Kering Sa Ord

Good morning to all of you. I am pleased to welcome you to Caring's 2024 full-year result presentation. To say the least, 2024 came far from meeting our initial expectations. We knew, and I told you a year ago, that things would not be easy for Caring in 2024, as we were and still are operating a transformation, and we are doing this against adverse market conditions. But as you've seen throughout the year, things have been even tougher than what we had foreseen. I also told you last year that we would rebuild without taking any shortcuts. The long-term health of our brands is not compatible with short-term compromises or quick fixes. So we are staying the course. The strategy we are implementing consistently since we began carrying a pure player in luxury is unchanged. We have demonstrated in the past that we know how to grow brands, and we will do it again. Gucci will come back. I have absolutely no doubts about this. We've built a portfolio of complementary brands addressing the key segments of the luxury market, and each one of them enjoys strong positions. They are now complemented and reinforced by a demonstrated leader and a promising contender in adjacent segments. And here, of course, I'm talking about Kering Eyewear and Kering Beauté. These businesses boost visibility, they provide additional entry points for our brands, and they are steadily growing and profitable, giving the group more stability and resilience. The strategies of each of our brands is highly specific, highly individualized, but they are sharing a common framework that we as a group, we define, we fine tune, and we monitor. In recent years, we've used the word elevation to describe the rebalancing of our house growth model between their fashion and timeless dimensions. And here I want to be very clear about what we mean, particularly in terms of clientele. We have grown our brands, notably Gucci, by leveraging their core elements of desirability, which is their fashion components. That has meant relying largely on the aspirational part of the market. So now, while protecting this customer segment, of course, and this is key for us, we aim at better penetrating more elevated clienteles. Francesca will go over many of the actions that we have adopted across the group to apply this principle, and how they touch upon every function of our houses, from communication to distribution, from merchandising to quality, and to a lesser extent to pricing. In the past year, we've worked on what we call brand books. For each of our houses, they set the framework within which creativity should be expressed. We identify the distinctive signs that make up the identity so we can better respect, we can better protect and enrich them. And this is the best illustration of an approach that is implemented across the group, but is creating outputs that couldn't be more different from one brand to another. The organization we put in place in July 2023 has been the right catalyst to accelerate our transformation and strengthen our capabilities. We have reinforced execution at group level and within the ounces, and we have intensified the efficiency of our operations. Jean-Marc will guide you through the actions we have taken across the board to strengthen our businesses. And finally, Armel will review the key operational and financial developments of 2024. From its origins, we have built Caring as an organization with a specific point of view and a distinct operating model. It has enabled us to move fast, to be bold, and to jump on opportunities. But it has also meant that our capabilities, our ways of working, have not always kept pace with our growth. So our challenge now, as we consolidate our organization and reestablish our position in the luxury landscape, is to make sure that we stay true to the culture and values that distinguish us. And this is a challenge that all of us gladly embrace. Now Francesca will go over the work she has orchestrated with our houses last year to reinforce their desirability and their prospects. Francesca, the floor is yours.

Thank you, Francois-Henri, and good morning to everyone. I'm going to spend a few minutes to go through the key developments at our houses, our ambition for the future, and of course, I will take a deeper dive on Gucci. In this picture, you see the Gucci Blondie bag, a beautiful bag that was created in 1971 and that we relaunched at the Cruise Show in May in London, and it arrived in store in the fall of 2024. It's a beautiful, sophisticated object, and compared to the past, we have increased its quality and introduced new colors and variation for the relaunch. In this picture, you see a variation in Quaio Toscano, a very high-quality leather introduced in the Blondie line for the first time with the relaunch. But a Gucci bag cannot be just a qualitative bag, because Gucci has a dual soul. In addition to the heritage, in fact, and the tradition, we need to inject the fashionability in everything we do at Gucci. Here you see a fashionable version of the Blondie bag presented in an oversized Gigi canvas version and pictured with Debbie Harry, the leading singer of the band Blondie that gave the name to this bag in the 70s. This campaign was shot by the famous photographer Nan Golding And it's part of the campaign of the Blondie bag that received a British Fashion Council Award and was very well received by the consumers. This picture illustrates the very unique positioning of Gucci, always blending fashion and tradition. And even when it comes to leather goods icons like the