LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTCPK:LVMHF) Q4 2022 Results Conference Call January 26, 2023 ET Company Participants Bernard Arnault - Chairman and CEO Jean-Jacques Guiony - CFO Conference Call Participants Antoine Belge - Exane BNP Paribas Edouard Aubin - Morgan Stanley Luca Solca - Bernstein Louise Singlehurst - Goldman Sachs Natasha Brilliant - Credit Suisse Bernard Arnault Good evening. I'm delighted to be with you again. I think, it's two years now, Mr. Guiony, that we were not ...

Financial Performance - LVMH's revenue reached €367 billion, a 21% increase compared to H1 2021[5] - Profit from recurring operations amounted to €102 billion, up 34% versus H1 2021, with an operating margin of 279%[5] - Operating free cash flow was €40 billion, a decrease of 24% compared to H1 2021[5] - Group share of net profit increased by 23% to €6532 billion compared to H1 2021[71] Business Group Highlights - Wines & Spirits revenue increased by 23%, with profit from recurring operations up by 25%[13] - Fashion & Leather Goods revenue rose by 31%, and profit from recurring operations increased by 33%[21] - Perfumes & Cosmetics revenue grew by 20%, but profit from recurring operations decreased by 1%[28] - Watches & Jewelry revenue increased by 22%, with profit from recurring operations up by 26%[38] - Selective Retailing revenue increased by 30%, and profit from recurring operations increased significantly by 181%[46] Regional Performance - Strong revenue growth was observed in Europe, Japan, and the United States[7] - Asia (excluding Japan) was impacted by health restrictions in China during Q2[9] - The United States accounted for 27% of total revenue, compared to 25% in H1 2021[60] - Asia (excluding Japan) contributed 32% of total revenue, down from 38% in H1 2021[60]

LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTCPK:LVMHF) Q2 2022 Results Conference Call July 26, 2022 12:00 PM ET | --- | |----------------------------------------------------------------------| | | | Company Participants | | Chris Hollis - Head of Investors Relations Jean-Jacques Guiony - CFO | | Conference Call Participants | | Luca Solca - Bernstein | | Edouard Aubin - Morgan Stanley | | Louise Singlehurst - Goldman Sachs | | Dana Telsey - Telsey Advisory Group | | Antoine Belge - Exane BNP ...

LVMH Moet Hennessy Louis Vuitton Société Européenne (OTCPK:LVMHF) Q1 2022 Earnings Conference Call April 12, 2022 9:00 AM ET Company Participants Chris Hollis - Director of Financial Communications Jean-Jacques Guiony - CFO Conference Call Participants Antoine Belge - Exane BNP Paribas Luca Solca - Bernstein Oliver Chen - Cowen Zuzanna Pusz - UBS Thomas Chauvet - Citi Dana Telsey - Telsey Advisory Group Edouard Aubin - Morgan Stanley Piral Dadhania - RBC Rogerio Fujimori - Stifel Liwei Hou - CICC Paola Carb ...

Financial Data and Key Metrics Changes - In 2021, the company achieved revenue of nearly €64 billion and profit from recurring operations exceeding €17 billion, marking a significant recovery from the pandemic-affected year of 2020 [3][37] - Operating free cash flow surpassed €13 billion, with an operating margin of 26% [37][55] - The company reported a net profit of €12 billion, up 68% compared to 2019, indicating a strong financial performance [55] Business Line Data and Key Metrics Changes - Fashion & Leather Goods experienced remarkable growth, with a 42% increase compared to 2019 and 51% growth in Q4 alone [41][49] - Wines & Spirits saw almost double-digit growth, driven by strong demand for champagne and cognac, particularly in the U.S. and China [49] - Perfumes & Cosmetics returned to pre-pandemic levels, while Watches & Jewelry showed a 7% organic growth compared to 2019, boosted by the integration of Tiffany [50][56] Market Data and Key Metrics Changes - The U.S. market accounted for 26% of sales, with a 25% increase compared to 2019, while Asia represented 35% of sales, up five percentage points over two years [42][43] - Japan experienced an overall growth of 5% for the year, with significant acceleration in the second half [44] - Europe faced challenges, with a gradual recovery noted in Q4, but still below pre-crisis levels [46] Company Strategy and Development Direction - The company emphasizes a long-term view, focusing on brand desirability and customer relationships, particularly with local customers in the absence of international tourists [74][82] - There is a commitment to sustainability, with goals for recycling materials and biodiversity initiatives [7][8] - The company remains open to future acquisitions but is not in a rush, focusing on nurturing existing brands [87][89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to weather inflationary pressures, citing flexibility in pricing and strong demand for products [33][34] - The outlook for 2022 appears promising, with growth trends continuing into January [32] - Concerns about inflation and supply chain issues were acknowledged, but management believes these challenges can be managed effectively [33][34] Other Important Information - The integration of Tiffany has been successful, contributing significantly to revenue and profit despite the flagship store being closed for renovations [23][94] - The company has made significant strides in corporate social responsibility, with a focus on employee well-being and diversity [6][7] Q&A Session Summary Question: Growth drivers in U.S. and European markets - Management noted that U.S. and European customers are becoming more selective, prioritizing brands that offer cultural value beyond fashion [72][74] Question: Sustainability of margin growth - Management indicated that current margin levels are expected to be sustainable moving forward [76] Question: Factors affecting Wines & Spirits margins - The cyclicality of demand and marketing expenses were cited as reasons for margin fluctuations in the Wines & Spirits segment [78] Question: Implications of China's market being closed - Management observed that Chinese customers are purchasing more domestically, even without international travel, indicating a shift in consumer behavior [81][82] Question: Concerns about price increases - Management acknowledged the need to balance price increases with demand, emphasizing that high-quality products can command higher prices [84][86] Question: Future acquisitions and brand management - Management stated that while they are open to acquisitions, they focus on nurturing existing brands and do not frequently dispose of them [88][89] Question: Impact of Virgil Abloh's passing - Management expressed that the loss of Virgil Abloh was a significant shock, and they are currently in mourning while considering future creative directions [90]

