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BUSINESS REVIEW
LVMH 2013

ANNUAL REPORT

Table of contents

  • Page 1
    LVMH 2013 - ANNUAL REPORT BUSINESS REVIEW

  • Page 2

  • Page 3
    ... in two words: CREATIVE PASSION. 16 26 38 48 58 WINES & SPIRITS FASHION & LEATHER GOODS PERFUMES & COSMETICS WATCHES & JEWELRY SELECTIVE RETAILING - The values of LVMH Innovation and creativity Because our future success will come from the renewal of our product offering while respecting the...

  • Page 4

  • Page 5
    ...collections, is one of the most talented designers. He shares Louis Vuitton's vision and values, and brings a great sense of enthusiasm to the task of working with our teams to build its future. Our Perfumes and Cosmetics brands have been strengthening their research facilities and increasing market...

  • Page 6
    ... brands have met with evident success. They have been developed over time and now represent a second wave of growth. This is true of Céline, Fresh, Benefit...and Marc Jacobs, which has really evolved since it joined the Group. After sixteen fantastic years as Creative Director for Louis Vuitton...

  • Page 7
    ... Foundation. We have worked with the architect to make this an exceptional venue and a testament to our patronage of art, through which we intend to help promote French and Parisian culture worldwide. Here too, a passionate path lies ahead of us. Bernard Arnault Chairman and Chief Executive Officer...

  • Page 8
    ... PERFORMANCE FOR LVMH IN 2013 REVENUE (EUR millions) 2013 2012 2011 29,149 28,103 23,659 REVENUE BY BUSINESS GROUP (EUR millions) Wines and Spirits Fashion and Leather Goods Perfumes and Cosmetics Watches and Jewelry Selective Retailing Other activities and eliminations TOTAL 2013 4,187 9,882...

  • Page 9
    LVMH 2013 - Financial highlights STORE NETWORK (at December 31, 2013) NUMBER OF STORES 2013 United States 669 stores Europe (excl. France) 926 stores 2012 2011 3,384 3,204 3,040 France 443 stores Japan 370 stores Asia (excl. Japan) 749 stores Other markets 227 stores REVENUE BY GEOGRAPHIC ...

  • Page 10
    08 / 68

  • Page 11
    ...cost, and can make our infrastructure heavier. Louis Vuitton and Loro Piana are brands that offer a wide range of products, with strong growth and profitability, and it took them decades to build and shape their business models. Not all our brands have reached this stage of maturity and development...

  • Page 12
    ... compensation, in-kind benefits, bonus shares and stock options granted to the Chairman of the Board of Directors, the Chief Executive Officer and 10 / 68 the Managing Director(s) of the Company, and on the distribution of the Directors' fees paid by the Company; - opinions on candidates for the...

  • Page 13
    ... bodies EXECUTIVE COMMITTEE Bernard Arnault Chairman and Chief Executive Officer Antonio Belloni Group Managing Director Pierre Godé Vice-Chairman Nicolas Bazire Development and Acquisitions Michael Burke Louis Vuitton Yves Carcelle Louis Vuitton Foundation Chantal Gaemperle Human Resources...

  • Page 14
    12 / 68

  • Page 15
    ...which our customers aspire. To strengthen our position as a global leader, and to be the benchmark in the management and development of high quality brands. ENVIRONMENT To work together to preserve the resources of the planet, to design and develop products that respect the environment, to report on...

  • Page 16
    LVMH 2013 - Journées Particulières FOCUS DANS LES COULISSES DU RÊVE 14 / 68

  • Page 17
    ...the expertise and know-how of the people that make up the Group. Where dreams are made Following the success of the first edition of the Journées Particulières in 2011, the LVMH Group repeated this unique exercise in 2013, opening yet more Maisons and sites to the public for the first time. More...

  • Page 18

  • Page 19
    LVMH 2013 WINES & SPIRITS

  • Page 20
    ... also the world leader in cognac with Hennessy and is expanding its presence in the luxury spirits segment in addition to its historical business. The portfolio of brands is served by a powerful international distribution network. REVENUE (EUR millions) 2013 2012 2011 3,524 4,187 4,137 PROFIT FROM...

  • Page 21
    ... and Spirits business group? Organic revenue growth regained a good balance of higher volumes and ambitious price increases, which we carried out as planned. This result, delivered in a mixed global market, reï¬,ects the strength of our brands and the continuation of our value creation strategy. The...

  • Page 22
    LVMH 2013 - Wines & Spirits In 2013, Wines and Spirits recorded organic revenue growth of 6%. Profit from recurring operations increased by 9%. Dom Pérignon Krug In an environment characterized by strong momentum in Asia and the United States, with a mixed market in Europe, the business group ...