Blondie, the important fashionability component is never left behind. In 2024, Gucci has seen the return also of the Jackie and the bamboo lines of bags, here in the hands of Dakota Johnson and Yara Shahidi. Icons are a platform from which we improve and grow. The new Jackie bag features better quality in the leather and in the hardware, and the bamboo line incorporates new versions and colors, and for sure it has a much more modern appeal, and it appears to a broader clientele. The valigeria travel collection of Gucci is a very important icon for the brand that brings us back to the very foundation of Gucci at the period of Guccio Gucci at the Savoy in London. We never lose sight of where we come from, like, for example, our Savoy history. But we do it in a respectful way and in a joyful spirit of the house, building on the moment, as we did in this holiday campaign featuring the valigeria. We understand who we are, and we make sure that everything we do is aligned with this idea, but also with the current time. Another example of icons that we have refreshed this year is the bee bag, which was introduced first as a men's bag in the mid-50s, and it became famous when worn by Samuel Beckett. This year, we reintroduced the bee bag as a women's handbag with great success and a new fashionable spirit. When talking about the icons of Gucci, we must mention the horsebit loafer. It has been a milestone for Gucci for over 70 years, and whenever we introduce new variations, they are a hit and also boost the sales of the original model. In addition to rewamping our icons, in 2024, we also launched new successful products, like the Hamblin line of bags, whose global success has allowed us to partly offset the drop in the carryover, or the new ballerinas that cover a function in the market and a market trend and incorporate some of the elements of our Gucci loafer. All of this fits perfectly in the product strategy that we have deployed in the last 18 months. The new products we have introduced or the iconic line we have refreshed represent a real step up in terms of quality, functionality, and appeal. They have been very well received, however, their success has not been enough to make up for the drop of the permanent lines. As you see through the year, the percentage of newness in the sales of Gucci has grown steadily, and we aim for the share of newness in the mix to continue to increase. We will continue to refresh our key carryover lines, as well as to leverage on the success of pure newness with the aim of developing new lines that have the power to remain as carryover and build a stronger base for the future. All of this should translate in stronger revenues in the future. stronger mix of leather goods sales in the sales of Gucci. And this is for sure the aim that we have also for the future. In 2024, Gucci suffered from low traffic and in particular in the second part of the year to overcome this, we have re-energized our communication to drive customers into our stores. Example of these are our gifting campaign that leveraged on the Savoy heritage or our Christmas campaign featuring some of our brand ambassadors like Yannick Sinner in this picture that is not featured on a tennis court, but very offbeat and fun as we never forget that Gucci is a joyful brand. Another successful example of re-energized communication is our Valentine's Day campaign, recently unveiled, and that presents couples in their daily life. This campaign, shot by Tina Barney, stages love and inclusivity, key values for the Gucci community. Last but not least, this year we worked on our stores. They are an incredible vehicle of communication to the world for staging both products and our history. A new window concept has been developed to engage better with clients, to invite them inside, and to highlight not only our products, but also our values. Entitled Endless Narrative, the new window concept creates a dynamic, immersive environment fostering engagement. It is an infinity library that displays product as well as objects related to the history of the brand, art pieces, and it allows the client to discover Gucci and the brand and our sales associate to engage better with the clients through storytellings. These windows are highly adaptable to different products and also to different store configurations. And they're also highly sustainable, as the concept will stay for a few months while displaying will be changed. The endless narrative concept was launched through a digital campaign, and I would like to stop one moment on this close-up, featuring our archive boxes in an art form. This picture is a very good example of where we stand today. As you understood from what I just told you, over the past 18 months, we spent time rebuilding a very strong base founded on the goal of elevating our quality and achieving consistency across product, communication, and distribution. We surely have not done it all, but for sure we have made gigantic progress in reconnecting with our heritage. Therefore, now is the right time to boost the fashionability and desirability element of the brand, and that is part of the Gucci soul. This is why we announced last week that we will appoint a new artistic director for Gucci, and this marks the beginning of the next stage of the brand journey. The solid base that we have created is here to stay. On this solid foundation, desirability and fashion authority will be injected in a strong, very strong way to recreate the unique balance that makes Gucci shine. We are putting the finishing touch on Gucci. The