Page 3 - Letter to shareholders – March 2019 - LVMH

environment, bringing together beyond its borders, each one evoking maintaining the exquisite quality of their
different generations, backgrounds the French art de vivre in the dreams of products. Retail is another growth driver
and perspectives, that our people are billions of women and men around the for our products, which will be boosted
giving shape to the LVMH of tomorrow. world. by our increasingly customer- centric
approach as we develop our brands.
LVMH’s deep roots in France A sense of responsibility The growing use of digital technologies
in our business activities will also enrich
Another reason why LVMH can continue As ambassadors of excellence, inspired the customer experience that we offer,
to expand, allowing its Maisons to carry by the continued success of our Maisons, both online and in our physical stores.
on inspiring dreams, is that we have we are also aware of the responsibility
always prepared for the future: year after we have. The sustainability of our model Over the last 20 years, in addition to
year we consolidate our foundations, is built on our exemplary approach to its Maisons’ excellence, the Group has
laying the groundwork for new ethics and respect for our partners. benefited from the general increase in
developments. In 2018 our Group Where the environment is concerned, living standards worldwide. This trend
ramped up its production capacity to we have already spent over 25 years is set to continue in the years to come.
meet ever- growing demand. The bulk working to preserve the shared heritage Therefore, while I am watchful, I remain
of our investment was in France. After of rare and precious raw materials optimistic about the Group’s medium-
opening production workshops in Allier used to craft our products. Back in and long- term outlook.
in 2017 and in Vendée in 2018, Louis 1992, we took the lead by setting up
Vuitton inaugurated a new facility in an environment department. Today, For the short term, conditions at the
Maine- et- Loire in early 2019 – the more than ever, we are engaged in the beginning of this year are buoyant,
Maison’s 16th in France – and will open protection of the environment, especially but we will keep a close eye on
two more in the coming months. in the fight against climate change. developments in light of persistent
Construction also continues at Veuve For example, we have set ambitious geopolitical uncertainties. We are
Clicquot’s new production site near 2020 goals for all our Maisons that therefore cautiously optimistic for 2019
Reims. The renovation project for concern their products, workshops and and have set ourselves the ambition
La Samaritaine is well underway and its stores. It is also our responsibility to of further strengthening our global
beautifully refurbished or newly created increase transparency in our supply chain leadership in high- quality products.
façades are gradually being revealed and ensure that our practices reflect the
ahead of its opening, planned for 2020. highest standards of integrity and respect
Maintaining the desirability of our for our partners. Sharing our expertise is
products therefore goes hand in hand another key commitment. For example, Bernard Arnault
with constant improvements in our we hand down expertise to younger Chairman
production methods and our expert generations through the Institut des and Chief Executive Officer
craftsmanship. Mastering this expertise Métiers d’Excellence LVMH, which by
is something we cherish: it ensures that the end of 2018 had already trained
our professions endure and that jobs 500 apprentices. And we support
can be created everywhere we operate. up- and- coming creative talent with the
Naturally, we are pleased with and take LVMH Prize for Young Fashion Designers,
pride in our results. But, most of all, which has been showcasing the work of
we are proud of our Group’s deep roots new and emerging designers every year
in the French economy and in regions since 2014. Lastly, we also promote and
across France – through the investments celebrate our artisanal expertise with a
it makes, the jobs it creates year after multitude of people during the Journées
year, and its contribution to cultural life Particulières; the fourth edition of this
in Paris. In 2018, LVMH hired more than event in 2018 was an unprecedented
13,000 people in France. We also success, with our artisans welcoming
crossed a symbolic threshold in 2018, 180,000 visitors.
investing over €1 billion in France.
In addition, the Fondation Louis Vuitton Cautiously optimistic for 2019
has welcomed over 5 million visitors
since it opened, and the Jardin In 2019, LVMH will again demonstrate
d’Acclimatation reopened in 2018, after its strong focus on innovation. Further
an extensive makeover. We are therefore progress will be made on many existing
proud of LVMH’s significant contribution projects as well as a number of new
to France’s economic development and launches. Powered by their creative
cultural influence. Most of our products momentum, our Maisons will further
are made in France, carrying names refresh and enrich their iconic lines while

LVMH – LETTER TO SHAREHOLDERS – MARCH 2019 – 3