Page 10 - Letter to shareholders – March 2019 - LVMH

THE LVMH SHARE

CHANGES IN THE LVMH SHARE PRICE SHAREHOLDER RETURN

After remaining relatively steady during the first nine months An LVMH shareholder who invested 1,000 euros on
of the year despite a climate of substantial uncertainty, January 1, 2014 would have a capital of 2,380 euros
markets slumped during the third quarter to end the year on December 31, 2018, based on reinvested dividends.
in a downturn. The trade war between the United States This represents a 138% gain, translating to a compound
and China, the political and economic environment in Italy annual growth rate of around 18.9% over five years.
and the difficult negotiations between the European Union
and the United Kingdom surrounding Brexit weighed on DIVIDEND UP 20%
performance in the main indices. The end of the year also
saw the publication of less favorable indicators, fueling At the Shareholders’ Meeting on April 18, 2019,
investor fears of a slowdown in global economic growth. LVMH will propose a dividend of 6 euros per share,
Paradoxically, the changes to monetary policy in Europe an increase of 20%. An interim dividend of 2 euros per
and the United States, which had been highly anticipated share was paid on December 6 last year. The final dividend
by investors, ended up having a limited impact on markets.
of 4 euros per share will be paid on April 29, 2019.
Against this backdrop, the CAC 40 and Euro Stoxx 50
indices finished 2018 down 11% and 14%, respectively.
The LVMH closing share price ended the year up 5%,
at €258.20, after having reached a new record high during
the year. LVMH’s market capitalization was €130 billion as of
December 31, making it the largest company on the Paris
stock exchange.

LVMH is included in the main French and European indices
used by fund managers: the CAC 40, DJ Euro Stoxx 50,
MSCI Europe and the FTSE Eurotop 100, as well as the
Global Dow and FTSE4Good, one of the key indices for
socially responsible investment.

Comparison between the LVMH share price LVMH shareholder structure
and the CAC 40 since January 1, 2016 (December 2018)

—— LVMH —— CAC 40 rebased
320 (in euros)
300 Arnault Family Group 47.2%
280
French institutional
260 investors 11.6%
240
Foreign institutional
220 investors 35.8%
200
180 Individuals 5.0%
160
Treasury stock 0.4%
100
J F M A M J J A S ON D J F M A M J J A S ON D J F M A M J J A S ON D J
2016 2017 2018

10 – LVMH – LETTER TO SHAREHOLDERS – MARCH 2019