LVMH Moët Hennessy - Louis Vuitton

Ladies and gentlemen, good afternoon and thank you for joining today's conference call. I'm Rodolphe Feuzan, Director of Financial Communications at RVMH and with me is Cecile Cabanis, our Chief Financial Officer. Cecile will start by taking you through the key highlights of the first quarter and I will then comment our performance by business group, after which Cecile will conclude and will be happy to take your questions. As a reminder, certain information to be discussed on today's call is forward-looking, subject to important risk uncertainties that could cause actual results to differ materially. For these, I refer you to the safe harbor statement included in our press release and on slide 2 of our presentation. Turning now to our announcement, our release was issued a short while ago in French and English and is available on the website lvmh.com as are the slides for the call. Let's now move on to today's topic, our first quarter 2026 figures and passing over to Cecile who will comment the key highlights for this quarter.

Thank you, Rodolphe, and thank you all for joining our Q1 results call, starting with a few comments on the first three months of the year on slide three. As you see on the chart, LVMH continued to grow organically in Q1 with improved trends across most businesses. The quarter was impacted by the ongoing conflict in Middle East, which had a tangible incidence on demand in the region in March, after a good start of the year, and this accounting for a negative one percentage point on the growth of the quarter, so excluding this impact, organic growth would have been plus 2%. On Middle East, I would like to thank all the teams and the partners locally, who had an incredible reaction, protecting our teams and consumers, which is our priority, and helping business to continue. Elsewhere, Q1 saw solid growth in China and Asia at large, as well as in the United States. Rodolphe will comment division's performance in more details, but in a nutshell, I would highlight for the quarter a good Chinese New Year, a good response to product innovation and creative renewal in fashion and leather goods, and particularly a good start for Jonathan Anderson products at Dior, a good performance of our star brands in beauty, an excellent performance of our jewelry maisons, with Tiffany's transformation progressing very well and another good quarter for Bulgari, and finally a solid momentum across markets at Sephora. Let's move to the revenue bridge for the three first months of the year on slide four. Group revenues reached 19.1 billion euros in Q1, up 1% on an organic basis, down 6% on a reported basis. The euro strength against key currency generated a negative 7% currency impact in Q1, which continued to have also an unfavorable impact for tourist sales, especially in Europe. Slide 5 details the geographic breakdown of revenues in euros. Asia and Europe both grew in the mix slightly to 32% and 16% respectively, while France, Japan, and the U.S. fell by one point, and other markets remained stable. These being reported numbers, meaning euro, Several changes reflect currency fluctuations rather than underlying, notably when it comes to the U.S. Overall, the footprint of the group remains very balanced. Let's move to organic performance by region on slide six. You can see the strong performance of VGA excluding Japan, which is up 7% at constant currencies, driven by growth across divisions, in China and North Asia in particular. Europe and Japan are both down 3%, partially reflecting less dynamic tourist consumption, notably in Europe. U.S. momentum improved sequentially to plus 3%, driven by watch and jewelry, fashion and leather goods, and selective distribution. Let's now go to the detail of the division with Rodolphe.

