LVMH Annual Report

A VA LU E - E N H A N C I N G S T R AT E GY FOR L A S T I N G S U C C E S S

Responsible procurement policy

LVMH owes its global leadership in premium wines and spirits to a unique group of exceptional Maisons based in Champagne, Bordeaux and other highly renowned wine- growing regions. Inspired by their visionary founders and drawingon their strongheritage–which for somegoesback hundreds of years – they all share the key values of excel- lence and creativity, combining tradition with innovation.

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 sustainablewinegrowing certification since 2017, and the Maisons forge partnerships with winegrowers by helping their grape suppliers comply with these certifications. They are also actively developing their pro- duction capacities. For example, the responsible, innova- tive and efficient Pont Neuf bottling and logistics facility inaugurated by Hennessy in 2017 reflects the Maison’s long-term vision.

Well-balanced, worldwide presence

Against the current backdrop of supply constraints, Moët Hennessy continues to pursue a value-enhancing strategy focused on high-end market segments. The balanced geographic expansion of its portfolio of brands continues thanks to a powerful and agile global distribution network present in over 160 countries.

2018 Revenue by region (in %)

Other markets 14%

France 6%

Asia (excl. Japan) 23%

Europe (excl. France) 19%

Japan 6%

United States 32%

Champagne sales volumes 64 .9 mil l ion bot tles

Cognac sales volumes 93 . 3 mil l ion bot tles

Revenue € 5 , 143 m +5% (1)

Profit from recurring operations € 1 , 629 m +5%

Operating investments € 298 m +2%

(1) On a constant consolidation scope and currency basis.

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