transition is done and we couldn't be more excited about it. Let's turn now to Saint Laurent, a house that enjoys an immense fashion authority. Saint Laurent is a brand with very strong pillars, highly recognizable and desirable. Its fashion shows are regularly praised as the best of the fashion weeks, and the brand positioning is very elevated and strong. Leveraging on the power of the brand, in 2024, we introduced products at a higher price point, like the Waikaba or the new Sac du Jour that you see in this picture. The higher positioning is a matter of undeniable enhanced quality and strong desirability. At Saint-Laurent, the silhouette is key, and here are the same handbags shown into a contest, aligning leather goods with the Saint-Laurent look, displayed by personalities. Also, Saint-Laurent is legitimate both in logo and no logo bags. While elevating our offer, we never forget entry price points, and we make sure that the quality and the brand power are present throughout the full range. This is an example of a core product of Saint Laurent, the Lulu bag, that has been relaunched at an unchanged price range while being rejuvenated with colors, new leather, and a new attitude. And this is having a very strong response. The house fashion authority is interweaved with customer experience. The new store concept that has been launched in 2023 and deployed in 2024 enhances the client journey and also is done to improve some KPIs like cross-selling and new PT. Saint Laurent is also a brand whose authority goes way beyond fashion and a brand that expresses itself with audacity. Less than two years ago, we founded Saint Laurent Productions, a company that produces movies, and Emilia Perez, a movie that we produced this year, received already several recognitions and 13 Oscar nominations. The brand is leveraging on the territory of Filma, also in its ad campaigns, such as in the holiday one. And all of this is very well received by the public. In fact, the brand was ranked number two in the list index for Q4 2024. Let's now talk about Bottega Veneta, a brand with an incredible business story, a leather goods house with a huge lifestyle potential. It is full of modernity, color, energy, and yet it has an ultra high-end positioning, and it reached new momentum in 2024. This exclusive positioning is being reinforced in line with the long-term strategy of the brand, notably thanks to acclaimed collection and communication investments that amplify the brand desirability. In 2024, Bottega Veneta invested a lot in elevating customer experience. It opened its first by invitation-only home in Venice, in the Venetian Palazzo, and its first by appointment-only residence at the top of its store in Madison Avenue. Bottega Veneta resonates very well with top-end customers, and it creates special occasions to engage with them. The important thing is that Bottega Veneta is never loud. Like the brand and its products, also its new stores are stunning, sophisticated, and at the same time inviting. Here you have an image of the newly opened stores in Chicago. They are not intimidating, and customers want to spend time there, creating a feeling of community. Without compromising on its ultra high-end positioning, Bottega Veneta in 2024 expanded its core offer with the introduction of candles and fragrances to create brand relevance at a lower price point. This has also been the first project that one of our brand did with Karin Boutte. Results are very good and everyone had very positive experience working together on it. Lastly, Bottega Veneta recently appointed its new creative director, Louise Trotter. Louise is a very natural fit for the brand, a perfect choice to perpetuate Bottega value and aesthetic. Her sensibility and taste are completely aligned to the brand DNA, and she has the right credentials to create fidelity in ready-to-wear, similarly to what the brand has already achieved in leather goods. In addition to our three larger brands, we have beautiful jewels in our portfolio. Balenciaga, that continues to have the most relevant runway and couture shows thanks to Demna. It has launched in 2024 very successful handbags like the Rodeo on the Bel Air, and it opened a magnificent store in New York City downtown. Alexander McQueen in 2024 had his second show by the new creative director Sean McGeer that was very well received, and the brand is going through a consolidation. Brioni had a very good year in 2024. The brand has a strong legitimacy in formal wear that has been enhanced by the reopening of the Scuola di Alta Sartoria in Penne. And in 2024, it has been gaining momentum in luxury leisure wear with very successful collections. We have also jewel in the jewelry sector. First and foremost, Boucheron, a brand led by a super talented, strong team, and their captains are two women. Boucheron combines traditional craftsmanship with wonderful aesthetic and strong innovation. In 2024, the brand entered the US market with the opening of a store in New York and in Las Vegas to be followed by an opening in Rodeo Drive in 2025. Moreover, Boucheron enjoyed great visibility on the red carpet. Second jewel in the crown, Pomellato, our Italian jewelry brand, also led by a strong female CEO and talented team. The brand has a strong legacy linked to Milan, and in 2024, this legacy has been celebrated through an exhibition in Shanghai, and considering its success, we are planning to... make this exhibition travel in the coming years in other destinations. Dodo, a well-established jewelry brand in Italy that was part of the