Financial Data and Key Metrics Changes - The company reported a 53% rise in organic revenue compared to H1 2020 and an 11% rise compared to H1 2019, primarily driven by the Fashion & Leather and Wines & Spirits businesses [43][44][46] - Profit from recurring operations increased by 44% to €7.6 billion, with operating margins reaching 26.6%, up 5.5 points compared to H1 2019 [47][49] - The group's share of net profit reached €5.3 billion, marking a record for the first half [48] Business Line Data and Key Metrics Changes - **Wines & Spirits**: Revenue reached €2.7 billion, a 44% increase on an organic basis versus H1 2020, and a 12% rise compared to H1 2019 [6][14] - **Fashion & Leather Goods**: Revenue was €13.9 billion, an 81% increase on an organic basis versus H1 2020, and a 38% rise compared to H1 2019 [14][15] - **Perfumes & Cosmetics**: Revenue rose to €3 billion, a 37% increase on an organic basis versus H1 2020, but a slight decline of 3% compared to H1 2019 [23][24] - **Watches & Jewelry**: Revenue increased to €4 billion, a 71% organic revenue increase versus H1 2020, with profit from recurring operations rising to €794 million [30][31] - **Selective Retailing**: Revenues rose to €5 billion, a 12% increase on an organic basis versus the same period last year [36][37] Market Data and Key Metrics Changes - The geographic performance showed positive growth across all regions compared to 2020, with notable improvements driven by the U.S. and Asia [45] - The company experienced strong growth with American clients, while the growth with Chinese clients was in line with overall brand growth [62][63] Company Strategy and Development Direction - The integration of Tiffany is progressing well, contributing positively to the Watches & Jewelry segment [5][31] - The company plans to continue investing in marketing and distribution strategies, particularly in the second half of the year [70][71] - There is a focus on maintaining high margins while increasing the cost base to support growth initiatives [70][74] Management's Comments on Operating Environment and Future Outlook - Management noted that demand remains very strong across all brands, with no signs of a change in consumer behavior, particularly in China [64][65] - The company is optimistic about the second half of the year, despite potential challenges in certain segments like DFS and Belmond [81][82] Other Important Information - The company announced an interim dividend of €3 per share to be paid on December 2, 2021 [54] - The net debt reached €15.3 billion at the end of June, primarily due to the acquisition of Tiffany [55] Q&A Session All Questions and Answers Question: Product availability and constraints in the business - Management indicated that while there are some production capacity constraints, particularly in the Wines & Spirits division, overall operations are running smoothly without major bottlenecks [60][61] Question: Growth by nationality and recovery patterns - The growth with Chinese clients was strong but consistent with overall brand growth, with significant advances also seen with American clients [62][63] Question: Reinvestment readiness and profitability outlook - Management confirmed readiness to reinvest in H2, with expectations of maintaining margins despite increased costs for marketing and distribution [70][71] Question: Profit trajectory in the second half - The aim for DFS is to break even, but challenges remain due to limited recovery in certain markets [81][82] Question: Sephora's profitability and concession model - Sephora was profitable last year, and the concession model is not feasible within its store format [84][87] Question: Tiffany's performance and management changes - The strong performance at Tiffany is attributed to both favorable market dynamics and changes implemented by the new management team [85]

LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTCPK:LVMHF) Q4 2020 Earnings Conference Call January 26, 2021 12:00 PM ET Â Company Participants Jean-Jacques - CFO Chris Hollis - Head of IR Conference Call Participants Luca Solca - Bernstein Edouard Aubi - Morgan Stanley Antoine Belge - HSBC Louise Singlehurst - Goldman Sachs Thierry Cota - Societe Generale Omar Saad - Evercore Dana Telsey - Telsey Advisory Group Robert Williams - Business and Fashion Operator Ladies and gentlemen, welcome to the L ...

