Lanvin Group Holdings Limited Ordinary Shares

Thank you for joining us and welcome to the LongVon Group's fiscal year 2023 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. Now, please take a moment to review the disclaimers. During this presentation, the company will be making certain forward-looking statements, including but not limited to future performance and industry outlook. Forward-looking statements are inherently subject to risks, uncertainties, and other factors, and they are not guarantees of performance. For today's presentation, I would like to introduce Eric Chan, CEO of L'Enfant Group, David Chan, Executive President and CFO of L'Enfant Group, Satarsa Shukla, Deputy CEO of L'Enfant Brand, and Sylvia Azali, the CEO of Wolford, and Andy Liu, the CEO of St. John. With that, I would like to turn it over to Mr. Eric Chan to start the presentation.

Thank you for joining us today. I'm Eric Chan, the CEO of Non-Buy Group. Since joining the group in 2023, I've had the chance to meet some extraordinary people. I've always said the managers drive companies and their teams drive results. I'm thoroughly impressed by the effort of our managers and our teams to maintain the growth and continue to forge the path of profitability in a challenging market environment. For 2023, we contributed our trend of growth by achieving revenue of €426 million compared to €422 million for 2022, representing a growth of 1%. Our three-year compound annual growth since 2020 was 24%, with all our brands maintaining double-digit growth over the three-year period. Our growth profit for the year increased to €251 million with our margin improved to 59% versus 56% in 2022. We continue to optimize our cost structure in 2023 with multiple initiatives and expect improving results throughout 2024. In 2023, our brand continued to raise awareness and stock brand hit with targeted marketing campaign powerful collaborations and effective service offering. We believe luxury fashion is not just a product, but an experience, a lifestyle, if you will. As such, we have focused on creating an ambiance for our clients that goes beyond the point of sales to the experience of living with our brands. We stirred those emotions into our clients in 2023, and in parallel, we made significant progress in enhancing our delivery vehicle from improving our retail footprint to the kickoff of our U.S. digital platform. Over the past few months, I have visited many of our new locations. With each visit, I find myself increasingly excited about the growth of our retail base and the opportunities that exist to expand it. The opening of our first Middle East long-term project in Renard could not have come better, a better time with the brand heat that has been generating throughout the Longfans product launch and LongfanNet. The regions actually share the love of our brands that I do, and I feel there is much we can accomplish in the Middle East. Therefore, I am pleased to say that we are developing with another two of our brands to introduce new products in the Middle East in 2024. Moreover, as David will This test later, in 2023, we continue to leverage our strategic partnership ecosystem. We have partnered with the best in-class operations of distribution, retail, product development, and materials sourcing around the world. We continue to seek new strategy partners to develop our ecosystem and improve our products offerings and service. All of these results drove our financial results, as you will hear. Our financial performance continued to improve in 2023. I was most impressed by our residents during the challenge year. We were able to adapt to changing market environments and changing trends. Although headwinds may persist in 2024, I'm confident in our ability to stay on track and to achieve our goals. With that, I would like to turn it over to our CFO, David Chen, to go through some of our details.

Thank you, Eric. And I'd like to thank everybody for joining us today. I'm David Chan, the Executive President and CFO of Lamang Group. Before we get into the results, I want to make a few high-level points. I think back to the beginning of Lamang Group and our journey and how far we've come. What sometimes gets forgotten is that we have embarked this in 2018. We were starting a new platform with a distinctive concept of being an Asia-based global luxury group. We were, in essence, a startup. Since 2018, we have put together a strong ecosystem of strategic partners that help us with production, distribution, and development. Furthermore, we have built an energetic platform that each of the brands contributes to and benefit from. We have also built a backbone of the group, a shared service that benefits all our brands. Most importantly, we have put together a resilient group of managers and team members that continue to deliver growth regardless of the challenges they face. In 2023, we continue to build our platform by delivering growth in challenging environments, transitioning the creative strategy at our flagship brand and further driving margin improvements. Throughout 2023, we continue to make changes and add in the elements necessary to reach profitability. Among our 2023 achievements, we established a fabric center that jointly created with our strategic partner that is a world-class fabric development company. Additionally, We started the U.S. digital platform to enhance our e-commerce offering and logistics in North America for our brands. All that to say, when I review our group's 2023 achievements and results, it gave me confidence that we remain on track to reach our profitability goals. With that, I'd like to discuss page four and five of our presentation. The group grew its revenue despite macroeconomic headwinds. A key highlight was the Lamont brand's ability to improve its growth trend in the second half of 2023, while market conditions grew steadily worse. Additionally, we showed a strong growth in the APAC region with nearly 8% growth and greater China growing by 9%. One of the key pieces of our D2C channel, e-commerce, posted a gain of 3%, with a group leveraging this U.S. digital platform and indication that our digital strategy is paying off. Furthermore, we continue to improve our retail footprint and improve store productivity, putting our fleet of doors in the best position they have ever been in to facilitate our expansion strategy. As an example, another highlight in 2023 was the opening of Lambon's first Middle East boutique in Ria. We were extremely excited to open our first location and region and have plans to open additional boutiques for all our brands in 2024. Another key achievement in 2023 was the reacquisition of Lombon Brand's Japan license and trademarks. The strength of Lombon in Japan is a testament to the power of value of the brand. We're excited for the opportunity to drive further development of Lombon Brands in Japan. Overall, the story of 2023 for Lombon Group was about our persistence in delivering growth and improving profitability. The overall growth for the group and improvement in the quality of our revenue allow us to improve our margin, with gross profit margin improving by over 250 basis points, contribution profit margin improving by 255 basis points, and adjusted EBITDA margin increasing by near 200 basis points. Our brands made significant progress in 2023, and with that, I'd like to turn to page 12 and introduce Siddhartha Shukla, the Deputy CEO of Lanvin Brand, and discuss some of Lanvin's highlights.