  • Page 23
    ... now associated with major international art fairs. The artist Piet Hein Eek created a work of art in homage to the history of the champagne house and designed two limited edition collections. KRUG focused on boosting its notoriety and winning over new customers by revisiting the notions associated...

  • Page 24
    ...to the success of its older quality grades, Hennessy breathed new life into the brand with younger grades such as Very Special and Classivm, to win over new generations of consumers. The brand stepped up its presence in the nightlife segment, around the new Very Special creative universe designed by...

  • Page 25
    ... in China in a highly competitive market for premium baijiu. investments in communication, devoted to the most promising markets and segments, will support the brands' initiatives. These elements are the keys to a value-creation strategy based on moving the product mix upscale and increasing prices...

  • Page 26
    LVMH 2013 - Wines & Spirits FOCUS Dom Pérignon by Jeff Koons Frequently associated with the most creative talents of our time in every discipline, Dom Pérignon continues to reinvent its own established codes, revealing unexpected facets of its personality with every vintage. In 2013, it ...

  • Page 27
    ... grapes, Chardonnay and Pinot Noir. The first, highly anticipated vintage will be unveiled in 2014. Domaine Chandon China has everything it takes for future success - excellent soil quality, proximity to customers with a passion for high-quality products, and the opportunity to establish an ongoing...

  • Page 28

  • Page 29
    LVMH 2013 FASHION & LEATHER GOODS

  • Page 30
    ...Leather Goods business group. This outstanding group of brands from both sides of the Atlantic has 1,339 stores throughout the world. LVMH supports growth of these brands by providing them with shared resources, while at the same time respecting their identity and their creative positioning. In 2013...

  • Page 31
    ... phenomenal fabrics and develops ready-to-wear, leather and accessory collections sought after by a global customer base that values extraordinary quality. - Major strategic priorities Continue strategic development of Louis Vuitton. Strengthen image and profitable growth of other fashion brands.

  • Page 32
    ... different creative universes is distilled and customers the world over are offered a unique experience. This goal was reï¬,ected in the expansion and renovation of several boutiques worldwide, notably in London, Tokyo and Beijing. The year 2013 was marked by two new Maisons Louis Vuitton openings...

  • Page 33
    LVMH 2013 - Fashion & Leather Goods Fashion and Leather Goods recorded organic revenue growth of 5%. Profit from recurring operations for this business group was down 4%. Louis Vuitton Fendi goods, these offerings were focused on highlighting the iconic Selleria, Peekaboo and Baguette lines, ...

  • Page 34
    ... the brand. Its new cosmetics line, exclusively distributed in Sephora stores, met with great success. Its operations in China are being acquired on a direct basis. Marc Jacobs decided to focus fully on the brand's business to support its future development. During the fiscal year, the Group raised...

  • Page 35
    LVMH 2013 - Fashion & Leather Goods Givenchy Marc Jacobs LOEWE continued to make strides, recording particularly remarkable growth in Japan. The emblematic Amazona and Flamenco lines continued their development. After Paris, new renovated boutiques were inaugurated in Shanghai and Rome. Loewe ...

  • Page 36
    ...Designers of America), crowning nearly eight years dedicated to enhancing the legacy of the brand. The retail network's expansion continued with the opening of boutiques in premium locations in Paris, Hong Kong and China. THOMAS PINK pursued its international development and opened its first stores...

  • Page 37
    ...of a globally unique retail network. Fendi will continue to showcase its offering oriented towards high-end and fur products. It will maintain a qualitative expansion of its store network, notably including openings in London, Munich and New York. Spurred on by their creative drive, the other brands...

  • Page 38
    LVMH 2013 - Fashion & Leather Goods FOCUS Loro Piana joins the LVMH Group In 2013, the Loro Piana family chose to sell a majority stake in their family business to the LVMH Group. Loro Piana is more than just a renowned label; it embodies a family's passion for the highest standards of ...

  • Page 39
    ... fashion designer and three fashion school graduates. The "Young Designer" competition is open to designers from any country who have produced and marketed at least two women's or men's ready-to-wear collections and are under 40 years of age. To help the winner develop his or her design work, LVMH...

  • Page 40

  • Page 41
    LVMH 2013 PERFUMES & COSMETICS

  • Page 42
    ... business group. REVENUE (EUR millions) 2013 2012 2011 3,717 3,613 3,195 PROFIT FROM RECURRING OPERATIONS (EUR millions) 2013 2012 2011 348 414 408 OPERATING INVESTMENTS (EUR millions) 2013 2012 2011 150 196 229 REVENUE BY PRODUCT CATEGORY (in %) 45% Perfumes 18% Skincare products 37% Cosmetics...