Financial Performance - LVMH's revenue for 2020 was 44651 million euros, a decrease of 17% compared to 53670 million euros in 2019[32] - Profit from recurring operations decreased by 28% from 11504 million euros in 2019 to 8305 million euros in 2020[34, 37] - Net profit before minority interests decreased by 36% from 7782 million euros to 4955 million euros[34] - Group share of net profit decreased by 34% from 7171 million euros to 4702 million euros[34] Business Group Performance - Wines & Spirits revenue decreased by 15% to 4755 million euros, with organic change of -14%[10] - Fashion & Leather Goods revenue decreased by 5% to 21207 million euros, with organic change of -3%[13] - Perfumes & Cosmetics revenue decreased by 23% to 5248 million euros, with organic change of -22%[16] - Watches & Jewelry revenue decreased by 24% to 3356 million euros, with organic change of -23%[19] - Selective Retailing revenue decreased by 31% to 10155 million euros, with organic change of -30%[22] Regional Performance - Asia (excluding Japan) saw a -4% organic revenue change in 2020, but showed strong recovery with +13% in Q3 and +21% in Q4[29] - The United States experienced a -24% organic revenue change in H1 2020, improving to -2% in Q4, resulting in -13% for the full year[29] - Europe experienced a -28% organic revenue change in 2020[29] Key Highlights - Strong recovery in Asia, particularly in China, with double-digit growth in the second half of 2020[5] - Double-digit organic revenue growth for Fashion & Leather Goods in the last two quarters of 2020[5] - Finalization of the agreement with Tiffany & Co[5]

Financial Data and Key Metrics Changes - The company reported a 27% drop in revenues for the first half of 2020, with all business segments experiencing negative impacts, particularly in travel retail-intensive sectors like jewelry and distribution [44][63] - The gross margin decreased by 430 basis points, attributed to depreciation of unsold products and under absorption of fixed costs in manufacturing [48][49] - Profit from recurring operations fell 68% to €1.671 billion, with significant losses reported in selective distribution [56][63] Business Line Data and Key Metrics Changes - Wines and Spirits revenue decreased by 20%, with organic revenue down 23%, while profit from recurring operations fell 29% to €551 million [7][9] - Fashion and Leather Goods revenue was €7.99 billion, a decline of 23%, with profit from recurring operations down 46% to €1.77 billion [16][44] - Perfumes and Cosmetics revenue fell to €2.3 billion, a decline of 29%, resulting in a loss of €30 million [22][25] - Watches and Jewelry revenue dropped 38% to €1.3 billion, with a reported loss of €70 million [27][30] - Selective Retailing revenue declined 32% to €4.84 billion, with a loss of €308 million [33][36] Market Data and Key Metrics Changes - The geographical performance showed a stark contrast, with Europe, Japan, and the U.S. experiencing drops of 40% to 50% in Q2, while Asia saw a significant rebound [47][44] - In China, the Fashion & Leather business was flattish in Q2, with strong growth for brands like Dior and Vuitton [79][80] Company Strategy and Development Direction - The company is focused on maintaining value creation strategies while navigating uncertain conditions, emphasizing product innovation and increasing online sales [14][15] - There is a commitment to environmental sustainability initiatives across all business groups [15][41] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about recovery trends, particularly in local markets, while acknowledging ongoing challenges in travel retail [72][74] - The company is prepared to adapt to changes in the operating environment and is focused on controlling costs [71][74] Other Important Information - The company has undertaken numerous initiatives to combat COVID-19, including adapting production facilities for essential supplies [37][41] - The company remains committed to diversity and inclusion within its workforce [38][40] Q&A Session Summary Question: Operating deleverage and trading outlook - Management indicated uncertainty regarding operating deleverage and emphasized the need to manage costs effectively while preparing for recovery [68][70] Question: Recent trends in China and the U.S. - Management noted strong performance in China, particularly for key brands, while the U.S. showed positive recovery trends in June [79][81] Question: Gross margin and depreciation concerns - Management acknowledged a cautious approach to depreciation due to unsold seasonal products and the impact of store closures [82][84] Question: Tiffany acquisition and potential duty increases - Management confirmed that antitrust filings for the Tiffany acquisition are underway, with no clear timeline for completion [91][92] Question: Digital innovation and customer engagement - Management highlighted ongoing investments in digital capabilities and CRM to meet evolving customer expectations [100][106]

LVMH JULY 27, 2020 2020 FIRST HALF Louis Vuitton RESULTS | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...