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SUSTATAT INABLEDEVELOPMENTREPORT2018-2019

We have been creating exceptional Fragrance

and Beauty products since 1828 and we strive to preserve,

develop and pass on this unique heritage to future generations.

WE COMMIT AND ACTIN THE NAME OF BEAUTY FOR OUR CLIENTS,IN THE NAME OF BEAUTY FOR OUR CREATIONSAND IN THE NAME OF BEAUTY FOR THE PLANET.

We involve and unite

(clients, partners, companies that share the same vision)

in order to imagine and shape a more beautiful

and responsible world together.

( d( d

(s

(s.

(.

OUR PURPOSE

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Laurent Boillot: Making Guerlain themost prestigious and responsiblecompany in the world, and develo-ping our franchises with the sameperspective of social and environ-mental responsibility remains aconstant challenge. For more thantwelve years, we have been commit-ted to Guerlain becoming a com-pany that cares about the resources,biodiversity and climate of the planet,and is also supportive of women whosuffer from low self-esteem. The recentevolution of the company gives us afactual reason for creating a department in 2007, dedicated to imple-menting a Sustainable Development strategy, which was then entrustedto Sandrine, who joined the Executive Committee of the company in 2018.

Sandrine Sommer: Sustainable Development has become a subject sha-red by everyone: while it provides strategy, inspiration and structure forthe Executive Committee, it is also a source of meaning and pride for allemployees. As supporters of excellence, we continue to raise the bar inour four areas of commitment: the preservation of biodiversity and espe-

cially the bee, the eco-design of ourcreations, the reduction of our climatefootprint by aiming for carbon neutrality by 2028 and the social andsocietal commitment that Guerlaincombines with the notions of genero-sity and sharing that are important toour employees.

Laurent Boillot: It also proves that forus it is indeed a matter of consideringsustainable development as a visionintegrated within the management ofthe company, to guide the creation of

value that we aim to achieve. In 2019, more than ever, we are committedto preserving, developing and passing down our unique heritage; the formal drafting of our Purpose allows us to put our actions into a strategyin line with the new expectations of our customers and society.

We consider Sustainable Development to be a great opportunity for innovation, appreciated by our markets. Beyond pure generosity, the subject is eminently economic. Indeed, many studies show that, especiallyamong Millennials, “Sustainable Luxury” is so popular that it is a reasonfor choosing a brand.

IN THE NAME OF BEAUTY…2019, AN AMBITIOUS YEAR

E D I T O

Sandrine Sommer: In anticipation of this (r)evolution, our teams are ledto imagine and reinvent ways of working to provide solutions to thesenew challenges. Take biodiversity, at the heart of which is the Bee, whichhas also been the symbol of our company since 1853. Beyond the sym-bol, the precious bee is widely threatened. Our commitment to its protec-tion is manifold through four programmes, the most recent of which is theBee School, initiated in 2018, which mobilises our voluntary employeesto go into schools to teach children about the subjects of bees, biodiver-sity, climate and Bee Universities. We have such pride in the success ofthe third edition at UNESCO on 22nd May, World Biodiversity Day.

Laurent Boillot: Making the Abeille Royale pot lighter in 2019, in thewake of the lighter Orchidée Impériale pot in 2015, is testament to thechallenges related to packaging and containers (saving material, avoi-ding CO2 emissions etc.) that we face from year to year. Another signi-ficant step was taken in early 2019 with the launch of L'Essentiel, thecompany's new foundation, a truly disruptive proposal in terms of formula,combining naturalness and performance. This launch confirms our desireto eco-design 100% of all our new products by 2022. With this in mind,Guerlain has implemented its digital traceability platform, Bee Respect,which collects information on the origin of our ingredients, the path theyhave taken, their production cycle, their distribution through to their endof life. This platform was firstly a great tool for raising awareness amongour teams about eco-design and “breaking down barriers”, which is more

conducive to the development of innovative and eco-designed products.After this first (internal) success, we decided to take another step forward:to meet the information needs of our customers, who are increasingly interested in knowing what the products contain, we took the initiative togive them access to our Bee Respect traceability platform. Another firstthat Guerlain dares to try, in the knowledge that this is the meaning of history, and it is up to us to lift the curtain on what happens behind thescenes!

Sandrine Sommer: Finally, we wish to continue to promote women's self-esteem through our support for the charities Look Good Feel Better, Restosdu Cœur and Laurette Fugain. The Guerlain teams are always very proudto participate in these heartfelt actions that give beauty a lot of meaning.And I haven't forgotten our partnership with the towns of Montfermeil and Clichy-sous-Bois over the past nine years. I am very proud of all the initia-tives deployed and the emulation generated is even more inspiring!

Laurent Boillot: For over 12 years now, we have been acting and makingcommitments to a more sustainable world “In the Name of Beauty”. Andwe have the desire to make this more widely known. Thanks to all ouremployees and partners, we will continue to complete actions basedaround our four key issues: biodiversity and the protection of bees; eco-design; climate and solidarity. Certain, as I like to remind everyone,that “nothing can withstand imagination, conviction and hard work”.

E D I T O

The first innovative 100% electric lorryhas been supplying our Paris stores since 2014

TRANSPORTS

100%OF OUR SUBSIDIARIES WORLDWIDEWILL BE ISO 14001 CERTIFIED

CARBON NEUTRAL

by 2028 in celebration of 200 yearsof Guerlain. (scopes 1 – 2 – 3)

S U S T A I N A B L E D E V E L O P M E N T12 Y E A R S O F COMM I TM EN T ,

10 Y E A R S O F AC H I E V EMEN T S AND N EW AMB I T I ONS

High Environmental

Quality site

demonstrating our

commitment

LA RUCHE

of our sites in France and 50% of our subsidiaries are already ISO 14001

100%

LIGHTER

100%OF NEW GUERLAIN PRODUCTS WILL BE

ECO-DESIGNED

100%OF NEW GUERLAIN PRODUCTSWILL BE COMPOSED OF 95% INGREDIENTS

OF NATURAL ORIGIN BY 2021

By 2022

Our iconic Bee bottles are refillable

for life

PERFUME FOUNTAINS

to offer customers the option to return their empty packagingfor recovery through CEDRE, the recycling platform created

in partnership with the LVMH Group

11ST COMPANY

A sustainable partnership of research and sponsorship

with the Brittany Black Bee Conservation Association in Ouessant

SINCE 2011 12FROM SUSTAINABLE INDUSTRIES

BY 2022

BEESBECOME THE BENCHMARK COMPANYIN TERMS OF THE PROTECTION OF BEES

WORLDWIDE

To protect our iconic

raw materials

7SUSTAINABLE INDUSTRIES

Partnership with the French Observatory of Apidology (OFA) toprotect bees. Creation and organisation of Bee Universities tofind solutions and help to protect the bees by “pollinating” thebest practices

THE BEES

AN OUTREACH DAY IN AID

OF AN ASSOCIATION

SUPPORTED BY GUERLAIN

AND AVAILABLE

TO ALL EMPLOYEES

SINCE 2015

100%OF GUERLAIN SUBSIDIARIES

THROUGHOUT THE WORLD INVOLVED WITH THE LOOK GOOD FEEL BETTER

ASSOCIATION(or another similar NGO)

The pot in new Orchidée Impériale packaging is 60%

lighter and the new Abeille Royalehas a 44% smaller pot

C L I M A T EACHIEVEMENTS AMBITIONS

ACHIEVEMENTS AMBITIONS

E C O - D E S I G NACHIEVEMENTS AMBITIONS

S O L I D A R I T YB I O D I V E R S I T Y

ACHIEVEMENTS AMBITIONS

By 2022

BY 2021

100% TRACEABILITY FOR ALL OUR PRODUCTS BY 2020THANKS TO BEE RESPECT, OUR DIGITAL TRACEABILITY PLATFORM AND TRANSPARENCY

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BIODIVERSITYPRESERVRVR ING& PROTECTINGTHE BEAUTY OFTHEWORLD

PRESERVING OUR ICONIC RAW MATERIALS: A SOURCE OF INSPIRATION AND INNOVATION

Raw materials have been a source of inspiration and innovation for ourcompany since its creation. Pledging to protect biodiversity is a naturalstep to take to ensure the quality and longevity of our creations and sa-voir-faire. We are also aware that committing to this key issue allowsus to aid in preserving the Beauty of the world in our own way. That iswhy our local biodiversity conservation strategy is to create sustainableindustry partnerships, as our supplies of honey, orchids, bergamot, la-vender, sandalwood and vetiver show.In this context, in France, in Europe and all over the world, Guerlain ispartnering with organisations and local stakeholders to implement pro-grammes and sustainable industry models for our essential supplies.Whether at home or abroad, Guerlain supports cultural, environmentaland socio-economic approaches to the natural materials that form partof our product compositions.For our sustainable industries, we strive to provide long-term supportusually over a period of ten years. In concrete terms, this can be in theform of financial assistance, technical and scientific support or even askills-based sponsorship. That is, ad hoc sharing of expertise present inour voluntary teams. By blending “fair business” and philanthropy, therange of methods used results in human exchanges and meetings“in the field”.

Re-inventing oneself: an art formTo create the best fragrances and find the finest natural materials, ThierryWasser, Master Perfumer at Guerlain, spends most of his time travellingthe four corners of the world. With a curious mind, and a craftsman atheart, he goes in search of the living, in all its diversity. “We aren’t justbuying inspirational, excellent raw materials, we’re buying them fromsomeone”, he says. For Guerlain, these natural and humanistic dimen-sions fully express the meaning of the “sustainable industries” createdand developed around our six favourite materials.

GUERLAIN AND BEE PROTECTION, THE OBVIOUS THING TO DO

A very special bond has connected us to the Bee since 1853 when abee landed on the bottle of the fragrance created by our founder forEmpress Eugénie, Eau de Cologne Impériale. For close to 170 years, the Bee has been gathering pollen from creationto creation, with the same genius and endless passion for exceptionalraw materials. We owe it so much. Biodiversity is at the heart of our creations. And the Bee, the sentinel ofthe Environment, is at the heart of biodiversity. A witness of our time,now threatened, doing our bit (and perhaps a little more...) to protect itseemed obvious. For this purpose, we’ve dedicated numerous partner-ships to its protection.

• Since 2011: a sustainable research and philanthropy partnership with the Brittany Black Bee Conservation Association (ACANB) inOuessant.