  • Page 43
    ... experience to create products that are not only effective but also truly luxurious. LVMH has also been supporting the development and geographic expansion of high potential brands positioned in promising market segments. Those brands are opening directly owned stores in their strategic countries...

  • Page 44
    ... and Cosmetics recorded organic revenue growth of 7% in 2013, outpacing market growth. Profit from recurring operations increased by 2%. Parfums Christian Dior In a highly competitive market, LVMH brands saw their reach broadened through continuing innovation, enhanced flagship product lines and...

  • Page 45
    LVMH 2013 - Perfumes & Cosmetics Guerlain among the top three contenders on the French market and has seen rapid growth abroad. The legendary Shalimar perfume benefited from a sweeping new cinematic advertising campaign. In skincare, Orchidée Impériale again recorded strong growth, ...

  • Page 46
    ... its new website. Its ï¬,agship product lines HD and Aqua did exceptionally well. FRESH stepped up its international expansion, particularly in Asia, where the brand has been very well received. Its skincare products made with natural ingredients and the sober elegance of its points of sale have...

  • Page 47
    ... product lines. It will continue to reaffirm its status as a luxury perfume house. It will perform a qualitative expansion of its distribution by increasing selectivity at its points of sale. Guerlain will accelerate its development, spurred on by sustained investments in communication. A new men...

  • Page 48
    ... are breathtaking and embody French-style "art de vivre" in spectacular fashion. The Guerlain Beauty Institute has reinvented itself, offering unprecedented customized skincare. A unique, ongoing cultural program establishes Maison Guerlain as a space where art is expressed in all its forms. The...

  • Page 49
    ...dedicated to research The LVMH Group officially opened its new Perfumes and Cosmetics research center in 2013 in Saint-Jean-de-Braye. Named Hélios in reference to the sun - an integral part of cosmetology research -, the center is a testament to the extent of the Group's investment in France in the...

  • Page 50

  • Page 51
    LVMH 2013 WATCHES & JEWELRY

  • Page 52
    LVMH 2013 - Watches & Jewelry The most recent of the LVMH business groups holds a portfolio of luxury brands with highly complementary market positions. This business group benefits in particular from TAG Heuer's stature as the world leader in high-precision chronographs and from the solid ...

  • Page 53
    ... in their directly owned stores, thanks to the strength of their emblematic product lines, their differentiated designs and proven creativity. - What developments stand out most to you? As far as watches are concerned, most definitely the opening of the new TAG Heuer manufacturing site in Chevenez...

  • Page 54
    ...Watches and Jewelry recorded organic revenue growth of 4%. Profit from recurring operations rose by 12%. TAG Heuer Hublot Performance was excellent in the directly owned store network, which continued to expand around the world, helping to reinforce brand image and distribution quality. TAG HEUER...

  • Page 55
    ... lines, its collection was enriched by several targeted new products, notably the El Primero Lightweight and the Pilot Aeronef. A new communication campaign helped reinforce the brand's image, while the quality of its distribution network was bolstered by increased selectivity at its points of sale...

  • Page 56
    ... its position as the men's top-of-the-line premium timepiece. Timepiece sales in directly owned stores were also buoyed by the strong performances turned in by the Serpenti jewelry watches. The distribution quality of the accessories business and of perfumes was reinforced. The store network pursued...

  • Page 57
    ... was highly successful. improving their profitability and productivity. A rigorous cost control policy will be maintained, while continuing to facilitate synergy within the business group. Investments will be targeted at moving stores upmarket and developing manufacturing capabilities, in line with...

  • Page 58
    ...- Watches & Jewelry FOCUS For TAG Heuer, a new Avant-Garde Manufacture in Chevenez In November 2013, TAG Heuer officially opened its latest manufacturing facility, known as the Avant-Garde Manufacture, in Chevenez, in the Jura region of Switzerland. In addition to manufacturing and assembling key...

  • Page 59
    LVMH 2013 - Watches & Jewelry FOCUS The inspired Diva high jewelry collection In ancient times, men felt a need to attribute divine qualities to the great heroes and heroines in history. Many centuries later, the magical stories related in films transformed those protagonists of the screen into ...

  • Page 60

  • Page 61
    LVMH 2013 SELECTIVE RETAILING

  • Page 62
    LVMH 2013 - Selective Retailing The LVMH Selective Retailing companies operate in Europe, North America, Asia and the Middle East. Their businesses are conducted in two segments: retailing designed for customers who are international travelers ("travel retail"), the business of DFS and Miami ...

  • Page 63
    ..., creative department store in Paris today, and the only one with a real cultural dimension. Le Bon Marché sells the best there is in fashion, beauty, design and food, along with a suite of high-end services, all carefully targeted to appeal to the Parisian and international elite. The store is...

