LVMH 2020 . P e r f u m e s & C o s m e t i c s

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LVMH is a key player in the perfume, makeup and skincare sector, with a port- folio of world-famous Maisons as well as younger brands with a promising 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 val- ues: the pursuit of excellence, creativity, innovation and appeal.

Unique creative momentum

With surging demand in Asia and the huge popularity of skincare, the global perfume 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 biodiversity and sustainable design.

Excellence and innovation in retailing

All the brands are accelerating the implementation of their online sales plat- forms 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 incor- porating digital tools to enhance the customer experience and attract new consumers. The Group s refusal to engage in excessive special offers and parallel sales, although such practices are used by a number of its competitors, helps ensure the powerful appeal of LVMH s Maisons.

F O C U S I N G O N Q U A L I T Y A N D C U LT I VAT I N G U N I Q U E N E S S

Major strategic pr ior ities

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.

2020 REVENUE BY REGION (in %)

(1) Organic change 2020/2019. (2) Change between 2013 and 2020.

Revenue

5, 248 m 22%(1)

Operating investments

280m 26%

Profit from recurring operations

80m 88%

Other markets

9%

Asia (excl. Japan)

45%

France 9%

Europe (excl. France) 18%

United States 14%

Japan 5%

Environmental performance index of packaging(2)

+10%