LVMH 2018 . Wa t c h e s & J e w e l r y

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Major strategic pr ior ities

Reinforce our Maisons desirability thanks to expert craftsmanship and distribution.

Continued growth of Bvlgari and of TAG Heuer with innovative products.

Optimally reinforce manufacturing facilities.

2018 at a glance

Excellent year for Bvlgari and good progress of watch brands

Growth for the Watches & Jewelry business group was once again driven by the creativity of its brands and the strong performance delivered by their stores. Jewelry showed remarkable momentum and gained market share. In a market environment that remained challenging, the watch business grew thanks to the strength of its brands flagship lines and the excellence of their innovations. Bvlgari performed very well and gained market share. Its iconic jewelry and watchmaking lines Serpenti, Divas Dream, B.Zero1, Lvcea and Octo grew strongly. Among the new product launches of the year, the Octo Finissimo watch and the Fiorever jewelry collection, designed around a central diamond, were exceptionally well received. Chaumet s growth was driven by the success of the Liens and Joséphine collections, particularly in Asia. The exhibition on its history at the Mitsubishi Ichigokan Museum in Tokyo was an immense success. In the watchmaking sector, TAG Heuer continued to develop its iconic lines and introduced a new variant of the smart watch. Hublot, which continued its progress, enjoyed strong growth in 2018 and considerable visibility as the FIFA World Cup Official Timekeeper.

Outlook

By constantly monitoring markets and remaining highly selective in its allocation of resources, the Watches & Jewelry business group is actively pursuing its market share growth target. This ambition is based on sustaining its key growth drivers: the exceptional creativity of its brands, combined with their constant pursuit of perfection in iconic lines and new collections alike; consolidating their world-class craftsmanship and technological leadership through investments in production capacity; precisely targeted marketing campaigns, especially in the digital realm, to raise the watches and jewelry brands profiles in key regions; and lastly, improvements in the quality, productivity and profitability of retail networks, which remain a top priority. Bvlgari will continue to expand its network, with the opening of a flagship store in Paris on the Avenue des Champs-Élysées, the expansion of its boutique on Place Vendôme, and selective renovations and openings in Asia and the United States. The flagship B.Zero1 line will celebrate its 20th anniversary. TAG Heuer plans to open stores in China and Hong Kong. Chaumet will continue rolling out its new store concept, with projects that will raise brand awareness in Europe.