  • Page 64
    ... identity of its stores, rebranded T Galleria, and the renovation of numerous points of sale. The arrival of new luxury brands also strengthened the vitality and appeal of its product range. MIAMI CRUISELINE reinforced its positions in the cruise market, buoyed by the growing success of cruise...

  • Page 65
    ... performance and gained market share across all regions. In Europe, Sephora showed resilience in a tough economic environment and strengthened its positions, notably in France, Italy and Russia. In North America, Sephora continued to show excellent momentum, both in its stores and online. Since 2012...

  • Page 66
    ... men's fashion segments. The successful Brazil exposition was one of the highlights of 2013. Major commercial projects were carried out on the department store's ground ï¬,oor, including the opening of new luxury boutiques, the inauguration of a space devoted to timepieces and the creation of a new...

  • Page 67
    ... network around the world, opening in a new country, Indonesia. An ambitious renovation Sephora program will be carried out on its flagship stores, reflecting Sephora's aim to consistently provide its customers with the ultimate shopping experience in beauty products. In-store and online innovation...

  • Page 68
    ... stores have seen major upgrades over the past five years to meet the expectations of today's demanding travelers, including an enhanced array of services, fresh design and alignment with the luxury brands they merchandise. The new name, T Galleria by DFS, pays homage to the company's core business...

  • Page 69
    ...in the digital universe in social shopping. Sephora.com launched the Digital Beauty Bag in 2013, a personalized destination for purchases and favorite products that can be shared with friends. In 2014, Sephora is introducing a new social shopping concept called "The Beauty Board" featuring shoppable...

  • Page 70
    ... libraries of LVMH and Group's Maisons. This book was printed on paper from sustainably managed forests, certified FSC (Forest Stewardship Council). LVMH - 22, avenue Montaigne - 75008 Paris - France Tel.: 33 (0)1 44 13 22 22 - Fax: 33 (0)1 44 13 22 23 - www.lvmh.com 68 Design and production:

  • Page 71

  • Page 72

  • Page 73
    LVMH 2013 - ANNUAL REPORT MAISONS

  • Page 74

  • Page 75
    ... 21 26 28 WINES & SPIRITS FASHION & LEATHER GOODS PERFUMES & COSMETICS WATCHES & JEWELRY SELECTIVE RETAILING OTHER ACTIVITIES - History of the Group Although the history of the LVMH Group began in 1987 with the merger of Moët Hennessy and Louis Vuitton, the roots of the Group actually stretch back...

  • Page 76
    .... Today, the Ruinart Maison is heavily involved in the world of contemporary art, participating in a number of international events, including ARCO, Carré Rive Gauche, the Pavillons des Arts et du Design in Paris and London, Masterpiece, Art Paris, FIAC and Paris Photo, Art Brussels, Art Cologne...

  • Page 77
    LVMH 2013 - Maisons WINES & SPIRITS The history of the House is marked by the pioneer spirit of its founders. Jean-Remy Moët, the grandson of Claude, transformed the family trading business into one of the world's leading international luxury brands. HENNESSY - Since 1765 - liquors, providing ...

  • Page 78
    ... joined the LVMH Group. Maison Veuve Clicquot still incarnates today, in France and worldwide, the values treasured by Madame Clicquot - modernity and daring coupled with a demand for quality and unequalled expertise. And since every birth requires a founding event, Cheval Blanc was born from the...

  • Page 79
    ... year, its personal best. Glenmorangie is one of the great names in the world of single malt whisky and known as the industry pioneer. In the 1980s, the company embarked on an international marketing campaign, stressing the premium quality and handcrafted character of Glen- morangie and helping...

  • Page 80
    LVMH 2013 - Maisons WINES & SPIRITS Dom Pérignon is the point of balance where precise style and the distinctive qualities of a year intersect to offer an unparalleled sensation of lightness and ï¬,uidity, from the first impression to the final aroma. Dom Pérignon continues to inspire ...

  • Page 81
    ... in the Marlborough grape growing region on New Zealand's South Island. Its reputation and quality helped put New Zealand wines on the global wine map, earning them international prestige. Domaine Chandon Australia was established in 1986 by Moët & Chandon in Green Point, at the heart of the Yarra...

  • Page 82
    ..., so specific to the Tinta de Toro grape. While this winemaking approach is common to the three wines developed by the Domaine, each wine has its own individual style. The product line is available in Numanthia, Termes and Termanthia. Numanthia is part of the Estates & Wines collection. 08 / 32

  • Page 83
    ... outstanding praise from wine critics and the international press, and have already become favorites of connoisseurs of Grands Crus wines. Cheval des Andes wines are now available in the world's primary markets. Cheval des Andes is part of the Estates & Wines collection. 09 / 32 10 Cane Rum is...