• Since 2015: a partnership with the French Observatory of Apido-logy (Observatoire Français d’Apidologie, or OFA), helping them de-velop a stock of hives in Europe and promote the rare and crucial jobof a beekeeper.

• Since 2017: Guerlain's creation and organisation of Bee Universities,an annual event that brings together the top specialists in the field (scien-tists, associations, beekeepers, public authorities and relevant compa-nies) in order to determine the best bee conservation solutions andpractices.

• Since 2018: the Bee School, an awareness programme for primaryschool children led by the company’s employees, allowing children todiscover the important role of the bee and to raise awareness of theneed to protect them.

BECOME THE BENCHMARK

COMPANY IN TERMS

OF THE PROTECTION

OF BEES WORLDWIDE

- 4 -The number of defining programmes developed

regarding bees

THE NUMBER OF SUSTAINABLE INDUSTRIESTHAT SUPPORT BIODIVERSITY

7

B I O D I V E R S I T Y

1

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I N T E R V I E WPROTECTING THE BEES IS ONE OF THE CORNERSTONESOF OUR COMMITMENT “IN THE NAME OF BEAUTY”,

FROM WHICH MANY OF GUERLAIN'S ACTIONS ARE DERIVED.

THE THIRD BEE UNIVERSITIES: JOINING TOGETHER,SHARING AND BECOMING MORE INVOLVED

Under the aegis of Guerlain, the greatest specialists have been meetingsince 2017 to clarify the causes and consequences threatening bees,and to share the most innovative solutions to curb this decline, which isaffecting the biodiversity of our planet as a whole. At UNESCO, andon World Biodiversity Day 2019, the company presented a pro-gramme, with the author and columnist Frédéric Denhez, highlightingthe disappearance of bees, the erosion of biodiversity and the positivesolutions put forward by scientists, public authorities and companies.Bees and biodiversity being eminently linked, the Universities of Bees

are sponsored by Sandrine Bélier, Director of “Humanité Et Biodiversité”(Humanity and Biodiversity), a national association recognised as a public utility and approved under the protection of nature by the Ministryfor the Ecological and Inclusive Transition. Fourteen specialists spoke at the third edition of Universities of Bees in front of 450 participants from Europe, alongside UNESCO expertsand decision-makers and their cycle of Man & Biosphere (MAB) conferences. This UN initiative, which began in 1971, is at the origin of ad hoc inter-governmental scientific programmes aimed at establishing a scientificbasis for improving human-nature relations on a global level. The Uni-versities of Bees promoted by Guerlain are one of those programmes.

Laurent Boillot, 22nd May 2019

THE OFA, A DEFINED PARTNERSHIPTHAT KNOWS HOW TO “SWARM”

We are very proud to be in partnership with the OFA and its manyactions to protect bees, including training for beekeepers, scientificresearch and awareness campaigns, and we are particularly pleased that this meaningful partnership continues to swarm and ina very defined way: at the European Commission, for example, withthe European and Mediterranean Beekeeping Union (Union de l'Apiculture de l'Europe et de la Méditerranée, or UAEM), of whichGuerlain is a member, where we went to exchange strategic measures regarding the protection of bees with parliamentarians.Then within our company, with a massive mobilisation of our employees who are involved in the “Flowers for Bees” campaignevery year, initiated by the OFA.

Thierry Dufresne, Founder and President of the OFA and member ofthe ethical “BEE COMMITTEE” that Guerlain consults to “challenge”its Sustainable Development strategy.

“With Guerlain's support, the OFA will train more beekeepers: we're sorely lacking in them! In 2014, Ifounded the OFA to better understand the behaviourof bees and work out that they could be the best wayto raise colonies and offer them greater well-being.On 16th April 2015, we presented a pilot scheme to the European Parliament on three emergency

measures aiming to repopulate bees, regenerate a stock for hives andtrain professional beekeepers.Training, research, lobbying and co-constructing concrete solutionsare part of the equation to be solved. Hence the creation of theUAEM in 2018: European and Mediterranean Beekeeping Union(Union de l’Apiculture de l’Europe et de la Méditerranée), encom-passing 42 countries. It is a collection of leading figures from all back-grounds, including Guerlain's Director of Sustainable Development,Sandrine Sommer, who have the task of striving to develop the bee-keeping sector, protect its environment and, by focusing on pollination,preserve food security and human health.

It's up to us to take care of them! Starting with... offering the preciousforagers more flowers! In June 2019, the “Sowing for Bees” day launched in 2015 increased in reach. For a whole month this time, allthe employees at Guerlain and all OFA partners, as well as everyonethrough the website flowersforbees.com, were invited to sow 1 billionhoney-producing plant seeds (flowers, plants and shrubs) from the listof 200 plant species attractive to bees presented at the beginning ofthe month at the “Jardins, jardin” exhibition in Paris. Filling their pantrybecause they have done such a fine job of filling ours, as well as agood part of our pharmacopoeia: a fair reward!”

“ Thierry Dufresne

Interview with Thierry Dufresne, Founder and President of the OFA, French Observatory of Apidology.

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HONEY FROM OUESSANTThe power of a symbol

When the Abeille Royale range was created,Guerlain was looking for honey of exceptio-nal quality. The honey made by black bees,native to the island of Ouessant, met the com-pany's needs. This unique species is onlyfound on this island and its isolation has for-ged its unique and rustic character. The Brittany Black Bee Conservation Associa-tion (Conservatoire de l'Abeille Noire d'Oues-sant) in Ouessant takes care of this heritageand Guerlain has been developing relations-hips with it since 2008 to build the communityand the reputation of these hives, which de-pend on their incomparable biotope. The firstpartnership agreement of 2011 was followedby a Sustainable Development SponsorshipPact, signed in 2014 for10 years.

To date, it is based on two pillars: on onehand, financial support to better remuneratethe island's beekeepers, the maintenance ofthe hives and the various actions the Associa-tion needs including legal support, and on theother, support for its research and communi-cation activities.As for the supply of honey for its range, thecompany is committed to complying with cer-tain conditions, which are characteristic of anethical and social approach.

PRESERVING OUR NATURAL RAW MATERIALS: A SOURCE OF INSPIRATION AND INNOVATIONThe protection of biodiversity, through the co-creation of our sustainable industries, is in line with our quest for quality and joins together with the sustainability of our creations and expertise. It is a key issue to contribute to the Beauty of the world in our own way.

6 NATURAL MATERIALS, DERIVED FROM 7 SUSTAINABLE INDUSTRIES

LAVENDER FROM PROVENCEThe purity of an essence

Flowering in Drôme, in south-east France,where our perfumer Thierry Wasser disco-vered passionate farmers who respect theirland, Carla lavender is the result of organicfarming. A material of rare purity, the finestterroir and expertise was what struck ThierryWasser, the company perfumer!

Especially since a meeting with the founderof the Provençal company “Beaume desAnges” in 2013 revealed the possibilities ofobtaining a lavender essence very close tothe plant, at a low temperature (and there-fore with a reduced carbon footprint).Thanks to the innovative and patented pro-cess of this company, in partnership withGuerlain, based in the production region ofthis exceptional lavender, the essential oilobtained “tastes like it smells” and can beused in perfumes or in cooking, as it is sopure, 100% natural and certified organic.

In the Mon Guerlain perfume launched atthe beginning of 2017, then the eponymousbody lotion and the variations of Mon Guer-lain Intense in 2019, Carla lavender, with itsethereal charm, has found its place andbeen able to express itself fully.

ORCHIDS FROM TIANZIA global commitment to the flowering

queen of the plant kingdom

The queen of climbing flowers, the orchid isnaturally endowed with the biologicalmeans to keep it alive for 100 years ormore, in the most hostile environments. InTianZi, in south-west China, the kingdom ofa variety of orchid brimming with exceptio-nal anti-ageing properties flourishes, the des-tiny of which is intrinsically linked to that ofits original tropical forest ecosystem, uniqueto Yunnan. To explore the principles of theorchid's longevity and the secrets of its resi-lience, Guerlain has developed a unique re-search platform, the Orchidarium: afundamental research laboratory in France(Strasbourg), an experimental garden inSwitzerland (Geneva) and the TianZi Centrefor Biodiversity Research and Developmentin China. A partnership has been establi-shed with the local nature reserve for tenyears, since 2009. In this context, Guerlaincontributes to preserving part of the originaltropical forest, promoting polyculture andprotecting its extraordinary fauna and flora.Results since 2009: more than 10,000 or-chids have been replanted in TianZi, the de-velopment of orchid growth of all kinds,beyond the supply needs of Guerlain.

VETIVER FROM INDIABack to its roots

Guerlain has endeavoured to revive an in-dustry in India, where one of the favouritematerials vetiver originates, in partnershipwith a highland community overlooking thecity of Coimbatore, in the south of the coun-try (in addition to the supply Guerlain re-ceives from Haiti).

The plant is 100% usable: the grasses areused as feed for the livestock on farms, theplants for cuttings, the roots for the fragrantessence they contain.

During its growth, this plant limits erosion andimproves soil moisture and fertility. Launchedin 2015, the Indian industry has been co-de-veloped with the local population, accor-ding to sustainable and environmentallyfriendly cultivation practices, with the optionto extract the essence nearby, via partnerJasmina India according to qualitative andecological standards, the “greenification” ofwhich Guerlain also encourages: more yieldwith less water consumed, and firewood re-placed by biomass from distillation waste inparticular.

BERGAMOT FROM ITALYFantastico, Calabrian gold

from start to finish

One of the Guerlain Perfumer's trips led himto the edge of the Italian peninsula. Undera constellation of bergamot with the particu-larly fragrant bark of the Fantastico variety, amore recent but surprisingly prolific and ro-bust cultivar grown by Gianfranco Capua, aCalabrian arborist. This generous tree livesfor thirty years or so, planted on plots of areasonable size. As part of our sustainablesupply chain, it is subject to a managementplan to ensure it is replanted. It is an arbori-culture that does not require any phytosani-tary inputs: the bergamot tree is naturallyresilient and knows how to protect itself frominsects and fungi. In addition, its fruiting re-quires little water. Harvesting is done solelyby hand, from December to February, andon a regular basis by well-trained teams.Gianfranco Capua, our Calabrian partner,is seeking UEBT certification (The Union forEthical BioTrade). This is an approach pro-moted by the eponymous NGO that sup-ports candidates in fair and transparentsourcing, with certification as a key element.This is a good omen for the respect for bio-diversity as a whole, the ethics of our part-ner's practices and the traceability that theUEBT makes more reliable.