Pomellato group and is very known and loved for Italians, will be carved out by Pomellato in order to better exploit its potential. Kilin this year celebrated its 20th year anniversary, and it was founded as a high jewelry house. Now it is more aspirational thanks to the offer in fine jewelry, but it will leverage on its legitimacy in China as a high jewelry. After all of this, we can all agree that our 2024 achievements are very consistent with the four pillars of our strategy, brands, product, distribution, and execution. Talking about brand and brand building, we know that our brands are the most important assets that we have, and conveying their brand narrative through everything we do is key. Francois Ribly, if we touch about our brand books, that are an incredible framework under which to develop the singularity of each brand. Many of our brands also entertain an ongoing dialogue with culture. I talked about the cinema for Saint Laurent, Bottega Veneta collaboration with artists or Venetians' bottegas. Balenciaga, through the line exhibition, for example, that resonates very well with the past and with strong legitimacy. This has been recognized also by Delouvre, whose exhibition has all of our brands, and Balenciaga is also featured in the catalog. During the year, together with Jean-Marc, we have set very clear KPIs for communication investments and very clear objectives in terms of return on the investments. And through the year, we have reallocated and arbitraged our budgets accordingly. Products are the means to take the brands to consumers and across every category and price point. Again, the brand books are key to ensure brand consistency and to make sure that the innovation in product happens within a legitimate territory for each brand. We are strengthening our merchandising capacity, bringing in new talent. We are enhancing the quality at every price point and have plenty of room for introducing product at a higher price point in all of our brand. We also enjoy opportunities in new categories. We have different distribution strategies for every brand. You know that the sector is going through a retailization and also the caring group, but it's not one strategy fits all. Gucci retailization is close to 95%, 95% of its revenues come from retail. Our larger house are not far from that with a share in between 80 and 90%. McQueen and Brioni instead have a very different mix in between retail and wholesale, as well as our jewelry brand. Last year, our increase in DOS was minimal and we did mainly strategic openings. In 2025, we are planning to close 50 stores, one third of which will be outlets. Last year, wholesale was down by over 500 million euros and it will be down by another about 350 million euros this year. In addition to market condition, this reflects our strategy of focusing on exclusive distributions and doors. Taking a closer look at Gucci in this respect, our distribution priority for Gucci are our full price stores. They are our focus and we are closing unproductive location and elevating the whole network. We want to significantly reduce our presence in outlet and we have started already in 2024. The number of outlet is being cut by one fourth over two years. We are also elevating and raising the control over our online distribution. And in wholesale, we plan another wave of drastic cuts in 2025 of about 30%. Of course, to offset the impact that cutting wholesale, closing stores, closing outlets will have on the revenues, we need to significantly improve our like-for-like sales in full-price stores and increase their sales density and also their productivity. And all the actions that I've described so far go in this direction. Online remains a key factor in our distribution. As much as possible, we want to align client experience with the one in physical store, and we will focus more and more on our dot-coms. As part of our distribution strategy, focusing on client experiences has been fundamental in every brand, but priorities are different by brand. Offering the right setting and ceremony for the customer, creating whenever possible VIC rooms has been a focus for the brand in 2024. We have example of events for YSL in Cannes, Bottega Veneta in Dubai, Gucci in Miami, and we have detailed KPIs to monitor the result of these investments and focus on opportunities for improvement. In this respect, also the group plays a primary role in helping the brand developing amazing experiences for the client, like we have done this year with the Women in Motion Dinner in Cannes or the Karen Foundation Dinner for Fundraising in New York City. Last pillar of our strategy is to strive for excellence in execution. This year, this meant adapting our entire organization and coming up with new ways of working to accelerate our transformation. We have recently announced new CEOs at three of our largest houses and now new artistic directors in two other houses. We have welcomed new talents in several functions, communication, production, retail, and merchandising, and we are working to make those functions even more effective at working together. We are accentuating our retail focus at brand level and also at group level, and we are setting and monitoring specific portfolio of actions for each entity. And while there is no hiding that this is a stressful moment for everyone at every level, it is also a period of very exciting progresses, of great cooperation and alignment throughout the organization. And I'm sure that Jean-Marc, with his presentation, will show you this. Thank you very much.