  • Page 84
    ... other creative spheres: ready-to-wear, shoes, accessories, watches, jewelry and stationery. Under the artistic direction of Marc Jacobs, success and recognition have been immediate. These intricately manufactured creations are now available in an exclusive network of stores around the world. Today...

  • Page 85
    ...custom collections. The prêt-à -porter apparel sold under the Loro Piana name features only the finest in cashmeres and the rarest in woolens. Leather goods, accessories and very high-end gifts round out the brand's product line. From supply to distribution, incorporating the design and production...

  • Page 86
    ...brand offering a collection of ready-to-wear clothing, leather goods, shoes and accessories. EMILIO PUCCI - Since 1947 - ROSSIMODA - Since 1942 - Rossimoda, an Italian company founded in 1942 which joined the LVMH Group in 2003, specializes in the development and the manufacturing of luxury women...

  • Page 87
    ... and creative personality are perfectly aligned with Emilio Pucci's contemporary Italian spirit. 1988. In 1995, Hubert de Givenchy retired after 43 years of fashion design. Givenchy is an international luxury brand, known worldwide for its Haute Couture collections, ready-to-wear fashions for men...

  • Page 88
    .... Today, Marc Jacobs is present in more than 50 countries with a network of 270 boutiques. In 1984, Marc Jacobs and Robert Duffy founded Marc Jacobs International based on three very simple concepts: enormous creativity, a constant commitment to quality and values in line with the trends of the time...

  • Page 89
    LVMH 2013 - Maisons FASHION & LEATHER GOODS After years of producing the Marc Jacobs women's collections exclusively, the company now offers two lines of ready-to-wear, bags, shoes and accessories for men and women (glasses, watches...), Marc Jacobs and Marc by Marc Jacobs, as well as a children...

  • Page 90

  • Page 91
    ... hundred experts are engaged in designing and developing enhancements for each new Dior product. vated masculinity with fragrances including Pi, Play and, most recently, Gentlemen Only. Under the inspired creative direction of Nicolas Degennes, Givenchy cosmetics meld novel colors and contemporary...

  • Page 92
    ... and ready-to-wear clothing, launched its first perfume for women L de Loewe. Initially intended for exclusive sale in the brand's own stores, the perfume was so successful that sales were expanded to all perfume retail circuits. This success encouraged Loewe to develop its perfume segment, and...

  • Page 93
    ... place that trains the makeup artists of tomorrow. Today, the company's mission is to share the art and passion of makeup with artists and customers in the different Academies around the world but also in various points of sales thanks to the Make Up Schools corners. The product line is very broad...

  • Page 94
    ... a chord with all the esthetic codes, elegance and values of the Fendi brand: the Forever buckle of the Baguette bag, the splendor of the styles and materials, and unbridled creativity. Crafted by François Demachy, LVMH Director of perfume fragrance development, and by perfumer Delphine Lebeau...

  • Page 95

  • Page 96
    ... developed designs for interchangeable parts and an automated manufacturing process to support the careful craftsmanship that went into creating and finishing each watch. Still today, the Manufacture is in a constant state of renewal as the site is currently under renovation. The pioneering spirit...

  • Page 97
    ...innovative Bulgari style gained success within the movie world. With the growth of its reputation abroad, in the 1970s Bulgari began its first phase of global expansion by opening stores in New York, Geneva, Monte Carlo and Paris. In 1977, Bulgari launched the celebrated BVLGARI BVLGARI watch, now...

  • Page 98
    LVMH 2013 - Maisons WATCHES & JEWELRY MONTRES DIOR - Since 1975 - Like every other collection in the House, the Dior timepiece collections first see the light of day in Paris, in the Dior design studios on the avenue Montaigne. In total osmosis with the Dior Maison and backed by the expertise ...

  • Page 99
    ... independently managed company, it is a 50/50 joint venture between De Beers SA, the world leader in the production and sale of rough diamonds, and LVMH. De Beers combines its exceptional expertise anchored in a rich heritage with a contemporary design aesthetic. Through its wondrous creations, De...

  • Page 100
    ... how large their business would ultimately become. Today, DFS Group, whose majority shares were acquired by LVMH in 1997, is the world leader in the sale of luxury products to international travelers. It has two distinct distribution models: the downtown luxury department stores called "DFS Galleria...

  • Page 101
    ... that creates an entertaining shopping experience and brings high-end beauty care and fragrances within every consumer's reach. Sephora currently operates more than 1,480 stores in 31 countries worldwide where customers enjoy the freedom to choose from a broad range of products at their leisure...

  • Page 102
    ... production equipment, expert craftsmanship that strives for perfection, unrivalled experience in boat-building architecture, and close partnerships with the world's top designers. These are the strengths that can transform a customer's dream, no matter how big, into reality. Today, Royal Van...