SANDALWOOD FROM ASIAAND AUSTRALIALong-term preservation

Sandalwood is an essential component ofthe company's iconic fragrances, particu-larly Jicky, Shalimar and Samsara. However,this wild tree is becoming increasingly rare...Especially since Guerlain only uses Santalum album, which was originally onlycultivated in the Mysore forest in South India.Nowadays, there is practically none left.This is due to deforestation and exponentialdemand. That is why we are turning to othersupply sources, particularly in certain countries in Asia that can provide us with similar quality in Australia. The tree is deman-ding and requires over fifteen years of matu-rity so that the essence can be extractedfrom the core of its trunk.We have therefore made sure to let it growfreely in a place that ensures “Guerlain” san-dalwood that meets our quality standards.Our Australian partner has become involvedin this approach and is committed to replan-ting two trees each time they cut one down.In addition, with 30% of the employeesbeing Aboriginal, through this partnershipthey find a welcome source of income intheir arid and isolated environment, favoura-ble only to mangroves and sandalwoodshrubs.

These industries pave the way for others, for raw materials that are just as symbolic of the brand. Our strategy in terms of biodiversity conservation is therefore to create sustainable industries covering everything we offer.

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TWO PRESIDENTS AT THE FOREFRONT OF COMMITMENT“SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REINVIGORATES THE SPIRIT

OF THE COMPANY INHERITED FROM THE FOUNDING FAMILIES”

For both Guerlain and Hennessy, Sustainable Development is asource of innovation and also a tremendous opportunity to reactivate the spirit of the founders of each of the companies in theLVMH world. And an opportunity to challenge one another.

Bernard Peillon: Minimising the impact on the climate is a challengeshared by all companies within LVMH. In 2018, Hennessy was thefirst company in its sector to test the new rail “Silk Road” between Duis-burg and Chongqing: this route, the name of which resonates like adistant echo of the mythical journey of Marco Polo is twice as fast,emits 100 times less CO2 than air travel and connects us to the secondlargest market in the world. There is just one drawback: it is currently

unreliable in winter, and must be improved so it is equally efficient inall weathers.

Laurent Boillot: Each company has its own specificities for transportingits products. Ours are made in France and also transported in part tothis sizeable market. We favour maritime shipping as much as possiblebecause the impact of air transport is far from minimal for our level ofactivity – it remains significant and we must improve our air/sea ratio.Thanks to the experience Hennessy has had, we have also begun usingrail for some of our deliveries. However, since our constraints are verydifferent from those of wines and spirits, Hennessy's experience cannotbe fully replicated, even if some experiences are inspiring for others.

Bernard Peillon: Indeed, during our work seminar on sustainable viticulture in Argentina in autumn 2018, a country where the Moët Hennessy Group was established in the 1950s, the testimonial presence of the President of Guerlain, known for his commitment andthe value of the example his company sets on CSR issues, was genui-nely stimulating. The climate crisis represents a wall for all of us; a challenge that pushes us to surpass ourselves. As Presidents, we havea duty of momentum, to drive all the regions of the world in which wehave some influence towards this objective.

Laurent Boillot: In practice, we are carbon producers: Guerlain

produces in France and exports. This is its major business model. TheCO2 that each company is committed to drastically reducing is clearlythe “wall” at the top of our agenda, including the carbon neutralitythat we are aiming for by 2028. The opportunity for improvementahead in long-distance transport is challenging. In the industrial sector,the extension of our Chartres plant is designed to be carbon neutral.

Bernard Peillon: It is also the yardstick against which our new bottlingplant in Pont-Neuf was designed. As a result, this site has been designed to use nearly 40% less energy than a conventional site. Certified HQE at an exceptional level, it required further investment.An additional cost in line with the standards of excellence that driveus and that our shareholder supports.

Laurent Boillot: In addition to the carbon footprint, biodiversity upstream of our production is one of the subjects important to us. Mydiscussions with the Hennessy CEO and my visit, at his invitation, tothe Mendoza seminar on the global subject of sustainability. We arein a position to act; Bernard and I are doing our bit and even a littlemore. These are battles that people become involved with, over time,despite the resistance that they generate, of course. Both of us knowthat the subject is eminently economic, and absolutely necessary.

When it comes to luxury goods, 60% of customers (and among Mil-lennials, this rate increases to 75% according to the latest BCG studyof 2019) may prefer one company to another based on these com-mitments! Realisation will be painful for those who have not taken stepsin time...

Bernard Peillon: Our companies work with partners that we have tobring together in the same coherent vision. From the moment we obtainour raw materials, in particular: their practices must be in line with ourSustainable Luxury objectives that respect people and the planet. At Hennessy, we are committed to convincing all winegrowers who

work with or for us to reduce pesticides, to move towards zero use ofherbicide and to adapt their cultivation practices to preserve the soiland the environment, moving towards fewer and fewer inputs, basedon the sustainable viticulture model.

Laurent Boillot: Beliefs are essential and at Guerlain, ours is to movetowards greater transparency. This is why we made the first move andwanted to share information by opening our Bee Respect traceabilityplatform. We did not wait until everything was perfect before startingto share; we are lifting the curtain on what happens behind the scenesand the progress of our commitments, to move forward, consistentlyand transparently. With these commitments at the heart of our Purpose.

Bernard Peillon: Yes, beyond the alignment of the personal and professional commitments it allows, to our greatest satisfaction, responsible luxury is an economic subject with a competitive issue atstake. Our customers would not understand if we did not give ourselvesthe means to meet the demands of sustainable development. It gives meaning to our business and the sustainable development of our companies. It seems to me that CSR is taking over from the part of the soul that was once inherent in the founding families of our companies.

MINIMISING THE IMPACT ON THE CLIMATE IS A CHALLENGE

SHARED BY ALL COMPANIES WITHIN LVMH.““I N T E R V I E W

Laurent Boillot,Chief Executive Officer of Guerlain

Bernard Peillon, Chief Executive Officer of Hennessy

Conversation between Laurent Boillot, Chief Executive Officer of Guerlain and Bernard Peillon, Chief Executive Officer of Hennessy

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É C O - D E S I G NECO-DESIGN REINVENTINGLUXURYRYR IN AMORERESPONSIBLE &SUSTATAT INABLEWAWAW YAYA

Guerlain is committed to the eco-design of the contents and containersof its products, including delivery. The concept is applied from the rawmaterials (sustainable industries) all the way to the packaged andtransported product, and not forgetting Guerlain sites: headquarters,production and stores. On the product side: refillability, lighter packa-ging, natural formulations, improving the carbon footprint linked to theirmanufacture and transport to their point of sale are tangible proof ofthe sustainable development approach that has guided the companyconsistently for over a decade.

We expand our offers while seeking to limit their environmental impact,from the moment they are designed, via their formulation and manufac-ture to their end-of-life. With continuous improvement in mind, progressis qualified and quantified. For each development, thanks to the Ediboxsoftware managed by the LVMH Group, the calculation of an EPI (En-vironmental Performance Index) is applied. It allows each new deve-lopment to be scored from 0 to 20 according to its environmentalimpact. For 2020, we have set ourselves the optimum objective: 100%of our new products will be eco-designed, i.e. with an EPI above12/20.Shared and challenged within the Sustainable Innovation Committee,this index is important to this body, which periodically brings togetherGuerlain's Marketing, Merchandising, Packaging, Purchasing and In-dustrial Management departments. It has been in place since 2016 forthe development and increase of eco-designed projects. Here are someof the most significant examples of the key, inspiring achievements:• Orchidée Impériale skincare: the fourth generation of the cream inthis range was launched in 2017 in a bold eco-designed jar (lighterglass, modified volume, non-laminated paper, pine cellulose cushioning)with a 55% reduction in carbon footprint.• Abeille Royale skincare: Guerlain has opted for a new InfiniteGlass® NEO jar, lightened and presented by Verescence as a glassmade of 25% postconsumer glass (PCR).• Our Bee bottles, which have always been refillable, have becomerefillable for life at our 18 perfume fountains with up to 110 fragrancesoffered to date.• Unscrewable pumps for our range of contemporary bottles, in orderto facilitate recycling (for the record, via Cèdre, the Group's recyclingplatform, our bottles are 95% recycled).• Since September 2018, the Orchidée Impériale Black porcelainpot designed by the Maison Bernardaud is also refillable. The beautyof these jars fully justifies their re-use, with an environmental saving that

is refreshed each time, because it is the same amount of energy andmaterials not being consumed.Since 2018, we have implemented “Eco-formula” bodies to improvethe creation of our products with the objective of 95% natural productsand 100% traceability of our formulas.

Our eco-design approach does not stop with the products we sell. Wealso strive to reduce the environmental impact of all the tools we use tohelp promote them. Gifts, for example, are also developed with a 3 Rsapproach. In 2019, 80% of them are either Reusable, Recyclable ormade from Recycled materials (mostly recycled cotton or PET). In 2020we are aiming for a rate of 95%.

We also go over POS (Point of Sale Advertising) with a fine-tooth combevery year with regard to environmental optimisation: less plastic, lessmaterial, less volume to be shipped... The operational teams work conti-nuously to reduce the environmental impact of our equipment and tools,both temporary and permanent. Other more confidential but neverthe-less symbolic actions demonstrate the sincerity of Guerlain's approach:thanks to a partnership since 2012 with Bilum, a company specialisedin upcycling working with people with disabilities, some of our adverti-sing posters are given a second life in the notebooks distributed to ouremployees, and the top-of-the-range linen in our Instituts is transformedinto washable and reusable cleansing gloves. (Nothing is lost, nothingis created, everything is transformed...).

Think again to Reduce, Reuse and Recycle: the 3 Rs rule governs all newprojects at Guerlain and the Marketing and Development teams are welltrained and practised in the 3 Rs. Additionally, with a view to continuousimprovement, this progress needs to be quantified; that is, each new de-velopment is scored using the EPI (Environmental Performance Index), cal-culated using Edibox, the LVMH Group’s software. This index thus makesit possible to score each new development between 0 and 20, thus mea-suring its environmental impact.

TO REDUCE, REUSE AND RECYCLE

ALL OF OUR ICONIC BEE BOTTLES ARE REFILLABLE FOR LIFE IN OUR GUERLAIN FRAGRANCE STORES

90% of glass recycledGuerlain has opted for a newInfinite Glass ® NEO jar,lightened and presented

by Verescence as a glass madeof 25% postconsumer

glass (PCR).

