relative to the previous temperatures at which air to 16 craftswomen working on the Notre-Dame de conditioning systems are activated. 2022 Viva Technology trade show in Paris 24 • 25 LVMH 2022 . 2022 commitments Guerlain A responsible model dedicated to excellence 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. 31 MAISONS OVER 100 YEARS OLD 1992 YEAR THE LVMH ENVIRONMENT DEPARTMENT WAS FORMED 900 PARTNERSHIPS WITH NONPROFITS AND CHARITABLE FOUNDATIONS These Maisons draw their energy from their excep- tional heritage, innovative mindset and receptive Business performance outlook. The Group supports their development in Combining profitable growth and sustainability a spirit of entrepreneurship, long-term vision and with commitments to creativity and excellence. respect for the source of their strength and stature. Applying our creative passion to the art de vivre to As ambassadors of an authentic art de vivre, it is our position as a global leader, and being the benchmark responsibility to set the right example in every aspect for managing and developing high-quality brands. which our customers aspire. Strengthening our of our business, from product design to the experi- ence that customers have throughout their rela- tionships with the Group’s brands; from investment choices to social and environmental initiatives. Nurturing talent Because what we do requires a diverse range of Encouraging all our employees to reach their full talent, we are committed to training teams that career potential and achieve their aspirations. embody excellence. Because passing on skills is Developing diversity and the wealth of human an integral part of our culture, we want to use resources at our companies in all the countries where that opportunity to promote social inclusion and we operate, and encouraging initiatives in these employment. Because our crafts make the most of areas. Contributing to the knowledge and preser- nature at its purest and most beautiful, we see pre- vation of our crafts outside the Group in addition to serving the environment as a strategic imperative. our own expertise as artisans and designers. The values and actions encompassed by our sustainable development attitude emerge from a tradition that dates back to the origins of our Environment Maisons and forms an integral part of our heritage. Working together to preserve the planet’s resources, Our long-term success depends not only on the to design and develop products that are compatible Group’s solid business model and profitable growth with environmental concerns, reporting on our strategy, but also on our unwavering commitment policies and projects and the progress achieved in to creativity, excellence, and our environmental meeting our objectives. Contributing to environ- impact and corporate citizenship. mental protection above and beyond factors directly related to our operations by entering into active partnerships with cooperating businesses, local authorities and nonprofits. Partnerships and support Maintaining and strengthening responsible relation- ships with our partners, suppliers and subcontrac- tors. Implementing a patronage program for the widest possible public benefit which reflects and transmits our fundamental values. Providing active support for major causes, humanitarian projects and public health programs, and developing initiatives in support of art and young people. 26 • 27 LVMH 2022 . Performance and responsibility LVMH’s Métiers d’Excellence initiative sets out on its You and ME tour to introduce future talent to the Group’s professions of excellence Our talent is the driving force powering our Group’s performance AT LVMH, WE ARE VERY MINDFUL OF THE RESPONSIBILITIES THAT LEADERSHIP BRINGS. THIS SENSE OF DUTY COMPELS US TO TAKE STEPS ON A DAILY BASIS AND OVER THE LONG TERM TO HELP MAKE THE WORLD A BETTER PLACE. ALONGSIDE THE ECONOMIC DEVELOPMENT AND JOBS GROWTH OUR GROUP’S SUCCESS UNLOCKS, WE PLACE TREMENDOUS VALUE ON OUR TALENT. 39,000 YOUNG PEOPLE UNDER 30 HIRED BY THE GROUP 18th CONSECUTIVE YEAR AS THE PREFERRED EMPLOYER AMONG BUSINESS SCHOOL STUDENTS IN FRANCE The success of our Maisons is built on our long- on the digital platform (www.insidelvmh.com), standing belief that our people make all the differ- which features over 100 hours of content about the ence. 2022 was no exception to this rule. It was luxury sector, the LVMH Group and its professions another year in which our talent – recent graduates, and careers. Inside LVMH also offers an exclusive employees, craftspeople, managers and senior 30-hour certification program, which more than executives alike – played a decisive role in our per- 90,000 people have completed. formance. With success comes duty, and with our These initiatives for young people have helped values comes a sense of responsibility. They drive maintain our Group’s appeal, and for the 18th con- us to respect each individual and their uniqueness secutive year, we were voted the most popular and to support our talent so they can achieve their employer among business school students in France. full potential. LVMH is also very highly rated – and on the rise – in Believing in all our talent international rankings. Through the LIVE (L’Institut des Vocations pour l’Emploi) vocational training program, LVMH has taken action since 2019 to help adults who have Nurturing the development and meeting the aspira- not had a job or training for at least a year secure tions of our employees while attracting fresh talent employment. LIVE, a joint initiative by Brigitte Macron are crucial to make sure our Group continues to and LVMH, has three campuses – Clichy-sous-Bois, thrive and prosper. In 2022, LVMH hired 60,000 new Valence and Roubaix – and will soon be joined by a staff worldwide – 39,000 of them under 30 – lifting fourth campus in Marseille. More than 500 people the total size of our workforce to over 196,000. have already taken part in LIVE training, and 79% Thanks to their diversity, creativity and talent, they are the beating heart of our ecosystem of of them secured work or further training after completing the program. 75 Maisons, which operate in six business sectors and 81 countries. Various programs aimed at accelerating employees’ careers have also attracted high-potential graduates, Boosting potential set to become future leaders for the Group and its Offering our employees attractive opportunities for Maisons. In 2022, LVMH unveiled SPRING, its first personal growth and highly rewarding career paths graduate training program. Serving as a springboard is the cornerstone of our human resources strategy. and career accelerator, it offers recent graduates In 2022, for example, the Group introduced THINK the opportunity to gain a unique experience at Retail, a six-month program specifically designed to LVMH by taking on three missions at three Maisons support store managers at its key locations in in three different professions. The SPRING concept Europe and China. The program will be extended to has already been adapted to China, where the all regions by 2024. LVMH Retail Management Trainee Program allows All our employees take an active role in their career participants to gain retail industry experience development under our new performance manage- through three different missions at two Maisons. ment approach, which gives them the keys to Additionally, the Inside LVMH program, launched in growth and advancement opportunities. 2021 to give young people insights into the luxury The sheer breadth of our ecosystem of 75 Maisons goods industry, is gaining real traction. Over affords our employees unique career opportunities. 130,000 young people worldwide have signed up Promoting internal mobility remains a top priority. 28 • 29 LVMH 2022 . Talent 280+ MÉTIERS D’EXCELLENCE HELD WITHIN THE GROUP €214m INVESTED IN TRAINING FOR EMPLOYEES The Group is taking this approach to the next level also reached out to future talent in five cities across with a range of initiatives, such as listing all open posi- France during the “You and ME” tour, which offered tions internally on the Group’s intranet, holding regular more than 1,200 internships, work-linked training career development interviews, and setting up joint contracts and jobs, in partnership with 42 Maisons Group and Maison career development committees. and 33 partner schools and universities. We are constantly refreshing and updating the LVMH’s Institut des Métiers d’Excellence (IME) had range of training programs we offer to meet demand a record intake of 450 new apprentices aged from our employees and to prepare for the business between 15 and 51 in seven countries (France, challenges that lie ahead. For example, LVMH House Switzerland, Italy, Spain, Japan, Germany and, for the – LVMH’s learning and development think tank – first time, the United States). Since 2014, more than designs programs that combine experience-sharing, 2,000 apprentices have been trained in 30 profes- open innovation and workplace culture transforma- sions by the IME. tion. This encourages a “test & learn” approach in To enable them to expand their skills throughout keeping with the Group’s entrepreneurial spirit. their careers, our talent – including our most highly Pioneering spirit is also the ethos behind Open skilled staff, known as Virtuosos – have access to DARE, the first call for ideas launched in May 2022 the Académie des Métiers d’Excellence (AME) and open to all employees of our Group and its training program and 33 Maison-specific training Maisons, irrespective of where they work, their area programs. In 2022, over 30,000 employees com- of specialization and their level of seniority. This pleted more than 200,000 hours of training. groundbreaking initiative gives every employee the chance to put forward projects that will help drive LVMH’s expansion and transformation. Passing on skills for the present and the future Cultivating diversity and uniqueness For many years now, we have been committed to combating all forms of discrimination, and are now stepping up our initiatives to promote diversity and We are pushing ahead with our commitment to inclusion – a crucial priority in which everyone has preserve the unique expertise that is crucial to the a part to play. success of the luxury industry and our Maisons. The In 2022, LVMH held the Group’s first Voices of Group boasts more than 280 métiers d’excellence Inclusion Week, which highlighted the Maisons’ (professions of excellence) in design, craftsmanship many initiatives and featured more than 100 local and the customer experience. Over 100,000 employ- events held around the world. To mark the occasion, ees around the world are the custodians of this a new roadmap was unveiled, aimed at reinforcing invaluable living heritage. a culture of inclusion within the Group. Lastly, a film To raise young people’s awareness of these essen- by Anastasia Mikova – co-producer of the docu- tial professions with solid career perspectives, the mentary Woman – also paid tribute to the Group’s Group has launched the “Excellent!” program, which diversity, featuring interviews with employees that has reached over 1,600 middle school students in reflect each individual’s uniqueness while showcasing France and Italy. In 2022, the Métiers d’Excellence the collective spirit driving them forward. Indicators as of December 31, 2022 37 AVERAGE AGE 196,006 EMPLOYEES 71% WOMEN 60,772 JOINERS (1) 10% Other markets 24% Asia (excl. Japan) 5% Japan 7% 55+ 15% 45-54 28% 35-44 Employees by region (as %) Employees by business group (as %) 19% France 21% Europe (excl. France) 21% United States 5% Other activities 28% Selective Retailing 14% Watches & Jewelry 4% Wines & Spirits 34% Fashion & Leather Goods 15% Perfumes & Cosmetics Employees by age (as %) Proportion of men/women by business group (1) (as %) 11% Under 25 39% 25-34 60% Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing 34% 36% 18% 16% 55% Other activities (1) Total permanent headcount. 40% 66% 82% 64% 84% 45% 30 • 31 LVMH 2022 . Talent In 2022, the Inclusion Index – which monitors diversity Ensuring a high quality of life at work for employees and inclusion initiatives across the Group – was is also crucial. To achieve this, we have developed expanded to include a broader spectrum of char- a range of initiatives together with our Maisons acteristics, including national and social origins, focused on making working conditions and hours disabilities and age groups. For the first time this year, more flexible, including the development of remote all the Group’s employees were invited to vote for what work, and promoting mental well-being. they considered to be the most worthy initiatives. Our care for our employees extends beyond the world 2022 was also the 15th anniversary of the EllesVMH of work. To extend a helping hand to all our employ- program, which promotes women’s career devel- opment at every tier of the organization. While ees at the most difficult times in their personal lives, we established the LVMH Heart Fund, which provides continuing to work toward its goal of having women psychological, social and financial support on a fully hold 50% of the Group’s key positions by 2025 – confidential basis. Since its launch in June 2021, it has with this figure reaching 45% in 2022, up from 23% received more than 4,000 requests for assistance 15 years ago – the program has now added a new from around the globe. goal: achieving wage parity worldwide by 2025. In 2022, our employees also reached out to help In addition, our Group continues to be a vocal those who need it. They supported more than backer of including people with disabilities in the one million people under our partnerships with luxury industry. In 2022, LVMH pledged to double 900 nonprofits and charitable foundations. In the number of people with disabilities in its work- 2022, the Engaged Maisons Dinner – a key event in force by 2025. Looking after our talent, each and every day our outreach program – celebrated its 10th anni- versary with an unprecedented charity gala, with all the event’s profits donated to the Hôpital Robert Debré to support its research to treat sickle cell anemia. Looking after our employees’ health and safety is an Once again in 2022, the progress made by our imperative for our Group. Together with our Maisons, Group was made possible by the commitment and we pushed ahead with the initiative launched in talent of our 196,000 employees around the world. 2021 by introducing the Health & Safety Charter. Its We take pride in supporting them throughout their aim is to embed a “zero-accident” culture by setting careers so they can rise to meet the existing and precise targets for 2025. future challenges in our industry. 15 YEARS OF THE ELLESVMH PROGRAM, PROMOTING WOMEN’S CAREER DEVELOPMENT ACROSS THE GROUP 45,800 EMPLOYEES INVOLVED IN CSR INITIATIVES OFFERED BY THE GROUP OR ITS MAISONS LVMH 2022 . Ta l e n t Strong social performance TARGETS 2022 RESULTS Respecting every individual’s uniqueness and dignity, and promoting diversity 2025 100% of recruiters trained in non-discrimination practices 73% of recruiters trained in non-discrimination practices between 2020 and 2022 50% of the Group’s key positions held by women 45% of the Group’s key positions held by women 2% of the workforce made up by employees with disabilities 1.4% of the workforce made up by employees with disabilities Supporting our employees by taking action for their safety and well-being 2025 100% of the 5 commitments set out in the Health and Safety Charter achieved: 1. Identify health and safety priorities 2. Draw up a health and safety action plan 3. Roll out and manage the health and safety approach 4. Engage every employee in the health and safety approach 5. Maintain a virtuous organizational culture to promote a safe, healthy ecosystem 80% of Maisons have a health and safety approach 88% of Maisons periodically review their health and safety approach 87% of the Maisons’ Management Committees conduct an annual review of health and safety results 33% of employees have completed accident prevention and first aid training 100% of Maisons dedicate one day per year to the promotion of health, safety and quality of life at work Passing on skills and expertise that are an integral part of our world’s cultural heritage 2024 22,000 new hires in the Group’s métiers d’excellence (professions of excellence) 3,000 middle school students informed of the métiers d’excellence through the “Excellent!” program 8,000 new hires in the Group’s métiers d’excellence (professions of excellence) 2,000+ apprentices trained by the Institut des Métiers d’Excellence (IME) in 7 countries since its launch in 2014 1,600+ middle school students informed of the métiers d’excellence through the “Excellent!” program Working to build a better society 2025 100% of Maisons will give their employees the chance to get involved in a community-oriented initiative 1 million+ people helped during the year 900+ partnerships with nonprofits and charitable foundations 32 • 33 Guerlain: European dark bees on Ouessant Island A year of deep-rooted growth for the LIFE 360 environmental program IN 2022, LVMH ACCELERATED THE ROLLOUT OF ITS LIFE 360 ENVIRONMENTAL STRATEGY, WHICH CHANNELS THE MAISONS’ CREATIVITY AND INNOVATION TO DESIGN PRODUCTS WITH A POWERFUL APPEAL YET A MINIMAL IMPACT ON NATURE AND THE CLIMATE. AAA RATING