  • Page 103
    ... tourists - from everywhere in France and abroad. The Jardin d'Acclimatation is open 365 days a year and welcomes an annual total of 1.5 million visitors. LA SAMARITAINE - Since 1870 - Founded in 1870 by Ernest Cognacq and his wife Louise Jaÿ, a former leading fashion sales consultant at Le Bon...

  • Page 104
    ... editorial content, plus a new digital offer on LesEchos.fr. Today, Groupe Les Echos is France's leading economic and financial press group, boasts an extensive portfolio of brands: - Media: Les Echos, the portal for LesEchos.fr, Enjeux-Les Echos, Investir, and Capital Finance in the economic and...

  • Page 105
    ... of services, LVMH Hotel Management aims at answering to a strong demand for an innovative offer in the luxury hospitality sector. Conceived with creative passion, Cheval Blanc invites a new generation of luxury leisure travelers to experience some of the finest pleasures in life. Its collection of...

  • Page 106
    ... libraries of LVMH and Group's Maisons. This book was printed on paper from sustainably managed forests, certified FSC (Forest Stewardship Council). LVMH - 22, avenue Montaigne - 75008 Paris - France Tel.: 33 (0)1 44 13 22 22 - Fax: 33 (0)1 44 13 22 23 - www.lvmh.fr 32 Design and production:

  • Page 107

  • Page 108

  • Page 109
    LVMH 2013 - ANNUAL REPORT SUSTAINABLE DEVELOPMENT

  • Page 110

  • Page 111
    ... OF HUMAN RESOURCES PROTECTING THE ENVIRONMENT CORPORATE SPONSORSHIP TO SUPPORT CULTURE, YOUTH AND HUMANITARIAN ACTION Luxury is born from invention and the hand of man. It works to exalt nature in its purest and most beautiful form. Sustainable development is inseparable from LVMH's strategy. "As...

  • Page 112
    ...bespoke events centered on key themes such as retailing, engineering, and design. Groups of students got to experience an exceptional day in the world of our brands. Students visited stores, workshops and unique venues such as the work site of the Louis Vuitton Foundation for Contemporary Art, heard...

  • Page 113
    ...* BY BUSINESS GROUP 6% Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities 28% TRAINING PASSING ON THE "KNOW-HOW" OF OUR MAISONS: A DAILY STRATEGIC CHALLENGE To develop the passion and excellence of a luxury brand, the LVMH Group and...

  • Page 114
    ... major training campaign dedicated to skincare in a variety of stores around the world. A total of 740 beauty specialists were trained in the innovative, inter-cultural tool Secret Dior Beauty to increase their skincare expertise and their ability to offer an exclusive customer experience. TAG Heuer...

  • Page 115
    ... sharing in the retail segment. A total of 70 retail managers from 15 different brands took part in these sessions, which taught them how to position their very high standards of quality in this strategic market. SHARING BEST MANAGEMENT PRACTICES Every year, LVMH expands its training offer. In 2013...

  • Page 116
    ... seven different nationalities. This variety of experience constitutes yet another facet of the LVMH talent pool. Two thirds of key positions are filled internally, 40% of them by managers from another Group Maison. The Human Resources department helps staff advance in their careers by distributing...

  • Page 117
    ... range of ergonomic-related initiatives have been implemented at production sites and in stores. Louis Vuitton has embarked on a comprehensive healthcare initiative that combines a healthcare policy, work organization, the physical work environment and a training plan for its manufacturing workshops...

  • Page 118
    ...rm to conduct discrimination reviews of the job offers published on its website. Since 2011, the "Recruiting Without Discrimination" training program has been mandatory for all human resources managers involved in recruitment. A module for the Italian Maisons is currently being developed. LVMH also...

  • Page 119
    ... local development through their operations and helping to save jobs. In 2013, Louis Vuitton showcased its leatherwork expertise during a series of demonstrations in a number of countries outside France, including Finland, Germany and Russia, by its top craftsmen from its French workshops. The Group...

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    ... BREAKDOWN OF AUDITS BY REGION 33% Europe 55% Asia 5% North America 7% Others Perimeter: Wines & Spirits, Louis Vuitton, Berluti, Donna Karan, Fendi, Givenchy, Kenzo, Loewe, Marc Jacobs, Céline, Thomas Pink, Bulgari, Chaumet, Montres Dior, Fred, Hublot, TAG Heuer, Zenith, De Beers, Acqua di...

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    ... (versus 37% in 2013 and 26% in 2010). The commitment has been signed by Krug, Moët & Chandon, Hennessy, Veuve Clicquot, Glenmorangie, Estates & Wines, Louis Vuitton Malletier, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Christian Dior Couture, Loewe, LVMH Fragrance Brands, Givenchy, Acqua di Parma...