100%

OUR ORCHIDÉE IMPÉRIALE BLACK ORCHID TREATMENT COMES IN A PORCELAIN POT THAT IS REFILLABLE FOR LIFE,CREATED BY THE MAISON BERNARDAUD

100%REFILLABLE

97% natural ingredients in L’Essentiel,

our new foundation.

- 16 -

Le Bourdon, notre camion éléctriqueLe Bourdon, notre camion éléctrique

E C O - D E S I G N

GUERLAIN, PIONEER OF RESPONSIBLE

AND SUSTAINABLE LUXURY

L’ESSENTIEL, THE NEW FOUNDATION BY GUERLAIN: 97%ingredients of natural origins. Containing 97% ingredients of naturalorigin, the environmental impact of its formula, including water consump-tion, is substantially reduced. L’Essentiel is translucent on the skin in light of its list of ingredients: the re-maining 3% is used to optimise the integrity of the formula over time andits sensoriality; it reinvents make-up in the world of luxury, through its highlevels of naturalness and the performance of mineral pigments combi-ned with active marine and plant ingredients. A duo of tara gum and red seaweed extracts lets the skin breathe whileprotecting it from pollution. White cocoa bean extract hydrates and fil-ters blue light. Innovative technology balances and strengthens the cu-taneous barrier through the pre- and probiotics that, in nature, interactinterdependently. L'Essentiel is the champion of the naturalness thatGuerlain is committed to instilling in all its future make-up ranges.

ABEILLE ROYALE CREAM AND THE CHOICE OF INFINITE GLASSA pioneering company in its choice of 90% recycled glass for its newAbeille Royale cream jars, Guerlain repeated the achievement of reducingthe weight of the jar and the carbon footprint in 2018, initially achievedtwo years earlier with the Orchidée Impériale jar.

A success story supported by our customers who loved it and told us thatthey would now happily take the jars with them everywhere. A glowingreport that continues to inspire us. A high recycled cullet content and alighter weight of glass, for an identical capacity of course, are in the spot-light with the new Abeille Royale cream jar.

This nectar is now available in an Infinite Glass® NEO jar, an eco-innova-tion from our partner Verescence, which presents it as the first premiumglass composed of 90% recycled glass, of which 25% is post-consumerglass (PCR). That is an annual carbon footprint reduced by 44%, andwater consumption reduced by 42%.

100% REFILLABLE BEE BOTTLESA step ahead of the evolution of today's consumers, seduced by alter-natives to “throw-away society” and uniformity, Guerlain Fragrancestores are renowned for pushing the refillability and ultra-personalisationof their offers to an unrivalled level! Ninety fragrances are available inour iconic bottle, the Bee bottle, manufactured by Pochet du Courvalsince its creation. The perfume fountains available in our Guerlain Fragrance stores allow Bee bottles to be refilled: the quintessence of ahighly ecological process, refills for life. This offer illustrates our approach, that of a luxury company committed to reducing the environmental impact of its containers and packaging, while remainingfaithful to its codes. All our fragrances – i.e. the 110 in the catalogue –can be ordered in Bee bottles, which can be refilled for life. A dedica-ted workshop is located at the heart of the store: in shape, size, colou-ring, silkscreen printing, engraving, ribbon or knot, each bottle is unique.

OUR FEMININE FRAGRANCES REVISITED We have given our company heritage pride of place by revisiting bot-tles as iconic as Samsara and Insolence, in the light of ecological cri-teria. Our feminine fragrances have been reinterpreted, without lacqueror tinted glass, with a lighter, more “eco-friendly” weight, in a new Beebottle, which remains a pioneer, today as it was yesterday. They pavethe way: all our contemporary fragrances will be presented in eco-des-igned glass bottles that can be unscrewed by 2020.Our objective is to expand separability and eco-design for all our fra-grances. It is a sizeable challenge, and we are putting all our energyand daring at the service of our societal and environmental beliefs.

ROUGE G 100% REFILLABLE LIPSTICK remains one of the few refil-lable lipsticks on the market. It was reinterpreted in 2018 to create alighter refillable product (previously magnetic, now fastens with a clip)that is even more customisable than before. There are some 450 potential combinations of stick and case.

A SOURCE OF INNOVATION, CREATIVITY AND COMMITMENT FOR OUR TEAMS,ECO-DESIGN INSPIRES THE CONSTANT

RE-INVENTION OF LUXURY, WHICH IS THE “BRAND”OF THE COMPANY, A PIONEER OF RESPONSIBLEAND SUSTAINABLE LUXURY. A DETAILED OVERVIEWOF OUR MOST COMMITTED ACHIEVEMENTS.

Our contemporary fragrances L’Essentiel FoundationRouge G Lipstick

Our Bee bottlesAbeille Royale day cream

E C O - D E S I G N

- 19 -

ORCHIDÉE IMPÉRIALE BLACK,A PRECIOUS AND SUSTAINABLE POT THAT DEFIES TIME

With Orchidée Impériale Black, Guerlain expresses eco-designand the culture of beauty even more strongly. An ultra-precious experience: unique and sustainable, the promise has beenconcrete since last October. Architects of this exceptional co-creation, Michel Bernardaud, Chairman of the Board of the eponymous porcelain factory and Margerie Barbès-Petit, Directorof International Marketing and Communication at Guerlain.

Margerie Barbès-Petit: The collaboration between Guerlain and Ber-nardaud has arrived just at the right moment. We share the same values,and we both have founders who defended a vision of uncompromisingquality and pioneering innovation from the beginning.

Michel Bernardaud: A happy coincidence indeed! Our companieshave known each other for a long time, particularly through the ComitéColbert. When Guerlain wanted a container in harmony with theconcerns of our times, ecological and responsible, Bernardaud had rea-ched a point of maturity that made it possible to remove the technicalconstraints linked to this bold partnership: a jar that is beautiful in itself,which can be caressed or gazed upon and refilled for life. A containerof fine porcelain, compatible with the replaceable plastic refill filled withprecious treatment, represented a challenge because the refill has a fixeddiameter while the shape of our delicate paste is much less predictable:ceramic, a living material, shrinks during the firing process by about 14%.

Margerie Barbès-Petit:We wanted to celebrate the beauty of the treat-ment process, through the formula and the object and our commitment tosustainable luxury. Content and container are the result of artisanal ex-pertise and enormous amounts of similar attention, at each stage of pro-duction, for the manufacture of both: the demand for quality is ceaseless.

Michel Bernardaud: In our company, quality control involves one infour employees, from shaping the paste to firing. Ceramics is one of theoldest craft techniques in the world; ours has been continuously rein-

vented in Limoges since 1863, combining tradition and modernity. Por-celain, an inert material, is recycled once it has been fired. In theconstruction sector, for example, it generates zero waste during its ma-nufacture (unfired waste can be reinserted in the production cycle), notto mention that this production is locally “made in France”.

Margerie Barbès-Petit:: Our requirements in terms of eco-design andreduction of environmental impact in comparison with a conventionalpot have been met. What's more, Bernardaud is producing just theamount required at Guerlain's request. This “modularity” is in additionto the other natural properties of this material.

Michel Bernardaud: Indeed, porcelain is a non-polluting material madeof quartz, feldspar and kaolin, extracted from the ground. The result ofour collaboration with Guerlain is an artistic object, intended to standthe test of time; a feat of craftsmanship, requiring the expertise of aroundfifty people - testimony to an expert gesture that our companies arecommitted to preserving and challenging.

Margerie Barbès-Petit: This exceeds the notion of a simple functionalcontainer! It is a precious and sensual object that enhances the treat-ment experience imagined by Guerlain. This approach will be laterused for the Eye Cream treatment in the same Orchidée Impériale Blackrange.

Michel Bernardaud: Porcelain speaks to almost all the senses: taste (intableware, it's obvious!), touch, hearing (tap it with your fingers, you'llhear the sound porcelain makes), sight (see the interplay of contrastsbetween the unglazed white biscuit and the lacquered black in thispot). All that was missing was the sense of smell: the challenge we haverisen to with Guerlain fills this gap...

Margerie Barbès-Petit:: ...to express our commitment to more sustaina-ble luxury, In the Name of Beauty of a gesture!

Margerie Barbès-Petit, Director of International Marketing

and Communication at Guerlain “ AN ARTISTIC OBJECT, INTENDED TO STAND THE TEST

OF TIME; A FEAT OF CRAFTSMANSHIP, REQUIRING

THE EXPERTISE OF AROUND FIFTY PEOPLE.

Michel Bernardaud, Chairman of the Boardof the eponymous porcelain factory

- 21 -- 20 -

REDISCOVERINGOUR CREATATA IONS,TRANSPAPAP RENTLYLYL :BEE RESPECT“ECO-INNOVATION” BY GUERLAIN

Thanks to the initiative of a luxury perfumes and cosmetics company,choosing to lift the curtain on its own major impact and its most prominent eco-objectives, Bee Respect is the first public platform intended to bring to light its ingredients and main suppliers. A tangi-ble sign of our irrevocable and long-term social and environmentalcommitments.

Originally designed for internal use, the platform initially proved its worthas a tool for working together, with the aim of collaborative eco-designwithin Guerlain. The result is better knowledge of the life cycle of pro-ducts and good emulation between the different teams and roles ne-cessary for the design of our creations.Opened to the public in April 2019, Bee Respect expands the expe-riential range joined onto digital applications, to meet the growing de-mand from Guerlain's customers.

Our Bee Respect platform is accessible from any smartphone or tabletand provides the “consumer actor” with a wealth of information on:-our flagship skincare ranges (formula ingredients, packaging, suppliers,

manufacturing sites; carbon footprint to reach points of sale etc.),- our make-up range, including the new L'Essentiel foundation, the iconof our quest for naturalness, while waiting for our complete perfumerange in 2020.

Knowing more about the history of our actions, their environmental andsocial impact, their production conditions, of which the company takesgreat care, is likely to strengthen their appeal and cultivate a form ofmulti-faceted attachment. Bee Respect enriches the experience of cus-tomers: for Guerlain, the good and the beautiful go hand in hand. BeeRespect, initiated by Guerlain, was designed in partnership with ProductDNA. Founded by renowned traceability architects, this Switzerland-based company knows how to make QR codes talk!Opened to the public in April 2019, Bee Respect expands the expe-riential range joined onto digital applications, to meet the growing de-mand from Guerlain's customers.