FROM THE CDP (CARBON DISCLOSURE PROJECT) CLIMATE, FOREST, WATER 190,000+ METERS OF FABRIC UPCYCLED WITH NONA SOURCE LIFE 360 introduced new tools and resources in impact metrics, and the Group was named in 2022 as 2022 to help spotlight environmental performance across the Group, with four strategic action plans structured around biodiversity, circular design, an active member of the TNFD (Taskforce on Nature- related Financial Disclosures) Forum. Alongside Guerlain, Moët Hennessy and Parfums Christian traceability and climate. Training programs were Dior, the Group spoke about the entire LIFE 360 expanded, with a special emphasis on sustainable Biodiversity program at the COP 15 event held in design to facilitate improvements to a number of Montreal in December 2022 as part of the Nature & manufacturing processes. New tech-driven solu- Culture and Business & Biodiversity summits. tions helped leverage environmental data to man- age operations more effectively while boosting traceability and transparency. In December 2022, LVMH was rewarded for its efforts with a triple A (climate, forest, water) CDP (Carbon Disclosure Project) score. Accelerating biodiversity regeneration Enhancing the appeal of sustainable products LIFE 360’s Circular Design action plan, under which the Group aims to apply a sustainable design approach to all of its products by 2030, is helping to shift mindsets and redefine beauty. Enhancing the appeal of sustainable products is what Christian Dior Couture set about doing with its spring 2022 During 2022, LVMH ramped up its program of launch of a menswear collection in conjunction with biodiversity initiatives, launching regenerative the Parley for the Oceans NGO. The entire collection agriculture projects in Turkey for cotton, in Uruguay was developed using high-performance textiles and Australia for merino wool, in South Africa for obtained by collecting and recycling marine plastic mohair, in Indonesia for palm oil and in France for waste from islands around the world. This approach is all the Moët Hennessy vineyards and for some the product of several years of joint research efforts. iconic fragrance ingredients. At certain locations, Today more than ever before, products’ environ- an increase in the soil’s carbon and nitrogen content mental performance is benefiting from dedicated is already evident. New measurement tools, such as research programs in areas such as materials innova- the Regeneration Index jointly developed with spe- tion. Examples of this include transforming lab-grown cialists from French nonprofit Pour une Agriculture keratin into fibers then bio-based fur and exploring du Vivant, help assess these changes. The full-scale the possibilities offered by synthetic diamonds, as transition to regenerative farming practices requires TAG Heuer has done with its Carrera Plasma watch. a coordinated response from all stakeholders, as In addition, the Perfumes & Cosmetics and Fashion reflected in LVMH’s decision to join the One Planet Maisons are developing ways of giving a whole new Business for Biodiversity (OP2B) organization. The lease of life to their unused by-products and unsold partnership established with UNESCO under the items. Nona Source, a platform for selling unused Man and the Biosphere program also achieved textiles from luxury goods houses, solidified its significant progress in 2022, including the launch of position as a champion of the circular economy in the economic initiatives with local communities, such fashion industry, with over 190,000 meters of fabric as the production of essential oils and the creation of from more than 10 Fashion Maisons upcycled in plant nurseries in Bolivia to speed up reforestation. this way in 2022. Nona Source, CEDRE (Centre All in all, 1.37 million hectares of flora and fauna hab- Environnemental de Déconditionnement, Recyclage itat were preserved or restored in 2022. The Group Écologique) and WeTurn, the leading recycling took its plans to tackle deforestation to the next level platform for unsold textiles, fabric rolls and produc- by bringing them into line with the future require- tion offcuts, together form an ecosystem that has ments of the Science Based Targets for Nature given rise to a platform repurposing textiles for the framework. It decided to have its plant and animal benefit of the Group’s Maisons. As part of this supply chains certified to the highest standards for approach, Louis Vuitton launched in 2022 the first protecting biodiversity and animal welfare to reduce its impact on nature. LVMH is taking part in the closed-loop recycling project as part of which more than 4 metric tons of textiles are to be reused in its international drive to standardize biodiversity production model. 34 • 35 LVMH 2022 . Environment 21% IMPROVEMENT IN THE ENVIRONMENTAL PERFORMANCE INDEX SCORES OF PERFUMES AND COSMETICS PACKAGING COMPARED WITH 2021 31,240 HOURS OF TRAINING FOCUSED ON THE OPERATIONAL PRIORITIES OF LIFE 360 (VS. 20,100 HOURS IN 2021) Guaranteeing first-class traceability Encouraging energy efficiency In 2022, the share of the Group’s energy mix LVMH aims to ensure full traceability across all the accounted for by renewable energy surged to 47% Group’s strategic supply chains, for each step (up 8 points from 2021). At the same time, the from field to final product. The goal is to have a Group took steps to increase its energy efficiency dedicated traceability system covering all sourcing by announcing a plan in September 2022 to cut its channels by 2030. To achieve this, LVMH is devel- energy consumption between October 2022 and oping new solutions tailored to each sourcing October 2023, initially in France then worldwide. channel’s specific features. Hublot uses the Aura The plan delivered immediate results at a number Blockchain Consortium’s solution launched in of Maisons including Sephora, which lowered the 2021 by LVMH in partnership with Prada Group energy consumption of its stores and offices in and Cartier, a subsidiary of Richemont, to provide France by 19.6% between October and December its customers with a digital guarantee, which lets 2022. Together with the other measures in the LIFE them confirm their watch’s authenticity simply by 360 climate program, these results have helped taking a photo of it on their mobile phone. In 2022, the Group also rolled out new tools to map its stra- tegic sourcing channels. These gather information achieve a reduction of over 11% in energy con- sumption-related CO2 emissions between 2019 and 2022 (Scopes 1 and 2). Bold action to reduce at every stage of product transformation, while stores’ environmental footprint also contributed streamlining processes for the Maisons and their to these outcomes. In October 2022, LVMH set up suppliers. When combined with certification sys- a groundbreaking partnership with Hang Lung tems designed to safeguard compliance with eth- Properties, a leading shopping mall developer, ical, environmental and labor guidelines, they help to work together on improving the environmental raise standards. For example, Tiffany & Co.’s dia- impact of mall stores. Outbound transport has been mond supply policy goes beyond the obligations a particular focus of attention for the Maisons as of the Kimberley Process (which defines “con- flict-free” diamonds), and requires its suppliers to comply with the Diamond Source Warranty they work towards their target of cutting Scope 3 emissions (55% reduction in CO2 emissions per unit of added value by 2030 relative to 2019, a target Protocol. Rigorous traceability is also a prerequi- validated by SBTi). Louis Vuitton is one of the site for a reliable information system concerning leading global players behind the development of the various features of a consumer-oriented prod- Sustainable Aviation Fuel (SAF). This biofuel, which uct, as is required under the French legislation. LVMH is also actively involved in initiatives cur- rently underway in France and Europe aimed at is manufactured from used cooking oils, can deliver an 80% reduction in CO2 emissions compared to fossil fuel kerosene. At COP 27, LVMH was able to introducing labeling that shows the environmental share news of these achievements, along with the performance of fashion products, and has joined results of rolling out regenerative farming practices, forces with cosmetics stakeholders to develop a which also help maximize its carbon capture poten- rating system for the environmental impact of tial by improving soil quality. Moët Hennessy, which beauty products. This focus on implementing an held the first edition of the World Living Soils exacting and transparent traceability policy has, Forum in June 2022, spoke about its soil health ini- for example, put Fendi in the top tier of businesses tiatives during the Coalition of Action for Soil Health according to the Fashion Transparency Index. (CA4SH) event in Egypt. The LIFE 360 program TARGETS 2022 RESULTS PROGRESS versus 2021 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 Certification of strategic supply chains: • Cotton: 71% • Leather: 91% • LVMH vineyards: 94% 1.37 million hectares preserved or restored +10% +10% +2% Biodiversity 2023 New circular design services: Repairs, upcycling, etc. 39% recycled raw materials in glass and plastic packaging 2026 Packaging: Zero fossil-based virgin plastic 7,942 metric tons of fossil-based virgin plastic in customer packaging (8% reduction since 2019) Circular design 2030 100 % of new products covered by a sustainable design approach 2030 100 % of strategic supply chains covered by a dedicated traceability system Traceability/ Transparency 2026 50% reduction in energy-related GHG emissions (baseline: 2019) 100% renewable or low-carbon energy in-store and on-site Climate 2030 55% reduction and/or avoidance of Scope 3 GHG emissions 36 • 37 9,500 products covered by a traceability system for informing customers Country of origin to be known for: • Leather purchases: 86% • Wool purchases: 64% SBTi-validated carbon trajectory 11% reduction in energy-related GHG emissions (baseline: 2019) 47% renewable energy in the Group’s energy mix 77% of stores equipped with LED lighting +137% +10% +2% +8% +20% LVMH 2022 . Environment Loro Piana: The Gift of Kings® Merino wool, Australia Exemplary ethics and environmental, workforce-related and social responsibility 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 ITS EMPLOYEES AND PARTNERS. 1,700+ AUDITS CONDUCTED AT 1,384 SUPPLIERS AND SUBCONTRACTORS 78% OF OUR SUPPLIERS ARE BASED IN EUROPE Codes of ethics and their application manager, the Privacy, Ethics & Compliance Officer for their Maison or the Group’s Privacy, Ethics & Compliance Director. LVMH’s wide-ranging ethical commitments to its The Group’s employees and stakeholders also have employees and partners are reflected in the Group’s access to LVMH Alert Line, an online whistleblowing long-standing support for benchmark initiatives platform for reporting any violations of laws, rules or such as the United Nations Global Compact, and in in-house codes of conduct securely and confidentially. the adoption of internal charters and codes of con- duct, such as the LVMH Code of Conduct, which outlines the rules to be followed by all employees as they go about their work. The Group considers it very important that its Maisons and their partners Fair and responsible relations with our partners (suppliers, distributors, subcontractors, etc.) Supporting our partners is a key strategic priority abide by a shared set of rules, practices and prin- for LVMH, as we aim to build long-term relation- ciples with regard to business conduct and ethics, ships underpinned by our shared quest for excellence corporate social responsibility and environmental and the ambition to establish a set of common eth- protection, which is why LVMH requires its part- ical principles, guidelines and practices. To this end, ners to adhere to the principles set out in the the Group has developed a comprehensive approach Group’s Supplier Code of Conduct. In April 2022, aimed at ensuring that our partners and suppliers this code was updated to reflect changes in laws adopt environmental, workforce-related and social and societal norms as well as the Group’s stricter best practices, while raising their awareness of and ethics requirements. providing training on issues specific to their own The Group has a dedicated governance structure that activities. LVMH and its Maisons work with them as ensures its values and codes of ethics are applied at part of a collaborative approach, offering support the operating level. This structure includes the Ethics through audits and, where necessary, action plans. & Sustainable Development Committee, which LVMH continued to carry out a high number of audits operates within the Board of Directors, and to which at supplier production sites, with over 1,700 audits the Privacy, Ethics & Compliance Department reports conducted in 2022. The Group also trained the buy- on a regular basis. The Privacy, Ethics & Compliance ers for its Maisons to ensure that its comprehensive Department, which has a staff of around ten peo- ple, works with its officers at the Maisons to steer and coordinate the implementation of compliance responsible purchasing process is successfully followed. In addition to the responsible purchasing training provided at the Maisons, a Group-wide programs with regard to anti-corruption, personal responsible purchasing training program was data protection, respecting international sanctions, launched in 2022 and will continue rolling out in 2023. human rights and anti-money laundering laws. LVMH’s responsible sourcing policy also includes The LVMH Group has always been staunchly com- initiatives that provide suppliers with support and mitted to adopting and promoting honest and ethical behavior in all its actions and relations with its partners. Employees and stakeholders are training. For example, LVMH is involved in the Utthan embroidery initiative along with a number of other luxury brands. The program aims to empower encouraged to share any concerns they may have artisans in Mumbai’s hand embroidery cluster, regarding compliance with the LVMH Code of where many of the embroiderers partnering with Conduct, directives, internal guidelines and policies the Maisons are based, and help them gain recog- and/or applicable laws and regulations. Employees nition for their skills. The initiative also includes a can reach out to their manager or human resources training program for embroiderers. 38 • 39 LVMH 2022 . Ethics and responsible partnerships Fondation Louis Vuitton, Paris Supporting culture, young people and humanitarian projects LVMH HAS BEEN PURSUING GROUNDBREAKING CORPORATE PHILANTHROPY INITIATIVES FOR NEARLY 30 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. 1 million PEOPLE ASSISTED THROUGH OVER 900 PARTNERSHIPS WITH NONPROFITS AND CHARITABLE FOUNDATIONS 9.4 million VISITORS TO THE FONDATION LOUIS VUITTON SINCE ITS OPENING Culture, heritage and contemporary creative arts Research and arts education initiatives Restoring and enriching historical heritage In 2022, LVMH continued to back the effort to save Once again this year, LVMH’s patronage of programs for young people focused on music. In particular, LVMH renewed its support for Orchestre à l’École, Notre-Dame de Paris Cathedral, whose restoration a nonprofit that enables hundreds of children all will take several more years. Just one day after over France to start playing a musical instrument. the terrible fire that ravaged the monument in the The Group also continued its actions to promote spring of 2019, LVMH, led by its Chairman, Bernard access for young people to performances at the Arnault, made a €100 million donation (along with Opéra Comique in Paris. LVMH once again loaned an additional €100 million from his family group) to out the Stradivariuses in its collection. ensure that Notre-Dame’s long restoration process LVMH is also a patron of the Fondation du Collège is followed through to completion. In support of the de France. arts, LVMH signed on to sponsor a new production of Tennessee Williams’ The Glass Menagerie at the Théâtre de l’Odéon, directed by Ivo van Hove. With its performances interrupted by the pandemic lockdown, this play was presented again in 2022, Backing medical research and certain social causes once again thanks to the support of LVMH. The Group supported numerous institutions well Commitments to culture and expanding access to it LVMH has been a loyal patron of the Nuit Blanche known for their work with children, the elderly and people with disabilities, and for their efforts to combat major causes of suffering and exclusion. In particular, LVMH provided major support to the night-time arts festival since its creation twenty years Fondation des Hôpitaux de Paris-Hôpitaux de France ago, and once again in 2022 provided support in France; Save the Children Japan; and the Robin alongside the City of Paris to the French and inter- Hood Foundation in New York, which works to sup- national arts scene, giving center stage to contem- port initiatives for children. It also supported the porary artists at an event open to all in the heart Fondation Claude Pompidou, which provides support of Paris. LVMH also continued its support for the in France for seniors and people with disabilities; Giacometti Institute in Paris, helping it develop its Association Fraternité Universelle, which works in scientific and cultural program. Haiti to improve access to health care and education The final event for the ninth edition of the LVMH alongside actions in favor of agricultural develop- Prize for Young Fashion Designers was held with an ment, especially in the Central Plateau; and the in-person audience. Out of nine finalists, the LVMH Curie Institute in its research and work to fight child- Prize was awarded to Steven Stokey-Daley, creator hood cancer. The Group is also a long-standing of S.S. Daley. He won a €300,000 award and a year supporter of a number of scientific teams and founda- of mentoring within the LVMH Group. The panel of tions engaged in cutting-edge public health research. judges also decided to award the Karl Lagerfeld Prize to two designers: Eli Russell Linnetz (USA), creator of ERL, and Idris Balogun (USA), creator of Winnie NY. Each won a €150,000 award and a year of mentoring. 