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    .... In 2012, environmental protection reached a new milestone when the LIFE - "LVMH Indicators for the Environment" - program became an integral part of the Group's development strategy. On the 20th anniversary of environmental commitment at LVMH, Group Managing Director Antonio Belloni announced the...

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    LVMH 2013 - Environment THE MAIN CHALLENGES OF EACH BUSINESS GROUP Wines & Spirits Saving energy resources • Production of packaging. • Distillation. and combatting • Transport of product climate change shipments. Fashion & Leather Goods • Lighting and air conditioning in stores. • ...

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    ... (Chief Financial Officer of Louis Vuitton) shared their vision of how sustainable development can drive management and corporate culture. Outside guests included Eva Herzigova, Parfums Christian Dior ambassador, who talked about her commitment to sustainable development and collective awareness...

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    LVMH 2013 - Environment THE DYNAMICS OF THE LIFE PROGRAM The "LIFE" program has been designed to include the environment in managerial processes to a greater extent, facilitate the development of new management tools, and capitalize on the developments and enhancements arising from the Maisons ...

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    ... involved in design, marketing, purchasing, development and after-sales service; reducing packaging weight and volume; distributing ecodesigned overalls made from organic cotton and recycled polyester to workshops. In the Fashion & Leather Goods business group, leather sourcing is a strategic issue...

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    ...tests to certify that products placed on the market contain no potentially harmful substances. Maison experts meet regularly as part of a REACH working group to plan for future phase-outs and to share best practices. A person is appointed at group level to run this network and help the Maisons with...

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    ... manage the carbon footprint of goods shipped from its production plant in Madrid to international destinations. Similarly, in January 2013 Louis Vuitton developed a tool to calculate CO2 emissions and produce for each journey made a real-time report of emissions related to the shipping of leather...

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    LVMH 2013 - Environment HÉLIOS In 2013, the LVMH Group officially opened its new research center, Hélios, at Saint-Jean-de-Braye. Designed by architectural firm Arte Charpentier, this triangular-shaped center is composed of six buildings with a large central atrium. The state-of-the-art building...

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    ... for ready-to-wear and leather products. In the case of Louis Vuitton, the after-sales service department and the product quality and development department are working together even more closely to plan for a product's reparability from the design stage. Of the after-sales service provided annually...

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    LVMH 2013 - Environment ENVIRONMENTAL PERFORMANCE INDICATORS WATER CONSUMPTION BY BUSINESS GROUP (Process requirements in m3) 2013 2012 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities TOTAL 1,484,636 611,851 156,408 28,899 293,...

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    ... major humanitarian causes. CULTURE, HERITAGE AND CONTEMPORARY DESIGN The first component of the LVMH corporate sponsorship program focuses on preserving artistic heritage in France and worldwide through the restoration of historic monuments, the expansion of the collections of leading museums...

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    ... in 2013. In the fall of 2014, a broad range of guests from France and around the world will be invited to discover the remarkable architecture of Frank Gehry for the Louis Vuitton Foundation. The building brought to life by the American architect will house the Foundation's permanent collections as...

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    ... Dubuffet, LVMH, Sophie Carre - Fondation Louis Vuitton - LVMH, Florent Buonomano/Havas Picture libraries of LVMH and Group's Maisons. This book was printed on paper from sustainably managed forests, certified FSC (Forest Stewardship Council). LVMH - 22, avenue Montaigne - 75008 Paris - France Tel...

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    LVMH 2013 - ANNUAL REPORT FINANCE

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    ... HIGHLIGHTS FINANCIAL HIGHLIGHTS BY BUSINESS GROUP THE WORLD'S LEADING LUXURY PRODUCTS GROUP A unique portfolio of over 60 PRESTIGIOUS BRANDS An international distribution network of 3,384 STORES More than 110,000 EMPLOYEES in over 70 COUNTRIES REVENUE of 29.1 BILLION EUROS in 2013 04 06 08 10...

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    ... AND SHAREHOLDER STRUCTURE CHANGES IN THE LVMH SHARE PRICE Stock markets continued to rise in 2013 in response to more positive signs on the economic front, especially in Europe, as well as ongoing highly accommodative monetary policies. In Japan, in particular, the central bank supported...

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    ...lvmh.fr - www.lvmh.com CAPITAL STRUCTURE (Euroclear France survey on bearer shares at December 2013) 46.5% Arnault Family Group 1.4% Bulgari Family DISTRIBUTION OF CAPITAL AND VOTING RIGHTS 1.5% Treasury stock 32.6% Foreign (at December 31, 2013) Arnault Family Group Other TOTAL Number of shares...

