LVMH 2018 . P e r f u m e s & C o s m e t i c s

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Major strategic pr ior ities

Maintain our creativity in innovation and communications.

Focus on developing Parfums Christian Dior in harmony with Couture.

Pursue the global expansion of our other brands.

2018 at a glance

Strong progress of flagship brands and rapid progress in Asia

Parfums Christian Dior experienced remarkable growth and increased its market share in all regions of the world. The launch of its new perfume Joy and the exceptional worldwide success of Sauvage and the other iconic perfumes J adore and Miss Dior are behind the strong growth of the Maison. Makeup and skincare also grew rapidly. Guerlain progressed well, driven in particular by the success of Abeille Royale in skincare and Rouge G in makeup. Benefit strengthened its leading position in the eyebrow segment and Parfums Givenchy accelerated its performance, thanks in particular to makeup and its new perfume L Interdit. Fresh and Fenty Beauty by Rihanna continued their exceptional growth.

Outlook

In a highly competitive market environment, the Perfumes and Cosmetics business group will draw on the strength of its well-differentiated brand portfolio to win new market share. Its brands will focus on gaining innovative momentum, retail quality and digital marketing. Parfums Christian Dior will innovate in its three product categories. In perfume, the brand will continue to showcase its global pillars, with strong marketing support in conjunction with Couture, and will accelerate the rollout of its boutique concept as well as its initiatives to build a unique customer experience around perfume, both in-store and online. Drawing on the expertise of professional makeup artists and the brand s couture spirit, makeup will be the focus of an extensive innovation plan, backed by a bolstered digital activation strategy. Dior skincare which aims to accelerate the brand s growth in the Prestige and anti-aging lines will be boosted by momentum in Asia. Guerlain will continue rolling out its Guerlain Parfumeur boutiques; expand its flagship makeup and skincare ranges; and launch a high-performance, highly natural foundation, in line with its In the Name of Beauty com- mitment to sustainability. A new version of its L Interdit fragrance and bold innovations in makeup will help speed up growth at Parfums Givenchy. Benefit s initiatives will mainly focus on brow products, to consolidate its lead in this category, and on conveying its unique positioning, particularly in the digital realm. Kenzo will launch a light eau de parfum version of Flower by Kenzo and a new variant of Kenzo World. Parfums Loewe will roll out its fresh new brand identity, backed by a groundbreaking marketing campaign strengthening its ties with the world of couture. Fenty Beauty by Rihanna will continue its international expansion, particularly in Asia.