40 • 41 LVMH 2022 . Corporate philanthropy A haven for art and culture The Fondation Louis Vuitton, which opened in 2014, is now recog- nized 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 post- poned due to the pandemic, was able to open its doors to the public on September 23, 2020. Throughout 2021 and 2022, the Fondation Louis Vuitton continued 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 exhibition opened its doors to the public on September 22, 2021. It closed on April 3, 2022, after welcoming 1,250,000 visitors. This highly anticipated exhibition, which received unanimous praise from the art world, featured master- pieces that had never been exhibited outside of Russia from the collec- tion of European and Russian modern art assembled by the Muscovite brothers Mikhail Abramovich Morozov (1870-1903) and Ivan Abramovich Morozov (1871-1921). This historic presentation of The Morozov Collection echoed the 2016 Shchukin collection exhibition, which marked an unprecedented new era in the partnership between the Fondation Louis Vuitton and major Russian museums. The Hantai exhibition was held from May 18 to August 29, 2022. Lastly, the Monet-Mitchell exhibition and the Joan Mitchell retrospective opened on October 5, 2022. The Fondation Louis Vuitton continued its international Hors-Les-Murs (“Beyond the Walls”) program throughout the year, with the works in its collection shown in a number of exhibitions held at its Espace Louis Vuitton locations in Tokyo, Munich, Venice, Beijing, Seoul and Osaka. Business group insights Château Cheval Blanc: Winemaking site designed by Christian de Portzamparc LVMH WINES & SPIRITS 2022 A value-enhancing strategy for lasting success LVMH owes its global leadership in premium wines and spirits to a unique group of exceptional Maisons based in Champagne, Bordeaux, Burgundy and other highly renowned wine-growing regions. Inspired by their visionary founders and drawing on their strong heritage – which for some goes back hundreds of years – they all share the key values of excellence and creativity, combining tradition with innovation. Well-balanced, worldwide presence In the current context, Moët Hennessy continues to pursue a value-enhancing strategy focused on the highest-quality products. The balanced geographic expansion of its portfolio of brands continues thanks to a powerful and agile global distribution network present in over 160 countries. Responsible procurement policy 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 responsi- ble, innovative and efficient Pont Neuf bottling and logistics facility inaugurated by Hennessy in 2017, which reflects the Maison’s long-term vision. 2023 OUTLOOK The economic and geopolitical environment remains uncertain in key markets, due in particular to the effects of inflation and developments relating to the public health situation in China. Against this backdrop, the Wines & Spirits business group is going into 2023 with confidence and determina- tion, mindful of the need to maintain a pragmatic, agile approach. Excellence, authenticity, innova- tion and sustainability remain central to the business group’s value-enhancing strategy that helps fuel its growth, as does the diversification of Moët Hennessy’s portfolio. Backed by the strength of its highly appealing brands as well as its vibrant, diverse and highly committed staff, the business group remains resolutely optimistic about the medium- and long-term development prospects of its Maisons. In line with Moët Hennessy’s over- arching focus on crafting experiences, the business group will build stronger ties with customers by taking a selective approach to points of sale, launching bold innovations and collaborations, crafting experiences that are ever more meaning- ful and unique for enjoying its products, and stepping up its digital presence. More aware than ever of the value of their heritage and their responsibility, all of the Maisons are taking greater steps to act sustainably, protect the envi- ronment and reduce their carbon footprint. Hennessy 2022 at a glance RECORD LEVEL OF REVENUE AND EARNINGS 2022 revenue by region 13% Other markets 20% Asia (excl. Japan) 6% Japan 6% France 18% Europe (excl. France) 37% United States Revenue (EUR millions) Profit from recurring operations (EUR millions) 7,099 2,155 1,863 1,388 5,974 4, 755 Operating investments (EUR millions) 440 320 328 2020 2021 2022 2020 2021 2022 2020 2021 2022 Major strategic priorities — Pursue value-enhancing strategy — Expand production capacities to ensure sustainable growth — Develop direct sales to end-customers — Further improve efficiency of distribution in key markets — Accelerate efforts to protect the environment, in particular in supply chains and packaging 50 • 51 Hennessy LVMH 2022 . Wines & Spirits 1 1. Dom Pérignon 2. Moët & Chandon 3. Krug 2022 Highlights 2 3 Turning in another record year, the Wines & Spirits an initiative aimed at accelerating the development business group reaffirmed its position as a leader and sharing of knowledge to combat the loss of in luxury wines and spirits. Amid an extremely fertile soil. volatile environment, this performance reflected three key priorities of the business group’s val- Driven by strong demand, which led to mounting ue-enhancing strategy: brand appeal; portfolio pressure on supply, champagne sales volumes diversification, particularly in wines; and balanced were up 6%. All regions saw substantial growth, in geographic expansion. 2022 was also a year marked by the desire to connect more directly with customers by offering them unique experiences at particular at high-energy events and drinking estab- lishments and fine dining venues. Moët & Chandon turned in a record year while taking part in ambi- the Maisons, at European department stores and tious sustainable development projects for its on the island of Hainan in China. Online sales made further gains, while the Private Sales business had region, focused in particular on protecting biodi- versity. Selected as the official champagne partner an outstanding year, with several exceptional sales for Queen Elizabeth II’s Platinum Jubilee celebra- of rare casks. Moët Hennessy demonstrated its tions, the Maison presented its Grand Vintage 2015 environmental and social commitment by holding the first World Living Soils Forum in Arles in June, and opened its first eponymous champagne bar at Harrods in London. Dom Pérignon augmented its 52 • 53 LVMH 2022 . Wines & Spirits 1 2 appeal with its “Révélations” campaign to mark the launch of Dom Pérignon 2004 Plénitude 2, and through the renewal of its collaboration with world- by tastings of 2008 vintages. Jointly owned with Shawn “Jay-Z” Carter, Armand de Brignac com- pleted its first full year as part of LVMH, recording famous star Lady Gaga. For its 250th anniversary, Veuve Clicquot turned in stellar results, buoyed by a worldwide marketing campaign, a traveling exhi- bition and a unique experience aboard the legend- ary Venice Simplon-Orient-Express luxury train. The Maison also celebrated the 50th anniversary of both its prestige cuvée La Grande Dame and its women’s entrepreneurship program. Ruinart recorded strong growth in all its markets, with the solid sales growth in all regions. The Estates & Wines Maisons saw strong demand, especially Cloudy Bay (New Zealand) and Terrazas de los Andes (Argentina). Among Provence rosé wines, Château d’Esclans continued to expand its reach to international markets at a rapid pace, while the launch by Château Galoupet of its 2021 Cru Classé illustrated the success of its revival, with the launch of Dom Ruinart Blanc de Blancs 2010, estate receiving accolades in the press for the named Supreme World Champion for 2022 at the Champagne & Sparkling Wine World Championships. The Maison continued the rollout of its sustainably superior quality of its wines and its firm commit- ment to sustainable development. Ao Yun became the first Chinese vintage to be sold via wine distri- designed case and its agroforestry winegrowing pilot project. Krug confirmed the success of its unique model with the release of Krug Grande Cuvée 170e Édition and Krug Rosé 26e Édition, and the launch of an immersive musical experience by bution network La Place de Bordeaux, confirming its excellence and its ability to win over fine wine lovers around the world. Lastly, the acquisition of Joseph Phelps Vineyards, one of the most acclaimed wine estates in Napa Valley, California, acclaimed composer Ryuichi Sakamoto, inspired strengthened and rounded out its portfolio of 3 4 OUR MAISONS TAKE ACTION The quality of the Group’s products relies on the health of its terroirs’ Moët Hennessy holds the first soils and the expertise passed ever World Living Soils Forum down by the founders of its iconic Maisons. Leading international — In June 2022, Moët Hennessy experts – among them scientists, held the first ever World Living Soils researchers, public institutions, Forum in Arles, France. The theme nonprofits, and companies in the was harnessing resources and wines and spirits and agri-food taking action to protect living soils. industries – were invited to spend This first-of-its-kind event brought two days sharing their knowledge together around a hundred and expertise, working together experts from all over the world, to identify solutions to protect soil all passionately committed to and accelerate the transition. protecting and regenerating soil. 1. Ruinart 2. Veuve Clicquot 3. Château d’Esclans 4. Glenmorangie 54 • 55 LVMH 2022 . Wines & Spirits 1. 2. Hennessy 3. Belvedere 4. Eminente exceptional wines. Chandon further cemented its leadership position in quality sparkling wines, Glenmorangie and Ardbeg whiskies generated record sales, fueled by high-impact marketing cam- supported by the redesign of its marketing and paigns, new packaging at Glenmorangie, launches packaging in 2021. Its all-natural product Chandon of innovative products such as Glenmorangie OUR MAISONS TAKE ACTION Veuve Clicquot celebrates 50 years Garden Spritz continued its worldwide develop- Azuma Makoto and Ardbeg Fermutation, as well as of the Bold Woman Award ment, with launches in Southern Europe and the exceptional sales of rare casks. The San Francisco Asia-Pacific region. World Spirits Competition and International Spirits — In 2022, Veuve Clicquot held Challenge saw them win 25 gold medals. Ardbeg a party at the Olympia in Paris Given the exceptionally high comparison base in 2020 and 2021, Hennessy cognac volumes were down slightly year on year, affected in China by the connected more directly with customers, with to celebrate 50 years of the Bold its acquisition of a hotel on the Isle of Islay and Woman Award with special guest the launch of an e-commerce platform in the Gwyneth Paltrow, Oscar-winning public health situation and in the United States by United Kingdom. supply chain disruptions. The Maison’s proactive approach to value creation and firm pricing helped offset these circumstances and achieve a further Belvedere vodka benefited from enthusiasm among consumers, particularly at high-energy actress and founder of cosmetics and lifestyle brand Goop. During the ceremony, the Bold Woman Award was presented to Véra Kempf increase in revenue over the course of the year. clubs, and turned in a record performance. A new and the Bold Future Award to Julie The world leader in premium spirits for the fourth marketing campaign, featuring actor Daniel Craig, Davico-Pahin. A new project was consecutive year, Hennessy further strengthened conveyed the Maison’s vision and boldness. its appeal through initiatives such as the renewal of its partnership with the NBA, several openings of attractive stores, a stunning redesign for V.S.O.P packaging and a new marketing campaign for its premium qualities entitled “Paradis is on Earth”. The Maison has made its sustainable development activities a central part of its 10-year roadmap through three key priorities: protecting living soils, reducing its carbon footprint by 50% by 2030, and demonstrating its commitment to society. Woodinville continued its development in the United States and invested in its production capac- ity to support its future growth. Volcán de mi Tierra capitalized on strong growth in the tequila market and continued its move upmarket with the creation of Volcán X.A, an ultra-premium blend. Eminente rum gained ground in the ultra-premium market. also announced: the Bold Open Data Base, the first global open database of female entrepreneurs around the world. Created in 1972 in honor of Madame Clicquot, known for her boldness, creativity and determination, Bold is a community of 450 award-winning women from 27 countries. The Maison was the first to establish and bring together an international community of committed female entrepreneurs fighting together for greater inclusion, impact and visibility. 1 3 56 • 57 2 4 LVMH 2022 . Wines & Spirits 2022 STORIES A legend of Napa Valley JOSEPH PHELPS — LVMH has added Joseph Phelps Vineyards to its portfolio of high-end wines and spirits. Founded in 1973 by Joseph Phelps, the winery – and notably its legendary Insignia wine, a Bordeaux-style blend – quickly became synonymous with Napa Valley excellence. In the early 1970s, Napa Valley was still a relatively small-scale farming town, but the discovery of its high-quality wines would soon make it a household name. Drawing on his experience in construction, Joseph Phelps helped lay the groundwork for excellence in the California winemaking industry. Today, Joseph Phelps Vineyards and its flagship Insignia wine perpetuate the founder’s legacy of exceptional quality, with his vision of winemaking excellence preserved, perfected and protected in each bottle, to be passed down to future generations. 58 • 59 LVMH 2022 . Wines & Spirits Land art and nature RUINART — As part of the countdown to its 300th anniversary, Ruinart invited land art pioneer Nils-Udo to create a unique work of art in the heart of its Taissy vineyard. The artist recovered old wood grapevine trunks and pruned vine shoots to reinfuse the vineyard with biodiversity. Using these completely natural materials, he created three “Habitats” designed to provide shelter for birds, squirrels, bees, caterpillars and other creatures. With the help of these monumental sculptures, life is regenerated throughout the 40-hectare Taissy vineyard, where the Maison has launched a pilot project to promote biodiversity. Since 2021, Ruinart has planted over 12,000 trees and shrubs in the vineyard, most of which are local species. Ruinart will celebrate its 300th anniversary in 2029. By then, ten works of art will have been installed on the Maison’s historic terroir, enriching its legacy and combining art, nature and technology. 