Thank you, Cecile. Let's start with wines on spirits. Slide nine shows the wines and spirits business group delivered 1.3 billion euros in revenue for the first three months of 2026. This represents a 5% increase on an organic basis and a 2% decrease on a reported basis after taking account negative 7% currency effect. Broken-down champagne and wines generated €663 million in revenue over the period, whilst cognac and spirits generated €610 million, and both segments increased 5% on an organic basis. On slide 10, we share some of the highlights of the quarter for this business group. Champagne and wines. So, strong performance, notably for Champagne in Prestige Cuvee from Runard, Dom Pérignon, which released its 2017 vintage, and Krug with the release of 2013 vintage. Boeuf Clicquot also unveiled La Grande Dame 2018 Rosé. and Moët & Chandon returned as the official Champagne of Formula 1. The quarter benefited from the early phasing of Easter in Europe and from favorable timing of price increases in Japan. And as a result, Q1 performance should not be extrapolated, but all Champagne brands grew. In Q1, inventory levels are healthy and it seems fair to say this is a good start to the year for our Champagne business. Rosé Wines also delivered a good performance. Chateau d'Esclan released its 20th vintage of Whispering Angels, while Chateau Galoupe achieved one of the world's most rigorous standards for sustainable agriculture with the regenerative organic certified status. Meanwhile, Cognac also saw improved trends at the start of the year, supported by the phasing of Chinese New Year, which more than offset soft U.S. demand. And finally, Spirit Brands unveils several unique innovations, among which Glenmorangie's oldest single malt whiskey expression to date, named the 30. Now turning to fashion leather goods, on slide 12, revenue reached 9.2 billion euros for the first three months of 2026. Organic growth improved sequentially to minus two, driven by an improvement in American and Chinese demand, partially offset by the Middle East. After a negative 7% currency impact, the division was down 9% on a reported basis. I'm now on slide 13, which lists the key highlights of the quarter by brand. This year sees Louis Vuitton celebrate 130 years of the monogram, designed by Georges Vuitton as a tribute to his father Louis, founder of the Maison, and which continues to transcend generations. The brand also continues to progress on strategic retail initiatives, with the opening of LV The Place Seoul, one of the Maison's largest flagships, pictured on Site 7, which pays homage to the city of Seoul in Korea and to Vuitton's history, creativity, and savoir-faire through a range of immersive experiences. Finally, Vuitton also unveiled new and successful collections by Nicolas Ghesiquier and Farid Williams. Christian Dior saw the arrival of the first products designed by Jonathan Anderson, and although they still accounted for a small portion of the mix in the first quarter, they're off to a very good start across regions and product categories. After Seoul and Bangkok, Dior celebrated the opening of a third spectacular concept store, the Bamboo Pavilion in Tokyo, which you have on slide 23. offering the opportunity to shop, dine, and discover the work of local artists and artisans, among other experiences. Most recently, Christian Dior and UNESCO renewed their partnership, Women at Dior UNESCO, which fosters women empowerment through concrete actions aimed at education and the transmission of savoir-faire. A few highlights to conclude on fashion and leather goods from several of our other Maisons. Laure Piana unveiled a new yarn and fabric called Royal Lightness, which complements the brand's range of exquisite fabrics, such as the Gift of Kings. Céline continued to improve sequentially, driven by new products and Michael Ryder's collection. Fendi, Givenchy and Loewe also all continued to unveil new creative visions and finally Rimowa expanded its iconic classic range with a permanent titanium hue. Moving to perfumes and cosmetics on slide 15 where you have the bridge revenue reached 2 billion euros for the first three months of 2026 and was flat on an organic basis and down 6% on a reported basis after taking into account a negative 6% currency impact. On slide 16, more details on the brands, perfumes and cosmetics business groups saw good performance from its largest brands, starting with Parfum Christian Dior, which continues to perform well, notably in makeup, with the recent release of two new foundations in its forever range, Skin Glow and Skinwear Foundation. Women's fragrances also enjoy strong growth, led by recent launches, the latest fragrance in the J'adore franchise, J'adore Intense, created by Francis Curgeon, as well as three new Addict perfumes. Lastly, in skincare, Dior saw good growth from its flagship range, Dior Prestige. A few words of some of our other brands. Guerlain enjoyed a very strong start to the year, across all categories and notably fragrances, driven by L'Art et la Matière and Aquarelle Guerlain collections, and so continued success of its Rouge G lipstick. Finally, Parfum Loewe and Maison Francis Curdion also continued to deliver strong growth. Now, to watches and jewellery on slide 18, revenue came to 2.4 billion euros in the first three months of the year, up 7% on an organic basis and down 2% on a reported basis after taking into account a negative 8% currency impact. Our maisons continue to enjoy a very strong response to the development of their iconic lines, notably jewellery. Tiffany saw a very good start to the year, driven by strong momentum in fine jewellery, in particular hardware, knot and 16 stone collections, which continue to resonate with consumers and expand rapidly. High jewellery also enjoyed strong growth, with two collections in this quarter, Birds on a Pearl 2026 and Lovebirds by Tiffany. The store renovation program progresses and yields results according to plan, with tangible outperformance from new stores, including New York's flagship store The Landmark, which opened three years ago. Lastly, Tiffany announced Natalie Portman as its new house ambassador and unveiled a new campaign film centered on the many facets of love. On Borggris, the brand also delivered another strong quarter of growth thanks to the excellent performance of its iconic lines, Serpentier, Tubogaz and Bizarro 1, and to a good momentum across all regions. Bouguerie unveiled its latest high-jewellery collection, Eclectica, which features 128 new high-jewellery designs and a selection of exceptional watch creations. Finally, the brand launched a new collection called Liminis, derived from a bracelet designed in 1942. This is the first chapter in a new Bouguerie Eternal range, which merges archival pieces with modern creations. Chaumet unveiled the fresh modern take on this honeycomb inspired B collection and announced a partnership with WWF and Fred celebrated its 90th anniversary unveiling 17 new high jewelry creations around its fourth 10 collection which was first created in 1966. A few words to conclude on watchmakers, starting with Tagayer, once again official timekeeper of Formula 1, so good growth in its train Carrera range. Hublot returned as official timekeeper of the Snowlin in Aspen and launched a Big Bang Mecca 10 Aspen 1, which is powered by an in-house movement with a 10-day power reserve. And lastly, Zenith unveiled several new additions to its Defy collection. Now looking at our final business group selective retailing on slide 21, revenue in the three months period reached 4 billion euros, representing a 4% increase on an organic basis and down 3% on a reported basis after taking into account a negative 8% currency impact. Sephora saw solid growth across its markets and continued to expand its store network, notably in North America, as well as in more recently opened markets like the United Kingdom, with its first store opening in Northern Ireland in February. The Sephora Beauty Celebration event Sephora also brought beauty lovers together in Los Angeles for the first time since 2019. DFS remained focused on controlling costs and optimizing its store network. As you may have seen at the start of the year, DFS and China Tourism Duty Free Group announced an agreement for the latter to acquire DFS business in Hong Kong and Macau, along with intangible assets in greater China. And more recently, DFS also signed an agreement to sell its travel retail concessions in Los Angeles International Airport and San Francisco International Airport to duty-free Americas. Le Bon Marché finally continued to offer its consumers exclusive, distinctive concepts and a diverse range of products alongside a rich array of cultural events. This ends the business group presentation and I'll hand back to Cécile for the conclusion of this presentation.