It has developed “Respect Code” to offer consumers an experiencethat matches their exponential curiosity, thanks to product traceability.

ROBIN CORNELIUS, FOUNDER OF PRODUCT DNA“BEHIND THE SCENES OF LUXURY”

“The most beautiful colour is transparency! Guerlain has understood this correctly: consumers want to know and understand what they are buying. Theirlatent and growing demand is to be able to buy in line with their values. Initially, Bee Respect was an internal traceability tool designed to map theLCAs (life cycle analyses) of new creations at Guerlain, which was then opened up to customers.And those who believe that opening it up denotes weakness are wrong. Wemust take the lead, like Guerlain which is innovating: this platform is a pioneerin its sector. It rises to the challenge of going far in lifting the curtain without taking anything away from the dream associated with luxury.

LAETITIA CORBETSUSTAINABLE DEVELOPMENT PROJECT MANAGER IN CHARGE OF BEE RESEPCT

“Since April 2019, the digital platform Bee Respect has been open to the public. As of July 2019, all of our skincare and make-up are included in ourmapping. Formulae, ingredients, jar, cap and packaging are all accountedfor. By 2020, 100% of the company's iconic products will have been incor-porated. There is also great emulation between the different teams and rolesnecessary for the design of our creations, and I would like to thank all the employees who supported us in this project.”

BEE R ESPECT IN F IGURES

250employees

and partners recruitedto bring BeeRespect to life

40valued suppliers

and partners

100products presented on the platform Mid-2019

(Skincare and Make-Up)

470ingredientstraced

Mid-2019

E C O - D E S I G N

““““

- 23 -

C L I M A T E

CLIMATELEAVAVA E THE SMALLESTPOSSIBLE FOOTPRINTON THE PLANET

Transportation accounts for the largest share of our greenhouse gasemissions. Every link in the supply chain counts! Consequently, thestakes are high. Guerlain, its partners and its service providers arefirmly committed to meeting the climate challenge, which also involvesthe available local and international infrastructure.

Since 2007, we identified the transport sector as the main contributor inour activity to the greenhouse effect. Indeed, logistics activity accountedfor 56% of Guerlain's total CO2 emissions in 2018, when products,mainly Made in France, were exported. Hence the desire that we sharewith our subsidiaries to favour maritime shipping, to satisfy our most distantcustomers as much as we can, in particular, through a concrete incentive:every month, a balance of goods in kg, invoiced in Euro thus correspon-ding to the CO2.

Locally since 2014, Guerlain has been supplying its 15 Parisian storeswith the “Bourdon”, a 100% electric lorry that runs at night, without noise,CO2 emissions or fine particle emissions. An innovative vehicle set up insynergy with our partners Speed Distribution Logistique and Renault Trucks.During pollution peaks in Paris, our Sales Advisors are delighted to beable to inform our customers that Guerlain plays its part with regard toair quality and climate. This initiative has gradually spread within theLVMH Group and, sometimes, even to its external partners.

Our commitment is global: 25% of the Guerlain fleet, used by employees,consists of hybrid or electric vehicles. Our company promotes eco-friendlytransport, for example by funding 43 electrical charging points on siteshosting its staff. At the Levallois-Perret headquarters, using Parisian bicyclecouriers is preferred, or hybrid taxis if necessary; employees who chooseto cycle for their commute are entitled to a citizen bonus or, like in Belgium,bicycles are available to them during the day for their business trips.

FOR 5 YEARS WE HAVE BEEN USING THE “BOURDON”, AN ELECTRIC LORRY,

TO SUPPLY OUR 15 PARIS STORES

HQE LEVEL EXCELLENT

Opened in 2015, “La Ruche”, ourskincare and make-up productionsite is certified HQE (High Environ-mental Quality) and has achievedan excellent” rating

0 NOISE, 0 EMISSIONS

100% OF OUR SUBSIDIARIES

WORLDWIDE WILL BE ISO

14001CERTIFIED BY 2021

THE CHALLENGE: A CARBON NEUTRAL COMPANY, ISO 14001 CERTIFIED EVERYWHERE

“Today, 100% of the company’s French premises and 50% of its premises worldwide are ISO 14001 certified.Our ambition is exhaustive: to certify the entire premises on a worldwide level. The advantage of the standardis that it is internationally recognised, and it establishes requirements for our environmental managementsystems. Becoming the first carbon neutral luxury company, on scopes 1 to 3, i.e. from manufacture to thetransport of our products, is a global challenge for a brand Made in France and sold all over the world. By2028, this means finding solutions that improve our entire Value Chain by reinventing the way we produceand transport to adapt to the climate challenge.”

Clément Renaudet, Sustainable Development Project Manager in charge of carbon trajectory and ISO 14001 certification

“- 25 -- 24 -

Conversation between Nicolas Martin, LVMH Lighting Managerin the Group's Environment Department and Guillaume Renard,International Architecture Manager at Guerlain.

Winner of the 2018 “LIFE in Stores Awards” designed by the Groupto encourage environmental excellence in the companies' points ofsale and reduce their carbon footprint, the Vendôme store in Parisis one of the gems of eco-design within LVMH. One of Guerlain'sgems is in Passy, which has also just been renovated and has takenon a bright new identity with exemplary energy restraint on top. Itis an aesthetic interpretation of the best practices in this field.

Nicolas Martin:With “LIFE in Stores”, the Group encourages the en-vironmental excellence of its companies by rewarding their most outs-tanding stores. Guerlain in particular was one of the eight companieshonoured in 2018. More than just a glowing report, these awards area source of emulation for the entire inter-company network, in order toshare, explore avenues, co-construct a common guide for continuousimprovement on subjects as varied as the façade of a building, therestraint of lighting, the management of consumption, particularlyenergy consumption or air purity. 70% of the Group's greenhouse gasemissions come from its points of sale (scope 2).

Guillaume Renard: The renovation of Vendôme or Passy and theopening of new stores around the world (Shanghai, Hong Kong,Riyadh, etc.) provide Guerlain with an opportunity to innovate andeco-design its own points of sale as close as possible to its customers.In Passy, a pioneering trial store, with intelligent Bluetooth technology,the aim is to improve daily maintenance as well as the welcome andatmosphere. The new lighting in this vintage store, renovated in 2018,is an example of this with its simple and sensible use of lighting, while

creating a “work of light” that enhances the feel of the place and thebrand. A place that is most conducive for developing unique expertise:Guerlain Fragrance stores offer a captivating immersion in the worldof the company. In Passy, I used light to highlight the contrasts importantto Guerlain. The shadows compound and sculpt the elements that inhabit the shop. There is a “culture of light” specific to each company.The Group provides all of us with reference points, recommendationsand a catalogue that inspired me.

Nicolas Martin: Because the Group doesn’t have a lighting dogma!We invite creativity without losing sight of the ecological objectives towhich each point of sale everywhere in the world, old or new, mustcontribute. This means improving the energy efficiency of existing storesby an average of 15% when they are renovated, like in Passy, with theoriginal 1960s design. New stores must have an environmental per-formance of at least 50/100 on the LVMH Store Guidelines evalua-tion grid, based on international standards. And a Lighting PowerDensity of 30 watts per m² for the entire lighting.

Guillaume Renard: In this field, we have come a long way: today, bringing something to light is seen both as cultural work andthe translation of precise specifications. LEDs and intelligent Bluetooth, as well as the daily saving in energy consumption, havebeen installed without waste. In other words, no ceiling to remove, nonew materials brought in, and miles of cables saved. It saved time too,and in the end a minimal carbon footprint for some very successfullighting, with well-timed support from “Voyons Voir”, an inspired lighting designer, which allowed me to enrich my “Bible of Light”! Thus, in line with the spirit of the place, the pioneering operation inPassy can be extended elsewhere while respecting not just the planet,but the identity specific to each point of sale.

C L I M A T E

“WHEN THE ENERGY EFFICIENCY IN STORE MAKES THE CUSTOMER

FALL IN LOVE WITH THE EXPERIENCE ALL OVER AGAIN

UPCYCLING IN OUR STORESAs part of a call for proposals organised by the eco-orga-nisation Valdelia, we were able to show that 50 to 80% ofour shop furniture could be manufactured with recycled ma-terials. The winner of this call for proposals, we were ableto carry out our study thanks to two prototypes made withwooden panels from dismantled desks, collected by Valde-lia and made available to our fitters. This study allowed usto demonstrate that upcycling, even with a small quantity offurniture to be produced, encourages the reduction of ourcarbon footprint compared to manufacturing with new ma-terials. By reusing existing materials, we reduce the produc-tion of waste and the environmental impact of its destructionby incineration or landfill.

Guillaume Renard, Guerlain

Nicolas Martin,LVMH

- 27 -- -- 26 -

SOLIDARITYEMPOWERWOMEN,PROMOTE SELF-ESTEEMAND INCLUSIVE BEAUTY

S O L I D A R I T Y

OVER 900WOMENMADE UP IN 2019

IN RESTOS DU COEUR AND LAURETTE FUGAIN

WORKSHOPS

15 YEARS OF SUPPORT FOR LOOK GOOK FEEL BETTER

1000 Make-up artists for

a day since the launch of Volunteering Day

3 YEARSOF PARTNERSHIP WITH THE LAURETTE FUGAIN

ASSOCIATION

6 YEARSOF INVOLVEMENT WITH

RESTOS DU COEUR

Beyond its interests, Guerlain supports associations whose projectsare close to its heart. The idea of beauty embraced by the company,a mark of usefulness through our societal commitments, has the sup-port of our employees. They can choose to become involved in ourpartnerships.This year, an environmental component has been added to therange of possible actions linked to Volunteering Day, which Guer-lain is offering its employees: Bee School, an awareness programmefor schools about the bee, the sentinel of the environment, run byour employees since 2015. A trial took place at the end of 2018,and we will officially launch the programme internationally for 2019from October to December.