60 • 61 LVMH 2022 . Wines & Spirits A first harvest of certified-organic grapes DOMAINE DES LAMBRAYS — Located in Morey-Saint-Denis, Clos des Lambrays is one of Burgundy’s oldest and most prestigious vineyards. Its wines are renowned for their unique personality and regularly feature in the Top 100 lists of leading wine publications. The Côte de Nuits icon, which has been making wine for over 650 years, is modernizing yet again. In 2019, the Domaine reviewed all its winemaking practices and started to convert to organic winegrowing. The ensuing work on its vineyards has produced outstanding grapes, and to provide them with the winery equipment they deserve, Domaine des Lambrays has also completely refurbished its vat room and cellars. After a meticulous three-year process, the 2022 grape harvest is the first to be certified organic by certification specialist Ecocert. Forest Destination HENNESSY — Since it was founded, over 250 years ago, Hennessy has had deep ties with forests: during the crucial aging stage, it is the interaction between the casks’ oak wood and the eaux-de-vie that creates cognac. The Maison officially launched its “Forest Destination” program in 2022. The initiative, for which the groundwork was laid starting in 2020, aims to regenerate 50,000 hectares of forest worldwide by 2030. To meet this target, Hennessy has joined forces with a group of specialists – including the French Forestry Commission (ONF) – and is putting the program into action in all the regions where it operates. Outside France, Hennessy has partnered with Reforest’Action, using its expertise to take action where it is most needed, in the most heavily affected ecosystems in Africa (Kenya, Nigeria and South Africa), the United States and China. This long-term commitment will help the Maison see projects through to completion and ensure their success. Tree nursery to help regenerate the forests of Mount Kenya 64 • 65 LVMH 2022 . Wines & Spirits Celebrating 250 years of radiant joy VEUVE CLICQUOT — Solaire Culture – Veuve Clicquot’s first traveling exhibition, held in Tokyo, then Los Angeles, followed by an upcoming opening in London in May 2023 – celebrates the champagne house’s 250th anniversary. Solaire Culture offers an unprecedented immersion in “Clicquot Culture”, paying tribute to the Maison’s creativity and boldness, and unveils exclusive contemporary artworks. The exhibition features nearly a hundred of the Maison’s emblematic treasures, including a portrait of Madame Clicquot reinterpreted by artist Yayoi Kusama, and an original 1840s bottle of Veuve Clicquot – an incredible discovery by divers exploring a shipwreck in the Baltic Sea. Designed by French curator Camille Morineau, and scenographer and designer Constance Guisset, Solaire Culture is also an all-women exhibition, showcasing the works of 10 internationally renowned female artists – including Sheila Hicks, Monique Frydman, Tacita Dean, Olimpia Zagnoli and Pénélope Bagieu – with an original work by each one inspired by Madame Clicquot, the Maison’s creations or its signature Yellow Label hue. In perfect harmony with nature CHÂTEAU GALOUPET — The story of Château Galoupet, an estate that has been on the map since the 18th century and a Cru Classé de Provence since 1955, is intertwined with its unique ecosystem of 77 hectares of protected woodland and 69 hectares of vineyard. Tucked away in the Massif des Maures, next to protected salt marshes and overlooking the islands of Porquerolles, Port-Cros and Levant, Château Galoupet’s ambition is to craft exceptional, exemplary expressions of the unique Provence terroir in the most eco-friendly way – from ground to glass. The totality of Château Galoupet’s vineyard has been converting to organic winegrowing since August 2020, and will be fully certified in 2023. Crafted from 100% estate-grown grapes, Château Galoupet Cru Classé Rosé 2021 is presented in a 70% recycled amber glass bottle weighing just 499 grams – a redesign firmly focused on sustainability. 66 • 67 LVMH 2022 . Wines & Spirits Louis Vuitton LVMH FASHION & LEATHER GOODS 2022 A unique assembly of creative talent 2023 OUTLOOK With the vigilance required by an economic and geopolitical context that remains uncertain, the Fashion & Leather Goods Maisons will continue investing for ever more appealing designs, unique customer experiences and further progress in corporate social responsibility. Louis Vuitton will spur momentum over the months ahead by focusing on the quest for perfection and creativ- ity that runs through all its professions. The Maison will continue to anchor its growth in the constant reinvention of its iconic product lines and the quality driven development of its retail network and its manufacturing sites. It will con- tinue its dialogue with art and artists, as already demonstrated at the beginning of 2023 by a second colorful collaboration with Japanese artist Yayoi Kusama. It will actively pursue its commitment to promoting and passing on excellence in crafts- manship, sales and design professions. Christian Dior will aim to maintain its remarkable pace of growth. To this end, the Maison will continue to showcase its timeless modernity and Monsieur Dior’s unique values, which continue to inspire its designers, season after season. The months ahead will feature a number of exceptional shows, openings and events worldwide. Driven by its powerful creative vision, Celine will con- tinue enhancing its appeal, guided by Hedi Slimane, and will expand its retail network with the opening of several flagship stores and the resumption of direct control over its distribution. All the Maisons will focus on selectively expanding and cultivating excellence in their retail networks. Louis Vuitton’s global preeminence, Christian Dior’s exceptional development, the growth of a collection of unique brands whose success is consolidated year after year, and its active support for young designers make LVMH a key player in the fashion and leather goods industry. Inspired designers Working with the best designers, while respecting the spirit of each brand, is one of our strategic pri- orities. Our creative directors promote the Maisons’ distinctive identities, and are the artisans of their creative excellence. Balance between iconic products and innovation Since 1854, Louis Vuitton’s renown has been built on the flawless execution of its unique trunk-making expertise, its full control over distribution and its exceptional creative imagination: a source of per- petual renewal and innovation. Ever since its first show, dubbed “New Look” by the press, Christian Dior has continued to redefine fashion as it has become an icon of French luxury throughout the world. Monsieur Dior’s unique vision is conveyed today with bold inventiveness throughout the Maison’s entire range. By striking the right balance between new releases and iconic lines, these two Maisons continue to dazzle and 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 prom- ising creative talent. We also feel it is our responsi- bility 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. Dior 2022 at a glance EXCEPTIONAL PERFORMANCES BY LOUIS VUITTON, CHRISTIAN DIOR, CELINE, FENDI, LORO PIANA, LOEWE AND MARC JACOBS 2022 revenue by region 10% Other markets 36% Asia (excl. Japan) 7% France 17% Europe (excl. France) 21% United States 9% Japan Revenue (EUR millions) Profit from recurring operations (EUR millions) Operating investments (EUR millions) 38,648 15,709 1,872 30,896 12,842 21,207 7,188 1,131 827 2020 2021 2022 2020 2021 2022 2020 2021 2022 Major strategic priorities — Continue to develop Louis Vuitton, blending the timeless and the modern, while preserving unmatched quality standards and an exclusive distribution channel, which is unique worldwide — Continue to pursue Dior’s dynamic growth — Build on the success of the other Maisons, in particular Celine, Loewe, Fendi and Loro Piana 70 • 71 Dior LVMH 2022 . Fashion & Leather Goods 1 1. 2. 3. Louis Vuitton 2022 Highlights 2 3 The Fashion & Leather Goods business group Maison opened two new workshops, including one delivered an outstanding performance, buoyed by for precious leather at Trinity Abbey, a historic mon- the creative momentum of its Maisons and strong ument in Vendôme. Between them, the two work- demand from their customers. Powerful brand shops will employ 400 leatherworkers. As part of a appeal, continued enhancements to the customer continued quest for excellence in its retail network, experience and new digital inroads were key in France, Louis Vuitton relocated its Lille store into growth drivers. The business group continued the iconic Huîtrière, a former Art Deco restaurant to proactively develop centers of excellence for listed as a historic monument. A new Louis Vuitton craftsmanship. Maison store was inaugurated in Chengdu, China, on a site that typifies the historic architecture of Louis Vuitton had a terrific year, once again buoyed by its exceptional creativity, the quality of its prod- Sichuan, and opened a flagship store in Kobe whose decor is heavily influenced by Japanese art ucts, and its strong ties to art and culture. Nicolas and design. To celebrate the 20th anniversary of its Ghesquière broke new ground by presenting his iconic Tambour watch, Louis Vuitton unveiled the collections at the Musée d’Orsay in Paris, and chose Tambour Twenty collector’s edition, modeled by the Salk Institute in San Diego, California, for his Bradley Cooper, which sold out immediately. 2023 Cruise show. In a tribute to Virgil Abloh, who Highlighting the Maison’s passion for innovation in passed away in 2021, Louis Dreamhouse, his final Men’s collection, was shown in Paris and Bangkok, watchmaking, La Fabrique du Temps Louis Vuitton launched the Louis Vuitton Watch Prize for while the Coming of Age exhibition at the Fondation Independent Creatives, aimed at recognizing and Louis Vuitton paid homage to the designer’s world. supporting up and coming talent. The 200 Trunks, Highlighting its commitment to grow its footprint in 200 Visionaries traveling exhibition was presented France and champion excellent craftsmanship, the at the founder’s historic family home in Asnières 72 • 73 LVMH 2022 . Fashion & Leather Goods 1 2 and then in Singapore, Los Angeles and New York. craftsmanship. The Dior Homme Fall/Winter 2023 final part of the year saw the Women’s Winter 2023 In December, the LV Dream exhibition opened in Collection by Kim Jones was unveiled in a night- show at the legendary Wiltern Theater in Los Angeles. Paris, paying tribute to the many creative partner- time show against the backdrop of the Pyramids of Leather goods were buoyed by the iconic Triomphe ships that have shaped the Maison’s history. A store Giza in Egypt: a spectacular futuristic odyssey and and 16 lines, enriched with new models and pro- offering exclusive products, a café, and a pastry a world first in the history of fashion at this legend- moted by summer capsule collections. Ready-to- and chocolate shop offering gourmet creations by ary site. The Dioriviera summer capsule collection wear sales picked up, with footwear and fragrances Maxime Frédéric, pastry chef at Cheval Blanc Paris, was launched worldwide in stores and pop-up also enjoying strong momentum. rounded out the experience at this unique location, locations at resort destinations. In jewelry, the new making it a new cultural and culinary destination in La Rose Dior collection stars actress Elizabeth the French capital. Debicki. After opening its first Scandinavian store in Oslo in July, Dior ended the year with a spectacular For Fendi, 2022 was marked by the success of collections designed by Kim Jones and Silvia Venturini Fendi, and by strong momentum in all of Christian Dior achieved remarkable growth across all its product lines. Following a three-year transfor- event at Harrods in London, illuminating and deco- the Maison’s business lines. In September, a New rating the windows and facades of the iconic depart- York fashion show celebrated the 25th anniversary mation, the reopening of its 30 Montaigne location ment store with a dazzling array of gingerbread of the iconic Baguette bag, featuring numerous at the beginning of the year was a resounding creations. The Christian Dior: Designer of Dreams reinterpretations, including a charm version developed success. With the historic Maison, Haute Couture workshops and salons as well as a restaurant, exhibition arrived at the Museum of Contemporary Art in Tokyo. with Tiffany and a collaboration with Marc Jacobs that was an instant hit. Two new workshops were gardens and much more, this legendary address offers a unique experience of the Dior universe. The Maison’s fashion shows were truly unique experi- ences as well, drawing on a wealth of inspiration Celine had another record year, continuing to deliver strong growth. Driven by Hedi Slimane’s modern and exacting creative vision, high-impact opened: one, for leather goods and accessories, in the Tuscan hills near Florence, and the other, for footwear, in Fermo in the Marche region. These investments, together with the acquisition of a season after season. Maria Grazia Chiuri’s women’s fashion shows and powerful marketing campaigns, majority stake in knitwear producer Maglificio collections combine artistic vision with the finest the Maison’s appeal was reflected across all its Matisse, are testament to Fendi’s commitment to expertise, as demonstrated by the 2023 Cruise product categories. After a fashion show shot in Italian expert craftsmanship. Selective develop- show in Seville, designed as a tribute to Andalusian Saint-Tropez for the Indie Summer collection, the ment of the store network also continued. 3 4 OUR MAISONS TAKE ACTION threads and fabrics from marine Dior teams up with Parley for the Oceans plastic waste and fishing vessels recovered from coastlines and remote islands around the world, such as the Maldives and Sri Lanka. — Dior and Kim Jones, Creative Collected items are processed into Director of Menswear, joined forces high-grade threads and fabrics such with Parley for the Oceans, an NGO as jacquard, a technical fabric that works to tackle plastic pollution with an ultra-breathable mesh used in the oceans. The organization in developing the Summer 2022 evolved from a research project Dior Beachwear collection. that began in 2019, upcycling new 1. 2. Dior 3. Celine 4. Fendi 74 • 75 LVMH 2022 . Fashion & Leather Goods 1. Loewe 2. Berluti 3. Marc Jacobs 4. RIMOWA New form, new image: it was a milestone year for Loro Piana, as demonstrated by the success of its two 2022 collections, its new Cocooning lifestyle Following the excellent response to Nigo’s first fashion show in Paris in January, Kenzo continued to affirm the creative vision of its new Creative line made with undyed natural cashmere, and its Director, launching a series of monthly mini capsules iconic white-soled shoes. Once again buoyed by its and unveiling the complete collection in June. unique expertise and its world-class materials such as vicuña wool, the Maison continued to raise its profile by showcasing this craftsmanship and its Berluti was boosted by a focus on its iconic lines, in particular its Alessandro and Andy shoes and the OUR MAISONS TAKE ACTION Louis Vuitton works with People For Wildlife — Louis Vuitton upheld its commitment to protecting natural resources by entering into capacity for innovation, mainly illustrated in 2022 Un Jour leather goods line. Its new “Live Iconic” a five-year partnership with nonprofit by the new CashDenim, a blend of cotton and marketing campaign channeled historic style icons cashmere woven by Japanese artisans on tradi- Marcello Mastroianni and Andy Warhol. The Playoff People For Wildlife as well as local communities to maintain tional looms. sneaker was launched, inspired by the world and regenerate biodiversity Loewe, which experienced strong growth, cultivated the art of surprise through collections infused with of 1980s basketball and paying homage to the in a 400,000-hectare natural area Maison’s very first sneaker. Retail network expan- of Australia. This major commitment sion was mainly focused on Asia, where the Maison contributes to the LVMH Group’s Jonathan Anderson’s bold creativity and highly opened new stores in Chengdu (China) and Kobe goal of regenerating 5 million hectares of flora and fauna by 2030 and is aligned with the agreement reached at the COP15 Biodiversity conference to protect 30% of the planet’s land by 2030. modern vision. The success of JW Anderson’s fash- (Japan), and renovated a historic store in Tokyo. ion shows and communication boosted brand awareness and the Maison’s appeal. Already very strong in Europe, Loewe strengthened its position- RIMOWA achieved record revenue as tourism and business travel picked up, with this performance ing in the United States, opening new stores in fueled by the unique quality of its products and New York and Los Angeles. The Maison continued the expansion of its network of directly operated to develop its leather goods school. stores. The Maison launched a new campaign Marc Jacobs confirmed its fresh momentum, with an impressive performance in the United States dubbed “Ingenieurskunst” (“The Art of Engineering”), celebrating German expert craftsmanship and paying tribute to its iconic aluminum suitcase. Rimowa and remarkably robust online sales. Buoyed by now offers a lifetime guarantee on all its suitcases. high levels of social media engagement, the Maison A collaboration was launched with startup RTFKT, saw strong growth in demand for its best-selling which specializes in the metaverse, to create an NFT bags, particularly its Tote Bag. collection and a limited-edition physical suitcase. At Givenchy, Matthew Williams held his first mens- wear show in Paris in June. The Maison opened Pucci unveiled Camille Miceli’s first collections at presentations in Capri and St. Moritz that adopted new directly operated stores in the Middle East and a bold new format. the United States. Sales of the iconic Shark Lock boot in particular grew strongly. 1 3 76 • 77 2 4 LVMH 2022 . Fashion & Leather Goods 2022 STORIES Visual hyperbole as a stylistic device LOUIS VUITTON — Nicolas Ghesquière presented his Louis Vuitton Women’s Spring/Summer 2023 collection in Paris in the majestic surroundings of the Louvre’s Cour Carrée courtyard. For the first time, the Maison’s Creative Director of Womenswear invited contemporary French artist Philippe Parreno and American production designer James Chinlund to design the event’s spectacular set. The collection put femininity in the spotlight, viewing it through the prism of hyperbole, glorifying its complexity, exaggerating it and giving it all the limelight. The show’s looks juxtaposed the infinitely large and the infinitely small, inviting a different perspective. Through this interplay of proportion, the Maison’s hallmarks were supersized and became an integral part of the collection’s narrative, with the famous luggage tag and iconic key holder enlarged into real handbags. This exponential vision showcased Louis Vuitton’s historic roots in fine leather goods and its development into a full-fledged fashion house, with the same exacting approach used in leathercraft applied to clothing. 