Thank you, Francesca. Good morning to everyone on the call. I'm going to go over the cross-group functions which are making caring more efficient and agile. I will then give you a quick rundown of our progress at Caring Eyewear and Caring Beauté. And finally, I will review some of the key elements of our financial strategy. Starting with operations and corporate functions, our first priority, and what we have been working on assiduously for the past 18 months, is to make all our organizations across all segments more effective with clear objectives and sets of KPIs. And second, to reinforce financial discipline throughout the group, both to deal with the current situation and to set a solid framework for the future. We are scrutinizing and tightening all levers, including control of OPEX and CAPEX, based on solid ROI targets that are set and shared internally. Following a period of strategic investments, we have also defined a clear deleveraging trajectory. We focus particularly on boosting our efficiency in four cross-group areas manufacturing, logistics, technology and corporate functions at the holding level. Let me dig a little deeper starting with manufacturing. Caring houses rely on production capacity developed or acquired in the past few years and on outside suppliers, often shared by several of our brands. Clearly, full utilization of the group's manufacturing capacity supports our growth margin as we better absorb fixed production costs and also our quality and lead time improvement targets. Upstream in the supply chain, we are actively working on this by mutualizing sourcing, raw materials purchasing or the activities of our leather tanneries. We also seek to achieve synergies in development and manufacturing in soft as well as hard luxury. For example, Brionis Ateliers works for other group houses and other such initiatives should come on stream this year. In a year of lower unit production due to our own sell-through targets and to softer demand, we coordinate the approaches of our various houses to limit the impact on our suppliers. But still, we maintain stringent standards when it comes to the respect of our specifications by our suppliers. We further reinforced our supply chain control system, capitalizing on standardized supplier engagement, management rules, contracts, and controls on a comprehensive knowledge base of our supply chain. In the past 10 years, we have conducted over 30,000 audits and follow-ups. Turning to logistics, the equation is relatively simple, even though implementation is less so. After years of investments, we want to leverage our setup to reduce delivery time and gain in on-time reliability. In other words, commit to an optimal number of days between the moment a brand requests an item that is available in the central or regional warehouse and the moment it gets to the store. Our target is for at least 90% of all items to be delivered in the time frame agreed with the brands. This gain in reliability and agility is what our houses can count on to optimize allocation and install replenishment and therefore minimize inventory. Improving logistics efficiency goes hand in hand with lower costs by units warehoused and transported itself linked to systematic renegotiation of contracts with carriers, for example. In addition to major savings, we have gained in productivity, in preparation and handling of shipments. We have also streamlined our setup, notably with the sale of one of our last remaining warehouses in Switzerland. We target another drop in our cost per unit in 2025. With regards to our digital capabilities and information systems, our main goal as for logistics is to leverage the tools that we have already put in place in recent years. We are systematically prioritizing projects with higher ROI targets. At the same time, we want to leave room to adapt to changes in technology and we continue testing generative AI solutions likely to improve our organization. This discipline in project management without closing the door to innovation enabled us to stabilize our IT cost excluding DNA in 2024. Finally, We have redefined the missions conducted at corporate level in such areas as HR, finance or legal or some other functions to optimize the support we provide to our houses and raise the standards with which we carry out our interactions. Among others, this tightening has led to a reduction in holding company costs of 5% in 2024, despite continuing inflationary pressure in some regions. we are projecting another 5% drop in the current year. Before Armel expands on the 2024 financial performances of our adjacent businesses, I would like to say a few words on their progress. Caring Aware is celebrating its 10th anniversary by beating all the targets we set in 2015. Its portfolio of 14 brands, including two proprietary brands, constitutes an offer of sunglasses and optical frames that is particularly attractive for eyewear retailers. It propelled carrying eyewear to number two worldwide in eyewear and number one in the luxury segment. It has a global footprint with distribution in 150 countries in nearly all the top selling channels. It's highly profitable and its sound cash generation has already allowed it to absorb the cost of the acquisition of Lindbergh and part of that of Maui Gym. Maui Gym pursued its international expansion last year at the same time as it defended its positions in a challenging US market. As we had flagged, the brand has sustained its investments in A&P and this should continue to bear fruit this year. To preserve Lindsberg's highly exclusive positioning, we are keeping the brand's development under tight control. And finally, as we do everywhere else in the group, in the brands, in the corporate functions, we continue optimizing carrying eyewear operating efficiency across the board. So you are familiar with our ambition for Kering Bote to reach critical size on the global beauty market, leveraging the full potential of our houses and to build a steady, profitable business in the process. In 2024, we continued building the foundations from which this ambition can take shape. Following the acquisition of Creed