Since 2003 supportingBELLE & BIENLOOK GOOD FEEL BETTER

Since 2011 partnership withthe towns of CLICHY SOUS BOIS andMONTFERMEIL

Involvement with RESTOS DU CŒUR since 2014

Since 2017 partnership with l’ASSOCIATION LAURETTE FUGAIN

Since 2019 PAUSES BEAUTÉLVMH-SECOURS POPULAIRE

This desire to go further in societal commitment is spreading throughoutthe world, where the company is present, and translates into many ini-tiatives including the launch of Volunteering Day in 2015. This is a dayoffered by Guerlain that the teams voluntarily devote to an action that

makes sense of an environmental or social point of view. A personalinvestment that can take many forms.For example, the “beauty breaks” as part of the workshops supportingthe Belle & Bien charity (“Look Good Feel Better”), because helpingwomen being treated for cancer to feel well and beautiful in their bo-dies is beneficial to them. The company beauticians and make-up ar-tists receive psychological support beforehand, coordinated by thecharity, before volunteering their time throughout the year in hospitals,drawing on their Guerlain expertise.Since 2018, these Beauty Workshops have also been offered as partof our partnership with the Laurette Fugain charity: make-up and mas-sage workshops are offered to mothers of children in hospital and tonursing staff in the haematology and oncology departments of HôpitalTrousseau and Hôpital Robert-Debré in Paris. Alongside Restos duCœur, our beauty breaks have become popular rituals, especially onMother's Day!A new project created in 2019 is taking shape, this time alongside Se-cours Populaire as part of the LVMH Group. The aim is to support atleast 350 women in celebration of International Women's Day.

8 YEARSof support for the towns of Clichy-sous-Bois and Montfermeil

- -- 28 -

S O L I D A R I T Y

- 29 -

Interview with Olivier Théophile, Director of Social Responsibilityfor the LVMH Group.Openness and equal opportunities: Olivier Théophile, Director of So-cial Responsibility for the LVMH Group, cultivates them, with Guer-lain's support in particular. Beyond the humanitarian cliché, thisphilanthropic approach is above all, for luxury players such as ourcompanies, the diversification of a societal ambition. It is about beingopen to talent regardless of where they were born, to creativity fromall backgrounds, so that our sector can innovate and prosper in asustainable way, based on these values.

Every year since 2010, LVMH and several of its companies includingGuerlain have been involved in an event that is both demanding andunifying: the Montfermeil Cultures and Creation Catwalk in Seine-St-Denis. The idea of showing off the area's best side was born amongthe councillors, after an episode of riots in 2005 that stigmatised thisarea in the media.Today it is a strong partnership, which is not limited to a “simple” spon-sorship and almost a decade later is available in many ways, accor-ding to the tendencies and businesses of the Group's various entities.This one-night catwalk is an original initiative supported by the part-nership with the towns of Montfermeil and Clichy-sous-Bois, joined bylocal associations. It combines both clothing tradition and design.Guerlain is responsible for the beauty of the models-for-a-day of allages, walks of life and nationalities. The concept of the Catwalk isbased on clothing as a means of expressing one's own culture andcreativity, and as a source of recognition and acceptance of the other.It is open to all residents, not just different cultural communities, but alsoall generations. Based on a different theme chosen each year (artistictrends in painting, literature, etc.), 400 to 500 inhabitants prepare twopieces for the Catwalk: the presentation of a costume from their originalculture, and the creation of a garment on the given theme. In 2019, itwas Street Art.For this event, six Guerlain make-up artists were present and beautified90 models for the day. One of the company’s muses, Princess EstherKamatari, a famous former model for great fashion designers, of royal

blood, a writer and Guerlain Ambassador, gave the participants ad-vice on deportment and looking elegant. During the evening, the mostmotivated and determined young designer is awarded the prize; thejury is composed of leading figures from the world of fashion. Whatcounts is talent.The professions of excellence and creation that are cru-cial in our industry oblige us to plan ahead and in this respect, Seine-Saint-Denis is an exemplary French melting pot since it is the youngestdepartment in France.Against the vicious circle of isolation that hinders the development oftalent, LVMH welcomes about 150 pupils aged 14-15 each year fortheir “company discovery” internship with the desire for mutual culturalintegration – a win-win. We also support young graduates looking forwork with “Nos quartiers ont du talent”. The objective is to “mentor”them towards employment. The result is never a foregone conclusion,and sometimes it is a failure. But what a joy, however, to receive thisreport about an intern who came to Guerlain to work on reception atour headquarters: “We appreciated this smiling and pleasant, discreetand efficient recruit who learns quickly”.

In 2014, LVMH created the LVMH Institut des Métiers d’Excellence(IME). It is a professional training programme, the objective of whichis to ensure the passing down of its expertise in craftsmanship, creationand sales to young generations, to develop their employability by of-fering free practical training, practical certifications, certifications or di-plomas. The objective is to integrate students of different origins, agesand qualification levels, without departing from the demanding andselective criteria, but in line with our societal focus on self-esteem, aguarantee of success. In order to promote equal opportunities and tomake the IME known to as many people as possible in these misjud-ged areas where “gems” can remain hidden, we have been organi-sing the LVMH Institut des Métiers d’Excellence Village inClichy-sous-Bois since 2016. The IME Village is part of the partnershipestablished between the towns of Clichy-sous-Bois, Montfermeil andthe LVMH group. In January 2019, out of the 650 candidates, 2/3came from this department, 200 of whom had very significant poten-tial. A promising result, completely in line with our values. ”

WHAT COUNTS IS TALENT!

“ A PROMISING RESULT,

COMPLETELY IN LINE WITH OUR VALUES.

“Olivier Théophile,

LVMH

Audiane Cojean, Winner of Young Talent Prize 2019

Anne-Solène RivesWinner of the

Young Talent Prize 2018

- 30 - - 31 -

LAST MINUTE!GUERLAIN AND THE FOUNDATION CREATED BY ANGELINA JOLIE JOIN FORCES TO PROTECT BEES IN CAMBODIA

When the new Mon Guerlain advertising campaign and the new Eaude Parfum Intense were launched, Guerlain had the great pleasure ofwelcoming Angelina Jolie to Paris on 8th and 9th July 2019. On thisoccasion, Angelina Jolie and Laurent Boillot, Chief Executive Officerof Guerlain, gave a very exclusive press conference to reveal the newMon Guerlain film, shot in Angelina Jolie's house in Cambodia. An-gelina spoke about her strong bond with Guerlain, her vision of thewoman of today and her commitment: her Foundation, which was crea-ted in 2003 in Cambodia, bears the name of her son Maddox, andhas the task of protecting the environment and providing local com-munities with access to healthcare and education. Laurent Boillot andAngelina Jolie announced the launch of a joint Sustainable Develop-ment project aiming to protect bees in the Samlout region, a remotedistrict in north-west Cambodia. This initiative is being carried out in collaboration with local communi-ties, relying on the bee experts that Guerlain has been supporting forover ten years.

NATALIA VODIANOVAIn 2018, Guerlain celebrated its 10th anniversary of collaboration withNatalia Vodianova, who began this adventure as the muse for the ico-nic perfume Shalimar. Natalia now maintains a unique relationshipwith the company, which also supports her with her philanthropic com-mitment. In 2004, she created the Naked Heart Foundation, the aimof which is to improve the living conditions of Russian children. Then, a

second programme, “Every Child deserves a family” which offers psy-chological, therapeutic, social and legal support to the families of di-sabled children. In 2014, she was an ambassador for the SochiParalympic Games. The same year she received a US GlamourWoman of the Year award for her philanthropic work. In 2015, sheco-founded Elbi, a global platform for social good, connecting charitiesand people.

PRINCESSE ESTHER KAMATARIEsther Kamatari joined the company in 2015 as a spokesperson forthe brand's values. Princess of Burundi, Esther was one of the first blacktop models to walk down the Parisian catwalks. A woman of heartand conviction, she has always distinguished herself through her hu-manitarian commitments, especially to women. The meeting betweenGuerlain and Esther Kamatari was part of a partnership between theLVMH group and the towns of Clichy-sous-Bois and Montfermeil. Everyyear Esther trains the models-for-a-day in the art of catwalks, havingconfidence in themselves and feeling beautiful for the day... and forever.

SONIA ROLLANDOn 18th March 2019, GUERLAIN announced the appointment of Sonia Rolland as Ambassador of Values. Actress, director and producer, a woman of heart and conviction, Sonia Rolland is renow-ned for her humanitarian commitment. In 2001 she and her motherfounded the Maïsha Africa association, which provides material, socialand psychological aid to children in Africa, in particular those inRwanda, through education and health programmes. In 2015, she wasawarded the “Special Humanitarian Prize” at the Trofémina in Paris.Through her personality and commitment, Sonia shares the company'sfounding values.

S O L I D A R I T Y

GUERLAIN CHOOSESAMBASSADORS AND MUSES WHO STANDOUT FOR THEIR COMMITMENTS, ALL WOMEN

OF HEART AND CONVICTION.

THROUGH THEIR PERSONALITIESAND THEIR COMMITMENT TO DEFENDINGCAUSES, THEY SHARE THE FOUNDING

VALUES OF THE COMPANY.

ANGELINA JOLIE“We always create for a woman we admire,” said Jacques Guerlain,to whom we owe the creation of mythical fragrances such as L'Heurebleue, Shalimar and Mitsouko. Thierry Wasser, Guerlain's Master Per-fumer, found his inspiration in Angelina Jolie, to express the differentfacets of femininity. Modern femininity made of choices, emotions andcommitments. The link between Angelina Jolie and Guerlain goes backto her childhood, with the memory of her mother who particularly lovedher Guerlain powder. In December 2015, this invisible link was re-established in Cambodia where Angelina Jolie was directing her newfilm First They Killed My Father. It was there that she agreed to becomethe Muse of the new Guerlain perfume. Angelina Jolie is a film-makerand Special Envoy for the UN High Commissioner for Refugees. Sheis also a co-founder of the Preventing Sexual Violence in ConflictcvvvInitiative. All of her fees for the Guerlain advertising campaignhave been donated to charities.

Angelina Jolie and Laurent Boillot

- 33 -- 32 -

S O L I D A R I T Y

Interview with Charlotte Lossec and Sandrine Bécaud, Guerlain employees and Bee School volunteers.Launched on the occasion of the Bee Universities 2018, “BeeSchool” is a programme run by Guerlain employees to raise aware-ness from an early age about preserving this precious pollinator. It began to spread its wings at the beginning of the school year witha handful of volunteers called upon to make it a success, in Franceand wherever Guerlain is present. From the next session at the endof 2019, employees will be able to visit primary schools in pairs toencourage the discovery of the role of the bee and raise awarenessabout its protection; to help to better understand the challenges ofbiodiversity and climate; and to identify simple and concrete actionsto be implemented with the children. The company's objective by2020 is that all Guerlain employees around the world who wish to do so become ambassadors for bees and biodiversity for children.