78 • 79 LVMH 2022 . Fashion & Leather Goods 30 Montaigne forever DIOR — In March 2022, after more than two years of renovations, the House of Dior’s legendary hôtel particulier at 30 avenue Montaigne reopened its doors. For seventy-six years, the building – whose charm Christian Dior fell for in 1946 – has witnessed the birth of the Maison’s collections, and become the emblem of Parisian elegance and French haute couture. The historic birthplace of Dior’s revolutionary New Look has been transformed into a location like no other: the incarnation of endless possibilities. In a feat accomplished by architect Peter Marino, this iconic address celebrates excellence, exquisite expertise and a passion for the art of living, fine dining and culture. Indeed, this flagship is not just an exceptional boutique: it also comprises an haute couture salons, an exhibition space, three lush gardens, a pastry shop and a restaurant serving Monsieur Dior’s favorite dishes. 80 • 81 LVMH 2022 . Fashion & Leather Goods Taking the stage at legendary venue The Wiltern CELINE — Celine ended 2022 with a runway show at Los Angeles’ legendary Wiltern Theater, where Hedi Slimane unveiled his Women’s Fall/Winter 2023 collection entitled “The Age of Indieness”, followed by concerts featuring Iggy Pop, The Strokes and Interpol. The collection continued Slimane’s tribute to the 2000s – a theme launched a few months earlier with the video of the Spring/Summer 2023 show – looking back at this pivotal period of his career, when he revolutionized the male silhouette and became the most iconic photographer and fashion designer of the indie rock scene in London, New York and Paris. LVMH 2022 . Fashion & Leather Goods Art, audacity and craftsmanship LOUIS VUITTON — Reviving the artistic exchange sparked by their first collaboration, Louis Vuitton and world-renowned Japanese artist Yayoi Kusama have joined forces again, with their new collection of bold looks celebrated in a colorful advertising campaign starring international supermodels. The collection revisits the Maison’s iconic pieces with Kusama’s signature motifs, such as her famous painted dots, which infuse the Louis Vuitton universe in a fascinating creative dialogue with the timeless Monogram print. An innovative screen printing technique was used to reproduce the artist’s brushstrokes, and the resulting 3D hand-painted effect is strikingly realistic. Loewe x Howl’s Moving Castle LOEWE — Loewe has joined forces once again with Japanese animation house Studio Ghibli. After Spirited Away and My Neighbor Totoro, the Maison’s Creative Director Jonathan Anderson has reaffirmed his fascination for the world of Hayao Miyazaki with a collection featuring bold, complex pieces inspired by Howl’s Moving Castle. The film’s main characters – including Sophie, Howl and Calcifer – enliven clothing and accessories. They are drawn as leather or shearling intarsia, turned into embroidery on leather or textile, and decorated with crystal and stud inlays on leather. They appear on bags – including the Puzzle, Flamenco, Hammock, Amazona, Luna, and Bracelet Pouch – on small leather goods, on jumpers, jackets, and shirts, with details such as appliqué, raffia or feathers making them stand out as if they were alive. 86 • 87 LVMH 2022 . Fashion & Leather Goods Vicuña: The fiber of the gods LORO PIANA — The rarest and finest fiber in the world comes from the fleece of the vicuña, a small wild animal that lives in the Andes. Seen as a sacred creature by the Incas, the vicuña was once at risk of disappearing forever. Centuries of poaching decimated its population from 3 million in pre-Columbian times to just 5,000 in 1960. This cousin of the alpaca, with its incredibly soft, golden fleece, was saved from extinction mainly thanks to conservation efforts made by Loro Piana in the 1990s. Leading an international consortium, the Maison built up a partnership with communities in the Andes and still today benefits from this special relationship in purchasing the fiber of vicuñas raised and shorn under conditions that respect animal well-being and ancestral traditions. In 2008, Loro Piana also created the Franco Loro Piana reserve, Peru’s first private nature reserve, spanning 2,500 hectares, and Peru’s vicuña population has now grown to over 500,000. 88 • 89 LVMH 2022 . Fashion & Leather Goods The Baguette bag celebrates its 25th anniversary FENDI — Fendi feted its Baguette bag’s 25th anniversary with a special runway show at New York Fashion Week on September 9, 2022. The collection marks more than an anniversary – it is a tribute to the emblematic accessory and to New York, the city where the Baguette secured its place in pop culture history. For the occasion, Kim Jones, Fendi’s Artistic Director of Couture and Womenswear, and Silvia Venturini Fendi, Artistic Director of Accessories and Menswear, joined forces with Marc Jacobs, Tiffany & Co., Sarah Jessica Parker, and Porter to celebrate the iconic bag together. The new wardrobe offers myriad reinterpretations of the Baguette. In a play of different shapes and materials, each iteration of the Baguette is either functional or ornamental. It is featured on parkas, gaiters, gloves, hats, skirts, and sweaters, and there are also several brand-new versions of the bag itself. 90 • 91 LVMH 2022 . Fashion & Leather Goods Parfums Christian Dior: La Collection Privée LVMH PERFUMES & COSMETICS 2022 Focusing on quality and cultivating uniqueness LVMH is a key player in the perfume, makeup and skincare sector, with a portfolio of world-famous Maisons as well as younger brands with a promis- ing future. The creative momentum of LVMH’s Maisons is driven by growth in its iconic lines as well as bold new products. They are all driven by the same values: the pursuit of excellence, creativity, innovation and appeal and a highly selective distri- bution policy. Unique creative momentum With strong growth in fragrances and the recovery in makeup, the global perfumes and cosmetics market is highly competitive, with increasingly compact innovation cycles. In this context, all of LVMH’s Maisons continue to pursue their objective of gaining market share, which depends more than ever before on quality, product performance and a robust innovation policy. In the heart of France’s Cosmetic Valley business cluster, researchers at LVMH’s Hélios R&D facility play a crucial role in helping the Maisons meet these requirements. The Maisons also uphold their commitment to biodiver- sity and sustainable design. Excellence and innovation in retailing All the brands are accelerating the implementation of their online sales platforms and stepping up their digital content initiatives. Excellence in retailing is key. It requires expertise and attentiveness from beauty consultants, as well as innovation in sales, both in stores and online. Our brands are actively incorporating digital tools to enhance the customer experience and attract new consumers. The Group’s refusal to engage in excessive special offers and parallel sales helps ensure the powerful appeal of LVMH’s Maisons. 2023 OUTLOOK While remaining vigilant, as called for by the uncertainty of the current environment, the Perfumes & Cosmetics Maisons will continue to invest selectively in their strengths: brand appeal, accelerated innovation and digital initiatives, and a selective approach to retail networks. Christian Dior, building on the brand’s excellent momen- tum, has set ambitious leadership targets that will draw on innovation to enrich its iconic lines, Sauvage, Miss Dior, Rouge Dior, J’adore, La Collection Privée, Capture and Prestige, in particular. Reflecting its desire to connect more directly with its customers, the Maison will con- tinue expanding its network of directly operated stores, while increasing the share of digital in its sales and marketing. Lastly, Dior will maintain its commitment to corporate social responsibility through its holistic “Beauty as a Legacy” program. Guerlain will see a flurry of exciting develop- ments, with the reinvention of its star product, the Micro-Lift Concentrate version of Orchidée Impériale, and large-scale initiatives including a collaboration with the prestigious Maison Matisse, founded by the family of the renowned French painter, for the L’Art et la Matière collection, as well as the launch of a natural, no-transfer matte foundation in the iconic Terracotta range. Parfums Givenchy will launch a major initiative in men’s fragrances and move its skincare lines further upmarket. While implementing a plan focused on major innovations and boosting its flagship products, Maison Francis Kurkdjian will roll out the new store concept it revealed in 2022. Acqua di Parma will unveil an exceptional collab- oration with designer Samuel Ross. Guerlain 2022 at a glance STRONG MOMENTUM IN PERFUME AND CONTINUED SELECTIVE DISTRIBUTION 2022 revenue by region 12% Other markets 35% Asia (excl. Japan) 9% France 20% Europe (excl. France) 19% United States 5% Japan Revenue (EUR millions) 7,722 6,608 5,248 Profit from recurring operations (EUR millions) Operating investments (EUR millions) 684 660 409 280 290 80 2020 2021 2022 2020 2021 2022 2020 2021 2022 Major strategic priorities — Maintain our creativity in terms of innovation and appeal — Focus on developing Parfums Christian Dior in harmony with Couture — Pursue the global expansion of our other brands — Strengthen our commitment to biodiversity and sustainable design 94 • 95 Guerlain LVMH 2022 . Perfumes & Cosmetics 1 1. 2. 3. Parfums Christian Dior 2 3 2022 Highlights Retaining its focus on its highly selective distribu- tion strategy, the Perfumes & Cosmetics business presence. Fragrances were buoyed by the success of the Maison’s core collections: Sauvage, which group was boosted by the ongoing success saw very strong growth, confirmed its position as of iconic fragrances and the rebound in makeup. the world’s best-selling fragrance across all catego- Skincare, which had seen rapid growth in China, ries; J’adore benefited from the successful global was hit by the public health situation in the country. launch of Parfum d’Eau; Miss Dior continued its Innovation played a key role in the progress made ongoing success and Dior Homme was boosted by by LVMH’s Maisons. the relaunch of Dior Homme Sport. The Collection Privée range of exceptional fragrances accentuated Christian Dior achieved remarkable growth world- wide. The Maison reinforced its leading positions in Europe and Japan, and confirmed its strong its growth and was enriched with the first scents crafted by Francis Kurkdjian, the Maison’s new Creative Director of Fragrances, who revisited momentum in its other key markets, in particular two historic signatures. Skincare was buoyed by the United States, South Korea, Southeast Asia and the vitality of the premium category, in particular the Middle East. All the iconic lines drove this strong the Prestige range, boosted by the new version of performance, backed by a strong social media La Crème, presented in sustainably designed 96 • 97 LVMH 2022 . Perfumes & Cosmetics 1 2 packaging, as well as rapid growth in the L’Or de Vie source of environmental regeneration, and ambi- Double R Renew & Repair Advanced Serum. Guerlain’s range and the launch of La Mousse OFF/ON tiously committed to cutting its greenhouse gas fifteen years of commitment to sustainability through foaming cleanser as part of a new range of water emissions by 46% by 2030. lily infused makeup removers. Growth in makeup was fueled by the success of new lipsticks (refillable Dior Addict and transfer proof Rouge Dior Forever) Guerlain continued its growth, buoyed by a strong performance in fragrances. The L’Art et la Matière and the solid performance of the new version of its collection, which embodies the Maison’s excellence Forever liquid foundation. The Maison ramped up in high perfumery, was enriched with new fragrances, the development of its spa business. Online sales while the Aqua Allegoria collection maintained its its “In the Name of Beauty” program were recog- nized with a number of prestigious awards. This commitment is now incarnated by Angelina Jolie to give it even greater resonance worldwide. Parfums Givenchy saw good momentum among its iconic fragrances: L’Interdit confirmed its suc- grew rapidly through directly operated sites. The strong momentum and equally powerful commit- cess, while Irrésistible made further headway, Maison adopted an omnichannel marketing approach ments, with the launch of the Aqua Allegoria Forte driven by its Eau de Toilette Fraîche version, and spanning all traditional and digital channels to place range of more intense eau de parfum scents and a Gentleman broke ground with Réserve Privée, a itself among the most visible and appealing beauty lush new video in the marketing campaign directed bold collaboration with Glenmorangie whisky, brands. In connection with its “Beauty as a Legacy” CSR mission, it stepped up its efforts to promote by Yann Arthus-Bertrand. Skincare also turned in a strong performance, with the Abeille Royale range biodiversity through the cultivation of flowers as a invigorated by the relaunch of its star product, bringing together and celebrating two emblems of expert craftsmanship. Makeup saw the relaunch of Le Rouge Interdit lipstick. Benefit pursued growth 3 4 OUR MAISONS TAKE ACTION assembled by the UNESCO team in Phnom Penh, in collaboration Guerlain rolls out its Women with the Maddox Jolie-Pitt (MJP) for Bees program alongside Foundation in Battambang. UNESCO and the Maddox Jolie-Pitt Angelina Jolie, muse and godmother Foundation of the 2021 and 2022 editions, was there to officially launch the second — Building on the first Women training course, along with other for Bees training program hosted personalities, including beekeeper by the OFA (French bee research Aggelina Kanellopoulou, a graduate observatory) in the south of France of the first training course in 2021. in 2021, Guerlain launched a second The training program will equip joint training initiative alongside the 11 apprentice beekeepers UNESCO-MAB (Man and the with the theoretical and practical Biosphere) in February 2022. The beekeeping knowledge and skills cohort of 11 budding beekeepers they need to set up and run from rural communities was a sustainable beekeeping operation. 98 • 99 1. Parfums Christian Dior 2. Guerlain 3. Parfums Givenchy 4. Fresh LVMH 2022 . Perfumes & Cosmetics 1. Fenty Beauty 2. Acqua di Parma 3. Kenzo Parfums 4. Maison Francis Kurkdjian through high-impact initiatives. The brow category, cess of its Baccarat Rouge 540 fragrance and the OUR MAISONS TAKE ACTION in which the brand is the world leader, was boosted launch of its new 724 scent. The Maison partnered by the launch of the Gimme Brow+ Volumizing Pencil and the rollout of the innovative Brow Lamination service at its Brow Bars. Another suc- cess was the launch of Wanderful World, a compre- with the Palace of Versailles as part of a patronage project and opened its first store in China. Acqua di Parma continued to grow at a brisk pace, driven by the momentum of its Signatures of the Sun line, Make Up For Ever celebrates Pride Month — To mark Pride Month, Make Up hensive collection of powder blushes. Its The with the launch of Magnolia Infinita and the Zafferano For Ever maintained its commitment Porefessional range was expanded with an ultra- lightweight version. Fresh reaffirmed its expertise in the use of natural ingredients with the launch of Tea Elixir, a new serum that boosts skin’s resilience to stressors. Make Up For Ever saw business driven by an innovation program developed with its col- lective of makeup artists. Its HD Skin undetectable foundation was a major success. The Maison pre- sented its first exhibition of body and face art, showcasing the work of its Academy’s most talented students. Growth at Kenzo Parfums was driven by the new L’Absolue version of its Flower by Kenzo flagship line and its marketing campaign. Maison Francis Kurkdjian achieved remarkable growth in the United States and Europe, fueled by the suc- exclusive limited edition for Harrods. Its new to the LGBTQI+ community with Colonia C.L.U.B. fragrance was an instant bestseller. For Perfumes Loewe, international expansion through a new point-of-sale concept was the main “Proud For Ever”, a series of inspiring profiles where passion for makeup goes hand in hand with self- growth driver. The Maison’s first store was opened affirmation. Ever since it was founded in China and its e-commerce site is now available in 40 countries. Fenty Beauty doubled its revenue in 2022 through its expanded distribution and suc- cessful launches. Fenty Skin saw strong growth in the body care category. Officine Universelle Buly continued its expansion, in particular in Japan, with in 1984, Make Up For Ever has been committed to diversity and inclusion, with the Maison constantly working to help people find inspiration and the freedom to express themselves. In 2022, Make Up For Ever celebrated five new points of sale. In Paris, the Maison’s unique members of the LGBTQI+ officines, or dispensaries, benefited from growing brand awareness. A new version of the website community, highlighting their struggles, hopes and desires was launched. for the future. In a series of detailed and intimate portraits, celebrated makeup artist and friend of the Maison James Kaliardos talked to unique, larger-than-life personalities Santiago, Nyja and Carlos to find out more about their individual journeys to love and self-acceptance. 