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    ...% 21% 14% Assets Liabilities PROFIT FROM RECURRING OPERATIONS (EUR millions) Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities and eliminations TOTAL 2013 1,370 3,140 414 375 901 (179) 6,021 % of revenue OPERATING INVESTMENTS (EUR...

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    ...BY BUSINESS GROUP (in %) 14% 34% 13% 10% 29% Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing and Other activities 2013 REVENUE BY GEOGRAPHIC REGION OF DELIVERY (in %) 11% NUMBER OF STORES 2013 2012 3,384 3,204 3,040 France 19% Europe (excl...

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    ... markets FASHION & LEATHER GOODS (EUR millions) Revenue Profit from recurring operations Operating investments 2013 9,882 3,140 629 2012 9,926 3,264 579 2011 8,712 3,075 437 2013 REVENUE BY GEOGRAPHIC REGION OF DELIVERY (in %) 8% France 20% Europe (excl. France) 20% United States NUMBER...

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    ...% France 32% Europe (excl. France) 12% United States REVENUE BY PRODUCT CATEGORY (in %) 5% Japan 45% 37% 18% 24% Asia (excl. Japan) Perfumes Cosmetics Skincare products 14% Other markets WATCHES & JEWELRY (EUR millions) Revenue Profit from recurring operations Operating investments 2013...

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    LVMH 2013 - Finance The consolidated financial statements presented in the following pages are abbreviated. CONSOLIDATED BALANCE SHEET ASSETS (EUR millions) Brands and other intangible assets Goodwill Property, plant and equipment Investments in associates Non-current available for sale fi...

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    ... LIABILITIES AND EQUITY (EUR millions) Share capital Share premium account Treasury shares and LVMH-share settled derivatives Cumulative translation adjustment Revaluation reserves Other reserves Net profit, Group share Equity, Group share Minority interests 2013 152 3,849 (451) (8) 3,900 15...

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    ... fixed assets. Other non-current assets increased by 1.0 billion euros, mainly due to an increase in the value of the investment in Hermès International, following the change in share price (263.50 euros as of December 31, 2013, compared to 226.30 euros at year-end 2012). At year-end 2013, the...

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    ...euros. Cash and cash equivalents and current available for sale financial assets totaled 3.4 billion euros at the end of the fiscal year, up 1.1 billion euros from the 2.3 billion euros at year-end 2012. As of year-end 2013, the Group's undrawn confirmed credit lines amounted to 4.4 billion euros...

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    ... NET PROFIT BEFORE MINORITY INTERESTS Translation adjustments Tax impact Change in value of available for sale financial assets Amounts transferred to income statement Tax impact 963 (16) (35) 912 (27) (14) (6) (47) 1,634 (38) (116) 1,480 Change in value of hedges of future foreign currency...

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    ... by higher sales volumes and a sustained policy of price increases in line with the ongoing value-creation strategy. Demand remained strong in Asia and the United States. China is still the second largest market for the Wines and Spirits business group. Fashion and Leather Goods revenue was up...

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    ... volume growth and a sustained policy of price increases. The operating margin as a percentage of revenue rose 3 points for this business group to 33%. Fashion and Leather Goods posted profit from recurring operations of 3,140 million euros, down 4%. Louis Vuitton maintained its very high level of...

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    ...sale of non-current available for sale financial assets Impact of purchase and sale of consolidated investments 2,958 (197) 38 (2,158) 2,474 (131) 36 (45) 2,177 (518) 17 (785)(1) NET CASH FROM (used in) FINANCIAL INVESTMENTS III. TRANSACTIONS RELATING TO EQUITY Capital increases of LVMH Capital...

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    ... increase in inventories, driven by growth in volume of the Group's business activities and number of stores, was mainly related to Wines and Spirits (the champagne houses in particular), Fashion and Leather Goods, and to a lesser extent Selective Retailing. The remaining change in working capital...

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    ... 3,848 (414) 342 (350) COMPREHENSIVE INCOME Stock option plan and similar expenses (Acquisition)/disposal of treasury shares and LVMH-share settled derivatives Exercise of LVMH share subscription options Retirement of LVMH shares Capital increase in subsidiaries Interim and final dividends paid...

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    LVMH 2013 - Finance Revaluation reserves Available for sale financial assets Hedges of future foreign currency cash ï¬,ows Vineyard land Employee benefit commitments Net profit and other reserves Total equity Group share Minority interests Total 1,943 912 118 18 758 188 (88) 51 17,765 ...

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    ... - Hennessy, Olivier Arnaud/Rose Paris. This book was printed on paper from sustainably managed forests, certified FSC (Forest Stewardship Council). LVMH - 22, avenue Montaigne - 75008 Paris - France Tel.: 33 (0)1 44 13 22 22 - Fax: 33 (0)1 44 13 22 23 - www.lvmh.com 20 Design and production:

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