An intervention with a reciprocal stimulating effect!Back to primary school for Charlotte Lossec, International Merchandi-sing Skincare Project Leader, and Sandrine Bécaud, Director of Inter-national Training, to embody the company's commitment to biodiversity,bees and the climate, volunteering in primary classes.

Charlotte Lossec: I immediately joined the Bee School project because,rightly so, it is Guerlain's CSR com-mitments that motivated my appli-cation to this company, and thebee has been its emblem since thebeginning and has inspired a treat-ment range, “Abeille Royale”, forwhich I am professionally responsible.

Sandrine Bécaud: As a trainingprofessional, I am especially usedto adults and being face-to-face

with young children is a whole other challenge. Relying on an educa-tional kit in the trial phase, I had barely had time to mention the issue ofinsects and the irreplaceable role of the bee when I saw 32 hands rise.What amazing reactivity! I wasn’t expecting such alertness. Passingdown is part of the company's DNA and in this case, I feel like I havereceived a lot too.

Charlotte Lossec:My feedback is similar: children already know a lotabout it and to a surprising extent, they are in favour of the bee. Forexample, they do not confuse it with the Asian hornet at all and theyare keen to know more. At Bee School you learn as well as teach! Iwas able to prepare my session beforehand thanks to some dedicatedGuerlain training and I used a very well-designed educational kit.

Sandrine Bécaud: At the end of Bee School, the pupils receive a diploma. They understand the importance of resuming the mission forthe preservation of bees and more broadly, the protection of biodiver-sity. We saw them proud to be “graduates” and to know more aboutthis cause, essential for the future on Earth. Guerlain grants an Volunteering Day” for all employees who wish to use it, dedicated to one of the causes supported by the company, now including “Bee School”.

Charlotte Lossec: Humanisingthese commitments, by going to talkto the classes that request it, as a“pilot employee” in a fun and edu-cational way seemed totally naturalto me. It was an amazing, touching expe-rience, and a real “breath of freshair”! From the list of schools whowant to get involved, I chose theone in Brest (A. Jacquard), near

THE BEE SCHOOL PROGRAMME: RAISING AWARENESS FROM AN EARLY AGE ABOUT BEES,

DUAL-EFFECT STIMULATION!

LET’S SOW FOR THE PLANET!

This year, the United Nations designated 20th May as World Bee Day to draw everyone's attention to the key role that these pollinators play,the threats they face and their important contribution to sustainable development. (20th May is the birthday of Anton Janša, who pioneeredmodern beekeeping techniques in his native Slovenia in the 18th century and paid tribute to the bee for its ability to work hard while requiringlittle attention.)

On 20th May 2019, like every year for the past three years, Guerlain employees made a long-term commitment to the “Flowers for Bees” campaign initiated by the OFA. They planted honey-producing plant seeds producing nectar and pollen essential for bees, to participate in theprogramme of replanting a billion flowers for bees. Bags of seeds were provided by the company to enable everyone to play their part.““

Charlotte Lossec Sandrine Bécaud

- 35 -

“I joined Guerlain three years ago and I have noticed that the notion of commitment is ever-present here,but it is not yet highlighted and communicated enough to our customers. It is therefore only natural that I have encouraged my teams to highlight their many and varied initiatives and I am very proud of their achie-vements. If I had to mention a recent activity, the Travel Retail teams repainting a school in Cambodia duringtheir annual seminar was remarkable; it was initiated by Laurent Besse (Director of Travel Retail Asia Pacific)on his own initiative. Proof, if proof were needed, that our employees anticipate the prerogatives of the headoffice and commit themselves on a daily basis.WELL DONE TO EVERYONE, LET’S KEEP GOING! ”

Stephane Augé, Guerlain International Director

Obtaining ISO 14001 environmental certification for all our sitesworldwide by 2021 seems within reach: it was done in France in2011; and to date, achieved for the subsidiaries in Japan in 2018,and in Mexico and the USA in 2019. In terms of society, our ambitionis to see 100% of our subsidiaries committed to Look Good Feel Betteror other similar NGOs by 2020, i.e. working alongside vulnerablewomen, to help them maintain or regain their self-esteem. The sameambition for bee preservation organisations.

A great first with the recognition of ourmost committed Trainers and Sales Advisors!Guerlain honours the commitment of itsemployees around the world, in particu-lar with the first awards for the BeautyTrainers and Consultants most involvedin our responsibility approach. In June 2019 the first “Best CommittedTrainer Award” was presented to Elvira

Di Stephano, Regional Training Manager for the Middle East, for theorganisation of a day dedicated to the protection of bees in partnershipwith a beekeeper from the region.

A second prize was awarded to Massaniello Bogaert, Benelux TrainingManager, for his very poetic notebook on the discovery of the Guerlinade and our raw materials to be protected, intended for ourSales Advisors’ children.

In July 2019 the first “Best CommittedBC” was awarded to Clara Segatto, avolunteer for the preservation of Milan'scultural heritage and contributor to a recycling project in the department storewhere she works.

We intend to present these trophies toour best ambassadors and representa-tives each year!

EVERYWHERE GUERLAIN IS PRESENT IN THE WORLD, OUR SUBSIDIARIES ARE ENTHUSIASTICALLY DEPLOYING ENVIRONMENTAL

AND SOCIAL STRATEGY, THE TWO DEFINING APPROACHES BEING ISO14001 CERTIFICATION FOR ALL MARKETS BY 2021 AND THE REGIONAL

DIVERSIFICATION OF PARTNERSHIPS.

C O M M I T T E D S U B S I D I A R I E S

GERMANYGuerlain Germany has been ISO 14001 certified since 2014.The subsidiary consumes 100% renewable energy and communi-cates with customers. It opened Sustainable Development workshopsat an annual cosmetics trade fair in Munich.

BELGIUM Guerlain Belgium was the first subsidiary to be certified ISO14001 in May 2013 and has since been implementing numerousenvironmental and social initiatives.

UNITED KINGDOM Guerlain UK has been ISO 14001 certified since 2018 and organi-sed a collection of Terracotta cases with the organisation Terracycle.

SPAIN Guerlain Spain has been ISO 14001 certified since 2016 and haslaunched a partnership with Ponte guapa te sentirás mejor (theSpanish branch of Look Good Feel Better/Belle & Bien) throughproduct donations.

NETHERLANDS Guerlain Netherlands has been ISO 14001 certified since 2018and has been providing customers with recycling through theCEDRE platform since 2014.

PORTUGALGuerlain Portugal has been ISO 14001 certified since 2017 andorganises campaigns to raise customer awareness of the com-pany's sustainable commitment, particularly with regard to eco-design.

ITALYGuerlain Italy has been ISO 14001 certified since 2017 andtrains its Beauty Consultants via sustainable development e-lear-ning modules. An Italian Beauty Consultant won the first BESTCOMMITTED BC AWARD in 2019.

CANADAIn June 2017, Guerlain Canada installed two learning hives at theMontreal head office, and organises training and activities withthe help of a beekeeper.

MEXICOGuerlain Mexico has signed a partnership with a local beekeeperand organises the sponsorship of hives. The subsidiary is in the processof obtaining ISO 14001 certification.

KOREAGuerlain Korea organises events, donations and skills sponsorshipfor a local NGO supporting single mums.

JAPANGuerlain Japan was the first Asian subsidiary to be ISO 14001certified in November 2013. It organised a Bee School pilot ses-sion with the NGO Kids Earth Fund, which it supports locally.

HONG KONGSince 2017, Guerlain Hong Kong has created an internal SustainableDevelopment Committee and has enabled all subsidiary employees tobe trained in eco-friendly actions. The “Bee garden”, an event designedfor our customers around our products and bees in May 2019, wasthe initiative of Hong Kong.

WORLD TOUR OF THE ENVIRONMENTAL,

SOCIAL AND SOCIETAL INITIATIVESOF OUR

SUBSIDIARIES

- 34 -

Elvira Di Stephano

Clara Segatto

- 37 -- 36 -

C O M M U N I C A T E A N D P A S S D O W N

In order to further strengthen its commitment and strengthen its positive societal and environmental contribution, Guerlain decidedto set up a body to monitor its “sustainable” achievements. The Bee Committee was thus created in 2018 to support its responsibilityapproach.

The objective of this stakeholder committee, consisting of relevant in-ternal and external contributors, is to monitor and challenge the actionsimplemented by Guerlain to achieve its trajectory as a committedluxury brand.

With three meetings a year, the members of the Bee Committee fosterthe company's approach to responsibility with their questions, insightsand proposals.

They discuss issues relating to the progress approach and initiativesled by Guerlain with company management. In parallel, the membersof the committee may be asked (individually or collectively) to give anopinion or summarise their observations of the company's various CSRcommunication channels (website, Sustainable Development report,events, newsletter, etc.).

SHARING WITH, TAKING INSPIRATION FROM AND BEING GUIDED BY OUR STAKEHOLDERS

THE MEMBERS OF THE GUERLAIN BEE COMMITTEE

EXTERNAL :Sandrine Bélier, Director of the “Humanisme et Biodiversité” association

Barbara Coignet, Director General of the 1.618 PARIS AgencyCandice Colin, Founder of Clean Beauty and Officinea

Catherine Dauriac, Independent journalist, founder of the Citizencat agency, board member of Fashion Revolution France

Thierry Dufresne, President of the French Observatory of Apidology (Observatoire Français d’Apidologie, or OFA) and the European and Mediterranean Beekeeping Union (Union d’Apiculture Europe

et Méditérannée, or UAEM)Astrid Dulau-Vuillet, Marketing Director at VerescenceSandrine Noël, Head of Environment at Louis Vuitton

$Jean-Baptiste Puyou, Founder and Director General at EVEA,a cooperative specialised in product life cycleVincent Rabaron, Europe Director at PUR Projet

Cécile Tuil, Vice-President of Communication at Albéa Coming very soon, a Guerlain customer.