1 3 100 • 101 2 4 LVMH 2022 . Perfumes & Cosmetics 2022 STORIES A new approach to fragrance PARFUMS CHRISTIAN DIOR — In 2022, Dior unveiled J’adore Parfum d’Eau, a new fragrance made with an innovative, highly concentrated, water-based formula. A feat of perfumery, it has a floral bouquet that is fresh, immediate and distinctly natural. The new fragrance, a concentrate of water and flowers, reinvents the promise of pleasure encapsulated by J’adore since 1999. The pleasure of a revisited bouquet – neroli from Vallauris injects full freshness, while sunny notes of jasmine sambac blend with velvety notes of Chinese magnolia. The pleasure of a patented, alcohol-free, exclusive Dior formula that is as intense and long-lasting as an eau de parfum. 102 • 103 LVMH 2022 . Perfumes & Cosmetics Joyous tributes to the wonders of the natural world GUERLAIN — The Aqua Allegoria fragrance collection celebrates the wonders of the world. Each creation unbottles beautiful raw materials and unique notes – bright florals, vibrant citruses, and sunny fruits – masterfully enhanced by Guerlain’s perfumer-explorers. The new collection takes the Maison’s environmental commitment to another level, uniting luxury and sustainability in the name of nature and for the love of bees. Aqua Allegoria has been reinvented as an allegory of the Maison’s values of beauty and sustainable innovation. The collection continues to trailblaze with two revolutionary new features: a new formula made with organic alcohol and up to 95% natural ingredients, and a new eco-designed bottle that is unscrewable, refillable and recyclable, and made in France from recycled glass. To mark the launch, French environmentalist, photographer and filmmaker Yann Arthus-Bertrand created a video clip that reflects the values he shares with Guerlain. Leaving beauty as a legacy PARFUMS CHRISTIAN DIOR — At the very core of Parfums Christian Dior’s identity is Monsieur Dior’s boundless love of flowers. Flowers are the source of every fragrance, skincare and makeup product the Maison creates, and it endeavors to harness their power to regenerate biodiversity and take action to preserve and promote their vital role in ecosystems. Echoing this calling, Parfums Christian Dior presented its Beauty as a Legacy 2030 strategy: an action plan to improve the impact of its activities on biodiversity and local communities by 2030. The strategy is based on five key priorities: harnessing the potential of flowers to regenerate ecosystems and preserve biodiversity; responding to the climate emergency; defining the concept of “responsible beauty”; ramping up the Maison’s innovations in sustainable design; and promoting a more inclusive society. The Maison’s initiatives include aiming to have 100% of its gardens and partner gardens operated using organic or regenerative farming practices by 2030. The Perfumer’s Garden enchants Versailles MAISON FRANCIS KURKDJIAN — Maison Francis Kurkdjian has become a patron of the Palace of Versailles and is funding the creation of a Perfumer’s Garden. The garden, located in the Châteauneuf Orangery on the Trianon estate, features hundreds of types of flowers and opens its doors to the public in spring 2023. It is the fruit of an exceptional partnership between the Trianon gardeners and Francis Kurkdjian – a bucolic promenade showcasing hundreds of historic plants, including some with surprising scents, like chocolate and apple, and even “mute” flowers like hyacinths, peonies and violets. Visitors can also learn all about the history of fragrance at the court of Versailles. The Palace of Versailles holds special significance for Francis Kurkdjian: just a few years after graduating from Versailles’ perfumery school, he recreated Marie-Antoinette’s fragrance, Sillage de la Reine, using historic archive documents and designed a range of scented features for the pools and fountains of the gardens of Versailles. 106 • 107 LVMH 2022 . Perfumes & Cosmetics 15th chapter of the adventure OFFICINE UNIVERSELLE BULY — In downtown Tokyo’s Marunouchi district, Officine Universelle Buly’s new shop has a retro-futuristic interior that reflects the brand identity crafted by Ramdane Touhami, the Maison’s founder and creative director. Contrasts are the rule: the ceiling’s brushed stainless-steel panels are slyly juxtaposed with the walls’ ornate regency wood paneling, featuring shells and friezes sculpted by the Maison’s French master cabinetmaker. The sleek diagonal lines of the tilted display cabinets and long bench leading into the store inject an angular modernity that diverges from the Travertine tile floor and its specially designed round cabochons. Symbolically, the dispensary’s imperial green walls are imbued with a patina that brings us back in time while inviting us to seize the moment – an apt way to celebrate the opening of the Maison’s 15th store in Japan. 108 • 109 LVMH 2022 . Perfumes & Cosmetics Tiffany & Co. LVMH WATCHES & JEWELRY 2022 Creativity and in-depth expertise The LVMH Watches & Jewelry business group is one of the most dynamic players in its sector. It continues to gain market share with a successful strategy that is driven by jewelry Maisons that carry on exceptional creative legacies and expertise, and by leading watchmaking Maisons that are always on the cutting edge of innovation. 2021 saw the arrival of the prestigious American jewelry house Tiffany & Co., which has substantially bolstered the business group’s standing in a very dynamic, highly promis- ing market segment. Creativity, brand awareness and in-depth expertise The growth of these Maisons is driven by their cre- ativity. They enrich leading product ranges with well-established designs and identities, such as Tiffany’s Blue Book high jewelry collection, Bulgari’s iconic Serpenti range and TAG Heuer and Hublot’s famous Carrera and Big Bang lines. They continually explore new horizons with innovations combining audacity with excellence, as illustrated by TAG Heuer’s next-generation smartwatch. Harnessing expertise is a key priority, which the Maisons address by opti- mizing their manufacturing processes, implementing synergies and boosting their production capacity. Developing brand awareness with target audiences and increasing their social media presence are also crucial to gaining new market share. Quality and productivity in retailing Lastly, the business group is focusing on the qual- ity 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 continue to refurbish and open their own directly operated stores in buoyant markets in key cities. 2023 OUTLOOK In 2023, the Watches & Jewelry business group will aim to continue gaining market share and boosting its production chains. Given the challenges that may arise in the months ahead, the Maisons will continue to manage costs and remain selective in their investments. They will continue to prioritize innovation, targeted expansion of their networks of directly operated stores and e-commerce, and their capacity to seize opportunities unlocked by their rapidly expanding digital presence. Their strategies will continue to focus on sustainability and respon- sibility, particularly in terms of traceability for gems and precious metals. Tiffany will add new designs to its unisex Lock collection, which it will roll out to all its markets. The Maison will also ramp up the redesign of its retail network. One of the highlights of this program will be the reopening of its land- mark New York flagship store following a four-year transformation, which will offer an unparalleled customer experience and a new vision of Tiffany. Bulgari will bolster its positions in high-end lines, celebrate the 75th anniversary of its iconic Serpenti collection and open two new hotels, including one in Rome. The Maison will start construction on its new jewelry manufacturing facility in Valenza, which, once completed, will double its production capacity at this site, where it has operated since 2017, creating 750 new jobs for jewelry artisans trained at its own academy. The site also aims to become the world’s first jewelry manufacturing facility powered entirely by renewable energy, 40% of which will be generated internally. Chaumet will continue expand- ing and renovating its store network, and will launch a number of corporate giving initiatives, in particular its new Echo Culture Award, which will recognize women-led projects that promote access to culture for as many people as possible. TAG Heuer will cel- ebrate the 60th anniversary of its Carrera collection and continue its slate of events relating to its smart- watches and its partnership with Porsche. In 2023, Hublot will begin construction on its new manu- facturing facility, built to the highest environmen- tal standards, which will help accommodate the Maison’s growth. Bulgari 2022 at a glance RAPID GROWTH IN JEWELRY AND WATCHES 2022 revenue by region 13% Other markets 32% Asia (excl. Japan) 11% Japan 3% France 15% Europe (excl. France) 26% United States Revenue (EUR millions) Profit from recurring operations (EUR millions) Operating investments (EUR millions) 10,581 2,017 654 8,964 1,679 3,356 302 458 210 2020 2021 2022 2020 2021 2022 2020 2021 2022 Major strategic priorities — Reinforce our Maisons’ desirability thanks to expert craftsmanship and distribution — Maintain Tiffany & Co.’s powerful momentum, with the reopening of the legendary store on New York’s Fifth Avenue — Spur continued growth at Bulgari and TAG Heuer with innovative products — Optimally develop manufacturing facilities 112 • 113 Bulgari LVMH 2022 . Watches & Jewelry 1 1. 2. 3. Tiffany & Co. 2 3 2022 Highlights The Watches & Jewelry business group showed fueled by a flurry of events and the launch of a strong momentum in 2022, driven by the powerful marketing campaign featuring the Maison’s brand appeal of the jewelry Maisons and the creativity of ambassador Gal Gadot. This success has posi- their iconic collections, as well as the expertise and tioned Tiffany as a major player in the world of high capacity to innovate of the watchmaking Maisons. jewelry. The events celebrating Tiffany’s 185th anni- Emphasis continued to be placed on the selective versary and its creative heritage joining tradition development of their retail networks, marketing, and modernity culminated in the Vision & Virtuosity and brand activation through events and digital exhibition at the Saatchi Gallery in London, which engagement. In a year featuring many initiatives, Tiffany turned in an excellent performance and continued to grow completely sold out. The Maison also marked the occasion by illuminating the facades of the legend- ary Harrods department store in Tiffany Blue®. The Maison unveiled several bold innovations and col- its appeal. Its Lock jewelry collection, launched in laborations, including the creation of NFTiff x North America in August, was very well received. A CryptoPunks pendants and the limited-edition number of celebrities – including singer-songwriter Beyoncé, K-pop star Rosé, and model and entre- Daniel Arsham x Lock, an end-of-year campaign recalling a historic partnership with Andy Warhol. preneur Hailey Bieber – appeared in campaigns With openings of more than a dozen new or reno- wearing the iconic T and HardWear collections, vated stores featuring its latest retail concept in the building a strong following among Tiffany’s cus- fourth quarter, Tiffany demonstrated its commitment tomers. Revenue from high jewelry sales doubled, to ramping up the redesign of its store network. 114 • 115 LVMH 2022 . Watches & Jewelry 1 2 Bulgari maintained its solid momentum, particularly in the United States, Europe, the Middle East, and December 2021 and became one of the French capital’s most acclaimed hotels in the space of just Southeast Asia. Growth was driven by the iconic a few months. Serpenti collection, high jewelry and high-end watches, in particular the new Eden: The Garden of Wonders collection, launched in Paris in June and TAG Heuer had a year brimming with innovation, as evidenced in particular by the creation of its first subsequently presented in Shanghai, Tokyo, San solar-powered timepiece in the Aquaracer collec- Diego, New York, Bangkok and Dubai, achieving tion and the Carrera Plasma, an avant-garde fusion record revenue. The Maison’s move further upmarket of watchmaking and lab-grown diamonds. Another was reflected in a marketing campaign directed by highlight was the release of its latest generation of Paolo Sorrentino, starring brand ambassadors smartwatches. The Monaco x Gulf won the Iconic Anne Hathaway, Zendaya, Blackpink’s Lisa, and Watch Prize at the Geneva Watchmaking Grand Priyanka Chopra. Its many other initiatives included Prix. The Maison expanded its family of ambassadors the release of the documentary Inside the Dream, and launched a highly eventful series of initiatives which traces the path of a raw emerald all the way built around its partnership with Porsche and the to the red carpet at the Venice Film Festival. Bulgari film The Gray Man, which stars the Maison’s brand broke new ground in the digital realm with the first ambassador Ryan Gosling. NFT contemporary artworks inspired by the Octo Finissimo Ultra, which set a new record for the world’s thinnest mechanical watch, and Metamorphosis, an Hublot had an excellent year, driven by the latest additions to the Big Bang collection, the launch of extraordinary diamond and ruby necklace that can the Square Bang collection at the Watches & be worn nine different ways, each one a master- Wonders trade show, and the solid performance piece. The Bulgari Hotel Paris opened its doors in achieved by its store network, which continued to 3 4 OUR MAISONS TAKE ACTION making jewelry. Apprentices will be exposed to world-class expertise Institut des Métiers d’Excellence in craftsmanship, design and retail – program launches in the US all métiers d’excellence, or professions with Tiffany & Co. of excellence, for which LVMH is known around the world. — Tiffany & Co. worked with The apprenticeship process began the US Department of Labor to in the summer with a focus on hiring launch LVMH’s first-ever certified young people from diverse apprenticeship program in the and historically under-represented United States. Unique in its sector, communities so as to create career the program will train the first cohort opportunities and build an inclusive of a new generation of artisans talent pipeline. specializing in designing and 1. 2. Bulgari 3. TAG Heuer 4. Hublot 116 • 117 LVMH 2022 . Watches & Jewelry 1. 2. Chaumet 3. Fred 4. Zenith grow around the world. The Maison demonstrated which attracted a record number of visitors. OUR MAISONS TAKE ACTION its capacity for innovation, releasing a large number With a concept extending beyond jewelry and of exceptional pieces and creating NFTs in collabo- the history of the Maison, this event, featuring ration with artist Takashi Murakami. Raising its strong 400 works loaned by over 90 museums and other profile even further as the Official Timekeeper of institutions, celebrated nature by exploring Responsible purchasing: A key priority for our Maisons the 2022 Soccer World Cup, Hublot launched its 5,000 years of art and design across a range of — All of the Watches & Jewelry third generation smartwatch Big Bang e FIFA disciplines, illustrating Chaumet’s support for Maisons have received certification World Cup Qatar 2022™, the most powerful yet in culture and its desire to share its vision of a highly under the Responsible Jewellery its Big Bang e watch collection, and unveiled its relevant contemporary issue with a wide audience. Council’s Code of Practices “Hublot Loves Football” campaign, designed in Another prominent exhibition, Tiara Dream, was standard, known as RJC CoP. As collaboration with Franco-Lebanese artist Mira Mikati held in Riyadh. The new Ondes et Merveilles part of the LIFE 2020 and LIFE 360 and featuring 15 of the Maison’s brand ambassadors, (Waves and Wonders) high jewelry collection targets, and in line with this including Kylian Mbappé. pays tribute to the sea, a perennial source of certification, which applies to their Zenith had a year marked by several headline events, including the launch of the Defy Skyline at inspiration for the Maison. The Maison’s iconic gold and diamond supply chains, collections showed good momentum, in particu- they expanded their responsible lar the increasingly successful Bee My Love. sourcing efforts. Bulgari is LVMH Watch Week and the “Master of Chronographs” Chaumet continued the targeted expansion of particularly active in this area, and campaign, which showcased the Maison’s heritage its retail network. and major innovations in the field of mechanical chronographs. Zenith’s strategic ambition of con- necting directly with its customers was reflected in Fred, buoyed by its “Live the Joy” marketing cam- paign, saw very strong growth. Its main collections has become the first company in its market to obtain the Chain of Custody (CoC) certification for its jewelry business. The Group and its the opening of 11 new directly operated stores and achieved record revenue. The Maison’s first retro- Maisons are also involved in the its expansion into 17 new e-commerce markets. spective exhibition, Fred: Jewelry Designer Since Coloured Gemstones Working The Maison unveiled its “Zenith Horizon” CSR 1936, presented at the Palais de Tokyo in Paris, and Group (CGWG) run by The program and reaffirmed its support for the fight against breast cancer by donating unique time- the launch of its new high jewelry collection Dragonfly Initiative. The CGWG Monsieur Fred Inner Light were the headline events aims to roll out environmental and pieces to raise funds for this cause. of 2022. As a Special Olympics partner, Fred lent its social best practice across the Chaumet had an excellent year and raised its pro- file with several key events, including the Botanical exhibition at the Palais des Beaux-Arts in Paris, support for the 10th edition of the organization’s colored gemstone sector by making National Summer Games in June, dedicated to the all tools developed by the initiative empowerment of people with intellectual disabilities through sports. available to the industry on an open-source basis and allowing industry players to assess the maturity of their practices. 