in late 2023, the Keringbote team had three priorities. A, adapt the company's organization, capacities and processes to all standards. B, exploit synergies, notably in terms of supply chain and distribution. And C, fuel the development of the brand. In 2024, Creed posted a very good performance, notably through the well-received introduction of Women Scents. Another highlight of the year was the launch of a family of five high-end Bottega Veneta fragrances. The collection, as already hinted by Francesca, generated a performance that went beyond our expectations and will be amplified this year. Kering Beauté also prepared the launch of a very exclusive Balenciaga fragrance line. As a result, by the end of this year, two of the main licenses held by Kering Beauté will have made their entry into the market. We have also built an experience team and the roadmap we have drawn for the next four years include a detailed calendar of launches, enabling us to program Caring Bote's future development, notably in terms of hiring and supply chain. Let's now take a look at the key tenets of our financial strategy. I will start with gross margin, down 15% last year in absolute terms. However, when we break down the components of this drop, you see here on the right that the bulk of the drop flows directly from the decline in sales. As a percentage of revenue, gross margin was down about 2%. Focusing on this deterioration of the gross margin rate, it is partly due to the negative impact of the revenue mix in terms of both channels and geographies. Successful actions aimed at cleaning inventory and somewhat paradoxically, investments in heightening product quality also impacted the gross margin rate. These negative factors were partly compensated by the efficiency gains and cost savings I discussed. Our goal already for this year is to leverage the work we are doing on the supply chain to return to a higher growth margin rate. We continue to invest in our houses to reinforce their positions and provide them with the resources needed to rebound and thrive. As we do this, efficiency is our top requisite. Obviously, our houses' DOS networks represent a key element of our strategy. With Francesca, we have completed a comprehensive review of our 1800 stores worldwide to fully capture their individual performances. If their prospects allow, we are taking measures to improve their results. If we don't deem this possible, we close them. Our priority is to enhance client experience and the quality of the service we provide, all the while focusing on achieving higher density, productivity and profitability. Another fundamental lever rests with advertising and promotion expenses. we are assessing the impact on brand equity or top line of our A&P spend. With greater agility, we aim to be more effective while keeping our A&P budget broadly flat in 2025. And we deploy the same rigor in the management of other OPECs, including restructuring wherever required. All told, at group level, we have saved 400 million excluding DNA in 2024. Of course, some of the savings are due to variable cost, but very substantial savings have been made on the fixed part as well, considering the average salary increase on total personal cost of 3 billion euros and, as I said before, A&P in early flats. In 2025, we are planning on keeping total OPEX stable. This means that excluding DNA and any inflationary pressure, the initiatives we put in place in 2024 will continue to bear fruit. We are very pleased with the level of cash flow we are generating due to sound working capital management and disciplined CAPEX. Our significant inventory reduction reflects in part how we have adapted to the current situation. More fundamentally, it is the result of structural efforts on sell-through, open-to-buy and supply chain agility that will continue to benefit our working capital in the future. Last year, inventories were down 12% in Euro terms. This includes a particularly strong contribution from Gucci, which managed to reduce the number of pieces in inventory by nearly 40% over the past two years. On the CAPEX front, beyond the 10% drop versus 2023, and even more if we consider the initial CAPEX plan for 2024, we target to stay at 1 to 1.1 billion euros in the short term. We said we would be working on cutting group debt, notably by lowering our real estate exposure. Already in early 2025, we have signed deals that will generate net proceeds of 1.2 billion euros. Through the transaction with Ardian, we have secured indirect control over assets we deem strategic. As for the mole, the sale of this non-core asset represents healthy management of our portfolio of activities. We expect to raise another 2 billion or more over the next two years through real estate refinancing. This year already, net financial debt to EBITDA should not exceed two times. Over the long term, we are shooting for this ratio to drop further thanks to the refinancing I just mentioned, our cash flow generation and a disciplined M&A policy. To sum it all up, I have recapped here on that slide our capital allocation priorities, which you are mostly familiar with. First and foremost, the support of our organic growth even more, fundamental than ever. I have reviewed with you how we plan to continue investing in our current portfolio of houses. This translates into a long-term CapEx-to-Sell ratio target of 5-7%. And we are not planning further investments in real estate properties. Our dividend policy is unchanged and Armel will discuss the 2024 outlay. On the external growth front, our focus is on consolidating our recent moves, particularly in beauty and eyewear. We believe in the strong potential of our adjacent businesses and in securing our supply chain, and this will be the guiding light for any potential acquisition. We are also preparing the integration of Valentino, which is three years away, at the latest. I have reviewed our debt leveraging trajectory. We expect to gradually return to a ratio of net debt excluding leases to EBITDA of one to two times and to retain a solid investment grade rating. With this, I will pass on the mic to Armel for a review of 2024.