INTERNAL :Laurent Boillot, Chief Executive Officer

Sandrine Sommer, Sustainable Development Director Cécile Lochard, Head of Sustainable Development Communication

68C O M M U N I C A T E A N D P A S S D O W N

Guerlain at 68, Champs Élysées is as much a dream as it is an ambition. The exclusive creations, and the Institute which providesunprecedented bespoke treatments, embody a true French way oflife, thanks to a team passionately dedicated to service and to providing our guests with rare experiences and emotions. JacquesGuerlain himself used to go from his office to the shop at 68,Champs-Élysées to listen to his customers' comments, make them smellhis creations in progress and gather their impressions.

This store is a tribute to art, artists and craftsmen, making our uniquecompany shine throughout the world. What better setting to expressour Sustainable Development approach?

Launched in 2014, the Sustainable Inspirations bring Guerlain's stakeholders, its committed partners and customers aware of the approach together with stakeholders committed to sustainable development. The company strives to invite committed leading figureseach time, representing various voices: public institutions, start-ups, companies, charities, etc.This event takes place twice a year in theGuerlain store on the Champs Élysées. In November, men are honoured with Movember. In March, it is the women's turn, for Interna-tional Women's Day. This multi-participant dialogue allows Guerlain tostep aside and talk about Sustainable Development by highlighting inspirational initiatives and paths.

THE SUSTAINABLE INSPIRATION OF NUMBER

- 39 -- 38 -

The Guerlain Sustainable Development Steering Committee visiting Verescence, our fully-committed glass partner, at the factory in Mers-Les-Bains in December 2018.First row, seated, from left to right: Cécile Koenig, Delphine Chorenslup, Anne-France Cavarec, Marie-Charlotte Héliot, Cécile Lochard - Second row, standing, fromleft to right: Nicolas Faure, Gwendoline Perrotin, Pauline de Rodellec, Laetitia Corbet, Laurent Boillot, Sandrine Sommer, Elise Levan, Angélique Clézardin, MarionOudin - Third row, standing, from left to right: Samuel Joachim (Verescence), Alain Thorré (Verescence), Patrice Bros, Astrid Dulau-Vuillet (Verescence), Pierre-Antoinede Vriendt, Hélène Marchand (Verescence), Emilie Guibert, Thomas Riou (Verescence), Sandrine Bécaud, Philippe Bernard, Jean-Luc Leblond (Verescence), LaurentGuyot (Verescence). Absent: Delphine d’Eramo, Ann-Caroline Prazan, Stéphanie Roy, Cécile Vatan, Daniel Ponsy.

THE GUERLAIN SUSTAINABLE DEVELOPMENT STEERING COMMITTEE

C O M M U N I C A T E A N D P A S S D O W N

Interview with Sylvie Bénard,Environmental Director at LVMH GroupThe instigator of one of the first Environmental Departments in a luxury goods Group - at LVMHfor more than 25 years, Sylvie Bénard has not forgotten anything about attending the UN Summitin Rio (1992). The daughter of environmentalistsfrom the outset, she has kept this cause close to herheart throughout her career. Because a preservedplanet is a guarantee of a better world, for peopleand business, she strives to drive all the companiesto play their part in global ecological challenges, within the scopeof their activities. She “keeps an eye out” and is currently supportingthe effective integration of the Group's “green” dynamic objectivesfor 2020, known as LIFE.“1992 was an unforgettable year: the Earth Summit in Rio and the crea-tion of the LVMH Group's environmental department, one of the first inthe sector! 2015 was the year in which 193 States signed the UnitedNations Millennium Development Goals (MDGs) and in parallel, in2016, a new version of our strategic programme, LIFE 2020, was des-igned within LVMH. What is the link between the MDGs (17 UN ob-jectives of general interest, which are the responsibility of the States)and the target of environmental excellence for our companies throughthis LVMH programme? For me, it is obvious: the MDGs provide com-panies with a legitimate framework for their long-term strategy. This na-turally puts their activity at the heart of public policy and allows them tobe one of the actors committed to sustainable development in concreteterms. Hence LIFE 2020 at LVMH.The MDGs (Millennium Development Goals) adopted in September2015 by UN member countries, set targets for 2030. Through our LIFE programme, which indicates the environmental

goals to be achieved by 2020 for all the Group's companies, each company must set and deploy fourobjectives that are both necessary and ambitious:• Nurture creativity through eco-design• Ensure a responsible supply chain• Fight global warming• Increase the environmental efficiency of sites andstoresCongratulations to Guerlain for winning one of theGroup's five LIFE in Stores Awards in 2018 for thefourth objective. Awards have been attributed every

two years since 2016 to recognise exemplary initiatives in areas as varied as building insulation, energy-efficient lighting, energy manage-ment and clean air!In support of the climate, another key issue where all our companiesare facing the delicate “greenification” of their logistics (because interms of transport, improving the ratio to reduce CO2 emissions is areal challenge for certain products), Guerlain has tested and co-developed the “Bourdon” (The Bumblebee) with Renault Trucks, an innovative vehicle for delivering to its Parisian stores cleanly and quietlyat night. A pioneering initiative, which has since been emulated withinLVMH and beyond. This is typically the virtuous effect that we believesustainable development must generate. The Group has voluntarily setan internal price for GHG (greenhouse gases) in order to combat them.Each reduction obtained goes into a carbon fund (about €15 pertonne of CO2 avoided, a price we doubled last year). It is a very motivational vehicle: this fund, to which the Group has subscribed, isthen used to finance new climate-friendly activities in the companies, asa creative force. LVMH's Finance Department and Environment Department work hand in hand, and this innovative colla-boration is fruitful. As part of this, approximately 10.2M€ of investments

MILLENNIUM DEVELOPMENT GOALS (MDGS) DRIVE AND SET OBJECTIVES FOR OUR ENVIRONMENTAL STRATEGIES were made. Credit where it is due, the fact that Guerlain is aiming for

carbon neutrality for its bicentenary is a strong sign of its extreme willing. Eco-design is one of the many ways in which the LIFE 2020 objectivescan be achieved. I dream of the day when the acronym LCA (life cycleanalysis) becomes familiar rather than enigmatic for all of the Group's156,000 employees. I am delighted to note that Guerlain has chosen to set the bar very highby aiming to have 100% of its new products being eco-designed by2020. For this branch of the Group, the LIFE 2020 objective increasesto 90%. Reducing the ecological footprint of packaging, even if onlyby its weight, was not self-evident in our sector. Guerlain has showngreat daring by reducing the weight of such a flagship and popularproduct as Orchidée Impériale skincare.

Successfully paving the way for others! LVMH provides various tools to help with decision-making, includingEdibox, to calculate the environmental performance index (EPI) ofpackaging, for example. The Perfumes and Cosmetics departments cal-culate it for all their products and aim to improve it by 10% by 2020.

The traceability of ingredients, compliance with chemical regulations,transparency with regard to controversial substances, including naturalones that may be over- or under-exploited and therefore threatenedwith extinction or impoverishment, are some of the reasons why we wantresponsible supply chains. With this in mind, 70% of the supply chainsof all our companies meet the highest environmental standards. Ourambition for 2020 is to reach this high level for 100% of them.”

C O M M U N I C A T E A N D P A S S D O W N

- -- 41 -

Laurent Boillot, CEO

WE ARE COMMITTED TO A MORE SUSTAINABLE WORLD, TO PUSHING THE CULTURE OF THE GOOD AND THE BEAUTIFUL EVER HIGHER,

AND TO PASSING BEAUTIFUL HERITAGE ONTO FUTURE GENERATIONS...

IN THE NAME OF BEAUTY.

““

NATURE HAS BEEN OUR SOURCE OF INSPIRATION SINCE 1828

FOR MORE THAN 12 YEARS, WE’VE PLACED ITS PRESERVATION AT THE HEART OF OUR ACTIONS

100% OF OUR FRENCH SITES HAVE BEEN ISO 14001 CERTIFIED SINCE 2011,

WE WON THE “COUP DE CŒUR” PHILANTHROPY AWARD

FROM THE FRENCH MINISTRY OF ECOLOGY FOR OUR COMMITMENT TO BEES

IN 2015, OUR COSMETIC PRODUCTION SITE “LA RUCHE” IN CHARTRES (EURE-ET-LOIR),

FRANCE WAS CERTIFIED HQE (HIGH ENVIRONMENTAL QUALITY) WITH AN “EXCELLENT” RATING

IN 2016, FOR THE THIRD CONSECUTIVE TIME, WE RECEIVED THE

“LIVING HERITAGE COMPANY” LABEL FROM THE FRENCH MINISTRY FOR THE ECONOMY FOR OUR RARE EXPERTISE

IN 2019, WE BECAME THE FIRST COSMETICS COMPANY TO PROVIDE A BEHIND-THE-SCENES LOOK

INTO THE LIFE CYCLE OF ITS PRODUCTS, WITH OPEN ACCESS FOR EVERYONE ON

BEE RESPECT, THE TRANSPARENCY AND TRACEABILITY PLATFORM

FOUR DEFINING PROGRAMMES IN FAVOUR OF THE PROTECTION AND PRESERVATION OF BEES SINCE 2003,

GUERLAIN HAS BEEN SUPPORTING LOOK GOOD FEEL BETTER

IN 2020, 100% OF OUR NEW CREATIONS WILL BE ECO-DESIGNED

IN 2028, OUR CARBON FOOTPRINT WILL BE NEUTRAL

SINCE 2007, 20 EMPLOYEES HAVE BEEN INVOLVED IN THE SUSTAINABLE DEVELOPMENT COMMITTEE

... AND GREAT DETERMINATIONTO TAKE THIS COMMITMENT EVEN FURTHER!

FOR FURTHER INFORMATION, PLEASE VISIT www.guerlain.com

AND OUR DEDICATED SITE www.aunomdelabeaute.fr

FOR FURTHER INFORMATION, PLEASE VISIT www.guerlain.com

AND OUR DEDICATED SITE www.aunomdelabeaute.fr

This format aims to facilitate the use and handling of the report in order to reconcile pleasure of use,

functionality and moderate consumption of resources. For this edition, the Curious Matter cover

paper has a touch thanks to an innovative starch enhancement technique. The paper for the inside

pages, Cocoon silk matt, is 100% recycled. Furthermore, this paper is FSC-certified to ensure the

proper management of the forest used to make it. Thank you to all the speakers who made themselves

available for interviews and conversations. Thanks to our partners who designed and produced this

report. Design and writing: Guerlain Sustainable Development Communications - Writing: Michèle

Bernard-Royer - Design & creation: Julie Chazelle - Photographs: Arnaud Joron and DR Guerlain

- Printing: Handiprint, adapted company.