1 3 118 • 119 2 4 LVMH 2022 . Watches & Jewelry 2022 STORIES Lock: The bonds that bring us together TIFFANY & CO. — No rules. All welcome. The iconic new Tiffany Lock collection is a symbol of connection and togetherness. Its bracelets, rings, earrings and pendants in rose gold come in multiple colorways and introduce an innovative swiveling mechanism that echoes the functionality of a padlock – a hallmark motif from the Tiffany & Co. archives. The unique clasp on each Lock bracelet is a feat of Tiffany & Co. craftsmanship and was one year in the making. Supporting the worldwide launch, the Tiffany Lock campaign features superstar Rosé of the K-pop girl group Blackpink. The Maison’s ambassador wears sparkling diamond Lock bangles, which highlight the powerful style statement made by each design. Rosé embodies the modern “Tiffany woman” and brings an energy that matches the Tiffany Lock ethos. Rosé, and the male talent featured in the campaign, capture the inclusive spirit of Tiffany & Co.’s first all-gender jewelry collection. 120 • 121 LVMH 2022 . Watches & Jewelry The revolutionary Carrera Plasma TAG HEUER — TAG Heuer unveiled the new TAG Heuer Carrera Plasma, marking its entry into the world of lab-grown diamonds and the beginning of a new era for the luxury watchmaker, focused on avant-garde design, versatility and the aesthetic codes that make a watch absolutely unique. By adding the cutting-edge characteristics of lab-grown diamonds to its product universe, TAG Heuer opens up a whole new world of unbounded creativity and endless possibilities for diamond design. Equipped with the Heuer 02 Tourbillon Nanograph movement, the TAG Heuer Carrera Plasma’s case is set with Diamant d’Avant-Garde lab-grown diamonds, as well as embellished indexes. The shimmering polycrystalline diamond dial is just one of the exceptional features of this unique timepiece. The Garden of Wonders BULGARI— Bulgari’s latest high jewelry collection, Bulgari Eden: The Garden of Wonders, invites you to enter a wondrous world, featuring over 140 high jewelry pieces and exceptionally creative watch designs. One of its masterpieces, the Emerald Glory necklace, is adorned with the most exquisite natural treasures: a set of eleven magnificent pear-shaped emeralds from Colombia, patiently assembled by Bulgari’s gem hunters and weighing in at 42.02 carats. The collection’s Tribute to Paris necklace celebrates the City of Light with a spectacular 35.53-carat emerald set off by a distinctive Eiffel Tower motif. Celebrating the idea of metamorphosis, the Serpenti Ocean Treasure platinum and diamond necklace: two snakes fuse into one, featuring a twisting movement that holds an exceptional 61.30-carat drop-shaped Sri Lankan sapphire. 124 • 125 LVMH 2022 . Watches & Jewelry Force 10: Jewelry for every day and every whim FRED — “One day, my eldest son had the fun idea of braiding sailing cables, fixed with rivets at either end, to make a bracelet for his wife. Then, for her birthday, he reimagined the same design but added a gold carabiner- shaped clasp. To enhance its value, he added links all along the bracelet. That’s how the first piece in the Force 10 collection came into being in 1966.” The Force 10 bracelet epitomizes Fred Samuel’s and his family’s passion for the sea and sailing, and is now one of the Maison’s most iconic pieces. More than a jewel, it has become a symbol of courage, perseverance and self-confidence. By daring to engineer this unexpected combination of a braided steel sailing cable and a gold buckle – two materials that until then were considered polar opposites – Fred made its mark on the history of jewelry. This strikingly avant-garde bracelet has since inspired a collection that is both casual and precious. 126 • 127 LVMH 2022 . Watches & Jewelry Botanical: Art that celebrates nature CHAUMET — During the summer of 2022, Chaumet’s Botanical – Observing Beauty exhibition connected its own exceptional jewelry creations and botanical perspective with all forms of art. It immersed visitors in the story of how plants have inspired art for over 7,000 years, celebrating nature in art with close to 400 works – graphic art, paintings, sculptures, textiles and furniture, as well as some one hundred jewelry pieces by Chaumet and other designers. Works by scientists, botanists and artists revealed the extraordinary beauty of plants – a central theme of Chaumet’s designs throughout its history. Against the exceptional backdrop of the Palais des Beaux-Arts de Paris, the exhibition showcased the Maison’s fine craftsmanship in jewelry design and contextualized it within art history as a whole. 128 • 129 LVMH 2022 . Watches & Jewelry Sephora: Place Vendôme Mall, Qatar LVMH SELECTIVE RETAILING 2022 Reinventing the customer experience 2023 OUTLOOK Offering customers the best shopping experience possible across all distribution channels remains the goal shared by all the Maisons. In an uncertain and volatile global environment, Sephora is opti- mistic but cautious for 2023, and will clearly focus on differentiating further and continuing to build “the world’s most loved beauty community”. Sephora will continue to develop its omnichannel capabilities and will open over 100 new points of sale to win in its key markets of the United States, Canada, the Middle East, France and China. Sephora will continue to drive preference through product differentiation, with its carefully selected assortment of brands and products tailored to each unique customer profile, all while pursuing the Diversity & Inclusion initiatives that bring Sephora’s purpose to life. DFS should benefit from the upturn in business and the return of travelers to Hong Kong and Macao. Operations will begin at China’s Chongqing Jiangbei International Airport in the first quarter, and its new T Galleria store is set to open in Brisbane, Australia towards the end of the year. The Maison will also continue to focus on opportunities to grow and diversify its cus- tomer base. Le Bon Marché will continue to enhance the quality of its exclusive selection and its customer experience, while capitalizing on its innovative approach and unique cultural dimen- sion. The highlight of the beginning of the year will be the Sangam exhibition by artist Subodh Gupta. In light of the success of the immersive theater experience that debuted in 2022, further perfor- mances will be held in March and April 2023. With locations all around the world, our Selective Retailing Maisons make sure that customers are the number-one priority for their strategies and their staff. Sephora, DFS and Le Bon Marché are all pio- neers in their fields and continue to innovate and imagine the shopping experience of the future for their customers. An increasingly innovative and personalized experience For over half a century, Sephora has been revolu- tionizing the beauty industry, elevating the shopping experience into a moment of pure pleasure and freedom, developing new in-store services and hunting out rare finds to add to its unique range of brands and products. Combining the best of in-store and online shopping, Sephora’s omnichan- nel beauty experience offers an interactive, person- alized, seamless customer journey. Le Bon Marché is a department store like no other: striking archi- tecture enhanced by tasteful updates; an exclusive, elegant 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. Our 24S digital platform, which was launched in 2017, also reflects this quest for excellence and aims to offer a whole new online shopping experience. Staying particularly agile DFS – which has been pioneering travel retail since the early days of the air travel boom – constantly updates its boutiques and its T Galleria luxury department stores to continually enhance the trav- eler’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, followed by Paris in 2021. DFS will continue its expansion in Asia, prioritizing recovery in flagship destinations Hong Kong and Macao. La Samaritaine Paris Pont-Neuf 2022 at a glance EXCELLENT PERFORMANCE BY SEPHORA; DFS IMPACTED BY THE HEALTH SITUATION IN CHINA 2022 revenue by region 18% Other markets 16% Asia (excl. Japan) 1% Japan 12% France 9% Europe (excl. France) 44% United States Revenue (EUR millions) Profit from recurring operations (EUR millions) Operating investments (EUR millions) 14,852 788 523 11,754 10,155 534 410 370 2020 2021 2022 2020 2021 2022 2020 2021 2022 (203) Major strategic priorities — Maintain Sephora’s innovative momentum in stores and online — Continue to cultivate a creative, exclusive offering at Le Bon Marché and La Grande Épicerie de Paris — Continue the expansion of DFS and develop digital initiatives to build customer loyalty during their travel experiences 132 • 133 La Samaritaine Paris Pont-Neuf LVMH 2022 . Selective Retailing 1 1. 2. 3. Sephora 2 3 2022 Highlights The Selective Retailing business group saw solid also extremely strong. This growth was supported growth despite the impact of the public health by continued rapid innovation, both in-store and situation in China. The Maisons demonstrated online, but also sustained investment in logistics. In flexibility and agility, focusing their efforts on the markets where recovery was the strongest and terms of categories, makeup, haircare and fra- grances drove growth. Sephora’s own brand, stepping up the pace of their digital inroads. Growth Sephora Collection, performed well behind impact- at the Maisons was powered by excellence and ful new product launches. Sephora continued to innovation driving improvements in the customer expand its store network, especially thanks to its experience, differentiation and loyalty policies, and partnership with Kohl’s in the United States. Sephora the ramp-up of omnichannel strategies. also launched a new “store of the future” concept In 2022, Sephora achieved its strongest year ever with record sales and profits. The Maison recorded at Raffles City in Singapore, specifically designed to offer an experiential shopping journey. A new iconic store was opened in the Place Vendôme mall market share gains in all of its core markets, with especially robust performances in North America, in Doha, Qatar. Sephora also entered the UK, a year after its acquisition of Feelunique, a UK favorite in Europe, the Middle East, Latin America and most the online beauty and wellness space. The Maison Southeast Asian countries. Retail sales were strong was also able to finalize the sale of its Russian activ- as traffic improved in all markets except China, due ities to its local general manager, aimed at providing to the public health situation. E-commerce was continuity for local employees. In parallel, Sephora 134 • 135 LVMH 2022 . Selective Retailing 1 2 continued to build its brand and reinforce its cul- drop, DFS focused on revitalizing its network, ture. The Maison organized exciting physical, digital innovating in the digital space and selectively and hybrid events dedicated to its clients, such as expanding. The Maison celebrated its 50th anniver- “Sephoria: Virtual House of Beauty”, featuring mul- sary at San Francisco International Airport with an tiple virtual rooms to explore and exclusive content event to unveil its renovated stores, and also cele- from some of Sephora’s most loved brands. True to brated the reopening of its airport stores in Vietnam its commitment to a more diverse and inclusive and Singapore and of its T Galleria store on the world, Sephora has continued to support causes it island of Bali. A number of new sites were opened deeply believes in. In the United States, Sephora in 2022: DFS won the fashion, watch and jewelry pursued its Accelerate brand incubator program in concessions at the domestic terminal of China’s particular, aimed at supporting beauty entrepre- Chongqing Jiangbei International Airport – the neurs, with a focus on supporting founders of color Maison’s first successful bid for a Chinese airport to increase their representation in prestige beauty concession. In October, a new T Galleria store and in Sephora’s product assortment. In France, opened in Queenstown, New Zealand, introducing Sephora pursued its partnership with Toutes à l’École, the “Resort” concept. In Macao, the reopening of to support the education of girls in Cambodia. the T Galleria Beauty by DFS store at the Galaxy DFS remained hampered during the year by the public health situation in China. Flagship destina- resort was followed by the opening of a new T Galleria at The Londoner resort. Destinations not affected by the public health situation performed tions Hong Kong and Macao were particularly hard- well, including in particular Japan, the Middle East hit in 2022 with the suspension of domestic travel and France, where La Samaritaine Pont-Neuf con- and total absence of tourists. Against this back- firmed its appeal. The Maison continued to focus 3 4 OUR MAISONS TAKE ACTION and non-binary people – show and express themselves with At Sephora, everyone counts confidence. Many of these classes have been held around the world. — Through its Classes for After launching in the United States Confidence program, Sephora and Canada, they have been offers both beauty classes and expanded in a number of European coaching to help people facing countries (France, Poland, Spain, major life transitions – including Italy, Greece, Denmark and Portugal). cancer survivors, people who Since the program was launched have been marginalized on in 2015, over 126,000 participants the job market, and transgender have taken nearly 2,800 classes. 1. 2. La Samaritaine Paris Pont-Neuf 3. 4. T Fondaco dei Tedeschi, Venice 136 • 137 LVMH 2022 . Selective Retailing 1. 2. 3. 4. Le Bon Marché Rive Gauche, Paris on employee well-being by implementing health throughout the year, joined by many customers OUR MAISONS TAKE ACTION programs and adapting working hours, and offered from other parts of France and around the world. financial support to those whose families were Business was buoyed by a busy program of events, affected by quarantine measures in Hong Kong in reaffirming its unique profile as a trend-setting particular. Lastly, DFS maintained its support department store and a cultural venue. The begin- Le Bon Marché at the heart of circular design for local communities through volunteer activities, ning of the year featured the Su exhibition by artist and launched a partnership with the World Health Mehmet Uysal, an installation with a powerful — In 2022, Le Bon Marché Rive Gauche and Balthazar, Organization to combat unequal access to vaccines. message, questioning contemporary climate prior- Le Bon Marché’s women’s and ities. Philippe Katerine then made his mark on the men’s fashion brands, developed Starboard Cruise Services was boosted by the rebound in the cruise sector after a difficult start to store’s design with his X exhibition, while May saw capsule collections using upcycled the 30th anniversary of the Vieilles Charrues music fabrics from LVMH’s Nona Source the year and a very gradual recovery. By the end festival. In the fall, Le Bon Marché celebrated its platform. These collections are of 2022, the Maison had resumed operations on 82 170th anniversary, with commemorations including made using precious fabrics taken ships, with an occupancy rate reaching 90%. New the launch of an unprecedented experience for a from unused inventories from contracts were also signed, adding 11 ships to its department store: an immersive theater perfor- the Group’s major fashion Maisons. portfolio. mance inspired by Émile Zola’s famous novel Au In addition, Le Bon Marché’s Le Bon Marché had an excellent year, with revenue exceeding its 2019 level. Parisian customers faith- fully returned to the store, which remained open Bonheur des Dames, played to a full house. La Grande alterations workshop now offers Épicerie de Paris experienced strong growth. alteration services for all ready-to-wear articles brought in by customers, new or used, regardless of whether they were bought at Le Bon Marché or another store. The goal is to offer a comprehensive service to customers and maximize the lifespan of products. 1 3 138 • 139 2 4 LVMH 2022 . Selective Retailing 2022 STORIES An immersive theater experience LE BON MARCHÉ — The history of Paris’ most famous department store is inextricably linked to Émile Zola’s masterpiece Au Bonheur des Dames (The Ladies’ Paradise), which was modeled on Le Bon Marché. To celebrate its 170th anniversary, Le Bon Marché Rive Gauche invited theater lovers to a first-of-its-kind immersive experience inspired by Zola’s characters. From September 2022 to April 2023, after closing time, Le Bon Marché raised the curtain and invited visitors in for a brand- new adventure. For two hours, spectators could follow in Émile Zola’s footsteps with an immersive play that was a far cry from traditional theater. With the actual store founded by Aristide and Marguerite Boucicaut as their stage, the thirty characters in Au Bonheur des Dames came to life in a memorable performance. The audience followed them through the store on an imaginary journey back in time and also tried to solve an enigma. 140 • 141 LVMH 2022 . Selective Retailing The first “Store of the Future” opens in Singapore SEPHORA — A pioneering prestige beauty retailer since its beginnings more than 50 years ago, Sephora continued to innovate with the launch of its new “Store of the Future” concept in Asia, at the Raffles City shopping mall in Singapore. At the 426 sq.m store, customers can try out products in several interactive and experimental zones, including the Play Table, Care Table, Skincare Lounge and Beauty School. Sephora’s Store of the Future offers personalized beauty experiences such as the Hair Consultation and Dry Styling Hair Service. The concept store also features other services like Skincredible, the dermatologist- recommended app that analyzes skin conditions, helps users understand their skin, and offers instant bespoke skincare advice. 142 • 143 LVMH 2022 . Selective Retailing Stars align in Paris LA SAMARITAINE — La Samaritaine was already alive with the spirit of Christmas on November 8! As night fell, stars lit up the store’s windows – and the faces of prestigious guests invited to kick off the festive season. On a pop-up stage, dancers put on glittering performances in a show all about reverie and movement. Highlights included a classical ballet routine – grace and elegance epitomized – by Paris Opera Ballet dancers Letizia Galloni and étoile (principal dancer) Germain Louvet; an infectiously upbeat samba and pop display by young dancers from the Sabrina Lonis school of dance; and a riveting voguing performance. For just one evening, La Samaritaine aligned the stars – Christmas twinkles and dance celebrities – to produce the most dazzling show in Paris. LVMH 2022 . Selective Retailing Cheval Blanc Paris LVMH CULTURE & LIFESTYLE 2022 2022 STORIES Plénitude, Absolues and Michelin stars CHEVAL BLANC — Inside the historic Samaritaine building, at the Cheval Blanc Paris restaurant Plénitude, chef Arnaud Donckele’s cuisine is an ode to the senses, and especially scent, taking what some might call a master perfumer’s approach to cooking. Here, in this intimate setting where time stands still, he celebrates sauces – usually relegated to the background – elevating them to an art form and giving them the starring role. He calls them his “Absolues”, and they blossom like bouquets. Fantastic in their complexity, his precious elixirs have head, heart and base notes and up to twelve ingredients – no blind taster would ever find them all. They are an experience that must be lived to the full and savored in the chef’s quintessential jus, consommés, velours, veloutés and soups. Sauces are the backbone of Arnaud Donckele’s Parisian cuisine and have now earned him the highest distinction for the second time: already a three-starred chef at the Cheval Blanc Saint-Tropez restaurant, Donckele was awarded another three Michelin stars for Plénitude as soon as it opened. 148 • 149 LVMH 2022 . Culture & Lifestyle Celebrating the world in all its splendor BELMOND — In 2022, Belmond launched MITICO, a partnership with world-famous art gallery Galleria Continua. Set in the gardens of four exclusive Belmond hotels in Italy, the project celebrates the talents of four leading contemporary artists from different cultures and backgrounds. They are: India’s Subodh Gupta, who exhibits at the legendary Hotel Cipriani in Venice; Argentina’s Leandro Erlich at Villa San Michele in Florence; Italy’s Michelangelo Pistoletto at Castello di Casole in the Tuscan countryside; and Cameroon’s Pascale Marthine Tayou at Grand Hotel Timeo in Taormina. Their works of art, respectively Cooking, Viewing, Loving, and Coloring the World, highlight different themes but share a common thread: they celebrate the world in all its splendor. In 2023, the MITICO project will travel further afield to Spain, Brazil and the United Kingdom. Villa San Michele, Florence, Italy – Window & Ladder, Leandro Erlich 150 • 151 LVMH 2022 . Culture & Lifestyle Performance measures Useful information for shareholders Shareholders’ Club 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. Latest news about our Maisons 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 Shareholders and the annual issue of Apartés, our Club magazine. Tours to discover our Maisons Throughout the year, the LVMH Shareholders’ Club holds exceptional in-person and virtual private tours of a number of its Maisons, such as Louis Vuitton’s workshops in Asnières, Dior’s 30 Montaigne boutique and gallery, the Samaritaine Pont-Neuf department store in Paris, and Chaumet’s hôtel particulier on the Place Vendôme. Club members can also reserve guided tours of unique sites such as Hennessy’s centuries-old cellars in Cognac, Veuve Clicquot and Ruinart’s magnificent crayères in Information about LVMH shares Listed on: Eurolist by Euronext Paris Stock market capitalization: €342 bn as of 12/31/2022 (the largest capitalization on the Paris stock market) Number of shares: 503,257,339 as of 12/31/2022 Member of indices: CAC 40, Dow Jones Euro Stoxx 50, MSCI Europe, FTSE Eurotop 100, Global Dow and FTSE4Good. Shareholder structure (1) (December 2022) 5.9% Individuals 7.3% French institutional investors 38.2% Foreign institutional investors 48.2% Arnault family group 0.4% Treasury stock Reims, and Moët & Chandon and Mercier’s champagne (1) Voting rights: Arnault family group 63.9%; Other 36.1%. cellars in Épernay. Exclusive offers for the Group’s products 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 media publications – Les Echos, Investir, Le Parisien and Connaissance des Arts – and order priority-access tickets for the Fondation Louis Vuitton. A website dedicated to Club members 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 Agenda Thursday, January 26, 2023: 2022 full-year revenue and results April 2023: 2023 first-quarter revenue Thursday, April 20, 2023: Shareholders’ Meeting Thursday, April 27, 2023: Payment of the final dividend for fiscal year 2022 July 2023: 2023 half-year revenue and results October 2023: 2023 third-quarter revenue Contacts 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 Stock market performance measures LVMH stock market data 2021 2020 (in euros) High (mid-session) 517.20 741.60 Low (mid-session) 278.70 489.05 Year-end share price 510.90 727.00 Change during the year (%) Change in the CAC 40 (%) Market capitalization at Dec. 31 (EUR bn) Source: Euronext. +23% –7% 257.9 +42% +29% 367.0 2022 758.50 535.00 679.90 –6% –10% 342.2 Change in the dividend 2021 2020 Gross dividend (in euros) Change for the year Payout ratio Basic Group share of net earnings per share (in euros) 6.00 +25% 64% 9.33 10.00 +67% 42% 23.90 (1) To be proposed at the Shareholders’ Meeting on April 20, 2023. 2022 12.00(1) +20% 43% 28.05 Comparison between the LVMH share price and the CAC 40 index since January 2, 2018 (in euros) 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 DN FJ M A J M OSAJ DN 2021 A JJMAMFJ 2022 0 DNOS DNOSAJJMAMFJ 2018 FJ M A J M OSAJ DN FJ 2019 M A J OSAJ M 2020 750 725 700 675 650 625 600 575 550 525 500 475 450 425 400 375 350 325 300 275 250 225 200 175 150 LVMH CAC 40 rebased Trading volume (right-hand scale) In 2022, after the first week of January, when the CAC 40 reached an all-time record high, stock markets had a particularly volatile year, marked by the war in Ukraine and its repercussions on the global economy, which led to both shortages and surging inflation fueled by the energy crisis. Faced with these headwinds, central banks took decisive action, launching an unprecedented series of interest rate hikes after nearly ten years of falling rates. In this more challenging environment, which was also weighed down by extended lockdowns in China as well as political and economic uncertainty in the United Kingdom, stock markets nevertheless saw a slight upturn in the second half of the year. The CAC 40 and Euro Stoxx 50 indices finished 2022 down 9.5% and 11.7%, respectively, dropping less than US growth stocks, with the Nasdaq plunging 33%. The geopolitical and macroeconomic context also weighed on the performance of luxury stocks. The LVMH share saw a rebound in the fall, recouping part of its full-year drop and allowing it to finish off the year down 6.5%, at €679.90. LVMH’s market capitalization was €342 billion as of December 31, 2022, making the Group the most valuable company in Europe. 154 • 155 LVMH 2022 . Performance measures Financial performance measures 2022 revenue by region (as %) 8% France 16% Europe (excl. France) 27% United States 12% Other markets 30% Asia (excl. Japan) 7% Japan Stores (number) 5,556 5,664 5,003 Revenue (EUR millions) 79,184 64,215 44,651 2020 2021 2022 Profit from recurring operations (EUR millions) 21,055 17,151 8,305 2020 2021 2022 2020 2021 2022 Revenue by business group Profit from recurring operations by business group (EUR millions) 2022 Reported Organic (1) (EUR millions) Change 2022/2021 Wines & Spirits 7,099 +19% +11% Wines & Spirits Fashion & Leather Goods 38,648 +25% +20% Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities and eliminations 7,722 10,581 14,852 282 +17% +18% +26% – +10% +12% +17% – Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities and eliminations 2022 2,155 15,709 660 2,017 788 (274) Change 2022/2021 Operating margin +16% +22% –3% +20% +48% – 30.4% 40.6% 8. 5% 19.1% 5.3% – TOTAL LVMH 79,184 +23% +17% TOTAL LVMH 21,055 +23% 26.6% (1) On a constant consolidation scope and currency basis. For the Group, the impact of changes in scope was nil and exchange rate fluctuations had a positive 6% impact. Net profit, Group share (EUR millions) Operating investments (EUR millions) 14,084 12,036 4,702 4,969 2,478 2,664 2020 2021 2022 2020 2021 2022 Operating free cash flow (EUR millions) 13,531 10,113 6,117 Simplified balance sheet as of 12/31/2022 (EUR billions and % of balance sheet total) 135 135 70% No n- c u r r e n t a s s e t s 42% E q u i t y 35% No n- c u r r e n t l i a b i l i t i e s 23% C u r r e n t l i a b i l i t i e s 15% I n v e n t o r i e s 15% O t h e r c u r r e n t a s s e t s 2020 2021 2022 Assets Liabilities and equity Equity and ratio of net financial debt to equity (EUR millions and %) 56,604 48,909 38,829 11% 2020 20% 16% 2021 2022 Net financial debt (EUR millions) 9,607 9,201 4,241 2020 2021 2022 Further information can be found in the 2022 Universal Registration Document. 156 • 157 LVMH 2022 . Performance measures Non-financial performance measures Breakdown of emissions by business group (in metric tons of CO₂ equivalent) Energy consumption by business group (in MWh) CO2 emissions in 2021 CO2 emissions in 2022 pro forma(1) Change(1) (2)(3) (as %) 2021 2022 pro forma (1) Change (1) (2) (as %) 34,470 26,111 107,301 93,677 14,285 8,965 11,140 7,071 96,315 81,650 28,842 27,989 –24% –13% –22% –21% –15% –3% Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities 233,665 246,699 398,686 405,767 99,267 96,504 46,869 44,162 308,582 317,150 111,075 117,231 +5% +2% –3% –6% +3% +6% Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities TOTAL 290,177 247,638 –15% (1) Value and change at constant scope. (2) Updated emissions factors. (3) Excludes estimated store power consumption. TOTAL 1,198,144 1,227,513 +2% (1) Value and change at constant scope. (2) Excludes estimated store power consumption. Water consumption by business group (process requirements in m3) Weight of packaging that reaches customers by business group (in metric tons) 2021 2022 pro forma(1) Change(1) (as %) 1,314,226 1,286,360 1,494,457 1,565,028 –2% +5% 184,933 206,912 +12% 73,397 59,774 –19% 188,727 244,664 +30% 151,073 208,842 +38% 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 2022 pro forma(1) Change(2) (as %) 2021 170,166 171,121 19,149 23,145 26,890 25,966 3,959 3,425 3,390 4,053 1 +1% +21% –3% +17% –15% – – TOTAL 3,406,813 3,571,580 +5% TOTAL 223,649 227,616 +2% (1) Value and change at constant scope. (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, 2022) Breakdown of the workforce by region (as of December 31, 2022) 2022(1) 8,398 67,034 29,549 26,369 55,471 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing % 4% 34% 15% 14% 28% Other activities 9,185 TOTAL 196,006 5% 100% (1) Total permanent and fixed-term headcount. (2) Under permanent contracts. % women(2) 40% France 2022(1) 36,346 41,846 41,936 8,924 47,860 19,095 % 19% 21% 21% 5% 24% 10% Europe (excl. France) United States Japan Asia (excl. Japan) Other markets TOTAL 196,006 100% (1) Total permanent and fixed-term headcount. (2) Under permanent contracts. % women(2) 66% 69% 75% 72% 75% 67% 71% 66% 82% 64% 84% 45% 71% Breakdown of the workforce by job category (as of December 31, 2022) Average length of service and breakdown by length of service 2022(1) 41,504 17,421 105,100 31,981 Executives and managers Technicians and supervisors Administrative and sales staff Production workers % 21% 9% 54% 16% TOTAL 196,006 100% (1) Total permanent and fixed-term headcount. (2) Under permanent contracts. % women(2) 65% 65% 78% 61% 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 As % of global workforce 60.8% 18.6% 8.7% 5.2% 3.5% 1.5% 1.7% 100% 6 years Further information can be found in the 2022 Universal Registration Document. 158 • 159 LVMH 2022 . Performance measures Photographs Cover, p. 4: Louis Vuitton Malletier, Viviane Sassen – p. 6: Jamel Toppin – p.10, 70: Dior, Adrien Dirand – p. 12, 15: Jean-François Robert – p. 13, 81: Dior, Kristen Pelou – p. 17: Laure Sée – p. 20-21: Carolina Arantes – Louis Vuitton Asnières, Boby – Tiffany & Co., Evelyn Freja – Berluti, Martin Colombet – Château d’Yquem, Fred Lahache – Belmond, Gaia Bonanomi – La Galerie Dior, Carolina Arantes – Château d’Esclans, Claire Gaby – Sephora, Martin Colombet – Guerlain, Carolina Arantes – DR – p. 22: Juliette Nioré – p. 25: DR – p. 26, 94, 98, 105: Guerlain – p. 28: Boby – p. 34: Guerlain, Pierrick Jégou – p. 37: Illustrations, Julia Spiers – p. 38, 89: Loro Piana – p. 40, 42: Fondation Louis Vuitton, © Gehry Partners, LLP and Frank O. Gehry, © Iwan Baan 2014 – p. 45: Fondation Louis Vuitton – p. 48: Château Cheval Blanc, Gérard Uféras – p. 50: Hennessy x Berluti – p. 52: Dom Pérignon – p. 53: Moët & Chandon – p. 53: Krug, Zoë Ghertner – p. 54: Ruinart, Romain Guittet – Veuve Clicquot, Joaquin Laguinge – p. 55: Château d’Esclans – The Glenmorangie Company, DDB – p. 87: Hennessy, Alain Benoit – Jas Hennessy & Co. – Belvedere – Eminente – p. 58: Joseph Phelps, Matt Morris – p. 59: Joseph Phelps, Briana Marie Photography – p. 61: Ruinart – p. 62: Domaine des Lambrays, Didier Bouko – p. 63: Domaine des Lambrays, Michel Joly – p. 65: Hennessy, Tony Tei – p. 66: Veuve Clicquot, Joshua White – p. 67: Château Galoupet – p. 68: Louis Vuitton Malletier, Annie Leibovitz – p. 72: Louis Vuitton – p. 73, 84: Louis Vuitton Malletier – p. 73: Louis Vuitton Malletier, Giovanni Giannoni – p. 74: Dior – Dior, Rafael Pavarotti – p. 75, 82, 83: Celine, Hedi Slimane – p. 75: Fendi, Craig McDean – p. 77: Loewe, David Sims – Berluti – Marc Jacobs, Harley Weir – RIMOWA, Maik Schuster – p. 78, 79: Louis Vuitton Malletier, Giovanni Giannoni; Ludwig Bonnet – p. 85: Louis Vuitton Malletier, Steven Meisel – p. 86, 87: Loewe x Studio Ghibli, Juergen Teller – p. 91: Fendi – p. 92: Parfums Christian Dior, Azuma Makoto – p. 96-98, 102, 103: Parfums Christian Dior – p. 99: Parfums Givenchy, David Sims – Fresh, Jeff Boudreau – p. 101: Fenty Beauty – Acqua di Parma – Kenzo Parfums – Francis Kurkdjian – p. 106: Parfums Christian Dior, Jean-Marie Binet – p. 107: Francis Kurkdjian, EPV / Thomas Garnier – p. 109: Officine Universelle Buly – p. 110: Tiffany & Co., Mason Poole – p. 112, 116, 124, 125: Bulgari – p. 114, 115, 120, 121: Tiffany & Co. – p. 117, 122, 123: TAG Heuer – p. 117: Hublot, Sofia Sanchez & Mauro Mongiello – p. 119: Chaumet, Viviane Sassen – Chaumet, Cédric Bihr – Fred – Zenith Watches – p. 127: Fred – p. 128: Chaumet, Claessens & Deschamps – p. 129: Chaumet, Jean-Luc Perreard – p. 130, 134, 135, 143: Sephora – p. 132, 146: La Samaritaine Paris Pont-Neuf, Pierre-Olivier Deschamps, Agence VU’ – p. 136: La Samaritaine Paris Pont-Neuf, Matthieu Salvaing – p. 137: DFS, T Fondaco dei Tedeschi – p. 139-141: Le Bon Marché Rive Gauche – p. 144, 145: La Samaritaine Paris Pont-Neuf, Valentin Le Cron – p. 148, 149: Cheval Blanc Paris, Alexandre Tabaste – p. 151: Belmond – Other photographs: LVMH and Group Maisons’ photo libraries. 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